Dynamic Business Law: The Essentials 3rd Edition

First Amendment protections do not apply to corporations. Answer: FALSEThe First Amendment protections also apply to corporations. Answer: FALSEThe First Amendment protections also apply to corporations. Answer: FALSE The First Amendment protections also apply to corporations. Corporations generally provide unlimited transferability of ownership interest. Answer: TRUECorporations generally provide unlimited transferability of ownership interest. Answer: TRUECorporations generally provide

Under which sections of the UCC are buyers and lessees obligated to accept and pay for conforming goods in accordance with the contract? A. 2-301 and 2A-516(1) B. 2-508 and 2A-513 C. 2-613 and 2A-221 D. 2-612(2) and 2A-510(1) E. 1-205(1) and 208(1) Answer: A.Under UCC Sections 2-301 and 2A-516(1), buyers and lessees are obligated to

Which of the following cannot be forced into involuntary bankruptcy under Chapter 7? A. Farmers B. Ranchers C. Nonprofit organizations D. Farmers, ranchers, and nonprofit organizations E. Farmers and ranchers, but nonprofit organizations may be forced into involuntary bankruptcy Answer: D.Farmers, ranchers, and nonprofit organizations are examples of debtors that cannot be forced into liquidation. Answer:

The purpose of compensatory damages is to punish the defendant and deter future wrongdoers. Answer: FALSEThe purpose of compensatory damages is to make the plaintiff whole again. Answer: FALSEThe purpose of compensatory damages is to make the plaintiff whole again. Answer: FALSE The purpose of compensatory damages is to make the plaintiff whole again. Under

The Big Sale. Christy, the owner of ABC department store, needed to hire a number of employees in a hurry because of a planned big summer sale. Bob was hired by Christy to run a cash register and to assist customers with taking large purchases to their cars. Bob encountered

Sam, a new police officer, was criticized by his supervisor for failing to make a sufficient number of arrests. Sam went into a section of town known for criminal activity, picked up several suspicious looking individuals, read them the Miranda rights, and arrested them hoping that they would confess to

Implied assumption of the risk occurs when the plaintiff expressly agrees, usually in a written contract, to assume the risk posed by the defendant's behavior. Answer: FALSEImplied assumption of the risk means that the plaintiff implicitly assumed a known risk. Answer: FALSEImplied assumption of the risk means that the plaintiff implicitly assumed

A transaction in which the payment of a debt is guaranteed by personal property owned by the debtor is called a secured transaction. Answer: TRUEA transaction in which the payment of a debt is guaranteed by personal property owned by the debtor is called a secured transaction. Answer: TRUEA transaction in which

A sole proprietor is considered a separate legal entity. Answer: FALSEThe sole proprietorship is not considered a separate legal entity. Answer: FALSEThe sole proprietorship is not considered a separate legal entity. Answer: FALSE The sole proprietorship is not considered a separate legal entity. Case law is another name for common law. Answer: TRUEAn alternative name for

In an auction _____, the seller is treated as making an offer to accept the highest bid. A. without controls B. with controls C. without reserve D. with reserve E. without qualifications Answer: C.In an auction without reserve, the seller is treated as making an offer to accept the highest bid. Answer: C.In an auction without

The Stolen Book. Betty tells Susan that Bob stole her business law book from her car. The next day Susan confronts Bob and slaps him for stealing her book. Bob has Susan arrested for slapping him. Susan sues Bob for damages in the amount of the book and for maliciously

Shareholders may not be held personally liable for a defective corporation's actions. Answer: FALSEShareholders may be personally liable for a defective corporation's actions. Answer: FALSEShareholders may be personally liable for a defective corporation's actions. Answer: FALSE Shareholders may be personally liable for a defective corporation's actions. An injunction is a court order that either forces

A _____ is a court order that authorizes law enforcement agents to search for or seize items specifically described in the warrant. A. search warrant B. subpoena warrant C. search authorization form D. seek warrant E. review authorization Answer: A.A search warrant is a court order that authorizes law enforcement agents to search for or

When the depositary bank is the same bank as the payer bank, the check is referred to as a(n) ______. A. on-us item B. combined item C. condensed item D. unitary item E. uniform item Answer: A.Sometimes the depositary bank is the same bank as the payor bank; and when this is the case, the

Which of the following is generally true regarding management of a corporation? A. Shareholders do not participate in corporate management. B. Shareholders elect a board of directors. C. The board of directors selects officers to manage the day-to-day business of the corporation. D. Shareholders do not participate in corporate management, shareholders elect a board

Which of the following is true regarding whether a nonemployee may hold an employer liable under Title VII for harassment of an employee? A. An employer cannot be held liable in such cases because the employer has no control over the nonemployee. B. An employer is liable as a matter of law in such

Which of the following is needed in order for a business to qualify as an S corporation? A. No more than 100 shareholders B. Only individuals, trusts, and in some circumstances corporations as shareholders C. At least $10,000 in capital D. No more than 100 shareholders; only individuals, trusts, and in some circumstances corporations

Which of the following occurs when a defendant makes a first appearance? A. A magistrate determines whether there was proof beyond a reasonable doubt for the arrest. B. A magistrate determines whether there was probable cause for the arrest. C. A magistrate determines whether the defendant was properly booked. D. A magistrate determines whether

A payee may not be a holder in due course. Answer: FALSEAs recognized in the case in the text Watson Coatings, Inc. v. American Express Travel Services, Inc., a payee may be a holder in due course. Answer: FALSEAs recognized in the case in the text Watson Coatings, Inc. v. American

Trade dress refers to the overall appearance and image of a product and, is entitled to the same protection as a trademark. Answer: TRUETrade dress refers to the overall appearance and image of a product and is entitled to the same protection as a trademark. Answer: TRUETrade dress refers to the overall

A written document containing the signature of the creator that makes an unconditional promise or order to pay a sum certain in money at either a time certain or on demand is called a _____________. A. negated instrument B. promised instrument C. negotiable instrument D. promissory agreement E. negotiable agreement Answer: C.A negotiable instrument is

Agency law is primarily federal law. Answer: FALSEAgency law is primarily state law. Answer: FALSEAgency law is primarily state law. Answer: FALSE Agency law is primarily state law. The Magnuson-Moss Act requires a full warranty on the sale of goods. Answer: FALSEThe 1975 federal law known as the Magnuson-Moss Act requires that if a seller decides

In Trouble. Bruno, an issuer of stock, may be in trouble. He sold stock in a new health club venture before the effective date of registration. He did so because he was in financial trouble involving other ventures of his and needed additional funds. Bruno thought that the health club

What was the result in the case in the text Lucy v. Zehmer involving whether allegations of joking involving the sale of land prevented the formation of a contract? A. The court ruled that the contract would not be enforced because one of the parties was subjectively joking. B. The court ruled

Which is a valid defense that allows an employer to discriminate in hiring on the basis of sex, religion, or national origin if doing so is necessary for the performance of the job? A. The Seniority System Defense B. The Merit Defense C. The Bona Fide Occupational Qualification Defense D. The Discrimination Defense E. There

Which of the following is true regarding the liability of an accommodation party? A. As a maker, an accommodation party has primary liability; but, as an endorser, the party has secondary liability. B. An accommodation party has primary liability both as a maker and as an endorser. C. An accommodation party has secondary

Which of the following provides that an acceptance is valid when it is placed in the mailbox? A. The acceptance rule. B. The contract rule. C. The reasonable rule. D. The mailbox rule. E. The contract legality rule. Answer: D.The mailbox rule provides that an acceptance is valid when it is placed in the mailbox. Answer: D.The

Disappointed Applicant. Polly, who had a regular driver's license to operate an automobile, decided that she really wanted to drive a tractor-trailer truck. She thought that it would be nice to earn money while seeing the country. Polly had all applicable training and went to her state's department of motor

Revenge. Jane, a first year law student, while walking to school in inclement weather, accidentally slipped on ice knocking down Greg, another first year law student, breaking his glasses. He was very angry with Jane and let the air out of one of her car tires. Greg also decided to

The owner of a ______ estate possesses the same interest as the owner of a fee simple absolute, only this interest is subject to a condition that may result in termination of the interest. A. conditional estate B. life estate C. leasehold estate D. future interest E. fee simple absolute Answer: A.The owner of a

When negligence per se applies, the plaintiff is required to show that a reasonable person would exercise a certain duty of care toward the plaintiff. Answer: FALSEWhen negligence per se applies, the plaintiff can offer evidence of the defendant's violation of the statute to establish proof of the negligence. Answer: FALSEWhen negligence

Community Fair. Craig and Melinda are searching for a one-time business opportunity that will enable them to make a sufficient amount of cash to take a really great vacation to Galapagos. They live in a rather small rural community that has not, to date, had a community fair. Craig and

The court will not award recovery on a quasi-contract. Answer: FALSEThe court may impose a contract like obligation on a party; that is, a quasi-contract to prevent an injustice from occurring. Answer: FALSEThe court may impose a contract like obligation on a party; that is, a quasi-contract to prevent an injustice from

Laws that help establish the conditions of trade between countries are: A. The Uniform Commercial Code and The U.S. Constitution B. Executive Orders and Administrative Codes C. The North American Free Trade Agreement and The Bill of Rights D. The North American Free Trade Agreement and The General Agreement on Tariffs and Trade E. The

New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed for cause. Additionally, no more

Capacity is the legal ability to enter into a binding contract. Answer: TRUECapacity is the legal ability to enter into a binding contract. Answer: TRUECapacity is the legal ability to enter into a binding contract. Answer: TRUE Capacity is the legal ability to enter into a binding contract. The UCC assumes that the seller has

When the organization in charge of proposing uniform laws proposes a statute, which of the following is true? A. All states must adopt the uniform statute within one year. B. All states must adopt the uniform statute within six months. C. The uniform statute automatically goes into effect without any action by state legislatures. D.

When a corporation is incorporated, the secretary of state usually issues a(n) ______, a document certifying that the corporation is incorporated in the state and is authorized to conduct business. A. approval of incorporation B. certificate of incorporation C. authorization of incorporation D. certification of incorporation E. chronicle of incorporation Answer: B.A certificate of incorporation is

The statute of frauds imposes on parties the need to carefully consider the terms, agree to them, write them down, and ___________. A. meet with a lawyer to discuss the terms B. continue to negotiate the contract C. orally agree to the terms D. sign the agreement E. file the agreement with the court Answer:

If one or both parties have the ability to withdraw or enforce the contract, then the contract is _____. A. voidable B. rescinded C. a mistake D. void E. unenforceable Answer: A.If one or both parties have the ability to withdraw or enforce the contract, then the contractis voidable. Answer: A.If one or both parties have

The Fourteenth Amendment is part of the Bill of Rights. Answer: FALSEThe first 10 amendments to the U.S. Constitution, known as the Bill of Rights, substantially affect government regulation of business. Answer: FALSEThe first 10 amendments to the U.S. Constitution, known as the Bill of Rights, substantially affect government regulation of business. Answer:

Presidents claim the power to issue executive orders on the basis of Article II, Section 1, constitutional power to "take care that the laws be faithfully executed." Answer: TRUEPresidents claim the power to issue executive orders on the basis of their Article II, Section1, constitutional power to "take care that the

The FTC decides whether an advertisement is deceptive on a case-by-case basis. Answer: TRUEThe FTC decides whether an advertisement is deceptive on a case-by-case basis. Answer: TRUEThe FTC decides whether an advertisement is deceptive on a case-by-case basis. Answer: TRUE The FTC decides whether an advertisement is deceptive on a case-by-case basis. The UCC prohibits

Which of the following is true regarding the obligation, if any, of a consumer who discovers that a company has sent the consumer unsolicited merchandise? A. The consumer may treat the merchandise as a gift. B. The consumer may only treat the merchandise as a gift if it has a value of

Administrative agencies have legislative, executive, and judicial powers. Answer: TRUEAdministrative agencies have legislative, executive, and judicial powers. Answer: TRUEAdministrative agencies have legislative, executive, and judicial powers. Answer: TRUE Administrative agencies have legislative, executive, and judicial powers. Under the UCC, oral testimony can be used to establish the existence of a lost writing. Answer: TRUENoteworthy under the

Kite Sales. Wendy is president of a business that manufactures kites. The kites of her company, ABC Kites, are sold to large toy stores. After Wendy learned a great deal about kites, she started to make kites at home and to promote them to large toy stores. She also started

In some cases, the U.S. Supreme Court functions as a trial court. Answer: TRUEIn an extremely limited number of cases, the U.S. Supreme Court functions as a trial court of limited jurisdiction. Answer: TRUEIn an extremely limited number of cases, the U.S. Supreme Court functions as a trial court of limited jurisdiction. Answer:

_________ is the return of any property given up under the contract. A. Rescission B. Reformation C. Restitution D. Injunction E. Compensation Answer: C.Restitution is the return of any property given up under the contract. Answer: C.Restitution is the return of any property given up under the contract. Answer: C. Restitution is the return of any property given

The National Conference of Commissioners on Uniform State Laws adopted the Uniform Internet Act to answer questions pertaining to electronic transactions such as airline tickets purchased online. Answer: FALSEThe National Conference of Commissioners on Uniform State Laws (NCCUSL) has adopted the Uniform Commercial Information Transactions Act (UCITA), which answers questions including

The __________________ defense requires that the defendant demonstrates that she investigated the registration statement and had reasonable grounds to believe that the statement was accurate. A. restricted securities B. red-herring C. insider trading D. due diligence E. proxy Answer: D.The due diligence defense requires that the defendant demonstrates that she investigated the registration statement and

When does the UCC allow buyers and lessees to seek the remedy of specific performance? A. Only when goods are unique B. Only when a remedy at law is inadequate C. Only when goods are worth more than $500 D. When goods are unique, when a remedy at law is inadequate, or when goods

Self-Centered President. Tina is the new president of "We Manage You," a corporation set up to manage physician practices. Tina has never been very concerned with minority shareholders because she does not believe that they have any influence over the company because they cannot even elect a director. She is told,

Which of the following is needed for a valid gift? A. Delivery B. Donative intent C. Acceptance D. Delivery, donative intent, and acceptance E. Delivery and donative intent, but not acceptance Answer: D.For a valid gift, there must be delivery, donative intent, and acceptance. Answer: D.For a valid gift, there must be delivery, donative intent, and