Contemporary Business And Online Commerce Law 7th Edition

A letter of credit guarantees to the seller, that the bank will pay for the goods if the buyer fails to do so. Answer: TRUE Answer: TRUE Answer: TRUE The electric and cable companies have an easement in gross allowing them to enter property to install and repair their equipment. Answer: TRUE Answer: TRUE Answer:

A life estate gives the owner more rights than a fee simple. Answer: FALSE Answer: FALSE Answer: FALSE Under Section 552 of the Restatement (Second) of Torts, an accountant is liable for his or her negligence to any member of a limited class of intended users for whose benefit the accountant has been

Forming a sole proprietorship is easy and does not cost a lot of money. Answer: TRUE Answer: TRUE Answer: TRUE Special shareholders' meetings may be called by the board of directors, the holders of at least ten (10.) percent of the voting shares of the corporation, or any other person authorized to do so

A banking day is any day that the particular bank is open to the public for carrying on substantially all banking functions. Answer: TRUE Answer: TRUE Answer: TRUE An advertisement is considered an offer if it is so definite or specific that it is apparent that the advertiser has the present intent to

Property is considered mislaid property when its owner involuntarily places the property somewhere and then intentionally forgets it. Answer: FALSE Answer: FALSE Answer: FALSE The right to participate in the management of a business is conclusive evidence for determining the existence of a general partnership. Answer: FALSE Answer: FALSE Answer: FALSE If a corporation has not

The legality of non-price vertical restraints of trade under Section 1 of the Sherman Act is examined using the "rule of reason." Answer: TRUE Answer: TRUE Answer: TRUE A UCC sale occurs when possession of property is transferred from one party to another. Answer: FALSE Answer: FALSE Answer: FALSE A television purchased for your home and

Bankruptcy courts are part of the state court system. Answer: FALSE Answer: FALSE Answer: FALSE The primary purpose of the Statute of Frauds is to punish people who perpetrate frauds by using written contracts. Answer: FALSE Answer: FALSE Answer: FALSE Even if the right to cure has expired, the seller retains the right to replace any

If a professional athlete dies prior to or during a contract period, his or her contract with the team is discharged. Answer: TRUE Answer: TRUE Answer: TRUE After becoming sober, an intoxicated person can ratify a contract he or she entered into while intoxicated. Answer: TRUE Answer: TRUE Answer: TRUE Contracts involving fraud in the inception are

The Establishment Clause of the U.S. Constitution allows the federal government to establish which religions are entitled to protection. Answer: FALSE Answer: FALSE Answer: FALSE Tenancy by the entirety is a form of co-ownership of real property that can be used only by married couples. Answer: TRUE Answer: TRUE Answer: TRUE In an ordinary lease in which

ERISA provides for immediate vesting of each employee's own contributions to a pension plan. Answer: TRUE Answer: TRUE Answer: TRUE In a guaranty arrangement, the guarantor is primarily liable on another person's debt. Answer: FALSE Answer: FALSE Answer: FALSE Adhering to the Bible is a form of ethical fundamentalism. Answer: TRUE Answer: TRUE Answer: TRUE Owners share ownership in

The rights of freedom of speech, religion, and association, granted by the First Amendment to the United States Constitution, is an example of the "maximizing individual freedom" function of the law. Answer: TRUE Answer: TRUE Answer: TRUE When a seller tenders goods, some of which are conforming goods and some of which are

If corporate directors or officers steal a corporate opportunity for themselves, this is known as usurping a corporate opportunity. Answer: TRUE Answer: TRUE Answer: TRUE Facilitating planning is a function of the law. Answer: TRUE Answer: TRUE Answer: TRUE If goods are already in transit when a buyer fails to make payment when due, the seller

Strategic alliances are often used by companies to enter a foreign market. Answer: TRUE Answer: TRUE Answer: TRUE Some states permit a mortgagee to bring a separate legal action to recover a deficiency from the mortgagor. If the mortgagee is successful, the court will award an equitable judgment that entitles the mortgagee to

The public has the right to review an environmental impact statement, although there is no formal process for the public to comment on it. Answer: FALSE Answer: FALSE Answer: FALSE The general standard to obtain an injunction is that the party seeking the injunction would suffer irreparable injury without the injunction. Answer: TRUE Answer:

Horizontal price fixing occurs when a manufacturer sets the retail price of the items they produce. Answer: FALSE Answer: FALSE Answer: FALSE To obtain appraisal rights, a dissenting shareholder must deliver written notice of his or her intent to demand payment of his or her shares to the corporation before the vote is

Unless the partnership agreement authorizes it, partners are not entitled to receive a salary for service rendered on behalf of the partnership. Answer: TRUE Answer: TRUE Answer: TRUE One of the two major functions of the U.S. Constitution is to limit the government's ability to interfere with individual rights. Answer: TRUE Answer: TRUE Answer: TRUE To

Promises to make a gift are not enforceable contracts because a valid agreement is not present. Answer: FALSE Answer: FALSE Answer: FALSE If a contract requires the occurrence or nonoccurrence of an event before a party is obligated to perform a contractual duty, this is a condition antecedent. Answer: FALSE Answer: FALSE Answer: FALSE The misappropriation

The substantive due process category of due process requires that government action, ordinances, regulations, and other laws be clear on their face and not overly broad in scope. Answer: TRUE Answer: TRUE Answer: TRUE "ABC Company" is an acceptable name for a limited liability company. Answer: FALSE Answer: FALSE Answer: FALSE Article 2 of the UCC

The Robinson-Patman Act is a federal statute, enacted in 1930, that prohibits price discrimination. Answer: TRUE Answer: TRUE Answer: TRUE A limited liability company can choose whether to be taxed as a partnership or as corporation. Answer: TRUE Answer: TRUE Answer: TRUE If sufficient credible witnesses are brought forth, an oral statement can be held to

A "product disparagement" claim may be brought for an untrue statement regarding a product of a business. Answer: TRUE Answer: TRUE Answer: TRUE In terms of the requirements for becoming a holder in due course, notice of a defect is given when the holder has actual knowledge of the defect, has received a

If a court finds that a contract or contract clause is unconscionable, it may refuse to enforce the entire contract. Answer: TRUE Answer: TRUE Answer: TRUE The Fourteenth Amendment contains Equal Protection, Due Process, and Privileges and Immunities Clauses. Answer: TRUE Answer: TRUE Answer: TRUE In a bailment, the owner of the property is the bailee. Answer:

To be sufficient under the Statute of Frauds, only original, handwritten signatures in ink are considered acceptable. Answer: FALSE Answer: FALSE Answer: FALSE Any state or local law that "directly and substantially" conflicts with valid federal law is preempted under the Supremacy Clause. Answer: TRUE Answer: TRUE Answer: TRUE If two people suffer similar injuries from the same

A limited liability company may elect to be taxed as a partnership, the owners can manage the business, and the owners have limited liability for debts and obligations of the partnership. Answer: TRUE Answer: TRUE Answer: TRUE Drafts can be negotiated from party to party; however, a promissory note, if used as an

The UCC statute of limitations provides that an action for breach of any written or oral sales or lease contract must commence within three (3.) years after the cause of action accrues. Answer: FALSE Answer: FALSE Answer: FALSE A contract is unilateral if the offeror's promise is answered with the offeree's promise of acceptance.

Buyers in the ordinary course of business who purchases goods from a merchant take the goods free from any perfected or unperfected security interest in the merchant's inventory, even if the buyer knows of the existence of the security interest. Answer: TRUE Answer: TRUE Answer: TRUE Sometimes a party will register a domain

It is possible for a seller to deliver goods without moving them. Answer: TRUE Answer: TRUE Answer: TRUE "Ademption" means that if a specific bequest is not owned by the testator at the testator's death, then the named beneficiary receives nothing in connection with that bequest. Answer: TRUE Answer: TRUE Answer: TRUE There is no European

Third-party beneficiaries usually exist from the inception of a contract. Answer: TRUE Answer: TRUE Answer: TRUE A treaty is an agreement or a contract between two (2.) or more nations that is formally signed by an authorized representative and ratified by the supreme power of each nation. Answer: TRUE Answer: TRUE Answer: TRUE The United States

The proposed "Free Trade Area of the Americas" would amend the North America Free Trade Agreement so that the only participants are the United States and Mexico. Answer: FALSE Answer: FALSE Answer: FALSE In a Chapter 13 bankruptcy proceeding, the debtor's plan of payment must be filed no later than 120 days after

Where there is an anticipatory repudiation, the non-breaching party's obligations under the contract are discharged immediately. Answer: TRUE Answer: TRUE Answer: TRUE Since the World Trade Organization's international trade rules are capitalist in nature, socialist countries are not eligible to join the organization. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] All states have enacted statutes creating an

Prior to the 1920s, the banking system in the United States was subject to strict regulation by the federal government. Answer: FALSE Answer: FALSE Answer: FALSE All group boycotts are per se illegal. Answer: FALSE Answer: FALSE Answer: FALSE If a covered member or manager of a limited liability company commits an ordinarily negligent act that

For a warranty to qualify as a full warranty, the warrantor must guarantee free repair or replacement of the defective product. Answer: TRUE Answer: TRUE Answer: TRUE Following the stock market crash in 1939, Congress enacted a series of statutes designed to regulate securities markets. Answer: FALSE Answer: FALSE Answer: FALSE The concept of federalism is

When a partner dies, that partner's share of the partnership assets may be left to his or her heirs or next of kin. Answer: FALSE Answer: FALSE Answer: FALSE Federal courts have limited jurisdiction to hear cases involving a federal question or diversity of citizenship. Answer: TRUE Answer: TRUE Answer: TRUE To qualify as a holder

A transferor who transfers his or her distributional interest in a limited liability company is not released from liability for the debts, obligations, and liabilities of the LLC. Answer: TRUE Answer: TRUE Answer: TRUE The Food, Drug, and Cosmetic Act gives the Federal Trade Commission the authority to regulate the testing, manufacture, distribution, and

A service mark is used to distinguish the services of the holder from those of its competitors. Answer: TRUE Answer: TRUE Answer: TRUE Obscene speech is protected by the First Amendment to the United States Constitution. Answer: FALSE Answer: FALSE Answer: FALSE Voting agreements among shareholders of a corporation are usually considered to be void. Answer:

Stock dividends are a distribution of corporate assets. Answer: FALSE Answer: FALSE Answer: FALSE To be liable for consequential damages, the breaching party must know or have reason to know that the breach will cause special damages to the other party. Answer: TRUE Answer: TRUE Answer: TRUE The Uniform Computer Information Transactions Act provides that if

The WTO is an international organization whose headquarters is located in Geneva, Switzerland. Answer: TRUE Answer: TRUE Answer: TRUE The Critical Legal Studies School postulates that most rape laws make it difficult for women to prove legally that they have been raped because they have mostly been drafted from a male's perspective, and

Under federal law, new pesticides that are hazardous may be prohibited from sale, but old pesticides that that have already been registered may not be prohibited from sale. Answer: FALSE Answer: FALSE Answer: FALSE Approximately fifty (50.) percent of divorce cases are settled between the parties prior to trial. Answer: FALSE Answer: FALSE Answer: FALSE An

Domain names may be registered by filing the appropriate form with the domain name registration service and paying the appropriate fee. Answer: TRUE Answer: TRUE Answer: TRUE Criminal prosecutions of violations of federal securities laws are brought by state attorneys general. Answer: FALSE Answer: FALSE Answer: FALSE Since nine (9.) justices serve on the United States

Acceptance of goods occurs if the seller sends non-conforming goods and the buyer accepts them. Answer: TRUE Answer: TRUE Answer: TRUE Under the Lilly Ledbetter Fair Pay Act of 2009, if the EEOC chooses not to bring suit against the employer on the complainant's behalf, it will issue a "right to sue" letter

An "umbrella" insurance policy pays when other losses from a covered occurrence exceed the limits of other insurance. Answer: TRUE Answer: TRUE Answer: TRUE The correction of a defect defense generally applies when a product is redesigned. Answer: FALSE Answer: FALSE Answer: FALSE Many disparate treatment discrimination cases are brought as class-action lawsuits. Answer: FALSE Answer: FALSE Answer:

Once the buyer has accepted goods, whether the goods are conforming or nonconforming, that acceptance may not be revoked. Answer: FALSE Answer: FALSE Answer: FALSE All negotiable instruments must be payable to order or to bearer. Answer: TRUE Answer: TRUE Answer: TRUE The Uniform Commercial Code is a source of contract law that has been adopted

Under the ULLCA, the articles of organization of a limited liability company need not set forth the name and address of each organizer. Answer: FALSE Answer: FALSE Answer: FALSE A court may resort to the application of equitable principles when an award of money damages "at law" would not be the proper remedy.

Enforcing judgments obtained against the debtor are 'stayed" by the filing of a voluntary or involuntary bankruptcy petition. Answer: TRUE Answer: TRUE Answer: TRUE Which of the three major rules of liability that a third party may use to hold an accountant liable for negligence is determined by specific language contained in the

The Interstate Commerce Commission (ICC) is empowered to enforce the FTC Act, as well as other federal consumer protection statutes. Answer: FALSE Answer: FALSE Answer: FALSE A warranty deed will protect a grantee regarding a mortgage from one hundred years ago. Answer: TRUE Answer: TRUE Answer: TRUE Under modern law, no state will permit younger persons

If only one item is defective out of thousands of similar items that were manufactured without defects, this one defective product could not be the basis for a product liability lawsuit. Answer: FALSE Answer: FALSE Answer: FALSE Only the drawer can order a stop-payment order. Answer: TRUE Answer: TRUE Answer: TRUE The United States Supreme Court

Specific performance is the primary remedy used to make a party live up to his or her obligations under a personal services contract. Answer: FALSE Answer: FALSE Answer: FALSE The Articles of Confederation did not grant the federal government the right to levy and collect taxes. Answer: TRUE Answer: TRUE Answer: TRUE Once a strike begins, the

For necessary charges and expenses, a carrier has a lien on goods in its possession covered by a bill of lading. Answer: TRUE Answer: TRUE Answer: TRUE Generally, a price term can be implied if there is a market or source from which to determine the price of the item or service. Answer:

Even non-employees can violate insider trading rules. Answer: TRUE Answer: TRUE Answer: TRUE A contract that has not been performed by both sides is called an executed contract. Answer: FALSE Answer: FALSE Answer: FALSE Shareholders may agree among themselves as to restrictions on the transfer of shares. Answer: TRUE Answer: TRUE Answer: TRUE The supramajority voting requirement is often

State usury laws set a lower limit on the annual interest rate that can be charged on certain types of loans. Answer: FALSE Answer: FALSE Answer: FALSE Since a court reporter is necessary to transcribe deposition testimony, most depositions are taken in court. Answer: FALSE Answer: FALSE Answer: FALSE A thirty-five-year-old employee who is fired because

Most of the major antitrust statutes provide for criminal penalties. Answer: FALSE Answer: FALSE Answer: FALSE Government-owned corporations are also known as "quasi-private" corporations. Answer: FALSE Answer: FALSE Answer: FALSE The drawer's bank is also known as the payer bank. Answer: TRUE Answer: TRUE Answer: TRUE According to the modern interpretation of the Commerce Clause, any local (i.e., intrastate)

After the plaintiff's attorney has completed his or her questions, the defendant's attorney can question the witness. This is called direct examination. Answer: FALSE Answer: FALSE Answer: FALSE Providing government subsidies to farmers, but not to those in other occupations, is a violation of the 'strict scrutiny" test of equal protection. Answer: FALSE Answer: FALSE Answer:

The concept of negotiation is unimportant to the law of negotiable instruments. Answer: FALSE Answer: FALSE Answer: FALSE Compensatory damages are intended to compensate a non-breaching party for the loss of the bargain. Answer: TRUE Answer: TRUE Answer: TRUE No state recognizes marriage between persons of the same sex. Answer: FALSE Answer: FALSE Answer: FALSE The Digital Millennium Copyright

Criminal cases begin with a complaint and summons served on the defendant. Answer: FALSE Answer: FALSE Answer: FALSE The parol evidence rule allows a party to present outside evidence to support their interpretation of a contract. Answer: FALSE Answer: FALSE Answer: FALSE A freehold estate is an estate in which the owner has a future possessory

The U.S. Congress enacted the Federal Arbitration Act to promote the arbitration of disputes. Answer: TRUE Answer: TRUE Answer: TRUE A shareholder loses the ability to exercise the appraisal right by voting in favor of the proposed action. Answer: TRUE Answer: TRUE Answer: TRUE Both the buyer and seller of goods can have an insurable interest

The doctrine of caveat emptor means "to the victor go the spoils." Answer: FALSE Answer: FALSE Answer: FALSE An employee whose employer breaches an employment contract can recover lost wages or salary as compensatory damages. Answer: TRUE Answer: TRUE Answer: TRUE The person giving a deposition is called the proponent. Answer: FALSE Answer: FALSE Answer: FALSE A grand jury determines

Because ignorance of the law is not an excuse, a court will never order a remedy in favor of a party who was unaware that a contract was illegal. Answer: FALSE Answer: FALSE Answer: FALSE A franchise arrangement is typically used in a situation where there is no trademark or other intellectual property

The National Strike Board prevents employers and unions from engaging in illegal and unfair labor practices. Answer: FALSE Answer: FALSE Answer: FALSE John Locke and Jean-Jacques Rousseau proposed a 'social contract" theory of morality. Answer: TRUE Answer: TRUE Answer: TRUE Legal scholars following the Historical School of jurisprudence look to past legal decisions (precedent) to solve

The concept of law is narrowly defined, with the same definition applicable in all contexts. Answer: FALSE Answer: FALSE Answer: FALSE The Americans with Disabilities Act does not generally apply to residential housing facilities. Answer: TRUE Answer: TRUE Answer: TRUE A franchisee and franchisor are usually established as the same corporation. Answer: FALSE Answer: FALSE Answer: FALSE Under the

If a contractual duty has not been discharged or excused, the contracting party owes a conditional obligation to perform the duty. Answer: FALSE Answer: FALSE Answer: FALSE An affirmative action program that gives racial minorities a "plus factor" when considered for public university admission is lawful under the 'strict scrutiny" test of equal

One criticism of the World Trade Organization is that it does not have an appellate process for its decisions. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Because they are not shareholders or employees, students at a college or university would not be considered stakeholders in the school they are attending. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] A

When used to enforce the collection of a judgment, a writ of garnishment is used to access property that is in the hands of someone other than the judgment debtor. Answer: TRUE Answer: TRUE Answer: TRUE When a business has only one owner, and that owner takes no action in connection with choosing the

With regard to an implied agency, implied authority can be conferred by either industry custom, prior dealing between the parties, the agent's position and acts deemed necessary to carry out the agent's duties, or other factors a court deems relevant. Answer: TRUE Answer: TRUE Answer: TRUE The EU Commission is independent of its

The Organization of the Petroleum Exporting Countries consists exclusively of countries from the Middle East. Answer: FALSE Answer: FALSE Answer: FALSE Anti-deficiency statutes usually apply only to non-purchase money mortgages. Answer: FALSE Answer: FALSE Answer: FALSE Almost all states have enacted innkeepers' statutes that limit the liability of innkeepers. Answer: TRUE Answer: TRUE Answer: TRUE Fraud in the inception

Federal currency reporting laws require financial institutions to report the receipt in a single transaction or a series of related transactions of cash in an amount greater than $5,000. Answer: FALSE Answer: FALSE Answer: FALSE The infancy doctrine protects very young children from contracts entered into on their behalf by their parents. Answer:

In rare occasions, an appellate court will overturn a jury verdict if the appellate court cannot, from the record of the trial court, find sufficient evidence to support the trier of fact's findings. Answer: TRUE Answer: TRUE Answer: TRUE Under Title VII of the Civil Rights Act of 1964, an employer is under

Courts have implied a private right of action for violation of Section 10(b) and Rule 10b-5. Answer: TRUE Answer: TRUE Answer: TRUE The courts presume acceptance of a gift unless there is proof that the gift was refused. Answer: TRUE Answer: TRUE Answer: TRUE Non-issuers of securities do not have to file a registration statement before

Small business bankruptcies apply to companies with assets of less than $5 million. Answer: FALSE Answer: FALSE Answer: FALSE Fred and Barney enter into a sales contract for $400. Subsequently, they modify the contract and the modification adds $400 more to the contract. Neither the original contract nor the modification need be in

Liquidated damages will be invalidated if they are unreasonably large or small. Answer: FALSE Answer: FALSE Answer: FALSE Once a partnership is dissolved, all liability for the actions of the partners ends. Answer: FALSE Answer: FALSE Answer: FALSE At the expiration of the term of a "term" limited liability company, the limited liability company can only

Quasi-contracts and implied-in-law contracts are interchangeable terms. Answer: TRUE Answer: TRUE Answer: TRUE A principal can ratify an agent's act before the agent's act occurs. Answer: FALSE Answer: FALSE Answer: FALSE Under common law, parties to a contract can decide who will bear the risk of loss. Answer: FALSE Answer: FALSE Answer: FALSE Distribution of profits for any purpose

Today, approximately forty percent of private-sector wage and salary workers belong to labor unions. Answer: FALSE Answer: FALSE Answer: FALSE A holder in due course takes negotiable instrument free form personal defenses but not real defenses. Answer: TRUE Answer: TRUE Answer: TRUE An obligor can assert any defense he or she had against the assignor or the

All express contracts must be in writing to be valid. Answer: FALSE Answer: FALSE Answer: FALSE Because of the unfair results and the limited remedy available in the law courts, the Court of Chancery was established. Answer: TRUE Answer: TRUE Answer: TRUE A proxy always grants the holder of the proxy the right to vote as

Members of the European Union have delegated substantial powers to the European Union Commission, including the authority to enact legislation and to take enforcement actions to ensure member compliance with the European Union treaty. Answer: TRUE Answer: TRUE Answer: TRUE In a "chain-link" franchise, the franchisor licenses the franchisee to make and sell its

The Securities and Exchange Commission permits a company to obtain an audit from either an independent certified public accountant or a certified public accountant who works for the company. Answer: FALSE Answer: FALSE Answer: FALSE The directors and officers of a corporation must act within the authority conferred upon them by the state's

A non-merchant seller passes the risk of loss to the buyer when the goods are received. Answer: FALSE Answer: FALSE Answer: FALSE The First Amendment to the United States Constitution contains two (2.) separate religion clauses: 1. the Enlightenment Clause; and 2. the Free Exercise Clause. Answer: FALSE Answer: FALSE Answer: FALSE An insurance agent and

Merely being regarded as disabled is sufficient to invoke the protections of the Americans with Disabilities Act. Answer: TRUE Answer: TRUE Answer: TRUE Mala prohibita crimes are more serious than mala in se crimes. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] A "holographic" will is an oral will, usually made during the testator's final illness. Answer: FALSE[/cpmembership] Answer:

The Sarbanes-Oxley Act makes it a crime for any person to knowingly alter, destroy, mutilate, conceal, or create any document to impair, impede, influence, or obstruct any federal investigation. Answer: TRUE Answer: TRUE Answer: TRUE A corporation cannot enter into or enforce contracts. Answer: FALSE Answer: FALSE Answer: FALSE Discharge by impossibility requires objective, rather than

The crime of involuntary manslaughter is an intent crime. Answer: FALSE Answer: FALSE Answer: FALSE The lawfulness of government classifications that do not involve suspect or protected classes is examined using an intermediate scrutiny test. Answer: FALSE Answer: FALSE Answer: FALSE Adhering to a company's code of ethics is a form of ethical fundamentalism. Answer: TRUE Answer:

The term "GAASs" stands for "generally accepted accounting standards." Answer: FALSE Answer: FALSE Answer: FALSE According to Kantian ethics, if you rationalized that it is acceptable for you to engage in deceptive practices, it is acceptable for competitors to do so also. Answer: TRUE Answer: TRUE Answer: TRUE The Fair Employment Access Commission (FEAC) is the

Under the North American Free Trade Agreement, a country can re-impose tariffs if an import surge from one of the other nations hurts its economy or workers. Answer: TRUE Answer: TRUE Answer: TRUE Under the ULLCA, the articles of organization of a limited liability company need not set forth whether the limited liability

Hotels are not required to provide guests with a safe. Answer: TRUE Answer: TRUE Answer: TRUE Under the common law, the risk of loss is always on the seller. Answer: FALSE Answer: FALSE Answer: FALSE In a limited liability partnership, there is no tax paid at the partnership level, and all profits and losses are reported

Under the Federal Trade Commission "franchise rule," a franchisor may make sales projections for a potential franchisee based on sales of an existing franchise, but not on sales of a hypothetical franchise. Answer: FALSE Answer: FALSE Answer: FALSE A cooperative is a form of co-ownership of a single-dwelling building. Answer: FALSE Answer: FALSE Answer: FALSE A

The Dodd-Frank Wall Street Reform and Consumer Protection Act reorganizes federal government supervision of the banking system, regulates previously unregulated financial products and institutions, and adds a new consumer protection agency to protect consumers from abusive lending and banking practices. Answer: TRUE Answer: TRUE Answer: TRUE A distinguishing characteristic of embezzlement is that

If you rent property for an uninterrupted statutory period of time, you become the owner of the property by adverse possession. Answer: FALSE Answer: FALSE Answer: FALSE In Chapter 11 bankruptcy, the court will appoint a special union trustee to represent union members and preserve union member rights during the bankruptcy. Answer: FALSE Answer:

Utilitarianism has been applauded because it is easy to estimate the "good" that will result from different actions. Answer: FALSE Answer: FALSE Answer: FALSE To prove fraud, the following elements must be shown: 1) The wrongdoer made a false representation of a material fact; 2) The wrongdoer intended to deceive the innocent party;

The purchaser's remedy for violation of Section 12 of the Securities Act of 1933 is either to rescind the purchase or to sue for damages. Answer: TRUE Answer: TRUE Answer: TRUE Workers can sue their employers in court to recover damages for employment-related injuries if the employer does not carry workers' compensation insurance

If the buyer pays by check, payment is conditional on the check being honored when it is presented to the bank for payment. Answer: TRUE Answer: TRUE Answer: TRUE English common law was law developed by judges issuing opinions when deciding cases. Answer: TRUE Answer: TRUE Answer: TRUE The "FTC franchise rule" requires that the disclosure

Burglary is defined as "the breaking and entering of a dwelling at night" and cannot occur during the daytime or at a commercial building. Answer: FALSE Answer: FALSE Answer: FALSE Under the UCC, a negotiable instrument may provide that it is payable in foreign money. Answer: TRUE Answer: TRUE Answer: TRUE Under the Uniform Computer Information

Because a life estate lasts only as long as someone's life, it cannot be sold to another. Answer: FALSE Answer: FALSE Answer: FALSE From the 1940s through the 1970s, antitrust enforcement was quite stringent. Answer: TRUE Answer: TRUE Answer: TRUE The board of directors has the authority to appoint the officers of the corporation only with

Article II, Section 4 of the United States Constitution provides "The Congress shall have Power...To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries." Answer: FALSE Answer: FALSE Answer: FALSE The filing of a Chapter 13

Two kids mow your lawn by accident while you are at work. They had been called by a neighbor, but the mom who took the call wrote down the wrong address. If you refuse to pay, the kids would succeed in quasi-contract action based on unjust enrichment. Answer: FALSE Answer: FALSE Answer:

The United Nations is governed by the General Assembly, the Security Council, and the Secretariat. Answer: TRUE Answer: TRUE Answer: TRUE The mailbox rule provides that an acceptance sent through the mail is effective only when it reaches the offeror's mailbox. Answer: FALSE Answer: FALSE Answer: FALSE Under the corporate citizenship theory of the social responsibility of

Delaware's legislature has provided a potent antitakeover statute in its corporation code. Answer: TRUE Answer: TRUE Answer: TRUE The violation of a statute that proximately causes an injury is negligence by proxy. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Information given by the attorneys in their closing statements is evidence the trier of fact can use in reaching

In a product liability action, the plaintiff typically relies on the traditional tort theory of negligence or the modern tort doctrine of strict liability. Answer: TRUE Answer: TRUE Answer: TRUE A certificate of deposit is a special form of note. Answer: TRUE Answer: TRUE Answer: TRUE The trial process can be divided into the following major