Legal Environment of Business: Online Commerce, Ethics, and Global Issues 8th Edition

A(n) ________ contract refers to a contract that is entered into by the parties by use of e-mail. A) web B) online C) e-mail D) ISP Answer: C Answer: C Answer: C Which of the following is true of child labor regulations adopted by the U.S. Department of Labor? A) Children between the ages of 14 and 15

Kantian ethics distinguishes between the morality one uses to judge others and the morality one uses on oneself. Answer: FALSE Answer: FALSE Answer: FALSE If no other form of business organization is chosen while obtaining a license, the business is by default a sole proprietorship. Answer: TRUE Answer: TRUE Answer: TRUE Illusory promises require both parties

According to the Revised Uniform Limited Partnership Act (RULPA), what liability does a corporation have if it is a general partner in a limited partnership? A) unlimited personal liability B) liability restricted to the extent of its capital contribution C) liability of termination as partner D) unlimited organizational capital liability Answer: B Answer: B Answer: B Which

Perfection by investment of collateral is one of the methods of perfecting a security interest under the Uniform Commercial Code (UCC). Answer: FALSE Answer: FALSE Answer: FALSE The infancy doctrine gives adults the right to disaffirm contracts they have entered into with minors. Answer: FALSE Answer: FALSE Answer: FALSE An accredited investor is defined as a

If a principal and an agent enter into an express agency contract, the principal cannot employ any agent other than the agent who entered into the contract. Answer: FALSE Answer: FALSE Answer: FALSE The traditional view of social responsibility of business emphasized maximizing profits for employees rather than shareholders. Answer: FALSE Answer: FALSE Answer: FALSE Section

Advertising is categorized as limited protected speech. Answer: TRUE Answer: TRUE Answer: TRUE Based on the doctrine of respondeat superior, principals are liable for the negligent conduct of agents acting within the scope of their employment. Answer: TRUE Answer: TRUE Answer: TRUE In terms of compliance with the Statute of Frauds and the Uniform Commercial Code,

Monopoly power is characterized by ________. A) market share above 50 percent in the relevant market B) market share above 60 percent in the non-relevant market C) market share above 70 percent in the relevant market D) market share above 80 percent in the non-relevant market Answer: C Answer: C Answer: C The ________ is a federal

To be actionable as fraud, the misrepresentation must be the sole factor in inducing the innocent party to enter into the contract. Answer: FALSE Answer: FALSE Answer: FALSE Accountants cannot be held criminally liable for material irregularities in financial statements prepared for registration statements. Answer: FALSE Answer: FALSE Answer: FALSE Unless otherwise expressly stated, an auction

If an invention is obvious, then it does not qualify for a patent. Answer: TRUE Answer: TRUE Answer: TRUE If a light-skinned member of a race refuses to hire a dark-skinned member of the same race, this constitutes racial discrimination. Answer: FALSE Answer: FALSE Answer: FALSE An adverse opinion is usually issued when an auditor determines

The exclusionary rule allows for evidence obtained from an unreasonable search and seizure to be introduced at trial. Answer: FALSE Answer: FALSE Answer: FALSE In an undisclosed agency, the principal is solely liable on the contract with the third party. Answer: FALSE Answer: FALSE Answer: FALSE Only the defendant can appeal in a criminal case. Answer:

A pretrial hearing is also known as a settlement conference. Answer: TRUE Answer: TRUE Answer: TRUE The U.S. Supreme Court recognizes an accountant-client privilege under federal law. Answer: FALSE Answer: FALSE Answer: FALSE Private companies and nonprofit organizations are also influenced by the Sarbanes-Oxley Act's accounting and corporate governance rules. Answer: TRUE Answer: TRUE Answer: TRUE In the United

A person having origins in any of the original peoples of the Middle East belongs to the Caucasian racial group. Answer: TRUE Answer: TRUE Answer: TRUE An offering circular must be provided to the investors immediately after the purchase of a Regulation A offering. Answer: FALSE Answer: FALSE Answer: FALSE An ambiguity in a contract may constitute

The Racketeer Influenced and Corrupt Organizations Act (RICO) applies only to organized crime. Answer: FALSE Answer: FALSE Answer: FALSE The Miranda rights must be read to a suspect before he or she is detained by the police or other government officials. Answer: FALSE Answer: FALSE Answer: FALSE A threat of future harm or moral pressure is

Sex-plus discrimination occurs when an employer does not discriminate against a class as a whole but treats a subset of the class differently. Answer: TRUE Answer: TRUE Answer: TRUE An employee who earns tips must be paid minimum wage by the employer, excluding the income from tips. Answer: FALSE Answer: FALSE Answer: FALSE A fee simple

Explain in brief the Uniform Computer Information Transactions Act (UCITA). Answer: The National Conference of Commissioners on Uniform State Laws (a group of lawyers, judges, and legal scholars) drafted the Uniform Computer Information Transactions Act (UCITA). The UCITA establishes uniform legal rules for the formation and enforcement ofelectronic contracts and

Under the Treaty Clause, the ________ is seen as the agent of the United States in dealing with foreign countries. A) United Nations (UN) Secretariat B) U.S. president C) United Nations (UN) D) U.S. Senate Answer: B Answer: B Answer: B The ________ prohibits health insurance companies from terminating health insurance coverage when a person gets sick. A)

The implied warranty of merchantability requires that the quality of the goods must pass without objection in the trade. Answer: TRUE Answer: TRUE Answer: TRUE Sales that contain provisions of services and goods in the same transaction are not covered by Article 2 of the UCC. Answer: FALSE Answer: FALSE Answer: FALSE A corporation that uses

In a case of personal injury due to an accident, the statute of limitations begins to "run" at the time the accident occurs. Answer: TRUE Answer: TRUE Answer: TRUE Shareholder resolutions are usually made when the corporation is soliciting proxies from its shareholders. Answer: TRUE Answer: TRUE Answer: TRUE The U.S. Supreme Court has deemed the

The Natural Law School of jurisprudence emphasizes shaping laws based on morals and ethics. Answer: TRUE Answer: TRUE Answer: TRUE An orally agreed upon power of attorney is acceptable in court. Answer: FALSE Answer: FALSE Answer: FALSE An independent contractor cannot represent more than one principal at a time. Answer: FALSE Answer: FALSE Answer: FALSE Speech that is offensive

The Fair Credit Billing Act requires that creditors promptly acknowledge in writing consumer billing complaints and investigate billing errors. Answer: TRUE Answer: TRUE Answer: TRUE Within a state, the state constitution precedes the U.S. Constitution. Answer: FALSE Answer: FALSE Answer: FALSE The Robinson-Patman Act is a federal statute that makes it mandatory to provide a notification

A(n) ________ is established when one party licenses another party to use the first party's trade name, trademarks, commercial symbols, patents, copyrights, and other property in the distribution and selling of goods and services. A) proprietorship B) franchise C) implicit contract D) general partnership Answer: B Answer: B Answer: B The ________ is a federal statute that

The Anticybersquatting Consumer Protection Act (ACPA) is a federal statute that makes the misrepresentation of another person, business or organization using inappropriate words, imagery or other media illegal. Answer: FALSE Answer: FALSE Answer: FALSE What is a vertical merger? A) a merger between firms in totally unrelated businesses B) a merger that integrates the operations

Which of the following is true of a member-managed LLC? A) Each member has equal rights in the management of the business of the LLC. B) The member with the highest capital contribution becomes the de facto manager of the LLC. C) Any matter relating to the business of the LLC is decided

H-1B visa holders are allowed to bring their immediate family members to the United States under the H4 visa category. Answer: TRUE Answer: TRUE Answer: TRUE The Health Care Reform Act prohibits insurers from establishing an annual spending cap for benefit payments. Answer: TRUE Answer: TRUE Answer: TRUE A "whistleblower bounty program" allows a person who

Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the forklift he was operating toppled over. The forklift truck was designed and manufactured by Ionic Machines, Inc. Jorge received workers' compensation benefits for his injury. It was later determined that the forklift truck was not

Section 4205 of the Patient Protection and Affordable Health Care Act of 2010 requires restaurants and retail food establishments with 20 or more locations to disclose calorie counts of their food items. Answer: TRUE Answer: TRUE Answer: TRUE If a plaintiff is injured, the damages recoverable depend on the effect of the injury

The unfair advantage theory is intended to prevent wealthy companies from overwhelming the competition in a given market. Answer: TRUE Answer: TRUE Answer: TRUE Any state or local law that unduly burdens foreign commerce is considered to be in violation of the Foreign Commerce Clause. Answer: TRUE Answer: TRUE Answer: TRUE In general jurisdiction trial courts,

In a litigation process, the party who files a complaint is called the ________. A) bailiff B) plaintiff C) prosecutor D) defendant Answer: B Answer: B Answer: B Conch Corporation, a global oil and gas company, plans to open a subsidized postsecondary vocational school in the town of Cristen, where one of its offices is situated. The

Taking is defined as an act intended to "harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect" an endangered animal. Answer: TRUE Answer: TRUE Answer: TRUE Extortion of private persons is commonly referred to as blackmail. Answer: TRUE Answer: TRUE Answer: TRUE In federalism, the federal government and the state governments share powers. Answer:

A contractor's, laborer's, and material person's statutory lien that makes the real property to which services or materials have been provided security for the payment of the services and materials is known as a ________. A) material lien B) judgment lien C) tax lien D) construction lien Answer: D Answer: D Answer: D What is nolo contendere in

The United States considers Native American tribes as "domestic dependent" nations with limited sovereignty. Answer: TRUE Answer: TRUE Answer: TRUE The Clean Air Act does not apply to stationary sources of pollution. Answer: FALSE Answer: FALSE Answer: FALSE If the parties to a sales contract do not agree to the time, place, and manner of delivery

Federal statutes are organized by topic into code books. Answer: TRUE Answer: TRUE Answer: TRUE The death of one of the parties of a tenancy at will does not terminate the contract. Answer: FALSE Answer: FALSE Answer: FALSE Comparative negligence is a doctrine that says a plaintiff who is partially at fault for his or her own

A contract cannot be rescinded if there has been a mutual mistake. Answer: FALSE Answer: FALSE Answer: FALSE In a recognizance, a party agrees to pay a specified sum of money if another party does not pay it. Answer: TRUE Answer: TRUE Answer: TRUE An appropriate bargaining unit must consist of employees from a single company.

In a fully disclosed agency, an agent is not liable on the contract if he or she guarantees that the principal will perform the contract. Answer: FALSE Answer: FALSE Answer: FALSE The offeror cannot be found liable for the crime of bribery if the person to whom the bribe is offered rejects the

The Uniform Limited Liability Company Act is a model act that provides comprehensive and uniform laws for the formation, operation, and dissolution of LLCs. Answer: TRUE Answer: TRUE Answer: TRUE Licensing refers to a business arrangement that occurs when the owner of intellectual property contracts to permit another party to use the intellectual property.

The annual shareholders' meeting is held to elect new shareholders. Answer: FALSE Answer: FALSE Answer: FALSE A voluntary petition is a petition filed by a creditor that states that the debtor has debts. Answer: FALSE Answer: FALSE Answer: FALSE The No Electronic Theft Act (NET Act) can be invoked for copyright infringements that do not involve financial

The one-year rule states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing. Answer: TRUE Answer: TRUE Answer: TRUE Under the False Claims Act, a whistleblower can be awarded up to 25 percent of the amount recovered on behalf of

The World Trade Organization (WTO) dispute settlement body is the first body to hear a settlement dispute among member nations. Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] Answer: FALSE[/cpmembership] The manufacturer or seller is not liable if a product is materially altered or modified after it leaves the seller's possession and the alteration or modification causes