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Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers a. […]

Loni and Myra enter into a contract for a sale of clarinets and other wind instruments. Loni delivers, but Myra does not pay. Loni can normally recover as damages the difference between a. any loss avoided and any profit gained. […]

Tasty Pastries, Inc., and other bakers refer to a “bakers dozen as consisting of a collection of thirteen baked goods. This is an example of a. course of dealing. b. course of performance. c. square dealing. d. usage of trade. […]

A suspect cannot be tried twice in the same court for the same crime. Vishing is phishing that involves voice communication. Answer: T Contract law governs franchise relationships. Answer: T A quitclaim deed warrants more than any other deed. Answer: […]

In studying the legal environment of business, Professor Dooleys students also review ethics in a business context. Ethics includes the study of what constitutes a. fair or just behavior. b. financially rewarding behavior. c. legal behavior. d. religious behavior. Canada […]

To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include all essential terms. Normally, a court of law will not question the adequacy of consideration. Answer: T According to utilitarianism, it does not matter […]

Constructive delivery does not satisfy the delivery requirement for an effective bailment. Under an exclusive-dealing contract, a seller promises a buyer a certain territory in which the buyer will have no direct competition. Answer: F The four broad types of […]

A suggestive use of ordinary words may not be trademarked. Jen operates Jens Fruits & Vegetables, a small market stocked entirely with produce grown on her adjacent farm. Under what clause of the Constitution can the federal government regulate Jens […]

Detailed Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is a. a “person of ethnic similarity to the employers workforce. b. a […]

An agent is authorized to act on behalf of a principal in doing business with third parties. Concurrent jurisdiction exists when both federal and state courts have the power to hear a particular case. Answer: t A consumer lease is […]

The basic purpose of antitrust law is to regulate economic competition. A written stop payment order is valid for fourteen days. Answer: F To avoid liability for negligence, a business owner must protect its patrons against all risks. Answer: F […]

Guaranty Bank receives a check drawn on the account of Get-Rich Industries, Inc., one of the banks customers, at 3 p.m. Friday. Garry, the presenter of the check, is not one of the banks customers. The bank uses deferred posting […]

Fact Pattern 25-1 First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company. Refer to Fact Pattern 25-1. […]

Rally Speedboat Corporation refuses to sell its products to Super Weekends, Inc., a recreational water products dealership. This is a. an exclusive-dealing contract. b. a horizontal market division. c. attempted monopolization. d. a unilateral refusal to deal. Fact Pattern 10-1 […]

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take. Dumping is the sale of imported goods at “greater than fair value. Answer: F In most states, the courts no longer grant […]

Ryan, the owner of SuperMart Stores, Inc., adheres to the “principle of rights theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects a. the right determination under a cost-benefit […]

The Idaho Supreme Court rules against Jiffy Mart in a case against Kwik Stop Stores, Inc. Jiffy Mart files an appeal with the United States Supreme Court. The Court does not hear the case. This a. is a decision on […]

A check, like other negotiable instruments, is a formal contract. To commit an intentional tort, one person must intend to harm a certain other person. Answer: F A federal law that conflicts with the U.S. Constitution will be deemed unconstitutional. […]

Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be a. its greater organizational flexibility. b. its limited liability. c. its […]

A decision on a given issue by a court is not binding on an inferior court. A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any […]

A corporate officer is not an agent for the corporation. A bill of lading serves as a contract for the transportation of goods. Answer: t A limited partner has a right to participate in the management or operation of the […]

Cal sells “DownSize, a weight-reduction program, from a Web site, in competition with Eat-Less Inc.s product “Fit n Trim. Eat-Less files a suit against Cal, alleging in part that he is a sole proprietor, but his enterprise should be deemed […]

A principal owes an agent a duty of ratification. A promise to pay for an act that has already occurred is enforceable because the event is certain. Answer: F A creditor with a mechanics lien on property can sell the […]

A generic term is not protected under trademark law unless it acquires a secondary meaning. A buyers breach of a contract will not usually give the seller the right to cancel the contract. Answer: f If a lessors tender of […]

Jay is a surety for Karens loan from Little Bank. Jays right to be repaid by Karen after having paid her debt is the right of a. contribution. b. redemption. c. reimbursement. d. subrogation. Cory employs Daily Delivery Agency as […]

Merchants are required to warrant that the goods they sell are fit for their ordinary purpose. The anonymous nature of technology helps in the prosecution of cyber crime. Answer: F Ethical standards based on religious teachings tend to be absolute. […]

A lessee is a party who transfers a right to the possession and use of goods under a lease. A usurious contract involves the purchase and sale of usable goods. Answer: F Dumping is the exporting of environmentally polluting goods […]

An employer is not liable for the sexual harassment of an employee by a co-worker. Drugs must be shown to be effective and safe before they can be marketed. Answer: T An “assignment of all rights absolves the assignor of […]

Jack buys a Kitchens, Inc., franchise, which the franchisor later terminates. In determining whether the termination was proper, a court will generally a. balance the rights of both parties. b. emphasize the right of Kitchens, Inc., to its business operation. […]

Ethan is seventeen years old. Under the Fair Labor Standards Act, Ethan cannot work a. during school hours. b. in a hazardous occupation. c. more than eighteen hours per week. d. without a special permit. Gladstone regularly sends unsolicited commercial […]

Kailin owns a farm near Manhattan, Kansas, with a farmhouse, barn, and other structures permanently attached. Kailin grows soybeans on the property. A pond lies within the boundaries. Land includes a. the pond, the soil, and the structures. b. the […]

Theoretically, Congress can regulate every commercial enterprise in the United States. Chris promises Dina $40,000 if she graduates from Eagle College. Dina enrolls in Eagle, attends full-time for four years, and graduates. When Dina asks Chris for $40,000, Chris says, […]

Dizzy is not Edwinas agent but enters into a contract with Frida on Edwinas behalf. Edwina later contacts Frida to approve the contract. This is a. an agency by agreement. b. an agency by estoppel. c. an agency by ratification. […]

Seaside Cannery, Inc., is one of many producers of canned seafood. Seaside refuses to sell its products to Port Harbor Restaurant Corporation. This refusal is most likely a. an anticompetitive practice in violation of the Clayton Act. b. a per […]

A trade name cannot be registered with the federal government if it is also a trademark. Only private attorneys prosecute criminal defendants. Answer: F A certificate of deposit is a type of draft. Answer: F In most cases, merging corporations […]

The words used in an insurance contract are interpreted against the party who applied for the policy. The Foreign Sovereign Immunities Act spells out the particulars of what constitutes a commercial activity. Answer: F The common law doctrine of nuisance […]

Any lawful contract can form the potential basis for an action based on wrongful in- terference with a contractual relationship. The United States Supreme Court can review a decision by a states highest court only if a question of federal […]

Persons whose names appear in a corporations stock book are ordinarily entitled to notice of shareholders meetings and the right to vote. The role played by women may present some difficult ethical problems for firms doing business internationally. Answer: T […]

Readmore Bookstore Corporation files a registration statement with the Securities and Exchange Commission and provides a prospectus describing the securities to investors. These items are intended to provide sufficient information so that the financial risks involved can be evaluated by […]

Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of ether owner, that owners interest in the stock passes to the surviving owner. This is a. a joint tenancy. b. a tenancy by the […]

Edgy Engine Components, Inc., a maker of vehicle parts, refuses to sell to Fidgety Fix-It, Inc., a national vehicle service firm. Edgy Engine convinces Greasy Motor Parts Company, a competitor, to do the same. This is a. a group boycott. […]

Consumer Shops, Inc., signs a lease for a storefront owned by Downtown Building Company. Unlike a purchaser of real property, Consumer Shops a. acquires only temporary possession of the premises. b. enjoys exclusive possession of the premises. c. holds only […]

A patent applicant must demonstrate that the invention, discovery, or design is commercially practicable to receive a patent. Before a discharge is granted, a debtor can transfer property or make a payment in preference to one creditor over another. Answer: […]

Intoxicated, Clio agrees to sell her restaurant, Diners Café, to Evan for half of its real market value. This deal is most likely void if a. Clio appeared intoxicated to Evan. b. Clio disaffirms the contract after becoming sober. c. […]

A trade association practice or agreement that restrains trade is analyzed under the rule of reasons. Insurance coverage is never effective until a formal written policy is issued. Answer: F Good intention is a complete defense to conversion. Answer: F […]

Bea is a shareholder of Candy Confections Corporation. The right to inspect corporate books and records is a. held by Bea only if she is a director. b. held by Bea, without restrictions. c. held by Bea, with some restrictions. […]

Business ethics applies only to the owners, operators, and employees of corporations. To violate antitrust law, an attempt to monopolize a market must be intended to exclude competition and garner monopoly power. Answer: T Presentment warranties protect the person who […]

Estray statutes determine ownership rights in fungible goods that have ‘strayed. The extreme risk of an activity is a primary basis for imposing strict liability. Answer: T Precise Engineering Corporation has a contract with Quik Mart Stores to provide customized […]

Emil wants to initiate a suit against Fast Credit Company by filing a complaint. The complaint should include a. an explanation of the proof to be offered at trial. b. a motion for judgment n.o.v. c. a motion for judgment […]

Thor Power Products Corporation permits its directors to be elected by cumulative voting. This a. allows minority shareholders to be represented on the board. b. assures directors that they will be selected by their peers. c. guarantees Thors executive officers […]

Rodeo, S.A., which is based in Spain, enters into a contract for the sale of seven hydraulic lifts to Tonnage Shipping Company, which is based in the United States. This contract is governed by a. Spanish law. b. the provisions […]

Kennedy Capital Corporation provides other firms with funds to expand operations. If Kenney strictly complies with existing laws, the firm will a. fulfill all business ethics obligations. b. fulfill no business ethics obligations. c. fulfill some business ethics obligations. d. […]

A breach of contract may entitle the innocent party to rescind the contract. Two persons can hold property only as tenants in common. Answer: F An attachment is a court-ordered seizure and taking into custody of property prior to the […]