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Chapter 10a A duty to perform under a contract is never absolute
1. A duty to perform under a contract is never absolute. 1. In most contracts, promises of performance are not expressly conditioned. ANSWER: T XOAXOA: 213 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. Most contracts are discharged by rescission. […]
Chapter 10b The most common way to discharge a contract is by breach
1. The most common way to discharge a contract is by breach. 1. In most contracts, promises of performance are expressly qualified. ANSWER: F XOAXOA: 213 TYPE: N XOAXOA: AACSB Reflective AICPA Legal 1. A buyer’s duty to pay becomes […]
Chapter 11a the buyer or lessee loses the right to accept the goods
1. UCC Article 2 applies to sales transactions between all buyers and sellers. 1. A lessee is a party who transfers a right to the possession and use of goods under a lease. ANSWER: F XOAXOA: 235 TYPE: = XOAXOA: […]
Chapter 11b Corporation Contracts For The Sale Twelve Hunting rifles
1. UCC Article 2A covers any transaction that creates a lease of goods. 1. Under the UCC, a sales or lease contract will fail for indefiniteness if one or more terms are left open. ANSWER: F XOAXOA: 235 TYPE: N […]
Chapter 12a The purpose of tort law is to provide remedies when legally
1. The purpose of tort law is to provide remedies when legally protected interests have been invaded. 1. Tortfeasor is the term for a person who commits a tort. ANSWER: T XOAXOA: 268 TYPE: N XOAXOA: AACSB Analytic AICPA Legal […]
Chapter 12b The purpose of tort law is to punish criminal wrongdoers
1. The purpose of tort law is to punish criminal wrongdoers. 1. Perpetrator is the term for a person who commits a tort. ANSWER: F XOAXOA: 268 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. Defense of others is a […]
Chapter 13a The extreme risk of an activity is a primary basis for imposing
1. The extreme risk of an activity is a primary basis for imposing strict liability. 1. Under the doctrine of strict liability, liability is imposed strictly according to fault. ANSWER: F XOAXOA: 294 TYPE: N XOAXOA: AACSB Analytic AICPA Legal […]
Chapter 13b The basis for applying strict liability is an intentional wrongful
1. The basis for applying strict liability is an intentional wrongful act. 1. The extreme risk of an activity is a defense against imposing strict liability. ANSWER: F XOAXOA: 294 TYPE: N XOAXOA: AACSB Reflective AICPA Legal 1. Strict liability […]
Chapter 14a A beverage company that competes with Coca-Cola Company cannot call
1. A beverage company that competes with Coca-Cola Company cannot call its products “Koke.” 1. State and federal governments provide for the registration of trademarks. ANSWER: T XOAXOA: 310 TYPE: N XOAXOA: AACSB Reflective AICPA Legal 1. Trademark dilution requires […]
Chapter 14b A suggestive use of ordinary words may not be trademarked
1. In Case 14.1, The Coca-Cola Co. v. The Koke Co. of America, the United States Supreme Court permitted a Coca Cola competitor to call a product “Koke.” 1. A famous trademark may be diluted only by the unauthorized use […]
Chapter 15a If a debtor does not pay a mechanic’s lien, the debtor’s property
1. If a debtor does not pay a mechanic’s lien, the debtor’s property can be sold to satisfy the debt. 1. An artisan’s lien is possessory. ANSWER: T XOAXOA: 332 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. Federal law […]
Chapter 15b Frida Transfers property And Makes Payments That Favor
1. The holder of an artisan’s lien can foreclose and sell the property subject to the lien to satisfy the debt. 1. A writ of execution is a court order to execute a debtor after the entry of a final […]
Chapter 16a Legal harbor Bay Bank Has Made Mortgage Loans
1. The loan that a lender provides to enable a borrower to purchase real property is a mortgage. 1. The initial interest rate is the part of a purchase price that is paid up front in cash. ANSWER: F XOAXOA: […]
Chapter 16b Clear Lake Credit That She Will Soon
1. A recession is a written instrument that gives a creditor an interest in real property being acquired by a debtor as security for the debt’s payment. 1. To refinance is to pay off an original mortgage and obtain a […]
Chapter 17a The Term Also Two Years refer Fact Pattern
1. The simplest form of business is a sole proprietorship. 1. A franchise contract may use only one type of business organization— the sole proprietorship. ANSWER: F XOAXOA: 380 TYPE: N XOAXOA: AACSB Reflective AICPA Critical Thinking 1. A franchise […]
Chapter 17b Omar’s Weekly Payroll Expense can Amount Omar’s Monthly
1. A sole proprietor owns the entire business but doe not receive all of the profit. 1. In choosing a form of business organization for a new enterprise, important factors include the liability of the owner. ANSWER: T XOAXOA: 380 […]
Chapter 18a Cecilia’s State Like The Law Most States
1. A limited liability company can be taxed as a partnership. 1. Limited liability companies (LLCs) are governed by state LLC statutes. ANSWER: T XOAXOA: 402 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. A limited liability company (LLC) formed […]
Chapter 18b A limited liability company is a citizen of every state in which
1. Limited liability companies (LLCs) are governed by a federal LLC statute. 1. The owners of a limited liability company enjoy limited liability. ANSWER: T XOAXOA: 403 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. A limited liability company can […]
Chapter 19a A corporation is a legal entity created and recognized by federal law
1. A corporation is a legal entity created and recognized by federal law. 1. Corporate profits can be subject to double taxation. ANSWER: T XOAXOA: 418 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. A holding company is a company […]
Chapter 19b the courts will require the owners to assume personal liability
1. When a corporation earns profits, it must distribute them to shareholders. 1. A corporation is referred to as a domestic corporation by its home state. ANSWER: T XOAXOA: 420 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. A publicly […]
Chapter 1a Congress And The State Legislature uniform Laws Drafted
1. The stability and predictability of the law is essential to business activities. 1. Law is a body of enforceable rules governing relationships among individuals and between individuals and their society. ANS: T XOAXOA: 2 XOAXOA: = XOAXOA: AACSB Analytic […]
Chapter 1b Congress can only pass legislation that falls within the limits
1. Congress can only pass legislation that falls within the limits set up by the U.S. Constitution. 1. The U.S. Constitution is the supreme law of the United States. ANSWER: T XOAXOA: 4 TYPE: = XOAXOA: AACSB Analytic AICPA Legal […]
Chapter 20a An employee may not act in the capacity of an agent
1. An employee may not act in the capacity of an agent. 1. Normally, all employees who deal with third parties are deemed to be agents. ANSWER: T XOAXOA: 450 TYPE: N XOAXOA: AACSB Reflective AICPA Legal 1. Independent contractors […]
Chapter 20b Agency relationships do not exist between employers and employees
1. Agency relationships do not exist between employers and employees. 1. Employment laws apply only to the employer-employee relationship. ANSWER: T XOAXOA: 450 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. An independent contractor may not act in the capacity […]
Chapter 21a under employment-at-will doctrine, an employer may fire an employee
1. Generally, under employment-at-will doctrine, an employer may fire an employee at any time for any reason. 1. Courts in a few states have held that all employment contracts an im– plied covenant of good faith. ANSWER: T XOAXOA: 474 […]
Chapter 21b A large business must provide notice before closing a plant that employs
1. Federal wage-hour laws cover all employers engaged in interstate commerce. 1. Generally, under employment-at-will doctrine, an employee may quit a job at any time for any reason. ANSWER: T XOAXOA: 474 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. […]
Chapter 22a An employer’s discrimination against job applicants or employees
1. An employer’s discrimination against job applicants or employees on certain grounds may violate federal law. 1. The Civil Rights Act of 1964 does not prohibit job discrimination in the hiring process. ANSWER: F XOAXOA: 493 TYPE: N XOAXOA: AACSB […]
Chapter 22b The Civil Rights Act of 1964 prohibits job discrimination on the basis
1. The Civil Rights Act of 1964 prohibits job discrimination on the basis of intelligence. 1. Any employee, except an undocumented alien, can bring an action for employment discrimination. ANSWER: F XOAXOA: 493 TYPE: N XOAXOA: AACSB Analytic AICPA Legal […]
Chapter 23a An employer may hire an illegal immigrant if the employer files aspecial
1. An employer may hire an illegal immigrant if the employer files a special form. 1. Good faith is the only defense to a charge that an employer fails to possess certain paperwork with respect to its employees. ANSWER: F […]
Chapter 23b An employer must verify documents establishing a prospective
1. An employer must verify documents establishing a prospective worker’s identity. 1. An independent contractor is not subject to the employment eligibility verification requirements. ANSWER: T XOAXOA: 514 TYPE: = XOAXOA: AACSB Analytic AICPA Legal 1. If an employee presents […]
Chapter 24a All statutes that serve to protect the interests of consumers are classified
1. All statutes that serve to protect the interests of consumers are classified as consumer law. 1. Federal laws often provide more sweeping and significant protections for the consumer than state laws. ANSWER: F XOAXOA: 538 TYPE: + XOAXOA: AACSB […]
Chapter 24b Common law judicial decisions that serve to protect the interests of consumers
1. Common law judicial decisions that serve to protect the interests of consumers are not classified as consumer law. 1. State laws often provide more sweeping and significant protections for the consumer than federal laws. ANSWER: T XOAXOA: 538 TYPE: […]
Chapter 25a All environmental law consists of statutes and regulations
1. All environmental law consists of statutes and regulations. 1. Under the common law doctrine of nuisance, persons may be liable if they file a suit against a business polluter that views the suit as a nuisance. ANSWER: F XOAXOA: […]
Chapter 25b Injured individuals can rely on the common law to obtain damages
1. Injured individuals can rely on the common law to obtain damages and injunctions against business polluters. 1. A public authority—such as a state’s attorney general—can sue to stop a “public” nuisance. ANSWER: T XOAXOA: 555 TYPE: N XOAXOA: AACSB […]
Chapter 26a The owner of real property has relatively exclusive rights to the airspace
1. The owner of real property has relatively exclusive rights to the airspace above the land. 1. The owner of a fee simple absolute has the right to use property for whatever purpose he or she sees fit. ANSWER: T […]
Chapter 26b Land includes all of the waters on its surface
1. Land includes all of the waters on its surface. 1. In a fee simple absolute, the owner has the greatest aggregation of rights, privileges, and power possible. ANSWER: T XOAXOA: 572 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. […]
Chapter 27a Market power is the extent to which a firm can exclude competition
1. Market power is the extent to which a firm can exclude competition. 1. A firm that can ignore its competitors in setting a price for its product has no market power. ANSWER: F XOAXOA: 593 TYPE: = XOAXOA: AACSB […]
Chapter 27b Antitrust law prohibits anticompetitive practices
1. Antitrust law prohibits anticompetitive practices. 1. Monopoly power is an extreme amount of market power. ANSWER: T XOAXOA: 593 TYPE: = XOAXOA: AACSB Analytic AICPA Legal 1. Using market power to drive competitors out of business is illegal. ANSWER: […]
Chapter 28a If an agreement is a per se violation of antitrust laws
1. If an agreement is a per se violation of antitrust laws, there must be further inquiry into its reasonableness. 1. Under the rule of reason, a court will consider the effect or the potential effect of a business agreement […]
Chapter 28b Under the rule of reason, a court will consider the purpose of
1. Under the rule of reason, a court will consider the purpose of an agreement between competitors. 1. A vertical restraint is any agreement that in some way restrains competition between rival firms competing in the same market. ANSWER: F […]
Chapter 29a The Securities and Exchange Commission interprets federal securities laws
1. The Securities and Exchange Commission interprets federal securities laws, but does not investigate violations. 1. The Securities and Exchange Commission administrative law judges hear cases involving alleged securities law violations. ANSWER: T XOAXOA: 627 TYPE: N XOAXOA: AACSB Analytic […]
Chapter 29b Tech Software Company Learns That Tech Engineer has
1. The Securities and Exchange Commission creates regulations governing the purchase and sale of securities. 1. The Securities and Exchange Commission can seek sanctions against those who violate foreign securities laws. ANSWER: T XOAXOA: 627 TYPE: N XOAXOA: AACSB Analytic […]
Chapter 2a Reflective1aicpa Legal drummond Wants Make Federal Case Out
1. Federal courts are superior to state courts. 1. The courts can decide whether the other branches of government have acted within the scope of their constitutional authority. ANSWER: T XOAXOA: 28 TYPE: = XOAXOA: AACSB Analytic AICPA Legal 1. […]
Chapter 2b Thunder Bay Utility Company And seeks Examine Certain
1. The function of the courts is to interpret and apply the law. 1. State courts are inferior to federal courts. ANSWER: F XOAXOA: 28 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. The political branch of government is the […]
Chapter 30a Sustainability—economic development that meets the needs of the present
1. Sustainability—economic development that meets the needs of the present without compromising the ability of future generations to meet their needs—is directly addressed by a. no U.S. statute or other nation’s law. b. U.S. federal environmental laws. c. other nations’ […]
Chapter 30b Biotech Corporation And hybrid Genetics Company The Firms
1. Sustainability—economic development that meets the needs of the present without compromising the ability of future generations to meet their needs—has been legislatively committed to by a. no state statute or federal law. b. at least one state—Oregon. c. federal […]
Chapter 31a Arnie posts online a note that “I have good pix of child & me”
1. Arnie posts online a note that “I have good pix of child & me” with a link to several pictures of minors engaged in sex. Arnie is charged with violating a statute that makes it a crime to distribute […]
Chapter 31b Congress intends to enact a law to criminalize the distribution of
1. Congress intends to enact a law to criminalize the distribution of illegal child pornography on the Internet. Most likely to be held constitutional is a statute that prohibits a. offers to provide, and requests to obtain, child pornography. b. […]
Chapter 32a Game makers File Suit against The State Block The
1. Sports Fit Company sponsors the “$100,000 Game” in which contestants compete in ten separate athletic events over a period of weeks. Sports Fit announces that the winner of each event will be awarded $5,000 with the “Ultimate Champion”—the winner […]
Chapter 32b GPS Devices Inc. sponsors a “Finders Keepers!” contest in which
1. GPS Devices Inc. sponsors a “Finders Keepers!” contest in which Erwin and other entrants agree to race to certain locales to win small prizes and collect clues that lead to the “Grand Lost Treasure,” which the first finder will […]
Chapter 33a Twisted Dipsy Pretzels Inc. offers entrepreneurs the opportunity
1. Twisted Dipsy Pretzels Inc. offers entrepreneurs the opportunity to operate a franchise under the Twisted Dipsy trade name as a member of a select group of dealers that engage in the retail pretzel-concession business. To potential investors, Twisted Dipsy […]
Chapter 33b Jumbo Juice Inc. offers entrepreneurs the opportunity to operate
1. Jumbo Juice Inc. offers entrepreneurs the opportunity to operate a franchise under the Jumbo Juice trade name as a member of a select group of dealers that engage in retail juice sales. To potential investors, the franchisor must provide […]
Chapter 34a A gri Equip Service & Supply, Inc., sends Merilyn an e-mail in which
1. AgriEquip Service & Supply, Inc., sends Merilyn an e-mail in which AgriEquip offers to employ her for certain hours and a specific amount of money over a limited period of time. She responds with a counteroffer that reduces the […]
Chapter 34b Ghani cannot a disclose Ghani’s interest in property that Huey is buying
1. Pharma Meds Corporation employs Ogilvie under an employment contract that sets out a specific amount of money to be paid for certain results over a stated period of time. During the term of the contract, it becomes clear that […]
Chapter 35a One Argument Favor Requiring Cool To disclose This
1. Thai Pizza Corporation is a restaurant chain with twenty locations. Under federal law, Thai Pizza must post a. the caloric content of the foods on the chain’s menu. b. the recipes for the dishes on the chain’s standard menu. […]
Chapter 35b the calorie content of the food on a menu must be posted by Organic
1. Under federal law, the calorie content of the food on a menu must be posted by Organic Mix, LLC, if Organic Mix is a. a restaurant chain with twenty or more locations. b. a food distributor with twenty or […]
Chapter 3a Inc Are Engaged Court annexed Arbitration Proceedings The
1. Pretrial mediation is never mandatory. 1. All courts require arbitration before a case goes to trial. ANSWER: F XOAXOA: 57 TYPE: N XOAXOA: AACSB Reflective AICPA Legal 1. Alternative dispute resolution methods are generally less expensive and time consuming […]
Chapter 3b Few corporate lawsuits are settled or dismissed before they
1. Few corporate lawsuits are settled or dismissed before they go to trial. 1. A mini–trial is a private proceeding in which each party’s attorney argues the party’s case before the other party. ANSWER: T XOAXOA: 58 TYPE: = XOAXOA: […]
Chapter 4a Guidelines For judging Individual Actions Include All The
1. Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior. 1. Business ethics focuses on ethical behavior in the business world. ANSWER: T XOAXOA: 76 TYPE: = XOAXOA: AACSB Ethics AICPA Risk Analysis 1. […]
Chapter 4b Ethics is concerned with the fairness or justness of an action
1. Ethics is concerned with the fairness or justness of an action. 1. Business ethics applies only to the owners, operators, and employees of corporations. ANSWER: F XOAXOA: 76 TYPE: N XOAXOA: AACSB Ethics AICPA Risk Analysis 1. An action […]
Chapter 5a The state governments retain all powers not specifically delegated
1. The state governments retain all powers not specifically delegated to the federal government. ANSWER: T XOAXOA: 98 TYPE: = XOAXOA: AACSB Analytic AICPA Legal 1. Under their police powers, states can regulate only public activities, such as political demonstrations. […]
Chapter 5b All powers not specifically delegated to the federal government
1. All powers not specifically delegated to the federal government are reserved to the states. 1. Under their police powers, states can regulate private activities to protect or promote the public order, health, safety, morals, and general welfare. ANSWER: T […]
Chapter 6a Like statutory law, administrative law is created by legislatures
1. Like statutory law, administrative law is created by legislatures. 1. State regulation, when not preempted, may cover many of the same activities as federal regulation. ANSWER: T XOAXOA: 117 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. Federal administrative […]
Chapter 6b Legal Only experts can submit comments on a proposed administrative rule
1. Administrative law is created by administrative agencies, not by legislatures. 1. State regulation, when not preempted, may regulate independently the activities that federal regulation does not cover. ANSWER: T XOAXOA: 117 TYPE: N XOAXOA: AACSB Analytic AICPA Legal 1. […]
Chapter 7a A misdemeanor is a crime punishable only by a fine
1. A misdemeanor is a crime punishable only by a fine. 1. Thinking about killing someone constitutes the crime of attempted murder. ANSWER: F XOAXOA: 139 TYPE: N XOAXOA: AACSB Reflective AICPA Legal 1. A wrongful mental state is typically […]
Chapter 7b Most criminal liability depends on the performance of a prohibited
1. Most criminal liability depends on the performance of a prohibited act. 1. The crime of theft does not require that the perpetrator know whatever is taken belonged to another. ANSWER: F XOAXOA: 140 TYPE: N XOAXOA: AACSB Analytic AICPA […]
Chapter 8a International law is a body of law that governs relations among
1. International law is a body of law that governs relations among nations. 1. An international custom is a general practice accepted in the interna– tional arena as law. ANSWER: T XOAXOA: 163 TYPE: = XOAXOA: AACSB Analytic AICPA Legal […]
Chapter 8b International law attempts to reconcile the authority of each nation
1. International law attempts to reconcile the authority of each nation over its own affairs with its desire to benefit from trade and harmonious relations. 1. In a civil law system, the courts independently develop the rules governing certain areas […]
Chapter 9a Keaton Unlicensed Physician Perform plastic Surgery a Medical Procedure
1. The rules of contract law are often followed to avoid potential disputes. 1. If a contractual promise is not fulfilled, the person who made it is not subject to the sanctions of a court. ANSWER: F XOAXOA: 185 TYPE: […]
Chapter 9b Laurel Valley Medico Inc Exchange for Bonus Payment
1. One of the elements of a valid contract is a fair price. 1. A party’s intent to enter into a contract is judged by their personal, subjective intent or belief. ANSWER: F XOAXOA: 185 TYPE: N XOAXOA: AACSB Analytic […]