Law for Business and Personal Use (DECA) 19th Edition

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON11QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers A.equity B.laws C.positivelaw D.KingsBench E.precedent F.injunction G.jurisdiction H.jury I.commonlaw J .code 1.Agroupoflawsinorganizedform1._____ 2.Thepowertodecideacase2._____ 3.Lawthatisbasedoncurrentstandards orcustoms 3._____ 4.Panelofcitizenswhohelpinterpret societyscustoms 4._____ 5.Enforceablerulesofconductinsociety5._____ 6.Anorderthatpreventssomethingfrom beingdone 6._____ 7.Lawdictatedbyasovereignorhigher authority 7._____ 8.CourtappointedbyKingHenryII8._____ 9. Fairness9._____ 10.Usingpriorcasesasaguidefor decidingsimilarnewcases 10._____ LegalApplications 11.Carlossoldthetreesonhis300acrefarmtoRedicutLumberCompany.Redicut usedloggingequipmentandmethodsthatcausedsevereerosiononsteep hillsidesanddrainageproblemsinlowlyingareas.HowmightCarlosscase havebeendecidedinanearlyEnglishcommonlawcourt? 12.HowwouldCarlosscasehavebeenhandleddifferentlyinanequitycourt? Chapter 1 Laws and Their Ethical Foundation 1-1 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON101QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1.Contractstocommita(n)?_areunenforceable. 1._______ 2.Partiestoanillegalagreementoftenarenot?_,which meansofequalguilt. 2._______ 3. Thepracticeoflendingmoneyatahigherratethanthestates maximumallowablerateis?_. 3._______ 4. Topreservecompetition?_havebeenenactedatthe federalandstatelevels. 4._______ 5.Peoplewhoborrowmoneyforwhichnoexactinterestrateis statedwillbechargedthe?_. 5._______ 6.A(n)?_isabetontheuncertainoutcomeofanevent.6._______ 7.State?_prohibitsalesofworthlessstocksandbonds.7._______ 8. Theactofrefrainingfrominformingonanallegedcrimefor moneyorotherconsiderationiscalled?_acrime. 8._______ 9. ?_isaformofbettinginwhichthosewhobetonthe winnersharethetotalprize. 9._______ 10. Personsengagedintradesmustobtaina(n)?_.10.______ 11.A(n) ?_ isissuedtoraiserevenueratherthantoprotect thepublic. 11.______ 12. ?occurswhencompetingfirmsagreeonthesameprice tobechargedforcertainproductsorservices. 12.______ 13.Apersonwhodoesnotknowacontractisillegalis _____?______. 13.______ 14.A(n)_____?______contractisagrosslyunfairthatthepartiesto itunderordinarycircumstanceswouldnotaccept. 14.______ 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a

Chapter 11 Contractual Obligations and Their Enforcement 2-89 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use Chapter 11

Chapter 12 Contractual Aspects of Marriage and Divorce 2-103 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Chapter

Chapter 12 Contractual Aspects of Marriage and Divorce 2-115 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON131QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. 1. ?aregoodsthatspecificallyfulfilltheobliga tionsunderthecontract. 1._____________ 2.A(n)?isapersonorcompanywhosells goods. 2._____________ 3.Acontractmaybedeclared?___ifitcontains anygrosslyunfairclauses. 3._____________ 4.The?requiresthetenderofgoodstomatch thebuyersorderabsolutely. 4._____________ 5.A(n)?isareceiptthatservesasawrittenevi denceofthetransferofownershipofgoods. 5._____________ 6.Apersonwhopurchasesgoodsisa(n)?.6._____________ 7.A(n)?occurswhenthetransferofgoodswill takeplaceinthefuture. 7._____________ 8.Tangible,movable,personalpropertysuchas clothingorfoodiscalled?. 8._____________ 9.Twoparties?whentheyexchangegoodsfor goods. 9._____________ 10. ?istheconsiderationforasale.10._____________ LegalApplications 11.Whileontheirtwoweekhoneymoon,KeithandReginastayedatahotelwhere thenightlyratewas$65.Theyboughttworollsoffilmandabatteryfor$19.95 atatouristshop.KeithtooksomeoftheirclothestoImperialCleanersand agreedtopay$45tohavethemcleaned.Reginatradedoneofherbraceletsfora handcarvedwoodengiraffe.Doanyofthesetransactionsqualifyasasale?Ex plainyouranswer. Chapter 13 Sales Contracts 3-1 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a

3-16 Chapter 14 Ownership and Risk of Loss in Sales 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom

Enrichment Activity Answerswillvary. Lesson142 Quiz 1.C4.A7.I10.D 1.C4.A7.I10.D 1.C 4.A 7.I 10.D 2.J 3.G 5.H 6.F 8.B 9.E 11.TheriskoflossisnottransferredtothedealerinPhiladelphiauntilthevehiclesareactuallydeliveredinPhiladelphia. 11.TheriskoflossisnottransferredtothedealerinPhiladelphiauntilthevehiclesareactuallydeliveredinPhiladelphia. 11.TheriskoflossisnottransferredtothedealerinPhiladelphiauntilthevehicles areactuallydeliveredinPhiladelphia. Practice Activity 1.No,Jasonwillnotwin.UndertheUCC,whengoodsaretransferredwithoutbe ingmoved,theriskoflosstransferstothebuyeronacknowledgmentbythe baileeofthebuyersrighttopossessthegoods,eventhoughtitlepasseswhenthewarehousemadethenotation.However,riskoflossstayswiththeselleruntilthetransferisacknowledgedbythebuyer.Underthisrule,judgmentwasforEckrich,sinceithadnotyetacknowledgedthetransfer.Becausethesellerisinthebetterpositiontoknowofthetransfer,thesellermustdowhatisnecessarytotransfertheriskovertobuyer.Ifsellerhadmadesurebuyerwasnotifiedimmediately,evenbyaphonecall,thenbuyercouldhavetakenoutinsuranceinordertoguardagainsttherisk.However,withsellernotdoingso,buyerwasnotinapositiontoprotectagainstthelossandsellermustbearthecost. baileeofthebuyersrighttopossessthegoods,eventhoughtitlepasseswhenthewarehousemadethenotation.However,riskoflossstayswiththeselleruntilthetransferisacknowledgedbythebuyer.Underthisrule,judgmentwasforEckrich,sinceithadnotyetacknowledgedthetransfer.Becausethesellerisinthebetterpositiontoknowofthetransfer,thesellermustdowhatisnecessarytotransfertheriskovertobuyer.Ifsellerhadmadesurebuyerwasnotifiedimmediately,evenbyaphonecall,thenbuyercouldhavetakenoutinsuranceinordertoguardagainsttherisk.However,withsellernotdoingso,buyerwasnotinapositiontoprotectagainstthelossandsellermustbearthecost. baileeofthebuyersrighttopossessthegoods,eventhoughtitlepasseswhen thewarehousemadethenotation.However,riskoflossstayswiththesellerun tilthetransferisacknowledgedbythebuyer.Underthisrule,judgmentwasfor Eckrich,sinceithadnotyetacknowledgedthetransfer.Becausethesellerisin thebetterpositiontoknowofthetransfer,thesellermustdowhatisnecessary totransfertheriskovertobuyer.Ifsellerhadmadesurebuyerwasnotified immediately,evenbyaphonecall,thenbuyercouldhavetakenoutinsurancein ordertoguardagainsttherisk.However,withsellernotdoingso,buyerwas notinapositiontoprotectagainstthelossandsellermustbearthecost. Reteach Theteacherwilldetermineifthestudentsareansweringcorrectlyinthegame. Theteacherwilldetermineifthestudentsareansweringcorrectlyinthegame. Theteacherwilldetermineifthestudentsareansweringcorrectlyinthegame. Enrichment Activity Answerswillvary. Answerswillvary. Answerswillvary. Chapter 14 Ownership and Risk of Loss in Sales 3-29 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise

STUDENT _______________________________________ CLASS _______________________ DATE _________ TEST CHAPTER15 SECTION IIDENTIFY LEGAL TERMS Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow hethereachofthefollowingstatementsistrueorfalse.w Answers 1 .Abreachofwarrantyisnotabreachofcontract. 2.NewdrugscannotbemarketedinthiscountrywithoutFDAap proval. 3.Competitionisthedrivingforcebehindthecreationandim provementofproductsandservices. 4.Productliabilitylawshaveincreasedinrecentyearstoprotectin juredplaintiffs. 5.Awarrantyisastatementaboutaproductsqualitiesorperform anceandthereforeisnotgovernedbytheUCC. 6.ThefederalMagnusonMossWarrantyActappliesonlytowritten warrantiesoncertainproductssoldtoconsumers. 7 .Puffingandwarrantiesarebothstatementsoffact. 8.Awarrantyagainstinfringementbasicallyrequiresthatthegoods befitfortheordinarypurposesforwhichsuchgoodsareused. 9.Merchantabilityrequiresthatanywarrantyprotectionthatiscus tomaryinthetradebeextendedtoallbuyers. 10.Arepudiationorrenunciationofarightorpowertypicallyorle gallyvestedinapersonisadisclaimer. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Chapter 15 Consumer Protection 3-41 2012 Cengage Learning. All

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON161QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1.Theworksofanauthororanartistareprotected bya(n)? 1._______________________ 2. ?istheunauthorizedcopying,sale,dis play,orperformanceofawork. 2._______________________ 3.A(n)?isauniqueword,mark,orsym bolthatidentifiesaservice. 3._______________________ 4. ?isathingthatissubjecttoownership andagroupofrelatedlegalrights. andagroupofrelatedlegalrights. andagroupofrelatedlegalrights. 4._______________________ 5. ?isadoctrinethatlessenstheconse quencesofcopyrightinfringement. quencesofcopyrightinfringement. quencesofcopyrightinfringement. 5._______________________ 6.A(n)?isthegrantoftheexclusiveright tomake,use,andsellanovelornew,non obvious,usefulproductorprocess. 6._______________________ 7. ?propertyissomethingthatisnotreal propertyandiseithertangibleorintangible. 7._______________________ 8.A(n)?isaword,mark,symbol,orde vicethatidentifiesaproductofaparticular manufacturerormerchant. 8._______________________ 9. ?propertyissomethingthatispurely intangible. 9._______________________ LegalApplication 10.DavidThomasiswritingabookaboutgreatBritishauthors.Heplanstoquote fromseveralofShakespearesplays.WouldDavidneedtoobtainpermissionor payafeetousethesequotations?Whyorwhynot? Chapter 16 Property and Its Acquisition 4-1 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON171QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1. Abailmentisthetransferofpossessionsand ?ofpersonalpropertysubjecttoan agreementtoreturntheproperty. 1._______________________ 2. Thepartywhogivesuppossessionofproperty isthe?. 2._______________________ 3. ?occurswhenapersonhastemporary controlofanothersproperty,butnobailment ispresent. 3._______________________ 4.Baileesreceiveandacceptthegoodsthemselves ina(n)?bailment. 4._______________________ 5.Ifthereisacontractualbailmentfora? period,deathorincapacityofeitherpartydoes notendthebailment. 5._______________________ 6.A(n)?isthetransferofpossession withoutthetransferofownership. 6._______________________ 7. Baileesreceiveandacceptasymboloftheper sonalpropertyina(n)?bailment. 7._______________________ 8. ?meansthereisnodifferencebetween oneunitofthegoodsandanother. 8._______________________ 9. Thepartywhoacceptspossessionandcontrol ofpropertyisthe?. 9._______________________ 10. ?propertycannotbebailed.10._______________________ LegalApplications 11.Elizabethstoleacarfromamallparkinglot.Onemonthlater,shedroveafriend totheairportandparkedthestolencarinaparkinggarage.Wasabailmentcre ated?Ifso,whoweretheparties?Explainyouranswer.(Useaseparatesheetof papertoanswerthequestion.) Chapter 17 Bailments 4-17 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON181QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1. Realtyincludesthe?abovethesur faceoftheland. 1._______________________ 2. The?grantsownershipoffluidmin eralstothepartywhoextractsthem. 2._______________________ 3. ?includesland,buildings,andfix tures. 3._______________________ 4. Anypieceofpersonalpropertythatbecomes permanentlyattachedtolandorabuildingis calleda(n)?. 4._______________________ 5.Therighttodigorminetheearthbeneaththe surfaceofrealtyiscalleda(n)?. 5._______________________ 6. Thepartywhotransfersownershippowersis the?____. 6._______________________ 7. Atransactionwhereanestateistransferred fromagrantortogranteebydeedisa(n) ?. 7._______________________ 8.Theactofgivingrealpropertytothegovern mentforuseasaparkorroadwayis ?. 8._______________________ 9.Thepartywhoreceivesownershippowersis a(n)___?______. 9._______________________ 10.A(n)?isthegreatestpossiblebundle ofrightsandinterestsinrealty. 10._______________________ 11.Aneasementthatariseswhenabuyercanon lygainaccesstopurchasedpropertybycross ingthesellerspropertyisa(n)?. 11._______________________ Chapter 18 Ownership and Leasing of Real Property 4-31 Chapter 18 Ownership and Leasing of Real Property 4-31 Chapter 18 Ownership and Leasing of Real Property 4-31 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON191QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers 1.Thepartywhoiscoveredorprotectedby 1. ______ aninsurancepolicy 2.Partywhobenefitsfromtheactsofothers 2. ______ 3.Theconsiderationforacontractof 3. ______ insurance 4.Apartywhoagreestoindemnify4. ______ 5.Thestatedmaximumamountthatcould 5. ______ bepaidtothebeneficiary 6.Thewrittencontractofinsurance6. ______ 7.Acontractualarrangementthatprotects 7. ______ againstloss 8.Thisprogramshouldincludeascenario 8. ______ analysisofanythingthatcouldgowrong 9.Thepotentialtosustainlossiftheinsured 9. ______ propertyisdamagedordestroyedorifthe insuredpersonisinjuredordies 10.Whenaprospectiveinsuredandor 10.______ beneficiarybehavesinaharmfulorreck lessmannerknowingtheywillbecompen satedfortheirlosswhethertheysucceedor failintheirendeavor LegalApplication A.premium B.insurer C.moralhazard D.beneficiary E.facevalue F.insured G.riskmanagement H.insurable interest I.policy J .insurance 11.RyanBenchekappliedforatermlifeinsurancepolicyonhimselfwhenhewas 25yearsold.Thetermofthepolicywas20years.Ryanswifewaslistedasthe beneficiary.Ryandiedofaheartattackwhenhewas46yearsold.Canhiswife collectonthepolicy?Explainyouranswer. Chapter 19 Insurance Law 4-47

STUDENT ________________________________ CLASS __________________________ DATE _________________ LESSON21QUIZ LegalConcepts Directions:IntheAnswerscolumnattherightofeachstatement,writetheletterthat representstheword,orgroupofwords,thatcorrectlycompletesthestatement. Answers 1.WhichamendmentguaranteesU.S.citizensfreedomofspeech? 1.______ (a)First,(b)Fifth,(c)Tenth 2.Whichamendmentpreventstheimposingofexcessivebail 2.______ orfines?(a)Fourth,(b)Eighth,(c)Ninth 3.Whichamendmentgivespowertothestatesinareasnotcovered 3.______ bytheConstitution?(a)Fifth,(b)Eighth,(c)Tenth 4.WhichamendmentstatesthatU.S.citizensmaykeepand 4.______ beararms?(a)First,(b)Second,(c)Fifth 5.Whichamendmentguaranteestherighttoaspeedyand 5.______ publictrial?(a)Fifth,(b)Sixth,(c)Tenth 6.Whichamendmentprovidesforfreedomofthepress?(a)First, 6.______ (b)Fifth,(c)Sixth 7.Whatarethebenefitsentitledtoapersonbylaw?(a)civilrights, 7.______ (b)legalduties,(c)civilandlegalrights 8.Whatarethepersonalandnaturalrightsguaranteedto 8.______ U.S.citizens?(a)civilrights,(b)privacyrights,(c)legalrights 9.WhatarerightsthatarenotexplicitlylistedintheConstitution 9.______ butarerecognizedbycourts?(a)civilrights,(b)dueprocessrights, (c)peripheralrights 10.Whichamendmentabolishedslavery?(a)Eleventh,(b)Twelfth, 10.______ (c)Thirteenth 11.Whichamendmentgavefreedslavestherighttovote? 11.______ (a)Thirteenth,(b)Fourteenth,(c)Fifteenth 12.Whichamendmentforbidsstatestodepriveanypersonof 12.______ life,liberty,orpropertywithoutdueprocessoflaw? (a)Thirteenth,(b)Fifth,(c)FifteenthChapter 2 Constitutional Rights 1-21 (a)Thirteenth,(b)Fifth,(c)FifteenthChapter 2 Constitutional Rights 1-21 (a)Thirteenth,(b)Fifth,(c)Fifteenth Chapter

11. Troysetupashamwebsitefromwhichhesoldphonysharesofstockina phonycorporation.Hedidnotactivelyseekoutanycustomers,rather,helinked hiswebsitetoalegitimatewebpagethatofferedtipsforpeopleseekingtodo theirowntradingonthestockmarket.Whenauserofthislegitimatesiteloggedontoitspage,Troyssitewouldpopup,offeringtomaketheuserrichinashortperiodoftime.OncetheuserclickedontoTroyssite,theywouldbeofferedTroysphonyshares.Troymadenearlyamilliondollarsfromthisscam.Rickwaslookingtoenterthestockmarketonhisownandthoughthewouldfindoutmoreaboutitontheweb.Hefinallylocatedthelegitimateservice,and, theirowntradingonthestockmarket.Whenauserofthislegitimatesiteloggedontoitspage,Troyssitewouldpopup,offeringtomaketheuserrichinashortperiodoftime.OncetheuserclickedontoTroyssite,theywouldbeofferedTroysphonyshares.Troymadenearlyamilliondollarsfromthisscam.Rickwaslookingtoenterthestockmarketonhisownandthoughthewouldfindoutmoreaboutitontheweb.Hefinallylocatedthelegitimateservice,and, theirowntradingonthestockmarket.Whenauserofthislegitimatesitelogged ontoitspage,Troyssitewouldpopup,offeringtomaketheuserrichina shortperiodoftime.OncetheuserclickedontoTroyssite,theywouldbe offeredTroysphonyshares.Troymadenearlyamilliondollarsfromthisscam. Rickwaslookingtoenterthestockmarketonhisownandthoughthewould findoutmoreaboutitontheweb.Hefinallylocatedthelegitimateservice,and, seeingTroysaddpopup,clickedontoit.Interestedintheproduct,Rick purchasedsharesinTroysphonycorporation.Onceherealizedhehadbeen scammedforthousandsofdollars,RickwantedtosueTroy.Troylivedin Delaware.RicklivedinOhio.ThelegitimatewebsitesownerlivedinCalifornia. WhichcourtshouldhearRickscase?Explainyouranswer. Chapter 2 Constitutional Rights 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 2012

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON201QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1.A(n)?isapersonwhodied.1._______________ 2.A(n)?willisanoralwill.2._______________ 3.Iftherearenoinheritors,thepropertyofthedeceased ?orrevertstothestate. 3._______________ 4.A(n)?isarepresentative whotakeschargeoftheintestatesproperty. 4._______________ 5.Apersonwhodies?didnothaveavalidwill.5._______________ 6.A(n)?isaformal,written,andwitnessed amendmenttoawill. 6._______________ 7.Themakerofawilliscalleda(n)?.7._______________ 8.A(n)?willisonethatwaswrittenentirelyby thedecedentsownhandandsignedbyhimorher. 8._______________ 9.Atestatormusthave?,ortheclearintentionof makingawill. makingawill. makingawill. 9._______________ 10. ?meansthemakerofawillmustunderstand thatheorsheismakingawill. 10._______________ LegalApplication 11.KordellDawsonwasmountainclimbingintheAlpswhenhewascaughtina blindingsnowstorm.Kordellslippedoffofanicyledgeandbrokebothofhis legs.Hefearedthathewouldfreezetodeathbeforeanyonecouldfindhim.He wroteabriefwillonaslipofpaper,signedit,andplaceditinhisbackpack. WhattypeofwilldidKordellcreate?IsKordellswillvalid?Explainyouran swer. Chapter 20 Wills, Trusts, and Estates 4-67 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a

11.AresultingtrustwouldneedtobecreatedthatwouldbenefittheWiensorany newbeneficiarytheymightchoose. Practice Activity 1.Aconstructivetrustmustbesetupforthechildren.Aconstructivetrustisare lationshipimposedbyoperationoflawasaremedytoredresswrongsorto preventunjustenrichment.Aconstructivetrustwillbeimposedonpropertyobtainedinviolationofafiduciaryduty.Thecourtfoundthatthebrotherandsisterhadafiduciaryrelationshipandaconstructivetrustshouldbeimposedthatrepresentedareciprocalagreementbetweenthetwotoleavetheirmoneyastheyhadagreedtodo. preventunjustenrichment.Aconstructivetrustwillbeimposedonpropertyobtainedinviolationofafiduciaryduty.Thecourtfoundthatthebrotherandsisterhadafiduciaryrelationshipandaconstructivetrustshouldbeimposedthatrepresentedareciprocalagreementbetweenthetwotoleavetheirmoneyastheyhadagreedtodo. preventunjustenrichment.Aconstructivetrustwillbeimposedonpropertyob tainedinviolationofafiduciaryduty.Thecourtfoundthatthebrotherandsis terhadafiduciaryrelationshipandaconstructivetrustshouldbeimposedthat representedareciprocalagreementbetweenthetwotoleavetheirmoneyas theyhadagreedtodo. 2.Thetrustshouldincludeallthegrandchildren,bothbiologicalandadopted.The courtruledthatthecommonlawrulethatanadoptedchildisnotwithinthe bountyofanonadoptingparent(i.e.,thegrandparenthere)isnotcontrollinghere.ThecourtwaspersuadedbythefactthatEdwinsadoptedgrandsonsbyhissonCharleswereacceptedashisownwhenhewasalive.HeknewCharleshadnonaturalchildren.Soeventhoughhedidnotknowthegranddaughters,thefactthathedesignatedthembyclasspersuadedthecourttoabandonthecommonlawrulehere.Infact,thegranddaughterswereadopted19and22yearsafterthedeathoftheirgrandfather.Itmadenodifferencetothecourt,becausetheywerestillthechildrenofCharles,hisson. bountyofanonadoptingparent(i.e.,thegrandparenthere)isnotcontrollinghere.ThecourtwaspersuadedbythefactthatEdwinsadoptedgrandsonsbyhissonCharleswereacceptedashisownwhenhewasalive.HeknewCharleshadnonaturalchildren.Soeventhoughhedidnotknowthegranddaughters,thefactthathedesignatedthembyclasspersuadedthecourttoabandonthecommonlawrulehere.Infact,thegranddaughterswereadopted19and22yearsafterthedeathoftheirgrandfather.Itmadenodifferencetothecourt,becausetheywerestillthechildrenofCharles,hisson. bountyofanonadoptingparent(i.e.,thegrandparenthere)isnotcontrolling here.ThecourtwaspersuadedbythefactthatEdwinsadoptedgrandsonsby hissonCharleswereacceptedashisownwhenhewasalive.HeknewCharles hadnonaturalchildren.Soeventhoughhedidnotknowthegranddaughters, thefactthathedesignatedthembyclasspersuadedthecourttoabandonthe commonlawrulehere.Infact,thegranddaughterswereadopted19and22 yearsafterthedeathoftheirgrandfather.Itmadenodifferencetothecourt,be causetheywerestillthechildrenofCharles,hisson. Reteach 1.intervivos2.spendthrift3.beneficiary4.express5.testamentary6.settlor7.constructive8.charitable9.resulting10.trustee 1.intervivos2.spendthrift3.beneficiary4.express5.testamentary6.settlor7.constructive8.charitable9.resulting10.trustee 1.intervivos 2.spendthrift 3.beneficiary 4.express 5.testamentary 6.settlor 7.constructive 8.charitable 9.resulting 10.trustee Enrichment Activity Answerswillvary. Answerswillvary. Answerswillvary. Unit 4 Tests 1620 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

STUDENT ______________________________________ CLASS _______________________ DATE __________ LESSON211QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1. ?authorityisdirectlycommunicatedby theprincipaltotheagent. 1._____________________ 2. ?authorityisthepowertodoanything thatisreasonablynecessarytocarryoutthedu tiesexpresslyauthorized. 2._____________________ 3.Theprincipal,withknowledgeorthroughnegli gence,permitstheagenttoassume? authority. 3._____________________ 4. ?authorityiscreatedwhenaprincipal authorizesanagenttorepresenttheprincipal. 4._____________________ 5.Apparentauthoritymustalwayscomefromthe ?swordsorconduct. 5._____________________ 6.Toprotectthepublic,allstatesrequirethat agentsinoccupationssuchaslaw,realestate, andinsurancebe?. 6._____________________ 7.Anywritingthatappointssomeoneasanagent iscalleda(n)?. 7._____________________ 8.Anagentmustactwithinthegranted? inordertobindtheprincipal. inordertobindtheprincipal. inordertobindtheprincipal. 8._____________________ 9.Theapprovalofanactoutsidetheagentsscope ofauthorityiscalled?. 9._____________________ LegalApplications 10.TheBradysplantogoonanextendedvacation.Theyhaveaskedtheirtrustwor thyneighbor,FrankBillings,tocarefortheirdogs,collecttheirmail,andmow theirlawn.TheBradyshavegivenFrankoneoftheircreditcardstomakeany necessarypurchaseswhiletheyaregone.Twoweeksaftertheyleavehome,a severethunderstormcausesalengthypoweroutage.Frankusesthecreditcard tobuyasmallgeneratorinordertosavethecontentsoftheBradyswellstocked freezer.WhatformofauthorityisFrankusing? Chapter 21 Agency Law 5-1 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON221QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresentstheword orphrasethatmatchesthestatementinColumn2. Column1Column2Answers LegalApplication10.JessicaBlackburnisabandsawoperatorforCustomWoodCreations.Jessicawasassignedtocut500picketsforapicketfencebytheendoftheweek.Shehadonly450finishedwhenherworkweekended.CouldJessicabedismissedwithoutliability?Explainyouranswer.8.Workerswhoareterminateddespitecomplyingwiththetermsoftheircontract9Ah k9._____Chapter 22 Employment Law 5-17 LegalApplication10.JessicaBlackburnisabandsawoperatorforCustomWoodCreations.Jessicawasassignedtocut500picketsforapicketfencebytheendoftheweek.Shehadonly450finishedwhenherworkweekended.CouldJessicabedismissedwithoutliability?Explainyouranswer.8.Workerswhoareterminateddespitecomplyingwiththetermsoftheircontract9Ah k9._____Chapter 22 Employment Law 5-17 LegalApplication 10.JessicaBlackburnisabandsawoperatorforCustomWoodCreations.Jessica wasassignedtocut500picketsforapicketfencebytheendoftheweek.She hadonly450finishedwhenherworkweekended.CouldJessicabedismissed withoutliability?Explainyouranswer. 8.Workerswhoareterminateddespitecom plyingwiththetermsoftheircontract 9 Ah k 9._____ Chapter 22 Employment Law 5-17 1.Doctrinestatingtheemployeroremployee canlegallyterminatetheemploymentrela tionshipatanytime 2.Dischargeofanemployeeforareason prohibitedbylaw 3.Alegalrelationshipthatinvolvesacon tracttopayandthesupervisionandcon trolofwork 4.Sourceofimportanttermsofemployment imposeduponeachemploymentcontract 5.Someonewhoagreestoproduceafinished jobwithoutbeingsupervised 6.Willfulmisconductindisregardoftheem ployersinterestisabasisforthis 7.Apartywhoworksunderthedirection andcontrolofanemployeratwill andcontrolofanemployeratwill andcontrolofanemployer atwill 1._____ 2._____ 3._____ 4._____ 5._____ 6._____ 7._____ 8._____ A.employment B.independent contractor C.stateand federallaw D.dischargefor cause E.employer F.wrongful discharge G.employee H.discharge without cause I.employment 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON231QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers 1. TheClaytonActprohibitedrestraintsoftradeandmadebusi nessmonopoliesillegal. 1._______ 2.Todaymostlaborrelationsaregovernedthroughthecourts andCongressratherthanbyafederalagency. 2._______ 3. Laborunionsdidnotengageinstrikesuntiltheearly1900s.3._______ 4.Employmentcontractsthatforceanemployeetopromisenotto joinaunionarecalledyellowdogcontracts. 4._______ 5. Ajudgewhohearsbothsidesofanargumentcanissueanex parteinjunction. 5._______ 6. TheDanburyAntitrustActprohibitedrestraintsoftradeand madebusinessmonopoliesillegal. 6._______ 7.TheNationalLaborRelationsBoardadministerstherightsand dutiesgiventoworkers,employers,andunions. 7._______ 8.Ayellowdogcontractcontainsanagreementthatanemployee willnotjoinaunion. 8._______ 9. Atleast50percentoftheemployeesinabargainingunitmust signauthorizationcardstoformaunion. 9._______ 10.CertificationoccurswhentheNLRBacknowledgesaunionas theexclusivebargainingagentfortheemployeesinabargain ingunit. 10._______ 11.Employeescanselectadifferentunionthroughadecertification election. 11.______ 12. Managementmaynotsupportoneunionoveranother.12.______ 12. Managementmaynotsupportoneunionoveranother.12.______ 12. Managementmaynotsupportoneunionoveranother.12.______ 5-32 Chapter 23 Unions and the Employment Relationship 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON241QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers 1.Payingmoremoneytothosewhoworkharderisaformofjusti fieddiscrimination. 1._____ 2.Thelawcompelsemployerstojudgeeachpersonasanindividual.2._____ 3.Membersofprotectedclassesarealwaysethnicminorities.3._____ 4.Mostemploymentdiscriminationlawstrytobalancejustifiedand unjustifieddiscrimination. 4._____ 5.GeneticInformationNondiscriminationActof2008(GINA)pro hibitsemploymentdiscriminationbasedongeneticinformation. 5._____ 6.Physicallyandmentallydisabledpeopleareaffordedonlylimited protectionagainstdiscrimination. 6._____ 7.Unjustemploymentdiscriminationoccursonlyinthehiringof employees. 7._____ 8.Employerswithtwoormoreemployeesaresubjecttofederalem ploymentdiscriminationlaws. 8._____ 9.Employerswhodonotengageininterstatecommercemaynotbe subjecttofederalemploymentdiscriminationlaws. 9._____ 10.Agenciesofstategovernmentsdonothavetocomplywithany antidiscriminationlaws. 10._____ LegalApplications 11.IanPaisleyimmigratedtothiscountryattheageof30.HehasastrongScottish accent.Ianhasadegreeinbroadcastengineering.Whenheappliedforajobasa sportscaster,hewastoldthatpeoplewithforeignaccentswerenothiredthere. IsIanavictimofunjustifieddiscrimination?Explainyouranswer. 12.Tatiaappliedforapositionasagasstationattendant.Theownerofthestation hadtwootheremployeeswhoworkedthedayshifts.Shewastoldthatno womenwerehiredforthenightshiftbecauseitwastoodangerous.Canthe ownerlegallydenyTatiaemploymentforthisreason?Whyorwhynot? Chapter 24 Discrimination in Employment 5-49 Chapter 24 Discrimination in Employment 5-49 Chapter 24 Discrimination in Employment 5-49 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON251QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1. ThelawscreatedbytheOccupationalSafety andHealthAdministrationgenerallyapplyto employersengagedin?. 1._______________________ 2.TheU.S.Congressenactedthe?to helpachievesafetyintheworkplace. 2._______________________ 3.OSHAinspectorscanobtaina(n)?if theyaredeniedaccesstoaworkplace. 3._______________________ 4. The?enforcestherulesmadebythe OccupationalSafetyandHealthAdministra tion. 4._______________________ 5. OSHAseeksto?injuries.5._______________________ 6.TheOSHActs ?requiresemployersto provideaplaceofemploymentfreefromrecog nizedhazardsthatarelikelytocausedeathorse riousphysicalharm. 6._______________________ 7.TheDepartmentofLabormustbenotified within?hoursifaninjuryrequires threeormoreemployeestobehospitalizedor ifthereisadeath. 7._______________________ 8.Employeesmaymake?callsto OSHAaboutsafetyviolations. 8._______________________ 9.OSHAestablishes____?____standardsfor lighting,ventilation,andsanitation. lighting,ventilation,andsanitation. lighting,ventilation,andsanitation. 9.______________________ 10.OneapproachusedbytheUnitedStatesto protectworkersfromonthejobinjuriesis a(n)____?____approach. 10.______________________ Chapter 25 Employment-Related Injuries 5-65 Chapter 25 Employment-Related Injuries 5-65 Chapter 25 Employment-Related Injuries 5-65 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with

Lesson252 Quiz 1.T2.F4.F5.T7.T8.F10.T11.F 1.T2.F4.F5.T7.T8.F10.T11.F 1.T 2.F 4.F 5.T 7.T 8.F 10.T 11.F 3.F 6.T 9.T 12.Donwasbothanagriculturalandacasualworker.Neitheroftheseworkers mustbecoveredbyaworkerscompensationplan.DonsfamilywillnotreceiveanymoneyunlessDonwasselfinsured. mustbecoveredbyaworkerscompensationplan.DonsfamilywillnotreceiveanymoneyunlessDonwasselfinsured. mustbecoveredbyaworkerscompensationplan.Donsfamilywillnotreceive anymoneyunlessDonwasselfinsured. Practice Activity 1.Normally,aninjuryiscompensableifitarisesoutofandinthecourseofem ployment.Aninjuryarisesinthecourseofemploymentwhenitoccurswithin theperiodofheremployment,ataplacewhereshemayreasonablybe,andwhilesheisfulfillingthedutiesofheremploymentorengagedinsomeincidenttoit.ThecourtheldthatBeluesbeliefthatshehadtodriveDenisehomemadeitpartofherjob.Therefore,herinjuriesaroseoutofandinthecourseofemployment,therebymakinghereligibleforworkerscompensation. theperiodofheremployment,ataplacewhereshemayreasonablybe,andwhilesheisfulfillingthedutiesofheremploymentorengagedinsomeincidenttoit.ThecourtheldthatBeluesbeliefthatshehadtodriveDenisehomemadeitpartofherjob.Therefore,herinjuriesaroseoutofandinthecourseofemployment,therebymakinghereligibleforworkerscompensation. theperiodofheremployment,ataplacewhereshemayreasonablybe,and whilesheisfulfillingthedutiesofheremploymentorengagedinsomeincident toit.ThecourtheldthatBeluesbeliefthatshehadtodriveDenisehomemade itpartofherjob.Therefore,herinjuriesaroseoutofandinthecourseofem ployment,therebymakinghereligibleforworkerscompensation. 2.Yes,Swansoncancollectcompensation.Swansonspsychiatristtestifiedthather emotionalproblemsandhospitalizationswerecausedprimarilybythesexual contactbyheremployer.Italsofoundthatthesexualencounteraroseoutofandduringthecourseofheremploymentinthatitoccurredduringherperiodofemploymentduringnormalworkinghours.Second,theincidenthappenedatahotelwherehersupervisordirectedhertogo.Finally,theincidentoccurredwhileshewasfulfillingherdutiesofheremployment. contactbyheremployer.Italsofoundthatthesexualencounteraroseoutofandduringthecourseofheremploymentinthatitoccurredduringherperiodofemploymentduringnormalworkinghours.Second,theincidenthappenedatahotelwherehersupervisordirectedhertogo.Finally,theincidentoccurredwhileshewasfulfillingherdutiesofheremployment. contactbyheremployer.Italsofoundthatthesexualencounteraroseoutof andduringthecourseofheremploymentinthatitoccurredduringherperiod ofemploymentduringnormalworkinghours.Second,theincidenthappenedat ahotelwherehersupervisordirectedhertogo.Finally,theincidentoccurred whileshewasfulfillingherdutiesofheremployment. Reteach 1.private2.longshore3.common4.casual5.eighty7.scope8.negligence9.wages10.airline11.vocational 1.private2.longshore3.common4.casual5.eighty7.scope8.negligence9.wages10.airline11.vocational 1.private 2.longshore 3.common 4.casual 5.eighty 7.scope 8.negligence 9.wages 10.airline 11.vocational 6.risks Enrichment Activity Answerswillvary. Answerswillvary. Answerswillvary. Chapter 25 Employment-Related Injuries 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON261QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers 1.Corporationsarethemostnumerouslegalformofbusiness organization. 1._____ 2.Acorporationcanhaveaperpetualexistence.2._____ 3.Apartnershipendsifonepartnerwithdrawsordies.3._____ 4.Acorporationisanassociationoftwoormorepersonstocarry onabusinessforprofit. 4._____ 5.Apersonwhoinvestsinacorporationrunstheriskoflosingall ofhisorherpersonalworth. 5._____ 6.Thesoleproprietorownsalltheassetsandhasfullpersonal liabilityforallthedebtsofhisorhersoleproprietorship. 6._____ 7.Corporationsusuallyhavegreaterfinancialstrengththando otherformsofbusinessorganizations. 7._____ 8.Theownerofasoleproprietorshipmustobtainacharterfrom thestate. 8._____ 9. UndertheprovisionsoftheUPA,ifutilized,generalpartners willshareallprofitsandlossesequally. 9._____ 10.Theprivatelyheldrealandpersonalpropertyaswellasthe businesspropertyofasoleproprietormaybeusedtosatisfy thedebtsofherorhisbusiness. 10._____ LegalApplications 11.BenjaminKresslovestocook.Hehascollectedavarietyofcookbooksandcook ingutensilsinthepastseveralyears.Hisfriendsthinkheshouldstartacatering businessorasmallrestaurant.Benjaminlikestheidea,buthedoesnothavethe necessarycapitalforsuchaventure.WhatadvicewouldyougivetoBenjamin? 12.RoxanneandMiguelstartedataxpreparationandconsultationbusiness.They rentedofficespacefromJosephineandhiredJanineasaparttimeassistant.Are Roxanne,Miguel,Josephine,andJanineallpartnersinthebusiness?Explain youranswer. Chapter 26 Forms of Business Organization 6-1 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON271QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1.Onemajoradvantageofcorporationsis?, whichmeansthecorporationcancontinueindefi nitelywithnewowners. 1.__________________ 2.Ifacorporationischarteredinaparticularstate,itis a(n)?corporationinthatstate. 2.__________________ 3.A(n)?corporationisorganizedbyindividu alsforbusinessorcharitablereasons. 3.__________________ 4.Articlesofincorporationaresignedbypersons knownas?. 4.__________________ 5.A(n)?corporationisorganizedfora social,charitable,oreducationalpurposeanddoes notpayearningstoitsowners. 5.__________________ 6.A(n)?corporationisacorporationthatis charteredinastateotherthantheoneinwhichit doesbusiness. 6.__________________ 7.A(n)?corporationisestablishedfora governmentalpurpose. 7.__________________ 8.Whencourtsdisregardlimitedliabilityprotection andholdindividualshareholderspersonallyrespon sibleforcorporatedebtitiscalled?. 8.__________________ 9.Theapplicationtoastateforacharterforacorpora tionistypicallyknownasthe__________________. 9.__________________ 10.Acorporationcharteredinanothernationdo ingbusinessinastatewithintheUnitedStatesis knownasa(n)?corporation. 10.__________________ Chapter 27 The Law of Corporations 6-21 Chapter 27 The Law of Corporations 6-21 Chapter 27 The Law of Corporations 6-21 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON273PRACTICEACTIVITY Readthefollowingcasesandanswerthequestionsaboutthem.Attachapageifadditional spaceisneededforanswers. 1.TheFordMotorCompanyhadgeneratedextremelylargeearningsfromthesale ofitsModelTs.HenryFord,thecompanyslargestshareholderandpresident, persuadedtheBoardofDirectorstoissueonlyasmallportionoftheseearnings asdividendstotheshareholdersandtoretaintheremainderinthecorporateaccountsforfutureuse.AsaconsequencetheDodgebrothers,whowerealsolargeshareholdersintheFordMotorCompany,broughtsuitagainstthecompanytoforcethepayoutoftheretainedearningsasdividends.AtthetrialHenryFordtestifiedthatheplannedfortheretainedearningstobeutilizedtobuildanewplantthatwouldbeabletobuildmorecarsatacheaperpriceandgivemoreAmericanstheabilitytoownacar.Inotherwords,Henrysoughtto asdividendstotheshareholdersandtoretaintheremainderinthecorporateaccountsforfutureuse.AsaconsequencetheDodgebrothers,whowerealsolargeshareholdersintheFordMotorCompany,broughtsuitagainstthecompanytoforcethepayoutoftheretainedearningsasdividends.AtthetrialHenryFordtestifiedthatheplannedfortheretainedearningstobeutilizedtobuildanewplantthatwouldbeabletobuildmorecarsatacheaperpriceandgivemoreAmericanstheabilitytoownacar.Inotherwords,Henrysoughtto asdividendstotheshareholdersandtoretaintheremainderinthecorporateac countsforfutureuse.AsaconsequencetheDodgebrothers,whowerealso largeshareholdersintheFordMotorCompany,broughtsuitagainstthecom panytoforcethepayoutoftheretainedearningsasdividends.Atthetrial HenryFordtestifiedthatheplannedfortheretainedearningstobeutilizedto buildanewplantthatwouldbeabletobuildmorecarsatacheaperpriceand givemoreAmericanstheabilitytoownacar.Inotherwords,Henrysoughtto bealtruisticwiththemoneyearnedbythecompany.Canthelargestshare holderinsistthattheshareholdersmoneybeusedinthisway?CouldtheDodge brothersinsistthatForddeclaredividendssothattheycouldreceivetheirprofit fromthecompany?[Dodgev.FordMotorCo.,170N.W.668(Mich.1919)] 2.In1859,theIllinoislegislatureadoptedtheRosehillCharter,whichcreatedthe originalRosehillCemeteryCompanyasanotforprofitcorporation.Corpora tionscreatedbythelegislaturearecalledspecialactscorporations.Thelegisla tiongaveRosehilltherighttoacquirerealestateforthepurposeofmaintaining acemetery.In1983,RosehillMemorial,Inc.(Rosehill),aprivateforprofitcompany,wasincorporatedbyusualmeans,i.e.,byfilingproperincorporationpapers.Shortlyafterincorporation,itboughttheRosehillCemeteryCompanyanddissolvedit.ThenewRosehill,inadditiontomaintainingthecemetery,thenbegansellingheadstones,burialmarkers,andmonuments.GastMonuments(Gast),wasacompetingcompanyoperatingdirectlyacrossthestreetfromRosehill.Gastalsosoldheadstones,burialmarkers,andmonuments.AsaresultofthecompetitivepositionassumedbyRosehill,GastfiledsuitagainstRosehill.ThesuitallegedthatwhenRosehillpurchasedtheoriginalRosehillCemetery acemetery.In1983,RosehillMemorial,Inc.(Rosehill),aprivateforprofitcompany,wasincorporatedbyusualmeans,i.e.,byfilingproperincorporationpapers.Shortlyafterincorporation,itboughttheRosehillCemeteryCompanyanddissolvedit.ThenewRosehill,inadditiontomaintainingthecemetery,thenbegansellingheadstones,burialmarkers,andmonuments.GastMonuments(Gast),wasacompetingcompanyoperatingdirectlyacrossthestreetfromRosehill.Gastalsosoldheadstones,burialmarkers,andmonuments.AsaresultofthecompetitivepositionassumedbyRosehill,GastfiledsuitagainstRosehill.ThesuitallegedthatwhenRosehillpurchasedtheoriginalRosehillCemetery acemetery.In1983,RosehillMemorial,Inc.(Rosehill),aprivateforprofitcom pany,wasincorporatedbyusualmeans,i.e.,byfilingproperincorporationpa pers.Shortlyafterincorporation,itboughttheRosehillCemeteryCompanyand dissolvedit.ThenewRosehill,inadditiontomaintainingthecemetery,thenbe gansellingheadstones,burialmarkers,andmonuments.GastMonuments (Gast),wasacompetingcompanyoperatingdirectlyacrossthestreetfrom Rosehill.Gastalsosoldheadstones,burialmarkers,andmonuments.Asaresult ofthecompetitivepositionassumedbyRosehill,GastfiledsuitagainstRosehill. ThesuitallegedthatwhenRosehillpurchasedtheoriginalRosehillCemetery Companyitbecamesubjecttothesamerestrictionsthathadbeenplacedinthe originalRosehillCharterin1859.Theserestrictionsincludedoperationasanot forprofitcorporationwhichwasnotauthorizedtosellanything.IsGastcorrect? Explain.[GastMonuments,Inc.v.RosehillCemeteryCo.,566N.E.2d487(Ct.App.Ill.1990)] Explain.[GastMonuments,Inc.v.RosehillCemeteryCo.,566N.E.2d487(Ct.App.Ill.1990)] Explain.[GastMonuments,Inc.v.RosehillCemeteryCo.,566N.E.2d487(Ct.App. Ill.1990)] 6-32 Chapter 27 The Law of Corporations 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON281QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers 1.Doubletaxationmeansacorporationonlypaystaxesonits 1.______ earningsforboththecorporationandtheshareholders. 2.TheScorporationformisnotavailableforaliencorporations.2.______ 3.Anoperatingagreementcannotlistthedistributivesharesof3.______ theowners. 4.OthercorporationscanbeshareholdersinanScorporation. 4.______ 5.OwnersofanLLCareknownaspartners. 5.______ 6.AnLLCisformedbyfilingarticlesoforganization.6.______ 7.Scorporationsarenotsubjecttodoubletaxation.7.______ 8.AnScorporationcanhaveanunlimitednumberofstockholders.8.______ 9.Distributivesharesdonothavetobeequalpercentages.9.______ 10.Corporateshareholdersmustagreeunanimouslytobetaxed 10.______ asanScorporation. LegalApplications 11.Greg,Eloise,andJanaHookdecidedtoformaskirentalandrepairbusinessas anLLC.Janainvested$250,000andEloiseandGregeachinvested$100,000..The operatingagreementindicatedthattheyhadelectedpercapitavoting.Two yearslatertheywereconsideringopeningasecondlocation.Inthedecisive vote,JanavotednottoopenthebusinessbutEloiseandGregvotedtodoso. WilltheLLCbeauthorizedtoopenthesecondlocationasaresultofthevote? Explainyouranswer. 6-42 Chapter 28 Other Business Forms and Environmental Responsibility 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except

Reteach Theteacherwillhavetodetermineifthestudentsareholdingupthecorrectslipof paper. Enrichment Activity Answersmayvary. Answersmayvary. Answersmayvary. Lesson282 Quiz 1.corporateresponsibility2.NationalAirQualityStandards3.EnvironmentalProtectionAgency4.NationalEnvironmentalPolicyAct5.environmentalimpactstatement6.Superfund7.blackout8.DepartmentofEnergy9.ProjectIndependence10.nuclearpower 1.corporateresponsibility2.NationalAirQualityStandards3.EnvironmentalProtectionAgency4.NationalEnvironmentalPolicyAct5.environmentalimpactstatement6.Superfund7.blackout8.DepartmentofEnergy9.ProjectIndependence10.nuclearpower 1.corporateresponsibility 2.NationalAirQualityStandards 3.EnvironmentalProtectionAgency 4.NationalEnvironmentalPolicyAct 5.environmentalimpactstatement 6.Superfund 7.blackout 8.DepartmentofEnergy 9.ProjectIndependence 10.nuclearpower 11.ItisforjustsuchasituationastheoneaffectingAltitude,thattheSuperfund wascreated.Asimilarevacuation,relocation,andultimatecleanupwaseffectu atedonTimesBeach,Missouri.TimesBeachwasasmalltownsouthwestofSt.Louisthatwaspoisonedbythesprayingofdioxinladenstillbottomsmixedwithoilonitsroadsfordustsuppression. atedonTimesBeach,Missouri.TimesBeachwasasmalltownsouthwestofSt.Louisthatwaspoisonedbythesprayingofdioxinladenstillbottomsmixedwithoilonitsroadsfordustsuppression. atedonTimesBeach,Missouri.TimesBeachwasasmalltownsouthwestofSt. Louisthatwaspoisonedbythesprayingofdioxinladenstillbottomsmixed withoilonitsroadsfordustsuppression. Practice Activity 1.Certainly.Asmentionedinthetext,someofthepotentiallyresponsibleparties forcleanupcostsofatoxicwastesiteincludetheownerandtheoperatorofthesite.Inthiscasetheowner,andinthiscaseapotentiallyresponsibleparty,wastheUnitedStates.ThecourtthereforeallowedAtlanticResearchtorecoverafairportionofthecleanupcostsfromtheUnitedStates.2.Answerswillvary.HoweverithasbeenpointedoutthatEuropeanresearchandexperienceintheareastobeexploredbytheproposedprojectscouldbeutilized.Chapter 28 Other Business Forms and Environmental Responsibility 6-56 forcleanupcostsofatoxicwastesiteincludetheownerandtheoperatorofthesite.Inthiscasetheowner,andinthiscaseapotentiallyresponsibleparty,wastheUnitedStates.ThecourtthereforeallowedAtlanticResearchtorecoverafairportionofthecleanupcostsfromtheUnitedStates.2.Answerswillvary.HoweverithasbeenpointedoutthatEuropeanresearchandexperienceintheareastobeexploredbytheproposedprojectscouldbeutilized.Chapter 28 Other Business Forms and Environmental Responsibility 6-56 forcleanupcostsofatoxicwastesiteincludetheownerandtheoperatorofthe site.Inthiscasetheowner,andinthiscaseapotentiallyresponsibleparty,was theUnitedStates.ThecourtthereforeallowedAtlanticResearchtorecovera fairportionofthecleanupcostsfromtheUnitedStates. 2.Answerswillvary.HoweverithasbeenpointedoutthatEuropeanresearchand experienceintheareastobeexploredbytheproposedprojectscouldbeutilized. Chapter 28 Other Business Forms and Environmental Responsibility 6-56 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON291QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers 1.Partyorderedtopayadraft1. _______ 2.Instructionthatdirectsabanknotto 2. _______ payacheckthathasbeenlostorstolen 3.Partytowhomcommercialpaperis 3. _______ madeavailable 4.Unconditionalwrittenorderbyone 4. _______ personthatdirectsanotherpersontopay moneytoathirdperson 5.Typeofdraftbywhichabankdepositor 5. _______ ordersthebanktopaymoney,usuallyto theorderofathirdpartyortothebearerof theinstrument 6.Personwhoexecutesordrawsthedraft 6. _______ andorderspaymenttobemade A.drawer B.maker C.acceptance D.dishonor E.check F.commercial paper G.drawee H.stoppayment order I.payee J .billof exchange 7.Thedraweespromisetopaythedraft 7. _______ whendue 8.Unconditionalwrittenordersorpromises 8. _______ topaymoney 9.Torefusetopaywhendue9. _______ 10.Personwhoexecutesapromissory 10._______ note LegalApplication 11.AdamThistlewaitegavea$500checktohissonathiscollegegraduation.His sonputthecheckinabriefcasealongwithseveralothercards.Helaterdiscov eredthatthecheckwasmissing.Adamcalledhisbankandaskedthemtostop paymentonthecheck.WhenAdamreceivedhismonthlybankstatement,the missingcheckwasenclosed.IthadbeencashedthreeweeksafterAdamscall. ShouldAdamorthebankbeartheloss?Explainyouranswer. Chapter 29 Commercial Paper 7-1 2012 Cengage

Reteach 1. ARPANET2. hypertext3. NationalScience4. scanningprogram5. hypertexttransfer6. jurisdiction7. ecommerce8. assembly9. spamming 1. ARPANET2. hypertext3. NationalScience4. scanningprogram5. hypertexttransfer6. jurisdiction7. ecommerce8. assembly9. spamming 1. ARPANET 2. hypertext 3. National Science 4. scanning program 5. hypertext transfer 6. jurisdiction 7. ecommerce 8. assembly 9. spamming Foundation protocol Enrichment Activity Answerswillvary. Answerswillvary. Answerswillvary. ANSWERS TO TEST QUESTIONS SECTION I 1.F2.T3.T4.T5.F6.F7.T8.F9.F 1.F2.T3.T4.T5.F6.F7.T8.F9.F 1.F 2.T 3.T 4.T 5.F 6.F 7.T 8.F 9.F SECTION II 10.c11.a14.b15.d18.d19.b 10.c11.a14.b15.d18.d19.b 10.c 11.a 14.b 15.d 18.d 19.b 12.c 13.d 16.a 17.b SECTION III 20.TheU.S.SupremeCourthasoriginaljurisdictionincasesinwhichtheexecutive branchisaparty. branchisaparty. branchisaparty. 21.TheEqualEmploymentOpportunityCommissionwasestablishedtoeliminate discriminationintheworkplace.Federaljobsarenowrequiredtobe proportionatelybalanced.Theareathattheprisonwasbuiltindidnotcontainthedifferentgroupstoachievethisbalanceinafederalprison,sotheyhadtohireoutsidethecommunityandbringthemin. proportionatelybalanced.Theareathattheprisonwasbuiltindidnotcontainthedifferentgroupstoachievethisbalanceinafederalprison,sotheyhadtohireoutsidethecommunityandbringthemin. proportionatelybalanced.Theareathattheprisonwasbuiltindidnotcontain thedifferentgroupstoachievethisbalanceinafederalprison,sotheyhadto hireoutsidethecommunityandbringthemin. 22.Currently,caselawusesacommunitystandardtodeterminewhatcanbe consideredobsceneandregulatedorbannedbylocal,state,andfederal governments.Itislikelythattheadultbookstorecanbebannedfromtheneighborhood.Itisunlikely,however,thatthebookstorecanbebannedfromtheentirecity. governments.Itislikelythattheadultbookstorecanbebannedfromtheneighborhood.Itisunlikely,however,thatthebookstorecanbebannedfromtheentirecity. governments.Itislikelythattheadultbookstorecanbebannedfromthe neighborhood.Itisunlikely,however,thatthebookstorecanbebannedfrom theentirecity. 1-42 Chapter 3 Court Systems 2012 Cengage Learning. All

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON33PRACTICEACTIVITY Readthefollowingcasesandanswerthequestionsaboutthem.Attachapageifadditional spaceisneededforanswers. 1.MarieKellysuedtheZaksaftershewasinjuredinaheadoncollision.The automobilethathitherwasdrivenbyDonaldGwinnell.Donaldhadbeenatthe ZakshomeimmediatelybeforetheaccidentandhadbeenservedalargeamountofalcoholbytheZaks.TheZaksthenallowedDonaldtodrivehimselfhomeduringwhichtimehestruckthecardrivenbyMarieKelly.Ifstatelaw ZakshomeimmediatelybeforetheaccidentandhadbeenservedalargeamountofalcoholbytheZaks.TheZaksthenallowedDonaldtodrivehimselfhomeduringwhichtimehestruckthecardrivenbyMarieKelly.Ifstatelaw Zakshomeimmediatelybeforetheaccidentandhadbeenservedalarge amountofalcoholbytheZaks.TheZaksthenallowedDonaldtodrivehimself homeduringwhichtimehestruckthecardrivenbyMarieKelly.Ifstatelaw doesnotimposeliabilityontheZaksforDonaldsacts,canthecourtsholdthem liableforKellysinjuries?Whyorwhynot?[Kellyv.Grinnell,476A.2d1219 (N.J.1984)] 2.Whenanadultisfoundguiltyofacrime,heisconvictedandhisconviction becomespartofhispermanentrecord.Whenajuvenileisfoundguiltyof committingacrime,heisadjudicateddelinquentandhisrecordissealed(exceptunderextraordinarycircumstances).Oncehebecomesanadult,hisjuveniledelinquencyrecorddisappears.Whenanadultissentencedtojailorprison,hehastoservehissentenceuntilitiscompleted,nomatterhowoldhe committingacrime,heisadjudicateddelinquentandhisrecordissealed(exceptunderextraordinarycircumstances).Oncehebecomesanadult,hisjuveniledelinquencyrecorddisappears.Whenanadultissentencedtojailorprison,hehastoservehissentenceuntilitiscompleted,nomatterhowoldhe committingacrime,heisadjudicateddelinquentandhisrecordissealed (exceptunderextraordinarycircumstances).Oncehebecomesanadult,his juveniledelinquencyrecorddisappears.Whenanadultissentencedtojailor prison,hehastoservehissentenceuntilitiscompleted,nomatterhowoldhe becomes.Whenajuvenileissentencedtoajuveniledetentionfacility,hemust bereleasedbyhis21stbirthday,nomatterwhatcrimehehascommitted.Do youthinkthisisfair?Whyorwhynot? Chapter 3 Court Systems 1-53 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for

SECTION IITHINK CRITICALLY ABOUT LEGAL CONCEPTS Directions:IntheAnswerscolumnattherightofeachstatement,writetheletterthat representstheword,orgroupofwords,thatcorrectlycompletesthestatement. Answers 11.Unconditionalwrittenordersorpromisestopaymoneyare collectivelydefinedas(a)checks,(b)commercialpaper,(c) drafts,(d)IOUs 11.______ 12.Anunconditionalwrittenorderbyonepersonthatdirectsan otherpersontopaymoneytoathirdiscalled(a)aCD,(b)a draft,(c)anIOU,(d)anote 12._______ 13.Adraftthatisdueandpayableatthetimeitispresentedtothe draweebythepersonholdingitis(a)ademanddraft,(b)a promissorydraft,(c)asightdraft,(d)atimedraft 13._______ 14.Atypeofdraftbywhichabankdepositorordersthebankto paymoney,usuallytoathirdpartyis(a)acheck,(b)ademand draft,(c)anote,(d)amoneyorder 14._______ 15.Apersonwhoexecutesapromissorynoteisthe(a)drawee, (b)drawer,(c)honoree,(d)maker 15._______ 16.Whenpersonalpropertyisofferedassecurityandissoidenti fiedonthefactofthenote,thepaperisa(n)(a)collateralnote, (b)mortgagenote,(c)promissorynote,(d)IOU 16._______ 17.Acheckthatabankdrawsonitselfisa(n)(a)cashierscheck, (b)certifiedcheck,(c)tellerscheck,(d)travelerscheck 17._______ 18. Adraftdrawnbyabankonfundsthatithasondepositatan otherbankisa(n)(a)cashierscheck,(b)certifiedcheck,(c) tellerscheck,(d)travelerscheck 18._______ 19.Specializedtypesofcommercialpaperusedininternational transactionsare(a)lettersofcredit,(b)moneyorders,(c)trav elerschecks,(d)tellerschecks 19._______ 20.Checksmaybewrittenon(a)blankpaper,(b)rawhide,(c)spe cialformsthataremagneticallyencoded,(d)allofthese 20._______ 7-10 Chapter 30 Negotiability and Negotiation of Commercial Paper 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON302PRACTICEACTIVITY Readthefollowingcasesandanswerthequestionsaboutthem.Attachapageifadditional spaceisneededforanswers. 1.KatherineWarnockpurchasedacashierscheckintheamountof$53,541.93 payabletoherorderanddrawnonPuebloBank&Trust.Sheindorsedhername onthebackofthecheckandgaveittoherattorney,JerryQuick.Underhersig nature,Quickwrotefordepositonly,andthenhedepositedthecheckintoatrustaccountthathehadatLaJuntaStateBank.PueblopaidtheamounttoLaJunta.KatherineWarnockdiedacoupleofyearslater,andduringthecloseofherestate,the$53,541.93cameupmissing.HerestatedemandedthatLaJuntareturnthemoneytoherestate.Whenthebankrefused,herestatesuedthebankforreturnofmoneyithadreceived.TheestateallegedthatthewordsfordepositonlywereplacedonthecheckbyQuickforthebenefitofWarnockand nature,Quickwrotefordepositonly,andthenhedepositedthecheckintoatrustaccountthathehadatLaJuntaStateBank.PueblopaidtheamounttoLaJunta.KatherineWarnockdiedacoupleofyearslater,andduringthecloseofherestate,the$53,541.93cameupmissing.HerestatedemandedthatLaJuntareturnthemoneytoherestate.Whenthebankrefused,herestatesuedthebankforreturnofmoneyithadreceived.TheestateallegedthatthewordsfordepositonlywereplacedonthecheckbyQuickforthebenefitofWarnockand nature,Quickwrotefordepositonly,andthenhedepositedthecheckintoa trustaccountthathehadatLaJuntaStateBank.PueblopaidtheamounttoLa Junta.KatherineWarnockdiedacoupleofyearslater,andduringthecloseof herestate,the$53,541.93cameupmissing.HerestatedemandedthatLaJunta returnthemoneytoherestate.Whenthebankrefused,herestatesuedthebank forreturnofmoneyithadreceived.Theestateallegedthatthewordsforde positonlywereplacedonthecheckbyQuickforthebenefitofWarnockand thatthecheckshouldhavebeenplacedinWarnocksaccount.Sinceshehadno accountatLaJunta,itwasimpropertodeposititinanotheraccountnotbelong ingtoher.LaJuntaarguedthatthewritingonthecheckconverteditfromorder papertobearerpaperanditrightfullydepositedittothetrustaccount.Whois right?Explain.[LaJuntaStateBankv.Travis,727P.2d48(Colo.1986)] 2.BrooksandSavitchwereequalcoownersofacorporationcalledSavbrook,Inc. TheDelawareTrustCompany(DTC)loanedSavbrook$300,000.Theloanwas evidencedbyapromissorynoteexecutedbyBrooksandSavitchintheirindividualcapacities.ThenoterevealedthatallpartiesweremakersofthenoteandwerejointlyandseverallyliabletoDTCforpayment.In1980Brookspaidthe evidencedbyapromissorynoteexecutedbyBrooksandSavitchintheirindividualcapacities.ThenoterevealedthatallpartiesweremakersofthenoteandwerejointlyandseverallyliabletoDTCforpayment.In1980Brookspaidthe evidencedbyapromissorynoteexecutedbyBrooksandSavitchintheirindi vidualcapacities.Thenoterevealedthatallpartiesweremakersofthenoteand werejointlyandseverallyliabletoDTCforpayment.In1980Brookspaidthe noteinfull.EightyearslaterBrookssuedSavitchforhishalf.Canhecollect? Explain.[Brooksv.Savitch,576A.2d1329(Super.Ct.Del.1989)] Chapter 30 Negotiability and Negotiation of Commercial Paper 7-21 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON311QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1. aregoodagainsteveryoneexceptan HDCoranHHDC. 1._______________________ 2. isamethodofdischargethatconsists ofanyactofthecurrentholderthatindicatesan intenttoendtheobligationofpayment. 2._______________________ 3.A(n)isaholderwhotakescommercial paperanytimeafteranHDC. 3._______________________ 4.Themostcommonmethodofdischargingcom mercialpaperisby. 4._______________________ 5.Defensesthataregoodagainstallplaintiffssuing onanegotiableinstrumentarecalled. 5._______________________ 6.A(n)mustqualifyasaholder,take commercialpaperingoodfaith,givevalueforit, andnothaveknowledgeofanydefense,adverse claimto,ordishonoroftheinstrument. 6._______________________ 7.Takingcommercialpaperinmeansthe holderactshonestly. 7._______________________ 8.A(n)?isapersonwhohasphysicalpos sessionofbearerororderpaperpayabletothe orderofthatpersonasapayeeorindorsee. 8._______________________ 9. A(n)___________isapartysunauthorized changetoorcompletionofanegotiableinstru mentintendedtochangetheobligationofa party. 9._______________________ 10.A(n)____________isoneinwhichapartybuys goodsorservicesforpersonalorhouseholduse. 10.______________________ Chapter 31 Discharge of Commercial Paper and Electronic Fund Transfers 7-31 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON321QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers 1.Personwhohasasecurityinterestincol 1. _______ lateralownedbythedebtorbuyer 2.Devicethatgivessellersareassuring 2. _______ senseofsecurityorfreedomfromanxiety andfearoflossonthesale 3.Partytowhomthedebtisowed3. _______ 4.Claimagainstthedebtorsproperty, 4. _______ createdforthepurposeofassuringpay mentofthedebt 5.Sellersabilitytotakegoodsback,resell 5. _______ them,andusethenetproceedstopaythe balancedue A.debtor B.debt C.creditor D.securedparty E.rightof repossession F.securityinterest G.secured transaction H.collateral 6.Personorabusinessthatowesmoney, 6. _______ goods,orservicestoanother 7.Propertythatissubjecttothesecurity 7. _______ interestofthecreditor 8.Money,goods,orservicesthatareowedto 8. _______ another LegalApplications 9.Jennifermadea$2,000downpaymentonanewcar.Shefinancedtheremaining $8,500throughFirstNationalBank.Shestoppedmakingpaymentsaftershehad paid$4,000.FirstNationalrepossessedthecarandsolditfor$5,500.Canthe bankkeeptheexcessofthenetproceeds?Explainyouranswer. 10.FritzSchlotzwrotea$500checkforanewlargescreenTV.Heknewthathehad only$300inhischeckingaccount,buthethoughthewouldbemakinga$250 depositthenextday.IfFritzfailstomakethedepositintime,canhebeheld criminallyliable?Explainyouranswer. Chapter 32 Secured and Unsecured Credit Transactions 2012 Cengage Learning. All

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON331QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers 1.Givesthecreditortherighttosellaspeci 1. _______ ficpropertyinthecaseofdefaultonapay mentandusetheproceedstopaythedebt 2.Creditorwhogetspossessionoftheprop 2. _______ erty 3.Lienthatallowsapersonwhohasnot 3. _______ beenpaidforservicestoretainpossession oftheitemtobeserviceduntiltheyarepaid 4.Contractualrelationshipinwhichathird 4. _______ partyagreestobeprimarilyliableforthe debtorobligationifpaymentbytheprinci palobligorbecomesoverdue A.unsecureddebt B.pledgor C.mechanicslien D.surety E.artisanslien F.lien G.pawn H.suretyship I.pledgee J .deedoftrust K.garnishment 5.Debtorwhovoluntarilygivesupposses 5. _______ sionoftheproperty 6.Thirdpartywhopromisestobeliablein 6. _______ caseofdefaultbytheprincipaldebtor 7.Lienthatallowsapersonwhohasnot 7. _______ beenpaidforlabortobuildahouseor buildingtofilealegalclaimagainstthe property 8.Pledgeoftangiblepersonalproperty, 8. _______ usuallyofsmallsizeandcomparatively highvalue 9.Processofreceivingaportionofthe 9. _______ debtorswagesdirectlyfromthedebtors employer 10.Deedunderwhichtermsthetitleto10._______ propertyistransferredbythedebtor/ ownerintothehandsofatrustee 11.Debtbasedonlyontheoralorwritten 11._______ promiseofthedebtor Chapter 33

ANSWERS Lesson331 Quiz 1.F2.I4.H5.B7.C8.G10.J11.A 1.F2.I4.H5.B7.C8.G10.J11.A 1.F 2.I 4.H 5.B 7.C 8.G 10.J 11.A 3.E 6.D 9.K 12.Thepawnbrokermayonlysellorkeepthepawneditemsafteraspecifictime. Moststateshavealimitoffourmonths. Moststateshavealimitoffourmonths. Moststateshavealimitoffourmonths. Practice Activity 1.ThecourtlookedatthelawinOregonanddeterminedthattherewasnodefini tionofeitherwagesorearnings.Inreachingtheconclusionthatgarnishment onlyextendedtowagesandwagesonlyincludedcompensationforpersonalservicesandnotmoneyowedundercontract,thecourtwaspersuadedbythelegislativehistoryofthelaw.Itwasclearfromthedebatesaboutthelawthatthelawmakersonlycontemplatedregularlyscheduledwages.Thelawmakersconstantlytalkedaboutweeklywages,everyFriday,andotherlanguagesthatindicatedtheirintent. onlyextendedtowagesandwagesonlyincludedcompensationforpersonalservicesandnotmoneyowedundercontract,thecourtwaspersuadedbythelegislativehistoryofthelaw.Itwasclearfromthedebatesaboutthelawthatthelawmakersonlycontemplatedregularlyscheduledwages.Thelawmakersconstantlytalkedaboutweeklywages,everyFriday,andotherlanguagesthatindicatedtheirintent. onlyextendedtowagesandwagesonlyincludedcompensationforpersonal servicesandnotmoneyowedundercontract,thecourtwaspersuadedbythe legislativehistoryofthelaw.Itwasclearfromthedebatesaboutthelawthatthe lawmakersonlycontemplatedregularlyscheduledwages.Thelawmakerscon stantlytalkedaboutweeklywages,everyFriday,andotherlanguagesthat indicatedtheirintent. 2.Undergeneralcontractlawgoverninganaccommodation,anobligationcan notbealteredwithouttheconsentofthepartywhoassumedtheobligation.If theobligationisaltered,itdischargesthedebt.ThelawinNewYork,however, hasconsistentlyheldotherwise.Inapplyingtheprecedentofthestate,thecourtfoundthattheextensionoftimetorepaytheloandoesnotautomaticallydischargeadebt.Toruledifferentlywouldmeanthatacreditorwouldhavetoactimmediatelytocollectandthatevendelayofonedaywoulddischargethesurety.Thecourtheldthatthesuretyisnotwithoutremedy,asthesuretycouldalwaysdemandimmediatedefaultintheoriginalcontractorcouldpaytheloanandrecoverhismoneyfromthedebtor.Thecourtremandedthiscasebacktothetrialcourttofurtherdeterminewhetheritwastheintentofthepartiestomakeanewcontract. hasconsistentlyheldotherwise.Inapplyingtheprecedentofthestate,thecourtfoundthattheextensionoftimetorepaytheloandoesnotautomaticallydischargeadebt.Toruledifferentlywouldmeanthatacreditorwouldhavetoactimmediatelytocollectandthatevendelayofonedaywoulddischargethesurety.Thecourtheldthatthesuretyisnotwithoutremedy,asthesuretycouldalwaysdemandimmediatedefaultintheoriginalcontractorcouldpaytheloanandrecoverhismoneyfromthedebtor.Thecourtremandedthiscasebacktothetrialcourttofurtherdeterminewhetheritwastheintentofthepartiestomakeanewcontract. hasconsistentlyheldotherwise.Inapplyingtheprecedentofthestate,thecourt foundthattheextensionoftimetorepaytheloandoesnotautomaticallydis chargeadebt.Toruledifferentlywouldmeanthatacreditorwouldhavetoact immediatelytocollectandthatevendelayofonedaywoulddischargethesure ty.Thecourtheldthatthesuretyisnotwithoutremedy,asthesuretycouldal waysdemandimmediatedefaultintheoriginalcontractorcouldpaytheloan andrecoverhismoneyfromthedebtor.Thecourtremandedthiscasebackto thetrialcourttofurtherdeterminewhetheritwastheintentofthepartiesto makeanewcontract. Chapter 33 Creditors, Debtors, and Bankruptcy 7-77 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

STUDENT ________________________________ CLASS __________________________ DATE _________________ LESSON41QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers LegalApplication 15.JessicaGraysonisasecretaryatWashingtonHighSchool.Sheisinchargeof orderingjanitorialsuppliesfromJoesCleaningCenter.Jessicaisalso authorizedtowriteandsignthechecksforthesesupplies.JessicaisfriendswithJakeEmerson,whoworksatJoes.Onceamonth,Jessicawritesanorderfor$300worthofsuppliesthattheschoolreallydoesntneed.Jakesignsthe authorizedtowriteandsignthechecksforthesesupplies.JessicaisfriendswithJakeEmerson,whoworksatJoes.Onceamonth,Jessicawritesanorderfor$300worthofsuppliesthattheschoolreallydoesntneed.Jakesignsthe authorizedtowriteandsignthechecksforthesesupplies.Jessicaisfriendswith JakeEmerson,whoworksatJoes.Onceamonth,Jessicawritesanorderfor $300worthofsuppliesthattheschoolreallydoesntneed.Jakesignsthe businessmanagersnamefromJoesonthechecksandgivesthembackto Jessica.Shecashesthechecksanddepositsthemintoherownsavingsaccount. Jakemakessurethesuppliesareneverdeliveredtotheschool.AreJessicaand Jakebothcommittingacrime?Ifso,whatcrime(s)? 1.Acrimeisanoffenseagainstanindividual. 1._____ 2.Amisdemeanorisaseriouscrimethatisusuallypunishableby alongprisonsentenceinafederalprison. 2._____ 3.Burglaryisclassifiedasacrimeagainstrealty.3._____ 4. Acorporationcannotbeconvictedofcriminalintent. 4._____ 5.Whitecollarcrimesareoffensescommittedinthebusiness world. 5._____ 6.Ahatecrimecanonlybecommittedagainstapersonofanother race. 6._____ 7.Falsepretensesisatypeoffraud.7._____ 8.Aciviloffenseiscommittedagainstanindividual. 8._____ 8.Aciviloffenseiscommittedagainstanindividual. 8._____ 8.Aciviloffenseiscommittedagainstanindividual. 8._____ 9.Aminortrafficoffensedoesnotrequirecriminalintent. 9._____ 10.Corporateofficerscanbeheldcriminallyresponsibleforan employeescrime. 10._____ 11.Conspiracyisnotconsideredaseparatecrimefromthecrime thepartiesplannedtocommit. 11._____ 12.WhichcourtcanoverturndecisionsmadebytheSupreme Court? 12._____ 13.Lyingunderoathiscalledextortion. 13._____ 13.Lyingunderoathiscalledextortion. 13._____ 13.Lyingunderoathiscalledextortion. 13._____ 14.Larcenymaybeconsideredeitherafelonyoramisdemeanor, dependingonthevalueofthepropertystolen. 14._____ Chapter 4 Criminal Law and Procedure 1-63 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON51QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers 1.Anindividualwhocommitsarecklessactwithoutcausinginjury 1. ______ willprobablynotbeconvictedofatort. 2.Respondeatsuperioristhefirstpersontorespondtoalawsuit.2. ______ 3.Tortsbasedoncarelessnessareclassifiedasnegligence.3. ______ 4.Tortsthatarenotbasedonintentorcarelessnessareclassifiedas 4. ______ strictliabilities. 5.Undertortlaw,thedutynottoinjureanotherincludesbodily 5. ______ harm,butnottheharmingofsomeonesreputation. 6.Anemployercanbeheldliablefortheactionsofanemployee.6. ______ 7.Childrenandinsanepersonscanbeheldliableforinjuringothers.7. ______ 8.Apersonwhocommitsatortmaybesuedformoneydamage.8. ______ 9.Alltortsrequirethatthebreachofdutybeintentional.9. ______ 10.Thefourelementsofatortareduty,breach,injury,and 10. ______ criminalintent. LegalApplications 11.Joshisa16yearoldlifeguardatSunsetCountyGolfCourse.Hegives swimminglessonstochildrenwhiletheirparentsaregolfing.Joshistomake surethatnoonedivesintothepoolfromtheside.Joshfailedtowarnanewgirl namedJuanitaaboutthisdanger.Juanitasustainedaseriousneckinjurywhen shehitherheadontheconcretebottomofthepool.WhoisliableforJuanitas injury?Explainyouranswer. 12.SupposeJoshfromExercise11didnotwarnJuanitaaboutdivingfromtheside ofthepoolandshewasnotinjured.WouldJoshlikelybeguiltyofatortif Juanitasparentsfoundoutthatshehadnotreceivedthiswarning?Whyorwhy not? 1-78 Chapter 5 Civil Law and Procedure 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or

Reteach 1-94 Chapter 5 Civil Law and Procedure 1-94 Chapter 5 Civil Law and Procedure 1-94 Chapter 5 Civil Law and Procedure Answerstowordsearcharecircledbelowandalsoappearinboldprint.Theyare (1)duty,(2)breach,(3)intentional,(4)tort,(5)injury,(6)vicarious,(7)strictliability,(8)causation,(9)proximatecause,(10)negligenceYTUDKJ IERWETYUD (1)duty,(2)breach,(3)intentional,(4)tort,(5)injury,(6)vicarious,(7)strictliability,(8)causation,(9)proximatecause,(10)negligenceYTUDKJ IERWETYUD (1)duty,(2)breach,(3)intentional,(4)tort,(5)injury,(6)vicarious,(7)strictliability, (8)causation,(9)proximatecause,(10)negligence YTUDKJ IERWETYUD TPDMM I E R O Y R S A C S IRRCJEWPBNCMJSO LTROTGL I NEGHRUM IVIEXIPEBOERWOQBRIONIHYUPMBS IZAEMC PWMBMS A TMRLIBREACHADEMTOAALONBERYETONE PCWTCOURTMRBECNA ISCONO I TASUACTOVRIJURYTESTJUACODRLANOITNETNIUBETEVDENCERRB IDSPSTREQNEGL I GENCE IVIEXIPEBOERWOQBRIONIHYUPMBS IZAEMC PWMBMS

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON61QUIZ LegalConcepts Directions:PlaceaTforTrueoranFforFalseintheAnswerscolumntoshow whethereachofthefollowingstatementsistrueorfalse. Answers 1.Thetermsofacontractmustbeacceptedbythepartytowhom 1._____ itwascommunicated. 2.Anagreementtocommitacrimecanbeconsideredacontract.2._____ 3.Abilateralcontractisonethatisformedbyamutualexchangeof3._____ legallybindingpromises. 4.Anofferormustappeartobeseriouswhenmakinganoffer.4._____ 5.Wordsspokeninangerarenotconsideredanoffer.5._____ 6.Preliminarynegotiationsareconsideredtobeoffers.6._____ 7.Apurportedofferthatlacksessentialinformationislegally 7._____ ineffective. 8.Anexecutedcontractisacontractthathasnotbeenfullyperformed.8._____ 9.Apersonwhoisnottheintendedoffereecanaccepttheoffer.9._____ 10.Advertisementsthatasktheoffereetoperformanactasawayof 10. ____ acceptingcannotbeconsideredoffers. LegalApplications 11.Cheyaaskshercollegeroommatehowmuchmoneyshewouldgiveherfora scientificgraphingcalculatorthatshenolongerneeds.Theroommatereplies, Idprobablygiveyouaround$50forit.HasCheyamadealegaloffer? Explainyouranswer. 12.DuaneJohnstonraisesAngusbeef.Arepresentativefromalargemeatplant visitsthefarmandlooksoveralargeherdoftwoyearoldsteers.HeagreestopayDuaneadownpaymentof$30peranimalforfiftyofthesteers.Duaneisto visitsthefarmandlooksoveralargeherdoftwoyearoldsteers.HeagreestopayDuaneadownpaymentof$30peranimalforfiftyofthesteers.Duaneisto visitsthefarmandlooksoveralargeherdoftwoyearoldsteers.Heagreesto payDuaneadownpaymentof$30peranimalforfiftyofthesteers.Duaneisto receivetheremainingmoneywhenthecattleareshippedintwoweeks.Did Duaneandtherepresentativemakeabindingcontract?Explainyouranswer. Chapter 6 Offer and Acceptance 2-1 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON63PRACTICEACTIVITY Readthefollowingcasesandanswerthequestionsaboutthem.Attachapageifadditional spaceisneededforanswers. 1.Hallsponsoredaboatraceinwhichthefirstprizewasadvertisedasa14foot boattraileranda20horsepowermotor.AfterverifyingwithHallthattheprizes advertisedwerecorrect,Beanenteredtheraceandwon.Whenhewenttocollecttheprizes,hewastoldthattherehadbeenamistakeandwasoffereda6 advertisedwerecorrect,Beanenteredtheraceandwon.Whenhewenttocollecttheprizes,hewastoldthattherehadbeenamistakeandwasoffereda6 advertisedwerecorrect,Beanenteredtheraceandwon.Whenhewenttocollect theprizes,hewastoldthattherehadbeenamistakeandwasoffereda6 horsepowermotorasfirstprize.Beansued,allegingthathehadacontractfor theprizesoffered.DoesBeangettohavethe20horsepowerboat?Explain.[Hall v.Bean,582S.W.2d263(Tex.1979)] v.Bean,582S.W.2d263(Tex.1979)] v.Bean,582S.W.2d263(Tex.1979)] 2.Schiffistheauthorofseveralbooksadvocatingthatcitizensarenotrequiredby anylawtopayincometaxes.Whileappearingonaneveningtelevisionshow,he said,[I]fanybodycallsthisshow...andcitesanysectionofthisCode[theInternalRevenueCode]thatsaysanindividualisrequiredtofileataxreturn,Iwillpaythem$100,000.Thenextmorning,JohnNewmansawtheofferrebroadcastonamorningshow,foundseveralsectionsoftheIRScodethat said,[I]fanybodycallsthisshow...andcitesanysectionofthisCode[theInternalRevenueCode]thatsaysanindividualisrequiredtofileataxreturn,Iwillpaythem$100,000.Thenextmorning,JohnNewmansawtheofferrebroadcastonamorningshow,foundseveralsectionsoftheIRScodethat said,[I]fanybodycallsthisshow...andcitesanysectionofthisCode[the InternalRevenueCode]thatsaysanindividualisrequiredtofileataxreturn,I willpaythem$100,000.Thenextmorning,JohnNewmansawtheoffer rebroadcastonamorningshow,foundseveralsectionsoftheIRScodethat requiredthefilingofataxreturn,anddemandedthemoneyfromSchiff.Schiff refusedtopayNewman,allegingthathecouldonlyaccepthisofferifhecalled intotheshowthenightitwasbroadcast.Whoisright?Explain.[Newmanv. Schiff,778F.2d460(8thCir.1985)] 2-12Chapter 6 Offer and Acceptance 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service or otherwise on a password-protected website

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON71QUIZ LegalConcepts Directions:Fillintheblank(s)withthemostappropriatetermorphrasetocomplete thesentence. Answers 1.Ifonepartyusesphysicalthreatstoobtain anotherpartyssignature,thereisno? agreementbetweenthem. 1._______________________ 2.Ifthereisnogenuineassent,theapparent contractis?. 2._______________________ 3.A(n)?occurswhenonepartybacksout ofatransactionbyaskingforthereturnof whattheygaveandofferingtogivebackwhat theyhavereceived. 3._______________________ 4.Ina(n) ? relationship,aninordinate amountoftrustandconfidenceisplacedbya dependentpartyinthedominantparty. 4._______________________ 5.Duressoccurswhenonepartyusesa(n) ? or ? toobtainanexpression ofagreement. 5._______________________ 6.Whenonepartytoacontractisinapositionof trustandwrongfullydominatestheother party,?occurs. 6._______________________ 7.Thethreattoengageinillegalconducttowin agreementisalwaysconsidered?. 7._______________________ 8.Thetwokeyelementsinundueinfluenceare therelationshipandthewrongfulorunfair ?. 8._______________________ 9.Duresscanoccurwhenthethreatto?is reallymadeforapurposeunrelatedtothesuit. 9._______________________ Chapter 7 Genuineness of Assent 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use aspermitted in a license distributed with a certain product or service

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON81QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers 1.Apersonwhoreceivesagift1. _______ 2.Apromisenottodosomething2. _______ 3.Apersonwhopromisesanactionor 3. _______ forbearance 4.Atokenamountofmoneygivenas 4. _______ consideration 5. Alegalconceptthatdistinguishesbetween 5. _______ socialpromisesandserioustransactions 6.Achangeinapartyslegalpositionasa 6. _______ resultofacontract 7.Atransferofownershipwithoutreceiving 7. _______ anythinginreturn 8.Apersontowhomapromiseismade8. _______ 9.Themostcommonformoflegalvalue9. _______ 2-38 Chapter 8 Consideration 10.Apersonwhogivesagift10._______ A.forbearance B.consideration C.promisee D.exchangeof twobenefits E.donor F.nominal consideration G.promisor H.legalvalue I.donee J.gift LegalApplications 11.TheCromikasaregoingonacruisefortheirfiftiethweddinganniversary.They livenearacollegecampuswhereCraigattendsclasses.Mr.CromikaasksCraigifhewillstayintheirhomeforthetwomonthstheywillbeaway.Craigacceptstheofferinordertosavethetwomonthsboardhewouldhavepaidtothe livenearacollegecampuswhereCraigattendsclasses.Mr.CromikaasksCraigifhewillstayintheirhomeforthetwomonthstheywillbeaway.Craigacceptstheofferinordertosavethetwomonthsboardhewouldhavepaidtothe livenearacollegecampuswhereCraigattendsclasses.Mr.CromikaasksCraig ifhewillstayintheirhomeforthetwomonthstheywillbeaway.Craigaccepts theofferinordertosavethetwomonthsboardhewouldhavepaidtothe college.Isthereconsiderationforbothparties?Isthecontractenforceable? Explainyouranswer. 12.Yourneighborownsanantiquecar,buthenolongerhasroomtostoreit.You knowthecarwouldbeworth$30,000ifitwererestored.Youoffertogiveyour neighbor$1,500forthecar.Isthisavalidcontract?Explainyouranswer. 2012 Cengage Learning. All Rights

STUDENT _______________________________________ CLASS _______________________ DATE _________ LESSON91QUIZ LegalConcepts Directions:IntheAnswerscolumn,writetheletterfromColumn1thatrepresents thewordorphrasethatmatchesthestatementinColumn2. Column1Column2Answers 1.Peopleundertheageof181. _______ 2.Conditioninwhichapartytoacontractis 2. _______ unabletounderstandthecontract 3.Therangeofactsthatanorganization 3. _______ authorizesapersontodo 4.Itemsthatarerequiredtomaintainlife 4. _______ 5.Theabilitytounderstandthatacontractis 5. _______ beingmadeanditsgeneralmeaning 6.Astateofmentalimpairmentthatresults 6. _______ fromusingdrugs,alcohol,orinhalants 7.Theageof18oryounger7. _______ 8.Theageof18inmoststates8. _______ 9.Anactionwiththeintenttobeboundby 9. _______ acontract 10.Bothpartiestoacontractreturnthe10._______ consideration Chapter 9 Legal Capacity to Contract 2-58

Chapter 1: Laws and Their Ethical Foundation 1. Our law codes today are similar to those of civilizations thousands of years old. TRUE TRUE TRUE 2. A group of laws put together in an organized form is called a statute. FALSE FALSE FALSE 3. The Supreme Court

Chapter 10: Legal Purpose and Proper Form 1. A gambling agreement on the uncertain outcome of an event is termed a wager. TRUE TRUE TRUE 2. If no interest rate is specified in a loan agreement, the "legal rate of interest" as defined by state statute will be

Chapter 11: Contractual Obligations and Their Enforcement 1. If a contractual right is transferred, this does not change the legal rights of the other party to the contract. TRUE TRUE TRUE 2. No consideration is necessary to make a valid assignment. TRUE TRUE TRUE 3. A contract

Chapter 12: Contractual Aspects of Marriage and Divorce 1. Along with minimum ages for marriage with or without parental permission, some states have laws specifying a minimum age for dating. FALSE FALSE FALSE 2. No law exists that forces the parents of an illegitimate child to marry. TRUE

Chapter 13: Sales Contracts 1. A contract in which ownership of (title to) goods transfers immediately from the seller to the buyer for a price is a contract to sell. FALSE FALSE FALSE 2. When parties exchange goods for goods, the sale is a barter. TRUE TRUE TRUE

Chapter 14: Ownership and Risk of Loss in Sales 1. Any person who innocently buys stolen goods from a thief receives title as well as possession. FALSE FALSE FALSE 2. For ownership of goods to be transferred in a sale, the goods must be both existing and identified

Chapter 15: Consumer Protection 1. A breach of warranty is not a breach of contract. FALSE FALSE FALSE 2. New drugs cannot be marketed in this country without FDA approval. TRUE TRUE TRUE 3. Caveat emptor means "let the seller beware." FALSE FALSE FALSE 4. If

Chapter 16: Property and Its Acquisition 1. Property can be classified as either real or personal. TRUE TRUE TRUE 2. A fixed, original expression of a creative work can be protected by a trademark. FALSE FALSE FALSE 3. A unique word, mark, or symbol identifying products is

Chapter 17: Bailments 1. If you lend a pen to a fellow student you have created a bailment. TRUE TRUE TRUE 2. The subject of the bailment must be real property. FALSE FALSE FALSE 3. Actual bailments and constructive bailments are two ways to transfer possession and

Chapter 18: Ownership and Leasing of Real Property 1. The riparian rights system and the prior appropriation system are used for regulating water rights. TRUE TRUE TRUE 2. Fixtures installed by a residential tenant will not become the property of the landlord at the end of the lease.

Chapter 19: Insurance Law 1. The insurer agrees to pay the insured for loss suffered by the beneficiary. FALSE FALSE FALSE 2. Standard policy and forms of fire insurance may be modified by an insurable interest. FALSE FALSE FALSE 3. Most life insurance policies contain exemptions that excuse

Chapter 2: Constitutional Rights 1. The Declaration of Independence was adopted on July 4, 1776, by delegates of the 13 original colonies meeting in Philadelphia. TRUE TRUE TRUE 2. A regulation made by a federal agency does not have the same effect as a law made by Congress. FALSE

Chapter 20: Wills, Trusts, and Estates 1. Those who die without a valid will are said to have died testate. FALSE FALSE FALSE 2. A will is a legal expression by which a person directs how his or her property is to be distributed after death. TRUE TRUE TRUE

Chapter 21: Agency Law 1. The power of attorney generally ends with the death of the principal. TRUE TRUE TRUE 2. In most circumstances an undisclosed principal means that a third party may only hold the agent liable. FALSE FALSE FALSE 3. When a salesperson makes sales

Chapter 22: Employment Law 1. A person need not be supervised to be classified as an employee. FALSE FALSE FALSE 2. An independent contractor receives pay without supervision. TRUE TRUE TRUE 3. Generally, an employee can be discharged if unable to do the work because of illness

Chapter 23: Unions and the Employment Relationship 1. A promise not to join a union was a condition of employment under a yellow-dog contract. TRUE TRUE TRUE 2. Before 1842, the courts classified unions as criminal conspiracies. TRUE TRUE TRUE 3. In early labor disputes, ex parte

Chapter 24: Discrimination in Employment 1. Paying more money to those who work harder is unjustified discrimination. FALSE FALSE FALSE 2. Members of protected classes are often, but not always, minorities. TRUE TRUE TRUE 3. Justified discrimination is permitted. TRUE TRUE TRUE 4. Federal employment discrimination

Chapter 25: Employment-Related Injuries 1. An employer commits the tort of negligence when the duty to provide reasonably safe working conditions for employees is violated. TRUE TRUE TRUE 2. Under the common law, even if an employee proved that the employers negligence caused the injury, the employee would

Chapter 26: Forms of Business Organization 1. Unlimited personal responsibility for all debts and for other liabilities that the business may incur is only possible in a sole proprietorship form of business. FALSE FALSE FALSE 2. In a limited partnership every partner is liable only to the extent

Chapter 27: The Law of Corporations 1. The major advantage of the corporate form over the partnership form is in the way the corporate form is taxed. FALSE FALSE FALSE 2. The biggest disadvantage of a corporation is the inability to transfer ownership rights in it. FALSE FALSE

Chapter 28: Other Business Forms and Environmental Responsibility 1. The government enforces more requirements on a limited partnership than it does on a general partnership. TRUE TRUE TRUE 2. Both the Clean Air Act and the Clean Water Act have been amended to make them more effective. TRUE

Chapter 29: Commercial Paper 1. The promissory note is the most common form of commercial paper. FALSE FALSE FALSE 2. Banks are debtors of the depositors in relation to checking accounts. TRUE TRUE TRUE 3. An instrument that reads "Pay to the order of Anita Keys after

Chapter 3: Court Systems 1. In the state court system, sheriffs or their deputies have the duty to summon witnesses, keep order in court, and take steps to carry out judgments. TRUE and take steps to carry out judgments. TRUE and take steps to carry out judgments. TRUE 2.

Chapter 30: Negotiability and Negotiation of Commercial Paper 1. Negotiable instruments is another term for commercial paper. TRUE TRUE TRUE 2. Negotiability requires that the instrument state that something of value has been given for the paper. FALSE FALSE FALSE 3. Commercial paper is subject to the

Chapter 31: Discharge of Commercial Paper and Electronic Fund Transfers 1. Universal defenses are good against all holders but not against holders in due course. FALSE FALSE FALSE 2. Limited defenses are good against a holder through a holder in due course. FALSE FALSE FALSE 3. The obligation

Chapter 32: Secured and Unsecured Credit Transactions 1. The point in the process of creating a security interest when the security interest becomes legally effective against the ownership or possession rights of the debtor in the collateral is termed attachment. TRUE TRUE TRUE 2. Because the creditor has collateral

Chapter 33: Debtors, Creditors, and Bankruptcy 1. Pledged property may be repledged to a third party as long as the terms of the pledge to the third party do not prevent the original pledgor from getting the property back when the debt is paid. TRUE TRUE TRUE 2. A

Chapter 4: Criminal Law and Procedure 1. Crimes are either classified as felonies or misdemeanors according to the severity of their potential punishment. TRUE TRUE TRUE 2. An arraignment happens shortly after a person is arrested when he or she is brought into court and the formal charges are

Chapter 5: Civil Law and Procedure 1. Like a crime, a tort is considered to be a public wrong. FALSE FALSE FALSE 2. One act by a defendant cannot be both a crime and a tort. FALSE FALSE FALSE 3. Even children and insane persons may be held

Chapter 6: Offer and Acceptance 1. The person to whom an offer is made is termed the offeror. FALSE FALSE FALSE 2. All contracts have to be in writing to be enforceable. FALSE FALSE FALSE 3. A store display of a MP3 player marked $121.00 would be an

Chapter 8: Consideration 1. Consideration is what the promisor demands and generally must receive in order to make his or her promise legally binding against him or her. TRUE TRUE TRUE 2. A promise unsupported by consideration is generally unenforceable. TRUE TRUE TRUE 3. Generally, a promise to

Chapter 9: Legal Capacity to Contract 1. A person can have contractual capacity even if he or she cannot understand the wording of a contract. TRUE TRUE TRUE 2. Minority ends the day before the birthday of the age set as the age of majority. TRUE TRUE TRUE

Chapter 7: Genuineness of Assent 1. Parties that cancel their contract obligations by rescission cannot get back what they've already put into the contract. FALSE FALSE FALSE 2. A contract that lacks the genuine assent of the parties to it is typically voidable. TRUE TRUE TRUE 3. Committing