Cengage Advantage Books: Fundamentals of Business Law: Excerpted Cases 3rd Edition

A person acquires title to fungible goods by mixing them. Answer: FALSE Answer: FALSE Answer: FALSE To avoid liability for negligence, a business owner must protect its patrons against all risks. Answer: FALSE Answer: FALSE Answer: FALSE Stocks represent the borrowing of funds by firms. Answer: FALSE Answer: FALSE Answer: FALSE Downloading software or music into a computer's random

Strict liability applies to the suppliers of component parts. Answer: TRUE Answer: TRUE Answer: TRUE A U.S. citizen can bring a civil suit in a U.S. court against a U.S. entity for a tort allegedly committed overseas. Answer: TRUE Answer: TRUE Answer: TRUE Publishing false information about another's product is conversion. Answer: FALSE Answer: FALSE Answer: FALSE A signature

It is presumed that a co-tenancy is community property unless there is a clear intention to establish a joint tenancy. Answer: TRUE Answer: TRUE Answer: TRUE A holding company is a company whose business activity consists of holding shares in another company. Answer: TRUE Answer: TRUE Answer: TRUE In a judicial foreclosure, the lender is allowed

When a corporation is dissolved voluntarily, the corporation must notify its creditors of the dissolution. Answer: TRUE Answer: TRUE Answer: TRUE Voir dire is a process for presenting evidence in a case. Answer: FALSE Answer: FALSE Answer: FALSE One of the requirements of a valid contract is a fair price. Answer: FALSE Answer: FALSE Answer: FALSE A limited liability

A corporate officer is expected to be informed on corporate matters. Answer: TRUE Answer: TRUE Answer: TRUE In most states, a release requires a signed writing. Answer: TRUE Answer: TRUE Answer: TRUE A check is a special type of certificate of deposit. Answer: FALSE Answer: FALSE Answer: FALSE Common carriers are held to a standard of care based on

Home equity is the portion of a home's value that is "paid off." Answer: TRUE Answer: TRUE Answer: TRUE The UCC imposes the same rules of conduct on all parties in all circumstances. Answer: FALSE Answer: FALSE Answer: FALSE A principal is not liable to a third party for any contract made by the agent acting

Against a charge of a violation of the Securities Act of 1933, only an issuer of stock can assert the due diligence defense. Answer: FALSE Answer: FALSE Answer: FALSE Procedural due process requires that any taking of a person's life, liberty, or property by government must be made fairly. Answer: TRUE Answer: TRUE Answer: TRUE An executor

A usurious contract involves the purchase and sale of usable goods. Answer: FALSE Answer: FALSE Answer: FALSE To commit an intentional tort, one person must intend to harm a certain other person. Answer: FALSE Answer: FALSE Answer: FALSE If a buyer breaches a contract while the seller is still in possession of the goods, the seller

A contract must be in writing to be enforceable unless its performance is impossible within one year. Answer: FALSE Answer: FALSE Answer: FALSE A mistake of fact can only be bilateral. Answer: FALSE Answer: FALSE Answer: FALSE Any third party beneficiary to a contract who is not an intended beneficiary is incidental. Answer: TRUE Answer: TRUE Answer: TRUE The

An illegal contract is valid if the parties to it were unaware of the illegality. Answer: FALSE Answer: FALSE Answer: FALSE An "assignment of all rights" absolves the assignor of all liability under the contract that created the rights. Answer: FALSE Answer: FALSE Answer: FALSE An accountant's liability under the Securities Act of 1933 requires privity of

Order Processing Corporation and Pinpoint Data, Inc., enter into a contract online in a state that has enacted an unmodified version of the UETA. With regard to the E-SIGN Act A.the E-SIGN Act does not preempt this version of the UETA. B.the E-SIGN Act preempts this version of the UETA. C.the "fit" between

Antidumping duties are the responsibilities of international environmental polluters. Answer: FALSE Answer: FALSE Answer: FALSE When two conflicting security interests are unperfected, the first to attach has priority. Answer: TRUE Answer: TRUE Answer: TRUE A power of attorney can be given only to an actual attorney. Answer: FALSE Answer: FALSE Answer: FALSE A continuation statement is effective only if

In a contract for a sale of goods, the usual measure of compensatory damages is the difference between the contract price and the market price. Answer: TRUE Answer: TRUE Answer: TRUE A sole proprietor owns the entire business but does not receive all of the profit. Answer: FALSE Answer: FALSE Answer: FALSE Certified checks are instruments

Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those damages. Answer: TRUE Answer: TRUE Answer: TRUE A transfer of contract rights to a third party is a delegation. Answer: FALSE Answer: FALSE Answer: FALSE An ethics program can clarify what a company considers

Securities that are exempt from the registration requirement can generally be sold and resold without being registered. Answer: TRUE Answer: TRUE Answer: TRUE An accord and satisfaction requires that the amount of a debt be certain. Answer: FALSE Answer: FALSE Answer: FALSE Each partner is an agent of the partnership in carrying out the usual business

A bank that pays a customer's check with a forged drawer's signature can generally pass the loss onto the customer. Answer: FALSE Answer: FALSE Answer: FALSE Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages. Answer: TRUE Answer: TRUE Answer: TRUE An offer must be

To be enforceable, a contract for a sale of goods priced at $50 or more must be in writing. Answer: FALSE Answer: FALSE Answer: FALSE Under a destination contract, if a lessor is a merchant, the risk of loss passes to a lessee when the lessee takes physical possession of the goods. Answer:

In most states, the courts no longer grant "equitable" remedies. Answer: FALSE Answer: FALSE Answer: FALSE An offer must be communicated to the offeree to be effective. Answer: TRUE Answer: TRUE Answer: TRUE Under the exclusionary rule, all illegally obtained evidence must be excluded from any related criminal prosecution. Answer: TRUE Answer: TRUE Answer: TRUE In most bailments, the

Under the Equal Pay Act of 1963, all of the women on an employer's staff must be paid the same as all of the men. Answer: FALSE Answer: FALSE Answer: FALSE A person who holds all rights in property owns the property in fee simple. Answer: TRUE Answer: TRUE Answer: TRUE Equity is a branch of

A judge instructs a jury as to the law that applies in a case. Answer: TRUE Answer: TRUE Answer: TRUE A landlord is usually required to give some period of notice to terminate a periodic tenancy. Answer: TRUE Answer: TRUE Answer: TRUE Patent protection begins on the date that a patent is issued. Answer: FALSE Answer: FALSE Answer:

Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's hybrid vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is A.executed. B.executory. C.quasi. D.unenforceable. Answer: B. Answer: B. Answer: B. Doctors Medical Associates obtains an insurance

No oral contract is enforceable under the UCC. Answer: FALSE Answer: FALSE Answer: FALSE In contract law, "consideration" refers to the courtesy that one party shows another in negotiating a deal. Answer: FALSE Answer: FALSE Answer: FALSE An assignment of a negotiable instrument is generally prohibited. Answer: FALSE Answer: FALSE Answer: FALSE Under the mailbox rule, no acceptance is

A spendthrift trust provides for a beneficiary's transfer of his or her right to future payments of trust funds. Answer: FALSE Answer: FALSE Answer: FALSE A certificate of deposit is a type of draft. Answer: FALSE Answer: FALSE Answer: FALSE The holder of an artisan's lien can foreclose and sell the property subject to the lien

United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is A.a bona fide occupational practice. B.a business necessity. C.constructive discharge. D.reverse discrimination. Answer: D. Answer: D. Answer: D. Fact Pattern 23-1 Desi starts up eSites, an

A check carries with it an implied promise to reimburse the bank for paying the check. Answer: TRUE Answer: TRUE Answer: TRUE A warranty deed provides the most protection against defects of title. Answer: TRUE Answer: TRUE Answer: TRUE Service of process is the process of obtaining information from an opposing party before trial. Answer: FALSE Answer:

Neil goes to Oil Shop to change the oil in his car. Perry, the service technician, learns that Neil plans to take a trip and advises the use of a certain type of oil. The oil breaks down during the trip, damaging the car. Neil may recover from Oil Shop

If a lessor's tender of delivery fails to conform to a contract in any way, the lessee can reject the goods. Answer: TRUE Answer: TRUE Answer: TRUE A joint tenant's sale of his or her interest terminates the joint tenancy. Answer: TRUE Answer: TRUE Answer: TRUE An Internet service provider cannot be held liable for disseminating

Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously. Answer: TRUE Answer: TRUE Answer: TRUE Shareholders have a right to inspect corporate books and records. Answer: TRUE Answer: TRUE Answer: TRUE Normally, a court of law will not question the adequacy of consideration. Answer: TRUE Answer: TRUE Answer: TRUE Federal

There are no registration requirements for trade secrets. Answer: TRUE Answer: TRUE Answer: TRUE Contract law shows what excuses our society accepts for breaking certain types of promises. Answer: TRUE Answer: TRUE Answer: TRUE A financing statement is effective for no more than five months from the date of filing. Answer: FALSE Answer: FALSE Answer: FALSE Resolving whether a

If a nonconforming installment substantially impairs the value of a whole contract, the buyer can treat the entire contract as having been breached. Answer: TRUE Answer: TRUE Answer: TRUE A bank that has certified a check is under no obligation to accept it. Answer: FALSE Answer: FALSE Answer: FALSE Venue is the term for the subject

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched. Answer: FALSE Answer: FALSE Answer: FALSE Shares issued for more than their fair market value are known as watered stock. Answer: FALSE Answer: FALSE Answer: FALSE If an action is ethical from an outcome-based perspective, it is always

An applicant for insurance has a duty to disclose only material facts that the insurer asks for. Answer: FALSE Answer: FALSE Answer: FALSE Under the Restatement (Third) of Torts, accountants can be held liable for negligence to any third parties. Answer: FALSE Answer: FALSE Answer: FALSE A divorce necessarily revokes an entire will. Answer: FALSE Answer: FALSE Answer:

A forum-selection clause indicates the place for the resolution of a dispute arising under a contract. Answer: TRUE Answer: TRUE Answer: TRUE An online offer should include provisions relating to dispute settlement. Answer: TRUE Answer: TRUE Answer: TRUE One way to acquire ownership rights to property is merely to possess it. Answer: TRUE Answer: TRUE Answer: TRUE When a buyer

An offeror is a person who makes an offer. Answer: TRUE Answer: TRUE Answer: TRUE If a buyer wrongfully refuses to accept goods that conform to a contract, the seller can maintain an action to recover the damages sustained. Answer: TRUE Answer: TRUE Answer: TRUE A criminal case must be proved beyond a reasonable doubt. Answer:

An expression of opinion by a seller will not usually create a warranty. Answer: TRUE Answer: TRUE Answer: TRUE An employer is not liable for the sexual harassment of an employee by the employee's supervisor. Answer: FALSE Answer: FALSE Answer: FALSE UCC Articles 3 and 4 govern checks. Answer: TRUE Answer: TRUE Answer: TRUE Restrictions on imports may include

A federal judge must adhere strictly to federal sentencing guidelines. Answer: FALSE Answer: FALSE Answer: FALSE An express warranty cannot be limited. Answer: FALSE Answer: FALSE Answer: FALSE On a partner's dissociation, his or her duty of loyalty to the partnership ends. Answer: TRUE Answer: TRUE Answer: TRUE Article 2 of the UCC governs contracts for sales of services.