Introduction to Business Law 4th Edition

Which of the following Acts sets goals without regard to the cost involved in meeting the goals? a. Clean Water Act. b. Clean Air Act. c. Both the Clean Water Act and the Clean Air Act. d. Neither the Clean Water Act nor the Clean Air Act. Answer: C Answer: C Answer: C Jerry purchased a state-of-the-art computer

Zebra Toy Company, located in Chicago, sells $500,000 worth of toys to a London, England, wholesaler. This contract could be governed by: a. Illinois's Uniform Commercial Code. b. English law. c. the CISG. d. All the above are correct. Answer: D Answer: D Answer: D Claude agrees to lease his house to Irvin for nine months, the lease

Which of the following would be an example of a civil lawsuit? a. George is being prosecuted for bank fraud. b. The government has initiated an action against Jeff for operating a motor vehicle under the influence of alcohol. c. Gretta hit Rita in a bar during happy hour. Rita is now suing

Which of the following is not required to create a valid trust: a. mental capacity of the grantor. b. witnesses. c. a beneficiary(ies). d. property transferred to the trust. Answer: B Answer: B Answer: B If the subject of the contract includes issues that may be controversial, it is best to: a. keep lawyers out of the negotiation, so

An Environmental Impact Statement must be prepared for every major federal action that significantly affects the quality of the environment. Answer: T Answer: T Answer: T The two principal requirements of the Foreign Corrupt Practices Act involve bribes and grease payments. Answer: F Answer: F Answer: F First Federal loaned Madeline $20,000 to purchase a new van. The

A major advantage of an Asset Protection Trust is: a. It is shielded from creditors that arise after the trust is established b. Its proceeds are tax-free. c. Its value cannot decline due to stock market fluctuations. d. It has a guaranteed rate of return. Answer: A Answer: A Answer: A Discrimination under Title VII does NOT include: a.

If a foreign company "dumps" goods on the United States market: a. the goods will be considered illegal goods and not be allowed to be sold in the United States. b. the United States will issue trade sanctions against the country that allowed the dumping. c. a "dumping duty" will be imposed on the

Erica's supervisor told her to arrange for a conference room at the Kelly Inn. Erica has express authority to contract for the room. Answer: T Answer: T Answer: T If Velma, as a birthday present, assigns to Jim her contractual right to collect $50 from Wood Co., this would be a gratuitous assignment. Answer: T Answer:

The WTO is: a. a world trade organization that regulates trade among its member nations. b. a treaty negotiated by the European Union to regulate its trade c. a world court established by the GATT treaty that hears trade disputed. d. none of these answers is correct. Answer: C Answer: C Answer: C What level of owners liability

Fact Pattern 30-1 David has worked as a CPA for Accountants R Us for about eight months. When his wife had a baby, he requested to take some time off. He believes he is allowed to do so pursuant to the Family and Medical Leave Act. Does the Family and Medical Leave

The Federal sentencing guidelines are just guidelines. Judges do not have to follow them. Answer: F Answer: F Answer: F In a construction contract, there is a $1000 per day estimate of damages for each day that the contract runs over the completion date. The contractor is 30 days late when the job is

In order for a copyright holder to collect money damages from a person who used copyrighted material, it must be proven that: a. the infringement was intentional. b. the copyright holder sustained more than $500 in actual damages. c. the copyrighted material contained the copyright symbol, name of the copyright holder, and the

Molly and Craig are the original parties to a contract. Craig is obligated to design a Website for Molly. They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract. The agreement releases Craig from

Krista, the Director of Advertising at Trein, Inc., approved a series of magazine advertisements using a close-up photograph of celebrity look-alike models driving a train engine with the slogan, "Get on Board with Trein. Each ad included a signature, meant to look like that celebritys autograph. Since in most cases,

A Japanese company operates a ship called the Kinia. If the Kinia sails in U.S. waters, it must comply with the standards set by the Clean Water Act. Answer: T Answer: T Answer: T Which of the following projects would require the preparation of an Environmental Impact Statement? a. A plan initiated by the Forest Service

Pat's Pen Co. manufacturers and sells an inexpensive ball-point pen. Salley's Stationery purchases the pens for $.25 each in quantities of 1,000. Salley's discovered that a national chain, a competitor of Salley's, buys the pen at $.20 for 1,000. If Salley's Stationery sues Pat's Pen Co. for price discrimination: a. Pat's

The burden of proof required in a criminal case is: a. clear and convincing. b. a preponderance. c. beyond a reasonable doubt. d. highest degree of honesty. Answer: C Answer: C Answer: C In the first decade of this century, music sales at American record labels declined by: a. 58% b. 3% c. 75% d. 20% Answer: A Answer: A Answer: A The United States has

A draft is always a check, but a check is not always a draft. Answer: F Answer: F Answer: F Singleton, an eighty-year-old widower, remarried. The next day, he made a will leaving everything to his son, Joey. A week after his marriage, Singleton died. How will his estate be handled? Answer: In a community

In Hernandez v. Arizona Board of Regents, the court held that individuals who: a. intentionally provide alcohol to minors can be liable for negligence to injured third parties. b. intentionally provide alcohol to minors cannot be held liable for negligence to injured third parties. c. carelessly provide alcohol to minors can be held

When can shareholders of a corporation be held personally liable for the liabilities of the corporation. a. if corporate shareholders do not comply with the technicalities of corporation law. b. If they are corporate officers c. If they are corporate stockholders d. If they form an S corporation Answer: A Answer: A Answer: A Longs Department Store contracted

Which statement is true about procedures for filing a Title VII case? a. The plaintiff must file within 60 days of the wrongdoing. b. The plaintiff must exhaust all legal remedies through the courts before filing a case with the Equal Employment Opportunity Commission. c. The Equal Employment Opportunity Commission will sue on

Which of the following would probably not be required of employers to reasonably accommodate for religious beliefs? a. flexible scheduling. b. closing the business on Sundays. c. reassigning employees within the company. d. allowing employees to switch work schedules. Answer: B Answer: B Answer: B When the per se standard applies, the plaintiff: a. needs only to prove the

Nate works as a carnival barker. His employment contract specifies that he can be fired if he "loses his voice. This is an example of: a. vagueness. b. extortion. c. ambiguity. d. duress. Answer: C Answer: C Answer: C An engagement letter is a written contract: a. between an accountant and client. b. in anticipation of marriage. c. between a corporation

Kyle was eating clam chowder soup in a restaurant when a very small piece of bone lodged in his throat. Fortunately, he was able to remove the bone with his fingers. However, he was upset by the incident and sued the restaurant for negligence. The most likely result would be: a. Kyle

Identify the basic job of a President of the United States, the source of executive power, and three key powers associated with the position of President. Answer: The basic job of a President is to enforce the nations laws. Article II of the Constitution created the office of President and defines the

Donna defaulted on her loan owed to Second State Savings and Loan. The loan was secured with Donna's car. Donna used the car for personal and family reasons. Which statement is correct? a. Second State may take Donna's car without a court order if this can be done without a breach of

A major motion picture distributor offers to provide a television station with three very popular, desirable films. However, as part of the agreement, the distributor requires that the television station also purchase four films that are not very desirable. This type of arrangement is called a: a. reciprocal dealing agreement. b. reverter

The concept of stare decisis focuses most on: a. predictability. b. flexibility. c. legislative intent. d. change. Answer: A Answer: A Answer: A Nestles sold a drink called Boost Kid Essentials, which contained probiotics and claimed that Boost would prevent children from getting sick or missing school, assertions for which the company had no evidence. The FTC ruled

Researchers who study happiness find that people expect material goods to make them happier than they actually do. Answer: T Answer: T Answer: T Define and discuss the purposes of the "business judgment rule." Answer: The business judgment rule is a common law concept that a director or officer who makes a business judgment in

The EPA brought an administrative action against Boch Industries for violating the Clean Air Act. The administrative law judge ruled in the EPA's favor. Boch Industries: a. can appeal the decision to a U.S. Court of Appeals and then to the U.S. Supreme Court. b. can appeal to the U.S. Congress and

Texas v Johnson dealt with the legality of burning an American flag. Answer: T Answer: T Answer: T Under the Equal Pay Act of 1963 an employee may not be paid at a lesser rate than employees of the opposite sex for tasks requiring equal skill, effort, and responsibility under similar working conditions. Answer:

Opinion is generally a valid defense in a defamation lawsuit because it is not meant to be a factual statement. Answer: T Answer: T Answer: T Big Corporation is served with a subpoena to turn over business records to an administrative agency. What are three possible legal grounds the company can raise to avoid

Sprock is a holder in due course on an instrument issued by Klingon. Which of the following defenses could be successfully raised by Klingon? a. Forgery. b. Prior payment. c. Breach of contract. d. Fraud in the inducement. Answer: A Answer: A Answer: A Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the

The accounting firm of Griggs, Macon, and Fiurre audits the financial records of Chasse Co. The Sarbanes-Oxley Act prohibits the accounting firm from providing consulting services to Chasse on human resource matters. Answer: T Answer: T Answer: T Ricardo has agreed to sell his family farm to Walter for a price of $450,000. Even

Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is approved by the House committee specializing in that subject, the bill will go to: a. a Senate committee specializing in the subject matter of the proposed legislation. b. the full House. c. a Conference Committee made up of representatives

Mentally infirmed Sasha contracts to purchase a piano for $2,500 in 60 monthly installment payments. Six months later she tries to void the contract on grounds of mental impairment. A court will: a. normally void the contract without requiring anything further on Sashas part. b. normally void the contract but will require