Business Law Today Standard: Text And Summarized Cases (Miller Business Law Today Family) 10th Edition

Anthony believes that he needs to obtain a Chapter 13 discharge in bankruptcy. A Chapter 13 case can be initiated by a filing of a voluntary petition by a. a creditor only. b. a corporation only. c. a debtor only. d. a trustee only. Answer: C Answer: C Answer: C Jason files a suit against Maybelline. If Maybelline

Under the Statute of Frauds, fixtures, such as buildings, growing crops and minerals, are treated as real property. Answer: T Answer: T Answer: T A franchisor is the purchaser of a franchise. Answer: F Answer: F Answer: F Scienter exists if a party makes a statement that he or she believes to be scientifically verifiable. Answer: F Answer: F Answer: F Harm

Quasi contracts are often used by courts, even in cases where there is an actual contract that covers the area in controversy. Answer: F Answer: F Answer: F Class-action lawsuits are suits in which a number of persons join together to bring an action. Answer: T Answer: T Answer: T If no time for acceptance is specified in

The state of Illinois enacts a usury statute. The purpose is to a. establish a maximum rate of interest that may be charged for loans. b. establish a minimum rate of interest that may be charged for loans. c. prevent the misuse of money advanced as loans. d. prevent the misuse of money paid

Jane and Phil enter into a contract, but make a bilateral mistake. For the contract to be rescinded by either party, the bilateral mistake must be about a. a material fact. b. value. c. an opinion. d. a prediction. Answer: A Answer: A Answer: A Jack's Pet Houses, Inc. sells shelters for animals under "limited" warranties. Under the

Guy is Hot Java Company's majority shareholder. Guy decides to sell his Hot Java stock. The sale will be an effective transfer of the control of the company. Does Guy owe a duty to Hot Java or its minority shareholders in this situation? Answer: Yes. A single shareholderor a few shareholders

Fact Pattern 31-3 Dhani, an accountant for Eureka, Inc., learns of undisclosed company plans to market a new laptop. Dhani buys 1,000 shares of Eureka stock. He reveals the company plans to Fay, who buys 500 shares. Fay tells Geoff, who tells Hu. Both Geoff and Hu buy 100 shares. They

Carly is a minor. Without her parent' knowledge, she signs a contract to buy an airplane ticket to Hawaii for spring break. Carly's parents are a. liable for the contract. b. not liable for the contract. c. liable for up to half the value of the goods in the contract. d. liable for up

Bylaws are the internal rules of management for a corporation. Answer: T Answer: T Answer: T All oral contracts are enforceable under the UCC. Answer: F Answer: F Answer: F Home equity is the portion of a home's value that is "paid off." Answer: T Answer: T Answer: T In most contracts, promises of performance are not expressly conditioned. Answer: Answer: Answer: T T T There

During a union election campaign, Autowerks Repair, Inc., prohibits on-site solicitations by any party, including Mechanics Union, which is seeking the worker' unionization. This violates a. federal labor law. b. federal elections law. c. federal employment discrimination law. d. no federal law. Answer: D Answer: D Answer: D Briana, an employee of Cotillion Bank, is charged with embezzlement,

Larceny relies on fear and force. Answer: F Answer: F Answer: F Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by a. employees and job applicants, not an administrative agency. b. employers and businesses, not

Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children. Carla sells Fred a dog. When Fred takes the dog home, it bites both his small children and causes them serious injuries. Fred can sue Carla

Corporation' chief executive officers are directly accountable for the accuracy of financial statements filed with the Securities and Exchange Commission. Answer: T Answer: T Answer: T Corporations can be good citizens by promoting goals that society deems worthwhile. Answer: T Answer: T Answer: T Under the UCC, an agreement modifying a contract needs no consideration to be binding. Answer:

Lather Up Soap Products Company grants its agent Kathy an exclusive territory in which to sell Lather Up products. The firm cannot compete with Kathy in that territory under the principal's duty of a. avoidance. b. cooperation. c. indemnification. d. reimbursement. Answer: B Answer: B Answer: B Gilbert finds an iPad on the counter at Starbucks. He takes

Carrie Ann works at Paper Products, Inc. She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother. Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not

O.K. Oil holds itself out to others as being a corporation but makes no attempt to incorporate. In this circumstance, O.K. is most likely a. a corporation by estoppel. b. a de facto corporation. c. a de jure corporation. d. ultra vires. Answer: A Answer: A Answer: A Fresh Seasonal Fruit Company has assets of less than $10

Once a discharge is granted, it may not be revoked, even if, for example, a debtor concealed property to defraud a creditor. Answer: F Answer: F Answer: F On a lessee's insolvency, the lessor can stop delivery of the goods. Answer: T Answer: T Answer: T A party must own property to have an insurable interest in it. Answer:

For a minor to disaffirm a contract, he or she must present the contract to a court. Answer: F Answer: F Answer: F A quasi contract is not enforceable by a court. Answer: F Answer: F Answer: F A copy does not need to be exactly the same as the original to infringe a copyright. Answer: T Answer: T Answer: T At

Fact Pattern 19-1 Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues a stop-payment order. Refer to Fact Pattern 19-1. Capital Bank a. is liable

A written stop payment order is valid for only thirty days. Answer: F Answer: F Answer: F Confiscation occurs when a government seizes private property for an illegal purpose or without just compensation. Answer: T Answer: T Answer: T A buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from

The courts consider legitimate competitive behavior permissible only if it does not result in the breaking of a contract. Answer: F Answer: F Answer: F If a life insurance applicant pays a premium but dies before the physical exam, there is obviously no coverage. Answer: F Answer: F Answer: F The purpose of the exclusionary rule is to

Mona, an accountant, prepares for NuTech Corporation a financial statement that omits a material fact. The financial statement is included in NuTech's registration statement, which Pam reads. Pam buys NuTech stock. Under Section 11 of the Securities Act of 1933, for Mona to be liable for the omission, Pam must

Healthy Harvest Company runs a candy and fruit processing and packaging plant. Most of Healthy Harvest's business is done during holiday seasons, especially between Halloween and New Year's Day, and in the spring. The company hires a large temporary workforce during its busiest times. Occasionally, a position opens for an individual

Marvin is an employee of Wild Thing Farms. Marvin finds out that the head of Wild Thing Farms is illegally importing endangered animals to sell as pets. If Marvin reports his employer's illegal activities he will probably be protected fro retaliatory discharge by a. unemployment statutes. b. worker compensation statutes. c. whistleblower statutes. d.

According to the Foreign Sovereign Immunities Act, a foreign state that has committed a tort in the United States is protected from the jurisdiction of the U.S. courts. Answer: F Answer: F Answer: F The Second Amendment to the U.S. Constitution reserves all powers not delegated to the national government to the states. Answer: F Answer:

Daria writes a check for $100 drawn on Village Bank and presents it to Fast Cash, Inc., for payment. If the check is not backed by sufficient funds, Daria may be prosecuted for a. forgery. b. fraud. c. negligence. d. nothing. Answer: B Answer: B Answer: B Without a permit, Timberline Plywood Company discharges its untreated wastewater into

Consideration is the value given in return for a promise. Answer: t Answer: t Answer: t A buyer in the ordinary course of business has priority over any security interest created by the seller. Answer: T Answer: T Answer: T Substantive due process focuses on the substance of legislation. Answer: T Answer: T Answer: T A failure to follow generally accepted accounting principles

Under the Age Discrimination in Employment Act of 1967, a plaintiff must prove that he or she was replaced by a person "outside the protected class." Answer: F Answer: F Answer: F There are additional disclosure requirements for a higher-priced mortgage loan. Answer: t Answer: t Answer: t Article 2 of the UCC covers any transaction that creates

Barb, a real estate agent, is showing John a house. She tells him that this is a house where "his family can live happily ever after." John buys the house, but his wife does not like it. John a. can rescind the contract on the ground of fraud. b. can rescind the

Jen signs a check "pay to the order of Key" drawn on Jen's account in Little Bank to buy Key's car. If there are insufficient funds in Jen's account to cover the amount of the check, but the bank pays it, this creates a. a cashier's check. b. an overdraft. c. a stale

Fresh Harvest Company, which is based on Georgia, packages and sells vegetables. Jack, who is a resident of North Carolina, buys a Fresh Harvest product, eats it, and suffers severe food poisoning. Jack wants to file a suit against Fresh Harvest. The diversity of citizenship between these parties means that a.

Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. PriceLess Stores files a suit to block the law's enforcement. The court would likely hold that this law

An agency can terminate once its purpose is achieved. Answer: T Answer: T Answer: T A sale of all of a corporation's assets requires the approval of its shareholders. Answer: T Answer: T Answer: T A preemptive right is a preference over other shareholders to cast the determining vote on fundamental changes affecting the corporation. Answer: F Answer: F Answer: F In

Monopoly power may be proved by evidence that a firm used its power to control prices. Answer: T Answer: T Answer: T The price that a secured party obtains on a sale of collateral is all that the creditor can recover on the debt. Answer: F Answer: F Answer: F Quasi contract allows a court to act as

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act. Answer: T Answer: T Answer: T A partnership cannot be a shareholder in an S corporation. Answer: T Answer: T Answer: T Federal law encourages private lenders to modify mortgages so as to lower the monthly payments of

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors. Answer: T Answer: T Answer: T A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made. Answer: T Answer:

Gulf Air, Inc., is the major wholesale distributor of software in the state of Florida. Its closest competitor is Fluid Systems Company, another Florida firm. The two firms agree that Gulf Air will operate in south Florida and Fluid Systems will operate in north Florida. This is a. a group boycott. b. a

An executed contract is one that has been fully performed by both parties. Answer: T Answer: T Answer: T Conditioning the sale of one product on the purchase of another is an exclusive-dealing contract. Answer: F Answer: F Answer: F Discharge in bankruptcy is no defense on any instrument regardless of the status of the holder. Answer: F Answer: F Answer:

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched. Answer: F Answer: F Answer: F Generally, an employer's monitoring of electronic communications in the workplace does not violate employee' privacy rights. Answer: T Answer: T Answer: T Under the covenant of quiet enjoyment, a landlord promises that a tenant

Private parties cannot sue violators of Section 10(b) and Rule 10b-5. Answer: F Answer: F Answer: F A mechanic's lien is possessory. Answer: F Answer: F Answer: F An accountant's liability under the Securities Act of 1933 requires privity of contract with the purchaser of a security. Answer: F Answer: F Answer: F An oral contract may be enforceable if the person

A void contract is enforceable if it is in writing. Answer: F Answer: F Answer: F It is presumed that a co-tenancy is a tenancy in common unless it is clear that the parties intended to establish a joint tenancy. Answer: T Answer: T Answer: T Most franchise agreements provide that notice of termination of a franchise is not

Jon writes a check to LocoMotion, Inc., as payment for a golf cart but soon discovers the cart is broken. He goes to Fairway Bank, the drawee, and orally authorizes Lolly, a bank officer, to stop payment on the check. This order is valid for a. fourteen days. b. fourteen months. c. fourteen

Kris presents an instrument that states "pay to the order of Kris" to Metro Bank for payment. This is a special type of draft drawn on a bank, ordering the bank to pay a fixed amount of money on demand. This is a. a commercial wire transfer. b. a check. c. a debit

Antitrust legislation was created because of the belief that competition leads to lower prices. Answer: T Answer: T Answer: T No contract can prohibit delegation of the duties of the contract. Answer: F Answer: F Answer: F Under the Sarbanes-Oxley Act, accountants must retain working papers relating to an audit or review for a certain period of time. Answer:

Mickey is a director of Fine Art Dealers, Inc. Mickey is trained in art valuation. Fine Art Dealers makes several purchases in which it pays too much money for artwork. Mickey approves all the transactions without reading the details. Mickey is most likely a. liable for breach of the duty of

Writers acquire ownership of their work through production. Answer: T Answer: T Answer: T The injury suffered by a nonbreaching party due to the breach of a contract may be remedied by payment of compensatory damages. Answer: t Answer: t Answer: t Merchants must ship orders within the time promised in their ads. Answer: T Answer: T Answer: T In cyberspace, trademarks

The initial board of directors of a corporation is normally elected at the first annual shareholder' meeting by a majority vote of the shareholders. Answer: F Answer: F Answer: F Under the Americans with Disabilities Act of 1990, an employer must hire unqualified applicants who have disabilities. Answer: F Answer: F Answer: F Express warranties can not be

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. Hollis breaches the contract. Grady's normal remedy is a. damages. b. reformation. c. rescission. d. specific performance. Answer: D Answer: D Answer: D Law enforcement officers suspect Chris of drug trafficking. Without a warrant, the officers install a tracking device on a vehicle

Life tenants are persons who share ownership rights simultaneously. Answer: F Answer: F Answer: F A copyright owner must place a or an on the work to have the work protected from copyright infringement. Answer: F Answer: F Answer: F There are three categories of property. Answer: F Answer: F Answer: F A partnership ends if one partner dissociates from the firm. Answer: Answer:

Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership. Answer: f Answer: f Answer: f Revocation is effective on dispatch. Answer: F Answer: F Answer: F To avoid liability for negligence, a business owner must protect its patrons against all risks. Answer: F Answer: F Answer: F If a voidable contract is avoided,

A franchisor can require a franchisee to purchase certain supplies from the franchisor at an established price. Answer: T Answer: T Answer: T If a seller is an expert and gives an opinion as an expert, then he or she usually creates an express warranty. Answer: T Answer: T Answer: T Foreclosure is the postponement, for a limited

First Design Corporation, a business firm, and Glen, a consumer, make a deal over the Internet that involves e-signatures. Under the E-SIGN Act, the e-signatures a. are as valid as signatures on a paper document. b. must be encrypted to be enforceable. c. must have been inscribed on a digital tablet to be

EthicsPoint is an organization through which employees can report unethical behavior as long as they are willing to identify themselves. Answer: F Answer: F Answer: F Statutes often set forth rules specifying the terms of contracts. Answer: T Answer: T Answer: T Parents who sign a contract made by their minor child with an adult have the same

Under the Fourth Amendment, a general search warrant and a general search through a person's belongings are permitted. Answer: F Answer: F Answer: F When an agency relationship is terminated, the principal has a duty to personally notify third parties who knew of its existence. Answer: F Answer: F Answer: F Loan flipping occurs when a lender convinces

Herb, a computer programmer for Inventory Control Corporation, is arrested in his employer's parking lot on suspicion of larceny. Herb must be informed of his right to a. a trial by jury. b. punishment. c. question witnesses. d. remain silent. Answer: D Answer: D Answer: D Tiny is an accountant. Tiny's violation of generally accepted accounting principles and

The crime of theft requires the taking of property, without regard to whether the perpetrator knew it belonged to another. Answer: F Answer: F Answer: F The drawee who signs a draft or check is not primarily liable to any subsequent holders. Answer: F Answer: F Answer: F Implied warranties can arise from a "course of dealing." Answer: T Answer:

Orin creates a living trust to pass his assets, including stock in Petro Oil Company and other business investments, to his heirs. One advantage of this arrangement is that a. income taxes do not have to be paid on trust earnings. b. the assets are sheltered from the payment of estate taxes. c.

Sights Unseen, Inc., (SUI) sells telescopes with distinctively designed lenses and mirrors. Later, without SUI's permission, Telescopes Etc. Corporation begins to sell scopes with identical structures of lenses and mirrors. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement. Answer: B Answer: B Answer: B Cory believes that he and Dian

A joint venture resembles a partnership but is taxed like a corporation. Answer: F Answer: F Answer: F A limited liability company can sue or be sued, enter into contracts, and hold title to property. Answer: T Answer: T Answer: T SEC Rule 10b-5 applies to almost all cases involving the trading of securities. Answer: T Answer: T Answer: T A contract

Under the UCC, parties to a contract cannot limit or exclude consequential damages. Answer: F Answer: F Answer: F The basis for an employee's contribution to Social Security is the employee's age. Answer: F Answer: F Answer: F Punitive damages are generally available in contract disputes. Answer: F Answer: F Answer: F If the corporate directors fail to sue in the corporate

Wings2Go Corporation fails to hold an organizational meeting. In this circumstance, at common law Wings2Go is most likely a. a corporation by estoppel. b. a de facto corporation. c. a de jure corporation. d. ultra vires. Answer: B Answer: B Answer: B Willy deposits $5,000 with Home State Bank on July 1, 2012. Home State Bank promises to

Fraud occurs only when there is reliance on a statement of opinion. Answer: F Answer: F Answer: F Equity is a branch of law, founded in justice and fair dealing, that seeks to supply a remedy when no adequate remedy at law is available. Answer: T Answer: T Answer: T A lien is an encumbrance on a property

Vieux Carr S.A., a French firm, imports its goods into the United States and offers those goods for sale at "less than fair value." "Fair value" is the price of a. comparable goods in a select "basket" of other countries. b. Vieux Carr's goods in France. c. Vieux Carr's goods in the United

Duffy is a passenger in a car that Caleb is driving when an accident occurs. Both Caleb and Duffy are emotionally rattled, but neither is physically hurt. Caleb is not liable to Dufy on a negligence theory because a. both parties were emotionally rattled. b. Caleb apparently did not intend to cause

Craft Engineering, Inc., contracts for a sale of technical instruments to Detail Design Company. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is a. anticipatory repudiation. b. perfect tender. c. rejection of performance. d. revocation of acceptance. Answer: A Answer: A Answer: A Paula develops a new espresso machine that

Peter and Ray are riding their horses together. Peter jokingly tells Ray that Ray's horse is too slow. Ray laughs and jokingly responds "Yes, he is too slow! I would sell him for $5!" Peter hands Ray $5. This is a. a valid acceptance because Peter gave Ray the money in

A firm offer by a merchant may be oral. Answer: F Answer: F Answer: F Dominique, a certified public accountant, provides accounting services to Eagle Corporation. The services include preparing Eagle's financial reports and issuing opinion letters based on the reports. In 2008, Eagle falls into serious financial trouble, but neither Dominique's reports nor

Sayers is very clever and spends lots of time creating new things. Which of the following is not copyrightable? a. A sculpture of Sayers's horse b. A book about Sayers's life c. A movie about Sayers's life d. Sayers's idea for a new way to play the guitar Answer: D Answer: D Answer: D Jonathon promises to pay

Ross, an employee at Super Snowboard Company, is laid off. Before he exits Super's building, he e-mails the company's marketing campaign to Winter Sports Corporation, Super's competitor, without permission. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets. Answer: D Answer: D Answer: D Scot and Tiffany enter into an

A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers. Answer: T Answer: T Answer: T Under the Restatement (Third) of Torts, accountants can be held liable for negligence to any third parties. Answer: F Answer: F Answer: F A court can not dissolve a corporation for mismanagement. Answer: F Answer: F Answer:

Erasmus files a suit against Drain-Pro Plumbing & Repair LLC under the Civil Rights Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must show that he is a member of a. a protected class. b. a majority group. c. an employer' association. d. a union. Answer: B Answer: B Answer: B Bess wishes to appeal

The Arizona Supreme Court rules against Jennifer in a case against Kut Rate Stores, Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask the Court to issue a writ of a. appeal. b. certiorari. c. jurisdiction. d. summons. Answer: B Answer: B Answer: B To Cody, the written law of a particular

The payment of Frida's debt to Gianini is guaranteed by Frida's personal property. Gianini is a. a debtor. b. a secured party. c. a secured transaction. d. a security interest. Answer: B Answer: B Answer: B National Capital Corporation and International Investments, Inc., form a joint stock company. The ownership of a joint stock company is represented by a.

Children must be at least thirteen years old to work in hazardous occupations. Answer: F Answer: F Answer: F All states have intermediate appellate courts. Answer: F Answer: F Answer: F The First Amendment protects defamatory speech. Answer: F Answer: F Answer: F Generally, federal securities law are patterned after state' antifraud laws. Answer: Answer: Answer: F F F Under an exclusive-dealing contract, a seller promises

When a conflict arises among the documents that involve Express Flights Corporation, the first priority for resolving the conflict is given to a. resolutions of the board of directors. b. Express Flights's bylaws. c. state statues. d. the U.S. Constitution. Answer: D Answer: D Answer: D Speedy Shipping Corporation applies to TransInsurance Company for a fire insurance policy

The payment of Brian's debt to Chuck is guaranteed by Brian's personal property. This is a. an attachment. b. a secured transaction. c. perfection. d. a violation of most state laws. Answer: B Answer: B Answer: B Gage buys from Fishing Guide Corporation the exclusive right to sell Fishing Guide rods and reels in a certain area. Their

Rangle contracts with Siena to buy a certain horse for her. Rangle makes a deal with Timberline Stables, the owner of the horse, and makes a down payment. Siena fails to pay the rest of the price. Timberline sues Rangle for breach of contract. His right to hold Siena liable