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978-1259638855 Chapter 1 Part 1
Chapter 01 – The Nature of Law 1-1 CHAPTER 01 THE NATURE OF LAW I. OBJECTIVES: As its title suggests, this chapter seeks to acquaint students with the general nature of law. (See also the Learning Objectives added to the […]
978-1259638855 Chapter 1 Part 2
Chapter 01 – The Nature of Law 1-8 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. both pragmatic and policy-driven reasons. © 2016 by McGraw-Hill Education. This is […]
978-1259638855 Chapter 10
Chapter 10 – The Agreement: Offer 10-1 CHAPTER 10 THE AGREEMENT: OFFER I. LEARNING OBJECTIVES: This chapter is designed to acquaint students with the first component of the mutual agreement required by contract law: the offer. After reading the chapter […]
978-1259638855 Chapter 11
Chapter 11 – The Agreement: Acceptance 11-1 CHAPTER 11 THE AGREEMENT: ACCEPTANCE I. LEARNING OBJECTIVES: This chapter is intended to familiarize students with the legal issues relating to the second fundamental step in the contracting process: acceptance of an offer […]
978-1259638855 Chapter 12 Part 1
Chapter 12 – Consideration 12-1 CHAPTER 12 CONSIDERATION I. OBJECTIVES This chapter is designed to familiarize students with the concept of consideration, which has been described as “the glue that holds the bargain together” at common law. After reading the […]
978-1259638855 Chapter 12 Part 2
Chapter 12 – Consideration 12-7 b. Discuss the text example of Connor versus Friendly Finance Company to illustrate the application of the general rule to liquidated debt situations. c. Discuss the Computer Corner/Computech text example to illustrate the accord and […]
978-1259638855 Chapter 13
Chapter 13 – Reality of Consent 13-1 CHAPTER 13 REALITY OF CONSENT I. OBJECTIVES This chapter is intended to acquaint students with the circumstances under which an agreement can be avoided because it was not the product of voluntary consent. […]
978-1259638855 Chapter 14
Chapter 14 – Capacity to Contract 14-1 CHAPTER 14 CAPACITY TO CONTRACT I. OBJECTIVES This chapter is designed to familiarize students with the circumstances under which a person may avoid a contract because of lack of capacity. After reading the […]
978-1259638855 Chapter 15
Chapter 15 – Illegality 15-1 CHAPTER 15 ILLEGALITY I. OBJECTIVES: This chapter is designed to teach students about the circumstances under which a contract cannot be enforced because it violates public policy. After reading the chapter and attending class, a […]
978-1259638855 Chapter 16
Chapter 16 – Writing 16-1 CHAPTER 16 WRITING I. OBJECTIVES This chapter is designed to acquaint students with the circumstances under which a contract must be in writing. It is also designed to teach them about the operation of the […]
978-1259638855 Chapter 17
Chapter 17 – Rights of Third Parties 17-1 CHAPTER 17 RIGHTS OF THIRD PARTIES I. OBJECTIVES: This chapter is designed to acquaint students with the circumstances under which third parties’ rights and/or duties under contracts and to teach them the […]
978-1259638855 Chapter 18
Chapter 18 – Performance and Remedies 18-1 CHAPTER 18 PERFORMANCE AND REMEDIES I. OBJECTIVES This chapter is designed to teach students about the legal standards that have been developed to resolve problems that arise after the formation of a contract, […]
978-1259638855 Chapter 19
Chapter 19 – Formation and Terms of Sales Contracts 19-1 CHAPTER 19 FORMATION AND TERMS OF SALES CONTRACTS I. OBJECTIVES: In chapters 8-18, the student studied the common law rules that govern the creation and performance of contracts generally. This […]
978-1259638855 Chapter 2 Part 1
Chapter 02 – The Resolution of Private Disputes 2-1 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 02 THE RESOLUTION OF PRIVATE DISPUTES I. OBJECTIVES: As its […]
978-1259638855 Chapter 2 Part 2
Chapter 02 – The Resolution of Private Disputes 2-7 c. Requests for production of documents and other physical items. Stress that when a proper request is made, a party to litigation may have to produce—from its own files and records—copies […]
978-1259638855 Chapter 20 Part 1
Chapter 20 – Product Liability 20-1 CHAPTER 20 PRODUCT LIABILITY I. OBJECTIVES: This chapter is designed to acquaint students with the main theories of product liability recovery and the various collateral problems those theories present. After finishing with the material […]
978-1259638855 Chapter 20 Part 2
Chapter 20 – Product Liability 20–11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-1259638855 Chapter 21
Chapter 21 – Performance of Sales Contracts 21-1 CHAPTER 21 PERFORMANCE OF SALES CONTRACTS I. OBJECTIVES: This chapter builds on the previous two chapters in which the formation and basic terms of sales contracts, including warranties, are discussed. This chapter […]
978-1259638855 Chapter 22
Chapter 22 – Remedies for Breach of Sales Contracts 22-1 CHAPTER 22 REMEDIES FOR BREACH OF SALES CONTRACTS I. OBJECTIVES: This chapter is intended to acquaint the student with the remedies available to an injured party, the Code rules that […]
978-1259638855 Chapter 24 Part 1
Chapter 24 – Real Property 24-1 CHAPTER 24 REAL PROPERTY I. OBJECTIVES This chapter is designed to teach students about the nature of real property, the basic rights and responsibilities that attend real property ownership, the ways in which interests […]
978-1259638855 Chapter 24 Part 2
Chapter 24 – Real Property 24–10 to emphasize the title assurance method(s) used in your state. h. Discuss the implied warranty of habitability that applies to the sale of residential property by builder-vendors. Explain what “habitability” is. Emphasize that this […]
978-1259638855 Chapter 25
Chapter 25 – Landlord and Tenant 25-1 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-1259638855 Chapter 27 Part 2
Chapter 27 – Insurance Law 27-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-1259638855 Chapter 28
Chapter 28 – Introduction to Credit and Secured Transactions 28-1 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, […]
978-1259638855 Chapter 3 Part 2
Chapter 03 – Business and the Constitution 3-11 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. case.) The Supreme Court thus passed up an opportunity to clarify what […]
978-1259638855 Chapter 3 Part 3
Chapter 03 – Business and the Constitution 3-18 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. h. In Grutter, the Supreme Court held that the University of Michigan’s […]
978-1259638855 Chapter 35 Part 1
Chapter 35 – The Agency Relationship 35-1 CHAPTER 35 THE AGENCY RELATIONSHIP I. OBJECTIVES This chapter acquaints students with the formation of the agency relation, some basic agency concepts, the agent’s duties to the principal, the principal’s duties to the […]
978-1259638855 Chapter 35 Part 2
Chapter 35 – The Agency Relationship 35-7 5. Duty to notify the principal: a. Discuss the basic notification rule stated in the text. Example: P appoints A to sell certain property at a stated price to a specified person, and […]
978-1259638855 Chapter 36 Part 1
Chapter 36 – Third-Party Relations of the Principal and the Agent 36-1 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 36 THIRD-PARTY RELATIONS OF THE PRINCIPAL AND […]
978-1259638855 Chapter 36 Part 2
Chapter 36 – Third-Party Relations of the Principal and the Agent 36-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be […]
978-1259638855 Chapter 37 Part 1
Chapter 37 – Introduction to Forms of Business and Formation of Partnerships 37-1 CHAPTER 37 INTRODUCTION TO FORMS OF BUSINESS AND FORMATION OF PARTNERSHIPS I. OBJECTIVES This chapter serves the function of introducing a student to the forms of business […]
978-1259638855 Chapter 37 Part 2
Chapter 37 – Introduction to Forms of Business and Formation of Partnerships 37-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not […]
978-1259638855 Chapter 38
Chapter 38 – Operation of Partnerships and Related Forms 38-1 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 38 OPERATION OF PARTNERSHIPS AND RELATED FORMS I. OBJECTIVES […]
978-1259638855 Chapter 41
Chapter 41 – History and Nature of Corporations 41-1 CHAPTER 41 HISTORY AND NATURE OF CORPORATIONS I. OBJECTIVES This chapter is intended to introduce students to the nature of corporations. Students should: A. Understand the history of corporation law. B. […]
978-1259638855 Chapter 43 Part 1
Chapter 43 – Management of Corporations 43-1 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 43 MANAGEMENT OF CORPORATIONS I. OBJECTIVES This chapter is intended to acquaint […]
978-1259638855 Chapter 43 Part 2
Chapter 43 – Management of Corporations 43–11 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-1259638855 Chapter 43 Part 3
Chapter 43 – Management of Corporations 43–17 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, […]
978-1259638855 Chapter 44 Part 1
Chapter 44 – Shareholders’ Rights and Liabilities 44-1 CHAPTER 44 SHAREHOLDERS’ RIGHTS AND LIABILITIES I. OBJECTIVES This chapter is intended to inform students of the rights and liabilities of shareholders. After reading the chapter and attending class, a student should: […]
978-1259638855 Chapter 44 Part 2
Chapter 44 – Shareholders’ Rights and Liabilities 44-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, […]
978-1259638855 Chapter 45 Part 2
Chapter 45 – Securities Regulation 45–11 d. Escott v. BarChris Construction Corp. (p. 1202). This is the most important case in the history of Section 11. This case deserves careful treatment in class. We spend almost an entire class period […]
978-1259638855 Chapter 45 Part 3
Chapter 45 – Securities Regulation 45–21 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-1259638855 Chapter 46 Part 1
Chapter 46 – Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals 46-1 CHAPTER 46 LEGAL AND PROFESSIONAL RESPONSIBILITIES OF AUDITORS, CONSULTANTS, AND SECURITIES PROFESSIONALS I. OBJECTIVES The purpose of this chapter is to introduce students to the general […]
978-1259638855 Chapter 46 Part 2
Chapter 46 – Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals 46–10 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may […]
978-1259638855 Chapter 47 Part 1
Chapter 47 – Administrative Law 47-1 CHAPTER 47 ADMINISTRATIVE LAW I. OBJECTIVES: This chapter is designed to teach students about the nature of administrative agencies, their regulatory processes, their importance in the American system of government and to the daily […]
978-1259638855 Chapter 47 Part 2
Chapter 47 – Administrative Law 47-8 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-1259638855 Chapter 48 Part 2
Chapter 48 – The Federal Trade Commission Act and Consumer Protection Laws 48-7 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not […]
978-1259638855 Chapter 49 Part 1
Chapter 49 – Antitrust: The Sherman Act 49-1 CHAPTER 49 ANTITRUST: THE SHERMAN ACT I. OBJECTIVES: This chapter is designed to acquaint students with the sociohistorical origins of the federal antitrust laws, the nature of the current antitrust policy debate, […]
978-1259638855 Chapter 49 Part 2
Chapter 49 – Antitrust: The Sherman Act 49-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, […]
978-1259638855 Chapter 5 Part 1
Chapter 05 – Criminal Law and Procedure 5-1 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 05 CRIMINAL LAW AND PROCEDURE I. OBJECTIVES: This chapter is designed […]
978-1259638855 Chapter 5 Part 2
Chapter 05 – Criminal Law and Procedure 5-11 reach trial. Point out the obvious benefits of such a process to persons charged with crimes. 2. Discuss the various formal constitutional safeguards extended to criminal defendants under the Fourth, Fifth, and […]
978-1259638855 Chapter 5 Part 3
Chapter 05 – Criminal Law and Procedure 5-19 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. punished for breaching the statutory duty to seek out, correct, and prevent […]
978-1259638855 Chapter 50 Part 1
Chapter 50 – The Clayton Act, the Robinson–Patman Act, and Antitrust Exemptions and Immunities 50-1 CHAPTER 50 THE CLAYTON ACT, THE ROBINSON-PATMAN ACT, AND ANTITRUST EXEMPTIONS AND IMMUNITIES I. OBJECTIVES: This chapter is designed to familiarize students with the Clayton […]
978-1259638855 Chapter 50 Part 2
Chapter 50 – The Clayton Act, the Robinson–Patman Act, and Antitrust Exemptions and Immunities 50-9 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document […]
978-1259638855 Chapter 51 Part 1
Chapter 51 – Employment Law 51-1 CHAPTER 51 EMPLOYMENT LAW I. OBJECTIVES This chapter discusses the most important legal topics that deserve to be considered part of employment law. Although the chapter’s scope is broad, its emphasis is selective. That […]
978-1259638855 Chapter 51 Part 2
Chapter 51 – Employment Law 51-9 4. The Age Discrimination in Employment Act a. The ADEA protects people within the protected age group against age discrimination favoring people both within and outside the protected group. In General Dynamics v. Cline, […]
978-1259638855 Chapter 52
Chapter 52 – Environmental Regulation 52-1 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or […]
978-1259638855 Chapter 6 Part 1
Chapter 06 – Intentional Torts 6-1 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. CHAPTER 06 INTENTIONAL TORTS I. OBJECTIVES: This chapter’s examination of intentional torts may be […]
978-1259638855 Chapter 6 Part 2
Chapter 06 – Intentional Torts 6-10 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. through what actual malice is—and isn’t. (Knowledge of falsity or reckless disregard is actual […]
978-1259638855 Chapter 7 Part 2
Chapter 07 – Negligence and Strict Liability 7-9 subcontractor toward a party who was unlikely to pay in any case? Did the court see this as a “that’s life” case where there just isn’t anyone to blame? v. The Stahlecker […]
978-1259638855 Chapter 8 Part 1
Chapter 08 – Intellectual Property and Unfair Competition 8-1 CHAPTER 08 INTELLECTUAL PROPERTY AND UNFAIR COMPETITION I. OBJECTIVES This chapter is designed to acquaint students with the law of intellectual property, certain “commercial” or “competitive” torts, and the law of […]
978-1259638855 Chapter 8 Part 2
Chapter 08 – Intellectual Property and Unfair Competition 8-11 manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. specific. Bouchat (a text case discussed later) is a very good […]
978-1259638855 Chapter 8 Part 3
Chapter 08 – Intellectual Property and Unfair Competition 8-18 © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, […]
978-1259638855 Chapter 9
Chapter 09 – Introduction to Contracts 9-1 CHAPTER 09 INTRODUCTION TO CONTRACTS I. OBJECTIVES: This chapter, and the contracts chapters that follow, are designed to give the student a feel for contract law as an evolving social institution rather than […]
BLAW 15943
Which article of the UCC specifically addresses and governs leases of goods? A. Article 3 B. Article 2 C. Article 2A D. Article 4 Which of the following is true regarding the approach taken by the UCC toward the proper […]
BLAW 19177
Able Co. entered into a contract with Baker Co. for the sale of goods. Both parties are merchants under the UCC and each party used its own form as an offer and acceptance. On the reverse of each form, there […]
BLAW 22784
In order to satisfy the writing requirement of the statute of frauds, both parties must provide the entire agreement in writing. The term for outsiders who attempt to gain control of a corporation is called raiders. TRUE Outsiders who attempt […]
BLAW 24592
The FDCPA requires a collector to give a debtor certain information about the debt: A. within ten days of the collector’s first communication with the debtor. B. within ten days of the debtor receiving the credit amount. C. within five […]
BLAW 24777
The principal’s death automatically terminates an existing agency. In the absence of a decision by the members of an LLC, any member can demand the distribution of profits prior to the dissolution of the LLC. FALSE No member of an […]
BLAW 25869
Which of the following must obtain a National Pollution Discharge Elimination System (NPDES) permit? A. A manufacturing firm buries its hazardous waste materials in a special dump. B. A factory discharges industrial wastewater from a point source into a river. […]
BLAW 26306
Which of the following is true of the Commerce Clause in present times? A. It has become a federal power with an extensive regulatory reach. B. It no longer blocks state regulations that hinder interstate commerce. C. It has been […]
BLAW 40790
In a partnership agreement, partners are not criminally liable when a partner commits a crime in the course and scope of transacting partnership business, even if they knew of the partner’s criminal tendencies and placed him or her in a […]
BLAW 41469
To recover under a property insurance policy, an insurable interest must exist: A. When the policy is purchased: Yes; At the time of loss: Yes B. When the policy is purchased: Yes; At the time of loss: No C. When […]
BLAW 44178
Specific performance is almost never awarded in contracts for the sale of land. The mutual agreement necessary to create an express contract is evidenced by writing. FALSE In an express contract, the parties have directly stated the terms of their […]
BLAW 45489
Which of the following acts is most likely to violate the Telemarketing Sales Rule (TSR)? A. Calling a consumer’s residence at 9:30 P.M. to inform about an exciting prize promotion. B. Soliciting sales through the mailing of a catalog and […]
BLAW 53764
Which section of the UCC defines what a merchant is? A. 2-104(1) B. 2-302 C. 2-305(2) D. 2-306 Which of the following is true of the duty of agents to the principal? A. The duty not to use or disclose […]
BLAW 58058
Sally seeks to list her home with Barry, a real estate broker. Sally and Barry agree that Barry will receive a commission if the home sells within 90 days, regardless of who actually causes the sale of the property. Sally […]
BLAW 66829
Joe Smith has just died. Three months ago, when he knew that his death was impending, Joe established a spendthrift trust for the protection of his 16-year old son Bobby. The trust property consists mainly of $500,000 in investment securities. […]
BLAW 69984
What is the term for a condition that is specified in the contract? A. Express condition B. Implied condition C. Corporate condition D. Bilateral condition Section 7 of the Clayton Act prohibits mergers where evidence indicates that the merger: A. […]
BLAW 78734
The UCC provides for a transfer warranty on unauthorized or repetitive remotely created checks. In determining whether consideration exists, the law is not concerned with any disproportion in value between the things exchanged in a contract. TRUE As long as […]
BLAW 80484
The plaintiff can sue the defendant in whatever court, and in whatever locale that the plaintiff wishes. Under the UCC if a liquidated damage clause in a contract turns out to be non-enforceable then the injured party can sue for […]
BLAW 83689
Which of the following is true about the seller’s right to reclaim goods from an insolvent buyer? A. This right is superior to the rights of a good faith purchaser for value of the goods. B. The seller must make […]
BLAW 89572
Which of the following relieves an employee of the hassle of separately filing charges under Title VII with the EEOC and with the state agency? A. Featherbedding by the EEOC B. Worksharing agreements of the EEOC C. A “right-to-sue” letter […]
BLAW 94560
Which of the following is an option for the secured creditor when the debtor defaults? A. Transfer the collateral on to another creditor. B. Forget the collateral, and sue the debtor on his note or promise to pay. C. Sell […]
BLAW 97201
A check on which one bank is the drawer and another bank is a drawee is a: A. cashier’s check. B. antedated check. C. certified check. D. teller’s check. In an assault case, it is irrelevant: A. whether the threatened […]
BUS LAW 18605
A famous journalist predicted the result of an NBA match between the LA Groves and LA Phantoms in favor of the Phantoms, based on the present form of Groves. Accordingly, Mark placed a huge bet on the Phantoms and lost […]
BUS LAW 22686
Chicago School theorists argue that antitrust policy’s primary thrust should feature: A. prointraindustry competition efforts. B. proregulation efforts. C. anticoncentration efforts. D. anticonspiracy efforts. The traditional objective of the business corporation has been to: A. act in a socially and […]
BUS LAW 35683
Who amongst the following is an “expert” under Section 11 of the Securities Act of 1933? A. A consultant who is an independent director of a company making a public distribution of securities. B. An auditor who issues an opinion […]
BUS LAW 38232
Able borrowed $10,000 from Baker, promising to return it with $1,000 interest on January 1, 2006. There is no dispute that Able owes Baker $11,000 due on January 1, 2006. On that day, Able gave Baker a valid check in […]
BUS LAW 42800
In order to satisfy the statute of frauds, the parties’ writing must be: A. signed by both parties. B. in legalese. C. signed by the “party to be charged.” In which of the following cases will a drawer and any […]
BUS LAW 49594
Which of the following legal provisions treats a corporation as a person? A. Corporation law B. The law of contract C. The Constitution of the United States D. The law of torts To give notice of a dissociation that is […]
BUS LAW 53935
Unless established differently in the Articles of Incorporation, a quorum for a shareholders meeting is a simple majority. The principal’s ratification of a contract can be implied from his conduct, even if the principal says nothing to ratify. TRUE Implied […]
BUS LAW 55538
Which of the following best represents an agent’s duty of segregation? A. The agent not dealing with the principal’s property so that it appears to be the agent’s. B. The agent should not profit or receive any other benefit from […]
BUS LAW 58914
A typed or rubber stamped signature is sufficient if it is put on the instrument to validate it. Michael and William contracted for Michael to mow William’s lawn once a week for 20 weeks, at a price of $20 per […]
BUS LAW 67661
Which of the following instruments defines an order directed to a certain person, namely a bank, to pay money from a person’s account to a third person? A. Check B. Promissory note C. Certificate of deposit D. Draft Sean made […]
BUS LAW 70219
Any contract that is deemed illegal is also a criminal violation. Generally, professional shareholders are personally liable for the obligations of the professional corporation. FALSE While professional shareholders have no personal liability for the obligations of the professional corporation, such […]
BUS LAW 80854
A buyer in the ordinary course of business is: A. subject to the security interest created by his seller. B. free from the security interest created by the secured party. C. free from the security interest created by his seller. […]
BUS LAW 89827
Strong Corp. and Marginal, Inc. are competitors. Strong plans to acquire ownership of Marginal. Which of the following, if true, would help bolster a conclusion that the acquisition is lawful under Clayton Act Section 7? A. That the industry in […]
BUS LAW 92301
Pulse Corp. maintained a warehouse where it stored its manufactured goods. Pulse received an order from Star. Shortly after Pulse identified the goods to be shipped to Star and before moving them to the loading dock, a fire destroyed the […]
Business Law 10730
Agency is a two-party relationship in which the agent is authorized to act on behalf of the principal. The doctrine of stare decisis states that like cases should be decided alike. TRUE The standard for choosing and applying prior cases […]
Business Law 16976
The Statute of Limitation provision of the UCC holds that for contracts for the sale of goods (in the absence of contractual agreement to the contrary) the period of time within which a lawsuit must be commenced is: A. one […]
Business Law 19183
Eleanor Rigby is an employee of Strawberry Fields Music, Inc., a firm that specializes in the preparation of original music for possible use by advertisers in TV and radio commercials. In January 2000, Rigby wrote a song that is protected […]
Business Law 33690
The Code determines negotiability at _____, so that indorsements do not affect the underlying negotiability of the instrument. A. precompliance B. abeyance C. issuance D. disaffirmance With an insurance contract who typically is the party that makes the offer? A. […]
Business Law 35089
An unsecured credit transaction involves the greatest benefit to the creditor. If an agent has authorized his subagent to make a certain contract and this authorization is within the authority granted to the agent by his principal, the principal is […]
Business Law 44708
A majority of the members of an LLC must agree for a plan to merger. If a buyer treats goods shipped to him/her as though he owns them then the UCC considers the buyer to have accepted the goods. TRUE […]
Business Law 54062
Which of the following forms of business always imposes double taxation on the earnings of the business? A. A corporation B. A limited liability company C. A limited liability partnership D. A sole proprietorship Sharon and Martha are general partners […]
Business Law 60201
Transfer of corporate assets to shareholders for less than fair market value is called “looting.” The First Amendment prohibits state regulation of deceptive commercial advertising. FALSE There is no First Amendment obstacle to federal or state regulation of deceptive commercial […]
Business Law 60686
During the early period of American history the state governments issued special charters that created corporations. Corporations are generally liable on preincorporation contracts signed by their promoters. FALSE A promoter remains liable on a preincorporation contract even after the corporation’s […]
Business Law 61913
Which of the following doctrines often proves helpful to plaintiffs who bring a product liability lawsuit alleging negligence? A. Res judicata B. Res ipsa loquitur C. Caveat venditor D. Caveat emptor In the absence of a specific provision in a […]
Business Law 66798
When a court says that an agreement is illegal, it most likely means that the agreement: A. has not mentioned a time period for which the agreement is valid. B. does not identify the parties involved in the agreement. C. […]
Business Law 67807
A(n) _____ occurs when the landlord or the tenant transfers all of her remaining rights under the lease to another person. A. tenancy B. lease C. sublease D. assignment You wish to download free software from the Internet. The download […]
Business Law 69765
A testator’s children would be called his issue. The Private Securities Litigation Reform Act of 1995 requires an auditor to: A. report to the Securities and Exchange Commission a client’s illegal act that has a material impact on the financial […]
Business Law 95630
John is a partner of Aegon Services, a limited liability partnership firm. He committed fraud and embezzled $1 million from a client. The other partners would not be personally liable for John’s malpractice. Utilitarianism is based on the laissez faire […]
Business Law 98809
Sarah is 75 years old. She has a serious illness, but she does not want to be kept alive by extraordinary medical technology. Specifically, she does not want to be kept alive by a respirator. Which of the following should […]
LGST 10420
Under the principle of “Respondeat Superior,” an employer is not liable for torts committed by employees. Kathy writes a check on her checking account with a bank. Kathy is the payee here. FALSE A draft has three parties to it: […]
LGST 10458
What is the term for a dissociation that violates the partnership agreement? A. Wrongful dissociation B. Breach dissociation C. Fraud dissociation D. Agent dissociation David entered into a contract to sell Ruth a parcel of land fully aware that Ruth’s […]
LGST 12987
Mr. Green purchases a treadmill from Mr. Brown. Mr. Green tells Mr. Brown that he is purchasing the treadmill to jog and sprint. The treadmill that Mr. Green purchases does not allow for speeds faster than walking. Mr. Green should […]
LGST 21790
Mei issues purchase order to June for goods which costs $25,000. June agrees to provide the same but she doesn’t sign the purchase order. Mei can file a suit for the breach of contract. Real property includes land but does […]
LGST 22538
A & K Inc. obtains a charging order against Bob, a partner in Foter and Poter Partnership. Such an act will cause the partnership to dissociate. An individual can sue a former employer for OSHA violations that the individual witnessed. […]
LGST 23056
S agrees to sell B 10,000 widgets at a price of $1.00 per widget. After B breaches the contract, S resells the widgets for $1.10 per widget in a public sale. S also saved $200 in shipping costs. What amount […]
LGST 24853
A remedy limitation is more likely to be declared unconscionable in consumer cases involving personal injury. Josh acquires beneficiary rights under a contract between Sunny and James. Any modification to that contract which discharges Josh of his rights under the […]
LGST 26299
The typical dissolution of a corporation requires approval of the: A. board of directors. B. creditors of the company. C. merger company. D. shareholders. If Jay signs Mila’s name to a negotiable instrument without Mila’s authorization or approval: A. the […]
LGST 34069
Article 2 of the UCC mandates that the parties to a sales contract state in specific and unambiguous language the exact terms of the contract. Otherwise, courts will declare the contract unenforceable. Wire transfer is used for transfer of funds […]
LGST 37517
The common law held that landlords: A. did not have the right to evict tenants for nonpayment of rent. B. needed to make necessary repairs of their leased premises. C. were responsible for the injuries caused to tenant due to […]
LGST 42279
A personal representative of an estate would breach fiduciary duties if the personal representative: A. combined personal funds with funds of the estate so that both could purchase treasury bills. B. represented the estate in a lawsuit brought against it […]
LGST 49170
Fred Sweet runs dancing classes for middle-aged and elderly people. Some of Fred’s customers lack physical coordination, and injuries from kicks, falls, etc. are common. Fred naturally fears that injured customers will sue him for negligence. Thus, he makes each […]
LGST 53304
International law regulates lease terms in the United States. The Local Government Antitrust Act of 1984 eliminates damage actions against municipalities and their officers, agents, and employees for antitrust violations and makes injunctive relief the sole remedy in such cases. […]
LGST 54434
A general partner in a limited partnership believes wrongly that an LLLP has been created. In such a case, which of the following will apply? A. He will be considered a limited partner of the limited partnership. B. He will […]
LGST 60172
When both the bank and the customer failed to use ordinary care to prevent alteration or forgery of checks then a comparative negligence is used to determine liability for damages. The Securities and Exchange Commission (SEC) is an example of […]
LGST 62687
The Sherman Act states that corporations convicted of violating it may be fined as much as: A. $50 million per violation B. $100 million per violation C. $200 million per violation D. $150 million per violation Ann wants to download […]
LGST 63618
A surety has a right of exoneration. Straight voting permits a single holder of more than 30 percent of the shares of a corporation to dominate the management of the corporation. FALSE Straight voting permits a holder of more than […]
LGST 69003
Mr. Blue is driving to work and gets into an accident. Since he was on his way to work Mr. Blue will be able to recover damages through his state’s Workers Compensation system. Sometimes, Article 2 of the UCC holds […]
LGST 76262
Under the common law, artisans, innkeepers, and common carriers were not entitled to liens. A principal is liable on a contract made by his agent if the agent had actual authority to make the contract. TRUE The principal in an […]
LGST 77463
Selena pays back a $2,000 loan from her parents within one year before she files the bankruptcy petition. This is an example of: A. anticipatory breach. B. a secured transaction. C. preferential payment. D. a failure of consideration. Which of […]
LGST 95155
There is/are no _____ for violating the provisions of the Clayton Act. A. injunctive relief B. treble damages C. cease-and-desist orders D. criminal penalties In a “mixed” contract for the sale of both goods and services, the court will apply […]
LGST 97660
Ratification has to be expressly made only in written form. An instrument can be made payable to two or more payees. TRUE An instrument can be made payable to two or more payees. The general rule on the duration of […]