Archives

1 Appendix A for Unit One Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix B for Unit Two Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

225 Appendix C for Unit Three Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix D for Unit Four Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix E for Unit Five Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix F for Unit Six Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix G for Unit Seven Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix H for Unit Eight Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Appendix I for Unit Nine Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

Chapter 1 Law and Legal Reasoning N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Appendix J for Unit Ten Questions on the Features N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Chapter 10 Criminal Law and Cyber Crime N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 11 Nature and Terminology N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 12 Agreement in Traditional and E-Contracts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 13 Consideration N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. […]

1 Chapter 14 Capacity and Legality N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 15 Mistakes, Fraud, and Voluntary Consent N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

Chapter 16 The Writing Requirement and Electronic Records 1 ANSWER: T PAGE: 306 TYPE: N N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + […]

1 Chapter 17 Third Party Rights N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 18 Performance and Discharge in Traditional and E-Contracts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Chapter 19 Breach of Contract and Remedies N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 2 Courts and Alternative Dispute Resolution N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 20 The Formation of Sales and Lease Contracts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Chapter 21 Title, Risk, and Insurable Interest N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 22 Performance and Breach of Sales and Lease Contracts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from […]

1 Chapter 23 Warranties N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. […]

Chapter 24 International Law in a Global Economy 1 ANSWER: F PAGE: 456 TYPE: N BUSPROG: Analytic AICPA: BB-Legal N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of […]

1 Chapter 25 The Function and Creation of Negotiable Instruments N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the […]

1 Chapter 26 Transferability and Holder in Due Course N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous […]

1 Chapter 27 Liability, Defenses, and Discharge N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 28 Banking in the Digital Age N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 29 Creditors’ Rights and Remedies N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 3 Court Procedures N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 Chapter 30 Secured Transactions N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 Chapter 31 Bankruptcy Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 Chapter 32 Agency Formation and Duties N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 33 Agency Liability and Termination N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 34 Employment, Immigration, and Labor Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

Chapter 35 Employment Discrimination and Diversity 1 ANSWER: F PAGE: 682 TYPE: N N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question […]

1 Chapter 36 Sole Proprietorships and Franchises N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 37 Partnerships and Limited Liability Partnerships N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 38 Other Organizational Forms for Small Businesses N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous […]

1 Chapter 39 Corporate Formation and Financing N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 4 Business and the Constitution N.B.: indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 40 Corporate Directors, Officers, and Shareholders N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

Chapter 41 Mergers and Takeovers 1 ANSWER: T PAGE: 802 TYPE: N BUSPROG: Analytic AICPA: BB-Legal N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. […]

1 Chapter 42 Securities Law and Corporate Governance N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 43 Administrative Agencies N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 Chapter 44 Consumer Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 1 Chapter 45 Environmental Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 46 Antitrust Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 Chapter 47 Professional Liability and Accountability N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 48 Personal Property and Bailments N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of […]

1 Chapter 49 Real Property and Landlord-Tenant Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 5 Business Ethics N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test […]

1 Chapter 50 Insurance N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. […]

1 Chapter 51 Wills and Trusts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 6 Torts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. […]

1 Chapter 7 Strict Liability and Product Liability N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition […]

1 Chapter 8 Intellectual Property Rights N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the […]

1 Chapter 9 Internet Law, Social Media, and Privacy N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous […]

1) Some countries provide insurance for their citizens’ investments abroad. 2) Clothing is a “necessary.” Answer: T 3) The Consumer Product Safety Commission conducts research on the safety of individual consumer products and maintains a clearinghouse on the risks associated […]

1) The law imposes strict liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products. 2) A contract with an unlicensed person is […]

1) Urban Commerce, Inc., issues bonds, which are also known as a.cumulative investments. b.fixed-income securities. c.equity securities. d.preferred stock. 2) Animal Feed Corporation and Beneficial Trucking, Inc., enter into a contract for Beneficial to transport a truckload of hay for […]

1) No contract can prohibit delegation of the duties of the contract. 2) Attempted monopolization is a violation of antitrust law. Answer: T 3) Major credit reporting agencies must provide consumers with free copies of their own credit reports every […]

1) In a Chapter 13 case, after the debtor has completed all payments, the court grants a discharge of all debts provided for by the repayment plan. 2) An innocent party does not need to suffer an injury to collect […]

1) In 2005, Recreation & Relaxation Corporation began making and selling all-terrain vehicles (ATVs) under the mark “R&R.” Ten years later, recoveryandrehabilitation.com, Inc., a different company selling medical equipment and supplies, begins to use “R&R” as part of its URL […]

1) Under the UCC, a contract for a sale of goods that does not include the quantity will not fail for indefiniteness. 2) The contract term “free on board” indicates that the selling price of goods includes transportation costs to […]

1) Corporate accountability can be increased by imposing strict disclosure requirements and harsh penalties for securities laws. 2) The sanctions imposed on criminal wrongdoers are the same as those applied in civil cases. Answer: F 3) Market power is the […]

1) A joint stock company is generally treated as a partnership. 2) The UCC applies only to the extent that it has been adopted a state. Answer: T 3) How property is taxed and what is required to transfer or […]

1) A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land. 2) An injured party may sue a business polluter in tort under […]

1) Private parties can sue violators of Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 for rescission of a contract to buy securities. 2) To be effective, a gift causa mortis must meet only two […]

1) Melanie files an employment discrimination suit against Natural Resources Industries Corporation under the Civil Rights Act of 1964 on a disparate-impact theory. To succeed, Melanie must show that members of a protected class are adversely affected by any of […]

1) Preemptive rights permit a director to veto, or “preempt,” any proposal that the shareholders have voted to approve or disapprove. 2) The courts, in interpreting statutory law, often rely on the common law as a guide to what the […]

1) In Fuel Injection Products & Service Corporation’s suit against Gears & Cylinders, Inc., the jury returns a verdict in Fuel Injection’s favor. Gears & Cylinders files a motion asking the judge to set aside the verdict and begin new […]

1) When the risk of loss for goods passes from a seller to a buyer is generally determined by the contract between the parties. 2) No federal court has held that digitally sampling a copyrighted sound recording of any length […]

1) Securities offerings in unlimited amounts can be exempt from the registration requirements in certain circumstances. 2) Any agreement that restricts output among competitors is a per se violation of Section 1 of the Sherman Act. Answer: T 3) The […]

1) The theft of trade secrets is a civil wrong but not a crime. 2) In most states, a director cannot be removed without cause unless the shareholders have reserved the right to do so at the time of election. […]

1) Efron borrows money to pay his tuition and signs a note payable to First Citizens Bank. The bank assigns the note to Guaranty Bank. The assignment a.does not affect Efron’s obligation to pay the note as promised. b.frees Efron […]

1) Mainstay, Inc., sponsors NowUCMe, a social-networking, video- and photo-sharing site. To use NowUCMe, Mainstay requires users to accept terms of service associated with the site. By clicking on “accept,” users enter into a contract a.after thirty days. b.as soon […]

1) Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in a.all states. b.no states. c.one state. d.some states. […]

1) To borrow money to finance the start-up of his business, Rollo executes an instrument in favor of Security Bank. For the instrument to be negotiable, the signature must be a.anywhere on the instrument. b.anywhere on the lower half of […]

1) In most states, statutes require leases for terms exceeding one year to be in writing, and state or local law often dictates permissible lease terms. 2) Most states do not permit the corporate articles or bylaws to authorize compensation […]

1) Phoenix, a salesperson for Quality Fruit, Inc., shows Robert, a buyer for Sweet Home Fruit Company, samples of peaches, stating that any shipment will match the samples. This statement is a.an express warranty. b.an implied warranty. c.a warranty of […]

1) A federal administrative agency must alert small businesses-through advertising in trade journals, for example-about forthcoming regulations. 2) The term fiduciary is at the heart of agency law. Answer: T 3) Counterfeit goods copy or otherwise imitate trademarked goods, and […]

1) The verdict in a summary jury trial is not binding. 2) A broker is not an agent of the insurance company or the applicant. Answer: F 3) Directors cannot use corporate funds or confidential corporate information for personal advantage. […]

1) Refined Grains, Inc., is a Kansas-based firm that does business throughout the world. Refined Grains manages retail and wholesale operations, buys and sells commercial venues, undeveloped land, and agricultural products, and other goods. Refined Grains has had to deal […]

1) Common carriers can contract away their liability for damaged goods. 2) Under the principle of rights theory, one person’s principles are as “right” as another’s. Answer: F 3) More than two hundred years ago, the Declaration of Independence recognized […]

1) Some states require that a franchisor submit advertising aimed at prospective franchisees to the state for approval. 2) On a debtor’s default, he perfection of a security interest will not always protect a secured party against other third parties […]

1) A bailee must exercise reasonable care in preserving the bailed property. 2) Either the security agreement or the financing statement – but not both – must describe the collateral in which the secured party has a security interest. Answer: […]

1) For an employer to successfully defend against a charge of a supervisor’s sexual harassment, the plaintiff-employee must have taken a tangible employment action against the supervisor. 2) On a partner’s dissociation, the partner’s duty of loyalty ends. Answer: T […]

1) InfoFree Inc., makes and sells devices and services for the circumvention of encryption software and other technological antipiracy protection. Under the Digital Millennium Copyright Act, this is a.a violation of copyright law. b.prohibited but not a violation of copyright […]

1) When a corporation earns profits, it must pass them on to shareholders in the form of dividends. 2) Credit can be denied solely on the basis of race. Answer: F 3) Generally, a corporation that purchases the assets of […]

1) Property consists of the legally protected rights and interest of a person in anything with an ascertainable value that is subject to ownership. 2) The results of a consolidation are the same as those of merger. Answer: F 3) […]

1) Any lawsuit against the business or its employees does not lead to unlimited personal liability for the owner of a sole proprietorship. 2) To restrict or encourage exports, Congress can set quotas on various items, such as grain being […]

1) Lewis makes a note payable to Maxi Finance Corporation. Maxi Finance indorses the back of the note and negotiates it to Notes & Drafts Investments, Inc. Primarily liable on the note is a.none of the choices. b.Maxi Finance. c.Notes […]

1) Implied conditions are not understood to be part of an agreement but are found in the express language of the agreement. 2) An agent’s authority to act on behalf of a principal must be apparent to be real. Answer: […]

1) In a manufacturing arrangement, a franchisor transmits to a franchisee the essential ingredients or formula to make a particular product. 2) If a bank wrongfully dishonors a cashier’s check, a holder can recover only the amount of the check. […]

1) A contract that has been fully performed by the parties is called an executory contract. 2) A security agreement need not be in writing if the collateral is transferred to the secured party. Answer: T 3) Vesting gives an […]

1) The U.S. Constitution reserves to the federal government all powers not granted to the states. 2) An insurance company may require an applicant to give the company permission to access the applicant’s private medical records and credit ratings, for […]

1) It is a violation of federal law to sell a pesticide or herbicide that has a chemical strength different from the concentration declared on the label. 2) International treaties never stipulate arbitration for resolving disputes. Answer: F 3) Most […]

1) Gerald files a petition in bankruptcy. An automatic stay will apply to actions by creditors seeking to collect Gerald’s debts comprised of a.alimony. b.child-support. c.none of the choices. d.car payments. 2) Megan reaches into Ned’s pocket and takes his […]

1) A foreign corporation normally does not need a certificate of authority to sell goods or services via the Internet or by mail. 2) Someone who finds abandoned property acquires title to it and that title is good against the […]

1) Fact Pattern 13-B1 Quik Downtown Delivery contracts with Rico’s Tacos to deliver its products. Both parties change their minds, however, and inform each other that they would like to cancel the contract. Refer to Fact Pattern 13-B1. The next […]

1) Ren© operates The Spicy Chocolatier Caf© chain of restaurants. “The Spicy Chocolatier Caf©” is a.a certification mark. b.none of the choices. c.a service mark. d.a trade name. 2) Open Pit Excavation Inc. operates a rock quarry next to Robyn€s […]

1) Sally is the secured party in a transaction with Lilly, who is the debtor. Sally files a financing statement with the appropriate state official. The financing statement must contain a.Lilly’s signature. b.Sally’s bank account information. c.Lilly’s credit report. d.a […]

1) The distribution of promotions and other job benefits according to a seniority system is not normally a good defense to a suit for employment discrimination. 2) Goods associated with real estate often fall within the scope of Article 2 […]

1) Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen agrees to buy “Garth’s ATV” for $750. Garth believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is […]

1) Securities generally do not include any documents evidencing corporate ownership or debt. 2) There are age requirements for the witnesses who attest to a will. Answer: F 3) Procedural law consists of all laws that outline the methods of […]

1) Courts are not obligated to follow precedents. 2) The most common way to acquire personal property is to produce it. Answer: F 3) A buyer’s failure to cover will bar him or her from using any other remedies available […]

1) An accountant is always liable for a misleading statement that affects the price of a security, even if the accountant acted in good faith. 2) A concentrated industry is one in which either a single firm or a small […]

1) Given today’s global communications network, most companies can assume that their actions in other nations will go unnoticed. 2) Any federal, state, or local affirmative action program that uses racial or ethnic classifications as the basis for making decisions […]

1) Savers Mart, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate a.any commercial activity in the United States. b.only activities that are in intrastate commerce. c.only activities that are in […]

1) A financing statement is an agreement that creates or provides for a security interest. 2) Insurance companies must spend at least 85 percent of all premium dollars from large employers on benefits and quality improvements. Answer: T 3) A […]

1) The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships. 2) Whenever a work-related injury or disease occurs, employers must make reports directly to the Occupational Safety and Health […]

1) Hillside Vineyards is a family limited liability partnership. All of the partners must be a.natural persons only. b.natural persons or persons acting as fiduciaries for natural persons. c.persons acting as fiduciaries for natural persons only. d.related. 2) The Occupational […]

1) The federal criminal code lists more than four thousand criminal offenses, all of which require a specific mental state. 2) In the context of Section 16(b) of the Securities Exchange Act of 1934, insiders include officers, directors, and large […]

1) Gold & Sweet Company bottles and sells maple syrup from its plant in Vermont. On the labels is a logo that states “100% Genuine New England Maple Syrup Certified by the Northeast Maple Syrup Harvesters Association.” This logo is […]

1) Laws and government regulations affect almost all business activities. 2) Under a life insurance policy, in the absence of contractual exclusion, any cause of death is one of the insurer’s risks. Answer: T 3) When one party breaches a […]

1) If no children or grandchildren survive a decedent who dies without a will, a surviving spouse receives the entire estate. 2) Fungible goods are goods that are different naturally, by agreement, or by trade usage. Answer: F 3) In […]

1) For property insurance, the insurable interest must exist when a policy is purchased. 2) Normally, a corporate board of directors appoints itself as the first board at the time the corporation is created. Answer: F 3) Constructive delivery occurs […]

1) A failure to follow generally accepted accounting principles and generally accepted auditing standards is proof of a lack of due diligence. 2) Professionals are governed by the contracts they enter into with their clients. Answer: T 3) The Equal […]

1) A security interest is enforceable only if the collateral is in the creditor’s possession. 2) Bonds represent the borrowing of funds by firms. Answer: T 3) Chi-Lan files a petition in bankruptcy for relief through an individual’s repayment plan. […]

1) Dental Clinic obtains an insurance policy that protects its members against negligence claims by their patients. This is a.casualty insurance. b.employer’s liability insurance. c.malpractice insurance. d.workers’ compensation insurance. 2) Discount Retail Corporation ‘s social media policy directs its employees […]

1) Beck is an accountant who prepares her clients€ tax returns. Cole is not an accountant, but he also prepares tax returns for clients. Under the Internal Revenue Code, liability for preparing a false return may be imposed on a.Beck […]

1) Limited personal liability obviates the need to obtain for insurance for significant business liability risks. 2) A merger involves the legal combination of two or more corporations, after which both continue to exist. Answer: F 3) A forged signature […]

1) Orsais a shareholder inPickles& PreservesCorporation. In some states, Orsamay be liable to the firm’s creditors for unpaid corporate debts if she a.accepts a dividend knowing that it was paid from retained earnings. b.receives shares issued by the firmfor less […]

1) A corporation’s creditors want to be notified when the firm is dissolved so that they can make a tender offer. 2) If a franchisee is induced to enter into a franchise contract by the franchisor’s fraudulent misrepresentation, the franchisor […]

1) Comprehensive general liability insurance can encompass as many risks as the insurer agrees to cover. 2) Traditionally, a professional owed a duty only to those with whom the professional had a direct contractual relationship. Answer: T 3) The franchise […]

1) The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether information omitted or misrepresented in connection with the purchase or sale of a security is material. 2) A principal […]

1) An executor is a personal representative named in a will. 2) In most bailments, the bailee can retain the goods given by the bailor and return equivalent property. Answer: F 3) Under the doctrine of comparative negligence, only the […]

1) The rights and remedies of secured parties are not cumulative – if a creditor is unsuccessful in enforcing rights by one method, he or she cannot pursue another method. 2) A seller is prohibited from charging different prices to […]

1) When a person dies without a valid will, and no heirs exist, the state will assume ownership of the property. 2) When a franchise agreement contains a notice-and-cure provision, a franchisee’s breach of the duty of honesty and fidelity […]

1) The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state. 2) A public authority, such as a state€s attorney general, can sue to stop a ‘public′ nuisance. Answer: T 3) A business […]

1) The party against whom a lawsuit is brought is the plaintiff or petitioner. 2) Most states do not allow automobile repair shops to hold a customer’s car when the customer refuses to pay for repairs already completed. Answer: F […]

1) Under the Sarbanes-Oxley Act of 2002, chief financial officers must certify the accuracy of information in corporate financial statements and reports that are filed with the Securities and Exchange Commission. 2) When deciding which form of business organization to […]

1) Delaney is an accountant charged with negligence by Estimation & Valuation Services Inc., a client. Delaney may successfully defend against the claim if he can show that a.scienter was lacking. b.he complied with all International Financial Reporting Standards. c.the […]

1) A party seeking to recover in quasi contract must show that he or she acted as a volunteer in conferring a benefit on another party. 2) An accountant is not required to discover every impropriety, defalcation, and fraud in […]

1) A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages. 2) In a phishing attack, a perpetrator “fishes” for financial data and passwords from consumers by posing as a legitimate […]

1) Under the Anti-Counterfeiting Trade Agreement, member nations are required to establish border measures that allow officials to search commercial shipments of imports and exports for counterfeit goods. 2) A quitclaim deed offers the most protection against defects in the […]