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978-1285428222 Chapter 1 Lecture Note
CHAPTER 1 TODAY’S BUSINESS ENVIRONMENT: LAW AND ETHICS Managers face an increasingly complicated world. Law is a part of the environment and it grows ever more complex as it impacts on parts of business that saw little regulatory interference in […]
978-1285428222 Chapter 10 Lecture Note Part 1
CHAPTER 10 CONTRACTS Basic to the law of contracts is the principle that business has the freedom to enter into and create nearly any contract. Freedom of contract a requisite for progress, but limits are imposed by contract law. CONTRACT […]
978-1285428222 Chapter 10 Lecture Note Part 2
Minors—At common law, the general rule is that a minor may enter into contracts, but those contracts are voidable at the option of the minor (right to disaffirm). There are some contracts that minors may not disaffirm. Enlistment contracts and […]
978-1285428222 Chapter 10 Lecture Note Part 3
Add. Case: Pardoe & Graham Real Estate v. Schulz Home (Sup. Ct., Va., 2000)–Pardoe, a real estate broker, sued Schulz, a home builder, claiming he owed Pardoe a commission on the sale of a custom home in the LM subdivision. […]
978-1285428222 Chapter 10 Lecture Note Part 4
Decision: Reversed. Giesler’s failure to know what the RFP specifications meant was not excusable, so there could be no rescission, as would be the case if the government knew of the seller’s mistake. To bid on such a contract not […]
978-1285428222 Chapter 11 Lecture Note Part 1
CHAPTER 11 DOMESTIC AND INTERNATIONAL SALES INTRODUCTION TO THE UCC—The UCC is state law and is based on a “model” statute. History of Commercial Law—Commercial codes, formal and informal, developed around the world over the centuries to govern trade relations. […]
978-1285428222 Chapter 11 Lecture Note Part 2
Decision: Reversed. Under UCC 2-207, additional terms become part of a contract unless Questions: 1. The forum selection clause was held to be a material change to the original offer so was not binding. How could Array have made the […]
978-1285428222 Chapter 11 Lecture Note Part 3
Add. Info.: Open Payment Term—If the parties do not specify terms of payment, it is due in full at the time and place where the buyer receives the goods. 2-310(a) If unspecified, payment can be made in any manner used […]
978-1285428222 Chapter 11 Lecture Note Part 4
Add. Info: Identifying Goods for Resale or Salvage—If a buyer breaches while goods are still with the seller, the seller may identify the goods conforming to the contract if not identified previously. After identifying, the seller has two options: 1. […]
978-1285428222 Chapter 12 Lecture Note Part 1
CHAPTER 12 BUSINESS ORGANIZATIONS Forms of business organization used most frequently are sole proprietorships, partnerships, limited partnerships, limited liability companies, and corporations. Less frequently used are joint ventures, cooperatives, and syndicates. Business organizations are governed largely by state laws. Statistically, […]
978-1285428222 Chapter 12 Lecture Note Part 2
Decision: Affirmed. The board of directors legally controls the basic actions of a company. The courts rarely interfere with their judgments. Wrigley did not install lights because he was Managers—The board of directors hires managers to operate the corporation on […]
978-1285428222 Chapter 12 Lecture Note Part 3
The FTC Franchise Rule—It requires the franchisor to give prospective franchisees a detailed disclosure at least 10 days before the buyer is legally committed to a purchase. The document must include: – Names, addresses, and telephone numbers of other franchisees […]
978-1285428222 Chapter 13 Lecture Note Part 1
CHAPTER 13 NEGOTIABLE INSTRUMENTS, CREDIT, AND BANKRUPTCY NEGOTIABLE INSTRUMENTS—Negotiable instruments allow for the creation and transfer of rights to the payment of money. The Federal Reserve now processes 100 billion checks a year —an important negotiable instrument. By comparison, in […]
978-1285428222 Chapter 13 Lecture Note Part 2
Decision: Reversed. Century’s failure to file a lien did not release Glacier from its guaranty. “if collateral is provided, the creditor cannot diminish or sacrifice it and then demand that a guarantor meet its obligations to the creditor….While impairment of […]
978-1285428222 Chapter 13 Lecture Note Part 3
Decision: Affirmed. The first three liens total more than the value of the property, hence, there was no security to cover any of the lien held by Farm. Therefore, it was not a secured debt. As an Add. Case: SallieMae […]
978-1285428222 Chapter 14 Lecture Note Part 1
CHAPTER 14 AGENCY AND THE EMPLOYMENT RELATIONSHIP AGENCY RELATIONSHIPS—An agency involves use of an agent for representation in establishing relations between a principal and third parties. An agency relationship is created whenever a person or company—the agent—agrees to act on […]
978-1285428222 Chapter 14 Lecture Note Part 2
Add. Case: Harts v. Farmers Ins. Exchange (Sup. Ct., Mich., 1999)–Harts bought auto insurance through an agent who sold insurance exclusively for Farmers Ins. The policy did not include optional uninsured motorist coverage. Harts suffered losses when hit by an […]
978-1285428222 Chapter 14 Lecture Note Part 3
Employer-Independent Contractor—This is a commonly used relationship, based in agency law, where the independent contractor contracts with another to perform certain services. The contractor is not under the direct supervision of the employer as an employee would be and the […]
978-1285428222 Chapter 14 Lecture Note Part 4
Add. Case: Larson v. Wasemiller (Sup. Ct., Minn., 2007)–Larson had surgery at a hospital in Minnesota. Due to complications, she had to have a second surgery by the same surgeons. That was not successful and she needed more surgery. She […]
978-1285428222 Chapter 15 Lecture Note Part 1
CHAPTER 15 EMPLOYMENT AND LABOR REGULATIONS PUBLIC POLICY LIMITS TO AT-WILL EMPLOYMENT—Most employees work under the common law rule of employment-at-will and are not represented by a union. This rule specifies that employers may fire employees for any reason and […]
978-1285428222 Chapter 15 Lecture Note Part 2
Workers and Toxic Substances—Besides issuing safety standards, OSHA has issued several health standards. These standards are more controversial because compliance is very expensive. They attempt to limit worker exposure to certain harmful substances, such as asbestos and vinyl chloride. The […]
978-1285428222 Chapter 15 Lecture Note Part 3
Vesting Requirements—Participants in retirement plans must, by law, receive some benefits after a reasonable length of employment. These plans must be adequately funded and must be insured against possible failure. All full-time employees over 25 years of age, with more […]
978-1285428222 Chapter 15 Lecture Note Part 4
Add. Case: Auciello Iron Works v. NLRB (S. Ct., 1996)–Auciello and its employees’ union came to a collective-bargaining agreement. After the agreement was announced, Auciello disavowed it because of its “good-faith doubt” that a majority of its employees no longer […]
978-1285428222 Chapter 16 Lecture Note Part 1
CHAPTER 16 EMPLOYMENT DISCRIMINATION ORIGINS OF DISCRIMINATION LAW—Discrimination on the basis of race, national origin, sex, religion, or other distinguishing personal characteristic has led to some groups being disadvantaged in the employment market. This may be seen in unemployment rates, […]
978-1285428222 Chapter 16 Lecture Note Part 2
Add. Case: Reeves v. Sanderson Plumbing Products (S.Ct., 2000)–Reeves, 57, was fired from a supervisory position. He contended it was age discrimination as his supervisor made hostile remarks about his age and the rationale given for his dismissal was largely […]
978-1285428222 Chapter 16 Lecture Note Part 3
Note: The courts uphold valid seniority programs, even if the effect is to institutionalize past discrimination. One case involved the Memphis fire fighters, where the Court held that even when providing affirmative action for African-Americans the seniority rights of the […]
978-1285428222 Chapter 16 Lecture Note Part 4
Add. Case: Karraker v. Rent-A-Center (7th Cir., 2005)–The Karraker brothers worked for Rent-A-Center (RAC). To be eligible for promotion, employees were required to take the APT Management Trainee-Executive Profile, a set of nine tests designed to measure math, language skills, […]
978-1285428222 Chapter 17 Lecture Note Part 1
CHAPTER 17 THE REGULATORY PROCESS ADMINISTRATIVE AGENCIES—Administrative agencies have become a fundamental part of modern government. Creating an Administrative Agency—An administrative agency is defined as an authority of the government (other than a court or a legislature) created to administer […]
978-1285428222 Chapter 17 Lecture Note Part 2
because the plaintiffs lacked standing (they had suffered no “injury in fact”). Merely having a grievance with an agency’s policy is not the same as showing a concrete injury resulting from the policy. Add. Info: In Clarke v. Securities Industry […]
978-1285428222 Chapter 18 Lecture Note Part 1
CHAPTER 18 SECURITIES REGULATION THE ELEMENTS OF SECURITIES—Corporate finance occurs mostly by the sale of securities. An efficiently operating securities market is essential to the well-being of the economy. Most pension funds are invested in the securities markets. Corporate Finance—Securities […]
978-1285428222 Chapter 18 Lecture Note Part 2
SEC Action—The SEC may seek remedial actions against an issuer in violation of the law (i.e., it may compel the issuer to correct misleading information) or it may ask the Department of Justice to pursue criminal actions against the alleged […]
978-1285428222 Chapter 18 Lecture Note Part 3
Add. Case: Jones v. Harris Assoc. (7th Cir., 2009)–Harris Associates advises the Oakmark mutual funds. Plaintiffs, who own shares of Oakmark, contend that the fees paid by Oakmark to Harris are too high and thereby violate the Investment Company Act […]
978-1285428222 Chapter 19 Lecture Note Part 1
CHAPTER 19 CONSUMER PROTECTION THE FDA: FOOD AND DRUG REGULATION—The Food and Drug Administration monitors food and drug safety; its budget is about $4 billion. The FDA approves new drugs for sale, inspects food products for safety, and studies medical […]
978-1285428222 Chapter 19 Lecture Note Part 2
Telebrands employed the same strategy in marketing a wide variety of products, so the FTC 2. Suppose some doctor endorses such a product. Is that enough to substantiate claims about the benefits of the product? Usually not. Some doctor can […]
978-1285428222 Chapter 19 Lecture Note Part 3
Add. Case: Ori v. Fifth Third Bank (E.D. Wisc., 2009)–Ori sued Fifth Third Bank and Fiserv for violations of the FCRA. Fifth hired Fiserv to process information about mortgages. Through Fiserv, Fifth provided information to consumer reporting agencies, which would […]
978-1285428222 Chapter 2 Lecture Note Part 1
CHAPTER 2 THE COURT SYSTEMS THE COURT SYSTEMS—The federal court system was created by the Constitution, which specifies Supreme Court and “inferior Courts” Congress chooses to establish. The three level court system has existed for many years. Judges in the […]
978-1285428222 Chapter 2 Lecture Note Part 2
Add. Info: International Service—The Hague Convention sets out specific procedures for service of process. For example: Article 2-6: Through the country’s central authority Article 8: Through Diplomatic channels Article 19: By any means acceptable in the country where service is […]
978-1285428222 Chapter 20 Lecture Note Part 1
CHAPTER 20 ANTITRUST LAW THE ANTITRUST STATUTES—Three broadly-written federal statutes aimed at preventing such anti-competitive behavior as monopolization, price discrimination, tie-in sales, and other restraints of trade. The statutes are the Sherman Antitrust Act (1890), the Clayton Act (1914), and […]
978-1285428222 Chapter 20 Lecture Note Part 2
Add. Case: South Austin Coalition Community Council v. SBC Communications (7th Cir., 2001)–SBC and Ameritech, two Baby Bells, merged after receiving approval from the FCC and state regulators. Justice did not oppose the merger. A consumer group sought to enjoin […]
978-1285428222 Chapter 20 Lecture Note Part 3
Exchanges of Information—This area is concerned with trading and sharing of information by businesses. At times, such trading may lead to anti-competitive behavior and present problems under the antitrust laws. Information Sharing—Inter-business exchanges of information that do not injure consumers […]
978-1285428222 Chapter 20 Lecture Note Part 4
Add. Case: Thompson Everett v. Natl. Cable Advertising (4th Cir., 1995)–Thompson Everett (TE) claimed it was illegally denied access to cable TV companies and the chance to earn commissions from the sale of cable air time for spot advertising because […]
978-1285428222 Chapter 21 Lecture Note Part 1
CHAPTER 21 ENVIRONMENTAL LAW ENVIRONMENTAL REGULATION—During the 1960s the public became increasingly concerned with the environment. Pressure was placed on the federal government to enact legislation to protect and enhance the quality of the environment. In 1970 Congress created the […]
978-1285428222 Chapter 21 Lecture Note Part 2
Add. Info: Control of volatile organic compounds (VOCs) is leading to controls on many industries not much affected before. Commercial bakeries, mixing flour, water, yeast and heat produce ethanol, a VOC that contributes to the ozone problem. E.g., Emissions from […]
978-1285428222 Chapter 21 Lecture Note Part 3
Add. Case: Burlington Northern and Santa Fe Railway v. U.S. (Sup. Ct., 2009)–In 1960, B&B, an agricultural chemical distributor, began operations on a piece of land owned by the company in Arvin, California. It later expanded operations onto an adjacent […]
978-1285428222 Chapter 22 Lecture Note Part 1
CHAPTER 22 THE INTERNATIONAL LEGAL ENVIRONMENT OF BUSINESS INTERNATIONAL LAW AND BUSINESS—The percent of U.S. gross national product involved in direct international trade has tripled in recent decades. Virtually every business, whether oriented towards domestic or international markets, is now […]
978-1285428222 Chapter 22 Lecture Note Part 2
Penalty Provisions. The EAA provides criminal, civil, and administrative penalties. A person who fiknowingly” violates the Act can be fined up to $50,000 or five times the value of the exports and get up to 5 years in prison. A […]
978-1285428222 Chapter 22 Lecture Note Part 3
Decision: The court held it had jurisdiction. The relationship began in Mexico, but continued for nine years. In-Bond and Hase, although in Mexico, used equipment supplied by and owned by the Harper. They ran the Mexican plant for Harper under […]
978-1285428222 Chapter 23 Lecture Note Part 1
“Check Your Answer” to the End-of-Chapter Case Questions Chapter 1: Today’s Business Environment: Law and Ethics Answers to Select Case Questions 2. The general rule that exists now is that since the government has ordered the posting of warning labels […]
978-1285428222 Chapter 23 Lecture Note Part 2
Chapter 11: Domestic and International Sales Answers to Select Case Questions 3. Marquette was not in good faith; Norcem was correct and could refuse to buy. “The contract between the parties specifically states that the parties were to negotiate the […]
978-1285428222 Chapter 24 Lecture Note
Part 1: Pulling It Together 1. Jurisdiction and Constitutional Law The court in California does not have jurisdiction the Supreme Court held. “There is no evidence that Asahi designed its product in anticipation of sales in California…. On the basis […]
978-1285428222 Chapter 25 Lecture Note
Part 2: Pulling It Together 1. Since Mayes is from Indiana, there is diversity, so suit was filed in federal district court in TMT sued for trademark infringement—using the TMT name without paying royalties and in violation of the franchise […]
978-1285428222 Chapter 26 Lecture Note
Part 4: Pulling It Together 1. Reversed in part. This is not a typical wrongful termination suit. Morrison was also a shareholder and director of the close corporation. There is a fiduciary duty between the parties. Absent a clear business […]
978-1285428222 Chapter 3 Lecture Note Part 1
CHAPTER 3 TRIALS AND RESOLVING DISPUTES BASIC TRIAL PROCEDURES—A dispute resolved through the court system may proceed through these basic stages: pleadings, discovery, pretrial, trial, appellate, and enforcement. It is an adversary system with a relatively neutral judge compared to […]
978-1285428222 Chapter 3 Lecture Note Part 2
Equitable Remedies—This form of relief originated in England from a different court system that was able to provide relief not available in the common-law, called Curia Regis, court system. These remedies have been taken over by the courts of law, […]
978-1285428222 Chapter 4 Lecture Note Part 1
CHAPTER 4 THE CONSTITUTION: FOCUS ON APPLICATION TO BUSINESS The Constitution was drafted in 1787 and became effective upon ratification by 9 of the 13 states in 1789. Its seven articles provide the framework for the structure of the federal […]
978-1285428222 Chapter 4 Lecture Note Part 2
Add. Info—Taxes: The S. Ct. looks for consistency in taxes to insure that the states are not trying to engage in some discriminatory scheme. In U.S. v. California the Court upheld a state tax on materials passed on to the […]
978-1285428222 Chapter 4 Lecture Note Part 3
OTHER KEY PARTS OF THE BILL OF RIGHTS—Of all the other amendments to the Constitution, only a few come up with any degree of regularity in cases concerning business. None were written thinking of business; these are simply applications that […]
978-1285428222 Chapter 5 Lecture Note Part 1
CHAPTER 5 CRIMINAL LAW AND BUSINESS CRIME—May be a positive or negative act that violates a penal law—an offense against a state or the federal government. A breach of duties one owes to the community as defined by the legislature. […]
978-1285428222 Chapter 5 Lecture Note Part 2
workplace that can be monitored by managers, even when managers are away, are used increasingly. Computer programs can signal when unusual transactions occur or if the level of activity at a cash register is usually high or low, which can […]
978-1285428222 Chapter 6 Lecture Note Part 1
CHAPTER 6 ELEMENTS OF TORTS Torts are one part of the common law that affect business. Tort law changes more than other parts of the common law; increased tort liability over time as values and ideas about liability evolve. This […]
978-1285428222 Chapter 6 Lecture Note Part 2
2. Would you suppose Fuerschbach continued to work for Southwest? One would presume she had the good sense to resign when she sued everyone in the place, Add. Case: Nelson v. Carroll (Ct. App., MD, 1999)–Carroll went to a bar […]
978-1285428222 Chapter 6 Lecture Note Part 3
Issue Spotter: Say Good Things About a Good Employee? If company policy is no letters (other than to verify periods of employment), then do not violate company policy by writing a letter even if favorable. If company policy is unclear, […]
978-1285428222 Chapter 7 Lecture Note Part 1
CHAPTER 7 BUSINESS TORTS AND PRODUCT LIABILITY TORT LAW AND BUSINESS—While businesses can be involved in all forms of torts, there are some that are peculiar to business, usually involving business practices that have crossed the bounds of acceptable behavior. […]
978-1285428222 Chapter 7 Lecture Note Part 2
Strict Liability Based on Express Warranty. Liability based on representations made by a producer about its product; such express statements are a part of the contract. In Baxter v. Ford Motor, Baxter’s new 1930 Model A Ford was advertised as […]
978-1285428222 Chapter 7 Lecture Note Part 3
Add. Case: Santiago v. Sherwin-Williams (1st Cir., 1993)–Santiago sued several paint makers, claiming their production of lead pigment for use in lead paint caused her injury from exposure as a child. She was born in 1972 and raised in a […]
978-1285428222 Chapter 8 Lecture Note Part 1
CHAPTER 8 REAL AND PERSONAL PROPERTY REAL PROPERTY—Real property is land, things under land such as oil and minerals, and things attached to land, such as buildings and natural vegetation. Personal property consists of tangible items that can be moved, […]
978-1285428222 Chapter 8 Lecture Note Part 2
Decision: Reversed. The original tenant on the lease was liable to the landlord for attorney fees and costs incurred in evicting the subtenants. The lease clearly stated that the lessee would Add. Case: Johnson v. Marcel (Sup. Ct., Va., 1996)–Johnson […]
978-1285428222 Chapter 8 Lecture Note Part 3
Add. Disc.: Public nuisances are generally determined by statute and local ordinance, such as noise ordinances. Public attorney, such as AG or county attorney, brings action for public nuisance based on statute or common law, to protect rights held in […]
978-1285428222 Chapter 9 Lecture Note Part 1
CHAPTER 9 INTELLECTUAL PROPERTY Property has traditionally focused on real property—physical things that can be seen and touched —but increasingly intellectual property, which is often intangible, is the most important asset of many firms and of most persons. In the […]
978-1285428222 Chapter 9 Lecture Note Part 2
Questions: 1. Did plaintiff’s case fail due to a technicality of registering with the Copyright Office? Essentially yes. Having documents that indicated that the companies had recorded the songs was 2. How do radio stations pay the copyright holders given […]
Business & Finance Chapter 1 Functions The Legal System blooms Analysis 30 The Shift
Multiple Choice 1. Which area of law is most likely to impact directly the finance and accounting departments of a company? a. products liability b. employment discrimination c. credit regulation d. environmental law e. all of these are likely to […]
Business & Finance Chapter 1 Law, as we know it today, was first developed in the middle ages
True / False 1. Law, as we know it today, was first developed in the middle ages. a. True b. False 2. Law may be viewed as a collection of rules or principles intended to prescribe and control human behavior. […]
Business & Finance Chapter 1 Sets forth rules governing the legal relationships among members
178. sets forth rules governing the legal relationships among members of society and is enforced mostly through the state court systems. a. criminal law b. bankruptcy law c. environmental law d. public law e. private law 179. sets forth rules […]
Business & Finance Chapter 1 The President may not create any law without the permission of Congress
49. The President may not create any law without the permission of Congress. a. True b. False 50. Presidents have no legal influence over administrative agencies. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States […]
Business & Finance Chapter 1 The U.S. Constitution created these branches of the federal
61. Statutory law is: a. the separation of powers at the federal level b. also known as the fundamental law of the nation c. a form of common law d. a law enacted by a legislative body e. all of […]
Business & Finance Chapter 1 When judges use decisions from earlier legal cases for guidance
121. When judges use decisions from earlier legal cases for guidance in legal principles to solve current cases it is referred to as: a. common law b. precedent c. procedural law d. statutory procedure e. legal culture 122. When judges […]
Business & Finance Chapter 10 A voidable contract is a contract that one party has the right to avoid
66. In Hinson v. N&W Construction Co., where N&W relied on a plumbing bid by Hinson in making a bid on a construction contract that was later awarded, the court held that N&W could rely on the bid based on […]
Business & Finance Chapter 10 An agreement means there is a mutual understanding between
61. In contract law, an agreement means there is a mutual understanding between the parties as to the substance of the contract. This agreement between the parties is legally reached through: a. negotiation and deliberation b. communication of conditions c. […]
Business & Finance Chapter 10 Bart was supposed to deliver 100,000 firecrackers to Lisa
332. Bart was supposed to deliver 100,000 firecrackers to Lisa by June 1, but his factory explodes in April so suspends operations. The contract: a. has suffered a novation b. has incurred a rescission c. has incurred the failure of […]
Business & Finance Chapter 10 Courts that have adopted the notion of impracticability make it
161. Courts that have adopted the notion of impracticability make it much easier for parties to get out of contractual obligation than under courts that only use the doctrine of impossibility. a. True b. False 162. Injunctions are the most […]
Business & Finance Chapter 10 For a contract to be valid, its subject matter must be lawful
224. A minor is someone who: a. is under the legal age of majority b. is over the legal age of majority c. is old enough to drive d. is old enough to vote e. does not earn any taxable […]
Business & Finance Chapter 10 If the values of the items exchanged in a contract are unequal
177. If the values of the items exchanged in a contract are unequal courts generally: a. hold that the contract is not binding b. require the parties to rewrite the contract c. require the offeree to add something to the […]
Business & Finance Chapter 10 Precision Failed Make The Initial Payment Needed
121. Termination of an offer by operation of law does not occur: a. if a law is passed making the subject of the offer illegal b. by death or insanity of the offeror c. if the subject matter of the […]
Business & Finance Chapter 10 The evolved in commerce over the centuries.
Multiple Choice 1. The evolved in commerce over the centuries. a. law of contracts b. law of commerce c. law of trade d. law of documents e. law of freedom 2. The evolved in commerce over the centuries. a. law […]
Business & Finance Chapter 10 The parol evidence rule prohibits the introduction of oral
277. The parol evidence rule prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the terms of a written contract. Parol evidence may be introduced when: a. it will explain the written instrument […]
Business & Finance Chapter 10 The Restatement of Contracts is an authoritative source that presents
True / False 1. The Restatement of Contracts is an authoritative source that presents and summarizes the common law of contracts. a. True b. False 2. Contract law is primarily state common law. a. True b. False ANSWER: True POINTS: […]
Business & Finance Chapter 10 When the party who breaches a contract has behaved maliciously
366. When the party who breaches a contract has behaved maliciously and committed a tort, the court may want to discourage such behavior in the future by imposing what damages besides regular damages? a. compensatory b. expectancy c. liquidated d. […]
Business & Finance Chapter 10 Where the buyer of a trailer court said he was promised
128. In Deschamps v. Treasure State Trailer Court, where the buyer of a trailer court said he was promised the water system was in good condition when in fact it was not, the Montana Supreme Court held that the parol […]
Business & Finance Chapter 11 A buyer who receives goods that are nonconforming may reject them as
164. Under UCC Article 2, the buyer has an obligation to: a. accept conforming goods b. pay for the goods according to the contract c. keep the goods for at least 3 months d. both a and b are correct […]
Business & Finance Chapter 11 If a good has been stolen and is then sold to an unsuspecting
60. If a good has been stolen and is then sold to an unsuspecting buyer: a. the good title passes to the buyer whether or not he knows the good was stolen b. the good title passes to the buyer […]
Business & Finance Chapter 11 If the parties to a contract failed to include a critical term
61. Under the UCC, parol evidence may be admitted to clarify customary trade practices. a. True b. False 62. With respect to parol evidence, the common law of contracts and Article 2 are the same. a. True b. False ANSWER: […]
Business & Finance Chapter 11 Incidental damages include all reasonable costs or expenses
101. In Lee v. R&K Marine, where Lee bought a new boat from R&K that fell apart in three years, the court held the seller had properly disclaimed all warranties, so was not liable for the problem. a. True b. […]
Business & Finance Chapter 11 Rules governing trading among merchants developed called the law merchant
253. In QVC v. MJC America, where QVC sued for breach of contract after electric heaters delivered by MJC were shown to have defects, the trial court held that: a. MJC was liable to QVC for a number of kinds […]
Business & Finance Chapter 11 The court needs to resolve a term that is not clearly
108. Under the UCC, oral testimony: a. may contradict written documents b. may never be used c. may be used if the goods are not worth more than $10,000 d. may be used to explain trade dealings e. may be […]
Business & Finance Chapter 11 The was adopted by the United Nations to have a commercial code
218. In Lee v. R&K Marine, where a boat that Lee bought became unusable after only three years when it fell apart, and the seller had expressly disclaimed all warranties, the court held: a. Lee had no case because all […]
Business & Finance Chapter 11 This created a significant legal challenge for managers because
Multiple Choice 1. of the Uniform Commercial Code governs the law of commercial sales. a. Article 1 b. Article 2 c. Article 3 d. Article 4 e. Article 5 2. of the Uniform Commercial Code governs the law of commercial […]
Business & Finance Chapter 11 Modern commercial law traces its roots to ancient rules known
True / False 1. In medieval Europe, rules governing trading among merchants developed called the law merchant. a. True b. False 2. Modern commercial law traces its roots to ancient rules known as the law merchant. a. True b. False […]
Business & Finance Chapter 12 A board of directors’ fiduciary duty of loyalty requires that
174. Directors are under a to conduct themselves on behalf of the corporation as a reasonably prudent person in the conduct of personal business affairs. a. duty of reasonability b. duty of profit c. duty of management d. duty of […]
Business & Finance Chapter 12 Ais an association of two or more persons to carry on a business as co-owners
Multiple Choice 1. There are businesses in the United States. a. over 30 million b. under 20 million c. over 50 million d. less than 500,000 e. too many 2. The majority of businesses in the United States are: a. […]
Business & Finance Chapter 12 Corporations may sue and be sued in the name of the business itself
66. Corporations may sue and be sued in the name of the business itself. a. True b. False 67. Corporations are legal entities that are due all of the same constitutional protections due to real persons. a. True b. False […]
Business & Finance Chapter 12 The Franchise Rule requires that the offering circular is given to prospective
267. Before franchises may be sold, the parent company must: a. register with the SEC under the 1933 Securities Act b. register with the SEC under the Investment Company Act c. register with the CFTC Franchise Offering Rule of 1990 […]
Business & Finance Chapter 12 The name and address of the corporation’s registered agent
117. The name and address of a corporation, the name and address of the corporation’s registered agent, and the purpose of the business are all examples of things that are generally included in: a. the articles of incorporation b. the […]
Business & Finance Chapter 12 The owners of a limited liability company are called members
118. The owners of a limited liability company are called members. a. True b. False 119. The owners of limited liability companies are called shareholders. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – […]
Business & Finance Chapter 12 The sole proprietorship is the most common business organization in the U.S
True / False 1. The majority of businesses are corporations. a. True b. False 2. State laws, not federal, concern the forms of business organization. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – […]
Business & Finance Chapter 12 Which form of business incurs double taxation
227. Which form of business incurs double taxation: a. limited partnerships b. LLCs c. corporations d. proprietorships e. general partnerships 228. Which form of business incurs double taxation: a. limited partnerships b. LLCs c. proprietorships d. none of the other […]
Business & Finance Chapter 12 Which of the following could lead to the dissolution of a partnership
59. The of partnership affairs involves completing any unfinished business and then collecting and distributing the partnership’s assets. a. winding down b. resetting c. winding up d. terminating e. dissolution 60. In general, if a partnership agreement does not specify […]
Business & Finance Chapter 13 Ais issued by the clerk of the court and directs the sheriff
282. A is issued by the clerk of the court and directs the sheriff to seize and sell any of the debtor’s nonexempt real or personal property within the court’s jurisdiction. a. writ of judgment b. writ of attachment c. […]
Business & Finance Chapter 13 If a creditor is successful in a legal action against a debtor
118. A mechanic’s lien applies only to “mechanical” work, such as car repairs or plumbing work on a house. a. True b. False 119. A mechanic‘s lien is also called an artisan‘s lien. a. True b. False ANSWER: False POINTS: […]
Business & Finance Chapter 13 If a debtor cannot meet credit obligations it is said
229. If a debtor cannot meet credit obligations it is said: a. to relapse b. to expire c. to default d. to attach e. to perfect its claim 230. If a debtor cannot meet credit obligations it is said: a. […]
Business & Finance Chapter 13 Negotiable instruments are a part of the commercial law through
Multiple Choice 1. Every year, creditors have to absorb in unpaid debt: a. about $100 million b. about $5 billion c. over $20 billion d. less than $5 million e. about $20 million 2. Every year, creditors have to absorb […]
Business & Finance Chapter 13 Negotiable instruments are important to business because
True / False 1. Negotiable instruments are important to business because they allow for the orderly creation and transfer of rights to the payment of money. a. True b. False 2. Negotiable instruments began many years ago as a written […]
Business & Finance Chapter 13 Open accounts usually require full payment within a fixed
66. Open accounts usually require full payment within a fixed time period. a. True b. False 67. Consumer credit accounts are often installment accounts. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – BUSPROG: […]
Business & Finance Chapter 13 The one who issues or creates the document that requests payment
57. To be found a holder in due course, a transferee must: a. be in possession of an instrument in the form of either a draft or a check (but not a note) made out “to bearer ” b. have […]
Business & Finance Chapter 13 The primary distinction in secured credit transaction is whether the property
172. If a debtor is insolvent, the unsecured creditor: a. can only collect half the bill b. can only collect three quarters of the bill c. cannot collect the bill d. can collect the bill, plus interest e. can collect […]
Business & Finance Chapter 13 When a draft guarantees payment for goods in international trade
112. When a draft guarantees payment for goods in international trade, the draft is called a: a. bill of trade b. bill of exchange c. bill of sale d. payment of exchange e. balloon note 113. When a draft guarantees […]
Business & Finance Chapter 13 Which of the following debts are not extinguished
331. The final stage of bankruptcy is known as: a. disruption in bankruptcy b. removal in bankruptcy c. distancing of the debtor d. divorce from the proceedings e. none of the other choices 332. Bankruptcy discharge is: a. illegal b. […]
Business & Finance Chapter 14 2 You tell The Neighbor Not Into The House
60. You post a notice at school that you will sell your laptop computer for $600. A buyer comes by your room to look at it while you are gone and your roommate sells it for $500, thinking you would […]
Business & Finance Chapter 14 Agency relationships used to be common in decades past
True / False 1. Agency relationships used to be common in decades past, but in recent years they have fallen out of favor. a. True b. False 2. The agency relationship is a key part to most business operations. a. […]
Business & Finance Chapter 14 An employment of an agent for the purpose of representation
Multiple Choice 1. An employment of an agent for the purpose of representation in establishing relations between a principal and third parties is known as a(n): a. third party relationship b. principal relationship c. agency relationship d. real relationship e. […]
Business & Finance Chapter 14 Thelma has made it clear to Lyle that she does not
114. Lyle is Thelma’s agent. Thelma has made it clear to Lyle that she does not want him to sign the contracts that he negotiates; she retains that power. If, despite Thelma’s instructions, Lyle negotiates and signs a contract with […]
Business & Finance Chapter 14 Where Gritton’s real estate agent cheated
169. Terry hires an agent, Janet, to sell a piece of property for no less than $50,000 with Janet to receive a 6% commission upon sale. Which of the following is Janet legally permitted to do without Terry‘s consent? a. […]
Business & Finance Chapter 14 Which of the following is a common problem with employee handbooks
257. Which of the following is a common problem with employee handbooks: a. listing specific offenses for which people may be fired can create the impression those are the only offenses that matter b. failing to change the handbook to […]
Business & Finance Chapter 14 Which of the four general factors which bear upon whether a master
219. In France v. Southern Equipment Co., where France, after falling off a roof, sued Southern Equipment Co. who had employed Quality Metal Roof, a company that contracted with France’s employer, Royalty Builders, to build them a new metal roof […]
Business & Finance Chapter 14 You Would Expect The Court Held That
65. In Bearden v. Wardley Corp., where real estate agent Gritton cheated Bearden on a house deal, the court held that his employer, Wardley, was not liable because it had no way to know of his actions. a. True b. […]
Business & Finance Chapter 15 Although employers may refuse to allow an OSHA inspector
104. Although employers may refuse to allow an OSHA inspector in without a warrant: a. this is rarely done in practice because it is likely to put the inspector in a bad mood b. this is often done to annoy […]
Business & Finance Chapter 15 An unfair labor practice case is decided by the National Labor
268. An unfair labor practice case is decided by the National Labor Relations Board. If one of the parties to the case is unhappy with the decision or refuses to comply with the order, the appeal will go to: a. […]
Business & Finance Chapter 15 Employment-at-will means that, unless a contract holds otherwise
True / False 1. Employment-at–will means that, unless a contract holds otherwise, employers are free to fire workers at any time for any reason and employees are free to quit their jobs at any time for any reason. a. True […]
Business & Finance Chapter 15 Mandatory vesting under ERISA means that an employee
209. Mandatory vesting under ERISA means that an employee: a. must retire at a company-appointed time b. must retire at the first sign of major illness c. may not receive benefits unless he has worked for no other employer during […]
Business & Finance Chapter 15 The Family and Medical Leave Act does not apply
154. The Family and Medical Leave Act does not apply to: a. key employees b. small employers with less than 50 employees c. new employees d. all of the other specific choices e. none of the other choices 155. For […]
Business & Finance Chapter 15 The illegal use of union funds for the personal benefit of union leaders
125. Featherbedding, the illegal use of union funds for the personal benefit of union leaders, is outlawed by the Landrum- Griffin Act. a. True b. False 126. The Landrum-Griffin Act provides for federal regulation of internal union affairs. a. True […]
Business & Finance Chapter 15 Under the hazard communication standard, an employer with toxic
63. Under the hazard communication standard, an employer with toxic and explosive chemicals on the premises must have an ambulance available within five minutes. a. True b. False 64. Under the hazard communication standard, an employer must place all toxic […]
Business & Finance Chapter 15 Unions and employers who negotiate contracts have a duty
321. Unions and employers who negotiate contracts have a duty to bargain in good faith. This means both sides must do all of the following except: a. come to a final agreement b. must be willing to make proposals c. […]
Business & Finance Chapter 15 Which of the following are public-policy exceptions recognized by
Multiple Choice 1. Employment-at–will: a. allows employees to quit their jobs for any reason at any time b. allows employers to discharge employees for any reason at any time subject to contract obligations c. has been restricted by the courts […]
Business & Finance Chapter 15 Which of the following is not a requirement of the Drug-Free Workplace Act
48. About one in working–age people have, at some point, a substance-abuse problem. a. two b. three c. eight d. twenty e. twenty-five 49. Abused substances such as cocaine and alcohol: a. are all illegal b. may be illegal or […]
Business & Finance Chapter 16 Administrative agencies may issue subpoenas to obtain business
111. You would expect that an employer would not be liable for employment discrimination for having neutral work rules, such as educational requirements, that accidentally have adverse impact on certain groups. a. True b. False 112. In general, employers may […]
Business & Finance Chapter 16 Charles owns a club whose patrons are mostly African-American
210. Charles owns a club whose patrons are mostly African-American. He hires only African-Americans to serve drinks and food. Li (Asian-American) applies to work. He is qualified but is turned down. If Charles were to argue that the reason he […]
Business & Finance Chapter 16 She Told John Keep Away from Her Laughed
290. Which of the following questions would not violate the Americans with Disability Act to ask of a job applicant: a. how many sick days did you use last year? b. does stress at work ever bother you? c. are […]
Business & Finance Chapter 16 The Age Discrimination in Employment Act
112. Under the Age Discrimination in Employment Act employers: a. are not prohibited from cutting the health care benefits of employees over the age of 65 b. are prohibited from discriminating in employment against persons only over age 65 c. […]
Business & Finance Chapter 16 The Age Discrimination in Employment Act prohibits discrimination
63. The Age Discrimination in Employment Act prohibits discrimination in employment against individuals over the age of 50. a. True b. False 64. The Age Discrimination in Employment Act provides weaker protections and remedies for people discriminated against in employment […]
Business & Finance Chapter 16 The Americans with Disabilities Act applies to employers with
264. The Americans with Disabilities Act applies to employers with: a. fifteen or more employees b. twenty or more employees c. twenty–five or more employees d. fifty or more employees e. all employers, regardless of the size of their workforce […]
Business & Finance Chapter 16 The common law permits employers to hire and fire
True / False 1. The common law permits employers to hire and fire, within contractual limits, at-will. a. True b. False 2. Under the common law employers were generally free to discriminate as they wished. a. True b. False ANSWER: […]
Business & Finance Chapter 16 The Equal Pay Act allows differences in wages between men and women
Multiple Choice 1. Historically, the common law permitted employers to: a. hire workers only with government approval b. fire workers only with government approval c. hire and fire which ever workers they wished d. fire workers for reasons listed in […]
Business & Finance Chapter 16 To not violate Title VII’s prohibition of discrimination
60. Fred and Vinny work at Leo’s Used Car Lot. Fred dislikes Vinny, makes insults about Vinny‘s Iranian heritage, and treats him badly. Leo has heard the insults but does not reprimand Fred because Leo thinks Fred is right. Leo’s […]
Business & Finance Chapter 16 Which of the following could be used as evidence in a discrimination
165. Which of the following could be used as evidence in a discrimination trial that the employer’s rationale was just pretext for disparate treatment: a. inconsistency in decision made by the employer b. giving different reasons at different times for […]
Business & Finance Chapter 17 Administrative laws with the same force of law as statutes enacted
114. Administrative agencies may issue subpoenas to obtain business documents that agencies need for law enforcement. Subpoenas may: a. only be issued when there is good cause to believe that a violation of the law has occurred b. be used […]
Business & Finance Chapter 17 Agencies may seek injunctions to stop a person or business from engaging
59. In addition to civil and criminal penalties, agencies may seek injunctions to stop a person or business from engaging in behavior that violates a particular statute. a. True b. False 60. If necessary, a federal agency would be allowed […]
Business & Finance Chapter 17 Federal Register so There Chance For The Public
True / False 1. Congress established the Interstate Commerce Commission as the first federal agency to regulate railroads. a. True b. False 2. The first federal administrative agency was the Federal Trade Commission. a. True b. False ANSWER: False POINTS: […]
Business & Finance Chapter 17 The primary tool for local, state, and federal governments use to
60. Substantive (legislative) rules issued by agencies are: a. statements that provide the agency staff and public with guidance regarding what the agency believes a certain statute or regulation means b. administrative statutes with the same force and effect of […]
Business & Finance Chapter 17 The procedural requirement of have power to hear the case
170. The procedural requirement of have power to hear the case. a. exhaustion b. reviewability c. standing d. ripeness requires that the complaining party may seek judicial review only in courts that e. none of the other choices are correct […]
Business & Finance Chapter 17 When a court reviews the way an agency interprets a statute
208. When a court reviews the way an agency interprets a statute, it will use which scope of judicial review: a. the lowest scope possible b. strict scrutiny compared to review of procedural requirements c. an arbitrary and capricious standard […]
Business & Finance Chapter 17 You would expect that an employer would not be liable
Multiple Choice 1. The primary tool for local, state, and federal governments use to perform regulatory functions is the: a. administrative agency b. regulatory agency c. real agency d. courts e. police force 2. According to the Supreme Court, what […]
Business & Finance Chapter 18 A security is a written instrument that provides evidence of a debt
True / False 1. A security is a written instrument that provides evidence of a debt or equity ownership. a. True b. False 2. The sale of securities is the primary source of corporate finance. a. True b. False ANSWER: […]
Business & Finance Chapter 18 Although securities sold under a private placement exemption
119. Although securities sold under a private placement exemption are exempt from registration, the law requires that investors be given a , which is similar to a prospectus. a. private–placement memorandum b. semi-prospectus c. non-registration prospectus d. casual prospectus e. […]
Business & Finance Chapter 18 Ginsburg was CEO of a company that merged with another company
223. In SEC v. Ginsburg, Ginsburg was CEO of a company that merged with another company, and he told his relatives that the merger might occur. Knowing that the stock price might then rise, the relatives bought stock in the […]
Business & Finance Chapter 18 Misleading information that would reasonably affect investment
176. Under securities law, misleading information that would reasonably affect investment decisions by securities owners includes: a. overly optimistic statements by executives b. cautious speculation by shareholders about future profits c. commentary from an unbiased stock analyst d. a newspaper […]
Business & Finance Chapter 18 Reviewing various SEC suits against those charged with insider trading
113. The Supreme Court, reviewing various SEC suits against those charged with insider trading, has held that all trading based on non-public information is illegal. a. True b. False 114. SEC Rule 10b-5 is used to bring charges of insider […]
Business & Finance Chapter 18 The financial future of most people is tied to securities because
Multiple Choice 1. Securities are important because: a. they are the financial backbone of the U.S. economy b. business operations rely on securities for financing operations c. they are the major form of investment for pension funds d. all of […]
Business & Finance Chapter 18 Under Rule 144A some U.S. and foreign securities are exempt from
62. Under Rule 144A some U.S. and foreign securities are exempt from registration requirements for the sale of stocks and bonds. a. True b. False 63. Accredited investors often buy private placement securities through Small Corporate Offering Registration (SCORs), which […]
Business & Finance Chapter 18 Which class of securities is (are) exempt from the federal
60. Which class of securities is (are) exempt from the federal securities laws? a. issues by governments b. issues by corporations with assets under $1 million c. issues by corporations with over $1 billion in assets d. all of the […]
Business & Finance Chapter 18 Which of the following is NOT a securities professional
260. Which of the following is NOT a securities professional: a. a broker b. a dealer c. an adviser d. a scalper e. none of the other specific choices are correct 261. Which of the following is NOT a securities […]
Business & Finance Chapter 19 FTC the FTC sued a company selling an electronic muscle simulation
169. In Telebrands v. FTC the FTC sued a company selling an electronic muscle simulation abdominal belt, which the FTC claimed did nothing, but the good looking models in the ads implied that people using the product would become slim. […]
Business & Finance Chapter 19 If you lose the bank card you use to withdraw cash from your
315. If you lose the bank card you use to withdraw cash from your bank by machine, and you report it to the bank within two days, you are liable for how much in losses? a. $0 b. $500 c. […]
Business & Finance Chapter 19 In Federal Trade Commission v. John Beck Amazing Profits
65. In Federal Trade Commission v. John Beck Amazing Profits, where Beck was sued by the FTC for deception in the sale of his “wealth creation” products, the court held that Beck’s operation provided false materials but there was no […]
Business & Finance Chapter 19 The 1906 Pure Food and Drug Act provided primarily for protection
True / False 1. The 1906 Pure Food and Drug Act provided primarily for protection against adulteration and misbranding of food and drugs. a. True b. False 2. The 1906 Pure Food and Drug Act was the first step by […]
Business & Finance Chapter 19 The Fair Credit Billing Act holds that when consumers think there
112. The Fair Credit Billing Act holds that when consumers think there is a mistake in a credit card bill they have six months in which to notify the creditor in writing. a. True b. False 113. The Fair Credit […]
Business & Finance Chapter 19 The government agency charged with monitoring food and drug safety
Multiple Choice 1. The government agency charged with monitoring food and drug safety is the: a. Food and Drug Administration b. Food Safety Administration c. Food and Drug Regulation Agency d. Food and Dangerous Drug Administration e. Consumable Products Administration […]
Business & Finance Chapter 19 Where Levine sued the drug developer Wyeth for failure to warn after
117. In Wyeth v. Levine, where Levine sued the drug developer Wyeth for failure to warn after she lost her forearm and hand after being given a drug by IV–push, a method known to have risks, the U.S. Supreme Court: […]
Business & Finance Chapter 19 Which of the following does not conform to FDA standards
59. Which of the following does not conform to FDA standards for food labels: a. “fresh” means the food is raw or unprocessed b. “light” means at least one-tenth fewer calories per serving than the regular serving c. “low calorie” […]
Business & Finance Chapter 19 Which of the following is NOT a prohibited basis under the Equal
275. Which of the following is NOT a prohibited basis under the Equal Credit Opportunity Act: a. race b. sexual orientation c. age d. religion e. all of the other specific choices are prohibited bases 276. The Federal Reserve Board […]
Business & Finance Chapter 19 Which of the following items is not required to be disclosed
223. Which of the following items is not required to be disclosed by a creditor as a part of the statement given a debtor? a. service, activity, carrying and transaction charges b. loan fees and points c. fees for credit […]
Business & Finance Chapter 2 Because more than one court cannot have jurisdiction over
100. Because more than one court cannot have jurisdiction over the same case, federal courts have removal jurisdiction to insure that cases are moved to the proper state court. a. True b. False 101. An action may be removed from […]
Business & Finance Chapter 2 Cases concerning the application of the U.S. Constitution are federal
66. Cases concerning the application of the U.S. Constitution are federal questions within the power of the federal courts. a. True b. False 67. Diversity of citizenship is a basis for allowing federal jurisdiction when a legal dispute arises between […]
Business & Finance Chapter 2 Every state court system has trial courts where disputes are initially
e. none of the other choices are correct 121. Every state court system has trial courts where disputes are initially brought and tried. These are the courts of: a. limited jurisdiction b. special jurisdiction c. original jurisdiction d. appellate jurisdiction […]
Business & Finance Chapter 2 Federal Courts Have The Judicial Power
181. Federal courts have the judicial power to hear most cases involving: a. interpretation of state constitutions b. traffic offenses c. divorce questions d. wills e. none of the other choices are correct 182. Some litigation in federal court is […]
Business & Finance Chapter 2 Federal judges are nominated by the President and confirmed by the Senate
True / False 1. With the exception of the U.S. Supreme Court, Congress has the power to abolish and create federal courts. a. True b. False 2. The Constitution created the U.S. Supreme Court and authorized it to establish lower […]
Business & Finance Chapter 2 In rem jurisdiction can include jurisdiction over
236. In rem jurisdiction can include jurisdiction over: a. intangible property (such as a bank account) b. tangible (real) property c. shares of stock in a company d. a house e. any of the other choices could be correct ANSWER: […]
Business & Finance Chapter 2 Most cases involving questions of federal law originate in
61. Most cases involving questions of federal law originate in: a. the U.S. superior courts b. the U.S. claims courts c. the U.S. municipal courts d. the state district courts e. none of the other choices are correct ANSWER: e […]
Business & Finance Chapter 2 The first thing a business with a civil dispute going to litigation
Multiple Choice 1. The first thing a business with a civil dispute going to litigation must determine is: a. which court has the power and authority to decide the case b. the lowest settlement it is willing to take c. […]
Business & Finance Chapter 2 where Tompkins sued a New York company that owned a train that
276. In Erie Railroad Co. v. Tompkins, where Tompkins sued a New York company that owned a train that hit him in Pennsylvania: a. the U.S. Supreme Court said that federal common law must be applied in federal court b. […]
Business & Finance Chapter 20 A firm’s refers to the percentage of the relevant market
111. A firm’s refers to the percentage of the relevant market controlled by the firm. a. market power b. profitability c. market share d. market proportion e. market control 112. A firm’s refers to the percentage of the relevant market […]
Business & Finance Chapter 20 Agreements that provide horizon talare often held to violate antitrust
163. In FTC v. Indiana Federation of Dentists, a dentists’ organization required its members to withhold x–rays from insurance companies. The Supreme Court held this rule: a. justified for medical privacy, and so legal b. legal for a profession such […]
Business & Finance Chapter 20 City Medical Association Refuse Take Welfare Patients
216. Vertical exclusionary practices do not include: a. boycotts b. tying arrangements c. price fixing by competitors d. exclusive dealing arrangements e. all of the other choices are vertical exclusionary practices 217. When a seller will sell a product only […]
Business & Finance Chapter 20 One of the main ways for a firm charged with violating
269. Monopsony power is: a. market power on the buy side of the market b. market power on the sell side of the market c. colloquially called a “seller‘s monopoly power” d. colloquially called a “distributor‘s monopoly power” e. the […]
Business & Finance Chapter 20 One of the reasons for passing the Sherman Act was to respond
True / False 1. One of the reasons for passing the Sherman Act was to respond to the political unpopularity of big business. a. True b. False 2. The Sherman Act was passed in response to the general unpopularity of […]
Business & Finance Chapter 20 Suppose Coca-Cola required anyone who wanted to distribute
295. Suppose Coca-Cola required anyone who wanted to distribute Coke products must to also purchase a new candy product that Coca–Cola manufactures. This practice would be: a. illegal per se as an exclusive dealing arrangement under the Clayton Act b. […]
Business & Finance Chapter 20 The power-buyer defense to antitrust allegations says
65. The power-buyer defense to antitrust allegations says that a merger that increases the concentration of market power is not anticompetitive so long as purchasers are large, sophisticated, and have bargaining power. a. True b. False 66. In U.S. v. […]
Business & Finance Chapter 20 The Supreme Court held that minimum vertical price fixing controls
105. In Leegin Creative Leather Products v. PSKS, the Supreme Court held that minimum vertical price fixing controls (resale price maintenance) would be viewed with a rule of reason. a. True b. False 106. In Leegin Creative Leather Products v. […]
Business & Finance Chapter 20 Which of the following is not permitted as a possible remedy
60. Which of the following is not permitted as a possible remedy in antitrust actions? a. force a company to sell a subsidiary b. force a company to let other use its patents c. restrain a company from certain business […]
Business & Finance Chapter 20 Which of the following led to the passage of federal antitrust
Multiple Choice 1. Antitrust law refers to: a. the interpretation of antitrust statues by the courts b. the antitrust statutes c. the enforcement policies of administrative agencies d. all of the other specific choices are correct e. none of the […]
Business & Finance Chapter 21 Corp Mattered And Had Rights Enforce e None
218. The new source performance standards for reducing air and water pollution apply to: a. new plants or new sources of pollution b. plants or sources of pollution in existence prior to the passage of the Clean Water Act c. […]
Business & Finance Chapter 21 Rachel Carson’s publication of “Silent Spring” increased public
Multiple Choice 1. Pollution controls cost every year in the United States. a. more than $250 billion b. about $100 billion c. less than $100 billion d. more than $250 trillion e. between $250 million and $500 million 2. During […]
Business & Finance Chapter 21 Superfund Liability Called The Problem Ofa Urban
273. Hazardous wastes are stored until disposal or treatment at: a. storage facilities b. transformation facilities c. treatment facilities d. disposal facilities e. neutralizing facilities 274. Hazardous wastes are stored until disposal or treatment at: a. neutralizing facilities b. transformation […]
Business & Finance Chapter 21 The 191 hazardous air pollutants listed by the Clean Air Act are
160. Under the 1990 Clean Air Act: a. Congress provided for the control of pollution originating in the foreign countries b. Congress provided for an import duty on those goods produced at foreign plants that do not use pollution controls […]
Business & Finance Chapter 21 The Allowable Slight Increase Pollution From New
109. Which of the following is a major pollutant regulated by the Clean Air Act: a. sulfur dioxide b. particulates c. ozone d. carbon monoxide e. all of the other specific choices are major pollutants 110. Which of the following […]
Business & Finance Chapter 21 The book Silent Spring played a significant role in raising public
True / False 1. The book Silent Spring played a significant role in raising public concerns about the environment in the 1990s. a. True b. False 2. The book Silent Spring played a significant role in raising public concerns about […]
Business & Finance Chapter 21 The structure of pollution laws in China is quite similar
64. The structure of pollution laws in China is quite similar to the laws in the U.S. a. True b. False 65. Pollution regulation in China look tough on paper but are not enforced much. a. True b. False ANSWER: […]
Business & Finance Chapter 21 The Toxic Substances Control Act applied to about 3,000
110. The Toxic Substances Control Act applied to about 3,000 substances. a. True b. False 111. FIFRA requires registration of pesticides and similar products with the Department of Agriculture. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL […]
Business & Finance Chapter 21 There Failure Use Reasonable Care Prevent
58. If there is a failure to use reasonable care to prevent pollution from causing a foreseeable injury, a defendant may be liable for: a. negligence b. battery c. assault d. inattention e. failure to protect 59. If there is […]
Business & Finance Chapter 21 Which of the following is an environmental issue that must
313. Which of the following is an environmental issue that must be dealt with at the international scale: a. the ozone layer b. the marine environment c. habitat destruction d. global climate change e. all of the other specific choices […]
Business & Finance Chapter 22 If you violate the export provisions of the Export Administration
117. Under the Export Administration Act, a general license: a. authorizes a business to import non-sensitive goods b. authorizes a business to export non-sensitive goods c. authorizes a business to export sensitive goods d. requires an application with the Department […]
Business & Finance Chapter 22 International commercial codes date as far back as
Multiple Choice 1. International business is often defined to include: a. business transactions that involve two or more countries b. the movement of services, capital, and personnel across national boundaries c. the transactions of multinational firms d. business transactions that […]
Business & Finance Chapter 22 The management of international business risks involves
True / False 1. The management of international business risks involves considerations of currency exchange and of differences in legal systems. a. True b. False 2. International business transactions involve risks that are financial, political, and regulatory. a. True b. […]
Business & Finance Chapter 22 The most visible U.S. franchises in the international market
64. The most visible U.S. franchises in the international market are gasoline stations. a. True b. False 65. Contract manufacturing involves a contractual arrangement where one business grants another business access to its patents and other technologies. a. True b. […]
Business & Finance Chapter 22 Which of the following is a way to regulate imports
59. Which of the following is a way to regulate imports: a. complicated customs procedures b. government procurement policies c. safety and manufacturing standards d. all the other specific choices are correct e. none of the other specific choices are […]
Business & Finance Chapter 22 World Inc. wanted to sell sugar-free candy made by Sweets
168. World Inc. wanted to sell sugar-free candy made by Sweets (a U.S. company) to an Italian company, Ferraro. The goods were to be paid for by an irrevocable letter of credit issued in the name of World. The letter […]
Business & Finance Chapter 3 A judicial system that requires parties to represent themselves and argue
Multiple Choice 1. An adversary system of justice does not: a. reflect the belief that truth is discovered through the presentation of competing ideas b. require opposing parties to argue their positions before a court c. require an actual case […]
Business & Finance Chapter 3 A person is injured in an accident involving a GM car
117. In contrast to the American system, judges in British court proceedings: a. summarize the evidence for the jury before instructing them on the relevant laws b. summarize the potential sentencing possibilities c. remind the jury of its duties d. […]
Business & Finance Chapter 3 After The Initial Exchange Pleadings Litigation
60. After the initial exchange of pleadings, litigation enters the: a. diversified stage b. complaint stage c. processing stage d. discovery stage e. result stage 61. The process of obtaining information about the dispute is known as: a. processing b. […]
Business & Finance Chapter 3 If there is not legally sufficient evidence on which a jury
176. A judge will declare a mistrial if: a. the jury reaches a verdict too quickly b. the jury reaches a verdict after more than 3 days c. the jury cannot reach a verdict d. the jury pretends to reach […]
Business & Finance Chapter 3 In Georgia State Licensing Board for Residential and General
116. In Georgia State Licensing Board for Residential and General Contractors v. Allen the Georgia Supreme Court held that an injunction would be issues against the Board against its licensing process as contractors had not be properly informed of new […]
Business & Finance Chapter 3 Refuses to give a deposition that the court thinks is proper
64. If a witness, such as a company president, refuses to give a deposition that the court thinks is proper, then judgment may be entered against the company. a. True b. False 65. One reason companies often settle suits out […]
Business & Finance Chapter 3 The plaintiff selects the court in which to file an action against
True / False 1. The plaintiff selects the court in which to file an action against a defendant. a. True b. False 2. The defendant has the right to move a suit to the court “of greatest convenience.” a. True […]
Business & Finance Chapter 3 What is the general rule concerning what is said during
322. What is the general rule concerning what is said during a mediation and a later court proceeding? a. mediators must always testify about what they know b. mediators will often, but not always, have to testify c. mediators cannot […]
Business & Finance Chapter 3 Which is not true about an arbitration decision
289. Which is not true about an arbitration decision: a. it need not be in writing b. it is entered in the public record c. no rationale need be given for the decision d. punitive damages may be awarded e. […]
Business & Finance Chapter 3 Written briefs and oral arguments are both methods through which
229. Parties can appeal a court’s decision if: a. there was a failure by the trial judge to admit or exclude certain evidence b. there were improper instructions being given to the jury c. there was granting or denying of […]
Business & Finance Chapter 4 Alaska Timber processing The Supreme Court Held a Congress
56. If Congress imposes a regulation on business, the states: a. may not have any regulations in the same area of concern b. may adopt regulations to replace the federal regulations, but they may only apply inside the borders of […]
Business & Finance Chapter 4 Analysis 238 Kelo City New London Conn Where
211. Based on the Fourth Amendment, the exclusionary rule allows evidence: a. to be introduced at trial, no matter how obtained b. that is pertinent to “key issues” to be introduced at trial c. that is improperly gathered to be […]
Business & Finance Chapter 4 Congress Regulate International Trade Impose Taxes Imported
111. To help stimulate jobs in its wine industry, New York does not tax New York wines but taxes other wines $1 per bottle. This tax is: a. a constitutional control on intrastate business b. constitutional, so long as it […]
Business & Finance Chapter 4 Electric Corp The Supreme Court Held That
62. If a business is interstate, the states may not tax the portion of a business generated within one state, unless so allowed by Congress. a. True b. False 63. In Japan Line, Ltd. v. County of Los Angeles, the […]
Business & Finance Chapter 4 Florida passes a tax that applies only to foreign ships
293. Florida passes a tax that applies only to foreign ships that unload cargo at the ports of Miami and Tampa. This tax is: a. unconstitutional; states must charge fees for the use of public facilities b. constitutional; it is […]
Business & Finance Chapter 4 George Washington presided over a convention at which the U.S.
Multiple Choice 1. George Washington presided over a convention at which the U.S. Constitution was drafted in which city? a. Washington, D.C. b. Richmond c. Philadelphia d. Baltimore e. New York 2. The U.S. Constitution was ratified and became effective […]
Business & Finance Chapter 4 The exclusionary rule that improperly gathered evidence may not
104. The exclusionary rule that improperly gathered evidence may not be used at trial applies to natural persons, not to artificial entities such as corporations. a. True b. False 105. In Skinner v. Railway Labor Executives Assn, the Supreme Court […]
Business & Finance Chapter 4 the original Constitution had to be adopted by at least one half
True / False 1. To become effective, the original Constitution had to be adopted by at least one half of the original states of the union. a. True b. False 2. The Bill of Rights was added to the Constitution […]
Business & Finance Chapter 4 When state action either shocks the conscience or offends
264. When state action either shocks the conscience or offends judicial notions of fairness and human dignity it is violating: a. the First Amendment b. the Sixth Amendment c. fair process d. due process e. due law 265. When state […]
Business & Finance Chapter 4 Which of the following restrictions on commercial speech were
160. Which of the following restrictions on commercial speech were held to be constitutional by the Supreme Court? a. a Virginia law prohibiting advertising in Virginia papers about abortion services in other states when abortion was illegal in Virginia b. […]
Business & Finance Chapter 5 As discussed in the chapter, which would be the best definition
Multiple Choice 1. As discussed in the chapter, which would be the best definition of crime: a. an act that violates the right of another citizen or group of citizens b. a positive or negative act that is an offense […]
Business & Finance Chapter 5 In a criminal trial, to be found guilty, the standard is guilt
118. Exculpatory evidence is evidence which: a. might show that the defendant is guilty b. might show that the defendant is not guilty c. will not show that the defendant is not guilty d. makes the prosecution look bad e. […]
Business & Finance Chapter 5 In Commonwealth v. Angelo Todesca Corp. where Angelo Todesco
e. none of the other choices 61. Criminal acts: a. need not be planned b. must be premeditated c. must be tried within a month of being committed d. must be tried by at least 5 judges e. need not […]
Business & Finance Chapter 5 Misdemeanors are less serious crimes generally punishable by less than
True / False 1. A crime is an act that “violates human rights.” a. True b. False 2. A crime may be a positive act that violates the penal law of a government. a. True b. False ANSWER: True POINTS: […]
Business & Finance Chapter 5 Prosecuting attorneys only review evidence presented
69. Prosecuting attorneys only review evidence presented to them by the police or other authorities; they do not do their own investigations. a. True b. False 70. When a prosecutor requests an indictment from a grand jury, one is usually […]
Business & Finance Chapter 5 The crime of mail fraud is common since materials related
107. The crime of mail fraud is common since materials related to a fraud that are sent through the mails can fall under the law. a. True b. False 108. An American citizen working for an American company in another […]
Business & Finance Chapter 5 Uss Assessment That a The Requirement That Individuals
e. none of the other choices are correct 157. When a person deals in a security when in possession of non-public information, and they have an obligation not to reveal or use the information it is: a. embezzlement b. racketeering […]
Business & Finance Chapter 6 A medical worker was sued by a patient for discussing the patient’s
311. A medical worker was sued by a patient for discussing the patient’s medical condition with a mutual friend. The patient most likely sued the medical worker for the tort of: a. false imprisonment b. mental distress c. invasion of […]
Business & Finance Chapter 6 Carl’s neighbor writes a column for the local paper
225. Carl’s neighbor writes a column for the local paper. One week he reveals Carl‘s drug abuse problems and Carl is subsequently fired from work. Carl will probably sue his neighbor for: a. invasion of privacy b. assault c. battery […]
Business & Finance Chapter 6 If alleged consequences are too far removed from the negligent
59. The term res ipsa loquitur means: a. an event was the cause in fact b. an event was the proximate cause of an injury c. the thing speaks to the court d. the thing reveals the truth e. none […]
Business & Finance Chapter 6 If an accounting firm is sued for negligently preparing
282. If an accounting firm is sued for negligently preparing a faulty financial report for a company, it is likely that the accounting firm is: a. not liable; a reasonable number of mistakes are expected to occur b. liable if […]
Business & Finance Chapter 6 Juries in tort cases often award large sums of money because
Multiple Choice 1. Tort suits generally come from: a. customer carelessness or ignorance b. unexpected instances of carelessness or bad behavior c. failure to plan for unexpected catastrophes d. natural disasters e. repeated failure to comply with industry regulations 2. […]
Business & Finance Chapter 6 The Failure Have The Legally Required Number
True / False 1. A tort is broadly defined as a civil wrong, other than a breach of contract, for which the law provides a remedy. a. True b. False 2. The rules of tort law have changed little over […]
Business & Finance Chapter 6 the plaintiff must show willful misconduct by the defendant
64. To prove intent for an intentional tort, the plaintiff must show willful misconduct by the defendant. a. True b. False 65. For there to be an intentional tort, the person who commits the tort must be shown to have […]
Business & Finance Chapter 6 Voluntary participation in a contact sport is an example
170. Voluntary participation in a contact sport is an example of: a. consent in participation b. consent to risk taking c. consent in battery d. all of the other specific choices e. none of the other specific choices 171. Player […]
Business & Finance Chapter 6 Waivers of liability or exculpatory clauses
113. Express assumption of risk is when: a. the parties agree beforehand that the defendant will relieve the plaintiff of his or her legal duty towards the defendant b. the parties agree beforehand that the plaintiff will do everything in […]
Business & Finance Chapter 6 where Lawler was fired soon after telling her supervisor that
100. In,Lawler v. Montblanc North America, where Lawler was fired soon after telling her supervisor that for medical reasons she could not work more than 20 hours per week the appeals court held she could sue the employer for mental […]
Business & Finance Chapter 7 A(n)warranty is one the law may insert regardless of actual contract
112. An implied warranty is: a. illegal in many states b. one the manufacturer always provides to the buyer in every relationship c. one that the law prohibits from being waived d. one consumers demand in all contracts e. none […]
Business & Finance Chapter 7 About a half-million tort cases are filed each year
True / False 1. About a half-million tort cases are filed each year. a. True b. False 2. The tort system in the U.S. is estimated to cost right about $40 billion per year. a. True b. False ANSWER: False […]
Business & Finance Chapter 7 Alaska High court Held That The Claim Fraudulent
Multiple Choice 1. Intentional torts occur when: a. the tortfeasor is found to have intended to invade a protected interest and the tortfeasor knew, or should have known, of the consequences of the act that resulted in an injury b. […]
Business & Finance Chapter 7 An express warranty is a promise that is clearly stated by
63. An express warranty is a promise that is clearly stated by the seller to the buyer; it is a part of the contract. a. True b. False 64. An express warranty of safety in a product is one the […]
Business & Finance Chapter 7 This Isa Negligence Tortb Caveat Emptor c Proximate
55. The is primarily concerned with harms suffered by buyers and other persons who use defective products. a. law of stock protection b. law of malpractice liability c. law of seller liability d. law of commercial liability e. none of […]
Business & Finance Chapter 7 where a person was severely injured when jumping on a trampoline
168. In Parish v. ICON, where a person was severely injured when jumping on a trampoline and sued its maker and the maker of a safety net for failure to warn, the Iowa high court held that: a. the makers […]
Business & Finance Chapter 7 Wrong quot Soda When She Grabs The Bottle
214. Which of the following is not a potential statutory limit on potential tort liability: a. worker compensation statutes b. certain products that must follow federal labeling requirements c. products made in foreign country under their liability laws for sale […]
Business & Finance Chapter 8 A person may use which of the following as a defense to the tort
True / False 1. Moveable property, or personal property, may be called chattel. a. True b. False 2. Real property was traditionally referred to as chattel. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States […]
Business & Finance Chapter 8 Carol Can Sue Andy Fora Failure Maintain
61. Subsurface mineral rights: a. must transfer in fee simple with deeds to land b. must transfer in fee simple with title to land c. are owned by the government d. are owned by the people in common e. none […]
Business & Finance Chapter 8 Hostile User Another Persons Land May
118. A hostile user of another person’s land may come to own the property or an easement through: a. hostile possession b. land use possession c. regular use clauses d. adverse possession e. none of the other choices are correct […]
Business & Finance Chapter 8 If a condition was attached to the sale of a home that said
71. If a condition was attached to the sale of a home that said it could not have dog kennels on the property that would be likely known as a covenant. a. True b. False 72. A covenant that violates […]
Business & Finance Chapter 8 Moveable property, or personal property, may be called chattel
264. You go to a flea market and buy a LCD TV for $100. One day you receive a notice that the owner of the TV, which had been stolen from her house and sold by the thief at the […]
Business & Finance Chapter 8 Shooting a bullet across someone else’s property without
109. Shooting a bullet across someone else’s property without stepping onto the property may be the tort of trespass to land. a. True b. False 110. Someone tells you it is ok to hunt on a farmer’s property, but in […]
Business & Finance Chapter 8 When commercial rent includes charges for lighting
171. Commercial leases, compared to residential leases, tend to: a. be much longer b. be more controlled by state statute c. require the landlord to provide most interior furnishings d. be more likely to be of short duration e. all […]
Business & Finance Chapter 8 Which of the following is an example of personal property
Multiple Choice 1. Traditionally, personal property was referred to as: a. property in rem b. quasi in rem property c. chattel d. aggregate property e. none of the other choices 2. Chattel is the traditional term for: a. personal property […]
Business & Finance Chapter 9 Arbitrary And Fanciful Suggestive Descriptive And
61. Arbitrary and fanciful, suggestive, descriptive, and generic are classifications of: a. patents b. torts c. trademarks d. copyrights e. none of the other choices are correct ANSWER: c POINTS: 1 DIFFICULTY: Easy NATIONAL STANDARDS: United States – BUSPROG: Communication […]
Business & Finance Chapter 9 In Audi AG v. D’Amato the appeals court held that Audi
69. In Audi AG v. D’Amato the appeals court held that Audi could stop D’Amato’s use of the domain name audisport.com. a. True b. False 70. In Audi AG v. D’Amato the appeals court held that Audi’s name suffered dilution […]
Business & Finance Chapter 9 Information That Not Known The Competition
215. In Bowman v. Monsanto, where Bowman used Monsanto’s patented Roundup Ready seeds and, in violation of the contract provided by Monsanto, kept seeds from his crop to use next year so that the seeds had the genetic composition of […]
Business & Finance Chapter 9 Inherently Distinctive Trade Dress Protected Under
117. “Inherently distinctive” trade dress is protected under the: a. Property Act b. Trade Dress Act c. Shelton Act d. Copyright Act e. none of the other choices are correct 118. In Wal-Mart v. Samara Brothers, where Wal–Mart was accused […]
Business & Finance Chapter 9 Intellectual property must show some evidence of labor having been
True / False 1. Intellectual property must show some evidence of labor having been provided to create it for protection to be granted. a. True b. False 2. Copyrights, trademarks and trade names are examples of intellectual property. a. True […]
Business & Finance Chapter 9 Monsanto Seeds The Supreme Court Held That
122. If a work is copyrighted, it must have a notice of copyright on it, such as ©, or others have the right to presume the work is in the public domain. a. True b. False 123. If a work […]
Business & Finance Chapter 9 New York Times Co Tasini Involving
177. Which of the following is part of a notice of copyright: a. the official name of the work b. proof of originality c. the circle-C (©) d. all of the other specific choices are correct e. none of the […]
Business & Finance Chapter 9 Which The Following Example Intangible Property Trademarks
Multiple Choice 1. Trademarks, trade names, patents, and copyrights represent a category of property called: a. intangible property b. tangible property c. real property d. statutory property e. personal property 2. Trademarks, trade names, patents, and copyrights represent a category […]