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Venture Capital, LP, is a limited partnership. Its limited partners include more than 150 sophisticated investors and investment professionals. A Venture limited partner loses his or her limited liability if he or she a. acts as the firm’s manager. b. […]

The payment of Waldo’s debt to Main Street Bank is guaranteed by Waldo’s personal property. This is governed by a. the Uniform Commercial Code. b. the Federal Trade Commission. c. the U.S. Constitution’s commerce clause. d. the Bankruptcy Reform Act […]

Rolf is an emergency medical technician. Medical personnel such as Rolf are prohibited by state statute from working more than a certain number of consecutive hours. One month, Rolf works more than the legal limit. Rolf can recover for a. […]

Merchant Supply Company and National Discount Stores enter into a contract for a lease of cash registers. Merchant assures National that it has valid title to the goods. Under the UCC, a warranty of title arises a. automatically in most […]

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration. Once the time for performance under the contract has expired, the seller or lessor can never exercise the right to cure. Answer: […]

Vivian and Rob enter into a contract under which Vivian will clean Rob’s house every week for a year. Under the E-SIGN Act, in order for e-signatures to be enforceable for this contract a. Vivian and Rob must both agree […]

Vieux Carr S.A., a French firm, imports its goods into the United States and offers those goods for sale at “less than fair value.” “Fair value” is the price of a. comparable goods in a select “basket” of other countries. […]

Instruments that say nothing about when payment is due are payable on demand. If a buyer accepts a shipment of goods and later discovers a defect, acceptance cannot be revoked. Answer: F A contract for a sale of goods priced […]

A contract is an agreement that can be enforced in court. Under the UETA, a contract is unenforceable if it is solely in electronic form. Answer: F A seller has an insurable interest in goods as long as he or […]

Hal’s Hardware store defaults on a debt to Intrastate Bank, which takes possession of the collateral securing the debt. Intrastate sells the collateral. The proceeds from the sale are applied first to a. Hal’s debt to Intrastate. b. Hal’s debts […]

Banks may not assign their loan contracts to other firms. Article 2 of the UCC sets forth the requirements for sales contracts and Article 2A covers similar issues for lease contracts. Answer: t The Securities Exchange Act of 1934 provides […]

A franchisor is the purchaser of a franchise. In most states, a director cannot be removed from a corporate board for a breach of duty. Answer: F The ownership right to stock exists independently of a stock certificate. Answer: T […]

Serenity City enacts an ordinance that bans the use of “sound amplifying systems” on public streets. Tyler wants to campaign for a seat on the city council by broadcasting his message through speakers mounted on a truck. In Tyler’s suit […]

A third party cannot sue one of the partners of a partnership without suing all of the partners of the partnership. Any breach allows the nonbreaching party to sue for damages. Answer: T The alter-ego doctrine can be applied to […]

Some states permit a corporate board to have fewer than three directors. Stare decisis is a doctrine obligating judges to follow the precedents established within their jurisdictions. Answer: T The Clayton Act prohibits certain classes of price discrimination. Answer: T […]

Gigi, a twenty-year-old, wants to execute a will before she undertakes a mountain-climbing trip on a peak in the Himalaya Mountains. In most states, the legal age for executing a will is a. sixteen years of age. b. eighteen years […]

Sparky offers Teodora $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of consideration. b. not question the adequacy of the consideration. c. rewrite […]

Ramblin” Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin” refuses to go through with the deal. Blacksmith can recover a. $1,500. b. $1,000. […]

Ruff Games, Inc., wishes to acquire a controlling interest in Smart Toy Company by buying its stock. Smart Toy is a. an alien corporation. b. an acquiring corporation. c. a receiver. d. a target corporation. Valley Bank retains the cancelled […]

Article I, Section 8, of the U.S. Constitution permits Congress to regulate interstate commerce. A trade association practice or agreement that restrains trade is analyzed under the rule of reason. Answer: T Private parties can sue violators of the Securities […]

Ira is declared mentally incompetent. Jay, Ira’s son, is named his guardian. At Jay’s insistence, Ira transfers his assets to Jay “for safekeeping.” A court might conclude that this gift is not effective on the ground that there was no […]

Geoff serves in a representative capacity for Huck. To accomplish the objectives of this relationship, Geoff’s authority can be implied a. by contradiction. b. by custom. c. by lack of reason. d. under no circumstances. Milo files a suit against […]

Labor Recruiters, Inc., has been ordered to appear at a hearing before an administrative law judge of the National Labor Relations Board. A significant difference between a trial and an administrative hearing is that a. attorneys are not allowed to […]

Remedies of the agent for breach of duty by the principal arise out of contract and tort law. A surety cannot assert the principal debtor’s bankruptcy as a defense to avoid liability on the debtor’s obligation. Answer: t Proceeds consist […]

An agency can terminate once its purpose is achieved. Laws governing franchising are designed in part to prevent franchisors from terminating franchises without good cause. Answer: T A unilateral mistake is a mistake made by both parties to a contract. […]

Investors Fund, a large financial institution, announces that it will start monitoring its employees’ electronic communications. If Mary, an Investors Fund employee, resists this policy, her best argument is that the monitoring violates a. employee privacy rights. b. worker health […]

In reviewing the actions of the U.S. Office of Nuclear Energy and other agencies, the courts a. are usually reluctant to review questions of fact. b. rarely defer to the technical expertise of administrative agencies. c. often rule on the […]

Quest Holdings, Inc., orally contracts for a lease of its facilities to Ray to use for his Swamp & Bayou Fishing Camp. Ray pays part of the rent, takes possession, and improves the property for use by his enterprise. The […]

Metallic Metals, Inc., a U.S. firm, files a suit against a Venezuela government agency. The agency has committed a tort in the United States. Under the Foreign Sovereign Immunities Act a. the Venezuelan government agency is not immune from the […]

A partnership agreement can include almost any terms that the partners wish. An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice. Answer: T A contract for the sale of minerals is considered […]

Jackson Lumber hires Owen to purchase wood from various sources on behalf of Jackson Lumber. In this relationship, Jackson Lumber is the a. employee. b. independent contractor. c. principal. d. agent. Doyle and Emily are officers of Fresh Bottled Water […]

A tenant has a duty to maintain in a reasonably safe condition those areas under his or her control. Under the theory of negligence, the duty of care requires a careless act. Answer: F When the risk of loss for […]

French’s Fast Fries (3F) requires that its employees wear uniforms and protective clothing while on the job. 3F provides a locker room for the employees to leave their street clothes and personal items while working. A sign on the back […]

Glen falsely accuses Hu of stealing from Island Tours, Inc., their employer. Glen’s statement is NOT defamatory if a. only Hu hears it. b. a third party hears it. c. the statement is published. d. the statement is a lie. […]

Flynn, an accountant, helps Grange Supply Company prepare and file a false federal corporate income tax return. Under the Internal Revenue Code, this is a. a felony punishable by a fine and imprisonment. b. a felony punishable only by a […]

Labels on vegetables and fruits are not required to indicate where the food originated. Buying or selling securities on the basis of nonpublic information is illegal only if the profit from the transaction is unreasonable. Answer: F During a storm […]

All forms of gambling are legal in all states. Joint venturers have the authority to enter into contracts for the business that will bind the joint venture. Answer: T A covenant not to sue does not always bar further recovery. […]

Under the Constitution, the judicial branch is responsible for foreign affairs. An accountant’s liability under the Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 requires privity of contract. Answer: F A seller does not have to […]

Solar Power, Inc., files a suit against Thunder Bay Utility Company and seeks to examine electronic documents in Thunder’s possession. A legitimate reason for this examination is that the documents contain a. evidence about the case. b. private information about […]

StartUp Investors, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be a. distributed according to the members’ proportionate shares […]

A landlord is usually required to give some period of notice to terminate a periodic tenancy. A corporate name must include the word Corporation, Incorporated, Company, or Limited, or abbreviations of these terms. Answer: T When a nave purchaser relies […]

An accountant can avoid liability by proving that his or her negligence was only the proximate cause of the client’s loss. There are no exceptions to the rule that any duty can be delegated. Answer: F The means test forces […]

Bryce’s accountant is Caleb and his attorney is Delilah. All states protect, as privileged information, Bryce’s communications with a. Caleb and Delilah. b. Caleb only. c. Delilah only. d. neither Caleb nor Delilah. Precise Device Corporation and Quality Instruments, Inc., […]

Bread & Bagels Corporation wants to purchase all of the assets of Coffee & Tea Inc. Dolly is a Coffee & Tea shareholder. The approval of Dolly and other Coffee & Tea shareholders is necessary a. in all circumstances. b. […]

Hudson and Ilka want to market a new line of kayaks and related gear under the brand name Journeys as a corporationJourneys Inc. To avoid income taxes at the corporate level, they should form a. a C corporation. b. a […]

George burns an American flag in his backyard. He films his actions and posts the video on YouTube.com. George’s actions are a. expressly prohibited by the U.S. Constitution. b. protected by the First Amendment of the U.S. Constitution. c. considered […]

Through a certain transaction, Coffee Bean Cafs, Inc., acquires all of the shares of Deli Dining Corporation for some of Coffee Bean’s shares. Both Coffee Bean and Deli Dining continue to exist. This is a. a consolidation. b. a share […]

Future members of a limited liability company (LLC) may enter into contracts on the entity’s behalf before the LLC is formed. Generally, contract doctrines apply to a landlord-tenant relationship. Answer: T A false statement by an expert to a naive […]

Sexual harassment occurs only if sexual favors are demanded of an employee. Property used by a government for a public purpose such as a park is community property. Answer: F Insurance coverage is never effective until a formal written policy […]

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate’s decision makers can predict whether a given business action would be legal in a. all situations. b. many situations. c. no situations. d. […]

Prenuptial agreements are agreements made during a wedding ceremony that define each partner’s duties to one another during the marriage. A contract can include a provision stating that no damages can be recovered for certain types of breaches. Answer: T […]

A party’s oral agreement to pay another’s debt is NOT enforceable if the party’s main purpose is to derive a benefit for himself or herself. In a general partnership, the acts of one partner in the ordinary course of business […]

Precise GPS Company’s ad states that its product is “the finest that money can buy.” Because of this ad, the Federal Trade Commission is most likely to issue a. a cease-and-desist order. b. a counteradvertising order. c. a multiple product […]

If an employee dies in a work-related incident, the employer must notify OSHA within eight hours. Revocation is effective on dispatch. Answer: F A joint venture resembles a partnership but is taxed like a corporation. Answer: F A check is […]

An artisan’s lien is a security device created at statutory law through which a creditor can recover payment for labor and materials used to increase the value of real property. In some states, a judgment creditor must obtain a separate […]

A franchisor’s decision to terminate a franchise may be made in the normal course of business operations. Scienter exists if a party makes a statement that he or she believes to be scientifically verifiable. Answer: F Authority declared in clear, […]

Cole is a shareholder of Donut Holes, Inc. Cole will be deemed to have a fiduciary duty to Donut Holes and its minority shareholders if he has a. a restriction on the transferability of his shares. b. a right of […]

A limited liability company can be taxed as a partnership. There are no circumstances under which a contract can be tendered by multiple deliveries of goods. Answer: F Contract law assures the parties to private agreements that the promises they […]

Bob operated a pet grooming shop under a franchise agreement with Clean Pets Corp (CPC). The agreement allowed CPC to terminate the franchise if Bob was fined for cruelty to animals. After an investigation initiated by a customer complaint, Bob […]

Lawyers are not allowed to represent people in small claims courts in any of the states. In many states, an operating agreement is not required for a limited liability company to exist. Answer: T The contract term “free on board” […]

Bret buys a franchise from Comida Mexicano Ltd. If their agreement is like most franchise agreements, it will specify that Comida can terminate the franchise a. at will. b. for any reason. c. for cause only. d. for no reason. […]

To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online dispute resolution (ODR) service. This limits these parties’ recourse to the courts a. not at all. b. until the ODR service has issued a decision. […]

Money Mortgage Mart makes a mortgage loan to Natalie to allow her to buy a home and establishes an escrow account. Most likely, this account holds payments for a. homeowners’ insurance and property taxes. b. property repairs and maintenance. c. […]

The U.S. Postal Service is a public corporation. The majority rule controls decisions on ordinary matters connected with partnership business. Answer: T An offer does not need to be communicated to the offeree to become effective. Answer: F Employees who […]

On a motion for judgment on the pleadings, a court may consider evidence outside the pleadings. If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act. Answer: T Sierra borrows […]

If a seller repudiates a contract, the buyer’s damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach. The incompetence of a customer revokes a bank’s authority to pay an […]

The laws governing franchising are primarily designed to protect franchisors from dishonest franchisees. Andy leases to Burgertown Franchise Corporation a 10,000 square-foot building under a written lease with a twenty-year term, rent payable annually. The lease includes a clause stating […]

It is not possible to violate a business regulation without realizing it. Under a destination contract, the risk of loss passes to the buyer when the goods are duly delivered to the carrier. Answer: F There are legal questions involved […]

A nuncupative will is a will that is completely in the handwriting of the testator. Symbolic speech is defined as nonverbal expressions of belief and is protected by the First Amendment. Answer: T The 1995 Federal Trademark Dilution Act allowed […]

A party is entitled to cancel a contract based on the other party’s material breach. If no children or grandchildren survive a decedent who dies without a will, a surviving spouse is entitled to the entire estate. Answer: T Some […]

Cybersquatting occurs when a person repeatedly visits a business’s website. Parents who sign a contract made by their minor child with an adult have the same option to disaffirm as the child. Answer: f Employers cannot forbid their employees from […]

Norma Jean files for Chapter 7 bankruptcy. She turns her assets over to Addie, who sells the assets and then distributes the proceeds to Norma Jean’s creditors. Addie is a a. creditor. b. federal judge. c. bankruptcy trustee. d. debtor. […]

Chapter 1 The Legal Environment 1 ANSWER: T PAGE: 4 TYPE: N BUSPROG: Analytic AICPA: BB-Critical Thinking N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test […]

Chapter 10 Consideration 1 ANSWER: F PAGE: 261 TYPE: N BUSPROG: Analytic AICPA: BB-Critical Thinking 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. + […]

Chapter 11 Capacity and Legality 1 ANSWER: F PAGE: 274 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. […]

Chapter 12 Voluntary Consent 1 ANSWER: T PAGE: 293 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 modified from […]

Chapter 13 The Statute of Frauds— Writing Requirement 1 ANSWER: T PAGE: 305 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 14 Performance 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 the […]

Chapter 15 Breach and Remedies 1 ANSWER: F PAGE: 337 TYPE: N BUSPROG: Reflective 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 16 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 […]

Chapter 17 The Formation of Sales and Lease Contracts 1 ANSWER: T PAGE: 384 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 […]

Chapter 18 Title and Risk of Loss 1 ANSWER: T PAGE: 411 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 […]

Chapter 19 Performance and Breach of Sales and Lease Contracts 1 ANSWER: F PAGE: 425 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 […]

Chapter 2 Constitutional Law 1 ANSWER: T PAGE: 34 TYPE: = 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 […]

Chapter 20 Warranties and Product Liability 1 ANSWER: T PAGE: 449 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 […]

Chapter 21 Negotiable Instruments: Transferability and Liability 1 ANSWER: T PAGE: 476 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 […]

Chapter 22 Checks and Banking in the Digital Age 1 ANSWER: T PAGE: 507 TYPE: + 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 […]

Chapter 23 Security Interests in Personal Property 1 ANSWER: F PAGE: 530 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 […]

Chapter 24 Other Creditors’ Remedies and Suretyship 1 ANSWER: T PAGE: 554 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 […]

1 Chapter 25 Bankruptcy 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 26 Mortgages and Foreclosures after the Recession 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 International Law in a Global Economy 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 […]

Chapter 28 Agency Relationships in Business 1 ANSWER: F PAGE: 636 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 […]

1 Chapter 29 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 3 Courts and Alternative Dispute Resolution 1 ANSWER: F PAGE: 64 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 […]

Chapter 30 Employment Discrimination and Diversity 1 ANSWER: F PAGE: 689 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 […]

Chapter 31 Sole Proprietorships and Private Franchises 1 ANSWER: T PAGE: 716 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 […]

1 Chapter 32 All Forms of 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 of […]

Chapter 33 Limited Liability Companies and Special Business Forms 1 ANSWER: T PAGE: 752 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 […]

Chapter 34 Corporate Formation and Financing 1 ANSWER: F PAGE: 768 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 […]

Chapter 35 Corporate Directors, Officers, and Shareholders 1 ANSWER: T PAGE: 790 TYPE: = 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 […]

Chapter 36 Corporate Acquisitions, Takeovers, and Termination 1 ANSWER: F PAGE: 811 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 […]

Chapter 37 Investor Protection, Insider Trading, and Corporate Governance 1 ANSWER: T PAGE: 828 TYPE: = 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. […]

Chapter 38 Administrative Law 1 ANSWER: F PAGE: 856 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. + […]

Chapter 39 Promoting Competition 1 ANSWER: T PAGE: 876 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. + […]

Chapter 4 Torts and Cyber Torts 1 ANSWER: F PAGE: 97 TYPE: N BUSPROG: Analytic AICPA: BB-Critical Thinking N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the […]

Chapter 40 Consumer and Environmental Law 1 ANSWER: F PAGE: 900 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 […]

1 Chapter 41 Liability of Accountants and Other Professionals 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 42 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 […]

Chapter 43 Real Property and Landlord-Tenant Law 1 ANSWER: F PAGE: 972 TYPE: = 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 […]

Chapter 44 Insurance, Wills, and Trusts 1 ANSWER: F PAGE: 991 TYPE: N BUSPROG: Reflective AICPA: BB-Critical Thinking N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the […]

1 Chapter 5 Intellectual Property and Internet 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 6 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 […]

Chapter 7 Ethics and Business Decision Making 1 ANSWER: F PAGE: 189 TYPE: + BUSPROG: Ethics AICPA: BB-Critical Thinking N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of […]

1 Chapter 8 Nature and Classification 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 […]

Chapter 9 Agreement in Traditional and E-Contracts 1 ANSWER: F PAGE: 235 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 […]

Seymour borrows $350,000 from Reliable Bank to buy a home. Seymour stops making payments on the loan ten months later. After the bank repossesses the property securing the loan but before it is sold, Seymour wants to buy it. This […]

All states require that members of certain professions to have licenses. A writ of execution is a writ that puts in force a court decree or judgment. Answer: T When a buyer breaches a contract, the risk of loss immediately […]

Sonia manages a Tasty Pastry store for United Food Company. To manage the business, Sonia’s authority can be implied by a. an inference from the position Sonia occupies. b. any inference a reasonable customer or supplier would make. c. any […]

The primary measure of monopoly power is a competitor’s assessment of the acts of a firm under review. If the corporate directors fail to sue in the corporate name to redress a wrong suffered by the corporation, then the shareholders […]

Larceny relies on fear and force. Marvin is a very good businessman. He starts Marvin’s Bike Company in the small town of Wheatland, South Dakota. There is one other bike store in Wheatland. Through good business management, Marvin’s Bike Company […]

Phil owns a farm in South Dakota. He does not like it when planes from the local airport fly over his property. Phil is unlikely to win a case claiming that airplanes flying over his land violate his property rights […]

Precise Engineering Corporation has a contract with Quik Mart Stores to provide customized software for Quik’s inventory control system. Retail Outlets, Inc., Quik’s competitor, induces Sam, a Precise subcontractor who is writing code for the Quik software, to delay delivery […]

Corporate governance can be defined as the relationship between a corporation and its directors. A customer who writes a bad check may be subject to criminal prosecution. Answer: T Under Title VII of the Civil Rights Act of 1964, most […]

A contract is sometimes voidable if one party is aware that the other party made a mistake of fact. Patent infringement is a tort. Answer: T Federal law does not prohibit employers from classifying jobs as male or female. Answer: […]

A buyer may reject a seller’s goods under any circumstances. Bylaws are the internal rules of management for a corporation. Answer: T Some states require that a franchisor submit advertising aimed at prospective franchisees to the state for approval. Answer: […]

Picking pockets is larceny. Private parties cannot sue violators of Section 10(b) and Rule 10b-5. Answer: F An accountant is not liable for a misstatement to a purchaser of securities who knew of the misstatement but invested anyway. Answer: T […]

Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is a. prohibited. b. required. c. unnecessary. d. voluntary. Wings2Go Corporation fails to hold […]

When a breach of contract occurs, the innocent injured party has a duty to mitigate the damages. A certified check is a check that has been signed by a notary public. Answer: F A financing statement is effective for five […]

A trademark does not need to be registered to support a trademark infringement action. The establishment clause of the U.S. Constitution prohibits the federal government from establishing a state-sponsored religion. Answer: T An offer that a statute makes illegal terminates […]

Jane and Phil enter into a contract, but make a bilateral mistake. For the contract to be rescinded by either party, the bilateral mistake must be about a. a material fact. b. value. c. an opinion. d. a prediction. Rice […]

CheezBurger Heaven, Inc., conducts a chain-style franchise. This involves the transfer to Clive, one of its franchisees, of a. a license. b. a trade name. c. the formula to make a product. d. the ownership of the business. With respect […]

Summer Breeze, Inc., contracts for the sale of fifty ceiling fans to Island Dcor store. If Summer Breeze fails to deliver the goods, Island Dcor must commence a suit for breach of contract within a. four years. b. not more […]

Roslyn is an inventor. She has many tools, including a hammer, a handsaw and a drill. Roslyn has a patent on her most recent invention and she owns stock in Handy Appliances, Inc., which is a company that often uses […]

Liability insurance protects against liability imposed on the insured as a result of injuries to the person or property of another. Management may never legally limit unionizing activities. Answer: F A deficiency judgment requires a borrower to pay the amount […]

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when a. a debtor files forms designated for the purpose in a bankruptcy court. b. a debtor is unable to pay his or her debts as they come due. […]

Caramello Chip & Cookie Corporation (4C) obtains, and gives its employees, a list of the customers of Sugar & Spice Sales, Inc. (3S). Under the law that applies to trade secrets, 4C’s conduct is actionable provided a. consumers are confused. […]