The Legal Environment Of Business: Text And Cases 9th Edition

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

1 ANSWER: F PAGES: Section 1 TYPE: N 1 ANSWER: F PAGES: Section 1 TYPE: N 1 ANSWER: F PAGES: Section 1 TYPE: N Chapter 10 Contract Performance, Breach, and Remedies N.B.: TYPE indicates that a question is new, modified, or unchanged,

1 ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 11 Sales and Lease Contracts

1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 12 Torts

1 ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal Chapter 13 Strict Liability and Product Liability

1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Reflective AICPA: BB-Legal Chapter 14 Intellectual Property Rights

1 Chapter 15 Internet Law, Social Media, and Privacy N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of

1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 16 Creditor-Debtor Relations and Bankruptcy

1 Chapter 17 Small Business Organizations 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 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Legal Chapter 18 Limited Liability Business Forms

1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 19 Corporations

1 ANSWER: F PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal Chapter 2 The Court System

1 Chapter 20 Agency 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. = A question

1 ANSWER: T PAGES: Section 1 TYPE: = 1 ANSWER: T PAGES: Section 1 TYPE: = 1 ANSWER: T PAGES: Section 1 TYPE: = Chapter 21 Employment Relationships N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N

1 ANSWER: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal Chapter 22 Employment Discrimination

1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 23 Immigration and Labor Law

1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 24 Consumer Protection

1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 25 Environmental Law

1 ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 26 Real Property and Land Use Control

1 Chapter 27 Antitrust Law N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank. = A

1 Chapter 28 Investor Protection and Corporate Governance N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test

1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Reflective AICPA: BB-Critical Thinking 1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Reflective AICPA: BB-Critical Thinking 1 ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Reflective AICPA: BB-Critical Thinking Chapter 3 Alternative and Online

1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking Chapter 4 Business Ethics

1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Critical Thinking 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Critical Thinking 1 ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Reflective AICPA: BB-Critical Thinking Chapter 5 Business and the

1 ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 6 Administrative Agencies N.B.:

1 ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: T PAGES: Section 2 TYPE: + BUSPROG: Analytic AICPA: BB-Legal Chapter 7 Criminal Law and Cyber Crime

1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal 1 ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal Chapter 8 International Law in a Global Economy

1 Chapter 9 Formation of Traditional and E-Contracts N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test

The employees of Slaughterhouse Corporation designate Meatpackers Union as their bargaining representative. Slaughterhouse refuses to bargain with the union. This violates a. federal labor law. b. federal elections law. c. federal employment discrimination law. d. no federal law. Answer: A A A Corporate Security Company provides other firms with security services. Questions of what is ethical involve the extent

The breadth of the commerce clause permits the government to legislate only in areas in which Congress has explicitly been granted power. Answer: F F F A straight majority vote of the shares represented at a shareholders' meeting is usually required to pass resolutions. Answer: T T T Any agreement that restricts output among competitors is a per se violation of

Detroit Automotive Company (DAC) agrees with its employees' union not to buy any nonunion-produced component parts from other firms for use in DAC products. This is a. a hot-cargo agreement. b. a secondary boycott. c. a closed shop. d. a lockout. Answer: B B B Fact Pattern 27-1 Natural Gas, Inc., and Olio Energy Company refine and sell natural

The Federal Reserve Board of Governors has issued a regulation that governs credit provisions associated with sales contracts'Regulation Z. Answer: F F F Religious rules generally are absolute with respect to the behavior of their adherents. Answer: T T T Clearly, a judge's function is to make the laws. Answer: F F F Account numbers on credit-card receipts must be truncated (shortened). Answer: T T T Answer: Few countries guarantee compensation

Owen, a counter clerk at Pastry Bakery, notices that the bakers are not wearing protective gloves while preparing baked goods, a violation of state law. Owen reports this to Quinn, the owner, who does nothing. Owen tells Roberta, a reporter for STUV, a local television station. STUV reports the violations

Babs sees an e-book reader on the porch of Coco's house, takes the reader to her home, and tells everyone she owns it. Danno, wielding a knife, forces Easter to give him her smartphone, and runs away with it. Fritz breaks into Ginger's apartment, takes a laptop, and leaves. Hazel

The functions of the National Transportation Safety Board, like those of other federal administrative agencies, include a. adjudication. c. declaration. b. enunciation. d. pronunciation. Answer: A A A Sales & Revenue, Inc., discovers that defamatory statements about its policies and products are being posted in an online forum. TransWeb Inc., the Internet service provider whose users are posting the

An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract. Answer: F F F Restaurants must post guidelines on the number of calories that an average person requires daily. Answer: T T T The parties to a sales or lease contract can expressly provide for remedies in addition to those

The Securities and Exchange Commission does not enforce the antifraud provisions of the securities laws in the online environment. Answer: F F F Facilitation is adversarial in nature. Answer: F F F Under the Age Discrimination in Employment Act of 1967 permits private cause of action against employers for age discrimination. Answer: T T T Answer: The crime of theft requires only the taking of another

Odell invents 'Profits Unbound,' new stock-trading algorithm software, and applies for a patent. If Odell is granted a patent, his invention will be protected a. for ten years. b. for twenty years. c. for the life of the inventor plus seventy years. d. forever. Answer: B B B Ultrahazard Removal & Disposal Corporation transports radioactive materials. Vincent, an Ultrahazard employee, is

Ralph founds Signify Inc. to make and sell products bearing the names of Tau Kappa Epsilon (TKE) and other fraternities and sororities. Among other venues, Signify sells its products online through Web sites that incorporate the fraternities' and sororities' names and abbreviations into the URLs'for example, 'tkestuff.com''without their permission. On

Nguyen has her family buy and ship textbooks legally produced in Vietnam to her for resale in the United States. The U.S. owners of the copyrights on the items file a suit against Nguyen, alleging infringement. Applying a decision of the United State Supreme Court in a similar case, the

Blayne is an employee of Chemical Refinery, Inc. Blayne is threatened with a discharge when he refuses a transfer to a Chemical Refinery department in which several employees suffered serious injuries from exposure to hazardous chemicals. Blayne may be entitled to protection from discharge under a. no law. b. the Family and Medical

Vito borrows $110,000 from Watershed Bank to buy a home. If he fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is a. a short sale. b. forbearance. c. foreclosure. d. the right of redemption. Answer: C C C Hillside Vineyards is a family limited

Under a theory of market-share liability, a manufacturer sells 'shares' of its potential strict liability and thereby spreads the risk and the cost. Answer: F F F In the context of Section 16(b) of the Securities Exchange Act of 1934, insiders include officers, directors, and large stockholders of Section 12 corporations. Answer: T T T Intentional discrimination by an employer

There are no significant differences between a trial and an administrative hearing. Answer: F F F According to the United States Supreme Court, the First Amendment prevents limits from being placed on independent political expenditures by corporations. Answer: T T T A famous trademark may be diluted only by the unauthorized use of an identical mark. Answer: f f f A party can be directly

Kimberly, the owner of Littleton Cinema, trusts Max to manage the theater's daily cash flow. One night, without Kimberly's knowledge or consent, Max takes and keeps $1,000 from the receipts. This is most likely a. embezzlement. b. larceny. c. robbery. d. burglary. Answer: A A A George borrows funds from Hometown Credit Union (HCU) to buy real property. George

The majority rule controls decisions that significantly affect the nature of the partnership or that are outside the ordinary course of the partnership business. Answer: F F F When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises. Answer: T T T International law requires nations to honor the actions of other

Negligence per se may occur if an individual violates a statute or an ordinance providing for a criminal penalty and the violation causes another to be injured. Answer: t t t States do not have trademark statutes. Answer: F F F There is one set of ambient standards'maximum permissible levels of certain pollutants'and the Environmental Protection Agency formulates plans to

Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract. When Nina breaches the contract, Michael obtains an award of damages in an Irish court. He asks a U.S. court to enforce the award. The U.S. court defers to and enforces the Irish

Neville files a suit against Olina. If Olina fails to respond, a. Neville must appeal the case to a different court. b. Olina's failure to respond will be considered to be a denial. c. Neville will not be awarded the remedy sought. d. Olina will have a default judgment entered against her. Answer: D D D Otto is considering

Donald approves on behalf of Evelyn'but without authorization'a contract with Farouk to build a new silo. Evelyn does not ratify the contract. The deal with Farouk is a. an enforceable contract with Donald. b. a voidable contract. c. an enforceable contract with Evelyn. d. an unaccepted offer. Answer: D D D Fine Food Company, Gourmet Cheeses, Inc., and Healthy

An action may be legal but not ethical. Answer: T T T Market power is the ability of a firm to enter a given market. Answer: F F F The first person to invent a product obtains the patent rights rather than the first person to file an application for a patent. Answer: F F F A contract will be discharged if supervening circumstances

An involuntary bankruptcy occurs when the debtor forces his or her creditors into bankruptcy proceedings. Answer: F F F In a limited partnership, a general partner's dissociation from the firm normally will lead to dissolution unless all partners agree to continue the business. Answer: T T T Lori claims that she suffered injuries in an auto accident with an uninsured

Grid Tool Company makes and sells tools. One of the tools is believed to be haz- ardous. The appropriate government agency may require Grid to a. export the tool and sell it only abroad. b. increase the price to cover the cost of any injuries or damage. c. reduce the price to indicate the

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights. Answer: F F F The Foreign Sovereign Immunities Act broadly defines commercial activity. Answer: T T T Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in advance. Meals Catering pays

A service mark distinguishes products used by those in public service. Answer: F F F The contract term 'free on board' indicates that the selling price of goods includes transportation costs to the specific F.O.B. place named in the contract. Answer: T T T Under the Clean Water Act, criminal penalties apply whether a violation was intentional or unintentional. Answer: F F F Private parties can

HVAC Heating & Air Conditioning, Inc., is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that HVAC's financial results are accurate and timely, the firm's senior officers must set up and maintain a. internal 'disclosure controls and procedures.' b. external

During a dispute with Musicale Productions Inc., National Stagehands Union asks the National Labor Relations Board (NLRB) for a ruling. The NLRB rules against Musicale. The employer may appeal the decision to a. the appropriate state court. b. the appropriate U.S. court of appeals. c. the president of the United States, who has

Dixie, a driver for Express Delivery Company, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spreads quickly to a construction site a block

The United Nations Convention on Contracts for the International Sale of Goods (CISG) is the uniform international sales law of countries that account for more than two-thirds of all global trade. Answer: T T T On May 1, Bobbi-Ann, a real estate agent, and Corporate Properties, Inc., a commercial property owner, sign an agreement about the

When workers must be laid off, an employer must consider union participation in deciding whom to fire. Answer: F F F The Consumer Product Safety Commission is the primary agency that issues regulations on food labeling. Answer: F F F The goal of mediation is to work out a resolution that benefits both sides to a dispute. Answer: fT fT fT A limited liability company

A seller is prohibited from charging different prices to competing buyers for identical goods or services. Answer: T T T Advertising that contains an endorsement by a celebrity will not be deemed deceptive. Answer: F F F Federal agencies must consider ways to reduce the economic impact of new regulations on small businesses. Answer: T T T Abuse of process applies to any person using

Employees at Resource Industries, Inc., want to form into a single union. To constitute an appropriate bargaining unit, a group of workers must have a. a mutuality of interest. b. at least one member of management willing to join the union. c. dissimilar levels of skills and qualifications. d. geographical disparity. Answer: A A A Demario and Evander want

Carney & Deb, Accountants, perform a variety of tasks for their clients'financial statements and tax returns, for example. To accomplish these tasks, Carney & Deb collects their clients' personal and financial information. Carney & Deb can store the personal and financial information of its clients on any electronic device, including

The act of state doctrine provides that the judicial branch of one country will examine the validity of public acts committed by a recognized foreign government within the latter's own territory. Answer: F F F If a person in custody is to be subjected to interrogation, he or she must first be informed in clear

The U.S. Food Safety and Inspection Service conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in a. all industries. b. highly regulated industries. c. no industries. d. newly regulated industries only. Answer: B B B Milo publishes a book titled No Equals, which includes a chapter from Paige's copyrighted book Olympic Champions.

Dave and Ellen enter into a contract via e-mail. When a dispute arises over the performance of the deal, Dave files a suit against Ellen. The emerging body of law that governs transactions conducted via the Internet is referred to by the term a. cyberlaw. b. civil law. c. equitable maxims. d. IRAC. Answer: A A A Slow-Brew Coffee

The operations of Commercial Concrete, Inc., are major sources of air pollution. These operations must use a. the absolutely cleanest air technology. b. the best available filter technology. c. the maximum achievable control technology. d. the most affordable scrubbing technology. Answer: C C C Paige applies to work for Quibbling & Company. Reece applies for admittance to State University.

Legislative rules simply declare policy and do not affect legal rights or obligations. Answer: F F F Warrants are required to conduct administrative searches in all highly regulated industries. Answer: F F F Veronica is a repairperson for Wind Power Company. The job requires traveling to remote areas to make repairs to windmills, transmission towers, and power stations under any

Most states do not enforce agreements to arbitrate disputes between private parties. Answer: F F F Answer: A joint effort by businesspersons to obtain legislative action can be exempt from the antitrust laws. Answer: T T T When a debtor has no assets, creditors are notified of the debtor's petition for bankruptcy but are instructed not to file a claim. Answer: T T T Courts are

Business Enterprise Company agrees to sell a commercial office building and parking garage to City Investments, Inc., which assigns the rights to the realty to Downtown Properties, LLC. Downtown Properties does not yet exist, but once it is created and comes into existence, the contract on novation will most likely

A request or invitation to negotiate is an offer. Answer: F F F The term police powers encompasses just the enforcement of criminal laws. Answer: F F F Intended beneficiaries can sue to enforce a contract. Answer: T T T Attempted monopolization is a violation of antitrust law. Answer: T T T Once a registration statement has been filed, a waiting period begins while the Securities and Exchange Commission

A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful. Answer: T T T The Securities and Exchange Commission (SEC) requires companies to file certain information electronically so that it can be posted on the SEC's EDGAR

When the harassment of co-workers creates a hostile working environment, an employee may have a cause of action against an employer. Answer: T T T Administrative agencies at various levels of government work together and share the responsibility of enforcing particular regulations. Answer: t t t Data Analytics, Inc., and eProducts Corporation market competing software products. Data Analytics launches an

A territorial or customer restriction is currently considered a per se violation of antitrust law. Answer: F F F In mediation, the mediator proposes a solution and makes a decision resolving the dispute. Answer: F F F An injured party may sue only the manufacturer of defective products that are subject to comprehensive federal regulatory schemes. Answer: F F F Answer: A sale of real estate is a

Island Breeze Company designs and makes desk, window, and ceiling fans. In a product liability suit based on negligence, Island Breeze could be liable for violating its duty of care with respect to all of the following except a. the design of the fans. b. the production process used to make the

An employer can refuse to bargain collectively with an elected employee representative. Answer: F F F People who keep domestic animals are strictly liable for any harm inflicted by the animals. Answer: F F F When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership. Answer: F F F Agency relationships do not permeate the

Public water systems operators must come as close as possible to meeting the Environmental Protection Agency's standards by using any available technology that is economically and technologically feasible. Answer: F F F The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state. Answer: T T T A successful defense releases the defendant from partial

A court of appeals does not hear any evidence. Answer: T T T Employers are not required to modify their job-application and selection process so that those with disabilities can compete for jobs with those who do not have disabilities. Answer: F F F In 2005, Recreation & Relaxation Corporation began making and selling all-terrain vehicles (ATVs) under the mark 'R&R.'

The Long-haul Truckers Association wants the federal government to spend funds to build a new highway. Congress can spend revenues a. only to carry out its enumerated powers. b. to promote any objective that it deems worthwhile. c. as long as the funds are spent uniformly among the states. d. without regard to whether

Business Solutions Corporation (BSC) sells business application software'wage, price, and inventory coordinating programs, for example'in different combinations and packages, at different prices, downloadable online. To complete a deal, a purchaser clicks on a button that, with reference to certain terms, states, 'I agree.' What is this sort of agreement called?

Gold & Sweet Company bottles and sells maple syrup from its plant in Vermont. On the labels is a logo that states '100% Genuine New England Maple Syrup Certified by the Northeast Maple Syrup Harvesters Association.' This logo is a. a certification mark. b. none of the choices. c. a service mark. d. trade dress. Answer: A A A EZ

Moral pressure constitutes false imprisonment. Answer: F F F If a limited liability company (LLC) agreement does not cover a topic, the state LLC statute will govern. Answer: T T T One can join a partnership even if all other partners do not consent. Answer: F F F A publicly held corporation is any corporation whose shares are publicly traded in a securities market. Answer: T T T It is

SmartPhone Company's ad states that its product is 'The Best 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 order. d. none of the choices. Answer: D D D Elsa participates in an investigation into possible violations of the

The Association of Organic Food Producers, which does not include all organic farmers and ranchers, refuses to deal with any parties who do not carry the products of its members. This group boycott is a. a situation that neither restrains trade nor harms competition. b. a legal restraint of trade. c. a per se

Liu enters Mountain Triathlon, an athletic competition in which Liu has never competed. Regarding the risk of injury, Liu assumes the risks a. attributable to the triathlon in any way. b. different from the risks normally associated with the triathlon. c. greater than the risks normally associated with the triathlon. d. normally associated with

Toro, S.A., which is based in Mexico, enters into a contract for the purchase of portable livestock fencing from United Fencing Company, which is based in the United States. This contract is governed by a. Mexican law. b. the provisions in the laws of both countries that are similar. c. the Uniform Commercial

Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. If Ambrose breaches the contract, Belle Vista's remedy would most likely be a. a certain ratio of the amount that Ambrose expected to invest in the project. b. a percentage of Ambrose's

An occurrence or event that makes performance temporarily impossible operates to discharge the parties' contractual duties. Answer: F F F The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether information omitted or misrepresented in connection with the purchase or sale of a security is

A limited liability company must be managed by nonmembers. Answer: F F F A union may threaten an employee with the loss of a job for failure to join the union. Answer: F F F An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency. Answer: T T T On a partner's dissociation, the partner's duty of

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

Ethics is as well defined as the law. Answer: F F F The clerk of a bankruptcy court must provide consumer-debtors with information on the types of services available from credit counseling agencies. Answer: t t t Shareholders own the corporation, and they have legal title to corporate property. Answer: F F F U.S. antitrust laws may be applied to protect foreign consumers and competitors from

Helene, a disabled person, applies for a job at Industrial Engineering Applications Inc. for which she is well qualified, but for which she is rejected. Industrial Engineering continues to seek applicants and eventually fills the position with a person who is not disabled. Helene is most likely to succeed in

The element of bargained-for exchange distinguishes contracts from gifts. Answer: T T T A court's review of an arbitrator's award may be restricted. Answer: T T T The First Amendment does not require a complete separation of church and state. Answer: T T T There are three broad classifications of torts: intentional torts, unintentional torts, and accidental torts.. Answer: F F F Ron is a limited partner, and Steve is

The National Pollutant Discharge Elimination System focuses on industrial wastewater and storm water discharges. Answer: F F F No federal court has held that digitally sampling a copyrighted sound recording of any length constitutes copyright infringement. Answer: F F F Persons cannot share ownership rights simultaneously in particular property (including real property and personal property)'one person's interest is always superior. Answer: F F F Employees

Social media posts are routinely included in discovery in litigation. Answer: T T T Under the UCC, good faith means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. Answer: T T T Any written material, including information stored electronically, can be the object of a discovery request. Answer: T T T National Pollutant Discharge Elimination System permits

The litigation process has three phases: filing, answering, and appealing. Answer: F F F Marketable title means that the grantor's ownership is saleable even if there are encumbrances or defects. Answer: F F F Liens generally take priority over other claims against the same property. Answer: t t t The sanctions imposed on criminal wrongdoers are the same as those applied in civil cases. Answer: F F F Few civil

Street Bikes, Inc., makes and sells a bicycle to Theo. Street Bikes fails to exercise 'due care' to make the bicycle safe, however, and Theo is injured as a result. Street Bikes is most likely liable for a. market-share liability. b. none of the choices. c. negligence. d. product misuse. Answer: C C C Merlin is a drug addict

It is guaranteed that any judgment will be enforceable. Answer: F F F Acting in good faith gives a business firm a better chance of defending its actions in court. Answer: T T T Erin contracts in writing to sell her Ford-brand pick-up truck to Garth for $10,500. Erin agrees to deliver the truck on Friday, and Garth promises to

The law imposes strict product liability as a matter of public policy based in part on the assumption that manufacturers can better bear the costs associated with injuries caused by their products. Answer: T T T In arbitration, the third party's decision may be legally binding or nonbinding. Answer: T T T Some of the employees of Righteous Apps, Inc.,

Seiko works for TallTales Publishing, Inc. The basis for Seiko's contribution under the Federal Insurance Contribution Act to help pay for benefits that will partially make up for her loss of income on retirement is her a. seniority at TallTales. b. annual wage base. c. special job skills. d. county of residence. Answer: B B B Mouth & Gums,

The possession of monopoly power is the only element needed to establish the offense of monopolization. Answer: F F F The articles of incorporation serve as a primary source of authority for the corporation's future organization and business functions. Answer: T T T The Food and Drug Administration does not have the authority to directly recall any food products that it

Generally, under the employment-at-will doctrine, an employee may quit a job at any time for any reason. Answer: T T T A limited liability partnership may exempt its partners from personal liability for any partnership obligation. Answer: T T T Once immunity is given, a person has an absolute privilege against self-incrimination and can no longer refuse to testify on

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity. Linc is most likely a victim of a.

State and federal transportation agencies may issue regulations that conflict. When a state regulation conflicts with a federal regulation a. the federal regulation takes precedence. b. the state regulation takes precedence. c. the regulations are mutually void. d. the regulations are of equal effect. Answer: A A A Qatar Global Investments is a foreign entity'a firm owned and operated

The importation of goods that infringe U.S. patents is not prohibited. Answer: F F F A compulsory arbitration in a consumer contract may be unconscionable. Answer: T T T A patent applicant must demonstrate that an invention is 'commercially practicable' to receive a patent. Answer: f f f Damages that compensate the nonbreaching party for the loss of a bargain are known as consequential damages. Answer: F F F Statutes of

The types of product defects that have traditionally been recognized in product liability law include manufacturing defects. Answer: T T T When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court. Answer: F F F Under the Fourth Amendment, general searches through a person's belongings are permissible. Answer: F F F National effluent (pollution) standards are

Puffery constitutes deceptive advertising. Answer: F F F Courts apply the assumption of risk doctrine only in emergency situations. Answer: F F F One of the basic elements of zoning is the classification of land by permissible use as part of a comprehensive municipal plan. Answer: T T T In a federal form of government, the national government does not share sovereign power with the

1 ANSWER: D PAGES: Section 5 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking 1 ANSWER: D PAGES: Section 5 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking 1 ANSWER: D PAGES: Section 5 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking Appendix A for Unit One

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

1 ANSWER: A PAGES: Section 2 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: A PAGES: Section 2 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: A PAGES: Section 2 TYPE: N BUSPROG: Reflective AICPA: BB-Legal Appendix B for Unit Two Questions

1 ANSWER: D PAGES: Section 3 TYPE: = BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: D PAGES: Section 3 TYPE: = BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: D PAGES: Section 3 TYPE: = BUSPROG: Reflective AICPA: BB-Legal Appendix D for Unit Four Questions on

1 ANSWER: D PAGES: Section 4 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: D PAGES: Section 4 TYPE: N BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: D PAGES: Section 4 TYPE: N BUSPROG: Reflective AICPA: BB-Legal Appendix E for Unit Five Questions on

1 ANSWER: A PAGES: Focus on Ethics TYPE: = BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: A PAGES: Focus on Ethics TYPE: = BUSPROG: Reflective AICPA: BB-Legal 1 ANSWER: A PAGES: Focus on Ethics TYPE: = BUSPROG: Reflective AICPA: BB-Legal Appendix F for Unit Six