Cengage Advantage Books: Business Law: Text and Cases - The First Course 1st Edition

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A seller who makes a statement that relates to the value or worth of the goods creates an express warranty. Answer: F Answer: F Answer: F Sellers are required to take precautions against every conceivable misuse of a product. Answer: F Answer: F Answer: F Bonds represent the borrowing of funds by firms. Answer: T Answer: T Answer: T Because corporations are not

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Lights place and assume all of its rights and duties under the contract. This is a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. a settlement agreement. Answer:

Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of the consideration. b. not question the adequacy of the consideration. c. rewrite the deal after questioning the adequacy

Larry enters into a contract with Motivational Education Services to host a panel discussion at a sales conference. When the conference is postponed indefinitely, Larry asks a court to cancel the contract and return the parties to the positions that they held before its formation. This request involves a. specific performance. b.

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

Federal law allows the intentional interception of any wire, oral, or electronic communication. Answer: F Answer: F Answer: F Corporate officers and directors may be held criminally liable for the actions of employees under their supervision. Answer: T Answer: T Answer: T The federal courts are superior to the state courts. Answer: F Answer: F Answer: F Generally, a contract must express

The United Nations Convention on Contracts for the International Sale of Goods provides international sellers and buyers with remedies very different to those available under the UCC. Answer: F Answer: F Answer: F A valid delegation of duties relieves the delegator of obligationsunder the contract. Answer: F Answer: F Answer: F The agent has the right to be

At an auction for the first time, Dulcineabids on a one-hundred-year-old Edison-brand phonograph, believing that it is worth more than the price asked. When the item proves to be less valuable, Dulcinea is a. liable on the bid. b. not liable on the bid because Dulcinea overestimated the value of the auctioned

Dumping is the exporting of environmentally polluting goods to a foreign market. Answer: F Answer: F Answer: F A quasi contract is an actual contract. Answer: F Answer: F Answer: F International law requires nations to honor the actions of other nations. Answer: F Answer: F Answer: F A bill of lading is a receipt signed by a warehouse for goods

Any written material, including information stored electronically, can be the object of a discovery request. Answer: T Answer: T Answer: T Social media posts are routinely included in discovery in litigation. Answer: T Answer: T Answer: T A partner may pursue his or her own interests without automatically violating the partners fiduciary duties to the partnership and the

The Americans with Disabilities Act of 1990 defines persons with disabilities as persons with physical or mental impairments that 'substantially limit one or more everyday activities of the affected individuals. Answer: T Answer: T Answer: T On May 1, Newtown Motors, a used-car dealer, wrote a letter to OReilly,which stated, "We have a 1969

A collateral promise is one made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform. Answer: T Answer: T Answer: T When a corporation earns profits, it must pass them on to shareholders in the form of dividends. Answer: F Answer: F Answer: F The

The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract. Answer: F Answer: F Answer: F International contracts rarely include arbitration clauses. Answer: F Answer: F Answer: F The principle of comity basically refers to legal reciprocity. Answer: T Answer: T Answer: T A warranty of good title means that a seller warrants that he

Leif contracts to sell his Micro Brewery & Pub to Naomi on April 1. On March 15, Leif tells Naomi that he will not go through with the deal. Naomi can recover a. the cost of any property that Naomi would find suitable. b. the cost of a similar, nearby brewery and pub. c.

The element of bargained-for exchange distinguishes contracts from gifts. Answer: T Answer: T Answer: T An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation. Answer: T Answer: T Answer: T The term consideration refers to the legality of the subject matter of a contract. Answer: F Answer: F Answer: F Floramariais

Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian Security agrees to provide security services for Hedge Fund offices for as long as Hedge Fund needs them. This contract may be enforceable by a. Guardian Security only. b. Hedge Fund only. c. any interested third party, such

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

Suisse Internationale, a Swiss maker of athletic equipment, enters into a price fixing agreement with Total World Sports, a U.S. wholesaler of Suisses products. U.S. courts will apply U.S. antitrust laws if a. the agreement was made in Switzerland. b. the agreement was made in the United States. c. the price fixing has

In most legal controversies, there is one single correct result. Answer: F Answer: F Answer: F The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state. Answer: T Answer: T Answer: T It is frequently the companies rather than courts or legislatures that are defining the privacy rights of their online users. Answer:

The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships. Answer: T Answer: T Answer: T Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination. Answer: T Answer: T Answer: T Each judge had his or her personal beliefs and philosophy, which shape the

Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd., a Canadian firm, to give Pharma the right to sell Optimas products in Canada. This is a. a distribution agreement. b. a joint venture. c. direct exporting. d. licensing. Answer: A Answer: A Answer: A Porches & Verandas, Inc., agrees to build a screen porch for

GreatGro, Inc., makes genetically modified seedswith properties that are identical to Hearty Harvest Corporations patented seeds, without Hearty Harvests permission. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. not infringement. Answer: B Answer: B Answer: B FastBreak Inc. is dissatisfied with its ranking in Google Inc.s search results. FastBreak files a suit

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to a. damages. b. nothing more. c. to be excused from performance. d. suspend performance. Answer: B Answer: B Answer: B To complain about Discount Retail Corporations products, Edsel opens a Web site with the domain name "discountretailcorporationsucks.com. Discount Retail

No federal court has held that digitally sampling a copyrighted sound recording of any length constitutes copyright infringement. Answer: F Answer: F Answer: F Federal wiretapping law covers electronic forms of communication. Answer: F Answer: F Answer: F Oral evidence of the modification of a contract after its making can be introduced at a trial. Answer: T Answer: T Answer:

Big Deal! Marketing Company, a U.S. firm, signs a contract with Comercio Exterior, Ltd., a Chilean firm, to give Comercio the right to use Big Deal!s animation techniques and characters in product promotions. This is a. a distribution agreement. b. a joint venture. c. direct exporting. d. licensing. Answer: D Answer: D Answer: D Band Instruments, Inc., sells

With a few exceptions, almost anything is patentable. Answer: T Answer: T Answer: T Every sale or lease of goods made by a merchant who deals in goods of the kind sold or leased automatically gives rise to an implied warranty that the goods are fit for a particular purpose. Answer: F Answer: F Answer: F Under the UCC,

Mallory promises to buy illegal digital copies of movies from Napoleon, who promises to deliver on October 31. These promises are most likely a. enforceable. b. valid. c. void. d. voidable. Answer: C Answer: C Answer: C Custom Auto Body & Detailing, LLC, is a limited liability company. Unless indicated otherwise on the Custom Autos federal tax form,

In selling a commercial building, Birdie tells Colt that theproperty has a certain capacity, making it suitable for a nightclub. Birdie knows nothing about the capacity of the building, but it is not as she specifies. Colt buys the building. Under these circumstances, Colts best course of action is most likely

The U.S. Congress enacts a new federal statute that imposes liability on businesses hiring employees without verifying their citizenship status. This statute applies a. only to businesses not covered by state law. b. only to those states that consent to apply it. c. to all of the states. d. to none of the states. Answer:

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. Lincis most likely a victim of a. opinion. b.

Moses sells an apartment building to Noellewith a promise to install a newheating and air conditioning systembefore September The following February 1, Moses sends Ollie, anHVAC technician, to begin the installation. Noelle orders Ollieto leave and refuses to make further payments to Moses, who files a suit against Noelle. Mosess late attempt

Organicos Caf orders five gallons of PureMaid-brand transfat-free olive oil from Quico Cooking Supplies, Inc. Quico mistakenly ships soy oil, which Organicos keeps, despite the nonconformity. The oil is destroyed in a fire. The loss is suffered by a. all of the parties as tenants in common in equal measure. b. PureMaid. c.

Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to Protestant churches that provide certain services to persons whose income is below the poverty level. Price-LoMart files a suit to block the laws enforcement. The court would likely hold that this law violates a.

Under the Anti-Counterfeiting Trade Agreement, member nations are required to establish border measures that allow officials to search commercial shipments of imports and exports for counterfeit goods. Answer: T Answer: T Answer: T A disclosed principal is liable to a third party for a contract made by the agent acting within the scope of

A contract for a sale of goods priced at $501 must be in writing to be enforceable. Answer: T Answer: T Answer: T A void contract imposes certain legal obligations on the parties but is not otherwise enforceable. Answer: F Answer: F Answer: F Oral evidence of otherwise clear terms in a contract can be introduced at a

Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners. Bryn, Cornell, and Duke

The law considers all new, single-owner businesses to be sole proprietorships unless the owner affirmatively adopts some other form. Answer: T Answer: T Answer: T A right can be assigned even if the assignment will significantly alter the risks or duties of the obligor. Answer: F Answer: F Answer: F The alter-ego theory can be applied to a

Under the UCC, a firm offer for a sale or lease of goods made by a merchant without consideration can be revoked at any time before acceptance. Answer: F Answer: F Answer: F The Revised Model Business Corporation Act gives a close corporation less flexibilitythan other corporations in determining its rules of operation. Answer:

Although cases may be similar, no two cases are ever identical in all respects. Answer: T Answer: T Answer: T Religious rules generally are absolute with respect to the behavior of their adherents. Answer: T Answer: T Answer: T Statutes of repose places outer times limit on product liability actions. Answer: T Answer: T Answer: T A law that prohibits or inhibits

While a minor, Uri misrepresents his age as twenty-one to purchase a motorbike from Vans Dirt Bikes & Scramblers. Ordinarily, Uri can a. disaffirm the contract but must return the motorbike. b. none of the choices. c. ratify the contract, keep the motorbike, and recover any payments that he made to Vans. d. reject

A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void. This ordinarily prohibits a. any assignment. b. no assignment. c. only an assignment of contract rights to personal services. d. only an assignment that would change the obligors risk. Answer: a Answer: a Answer: a Maggie and Nate enter