Archives

1 Appendix A for Unit One Questions on the Features CHAPTER 3—INSIGHT INTO SOCIAL MEDIA: TO TWEET OR NOT TO TWEET INSIDE THE COURTROOM B1. Ginger and Holly are journalists in a courtroom hearing a case. The judge instructs them […]

1 Appendix B for Unit Two Questions on the Features CHAPTER 7—INSIGHT INTO ETHICS: WARNING LABELS FOR VIDEO GAMES B1. North Carolina enacts a statute that requires a label on a video game to warn parents when “the range of […]

1 Appendix C for Unit Three Questions on the Features CHAPTER 11—INSIGHT INTO ETHICS: CAN A COMPANY THAT SPONSORS A CONTEST CHANGE THE PRIZE FROM WHAT IT ORIGINALLY OFFERED? B1. Arnold enters a Bunco tournament hosted by Bunco Players Association […]

1 Appendix D for Unit Four Questions on the Features CHAPTER 20—INSIGHT INTO E-COMMERCE: TAXING WEB PURCHASES B1. Fleet Feet, an online travel company, buys blocks of rooms from Grande Hotel, a hotel in Harbor City, at a wholesale rate. […]

1 Appendix E for Unit Five Questions on the Features CHAPTER 26—INSIGHT INTO ETHICS: THE ETHICAL AND LEGAL IMPLICATIONS OF BREACHING COMPANY POLICY ON THE USE OF ELECTRONIC DATA B1. Nikita, an employee-agent of Operational Processes, Inc., is authorized to […]

1 Chapter 1 Law and Legal Reasoning TRUE/FALSE QUESTIONS B1. Laws and government regulations affect almost all business activities. ANSWER: T PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. The U.S. Constitution is the basis of all law in the United […]

1 Chapter 10 Criminal Law and Cyber Crime TRUE/FALSE QUESTIONS B1. In a criminal case, the state must prove its case by a preponderance of the evidence. ANSWER: F PAGES: Section 1 BUSPROG: Reflective AICPA: BB-Legal B2. The sanctions imposed […]

1 Chapter 11 Nature and Terminology TRUE/FALSE QUESTIONS B1. Contract law demonstrates which excuses our society accepts for breaking certain types of promises. ANSWER: T PAGES: Introduction BUSPROG: Analytic AICPA: BB-Critical Thinking B2. Contract law does not distinguish between promises […]

1 Chapter 12 Agreement in Traditional and E-Contracts TRUE/FALSE QUESTIONS B1. An offer must be practical to be effective. ANSWER: F PAGES: Section 1 BUSPROG: Reflective AICPA: BB-Legal B2. A request or invitation to negotiate is an offer. ANSWER: F […]

1 Chapter 13 Consideration TRUE/FALSE QUESTIONS B1. In contract law, the term consideration refers to the serious thought that underlies a party’s intent to enter into a contract. ANSWER: F PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. If a promise […]

1 Chapter 14 Capacity and Legality TRUE/FALSE QUESTIONS B1. A contract entered into by a minor is voidable at the option of either of the contracting parties. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. A person who […]

1 Chapter 15 Mistakes, Fraud, and Voluntary Consent TRUE/FALSE QUESTIONS B1. Voluntary consent may be lacking because of misrepresentation but not because of a mistake. ANSWER: F PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. A material fact is a fact […]

1 Chapter 16 The Writing Requirement and Electronic Records TRUE/FALSE QUESTIONS B1. Every state has a statute that stipulates what types of contracts must be in writing. ANSWER: T PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. The writing requirement […]

1 Chapter 17 Third Party Rights TRUE/FALSE QUESTIONS B1. An assignee’s rights are subject to the defenses that the obligor has against the assignor. ANSWER: T PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. As long as a contract is […]

1 Chapter 18 Performance and Discharge in Traditional and E-Contracts TRUE/FALSE QUESTIONS B1. The most common way to discharge one’s contractual duties is by breach of contract. ANSWER: F PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. If a contract condition […]

1 Chapter 19 Breach of Contract and Remedies TRUE/FALSE QUESTIONS B1. When one party breaches a contract, the other party can only sue for damages. ANSWER: F PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. A remedy is the relief provided […]

1 Chapter 2 Courts and Alternative Dispute Resolution TRUE/FALSE QUESTIONS B1. The federal courts are superior to the state courts. ANSWER: F PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. Laws would be meaningless without the courts to interpret and apply […]

1 Chapter 20 The Formation of Sales and Lease Contracts TRUE/FALSE QUESTIONS B1. The UCC applies only to the extent that it has been adopted a state. ANSWER: T PAGES: Introduction BUSPROG: Reflective AICPA: BB-Legal B2. The UCC views the […]

1 Chapter 21 Title, Risk, and Insurable Interest TRUE/FALSE QUESTIONS B1. Title and risk of loss can pass to the buyer from the seller before the goods are identified to the contract. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: […]

1 Chapter 22 Performance and Breach of Sales and Lease Contracts TRUE/FALSE QUESTIONS B1. Under the UCC, the aggrieved party is not limited to one exclusive remedy. ANSWER: T PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. Merchants are held to […]

Chapter 23 Warranties TRUE/FALSE QUESTIONS B1. In sales law, a warranty is an assurance by the seller or lessor about the quality and features of the goods being sold or leased. ANSWER: T PAGES: Introduction BUSPROG: Analytic AICPA: BB–Legal B2. […]

1 Chapter 24 International Law in a Global Economy TRUE/FALSE QUESTIONS B1. The major difference between international law and national law is that government authorities can enforce national law. ANSWER: T PAGES: Section 1 BUSPROG: Reflective AICPA: BB-Critical Thinking B2. […]

1 Chapter 25 Agency Formation and Duties TRUE/FALSE QUESTIONS B1. Agency relationships do not permeate the business world. ANSWER: F PAGES: Introduction BUSPROG: Analytic AICPA: BB-Legal B2. A familiar example of an agent is the owner of a corporation. ANSWER: […]

1 Chapter 26 Agency Liability to Third Parties and Termination TRUE/FALSE QUESTIONS B1. An executive officer of a corporation normally can conduct ordinary business transactions without obtaining written authority from the corporation. ANSWER: T PAGES: Section 1 BUSPROG: Analytic AICPA: […]

1 Chapter 27 Employment, Immigration, and Labor Law TRUE/FALSE QUESTIONS B1. Generally, under employment-at-will doctrine, an employer may fire an employee even if doing so would violate a federal or state statute. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: […]

1 Chapter 28 Employment Discrimination and Diversity TRUE/FALSE QUESTIONS B1. Title VII of the Civil Rights Act of 1964 applies to employers with fifteen or less employees. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. Intentional discrimination by […]

1 Chapter 29 Sole Proprietorships and Franchises TRUE/FALSE QUESTIONS B1. In choosing a form of business organization for a new enterprise, important factors include the ability to raise capital. ANSWER: T PAGES: Introduction BUSPROG: Reflective AICPA: BB-Critical Thinking B2. A […]

1 Chapter 3 Court Procedures TRUE/FALSE QUESTIONS B1. Procedural law does not have a significant impact on a person’s ability to pursue a legal claim. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Risk Analysis B2. The litigation process has […]

1 Chapter 30 Partnerships and Limited Liability Partnerships TRUE/FALSE QUESTIONS B1. No partner is deemed to be an agent of the other partners and of the partnership. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. A majority of […]

1 Chapter 31 Other Organizational Forms for Small Businesses TRUE/FALSE QUESTIONS B1. The law governing limited liability companies is uniform. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. Members of limited liability companies are shielded from personal liability […]

1 Chapter 32 Corporate Formation and Financing TRUE/FALSE QUESTIONS B1. The corporation is a creature of the common law. ANSWER: F PAGES: Introduction BUSPROG: Reflective AICPA: BB-Critical Thinking B2. One of the key advantages of the corporate form is the […]

1 Chapter 4 Business and the Constitution TRUE/FALSE QUESTIONS B1. In a federal form of government, the national government does not share sovereign power with the states. ANSWER: F PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Legal B2. The states can […]

1 Chapter 5 Business Ethics TRUE/FALSE QUESTIONS B1. Ethics is as well defined as the law. ANSWER: F PAGES: Introduction BUSPROG: Ethics AICPA: BB-Critical Thinking B2. Unless a corporation violates a law, its actions do not raise questions about the […]

1 Chapter 6 Torts TRUE/FALSE QUESTIONS B1. Two notions serve as the basis for all torts: wrongs and compensation. ANSWER: T PAGES: Section 1 BUSPROG: Analytic AICPA: BB-Critical Thinking B2. Tort law provides remedies for acts that cause personal injury […]

1 Chapter 7 Strict Liability and Product Liability TRUE/FALSE QUESTIONS B1. The extreme risk of an activity is a defense against imposing strict liability. ANSWER: F PAGES: Section 1 BUSPROG: Reflective AICPA: BB-Legal B2. People who keep domestic animals can […]

1 Chapter 8 Intellectual Property Rights TRUE/FALSE QUESTIONS B1. More than two hundred years ago, the Declaration of Independence recognized the importance of protecting creative works. ANSWER: F PAGES: Introduction BUSPROG: Reflective AICPA: BB-Legal B2. A famous trademark may be […]

1 Chapter 9 Internet Law, Social Media, and Privacy TRUE/FALSE QUESTIONS B1. In some states, an unsolicited e-mail must include a toll-free phone number that the recipient can use to ask the sender to send no more unsolicited e-mail. ANSWER: […]

A seller who makes a statement that relates to the value or worth of the goods creates an express warranty. Sellers are required to take precautions against every conceivable misuse of a product. Answer: F Bonds represent the borrowing of […]

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 […]

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 […]

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 […]

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 […]

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

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. A valid delegation of duties relieves the delegator of obligationsunder the contract. Answer: […]

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 […]

Dumping is the exporting of environmentally polluting goods to a foreign market. A quasi contract is an actual contract. Answer: F International law requires nations to honor the actions of other nations. Answer: F A bill of lading is a […]

Any written material, including information stored electronically, can be the object of a discovery request. Social media posts are routinely included in discovery in litigation. Answer: T A partner may pursue his or her own interests without automatically violating 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. On May 1, Newtown Motors, a used-car dealer, wrote a […]

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. When a corporation earns profits, it must pass them on to […]

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

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 […]

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

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. […]

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 […]

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. […]

In most legal controversies, there is one single correct result. The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state. Answer: T It is frequently the companies rather than courts or legislatures that […]

The decisions made by the courts establish the boundaries of the law as it applies to almost all business relationships. Intentional discrimination by an employer against an employee is known as disparate-treatment discrimination. Answer: T Each judge had his or […]

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. […]

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. FastBreak Inc. is dissatisfied […]

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. To complain about Discount Retail Corporations products, […]

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

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. […]

With a few exceptions, almost anything is patentable. 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 […]

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. Custom Auto Body & Detailing, LLC, is a limited […]

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. […]

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 […]

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 […]

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 […]

Organicos Café 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 […]

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 […]

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. A disclosed principal is liable to a third party for a contract made […]

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

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 […]

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

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. The Revised Model Business Corporation Act gives a close corporation less flexibilitythan other […]

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

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, […]

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. […]