Under the CISG, acceptance is effective only upon receipt.
a. True
b. False
Rationalization is an effective means of analysis for ethical issues.
a. True
b. False
UETA does not apply when there is an applicable statute of frauds.
a. True
b. False
Under the Consumer Product Safety Improvement Act a reseller of goods cannot be
liable for selling toys or other products with lead paint because the reseller did not
manufacture the goods.
a. True
b. False
Discuss which of the following questions would be violations of Title VII and why. a.
“So, what does your husband do?”
b. “Are you old enough to remember the Eisenhower days?”
c. “Who cares for your children while you work?”
Which of the following parties could the EPA hold liable for toxic leaks from an
underground storage tank?
a. current owner
b. past owner
c.current operator
d.all of the above
Britney Spears is an example of a public figure for purposes of proving malice.
a. True
b. False
The Export Trading Company Act of 1982:
a. permits combinations of U.S. firms for purposes of international competition.
b. is part of NAFTA.
c. is under judicial challenge by the Justice Department.
d. is a tariff provision in the U.S.
Under the Lilly Ledbetter Act, how much time do victims of discrimination have to file
suit on their allegations?
a. 180 days
b. 180 days from the first discriminatory event
c.180 days from the time they learn of the discriminatory event
d.Three years from the time of the first event
An FOIA request (to be valid):
a. must be in writing.
b. must describe the reason the documents are sought.
c. can request any information in an agency’s file.
d. must include prepayment of copy fees.
Contributory negligence, if established, is a complete defense to negligence.
a. True
b. False
Under Sarbanes-Oxley, loans to corporate officers are prohibited.
a. True
b. False
In the Christie’s and Sotheby’s case, the alleged violation was:
a. tying.
b. price discrimination.
c.FTC Act violations.
d.price fixing.
e. none of the above
The Joneses are interested in purchasing new carpet for their family room and note an
ad in the paper from Carpet World for carpet at $9.99 per square yard, with pad, fully
installed.When the Joneses go to Carpet World, the salesman tells them there is a
handling fee of $2.99 per square yard on the advertised special, but he can show them a
better carpet for $14.99 per square yard.Which of the following statements is true?
a. Since the Joneses are free to leave and buy elsewhere, there are no FTC violations by
the ad.
b. If the Joneses choose the $14.99 carpet, there is no violation of FTC regulations.
c.Carpet World’s ad and tactics constitute bait and switch.
d.none of the above
Workers’ compensation systems cover only physical injuries not problems stemming
from stress.
a. True
b. False
The federal statute that carries imprisonment as a penalty for trading securities on inside
information is an example of a:
a. private law.
b. civil law.
c.procedural law.
d.criminal law.
e. all of the above
Galley, Inc.has a contract for operating the kitchen at the Palm Crest Hotel in Miami,
Florida. Mealco has approached Palm Crest’s director of operations and stated, “Look,
sign with us. We’ll take care of whatever damages you owe Galley.” Suppose Mealco
added the following phrase, “Galley is going under fast. They haven’t paid rent in five
months and their rent is $15,000 per month.” Galley is current on its rent, and its rent is
$5000 per month. Mealco’s statements:
a. are defamatory.
b. constitute the tort of negligence.
c.are covered under the shopkeeper’s privilege.
d.none of the above
Coca-Cola found a fungicide in its Simply Orange and Minute Maid orange juices. The
fungicide was the result of a spray used by Brazilian orange growers who then sold
their oranges to Coca-Cola. Which best describes Coca- Cola’s liability to customers
who purchase the juice?
a. Coca-Cola is not liable because it did not know about the fungicide.
b. The Brazilian growers are not liable because there is no privity with the juice
purchasers.
c.Coca-Cola is liable for a defect in its products.
d.Coca-Cola is liable under tort theory but not contract.
A nuisance must be a public nuisance to be actionable.
a. True
b. False
Abe and Gabriel entered into a contract for Abe to furnish landscaping services for
Gabriel’s office complex. The contract provides the fee will be $75 per month. At the
time Gabriel signs the agreement, the two discuss the fact that the services required in
the winter will be less and the fee will be reduced to $50 per month. Abe adds as
Gabriel is signing, “I just forgot to put that sliding scale in this contract. Don’t worry –
I’ll take care of it because we understand each other.” Gabriel:
a. will be permitted to introduce evidence about the winter fee reduction.
b. will only need to pay $50 during the winter months.
c.will pay $75 per month every month because of parol evidence.
d.none of the above
Corporate political speech enjoys less First Amendment protection than individual
political speech.
a. True
b. False
Which of the following is not a benefit of using ethics as a business strategy?
a. firm’s profits increase
b. affords opportunity for planning
c.creates goodwill in the community
d.All of the above are benefits.
The Money Laundering Control Act:
a. applied only to financial institutions.
b. prohibited concealing or disguising sources of funds.
c. both a and b
d.none of the above
Interrogatories must be answered in writing and under oath.
a. True
b. False
The U.S. Supreme Court ruled that the EPA has a mandate under the Clean Air Act to
act on greenhouse gases and global warming in which case?
a. EnvironmentalDefensev.DukeEnergy
b. Massachusettsv.EPA
c.Summersv.EarthlandInstitute
d.UnionElectricv.EPA
Which of the following subjects is not generally covered by local ordinances?
a. zoning
b. curfews
c.dog licensing
d.partnerships
e. traffic
Federal agencies do not have the authority to issue fines.
a. True
b. False
The Rehabilitation Act of 1973:
a. applies only to employers receiving federal financial assistance.
b. is enforced by the EEOC.
c.does not apply to federal contractors.
d.a, b, and c
Under Title VII, employers who have had an incident of sexual harassment reported to
them:
a. are required to take some action to investigate the complaint.
b. can be held liable in tort for their inaction.
c.must take disciplinary action immediately.
d.both a and b
e. none of the above
Limited liability companies are peculiar to the United States.
a. True
b. False
Audra Sommers, also known as Timothy Cornish, claims to be “a female with the
anatomical body of a male.” Sommers (his/her preferred name) was terminated from
his/her employment with Budget Marketing, Inc.because female employees refused to
use the restroom with him/her and Sommers refused to use the men’s room. Budget said
there was significant disruption of the company’s work routine as a result of this
conflict. Sommers brought suit alleging a violation of Title VII. Does Title VII afford
protection for Sommers?
Joan Evans has rented a storage locker at Storage ‘R’ Us for the past two years. She has
discovered another storage locker facility that is nearby is climate-controlled, and only
costs a few dollars more per month to rent. Joan has decided to end her lease at Storage
‘R’ Us and move her things to the climate-controlled facility. The management at
Storage ‘R’ Us has refused to refund Joan’s $35 security deposit. Joan’s contract
provides that if she sweeps out her locker and no damage is done, the deposit will be
returned.Joan has swept the locker, and there is no damage in her unit. What
suggestions can you give Joan for resolving the dispute?
List the federal laws regulating credit contracts and give a brief description of each.
The Lake Nixon Club near Little Rock, Arkansas, had a racial restriction on the use of
its 232-acre amusement area, which included areas for swimming, boating, sunbathing,
picnicking, miniature golf, and snack bars. Discuss how an interstate commerce
connection might be found so that the federal civil rights act could be used to invalidate
the restriction.
The city of Renton, Washington, has passed an ordinance that prohibits adult motion
picture theaters from locating within 1,000 feet of any residential zone, single- or
multiple-family dwelling, church, park, or school. Several businesses have brought suit
challenging the constitutionality of the ordinance. What would be the basis for such a
suit? Discuss possible results.
Utah Light, Inc.has a takeover offer from Cal Corp. Utah Light is experiencing
difficulty with earnings and its share price has dropped from $32 to $19. Cal Corp’s
offer is for $23 per share. Utah Light’s board feels that because of pending plans and
developing assets, it should not accept the offer. Must the board accept the offer?
Gretta Grietham, a Michigan resident, purchased investment bonds from Lincoln
Savings and Loan. Lincoln experienced some setbacks and has now been taken over by
the Resolution Trust Corporation of the federal government. Gretta’s bonds are now
worthless (she purchased $12,000 of the bonds). Gretta’s attorney has advised her that
she probably has a chance of recovery from the officers and directors for securities
fraud under the 1934 Securities Exchange Act. Lincoln is a California corporation doing
business in California with investors all over the country. Where and in what court
could Gretta bring her suit?
Discuss the following advertising issues and determine whether the ads are ethical.
CarnationCoffeemateLite is advertised as having “50% LESS FAT.” The claim is true
but there is b. less than 0.5 grams of fat eliminated from Lite as compared to regular
Coffeemate. It is important to understand that the average American consumes 100
grams of fat per day.
The students should address the issues of whether the ad is legal (it is) and then move
on to whether it is balanced and how it would make them feel to have a product using
these descriptions. The example is similar to the manner in which
Novation and ratification have the same effect on promoters’ pre-incorporation
contracts.
a. True
b. False
List the provisions of Sarbanes-Oxley that affect corporation governance.
Realty Partners, Inc.is being sued by a buyer who bought a home listed by Realty
Partners. Realty earned a commission on the sale. The buyer is suing because the house
has termites. Realty had obtained an inspector’s report that described the home as
“termite-free.” Realty has brought the inspector into the lawsuit (added inspector as a
cross-claimant). What type of information does Realty need? How can it be obtained?
Colleges and universities around the country keep a common pool of information
among them about National Merit Scholars and disclose in their pool information about
tuition, scholarship packages, and financial aid.Is such a pool of information
appropriate under federal antitrust laws?
Explain the differences between arbitration and litigation.
Consider the following transactions by a director of a corporation listed on the National
Stock Exchange.
September 1, 2013, purchased 100 shares of his company’s stock at $10 per share.
October 30, 2013, sold the 100 shares of stock for $7 per share.
November 30, 2014, purchased 100 shares of his company’s stock for $5 per share.
Does the director have any liability under 16b?
Evaluate the following statement: “Warrants are not required for searches in
cyberspace.”
Answer the following:
Bruce King is a computer whiz who works at the county complex where all records for
criminal
a. cases are kept. He has developed a means for deleting criminal records from the
files and has contacted defendants to offer them the deletion in exchange for a
substantial fee. Has King committed any crimes with his actions?
b. What if King worked for a credit reporting firm and offered the deletion service to
folks with bad credit ratings? Would the result be the same?
Allied Van Lines has structured its company by giving its franchisees stock ownership
in the company. On the stock is the following language:
NOTE: Restrictions apply to ownership of this stock. Only franchisees and employees
of Allied Van Lines can own this stock. In the event of a franchise or employment
termination, the stock must first be offered to the Allied Board for purchase. Is the
restriction valid?