Business Law 19495

subject Type Homework Help
subject Pages 14
subject Words 2565
subject Authors David P. Twomey, Marianne M. Jennings

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Consumer leases:
a. must always be evidenced by a writing.
b. are always three- party transactions.
c. require the lessor to make all usual warranties made by a seller in a sale of goods..
d. all of the above.
Federal environmental laws can be enforced through:
a. penalties.
b. criminal sanctions.
c. suits by private citizens.
d. all of the above.
Where a corporation is properly formed, it is called a corporation:
a. di giorno.
b. de facto.
c. de jure.
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d. by estoppel.
What is an employer defense to a disparate impact charge?
a. The employer did not intend to discriminate.
b. The employment practice is job-related and consistent with business practice.
c. The disparate impact was not the result of extreme recklessness or gross negligence
on the part of the employer.
d. The practice is widespread and accepted in the industry.
The people in a corporation responsible for the management of the business are the:
a. partners.
b. shareholders.
c. board of directors.
d. licensees.
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The willingness of an offeror to enter into a contractual agreement regarding a
particular subject is expressed by a(n):
a. offer.
b. acceptance.
c. contract.
d. agreement.
An accountant who is being sued by a third person for malpractice based on fraud will
be able to avoid liability if the accountant can show:
a. contributory negligence on the part of the plaintiff.
b. that an exculpatory clause applies.
c. that the plaintiff did not rely on the false statement.
d. the absence of privity of contract.
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In a joint venture, the parties:
a. combine their labor or property for a single undertaking and share profits and losses
equally.
b. combine their labor or property for a continuing business and share profits and losses
equally.
c. assume no personal liability beyond the risk of losing their initial investment.
d. none of the above.
Several layers of law are enacted at different levels of government to provide the
framework for business and personal rights and duties. At the base of this framework of
laws is:
a. statutory law.
b. case law.
c. constitutional law.
d. all of the above.
If a liquidated damages clause demands an unusually large sum that is not related to
reasonably-anticipated actual damages, the clause will be held to be void as a(n):
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a. penalty.
b. unliquidated damages clause.
c. Extortion
d. Blackmail
Contracts in cyberspace:
a. are formed as a result of the desire for speed.
b. are formed using purchase orders and invoices submitted via computer.
c. require both an offer and an acceptance.
d. all of the above.
In general, an acceptance occurs when:
a. a particular form of words is stated to the offeror.
b. a particular mode of expression is made to the offeror.
c. the offeree reserves the right to reject the offer.
d. a clear expression of the offeree's agreement to be bound by the terms of the offer
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occurs.
A contract to build a house is deemed performed when:
a. there has been substantial performance of the contract.
b. the house is approved by the city housing inspectors.
c. the house is approved by the owner's architect.
d. the house is approved by the owner.
A right can exist:
a. by itself.
b. only if created by a court.
c. only if there is a corresponding duty.
d. only under local law.
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Chapter 7 is:
a. a liquidation proceeding.
b. a reorganization proceeding.
c. an extended time payment plan.
d. always an involuntary proceeding.
Which of the following statements is not true of common stock?
a. It is ordinary stock that has no preferences.
b. It entitles the holder to share in corporate profits in the form of dividends.
c. It entitles the holder to participate in the distribution of capital upon dissolution.
d. It is ordinarily nonvoting.
Bailments may be:
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a. created orally or through a writing.
b. created for either real or personal property.
c. created for nonpossessory personal property.
d. made only after delivery to the bailor is accomplished.
An agent's implied authority to perform any act reasonably necessary to execute express
authority is called __________ authority.
a. express
b. customary
c. apparent
d. incidental
The law could best be described as:
a. only statutory in nature.
b. only the creation of our courts.
c. a collection of rights.
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d. none of the above.
A contractual provision which states that a waiver of rights will not constitute a
modification to the contract is:
a. not enforceable as being in bad faith.
b. not enforceable as a violation of law.
c. enforceable by one party only.
d. enforceable.
A forged indorsement must be reported within:
a. forty (40) days.
b. six (6) months.
c. one (1) year.
d. three (3) years.
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A system in which a central government is given power to administer to national
concerns and individual states administer to local concerns is called:
a. bicameral.
b. constitutional.
c. federal.
d. tripartite.
The majority of fraud complaints received by the FBI relate to:
a. sales from large online only retailers.
b. sales from traditional retailers who also operate on the Internet.
c. private Internet sales (one individual to another).
d. Internet auctions.
page-pfb
A transferor makes certain implied warranties to the transferee when a bill of lading is
transferred. These warranties are:
a. that the bill of lading is genuine.
b. that the transfer is rightful.
c. that the transferor has no knowledge of any defects.
d. all of the above.
In an auction __________, the auctioneer takes bids as agent for the seller with the
understanding that no contract is formed until the seller accepts the transaction.
a. without reserve
b. with reserve
c. without preserve
d. with preserve
A criminal nuisance may be terminated by:
a. abatement.
b. closure by government authority.
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c. abatement or closure by government authority.
d. none of the above, since the law only recognizes civil (not criminal) remedies for
nuisance.
The Electronic Communications Privacy Act of 1986 (ECPA) is useful in resolving
privacy issue questions.
Partnership property may consist of:
a. real property only.
b. personal property only.
c. any and all property acquired by the partnership.
d. all property contributed by the partners or acquired for the firm or with its funds.
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When there is full disclosure and representation, promises made in consideration of
marriage:
a. can be written or oral.
b. generally cannot be set aside unless they are unconscionable.
c. are only valid if they are signed after the marriage actually takes place..
d. all of the above.
An insurer who wrongfully refuses to defend the insured is liable for:
a. breach of contract.
b. insurance fraud.
c. the tort of wrongful interference with contractual relations.
d. the tort of malicious prosecution.
The liability for losses on counterfeit checks depends on:
a. whether or not the bank acted reasonably in its processing systems in clearing the
checks.
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b. whether or not the bank complied with time requirements for customers regarding the
checks.
c. both a. and b.
d. none of the above.
If a seller elects to resell the goods remaining in the seller's possession after the buyer
breaks the contract, the seller:
a. must always give notice of the sale to the original buyer.
b. is never required to give notice of the sale to the original buyer.
c. is required to follow strict standards in the resale of the goods.
d. is not required to give notice of the sale to the original buyer when the goods are
perishable.
A bailee's lien gives the bailee the right to keep possession of the bailed property until
reasonable charges for storage and/or repairs are paid.
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A school district supplied school bus service for all children 12 years of age or under
who lived at least one mile from school. This service was provided for transportation to
and from school. Joanna was a 13-year-old student who lived in that school district.
Joanna's home was 2 miles from school. Her parents brought suit against the school
district alleging that Joanna was entitled to school bus service and the failure to provide
such service denied her the equal protection of the law. Discuss the probable outcome
of the lawsuit.
In order for fraud liability to arise, the listener must actually rely on the false statement
of fact.
Generally, the terms broker and agent are synonymous because both work directly for
the insurer.
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A limited liability company pays federal income tax.
Thomas, the holder of a check, presents it to the drawee bank for payment. If Thomas
indorses the check, Thomas warrants that the account of the drawer in the drawee bank
contains funds sufficient to cover the check.
Consideration is the bargained-for exchange between the parties to a contract.
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Sales law includes special rules that apply to merchants.
When the dissolution of a partnership has been caused by operation of law, notice of
such dissolution must be given to third persons.
A trust may be terminated by its own terms.
Contract terms may not be implied from conduct.
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A dispute arose in a small factory and the workers decided to strike concerning the
firing of an employee for union-organizing activity. As the strike wore on without
resolution, the employer hired what the employer called permanent replacements for the
strikers. Eventually, the strike was settled. Are the fired workers entitled to getting their
jobs back?
The parol evidence rule is based on the theory that any oral agreement was abandoned
when the contact was written.
In some states, a 'service-letter" statute requires an employer on request to furnish a
discharged employee with a letter stating the reason for the discharge.
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According to the RMBCA, shareholders may, by majority vote, remove a director with
or without cause unless the articles of incorporation provide that directors may be
removed only for cause.
When an international sale is made, the parties often set forth in their contract which
country's law will govern a dispute.
Freedom from economic domination is a personal right protected under United States
law.
Peter is employed as a shop electrician for ABC, Inc. Peter has a car being repaired and
a home on which he is paying mortgage payments. Peter is contemplating filing for
bankruptcy, but he is not sure which type of petition to file. Peter also wonders whether
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the auto repair costs and the mortgage payments are dischargeable. Which bankruptcy
filing is most appropriate for Peter? Are Peter's debts dischargeable?
Bart owned 100 shares of a stock that was actively traded on a national stock exchange.
Bart wanted to sell the shares but felt that his profit would be seriously diminished by
selling through a broker and paying the customary brokerage commission. Bart offered
the 100 shares to any of a group of six people in a conversation at a party. The offered
price was $750 per share, the price at which the shares had closed that day. No one
really responded to the offer at that time. Ten days later when the shares were trading at
$76.25, Marie, one of the offerees at the party, appeared at Bart's office saying that she
accepted the offer. Bart claimed the offer no longer was available. Evaluate the legal
outcome of this dispute.

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