Force majeure clauses in international business contracts commonly set forth the major
clauses of the contracts.
a. True
b. False
Coco is considering forms of business organization for her concessions businessCocos
Cupcakes. Most states require that a limited liability company have at least
a. no minimum number of members.
b. at least one member.
c. at least two members.
d. at least three members, including at least one general partner.
The TRIPS agreement established standards for the international protection of
intellectual property rights for computer programs.
a. True
b. False
Identity theft occurs when a wrongdoer steals anothers form of identification and uses it
to access the victims financial resources.
a. True
b. False
Browse-wrap terms require a user to affirmatively indicate his or her consent.
a. True
b. False
Lexy, a salesperson for My-T-Fine Corporation, learns that My-T-Fine will in-crease the
dividend it pays to shareholders. Lexy buys 10,000 shares of My-T-Fine stock. When
the price increases, Lexy sells the shares for a profit. Lexy would not be liable for
insider trading if the information about the dividend was
a. material when she sold the stock.
b. public after she bought the stock.
c. public before she bought the stock.
d. speculative when she bought the stock.
Future goods are goods that are not both existing and identified to the contract.
a. True
b. False
Khalil holds a security interest in inventory owned by Luc. Khalil pro-tects his claim to
the inventory in the event of Lucs default by
a. assignment.
b. perfection.
c. redemption.
d. retention.
A will must normally be attested to by two or three witnesses.
a. True
b. False
The basis for an employees contribution to Social Security is the employees age.
a. True
b. False
A motion for a directed verdict is also known as a motion for judgment as a matter of
law.
a. True
b. False
Common law is the same as statutory law.
a. True
b. False
A promise to give value in the future is sufficient to confer the rights of an HDC on one
in possession of a negotiable instrument.
a. True
b. False
Some unilateral contracts do not require that an offeror be notified of acceptance.
a. True
b. False
The UCC requires that the mirror image rule be followed for all acceptances.
a. True
b. False
Feder prepares federal corporate income tax returns for Giant Stores, Inc., and other
firms. Under the Internal Revenue Code, with respect to an understatement of a clients
tax liability, Feder may be liable for
a. negligent or willful misconduct.
b. no misconduct.
c. only negligent misconduct.
d. only willful misconduct.
Future members of a limited liability company (LLC) may enter into contracts on the
entitys behalf before the LLC is formed.
a. True
b. False
Investors Fund, a large financial institution, announces that it will start monitoring its
employees electronic communications. If Mary, an Investors Fund employee, resists
this policy, her best argu-ment is that the monitoring violates
a. employee privacy rights.
b. worker health and safety.
c. federal labor law.
d. the employment-at-willdoctrine.
According to utilitarianism, an action that affects the majority adversely is morally
wrong.
a. True
b. False
Dave is an officer for Sweet Somethings Candies, Inc. In 2012, chocolate hearts were
very popular. Acting within his managerial authority and the powers of the corporation,
Dave signs a contract for an increase in chocolate heart production for 2013. In 2013
chocolate hearts do not sell well and Sweet Somethings Candies loses money. Dave is
most likely
a. liable for breach of duty of care.
b. liable for breach of duty of loyalty.
c. none of the choices.
d. liable for violation of the business judgment rule.
A summary judgment is granted only if there is no genuine question of law.
a. True
b. False
Managements behavior sets the ethical tone of a firm.
a. True
b. False
A prenuptial agreement must be in writing to be enforceable.
a. True
b. False
BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to
Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on
consequential damages for personal inju-ries arising from a breach of warranty. This is
prima facie un-conscionable with respect to
a. all of these parties.
b. BBQ and Grill Mart, but not Hope.
c. Hope only.
d. none of these parties.
An answer never admits to the allegations made in a complaint.
a. True
b. False
Laney is a resident of Maine. Delacorte is a Canadian. They dispute the ownership of
Petite Isle, an island in North Rapids River on the border between Canada and the
United States. The diversity of the parties citizenship could serve as a basis for
a. federal jurisdiction.
b. general jurisdiction.
c. limited jurisdiction.
d. universal jurisdiction.
Accountants and other professionals may not be held liable for negligence in the
performance of their service.
a. True
b. False
Henry promises not to open his restaurant before 10:00 A.M. if Suzy, who owns a
bakery next door to him, promises to close her bakery by 4:00 P.M. Henrys
consideration is
a. the destruction of a legal relationship.
b. the creation of a legal relationship.
c. a forbearance.
d. an exchange of money.
A unilateral contract is formed when the party receiving the offer com-pletes the
re-quested act or performance.
a. True
b. False
Mary creates a t-shirt design that expresses support for a presidential candidate and
distributes t-shirts with the design to all of her friends. This is an example of
a. unprotected speech.
b. controlled speech.
c. symbolic speech.
d. illegal speech.