An employee handbook should contain information related to the history of the
company, including its mission and philosophy.
The landlord has the right to regain possession of the property in good condition at the
end of the lease.
A domain name is a unique identifier that serves as an address for a Web page.
There are numerous federal and state laws that serve to protect employees from
accidents and sicknesses that are job-related.
Sales of personal property in the amount of $5,000 or more must be in writing.
When an agent or broker fails to recommend appropriate insurance and the buyer
suffers a financial loss that could have been prevented or lessened, the agent or broker
can be charged with negligence.
It is not a mandate under the Securities Exchange Act of 1934 for companies to
periodically release important business information to the public and to investors.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires that a
debtor who wishes to file under any chapter of the bankruptcy law must, unless exempt,
receive individual or group credit counseling from an approved, not-for-profit,
individual or group budget or credit counseling agency by telephone or online.
A competent party is a person of legal age, but fails to take into account the mental state
of the individual.
To satisfy the Statute of Frauds, a written contract or agreement must contain a
description of the consideration promised.
A contract for sale with the right of return gives the buyer the opportunity to return
them to the seller at a later time, but does not give the buyer title.
A whistleblower is one who calls attention to unpleasant conditions at the workplace.
A joint tenancy exists when two or more persons own equal shares of property.
In every state in the United States, the provisions contained in an employee handbook
are considered a contract between the employer and the employee.
Many professional groups conduct workshops and training sessions to help members of
the profession reduce the risks that lead to negligent actions and the lawsuits that
frequently result.
A fraud charge can be proven only if it is available in writing, but not if it is spoken or
by acts or conduct.
Advertising of drugs is legal, so long as detailed information about the drug being
advertised is not disclosed.
A warehouser is not responsible for goods left in storage.
A contract that is entered into by the debtor that includes a preferential payment is void.
Domestication occurs when the host country takes title to all of the assets of the foreign
company.
A party who announces the intention to break a contract is said to have created an
anticipatory breach.
Businesses are generally structured as one of the following: (1) sole proprietorship, (2)
partnership, (3) corporation, or (4) limited liability company.
The Federal Trade Commission inspects workplaces to be certain that these worksites
comply with safety and health standards.
The Uniform Commercial Code is a set of laws governing various commercial
transactions designed to bring uniformity to the laws of the states.
The right to extract minerals, such as oil or coal, from land is known as subterranean
rights.
A person who has power and abuses it to control the actions of another person on the
basis of a special or confidential relationship commits fraud.
A trustee must manage the property according to the wishes of the settlor, who may be
deceased.
A consequence of strict liability is that companies are sometimes hesitant to introduce
new or innovative products because of the fear of liability lawsuits.
The major disadvantage of a corporation is the fact that the corporation is required to
pay separate income taxes at a special corporate rate for any year during which a profit
is earned.
A buyer cannot refuse delivery of goods even if the goods are not the same as described
by the seller or do not conform to the sample or model used by the seller to effect the
sale.
A private wrong that causes injury to another person’s physical well-being, property, or
reputation is called a tort.
Only the giver of a bribe can be charged with the offense of bribery.
In states that have enacted community property statutes, property acquired by a member
of a designated community belongs to that entire community.
Burning to defraud is a special category of crime under arson providing for the
punishment of persons who burn their own property with the aim of collecting
insurance money.
A design patent is awarded to individuals or business firms to protect distinctive
patterns, figures, and shapes and to prevent unauthorized copying.
In an effort to limit the effect of express warranties, some sellers put specific limitations
in the warranty called disclaimers.
An offer is terminated as a result of the death or legal incapacity of either the offeror or
the offeree under an option contract.
An incompetent person who makes, signs, and delivers a negotiable instrument cannot
be held liable for its payment.
In bailment for work and services, a bailor-bailee relationship is concerned with the
care of the property.
To determine whether an administrative agency has abused its authority, the courts are
guided by _______________.
A.the agency directors decision.
B.the decision made by the jury.
C.the statute that created the agency, the U.S. Constitution, and state constitutions.
D. the year the agency was established.
___________ regulates the dumping of waste onto land.
A.Clean Water Act
B.Superfund
C.Environmental Protection Agency
D.Clear Air Act
Under the UCC, any written offer by a merchant to buy or sell goods that states that the
offer will be held open for a specified time period:
A.can be revoked during that time period, but only in writing.
B.cannot be revoked during that time period.
C.cannot be revoked by spoken word.
D.can always be revoked.
That certain kinds of contracts should be in writing is a requirement under the:
A.Statute of Frauds.
B.Statute of Principles.
C.Statutes on Employment.
D.Statute on Discrimination.
According to the UCC, a sale is:
A.a payment for goods.
B.a negotiated transaction.
C.the passing of title from the seller to the buyer for a price.
D.a void transaction.
Implied warranties can relate to either:
A.the actual or sample goods.
B.oral or written promises.
C.the guarantee or warranty of goods.
D.the title or the quality of goods.
Product liability, covered by tort law, provides consumers and users with remedies
when they are injured or suffer property damage as a result of:
A.defective services.
B.defective goods.
C.defective laws.
D.excess tax imposition.
When a customer asks a merchant to deliver an article to his home with no mention of
payment, the buyer implies that he or she will pay the market price of the article when it
is delivered or when the bill is presented. This is an illustration of:
A.a simple contract.
B.consideration.
C.an implied contract.
D.a formal contract.
If an advertisement contains a positive promise and a positive statement of what the
advertiser expects in return, the court will usually hold that the advertisement is a(n):
A.proposal.
B.offer.
C.request.
D.informal invitation.
Examples of misdemeanors include all of the following except ______.
A.traffic offenses
B.thefts of small amounts of money
C.bribery
D.use of illegal measuring devices
A patent is a valid, government-granted protection awarded to inventors that gives the
patent-holder the exclusive right to manufacture, use, and sell the invention for:
A.10 years.
B.20 years.
C.50 years.
D.the lifetime of the creator plus 70 years.
A bill of sale that is handwritten is:
A.void
B.effective.
C.voidable.
D.rescindable. .
The landlordtenant relationship can be created by a(n):
A.contingent contract.
B.statutory contract.
C.express or an implied contract.
D.arbitration agreement.
The commission or organization that is responsible for overseeing the implementation
of all multinational trade agreements negotiated now or in the future is known as the:
A.North American Free Trade Organization.
B.World Trade Organization.
C.General Agreement on Tariffs and Trade.
D.International Monetary Fund.
Insolvency occurs when:
A.assets equal liabilities.
B.liabilities exceed assets.
C.assets exceed liabilities.
D.there are no liabilities.
A rule that prevents a court from considering oral statements that are inconsistent with
the written document is known as the:
A.parol evidence rule.
B.rule of natural justice.
C.rule of alibi.
D.generis rule.
An indication made by the offeree that he or she agrees to be bound by the terms of the
offer is known as:
A.an enforceable offer.
B.a mutual agreement.
C.free consent.
D.acceptance.
An agreement or promise in a lease to do a particular thing is known as a:
A.covenant.
B.condition.
C.warranty.
D.codicil.
Title to land also can be acquired as a result of a persons use of land over a period of
time though __________.
A.a warranty deed
B.a leasehold interest
C.adverse possession
D.adhesion
Sometimes a person has the power to control the actions of another because of a special
or confidential relationship to that person. If this power is improperly used to his or her
personal advantage, then it amounts to:
A.mistake.
B.misrepresentation.
C.undue influence.
D.duress.
A __________ check is one that is dated later than the date the check is written.
A.certified
B.forged
C.bad
D.postdated
A statutory privilege granted by a nation to inventors for a fixed period of years to
exclude all others from manufacturing, using, or selling a product without permission
from the inventor is a:
A.copyright.
B.trademark.
C.patent.
D.grant.
During the testing of drugs, the phase in which a small number of people are tested to
determine safety and dosage, and to identify side effects that result from taking the
drug, is:
A.Phase I.
B.Phase II.
C.Phase III.
D.Phase IV.
When the holder of commercial paper signs his or her name, with or without other
words, on the back of the instrument, this writing is referred to as a(n):
A.acknowledgment.
B.endorsement.
C.receipt.
D.acceptance.
Sufficiently important debts that need to be paid in full are called:
A.major debts.
B.priority debts.
C.flexible debts.
D.exempt debts.
Several states have laws making it illegal to discriminate on the basis of age against
persons who are over the age of:
A.18.
B.19.
C.20.
D.21.
The Computer Fraud and Abuse Act (CFAA) at times limits the ECPA. Under the ECPA
there must be an intent to exceed authorization for a crime to be committed, and the
CFAA does not require such intent if the intrusion onto another persons
computer-stored information causes damage.
The seal on a formal contract may consist of any of the following, EXCEPT:
A.the word “Seal..
B.the letters “L.S.
C.an impression on the paper.
D.a stamped signature.
If a tender of goods or the performance of an act is refused, the person making the offer:
A.is subject to suit.
B.is relieved of the obligation to perform.
C.must repeat the offer before witnesses.
D.must petition a court for compensation.
If a negotiable instrument is not accepted when presented, if it is not paid when
presented for payment at maturity, or if presentment is excused or waived and the
instrument is past due and unpaid, then it is considered:
A.ineligible.
B.defunct.
C.dishonored.
D.abandoned.
An individual or firm in the business of transporting goods between certain points as
allowed by the various state commissions that regulate the carriers is known as a:
A.business carrier.
B.government carrier.
C.public carrier.
D.common carrier.
The legislative branch of government is made up of:
A.appointed officials.
B.elected representatives.
C.equal numbers of all political parties.
D.community leaders.
The illegal activity of using insider information for personal gain is considered a(n):
A.manipulative and deceptive practice.
B.honest approach to trading.
C.practice of forgery.
D.mandatory civil rights encroachment.
A contract is enforceable even if:
A. laws and regulations increase the cost of performance.
B.laws and regulations enacted after the contract is entered make performance illegal.
C.laws and regulations do not absolve the parties from their contractual obligations.
D.the contract calls for a special skill or talent possessed by a party to the contract that
dies before timely performance can be rendered.
When the buyer is insolvent, the UCC provides the seller with the right of:
A.action in shipment.
B.strike in transfer.
C.walk out in transit.
D.stoppage in transit.