A misdemeanor is the intentional misstatement or nondisclosure of a material fact made
by one party with the hope of influencing the other party.
The most common type of bankruptcy filed by individuals and businesses is Chapter 7.
Some agreements are unenforceable because they are contrary to the interests of the
public, such as agreements in restraint of marriage.
Fraud in executing an instrument is a real or absolute defense, but fraud related to the
circumstances surrounding the issuing of a paper and not to the paper itself is a personal
defense.
Businesses concerned with ethics usually focus on their corporate responsibility and the
development of codes of conduct.
If a minor injures another person or damages another persons property, he or she may
not be liable for such injuries or damages and may be prosecuted by the state in a
criminal action.
A formal, printed will needs to be signed only by the testator. Witnesses are not required
for this purpose.
Bankruptcy filings must not be made for the purpose of defrauding creditors.
Statutes, in some states, have permitted a person who has a claim against another to
give up, or release, his or her claim without an exchange of consideration by making a
written statement to that effect.
An agency by ratification results when a principal approves an unauthorized act
performed by an agent.
Values held by a subculture may differ from those of the larger culture.
A conditional sales contract is one way of selling merchandise with the condition that
title will remain with the buyer until the purchase price has been paid.
A defense against payment of commercial paper that claims the instrument was void
from the beginning is known as a real defense, or an absolute defense.
Under Chapter 7 bankruptcy the trustee collects the debtor’s exempt property, sells it
and dispenses the proceeds to the creditors in a fair manner.
Noise pollution cannot have adverse health effects.
Organizations that are referred to as not-for-profits may not include universities,
political parties, and labor unions.
A carrier, in most cases, has a right to hold a shipment until payment is made.
Corporations are owned by shareholders, who purchase shares of stock in the
corporation.
If a person makes a contract for necessities while intoxicated then such person must pay
the contract price even if exorbitant.
The transfer of real property is, in many ways, simpler than the transfer of personal
property.
Each state has several levels of courts: trial courts, appeals courts, and a supreme court.
An offer can be terminated by an offeror’s revocation before acceptance.
It is not necessary for the agent to obey all of the principal’s reasonable and lawful
orders and instructions within the scope of the agency contract.
The Eighth Amendment mandates that people accused or convicted of crimes are
subject to excessive bail.
A breach of contract results when a party to a contract refuses to perform as required by
the contract or performs in an unsatisfactory manner.
The federal agency responsible for the safety of food and drugs sold in the United
States is the Food and Drug Administration.
Administrative law is the body of rules, regulations, and decisions created by
administrative agencies.
Unlike the federal constitution, state constitutions provide safeguards for the rights of
individuals within that particular state.
When a person is injured on leased premises, the question of liability does not arise.
Title passes when the parties intend it to pass.
Companies that conduct business in several countries face the challenge of having to
comply with a variety of legal systems that sometimes conflict with one another.
Spam is undesirable because it can drain an ISP’s resources, strain network bandwidth,
and clog a user’s e-mail folders.
An agency is forbidden from regulating economic matters such as price, entry into a
particular geographical area, or entry into a particular kind of business.
When the client relies on the financial planner’s recommendations and suffers a loss, the
financial planner cannot be sued for negligence.
When executing an advance directive an individual must demonstrate that he or she is
competent and must sign the document in the presence of witnesses.
The person who retains ownership and transfers possession is the bailor and the person
who receives the goods is the bailee.
The legal age of majority varies from state to state.
When a purchaser takes title to goods but has the right to return them within a specified
or reasonable time, the purchaser must assume all the obligations of ownership while
the goods are in his or her possession.
In the case of contracts that are impossible to perform, the contract is:
A.void and the parties are discharged.
B.valid and must be performed.
C.unenforceable but must be performed.
D.referred to a court for the court to order performance.
A contract in which some future act or obligation remains to be performed under its
terms is known as a(n):
A.executed contract.
B.statutory contract.
C.contingent contract.
D.executory contract.
Incentives for corporations to act more ethically are provided by the:
A.Federal Sentencing Guidelines.
B.Foreign Corrupt Practices Act.
C.Civil Rights Act.
D.Federal Indictments Act.
In entire and divisible contracts, until the whole order is filled, the payment of contract:
A.is obligatory.
B.is compulsory.
C.is not required.
D.is mandatory.
The federal Consumer Credit Protection Act:
A.regulates the collection, dissemination, and use of consumer credit information.
B.gives consumers a “cooling-off” period of five days and the right to cancel contracts
for goods/services made in the consumer’s home and to receive a full refund.
C.allows consumers to request and obtain a free credit report once every 12 months
from each of the three nationwide consumer credit reporting companies.
D.gives consumers the right to cancel a credit transaction within three days when the
contract requires that the consumer pledge his/her home as a security deposit.
The Patient Protection and Affordable Care Act (PPACA) requires that group health
insurance plans that provide coverage for dependent children continue to make
coverage available for an adult child until the child reaches _____________.
A. 23 years of age
B. 21 years of age
C. 26 years of age.
D. 18 years of age
If the true owner does not come forward and the finder does not wish to claim
ownership, title to the property transfers to the state _________.
A.after a period specified by statute.
B.immediately.
C.upon the state filing a claim to title.
D.at the owners direction.
The act of a host country in taking title to all of the assets of a foreign company while
compensating the owners of the foreign company for the taking is called:
A.capitalization.
B.an embargo.
C.domestication.
D.expropriation.
The crime of bribery consists of giving or taking money or property of value with the
intent of:
A.recruiting someone.
B.reappraising someone.
C.appraising someone.
D.influencing someone.
An employer can safely disclose information about a current or former employee in the
following areas EXCEPT for areas related to the employees
A.prior employment and educational history.
B.character as it relates to the job.
C.performance abilities.
D.religious affiliation.
Unauthorized access to computers invites violation of:
A.objectives.
B.duties.
C.rights.
D.goals.
The ______________ forbids certain agreements that tend to unreasonably inhibit
competition, fix prices, allocate territories, or limit production.
A.Clean Water Act
B.Sherman Antitrust Act
C.Educate America Act
D.Americans with Disabilities Act
The following are clauses of the Constitution that have a specific impact on businesses
EXCEPT:
A.Commerce Clause.
B.Full Faith and Credit Clause.
C.Supremacy Clause
D.Competitive Clause
Consumers who believe that their right to privacy is being violated by the embedding of
software can complain to the:
A.Federal Tort Curbing Agency.
B.Administration and Trade Commission.
C.Agency against Unfair Trade Practices.
D.Federal Trade Commission.
Federal and state legislatures have enacted statutes to protect the ____________of the
general population from the effects of pollution of the atmosphere and bodies of water.
A.health and welfare
B.movable property
C.immovable property
D.educational status
Camilla agrees to purchase a car for $ 15,000. Camilla and the seller agree that Camilla
will return the following day with a license plate to pick up the vehicle. In this case, the
title passes:
A.when Camilla arrives with the license plates.
B.when Camilla takes the vehicle home.
C.at the time of purchase.
D.at the time of agreement.
The work of authors or creators of literary, artistic, or musical works and computer
programs are protected by:
A.patents.
B.copyrights.
C.trademarks.
D.embargoes.
A ______ makes clear that the company expects its personnel to recognize the ethical
dimensions of corporate policies and actions.
A.suggestion
B.regulation
C.code of ethics
D.social action
A gift given by a living person who expects to die from a known cause is called a(n):
A.inter vivos gift.
B.causa mortis gift.
C.intestate gift.
D.anticipatory gift.
Beliefs and standards that are considered to be worthwhile are known as:
A.discretions.
B.morals.
C.ethics.
D.values.
Sexual harassment is a form of discrimination on the basis of ______ and is illegal
under federal and state law.
A.sex
B.race
C.national origin
D.religion
The law assumes that, as long as no undue pressure is brought to bear, the parties were:
A.free to reject a proposed unfair contract.
B.not allowed to enter into another contract.
C.required to accept proposed contract terms.
D.part of a confidential relationship.
A completely fictitious individual who is assumed to have the “judgment and skill” one
would expect from a person with the strengths and limitations of the person whose
behavior is being judged is:
A.a person with a criminal background.
B.a person with a legal background.
C.a person of ordinary prudence.
D.a person with a high IQ.
In order for a person to be a holder in due course of a negotiable instrument, the paper
must have been acquired:
A.mala fide consideration.
B.contingent consideration.
C.premeditated consideration.
D.valuable consideration.
In a sole proprietorship, the entrepreneur has to obtain a general ____________from his
or her local municipality.
A.disclosure
B.release
C.business license
D.accounting
A trademark registration is issued for a renewable period of:
A.10 years.
B.20 years.
C.50 years.
D.60 years.
A salesperson of the titleholder of certain merchandise may sell the products of the
titleholder because he has ___________ permission of the titleholder.
A.only the express
B.express or implied
C.only the implied
D.neither express nor implied
Superfund created a “Hazardous Substance Trust Fund” to help allay costs in addressing
environmentally scarred:
A.lands.
B.pelicans.
C.vegetation.
D.reservoirs.
Under traditional tort law, the injured party must prove that the manufacturer was
_________ in producing a product.
A.unauthorized
B.negligent
C.advertent
D.ignorant
When property, such as stolen goods, is transferred without the permission of the
owner, then it amounts to:
A.rightful possession.
B.champerty.
C.wrongful possession.
D.repossession.
Withholding payment for transportation charges enables a carrier to hold goods on the
basis of a(n):
A.carrier’s lien.
B.warehousers lien.
C.proprietors lien.
D.equitable lien.
The failure to exercise the necessary care not to expose others to unreasonable risk of
harm is the tort of:
A.liability.
B.defamation.
C.negligence.
D.misfeasance.
If the purpose of a licensing requirement is solely to raise revenue for the jurisdiction,
and not to ensure competency, the absence of a license:
A.does not make the agreement void.
B.makes the agreement void.
C.creates an illegal and unenforceable contract.
D.creates a legal but void agreement.
A kind of guarantee or promise made by a manufacturer or seller that the goods and
services offered are really what they are claimed to be, or that the goods or services are
what a reasonable person has a right to expect, is known as a(n):
A.patronage.
B.custom.
C.warranty.
D.guarantee.
An Automated Teller Machine performs many of the functions of a bank as would a
A.manager.
B.cashier.
C.teller.
D.attorney.
Describe the consequences of a failure on the part of the principal to give notice of the
termination of the agency to all third parties.
List the six key settings in which the law applies to conducting business on the Web.
When is commercial paper deemed dishonored?
Explain the Civil Rights Act of 1964 and how it relates to the Equal Employment
Opportunity Commission.
Are prenuptial agreements enforceable? Explain why or why not.
Explain how professionals protect themselves against the losses that might result from
being found liable for malpractice or negligence.
What is impossibility of performance? Provide an example of a contract that would
likely be deemed impossible to perform.
How does the transfer of title differ in a contract for sale and a contract to sell?
Use an example to explain buyers’ remedies for breach of a sales contract.
What services do administrative agencies typically provide?
Distinguish between a full warranty and a limited warranty.
What is a contract of agency and what is usually contained therein?
What is an “unconscionable contract,” and what are the court’s options when handling
one?
What are the different types of medical insurance that are commonly available to
individuals and employers?
What is the Doctrine of Comity?