The term “AS THEY STAND” serves to disclaim:
a. the implied warranty of merchantability.
b. the implied warranty of fitness for a particular purpose.
c.both a and b
d.none of the above unless it is in writing
A primary offering is a first-time offering of shares for sale.
a. True
b. False
Ellen Fishman was hired by Attics, Inc., a company that does attic refurbishments and
redesigns, to evaluate attics,provide homeowners with estimates, and, hopefully, sign
them up with contracts for their attics. Ellen provided an estimate of $11,000 to the
Kornbluths for a redesign of their attic.Because she was new at the job, Ellen forgot the
demolition costs in the estimate. However, the Kornbluths signed a contract Ellen
presented and put down a 10% deposit of $1100. Attics, Inc.’s president has refused to
do the attic for anything less than $15,000, what the estimate should have been. The
Kornbluths have no experience with remodeling and had only one other estimate for the
refurbishment, which was $12,500. Attics, Inc.terminated Ellen. However, Ellen still
had all the materials, books, contract forms, and her card from Attics, Inc. Ellen went
out and got three homeowners to sign contracts for refurbishments for prices ranging
from $15,000 to $22,000. If Attics, Inc. performed the contracts Ellen negotiated, it
would:
a. need to take steps to terminate Ellen’s implied authority.
b. need to take steps to terminate Ellen’s apparent authority.
c.need not take any further steps because Ellen’s authority was terminated and it was
just ratifying the contracts.
d.none of the above
Price control consignments are treated as forms of resale price maintenance.
a. True
b. False
Which of the following cannot be obtained during discovery in a case?
a. e-mail from the defendant company’s server
b. attorney’s notes for the defendant company
c.medical records of an injured plaintiff
d.defendant company internal memos
e. All of the above can be obtained during discovery.
Employer monitoring of employee e-mail is illegal.
a. True
b. False
Users do have some First Amendment protections from identity disclosure.
a. True
b. False
The 1934 Securities Exchange Act regulates the secondary sale of securities.
a. True
b. False
Unemployment benefits can be denied if a claimant refuses to take a job because of
religious convictions.
a. True
b. False
Plea bargaining is done only before the arraignment.
a. True
b. False
Sarbanes-Oxley has special anti-retaliation protections for employees who raise
questions about financial reports and internal accounting.
a. True
b. False
The subprime lending market uses title loans.
a. True
b. False
Action Outfitters is a national manufacturer and retailer of outdoor gear. When it agrees
to sell its merchandise to a retailer, the retailer must also agree to purchase Action’s
outfits for clerks, its displays, its shopping bags, and its gift boxes. Action says that
these items are part of its brand identification. A retail outlet has brought suit because
it only wants the Action merchandise and does not want the outfits, displays, bags, or
boxes.
a. The suit is one for tying.
b. There is no cause of action here because manufacturers can dictate all the terms of
sale and whether they will sell to a retailer.
c.The suit is one for monopolization.
d.none of the above
Under the Pregnancy Discrimination Act, a mother returning to work after maternity
leave cannot be demoted.
a. True
b. False
Bernie Madoff used a scheme in his fraud schemes.
a. Bait-and-Switch
b. Ponzi
c.Pump-and-dump
d.Poison Pill
Leases of consumer goods are not subject to disclosure requirements.
a. True
b. False
Which agency is responsible for consumer complaints about e-merchants?
a. The Federal Trade Commission.
b. There is no federal agency responsible because the federal government has no
jurisdiction in cyberspace.
c.The Social Security Administration.
d.none of the above
The U.S. Supreme Court has prohibited regulation of advertising by professionals.
a. True
b. False
A covenant not to compete in a contract for the sale of a business protects the goodwill
of the existing business for the buyer.
a. True
b. False
The Lilly Ledbetter Fair Pay Act states that each paycheck triggers a new 180-day filing
period to sue.
a. True
b. False
A summons:
a. is served on the plaintiff.
b. can be served by an officer of the court or by private licensed firms.
c.need not be served if the complaint has been filed.
d.none of the above
Fair trade contracts:
a. were eliminated in 1975.
b. have been permitted in nearly one-half of the states.
c.relate to issues surrounding price discrimination.
d.none of the above
Assumption of risk is a complete defense to negligence.
a. True
b. False
The FTC Improvements Act of 1980:
a. expanded the FTC’s authority to regulate advertising.
b. limited the FTC’s authority on regulation of advertising.
c.eliminated the FTC’s authority to require corrective ads.
d.none of the above
The policy on travel reimbursement at Public Service Company is that receipts for
meals under $25.00 are not required.Internal auditors at Public Service have recently
discovered that 80 percent of all meal submissions are in a range from $12.50 to
$12.99. When one manager is questioned about his submissions and those of his
employees he responds, “So, they make a little bit on meals – it helps their miserable
salaries.” The manager’s evaluation:
a. demonstrates an ethical commitment to his employees.
b. is ethical since no one is really harmed.
c.demonstrates a lapse in the company’s ethical culture.
d.is an example of Christian consequentialism.
Section 10(b) violations carry fines of only $10,000.
a. True
b. False
Judicial review is one means for clarifying the meaning of laws.
a. True
b. False
Which of the following is/are an express warranty(ies)?
a. “This sofa is the most comfortable ever built.”
b. “This grill can give you 500 F of heat.
c.”This car has more pep than any other, especially on hills.”
d.All of the above are express warranties.
Phil’s Corner Mart is a convenience store and gasoline station. A representative from the
Environmental Protection Agency (EPA) has just notified Phil that there is some
leakage from his underground gasoline storage tanks. The EPA representative explains
to Phil that he will be issuing a citation for violation of federal environmental laws and
that Phil could be liable for clean-up costs and penalties. Which of the following
statements is true?
a. Phil has been charged with a crime.
b. Phil has been charged with violation of a state statute.
c.Phil is facing civil penalties for the violation.
d.The EPA promulgates USC provisions.
On faxed documents, it is often difficult to tell if a signature is authentic, both because
clarity is a problem and also because signatures can be cut and pasted onto new
documents from old documents. The Uniform Commercial Code provides that anything
placed on a document with the intent to authenticate it is a binding signature for a valid
contract. The UCC definition:
a. did not anticipate the technology problems arising from the fax.
b. will apply even in these fax situations.
c.is a common law definition.
d.is part of federal law.
Contributory negligence cannot be raised if there is causation proved against the tort
feasor.
a. True
b. False
Under Sarbanes-Oxley, codes of ethics must cover financial reporting standards.
a. True
b. False
Which of the following issues in advertising is not regulated by the FTC?
a. accuracy of ad content
b. accuracy of performance claims
c.celebrity endorsements
d.All of the above are regulated by the FTC.
The term “common law” has been in existence since:
a. the end of the Civil War.
b. the end of World War I.
c.1492.
d.1066.
“These dresses are 100% cotton” is an example of an express warranty.
a. True
b. False