Archives: Quiz

The rights and duties of a bank and its customer are contractual. Insurance is classified according to the amount of the payment on a claim. Answer: F The UCC imposes some different rules on merchants. Answer: T An oral contract […]

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What conflicts might arise […]

Corporate governance can be defined as the relationship between a corporation and its directors. Any conspiracy that has a substantial effect on U.S. commerce is within the reach of the U.S. antitrust laws. Answer: T A merchant is a person […]

An employer may not hire an illegal immigrant under any circumstances. A lottery is an example of an offer for a unilateral contract. Answer: T There is at least one federal district court in every state. Answer: T The Clayton […]

The Foreign Sovereign Immunities Act spells out what a “foreign state” includes. Constructive delivery occurs when property is physically transferred. Answer: F For a creditor to have an enforceable security interest, the creditor must give something of value to the […]

The measure of damages for the breach of a contract for a sale of land depends on which party breaches and when. The Civil Rights Act of 1964 does not prohibit job discrimination on the basis of national origin. Answer: […]

Securities that are exempt from the registration requirement can generally be sold and resold without being registered. Under the power of eminent domain, the government may take private property only for private use, not for public benefit. Answer: F The […]

Under the Age Discrimination in Employment Act of 1967, a plaintiff must prove that he or she was replaced by a person “outside the protected class.” A contract is valid only if both of the parties entering into it have […]

Divestiture of a business interest is a possible penalty under RICO. A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer’s actual signature. Answer: F To rescind a contract, each party […]

The Second Amendment to the U.S. Constitution reserves all powers not delegated to the national government to the states. Equity is a branch of law, founded in justice and fair dealing, which seeks to supply a remedy when no adequate […]

Browse-wrap terms are arguably not enforceable. Article I, Section 8, of the U.S. Constitution permits Congress to regulate interstate commerce. Answer: T A customer who writes a bad check may be subject to criminal prosecution. Answer: T With an interest-only […]

Ralph signs an instrument promising to pay a total of $10,000 to Martha in $1,000 monthly installments with the final payment being made on August 1. Ralph unexpectedly inherits $10,000 from his aunt on May 15. Ralph may a. not […]

Ramblin” Country Stables contracts to buy 1,000 horseshoes from Blacksmith, Inc., for $1 per shoe. When the market price decreases to 50 cents per shoe, Ramblin” refuses to go through with the deal. Blacksmith can recover a. $1,500. b. $1,000. […]

To obtain office supplies for All-Care Medical Clinic, Britney executes a draft in favor of Chris. A draft is a. a conditional promise to pay money. b. an unconditional written order to pay money. c. a qualified promise to set […]

Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A declaration that one will do something in the future is part of the definition of a. a prediction. b. a premise. c. a principle. […]

Regional Wood Products Company and Sylvia enter into a contract for a sale of lumber. Regional knows the purpose for which Sylvia will use the goods. Under the UCC, an implied warranty of fitness of a particular purpose arises a. […]

Dee, an accountant, does not work for Emergent Company, but wrongfully obtains inside information concerning Emergent. Based on the information, Dee buys and sells Emergent stock for personal gain. The Securities and Exchange Commission prosecutes Dee, arguing that she is […]

Machine Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school education and job performance. In a suit against Machine Corporation under Title VII, this requirement is shown to have a discriminatory […]

Community Construction Corporation offers to buy from Solid Cement Company a certain quantity of cement for a certain price. Solid can accept the offer by a. doing nothing. b. promising to ship or promptly shipping the cement. c. promising to […]

Mango Corporation believes that Melon Corporation engages in anticompetitive behavior in an attempt to drive Mango and its other competitors out of the market. Antitrust laws can be enforced against Melon by a. Mango and its competitors only. b. Mango, […]

Owen is a federal judge whose judicial decisions are part of case law, which does not include interpretations of a. other case law. b. constitutional provisions. c. statutes. d. sound bites in the media. Fresh Produce, Inc., and Great Grocery […]

NuTown Construction, Inc., wants to build a parking ramp to connect to its NuTown Mall, both of which are on private land. For this action, an environmental impact statement is a. prohibited. b. required. c. unnecessary. d. voluntary. Megan, a […]

Jackson Lumber hires Owen to purchase wood from various sources on behalf of Jackson Lumber. In this relationship, Jackson Lumber is the a. employee. b. independent contractor. c. principal. d. agent. Megan goes to visit her friend Kathleen. While visiting, […]

Precise Device Corporation and Quality Instruments, Inc., decide to merge. This corporate combination does not require the approval of a. Precise and Quality’s directors. b. Precise and Quality’s officers and employees. c. Precise’s shareholders. d. Quality’s shareholders. Bean Vendors, Inc., […]

Fact Pattern 14-1 Echo takes her car to Fix-It, Inc., which repairs the car and bills Echo for $500. Echo writes out a check drawn on Capital Bank, but later, believing that Fix-It did not repair the car properly, issues […]

Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Pat’s attempt to delegate his contract to Ruth, an inexperienced pianist, will probably be a. permitted because contracts may be freely […]

Ralph contracts to sell his Double-R Ranch to Samantha on May 1. On April 20, Ralph tells Samantha that he will not go through with the deal. Samantha can recover a. the cost of any property that Samantha would find […]

Some agreements are so blatantly and substantially anticompetitive that they are deemed illegal per se under Section 1 of the Sherman Act. Which of the following is not a per se violation? a. A price-fixing agreement b. A group boycott […]

May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick’s Pre-owned Autos, hands May $10. This is a. a valid acceptance because […]

Richard is an avid baseball fan and attends baseball games whenever he can. Richard considers himself an expert on all things, including risks, related to baseball. One day a ball flies into the stands, hits Richard in the head and […]

Joy and Karl contract for the sale of Joy’s prize-winning show dog for $1,000. Unknown to either party, the dog has died. Karl is a. entitled to another dog of equivalent value. b. not required to pay due to the […]

Bruno is a businessperson with investments in legal and illegal operations. Bruno may be subject to penalties under RICO a. for making an unprofitable, but legal, investment. b. for the commission of any business fraud. c. only in a case […]

Delite Candy Company hires Elton to sell Delite’s products in a certain area. Delite agrees to pay Elton a salary, plus commission, for a trial period. They also agree that Elton can sell using any methods and during any hours […]

Mariah promises to pay her assistant Nadine $10,000 in consideration of the services she provided over the years. Mariah never pays Nadine. Mariah is a. liable for payment of the $10,000. b. liable only if Nadine still works for Mariah. […]

Elizabeth buys a car from Silas, who is sixteen years old. Elizabeth then wants to sell the car to her neighbor, John. Elizabeth’s title to the car is a. valid. b. voidable. c. void. d. good. SurgeStop Company makes electrical […]

Little Local Bank wrongfully fails to honor a check signed by its customer Andrea. Little Local Bank is a. not liable to Andrea for damages resulting from its refusal to pay. b. only liable to Andrea for damages resulting from […]

Corner Market sells groceries. Delite Food & Drug Store sells groceries and fills prescriptions. The chief responsibility to prevent unsafe food and drugs from being sold rests with a. the Consumer Product Safety Commission. b. no single federal agency. c. […]

George and James create an agency relationship to facilitate the sale of illegal narcotics. This agency relationship a. is illegal. b. is legal. c. will be recognized by some states, but not others. d. can exist, but will be subject […]

Larceny relies on fear and force. Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may […]

Archie Carroll’s conceptualization of social responsibility includes all but which of the following components? a) economic responsibilities b) legal responsibilities c) ethical responsibilities d) philanthropic responsibilities e) none of the above The federal organization charged with monitoring illegal workplace discrimination […]

The ethics and compliance officer’s primary duty is to: a) manage the organization’s internal reporting system b) report wrongdoing to the management team c) supervise whistleblowing within the organization d) all of the above e) none of the above If […]

Among the most important features employees want in a job are all but which of the following? a) job security b) benefits c) compensation d) opportunities to use skills e) none of the above Legislation developed in response to the […]

Which of the following is not a provision of the Sarbanes-Oxley Act (SOX)? a) protection for whistleblowers b) creation of the Public Company Accounting Oversight Board c) establishment of an anonymous reporting mechanism for employees to report fraud d) auditors […]

______________ refer(s) to treating everyone with dignity. a) Fairness b) Respect for others c) Values d) all of the above e) none of the above One approach to community giving, most likely to situate a company as a community leader […]

An employee who observes ethical misconduct at work but does not discuss the matter with the person engaged in the misconduct or with someone else in the organization with authority is engaging in _____________. a) whistleblowing b) internal communications c) […]

The Equal Employment Opportunity Commission (EEOC) recommends applying a ___________ rule to determine whether an apparently nondiscriminatory selection process may result in disparate impacts. a) two-thirds b) four-fifths c) half-and-half d) civil rights e) none of the above “Gut reactions” […]

People who behave unethically won”t be deterred by notifications that job screens for ethics are part of the hiring process. Income inequality is unique to capitalist societies. Answer: False Several resources including nonprofit advocacy and lobbying organizations exist to provide […]

Regardless of an organization’s size, all employees should be directly involved in writing a corporate Code of Ethics. The number of companies that incorporate Codes of Ethics has decreased with the advent of more government regulation. Answer: False All firms […]

Consistent with best practices in ethics training, at least one mandatory ethics training should be offered annually. Individuals in the workplace are generally treated the same, regardless of age. Answer: False To avoid discriminating based on national origin, employers are […]

It is possible to assess the “ethical culture” of an organization through use of survey instruments. Recognizing how much effort an employee exerts at work, and the dynamic that not working hard can affect other workers, is an example of […]