Business Law
Exam Answer Key
Course Introduction
Business Law provides an overview of the legal principles and frameworks governing the business environment. This course covers key topics such as contracts, agency, sales, negotiable instruments, business organizations, and government regulation. Students will learn how laws affect business operations, decision-making, and risk management, as well as how to identify and address legal issues commonly encountered in business activities. Emphasis is placed on practical application, ethical considerations, and understanding the impact of legal systems on both domestic and international business practices.
Recommended Textbook
Fundamentals of Business Law Summarized Cases 9th Edition by Roger LeRoy Miller
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41 Chapters
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2290 Flashcards
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Page 2
Chapter 1: The Legal and Constitutional Environment of Business
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Sample Questions
Q1) In Export Co.v.Finance Corp. ,there is no precedent on which the court can base a decision.The court can consider
A)neither public policy nor social customs and values.
B)public policy but not social customs or values.
C)public policy or social customs and values.
D)social customs or values but not public policy.
Answer: C
Q2) The Securities Exchange Commission (SEC)is an administrative agency.Like other administrative agencies,the SEC was established to
A)act as a liaison between federal and state governments.
B)impose uniform laws on the states.
C)perform a specific function.
D)standardize laws for the executive and judicial branches.
Answer: C
Q3) The law establishes rights,duties,and privileges that are consistent with the values of society.
A)True
B)False
Answer: True
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Chapter 2: Traditional and Online Dispute Resolution
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Sample Questions
Q1) The jurisdiction of a state court of appeal is substantially limited to hearing appeals.
A)True
B)False
Answer: True
Q2) A state court can exercise jurisdiction over any property within the boundaries of the state regardless of the property owner's location.
A)True
B)False
Answer: True
Q3) Inferior Company sells products that are poorly made.Jack,who has never bought an Inferior product,files a suit against the company,alleging that its products are defective.The firm's best ground for dismissal of the suit is that Jack does not have A)certiorari.
B)jurisdiction.
C)standing.
D)sufficient minimum contacts.
Answer: C
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Chapter 3: Ethics and Business Decision Making
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Sample Questions
Q1) Bribery of foreign government officials is both an ethical and a legal issue.
A)True
B)False
Answer: True
Q2) A business organization and its actions cannot be based on trust.
A)True
B)False Answer: False
Q3) Some U.S.bribery laws are directed toward accountants.
A)True
B)False
Answer: True
Q4) Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work.This requires that the employees
A)categorize the issues according to legality,morality,and profitability.
B)consider only the benefits that would accrue to them personally.
C)look only at the result,regardless of the means to attain it.
D)weigh the consequences that would follow if everyone acted the same.
Answer: D
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Chapter 4: Torts and Cyber Torts
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Sample Questions
Q1) Under the doctrine of comparative negligence,both the plaintiff's and the defendant's negligence are taken into consideration.
A)True
B)False
Q2) The extreme risk of an activity is a primary basis for imposing strict liability.
A)True
B)False
Q3) Caleb is driving a car in which Dotty is a passenger when an accident occurs.Caleb and Dotty are emotionally rattled,but neither is physically hurt.Caleb is not liable to Dotty on a negligence theory because
A)both parties were emotionally rattled.
B)Caleb did not apparently intend to cause an accident.
C)Dotty must have been comparatively negligent.
D)Dotty was not injured.
Q4) Disparagement of property is another term for slander of quality.
A)True
B)False
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Chapter 5: Intellectual Property and Internet Law
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Sample Questions
Q1) Because the Internet is vast,the unauthorized use of another's mark in a domain name is generally permissible.
A)True
B)False
Q2) The process behind the production of "Fast Pace," a racecar video game,is protected by
A)copyright law.
B)patent law.
C)trademark law.
D)trade secrets law.
Q3) A copy must be exactly the same as the original to infringe a copyright.
A)True
B)False
Q4) RiteMade Machinery,Inc. ,designs,makes,and sells a drill press.Steel Equipment Company copies the design without RiteMade's permission.Steel's conduct is actionable provided
A)consumers are confused.
B)Steel's conduct is intentional.
C)Steel's conduct reduces the value of RiteMade's design.
D)RiteMade's design is patented.
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Chapter 6: Criminal Law and Cyber Crime
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Sample Questions
Q1) A criminal case must be proved beyond a reasonable doubt.
A)True
B)False
Q2) Rick manages an illegal gambling operation in his Sushi Bar & Grill.Rick reports the profits of the gambling operation as income from Sushi's legitimate activities on its tax returns.This is
A)embezzlement.
B)larceny.
C)money laundering.
D)no crime.
Q3) Computer fraud is a state,not a federal,crime.
A)True
B)False
Q4) Jake is charged with embezzlement.Embezzlement is not robbery because embezzlement may be committed without A)a criminal act.
B)a criminal intent.
C)taking property from its owner.
D)the use of force or fear.
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Chapter 7: Nature and Classification
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Sample Questions
Q1) Phil enters into a contract with Vacation Resorts,Inc. ,to work as a chef.Under the plain meaning rule,the meaning of this contract must be determined by reference to
A)any available evidence.
B)any relevant extrinsic evidence.
C)the face of the instrument.
D)the later testimony of the parties.
Q2) Informal contracts are usually based on substance rather than form. A)True
B)False
Q3) Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct
A)defines the contract's terms.
B)finds the contract's facts.
C)terminates any unintended consequences.
D)undercuts any terms based on the facts.
Q4) An executory contract is one that has been fully performed. A)True B)False
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9
Chapter 8: Agreement in Traditional and E-Contracts
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Sample Questions
Q1) Michelle gives out a business card with an e-mail address on it.According to the comments that accompany the UETA,it may be reasonable to infer that Michelle has consented to
A)transact business electronically.
B)submit to the jurisdiction of any selected forum.
C)accept and respond to any correspondence sent to that address.
D)nothing.
Q2) Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office.Kyle sends a rejection first,then changes his mind and sends an acceptance.Whether they have a contract is determined by A)Kyle's rejection.
B)Kyle's subjective intent.
C)whatever Jane decides.
D)whether Kyle's rejection or acceptance is received first.
Q3) An auction-"we ask you to bid on this item"-is an offer.
A)True
B)False
Q4) An acceptance must be unequivocal.
A)True
B)False
Page 10
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Chapter 9: Consideration,capacity,and Legality
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Sample Questions
Q1) A guardian can enter into legally binding contracts on behalf of a mentally incompetent person.
A)True
B)False
Q2) On Tom's eighteenth birthday,he decides that he no longer wants to keep a car he bought from U-Pick Autos,when he was seventeen.His right to disaffirm the deal will depend on
A)the car's condition when Tom bought it.
B)the car's current condition.
C)whether Tom acts within a reasonable period of time.
D)whether U-Pick has the right to disaffirm.
Q3) If the purpose of a licensing statute is to protect the public from unlicensed practitioners,a contract with an unlicensed professional is illegal.
A)True
B)False
Q4) A bargained-for exchange is one of the elements of consideration.
A)True
B)False
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11
Chapter 10: Defenses to Contract Enforceability
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Sample Questions
Q1) A contract involving a sale is the only contract relating to an interest in land that must be in writing to be enforceable.
A)True
B)False
Q2) Randy and Beach Biz Company enter into an oral contract under which Randy agrees to clean Beach Biz's office for two years.This contract is enforceable by
A)Randy only.
B)Beach Biz only.
C)either party.
D)neither party.
Q3) Elle buys a new textbook for $100 and a used car for $5,000,and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month.The Statute of Frauds covers
A)the apartment lease,and the textbook and car purchases.
B)the apartment lease and the car purchase only.
C)the apartment lease only.
D)the textbook and car purchases only.
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Page 12
Chapter 11: Third Party Rights and Discharge
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Sample Questions
Q1) Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys.Gladys is
A)an assignee.
B)an intended beneficiary.
C)an incidental beneficiary.
D)a delegatee.
Q2) All rights can be assigned.
A)True
B)False
Q3) If a contract requires performance to the personal satisfaction of a party,the party must in all cases be personally satisfied.
A)True
B)False
Q4) If a contract condition is not satisfied,the obligations of the contracting parties are discharged.
A)True
B)False
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13
Chapter 12: Breach and Remedies
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Sample Questions
Q1) Dobry Die & Mold,Inc. ,enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equipment.If Chet's delays the repair for five days,knowing that Dobry will lose a certain percentage of profit for the delay,Dobry might be awarded consequential damages to
A)establish,as a matter of principle,that Chet's acted wrongfully.
B)provide Dobry with funds for a foreseeable loss beyond the contract.
C)provide Dobry with funds for its loss of the bargain.
D)punish Chet's and set an example to deter others from similar acts.
Q2) Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.
A)True
B)False
Q3) Punitive damages are almost never available in contract disputes. A)True
B)False
Q4) Consequential damages are foreseeable damages that arise from a party's breach of a contract.
A)True
B)False
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Chapter 13: The Formation of Sales and Lease Contracts
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Sample Questions
Q1) If a contract for a sale of goods does not include a quantity term,it is a requirements contract.
A)True B)False
Q2) If a contract for a sale of goods does not include a price term,a reasonable price can be determined by looking at the market for the goods.
A)True B)False
Q3) Identification takes place when specific goods are designated as the subject matter of a sales or lease contract.
A)True
B)False
Q4) Unless a contract provides otherwise,it is assumed to be a destination contract. A)True B)False
Q5) Article 2 of the UCC governs contracts for sales of services. A)True B)False
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Chapter 14: Performance Breach of Sales Lease Contracts
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Sample Questions
Q1) Natural Foods,Inc. ,orders "Grade A" oil from Olive Grove Farms to process and sell to Pic 'N Pay Grocers.Olive Grove ships "Grade B" oil,which Natural Foods accepts.To recover damages for the nonconformity,Natural Foods must give notice of the breach within a reasonable time to
A)Olive Grove only.
B)Olive Grove,Pic 'N Pay,and the appropriate government agency.
C)Pic 'N Pay only.
D)the appropriate government agency only.
Q2) 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.
C)$500.
D)$0.
Q3) A buyer who obtains substitute goods to replace goods that a seller did not deliver can also recover damages from the seller.
A)True
B)False
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Page 16
Chapter 15: Warranties and Product Liability
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Sample Questions
Q1) A seller must provide a written warranty for consumer goods.
A)True
B)False
Q2) Safe-Rite Company makes electrical cords and other connectors for electronic devices.Tina files a product liability suit against Safe-Rite,alleging a warning defect.Under the Restatement (Third)of Torts: Products Liability,in deciding whether to hold Safe-Rite liable,the court may consider A)neither the characteristics of expected users nor the content of any warning. B)only the characteristics of expected users. C)only the content of any warning.
D)the characteristics of expected users and the content of any warning.
Q3) Any product may be made entirely safe for all consumption. A)True B)False
Q4) Warranties of title do not arise in most sales contracts. A)True B)False
Q5) Express warranties displace all inconsistent implied warranties.
A)True
B)False
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Chapter 16: Negotiability,transferability,and Liability
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Sample Questions
Q1) Petra signs a check payable to Quincy,who indorses the back,gives it to Regional Credit Union,and receives cash.The transfer of the check from Quincy to the credit union is
A)an assignment.
B)a negotiation.
C)a payment.
D)a sale.
Q2) A maker is secondarily liable on an instrument. A)True
B)False
Q3) The dishonor of an instrument relieves secondary parties of liability. A)True
B)False
Q4) Vladimir negotiates a bearer instrument to Wendy by A)assignment.
B)delivery.
C)presenting it in response to a demand by Wendy.
D)promising to pay.
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Chapter 17: Checks and Banking in the Digital Age
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Q1) A bank has no right to charge a customer's account for the amount of a stale check.
A)True
B)False
Q2) First Community Bank agrees to accept a check by setting aside sufficient funds to cover the amount.This check is considered
A)cashed.
B)certified.
C)deposited.
D)provisionally credited.
Q3) Trudy forges Uma's signature on a check "payable to the order of Trudy" drawn on Uma's account in Verity Bank.Most likely,if the bank pays the check
A)the Federal Reserve will reimburse all parties for their costs.
B)the loss will be apportioned among all of Verity's customers.
C)Uma will be liable for the amount.
D)Verity will have to recredit Uma's account.
Q4) Generally,a bank has no obligation to pay a customer's overdrafts.
A)True
B)False
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Page 19
Chapter 18: Security Interests in Personal Property
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Q1) Khalil holds a security interest in inventory owned by Luc.Khalil assigns his interest in the inventory to Mal.Mal becomes the secured party of record
A)automatically.
B)if Khalil advises Luc of the assignment.
C)if Mal advises Luc of the assignment.
D)if Mal files a uniform amendment form.
Q2) A security interest may attach to intangible collateral but cannot be perfected. A)True B)False
Q3) Lena borrows from Mac and Nicol,using the same collateral for both loans.Only Nicol has a perfected security interest.Lena defaults on both loans.The party with first rights to the collateral is A)Lena.
B)Mac and Nicol,in proportion to Lena's debt to each.
C)Mac only.
D)Nicol only.
Q4) An improper filing renders a secured party unperfected.
A)True B)False
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Chapter 19: Creditors Rights and Bankruptcy
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Q1) Delilah files a petition in bankruptcy.The proceeding is governed by the Bankruptcy Code,which is part of A)state law.
B)federal law.
C)the U.S.Constitution.
D)international law.
Q2) Personal property that is most often exempt from satisfaction of judgment debts does not include livestock.
A)True
B)False
Q3) Tippi believes that she needs to obtain a discharge in bankruptcy through an individual's repayment plan.This proceeding can be initiated by a filing of a petition by A)a creditor.
B)a debtor.
C)a corporation.
D)a partnership.
Q4) A bankruptcy court may deny a discharge based on the debtor's conduct.
A)True
B)False
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Chapter 20: Mortgages Foreclosures After the Recession
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Q1) Federal mortgage disclosure requirements apply to the written materials that a lender provides and to any oral representations.
A)True
B)False
Q2) The initial interest rate is the part of a purchase price that is paid up front in cash.
A)True
B)False
Q3) Tracy borrows $30,000 from Secure State Bank.The lender accepts Tracy's equity in her home as collateral,which can be seized if the loan is not repaid on time.With respect to any proceeding that occurs if Tracy fails to make the payments,this loan is subordinated.This means that it
A)takes a higher priority.
B)takes a lower priority.
C)has the same priority as the primary mortgage.
D)fluctuates with the market value of the property.
Q4) Home equity is the portion of a home's value that is "paid off."
A)True
B)False
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Page 22
Chapter 21: Agency Relationships
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Q1) An independent contractor can be an agent for his or her employer.
A)True
B)False
Q2) A licensed professional can employ an unlicensed agent to perform professional actions.
A)True
B)False
Q3) A fiduciary relationship involves trust and confidence.
A)True
B)False
Q4) Lenore is the sole proprietor of Mall Kiosks.With respect to contracting for her own business interests,Lenore is
A)an agent and has the authority.
B)an agent but does not have the authority.
C)not an agent and does not have the authority.
D)not an agent but does have the authority.
Q5) Express authority is authority declared in clear,direct,definite terms.
A)True
B)False
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Chapter 21: Management Perspective:
Independent-Contractor Negligence
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Q1) According to the court in the Media General Operations,Inc.v.National Labor Relations Board case,in determining whether a discharge for an employee's "outburst" in violation of a workplace rule violates the NLRA,significant factors include
A)the ability of the employee to obtain employment elsewhere.
B)the nature of an employee's outburst.
C)the sensitivity of those who witness the outburst.
D)the specific phrasing of the rule.
Q2) According to the dissent's opinion in Media General Operations,Inc.v.National Labor Relations Board,in determining whether a discharge for an employee's "outburst" in violation of a workplace rule violates the NLRA,the court should focus on whether
A)the arrest of the employee is warranted.
B)the NLRA generally protects the employee from discharge.
C)the remark undermines workplace discipline.
D)the rule is fair and justifiable.
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Chapter 22: Employment, immigration, and Labor Law
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Q1) An oral promise that an employer makes to employees regarding discharge policy may be considered part of an implied contract.
A)True
B)False
Q2) Requiring union membership as a condition of continued employment is legal.
A)True
B)False
Q3) A small difference in job content can justify higher pay for one gender.
A)True
B)False
Q4) Staffing Solutions Corporation is subject to the Social Security Act,which
A)covers only employees who do not receive employer-paid pensions.
B)governs state unemployment compensation funds.
C)provides retirement,survivors,and disability insurance.
D)regulates disputes between unions and management.
Q5) To recruit employees from other countries,an employer must first complete a verification process.
A)True
B)False
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Chapter 23: Sole Proprietorships, partnerships, Limited Liability Co
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Q1) Sable and Rex agree while talking on the phone to form a partnership to deal in transfers of real property,which fall under the Statute of Frauds.Their partnership agreement is legally binding
A)only if a copy of the agreement is filed in the appropriate state office.
B)only if the agreement is reduced to writing.
C)only if an information return is filed with the Internal Revenue Service.
D)without more.
Q2) Bernie wants to go into the business of trucking refrigeration units.Among the reasons that would probably convince Bernie to set up his business as a sole proprietorship would be
A)its greater flexibility.
B)its limited liability.
C)its perpetual existence.
D)the ease of transferring the business to others.
Q3) Under no circumstances can a non-partner be regarded as an agent whose acts are binding on the partnership.
A)True
B)False
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Chapter 24: Corporate Formation, financing, and Termination
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Q1) Incredible eSales Corporation is a new Internet business.How can Incredible eSales obtain capital to finance its operations?
Q2) A court will not pierce the corporate veil of a corporation that is formed merely to evade an existing legal obligation.
A)True
B)False
Q3) A merger between Grain Mills Corporation and Farm2Fork Distribution Inc.can be expressed as Grain Mills + Farm2Fork = A)Farm2Fork.
B)Harvest Dining Corporation.
C)Harvest Dining Corporation + EZ Brewing Company.
D)EZ Brewing Company.
Q4) Like other corporations,Biopesticide Corporation can extend its operations through A)a share exchange.
B)a dissolution.
C)a termination.
D)a winding up.
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Chapter 25: Corporate Directors, officers, Shareholders
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Q1) Guy is Hot Java Company's majority shareholder.Guy decides to sell his Hot Java stock.The sale will be an effective transfer of the control of the company.Does Guy owe a duty to Hot Java or its minority shareholders in this situation?
Q2) Shareholder voting agreements are usually held to be invalid and unenforceable. A)True B)False
Q3) A board of directors can delegate some functions to corporate officers. A)True B)False
Q4) Bea is a shareholder of Candy Confections Corporation.The right to inspect corporate books and records is
A)held by Bea only if she is a director.
B)held by Bea,without restrictions.
C)held by Bea,with some restrictions.
D)not held by Bea.
Q5) In many corporations,the directors are also the chief corporate officers. A)True B)False
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Chapter 26: Investor Protection, insider Trading, Corp Gov
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Q1) The least common forms of securities are bonds issued by corporations.
A)True
B)False
Q2) Refer to Fact Pattern 26-3.If Dhani is liable under the Securities Exchange Act of 1934,it will be because the information on which he based his purchase of Eureka stock was
A)a forward-looking forecast.
B)not material.
C)not yet public.
D)not yet true.
Q3) Cotton Products Corporation is a public company whose shares are traded in the public securities markets.The Securities Act of 1933 requires Cotton to disclose financial and other significant information concerning its securities in order to A)increase corporate accountability by imposing responsibility on chief corporate executives.
B)prevent insiders from trading among themselves.
C)protect investors.
D)provide a "safe harbor" for companies that make forward-looking statements.
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Chapter 27: Personal Property and Bailments
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Q1) In most bailments,the bailor must notify the bailee of hidden defects that the bailor knows or could have discovered with reasonable diligence.
A)True
B)False
Q2) John steals an old,battered bicycle that is parked,unlocked,in front of a convenience store.He repairs,paints,and replaces parts on the bike until it is like new.The original owner,Kim,claims the bike.The bike belongs to
A)John and Kim as tenants in common.
B)John because he made substantial improvements to it.
C)John because Kim claimed it only after John improved it.
D)Kim because John stole it.
Q3) Property voluntarily placed somewhere by its owner and inadvertently forgotten is abandoned property.
A)True
B)False
Q4) In an ordinary bailment,a bailee has the right to limit his or her liability.
A)True
B)False
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Page 30
Chapter 28: Real Property and Landlord-Tenant Law
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Q1) Life tenants are persons who share ownership rights simultaneously.
A)True
B)False
Q2) Bakri owns a house.In the house,on a tile floor is a throw rug.Most likely to meet the definition of a fixture is
A)the house.
B)the throw rug.
C)the tile floor.
D)none of these choices.
Q3) The possession of land without right is a tenancy at will.
A)True
B)False
Q4) Plant life is not considered to be real property.
A)True
B)False
Q5) For a party to take by adverse possession,the party's possession must not be open,visible,or notorious.
A)True
B)False
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Chapter 29: Insurance, wills, and Trusts
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Q1) Liability insurance protects against liability imposed on the insured as a result of injuries to the person or property of another.
A)True
B)False
Q2) An insurer has a duty to avoid the payment of claims.
A)True
B)False
Q3) A loss sustained between the time of application and the delivery of an insurance policy may not be covered.
A)True
B)False
Q4) Myles obtains a business liability insurance policy from Nova Insurance Company for Myles's Hydraulics & Transmission Repair shop.Nova can cancel the policy
A)if Myles increases the risk assumed by the Nova.
B)if Myles files a claim under the policy.
C)if Myles appears as a witness in a case brought against Nova.
D)under no circumstances.
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Chapter 30: Liability of Accountants Other Professionals
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Q1) An accountant is required to discover every impropriety,defalcation,and fraud in a client's books.
A)True
B)False
Q2) Lars accuses Moe,an attorney,of committing malpractice.Malpractice is
A)a breach of ethics.
B)a defalcation.
C)a mistake in judgment.
D)professional negligence.
Q3) Under rules of professional misconduct,an attorney should not engage in conduct involving deceit.
A)True
B)False
Q4) Lulu,an accountant,conducts an audit of Microstuff Toys,Inc.After the conclusion of the audit,the working papers created in preparing the audit must be
A)disposed of immediately.
B)kept until the Public Company Accounting Oversight Board's review.
C)maintained for seven years.
D)retained forever.
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Chapter 31: International Law in a Global Economy
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Q1) Tariffs are imposed only on exports.
A)True
B)False
Q2) Restrictions on exports may include tariffs.
A)True
B)False
Q3) Fabiola,or any foreign citizen,can bring a civil suit in a U.S.court for
A)a violation of a treaty of the United States only.
B)a violation of a treaty of the United States or of the law of nations.
C)a violation of the law of nations only.
D)no purpose.
Q4) Expropriation occurs when a government seizes private property for an illegal purpose and awards just compensation.
A)True
B)False
Q5) Refer to Fact Pattern 31-1.First State Bank
A)is responsible for making sure that the parties perform the contract.
B)will make payment once the transaction has been completed.
C)will make payment when Lapland presents the proper documents.
D)none of the above.
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Chapter 32: Adapting the Law to the Online Environment:
The Supreme Court Upholds a Law That Prohibits Pandering
Virtual Child Pornography
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Q1) World Investment & Trading,Inc.(WIT),encourages its employees to build trust with its customers and other companies.Unfounded complaints and exaggerated charges leveled against WIT online would most likely be regarded by a court as
A)an expression of fact.
B)a form of speech protected by the First Amendment.
C)an inappropriate online disclosure.
D)libelous.
Q2) In Smartphone Games Inc.'s suit against Thermopylae Apps Corporation,Thermopylae seeks to discover electronically stored information (ESI)that should be in Smartphone's possession.If Smartphone did not preserve the ESI despite a clear duty to do so,the company should most likely
A)ask the court to sanction Thermopylae for an unreasonable request.
B)reconstruct the ESI to the best of its ability.
C)refuse to provide the ESI on the ground that it is confidential.
D)settle the dispute.
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Q1) According to the dissent in MedImmune,Inc. ,v.Genentech,Inc.case,a patent licensee can challenge the validity of a licensed patent
A)only after breaching the license agreement.
B)only before breaching the license agreement.
C)without breaching the license agreement.
D)under no circumstances.
Q2) One night,Bertram discovers Clu,an intruder,in Bertram's Deli Delite store after the store is closed.Bertram shoots and kills Clu.With respect to criminal prosecution for this use of deadly force,under a duty-to-retreat law Bertram
A)is presumed innocent or may be exempt from prosecution.
B)must prove that he first told Clu to "Get out!" or to "Retreat!"
C)must prove that he first tried to retreat or that his life was in danger.
D)must prove that Clu did not try to retreat or acted without regard for his own life.
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Chapter 35: Management Perspective: E-Mailed
Credit-Card Receipts
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Q1) Gabe asks his cousin Francie to sacrifice her career,move her home and family,and provide services,at a lower salary than usual,to Gabe's new Farm-to-Fork Produce Company.Gabe tells Francie that she will jointly own and run the firm.Francie agrees.Later,after the firm gains the benefit of Francie's services,Gabe forces Francie out.According to the dissent in the Braddock case,these facts sufficiently allege the elements of a claim for A)damages based on quasi contract.
B)recovery in fraud.
C)relief from a unilateral mistake.
D)none of the choices.
Q2) Dani asks her cousin Cedric to sacrifice his career,move his home and family,and provide services,at a lower salary than usual,to Dani's new Commercial Shipping Company.Dani tells Cedric that he will jointly own and run the firm.Cedric agrees.Later,after the firm gains the benefit of Cedric's services,Dani forces Cedric out.According to the majority in the Braddock case,these facts sufficiently allege the elements of a claim for A)damages based on quasi contract.
B)recovery in fraud.
C)relief from a unilateral mistake.
D)none of the choices.
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Chapter 34: Case Study With Dissenting Opinion: Prestridge
V Bank of Jena
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Q1) More than thirty days after Rhett receives his account statement from Silverado Bank,he notifies the bank that Thalia forged Rhett's name on some of the checks that the bank has cashed.The majority in Prestridge v.Bank of Jena would most likely hold Silverado liable for A)all checks.
B)checks that were cashed less than thirty days after the statement. C)checks that were cashed more than thirty days after the statement. D)no checks.
Q2) In the facts of the previous question,suppose that Thalia had had access to Rhett's checks through his carelessness.The majority in the Prestridge case would then most likely hold Silverado liable for A)all checks.
B)checks that were cashed less than thirty days after the statement. C)checks that were cashed more than thirty days after the statement. D)no checks.
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Chapter 36: Adapting the Law to the Online Environment: The Thorny Issue of Taxing Internet Sales
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Q1) According to the majority in Casserlie v.Shell Oil Co. ,a commercially reasonable and nondiscriminatory price is
A)evidence of a seller's good faith.
B)parol evidence.
C)unconscionable.
D)a requirement for an inquiry into the seller's motives.
Q2) Fleet Feet,an online travel company,buys blocks of rooms from Grande Hotel,a hotel in Hyper City,at a wholesale rate.Fleet Feet reslls the rooms to consumers at a retail rate.One recent effort by cities to collect taxes from e-commerce has focused on A)hotels that sell blocks of rooms at wholesale rates.
B)non-resident consumers who reserve rooms in in-state hotels.
C)online travel companies.
D)the dire financial straits of the cities during the latest recession.
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The Debt That Never Goes Awayits Discharged in Bankruptcy but Still on the Debtors Credit Report
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Q1) In the facts of the first question,according to the reasoning of the dissent in the Central case,the prevailing party would be
A)both Vance and WSU.
B)neither Vance nor WSU.
C)Vance.
D)WSU.
Q2) Unicameral Production,Inc. ,files for bankruptcy.Vance,Unicameral's bankruptcy trustee,wants to recover a transfer that Unicameral made to Wisconsin State University (WSU)less than ninety days earlier.WSU asserts its sovereign immunity.Under the majority's holding in Central Virginia Community College v.Katz,the party most likely to prevail in this situation is
A)both Vance and WSU.
B)neither Vance nor WSU.
C)Vance.
D)WSU.
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Q1) The holding in Notz v.Everett Smith Group,Ltd.shows that majority shareholders should
A)act ethically and legally in the best interest of their corporation.
B)always act in the best interest of minority shareholders.
C)always act in their own best interest.
D)give control of their corporation to a disinterested third party.
Q2) Ren is a shareholder of Star Corporation.Ren wants to amend Star's bylaws to require it to publish the names of shareholder-nominated candidates for positions on the board of directors.Under the Securities and Exchange Commission's "notice and access" e-proxy rules,Ren can solicit proxies from other Star shareholders on this proposal by posting proxy materials on a publicly accessible Web site and sending a paper notice to A)any Star shareholder Ren selects.
B)each Star shareholder.
C)Star Corporation.
D)the Securities and Exchange Commission.
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Chapter 39: Case Study With Dissenting Opinion: Kovarik V
Kovarik
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Q1) Glen and Heidi are married.Later,Heidi's parents invest their savings in certificates of deposit (CDs)in the names of Heidi and her sister Irene.Their parents keep the CDs.When Glen files for divorce from Heidi,he lists the CDs as marital assets.Before the court divides the assets,Irene cashes in the CDs at her parents' instruction without sharing the proceeds with Heidi.Under the reasoning of the majority in Kovarik v.Kovarik,the court will most likely rule that,with respect to Glen and Heidi's marital estate,the CDs are
A)not included because Heidi's parents did not intend to give them to her.
B)not included because Irene cashed them without sharing the proceeds.
C)included because Glen and Heidi were married when the CDs were acquired.
D)included because Heidi's parents gave up control when the CDs were placed in the names of Heidi and Irene.
Q2) In the facts in the previous question,if the CDs are seen as the property of Heidi and Irene,the sisters are most likely
A)joint tenants.
B)tenants at sufferance.
C)tenants by the entirety.
D)tenants in common.
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Chapter 40: Unit Case Study With Dissenting Opinion: Dole
Food Co V Patrickson
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Q1) In the facts of the previous question,according to the reasoning of the dissent in Dole Food Co.v.Patrickson,parties who would be potentially subject to suit in U.S.courts would include
A)Amigos and Bueno.
B)neither Amigos nor Bueno.
C)only Amigos.
D)only Bueno.
Q2) In the facts of the previous questions,a U.S.court might pierce Amigos and Bueno's corporate status to impose liability on their owners,including the government of Chile,if the firms failed to follow or be involved in
A)business activities.
B)corporate formalities.
C)ethical practices.
D)foreign affairs
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