Entrepreneurship and the Legal Environment
Final Exam
Course Introduction
This course explores the dynamic intersection between entrepreneurship and the legal environment, equipping students with essential knowledge to start, manage, and grow businesses while navigating legal challenges. Key topics include the formation and structure of business entities, intellectual property rights, contracts, employment law, regulatory compliance, and strategies for risk management. Through case studies and practical examples, students gain insight into the critical legal considerations entrepreneurs face and develop skills to identify and address legal issues that impact business decisions and long-term success.
Recommended Textbook Business Law and the Legal Environment Standard Edition 6th Edition by
Available Study Resources on Quizplus
45 Chapters
2060 Verified Questions
2060 Flashcards
Source URL: https://quizplus.com/study-set/1002
Page 2
Jeffrey F. Beatty
Chapter 1: Introduction To Law
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19813
Sample Questions
Q1) Tony raped Jane in the parking lot of Joe's Brew Pub.The District Attorney's office prosecuted Tony on rape charges.Subsequently,Jane filed a lawsuit against Tony for money damages.Classify each legal action.
A) The District Attorney's case was a criminal case; Jane's lawsuit was a civil case.
B) The District Attorney's case was a civil case. Jane's lawsuit was a criminal case.
C) Both cases are criminal.
D) Both cases are civil.
Answer: A
Q2) Common law is a body of cases decided by legislatures.
A)True
B)False
Answer: False
Q3) The doctrine of stare decisis:
A) makes the legal process more expensive.
B) is an equitable remedy.
C) makes the law more predictable.
D) is unimportant to the common law.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Business Ethics And Social Responsibility
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19814
Sample Questions
Q1) The behavior of top executives regarding ethical issues has little effect on the behavior of the employees of the organization.
A)True
B)False
Answer: False
Q2) Kent needed to reduce his workforce by five people.Before notifying them,he thought about how he would feel if he were the one receiving the news and he tried to find ways to help the employees in their transition.Kent was exercising the value of:
A) courage.
B) compassion.
C) fairness.
D) responsibility.
Answer: B
Q3) Society is hurt when business managers behave ethically.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Dispute Resolution
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19815
Sample Questions
Q1) Holt and Collins decide to have their dispute arbitrated by Corrales.Which of the following will NOT be a result of the arbitration?
A) Corrales will render a binding decision.
B) Holt and Collins retain the right to a class action.
C) Holt and Collins give up the right to discovery.
D) Corrales need not give reasons for the decision.
Answer: B
Q2) In order for a federal court to have jurisdiction,there must be a federal question involved and at least $75,000 in dispute.
A)True
B)False
Answer: False
Q3) The fastest growing method of dispute resolution in the United States is:
A) arbitration.
B) negotiation.
C) mediation.
D) litigation.
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
5
Chapter 4: Common Law,Statutory Law,And Administrative Law
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19816
Sample Questions
Q1) The Civil Rights Act of 1964,a federal statute,forbids discrimination on the basis of national origin in employment.The Equal Employment Opportunity Commission (EEOC)is the administrative agency that oversees the law.The EEOC issued Guidelines on Discrimination because of National Origin.According to one of the guidelines,the EEOC will presume a violation of the law if an employer sets a work requirement that employees must speak only English in the workplace.This is an interpretive rule because it interprets the Civil Rights Act.
A)True
B)False
Q2) The Environmental Protection Agency was investigating whether Exgrow,Inc.violated the Clean Air Act.Exgrow refused to give the EPA its computerized reports concerning pollution.To get the reports,EPA should use:
A) a stare decisis.
B) a de novo.
C) an excaliber.
D) a subpoena duces tecum.
Q3) Administrative agencies exist at the federal,state,and local levels.
A)True
B)False
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Constitutional Law
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19817
Sample Questions
Q1) Gadberry lives in a "common interest development" (CID)and has parked his new pickup truck in his driveway.The Neighborhood Association informs him that,according to their regulations,he may not have a truck in the sight of passersby.The Association has made an unconstitutional restriction of the property rights of residents of the CID.
A)True
B)False
Q2) Nevada passed a law banning all commercial billboards along state highways to improve the appearance of the environment.If this law were to be challenged,which of the following would a court examine to determine if the law is constitutional?
A) It would have to be established that the law furthers an interest of the state of Nevada to create a more aesthetically pleasing environment.
B) It would have to be shown that the law directly and materially advances the state's goal of a more aesthetically pleasing environment.
C) It would have to be shown that the law reaches no further than necessary to promote the state goal.
D) All of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Intentional Torts And Business Torts
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19818
Sample Questions
Q1) Krista,the Director of Advertising at Trein,Inc.,approved a series of magazine advertisements using a close-up photograph of celebrity look-alike models driving a train engine with the slogan,"Get on Board with Trein." Each ad included a signature,meant to look like that celebrity's autograph.Since in most cases,these "autographs" are not legible,this series of ads does not commit any tort.
A)True
B)False
Q2) An intentional tort involves conduct in which:
A) the defendant intended to harm the plaintiff.
B) the defendant intended a certain physical act which ends up injuring someone. C) injuries are caused to someone because of the defendant's neglect or oversight. D) there is resulting punishment, including prison, for the defendant.
Q3) Identify and discuss two specific causes of action a plaintiff can allege that deal specifically with privacy rights.
Q4) Public officials and public figures receive less protection from defamation than ordinary people.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Negligence And Strict Liability
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/19819
Sample Questions
Q1) An economic study has concluded that dram shop laws are effective in reducing underage drinking,over-intoxicated drinkers and bar employee drunkeness.
A)True
B)False
Q2) Phillip was waiting for a bus at a bus stop.Across the street and down the block,a mechanic negligently overinflated a tire he was intending to put onto Marsha's pickup truck.The exploding tire injured Marsha and frightened a neighborhood dog,which ran down the street and knocked Phillip down,injuring his knee.Phillip sued the mechanic.In applying the Palsgraf v.Long Island Railroad Co.decision to this case,Phillip would:
A) win because the mechanic was negligent in overinflating the tire, which led to Phillip's injury.
B) win based on negligence per se.
C) lose because the court would apply the doctrine of res ipsa loquitur.
D) lose because, although the mechanic's conduct was negligent toward Marsha, it was not a wrong in relation to Phillip, who was far away. The mechanic could not have foreseen injury to Phillip and therefore had no duty to him.
Q3) Discuss the concepts of contributory negligence and comparative negligence.
To view all questions and flashcards with answers, click on the resource link above.
Page 9
Chapter 8: Crime
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19820
Sample Questions
Q1) Dan was arrested and taken to an interrogation room for questioning.After signing a statement waiving his Miranda rights,he agreed to answer questions without a lawyer.After about ten minutes,he told the officers he changed his mind and wanted to talk to a lawyer before answering any more questions.The officers left the room and then came back in.They told Dan that his partner was confessing to the crime and that,"If your partner confesses first and makes a deal,you're the one who's going to go down for this." Dan looked at them without saying anything.After a minute,the officer began questioning Dan again and he confessed to the crime after about an hour.Is this confession admissible?
Q2) Important steps in the criminal process,in the proper order,include:
A) probable cause hearing, search, arrest, indictment, arraignment, plea bargain, and trial.
B) arraignment, booking, bail hearing, trial, and grand jury indictment.
C) arrest, probable cause hearing, motion to suppress, booking, and trial.
D) indictment, arrest, probable cause hearing, plea bargain, arraignment, trial, and appeal.
Q3) Compare and contrast money laundering and embezzlement.Give an example of each.
Q4) List and discuss the protections afforded criminal defendants by the Bill of Rights.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: International Law
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19821
Sample Questions
Q1) The primary antitrust law in the United States is the:
A) Wagner Act.
B) Sherman Act.
C) SEC Act of 1933.
D) Robinson-Patman Act.
Q2) Multinational enterprises are companies doing business in several countries simultaneously.
A)True
B)False
Q3) Zebra Toy Company invests a large sum of money in retail stores located in a foreign country.Zebra intends to bring its foreign earnings back home to the United States.This practice is known as:
A) repatriation of profits.
B) inflow profit streaming.
C) expropriation.
D) comity.
Q4) MagNet is a U.S.company based in Utah.It is negotiating to sell $4 million worth of computer goods to a French company,L'la.L'la is insisting that the contract be governed by the CISG.What are some of the primary differences between the UCC and the CISG?
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Introduction To Contracts
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19822
Sample Questions
Q1) Jennifer has offered to sell her laptop computer for $750 to Jack.She tells Jack that the computer is only six months old but,in fact,it is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is:
A) a void agreement because of the fraud involved.
B) a voidable contract, one that Jack can void.
C) a voidable contract, one that Jennifer can void.
D) a void contract because of the UCC.
Q2) When promissory estoppel is used by the courts,it is because there is NOT an enforceable contract present.
A)True
B)False
Q3) What is not required to establish promissory estoppel?
A) A promise made by the defendant.
B) A promise made by the plaintiff in response to the defendant's promise.
C) Reliance on the defendant's promise.
D) Enforcing the promise is the only way to avoid injustice.
Q4) List and briefly describe the basic elements of a contract.
Q5) Discuss the requirements of promissory estoppel.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Agreement
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19823
Sample Questions
Q1) Floyd offers to sell his 1967 Ford Mustang convertible to Tim.Before they conclude their negotiations,Floyd dies.Which of the following is true?
A) Floyd's heirs must sell the car to Tim.
B) Floyd's heirs must continue to negotiate the offer and sell the car, if a reasonable price can be determined.
C) The offer terminates automatically upon Floyd's death.
D) There is a contract if Tim accepts before learning of Floyd's death.
Q2) Candy,Inc.signed an agreement with Sweet Plantation.Under the contract,Candy,Inc.agreed to purchase all the sugar cane Sweet Plantation grew during the coming season.This contract will be unenforceable due to its vagueness.
A)True
B)False
Q3) Spangel Fashions sends out its spring and summer catalog to Cindy.Cindy falls in love with the cute dress featured on the front cover of the catalog.When Cindy calls to order the dress,she is informed that the company has sold out of the dress.Cindy is upset and claims that the store is in breach of contract.She argues that the catalog presented an offer,which she accepted when she called to order the dress.Is Cindy correct? Why/why not?
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Consideration
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19824
Sample Questions
Q1) Shelby hired Evan to drill a well on her property for $3,000.They both thought the soil and subsoil were normal for the area,but after he started drilling,Evan found a layer of rock that required him to purchase a special drill and required an extra ten hours of work.Evan demanded an extra $1,000 to complete the job.Discuss whether Shelby is liable for the additional $1,000.
Q2) Hilda owes Lex $3,000,which is an undisputed amount.If she offers him her car in full settlement of the debt and he accepts,the agreement is binding and he can no longer claim she owes him anything on the original debt.
A)True
B)False
Q3) Consideration can be a promise or an act.
A)True
B)False
Q4) An agreement in which a buyer agrees to buy all the goods produced by a manufacturer is known as:
A) a requirements contract.
B) an output contract.
C) an exclusive dealing contract.
D) an option contract.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Legality
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19825
Sample Questions
Q1) Larry has the largest pizza business in the city.He learns that Henry is thinking of opening a competing pizza and pasta delivery business.Larry gives Henry $25,000 to not open his proposed business in the same city.Which statement is correct?
A) The contract is voidable at Larry's option.
B) The contract is void for lack of consideration.
C) The contract is illegal and void.
D) The contract is enforceable.
Q2) E-mation,Inc hires Marvin to steal trade secrets from one of its competitors for $10,000.Marvin demands half of the money up front.E-mation pays Marvin $5000 but Marvin decides not to pursue theft of the trade secrets.E-mation sues Marvin for the return of the $5000.What will the court do with this contract?
A) The court will order Marvin to return the $5000.
B) The court will order Marvin to return the $5000 with interest.
C) The court will order Marvin to obtain the trade secrets.
D) The court will not do anything to help E-mation get its money back.
Q3) Zach sold a restaurant to Shane for $295,000.As part of the agreement,Zach promised not to open another restaurant business for three years within a 50-mile radius of the one sold.Is this agreement enforceable against Zach?
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Capacity And Consent
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19826
Sample Questions
Q1) Vince has begun forgetting things and is becoming very difficult to get along with.He is 85,has been ill,and is very fond of his housekeeper Annie.He gives a deed to Annie for all of his real property.At Vince's death,his children,who got only his photograph albums according to the will,ask that the deed be set aside and the land be put back in the estate for purposes of division among all the children.The probable result will be: A) since Vince was 85 he was probably incompetent and the court would rule for the children.
B) clearly Annie used her position of dominance to persuade Vince to deed her the property, and it will be set aside.
C) unless the children can prove that Vince was unable to understand what he was doing, or that Annie used her position to improperly influence Vince, Annie can keep the property.
D) None of the above.
Q2) Discuss two types of misrepresentation and how they differ.List the three things a party must show to rescind a contract based on misrepresentation.
Q3) Discuss the concept of a "material fact" in fraud situations.
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Written Contracts
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/19827
Sample Questions
Q1) Ethel's Exercise World plans to order three weight machines from Pete's Push,Pedal and Pull,Inc.for a total of $15,000.Pete's demands that Ethel's friend,Moneybags,a wealthy independent businesswoman (not connected with Ethel's business in any way)promise to pay Pete's for the three machines if Ethel's Exercise World does not.Which of the promises in this problem must be in writing to be enforceable?
A) The promise made by Ethel's Exercise World to buy the weight machines.
B) Moneybag's promise to pay if Ethel's Exercise World doesn't.
C) Both Moneybag's promise and Ethel's Exercise World's promise.
D) None of the promises in this problem need to be in writing.
Q2) Sweet Plantation,Inc.made a written contract with Candy,Inc.whereby Sweet Plantation agreed to supply all of Candy's sugar requirements for the next year at $.25 per pound.A dispute arose as to how much sugar Sweet is to supply.The parol evidence rule will bar Sweet's introduction of evidence concerning the intent of the requirements of Candy.
A)True
B)False
Q3) List the types of agreements that are within the statute of frauds and explain the consequences if the parties do not comply with the requirements of the statute of frauds.
To view all questions and flashcards with answers, click on the resource link above.
Page 17
Chapter 16: Third Parties
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19828
Sample Questions
Q1) Briefly discuss the enforceability of contracts by third parties.
Q2) Which statement most accurately describes third party beneficiary rights?
A) A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.
B) If a promisee intended to make a gift to the beneficiary, the beneficiary may not enforce the contract.
C) An intended third party beneficiary has no enforceable rights in a contract.
D) Incidental beneficiaries have enforceable rights against both contracting parties.
Q3) Most,but not all,contract rights are assignable.
A)True
B)False
Q4) If Casey assigns her rights to receive income from rental property to Errol,then Errol will legally acquire any rights to the income previously held by Casey.
A)True
B)False
Q5) Discuss the potential liability differences between a delegation and a novation.
To view all questions and flashcards with answers, click on the resource link above.
18
Chapter 17: Performance And Discharge
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19829
Sample Questions
Q1) A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee.The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.
A)True
B)False
Q2) Which of the following events would probably excuse performance of a contract based on commercial impracticability?
A) The price of a raw material increases slightly so that the contract will not be as profitable.
B) An unforeseeable trade embargo causes prices to triple.
C) The promisor of personal services dies.
D) The subject matter of the contract is destroyed.
Q3) Name and describe the types of conditions,explain how conditions are created,and discuss whether it is important to identify the type of condition in a contract.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Remedies
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19830
Sample Questions
Q1) Under the UCC,if a seller of goods breaches the contract,the buyer:
A) must "cover."
B) may receive only the current market value of the goods.
C) may "cover" and then receive the difference between the original contract price and the "cover" price.
D) will be awarded the difference between the original contract price and the market value of the goods if the buyer chooses to "cover."
Q2) The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in:
A) Bi-Economy Market, Inc. v. Harleysville Ins. Co. of New York.
B) Putnam Construction & Realty Co. v. Byrd.
C) Hadley v. Baxendale.
D) Toscano v. Greene Music.
Q3) Damages must be estimated with reasonable certainty.
A)True
B)False
Q4) Identify the considerations the United States Supreme Court outlined for calculating punitive damages.
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Practical Contracts
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19831
Sample Questions
Q1) A letter of intent is not likely to be enforceable unless:
A) there is a clearly stated start date for the contract.
B) both parties agree on compensation.
C) it is clear that both parties intended to be bound by the letter.
D) conditions in the letter are met.
Q2) Bob,a house builder,contracts with Ollie to build a house on Ollie's lot.Bob hires Rob to take his place as the builder on this contract.What has Bob done?
A) Subcontracted Rob.
B) Breached the contract.
C) Delegated his duties.
D) Assigned his rights.
Q3) Which of the following statements is incorrect concerning arbitration?
A) The losing party in an arbitration can file an appeal in a District Appellate Court.
B) Arbitration is almost always cheaper and faster than litigation.
C) Arbitrators may be biased toward the "larger" party who may be a repeat client.
D) Parties to a contract cannot be forced to arbitrate unless the contract specifies it.
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 20: Introduction To Sales
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19832
Sample Questions
Q1) If the seller has made a substantial beginning in manufacturing customized goods,then an oral contract may be enforceable regardless of the amount of money involved in the contract.
A)True
B)False
Q2) Patsy is shopping for a used car.She finds a car she likes at Morley Motors.Discuss the standard of conduct the UCC imposes on the parties in performing the sales transaction.
Q3) Newt,a gun dealer,offers to sell a rare civil war musket to Rush,another dealer,for "$15,000,insurance and shipping paid by buyer." Rush responds,"I accept.Insurance and shipping costs divided equally between seller and buyer." The parties:
A) do not have a contract since the acceptance violated the mirror image rule.
B) do not have a contract since Rush's response was a counteroffer.
C) have a contact and, in the majority of states, the terms of the offeree control.
D) have a contract and, in the majority of states, the different terms will cancel each other out.
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 21: Ownership And Risk
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19833
Sample Questions
Q1) Which of the following sales would fall within the bulk sales provisions of Article 6?
A) The sale of a substantial part of the equipment of a business.
B) The sale of a substantial part of a store's inventory.
C) The sale of an office building.
D) The sale of the chairs in a barber's shop.
Q2) Marco Manufacturing contracted to sell Kurtz Industries 3,000 iron clasps.The contract specified: F.O.B.Kurtz Industries.Upon arrival and inspection,the goods were rejected by Kurtz Industries because they did not conform to the contract specifications.In transit back to Marco Manufacturing,the common carrier's truck overturned and completely destroyed the clasps.Which statement is correct?
A) Marco may sue Kurtz for the contract price, as risk of loss transferred to Kurtz at the F.O.B. point.
B) Kurtz will not be liable for the purchase price. The risk of loss had not yet transferred since the goods were nonconforming.
C) The loss will be split between the parties upon a 50/50 basis.
D) The loss will be assigned to the party who could best bear the loss.
Q3) Discuss the concept of insurable interests.
To view all questions and flashcards with answers, click on the resource link above.
Page 23
Chapter 22: Warranties And Product Liability
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19834
Sample Questions
Q1) In a breach of warranty case,the buyer must:
A) notify the seller of defects within a reasonable time.
B) bring any lawsuit no later than three years after the defect was discovered.
C) extend the statute of limitations in writing rather than orally if they choose to allow a longer time for bringing suit.
D) notify the seller of defects within six months of their discovery or they cannot bring a lawsuit.
Q2) Many states prohibit a seller from disclaiming implied warranties in the sale of consumer goods.
A)True
B)False
Q3) A product liability case may be brought in warranty,negligence,or strict liability,but it must have the element that a person or business has been hurt by goods.
A)True
B)False
Q4) Strict liability is based on contract law.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
24
Chapter 23: Performance And Remedies
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19835
Sample Questions
Q1) Buyer Bob breaches his contract for the sale of goods with Seller Suzie.Suzie still has possession of the goods at the time of the breach.Suzie can refuse to deliver the goods and:
A) resell the goods and sue Bob for the total contract price.
B) either resell the goods or sue, but not both.
C) resell the goods and sue for any loss on the sale plus incidental damages less expenses saved.
D) resell the goods and sue only for incidental damages.
Q2) The Code's requirement of good faith in the performance and enforcement of every contract imposes:
A) a greater duty on merchants than consumers.
B) a greater duty on consumers than merchants.
C) the same duty on both consumers and merchants.
D) a greater duty on parties to a sales contract with the purchase price over $500.
Q3) A buyer who properly rejects goods:
A) can do so by sending the goods back in any manner.
B) must notify the seller of the rejection within a reasonable time.
C) must pay the costs of returning the rejected goods.
D) None of the above.
To view all questions and flashcards with answers, click on the resource link above.
Page 25
Chapter 24: Secured Transactions
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19836
Sample Questions
Q1) If repossessed collateral is sold or otherwise disposed of by the creditor,the time,place,manner,and method of disposal must be:
A) commercially reasonable.
B) scheduled with the debtor so that the debtor is able to attend.
C) court ordered.
D) perfected.
Q2) Country Bank,located in Indiana,loaned Chmelik $5,000 and obtained a security interest in a copyright Chmelik owns.Chmelik lives in Illinois,but works in Indiana.In order to perfect its interest,Country Bank files a financing statement in Indiana.The financing statement provides Chmelik's correct name,his business address,and a reasonable description of the copyright used as collateral.Is the financing statement sufficient?
A) Yes, it meets the UCC requirements for contents and filing.
B) No, if the debtor is an individual, the secured party must file in the state of the debtor's principal residence, which in this case would be Illinois.
C) No, the contents of the financing statement are incomplete.
D) Both b and c are correct.
Q3) Explain the difference between attachment and perfection.
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 25: Creating A Negotiable Instrument
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19837
Sample Questions
Q1) Discuss the effect on an instrument of: (a)contradictory amounts between the numerals and amount written in words on a check; (b)the interest rate left blank on a promissory note; and (c)contradictory terms that are typed onto a promissory note and terms that are preprinted on the note form.
Q2) Laurel Speckle received a check from State University.She indorsed the check as follows: "For Deposit only,/s/ Laurel Speckle." Laurel's indorsement is a:
A) blank indorsement.
B) special indorsement.
C) restrictive indorsement.
D) None of the above is correct.
Q3) An instrument is negotiable if it satisfies six standards.Which of the following is a standard of negotiability?
A) The instrument can be oral provided there is proof beyond a reasonable doubt.
B) The instrument must be payable on demand.
C) The instrument must be conditional.
D) The instrument must state a definite sum of money.
Q4) To be negotiated,bearer paper must simply be delivered to the recipient.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 26: Liability For Negotiable Instruments
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19838
Sample Questions
Q1) Olga draws a check payable to Sven.Sven indorses the back of the check "without recourse" and negotiates the check to Hansel who in turn negotiates the check by a blank indorsement and delivers the check to Gretta.Gretta deposits the check in her checking account.If the bank dishonors the check because Olga has filed for bankruptcy,and returns the check to Gretta,who has liability on the check?
Q2) Lance indorses a promissory note to Connie in exchange for consideration.Unknown to Lance,the note is not good because the maker's signature was forged.Connie later attempts to present the instrument for payment to the original alleged maker,Lilly,who is able to deny liability for payment due to the forged signature.Connie may later sue Lance for breach of a transfer warranty.
A)True
B)False
Q3) When a person indorses a check,the indorser assumes contractual liability based on the indorsement.This liability expires unless presentment is made:
A) within 3 days of indorsement.
B) within 7 days of indorsement.
C) within 30 days of indorsement.
D) within a reasonable time after the indorsement.
To view all questions and flashcards with answers, click on the resource link above.
28
Chapter 27: Accountants' Liability
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19839
Sample Questions
Q1) In which of the following cases will the federal accountant-client privilege protect the information from being disclosed?
A) A criminal case.
B) A case involving the SEC.
C) A case concerning the preparation of tax returns.
D) A civil fraud case involving the IRS.
Q2) One of the accountant's most important roles is to serve as an independent evaluator of the financial statements issued by management to investors and creditors.
A)True
B)False
Q3) Discuss how SEC rules affect the legal and the ethical relationship between accountants and the companies they audit.
Q4) Manuel,in conducting an audit,must rely most heavily on rules found in generally accepted accounting principles (GAAP).
A)True B)False
Q5) Discuss the advantages and disadvantages of using IFRS.
To view all questions and flashcards with answers, click on the resource link above.
Page 29
Chapter 28: Agency Law
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19840
Sample
Questions
Q1) HBR Accounting hired Denise,a CPA,to prepare tax returns.Which statement is correct?
A) Denise is a gratuitous agent and has a duty not to commit gross negligence.
B) Denise is an agent and has a duty not to commit ordinary negligence.
C) Denise, as a CPA, is an agent with special skills. She is held to a higher duty than ordinary negligence.
D) Denise, as a CPA, is an agent with special skills. She is held to a lower standard than ordinary negligence.
Q2) An agent must obey all instructions of the principal.
A)True B)False
Q3) When a principal is partially disclosed:
A) the agent and principal will be jointly and severally liable on the contract.
B) the agent and principal will be only jointly liable on the contract.
C) only the principal can be liable.
D) only the agent is liable.
Q4) The bankruptcy of an agent automatically terminates an agency relationship.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 30
Chapter 29: Employment Law
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19841
Sample Questions
Q1) During the hiring interview,Supervisor Staci told Henry that as long as he did his job as requested,he would have a job until he retired.Courts have been willing to enforce such an oral promise under the Truth in Hiring doctrine,even if the company's top management did not approve the statement.
A)True
B)False
Q2) Under the Equal Pay Act of 1963 an employee may not be paid at a lesser rate than employees of the opposite sex for tasks requiring equal skill,effort,and responsibility under similar working conditions.
A)True
B)False
Q3) As a general rule,employers have a legal obligation to disclose information about former employees to potential future employers.
A)True
B)False
Q4) What are three general defenses an employer can raise if sued for violating Title VII of the Civil Rights Act?
Q5) Discuss the requirements of the Family and Medical Leave Act.
To view all questions and flashcards with answers, click on the resource link above. Page 31
Chapter 30: Labor Law
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19842
Sample Questions
Q1) A company's collective bargaining agreement has expired and negotiations are underway for a new one.After one exhausting session,union leaders have decided management will not bargain in good faith.The union declares it will be going out on strike the following midnight if an agreement is not reached.The union:
A) is allowed to go out on strike the following midnight.
B) must give the employer at least seven days' notice before going out on strike.
C) must give the employer at least 30 days' notice before going out on strike.
D) must give the employer at least 60 days' notice before going out on strike.
Q2) Stacy believes her rights as a union worker have been violated by her employer.If the specific rights are addressed by both state and federal law:
A) the state law will apply.
B) the federal law will apply.
C) both state and federal law will apply.
D) she may choose which law, state or federal, will govern her rights.
Q3) Rick and Allan want to start a union in the small factory where they work.Outline the basic procedures they will need to follow to get a union recognized as the exclusive bargaining unit for the company employees.
To view all questions and flashcards with answers, click on the resource link above. Page 32
Chapter 31: Starting A Business
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19843
Sample Questions
Q1) Debra and Lawrence have an equal partnership.This year,after expenses,the partnership had a profit of $200,000.Debra and Lawrence will each pay taxes on:
A) whatever they receive from the partnership.
B) $50,000.
C) $100,000.
D) None of the above. The partnership itself will pay the taxes on the business's profit.
Q2) The case of Apcar v.Gaus illustrates that it is essential to comply with all the technicalities of a limited liability partnership statute.
A)True
B)False
Q3) Alan,a dentist,and his wife Martha,an attorney,can protect their personal assets with limited liability from their business dealings by creating and operating a professional corporation together.
A)True
B)False
Q4) Trudy wishes to buy a national franchise.What information is the seller legally required to provide before she buys the franchise?
To view all questions and flashcards with answers, click on the resource link above.
Chapter 32: Partnerships
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19844
Sample Questions
Q1) Which of the following events occurs first with respect to the ending of a partnership?
A) Termination.
B) Winding up.
C) Dissolution.
D) Distribution of proceeds.
Q2) Art and Alma made capital contributions of 60% and 40% respectively to their newly formed partnership,AA & Associates.They did not have a written partnership agreement.At the end of the first year,the partnership made a profit of which Alma now claims half.However,Art maintains he should receive 60%.Who is correct?
A) Art, since the UPA presumes that profits and losses are divided in proportion to capital contribution.
B) Art, since it would only be fair.
C) Alma, because she works in the business.
D) Alma, as the UPA provides that profits are split equally unless the partners agree otherwise.
Q3) A partner always has the right,though not the power,to leave a partnership.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 33: Life And Death Of A Corporation
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19845
Sample Questions
Q1) The officers of a corporation are:
A) chosen by the board of directors.
B) appointed by the president of the company.
C) elected by shareholders.
D) appointed by the Secretary of State.
Q2) Wizardry Corporation's purpose clause in its charter states,"To operate a home-cleaning service business." After a few years of successful operation,Wizardry is offered the challenge of landscaping a neighboring business.If Wizardry accepts the offer,it would be violating its charter under:
A) the de jure doctrine.
B) the de facto doctrine.
C) the ultra vires doctrine.
D) an estoppel theory.
Q3) Owners of preferred stock typically have a preference in liquidation.
A)True
B)False
Q4) Identify four circumstances that might persuade a court to pierce the corporate veil.
Q5) What are some of the advantages for a business to incorporate in Delaware?
Q6) Discuss how a corporation is terminated.
Page 35
To view all questions and flashcards with answers, click on the resource link above.
Chapter 34: Corporate Management
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19846
Sample Questions
Q1) Which of the following describes the duty of loyalty?
A) It requires managers to make decisions they reasonably believe to be in the best interest of the corporation.
B) It prohibits making a decision that benefits the decision-maker at the expense of the corporation.
C) It requires consideration of the interests of the surrounding community.
D) It requires using care that an ordinarily prudent person would take in a similar situation.
Q2) When establishing takeover defenses,shareholder welfare must be the board's primary concern.
A)True
B)False
Q3) List and discuss the three ways to acquire control of a corporation.
Q4) Which of the following is NOT a method to acquire control of a company?
A) Buy stock from the shareholders through a tender offer.
B) Buy the company's assets.
C) Make an initial public offering.
D) Merge with the company.
Q5) Discuss the purposes of the "business judgment rule."
Q6) What is the definition of the business judgment rule?
Page 36
To view all questions and flashcards with answers, click on the resource link above.
Chapter 35: Shareholders
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19847
Sample Questions
Q1) Ev-R-Green Co.,a private corporation,decides to sell substantially all of the company's assets.Under the Model Act and many state statutes:
A) the sole remedy for dissenting shareholders is to sell their stock on the stock exchange.
B) the board must first get unanimous shareholder approval for this fundamental change.
C) Ev-R-Green must buy back, at fair value, the stock of any shareholders who object to the decision.
D) the company may buy back, at fair value, the stock of any shareholders who object to the decision or the shareholders who object may receive the right of first refusal to purchase corporate assets.
Q2) Kalina is the CEO of Northfield Corporation.Who sets her compensation,and what types of compensation would she likely receive in addition to her salary? Can shareholders do anything to challenge her level of compensation if they think it is unfairly high in comparison to average employee compensation within the company?
Q3) A shareholder proxy is generally revocable at any time.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 36: Securities Regulation
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19848
Sample Questions
Q1) MegaCorp wishes to sell $25 million of securities.The only investors will be 20 institutional buyers.Which of the following applies to this offering?
A) Rule 504 of Regulation D of the 1933 Act.
B) Rule 505 of Regulation D of the 1933 Act.
C) Rule 506 of Regulation D of the 1933 Act.
D) None of the above apply to this $25 million offering.
Q2) The SEC creates law in all but which of the following ways?
A) Bringing cease and desist orders.
B) Issuing releases.
C) Promulgating rules.
D) Writing no-action letters.
Q3) Felicity brought a lawsuit under Section 11 of the 1933 Act against Mojo Corp.She will have to prove that:
A) she relied on the registration statement.
B) Mojo was negligent in preparing the registration statement.
C) there was a material misstatement or omission in the registration statement and she lost money.
D) All of the above.
Q4) What are the three primary ways the SEC creates law?
To view all questions and flashcards with answers, click on the resource link above. Page 38
Chapter 37: Bankruptcy
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19849
Sample Questions
Q1) Under what circumstances might the court reject a debtor's Chapter 13 plan?
A) The plan requires future earnings to pay off debts.
B) The plan promises to pay all secured and priority claims.
C) The plan anticipates paying the unsecured creditors less than what they would get under Chapter 7.
D) The plan treats all unsecured classes equally.
Q2) Generally,filing bankruptcy stops the collection activity of creditors.
A)True
B)False
Q3) Karen has filed for bankruptcy.Who has the authority to confirm or reject a plan of payment,and what factors will be considered when deciding whether to approve a repayment plan under Chapter 13?
Q4) Mark and Cynthia work for Bryson Supply Co.If the company files for Chapter 7 bankruptcy before paying their last month of wages and benefits,will they be able to recover anything from the company?
Q5) What are the three main purposes of the federal Bankruptcy Code? How are these purposes supported and fostered in the Code?
To view all questions and flashcards with answers, click on the resource link above.
Page 39
Chapter 38: Antitrust
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19850
Sample Questions
Q1) The chain of Mega Hardware stores agreed with Lock Tight Manufacturing not to carry any brand of locks and door handles other than those manufactured by Lock Tight.Mighty Lock threatened to sue for antitrust violations.On what basis and under what statute(s)would Mighty Lock sue? What factors would a court consider in deciding the case?
Q2) What is the Justice Department's current position relative to reciprocal dealing agreements?
A) The Justice Department actively enforces this illegal activity.
B) The Justice Department is only concerned about these agreements if a large, national company is involved.
C) The Justice Department only gets involved if such an agreement will foreclose a significant share of the market and if the participants agreed not to buy from other competitors.
D) None of the above is correct.
Q3) Reciprocal dealing is a type of vertical cooperative strategy.
A)True
B)False
Q4) Explain horizontal price-fixing and vertical minimum and maximum price-fixing.Discuss their status under antitrust laws.
To view all questions and flashcards with answers, click on the resource link above. Page 40
Chapter 39: Consumer Law
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/19851
Sample Questions
Q1) "Bait and switch" tactics are not a violation of FTC rules if the consumer is given a choice of which product to buy.
A)True
B)False
Q2) If you lease a car rather than buy one on credit,you have no statutory consumer protection.
A)True
B)False
Q3) Millie ordered clothes from a mail order catalog.No time was specified as to when the goods would be shipped.In such a case the FTC requires that the company must ship the goods to Millie:
A) within 3 business days after receiving the order.
B) within 10 business days after receiving the order.
C) within 30 days after receipt of the order.
D) within a reasonable time and within time lines consistent with industry standards.
Q4) Richard received his credit card bill and noticed an error.He wrote to the company the next week,pointing out the error in his bill.Under the law,what is the credit card's obligation once it receives Richard's letter?
To view all questions and flashcards with answers, click on the resource link above.
Page 41
Chapter 40: Environmental Law
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19852
Sample Questions
Q1) Big Hog Farms of America,Inc.,purchased 6,000 acres of farmland in South Dakota.The company intends to build several hog confinement buildings that will house nearly 40,000 hogs in each one.When completed,the facility will have over 200,000 hogs.The "hog factory" will cause terrible odors which will be extremely unpleasant for neighbors within five miles.A town of 2,500 people is only three miles north of the planned facility.The most serious concern is the disposal of all the hog manure,which will be very substantial.The hog factory will dump the hog sewage into large lagoons and then empty the watered-down sewage onto farm fields.It plans to sell some of this manure as fertilizer,though most of it will be spread on grounds the facility owns. Despite all the uproar from people in the area,many people are in favor of the facility.It will employ nearly 200 people,purchase a lot of products (feed,supplies,etc.)from local businesses,and generate a lot of money into the economy. Is this business required to submit an Environmental Impact Statement to the federal government and/or obtain a permit to operate from the EPA? Does the operation need any permits from the federal government to operate? Does it need authorization from state or local authorities? Explain.
Q2) Discuss the four major provisions of the Clean Air Act.
To view all questions and flashcards with answers, click on the resource link above.
Page 42
Chapter 41: Cyberlaw
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19853
Sample Questions
Q1) It is legal for websites to sell source code for viruses.
A)True
B)False
Q2) If a program is on your computer monitors your activities without your permission,you may be able to get protection through state legislation which makes spyware illegal.
A)True
B)False
Q3) The U.S.Department of Commerce reached agreement with the European Union on "safe harbor" principles with which most U.S.companies have complied.
A)True
B)False
Q4) Unsolicited commercial e-mail (UCE)or unsolicited bulk e-mail (UBE)messages:
A) are commonly known as "cookies."
B) constitute about 80 percent of all e-mail.
C) are estimated to be fraudulent either in content or packaging in approximately one-fourth of all cases.
D) although annoying, do lower the cost of connecting to the Internet.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 42: Intellectual Property
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19854
Sample Questions
Q1) AVCO used a famous registered trademark of BNC,Inc.in a manner that reduced its value.This is a violation of the:
A) Federal Fair Use Act.
B) Federal Trademark Dilution Act.
C) Federal Trade Protection Act.
D) Cleveland/Myer Act.
Q2) Rick wrote a song entitled "Wonderful." At the bottom of the first page of music he wrote "© 1990 by Rick Reed." Four months later a local band was playing his song at a bar.Rick felt that the bar was an inappropriate setting for his music.What is his remedy?
Q3) Martina developed a new type of apple tree which could be reproduced through grafting.She cannot protect her rights in this tree by obtaining a plant patent since the tree cannot be reproduced by planting its seeds.
A)True B)False
Q4) A design patent protects the appearance of an item and is valid for 14 years. A)True B)False
Q5) Briefly discuss a patent,copyright,and trademark.
To view all questions and flashcards with answers, click on the resource link above. Page 44
Chapter 43: Real Property And Tenant-landlord Law
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/19855
Sample Questions
Q1) If you grant a nonpossessory interest to Eagle Logging to enter your land and remove timber from ten acres,you have granted Eagle a profit.
A)True
B)False
Q2) Ted and Janet were married and owned a piece of jungle property in a tenancy by the entirety.When Janet died,her will left of all her real property to T.J.,their adult son.T.J.claims he is the sole owner of the jungle property.Ted objects and files a lawsuit for sole ownership of the jungle property.
A) Ted will win because property owned in a tenancy by the entirety includes rights of survivorship for the surviving spouse. Ted will get the title to the entire property.
B) Ted will win only a one-half interest in the jungle property. T.J. will own the other one-half interest because Janet had the right to will her half of the property to anyone she chose.
C) Ted will lose and forfeit his entire interest in the whole property because a tenancy by the entirety means that one party owns the entire property.
D) None of the above.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 44: Personal Property And Bailment
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/19856
Sample Questions
Q1) In the Tannenbaum v.New York Dry Cleaning,Inc.case:
A) there was a bailment for hire, and the fact that the bailee was unable to return the bailed item except in a damaged condition created an irrebuttable presumption that the damage to the item was attributable to the bailee's negligence.
B) the court stated that a company cannot, under New York law, use an exculpatory clause to relieve itself from liability for the consequences of its own negligence.
C) the court found that the claimant was not bound by the terms of the dry cleaning company's limitation clause because, even if it applied to the situation before the court, the claimant had not read the clause nor had he assented to its terms.
D) the court found that the claimant was negligent in not reading the limitation clause on the back of his claim ticket, so he could not recover the cost of his shirt.
Q2) A bailment relationship can be created with respect to either real or personal property.
A)True
B)False
Q3) Distinguish between a contract and a gift.Give an example of each.
To view all questions and flashcards with answers, click on the resource link above.
Page 46
Chapter 45: Planning For The Future: Wills,Trusts,And
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/19857
Sample Questions
Q1) Estate planning has two primary goals: to ensure property is distributed as the owner desires and to minimize estate taxes.
A)True
B)False
Q2) Legal requirements for a will depend on state law,but generally include all but which of the following?
A) A writing.
B) Signatures of at least three witnesses.
C) The testator's signature.
D) Witnesses who will not inherit under the will.
Q3) Reva prepares and signs a document that she intends to be her will.If she has not followed the legal technicalities of her state regarding executing a will,the court may not enforce the will.
A)True
B)False
Q4) Property of a person who dies without a will is distributed according to intestacy laws.
A)True
B)False