Fundamentals of Business Law
Exam Questions
Course Introduction
Fundamentals of Business Law introduces students to the core principles and legal frameworks that underpin business operations. The course examines the nature and sources of law, with a focus on contract law, torts, agency, commercial transactions, intellectual property, and employment law. Students will explore key legal concepts and case studies to understand how laws shape business decision-making and protect both organizations and consumers. Emphasis is placed on applying legal reasoning to real-world business scenarios, fostering ethical awareness, and developing an understanding of regulatory compliance in the contemporary business environment.
Recommended Textbook Business Law Text Cases An Accelerated Course 14th Edition by Roger LeRoy Miller
Available Study Resources on Quizplus
19 Chapters
1368 Verified Questions
1368 Flashcards
Source URL: https://quizplus.com/study-set/1151 Page 2
Chapter 1: Law and Legal Reasoning
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22544
Sample Questions
Q1) Statutory law does not include county ordinances.
A)True
B)False
Answer: False
Q2) The Federal Trade Commission (FTC) is a government agency that issues rules, orders, and decisions. The Georgia state legislature enacts statutes. The Harrison County Board and the Island City Council enact ordinances. Administrative law includes A) all of the choices.
B) the rules, orders, and decisions of the FTC.
C) statutes enacted by the Georgia state legislature.
D) ordinances enacted by county boards and city councils.
Answer: B
Q3) Constitutional law includes only the U.S. Constitution.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Business and the Constitution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22545
Sample Questions
Q1) The Alternative Energy Association would like a certain law enacted, administered, interpreted, and enforced in the best interest of its members, which include solar power companies. Under the Constitution, Congress
A) administers the laws.
B) enforces the laws.
C) interprets the laws.
D) enacts the laws.
Answer: D
Q2) Under the Constitution, the judicial branch is responsible for foreign affairs.
A)True
B)False
Answer: False
Q3) Substantive due process limits what the government can do in its legislative and executive capacities.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Courts and Alternative Dispute Resolution
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22546
Sample Questions
Q1) Milo files a suit against Nick in an Ohio state court, noting that Nick operates a Web site through which Ohio residents have done substantial business with him. The court is most likely to have jurisdiction over Nick if Milo's claim arises from
A) anything an Ohio resident has done.
B) Nick's Web site activities.
C) nothing an Ohio resident has done.
D) something other than Nick's Web site.
Answer: B
Q2) Early neutral case evaluation refers to the resolution of a case before the dispute becomes contentious, when the parties' positions are said to be "neutral."
A)True
B)False
Answer: False
Q3) Concurrent jurisdiction exists when only state courts have the power to hear a particular case.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Tort Law
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22547
Sample Questions
Q1) Outdoor Sports Unlimited, a retail store, must use reasonable care on its premises to warn its customers of
A) all risks.
B) foreseeable risks.
C) obvious risks.
D) no risks.
Q2) Power Trucking Company operates a fleet of fuel trucks. When one of the trucks is positioned to receive a load, it strikes a storage tank owned by Quality Fuel, Inc. For the cost of repairing the damage to the tank, Quality Fuel is most likely to be awarded
A) compensatory damages.
B) punitive damages.
C) contingency fees.
D) general damages.
Q3) The taking of electronic records and data can form the basis of a conversion claim.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Criminal Law and Cyber Crime
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22548
Sample Questions
Q1) Chad signs Dolly's name, without her authorization, to the back of her paycheck, which was issued by Eastside Market. This is A) embezzlement.
B) forgery.
C) larceny.
D) robbery.
Q2) Ossie enters a convenience store and points a gun at the clerk Pico. Ossie forces Pico to open the cash register and give him all the money. Ossie will most likely be charged with A) burglary.
B) robbery.
C) larceny.
D) receiving stolen property.
Q3) Constitutional safeguards to protect the rights of individuals apply in federal courts.
A)True
B)False
Q4) Counterfeiting is robbery.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Business Ethics
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22549
Sample Questions
Q1) Managers must apply the same ethical standards to their employees as they do to themselves.
A)True
B)False
Q2) Corporate Security Company provides other firms with security services. Questions of what is ethical involve the extent to which Corporate Security has A) a legal duty beyond those duties mandated by ethics.
B) an ethical duty beyond those duties mandated by law.
C) any duty beyond those mandated by both ethics and the law.
D) any duty when it is uncertain whether a legal duty exists.
Q3) The concept of corporate social responsibility is imposed on corporations by law.
A)True
B)False
Q4) Corporations can be viewed as "citizens" that are expected to participate in bettering society.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Nature and Terminology
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22550
Sample Questions
Q1) Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have
A) an executory contract.
B) no contract.
C) a quasi contract.
D) an executed contract.
Q2) A contract that has been fully performed by the parties is an executory contract.
A)True
B)False
Q3) Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided
A) both parties are released from it.
B) both parties must fully perform their obligations under it.
C) a wholly different contract is agreed to.
D) a wholly different contract is imposed "as if" the parties had agreed.
Q4) If a contract term is ambiguous, a court can consider outside evidence.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
9
Chapter 8: Agreement in Traditional and E-Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22551
Sample Questions
Q1) Grain Farms and Hi-way Shipping Company make a deal for Hi-way's services, communicating entirely online. Under the UETA, an electronic record of their deal is considered sent when it
A) reaches a midway point between the sender and recipient.
B) comes into the recipient's control.
C) is read by the recipient.
D) leaves the sender's control.
Q2) Laredo advertises a reward for the return of his lost dog. Miguel, who does not know of the reward, finds and returns the dog, without asking for reward. Miguel cannot recover the reward, because he
A) did not confer a benefit on Laredo by returning the dog.
B) did not know of the reward when he returned the dog.
C) did not ask for the reward when he returned the dog.
D) returned the dog.
Q3) The first requirement for an offer is that it must be practical.
A)True B)False
Q4) An invitation to negotiate-"can you afford this?"-is an offer.
A)True B)False
Page 10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Consideration, Capacity, and Legality
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22552
Sample Questions
Q1) To be legally sufficient, consideration must be evidenced by something tangible.
A)True
B)False
Q2) Risks ordinarily assumed in business constitute consideration for the modification of a contract.
A)True
B)False
Q3) Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration
A) inadequate.
B) past.
C) legally sufficient.
D) illusory.
Q4) If a promise is made, it will be enforced.
A)True
B)False
Q5) Parties are usually free to bargain as they wish.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Defenses to Contract Enforceability
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22553
Sample Questions
Q1) Refer to Fact Pattern 10-4. The writing that Alain and Brie signed is
A) completely integrated.
B) conditionally integrated.
C) partially integrated.
D) supplementally integrated.
Q2) Maya and Nick enter into a contract. To be enforceable, the contract must include
A) no particular signatures.
B) the signatures of both Maya and Nick.
C) the signature of the party against whom enforcement is sought.
D) the signature of the party who is seeking enforcement.
Q3) A contract involving interests in property of any kind must be in writing to be enforceable.
A)True
B)False
Q4) An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Third Party Rights and Discharge
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22554
Sample Questions
Q1) Performance can be accomplished by tender.
A)True
B)False
Q2) Expressly designating a third party as a beneficiary in a contract does not indicate whether the beneficiary is intended or incidental.
A)True
B)False
Q3) A right cannot be assigned if the assignment will significantly alter the risks or duties of the obligor.
A)True
B)False
Q4) Construction LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before the work begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation
A) Construction is in breach of contract.
B) the local zoning authority is in breach of contract.
C) the contract is discharged.
D) Discount must compensate Construction for its lost profit.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Breach of Contract and Remedies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22555
Sample Questions
Q1) Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover A) the cost of new pools.
B) the difference between T&G's price and the eventual cost of resurfacing.
C) the loss of profit from the delayed opening.
D) nothing.
Q2) Ridgeview Mining Inc. agrees to deliver a certain quantity of oil to Static Energy Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek
A) damages.
B) reformation.
C) rescission.
D) specific performance.
Q3) Liquidated damages provisions are generally unenforceable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Intellectual Property Rights
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22556
Sample Questions
Q1) Counterfeit goods are in fact sometimes genuine.
A)True
B)False
Q2) The Anti-Counterfeiting Trade Agreement applies to pirated, copyrighted works being distributed via the Internet.
A)True
B)False
Q3) Gro, Inc., makes genetically modified seeds with properties that are identical to Harvest Corporation's patented seeds, without Harvest's permission. This is most likely
A) copyright infringement.
B) patent infringement.
C) trademark infringement.
D) not infringement.
Q4) Each member country of the TRIPS agreement must include in its domestic laws intellectual property rights.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Internet Law, Social Media, and Privacy
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22557
Sample Questions
Q1) Riley obtains permission from Saga Company to use the firm's game app on Riley's smartphone, tablet, and other mobile device. But Riley does not obtain ownership rights in the app. This is
A) a license.
B) a cookie.
C) cloud computing.
D) a violation of the law.
Q2) Dana downloads music into her computer's random access memory, or RAM, without authorization. This is
A) copyright infringement.
B) within Dana's rights as a computer user.
C) a basis of liability for the computer maker if it does not act against Dana.
D) none of the choices.
Q3) "Dawn" is a song included in the sound track of "eDay," a movie produced and distributed by FasTrac Corporation. The song features a digital sampling of a few seconds of the guitar solo of one of George Harrison's copyrighted sound recordings without permission. Does this digital sampling constitute copyright infringement on the part of FasTrac? Explain.
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: The Formation of Sales and Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22558
Sample Questions
Q1) Josefina owns a condominium that she leases to Katrina. Josefina gives her daughter Lucia $450 on her sixteenth birthday. Josefina sells her car to her neighbor Maria for $1,500. UCC Article 2 covers
A) the lease with Katrina.
B) the gift to Lucia.
C) the sale to Maria.
D) all of the choices.
Q2) The UCC requires a contract modification to be supported by new consideration.
A)True
B)False
Q3) Clean Mouth Clinic offers to buy from Dental Supplies Company a certain quantity of floss and other items for a certain price. Dental can accept the offer by A) a material alteration of the terms within a reasonable time.
B) a promise to ship or a prompt shipment of the goods.
C) a prompt shipment of the goods only.
D) a shipment of nonconforming goods with a notice of accommodation.
Q4) Goods associated with real estate often fall within the scope of Article 2.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 16: Performance, Breach, and Warranties of Sales and
Lease Contracts
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22559
Sample Questions
Q1) MotorCo Inc. makes and sells auto parts to retail repair services, vehicle sales outlets, and consumer parts stores. On one MotorCo box is a label that reads "Contains one gross (144) sparkplugs, assorted sizes." This statement is
A) an implied warranty of fitness for a particular purpose.
B) an implied warranty of merchantability.
C) an express warranty.
D) none of the choices.
Q2) Greg, a salesperson for Home Improvement Center, tells Irena, "This is the best floor sander I've ever seen." This statement is
A) an express warranty.
B) an implied warranty.
C) a warranty of title.
D) puffery.
Q3) In contracts involving a carrier, a seller can complete performance through a shipment contract or a destination contract.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 18
Chapter 17: Agency Relationships in Business
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22560
Sample Questions
Q1) A partially disclosed principal is only partially liable to a third party for a contract made by an agent.
A)True
B)False
Q2) Agency relationships normally are consensual.
A)True
B)False
Q3) Lena is a salesperson for Musical Instruments, Inc. She tells Nayda, a customer, that an instrument has a certain quality when, as Lena knows, it does not. In reliance, Nayda buys the instrument. Liable for this misrepresentation is
A) no one.
B) Lena.
C) Musical Instruments.
D) Nayda.
Q4) Employers cannot avoid any tax liabilities by hiring independent contractors instead of employees.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 19
Chapter 18: Small Businesses and Limited Liability Companies
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22561
Sample Questions
Q1) A partner may pursue his or her own interests without automatically violating the partner's fiduciary duties to the partnership and the other partners.
A)True
B)False
Q2) A sole proprietorship offers less flexibility than does a partnership or a corporation. A)True
B)False
Q3) Sebastian was the manager of Thai Bistro, a restaurant specializing in Southeast Asian foods. Sebastian opened a bank account in Thai Bistro's name, signing the account signature card as "owner." Umeko, who was often at Thai Bistro and had free access to its office, told others that she was "an owner" and "a partner." She also opened a bank account in Thai Bistro's name, and signed the account signature card as "owner." Sebastian told Vijay, the owner of Wong Noodles, Inc., that Umeko was a member of a partnership that owned Thai Bistro. On this basis, Wong Noodles delivered its goods to Thai Bistro on credit. In fact, Thai Bistro was owned by a corporation. When the unpaid account totaled more than $10,000, Wong Noodles filed a suit against Umeko to collect. On what basis might Umeko be liable for the debt?
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Corporations
Available Study Resources on Quizplus for this Chatper
72 Verified Questions
72 Flashcards
Source URL: https://quizplus.com/quiz/22562
Sample Questions
Q1) Vince buys 500 shares of common stock in Water Services, Inc. As a shareholder of record, Vince owns a proportionate interest with regard to Water's
A) net assets.
B) control.
C) earnings.
D) all of the choices.
Q2) In some situations, a majority shareholder owes a fiduciary duty to minority shareholders.
A)True
B)False
Q3) In most states, an individual can be an officer or a director of a corporation, but not both at the same time.
A)True
B)False
Q4) Stocks represent the borrowing of funds by firms.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 21