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Introduction to Law Test Bank - 1818 Verified Questions

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Introduction to Law Test Bank

Course Introduction

Introduction to Law provides students with a fundamental understanding of the legal system, its underlying principles, and its role in society. The course explores the origins and sources of law, including constitutions, statutes, regulations, and case law, as well as the structure and functions of courts and legal institutions. Students will be introduced to key legal concepts such as rights, duties, justice, and liability, and will examine the distinctions between civil and criminal law. Through analysis of landmark cases and practical examples, the course emphasizes critical thinking, legal reasoning, and the impact of law on individuals and communities.

Recommended Textbook

The Legal Environment Today 8th Edition by Roger LeRoy Miller

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28 Chapters

1818 Verified Questions

1818 Flashcards

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Chapter 1: Business and Its Legal Environment

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Sample Questions

Q1) Standard Business Company appeals a decision against it, in favor of Top Flight Corporation, from a lower court to a higher court.Standard is

A)the appellant.

B)the appellee.

C)the defendant.

D)the plaintiff.

Answer: A

Q2) There are legal questions involved when considering ways to raise capital so a business can grow.

A)True

B)False

Answer: True

Q3) Stare decisis is a doctrine obligating judges to follow the precedents established within their jurisdictions.

A)True

B)False

Answer: True

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Chapter 2: Business Ethics

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Sample Questions

Q1) Corporations can be perceived as owing ethical duties to groups other than their shareholders.

A)True

B)False

Answer: True

Q2) Carrie Ann works at Paper Products, Inc.She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother.Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not be affected.Carrie Ann then considers what would happen if every employee took some stationery home and decides not to take any.Carrie Ann is being influenced by

A)the categorical imperative.

B)the principle of rights.

C)a cost-benefit analysis.

D)outcome-based ethics.

Answer: A

Q3) Business ethics focuses on ethical behavior in the business world.

A)True

B)False

Answer: True

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Chapter 3: Courts and Alternative Dispute Resolution

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Sample Questions

Q1) To resolve a dispute, Amy in Boston and Chris in Denver utilize E-Solution, an online dispute resolution (ODR) service.This limits these parties' recourse to the courts

A)not at all.

B)until the ODR service has issued a decision.

C)with respect to any dispute arising between them.

D)with respect to this dispute only.

Answer: A

Q2) Negotiation is the most complex form of alternative dispute resolution.

A)True

B)False

Answer: False

Q3) A court's review of an arbitrator's award may be restricted.

A)True

B)False

Answer: True

Q4) ADR proceedings are always strictly regulated by federal statutes.

A)True

B)False Answer: False

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Chapter 4: Business and the Constitution

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Q1) The Eighth Amendment prohibits excessive bail and fines, as well as cruel and unusual punishment.

A)True

B)False

Q2) Adult Shoppe in Bay City sells a variety of publications, including child pornography.Bay City enacts an ordinance prohibiting the sale of such materials.This ordinance is most likely

A)an invalid restriction of individuals' privacy.

B)an unconstitutional restriction of speech.

C)a violation of adults' rights to enjoy certain privileges.

D)constitutional under the First Amendment.

Q3) A law that restricts people of a certain national origin from doing something will be carefully examined to make sure it promotes a compelling government interest before it is allowed to stand.

A)True

B)False

Q4) Substantive due process focuses on the substance of legislation.

A)True

B)False

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Chapter 5: Torts and Strict Liability

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Q1) In newspaper ads, Lo-Price Autos falsely accuses Hi-Value Vehicles, a competitor, of selling stolen cars.Hi-Value's sales decrease.Lo-Price has most likely committed A)slander of quality.

B)slander of title.

C)wrongful interference with a business relationship.

D)none of the choices.

Q2) To determine whether a duty of care has been breached, a judge asks how a reasonable person would have acted in the same circumstances.

A)True

B)False

Q3) The Class Action Fairness Act of 2005

A)shifted jurisdiction over certain class-action lawsuits from the state courts to the federal courts.

B)shifted jurisdiction over certain class-action lawsuits from the federal courts to the state courts.

C)made forum shopping punishable by large fines.

D)limited the amount of damages that could be awarded in a medical malpractice suit.

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Chapter 6: Criminal Law and Cyber Crime

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Sample Questions

Q1) After Edie solicits clients to invest in a nonexistent business, she is charged with "mail fraud." This requires, among other things

A)claiming that an item is "in the mail" when it is not.

B)deceiving postal authorities as to the content of an item of mail.

C)depositing items in the postal system without proper postage.

D)mailing or causing someone else to mail a writing.

Q2) Someone suffering from a mental illness may be incapable of the state of mind to commit a crime.

A)True

B)False

Q3) Mona offers Ned, a building inspector, $5,000 to overlook the violations in her new warehouse.Ned accepts the cash and overlooks the violations. Mona is charged with the crime of bribery.The crime occurred when

A)Mona decided to offer the bribe.

B)Mona offered the bribe.

C)Ned accepted the bribe.

D)Ned overlooked the violations.

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Chapter 7: International Law in a Global Economy

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Q1) The chief aim of the European Union and other trade organizations is to minimize trade barriers among their members.

A)True

B)False

Q2) The chief aim of the World Trade Organization and other trade agreements is to maximize trade barriers among their members.

A)True

B)False

Q3) Restrictions on imports may include prohibitions.

A)True

B)False

Q4) Miranda is a U.S.citizen working in Europe for Tourist Vacations, Inc., a U.S.travel agency.Tourist fires Miranda for reasons that she believes violate U.S.antidiscrimination laws.Those laws apply

A)extraterritorially.

B)only to signatories of the North American Free Trade Agreement.

C)only to members of the World Trade Organization.

D)only within U.S.borders.

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Chapter 8: Intellectual Property Rights

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Sample Questions

Q1) The idea for "On Your Mark," a computer game featuring world-class athletic competition in extreme and unique contests, is protected by

A)copyright law.

B)patent law.

C)trademark law.

D)trade secrets law.

Q2) Creation Worx, Inc., develops, makes, and markets new computer programs for businesses and consumers.Generally, copyright protection extends to A)all aspects of the software.

B)the "look and feel" of the software.

C)those parts of the software that can be read by humans.

D)all of the choices.

Q3) The owner of intellectual property may put restrictions on the use of the intellectual property in a license agreement.

A)True

B)False

Q4) A marketing technique can be a trade secret.

A)True

B)False

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Chapter 9: Internet Law, Social Media, and Privacy

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Sample Questions

Q1) Paige applies to work for Quibbling & Company.Reece applies for admittance to State University.As part of their applications, Paige and Reece are asked to divulge their social media passwords.Legislation that protects individuals from having to disclose their social media passwords has been enacted in

A)no states.

B)most states but not by the federal government.

C)all states and by the federal government.

D)four states.

Q2) Federal law prohibits the Federal Trade Commission from cooperating and sharing information with foreign agencies in investigating and prosecuting those involved in spamming.

A)True

B)False

Q3) Interactive Entertainment Corporation markets its products online.Through the use of cookies, Interactive Entertainment and other online marketers can A)track individuals' Web browsing activities.

B)gain access to competitors' servers.

C)"sweet talk" consumers into buying certain products.

D)attack competitors' Web sites.

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Page 11

Chapter 10: The Formation of Traditional and E-Contracts

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Sample Questions

Q1) Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery-a medical procedure.This contract is enforceable by A)Jolie.

B)Jolie's medical insurance company.

C)Keaton.

D)no one.

Q2) Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000.Hana replies, "The price is too high.I will buy it for $75,000." Hana has A)accepted the offer.

B)made a counteroffer without rejecting the offer.

C)rejected the offer and made a counteroffer.

D)rejected the offer without making a counteroffer.

Q3) Ricci, a user of SmartPhoneApps.com's Web site, can download apps for free if she first clicks on "I accept" after viewing certain terms.This is A)a contract that does not include the terms.

B)a contract that includes the terms.

C)not a contract but the terms are enforceable.

D)unenforceable.

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Chapter 11: Contract Performance, Breach, and Remedies

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Sample Questions

Q1) Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Piper and sends $1,500 as a down payment.When Nonny sends Piper the rest of the price, she refuses to ship the collection.Nonny should seek A)damages.

B)quasi-contractual recovery.

C)rescission.

D)specific performance.

Q2) App Developers, Inc.(ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm.To fulfill the contract, ADI hires Max and ten other student interns.With respect to the contract between ADI and Carmen, Max is

A)an intended beneficiary.

B)an incidental beneficiary.

C)a delegate.

D)an assignee.

Q3) The standard measure of compensatory damages is the value of breaching party's promised performance.

A)True

B)False

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Chapter 12: Sales, Leases, and Product Liability

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Sample Questions

Q1) Goods associated with real estate never fall within the scope of UCC Article 2. A)True

B)False

Q2) Trucks & Trailers, Inc.(T&T), and United Delivery Service enter into a contract for a lease of trucks.T&T is a merchant who deals in goods of the kind leased.Under the UCC, an implied warranty of merchantability arises

A)automatically.

B)only if the lessee asks for such a warranty.

C)only if the lessor expresses such a warranty.

D)only in conjunction with sales contracts, not lease contracts.

Q3) Key of G Products, Inc., offers to sell to Harmony Company one hundred MP3 players at $50 a piece, subject to certain specific delivery dates.Harmony replies with a signed purchase order that reads, "Accept your of-fer for 100 I-appliances at $50 each. Must be delivered to our ware-house." Key of G does not respond or deliver the goods.Harmony files a suit for breach of contract, to which Key of G answers that there is no contract because Harmony's purchase order contained additional terms and is not signed by Key of G.Can Harmony recover? Explain.

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Chapter 13: Creditor-Debtor Relations and Bankruptcy

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Sample Questions

Q1) Personal property that is most often exempt from satisfaction of judgment debts does not include equipment that the debtor uses in a business or trade.

A)True

B)False

Q2) Philo files a petition in bankruptcy for relief through an individual's repayment plan.He is granted a discharge.Debts that will not be discharged include claims for A)all debts provided for by the plan.

B)money owed for services rendered.

C)allowed claims not provided for by the plan.

D)credit-card debt.

Q3) A court awards a judgment to Loan Collection Agency, who is the creditor, against Margret, who is the debtor.After the judgment, the creditor requests a court order to seize Margret's property to ensure that the judgment will be collectible.This is

A)a judicial lien.

B)a writ of attachment.

C)a writ of execution.

D)a violation of most state laws.

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Chapter 14: Small Business Organizations

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Sample Questions

Q1) Coco is considering forms of business organization for her concessions business Coco's Cupcakes.Most states require that a limited liability company have

A)no minimum number of members.

B)at least one member.

C)at least two members.

D)at least three members, including at least one general partner.

Q2) Jay is a member of Kitchen Cookouts, LLC, a limited liability company.Jay is liable for Kappa's debts

A)in proportion to the total number of members.

B)to the extent of his investment in the firm.

C)to the extent that the other members do not pay the debts.

D)to the full extent.

Q3) CPA Accounting, LLC, is a limited liability company.If the law in CPA's state is like the law in most states, unless the members have agreed otherwise, participants in the firm's management will be considered to include

A)all members.

B)no member.

C)one member.

D)two members, including at least one general partner.

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Page 16

Chapter 15: Corporations

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Sample Questions

Q1) Niki owns O.K.Oil Corporation.Niki uses O.K.'s funds to pay her personal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.'s assets to Pure Fuel, and petitions O.K.into bankruptcy.This most likely warrants

A)a bonus to Niki for financial maneuvers.

B)a discharge for O.K.in bankruptcy.

C)a pierce of O.K.'s corporate veil.

D)a review of Pure Fuel's articles of incorporation.

Q2) The first step in the incorporation process is to select a state in which to operate.

A)True

B)False

Q3) Many qualifications are required for directors.

A)True

B)False

Q4) The board of directors normally can remove a corporate officer at any time with or without cause.

A)True

B)False

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Chapter 16: Agency Relationships

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Q1) A principal is not liable on any contract made by the agent acting outside the scope of his or her authority.

A)True

B)False

Q2) A principal owes an agent a duty of compensation.

A)True

B)False

Q3) If a principal does not ratify an unauthorized contract, the principal is not bound.

A)True

B)False

Q4) If a principal does not ratify an authorized contract, the principal is not bound.

A)True

B)False

Q5) Through agents, a principal can conduct multiple business operations simultaneously.

A)True

B)False

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Page 18

Chapter 17: Employment, Immigration, and Labor Law

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Sample Questions

Q1) State workers' compensation laws establish a procedure for employees injured on the job to sue their employers.

A)True B)False

Q2) Clive works for Digby Excavation Corporation.While operating a backhoe, Clive suffers an injury.Clive will be compensated under state workers' compensation laws only if

A)he does not have health insurance.

B)he is completely disabled.

C)his injury was accidental.

D)his injury was intentional.

Q3) Phyllis intentionally injures herself while performing her job for Stone Cutters, Inc.Phyllis will be entitled to A)full workers' compensations.

B)half of the normal workers' compensation.

C)10 percent of the normal workers' compensation.

D)no workers' compensation.

Q4) Federal law does not restrict employers' use of the results of genetics tests. A)True B)False

19

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Chapter 18: Employment Discrimination

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Questions

Q1) Ruth is a supervisor for Subs & Suds, a restaurant.Tim is a Subs employee.The owner announces that some em-ployees will be discharged.Ruth tells Tim that if he has sex with her, he can keep his job.This is

A)harassment on the basis of sexual orientation.

B)not harassment.

C)quid pro quoharassment.

D)same-gender harassment.

Q2) Federal law does not prohibit employers from engaging in gender-based wage discrimination.

A)True

B)False

Q3) Any employee, except an undocumented alien, can bring an action for employment discrimination.

A)True

B)False

Q4) Making out a prima facie case of discrimination means that a plaintiff has met his or her initial burden of proof.

A)True

B)False

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Chapter 19: Powers and Functions of Administrative Agencies

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Q1) All federal government agencies must make their records available electronically on the Internet.

A)True

B)False

Q2) Final administrative rules do not have binding legal effect unless the courts later declare them to be binding.

A)True

B)False

Q3) The functions of the Social Security Administration, like those of other adminis-trative agencies, include

A)adjudication.

B)declaration.

C)enunciation.

D)pronunciation.

Q4) Frequently, disputes over violations of administrative rules are resolved through informal adjudication proceedings.

A)True

B)False

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Chapter 20: Consumer Protection

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Q1) An information label must be attached to every new car to include the fuel economy estimate for the vehicle.

A)True B)False

Q2) Merchants must issue a refund within a specified period of time when a consumer cancels an order.

A)True B)False

Q3) Owen buys a restored 1969 Dodge Charger from Prime Restorations, Inc., on credit but makes no payments on the account.Quentin, the owner of Prime Restorations, calls Owen at home on a Monday morning at three a.m.Quentin represents himself as RiteNow Collection Agency and demands payment "or else." The next day, Quentin sends Owen notice that he has thirty days to request verification of the debt, during which its payment will be suspended, but that if he does not pay the full amount due within five business days, Quentin will arrange for the "destruction of Owen's good credit rating." Which laws has Quentin violated, if any, and in what ways?

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Chapter 21: Environmental Law

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Q1) Hi-Yield Agriculture, Inc., makes a pesticide with a one-in-a-million risk to people of developing cancer from exposure.This substance must be

A)disposed of before anyone develops cancer.

B)registered before it is sold.

C)taken off the market and placed in temporary storage.

D)used only in a way that avoids exposure to people.

Q2) Without a permit, Timberline Plywood Company discharges its untreated wastewater into Urban City's storm drainage pipes, which empty into Valley Creek.Under the Clean Water Act, this discharge is most likely

A)a violation.

B)not a violation because the company does not have a permit.

C)not a violation because water is not a stationary source.

D)not a violation because a storm drainage pipe is not a point source.

Q3) National effluent (pollution) standards are set by the Environmental Protection Agency for each industry.

A)True

B)False

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Chapter 22: Real Property and Land-Use Control

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Q1) A license is a right to go onto land owned by another and take away some part of the land itself or some product of the land.

A)True

B)False

Q2) Kenneth has a periodic tenancy that requires him to pay rent weekly.Kenneth wishes to terminate his tenancy.Under the common law, he must give his landlord notice of at least

A)one week.

B)two weeks.

C)thirty days.

D)sixty days.

Q3) The mere possession of land without right is called a tenancy at will.

A)True B)False

Q4) A easement is the revocable right of a person to come onto another person's land. A)True B)False

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Chapter 23: Antitrust Law and Promoting Competition

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Q1) In determining the legality of a merger, a crucial consideration is market concentration.

A)True

B)False

Q2) Gourmet Foods, Inc., requires all distributors of its products to sell them at a specified minimum price.Under the Sherman Act, this is a violation

A)if the anticompetitive effects outweigh the competitive benefits.

B)if the competitive benefits outweigh the anticompetitive effects.

C)under any circumstances.

D)under no circumstances.

Q3) Refer to Fact Pattern 39-1.A court would most likely rule that the agreement between Cardio and Emitate is

A)a deal that neither restrains trade or harms competition.

B)a legal restraint of trade.

C)a per se violation of the Sherman Act.

D)subject to analysis under the rule of reason.

Q4) Section 1 of the Sherman Act condemns monopolization.

A)True

B)False

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Chapter 24: Investor Protection and Corporate Governance

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Q1) Against a charge of a violation of the Securities Act of 1933, only an issuer of stock can assert the due diligence defense.

A)True

B)False

Q2) When Looking Glass Corporation wishes to issue certain securities, it must provide sufficient information for Alice, and other unsophisticated investors, to evaluate the financial risk involved.Specifically, the law imposes liability for making a false statement or omission that is "material." What sort of information would Alice consider material?

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 25: How to Brief Cases and Analyze Case Problems

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Q1) According to the United States Supreme Court in Miranda v.Arizona, an individual must be apprised of certain of his or her rights whenever the individual is

A)arraigned in a court.

B)imprisoned in a jail.

C)sentenced for a crime.

D)taken into custody.

Q2) Arno is judge in a country that follows a civil law system.In Arno's court, the primary source of law consists of

A)administrative decisions.

B)a statutory code.

C)case precedents.

D)the laws of other nations.

Q3) Recent advances have fostered the growth of a relatively new industry to profit from crime.Statistics show that criminals have learned it is easier, less risky, and more profitable to

A)rob banks using traditional means.

B)steal via the Internet.

C)engage in legitimate activities such as stock trading via the Internet.

D)sell their stories to movie, music, and TV producers or video-game makers.

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Page 27

Chapter 26: the Constitution of the United States

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Q1) Prep Charter School uses an online test provided by Quality Tests, Inc., to assess the probability that an adolescent is chemically dependent.The agreement between Prep Charter and Quality for the use of the test most likely provides that if Prep Charter breaches its duties under the agreement, Quality will suffer

A)immediate and irreparable damages.

B)no harm.

C)compensatory, consequential, punitive, and nominal damages.

D)liquidated and quasi-contractual damages.

Q2) Tour Vista, an online travel company, buys blocks of rooms from Skyview Towers, a hotel in River City, at a wholesale rate.Tour Vista resells the rooms to consumers at a retail rate.In recent efforts to collect taxes from e-commerce, some cities claim that hotel occupancy taxes should be assessed and remitted directly to the cities based on

A)the dire financial straits of the cities during the latest recession.

B)the retail rates of the rooms.

C)the states of residency of the consumers who reserve the rooms.

D)the wholesale rates of the rooms.

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Chapter 27: the Uniform Commercial Code Article 2 and 2a

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Q1) Eduard is a shareholder of Deutsche Internationale, a German firm.In Germany

A)most claims against firms are alleged in shareholders' derivative suits.

B)the law does not provide for derivative litigation.

C)derivative actions can only challenge directors' actions that shareholders could not legally ratify.

D)if a derivative action is unsuccessful, a firm can sue the plaintiff.

Q2) Forms of business organizations that limit the liability of their owners are available to businesspersons around the world.Among the features that such firms have in common, in most nations

A)articles of organization must be filed to form the enterprise.

B)one of the owners must be a foreign entity.

C)the organization can have an unlimited number of owners.

D)the owners are not required to choose persons to manage the business.

Q3) Game Apps Corporation hires independent contractors instead of employees.If these workers are determined to have been misclassified, Game Apps may be liable for

A)a seniority and tenure system.

B)back payroll taxes.

C)copyright and trademark royalties.

D)job reinstatement.

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Page 29

Chapter 28: Answers to the Issue Spotters

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Q1) Deutsche Werke, GmbH., a German firm, is harmed by a price-fixing scheme engineered by Collider Industries, S.A., an international cartel.The European Union is most likely to

A)do nothing.

B)actively pursue Collider and impose criminal penalties.

C)actively pursue Collider and impose civil penalties.

D)contact Collider and issue a reprimand but impose no penalties.

Q2) Wiley trades in securities on a regional securities exchange.These trades are subject to regulation by

A)the National Securities Markets Agency.

B)the Securities and Exchange Commission.

C)the Securities Enforcement Remedies Administration.

D)the U.S.Department of Justice.

Q3) At Global Holdings Inc., the shareholders cast a vote on executive compensaiton for senior executives.Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, this vote is binding on

A)Global's board of directors only.

B)Global's senior executives only.

C)Global's board of directors, senior executives, and shareholders.

D)none of the choices.

To view all questions and flashcards with answers, click on the resource link above. Page 30

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