Legal Aspects of Business Review
Questions
Course Introduction
Legal Aspects of Business provides an in-depth understanding of the laws and regulations that impact business operations and decision-making. This course covers fundamental topics such as contract law, company law, intellectual property rights, employment law, consumer protection, competition law, and dispute resolution mechanisms. Students will learn how legal principles affect business transactions, understand the role of ethics and compliance, and develop the ability to identify and manage legal risks. Through case studies and real-world examples, the course equips future business leaders with the tools to navigate legal challenges and ensure compliance in various business contexts.
Recommended Textbook
The Legal Environment of Business Text and Cases 8th Edition by Frank B. Cross
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35 Chapters
1251 Verified Questions
1251 Flashcards
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Chapter 1: Business and Its Legal Environment
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Sample Questions
Q1) A federal statute regulates an employment practice.To resolve a dispute concerning the practice,Paula,a judge,will most likely apply
A)a common law doctrine that applied before the statute was enacted.
B)a common law doctrine that applies to other,different practices.
C)Paula's personal philosophy of law.
D)the statute.
Answer: D
Q2) Refer to Fact Pattern 1-A1.Bellamy's opinion is known as A)a concurring opinion.
B)a dissenting opinion.
C)a majority opinion.
D)a per curiam opinion.
Answer: A
Q3) As a judge,Diane applies common law rules.These rules develop from A)decisions of the courts in legal disputes.
B)regulations issued by administrative agencies.
C)statutes enacted by Congress and the state legislatures.
D)uniform laws drafted by legal scholars.
Answer: A
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Chapter 2: The Court System
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Sample Questions
Q1) Federal cases typically originate in appellate courts.
A)True
B)False
Answer: False
Q2) A justiciable controversy is a case in which the court's decision-the "justice" that will be served-will be controversial.
A)True
B)False
Answer: False
Q3) An appellate court can affirm or reverse the decision of a trial court in part.
A)True
B)False
Answer: True
Q4) At every stage of a trial,either party can file a motion to dismiss the case.
A)True
B)False
Answer: True
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Chapter 3: Alternative and Online Dispute Resolution
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Sample Questions
Q1) Ivy files a suit against José.Before going to trial,the parties meet,and each party's attorney argues the party's case before the other party.If they fail to reach an agreement,a third party renders an opinion as to how a court would likely decide the dispute.This is
A)a mini-trial.
B)a summary jury trial.
C)early neutral case evaluation.
D)not a legitimate form of dispute resolution.
Answer: A
Q2) Most online dispute resolution services apply general,universal legal principles to resolve disputes.
A)True
B)False
Answer: True
Q3) Alternative dispute resolution methods are generally less expensive and time consuming than actual litigation.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Ethics and Business Decision Making
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Sample Questions
Q1) In making decisions for United Merchandising Company,Vance uses a cost-benefit analysis.This is part of A)duty-based ethics.
B)Kantian ethics.
C)the principle of rights.
D)utilitarianism.
Q2) Any decision by the management of Fast-Food Franchise Corporation may significantly affect its A)operators only.
B)operators,owners,suppliers,the community,or society as a whole.
C)owners only.
D)suppliers,the community,or society as a whole only.
Q3) Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions include all of the following except A)an individual's conscience.
B)business rules and procedures.
C)loopholes in the law or company policies.
D)promises to others.
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Page 6
Chapter 5: Constitutional Law
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Sample Questions
Q1) The state governments retain all powers not specifically delegated to the federal government.
A)True
B)False
Q2) National legislation governs nearly every major business activity,including conduct that has nothing to do with commerce.
A)True
B)False
Q3) Law enforcement officials can track the e-mail communications of one party to find out the identities of other parties.
A)True
B)False
Q4) The state of New York regulates private activities to protect or promote the public order,health,safety,and general welfare under its
A)police powers.
B)taxing powers.
C)spending powers.
D)supremacy powers.
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Page 7
Chapter 6: Administrative Law
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Sample Questions
Q1) Boxy's Packaging Materials Company is subject to regulations issued by the Occupational Safety and Health Administration (OSHA).Like other federal administrative agencies,the OSHA was created by
A)Congress,through enabling legislation.
B)the Federal Trade Commission,through the rulemaking process.
C)the president,through an executive order.
D)the U.S.Department of Labor,through a final order.
Q2) After notice-and-comment rulemaking,the U.S.Bureau of Land Management (BLM)issues a new rule and applies it to Clearcut Timber Company.Clearcut appeals the application to a federal court.The court will most likely defer to the BLM's interpretation of A)the facts and the law.
B)the agency's authority.
C)procedural requirements.
D)the Constitution.
Q3) Many agency rules require compliance reporting from regulated entities,and such a report can not trigger an enforcement investigation.
A)True
B)False
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Chapter 7: Criminal Law and Cyber Crime
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Sample Questions
Q1) Mona offers Ned,a building inspector,money to overlook the violations in her new warehouse.Ned accepts the money 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.
Q2) Davis points a gun at Eton,threatening to shoot him if he does not steal from his employer,Freddy's Convenience Store,and give the stolen funds to Davis.Charged with theft,Eton can successfully claim,as a defense
A)nothing.
B)duress.
C)entrapment.
D)self-defense.
Q3) A kickback for a special favor or service is not considered a bribe.
A)True
B)False
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Chapter 8: International Law in a Global Economy
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Sample Questions
Q1) Confiscation occurs when a government seizes private property for an illegal purpose and without just compensation.
A)True
B)False
Q2) Diners Corporation,a U.S.firm,signs a contract with Essen,A,G. ,a German firm,to give Essen the right to use Diners' trademark in restaurants in Germany.This is
A)a distribution agreement.
B)a joint venture.
C)direct exporting.
D)licensing.
Q3) The United States taxes each barrel of imported oil at a flat rate.This is
A)an antidumping duty.
B)a dumping duty.
C)a quota.
D)a tariff.
Q4) An international custom is a general practice accepted in the international arena as law.
A)True
B)False
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Chapter 9: Contract Formation
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Sample Questions
Q1) In contract law,"consideration" refers to the courtesy that one party shows another in negotiating a deal.
A)True
B)False
Q2) A contract is always enforceable even if one party is aware that the other party made a mistake of fact.
A)True B)False
Q3) A statement of future intent-"I plan to sell my 700-pound sow"-is an offer.
A)True
B)False
Q4) Under the mailbox rule,an acceptance takes effect at the time it is sent. A)True B)False
Q5) Parties are not usually free to bargain as they wish. A)True B)False
Q6) An agreement is evidenced by a single event: an offer. A)True B)False
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Chapter 10: Contract Performance,breach,and Remedies
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Sample Questions
Q1) Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch.If Hollis breaches the contract,Grady's normal remedy would be
A)damages.
B)reformation.
C)rescission.
D)specific performance.
Q2) National Drilling Company ships its only pump to American Hydraulics Corporation,the manufacturer,for repair.National hires Overland Transport,Inc. ,to take the pump to American Hydraulics and to return it to National as soon as the repair is complete.National is forced to suspend operations without a pump,but Overland does not know this.National expects to be without the pump for five days and to lose profits of $5,000.When the pump is not returned by the end of the fifth day,National rents a pump at a cost of $100 per day.Overland delays five more days before returning the pump.National files a suit against Overland,asking for compensatory,consequential,and punitive damages.Will National recover
Q3) Anticipatory repudiation discharges a contract.
A)True
B)False
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Chapter 11: Sales,leases,and E-Contracts
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Sample Questions
Q1) Woodgrain Products Company and Sylvia enter into a contract for a sale of lumber.Woodgrain knows the purpose for which Sylvia will use the goods.Under the UCC,an implied warranty of fitness of a particular purpose arises
A)if the buyer is relying on the seller to select suitable goods.
B)if the buyer asks for it.
C)if the seller is a merchant who deals in goods of the kind sold.
D)in conjunction with lease contracts,not sales contracts.
Q2) A forum-selection clause indicates the forum in which contract disputes will be resolved.
A)True
B)False
Q3) Town Style Stores orders Hidebound-brand leather jackets from Cowhide & Cotton Company (CCC).CCC mistakenly ships denim jackets,which Town rejects and returns via Valu Transport,Inc.During the return,the jackets are lost.The loss is suffered by A)Town.
B)Hidebound.
C)Valu.
D)CCC.
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Chapter 12: Torts and Cyber Torts
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Sample Questions
Q1) Bona fide competitive behavior can constitute wrongful interference with a contractual relationship.
A)True
B)False
Q2) Causation in fact can be determined by use of the but-for test.
A)True
B)False
Q3) In an emergency situation,Milena,an emergency medical technician,renders aid to Lothar,who needs help.Lothar would most likely be prohibited from suing Milena for negligence under A)any circumstances.
B)a Good Samaritan statute.
C)a social host statute. D)no circumstances.
Q4) An individual's right to privacy includes the exclusive use of his or her likeness. A)True
B)False
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Chapter 13: Strict Liability and Product Liability
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Sample Questions
Q1) Air Navigation,Inc. ,makes aviation guidance systems.Ollie is injured in a crash caused by a defective Air Navigation product.A statute restricts the time within which Ollie may file a product liability suit against Air Navigation regardless of when he was injured.This is a statute of A)limitations.
B)preemption.
C)repose.
D)suspension.
Q2) The extreme risk of an activity is a primary basis for imposing strict liability.
A)True
B)False
Q3) Grady,an obese individual,files a suit against Fry Fast Food Corporation (FFFC),alleging that FFFC's food is unhealthy because,as Grady knows,it contains high levels of cholesterol and saturated fat.Grady is most likely to A)lose,because Grady assumed the risk when he bought FFFC's food. B)lose,because Grady knows of the food's unhealthiness. C)win,because FFFC's food poses an unhealthy risk to Grady. D)win,because Grady knows of the food's unhealthiness.
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Chapter 14: Intellectual Property and Internet Law
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Sample Questions
Q1) Excel Goods,Inc. ,and Finest Products Corporation use the mark "Good Housekeeping Seal of Approval" to certify the quality of their products.Excel and Finest are not in business together and do not own this mark.The mark is
A)a certification mark.
B)a collective mark.
C)a service mark.
D)trade dress.
Q2) A trade name cannot be registered with the federal government unless it is also a trademark or a service mark.
A)True
B)False
Q3) A generic term is not protected under trademark law unless it acquires a secondary meaning.
A)True
B)False
Q4) Theft of confidential data by industrial espionage is a theft of trade secrets.
A)True
B)False
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Page 16
Chapter 15: Creditor-Debtor Relations and Bankruptcy
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Sample Questions
Q1) Certain debtors may not qualify to have all debts discharged in bankruptcy.
A)True
B)False
Q2) Wilbur files a petition in bankruptcy for relief through an individual's repayment plan.Wilbur is granted a discharge.Debts that will not be discharged include claims for A)contributions to employee benefit plans.
B)money to be paid for services not rendered.
C)fraudulently incurred debt.
D)long overdue credit-card debt.
Q3) If a debtor does not pay a mechanic's lien,the debtor's property can be sold to satisfy the debt.
A)True
B)False
Q4) Laurel defaults on a loan owed to Maverick Bank.As a creditor,Maverick may attempt to place liens on all of Laurel's property except A)motor vehicles used to commute to work.
B)stock in various corporations.
C)items that Laurel selects.
D)vacant commercial property.
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Chapter 16: Mortgages Foreclosures After the Recession
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Sample Questions
Q1) Brendan borrows $150,000 from Countywide Credit Union to buy a home.The loan is a fixed-rate mortgage at 5.5 percent with a thirty-year term secured by Brendan's home,which is his principal residence.When Brendan has paid off $10,000 of the mortgage-still owing $140,000-he loses his job and defaults on the loan.The market for homes has declined since Brendan took out the loan,and the value of the home at the time of default is $100,000.Despite the default,Brendan assures Countywide that he has accepted a new position,which will begin in six months.What are Brendan's options to recover the amount still owed on the mortgage Which option would most benefit these parties Why
Q2) A fixed-rate mortgage is a standard mortgage with a rate of interest that changes periodically.
A)True
B)False
Q3) Steering and targeting occur when a lender manipulates a borrower into accepting a loan product that benefits the lender but is not the best loan for the borrower.
A)True
B)False
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Page 18
Chapter 17: Sole Proprietorships, franchises, Partnerships
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Sample Questions
Q1) In a sole proprietorship,the proprietor shares the burden of any losses or liabilities incurred by the business enterprise with the government.
A)True
B)False
Q2) Good faith and fair dealing are not important in terminating a franchise relationship. A)True
B)False
Q3) Typically,the franchisee determines the territory to be served by the franchise. A)True
B)False
Q4) A franchisor can require a franchisee to purchase certain supplies from the franchisor at an established price. A)True B)False
Q5) A partner always has the power and the right to dissociate from the partnership. A)True
B)False
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Page 19
Chapter 18: Limited Liability Companies and Limited Partnerships
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Sample Questions
Q1) Esteban and Florian want to form a limited liability company (LLC)to manage their business,Gordian Nuts.LLC statutes have been adopted in A)all states.
B)no states.
C)less than one-fifth of the states.
D)only Wyoming and Florida.
Q2) Cecilia's Day Spa,LLC,is a member-managed limited liability company.If the law in Cecilia's state is like the law in most states,unless the members have agreed otherwise,voting rights are apportioned according to A)capital contributions.
B)participation in management.
C)the number of members.
D)transactions with the firm.
Q3) An assignment of the interest of a limited partner dissolves a limited partnership.
A)True
B)False
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Chapter 19: Corporations
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Sample Questions
Q1) Shareholders are personally liable for the debts of a corporation.
A)True
B)False
Q2) Gladys is a shareholder of Frozen Yogurt,Inc.As a shareholder,Gladys must approve
A)amending the bylaws.
B)declaring a corporate dividend.
C)hiring a chief executive officer.
D)issuing additional shares.
Q3) Every shareholder is entitled to examine specified corporate records.
A)True
B)False
Q4) Corporate profits can be subject to double taxation.
A)True
B)False
Q5) Shareholders are the ultimate authority in every corporation.
A)True
B)False
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Page 21
Chapter 20: Agency
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Sample Questions
Q1) BizOnline.com uses an electronic agent,or e-agent,to perform certain tasks in e-commerce.With respect to the e-agent's actions,BizOnline.com is bound by A)all of the actions.
B)only those actions of which BizOnline.com is aware. C)only those actions that BizOnline.com does not refute. D)only those actions that BizOnine.com ratifies.
Q2) Normally,all employees who deal with third parties are deemed to be agents. A)True B)False
Q3) Glen is an agent for Hi-Flite,Inc.On Hi-Flite's behalf and at its request,Glen pays Ian for certain plane maintenance and repair services.Glen's right to obtain the amount of those payments from Hi-Flite arises under the principal's duty of A)avoidance. B)cooperation.
C)indemnification. D)reimbursement.
Q4) A principal owes his or her agent a duty to act in good faith. A)True B)False
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Chapter 21: Employment Relationships
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Sample Questions
Q1) For works whose jobs have been terminated,federal law provides no right to continued health-care coverage.
A)True
B)False
Q2) Employer who willfully violates safety regulations can be prosecuted under state criminal laws.
A)True
B)False
Q3) Myron is an employee of Nero.Either party can terminate the employment relationship at any time for any reason without liability.With respect to the employment-at-will doctrine,this is
A)an example of the doctrine.
B)an exception based on contract theory.
C)an exception based on public policy.
D)an exception based on tort theory.
Q4) Children under fourteen years of age are not allowed to work.
A)True
B)False
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Page 23
Chapter 22: Employment Discrimination
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Sample
Questions
Q1) Eton files a suit in a federal district court against Florida,alleging employment discrimination under the Age Discrimination in Employment Act of 1967.The state asks the court to dismiss the suit.The court is most likely to rule that A)the state is immune from the suit.
B)the suit can proceed.
C)Eton is immune from any defense the state might offer.
D)the court is immune from such request.
Q2) A plaintiff alleging wage discrimination must file a complaint within a certain period of time of the decision that set the discriminatory pay.
A)True
B)False
Q3) An employer's discrimination against job applicants or employees on certain grounds may violate federal law.
A)True
B)False
Q4) The Civil Rights Act of 1964 does not protect against reverse discrimination.
A)True
B)False
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Page 24
Chapter 23: Immigratiion and Labor Law
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Sample Questions
Q1) An employer can agree with a union not to handle non-union-produced goods.
A)True
B)False
Q2) Sol believes that he has suffered as a result of Tom Turkey Processing,Inc.'s hiring of illegal immigrants.Sol has a direct cause of action against Tom Turkey under A)no current law.
B)the Immigration Act of 1990.
C)the Immigration Reform and Control Act of 1986.
D)the National Labor Relations Act of 1935.
Q3) A union obtains authorization cards from a majority of workers to justify an election among the workers for unionization.
A)True
B)False
Q4) Contracts limiting employees' rights to join unions are lawful.
A)True
B)False
Q5) A supervisor may be included in a worker union.
A)True
B)False
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Chapter 24: Consumer Protection
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Sample Questions
Q1) Drugs can be marketed to the public before they are ensured to be safe and effective.
A)True
B)False
Q2) Green Grocer Corporation makes and markets a variety of processed food products.The federal agency responsible for enforcing health regulations concerning food is
A)the Consumer Product Safety Commission.
B)the Federal Reserve Board of Governors.
C)the Federal Trade Commission.
D)the Food and Drug Administration.
Q3) Labels on fresh meat must indicate where the food originated.
A)True
B)False
Q4) Quackity Quack Company's ad states that its product is "the best on the market today." Because of this ad,the Federal Trade Commission is most likely to A)do nothing.
B)draft a formal complaint.
C)issue a cease-and-desist order.
D)require counteradvertising.
Page 26
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Chapter 25: Environmental Law
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Sample Questions
Q1) The Environmental Protection Agency sets minimum levels for pollutants in public water systems.
A)True
B)False
Q2) The government can recover the cost to clean up a hazardous waste disposal site from the persons who were even remotely responsible.
A)True
B)False
Q3) Consolidated Trucking Company transports radioactive materials.Darla suffers from cancer.To succeed in a suit against Consolidated on the ground of strict liability,Darla must show that her injury was caused by
A)Consolidated's failure to use reasonable care to avert herm to Darla.
B)Consolidated's intentional lack of regard for the general public.
C)Consolidated's operation.
D)radiation from any source.
Q4) State laws may restrict a business's discharge of chemicals into the air or water.
A)True
B)False
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Chapter 26: Real Property Land-Use Control
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Q1) Region Construction Company has a right to drive its trucks across Stable Business,Inc.'s property,which is adjacent to Region's office.This right is
A)a leasehold estate.
B)a license.
C)an easement.
D)a profit.
Q2) A quitclaim deed conveys to the grantee whatever interest the grantor had.
A)True
B)False
Q3) Eminent domain is the right of an owner in fee simple absolute to use property to whomever he or she wishes.
A)True
B)False
Q4) The owner of real property has relatively exclusive rights to the airspace above the land.
A)True
B)False
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28
Chapter 27: Antitrust and Monopoly
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Sample Questions
Q1) Jett Fuel Corporation conditions future shipments of its products to Kondor Airlines,Inc. ,on Kondor's agreement not to buy products from Lite Kerosene Company,Jett's competitor.This is
A)a tying arrangement.
B)exclusive dealing.
C)price discrimination.
D)price fixing.
Q2) Price discrimination occurs when a seller charges the same price to competing buyers for identical goods or services.
A)True
B)False
Q3) Rapido Pizza,Inc. ,is a close corporation with only two shareholders,Sunny and Tomas.Rapido is in the pizza-delivery business.Two other such firms serve the same market,but Rapido controls a 75 percent share.Sunny and Tomas agree that Tomas will buy all of Sunny's Rapido shares.As a condition of the transaction,Sunny agrees not to open a competing pizza-delivery business within a seventy-mile radius or become employed by any rival firm within the same designated area.The covenant is to last five years.Is this an unreasonable restraint of trade Would a court likely declare unenforceable Sunny's promise not to compete
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Page 29
Chapter 28: Antitrust and Restraints of Trade
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Sample Questions
Q1) Mergers between firms that compete in the same market are vertical mergers.
A)True
B)False
Q2) Perfecto Appliance Company,Qualité Kitchens Corporation,and Royale Products,Inc. ,control 90 percent of the market for appliances in a certain geographic area.Perfecto,Qualité,and Royale agree to sell their appliances for the same prices,and to exclude Superia Appliances,Inc. ,which controls the other 10 percent of the market.This is
A)an anticompetitive practice in violation of the Clayton Act.
B)a per se violation of the Sherman Act.
C)a violation of the Sherman Act under the rule of reason.
D)not a violation of antitrust law.
Q3) Under an exclusive-dealing contract,a seller promises a buyer a certain territory in which the buyer will have no direct competition.
A)True
B)False
Q4) Most group boycotts are legal.
A)True
B)False
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Chapter 29: Investor Protection and Corporate Governance
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Sample Questions
Q1) The Securities and Exchange Commission does not regulate the content of proxy statements.
A)True
B)False
Q2) State securities laws apply mainly to intrastate transactions.
A)True
B)False
Q3) Refer to Fact Pattern 29-1A.Fresh decides to sell its new securities via the Internet.This offering
A)will avoid the payment of commissions to brokers or underwriters.
B)is an investment scam.
C)is a Ponzi scheme.
D)constitutes insider trading.
Q4) Under the Sarbanes-Oxley Act of 2002,chief executive officers no longer need to certify the accuracy of information in corporate financial statements.
A)True
B)False
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Chapter 30: Part I: The Foundations
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Q1) Sustainability-economic development that meets the needs of the present without compromising the ability of future generations to meet their needs-is directly addressed by
A)no U.S.statute or other nation's law.
B)U.S.federal environmental laws.
C)other nations' laws but no U.S.statute.
D)international law only.
Q2) In the pursuit of profits,Global Enterprises Corporation engages in what some observers consider to be bad corporate behavior.The worldwide explosion of information technology has led to a transparent global economy that makes socially responsible behavior
A)more important.
B)less important.
C)neither more nor less important.
D)both more and less important.
Q3) Ethical behavior on the part of Plastics Products Company may be inhibited by
A)clear ethical standards.
B)collective decision making.
C)legislative determinations of what represents society's best interest.
D)managers' dissent to unethical decisions.
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Chapter 31: Part II: The Public and International Environment
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Q1) Pitter Pater Corporation is a U.S.firm that does business internationally.Among the ethical challenges facing Pitter Pater and other firms is the role of women because some countries
A)accept any professional role for women.
B)expect any professional role for women.
C)protect any professional role for women.
D)reject any professional role for women.
Q2) Arnie posts online a note that "I have good pix of child & me" with a link to several pictures of minors engaged in sex.Arnie is charged with violating a statute that makes it a crime to distribute material intended to make others believe it is child pornography.He argues that the statute is unconstitutional.The court is most likely to hold that the statute is
A)unconstitutional because it criminalizes speech.
B)unconstitutional because it is overbroad.
C)unconstitutional because it is impermissibly vague.
D)valid because it does not prohibit a substantial amount of protected speech.
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Chapter 32: Part III: The Commercial Environment
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Q1) Dale's debts are discharged in a liquidation bankruptcy.With respect to Dale's prebankruptcy debt,Even Stevens Credit Reporting Agency must automatically report A)nothing.
B)the debt as "discharged," except the nondischargeable debt.
C)the debt as "discharged," including the nondischargeable debt.
D)the debt as "unpaid."
Q2) Hamidi,a coffee farmer in Kenya,forms an alliance with Guthrie,an importer and marketer in Ireland.Their products carry a Fair Trade label.This means that Hamidi
A)accepts whatever price for his products that the market will bear.
B)produces crops with genetically modified organisms.
C)puts children to work whenever possible.
D)uses environmentally sustainable farming methods.
Q3) The Anti-Counterfeiting Trade Agreement is most likely to establish an international governing body to be
A)subject to the World Intellectual Property Organization.
B)under the auspices of the World Trade Organization.
C)part of the Internet Corporation for Assigned Names and Numbers.
D)separate and distinct from existing groups.
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Chapter 33: Part IV: The Business Environment
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Q1) Home & Hearth,Inc. ,is a close corporation owned by Iona,Jamon,and Kleo,who are siblings.Each shareholder is also a director and officer.When the family disagrees over how to operate Home & Hearth,Jamon and Kleo vote to oust Iona from her position as Home & Hearth's president.Iona files a suit against the others,alleging a breach of fiduciary duty.The court may order Jamon and Kleo to A)buy Iona's shares.
B)sell Iona's shares publicly.
C)sell Jamon and Kleo's shares publicly.
D)sell Jamon and Kleo's shares to Iona.
Q2) Beyond Gamez,Inc. ,a video game retailer based in California,does business in all fifty states exclusively online.According to New York state tax law,an out-of-state online retailer must collect and remit state taxes to New York if the retailer
A)plans to establish a substantial physical presence in New York.
B)targets a potential marketing base in New York.
C)maintains a Web site accessible in New York.
D)pays a party within New York to solicit business for its products.
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Chapter 34: Part V: The Employment Environment
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Q1) AgriEquip Service & Supply,Inc. ,sends Merilyn an e-mail in which AgriEquip offers to employ her for certain hours and a specific amount of money over a limited period of time.She responds with a counteroffer that reduces the hours and increases the money.AgriEquip e-mails an acceptance.Merilyn performs,but AgriEquip refuses to pay.She files a suit against AgriEquip for breach of contract.The court is most likely to rule that the e-mail
A)showed only an agreement to agree.
B)was an agreement to the essential terms of an employment contract.
C)constituted an unenforceable,non-existent contract.
D)contained a contract but is unenforceable because it is electronic.
Q2) Desmond is Cassandra's agent.Despite ethical concerns,Cassandra's legal duties to Desmond do not include A)compensation.
B)cooperation.
C)loyalty.
D)reimbursement.
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Chapter 35: Part VI: The Regulatory Environment
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Q1) Cool Corporation makes energy-saving air conditioning units.Cool anticipates a change in the demand for its products as a consequence of climate change.One argument in favor of requiring Cool to disclose this information is that it could lead to
A)additional protections under the Sarbanes-Oxley Act of 2002.
B)an increase in the number of shareholder suits against competitors.
C)sound investment decisions by investors.
D)the conversion of Cool from publicly held to privately held.
Q2) Thai Pizza Corporation is a restaurant chain with twenty locations.Under federal law,Thai Pizza must post
A)the caloric content of the foods on the chain's menu.
B)the recipes for the dishes on the chain's standard menu.
C)the chain's recommendations for the healthiest selections.
D)none of the choices.
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