Principles of Business Law
Practice Questions
Course Introduction
Principles of Business Law provides an introduction to the fundamental legal concepts and frameworks that govern commercial activities. The course covers topics such as the nature and sources of law, contract formation and enforcement, the law of agency, torts relevant to business, the structure of business organizations, and the rights and obligations of employers and employees. Through analysis of statutes, case law, and real-world scenarios, students develop an understanding of the legal environment in which businesses operate and are equipped with practical insight into identifying and managing legal risks within various business contexts.
Recommended Textbook Business Law and the Legal Environment Standard Edition 6th Edition by Jeffrey
Available Study Resources on Quizplus
45 Chapters
2060 Verified Questions
2060 Flashcards
Source URL: https://quizplus.com/study-set/1002
Page 2
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) The Constitution ensures that the states retain all power not given to the national government.
A)True
B)False
Answer: True
Q2) The Occupational Safety and Health Administration promulgated a rule requiring warehouse employees to wear hardhats when in the vicinity of an operating forklift.The purpose of the hardhats is to protect employees from danger of falling objects.This rule is:
A) an executive order.
B) a statute.
C) common law.
D) administrative law.
Answer: D
Q3) The notion of civil disobedience is founded on what principle?
A) Legal Positivism.
B) Natural Law.
C) Legal Realism.
D) Foreseeability.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 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) Why do many major corporations actively encourage ethical behavior?
A) Unethical behavior always damages a business.
B) Unethical behavior can quickly destroy a business.
C) Unethical acts are always illegal.
D) All of the above are reasons that corporations actively encourage ethical behavior.
Answer: B
Q2) Chelvam is the director of quality control.Chelvam rejected some parts as non-conforming to the specifications.Chelvam's supervisor directs him to accept the parts.Which value might give Chelvam the strength to oppose his supervisor?
A) Consideration.
B) Courage.
C) Greed.
D) Ambition.
Answer: B
Q3) A company that engages in unethical behavior may suffer severe consequences.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
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) Lance sued Mega Corp.for negligence,and a jury awarded him $1.2 million.Mega Corp.filed a motion for judgment NOV,and that motion was denied by the trial court.Mega Corp.then appealed the case.Discuss a judgment NOV and when it is appropriate for a judge to grant such a judgment.
Answer: A judgment NOV (non obstante veredicto or not withstanding the jury's verdict)can be entered by the court when the judge is convinced that the evidence presented does not equate to the verdict reached by the jury.The judge,being a trier of fact as well as of law,shares the fact-finding process with the jury -- the jury cannot award damages in a civil trial inconsistent with the evidence.Generally,the judge will defer to the decision of the jury but in some cases where extreme findings are reached by the jury totally inconsistent with the evidence,the judge will nullify the jury's verdict.
Q2) In a civil case,the plaintiff must prove the case beyond a reasonable doubt.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 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) Common law,like statutory law,is prospective.
A)True
B)False
Q2) The last protected trait added by Congressman Smith of Virginia to the bill which became Title VII of the Civil Rights Act of 1964 was:
A) sex (gender).
B) sexual orientation.
C) national origin.
D) race.
Q3) The purpose of the Freedom of Information Act (FOIA)is:
A) to give the government access to information concerning citizens, businesses, and organizations.
B) to limit the amount of information that the government can collect about its citizens, businesses, and organizations.
C) to permit warrantless searches and seizures of evidence when necessary to ensure safety.
D) to give citizens, businesses, and organizations access to information that federal agencies are using.
To view all questions and flashcards with answers, click on the resource link above. Page 6
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) Congress passed the federal OSHA establishing job safety standards.Illinois passed its own statute,which had slightly more lenient standards.Illinois workers are only held to the state standards unless they are involved in interstate commerce.
A)True
B)False
Q2) Judicial review is the power of the federal courts to declare a statute or governmental action void.
A)True
B)False
Q3) Generally,constitutional protections do NOT apply to:
A) acts of the federal government.
B) acts of state government.
C) acts of administrative agencies.
D) acts of privately owned businesses.
Q4) A governmental classification based on gender would be subject to strict scrutiny. A)True
B)False
Q5) Discuss the Miller test to determine if a creative work is obscene.
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) Ahmi was a witness in a lawsuit.When asked why he fired Rana,Ahmi replied,"Rana was fired for willful misconduct." Indeed,Rana had not engaged in any misconduct.Rana will be able to successfully sue Ahmi for defamation based on what Ahmi said in court.
A)True
B)False
Q2) Rodney was employed by Deluxe Discount Store.Rodney's manager directed him to check the prices of dog food at Huge Savings Store.The manager of Huge Savings Store saw Rodney writing down prices and asked him to leave.Rodney,fearful that he would be fired by Deluxe,refused to leave.Rodney committed the tort of:
A) larceny.
B) trespass.
C) misrepresentation.
D) conversion.
Q3) On its Web site,Otrex,Inc.claimed that its pain reliever was more effective than Nelton,a competing pain reliever.Discuss the elements that Nelton must prove to win a case under Section 43(a)of the Lanham Act.
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) Courts have ruled that negligently retaining a violent employee is a tort.
A)True
B)False
Q2) Discuss the concepts of contributory negligence and comparative negligence.
Q3) In a negligence case,the plaintiff must establish:
A) duty, strict liability, causation, and injury.
B) mens rea, breach, foreseeable harm, and injury.
C) duty, actus reus, foreseeable harm, and causation.
D) duty of due care, breach, causation, foreseeable harm, and injury.
Q4) Which of the following acts resulting in injury would be negligence per se?
A) Janet driving 40 mph over the posted speed limit.
B) Ted keeping explosives in his private, locked garage without complying with state law regulating the storage of such materials.
C) A retailer selling glue containing benzene to a 14-year-old boy in violation of state law.
D) All the above acts are negligence per se.
Q5) List and discuss the elements necessary to establish negligence.
Q6) In negligence cases the courts often refer to the term "reasonable person." What is meant by this term?
Page 9
To view all questions and flashcards with answers, click on the resource link above.
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) Mary was suspicious of her neighbor,whom she thought was involved in selling illegal drugs.One day Mary arrived at her apartment and saw a large paper sack tied up with string in front of her neighbor's door.She took the bundle into her apartment,opened it,and discovered it was full of cocaine.She called the police and the neighbor was arrested.The neighbor's lawyer claimed the evidence had been illegally obtained since no probable cause existed to justify opening up the paper bundle.
Q2) Approximately how much merchandise is stolen from United States retail stores every year?
A) $10 million
B) $50 million
C) $10 billion
D) $25 billion
Q3) When measured in dollars,street crime costs society more than twice as much as white-collar crime.
A)True
B)False
Q4) Compare and contrast money laundering and embezzlement.Give an example of each.
Q5) 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) Trein,Inc.,a U.S.company entered into an exclusive distributorship agreement with Posty,Inc.,a Zambian company.This means that Trein will only use Posty to distribute products in Zambia.
A)True
B)False
Q2) It is not a violation of United States law for a domestic company to pay money to a foreign governmental official in order to obtain a contract with the foreign government if this type of "commission" is commonly paid in that foreign country.
A)True
B)False
Q3) Multinational enterprises are companies doing business in several countries simultaneously.
A)True
B)False
Q4) Yount,Inc.is interested in expanding its business to include exporting its products to several other countries.Discuss two federal statutes that should be considered before making the decision to export.
Q5) Explain the origin and purpose of the World Trade Organization.
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) As English judges were developing the common law of contracts in the twelfth and thirteenth centuries:
A) most promises were found to be enforceable.
B) promises were found not binding unless written and sealed.
C) the term "contract" became common.
D) changes in the law occurred rapidly.
Q2) Jerry offers to shovel the snow from Ben's driveway for $35.Ben replies "OK." This is an example of:
A) an implied, unilateral contract.
B) an express, unilateral contract.
C) an implied, bilateral contract.
D) an express, bilateral contract.
Q3) All oral contracts are quasi-contracts until they are completely executed. A)True
B)False
Q4) Contracts for the sale of fabric,automobiles,computers,furniture,and paper clips would all be governed by Article 2 of the Uniform Commercial Code.
A)True
B)False
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) 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
Q2) Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.
A)True
B)False
Q3) The intent of the offeror to extend an offer to the offeree is generally determined by reference to:
A) the beliefs of the offeror.
B) the subjective intention of the offeror.
C) the assumptions of the offeror.
D) the words and conduct of the offeror.
Q4) Revocation is the withdrawal of an offer by the offeror.
A)True
B)False
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) Contracts in which one party agrees to buy all his requirements of certain goods from the other party are generally unenforceable because there is no definite amount.
A)True B)False
Q2) What two exceptions did the UCC create for accord and satisfaction check cases?
Q3) An unliquidated debt can be described as:
A) a debt in which both its existence and amount is in dispute.
B) a debt in which the existence or amount is in dispute.
C) a debt disputed by the creditor but not the debtor.
D) a debt undisputed by either party.
Q4) Frank's Furniture Company promised in a written agreement to purchase as much walnut wood "as it desires" from Forestry Products,Inc.If Frank's purchased walnut wood from another source and Forestry Products sued,what is the likely result?
Q5) Consideration can be a promise or an act.
A)True B)False
Q6) Discuss the concept of consideration.
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) 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.
Q2) In many states it is illegal to lend money to help someone gamble.
A)True
B)False
Q3) L & M loaned Joan $400 so that she could buy her textbooks for the current semester.L & M's terms for repayment of the loan (including interest)are,$200 in two months,$200 in four months,and another $100 at the end of the fifth month.The legal maximum rate of interest on this type of loan is six percent per annum.L & M's loan is usurious.
A)True
B)False
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) If a minor can cancel a contract,it can be done at any time during minority or within a reasonable time after reaching majority.
A)True
B)False
Q2) Spencer,age 18 and of sound mind,has the legal capacity to contract.
A)True
B)False
Q3) A party to a contract has a duty to investigate the other party's factual statements.
A)True
B)False
Q4) Which of the following statements,if made by a seller who knows the statement to be untruthful,would not be misrepresentation of material fact resulting in a cause of action for fraud?
A) "This horse is only six years old."
B) "There is no better car in the world."
C) "The tires have less than 5,000 miles on them."
D) "This car gets 28 miles per gallon. "
Q5) 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) Claude agrees to lease his house to Irvin for nine months,the lease to begin six months from the signing of the contract.Under the statute of frauds:
A) the lease is not required to be in writing.
B) the lease is required to be in writing because of the one-year rule.
C) the parol evidence rule renders the lease voidable.
D) the lease is a collateral promise which must be in writing.
Q2) Which of the following would suffice for a signature on a writing under the statute of frauds?
A) A stamped signature.
B) A handwritten signature.
C) A name keyed at the bottom of an e-mail.
D) Any of the above would suffice. Judges define "signature" very broadly.
Q3) Under the UCC,which of the following contracts may be enforceable,even without a written memorandum?
A) The seller is specially manufacturing the goods for the buyer.
B) The seller admits in court that there was a contract.
C) The seller has delivered the goods.
D) All of the above.
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) Char-Glo Industries contracted with Evergreen Lawn Service to mow and trim the company's lawn.In the contract,Char-Glo included a clause prohibiting Evergreen from delegating its duties.Courts will ordinarily not enforce such a clause.
A)True
B)False
Q2) An assignment is valid:
A) from the moment it is made.
B) from the moment the assignor notifies the obligor.
C) from the moment the assignee notifies the obligor.
D) from the moment the obligor is notified from any source.
Q3) The status of a third party is determined by:
A) the type of contract.
B) whether the third party gave consideration.
C) the reasonable expectations of the third party.
D) the intent of the contracting parties.
Q4) Contract prohibitions against assignments are invalid as a matter of public policy.
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. Page 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) In January 2008,Professor Noe entered into a contract with State University.She agreed to teach full time during the 2008-2009 academic year.Professor Noe died on May 31,2008.Her estate:
A) is obligated to find another person who will agree to teach during the academic year.
B) is discharged from any further obligations under the contract.
C) will be discharged from any obligations under the contract only if it can be shown that her death was unexpected.
D) will not be discharged. If the University has to pay more in order to hire a comparable substitute professor at the last minute, then the estate will be responsible for the difference in pay.
Q2) The legal right to sue for a breach of contract is subject to a statute of limitations. A)True B)False
Q3) What does the term "substantial performance" mean? What factors are generally considered when determining whether one of the parties has substantially performed?
To view all questions and flashcards with answers, click on the resource link above. Page 19
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) If a court awards nominal damages it will generally:
A) award compensatory damages as well.
B) not make a determination as to whether there has been a breach of the contract.
C) award punitive damages for the intentional breach of the contract.
D) award a very small amount of money.
Q2) Abigail signed a contract to purchase a new car from Wolf's Auto Sales Company.The seller breached its agreement by not delivering the car.Abigail went to another car dealer and purchased the same model of car at the same price.Although she had experienced a legal injury,Abigail has no actual financial or other damages as a result of the breach.If Abigail sues and wins,what type of damages will she be awarded?
Q3) Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.
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) When a party to a contract fails to fulfill all of her promises,she has breached the contract.What response does a court typically have for a breach?
Q2) It is unethical to use your lawyer as an excuse for a provision of a contract,such as,"My lawyer insists that I have a liquidated damages clause..."
A)True B)False
Q3) Identify and explain at least four situations where a written contract is either necessary or recommended.
Q4) Some contracting parties are intentionally vague in contract terms. A)True
B)False
Q5) A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising.The contract was probably written by:
A) The owner of A+ Modeling Agency.
B) Sandi.
C) A+ Modeling Agency's lawyer.
D) Sandi's lawyer.
Q6) Define and compare the terms "vagueness" and "ambiguity."
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) During the development of commercial law centuries ago,businessmen throughout England and Europe:
A) settled disputes in trade organizations rather than in civil courts.
B) relied on a body of rules which became known as the lex mercatoria.
C) began to treat their own customs as law.
D) All of the above.
Q2) Which of the following is true regarding an open price term?
A) It makes the contract unenforceable.
B) The price may be fixed by the seller.
C) The price is the "reasonable" price at the time of delivery.
D) The price is set by the buyer.
Q3) 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.
Q4) Megan agrees to sell Nancy her Rolex watch but they do not specify a price.In such a case,the court would not enforce the agreement because all of the essential terms are not present.
A)True
B)False
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) In a shipment contract,title and risk of loss pass to the buyer when the goods are properly tendered at the destination point.
A)True
B)False
Q2) A gun manufacturer in Helena,Montana agrees to sell guns and ammunition to the ATF in Washington,D.C.The terms of the contract specify that the goods are to be shipped "FOB,Chicago." When does the buyer acquire title and risk of loss?
A) When the goods reach Chicago.
B) When the goods are delivered to the carrier in Montana.
C) When the goods are tendered in Washington D.C. by the carrier.
D) When the goods reach Washington D.C.
Q3) Marco sells goods to Byron for his personal use on the basis that the goods may be returned if Byron is not satisfied with them.The sale is:
A) a "sale or return."
B) a "sale on approval."
C) a consignment.
D) outside the UCC.
Q4) 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) Generally,a contract may include language that limits or alters the damages recoverable for a breach of warranty,as long as the restrictions are not unconscionable.
A)True
B)False
Q2) Which of the following would be a breach of the implied warranty of merchantability?
A) A knife that cuts its user when slicing a bagel.
B) A radio that does not pick up FM signals.
C) A match that burns a spot in the carpet when accidentally dropped.
D) A watch that does not keep accurate time after getting wet.
Q3) Even though a car has an obvious dent in the rear quarter panel,the salesperson tells a potential customer,"This car has never been in an accident." The salesperson's statement creates a valid express warranty.
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.
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) A buyer may revoke an acceptance of goods if:
A) the nonconformity does not impair the value of the goods.
B) the buyer had a legitimate reason for the initial acceptance.
C) the buyer knew the nonconformity could not be cured.
D) the buyer thought they could easily cover.
Q2) A baseball team ordered 500 wooden baseball bats from Bats,Inc.,for delivery on June 1.On May 15,the ball team received 500 aluminum bats instead of the wooden ones.As of May 16,Bats,Inc.:
A) may cure before June 1.
B) has breached the contract and is liable for damages.
C) has breached the contract only if the baseball team rejects the goods.
D) may cure if done within a reasonable time, even if it is after June 1.
Q3) Precision had a contract to supply Higgins,Co.with 500 medical instruments for delivery in three months.Several weeks later Higgins reads in the Wall Street Journal that Precision has been sued for selling defective instruments.Higgins could:
A) require written assurances from Precision.
B) sue Precision for damages immediately.
C) "cover."
D) declare the contract is breached.
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) Landscaper Lottie used her machinery,employee labor,and her expertise to landscape Opal's new guest home.Opal fails to pay for the landscaping because she has run out of money.Lottie files a lien against the real property.This lien is called:
A) an artisan's lien; her landscape design is a work of art.
B) a landlord's lien; Opal is planning to rent the guest house to a tenant.
C) a mechanic's lien; it was created by improving real property.
D) a purchase money security interest.
Q2) Donna defaulted on her loan owed to Second State Savings and Loan.The loan was secured with Donna's car.Donna used the car for personal and family reasons.Which statement is correct?
A) Second State may take Donna's car without a court order if this can be done without a breach of the peace.
B) Second State may take Donna's car without a court order even if it means a breach of the peace.
C) Second State may not take Donna's car because it is a consumer good.
D) Second State may not take Donna's car because perfection was automatic.
Q3) Explain the difference between attachment and perfection.
To view all questions and flashcards with answers, click on the resource link above.
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) It was payday.Navidida decided to run some errands and then deposit her check in the bank over her lunch hour.So that she wouldn't have to spend too long at the bank,Navidida indorsed the back of the paycheck as follows,"Navidida Jones," before leaving work.While window shopping,Navidida lost the check.Roger finds Navidida's paycheck.
(A)Will Roger be able to cash Navidida's check?
(B)How could have Navidida indorsed the check so that she would not have to be concerned about losing the check?
Q2) Felicia,an elderly woman,does not speak or read English well.Felicia is a recent immigrant to this country.A dishonest immigration officer tells Felicia to sign several documents as being necessary to maintain her legal alien status.Unknown to Felicia,she signs a promissory note.The immigration officer thereafter sells the note to Neighborhood Bank,a holder in due course,who goes after Felicia for payment of the note.Felicia's defense to the Neighborhood Bank is:
A) fraud in the inducement; a real defense.
B) fraud in the execution; a real defense.
C) unauthorized completion; a personal defense.
D) breach of contract; a real defense.
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) Mona co-signs a promissory note with her daughter Beth so Beth can purchase her first car.Mona will be discharged from her obligation on the note:
A) if Beth pays the obligation in full under the terms of the note.
B) if the creditor extends the final due date because of allowing Beth to skip a payment in December.
C) Both of the above.
D) only if Mona dies before Beth's obligation is discharged.
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) All but which of the following serves as a discharge of a negotiable instrument: A) payment.
B) cancellation.
C) alteration.
D) presentation.
To view all questions and flashcards with answers, click on the resource link above.
Page 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) Auditors cannot protect themselves from liability to third parties by issuing a qualified or an adverse opinion.
A)True
B)False
Q2) Manuel,in conducting an audit,must rely most heavily on rules found in generally accepted accounting principles (GAAP).
A)True
B)False
Q3) 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.
Q4) Who owns and controls an accountant's working papers?
A) The client, in theory.
B) The IRS.
C) The accountant, in theory and practice.
D) The AICPA.
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) Andrew has been hired to do some work for Rossi Enterprises.What factors would a court consider in determining if Andrew is an employee or an independent contractor? Why does the designation matter?
Q2) Circus Pizza contracted with Art to run its birthday parties.Art's responsibilities included supervising the children and organizing the games.Circus did not investigate Art's background,which included a history of assaulting children.Art assaulted a 7-year-old girl in the restaurant's kitchen during a birthday party.Circus Pizza: A) cannot be liable for the damages because Art committed an unforeseeable intentional tort.
B) cannot be held liable for the damages because Art's conduct was not in the scope of employment.
C) may be held liable on the basis of negligent hiring.
D) may be held liable only if Circus actually knew of Art's background.
Q3) A principal is bound by contracts that an agent enters into with authority.Discuss the various types of contractual authority an agent may have.
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) When may an employer require an employee to submit to a lie detector test?
A) When the employee has been hired for less than 90 days
B) When the test is part of an on-going investigation into crimes that have occurred.
C) When the employer has reason to believe the employee is using illegal drugs on the job.
D) When all employees are being questioned using a lie detector.
Q2) It is legal for a private employer to use lie detector tests as part of its usual hiring process.
A)True
B)False
Q3) Under the Americans with Disabilities Act,a person with a disabling illness:
A) is not considered disabled once the illness is being managed with medicines.
B) is not considered disabled unless there is no known cure.
C) is considered disabled, but only at times when hospitalization is required for treatment.
D) is considered disabled, even if the illness is under control.
Q4) Explain the Title VII requirements on affirmative action,and identify three sources of affirmative action programs.
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 closed shop means the employer must hire only union members.Federal law expressly allows closed shops.
A)True
B)False
Q2) Mega Corp is negotiating a collective bargaining agreement with a union.The company claims it is not financially able to pay the wage increase the union is demanding.Which statement is correct?
A) The union has a legal right to inspect the financial records of the company to verify that the employer cannot pay the proposed wage increase.
B) It is an unfair labor practice if the employer claims it cannot pay the higher wages but refuses to allow the union to inspect its financial records.
C) Both of the above are correct.
D) None of the above.
Q3) The management and union at TriColor have bargained for two years without reaching an agreement.After notifying the union,TriColor prohibited the workers from entering the factory to work.This is a lockout.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Seventy farmers in Morgan County joined together to gain the advantages of purchasing seed and fertilizer in bulk and of obtaining better prices when distributing and selling their crops.These farmers have formed a:
A) business trust.
B) cooperative.
C) franchise.
D) joint venture.
Q2) Rachel and Cyndi started a retail business called Zebra Toy Company.The business is operated as a partnership.Under partnership law:
A) Rachel is personally liable for any business contracts entered into by Cyndi.
B) Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation.
C) Rachel is personally liable for any negligent act committed by Cyndi in the scope of the business activity.
D) All the above.
Q3) A partnership is a taxable entity,separate from the partners.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
33
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) 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.
Q2) Kyle,Pedro,and Madeline form a partnership.There is no agreement as to the duration of the partnership.The partnership is a partnership at will.
A)True
B)False
Q3) Lily is involved in the winding up of her partnership.Lily is not entitled to compensation for her work since she is a partner.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 34
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) Terminating a corporation is a three-step process: dissolution,winding up,and termination.
A)True
B)False
Q2) Owners of preferred stock typically have a preference in liquidation.
A)True
B)False
Q3) TriColor,Inc.is doing business in Minnesota,West Virginia,and Oklahoma.TriColor must register in all three of these states.
A)True
B)False
Q4) 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.
To view all questions and flashcards with answers, click on the resource link above. Page 35
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) A manager used her position in the company to develop a new business the company might have pursued.This is a breach of the:
A) duty of care.
B) duty of non-competition.
C) duty of loyalty.
D) duty of recognition.
Q2) The "business judgment rule" has been replaced by "good faith statutes" in most states.
A)True
B)False
Q3) In the Unocal Corp.v.Mesa Petroleum Co.case,the court said the board of directors could act with the primary goal of keeping themselves in office.
A)True
B)False
Q4) List and discuss the three ways to acquire control of a corporation.
Q5) Identify the three types of masters corporate managers serve and discuss the goals of each.
Q6) What is the definition of the business judgment rule?
Q7) Discuss the purposes of the "business judgment rule."
To view all questions and flashcards with answers, click on the resource link above. Page 36
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) Alberta is not employed by E-prise,Inc.but she is a member of E-prise's board of directors.Alberta is an outside director.
A)True
B)False
Q2) Meredith,a shareholder in Quarto,Inc.,notified Quarto's board of directors that the corporation had been wronged and asked the board to bring a lawsuit in the corporation's name.In response to Meredith's demand,the board:
A) can file suit on behalf of the corporation.
B) can reject Meredith's demand or simply fail to respond.
C) can appoint a Special Litigation Committee.
D) can do any of the above.
Q3) The proceeds,if any,of a derivative lawsuit go to:
A) the shareholders of the corporation.
B) the shareholders who actually filed the lawsuit.
C) the board of directors.
D) the corporation.
Q4) Vernon and David are the controlling shareholders in E-treme,Inc.Discuss the obligations that Vernon and David owe to the minority shareholders.
To view all questions and flashcards with answers, click on the resource link above.
Page 37
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) The 1933 Act exempts all but which of the following from its registration requirements?
A) Short-term notes.
B) Treasury stock.
C) Government securities.
D) Annuity contracts.
Q2) Securities issued by banks are exempt from SEC registration.
A)True
B)False
Q3) 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.
Q4) Typically,exemptions under the 1933 Act are based on either the type of security or the type of transaction.
A)True
B)False
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) 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?
Q2) Francesca cannot serve as a trustee in a bankruptcy case because she is not a lawyer.
A)True
B)False
Q3) What are the three main purposes of the federal Bankruptcy Code? How are these purposes supported and fostered in the Code?
Q4) The correct order of payment of claims from the debtor's estate would be:
A) secured claims, priority claims, unsecured claims.
B) secured claims, unsecured claims, priority claims.
C) priority claims, secured claims, unsecured claims.
D) priority claims, unsecured claims, secured claims.
Q5) Artistic Framing,a business with $120,000 of unsecured debt,needs to file for bankruptcy,but wants to continue in business.Discuss what chapter of the Bankruptcy Code should be used,and discuss the effect of the 2005 amendment to the Code on the proceedings.
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) 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.
Q2) A major motion picture distributor offers to provide a television station with three very popular,desirable films.However,as part of the agreement,the distributor requires that the television station also purchase four films that are not very desirable.This type of arrangement is called a:
A) reciprocal dealing agreement.
B) reverter arrangement.
C) joint custody arrangement.
D) tying arrangement.
Q3) 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) MoneyMaker Toy Company violated the safety standards set forth by the Consumer Product Safety Commission when it produced a toy gun that caused injury to hundreds of children.Because of MoneyMaker's actions:
A) the CPSC can impose civil penalties on the company.
B) the CPSC can impose criminal penalties on the company.
C) users can sue for damages, including attorney's fees, if MoneyMaker knew it was violating a consumer product safety rule when it produced the guns.
D) All of the answers are correct.
Q2) In a closed-end credit transaction:
A) the lender makes a series of loans with a maximum amount set before the first loan is made.
B) if the lender is offering a "teaser rate," this must be clearly disclosed.
C) the Federal Reserve Board should be consulted before a lender is chosen.
D) there is only one loan, and the borrower knows the amount and payment schedule in advance.
Q3) Brooke uses her credit card to purchase a lawn mower at the local "big box" hardware store,but when she tries to use the mower for the first time,she finds it is not self-propelled as advertised.Does she have any recourse?
To view all questions and flashcards with answers, click on the resource link above.
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) The cost-benefit trade-off is particularly complex in environmental issues because those who pay the cost often are not the ones who receive the benefit.
A)True
B)False
Q2) TriColor,Inc.purchased a piece of land from HBC,Inc.Hazardous waste was subsequently discovered on the land.Even though TriColor did nothing illegal,it may be liable under CERCLA for the cleanup costs.
A)True
B)False
Q3) Foiler Manufacturing,a new corporation,estimates it may generate approximately 200 kilograms of hazardous waste each month.Discuss the EPA requirements it faces in relation to this waste.
Q4) Researchers have found that the EIS process generally does not have a beneficial impact on the environment.
A)True
B)False
Q5) 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) Online auctions:
A) are the major source of consumer complaints about online fraud.
B) involve approximately $1 million worth of goods annually.
C) allow people to bid on their own goods.
D) allow owners of goods to cross-bid with a group of other sellers.
Q2) Sherry,a 12-year-old,visited a website that wanted to know her family size,her parents' educational level,and her weekly allowance.The site also asked Sherry's name,mailing and e-mail addresses,and age.
A) Under COPPA, the website must disclose how it will use the information it acquires from Sherry.
B) COPPA prohibits the Internet operator from collecting such information without her parents' permission.
C) COPPA does not apply to Sherry's situation since she is over the age limit for those protected by the statute.
D) Both a and b.
Q3) The Electronic Communications Privacy Act is a federal statute regulating e-mail.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
43
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) A copyright is valid for 28 years after it is obtained and can be renewed for another 28 years.
A)True
B)False
Q2) 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
Q3) Provisional patents are good for one year.
A)True
B)False
Q4) In hopes of speeding up the approval process and making it more accurate,the Patent and Trademark Office has begun a pilot program which allows anyone to participate in the patent approval process.
A)True
B)False
Q5) List the four different types of "marks" that can be protected under trademark law.Explain how each mark is used.
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) Laverne knew that her house was infested with termites.Nevertheless,Laverne listed her house for sale by owner.Shirley had been looking for the perfect house for months now.She was about to give up the search when she decided to stop at Laverne's open house one Sunday afternoon.Shirley fell in love with the house,the yard,and the neighborhood.Shirley was so excited about buying this house that she did not bother to hire an attorney,hire a company to conduct a termite inspection,or talk to the neighbors about the condition of the house.Within six months after buying the house,the front porch started to crumble,exposing the rotten wood destroyed by termites.The neighbors confirmed that Laverne had mentioned that the house was infested with termites.Shirley wants out of the deal or money to repair the termite damage.Shirley's claim against Laverne would most likely be based on:
A) a duty to disclose defects.
B) the implied warranty of habitability.
C) a partition action.
D) profit.
Q2) The city of Richmond needs land owned by the Neelans to expand a middle school.The Neelans do not want to sell.Discuss what course of action the city can take and the basis for this action.
To view all questions and flashcards with answers, click on the resource link above.
Page 45
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) Bruce tells his son,"You can have my 1990 truck,but if your grades fall,I'm taking it back." Bruce:
A) has made no gift.
B) has made a "revocable gift," which is effective as a gift as long as the stated condition is met.
C) intended to transfer ownership.
D) has made a constructive gift.
Q2) Discuss a bailor's liability for defects in the bailed property.
Q3) Mega Corporation,the bailor,negotiates a bailment agreement with Huge Corporation,the bailee.Huge Corporation insists that an exculpatory clause be included in the terms and conditions of the bailment agreement.Later,Huge Corporation negligently (ordinary negligence,not gross negligence)damages the property which is the subject of the bailment.Most courts will allow Huge Corp.to stand behind its exculpatory clause and deny liability.
A)True
B)False
Q4) 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.
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) Lying on her hospital bed alone one night,Phyllis grabs a pen and paper.With the last of her strength,she wrote her last will and testament leaving all her worldly possessions to her next-door neighbor,Aaron.This type of will is:
A) a nuncupative will.
B) disinherited children's share will.
C) holographic will.
D) None of the above.
Q2) Which of the following is generally covered under casualty insurance?
A) Employee theft or embezzlement.
B) Disability.
C) Transportation insurance.
D) Vandalism.
Q3) Insurance policies often contain a covenant of good faith and fair dealing.Even if the clause is not in the policy,often courts will imply it.Explain the covenant of good faith and fair dealing and provide an example illustrating when an insurance company might breach this covenant.
Q4) The Uniform Probate Code has been adopted in all states.
A)True
B)False
Page 47
To view all questions and flashcards with answers, click on the resource link above.