Business Law 265
9 Pages

Business Law 265

Course Number: LAW 265, Spring 2010

College/University: Boise State

Word Count: 3608

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Business Law 265 Fall 2002, Exam #2 October 30, 2002 Multiple Choice: Each question is two points. ____ 1. Evan owns First Enterprises, a sole proprietorship. In a sole proprietorship, the liability of the owner is a. limited by state statute and varies from state to state. b. limited to the amount of his or her original investment. c. limited to the amount of his or her original investment plus any subsequent...

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Law Business 265 Fall 2002, Exam #2 October 30, 2002 Multiple Choice: Each question is two points. ____ 1. Evan owns First Enterprises, a sole proprietorship. In a sole proprietorship, the liability of the owner is a. limited by state statute and varies from state to state. b. limited to the amount of his or her original investment. c. limited to the amount of his or her original investment plus any subsequent capital expenditures. d. unlimited. ____ 2. Quik Pizza is operated as a partnership. For tax purposes, Quik Pizza a. is a tax-paying entity. b. is required to file an information return but is not a tax-paying entity. c. pays 1/2 of the taxes if there are two partners. d. pays 1/4 of the taxes if there are three partners. ____ a. b. c. d. Owen and Paula agree to operate an espresso stand. They purchase their supplies and split the costs equally. They agree to share profits equally, and decide that each of them will have an equal say in how the stand will operate. Nothing is put in writing. Owen and Paula have formed a partnership. a sole proprietorship. a type of business firm that is not a partnership or a sole proprietorship. nothing because their agreement is not in writing. 3. ____ a. b. c. d. ____ a. b. c. d. Mike is an architect who works for General Construction Company. The most important factor in determining whether Mike is Generals employee or an independent contractor is the degree of control that General exercises over Mike. the distinction between Generals business and Mikes occupation. the length of the working relationship between General and Mike. the method of payment. 5. Ellen, a salesperson at Top Tile Company, tells a customer, Buy your tile here, and Ill install it myself for half of what Top would charge you. The customer makes the purchase based on Ellens representation. Ellen installs the tile, charges the customer $500 for installation, and keeps the money. Ellen has breached the duty of 4. loyalty. notification. Due care. Vicarious liability. ____ 6. International Software, Inc., employs Jill as an agent. During the agency, Jill acquires new knowledge and skills. She also learns Internationals trade secrets, including customer lists. After the termination of the relationship, Jill uses her acquired skills and knowledge, but not Internationals trade secrets, in a new job. Jill has breached the duty of a. b. c. d. loyalty. obedience. performance. Jill has breached no duty. ____ a. b. c. d. Doug employs Executive Personnel Agency as an agent. They sign a written agreement that describes the rights and duties of both parties. This is apparent authority. express authority. implied authority. none of the above. 7. ____ a. b. c. d. Greta hires David to act as her agent in the purchase of a home. Greta does not want the seller to know that she is the buyer, so she asks David to represent that he is making the purchase for himself. Greta is a disclosed principal. a partially disclosed principal. an undisclosed principal. an independent contractor. 8. ____ a. b. c. d. Tri-State Trucking Company employs Warren as a delivery agent. While making a delivery within the scope of employment, Warren negligently causes an accident in which Yvonne is injured. Yvonne can recover from Tri-State Trucking only. Warren only. Tri-State Trucking or Warren. none of the above. 9. 10. The Statute of Frauds requires the signature of which party or parities in order to make a contract enforceable? a. The plaintiff only b. The defendant only c. Both the plaintiff and the defendant d. Neither the plaintiff nor the defendant ____ a. b. c. d. 11. Jill develops a new espresso machine, which she names "Quik Shot." She also writes the operating manual to be included with each final product. Jill could obtain trademark protection for the espresso machine only. the name only. the operating manual only. the espresso machine, the name, and the operating manual. ____ a. b. c. d. 12. Ernie's Good Times Restaurant uses a distinctive decor, layout, menu, and style of service. This restaurant's image and overall appearance is a certification mark. a collective mark. a service mark. trade dress. ____ a. b. c. d. 13. George owns Murphy's Grill, a restaurant in a small town in Ohio. Without George's consent, Food Business, Inc., opens a club in New York City called Murphy's and begins to use "murphys" as part of the URL for the club's Web site. Food Business has committed copyright infringement. patent infringement. trademark dilution. no violation of intellectual property rights. ____ a. b. c. d. 14. Earl designs a new computer hard drive, which he names "Sci Phi." He also writes the operating manual to be included with each final product. Earl could obtain patent protection for the hard drive only. the name only. the operating manual only. the hard drive, the name, and the operating manual. ____ a. b. c. d. ____ a. b. c. d. 15. Adam invents new accounting software and applies for a patent. If Adam is granted a patent, and the patent withstands challenge, his invention will be protected for ten years. for twenty years. for the life of the inventor plus seventy years. forever. 16. In 2002, Tom writes The Internet Murders, a mystery novel. Tom does not register the work with the appropriate government office. Under federal copyright law, Tom's work is protected not at all. for twenty years. for the life of the author plus seventy years. forever. ____ 17. Sheila uses, on her new sound recording, the melody of a song written by Tom, without Tom's permission. This is a. copyright infringement. b. patent infringement. c. trademark infringement. d. none of the above. ____ a. b. c. d. 18. Bob files a suit in a federal district court against Nora. Nora loses the suit, appeals to a U.S. court of appeals, and loses again. Nora asks the United States Supreme Court to hear the case. The Court is required to hear the case because it comes from a federal court. required to hear the case because it is an appeal. required to hear the case because Nora lost in the lower court. not required to hear the case. ____ a. b. c. d. 19. Betty files a suit against Carl. Before going to trial, the parties meet, with their attorneys to represent them, to try to resolve their dispute without the involvement of a third party. This is arbitration. litigation. mediation. negotiation. ____ a. b. c. d. ____ 20. Mike files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent them, to formally present their dispute to a third party (other than a court) who renders a legally binding decision. This is arbitration. litigation. mediation. negotiation. 21. Jan and Kyle sign a contract that provides if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jan files a suit against Kyle. The court will likely a. b. c. d. hear the suit and then order the parties to arbitrate. hear the suit without ordering the parties to arbitrate. order relief without hearing the suit or compelling the parties to arbitrate. order the parties to arbitrate. ____ 22. Joe is a used-car salesperson. Joe commits fraud if, to make a sale, he a. represents as a fact something he knows is untrue. b. states an opinion concerning something about which he knows nothing. c. uses puffery, or seller's talk. d. all of the above. ____ a. b. c. d. 23. Ron, a driver for American Trucking Company, negligently causes a five-car accident on an interstate highway. Ron and American Trucking are liable to all those who are injured: the but for rule. only those whose injuries could reasonably have been foreseen: the proximate cause rule. only those whose cars were immediately ahead and behind Ron's vehicle: the proximity rule no one. ____ a. b. c. d. 24. A state statute requires amusement park owners to maintain their equipment in specific condition for the protection of their patrons. Ed, who owns an amusement park, fails to maintain the equipment as required. Fran, a patron, is injured thereby. Ed has committed a dram shop act. a Good Samaritan act. negligence per se. res ipsa loquitur. ____ a. b. c. d. 25. Martha owns a demolition company. If a passerby is injured during a demolition by Martha's crew, under the theory of strict liability Martha must pay for the injury only if the crew intended to injure the passerby. only if the crew knew of the normal consequences of its actions. only if the injury was reasonably foreseeable. whether or not the crew was at fault. ____ 26. According to the exclusionary rule a. persons who have biases that would prevent them from fairly deciding a case may be excluded from the jury. b. certain business records may be protected from subpoena by the government. c. illegally obtained evidence must be excluded from consideration in a trial. d. certain parties to a criminal action may be excluded from a trial. ____ a. b. c. d. 27. Bradley agrees to hire Russell to work at his store for a salary of $170 per week. Bradley later cancels the contract because he has decided to spend the summer in Australia. Russell is entitled to recover the wages that he would have received while working for Bradley less any wages he receives in a replacement job plus any incidental damages. only the wages that he would have received while working for Bradley less any wages he receives in a replacement job. only the wages that he would have received while working for Bradley. nothing. 28. Maria owns a unique original oil painting. She contracts to sell this painting to Ann. The contract calls for delivery of the painting on November 30, 2002. However, Maria changes her mind and does not want to sell. What legal remedy will place the painting in Anns hands? a. compensatory damages b. consequential damages c. rescission d. specific performance ____ 29. Contract offers become effective when they are a. Sent b. Received ____ a. b. c. d. 30. Ron breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, the landlord would have to avoid reletting the premises to recover any damages from Ron. make reasonable efforts to relet the premises to mitigate the damages recoverable from Ron. relet the premises to recover any damages from Ron. sell the premises to recover any damages from Ron. ____ a. b. c. d. 31. Lyle and May want to rescind their contract under which Lyle sold a laser printer to May for $200. To rescind the contract Lyle must return the $200 only. May must return the printer only. Lyle must return the $200 and must May return the printer. none of the above. ____ a. b. c. d. 32. Ann and Burt sign a contract in which Ann agrees to paint Burt's house for $2,000. They agree later that Burt will pay Ann's supplier, City Paint Store, the $2,000 directly. City Paint Store is a delegatee. an assignee. an incidental beneficiary. an intended beneficiary. ____ 33. Lois takes out a life insurance policy that names her son, Matt, as the beneficiary. This is a. a delegation. b. an assignment. c. a third party incidental beneficiary contract. d. a third party intended beneficiary contract. ____ a. b. c. d. 34. Through fraudulent means, Frank induces Ethel to sign a contract to invest with him the profits from her business. When Ethel learns the truth, she may only enforce the contract. only recover what she invested with Frank. enforce the contract or recover what she invested with Frank. do nothing. ____ a. 35. Eve borrows $10,000 from First National Bank. Frank orally promises the bank that he will repay the loan if Eve does not. Frank's promise is enforceable by Eve only. b. c. d. enforceable by First National Bank only. enforceable by either Eve or First National Bank. not enforceable. ____ a. b. c. d. 36. Max purchases a motorcycle while still a minor and continues to maintain it and operate it after reaching the age of majority. Most courts would hold that he had disaffirmed the contract. ratified the contract. rescinded the contract. none of the above. ____ a. b. c. d. 37. Tony, a minor, attempts to return to its former owner, a car that he purchased and subsequently wrecked. In most states Tony can return the car in its damaged condition and obtain return of his purchase price. can return the car in its damaged condition and obtain return of his purchase price less the value of the damage. is not required to return the car but can obtain the return of his purchase price will not be able to return the car unless it can be fully restored to its original condition. 38. Able, Baker and Charlie are owners of Ace Car Dealership, Inc. (ACD) of Moscow, Idaho. The corporation has issued 90 shares, and each owner has 30 shares. Able is employed by ACD as service manager, Baker as sales manager, and Charlie as general manager. After many years of profitable operation Baker and Charlie decide to get rid of Able, even though Able is doing a great job. Baker and Charlie vote to fire Able, and he is forced to leave. Baker and Charlie have violated their a. Fiduciary duty to Able who is a fellow shareholder in ACD corp. b. Duty of loyalty to Able who is a fellow shareholder in ACD corp. c. Duty of due care to Able who is a fellow shareholder in ACD corp. d. Baker and Charlie have violated no duty to Able. 39. Jose is a 10% partner in McDougals, a fast food restaurant. The restaurant started operating in 2001, and lost $100,000 that year. Jose is employed by the University of Idaho as a professor, and makes a salary of $60,000 per year. When Jose filed his 2001 income taxes, his taxable income wass a. $50,000 b. $60,000 c. $70,000 d. zero 40. Betty and Sue own and operate a coffee cart business. Bettys family is wealthy. Her Great-Aunt died and left her investments worth $3 million. Sue has no money. Betty and Sue each work 30 hours per week. Sue has another job that she works an additional 40 hours a week on. At the end of Sues shift one day she is very tired. A customer asks for a cookie that has no peanuts because the customer is allergic to peanuts. Because Sue is so tired, she mistakes the customers request and thinks he has asked for a cookie with peanuts. Sue gives him a cookie loaded with peanuts, and the customer has a severe anaphylactic reaction and dies. The customers spouse sues and is receives a judgment for $3 million in damages. Betty was in no way at fault in causing this tragic accicent. a. Betty will have to pay the entire $3 million, and can try to recover half from Sue. b. Betty will have to pay half the judgment, $1.5 million, and the plaintiff can try to collect the other half from Sue. c. Betty will not have to pay anything because she is not at fault at all. d. Betty will not have to pay anything because she is not a partner. 41. Marsha is a traveling salesperson for Moscow Farm Tractors (MFT). Her territory is North Idaho. She has serviced many of the farmers in this region. After working for MFT for 15 years the owner discovers that Marsha has stolen thousands of dollars; Marsha is then fired. Marsha has not saved for her retirement, and she needs money desperately. She develops a plan: she will visit many of the farmers to whom she has sold tractors in the past and tell them that MFT is having a special sale: 50% off this week only, with cash down payment of half the purchase price. Marsha visits 100 farmers who do not know that she has been fired. They sign purchase contracts for 300 tractors and give Marsh $500,000 as down payments on these purchases. Marsha then gets on a plane for South America and is never seen or heard from again. After a while the farmers demand their tractors. Is MFT legally liable to deliver the tractors to these farmers as per the contracts they signed with Marsha? a. b. c. d. No, because when Marsha was fired her actual authority was terminated No, because Marsha was not authorized to act as she did Yes, because Marsha had apparent authority to act as she did Yes, because Marsha had actual authority to act as she did 42. Same facts as above. In addition, after the owner of MFT fired Marsha, she immediately placed a notice in the legal notices section of every newspaper in Marshas old territory. The notices stated that Marsha no longer worked for MFT and had no authority to transact business for MFT or enter into contracts on behalf of MFT. These notices ran for three weeks, the legally prescribed period of time for legal notices. However, none of the farmers who gave deposits on tractor orders to Marsha read or was aware of these notices. a. MFT must honor Marshas sales contracts and deliver the tractors. b. MFT does NOT have to honor the sales contracts and deliver the tractors because Marsha did not have actual authority to act as she did. c. MFT does NOT have to honor the sales contracts and deliver the tractors because Marsha did not have apparent authority to act as she did. d. MFT does NOT have to honor the sales contracts and deliver the tractors because the notices published in the newspapers acts as constructive notice and the law treats it the same as if the farmers had actual notice delivered to them. 43. Alex Brown is the general manager of a restaurant owned by the ABC Corporation. Alex works for ABC Corporation. The restaurant is called Magic Moment Restaurant. ABC asks Alex to have the restaurant renovated. Alex makes a contract with Reliable Contractors for $50,000 in renovations. Alex signs the contract as follows: Alex Brown, agent for Magic Moment Restaurant. The work is done perfectly but ABC Corp. has financial problems and can not pay for the renovation. Reliable Contractors wants to Sue Alex for the unpaid work. a. Alex is liable because he as acting as agent in this contract. b. Alex is liable because he did not accurately disclose the identity of the principal in this contract. c. Alex is not liable because he merely acted as acting as agent in this contract. d. Alex is not liable because he did accurately disclose the identity of the principal in this contract. 44. Tony is a cab driver for Yellow Cabs. One day another driver gives him the finger. Tony lost his temper. He forced the other driver to the side of the road, got out of his cab, and hit the other driver with an iron pipe. The other driver suffered permanent brain damage and sued Yellow Cabs for $1 million. Is Yellow Cabs liable in this case? a. Yes, because Tony was an employee. b. Yes, because Tony was negligent c. No, because Tony was not acting intentionally d. No, because Tony was not motivated by an intent to serve his employer. 45. Under the legal theory of vicarious liability, a party can be held liable a. Even though that party did nothing wrong b. Only if that party did something wrong c. Only if a statute prohibited the type of acts committed by the defendant d. Only if the victim will otherwise go uncompensated. 46. The formula for Coca-Cola is best protected as intellectual property by which legal concept? a. Patent b. Copyright c. Trade Secret d. Trademark 47. Which type of intellectual property protection is intended to inform customers of the origin of goods and avoid confusion in the marketplace? a. Patent b. Copyright c. Trade Secret d. Trademark 48. After which type of dispute resolution is there NO APPEAL, in most cases? a. Litigation b. Arbitration c. Mediation d. Negotiation 49. Sandy mails an offer by letter to Ted on October 1. The offer is to sell Sandys BMW motorcycle for $3,000. The offer is received on October 3. Ted already had three motorcycles, so on October 4 Ted mails a rejection to Sandy. This rejection is received by Sandy on October 7. However, on October 5 all of Teds motorcycles are stolen. He then wants to buy Sandys BMW motorcycle so he mails an acceptance to Sandy on October 5. This acceptance letter is received on October 8. Is there a contract as a result of these communications? a. Yes, a contract was formed on October 5 under the mailbox rule. b. Yes, a contract was formed on October 8 when Sandy received the acceptance letter. c. No, a contract was not formed because the rejection was mailed on October 4, before the acceptance was mailed. d. No, a contract was not formed because the rejection was received before the acceptance was received. 50. Free question. Please enter d as your answer. You will receive free credit for this question if you have correctly entered your scantron information. On the last exam 4 students failed to do this. Common errors are: -Forgetting to darken the circles under your I.D. # or name. -Darkening the wrong circle (very common). -marking the darkened circles out of alignment. This is easy to do; best to check with a straight edge. -Incorrectly entering your I.D.#. -Do not enter you birthdate information. Never give out this information if you can avoid it. It can be used for identity theft. Why not double check? Answer Key 1. d 2. b 3. a 4. a 5. a 6. d 7. b 8. c 9. c 10. b 11. b 12. d 13. d 14. a 15. b 16. c 17. a (but any answer is graded as correct) 18. d 19. d 20. a 21. d 22. a 23. b 24. c 25. d 26. c 27. a 28. d 29. b 30. b 31. c 32. b 33. d 34. c 35. d 36. b 37. a 38. d 39. a 40. a 41. c 42. a 43. b 44. d 45. a 46. c 47. d 48. b 49. d 50. d

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More Clause Practice 1. What Black Elk had never seen was Wasichu, white men. 2. After the battle, Black Elk moved from the original camping site and didnt know where he went. 3. Wasichu whom the Indian initially treated well made little islands or the In
Pasadena - ENGLISH - ESL 33A
More Patterns for grammar genius 1.Red Cloud, the great chief for the Indians, held a discussion at Powder River, and the Indians warriors finally decided to attack the white men after the conference was dismissed. 2. Settlers made a treaty with the India
Pasadena - ENGLISH - ESL 33A
More sentence patterns 1.What the old boys in the tribe played was called Throwing-Them_Off_TheirHorses. 2. A medicine man called Creeping came and cured patients in the tribe when the winter made that a lot of Indians got snowblind. 3. A great Crazy Hors
Pasadena - ENGLISH - ESL 33A
Vocabulary a. Temperance Temperance means the ability that people have to control their behavior well. b. Silence Silence states a situation that surrounding environment is extremely quiet. c. Order Order means a way in which people or things are arranged
Pasadena - ENGLISH - ESL 33A
What did Douglas know about his family, and what else did he want to know? What did James find out about his mother regarding her qualities? He knows extremely little about his family. Douglass mother died when Douglas was just seven years old, and he had
Pasadena - ENGLISH - ESL 33A
How did Indians decide on the names they gave people, seasons, places and events? How was this naming process similar to earlier people in your culture? For example, many names of places and even your names relate to something in the environment. Name the
Pasadena - ENGLISH - ESL 33A
Describe the life of both Granny and Nanny. What did they expect compared to what they experienced? Describe the life of your grandmother. In what ways do their lives contrast and compare? As a bride, Granny was unfortunately jilted by his bridegroom, Geo
Pasadena - ENGLISH - ESL 33A
1. Why did Carnegies family decide to come to America? In what ways are your reasons for coming to America the same or different from Carnegies? Carnegies family come to America because of Carnegies fathers unemployment. His father was the only bread-winn
Pasadena - ENGLISH - ESL 33A
1. What motivated Addams to create experimental programs, such as HullHouse, to fight poverty? In other words, why would she give up a life of wealth to devote her time to helping the homeless? Where does that belief come from? Because a lot of her classm
Pasadena - ENGLISH - ESL 33A
Hok Lam Chong ESL 33B 10:30a.m 1:30p.m Qualities of successful people Success should be properly defined as attainment or achievement of certain goals. Only achieving their own goals, people will be still deemed successful even though not gaining any pres
Pasadena - ENGLISH - ESL 33A
Hok Lam Chong ESL 33B 10:30a.m. 1:30p.m. Pioneer American Women As a pioneer woman, Nanny succeeds in pursuing her freedom and makes choice in her marriage. Here, pioneer woman means a woman, the first person in particular flied, or a woman moving to the
Pasadena - ENGLISH - ESL 33A
Hok Lam Chong ESL 33B 10:30am 1:30pm Qualities of American characters American characters in various stories possess some similar qualities because the writers usually want to express some ideas by creating a character who has certain characteristics and
Pasadena - ENGLISH - ESL 33A
Sentence Combination 1. Writing seems simple in theory, and, having something to say, a person puts down a series of sentences, like beads on a string. 2. But close observation of skilled writers reveals that things are often more complex than simple. 3.
Pasadena - ENGLISH - ESL 33A
1. American students often cram for quizzes and exams, but European students tend to distribute and integrate learning. 2. The contrasting patterns of assessment cause such dramatic difference in student behavior. 3. Because assuming students do not enjoy
Pasadena - ENGLISH - ESL 33A
Summary of Case against colleges All the youngsters who are interested in learning, intend to become a teacher, or intend to get advanced degrees are right people in college. However, in reality, a large portion of college students are just the learning d
Pasadena - ENGLISH - ESL 33A
Summary of Case against college (Rewrite) People who are interested in learning or have the tendency to become a teacher should be the right people in the college. However, most college students are indeed slackers or hail the college education as a uniqu
Kaplan University - BU - 204
H ow to analyze a supply and demand problem.
Kaplan University - MM - 305
MM305QuantitativeAnalysisforManagers Unit6Project Pleasedownloadthisdocumenttoyourcomputerandsaveitusingthenaming conventionspecifiedinthecoursesyllabus.Aftercompletingandsavingtheproject problems,submityourprojectintheDropBoxforUnit6. 1.BrantleyCollegeha
Century College - CHEM - 32
3.l 3.1.:formation of 1,2,4-trioxolane rings( . ) P 6 D:1H NMR spectra of untreated SOSignals increasing1H (ppm) 13C (ppm) 5.085.11 (m) 104.1, 104.3 103.4, 104.4,1.63 (bp) 30.6 1.35 (bp) 23.6, 23.7, 23.8 23.3, 23.4,Decreasing signals1H (ppm) 1