What is the goal of government regulation of business?
Government regulates business in order to eliminate abuses and to control conduct
considered to be unreasonable. The goal is to enhance the quality of life for society as
a whole by setting the rul
Chapter38 Types of Insurance (pg.464)
1. Why does an insured normally obtain life insurance?
An insured generally obtain life insurance to protect the beneficiary from financial
hardship resulting from the death of the insured.
2. What is it that all term
Chapter30 labor legislation (pg.359)
1. What are the two major objectives of the Fair Labor Standards Act?
The first objective placed a floor, regardless of economic conditions, under wages of
employees engaged in interstate commerce (trade among or betwe
Chapter27 Operation and Termination of an Agency (p.322)
1. Why does the relationship of agent and principal call for a higher degree of faith and
trust than do most contractual relationships?
The relationship of agent and principal calls for a higher deg
1. What two factors determine whether the drawer of a check can raise against a remote
holder a defense the drawer has against the payee of the check?
The answer to this depends on the nature of the drawers defense against the person
CHAPTER21 ESSENTIALS OF NEGOTIABILITY
1. If an instrument is not negotiable, it is totally unenforceable?
An instrument must comply with seven requirements in order to be negotiable. If it lacks
any one of these requirements, the document is not negotiabl
CHAPTER6 OFFER AND ACCEPTANCE
1. Explain the two essential elements of a contract
An offer, either expressed or implied; and an acceptance, either expressed or
2. List the three requirements for a valid offer.
It must be definite.
It must appear
Chapter29 Employees Rights (pg.349)
1. To whom does the federal Civil Right Act of 1964 apply and who is excluded from
coverage of the act?
The act applies to every employer who has fifteen or more employees and engages in an
industry affecting interstate
Chapter26 Nature and Creation of an Agency (p.310)
1. What three parties are involved in every contract an agent negotiates?
The three parties are involved the principal, the agent, and the third party.
2. Why is agency so important to business?
Chapter24 Liabilities of Parities and Holders in Due Course
1. What are the two basic categories of liability incidental to negotiable instruments?
The liability created by what is written on the face of the paper (contractual
Chaper3 Business Torts and Crimes
1. Give three examples of intentional torts.
An act by the defendant, an intention to cause the consequences of the act, and
causation- the injury was caused by the defendants act or something set in
motion by the act.