2. The state governments retain all powers not specifically delegated to the federal government. (Points: 2)
3. A reference to "28 U.S.C. Section 1332" means that a federal court’s decision can be found on Page 28 of Section 1332 of the United States Cases. (Points: 2)
4. To have standing to sue, a party must have been harmed or have been threatened with harm by the action about which he or she complains. (Points: 2)
5. The roles that women play in some foreign countries may present some difficult ethical problems for firms doing business internationally. (Points: 2)
6. A battery occurs only if the victim suffers actual physical harm. (Points: 2)
7. There are no statutes regulating the use of spam. (Points: 2)
8. An applicant cannot register a trademark on the basis of an intention to use the mark in commerce. (Points: 2)
9. A service mark is used to distinguish products produced by the federal government from those produced by private corporations. (Points: 2)
10. Because the Internet is vast, the unauthorized use of another's mark in a domain name is generally permissible. (Points: 2)
11. A patent cannot be obtained for a plant or an animal. (Points: 2)
12. Criminal liability depends on the commission or omission of an act. (Points: 2)
13. Larceny relies on stealth while robbery relies on fear and force. (Points: 2)
14. Embezzlement can be committed only by physically taking property from the possession of another. (Points: 2)
15. A promisee is a person who makes a promise. (Points: 2)
16. An offer to form a unilateral contract is accepted by a promise to perform. (Points: 2)
17. Parties can form a contract without putting the terms in writing. (Points: 2)
18. An offer must be communicated by mail or in person. (Points: 2)
19. A transaction that lacks a bargained-for exchange lacks an element of consideration. (Points: 2)
20. Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties. (Points: 2)
21. An accord and satisfaction requires that the amount of a debt must not be in dispute. (Points: 2)
22. A minor who affirmatively misrepresents himself or herself to be an adult will not be able to disaffirm a contract in most states. (Points: 2)
23. Parents are required by law to provide necessaries for their minor children. (Points: 2)
24. Most courts are usually very concerned about the fairness of contracts. (Points: 2)
25. If a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforceable. (Points: 2)
26. Justifiable reliance on a misrepresentation is an element of fraud. (Points: 2)
27. To be enforceable, any assignment must be in writing. (Points: 2)
28. The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages. (Points: 2)
29. Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable. (Points: 2)
30. To date, most courts have applied traditional common law principles to cases arising in e-commerce. (Points: 2)
31. Under the UETA, a signature may be denied legal effect solely because it is in electronic form. (Points: 2)
32. The UETA provides that a document cannot be notarized electronically. (Points: 2)
33. A principal has a duty to cooperate with the agent. (Points: 2)
34. Apparent authority exists if a principal causes a third party reasonably to believe that an agent has authority to act. (Points: 2)
35. Wrongful termination of an agency relationship can subject the canceling party to a suit for damages. (Points: 2)
36. To recover workers' compensation, an employee must prove that an injury was not the fault of the employer. (Points: 2)
37. An employee who leaves a job voluntarily cannot later claim to have been "constructively discharged" on the basis of unlawful discrimination. (Points: 2)
38. Joint ownership of property in and of itself creates a partnership. (Points: 2)
39. In winding up a limited partnership, non-partner creditors are paid before the partners receive their capital contributions. (Points: 2)
40. A limited liability company cannot be taxed as a corporation. (Points: 2)
41. Corporate officers hire corporate directors. (Points: 2)
42. A shareholder in a professional corporation can be liable for malpractice arising from the rendering of professional services. (Points: 2)
43. Shareholder approval is required when a corporation buys all of the assets of another company. (Points: 2)
44. Directors are rarely compensated, but when they are, they cannot set their own compensation. (Points: 2)
45. A corporation whose security does not qualify for an exemption can dispense with the requirement of a registration statement. (Points: 2)
46. Any corporation with more than $10 million in assets and 500 or more shareholders must register with the Securities and Exchange Commission. (Points: 2)
47. Household Furnishings, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate (Points: 2)
any commercial activity in the United States that substantially affects interstate commerce.
only activities that are in intrastate commerce.
only activities that are in local commerce.
only activities that are not in commerce.
48. A Massachusetts state statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be (Points: 2)
unconstitutional under the commerce clause.
unconstitutional under the due process clause.
unconstitutional under the free exercise clause.
49. Inferior Company sells products that are poorly made. Jack, who has never bought an Inferior product, files a suit against Inferior, alleging that its products are defective. The firm's best ground for dismissal of the suit is that Jack does not have (Points: 2)
sufficient minimum contacts.
50. Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of (Points: 2)
51. Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio (Points: 2)
has a sufficient stake in the matter.
has sufficient minimum contacts with the parties.
is a more convenient location to hold the trial.
52. In studying the legal environment of business, Professor Dooley’s students also review ethics in a business context. Ethics includes the study of what constitutes (Points: 2)
fair or just behavior.
financially rewarding behavior.
53. Callie, a lawyer on the staff of Droll International Ltd., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on (Points: 2)
the consequences of an action.
the nature of an action.
54. Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she (Points: 2)
discloses the truth.
represents as a fact something that she knows is untrue.
states an opinion concerning something that she knows nothing about.
55. Molly shoots Norm with Opal’s pistol. The proximate cause of Norm being shot is most likely attributable to (Points: 2)
Molly and Opal.
neither Molly nor Opal.
56. Amber pushes Brad into the path of an oncoming car driven by Carol. Don tries to rescue Brad, but the car hits both of them. Amber is liable for the injuries of (Points: 2)
Brad and Don.
neither Brad nor Don.
57. 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 website. Food Business has committed (Points: 2)
none of the choices.
58. Rory designs a new computer hard drive, which he names "Sci Phi." He also writes the operating manual to be included with each final product. Rory could obtain patent protection for (Points: 2)
the hard drive only.
the name only.
the operating manual only.
the hard drive, the name, and the operating manual.
59. Portia, a businessperson, is convicted of RICO offenses. Portia's penalties may include (Points: 2)
dissolution of her business but not forfeiture of its assets or imprisonment.
forfeiture of the business assets but not dissolution of the business or imprisonment.
imprisonment and dissolution of her business but not forfeiture of its assets.
dissolution of her business, forfeiture of its assets, and imprisonment.
60. Barb allows Candy to enter Barb's warehouse and take a DVD player. Charged with theft, Candy can successfully claim, as a defense, (Points: 2)
61. Britney promises to deliver a certain couch to Dan, who promises to pay for the service. Britney does not perform. She may be required to (Points: 2)
make another promise.
perform a different service.
62. Jay tells Kim that he will buy her textbook from the last semester for $80. Kim agrees. Jay and Kim have (Points: 2)
an express contract.
an implied-in-fact contract.
an implied-in-law contract.
a quasi contract.
63. Cory enters into a contract with Dian to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to (Points: 2)
the parties' intent as expressed in their contract.
what the defendant claims was the parties' intent.
what the plaintiff claims was the parties' intent.
what the parties now agree they intended.
64. Geof offers to sell his Honda for $10,000 to Ilsa, who says, "I'll pay no more than $5,000." Geof says, "Forget it. I changed my mind." Geof's offer was terminated by (Points: 2)
Geof and Ilsa.
the market prices of similar vehicles.
65. Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 A.M. Monday. A contract is formed if Shopping Stores' acceptance is received (Points: 2)
any time on Monday.
before 10 A.M. Monday.
before 11 A.M. Monday.
within twenty-four hours of 10 A.M. Monday.
66. Quality Steel Corporation files a suit against Rite Tool Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if (Points: 2)
it is obvious that the consideration is adequate.
Rite Tool asserts that there is adequate consideration.
something of value passed between the parties.
the consideration is worth more than $100.
67. Eastside Warehouse offers to sell a forklift to Forest Lumber Company, but it is stolen before Forest accepts. Eastside must obtain (Points: 2)
a forklift for Forest, if Eastside's insurance covers the loss.
a forklift for Forest, if it wants one.
nothing for Forest, because that would extend the time of the offer.
nothing for Forest, because the theft terminated the offer.
68. Quix Fix-It, Inc., offers Polly a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate (Points: 2)
after a reasonable period of time.
after a typical work week (five business days).
after a usual month (thirty calendar days).
69. Don enters into a contract with Emma, who does not have contractual capacity. Don can enforce the contract only if Emma (Points: 2)
elects not to avoid the contract.
is a minor.
is intoxicated or mentally incompetent.
is a minor, intoxicated, or mentally incompetent.
70. While a minor, Jason buys a car that he continues to use and keep in repair after reaching the age of majority. Jason has (Points: 2)
disaffirmed the contract.
ratified the contract.
rejected the contract.
rescinded the contract.
71. Joy induces Kelly to enter into a contract for the purchase of a condominium about which Joy knowingly misrepresents a number of material features. When Kelly discovers the truth, Kelly can (Points: 2)
enforce the contract and seek damages.
enforce the contract but not seek damages.
neither enforce the contract nor seek damages.
seek damages but not enforce the contract.
72. Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may (Points: 2)
not rescind the contract.
rescind the contract only if Roc did not know the law before the deal.
rescind the contract only if Steve knew about the law before the deal.
rescind the contract only if the law is not common knowledge.
73. Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of (Points: 2)
the digital music, the MP3 player, and the speakers.
the MP3 player and the speakers only.
the MP3 player only.
the speakers only.
74. Uri and Vicky orally agree on the sale of Uri’s Nite Club to Vicky and note terms on a pair of the Club’s napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain (Points: 2)
the essential terms.
the preliminary terms.
the qualitative terms.
75. Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint. This is most likely (Points: 2)
a complete excuse for Quinn's refusal to pay.
a material breach.
76. Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC’s 50-acre tract for which RDC agrees to pay Sid. Sid transfers his duty to log the tract under the contract to Timber Logging Company. Timber is (Points: 2)
77. Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 P.M. and 6 A.M. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been (Points: 2)
78. A zoning law that affects the lease will cause its termination. Union City's zoning board adopts a new zoning classification that affects the lease. This adoption satisfies (Points: 2)
the condition precedent.
the concurrent condition.
the condition subsequent.
79. Julio contracts to provide lawn-mowing services to Kevin for $140 per month. Julio cannot transfer this duty (Points: 2)
under any circumstances.
without continuing to be potentially liable.
without Kevin’s consent.
without paying Kevin at least one monthly fee.
80. Recreational Pools, Inc., agrees to build a swimming pool for Sandy, but fails to build it according to the contract specifications. Sandy hires Total Fix-It Company to finish the project. Sandy may recover from Recreational Pools (Points: 2)
the contract price less costs of materials and labor.
the contract price.
the costs needed to complete construction.
profits plus the costs incurred up to the time of the breach.
81. Outstate Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtain (Points: 2)
an amount in quasi contract.
damages representing restitution.
specific performance of the deal.
82. Precision Applications Corporation (PAC) sends an electronic record to Quotient Systems, Inc., a PAC customer. Under the UETA, the record will be considered received when it (Points: 2)
enters Quotient's processing system in a readable form, even if no person is aware of its receipt.
enters Quotient’s processing system in a readable form, only if a person is aware of its receipt.
is midway between the parties' processing systems.
passes out of PAC's control.
83. Genetic Seed Company hires Howie to work in its shipping office, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely (Points: 2)
an independent contractor.
a work for hire.
84. Cody contracts with Drew to act as her agent in a fraudulent marketing scheme. Cody does not successfully complete the scheme. Drew can recover from Cody for (Points: 2)
breach of contract.
breach of implied warranty.
breach of the duty of performance.
none of the choices.
85. Sanitary Supplies Company requires its customers to pay by check. Tyla, a Sanitary driver, tells customers on her route that they can pay her with cash. When Sanitary learns of Tyla's collections, it takes no action to stop her. Tyla steals some of the cash. Sanitary may suffer the loss under the doctrine of (Points: 2)
86. Sunny is a salesperson for Tech Instruments, Inc. (TI). She misrepresents to Universal Piping Company, a customer, that a certain device has a certain capability. In reliance, Universal buys the device. Liable for this misrepresentation is (Points: 2)
Sunny and TI.
Universal but neither Sunny nor TI.
87. Ida hires Jim, a real estate broker, to act as her agent to sell her land for $100,000. Oil is discovered beneath the land, causing its market value to increase 100-fold. The agency agreement is likely (Points: 2)
still in force if Ida gives Jim additional consideration.
still in force if Jim does not mention the oil to prospective customers.
terminated by mutual consent of the parties.
terminated by operation of law.
88. Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain (Points: 2)
a subpoena and a warrant.
a subpoena or a warrant, but not both.
not a subpoena, a warrant, or the employer's consent.
the employer's consent.
89. Bo and Clancy decide to do business as Dynamo Production Associates. To be a partnership, this association can result from an agreement that is (Points: 2)
express, but not from an agreement that is implied.
implied, but not from an agreement that is express.
oral, written, or implied by conduct.
written, but not from an agreement that is oral or implied.
90. Owen, Paula, Quinn, and Rita combine to finance the building of Super Stores, a shopping mall. Their selected form of business organization is an investment group, or (Points: 2)
a business trust.
a joint stock company.
a joint venture.
91. Pola and Quint want to form and do business as River Tours Corporation. A corporation can consist of (Points: 2)
no natural persons.
one natural person but not more.
one or more natural persons.
only more than one natural person.
92. Like the bylaws of other corporations, the bylaws of Retail Sales, Inc., (Points: 2)
establish the operating name of the corporation.
establish the value and classes of corporate stock.
were adopted at its first organizational meeting.
were submitted for approval to the public official in charge.
93. Giant Lift Corporation purchases all of the assets of Heavy Hydraulics Corporation. With respect to Heavy Hydraulics’s liabilities, Giant Lift is (Points: 2)
not responsible under any circumstances.
responsible if Heavy Hydraulics is a competitor of Giant Lift.
responsible if the sale is actually a merger or consolidation.
94. Nina is a director of Omega, Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be (Points: 2)
ambiguous and questionable.
arguable and defensible.
informed and reasonable.
perfect and unassailable.
95. Mit-E Clean Corporation wants to make an offering of securities to the public. This offering is not exempt from registration under the Securities Act of 1933. Before the firm sells its securities, it must provide investors with (Points: 2)
a forward-looking financial forecast.
an investment contract.
a road show.
96. Hobie, the chief executive officer of Ideal Gamers, Inc. (IGI), intentionally understates the amount of IGI’s debts in information provided to investors as part of an issue of IGI stock. Jaq buys the stock and suffers a loss. Hobie may be subject to (Points: 2)
government prosecution and Jaq's suit.
neither government prosecution nor Jaq's suit.
only government prosecution.
only Jaq's suit.
97. Kirk is the chief financial officer of Lemon Corporation, which is required to file certain financial statements with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Kirk must personally (Points: 2)
certify that the statements are accurate.
delegate the responsibility for preparing the statements.
deliver the statements to the appropriate SEC officer.
prepare the statements.
98. Heavy Hauling, Inc., is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that Heavy Hauling’s financial results are accurate and timely, the firm’s senior officers must set up and maintain (Points: 2)
internal "disclosure controls and procedures."
external "release and reveal timetables."
personal "peruse and review liability policies."
public "information and discussion forums."
99. Bess, an agent for Calm Harbor Marina, Inc., enters into an unauthorized contract with Dropt Anchor Worx, Inc., purportedly on behalf of Calm Harbor, which refuses to perform. Bess is liable to (Points: 2)
Calm Harbor and Dropt Anchor for breach of contract.
Calm Harbor for misrepresentation.
Dropt Anchor for misrepresentation.
100. Begin Anew Enterprise, Inc., completes its registration process and begins advertising the availability of its new issue of securities. The firm places a tombstone ad in the financial papers. This ad tells prospective investors (Points: 2)
about the company.
where to buy the securities.
where to obtain a prospectus.
Recently Asked Questions
- Please can someone help me out on this business stat hw?
- Imagine one morning at precisely 6:00 a.m., you find a gold nugget under your pillow. Attached is a note. The note states that, if you leave the nugget under
- I was not able to go to class the day this was taught. I am confused on how to figure out how to find the loans, reserves and deposits for this question?