BUSI 301 Quiz 5 Administrative and Consumer Law solutions complete answers

BUSI 301 Quiz 5 Administrative and Consumer Law solutions complete answers

 

Which of the following is false regarding the Consumer Product Safety Commission (CPSC)?

 

In _____, each concerned interest group and the agency itself sends a representative to bargaining sessions led by a mediator. After the parties achieve a consensus, that agreement is forwarded to the agency.

 

Paul’s next-door neighbor Sheridan stole an unsolicited credit card from Paul’s mailbox that was sent to Paul with his name on it. Sheridan charged $5,000 on the card. What is Paul’s liability?

 

Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however, and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Federal Trade Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and any other vehicles Barry offered for sale. Under the Truth in Lending Act what type of information should Kathy have received from ABC Bank?

 

Four Paws Protection. The United States Congress created a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was enacted naming the agency the "Animal Protection Commission" and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate. Which of the following is true regarding the claim of Fluffy Shampoo that the agency had no power to compel attendance and the provision of documents?

 

The Equal Credit Opportunity Act (ECOA) makes it illegal for creditors to deny credit to individuals based on all but which of the following characteristics?

 

The United States Congress created the Federal Trade Commission (FTC) through the Federal Trade Commission Act of _____.

 

In order to be upheld in court, an agency's fact finding must be supported by which of the following?

 

New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed except for cause. Additionally, no more than a majority of the commissioners may be from the same political party. Her agency is getting ready to issue rules. The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules. Debby's boss, Blaire, gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process. Blaire also told her that at this point she was not very interested in hybrid rule making. Which of the following is the most likely type of rule making in which the Accounting Commission is involved?

 

Which of the following is true regarding consumer protection laws against used-car fraud?

 

The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which a recent death has occurred because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of offering one flat price for funeral services with no itemization?

 

Independent agencies are often called _____ and tend to have more narrow authority over many facets of an industry.

 

The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which a recent death has occurred because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of requiring a complete package purchase from him if the consumer desires any funeral services?

 

Monica was on a trip abroad when her credit card was stolen. She immediately notified her credit card company before any unauthorized charges were made; nevertheless, $500 was still mistakenly allowed to be charged. What is Monica’s liability?

 

The Truth in Lending Act regulates _____.

 

When an agency is referred to as a "captured" agency, there is the belief that agency officials are unduly influenced by _____.

 

The Government in Sunshine Act requires that _____.

 

According to the Postal Reorganization Act of 1970, any unsolicited merchandise sent by mail is free to be used at the recipient’s discretion, _____.

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following is the term for the order issued by the Federal Trade Commission requiring Katie to stop advertising and selling the pills?

 

The _____ created the Interstate Commerce Commission (ICC), the first federal administrative agency.

 

Which of the following terms means that past decisions guide future decisions?

 

Why is it important to understand comparative law as a business person?

 

The blank are a collection of all the laws in one convenient location

 

When classifying law which of the following is not a way in which laws classified?

 

If Dalynda caused Tonya to breach a contract with a customer because she did not ship the promised goods, which type of law is applicable?

 

Restatement of law can best be described as

 

Which type of law involves the rights and responsibilities involved in relationships between persons in between persons and their government?

 

When the United States president negotiates a treaty as part of his or her executive duties how many US senators does it take to ratify the treaty to make it binding?

 

The environmental protection agency, occupational safety and health administration and Consumer Product Safety Commission are all types of

 

Tarius was driving under the influence and hit an injured a pedestrian in violation of the law in clear Lake, Minnesota against drinking and driving. Under which of the following laws will Tarius be charged?

 

Do United States Congress enacted a law that penalized businesses if they did not offer health insurance to workers in certain major industries. Where could a business owner look to determine if his or her business was exempt from the new law?

 

When judges make legal interpretations, this is often referred to as case law or

 

Which of the following is not one of the six functional areas of business that sits on the foundation of business law?

 

Paired with the publications of the American Law Institute, what became the source of the uniform commercial code?

 

Louisville, Kentucky is debating a new business ordinance that will address sidewalks and it city. Members of the Louisville city council do not need to confirm themselves with which of the following issues?

 

Which of the following is not a purpose of the law as set forth in the text?

 

International expansion period Zach wants to expand his coffee business internationally Dash into Zeno, a small remote country in Africa. His friend Zara asked him if he plans to hire legal counsel for the expansion. Zach replies, "of course not. The US has the strictest laws regarding contracts, employment, and business practices. So long as I'm legal here, I'm legal anywhere. Besides I studied up on Xenolaw 10 years ago, and I know it all." Zach proceeds in Landon jail in the remote country of Zeno for violating recently passed laws protecting employees and mandating certain benefits. Authorities there claim that he sexually harassed an employee, failed to pay sufficient wages, and failed to give employees Zenos mandated 12 weeks of vacation per year.

 

The type of law involved in comparing lies between the US and Zeno is

 

In which of the following cases did the US Supreme Court rely on precedent to strike down a schools admissions policy that reserved slots for members of minority races?

 

Which of the following is one of the numerous purposes fulfilled by the law?

 

Assume a restaurant is forced to pay damages to a person who suffered food poisoning after eating at the restaurant. What type of laws involved?

 

To the dogs. Alice loves all animals and is starting a new grooming business for dogs. She believes that animals are very important and plans to exceed any applicable regulations regarding cleanliness and health standards. Alice thinks some local regulations make no sense. For example, there is a local ordinance that all dogs must be kept on a leash at all times were not in a fenced area. Although Alice lives on a large lot with plenty of room for the dogs to run free she plans to obey the leash regulation and all others. She is aware, however, that members of the community have had success in changing local regulations by petitioning the city Council. I was plans to proceed in that manner to attempt a change in the leash law.

 

Alice's plan to seek change through following what others have done in the past by petitioning city Council is rooted in which of the following?

 

Inattentive driving. While cutting class and driving off campus to check on her new dress for the upcoming formal, Molly, a busy college student, is busy talking on her cell phone with her friend Sharon. Molly is trying to talk Sharon into going to the dance with her brother who has a big crush on Sharon. Unfortunately for Molly, there is a statue in her state outlying talking on a cell phone while operating a motor vehicle. Molly crashes into the side of Sam's new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans. A police officer just down the street comes over to investigate. Molly explained to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Around that time Sam comes along. He is furious regarding the significant debt and his new car. Molly says she has insurance and that she will cover the whole incident. Sam says that is insufficient. The officer is annoyed because it is his lunch break. He tells Molly that she must obey the law and proceeds to write several citations to her. Which type or types of law is or are involved in the above situation considering Molly's interaction with both the officer and Sam?

 

If a computer store dumps waste behind its building in violation of local, state, or federal environmental regulations, the resulting dispute focuses on blank law

 

The stolen book. Eddie tell Susan that Bob stole her business law book from her car. The next day Susan confronts Bob and slaps him for stealing her buck. Bob has Susan arrested for slapping him. Susan sues Bob for damages in the amount of the buck in for maliciously having her arrested. Claiming that she lied, Bob sues Betty for defamation. The action Bob has against Betty for defamation involves which of the following?

 

Which of the following is true regarding Zack's legal problems in Zeno?

 

Which of the following would not be considered a stakeholder for the purposes of the WH framework?

 

An ethical dilemma is a problem about what a firm should do for which no clear right decision is available

 

When evaluating primary values, what is not one of the alternative meanings to justice described in the textbook?

 

Before business managers consider the social responsibilities of firms in their communities they need to

 

Employees are one of the major stakeholders of a business

 

What does the golden rule mean when discussing ethics?

 

Business ethics requires all except the following

 

What does the so-called public disclosure or television test mean in regard to ethical considerations?

 

According to the textbook which of the following is not one of the core values associated with Adidas?

 

In 2011 Tyson foods of Arkansas was found guilty of violating which law when it was found to be receiving bribes from Mexican officials?

 

Business ethics is concerned with making correct decisions when making important decisions about the future of business

 

Ethics is the study and practice of decisions that meat but do not exceed minimum standards of behavior prescribed by law

 

Kristen Richmond one of the founders of Revolution foods believes that the objective of revolution foods is to do what in response to Kraft's lunchables?

 

What do values generally represent?

 

Environmental concerns. Connie the president of a company that makes paper has a new interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and was also committed to change things at work. Connie had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited however because it employs a very large number of people in the community including the mayors wife and the chief of police's brother. On her mission to clean things up Connie has decided to go even further than the law requires an install the very latest environmental protections. When she announced her plan the chair of the company's Board of Directors Brooke had a meeting with Connie. Brooke told Connie to analyze the situation carefully because the cost of the additional equipment would be no dividend to shareholders and no raise for employees. Furthermore, Brooke told Connie that installing all the new equipment would result in higher prices for the companies paper products and could bankrupt the company because of foreign competition. Brooke hinted that Connie could be fired if she persisted. Brooke suggested that Connie just be concerned with a minimal standard of ethics. Connie however, decides to go forward with her plan to clean things up because she wants to treat others in the same manner that she wants to be treated.

 

Connie's approach is best referred to as the

 

Which of the following is an example of the primary value of freedom?

 

Reasonable people can expect to disagree about optimal solutions to ethical dilemmas.

 

Ethical standards are uniform across the United States but are not uniform internationally.

 

The social responsibility of business consists of what the expectations blank imposes on firms.

 

In the WH process of ethical decision making, what does the H stand for?

 

When Dole Food Company was sued by a bunch of its employees for the use of a chemical and it's bananas, the jury order door to pay $2.5 million in punitive damages. What became of this punitive damage award?

 

Which of the following is the minimal standard that a business me and consideration of business ethics?

 

A business decision cannot be legal but unethical.

 

Which of the following would be a stakeholder in the company?

 

Business manager should make sure they consider all relevant stakeholders when they engage in ethical reasoning.

 

What type of dispute resolution process is med-arb?

 

In Hertz Corp. V-. Friend, the United States Supreme Court set forth the blank test as the appropriate test for determining a corporations principal place of business for the purposes of diversity jurisdiction.

 

What is the procedure by which the plaintive presents the defendant with a copy of the complaint and summons indicating the defendant is being sued?

 

A private trial is an alternative dispute resolution method often referred to as

 

Derran is being examined under oath by an opposing parties attorney. All responses are being recorded by a court reporter. This process is known as an

 

What is a provision in a contract mandating that all disputes arising under the contract be settled by arbitration called?

 

Which of the following is the proper term for the geographic location that each state statutes determine is proper to hear a case?

 

Accord acquires in personam jurisdiction over the plaintiff when

 

Which of the following is true regarding the United States Supreme Court?

 

If a corporation is being sued by an individual, where is the corporations residence considered to be?

 

In which of the following to parties select a neutral third-party and explain their respective positions to the neutral third-party, who then evaluates the strengths and weaknesses of the case?

 

Which of the following is an extension of negotiation?

 

Penelope is being sued by her old employer over breach of contract. The plaintive cents Penelope a list of written questions that she is to answer Underoath. These are known as

 

Under what circumstances may an arbitration award be set aside under the federal arbitration act?

 

Which of the following makes mediation advantageous?

 

After the discovery process, either party can file a motion for blank. This motion asserts that no factual disputes exist and that if the judge applied the law to the undisputed facts, her only reasonable decision would be in favor of the moving party.

 

Most states have a statute that allows for his court system to serve an out of state defending if certain minimum contact requirements are met. What is the name of the statute

 

Which of the following is true regarding state intermediate courts of appeal in state court systems?

 

Which of the following is not one of the areas of exclusive jurisdiction that a federal court offers?

 

Supposed Paula, a president of Florida, and her brother Tom, who lives in Maine, have a dispute about their grandmother's real estate left to them in a will. The property is in Michigan, where the grandmother lived. Which of the following is true regarding jurisdiction over this dispute?

 

Supreme court. Jim, who is a bit eccentric, says that he is fed up with the way a certain employer in his town treats employees and that he's going to sue that employer in an effort to improve matters. Jim also says that he's going to start his case at the appellate court level, skipping over all those "lesser" judges. Jim says that those justices will surely hear him out and that he will also seek a jury. Although he's not a lawyer, Jim believes that the offenses of the employer are so severe that the justices will appreciate his attempt to make things better for the employees involved. Will an appellate court initially hear Jim 's case deciding issues such as whether he has a claim and can act as a plaintiff?

 

Revenge. Jane, a first year law student, while walking to school in inclement weather, accidentally slipped on ice knocking down Greg, another first year law student breaking his glasses. He was very angry with Jane and let the air out of one of her car tires. Greg also decided to see Jane for negligence, claiming as damages $300 for his broken glasses. He decided that he already knew all about the lawn he did not need a lawyer. Greg Sue Jane in state court. Jane, the same lawsuit, Brian action against Greg for letting the air out of a tire. At trial in State Court, Jane told the judge that a friend, Susie, told her that she saw Greg let the air out of genes tire. The judge disallowed jeans testimony on that issue. Susie, however, who is in the quart room also came in testified to that effect. The state court judge rolled in favor of Jane. Greg said that he was not giving up and he would seek double damages on a peel in federal court. Janet and Greg live in different states when not a 10 school. After trial, Jane reported Greg's actions in letting their out of her tire to the police who said that they would proceed with a criminal action against Greg. Greg goes to see Alex, a recent graduate who had just passed the bar, and asked Alex represent him in a federal court appeal. What advice should Alex give to Greg regarding an appeal filed in federal court?

 

Puppy Woes. Sam promised to sell Linda a Welsh Corgi puppy for $300 but backed out of the deal. Linda sued Sam in state court for breach of contract. Linda asked for a jury in her complaint. During jury selection, one juror, Ann, said that she did not think they could be fair to Linda because Linda did not appear to be a dog lover. Linda asked that Ann not hear the case, and the judge excused Ann. Linda also decided that another juror, Sandy, looked at her in a grumpy manner so she asked the judge to excuse that juror from serving. The judge did so. After the jury was chosen, Linda made a statement to the jury, as did Sam. Linda then called to the witness stand a friend of hers, Brenda, who heard the discussion held between Linda and Sam regarding the purchase of the puppy. Brenda testified under questioning by Linda that she heard Linda say that she would pay $300 for the puppy and that she also heard Sam say that he would sell the dog for that amount. Unfortunately for Linda, Brenda also testified in response to questioning by Sam that Sam distinctly told Linda that he would only sell the puppy to her if Linda came with cash for the puppy within seven days. Linda did not show up with the money for ten days and Sam had already sold the dog to someone else. The judge ruled in favor of Sam. The statements made to the jury by Linda and Sam immediately after the jury was chosen were

 

Revenge. Jeans action against Greg for the tire is called a

 

What do trial court juries determine?

 

Which of the following would allow an administrative agency to investigate potential rules are statutory violations?

 

A binding decision issued by an administrative law judge (ALJ) is known as a

 

What do the initials ALJ represent in the context of administrative agencies and administrative law?

 

What types of statements or notices are general in nature and give guidelines on ways in which an agency intends to proceed with rulemaking or enforcement activities?

 

Administrative law consists of both substantive and blank rules

 

How is an administrative body usually defined?

 

Which type of agency is generally defined as anybody created by the legislative branch to carry out specific duties?

 

What are the two most common types of rulemaking performed by administrative agencies?

 

What is the name of the statute that specifies the name, functions and specific powers of an administrative agency?

 

Another name for notice and comment rulemaking is known as blank rulemaking

 

A blank rule is a rule that does not create any new rights or duties what is merely a detailed statement of an administrative agencies interpretation of an existing law.

 

Which of the following is incorrect regarding the freedom of information act (FOIA)?

 

When an agency is referred to as a "captured" agency, there is the belief that agency officials are unduly influenced by

 

What does the term FOIA mean?

 

What rules are designed to explain in agencies views concerning statutes for which the agency has responsibility?

 

Tohima was implicated in a potential scheme to sell false securities. When it came time for Tohima to testify the agency issued a _____ which ordered Tohima to appear and bring with him specific documents.

 

In order to be upheld in court, and agencies fact-finding must be supported by which of the following?

 

According to the United Nations in as discussed in the textbook, which of the following is true regarding e-government, meaning the delivery of government services through digital information technologies including the Internet?

 

What usually happens to decisions of administrative law judge's that are appealed to the federal court system?

 

New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed except for cause. Additionally, no more than a majority of the commissioners may be from the same political party. Her agency is getting ready to issue rules. The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules. Debby's boss, Blaire, gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process. Blaire also told her that at this point she was not very interested in hybrid rule making.

 

I have to publication, what would be the next step in obtaining enactment of the proposed rules?

 

New agency. Which of the following is the most likely type of rulemaking in which the accounting commission is involved?

 

DUI Charge. Monique was licensed to train massage therapists. A new federal agency, the Aesthetic and Massage Commission, took very seriously its role of enforcing the statute enabling the Commission to do its work and providing that licensed massage therapists must refrain from "any act or conduct indicating bad faith, incompetence, dishonesty, or improper dealing." Monique, while driving home late one night from a party, was stopped by the police and arrested for driving under the influence of alcohol. She pled guilty to the offense. When the Aesthetic and Massage Commission discovered the offense, the officials of the agency met, decided that Monique might drink on the job, and that she might pose a danger to students. Accordingly, her license to teach massage therapy was revoked. Monique threatened to sue to retain her license and was told by the agency head that she had no right to appeal to court because of the nature of the Aesthetic and Massage Commission and that in any event, action by an agency is always upheld.

 

Which of the following is true regarding the statement of the agency that Monique had no right to appeal to court?

 

Which of the following is false regarding federal independent agencies?

 

DUI charge. Which of the following would have reached the decision at her hearing before the administrative agency?

 

Four Paws Protection. The United States Congress created a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was enacted naming the agency the "Animal Protection Commission" and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate.

 

Which of the following is true regarding the claim of fluffy shampoo that criminal penalties may not result from violation of agency rules?

 

Which constitutional amendment prohibits cruel and unusual punishment?

 

Which constitutional amendment protects freedom of religion?

 

Do United States Congress passed a law that the president does not support. The president can use his or her blank power to overrule the law passed.

 

Which clause of the United States Constitution provides that the constitution, laws and treaties of the US constitute the supreme law of the land?

 

Which constitutional amendment protects against double jeopardy?

 

Which constitutional amendment protect citizens from unreasonable searches and seizures and requires a finding of probable cause to issue a warrant?

 

Pursuing to blank, the United States Supreme Court can hear a lower court case and determine the constitutionality of the lower courts ruling.

 

In it's 1978 case first national Bank of Boston V. Bellotti, how did the United States Supreme Court rule regarding political speech?

 

Which of the following is relevant in determining whether a particular government statute violates the establishment clause of the United States Constitution?

 

The supremacy clause is located in article blank of the United states constitution

 

Which constitutional amendment extends most of the provisions in the Bill of Rights to the states, prohibiting state interference and citizens exercise of their rights?

 

In overturning the lower courts decision, the court of appeals in the bad frog brewery V. New York liquor authority case determined that

 

Which of the following was the result in the Black Star Farms, LLC et al. v. Jerry Olive, Arizona department of liquor license and control et al. case referenced in the textbook, in which it was alleged that an Arizona law limiting direct sales of wine by producers was unconstitutional on the basis that it discriminated against out-of-state wineries?

 

Chief Justice John Marshall wrote one of the most important opinions in United States Supreme Court history that established judicial review. What was the name of that case?

 

The common law process of blank allows quarts to review legislative and executive actions to determine whether they are constitutional.

 

Which of the following is true regarding the protection of "fighting words" under the first amendment of United States Constitution?

 

Because the federal government has only those powers granted to it by the United States Constitution, federal legislation that affects business must be based on what?

 

Junk food. Mary do good, a member of the school board in ABC County, is a part of the amount of junk food in the schools. She convinced is the state legislator to pass an ordinance that no stores may sell an unhealthy junk food within 500 feet of any school or day care center, arguing that such a regulation is about exercise of the state police power to protect it's citizens. Convenience stores balk at the regulation and challenge it in court. What do quarts generally presume regarding laws passed in accordance with states police power?

 

What is the fifth amendment protection against self incrimination mean?

 

Suppose Washington state passes a lot prohibiting the importation of out of state apples in order to help in state growers.. Which of the following is the best constitutional argument for the out-of-state growers who wish to challenge the new law?

 

Junk food. What concept is addressed regarding the reference to "police power?"

 

Which of the following is not an example of a state police powers?

 

Insurance. Susan, a trained nurse, was recently elected to the U.S. Senate. Susan is very concerned about the lack of insurance for many children and also working adults who cannot afford the insurance premiums. She proposes legislation that states are taxed sufficiently to provide health insurance coverage to children and that federal funds for state highways are denied to any state that does not also provide insurance coverage for uninsured adults. She also proposed that states with citizens earning higher than average incomes be taxed at a higher rate than other states. Bill, a senator, tells Susan that Congress lacks the authority to tax in this manner because the U.S. Constitution expressly reserves that right to the states. Ellen, another senator, tells Susan that Congress has no authority to link highway funds or any other funds with social welfare objectives. Sam, an administrative assistant, tells Susan that Congress is prohibited from taxing residents of one state at a higher rate than citizens of another state. Which of the following is true regarding Sam's statement?

 

Scruffy. Sam is engaged in the criminal activity of growing marijuana in his home. A couple of police officers, while randomly passing through the neighborhood, saw Sam go to the mailbox. They thought that he looked a little scruffy, and they were concerned that they had not made a sufficient number of arrests in the past month. They decided to "check out" Sam. Therefore, they immediately broke down Sam's door, searched his home, and arrested him. The police officer in charge told Sam that because marijuana was involved, he lost his rights against self-incrimination and that he might as well confess. Sam proceeded to confess to growing marijuana and a number of other crimes. The judge was so angry with Sam that he threw him in jail for two months without any kind of hearing.

 

Sam's lawyer, who just graduated from law school, it's not sure if the police acted legal in Sam's case by breaking down the door. Which of the following is true on that issue?

 

Under the blank exception to the search warrant requirement, if an industry has a long history of pervasive regulation, a warrantless searches not unreasonable.

 

A blank is a computer program that rearranges, damages, destroys, replace his computer data.

 

What is the burden of proof to establish in a criminal case?

 

A blank is a hacker who's intention is the exploitation of a target computer or Netwerk to create a serious impact, such as the crippling of a communications network

 

A person who illegally access is renters another persons or companies computer system to obtain information or to steal money is known as a

 

What is the purpose of the foreign corrupt practices act?

 

Courts have defined a pattern of racketeering under the racketeer influenced and corrupt organizations (RICO) act as more than blank actions

 

In United States V. Park, what was the United States Supreme Court ruling regarding the criminal liability of the defendant Park, corporate president of the national food chain corporation?

 

Douglas committed a crime for which he was found guilty and will serve a 10 year sentence in the penitentiary. What type of crime was this

 

Jolene, a sales representative, was worried about her work related productivity so she made a series of entries in her records to show that she had more sales and she actually did. This is known as

 

Which of the following is incorrect regarding the computer fraud and abuse act?

 

Simon, a police officer, is called to the scene of an accident. Simon witnesses one of the people in the accident trying to stuff a white powdery substance down his pants. When Simon approaches the individual, the individual fleas. Simon grabs a person in place of them under arrest. This arrest will be upheld because Simon had blank to arrest the individual

 

Nicoli is the trustee Of his nephew Adams trust fun, which was left to Adam after his parents were killed in an automobile accident. Nicoli found himself in financial hardship, so he took some of atoms trust fund money and use it to pay his own personal bills this is considered

 

Which of the following is incorrect regarding the racketeer influenced and corrupt organizations act?

 

Constance and Patricia are arrested for soliciting sexual favors on a street corner, which is against the law in the state. After being arrested and read the Miranda rights, Constance and Patricia will be taken to the police station for

 

If a grand jury issues an indictment against the defendant, the defendant than appears in court to answer the indictment in a proceeding called the

 

Williams investment fund solicited clients for high profit returns from a fictitious new Internet business. Williams employees paid off the early investors from new funds raised to cover the cost. This type of fraudulent crime is known as

 

Due to the high cost of college, Raul and Felipe decided to counterfeit $100 bills to help pay for tuition. This is known as

 

If a person commits a minor offense such as violating a building code, this is known as a

 

Criminal proceedings generally begin when an individual is

 

Ordinarily, law-enforcement officials must obtain an arrest warrant that demonstrates probable cars or that a suspect committed or is about to commit a crime. Who issues the arrest warrant?

 

Ed goes door-to-door selling magazine subscriptions. Ed knows that he is simply taking money for subscriptions and has absolutely no intention of ever arranging for the provision of magazines. Which of the following offenses, if any, has he committed?

 

A hacker who tries to shut down the New York Stock Exchange would be charged with

 

If a business where to sell cigarettes or alcohol to a minor, this would be an example of

 

Strict liability is

 

Cosmetic Profits. Sally is the executive vice president of Big Name Cosmetics Company. Through important and material, nonpublic information, she learns that the company is soon going to purchase a smaller chain of stores. It is expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally immediately buys a number of shares of her company's stock. She also tells her friend Alice about the expected purchase of stores. Alice wanted to purchase stock in the company but lacked the funds with which to do so. Although she did not have the funds in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B and then proceed to write a check on Bank B to cover the purchase of the stock. She planned to write a check on Bank B and deposit with bank A just before the check was presented to bank A and an attempt to create an artificial balance. Of what offense, if any, is Alice guilty of by her method of payment?

 

Which of the following occurs when a plaintiff expressly agrees, usually in a written contract, to assume the rest posed by the defendants behavior?

 

What damages are small amount of money given to recognize that a defendant did indeed commit a tort in a case in which there was no compensable damages suffered by the plaintiff?

 

Another name for exemplary damages is blank damages

 

What damages are given to punish the defendant and are generally only given when the defendants contact is extremely outrageous?

 

For the imposition of strict liability, which of the following is a condition required of an activity?

 

What is the Latin term for "negligence in or of itself?"

 

Which of the following is true regarding the comparative negligence doctrine?

 

Which of the following is sometimes referred to as "but-for" causation?

 

Which of the following is incorrect regarding the doctrine of res Ipsa Loquitur?

 

Which of the following is not an intentional tort against economic interests?

 

Vivian sells phony stock certificates to Michael to make a quick buck and pay off her loan shark. When Vivian's scheme is revealed and Michael sues her, the court awards Michael $10,000 for the money he lost and an additional $5000 to punish Vivian for her wrong doing. What type of damages are the $5000?

 

The blank standard is a measurement of the way members of society expect an individual to act in a given situation.

 

Which of the following is true regarding the law of negligence in Germany?

 

Which of the following refers to the extent to which, as a matter of policy, a defendant may be held liable for the consequences of his actions?

 

Which of the following is correct regarding the intent needed for an intentional tort?

 

Which of the following doctrines requires the court to determine the percentage of fault of the defendant and then hold the defendant liable for that percentage of the plaintiffs damages, with no requirement that the defendant be more than 50 percent at fault?

 

This type of tort protects an individual right to keep certain things out of public view even if they are true.

 

If the defendant is careless such that someone else suffers a detriment, this type of tort is known as

 

Which of the following types of damages is intended to reimburse a plaintiff for his or her losses?

 

In terms of strict liability theory, which of the following is an example of an inherently dangerous activity?

 

Hair Stylist Woes. Maryann went to see her hair stylist, Candy. Maryann, who had black, curly hair, requested straight, blond hair. Candy told her that she could make that change, but there would be significant upkeep involved. Candy made the change, but Maryann did not do the upkeep required. She also falsely claimed that Candy did not do what Maryann asked her to do, that Candy lied to her, and that Candy was professionally incompetent. Maryann made the statements to friends of hers. She also wrote an editorial in her college newspaper to the effect that Candy's shop should be avoided at all costs because Candy was incompetent. In fact, Candy was a good hair stylist and enjoyed a good reputation up until the time that Maryann started her criticism. Candy threatened to sue Maryann for defamation, but Maryann told Candy that Candy could not prevail because Candy could not prove loss of income. Candy had to admit that while her reputation had been damaged somewhat, the damage was primarily among the college population. Her income kept increasing from other segments of the community, and she had suffered no net loss. Statements made by Maryann to her friends that were defamatory of Candy are what type of defamation?

 

Tina negligently hits Susie with her car. Susie, rendered unconscious from the impact, is lying on the street. Which of the following is correct regarding whether Tina has a legal duty to come to the aid of Susie after the accident?

 

Hair Stylist Woes. Maryann went to see her hair stylist, Candy. Maryann, who had black, curly hair, requested straight, blond hair. Candy told her that she could make that change, but there would be significant upkeep involved. Candy made the change, but Maryann did not do the upkeep required. She also falsely claimed that Candy did not do what Maryann asked her to do, that Candy lied to her, and that Candy was professionally incompetent. Maryann made the statements to friends of hers. She also wrote an editorial in her college newspaper to the effect that Candy's shop should be avoided at all costs because Candy was incompetent. In fact, Candy was a good hair stylist and enjoyed a good reputation up until the time that Maryann started her criticism. Candy threatened to sue Maryann for defamation, but Maryann told Candy that Candy could not prevail because Candy could not prove loss of income. Candy had to admit that while her reputation had been damaged somewhat, the damage was primarily among the college population. Her income kept increasing from other segments of the community, and she had suffered no net loss.

 

The defamation printed in the school newspaper would be which of the following?

 

Well crossing the street, Bobby does not go to a crosswalk but proceeds to illegally cross the street without even checking to see if any vehicles are coming. Steve sees Bobby in the street notices that he is not in the sidewalk and proceeds to hit Bobby with his vehicle because he believes that Bobby should be taught a lesson about how to cross the street. Steve does slow down somewhat and only causes Bobby some significant bruising, but Bobby is angry and sues. Which of the following is most likely to happen in a contributory negligence jurisdiction?

 

Cat Chaser. Annette, who is angry because her neighbor, William, allows his dog to chase her cat, decides that she wants to get even. She moves a number of farm animals into her backyard and begins playing music at all hours of the night. She also steals a nice lawn chair off William's deck. She intends to keep the chair. Annette further took a rake off William's deck that she plans to return after she finishes raking her leaves. William did not give her permission to take the rake. William is unhappy about the whole situation and wants to sue.

 

Which of the following would be the most appropriate cause of action against Annette regarding the music?

 

Mechelle has a life estate and a property in rural mean. Mechelle has allowed people to camp and park in the back woods of the property, leaving piles of trash everywhere and thereby diminishing the value of the property. Mechelle is allowing what to happen?

 

If a new federal governmental agency establishes a website, what will the domain name end with?

 

What is a distinctive mark, Word, design, picture, or arrangement that is used by a producer in conjunction with a product and tends to cause consumers to identify the product with a producer?

 

The shape and design of a product such as Apple's iPhone is an example of which of the following?

 

Which of the following companies is responsible for registering domain names for Internet use?

 

To be protected in blank use, a trademark must be registered with the United States patent office under the Lanham act of 1947.

 

A blank is a persons present right to property ownership in possession in the future.

 

What type of interest is a licensee hold?

 

Healthcare forum, ink. Has its logo trademarked. When was the trademark registration be renewed?

 

To properly registered trademark with the United States patent and trademark office, one must

 

Bank accounts, socks, and insurance policies are examples of which of the following types of property?

 

Which of the following are states that do not include the right to possess the property?

 

Which of the following is incorrect regarding trade secret protection?

 

Brynn has a life estate in her grandmothers farmhouse. When Brynn passes away, what will happen to the property?

 

Most websites have blank domains

 

If a trademark is used intrastate, the trademark is protected by

 

Which of the following is the legal process by which a transfer of property is made by a governmental entity against the protest of the property owner pursuant to the takings clause of the fifth amendment to the United States Constitution?

 

To stop a competitor from using a trade secret, the plaintiff must prove that a trade secret actually existed, the defendant acquired the trade secret unlawfully, and the

 

Under blank, I trade secret is protected from unlawful appropriation by competitors as long as it is kept secret in consist of elements not generally known in the trade.

 

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred, cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like his cutting through her yard when she is sunning.

 

What is the type of right at Freddy's exercising by cutting through the yard called?

 

Scuba Diving. Marcy invented a new type of mask for scuba divers that was not subject to fogging. She agrees to allow Jenny to manufacture and sell the mask. She receives a sum of money for every mask that Jenny sells. Similarly, Marcy entered into an agreement with Frank to allow him to sell the masks, but only if he also purchased non-patented diving suits from Marcy. All parties proceeded to do very well with their sales.

 

Marcy's agreement with Jennie allowing Jennie to sell the mask is referred to as which of the following?

 

Lottery Winnings. Frank, a hypochondriac who was also very compulsive, was having minor surgery to repair a bone spur on his foot. He had just purchased a lottery ticket for a chance at the grand prize of $30,000,000. Frank's girlfriend, Bubbles, went with him to the hospital. While in the waiting room, Frank said to her, "Bubbles, I may not make it out of this bone spur surgery. Take my lottery ticket. If I don't make it, I hope you win and live it up, but please don't get another boyfriend." Bubbles replied, "I could never be happy without you." A nurse saw and heard the whole exchange. Frank came out of the surgery just fine but with a sore foot. While he was recuperating that evening, Bubbles watched the lottery drawing and discovered that Frank's ticket was indeed the winning ticket. She immediately moved out and collected the winnings. Frank saw her on television with her new boyfriend, George. She appeared to be very happy. He checked the numbers and discovered that she won with his ticket. Frank says that the lottery money is his.

 

Which of the following is true regarding Frank statement at the hospital regarding bubbles taking the ticket?

 

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred, cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like his cutting through her yard when she is sunning.

 

What type of estate did Sally purchase from Bob?

 

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred, cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like his cutting through her yard when she is sunning.

 

What is the best advice you can give Sally regarding getting rid of Fred?

 

Wedding Photos. Bobby took a number of wedding photos at Jill's wedding. He was paid as the photographer. On all of the photographs, he appropriately noted in the bottom right corner the necessary information showing that he was claiming copyright protection. Jill came to see Bobby three years after the initial photographs were taken and requested that he grant her permission to make as many copies as she wanted at the local photo shop from the pictures that she initially purchased. The photo shop had refused to reproduce the photographs without his permission. When he refused to give her permission to do so, Jill started a heated argument. She told Bobby that photographs are not entitled to copyright protection. She also told him that even if he was correct that there was some copyright protection, she was engaged in fair use, and in any event, damages for copyright infringement are unavailable.

 

Which of the following is true regarding Jills claim that she was engaged in fair use?

 

Georgia decides to sell her engagement ring after Anthony breaks off the engagement and put the ring up for auction. If she states nothing to the contrary in the terms of the auction, the auction is presumed to be

 

A blank is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents.

 

Thomas offers to sell his water skis to Lynord. Thomas is the

 

Ike and Jeff agree that I will tutor Jeff in math for $25 an hour. Eight tutors Jeff for an hour and Jeff pays like $25. This is a blank contract

 

Which of the following provides an acceptance is valid when it is placed in the mailbox?

 

Which of the following provides that a revocation is effective only when received by the offeree?

 

Which of the following is true regarding quasi-contracts?

 

When acceptances examined under the common law, how do the basic requirements for a valid acceptance compared to those for valid offer?

 

If the subject matter of an offer is destroyed, the offer

 

Which of the following is incorrect regarding how the Japanese tend to view contacts?

 

Which of the following is the first element of a contract?

 

Today's law of contracts actually originated in judicial decisions from

 

Which of the following is true with no means of communicating an acceptance is specified in an offer?

 

Which of the following are the two primary sources of contract law?

 

Which type of contract allows one or both of the parties the ability to either withdraw from the contract or to enforce the contract?

 

Helen find a piece of land that she is interested in purchasing. She asked Robert, the landowner, to hold the land for her while she makes a decision. Robert says that for $1000 he will hold the land for her while she decides, and Helen agrees. This is an example of an

 

Without a time condition in an offer, the offer will expire after _____.

 

Which of the following is recognized by the court to prevent one party from being unjustly and reached at the expense of another party?

 

Which of the following refers to the right of an offer to revoke his offer, even if the offer says he will hold the offer open for a stated period of time?

 

What is the likely result in the lawsuit brought by Walter against Zack?

 

Of the following, which is not a formal contract according to the restatement (second) of contracts?

 

An example of a blank is a bond used as a bail in a criminal case

 

There are generally to defenses to the enforcement of a contract. What are they?

 

Refusal to Pay. Business law professor Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform.

 

Which of the following is an appropriate characterization of the agreement between Debby and Max?

 

Refusal to Pay. Business law professor Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform.

 

Which of the following is true regarding maxes statement that he did not have to pay the emergency room charges (assuming that prior to and during treatment, Max had no discussions with emergency room personnel regarding payment for services rendered)?

 

A general rule in contract law is that for a promise to be enforced by a court, there must be

 

Promissory estoppel is the legal enforcement of an otherwise unenforceable contract

 

What does a person receive in return for performing a contract obligation?

 

Suppose that Eduardo agrees to purchase caleah's car for $10,000. Eduardo's payment of $10,000 is the blank caleah will receive for her car.

 

Marcy's mom. Marcy's mother, Sue, did not want her to date until she was older.

 

What type of alleged that was involved in the dispute between Marcy and Sue involving the school loans, additional funds, car, and party?

 

Yolanda agrees to bathe and groom Wendy's dog, Fluffy Puff, for $30. Yolanda agreed to the price before seeing Fluffy Puff who is a chubby dog with lots of hair. Yolanda tells Wendy that if she is going to groom Fluffy Puff, the price will be $40. Wendy reluctantly agrees but tells Yolanda that she should not have been surprised that a dog named Fluffy Puff would have lots of hair. Yolanda bathes and grooms Fluffy Puff, but Wendy will only pay $30. Which of the following is correct regarding Yolanda's entitlement to the extra $10?

 

Sally goes to have her hair trimmed and agrees to pay $40 to the stylist. While there, Sally decides that she would also like highlights. The stylist informed her that highlights will cost an additional $30. Sally agrees to the price, I guess the highlights, but refuses to pay the extra amount. What is the likely result in a dispute between Sally and the stylist and why?

 

Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses.

 

Which of the following is true regarding Don statement that her response was sufficient consideration to bind Richard to an option contract and that he should have awaited her final decision?

 

Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money.

 

In a lawsuit between the bank and Ursula regarding the reward funds, who is likely to prevail and why?

 

Suppose that Dakiyah promises to pay Fernando $450 for his television. Fernando promises to sell Dakiyah his television for $450. The parties have not documented the transaction in writing. Which of the following is true regarding this arrangement?

 

For a court to enforce a promise,

 

How can party who are in a dispute over and unliquidated debt settle for less than the full amount?

 

Barbara and Julie's catering are in a dispute about a catering bill. Barbara believe the amount should only be $750 but Julie's catering charged her $900. This is an example of

 

John offer Shaun his new mountain bike for $500. In this situation

 

Felipe contracts with Minnetonka dozers, LLC (Minnetonka) to raise his old building for $12,000. Once Minnetonka begins the work, its employees discover asbestos in the building. Asbestos is hazardous and difficult to remove for environmental and safety reasons, and this will result in an additional $15,000 labor expense. Minnetonka refuses to complete the job until Felipe agrees to pay the additional $15,000. Felipe agrees. Is the contract modification enforceable?

 

Which of the following is a valid uniform commercial code rule regarding tracks marked "paid-in-full"?

 

I promise to do some thing that you are already obligated to do is

 

When an accord and satisfaction is at issue, the blank is the debtors payment of the reduced amount.

 

In the Smith V.Riley case referenced in the textbook, how did the Tennessee Court of Appeals rule regarding whether a purchase for "the sum of one dollar and other good and valuable consideration" with sufficient consideration to support an agreement?

 

Mike promises Leighann that if she will come to the high school prom with him, he will consider paying for her dress and shoes. This is an example of

 

Which of the following is true regarding a valid accord and satisfaction?

 

In order to avoid paying his creditors, Isaac sold his 100-acre farm to his best friend Zack for substantially less than its fair market value. Upon the creditors request, will court set aside this transaction?

 

Which of the following is a promise to refrain from doing some thing you are legally entitled to do?

 

A new agreement to pay less than the creditor claims is owed is called an

 

Tiffany promise to sell Lillian her diamond necklace and the Lillian promise to pay $2000. What type of contract is this

 

If a potential contracting party is concerned with another persons mental ability to contract, she's concerned with the persons

 

An Blank contract is one requiring complete performance by both parties, even if it appears as if the contract contains multiple parts.

 

George and Mitchell are 17 years old. Their parents gave them the right Mary. In most states, this means that Georgia and Mitchell can contract because they became

 

In every state, people who work for certain professions must obtain a blank to practice their craft

 

How many states engage in at least some regulation of gambling?

 

Badger Bank and trust is a Community Bank in Oshkosh, Wisconsin. Badger loaned $5000 to Plessy and charged him an interest rate that was 5% higher than the statutoriali allowed maximum. This loan would be considered

 

Before modern day common law change, which people besides minors and insane persons historically were unable to contract?

 

Which of the following is true of a contract is disaffirm down the basis of intoxication?

 

Belinda has been adjudicated insane by a court. If she makes a contract, the contract would be

 

If a contract is blank it is unenforceable

 

If a contract is deemed unenforceable what remedy is available to the parties?

 

Guardians may be appointed for which of the following individuals?

 

Hillary and Dillon enter into a contract where by Hilary, 17 years old, purchases a computer and printer from Dillon. Dillon agrees to finance the contract and I was Hillary to pay $100 per month. When Hillary turns 18 years old, what must you do to ratify the contract?

 

What was the result in Riley V. Iron gate self storage, the case in which Larry Riley rented a self storage unit from iron gate with an agreement limiting the value of stored contents to $5000 and the corresponding liability limit of $5000?

 

Which of the following is true regarding the ability of person suffering from a mental illness to enter into a binding contract?

 

What is the purpose of the minors right to disaffirm contracts?

 

If a minor chooses to disaffirm a contract, what is the obligation placed on the minor?

 

Jonathan's plumbing, LLC uses only unlicensed plumbers in its business operations. If a contract is entered into with Jonathan's, the agreement would likely be deemed

 

A contract with a person who has some sort of mental defect that prevent that person for being able to legally contract means that he lacks

 

Which of the following is incorrect regarding contracts for necessaries entered into by miners?

 

Cheap Motorcycle. Tony, a hateful, disgruntled business law professor, notices that Peter, a student who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass, and in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs.

 

Which of the following is true if Peter seeks to rescind the contractual agreement to sell the motorcycle?

 

Cheap Motorcycle. Tony, a hateful, disgruntled business law professor, notices that Peter, a student who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass, and in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs.

 

Which of the following is an appropriate term for the contract drawn up by Tony?

 

Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left, she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in several new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liability before she did anything with Treena's hair. Treena, however, sued anyway.

 

Which of the following is true regarding Janice's claim that no judge in the country would enforce such an agreement

 

Irresponsible Teen. At age 17, in a state in which the age of majority is 18, Sally purchased a prom dress from Formal Stuff. She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund. The dress had clearly been worn and had a purple stain that Sally claimed was from grape juice. Additionally, a few days before she turned 18, Sally purchased a used car from Dings and Dents used cars. She had a deal whereby she paid $100 per month on the car. She drove the car and made payments for fourteen months after she turned 18. Then, she returned the car to Dings and Dents and told them that she wanted all her money back. Dings and Dents claimed the car was a necessity. Sally and her parents claimed that the parents were ready and willing to provide a car to Sally and that she only purchased the car from Dings and Dents because she liked that particular style and color. When purchases of the dress and car were made, the sellers knew that Sally was under the age of 18.

 

Which of the following is true regarding Sally's attempt to return the damaged dress?

 

Cheap Motorcycle. Tony, a hateful, disgruntled business law professor, notices that Peter, a student who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass, and in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs. Which of the following is true regarding the yard mowing agreement?

 

George contracts with Leeann to buy a condo #229 from her. Leeann writes the entire contract up including the description and #229 but George really meant to buy #230. What type of mistake is this?

 

Contracts that are blank maybe rescinded or canceled.

 

Which of the following is a false statement about a material fact that the person who started the statement believe to be true?

 

Ned and Ira negotiate the sale of a certain set of golf clubs. The to believe that the golf clubs were used by a famous golfer, and then sells them to Ira for a substantial price. I will later learned that the golf clubs are not used by the golfer, significantly reducing their value. What type of mistake is this?

 

For several months, Franklin has been his grandmothers sole caregiver. He takes her to the store, her doctor, and any other place she wants or needs to go. When it is time to make her will, Franklin constantly reminds his grandmother that he is the only one who cares for her and that he can stop taking her places if she does not make him the sole beneficiary of the will. This is an example of

 

A blank is an erroneous belief about the facts of a contract at the time the contract is concluded

 

The distinction between a blank and blank mistake is significant in determining which contracts are voidable

 

Which of the following occurs when a party threatens to file a legitimate (in other words, a non-frivolous) civil lawsuit unless another party gives consent to the terms of a contract?

 

The peerless ship case referenced in the textbook is a classic example of a blank mistake

 

Any fraud on the part of a party to a contract provides a basis for

 

As discussed in the textbook, which of the following is true in China when an outsider allegedly commits or actually commits fraud in the course of business dealings with Chinese firms?

 

Which of the following is not one of the major obstacles to genuine assent?

 

Which of the following is not an element of fraudulent misrepresentation?

 

In general, a blank mistake does not generally avoid a contract

 

Anna's attorney Sergio is discussing with Anna her willingness to sell property to his partner. Sergio reminds Anna that he has never led her estray in all the years he has helped her. He continues to persuade Anna that it is a great deal to sell her property to his partner. This is a form of

 

When Gloria sells her house, she does not inform the buyer that the basement leaks during times of heavy rain. This is considered blank, which is the equivalent of an actual assertion.

 

What was the result in Scott the mid-Carolina homes, Inc., The case referenced in the textbook in which the defendant attempted to rescind a contract to sell a mobile home because it's sales person was acting under a mistake of fact when he gave the plaintiff the sales price?

 

What is the legal term that refers to intent or knowledge of wrongdoing?

 

For mutual mistake to interfere with legal consent, it must involve a blank affect on the agreement

 

Scheming Friends. Willy very much wants to rent a basement apartment in Weaver's home. Willy threatens to tell all Weaver's friends that he and Weaver had been arrested for illegally smoking marijuana unless Weaver rents the apartment to him for $100 per month. Weaver reluctantly agrees to rent the apartment to Willy for that amount. Willy also wants to buy Weaver's car. Weaver runs back the odometer on the car before Willy test-drives it. Willy is impressed by the low mileage and agrees to buy the car. Finally, Weaver offers to sell Willy a ring for Willy's fiancée. Weaver tells Willy that the ring is a diamond and believes that to be true. After the deal is made, however, a jeweler friend of Weaver's informs him that the ring is a fake. When Willy shows up with the money, Weaver says nothing. He just hands Willy the ring and takes the money. Later, Willy finds out that the odometer was run backwards from another friend to whom Weaver confided. Willy also finds out from his girlfriend that the ring is a fake.

 

Which of the following would be the most likely result if Weaver attempts to rescind the agreement to rent the apartment?

 

Shady lawyer. Brice had a number of ethical issues come up in law school involving alleged cheating but managed to graduate because nothing was ever proven. Upon obtaining his law license, Brice enjoyed living "on the edge" and engaged in tactics that were at least questionable. One of his clients was an older gentleman, Sam, with significant assets and significant legal issues involving a messy divorce stemming from his involvement with a local dog groomer, Susie. Brice told Sam that he felt certain that he could arrange matters so that Sam could live happily in the Caribbean with Susie but that, in addition to paying a hefty legal fee, Sam would need to name Brice as a significant beneficiary in his will and give Brice power of attorney over his assets. Sam agreed to do so. He gave Brice power of attorney and changed his will to reflect that upon his death, Brice would receive half his estate. The other half went to Susie. Sam also paid the hefty legal fee Brice demanded. At that point, Brice agreed to proceed with negotiations in the divorce. Shortly after the divorce, Sam had an unexpected heart attack and died immediately. Susie, the executor of the will, told Brice that she was reporting him to the state bar association and that he was not entitled to any assets from the estate. Brice told Susie that he knew that Susie had failed to pay income tax for all her dog grooming and that he was reporting her unless she kept her mouth shut and consented to the terms of the contract. Brice also said that in return for keeping his mouth shut, he wanted additional sums purportedly for his work on Sam's divorce. Which of the following is true regarding Brice's dealing with Sam?

 

Pet Pig Farm. Marcy wanted to buy Lucy's land and use it to breed small pigs to be kept as pets. Marcy told Lucy that having water on the property was very important. Lucy assured her that a spring ran through one corner of the property. Therefore, Marcy agreed to buy the farm. Although she did not ask Lucy anything about it, Marcy, who loved pigs, assumed that the neighbors would be pleased with the pigs being in the area. In a separate contract, Lucy also agreed to sell Marcy a used truck for $5,000. After the contract for the land sale was entered into, it was discovered that actually the spring did not run through the corner of Lucy's property. The area in which the spring ran actually belonged to a neighbor. Additionally, when Lucy brought Marcy the used truck, Marcy said, "That's not the truck!" It was discovered that Lucy, who had two trucks, thought that Marcy had bought the older truck when Marcy thought she had purchased the newer truck. Marcy was also surprised when she received a petition signed by all surrounding landowners objecting to the presence of the pigs and threatening to sue Marcy for nuisance.

 

Which of the following is the most likely result in the dispute between Marcy and Lucy regarding which used truck was sold assuming that both Marcy and Lucy were each innocently mistaken and did not intent to defraud the other?

 

Maurice offered to sell his used computer to Mike for $300, and Mike accepted. Both Maurice and Mike believed that the computer was one year old. When the receipt was found, however, it was discovered that the computer was actually 18 months old. Mike wants out of the agreement based on mutual mistake. Which of the following is Maurice's best argument to enforce the contract?

 

Shady lawyer. Brice had a number of ethical issues come up in law school involving alleged cheating but managed to graduate because nothing was ever proven. Upon obtaining his law license, Brice enjoyed living "on the edge" and engaged in tactics that were at least questionable. One of his clients was an older gentleman, Sam, with significant assets and significant legal issues involving a messy divorce stemming from his involvement with a local dog groomer, Susie. Brice told Sam that he felt certain that he could arrange matters so that Sam could live happily in the Caribbean with Susie but that, in addition to paying a hefty legal fee, Sam would need to name Brice as a significant beneficiary in his will and give Brice power of attorney over his assets. Sam agreed to do so. He gave Brice power of attorney and changed his will to reflect that upon his death, Brice would receive half his estate. The other half went to Susie. Sam also paid the hefty legal fee Brice demanded. At that point, Brice agreed to proceed with negotiations in the divorce. Shortly after the divorce, Sam had an unexpected heart attack and died immediately. Susie, the executor of the will, told Brice that she was reporting him to the state bar association and that he was not entitled to any assets from the estate. Brice told Susie that he knew that Susie had failed to pay income tax for all her dog grooming and that he was reporting her unless she kept her mouth shut and consented to the terms of the contract. Brice also said that in return for keeping his mouth shut, he wanted additional sums purportedly for his work on Sam's divorce. Assuming that Sam had paid all amounts validly due from the divorce proceeding, which of the following is true regarding Brice's attempt to obtain additional fees?

 

George offers to sell Penelope a ring that George found in his yard. He and Penelope look at the ring and decide that they are not sure what it is, probably just a shiny stone. Penelope pays George $10 for the ring. The ring turns out to be a diamond worth much more than $10. George wants the ring back, and Penelope refuses. What is the most likely result?

 

Under the blank rule, a contract that would normally fall under the statute of frauds I need a writing is negotiated by the principal must be in writing even if negotiated by an agent.

 

Lawrence v. Fox, a case referenced in the textbook, was one of the earliest cases to recognize the rights of _____.

 

If an intended beneficiary wants to enforce his or her rights, they cannot do so until when?

 

Which of the following does the statute of frauds not impose on parties when dealing with a contract?

 

The _____ in a third-party beneficiary contract is the party to the contract who owes something to the promisor in exchange for the promise made to the third-party beneficiary.

 

Which of the following is a term for contracts within the statute of frauds involving promises to pay the debt of another if the other party fails to pay?

 

Which of the following is true regarding the rights of an intended beneficiary?

 

Which of the following is incorrect regarding the statute of frauds and contracts whose terms prevent possible performance within one year?

 

When may a court rule that parol evidence might be admissible to further the court's understanding of an agreement?

 

Which of the following is incorrect regarding the parol evidence rule?

 

Which of the following are considered an interest in land within the statute of frauds?

 

Which of the following is true regarding oral assignments?

 

Which of the following is true regarding a signature on a document falling within the statute of frauds?

 

Which of the following is incorrect regarding the rights of assignees and assignors?

 

Third-party rights in a life insurance policy do not vest until the _____.

 

Which of the following is determinative of the effectiveness of an anti-assignment clause?

 

Which of the following is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights?

 

Hans and Gretchen enter into a life insurance contract that names their son Erik as the beneficiary. What type of beneficiary is Erik?

 

Nina watches as the city she lives in starts to pave the street in front of her house. Unfortunately, the city and the paving company become entangled in a contract dispute. Nina knows that the price of her house will increase once the street is paved. In this scenario, Nina would be a(n) _____ to the contract.

 

Not So Rich Uncle. Bruce is attempting to convince Sally to marry him. He promises her that if she will marry him, he will buy a new Mercedes automobile for her within six months of the marriage and take her on a world tour within a year of the marriage date. Sally reluctantly agrees, and they sign an agreement by which Bruce agrees to provide the Mercedes and world tour. Bruce and Sally marry on January 1. Unexpectedly, on March 1, Bruce's supposedly rich uncle, Frank, dies. Frank has no living relatives other than Bruce, and Frank's will leaves everything to Bruce who is also appointed executor. In attempting to settle the estate, Bruce agrees orally to pay out of his own pocket debts of Frank totaling $10,000. Sally is concerned about Bruce's doing so. Bruce tells her not to worry because he will get all the money back when the estate settles. Bruce admits to a number of friends that he agreed to settle the debts out of his own pocket because he needed to obtain assets from the estate in a hurry. The assets were needed in large part to satisfy his obligations to Sally. Surprisingly, it later came to light that prior to his death Frank had signed away all his assets to his girlfriend in Argentina. There was nothing left in the estate for Bruce to inherit. Bruce disavowed his agreement to pay $10,000 to various creditors. Which of the following is the most likely result of Bruce's attempt to avoid his agreement to pay creditors of the estate out of his own pocket?

 

Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book. Sam is not initially aware of the agreement. Betty pays no one. Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally. Bob later refuses to do so saying that promises to give gifts are not enforceable. He then moves out of town. Trudy tells both Sam and Sally that she is broke, that Sam needs to get his $40 for the book from Betty, and that Sally is owed $40 from Bob for her birthday present. What type of third-party beneficiary is Sam?

 

Painted House. Billy had a contract to paint Jan's house for $800 including the duty to clean up any debris. The contract between Billy and Jan did not contain an anti-assignment clause. Billy, who was very busy, assigned the contract, including the right to payment and the duty to paint, to Richard who was interested in making some extra money and had experience painting. Billy did not tell Jan about the assignment because he did not want any trouble nor did Richard mention the assignment to her. In fact, Richard never met Jan because he painted while she was at work. After Richard did a good job painting the house, Jan sent a check to Billy for $800. Billy needed the money to pay some bills, so he spent it. He thought he would have money coming in with which to pay Richard, but that did not happen. Richard asked Jan for $800 when it was not forthcoming from Billy. Jan refused. Richard said that he was going to sue her and Billy. Jan called Billy and told him that he had no right to assign the contract. Another problem involved disposal of debris. Although Richard was a good, competent painter, he forgot and left some old paint cans at Jan's house. Jan demanded that Billy come and properly dispose of the paint cans because they could not simply be put in the trash. Billy refused and told her that she would have to get Richard to dispose of the paint cans because that was his responsibility. What would be the likely result of a lawsuit brought by Richard against Jan to recover the $800?

 

Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book. Sam is not initially aware of the agreement. Betty pays no one. Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally. Bob later refuses to do so saying that promises to give gifts are not enforceable. He then moves out of town. Trudy tells both Sam and Sally that she is broke, that Sam needs to get his $40 for the book from Betty, and that Sally is owed $40 from Bob for her birthday present. What type of third-party beneficiary is Sally?

 

Third-Party Woes. Trudy owed Sam $40 for a book she purchased from him. Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book. Sam is not initially aware of the agreement. Betty pays no one. Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally. Bob later refuses to do so saying that promises to give gifts are not enforceable. He then moves out of town. Trudy tells both Sam and Sally that she is broke, that Sam needs to get his $40 for the book from Betty, and that Sally is owed $40 from Bob for her birthday present. Which of the following would be the likely result if Sam sues Trudy for the $40 she owes him for the book?

 

Portraits. Belinda, a famous portrait painter, agreed to paint Harry's portrait for $5,000. She also agreed to paint the portraits of Michelle's two Welsh Corgi dogs, Baby and Bree. Michelle agreed to pay Belinda $12,000 for the portraits. Belinda charged Michelle more because dogs annoyed her. Belinda met the spoiled dogs, and they really got on her nerves. Plus, she was behind on finishing Harry's portrait. Belinda, therefore, proceeded to assign the right to receive the money for the dog portraits and the duty to paint the dog portraits to her assistant, Fred. He eagerly accepted and painted the portraits. As payment for amounts she owed him for various duties, Belinda also assigned to Fred the right to receive payment from Harry. Neither the contract Belinda had with Harry nor the contract she had with Michelle expressly prohibited assignment or delegation of contractual rights and duties. Belinda finished the portrait of Harry and called him to come and pick it up. Meanwhile, a disgruntled secretary who disliked Belinda told both Michelle and Harry about the agreements with Fred. Michelle was furious and refused to pick up the portrait or pay anyone. Harry likewise refused to pay for his portrait claiming that the right to payment could not be assigned. What would be the most likely result if Fred sues Harry for the $12,000 payment?

 

A(n) _____ of contract often arises when market conditions change and one party realizes that it will not be profitable to carry out the terms of the contract.

 

When a party's contract obligations have been terminated, the obligations have been _____.

 

Kelly and Theo have both completed their respective obligations under their contract. This is _____ performance.

 

Which of the following is the return to its original owner of any property transferred under a contract?

 

Which of the following is correct regarding complete performance?

 

Which of the following describes conditions that are inferred from the nature and language of the contract?

 

Which of the following is a basis for discharge by operation of law when performance is still objectively possible but would be extraordinarily injurious or expensive to one party?

 

Which of the following is a condition courts require in order to recognize substantial performance?

 

Marlie's contract explicitly states that she must perform her contract obligation by June 1 at 5:00 p.m. This is an example of _____.

 

Which of the following may not result in discharge of a contract by operation of law?

 

In order for a novation to be valid, what has to happen?

 

Suppose that Jeremiah was unfairly terminated before his employment contract expired, and he had to spend $500 to find another job. His job search expenditures would be considered _____ damages.

 

Which of the following is not a way a party's contractual obligations can be discharged?

 

Which of the following are types of conditions that affect the performance obligations of the parties?

 

Bob agreed to tutor Lola in Spanish for two (2) hours and Lola agreed to pay $25.00 per hour for the tutoring services. Bob tutored Lola and she paid Bob $50.00. This means that the parties have been _____.

 

Selma is suing William for fraud that induced her to enter into a contract with him. William sold Selma worthless stocks that he falsely and intentionally claimed were very valuable. In attempting to punish William for his fraudulent misrepresentation, Selma will seek _____ damages.

 

What type of breach discharges the nonbreaching party from his or her obligations under the contract?

 

Which of the following was the result in Thrifty Rent-A-Car System v. South Florida Transport, the case in the textbook where in response to a claim for amounts due on a franchise agreement involving the rental of vehicles, the defendant claimed that hurricanes had rendered its rental car business commercially impracticable?

 

Margo and Bruce have an agreement in which Margo will paint the entire first floor of Bruce's house for $5,000. As it turns out, Bruce cannot afford to have the whole first floor painted. Margo and Bruce decide that instead of the entire first floor, Margo will paint the living room and dining room only for $2,500. They put the original contract into a paper shredder and enter into another contract indicating the new terms. This is an example of a(n) _____.

 

Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel, that he would complete renovations on her upscale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area, and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling himself to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Assuming the earthquake does not affect Stewart's liability for damages, which of the following is true regarding the provision that he will pay $50,000 for each day he is late?

 

Dream Home. Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. Maurice also includes a contractual clause in the contract with the seller that if the purchase goes through but he loses his job within one year, the seller will repurchase the house for the same price Maurice paid for it. After getting a loan and buying the home, Maurice decided that he wanted new windows put into the home. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation. The provision that the seller will repurchase the home if Maurice loses his job within one year of the sale is referred to as which of the following?

 

Frequently, real estate contracts are conditioned on an event such as the buyer's ability to sell his current home by a certain date. If the home does not sell by the stipulated date, the condition is not satisfied and the parties are therefore discharged from the contract. This is an example of a contract that is subject to a _____.

 

Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel, that he would complete renovations on her upscale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area, and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling himself to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Which of the following is the appropriate term for the agreement that Stewart would pay Joan $50,000 for each day he was late in completion?

 

Dream Home. Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. Maurice also includes a contractual clause in the contract with the seller that if the purchase goes through but he loses his job within one year, the seller will repurchase the house for the same price Maurice paid for it. After getting a loan and buying the home, Maurice decided that he wanted new windows put into the home. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation. The responsibility of Maurice to make arrangements to give the window installer access to the home is referred to as which of the following?

 

Creaky and Toady. Beverly decides to go on a great trip to Hawaii. She needs someone, however, to take care of her two dogs, Creaky and Toady, while she is gone. Creaky has hives, and Toady passes gas frequently because of a digestive problem. Beverly hires Frank three months in advance, and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks. Frank comes over two months before Beverly is set to leave, takes one look at Creaky and Toady, and declares that they are too creepy to be around. Beverly then hires Alice who agrees to care for Creaky and Toady. Two weeks before Beverly is set to leave, however, Alice calls and tells her that she just broke both her legs in an automobile accident, sustained other injuries, and has been put on bed rest for two months. Finally, Alice hires Betty to care for the dogs and heads off to Hawaii, where she has a great time. Unfortunately, when Beverly returns home, she finds that Betty fell in love with Creaky and Toady and has absconded with them. It was a month before Beverly was able to get a court order requiring their return. Which of the following would be an order from the court requiring that Betty return Creaky and Toady to Beverly?

 

If a contract or a contract provision is _____, it is so unfair that a court would be unreasonable if it enforced the contract.

 

Under Article 2 of the Uniform Commercial Code (UCC), which of the following consists of the passing of title from the seller to the buyer for a price?

 

What do the words "deliver to the order of seller" indicate in a goods-in-bailment contract?

 

Louisiana has only adopted portions of the Uniform Commercial Code (UCC) that do not conflict with its _____.

 

Under Article 2(A) of the Uniform Commercial Code (UCC), "a transfer of the right to possession and use of goods for a term in return for consideration" is a(n) _____.

 

Under the Uniform Commercial Code (UCC), a(n) _____ can be made by any reasonable means of communication.

 

If Article 2 of the Uniform Commercial Code (UCC) is silent on an issue of sales contract formation or interpretation, what law applies?

 

What did the court rule on appeal in Alfonso Candela v. Port Motors, Inc., the case in the textbook in which the plaintiff sued the defendant for breach of warranty of title, claiming that he was sold a stolen car?

 

What may a buyer do if a seller does not provide goods that were described in the contract?

 

In terms of conditional sales contracts, a(n) _____ contract occurs when the seller and buyer agree that the buyer may return the goods at a later time.

 

Which of the following require that the seller make proper shipping arrangements and deliver goods to the buyer via a common carrier, but does not require a guarantee of the safety of goods to their destination?

 

What type of agreement do contracting parties have when the goods are delivered to a buyer via a common carrier, such as a trucking line?

 

A goods-in-_____ contract involves goods that are in some kind of storage, so the seller cannot transfer physical possession of them.

 

Which of the following is true regarding transportation costs when the shipping term "FOB" is used in a contract for the sale of goods requiring delivery?

 

Which of the following is true when the shipping term "FAS" is used?

 

Which of the following are types of conditional sales contracts?

 

Under Uniform Commercial Code (UCC) Section 2-207(1), additional terms do not negate acceptance unless acceptance is made _____.

 

If the seller has a negotiable document of title in a goods-in-bailment contract, when does risk of loss transfer from the seller to the buyer?

 

A goods-in-bailment contract that lacks the words "to the order of" indicates a _____ document of title.

 

Patty, who lives in East Tennessee, developed a new type of printer that required very little ink. As a merchant, she entered into contracts to sell the printer to a number of merchants of office supplies in the East Tennessee area for a charge of $600 each. She further entered into a number of contracts with merchants in other states and also in foreign countries. For printers sold in states other than Tennessee and for printers sold outside the United States, she charged $1,001 each. Patty was a trusting soul who did not require that her arrangements be in writing because she believed that a person's word was his or her bond. She did, however, send a confirming memo to each client to which she received no objections. Patty manufactured a number of printers but unfortunately, due to a downturn in the economy, a number of her buyers refused to proceed on their contracts, with several claiming that the contracts were unenforceable because they were not in writing. Which of the following is true regarding whether the contracts with clients in the East Tennessee area were required to be in writing?

 

Accidental Sale. ABC Motors ordinarily deals in used cars and does some amount of repair work. Robby entrusted his automobile to ABC Motors to have the oil changed and get new brakes. The car was parked in the lot along with other cars, some of which were for sale. The manager of ABC Motors accidentally sold the car to Connie because she saw it and took it upon herself to offer a good price. The manager was attempting to increase the shop's profit margin. Connie had no idea that the car did not belong to ABC Motors. When Robby went to pick up the car, he was very upset that it was gone. The manager told Robby that he was very sorry, but that he was not negligent and only made an honest mistake. According to the manager, Robby accepted the risk of this type of loss, and his only recourse was against Connie. Which of the following is true regarding the manager's statement that Robby's only recourse is against Connie?

 

Patty, who lives in East Tennessee, developed a new type of printer that required very little ink. As a merchant, she entered into contracts to sell the printer to a number of merchants of office supplies in the East Tennessee area for a charge of $600 each. She further entered into a number of contracts with merchants in other states and also in foreign countries. For printers sold in states other than Tennessee and for printers sold outside the United States, she charged $1,001 each. Patty was a trusting soul who did not require that her arrangements be in writing because she believed that a person's word was his or her bond. She did, however, send a confirming memo to each client to which she received no objections. Patty manufactured a number of printers but unfortunately, due to a downturn in the economy, a number of her buyers refused to proceed on their contracts, with several claiming that the contracts were unenforceable because they were not in writing. Assuming the United Nations Convention on Contracts for the International Sale of Goods (CISG) is in effect, which of the following is true regarding whether the contracts with clients outside the U.S. were required to be in writing?

 

Wrecked Furniture. Ralph buys new furniture for his living room from Good Times Furniture. It is agreed that the goods will be placed with a common carrier for delivery. The contract between Ralph and Good Times is ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home. Unfortunately, on the way to Ralph's home, through no fault of the delivery driver, the delivery truck was wrecked and the furniture was significantly damaged. What type of contract is presumed based upon the fact that the contract was ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home?

 

Wrecked Furniture. Ralph buys new furniture for his living room from Good Times Furniture. It is agreed that the goods will be placed with a common carrier for delivery. The contract between Ralph and Good Times is ambiguous regarding whether the seller had the duty to deliver the goods only to the common carrier's hands or whether the seller had the duty to deliver the goods to Ralph's home. Unfortunately, on the way to Ralph's home, through no fault of the delivery driver, the delivery truck was wrecked and the furniture was significantly damaged. Which of the following is the type of contract that Ralph and Good Times Furniture entered into?

 

What action(s) does the Uniform Commercial Code (UCC) allow a court to take if it discovers that a contract or a lease provision is unconscionable?

 

The Uniform Commercial Code requires lessors to _____ goods to lessees.

 

The term "reasonable commercial standards of fair dealing" is often called _____.

 

Which of the following usually requires that the seller deliver the particular goods identified in the contract?

 

If obligations under a buyer and seller's contract arise, which law will courts rely on to clarify the obligations?

 

Under the Uniform Commercial Code, a seller must bring a lawsuit on a breached contract within _____ of when the breach occurred or when the seller became aware of it.

 

What is the time limit allowed for a buyer to bring a lawsuit for the seller's breach of contract?

 

Which of the following is the right of a buyer to substitute goods for those due under a sales agreement?

 

In order for goods to be merchantable, the goods must _____.

 

Hemi's Car Parts, Inc. and Jule's Jewels Automotive, LLC are in a contract dispute. Under UCC Section 1-304, what is the good faith standard imposed on merchants?

 

Which of the following is required by the Magnuson-Moss Act when the seller issues a written warranty for a consumer good?

 

Which of the following is true regarding a buyer's acceptance of goods?

 

Which of the following is true regarding buyers or lessees who want to accept nonconforming goods and then seek monetary damages?

 

Which of the following determines the obligations of sellers and buyers?

 

If goods are identified at the time the parties entered into a contract and these goods are destroyed through no fault of the parties before risk passes to the buyer, which of the following is true?

 

In terms of sale of goods transactions in the United States, which of the following is true regarding disclaimer of the warranty of merchantability?

 

Which of the following means that the warranty or guarantee is automatically a part of the contract?

 

When does the Uniform Commercial Code allow buyers to seek the remedy of specific performance?

 

The three (3) warranties of quality that arise under the Uniform Commercial Code are _____.

 

Which of the following must a buyer do in obtaining cover?

 

Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding any right of Selina to recover the additional advertising fees she incurred from Roland?

 

Ann chipped a tooth on a peach pit while eating a can of mixed fruit. She wants to sue the manufacturer of the fruit mix. Which of the following would be the manufacturer's best defense?

 

Boat Tow. Donnie went to a new car dealership and told the salesperson (who was not the manager) that he needed a new car that would both get good gas mileage and pull his big boat. The salesperson encouraged him to buy a smaller car that the salesperson promised would pull the boat. Donnie bought the car and used it to pull the boat. Unfortunately, the heavy pull on the car did significant damage to the car's engine. Donnie complained to the salesperson, who denied any liability. Donnie, who had taken half-a-semester of business law, informed the salesperson that along with the sale of the car he also received an express warranty and an implied warranty of merchantability, and that he could recover under either of those theories. Will Donnie be able to recover damages based upon breach of the implied warranty of fitness for a particular purpose?

 

Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding Roland's claim that Selina had no right to sell the furniture he initially purchased?

 

New Furniture. Penny purchased $3,000 worth of furniture from Bob's furniture shop. Through an arrangement with Bob, Penny financed the purchase through a financing company called Let Us Help You. Twenty-nine days after the goods were delivered to her, Penny had a disagreement with Let Us Help You regarding the amount of interest she would be required to pay. She notified Bob on that day that she was rejecting the goods. Bob claimed that she did not properly reject the furniture and also that she acted in bad faith. Penny says that she properly rejected and denies that she acted in bad faith. She also says that, in any event, she cannot be sued for both wrongful rejection and also bad faith because of double jeopardy. Which of the following is true regarding the standard of good faith that would be applied to Penny?

 

Belinda orders a certain type of hybrid rose for her wedding. A disease sweeps through that type of rose and the florist can only obtain the roses at great cost, if at all. Which of the following is the appropriate term for the florist's best defense?

 

Michael is assisting Michelle and Johnathan in their formation of a corporation by helping them arrange for the necessary capital, financing, and licenses. In this case, Michael is a corporate _____.

 

When a corporation is incorporated, the secretary of state usually issues a(n) _____, a document certifying that the corporation is incorporated in the state and is authorized to conduct business.

 

Belinda is both a director and an officer of her corporation. Belinda is a(n) _____.

 

Which of the following refers to the liability of corporations for torts and crimes committed by their agents during the scope of their employment?

 

If Acme Corporation retains its profits and reinvests them in the company, these types of profits are known as _____.

 

Jewel's Fine Jewelry, Inc. (Jewel's) is incorporated in the state of Oklahoma but does business in Michigan, Illinois, and Tennessee. In Michigan, Illinois and Tennessee, Jewel's would be considered a _____ corporation.

 

Which of the following is necessary in order for a business to qualify as an S corporation?

 

Which of the following may be redeemed for a certain number of shares at a specified price within a given time period?

 

How is the number of corporate directors determined?

 

Who has the lowest priority when a corporation distributes dividends?

 

Who uses a majority vote to elect the corporation's directors?

 

Which of the following is generally true regarding the management of a corporation?

 

A director may be removed _____.

 

A corporation commits an ultra vires act when it _____.

 

According to the Revised Model Business Corporation Act (RMBCA), which of the following should the articles of incorporation include?

 

A _____ must be present at a board of directors meeting for decisions made at the meeting to be valid.

 

When the government or private parties obtain a court order to dissolve a corporation, it is a(n) _____.

 

When the directors or shareholders of a corporation initiate dissolution procedures, it is a(n) _____.

 

Which of the following was the result on appeal in Campbell, Kesser, and Williams v. Pothas Corporation, the case in the textbook in which the defendant alleged that golden parachute agreements were not enforceable because they violated public policy?

 

Machine Malfunction. Bruno, the president of a corporation operating workout facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body." Bruno had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that "Perfect Body" was actually a very dangerous machine that should not be used. The manufacturer of "Perfect Body" went bankrupt, and the corporation lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Bruno and the directors. The board of directors agrees to allow Frances, the ringleader of the shareholders, to purchase stock of the company at below its fair market value. She purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Bruno and the board members. Which of the following is true regarding the liability of Frances, if any, for purchasing the stock at below its fair market value?

 

Shaky Bicycles. Rhonda, an incorporator who filed the articles of incorporation for ABC Corporation, a corporation set up to sell bicycles, listed the correct town and street but incorrectly put the wrong street number in the document. Helen, a manufacturer of bicycle parts, had sold a number of parts to ABC Corporation. Unfortunately, the corporation was not making any profit, and Helen was not paid in a timely manner. Rhonda told her that the corporation was not liable because it was not validly formed due to the address mistake. Bernice, another creditor of ABC Corporation, also claimed that a shareholder of Shaky Bicycles, Slick, was personally liable to her. Bernice alleged that Slick committed fraud against her when he told her that ABC Corporation was making large amounts of money, that if she would only lend $50,000 to the corporation he would marry her, and that the corporation would make so much money that she would be wealthy in six months. She made the loan, but the corporation has been unable to repay her. Slick told her that he is sorry, but that her only avenue of recovery is through the corporation. Which of the following would a court likely rule regarding the status of ABC Corporation as a corporation?

 

Self-Centered President. Tina is the new president of "We Manage You," a corporation set up to manage physician practices. Tina has never been very concerned with minority shareholders because she does not believe that they have any influence over the company because they cannot even elect a director. She is told, however, that the corporation has a practice of cumulative voting. An election is coming up in which 10 directors will be elected. Minority shareholders own 2,000 shares while majority shareholders own 8,000 shares. Tina tells her vice president, George, that she wants to ignore minority shareholders and focus her interests on majority shareholders and the directors. She also tells George that she wants to be particularly conscientious toward directors because the directors appoint officers, and she does not believe that she owes any actual duties to shareholders. She further orders George to destroy some documents subpoenaed in a criminal investigation against the company for illegal tax evasion. When George protests, Tina tells him not to worry because officers cannot be held responsible for criminal actions so long as the actions are done as part of the officer's duties. She explains to him that only the corporation can be charged with liability in such cases. Is Tina accurate that she owes no duties to shareholders?

 

Shaky Bicycles. Rhonda, an incorporator who filed the articles of incorporation for ABC Corporation, a corporation set up to sell bicycles, listed the correct town and street but incorrectly put the wrong street number in the document. Helen, a manufacturer of bicycle parts, had sold a number of parts to ABC Corporation. Unfortunately, the corporation was not making any profit, and Helen was not paid in a timely manner. Rhonda told her that the corporation was not liable because it was not validly formed due to the address mistake. Bernice, another creditor of ABC Corporation, also claimed that a shareholder of Shaky Bicycles, Slick, was personally liable to her. Bernice alleged that Slick committed fraud against her when he told her that ABC Corporation was making large amounts of money, that if she would only lend $50,000 to the corporation he would marry her, and that the corporation would make so much money that she would be wealthy in six months. She made the loan, but the corporation has been unable to repay her. Slick told her that he is sorry, but that her only avenue of recovery is through the corporation. Assuming ABC's corporate status is in place, which of the following is Bernice's best theory in order to hold Slick personally liable to her?

 

Machine Malfunction. Bruno, the president of a corporation operating workout facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body." Bruno had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that "Perfect Body" was actually a very dangerous machine that should not be used. The manufacturer of "Perfect Body" went bankrupt, and the corporation lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Bruno and the directors. The board of directors agrees to allow Frances, the ringleader of the shareholders, to purchase stock of the company at below its fair market value. She purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Bruno and the board members. Which of the following is a term for stock issued to individuals below its fair market value?

 

Machine Malfunction. Bruno, the president of a corporation operating workout facilities, convinced the board of directors to approve a large purchase of a type of fitness machine called "Perfect Body." Bruno had carefully investigated the machine and did a presentation to the board on its purported benefits. Unfortunately, after the purchase, it was announced that "Perfect Body" was actually a very dangerous machine that should not be used. The manufacturer of "Perfect Body" went bankrupt, and the corporation lost $200,000 on the purchase of the machines. The shareholders are furious and want to sue Bruno and the directors. The board of directors agrees to allow Frances, the ringleader of the shareholders, to purchase stock of the company at below its fair market value. She purchases a considerable amount of stock on that basis, but says that the shareholders plan to continue with an action against Bruno and the board members. Under which of the following should Bruno and the board of directors defend themselves in an action brought by shareholders for harming the corporation?

 

The Securities and Exchange Commission (SEC) assumes that _____ are better able to evaluate the financial risk of buying securities.

 

A prospectus is a written document filed with the Securities and Exchange Commission (SEC) containing _____.

 

Which of the following are profits are made by a statutory insider from the sale of company stock within any six-month period?

 

Which of the following legislation oversees the purchase and sale of securities?

 

Which of the following laws regulate(s) securities transactions?

 

Which of the following legislation regulates how companies issue corporate securities?

 

Which of the following occurs after an issuer files a registration statement and prospectus?

 

The United States Congress passed the _____ in reaction to the mistrust of securities transactions before the Great Depression.

 

Shelf registrations permit certain qualified issuers to register securities they will sell _____ on a delayed or continuous basis in the future.

 

During the _____, issuers may make oral offers to sell their securities and may distribute a red-herring prospectus—a prospectus with a notice written in red print at the top of the page warning investors that the registration has been filed with the Securities and Exchange Commission (SEC) but is not yet approved.

 

Which of the following are main functions/purposes of the Sarbanes-Oxley Act of 2002?

 

Which of the following organizations are excluded from the Investment Company Act's definition of an investment company?

 

Which of the following is true regarding the Securities Exchange Act of 1934?

 

The United States Congress passed the _____ in an effort to prevent the exploitation of small investors.

 

Which of the following was the result on appeal in United States v. Carpenter, the case in the textbook in which it was claimed that federal securities law was violated by a scheme by which confidential information gained in the course of obtaining news material for the Wall Street Journal was sold to stockbrokers?

 

A(n) _____ announces a forthcoming sale of securities during the waiting period though a brief advertisement.

 

According to Securities and Exchange Commission (SEC) guidelines, an accredited investor does not include _____.

 

Which of the following provisions of the Securities Exchange Act of 1934 prohibits fraud associated with the purchase or sale of all securities?

 

Which of the following was the ruling in Stoneridge Inv. Partners, LLC v. Scientific-Atlanta, Inc., the case in the textbook in which the United States Supreme Court addressed the issue of the liability of bankers, lawyers, and other third parties who did not directly mislead investors but worked with corporations that did?

 

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. Which of the following describes Frank in providing information about the asset sale to George?

 

Coffee shops. Bernice wants to open a chain of coffee shops and begins by asking her friends in various states around the country to invest through the purchase of securities in the coffee shops. Her friend Robbie says that he would like to invest but that she should be sure that she satisfies requirements of the Securities and Exchange Commission (SEC). He tells her that she has to provide information to the SEC involving a description of the securities, an explanation of how proceeds will be used, information regarding the management of the company, and other matters. He tells her that she also has to provide a document to the SEC that will be provided as an advertising tool to potential investors who can rely on it to decide whether they should buy securities. Bernice says that she does not want to do that. She explains to Robbie that insofar as the coffee shop venture is concerned, she does not want to advertise, and she wants to offer securities only to a limited number of wealthy friends. Particularly, she has in mind Scott who has a net worth of at least $3 million and Mary, a psychiatrist. Mary recently filed bankruptcy because of some bad decisions involving an elaborate decoration of her office. Although her income for the past couple of years has been in the range of $80,000, business is improving based on her recent involvement with a number of patients suffering anxiety based upon a fear of alien invasion. Which of the following is the term for the document referenced by Robbie involving information to be provided to the SEC involving a description of the securities, an explanation of how proceeds will be used, information regarding the management of the company, and other matters?

 

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. In which of the following prohibited practices was Linda engaged by purchasing the shares after she found out about the merger?

 

In Trouble. Bruno, an issuer of stock, may be in trouble. He sold stock in a new health club venture before the effective date of registration. He did so because he was in financial trouble involving other ventures of his and needed additional funds. Bruno thought that the health club venture would be such a success that he would never get caught in regard to the stock sale. Unfortunately, he was wrong. The health club venture was going very poorly and investors were looking for some way to hold Bruno responsible. Another problem Bruno has is that he inflated information regarding the prospects of the health club in the prospectus. Investors bitterly complained. Rick, a new lawyer, told Bruno that as far as he knew, the Securities and Exchange Commission (SEC) could fine Bruno under the Securities Act of 1933 but could not send him to jail. Bruno told Rick that was good news and that no one should feel sorry for the investors because none of them made any effort to check on information contained in the prospectus or to investigate the future profitability of the health club venture. Bruno says that he plans to rely on the due diligence defense. Bruno also asks Rick if he is aware of any other defenses. Bruno says that he has never previously been in trouble with the SEC. Is Rick correct in that the SEC would have no authority to send Bruno to jail?

 

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. For which of the following is George liable?

 

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. For which of the following is Linda liable?

 

Which of the following laws govern(s) labor-management relations in the United States?

 

Which of the following does the Employee Retirement Income and Security Act (FLSA) establish?

 

The Fair Labor Standards Act (FLSA) mandates that employees who are not excluded from its coverage and who work more than _____ hours in a week be paid no less than one and one-half times their regular wage for all the hours beyond _____ that they work during a given week.

 

Under the Family and Medical Leave Act (FMLA), eligible employees are those who have worked at least _____ hours per week for each of _____ months prior to the leave.

 

Which of the following legislation require(s) employers to furnish safe working conditions free from recognized hazards that are likely to cause serious harm or death?

 

Which title of the Civil Rights Act of 1964 deals with discrimination in employment?

 

Surprise Arrival. Gracie was surprised and pleased to find she was pregnant. She worked as a waitress at Good Food and was aware that Groucho, her employer, had allowed employees who were ill for reasons that were not work related to take paid time off. For example, her friend Craig was off with pay for two months after suffering a mild heart attack, and her friend Bonnie was off work for three months when she ran her personal watercraft into a dock and broke her leg. Gracie told her employer Groucho about her pregnancy. He very angrily told her that pregnancy was completely voluntary, that he was not paying her a dime when she was off work, and that she would be lucky if he even allowed her to continue working at all because she would not be as cute when she gained weight. He also said that he serves families, and he does not want the kids to ask embarrassing questions of their parents regarding Gracie's condition. Gracie was very angry and threatened to sue. Groucho told her, however, that he had business law back in 1980 and that discrimination based on pregnancy is not even covered by Title VII. The employee handbook did not address the issue. Which of the following is true regarding Groucho's comment that pregnancy-based discrimination is not covered by Title VII?

 

Which of the following was the result in Roe v. Teletech Customer Care Management, the case in the textbook in which the employee sued after being terminated for testing positive for marijuana she was taking for a medical condition?

 

Which of the following was the result in Kumar v. Gate Gourmet, Inc., the case in the textbook in which the Supreme Court of Washington addressed the issue of whether an employer meal policy, which barred employees from brining in their own food for lunch (for security reasons) and left only employer-provided food for the employees to eat, constituted a failure to accommodate their religious practices reasonably and had a disparate impact on employees who adhered to certain religions?

 

Which of the following is the first step in a three-step process of proving disparate-treatment discrimination in employment under Title VII of the Civil Rights Act of 1964?

 

Through which of the following theories can an employee-plaintiff prove discrimination under Title VII of the Civil Rights Act of 1964?

 

Which of the following damages are not allowed under Title VII of the Civil Rights Act of 1964?

 

Employers are required to retain I-9 forms for a period of at least _____ from the date of hire or _____ after the employee is no longer employed, whichever is longer.

 

Which of the following is false regarding the Federal Unemployment Tax Act (FUTA)?

 

Which of the following is correct regarding the extent to which the National Labor Relations Act (NLRA) protects the rights of employees to act together to address conditions at work?

 

The Age Discrimination in Employment Act (ADEA) was enacted to prohibit employers from _____ older workers.

 

Which of the following can never be used as a defense to a bona fide occupational qualification?

 

The Immigration Reform and Control Act requires _____ to verify the identity and eligibility of all individuals hired in the United States after November 6, 1986.

 

Which of the following is true regarding caps on punitive damages in Title VII cases based on discrimination other than race?

 

Styling Shenanigans. Candy, who operated a hair and nail salon called "Up Sweep," had a crush on Bruce, a stylist there. He paid her no attention. Finally, Candy told him that to get her approval of his new blow dryer request, he needs to take her on a date and give her a kiss. Bruce reluctantly did so. When they returned to work, Candy proceeded to make suggestive comments to Bruce in front of other employees and to request that he rub her shoulders. When she passed Bruce's station, she would caress him while he worked. Candy also decided that Robert was cute, and she showered him with the same type of attention. Robert enjoyed the attention, but Bruce was offended and filed a claim against Candy for sexual harassment. Bruce asked Robert to join in on the claim. Robert said that it personally never bothered him; but that if Bruce can collect, then he wants in on the action. Bruce told Robert that he is going to see a psychologist to substantiate his claim and that Robert should consider doing likewise. Robert tells him that he has no interest in seeing a psychologist but that his case is as strong as Bruce's. Robert says that while he found Candy entertaining, in all fairness, he should be able to recover if Bruce does so. Of which of the following types of harassment were Candy's caresses and suggestive statements?

 

Styling Shenanigans. Candy, who operated a hair and nail salon called "Up Sweep," had a crush on Bruce, a stylist there. He paid her no attention. Finally, Candy told him that to get her approval of his new blow dryer request, he needs to take her on a date and give her a kiss. Bruce reluctantly did so. When they returned to work, Candy proceeded to make suggestive comments to Bruce in front of other employees and to request that he rub her shoulders. When she passed Bruce's station, she would caress him while he worked. Candy also decided that Robert was cute, and she showered him with the same type of attention. Robert enjoyed the attention, but Bruce was offended and filed a claim against Candy for sexual harassment. Bruce asked Robert to join in on the claim. Robert said that it personally never bothered him; but that if Bruce can collect, then he wants in on the action. Bruce told Robert that he is going to see a psychologist to substantiate his claim and that Robert should consider doing likewise. Robert tells him that he has no interest in seeing a psychologist but that his case is as strong as Bruce's. Robert says that while he found Candy entertaining, in all fairness, he should be able to recover if Bruce does so. Which of the following is true regarding Robert's claim of sexual harassment?

 

Surprise Arrival. Gracie was surprised and pleased to find she was pregnant. She worked as a waitress at Good Food and was aware that Groucho, her employer, had allowed employees who were ill for reasons that were not work related to take paid time off. For example, her friend Craig was off with pay for two months after suffering a mild heart attack, and her friend Bonnie was off work for three months when she ran her personal watercraft into a dock and broke her leg. Gracie told her employer Groucho about her pregnancy. He very angrily told her that pregnancy was completely voluntary, that he was not paying her a dime when she was off work, and that she would be lucky if he even allowed her to continue working at all because she would not be as cute when she gained weight. He also said that he serves families, and he does not want the kids to ask embarrassing questions of their parents regarding Gracie's condition. Gracie was very angry and threatened to sue. Groucho told her, however, that he had business law back in 1980 and that discrimination based on pregnancy is not even covered by Title VII. The employee handbook did not address the issue. Which of the following is true regarding Gracie's entitlement to be paid for time she is medically required to be off for pregnancy?

 

Dog and Formals. Paul owns a dog grooming business and needs patient people to work there. He gives all applicants a test he obtained from a management firm that has been proven to measure psychological traits such as patience. Penny alleges sex discrimination after she fails the test miserably and Paul refuses to hire her. Paul tells her that there is no way he is giving her a dime because he is entitled to protect his client's dogs. Upon learning that her state lacked a state office representing the Equal Opportunity Commission, Penny immediately sues him in federal court alleging a violation of Title VII. Paul, who is getting tired of the dog grooming business, also opens a new formal wear shop and needs to hire employees there as well. He wants to appeal to high school and college-age young ladies attending proms and formals. Paul decides that he does not want older sales clerks to assist in choosing formal dresses. He only wants young, attractive ones. Paul runs an ad in the local paper seeking applicants for sales clerks and stating that a qualification for the job is computer training while in high school. Tina, age 60, applies and tells Paul that while she sees no reason that computer training should be required, she attended computer training in adult education and has excellent computer and sales skills. Paul refuses to hire her, telling her that unless he follows the ad, he may be seen as practicing discrimination. Deciding that formal wear is more trouble than dogs, Paul shuts down the formal wear store. Which of the following is true regarding Paul's test for patience?

 

Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting. Phyllis has worked there for a number of years and is considering quitting in order to spend more time with her three active triplets, Sunny, Fussy, and Perky. She asks her boss, Bolivar, about the pension plan at We Add for You. Her boss tells her that she is not entitled to that information until she is at least 60 years old. Phyllis also asks about retaining her medical insurance protection if she quits and is told that she would have no right to do so. Bolivar also throws in that he has been monitoring her conversations and that he particularly enjoys the conversations between her and her single female friends involving failed dating experiences. He asks her to keep those up. Phyllis tells him that her personal phone calls are none of his business. Bolivar says that he can listen if he wants because the phones are his. Phyllis ends up starting her own company called We Multiply for You, and makes much, much more money. (In answering the following questions, assume all federal laws apply and that any pension and medical plan qualifies for regulation under federal law.) Assuming Phyllis quits, which of the following rights does she have under federal law to retain benefits so long as the benefits are provided to employees who are still working?

 

Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting. Phyllis has worked there for a number of years and is considering quitting in order to spend more time with her three active triplets, Sunny, Fussy, and Perky. She asks her boss, Bolivar, about the pension plan at We Add for You. Her boss tells her that she is not entitled to that information until she is at least 60 years old. Phyllis also asks about retaining her medical insurance protection if she quits and is told that she would have no right to do so. Bolivar also throws in that he has been monitoring her conversations and that he particularly enjoys the conversations between her and her single female friends involving failed dating experiences. He asks her to keep those up. Phyllis tells him that her personal phone calls are none of his business. Bolivar says that he can listen if he wants because the phones are his. Phyllis ends up starting her own company called We Multiply for You, and makes much, much more money. (In answering the following questions, assume all federal laws apply and that any pension and medical plan qualifies for regulation under federal law.) Which of the following is true regarding Bolivar's statement that Phyllis is not entitled to that information until she is at least 60 years old?

 

 

Through which of the following theories can an employee-plaintiff prove discrimination under Title VII of the Civil Rights Act of 1964?

 

 

If a debtor defaults, what type of court order does the secured party need to take possession of the collateral?

 

 

Which of the following is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy proceeding?

 

 

Ron and Ira execute a written agreement whereby Ron will represent Ira at an upcoming furniture show. This type of agency is known as a(n) _____ agency.

 

 

In which of the following situations would a court likely pierce the corporate veil?

 

 

An agreement in which the debtor gives a secured interest to the secured party is a(n) _____.

 

 

Which type of payment does an insolvent debtor make that gives preferential treatment to one creditor over another creditor?

 

 

Which of the following is necessary in order for a business to qualify as an S corporation?

 

 

A(n) _____ good is used (or purchased for use) primarily for personal, family, or household purposes.

 

 

What types of powers do administrative agencies have?

 

 

According to the Uniform Limited Liability Company Act (ULLCA), unless the operating agreement specifies otherwise, a limited liability company is _____.

 

 

Which of the following is false regarding a manager-managed limited liability company (LLC)?

 

 

Which of the following legislation regulates how companies issue corporate securities?

 

 

Which of the following does the Employee Retirement Income and Security Act (FLSA) establish?

 

 

Which of the following is the legal process by which a transfer of property is made by a governmental entity against the protest of the property owner pursuant to the Takings Clause of the Fifth Amendment to the United States Constitution?

 

 

Which of the following rights give preference to shareholders to purchase shares of a new issue of stock?

 

 

Which of the following refers to the liability of corporations for torts and crimes committed by their agents during the scope of their employment?

 

 

Which of the following types of bankruptcy occurs when a debtor turns over all assets to a trustee?

 

 

Which of the following consists of negotiations between an employer and a group of employees to determine the conditions of employment?

 

 

The _____ primarily governs the internal operations of labor unions.

 

 

Which of the following terms refers to a corporation that has not substantially met the requirements of the state incorporation statute, but courts nevertheless recognize it as a corporation for most purposes to avoid unfairness to third parties who believed it was properly incorporated?

 

 

Which of the following is not considered a security?

 

 

A person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking is an _____.

 

 

Fredrick hires Samantha to paint the showroom of his new furniture store instead of having one of his full-time store employees perform the work. Samantha does not work for Fredrick in any other capacity. Samantha is _____.

 

 

Which of the following are rules and regulations that govern a corporation's internal management?

 

 

A(n) _____ is an individual who applies to the state for incorporation on behalf of a corporation.

 

 

Vivian misrepresents herself as Dylan's agent. Dylan does not correct Vivian's misrepresentation. This type of agency is called a(n) _____.

 

 

The question of whether a worker is an employee or an independent contractor has important implications in which of the following areas?

 

 

Which of the following is a doctrine used in the context of the principal/employer-agent/employee relationship?

 

 

If Wynn executes a document that gives Timothy the authority to sign legal documents on his behalf, Wynn has granted Timothy a(n) _____.

 

 

What type of interest does a licensee hold?

 

 

A limited partnership is an agreement between at least one (1) _____ and one (1) _____.

 

 

The Equal Employment Opportunity Commission (EEOC) has completed its investigation regarding Jeremiah's discrimination case against his employer. If the EEOC decides not to sue his employer, it will issue Jeremiah a _____.

 

 

Which of the following types of securities represent ownership in a corporation?

 

 

Johnathan is a franchisee who operates under Burger King's name, franchise rules, and methods of business operation. What type of business operation is this?

 

 

Triton Industrial Products, Inc. acted beyond its express and implied corporate powers. This is known as a(n) _____ act.

 

 

Who has the responsibility of running the day-to-day business of a corporation?

 

 

If corporate directors fail to sue when the corporation has been harmed by an individual, another corporation, or a director, individual shareholders can file a _____ on behalf of the corporation.

 

 

Which of the following is the practice of advertising with claims that mislead or could mislead a reasonable consumer?

 

 

The Fair Labor Standards Act (FLSA) mandates that employees who are not excluded from its coverage and who work more than _____ hours in a week be paid no less than one and one-half times their regular wage for all the hours beyond _____ that they work during a given week.

 

 

Which of the following can never be used as a defense to a bona fide occupational qualification?

 

 

Which of the following may be redeemed for a certain number of shares at a specified price within a given time period?

 

 

The United States Congress made comprehensive changes to bankruptcy law in the _____.

 

 

Men and women may be paid different wages under the Equal Pay Act when payment is made pursuant to a _____.

 

 

Which of the following is true regarding the Securities Exchange Act of 1934?

 

 

Who takes over the administration of the debtor's estate and is usually an attorney in private practice that specializes in bankruptcy law?

 

 

The Securities and Exchange Commission (SEC) assumes that _____ are better able to evaluate the financial risk of buying securities.

 

 

Owners of _____ stock own a portion of a corporation but do not enjoy any preferences.

 

 

Belinda is both a director and an officer of her corporation. Belinda is a(n) _____.

 

 

How are administrative agencies classified?

 

 

Which of the following laws regulate(s) securities transactions?

 

 

Which of the following legislation directed Securities and Exchange Commission (SEC) oversight of the Public Company Accounting Oversight Board to regulate public accounting firms?

 

 

What kind of property is acquired by the debtor after the security agreement is made?

 

 

Which of the following are corporate income distributions to shareholders?

 

 

A _____ agency does not fall clearly into either independent or executive agency status.

 

 

A(n) _____ forms when a debtor uses borrowed money from a secured party to purchase certain collateral.

 

 

In which type(s) of agency is the principal-agent relationship inferred from the conduct of the parties?

 

 

Which of the following are debt securities?

 

 

If there is a fixed face value noted on the stock certificate, _____ is involved.

 

 

Which of the following legislation require(s) employers to furnish safe working conditions free from recognized hazards that are likely to cause serious harm or death?

 

 

A(n) _____ occurs when a group within a corporation, usually management, buys all outstanding corporate stock held by the public.

 

 

The shape and design of a product such as Apple's iPhone is an example of which of the following?

 

 

Arlene is Micah's agent for the purposes of reviewing, analyzing and evaluating contracts. Arlene does not have the right to enter into any contract on Micah's behalf. If Arlene does enter into an unauthorized agreement, this would be a breach of which of the following duties?

 

 

When a debtor sells collateral, he or she receives _____, something that is exchanged for collateral.

 

 

Employers are required to provide a(n) _____ to employees under the Employee Retirement Income Security Act (ERISA) containing information as to how their benefit plan operates, the benefits under the plan, how to apply for such benefits, and other information.

 

 

What type of relationship typically exists when an employer hires an employee to enter into contracts on behalf of the employer?

 

 

A _____ must be present at a board of directors meeting for decisions made at the meeting to be valid.

 

 

Gordon filed the type of bankruptcy in which the bankruptcy trustee sold all of his assets and distributed the proceeds of the sale to his creditors. Gordon filed _____ bankruptcy.

 

 

How is tangible property identified?

 

 

A(n) _____ is the transfer of collateral to the secured party for the purpose of perfection.

 

 

A prospectus is a written document filed with the Securities and Exchange Commission (SEC) containing _____.

 

 

Brittany decides to go into a veterinary business on her own. This type of control and management is known as a(n) _____.

 

 

When a party _____ its interest in collateral, it is legally protecting its claim to the collateral.

 

 

Which of the following legislation oversees the purchase and sale of securities?

 

 

Which of the following is true regarding corporations other than S corporations?

 

 

Which of the following is true regarding the tort liability of employers for the actions of their employees and independent contractors?

 

 

Which of the following describes property that the true owner has unknowingly or accidentally dropped or left somewhere?

 

 

Which of the following is true regarding whether a customer's sexual harassment of an employee may result in employer liability under Title VII of the Civil Rights Act of 1964?

 

 

In a _____ transaction, payment of the debt is guaranteed by personal property owned by the debtor.

 

 

A valid gift requires _____.

 

 

According to the Uniform Commercial Code (UCC), a financing statement should include the _____.

 

 

If the incorporator or promoters make an error or omission during the incorporation process, courts may rule that the organization is not a corporation, in which case the organization is a(n) _____ corporation.

 

 

Margo owns her home and barn in rural Kentucky. This type of property is _____.

 

 

Jewel's Fine Jewelry, Inc. (Jewel's) is incorporated in the state of Oklahoma but does business in Michigan, Illinois, and Tennessee. In Michigan, Illinois and Tennessee, Jewel's would be considered a _____ corporation.

 

 

What does enabling legislation provide for an administrative agency?

 

 

In most situations, how many principals may an agent represent in any one agreement?

 

 

If there is a facially neutral policy that unintentionally discriminates against a group of individuals, this type of discrimination is known as _____.

 

 

Which of the following is false regarding the liability of directors and officers for criminal behavior?

 

 

Marquez incorporated his company, Brazilian Brass Manufacturers, Inc. in the United States but wants to do business in his home country of Brazil. In Brazil, Marquez's company would be considered a(n) _____ corporation.

 

 

Under Title VII of the Civil Rights Act of 1964, which of the following occurs procedurally after an employee-plaintiff establishes a prima facie case in an action alleging disparate-treatment discrimination in employment in the form of an illegal discharge?

 

 

A partnership in which the partners divide the profits and management responsibilities and share unlimited personal liability for the partnership's debts is called a(n) _____.

 

 

Perma-Bloom Flowers, LLC is having its financial affairs reorganized under the supervision of the bankruptcy court. What type of bankruptcy is this?

 

 

Which type of agency is generally defined as any body created by the legislative branch to carry out specific duties?

 

 

A(n) _____ power of attorney is a written document, created by a principal, expressing his or her wishes for an agent's authority not to be affected by the principal's subsequent incapacity, or for the agent's authority to become active only after a principal becomes incapacitated in any manner.

 

 

Who are the investor-owners of a corporation?

 

 

When is an employer not required to offer an employee the option to continue medical benefits under the Consolidated Omnibus Reconciliation Act (COBRA)?

 

 

Grant is negotiating an agreement on behalf of his principal, Dena, with a third party, Tammy. Tammy is aware that Grant has the authority to contract on behalf of Dena and knows that the contract is for Dena. Dena is what type of principal?

 

 

Which of the following must be satisfied in order for a patent, other than a design patent, to be granted?

 

 

How long does an agent's apparent authority continue once an agency relationship is terminated?

 

 

What does the term "FOIA" mean?

 

 

A principal's obligation to pay an agent for his services is the duty of _____.

 

 

The Securities and Exchange Commission (SEC) assumes that _____ are better able to evaluate the financial risk of buying securities.

 

 

In a dispute between two secured parties with unperfected security interests, which of the following is true?

 

 

Bank accounts, stocks, and insurance policies are examples of which of the following types of property?

 

 

Which of the following include accounts, goodwill, and literary rights that can all be subject to security interests?

 

 

If the Federal Trade Commission (FTC) requires a company to run advertisements explicitly stating that the formerly advertised claims made by the company were untrue, this is known as _____.

 

 

Which of the following is true regarding the Securities Exchange Act of 1934?

 

 

Which of the following is illegal because it gives the violator an important advantage over the general public and shareholders by using inside information to make a profit?

 

 

A(n) _____ is the transfer of collateral to the secured party for the purpose of perfection.

 

 

Shelby hired Lynn, an attorney, to represent her in an employment discrimination case. Lynn is a(n) _____ who has a duty to act on behalf of Shelby.

 

 

According to Securities and Exchange Commission (SEC) guidelines, an accredited investor does not include _____.

 

 

In which type(s) of agency is the principal-agent relationship inferred from the conduct of the parties?

 

 

When directors or officers violate their duty of loyalty, they are _____.

 

 

A person in a position of trust and confidence is known as a(n) _____.

 

 

Which of the following is the requirement that advertisers have a reasonable basis for claims made in their advertisements?

 

 

Which of the following is false regarding a partnership?

 

 

Which of the following is false regarding a sole proprietorship?

 

 

Which of the following is true regarding the rights of employees who smoke?

 

 

In the United States, which of the following is true regarding the law governing the incorporation process and corporate taxation?

 

 

According to the Uniform Commercial Code (UCC), a financing statement should include the _____.

 

 

A _____ is a franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.

 

 

Xavier executes an agreement with his employee, Marcus, that gives Marcus the authority to negotiate a one-time sales contract on Xavier's behalf. This type of agreement is a(n) _____ power of attorney.

 

 

Which of the following is the Uniform Commercial Code's (UCC's) definition of default?

 

 

How, if at all, does a closely held corporation offer stock to the public?

 

 

Corporations issue corporate securities known as _____ to raise capital for corporate expansion.

 

 

A relationship between a principal and an agent is generally defined as _____.

 

 

Tamara's Tiki Torches, L.L.C. (Tamara's) receives a complaint from the Federal Trade Commission (FTC) alleging a violation of consumer law. If Tamara's refuses to enter into a consent agreement, the FTC may then decide to issue a formal administrative complaint to be heard before an administrative law judge. If the judge decides that the company has violated the law, the FTC will then issue a _____ against Tamara's.

 

 

Which of the following is generally true regarding the management of a corporation?

 

 

Which of the following is true regarding the legal protection of consumer interests?

 

 

A corporation commits an ultra vires act when it _____.

 

 

In a limited partnership, who have no part in the management of the business?

 

 

Any employee who is not employed under a contract for a set duration or under a collective bargaining agreement is considered _____.

 

 

Which of the following is an estate that is the most complete a person can have and includes the exclusive right to ownership and possession?

 

 

Which of the following is incorrect regarding trade-secret protection?

 

 

Ralph has a car loan through North American Bank for his 2020 Corvette Stingray. Ralph is considered the _____.

 

 

Thomas is concerned about his employee rights when his supervisor asks him and others to work overtime. Which of the following could he consult to learn more about the overtime rules for workers?

 

 

Which of the following are nondischargeable debts under a Chapter 7 bankruptcy filing?

 

 

Which of the following would not be considered collateral used in a security interest?

 

 

When does an informal rule become effective?

 

 

After _____ year(s), if a secured party does not renew its financing statement, the statement _____ and the security interest is not protected.

 

 

Erik agrees to hire Olivia for six (6) months. During that time, Erik agrees to hire no one other than Olivia to represent him. This type of agency is considered _____.

 

 

Which party routinely buys goods in good faith from a person who routinely sells such goods?

 

 

Who can assert the due diligence defense?

 

 

In which of the following does a shareholder sue alleging that he or she has suffered damages caused by the corporation?

 

 

The primary purpose of the _____ is to eliminate situations in which women, working alongside men or replacing men, are paid lower wages for doing substantially the same job.

 

 

Which of the following legislation protects employees against discrimination and harassment based upon race, color, religion, national origin, and sex?

 

 

Securities which do not have to go through the registration process include _____.

 

 

The Immigration Reform and Control Act requires _____ to verify the identity and eligibility of all individuals hired in the United States after November 6, 1986.

 

 

What is an interest in personal property or a fixture which secures payment of an obligation?

 

 

Which of the following would allow an administrative agency to investigate potential rules or statutory violations?

 

 

Which of the following are profits are made by a statutory insider from the sale of company stock within any six-month period?

 

 

Which of the following are estates that do not include the right to possess the property?

 

 

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research?

 

 

Owners of _____ stock enjoy preferences with respect to assets and dividends.

 

 

After _____ year(s), if a secured party does not renew its financing statement, the statement _____ and the security interest is not protected.

 

 

Which of the following is false regarding Chapter 13 bankruptcy?

 

 

In which of the following does a shareholder sue alleging that he or she has suffered damages caused by the corporation?

 

 

Which of the following is false regarding the employer-employee relationship?

 

 

Which of the following are main functions/purposes of the Sarbanes-Oxley Act of 2002?

 

 

A _____ must be present at a board of directors meeting for decisions made at the meeting to be valid.

 

 

An Administrative Law Judge (ALJ) will often try to convince the parties to reach a settlement via a(n) _____.

 

 

Under Title VII of the Civil Rights Act of 1964, which of the following occurs procedurally after an employee-plaintiff establishes a prima facie case in an action alleging disparate-treatment discrimination in employment in the form of an illegal discharge?

 

 

In a limited partnership, who assumes unlimited personal liability for the debts of the partnership?

 

 

Belinda is both a director and an officer of her corporation. Belinda is a(n) _____.

 

 

The "death" of a corporation occurs in which of the following phases?

 

 

Which type of agency is generally defined as any body created by the legislative branch to carry out specific duties?

 

 

Bryan hired Gilman to work as his personal assistant. Their office environment is fast-paced, and per the terms of the hiring, Gilman can make many decisions for Bryan without seeking Bryan's permission in advance. Gilman is a(n) _____.

 

 

Who has the responsibility of managing the business of a corporation?

 

 

A corporation files articles of _____ with the state explaining its organization.

 

 

Which of the following is true if an agent has no actual or apparent authority to act on behalf of a principal but the agent still enters into a contract with a third party?

 

 

Which of the following factor(s) is/are considered by courts in determining whether an act committed by an employee occurred within the course and scope of employment?

 

 

Which of the following is true regarding the rights of employees who smoke?

 

 

According to the Postal Reorganization Act of 1970, any unsolicited merchandise sent by mail is free to be used at the recipient's discretion, _____.

 

 

Property that the original owner has discarded is _____ property.

 

 

Which of the following is true regarding a secured party's interest in proceeds?

 

 

Which of the following refers to the right of a corporation or its shareholder to purchase any shares of stock offered for resale by a shareholder within a specified period of time?

 

 

The Truth in Lending Act regulates _____.

 

 

Victoria is a sales agent for Market Enterprises and sells advertisements based on commissions. Victoria is convinced that she is not receiving all her earned commissions. What can she demand that Market Enterprises provide her?

 

 

Which of the following is an amendment to a financing statement stating that the debtor has no obligation to the secured party?

 

 

An agent's duty of _____ to the principal includes the agent's obligation to perform the duties as specified in the agency agreement.

 

 

A director who is not an officer or an employee of the corporation is known as what kind of director?

 

 

Which of the following include accounts, goodwill, and literary rights that can all be subject to security interests?

 

 

In which of the following types of attempted corporate takeovers does an aggressor offer to pay cash to targeted shareholders?

 

 

The Age Discrimination in Employment Act (ADEA) prohibits employers from refusing to hire, discharging or discriminating in the terms and conditions of employment against employees or applicants age _____ or older.

 

 

Which of the following is false regarding a franchise?

 

 

Which of the following laws govern(s) labor-management relations in the United States?

 

 

When directors or officers violate their duty of loyalty, they are _____.

 

 

Which of the following acts covers all public and private employers with fifty (50) or more employees if a person needs to take leave to care for a seriously ill spouse?

 

 

Which of the following is/are federal law(s) regulating the credit industry?

 

 

Which of the following is a business arrangement between the owner of a trade name or trademark and a person who sells goods or services under that trade name or trademark?

 

 

If a new federal governmental agency establishes a website, what will the domain name end with?

 

 

What is an interest in personal property or a fixture which secures payment of an obligation?

 

 

Which of the following type of agency exists when a third party reasonably believes, on the basis of the principal's actions, that an agency relationship exists between the principal and another individual?

 

 

Jewel's Fine Jewelry, Inc. (Jewel's) is incorporated in the state of Oklahoma. In Oklahoma, Jewel's would be considered a _____ corporation.

 

 

An agency relationship can be terminated through _____.

 

 

The person or party that holds the interest in the secured property is the _____.

 

 

The person or party that holds the interest in the secured property is the _____.

 

 

When the creditor becomes a secured party with an interest in the collateral, _____ occurs.

 

 

When a debtor uses borrowed money from the secured party to buy the collateral, a(n) _____ interest is formed.

 

 

Overextended Debtor. Dennis purchased a big-screen television from ABC Electronics and financed the purchase through ABC Electronics based on an agreement granting ABC Electronics a security interest in the television and requiring that Dennis make monthly payments. Three months later, Dennis was unable to continue making payments on the television because he had bought a boat, a new car, an expensive engagement ring for his girlfriend, and some other items. The manager from ABC Electronics called and asked Dennis to return the television. Dennis refused on the basis that ABC Electronics never perfected its interest in the television. Which of the following is the correct term for designating the effect of Dennis's failure to continue making payments?

 

 

Which of the following can be considered after-acquired property?

 

 

Which of the following is an amendment to a financing statement stating that the debtor has no obligation to the secured party?

 

 

What type of paper indicates both a monetary obligation and a security interest in specific goods?

 

 

If a debtor defaults, what type of court order does the secured party need to take possession of the collateral?

 

 

Repossession. Tina sold used vehicles. She sold a used pick-up truck to Joan and a used convertible to Barry. She properly obtained a security interest in both vehicles. Both Joan and Barry defaulted on payments owed to Tina for the vehicles. Tina told her assistant Samantha that the only legal remedy was repossession; that she was going after the vehicles; and that Samantha should call law enforcement if she did not show up at the office by 10 a.m. for the next few mornings. Tina decided that she would repossess Joan's pick-up at Joan's house. Therefore, Tina slipped into the driveway at midnight one night and started the engine. Joan immediately ran out and confronted Tina. Tina shoved Joan away and drove off in the pick-up truck. Tina was able to repossess Barry's convertible in a public parking lot with no altercation with him. Which of the following is true regarding whether repossession was the only remedy available to Tina?

 

 

The United States Congress made comprehensive changes to bankruptcy law in the _____.

 

 

Which chapter of the Bankruptcy Code is used for the sale of a debtor's assets by a trustee and the distribution of money to creditors?

 

 

Which of the following is true regarding the rights of a trustee in a Chapter 7 bankruptcy?

 

 

A(n) _____ takes over administration of the debtor's estate.

 

 

Which of the following types of bankruptcy occurs when a debtor turns over all assets to a trustee?

 

 

Which of the following is a meeting of all the creditors listed in the Chapter 7 required schedule for liquidation?

 

 

Which type of payment does an insolvent debtor make that gives preferential treatment to one creditor over another creditor?

 

 

Which of the following is an agreement by which the debtor agrees to pay a debt even though it could be discharged?

 

 

Which of the following is true regarding the number of creditors who must vote to accept a Chapter 11 reorganization plan?

 

 

Collateral is the property that is subject to the security interest, and may include intangibles. Intangibles include _____.

 

 

Under which of the following does a principal give authority to an agent only for the specific areas or purposes listed in the agency agreement?

 

 

High Maintenance. Paul, who runs a retail jewelry store, went with Jane, to whom he was engaged to be married, to a wholesale jewelry store. Paul had no express, written agreement with Jane by which she was his agent. In fact, Paul had told Jane not to buy anything at the store. The wholesale jeweler, Pam, asked Paul if Jane was buying for him. Paul did not want to embarrass Jane so he nodded in agreement. A few minutes later Paul reminded Jane, outside the hearing of the wholesaler, that she should not make any purchases. Paul and Jane had a big disagreement over money that evening, and Jane broke off their engagement. The next day Jane went back to the wholesale jeweler and purchased a string of pearls for $2,000. Jane also purchased a fur jacket for $3,000 from a store owned by Harry that was next door to the jewelry store. She told Harry that Paul wanted a fur jacket for a model in his store and that Paul would be glad to pay Harry for the jacket. Which of the following is the most likely result if Harry sues Paul for the price of the jacket?

 

 

If a principal agrees to hire no other agent for a period of time or until a particular job is done, the principal and agent have entered into a(n) ______ agency contract.

 

 

Persons who are not employees but who are hired by employers to perform certain tasks are known as:

 

 

A worker may be classified as an employee if he or she _____.

 

 

Which of the following is an accurate statement regarding the applicability of various laws to the employer-employee and employer-independent contractor relationships?

 

 

Which of the following is the term used to describe the duty an agent has to follow the lawful instruction and direction of the principal?

 

 

A person in a position of trust and confidence is known as a(n) _____.

 

 

When an agency relationship is not contractual or the contract is for personal services, the agent _____.

 

 

In an express agency relationship, the agent has _____ authority.

 

 

In which type(s) of agency is the principal-agent relationship inferred from the conduct of the parties?

 

 

Which of the following is true regarding an agent's liability when the agent commits a tort while acting as an agent for a principal?

 

 

Which of the following is false regarding the relationship between a principal and an independent contractor?

 

 

If a manager has business transactions in one of the European Union countries and wants to terminate an agency relationship, he or she would want to have knowledge of which of the following?

 

 

An agency relationship can be terminated through _____.

 

 

Which of the following is false regarding termination of agency based on operation of law?

 

 

The Big Sale. Christy, the owner of ABC department store, needed to hire a number of employees in a hurry because of a planned big summer sale. Bob was hired by Christy to run a cash register and to assist customers with taking large purchases to their cars. Bob encountered a particularly annoying customer, Frank. Frank started complaining the minute he saw Bob. Frank complained about having to wait for Bob to assist him with carrying his television purchase to his car, the merchandise in the store, and the quality of the store's employees. Bob tried to control himself while he carted Frank's television to the car. The final straw, however, came when Frank told Bob that he should get the earring out of his ear, cut his hair, and act professionally. Bob threw the television to the ground and punched Frank in the nose. Frank investigated and discovered that Bob has just been fired from his last three jobs for violent actions against customers. Two of his former employers are willing to testify that if Christy had called them, they would have disclosed Bob's tendencies to her. Bob listed the former employers on his application, but because she was in a hurry to hire employees, Christy did not take the time to check with the former employers. Another problem confronting Christy during the big sale is that Susie, a long-time employee of Christy's who had never caused any problem before, negligently dropped a box on the foot of Greg, a customer. Greg had to have an X-ray and is threatening to sue both Christy and Susie. Which of the following is true regarding whether Greg has any right of recovery against Susie for his injured foot?

 

 

Which of the following is a false statement regarding the agency relationship?

 

 

Which of the following is the most popular form of business ownership in the United States?

 

 

A voluntary association between two or more persons who co-own a business for a profit is a(n) ________.

 

 

In a ________ partnership, all the partners' liability for professional malpractice is limited to the partnership.

 

 

Which of the following is a correct statement regarding S corporations?

 

 

Which of the following is a recognized type of partnership?

 

 

Peanut Allergy. Kitty, who had a love of baking, decided to open her own bakery. She decided that she did not need and did not want to pay for a lawyer to advise her on different forms of ownership. Unfortunately, Kitty had not paid attention in business law class. She proceeded, with little thought, to simply open her business called Kitty's Baking. Bobby came in to order some cookies for his girlfriend, Bitsy, who was allergic to peanuts. Bobby told Kitty that he needed some cookies for Bitsy but that Bitsy had allergies to peanuts. Kitty told him not to worry because she would make up a special batch just for him. Kitty had hired some assistants because she was so busy. She told an assistant, Cathy, to make up several batches of cookies for different customers including Bobby and to leave out the peanuts in Bobby's order. Cathy, however, forgot the instruction and proceeded to make Bobby's cookies with crushed peanuts. Bobby picked up the cookies and gave one to Bitsy in the car while they were on the way to the movie in Bobby's new car. Bitsy became violently ill, vomited in Bobby's car, and had to have her stomach pumped. Bobby and Bitsy sought recovery from Kitty who told them that Bitsy's doctor bill and Bobby's car cleaning bill were business debts, that the business was new and not making any money at the moment, and that she had no personal liability. Following the incident involving Bobby and Bitsy, Kitty discussed with her parents her problems with the bakery. Kitty's parents would like to invest in her business and share in any profits, but they do not want to share in the management responsibilities. What type of business did Kitty initially set up?

 

 

What is a written agreement that creates a partnership called?

 

 

A partnership in which the partners divide profits and management responsibilities and share unlimited personal liability for the partnership's debts is called a ________.

 

 

Which of the following was the result on appeal in Colette Bohatch v. Butler & Binion, the case in the textbook in which the plaintiff, the partner in a law firm, sued after she was expelled from the partnership following her complaint that one of the other partners was overbilling a client?

 

 

Which of the following is true regarding corporations other than S corporations?

 

 

Peanut Allergy. Kitty, who had a love of baking, decided to open her own bakery. She decided that she did not need and did not want to pay for a lawyer to advise her on different forms of ownership. Unfortunately, Kitty had not paid attention in business law class. She proceeded, with little thought, to simply open her business called Kitty's Baking. Bobby came in to order some cookies for his girlfriend, Bitsy, who was allergic to peanuts. Bobby told Kitty that he needed some cookies for Bitsy but that Bitsy had allergies to peanuts. Kitty told him not to worry because she would make up a special batch just for him. Kitty had hired some assistants because she was so busy. She told an assistant, Cathy, to make up several batches of cookies for different customers including Bobby and to leave out the peanuts in Bobby's order. Cathy, however, forgot the instruction and proceeded to make Bobby's cookies with crushed peanuts. Bobby picked up the cookies and gave one to Bitsy in the car while they were on the way to the movie in Bobby's new car. Bitsy became violently ill, vomited in Bobby's car, and had to have her stomach pumped. Bobby and Bitsy sought recovery from Kitty who told them that Bitsy's doctor bill and Bobby's car cleaning bill were business debts, that the business was new and not making any money at the moment, and that she had no personal liability. Following the incident involving Bobby and Bitsy, Kitty discussed with her parents her problems with the bakery. Kitty's parents would like to invest in her business and share in any profits, but they do not want to share in the management responsibilities. Which of the following is true regarding Kitty's statement that she had no personal liability?

 

 

Which of the following is false regarding limited liability companies?

 

 

What is the process that allows limited liability companies to do business in states other than the state in which they were formed?

 

 

Typically, the articles of organization of a limited liability company (LLC) include all but the following information?

 

 

A ________ is a business that exists because of an arrangement between the owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark.

 

 

A ________ is a franchise in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory.

 

 

Which of the following is false regarding franchises?

 

 

Which of the following was the result in Cousins Subs Systems, Inc. v. Michael R. McKinney, the case in the textbook in which defendant McKinney asserted in a counterclaim that he was entitled to terminate an agreement requiring that he operate submarine sandwich shops because Cousins Subs Systems, Inc. failed to meet promises it verbally made to him?

 

 

Community Fair. Craig and Melinda are searching for a one-time business opportunity that will enable them to make a sufficient amount of cash to take a really great vacation to Galapagos. They live in a rather small rural community that has not, to date, had a community fair. Craig and Melinda decide to sponsor a fair on a weekend in October and to arrange for exhibits and awards, beauty contests, pie eating contests, food vendors, and amusement rides. The profit to Craig and Melinda will come from ticket sales and from charges to food vendors for the privilege of setting up shop. Apart from some minor skirmishes between Craig and Melinda regarding management rights, preparations go fairly well. When the weekend of the fair arrives, things initially go fairly smoothly. Unfortunately, however, one of the beauty contestants slipped on the runway. An argument broke out during the pie eating contests resulting in angry contestants throwing pies and injuring spectators. Finally, an elderly lady, who was angry because she did not win the prize for the best honey, jabbed the volunteer judge with her cane. All injured parties threaten to sue Craig and Melinda. Craig tells Melinda that she should bear the larger percentage of any damages because the idea for the fair was initially hers, and she obtained all necessary permits. Melinda, on the other hand, tells Craig that he should be wholly responsible for any damages because he was put in charge of all competitions. They can reach no agreement regarding winding up the project and splitting the meager profits, and angrily go their separate ways with no resolution. As she is leaving, Melinda shouts to Craig that as her agent he should have done a better job with security. Which of the following is true regarding any agency relationships between Craig and Melinda?

 

 

A ________ is a partnership agreement in which company members hold transferable shares while all the goods of the company are held in the names of the partners.

 

 

Nails. Mona and her friends Jack and Bobby, all United States citizens, want to open a nail salon in Tennessee. They would all like to avoid personal liability for debts of the business and for wrongful acts of each other. They would also like to avoid taxation as much as possible. Mona is in favor of a corporation and asks if there is any problem with that form of business. Jack and Bobby say that they want to receive profit distributions and that they are concerned about excessive taxation with a corporation. Jack and Bobby urged the formation of a partnership even in the face of personal liability. Mona did some research and suggested an S corporation to Jack and Bobby. Would the proposed business qualify as an S corporation if it were incorporated in Delaware?

 

 

If a corporation acts beyond its express and implied powers, the act is called a(n) _____ act.

 

 

Nails. Mona and her friends Jack and Bobby, all United States citizens, want to open a nail salon in Tennessee. They would all like to avoid personal liability for debts of the business and for wrongful acts of each other. They would also like to avoid taxation as much as possible. Mona is in favor of a corporation and asks if there is any problem with that form of business. Jack and Bobby say that they want to receive profit distributions and that they are concerned about excessive taxation with a corporation. Jack and Bobby urged the formation of a partnership even in the face of personal liability. Mona did some research and suggested an S corporation to Jack and Bobby. Are Jack and Bobby correct that tax liability will likely be greater with a corporate form of business (not an S corporate form) and why?

 

 

________ corporations generally do not offer stock to the public.

 

 

Owners of _____________ stock own a portion of a corporation but do not enjoy any preferences.

 

 

Who begins the corporate creation and organization process by arranging for necessary capital, financing, and licenses?

 

 

Which of the following is generally the only duty of an incorporator?

 

 

A(n) ________ is an individual who applies to the state for incorporation on behalf of a corporation.

 

 

A director may be removed _____.

 

 

________ own(s) the corporation.

 

 

Typically, how are corporate directors chosen?

 

 

While ordinary corporate decisions made by directors require a ______ vote, more important decisions sometimes require a _____ vote.

 

 

Kite Sales. Wendy is president of ABC Kites, a business that manufactures kites. Her company's kites are sold to large toy stores. After Wendy learned a great deal about kites, she started to make kites at home and to promote them to large toy stores. She also started selling kites to friends. Some of the directors learned about her kite sales and accused her of wrongdoing. Wendy denied any wrongdoing. What remedy, if any, will be imposed on Wendy for her home kite sales?

 

 

Decisions of courts in _____ have a significant impact on issues involving matters such as shareholder rights because more than one-half of all publicly traded corporations in the United States are incorporated there.

 

 

________ stock has a fixed face value noted on the stock certificate.

 

 

Which of the following is a false statement regarding the liability of directors and officers for criminal behavior?

 

 

When the government or private parties get a court order to dissolve a corporation, it is a(n) ________.

 

 

Which of the following may be issued to shareholders as proof of ownership in the corporation?

 

 

When the directors or shareholders of a corporation initiate dissolution procedures, it is a(n) ________.

 

 

A(n) ________ occurs when a group within a corporation, usually management, buys all outstanding corporate stock held by the public.

 

 

The Securities and Exchange Commission is headed by how many individuals?

 

 

Which of the following legislation regulates how companies issue corporate securities?

 

 

________ regulate(s) securities transactions.

 

 

How are the heads of the Securities and Exchange Commission chosen?

 

 

________ are financial instruments such as stocks or bonds which are issued by corporations to raise capital for corporate expansion.

 

 

The United States Congress passed the ________ in reaction to the mistrust of securities transactions before the Great Depression.

 

 

A person who controls, is controlled by, or is in common control with the issuer is known as a(n):

 

 

Which of the following is a written document filed with the Securities and Exchange Commission that contains a description of a security and other financial information regarding the company offering the security?

 

 

In Trouble. Bruno, an issuer of stock, may be in trouble. He sold stock in a new health club venture before the effective date of registration. He did so because he was in financial trouble involving other ventures of his and needed additional funds. Bruno thought that the health club venture would be such a success that he would never get caught in regard to the stock sale. Unfortunately, he was wrong. The health club venture was going very poorly and investors were looking for some way to hold Bruno responsible. Another problem Bruno has is that he inflated information regarding the prospects of the health club in the prospectus. Investors bitterly complained. Rick, a new lawyer, told Bruno that as far as he knew, the Securities and Exchange Commission (SEC) could fine Bruno under the Securities Act of 1933 but could not send him to jail. Bruno told Rick that was good news and that no one should feel sorry for the investors because none of them made any effort to check on information contained in the prospectus or to investigate the future profitability of the health club venture. Bruno says that he plans to rely on the due diligence defense. Bruno also asks Rick if he is aware of any other defenses. Bruno says that he has never previously been in trouble with the SEC. Is Rick correct in that the SEC would have no authority to send Bruno to jail?

 

 

Which of the following refers to a defense that requires the defendant to demonstrate that he or she investigated the registration statement and had reasonable grounds to believe that the statement was accurate?

 

 

Which of the following refers to the time period that begins when the Securities and Exchange Commission declares the registration statement effective and ends when the issuer sells all securities offered or withdraws them from sale?

 

 

According to Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, which of the following constitute(s) a material omission or misrepresentation during a securities transaction?

 

 

Why did the United States Congress pass the Private Securities Litigation Reform Act of 1995?

To provide protection to companies who issue forecasts of earnings.

 

 

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. Which of the following would describe Frank in providing information about the asset sale to George?

 

 

Presidential Profits. Linda was president of a publicly traded tractor company, Tough Tractors. Linda became aware that stock in her company would likely increase significantly in value because her company had a contract to purchase the assets of Rough Tractors. The boards of both companies wanted the information kept confidential until the purchase was complete and a news release was made. Before the news was made public, Linda immediately purchased a significant number of shares in Tough Tractors. Linda also told her friend Frank about the contract to purchase assets. Frank, who knew that the information was not public, told his brother, George. Frank and George purchased a number of shares of stock in Tough Tractors prior to any public announcement of the sale. After the public announcement was made and the purchase of assets went through, Linda, George and Frank, all sold their shares in Tough Tractors and made a significant profit. Which of the following would describe Frank in receiving the information from Linda and acting upon it?

 

 

Which of the following was the result on appeal in United States v. Carpenter, the case in the textbook in which it was claimed that federal securities law was violated by a scheme by which confidential information gained in the course of obtaining news material for the Wall Street Journal was sold to stockbrokers?

 

 

Which of the following was the result on appeal in Securities and Exchange Commission v. Texas Gulf Sulphur Co, the case in the textbook in which it was alleged that corporate employees possessed inside information involving the likelihood of a major mineral find precluding them from trading in their company's stock?

 

 

The United States Congress passed the ________ in an effort to prevent the exploitation of small investors.

 

 

Which of the following organizations are excluded from the Investment Company Act's definition of an investment company?

 

 

What type of law is created by administrative agencies involving applications, licenses, permits, available information, hearings, appeals, and decision-making?

 

 

What types of powers do administrative agencies have?

 

 

Which type of agency is generally defined as any body created by the legislative branch to carry out specific duties?

 

 

Four Paws Protection. The United States Congress created a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was enacted naming the agency the "Animal Protection Commission" and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate. Which of the following is the correct term for legislation passed by Congress specifying the name, functions, and specific powers of the Animal Protection Commission?

 

 

A binding decision issued by an administrative law judge (ALJ) is known as a(n) _____.

 

 

New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed except for cause. Additionally, no more than a majority of the commissioners may be from the same political party. Her agency is getting ready to issue rules. The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules. Debby's boss, Blaire, gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process. Blaire also told her that at this point she was not very interested in hybrid rule making. Which of the following is the appropriate agency classification for the Accounting Commission?

 

 

What usually happens to decisions of administrative law judges that are appealed to the federal court system?

 

 

Which of the following are rules of an agency that are policy expressions having the effect of law?

 

 

Four Paws Protection. The United States Congress created a new agency to more closely regulate testing of personal and cosmetic products on animals. Legislation was enacted naming the agency the "Animal Protection Commission" and setting forth the function of the agency and its specific powers. Congress provided the agency with the power to make rules, investigate violations, and adjudicate charges of wrongdoing. The agency proceeded to properly give notice and issue rules. The rules provided for civil as well as for criminal penalties. Agency personnel issued an order for Fluffy Shampoo Corporation to attend a hearing regarding its animal testing and to bring to the hearing all company documents pertaining to animal testing. Fluffy Shampoo resisted on the basis that the agency had no power to compel its attendance at a hearing or to require it to provide any documents. Fluffy Shampoo also claimed that criminal penalties may not flow from violation of agency rules. The agency proceeded to issue a ruling that Fluffy Shampoo cease all activity based upon its refusal to cooperate. Which of the following is true regarding the claim of Fluffy Shampoo that the agency had no power to compel attendance and the provision of documents?

 

 

Which of the following are rules that explain how the agency views the meaning of the statutes for which the agency has administrative responsibility?

 

 

Which of the following is a federal executive agency?

 

 

Executive agencies tend to focus on _____ regulation, whereas independent agencies are more often focused on _____ regulation.

 

 

Agencies that have characteristics of both executive and independent agencies are known as _____ agencies.

 

 

New Agency. Debby just got a job as an assistant in a new federal agency called the Accounting Commission that was set up to regulate the accounting and auditing profession. The agency is headed by commissioners who serve for fixed terms and cannot be removed except for cause. Additionally, no more than a majority of the commissioners may be from the same political party. Her agency is getting ready to issue rules. The enabling legislation that set up the Accounting Commission specified that the agency could make rules but said nothing about the form of the rules. Debby's boss, Blaire, gave her some proposed rules and asked her to be sure that they were published and to take care of the next step in the approval process. Blaire also told her that at this point she was not very interested in hybrid rule making. Which of the following would be the appropriate location for publication of the proposed rules?

 

 

Which of the following are activities in which agencies may be involved?

 

 

A(n) _____ rule is a rule that does not create any new rights or duties but is merely a detailed statement of an administrative agency's interpretation of an existing law.

 

 

Disappointed Applicant. Polly, who had a regular driver's license to operate an automobile, decided that she really wanted to drive a tractor-trailer truck. She thought that it would be nice to earn money while seeing the country. Polly had all applicable training and went to her state's department of motor vehicle office to take the test required in order to obtain a license to drive a tractor-trailer truck. While taking the test, in an effort to relieve stress, Polly was stretching her neck and looking around at the other nervous test takers. The proctor for the exam saw her and accused her of stretching and straining to look at the exam answers of other test takers. Her application to drive a tractor-trailer was denied. The local agency department head was also furious with Polly and proceeded to revoke her regular automobile driver's license as well. Applicable statutes provide as follows: (1) "the DMV may suspend or revoke the privilege of any person to operate a motor vehicle upon any of the grounds which authorize the refusal to issue a license"; (2) "the DMV may refuse to issue a license to any person who has 'committed any fraud in any application.'" Polly hears that you have just finished business law and asks for advice. She says that she had decided that she does not really want to drive a tractor-trailer truck because of her neck problems but that she really would like to have her license to operate a regular automobile reinstated. Assuming Polly seeks to appeal revocation of her license to drive an automobile through any available avenues, what is the most likely result?

 

 

Under the Privacy Act, an individual may have the right to:

 

 

According to the United Nations and as discussed in the textbook, which of the following is true regarding e-government, meaning the delivery of government services through digital information technologies including the Internet?

 

 

According to the _____ doctrine, an employee may be fired for almost any reason.

 

 

Through which of the following theories can an employee-plaintiff prove discrimination under Title VII of the Civil Rights Act of 1964?

 

 

Which of the following organizations are covered by Title VII of the Civil Rights Act of 1964?

 

 

Title VII of the Civil Rights Act of 1964 applies to employers who have _____ or more employees for _____ consecutive weeks within one year and who are engaged in a business that affects commerce.

 

 

Surprise Arrival. Gracie was surprised and pleased to find she was pregnant. She worked as a waitress at Good Food and was aware that Groucho, her employer, had allowed employees who were ill for reasons that were not work related to take paid time off. For example, her friend Craig was off with pay for two months after suffering a mild heart attack, and her friend Bonnie was off work for three months when she ran her personal watercraft into a dock and broke her leg. Gracie told her employer Groucho about her pregnancy. He very angrily told her that pregnancy was completely voluntary, that he was not paying her a dime when she was off work, and that she would be lucky if he even allowed her to continue working at all because she would not be as cute when she gained weight. He also said that he serves families, and he does not want the kids to ask embarrassing questions of their parents regarding Gracie's condition. Gracie was very angry and threatened to sue. Groucho told her, however, that he had business law back in 1980 and that discrimination based on pregnancy is not even covered by Title VII. The employee handbook did not address the issue. What will be the likely result if Groucho defends on the basis that customers will object to Gracie's condition?

 

 

Styling Shenanigans. Candy, who operated a hair and nail salon called "Up Sweep," had a crush on Bruce, a stylist there. He paid her no attention. Finally, Candy told him that to get her approval of his new blow dryer request, he needs to take her on a date and give her a kiss. Bruce reluctantly did so. When they returned to work, Candy proceeded to make suggestive comments to Bruce in front of other employees and to request that he rub her shoulders. When she passed Bruce's station, she would caress him while he worked. Candy also decided that Robert was cute, and she showered him with the same type of attention. Robert enjoyed the attention, but Bruce was offended and filed a claim against Candy for sexual harassment. Bruce asked Robert to join in on the claim. Robert said that it personally never bothered him; but that if Bruce can collect, then he wants in on the action. Bruce told Robert that he is going to see a psychologist to substantiate his claim and that Robert should consider doing likewise. Robert tells him that he has no interest in seeing a psychologist but that his case is as strong as Bruce's. Robert says that while he found Candy entertaining, in all fairness, he should be able to recover if Bruce does so. What type of harassment was involved in Candy's indication to Bruce that if he wanted a new blow dryer, then he needed to take her out on a date?

 

 

Which of the following is true regarding discrimination based on sexual orientation?

 

 

Styling Shenanigans. Candy, who operated a hair and nail salon called "Up Sweep," had a crush on Bruce, a stylist there. He paid her no attention. Finally, Candy told him that to get her approval of his new blow dryer request, he needs to take her on a date and give her a kiss. Bruce reluctantly did so. When they returned to work, Candy proceeded to make suggestive comments to Bruce in front of other employees and to request that he rub her shoulders. When she passed Bruce's station, she would caress him while he worked. Candy also decided that Robert was cute, and she showered him with the same type of attention. Robert enjoyed the attention, but Bruce was offended and filed a claim against Candy for sexual harassment. Bruce asked Robert to join in on the claim. Robert said that it personally never bothered him; but that if Bruce can collect, then he wants in on the action. Bruce told Robert that he is going to see a psychologist to substantiate his claim and that Robert should consider doing likewise. Robert tells him that he has no interest in seeing a psychologist but that his case is as strong as Bruce's. Robert says that while he found Candy entertaining, in all fairness, he should be able to recover if Bruce does so. Of which of the following types of harassment were Candy's caresses and suggestive statements?

 

 

Dogs and Formals. Paul owns a dog grooming business and needs patient people to work there. He gives all applicants a test he obtained from a management firm that has been proven to measure psychological traits such as patience. Penny alleges sex discrimination after she fails the test miserably and Paul refuses to hire her. Paul tells her that there is no way he is giving her a dime because he is entitled to protect his client's dogs. Upon learning that her state lacked a state office representing the Equal Opportunity Commission, Penny immediately sues him in federal court alleging a violation of Title VII. Paul, who is getting tired of the dog grooming business, also opens a new formal wear shop and needs to hire employees there as well. He wants to appeal to high school and college-age young ladies attending proms and formals. Paul decides that he does not want older sales clerks to assist in choosing formal dresses. He only wants young, attractive ones. Paul runs an ad in the local paper seeking applicants for sales clerks and stating that a qualification for the job is computer training while in high school. Tina, age 60, applies and tells Paul that while she sees no reason that computer training should be required, she attended computer training in adult education and has excellent computer and sales skills. Paul refuses to hire her, telling her that unless he follows the ad, he may be seen as practicing discrimination. Deciding that formal wear is more trouble than dogs, Paul shuts down the formal wear store. Which of the following is true involving Paul's plan to require computer training in high school in order to eliminate older workers?

 

 

Which of the following is true regarding the rights of employees who smoke?

 

 

The Fair Labor Standards Act mandates that employees who are not excluded from its coverage and who work more than _______ hours in a week be paid no less than one and one-half times their regular wage for all the hours beyond ________ that they work during a given week.

 

 

When is an employer not required to offer an employee the option to continue medical benefits under the Consolidated Omnibus Reconciliation Act (COBRA)?

 

 

Which of the following is a false statement regarding the Federal Unemployment Tax Act?

 

 

Multiplication. Phyllis, who is 30 years old, works for We Add for You Accounting. Phyllis has worked there for a number of years and is considering quitting in order to spend more time with her three active triplets, Sunny, Fussy, and Perky. She asks her boss, Bolivar, about the pension plan at We Add for You. Her boss tells her that she is not entitled to that information until she is at least 60 years old. Phyllis also asks about retaining her medical insurance protection if she quits and is told that she would have no right to do so. Bolivar also throws in that he has been monitoring her conversations and that he particularly enjoys the conversations between her and her single female friends involving failed dating experiences. He asks her to keep those up. Phyllis tells him that her personal phone calls are none of his business. Bolivar says that he can listen if he wants because the phones are his. Phyllis ends up starting her own company called We Multiply for You, and makes much, much more money. (In answering the following questions, assume all federal laws apply and that any pension and medical plan qualifies for regulation under federal law.) Assuming Phyllis quits, which of the following rights does she have under federal law to retain benefits so long as the benefits are provided to employees who are still working?

 

 

The _____ Act is a federal law regulating the payment of wages and overtime.

 

 

The _____ Act regulates workplace safety.

 

 

Which of the following is false under federal law regarding employer monitoring of employee telephone calls?

 

 

Which of the following is an accurate statement regarding the extent to which the National Labor Relations Act (NLRA) protects the rights of employees to act together to address conditions at work?

 

 

Which of the following is the form that verifies the identity and eligibility of all individuals hired in the United States?

 

 

The _____ Act is also known as the Labor-Management Relations Act.

 

 

_____ property consists of the fruits of one's mind.

 

 

The right to enter onto property to remove underground materials is included in the ownership of _____ rights.

 

 

Which of the following is the legal process by which a transfer of property is made by a governmental entity against the protest of the property owner pursuant to the Takings Clause of the Fifth Amendment to the United States Constitution?

 

 

Easement Dispute. Sally buys a house from Bob that borders on a lake. Her deed gives her the most complete estate a person may have. She is in her bathing suit sunning one day when her neighbor, Fred, cuts through her yard. Sally tells him not to do that anymore. Fred informs her that he had previously purchased and properly recorded a right to cut across her yard to get lake access. Sally asks you what she should do to try to get rid of Fred because she doesn't like his cutting through her yard when she is sunning. What is the best advice you can give Sally regarding getting rid of Fred?

 

 

A future interest usually exists in conjunction with a(n) _____ or a(n) _____.

 

 

A(n) ______ is the right to go onto someone's land and take part of the land or a product of it away from the land.

 

 

The owner of a ______ possesses the same interest as the owner of a fee simple absolute, except that this interest is subject to a condition that may result in termination of the interest.

 

 

Tangible property includes:

 

 

Which of the following is/are needed for a valid gift?

 

 

Property that the original owner has discarded is ______ property.

 

 

What is the term for a gift that is made in contemplation of one's immediate death?

 

 

Which of the following describes property that the true owner has intentionally placed somewhere but has forgotten its location?

 

 

Which of the following was not a factor the court considered in the Toys "R" Us, Inc. v. Canarsie Kidde Shop, Inc. case in determining whether "Kids 'r' Us" infringed on the "Toys 'R' Us" mark?

 

 

Which of the following is an incorrect statement regarding trade-secret protection?

 

 

Scuba Diving. Marcy invented a new type of mask for scuba divers that was not subject to fogging. She agrees to allow Jenny to manufacture and sell the mask. She receives a sum of money for every mask that Jenny sells. Similarly, Marcy entered into an agreement with Frank to allow him to sell the masks, but only if he also purchased non-patented diving suits from Marcy. All parties proceeded to do very well with their sales. In the context of intellectual property law, payments that Marcy receives from Jenny for the sale of the mask are referred to as which of the following?

 

 

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research?

 

 

Scuba Diving. Marcy invented a new type of mask for scuba divers that was not subject to fogging. She agrees to allow Jenny to manufacture and sell the mask. She receives a sum of money for every mask that Jenny sells. Similarly, Marcy entered into an agreement with Frank to allow him to sell the masks, but only if he also purchased non-patented diving suits from Marcy. All parties proceeded to do very well with their sales. Marcy's agreement with Jenny allowing Jenny to sell the mask is referred to as which of the following?

 

 

Which of the following is a correct statement regarding trade-secret protection under common law?

 

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following is the term for the order issued by the Federal Trade Commission requiring Katie to stop advertising and selling the pills?

 

 

________ laws are statutes or administrative rules serving to protect consumer interests.

 

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. If a company violates a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts, which of the following is the fine that the Federal Trade Commission may impose?

 

 

The Federal Trade Commission considers ________ abusive action by telemarketers.

 

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following are generalities and clear exaggerations allowed by the Federal Trade Commission?

 

 

Which of the following is a false statement regarding the Telephone Consumer Protection Act of 1991?

 

 

When an advertisement is true but incomplete, it is ________.

 

 

________ is a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue.

 

 

________ is the practice of advertising with claims that mislead or could mislead a reasonable consumer.

 

 

Regarding door-to-door sales, which of the following is required by the Federal Trade Commission's Cooling-Off Rule?

 

 

Which of the following is/are federal law(s) regulating the credit industry?

 

 

Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however, and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Federal Trade Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and any other vehicles Barry offered for sale. Under the Truth in Lending Act what type of information should Kathy have received from ABC Bank?

 

 

The Truth in Lending Act applies to ________.

 

 

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ______.

 

 

Which of the following debt collection practices is/are prohibited by the Fair Debt Collection Practices Act?

 

 

To be subject to the Truth in Lending Act, a loan must be for ______ unless it is secured by a mortgage on real estate.

 

 

________ Act was the first federal legislation regulating food and drugs.

 

 

The ________ conducts investigations into the safety of motor vehicles.

 

 

Expressed agency is also known as agency by _______.

 

 

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research?

 

 

Which of the following is the first step in a three-step process of proving disparate-treatment discrimination in employment under Title VII of the Civil Rights Act of 1964?

 

 

Investment banking firms that purchase securities from the issuing corporation with the intent to sell them to brokerage houses are known as ________.

 

 

The Age Discrimination in Employment Act (ADEA) was enacted to prohibit employers from _____ older workers.

 

 

Accredited investors include:

 

 

Which of the following is a way in which a gift differs from a purchase as a way of transferring ownership?

 

 

_____ protects employees against discrimination and harassment based upon race, color, religion, national origin, and sex.

 

 

Which of the following legislation oversees the purchase and sale of securities?

 

 

Which of the following is defined as the series of legal steps a secured party takes to protect its rights and collateral from other creditors who wish to have their debts satisfied through the same collateral?

 

 

When a debtor sells collateral, he or she receives _____, something that is exchanged for collateral.

 

 

Which of the following is a person who has a duty to act primarily for another person's benefit?

 

 

The principal-employer holds _____ liability for any harm caused by the agent-employee during the time that the agent-employee is working for the principal.

 

 

Which of the following permits qualified issuers to register securities they will sell "off the shelf" on a delayed or continuous basis in the future?

 

 

A _____ letter is provided to a plaintiff if the Equal Employment Opportunity Commission decides not to sue on behalf of the plaintiff.

 

 

Chocolate Chips. Molly makes great chocolate chip cookies and sells them. She calls them "Molly's Famous Chocolate Chips." Some of her friends are interested in selling her cookies. They want to use her name and identify the cookies as "Molly's Famous Chocolate Chips." Molly says, however, that she does not have enough time to bake any more cookies. She agrees, for a price, to allow her friends to use her recipe and her name. Suzette, one of Molly's friends who was selling the cookies, was not being sufficiently careful and negligently put a harmful ingredient into the cookie dough resulting in a customer, Fred, becoming ill. Fred threatens to sue both Suzette and Molly. Molly is so exasperated that she cancels all the franchise contracts on the basis of aggravation although the franchise agreements provided that so long as requirements were met, the franchise agreements were good for a period of two years, Molly took the position that the cookies involved a personal service and that she could not be held liable for discontinuation. Will Molly likely be held liable to Fred?

 

 

Which of the following is a moratorium for almost all creditor litigation against a debtor in a Chapter 7 bankruptcy proceeding?

 

 

The _________ Act governs the issuance of credit reports.

 

 

Which of the following is a way that a corporation can avoid double taxation?

 

 

Which of the following legislation directed Securities and Exchange Commission oversight of the Public Company Accounting Oversight Board to regulate public accounting firms?

 

 

________ is the requirement that advertisers have a reasonable basis for claims made in their advertisements.

 

 

Land and everything permanently attached to it are known as _____ property.

 

 

A ________ is a statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law.

 

 

A(n) _____ is an order to appear and bring specified documents.

 

 

A _____ transaction is a transaction in which the payment of a debt is guaranteed by the debtor's personal property owned by the debtor.

 

 

A limited partnership is an agreement between at least _____ general partner(s) and ______ limited partner(s).

 

 

In order to be upheld in court, an agency's fact finding must be supported by which of the following?

 

 

If your credit card is stolen and you notify the credit card company before unauthorized charges are made, for what amount can you be held liable to the credit card company for later unauthorized charges?

 

 

Tutoring Concerns. Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts because they will have to rent tutoring space and purchase computers and supplies. She is also concerned about parents and students who may sue if the students' test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, says their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would likely result in double taxation. What type of arrangement did Wally propose with his suggestion that they share control of the business and split profits equally?

 

 

_____ has the power to create a federal agency.

 

 

Which of the following is true regarding whether a customer's sexual harassment of an employee may result in employer liability under Title VII of the Civil Rights Act of 1964?

 

 

Tutoring Concerns. Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts because they will have to rent tutoring space and purchase computers and supplies. She is also concerned about parents and students who may sue if the students' test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, says their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would likely result in double taxation. Is Wally correct that forming a corporation would likely result in double taxation?

 

 

General credit information is considered obsolete after _____ years.

 

 

The bona fide occupational qualification (BFOQ) defense does not apply to which of the following types of discrimination?

 

 

Which of the following is a provision of the Securities Exchange Act of 1934 that prohibits the use of manipulative and deceptive devices to bypass Securities and Exchange Commission rules?

 

 

Which of the following is a correct statement regarding law governing the incorporation process and corporate taxation?

 

 

Commissioners who serve on the Federal Trade Commission are appointed by the ________ and confirmed by the ________.

 

 

When a company employee or executive uses material inside information to make a profit, he or she is engaging in:

 

 

A person who contracts with another to do something for him but who is not controlled by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking is an _____.

 

 

________ is/are responsible for running the day-to-day business of a corporation.

 

 

Which of the following are debt securities?

 

 

A ______ is the most complete estate a person may have.

 

 

Securities which do not have to go through the registration process include:

 

 

When sellers advertise a low price for an item generally unavailable to the consumer and then push the consumer to buy a more expensive item, they are engaging in ________ advertising.

 

 

By federal law, major credit reporting agencies are required to provide consumers with a free copy of their credit report every ______.

 

 

_____ legislation is a statute that specifies the name, functions, and specific powers of an administrative agency.

 

 

In a limited partnership, who assumes unlimited personal liability for the debts of the partnership?

 

 

A corporation is a ________ corporation in the state in which it is incorporated.

 

 

A(n) ________ is a Federal Trade Commission order requiring that a company stop its illegal behavior.

 

 

In a limited partnership, who has no part in the management of the business?

 

 

When a patent is issued for an object, it gives its holder the exclusive right to produce, sell, and use the object of the patent for __________ years from the date of application.

 

 

Which of the following are examples of collateral?

 

 

An agent's duty of _____ to the principal includes the agent's obligation to perform the duties as specified in the agency agreement.

 

 

_____ directors are also officers or employees of the corporation.

 

 

Which chapter of the Bankruptcy Code is used to reorganize the debtor's financial affairs under the supervision of the bankruptcy court?

 

 

The _____ interprets and enforces the National Labor Relations Act.

 

 

According to the Uniform Commercial Code, a financing statement should include _____.

 

 

Which of the following is a defense that allows an employer to discriminate in hiring on the basis of sex, religion, or national origin if doing so is necessary for the performance of the job?

 

 

State incorporation statutes typically grant the power _____ to corporations.

 

 

Which of the following are examples of securities?

 

 

If corporate directors fail to sue when the corporation has been harmed by an individual, another corporation, or a director, individual shareholders can file a _____ on behalf of the corporation.

 

 

Which of the following is a false statement regarding a partnership?

 

 

What are the three basic types of property?

 

 

When a person decides to go into business on his or her own and is solely responsible for management and profits, a(n) ________ is formed.

 

 

When a principal is classified as a ______ principal, a third party is aware that an agent is making an agreement on behalf of the principal and the third party also knows the identity of the principal.

 

 

To be protected in ____________ use, a trademark must be registered with the United States Patent Office under the Lanham Act of 1947.

 

 

Which of the following are the types of rule making done by agencies?

 

 

In a limited partnership, who assumes no liability for the partnership beyond the capital they have invested?

 

 

Which of the following laws govern(s) labor-management relations in the United States?

 

 

The term ______ refers to the overall appearance and image of a product.

 

 

In which of the following types of cases does a plaintiff attempt to prove that while an employer's policy or practice appears to apply to everyone equally, its actual effect is that it disproportionately limits employment opportunities for a protected class?

 

 

Administrative law consists of both substantive and _____ rules.

 

 

Which of the following references the right of a corporation or its shareholder to purchase any shares of stock offered for resale by a shareholder within a specified period of time?

 

 

An agreement in which the debtor gives a secured interest to the secured party is a(n) _____.

 

 

Tutoring Concerns. Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts because they will have to rent tutoring space and purchase computers and supplies. She is also concerned about parents and students who may sue if the students' test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, says their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would likely result in double taxation. What type of arrangement, if any, would avoid double taxation for the Wally and Sally's endeavor?

 

 

Men and women may be paid different wages under the Equal Pay Act when payment is made pursuant to a ____.

 

 

A corporation is a(n) _____ corporation in states in which it conducts business but is not incorporated.

 

 

`The _____ requires formal rule making when an enabling statute or other legislation mandates all regulations or rules to be enacted by an agency as part of a formal hearing process that includes a complete transcript.

 

 

Which of the following consists of negotiations between an employer and a group of employees so as to determine the conditions of employment?

 

 

Chocolate Chips. Molly makes great chocolate chip cookies and sells them. She calls them "Molly's Famous Chocolate Chips." Some of her friends are interested in selling her cookies. They want to use her name and identify the cookies as "Molly's Famous Chocolate Chips." Molly says, however, that she does not have enough time to bake any more cookies. She agrees, for a price, to allow her friends to use her recipe and her name. Suzette, one of Molly's friends who was selling the cookies, was not being sufficiently careful and negligently put a harmful ingredient into the cookie dough resulting in a customer, Fred, becoming ill. Fred threatens to sue both Suzette and Molly. Molly is so exasperated that she cancels all the franchise contracts on the basis of aggravation although the franchise agreements provided that so long as requirements were met, the franchise agreements were good for a period of two years, Molly took the position that the cookies involved a personal service and that she could not be held liable for discontinuation. What type of arrangement did Molly make with her friends?

 

 

Which of the following rights give preference to shareholders to purchase shares of a new issue of stock?

 

 

A corporation may distribute its income to shareholders through _____.

 

 

Which of the following is true regarding a secured party's interest in proceeds?

 

 

Which of the following is false regarding the employer-employee relationship?

 

 

The Family and Medical Leave Act guarantees all eligible employees up to _____ weeks of unpaid leave during any _____ month period for designated family-related occurrences.

 

 

_____ enables employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive medical, dental or optical benefits have the right to pay to continue receiving benefits for themselves and their dependents under the employer's policy.

 

 

Death of a corporation occurs through which of the following phases?

 

 

Under Title VII of the Civil Rights Act of 1964, which of the following occurs procedurally after an employee-plaintiff establishes a prima facie case in an action alleging disparate-treatment discrimination in employment in the form of an illegal discharge?

 

 

Once a financing statement has been filed with the correct agency, how long is the statement valid without renewal?

 

 

The purpose of the _____ Act is to prevent employers from discriminating against employees and applicants with disabilities.

 

 

Which of the following types of securities represent ownership in a corporation?

 

 

The issuance of a(n) _____ is an example of an administrative agency's investigative powers.

 

 

_____ is the right of a principal to sue an agent to recover any amount assessed against the principal for a breach of contract caused by the agent's negligence.

 

 

Under Title VII of the Civil Rights Act of 1964, a successful plaintiff may be awarded which of the following type(s) of remedies?

 

 

The duration of one's ownership interest and the power one has over using the land depends on the type of ______ one is said to hold.

 

 

Which of the following is a false statement regarding a sole proprietorship?

 

 

A sole proprietor is not personally liable for the obligations of the business.

 

 

To properly register a trademark with the United States Patent and Trademark Office, one must:

 

 

A(n) ________ investor is a private investor who is allowed to accept private securities offerings under certain specific guidelines established by the Securities and Exchange Commission.

 

 

Which of the following is a correct statement regarding trade dress?

 

 

Which of the following describes property that the true owner has unknowingly or accidentally dropped or left somewhere?

 

 

Which of the following is a document a corporation files with the state explaining its organization?

 

 

________ is the use of generalities and clear exaggerations.

 

 

_____ is/are responsible for managing the business of a corporation.

 

 

Which of the following must be satisfied in order for a patent, other than a design patent, to be granted?

 

 

A document that gives an agent the authority to sign legal documents on behalf of the principal is known as a(n) _____.

 

 

________ is the agency responsible for enforcing the Federal Food, Drug, and Cosmetic Act.

 

 

An agent may demand _____ if the agent believes that he or she is not being properly compensated.

 

 

Which of the following is a doctrine used in the context of the principal/employer-agent/employee relationship?

 

 

is a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue

 

 

Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. After receiving several complaints, the Federal Trade Commission (FTC) disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. What kind of objectionable advertising, if any, was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?

 

 

Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however; and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles needed financing in order to do so. After receiving several complaints, the Federal Trade Commission (FTC) disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and also in regard to any other vehicles Barry offered for sale. Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind, but also his sales of all other vehicles?

 

 

is the use of generalities and clear exaggerations.

 

 

Which of the following is true regarding the obligation, if any, of a consumer who discovers that a company has sent the consumer unsolicited merchandise?

 

 

State consumer protection laws prohibiting used-car fraud are known as

 

 

The Truth in Lending Act applies to

 

 

The consumer protection laws against used-car fraud vary from state to state. They are

 

 

requires that sellers disclose the terms of the credit or loan to help consumers compare a variety of credit lines or loans. More important, consumers must be able to understand this disclosure of terms. It applies only to consumer loans.

 

 

When sellers advertise a low price for an item generally unavailable to the consumer and then push the consumer to buy a more expensive item, they are engaging in

 

 

is the practice of advertising with claims that mislead or could mislead a reasonable consumer.

 

 

Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which there has been a recent death because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. After some pesky consumer complaints, the Federal Trade Commission (FTC) and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?

 

 

Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission (FTC), however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Commission disagreed and issued a formal administrative complaint against her. After a hearing, an order was issued by the Federal Trade Commission requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. Which of the following is the term for the order issued by the Federal Trade Commission ordering that Katie stop advertising and selling the pills?

 

 

contains information about an individual's financial transactions, such as payments on credit, debt collection, and other financial information the creditor needs to know about if it is entering a business transaction with the individual

 

 

Telemarketers must do all of the following except:

 

 

is a statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law?

 

 

General credit information is considered obsolete after

 

 

If a credit card company sends a person an unsolicited card in the mail and the card is stolen, for how much can the person be held liable to the credit card company?

 

 

All of these practices are prohibited by consumer protection laws, except

 

 

is an FTC order requiring that a company stop its illegal behavior.

 

 

Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired, but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission (FTC) and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of doing telephone solicitations late at night after people are tired?

 

 

is a form of cease-and-desist order issued by the FTC that applied not only to the product that was the subject of the actions but also to other products produced by the same firm.

 

 

If a person notifies the credit card company of a stolen card before unauthorized charges are made, for how much can the person be held liable to the credit card company for later unauthorized charges?

 

 

The use of generalities and clear exaggerations in advertising is permissible. It is

 

 

Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. After some pesky consumer complaints, the Federal Trade Commission (FTC) and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of offering one flat price for funeral services with no itemization?

Federal law does not prohibit that practice.

 

 

What is an administrative agency?

 

 

How and why are administrative agencies created?

 

 

What types of powers do administrative agencies have?

 

 

What is the difference between an executive agency and an independent agency?

 

 

What is the Administrative Procedures Act?

 

 

How do formal, informal, and hybrid rulemaking differ from one another?

 

 

What are the limits on agency power?

 

 

Administrative law consists of both substantive and _____ rules.

 

 

Administrative law involves all but which of the following?

 

 

Which type of agency is generally defined as any body created by the legislative branch to carry out specific duties?

 

 

What types of powers do administrative agencies have?

 

 

The _____ created the Interstate Commerce Commission (ICC), the first federal administrative agency.

 

 

Due to anticompetitive conduct by railroads, what administrative agency was created?

 

 

What does enabling legislation provide for an administrative agency?

 

 

Today, _____ creates the most rules.

 

 

What rules are designed to explain an agency's views concerning statutes for which the agency has responsibility?

 

 

Leland is trying to determine if an agency's rules have the effect of law. What type of rules would you tell him have the effect of law?

 

 

Which of the following would allow an administrative agency to investigate potential rules or statutory violations?

 

 

Tohima was implicated in a potential scheme to sell false securities. When it came time for Tohima to testify the agency issued a _____ which ordered Tohima to appear and bring with him specific documents.

 

 

What do the initials "ALJ" represent in the context of administrative agencies and administrative law?

 

 

A binding decision issued by an administrative law judge (ALJ) is known as a(n) _____.

 

 

How many people sit on a jury for an administrative hearing?

 

 

What usually happens to decisions of administrative law judges that are appealed to the federal court system?

 

 

An Administrative Law Judge (ALJ) will often try to convince the parties to reach a settlement via a(n) _____.

 

 

The United States _____ appoints administrative heads of executive agencies.

 

 

The United States _____ appoints administrative heads of executive agencies.

 

 

What is the purpose of having an administrative agency?

 

 

A _____ agency does not fall clearly into either independent or executive agency status.

 

 

The Environmental Protection Agency (EPA) is an example of a(n) __________ agency.

 

 

What are the two most common types of rulemaking performed by administrative agencies?

 

 

When does an informal rule become effective?

 

 

What types of statements or notices are general in nature and give guidelines on ways in which an agency intends to proceed with rule making or enforcement activities?

 

 

In _____, each concerned interest group and the agency itself sends a representative to bargaining sessions led by a mediator. After the parties achieve a consensus, that agreement is forwarded to the agency.

 

 

Which of the following is not considered an activity in which an administrative agency may be involved? ______

 

 

What does the term "FOIA" mean?

 

 

The Government in Sunshine Act requires that _____.

 

 

Under the Privacy Act, an individual may have the right to:

 

 

Which of the following was the result on appeal in Richard D. Kennedy and Sally S. Kennedy v. Chase Manhattan Bank, U.S.A., N.A., the case in the textbook involving whether a bank may obtain an individual's credit report to determine whether to extend credit after providing a prequalified offer for a credit card?

 

Which of the following was the ruling by the United States Supreme Court in Food and Drug Administration Et Al. v. Brown & Williamson Tobacco Corporation Et Al., the case in the textbook involving whether the Food and Drug Administration has jurisdiction to regulate tobacco products?

 

________ laws are statutes or administrative rules serving to protect consumer interests.

 

The United States Congress created the Federal Trade Commission (FTC) through the Federal Trade Commission Act of ________.

 

What type of agency is the Federal Trade Commission?

 

The Federal Trade Commission has ________ commissioners, each of whom serves a ________-year term.

 

Commissioners who serve on the Federal Trade Commission are appointed by the ________ and confirmed by the ________.

 

A ________ is a statement in which a company agrees with the Federal Trade Commission to stop disputed behavior but does not admit it broke the law.

 

A(n) ________ is a Federal Trade Commission order requiring that a company stop its illegal behavior.

 

________ is the practice of advertising with claims that mislead or could mislead a reasonable consumer.

 

________ is the use of generalities and clear exaggerations.

 

When an advertisement is true but incomplete, it is ________.

 

________ is the requirement that advertisers have a reasonable basis for claims made in their advertisements.

 

According to the Federal Trade Commission, a company should not refer to its product as "Made in the USA" unless:

 

When sellers advertise a low price for an item generally unavailable to the consumer and then push the consumer to buy a more expensive item, they are engaging in ________ advertising.

 

________ is a requirement by the Federal Trade Commission that a company run advertisements in which the company explicitly states that formerly advertised claims were untrue.

 

Which of the following is a false statement regarding the Telephone Consumer Protection Act of 1991?

 

The Federal Trade Commission considers ________ abusive action by telemarketers.

 

Registration on the Federal Trade Commission's "Do Not Call" registry lasts ________.

 

Which of the following is a correct statement regarding government regulation of tobacco industry advertising?

 

Which of the following is not a federal law referenced in the textbook that regulates product labeling?

 

Regarding door-to-door sales, which of the following is required by the Federal Trade Commission's Cooling-Off Rule?

 

Which of the following is true regarding the obligation, if any, of a consumer who discovers that a company has sent the consumer unsolicited merchandise?

 

State consumer protection laws prohibiting used-car fraud are known as ________ laws.

 

Which of the following is not a requirement of the Federal Trade Commission's 1984 Used Motor Vehicle Registration Rule?

 

Which of the following is/are federal law(s) regulating the credit industry?

 

The Truth in Lending Act applies to ________.

 

To be subject to the Truth in Lending Act, a loan must be for ________ unless it is secured by a mortgage on real estate.

 

In order for a loan to come within the scope of the Truth in Lending Act, ________.

 

The Truth in Lending Act regulates ________.

 

________ credit permits repeated transactions and assesses a finance charge on unpaid balances.

 

According to the Truth in Lending Act, credit card applications must include ________.

 

If your credit card is stolen and you notify the credit card company before unauthorized charges are made, for what amount can you be held liable to the credit card company for later unauthorized charges?

 

If a credit card company sends you an unsolicited card in the mail and the card is stolen, for what amount can you be held liable to the credit card company?

 

A credit card company may not bill a consumer for a damaged item that is unknowingly purchased with the card if the ________.

 

The Equal Credit Opportunity Act makes it illegal for creditors to deny credit to individuals on the basis of ________.

 

The ________ Act governs the issuance of credit reports.

 

General credit information is considered obsolete after ________ years.

 

Which of the following debt collection practices is/are prohibited by the Fair Debt Collection Practices Act?

 

By federal law, major credit reporting agencies are required to provide consumers with a free copy of their credit report every ________.

 

________ Act was the first federal legislation regulating food and drugs.

 

________ is the agency responsible for enforcing the Federal Food, Drug, and Cosmetic Act.

 

Which of the following is a false statement regarding the Consumer Product Safety Commission?

 

The ________ conducts investigations into the safety of motor vehicles.

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following are generalities and clear exaggerations allowed by the Federal Trade Commission?

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Which of the following is the term for the order issued by the Federal Trade Commission requiring Katie to stop advertising and selling the pills?

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission?

 

Miracle Pill. Katie advertised that she had developed a pill for women that would result in weight loss, wrinkle loss, and improved vitality; and for men would result in all those things, plus hair growth. Her television advertisement showed miracle results allegedly obtained by consumers. Katie cautioned, however, that ingestion of the pill for six months was required before results would be evident. The pill was wildly popular. The Federal Trade Commission, however, investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements. Katie claimed that she was merely involved in the use of generalities and clear exaggerations. The Federal Trade Commission disagreed and issued a formal administrative complaint against her. After a hearing, the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills. After losing all appeals, Katie continued selling the pills until she was fined by the Federal Trade Commission. She has since left the country and cannot be located. If a company violates a cease-and-desist order issued by the Federal Trade Commission and upheld by the courts, which of the following is the fine that the Federal Trade Commission may impose?

 

Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however, and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Federal Trade Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and any other vehicles Barry offered for sale. What kind of objectionable advertising, if any, was Barry engaged in when he offered convertibles for sale for $10,000 but only had three and then tried to convince customers to purchase a much more expensive vehicle?

 

Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however, and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Federal Trade Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and any other vehicles Barry offered for sale. What type of loan was Kathy seeking from ABC Bank?

 

Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however, and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Federal Trade Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and any other vehicles Barry offered for sale. Under the Truth in Lending Act what type of information should Kathy have received from ABC Bank?

 

Convertibles. Barry, a new car dealer, advertised that a new brand of convertible called Wind would be available at his dealership for the price of $10,000 each. He had only three Wind vehicles, however, and when those were sold, he tried to convince shoppers to purchase a much more expensive new convertible at a price of $25,000. Kathy, a customer who decided to purchase one of the more expensive vehicles, needed financing in order to do so. She had $10,000 to pay on the car and sought a loan from ABC Bank for the remainder. She wanted the loan for a specific amount of time. ABC Bank offered her the loan and she agreed. The only information she received from ABC Bank was confirmation that she borrowed $15,000 at an 8% interest rate. After receiving several complaints, the Federal Trade Commission disapproved of Barry's action in regard to the Wind vehicles. Claiming that his advertisement was misleading, the Federal Trade Commission proceeded to issue a cease-and-desist order prohibiting deceptive advertising involving Wind vehicles and any other vehicles Barry offered for sale. Which of the following terms references the cease-and-desist order entered by the Federal Trade Commission involving not only Barry's sales of Wind but also his sales of all other vehicles?

 

The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which a recent death has occurred because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's door-to-door solicitation and his practice of informing customers that there is no backing out of contracts entered into for funeral services?

 

The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which a recent death has occurred because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of making telephone solicitations late at night after people are tired?

 

The Burial Emporium. Fred operates a funeral home called Fred's Burial Emporium. Fred likes to keep things simple. He has one flat price with no itemization and requires that customers purchase a complete package from him if they want any services whatsoever. Fred also goes door-to-door selling funeral packages. He tries to visit neighborhoods in which a recent death has occurred because residents in the neighborhood will have final arrangements on their minds. He believes and informs customers that once customers sign a contract for burial services, there is no backing out. Fred also obtains a good deal of business from phone solicitation. He enjoys calling late at night, between 10 p.m. and 11 p.m., when people are tired but before they go to bed. He believes that if people do not feel well, they are more likely to consider funeral arrangements. After some pesky consumer complaints, the Federal Trade Commission and other federal agencies investigate Fred. He hires a good lawyer with his profits in an attempt to stay out of trouble. Which of the following is true regarding Fred's practice of offering one flat price for funeral services with no itemization?