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 The U.S. Constitution is the supreme law of the United States. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>2.</strong> Common law is a term for social manners and customs that are familiar to most of us. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>3.</strong> A state court can exercise jurisdiction over a nonresident by showing that he or she had minimum contacts with the state. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>4.</strong> To have standing to sue, a party must have been harmed or have been threatened with harm by the action about which he or she complains. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>5.</strong> The roles that women play in some foreign countries may present some difficult ethical problems for firms doing business internationally. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>6.</strong> A battery occurs only if the victim suffers actual physical harm. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>7.</strong> A defendant is strictly liable for the results of his or her acts only if he or she intended those results. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>8.</strong> There are no statutes regulating the use of spam. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>9.</strong> An applicant cannot register a trademark on the basis of an intention to use the mark in commerce. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>10.</strong> A service mark is used to distinguish products produced by the federal government from those produced by private corporations. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>11.</strong> Because the Internet is vast, the unauthorized use of another's mark in a domain name is generally permissible. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>12.</strong> A patent cannot be obtained for a plant or an animal. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>13.</strong> Criminal liability depends on the commission or omission of an act. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>14.</strong> Larceny relies on stealth while robbery relies on fear and force. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>15.</strong> Embezzlement can be committed only by physically taking property from the possession of another. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>16.</strong> A federal judge must adhere strictly to federal sentencing guidelines. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>17.</strong> Three elements-agreement, consideration, and contractual capacity-are sufficient to form a binding contract. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>18.</strong> Parties can form a contract without putting the terms in writing. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>19.</strong> An offer must be communicated by mail or in person. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>20.</strong> A transaction that lacks a bargained-for exchange lacks an element of consideration. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>21.</strong> An accord and satisfaction requires that the amount of a debt must not be in dispute. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>22.</strong> Some states provide for the termination of minority status on marriage. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>23.</strong> A minor who affirmatively misrepresents himself or herself to be an adult will not be able to disaffirm a contract in most states. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>24.</strong> Parents are required by law to provide necessaries for their minor children. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>25.</strong> If a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforceable. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>26.</strong> An expert's false statement to a naive buyer about a technical detail may entitle the buyer to rescind a contract. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>27.</strong> Justifiable reliance on a misrepresentation is an element of fraud. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>28.</strong> Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>29.</strong> Alienation is a transfer of the ownership of land. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>30.</strong> Complete performance occurs when conditions in a contract are fully satisfied. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>31.</strong> The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>32.</strong> Specific performance is the remedy customarily used when there is no actual contract or agreement between two parties. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>33.</strong> To date, most courts have applied traditional common law principles to cases arising in e-commerce. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>34.</strong> Browse-wrap terms are generally enforceable. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>35.</strong> Under the UETA, a signature may be denied legal effect solely because it is in electronic form. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>36.</strong> A principal has a duty to cooperate with the agent. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>37.</strong> Apparent authority exists if a principal causes a third party reasonably to believe that an agent has authority to act. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>38.</strong> Any party who uses an e-agent is bound by the e-agent's actions. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>39.</strong> Wrongful termination of an agency relationship can subject the canceling party to a suit for damages. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>40.</strong> An employer must verify documents establishing a prospective worker's identity and eligibility to work in the United States. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>41.</strong> An employee who leaves a job voluntarily cannot later claim to have been "constructively discharged" on the basis of unlawful discrimination. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>42.</strong> Joint ownership of property in and of itself creates a partnership. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>43.</strong> In winding up a limited partnership, non-partner creditors are paid before the partners receive their capital contributions. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>44.</strong> A limited liability company cannot be taxed as a corporation. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>45.</strong> A business trust is somewhat similar to a corporation. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>46.</strong> Corporate officers hire corporate directors. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>47.</strong> A corporate officer is not expected to be informed on corporate matters. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>48.</strong> Preemptive rights entitle shareholders to bring a derivative suit against the corporation. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>49.</strong> Before filing a registration statement, an issuer must attempt to sell, or at least offer to sell, the securities. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>50.</strong> A corporation whose security does not qualify for an exemption can dispense with the requirement of a registration statement. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>51.</strong> State securities laws apply only to interstate transactions. (Points: 2)<br />       True<br />       False<br /><br /><br /><strong>52.</strong> The U.S. Congress enacts a new federal statute that sets different standards for the liability of businesses selling defective products. This statute applies (Points: 2)<br />       only to matters not covered by state law. <br />       only to those states that adopt the statute. <br />       to all of the states. <br />       to none of the states. <br /><br /><br /><strong>53.</strong> The Uniform Commercial Code has been adopted, at least in part, in (Points: 2)<br />       all states. <br />       45 states. <br />       25 states. <br />       no states. <br /><br /><br /><strong>54.</strong> Household Furnishings, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate (Points: 2)<br />       any commercial activity in the United States that substantially affects interstate commerce. <br />       only activities that are in intrastate commerce. <br />       only activities that are in local commerce. <br />       only activities that are not in commerce. <br /><br /><br /><strong>55.</strong> Cody wants to appeal his case against Digital Corporation to the United States Supreme Court. Cody must ask the Court to issue a writ of (Points: 2)<br />       certiorari. <br />       jurisdiction. <br />       standing. <br />       venue. <br /><br /><br /><strong>56.</strong> Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground that Ohio (Points: 2)<br />       has a sufficient stake in the matter. <br />       has jurisdiction. <br />       has sufficient minimum contacts with the parties. <br />       is a more convenient location to hold the trial. <br /><br /><br /><strong>57.</strong> In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes (Points: 2)<br />       fair or just behavior. <br />       financially rewarding behavior. <br />       legal behavior. <br />       religious behavior. <br /><br /><br /><strong>58.</strong> In making business decisions, Brian, personnel manager for Conservative Investments, Inc., applies his belief that all persons have fundamental rights. This is (Points: 2)<br />       a religious rule. <br />       the categorical imperative. <br />       the principle of rights. <br />       utilitarianism. <br /><br /><br /><strong>59.</strong> Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she (Points: 2)<br />       discloses the truth. <br />       represents as a fact something that she knows is untrue. <br />       states an opinion concerning something that she knows nothing about. <br />       uses puffery. <br /><br /><br /><strong>60.</strong> Molly shoots Norm with Opal's pistol. The proximate cause of Norm being shot is most likely attributable to (Points: 2)<br />       Molly and Opal. <br />       Molly only. <br />       Opal only. <br />       neither Molly nor Opal. <br /><br /><br /><strong>61.</strong> General Construction Company engages in blasting in its operations. This is subject to strict liability because (Points: 2)<br />       blasting is an abnormally dangerous activity. <br />       blasting is a negligent activity. <br />       construction can be done without blasting. <br />       General is a construction company. <br /><br /><br /><strong>62.</strong> George owns Murphy's Grill, a restaurant in a small town in Ohio. Without George's consent, Food Business, Inc., opens a club in New York City called Murphy's and begins to use "murphys" as part of the URL for the club's website. Food Business has committed (Points: 2)<br />       copyright infringement. <br />       patent infringement. <br />       trademark dilution. <br />       none of the choices. <br /><br /><br /><strong>63.</strong> Rory designs a new computer hard drive, which he names "Sci Phi." He also writes the operating manual to be included with each final product. Rory could obtain patent protection for (Points: 2)<br />       the hard drive only. <br />       the name only. <br />       the operating manual only. <br />       the hard drive, the name, and the operating manual. <br /><br /><br /><strong>64.</strong> In 2009, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the work with the appropriate government office. Under federal copyright law, Sara's work is protected (Points: 2)<br />       for ten years. <br />       for twenty years. <br />       for the life of the author plus seventy years. <br />       forever. <br /><br /><br /><strong>65.</strong> Portia, a businessperson, is convicted of RICO offenses. Portia's penalties may include (Points: 2)<br />       dissolution of her business but not forfeiture of its assets or imprisonment. <br />       forfeiture of the business assets but not dissolution of the business or imprisonment. <br />       imprisonment and dissolution of her business but not forfeiture of its assets. <br />       dissolution of her business, forfeiture of its assets, and imprisonment. <br /><br /><br /><strong>66.</strong> Barb allows Candy to enter Barb's warehouse and take a DVD player. Charged with theft, Candy can successfully claim, as a defense, (Points: 2)<br />       consent. <br />       duress. <br />       entrapment. <br />       self-defense. <br /><br /><br /><strong>67.</strong> Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense (Points: 2)<br />       Mary must not have been predisposed to commit the crime. <br />       Nick must have pressured Mary into committing the crime. <br />       Nick must have suggested that the crime be committed. <br />       all of the choices. <br /><br /><br /><strong>68.</strong> Britney promises to deliver a certain couch to Dan, who promises to pay for the service. Britney does not perform. She may be required to (Points: 2)<br />       do nothing. <br />       make another promise. <br />       pay damages. <br />       perform a different service. <br /><br /><br /><strong>69.</strong> Geof offers to sell his Honda for $10,000 to Ilsa, who says, "I'll pay no more than $5,000." Geof says, "Forget it. I changed my mind." Geof's offer was terminated by (Points: 2)<br />       Geof and Ilsa. <br />       Geof. <br />       Ilsa. <br />       the market prices of similar vehicles. <br /><br /><br /><strong>70.</strong> Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 A.M. Monday. A contract is formed if Shopping Stores' acceptance is received (Points: 2)<br />       any time on Monday. <br />       before 10 A.M. Monday. <br />       before 11 A.M. Monday. <br />       within twenty-four hours of 10 A.M. Monday. <br /><br /><br /><strong>71.</strong> Quality Steel Corporation files a suit against Rite Tool Company, claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if (Points: 2)<br />       it is obvious that the consideration is adequate. <br />       Rite Tool asserts that there is adequate consideration. <br />       something of value passed between the parties. <br />       the consideration is worth more than $100. <br /><br /><br /><strong>72.</strong> Don enters into a contract with Emma, who does not have contractual capacity. Don can enforce the contract only if Emma (Points: 2)<br />       elects not to avoid the contract. <br />       is a minor. <br />       is intoxicated or mentally incompetent. <br />       is a minor, intoxicated, or mentally incompetent. <br /><br /><br /><strong>73.</strong> On Tad's 18th birthday, he decides that he no longer wants to keep a car he bought from U-Pick Autos, Inc., when he was 17. His right to disaffirm the deal will depend on (Points: 2)<br />       the car's condition when Tad bought it. <br />       the car's current condition. <br />       whether Tad acts within a reasonable period of time. <br />       whether U-Pick has the right to disaffirm. <br /><br /><br /><strong>74.</strong> National Insurance Company violates a statute when selling an insurance policy to Opal. The policy may be enforced by (Points: 2)<br />       National Insurance only. <br />       National Insurance or Opal. <br />       no one. <br />       Opal only. <br /><br /><br /><strong>75.</strong> Joy induces Kelly to enter into a contract for the purchase of a condominium about which Joy knowingly misrepresents a number of material features. When Kelly discovers the truth, Kelly can (Points: 2)<br />       enforce the contract and seek damages. <br />       enforce the contract but not seek damages. <br />       neither enforce the contract nor seek damages. <br />       seek damages but not enforce the contract. <br /><br /><br /><strong>76.</strong> Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of (Points: 2)<br />       the digital music, the MP3 player, and the speakers. <br />       the MP3 player and the speakers only. <br />       the MP3 player only. <br />       the speakers only. <br /><br /><br /><strong>77.</strong> Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain (Points: 2)<br />       every term. <br />       the essential terms. <br />       the preliminary terms. <br />       the qualitative terms. <br /><br /><br /><strong>78.</strong> Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint. This is most likely (Points: 2)<br />       a complete excuse for Quinn's refusal to pay. <br />       a material breach. <br />       complete performance. <br />       substantial performance. <br /><br /><br /><strong>79.</strong> Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 P.M. and 6 A.M. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been (Points: 2)<br />       absolute. <br />       complete. <br />       conditional. <br />       substantial. <br /><br /><br /><strong>80.</strong> A zoning law that affects the lease will cause its termination. Union City's zoning board adopts a new zoning classification that affects the lease. This adoption satisfies (Points: 2)<br />       no condition. <br />       the condition precedent. <br />       the concurrent condition. <br />       the condition subsequent. <br /><br /><br /><strong>81.</strong> Julio contracts to provide lawn-mowing services to Kevin for $140 per month. Julio cannot transfer this duty (Points: 2)<br />       under any circumstances. <br />       without continuing to be potentially liable. <br />       without Kevin's consent. <br />       without paying Kevin at least one monthly fee. <br /><br /><br /><strong>82.</strong> Outstate Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtain (Points: 2)<br />       an amount in quasi contract. <br />       damages representing restitution. <br />       specific performance of the deal. <br />       nothing more. <br /><br /><br /><strong>83.</strong> High-Tech Services, Inc., and Internet Investments Corporation enter into a con¬tract that would otherwise be subject to the UETA but purports to "opt out." The UETA covers (Points: 2)<br />       none of the contract. <br />       only the part of the contract that concerns computer information. <br />       only the part of the contract that does not concern computer information. <br />       the entire contract. <br /><br /><br /><strong>84.</strong> Omni Products, Inc., and Plenty Sales Corporation transact a deal over the Internet. Their contract does not mention the UETA. The UETA covers (Points: 2)<br />       none of the contract. <br />       only the part of the contract that does not involve e-commerce. <br />       only the part of the contract that involves e-signatures. <br />       the entire contract. <br /><br /><br /><strong>85.</strong> Precision Applications Corporation (PAC) sends an electronic record to Quotient Systems, Inc., a PAC customer. Under the UETA, the record will be considered received when it (Points: 2)<br />       enters Quotient's processing system in a readable form, even if no person is aware of its receipt. <br />       enters Quotient's processing system in a readable form, only if a person is aware of its receipt. <br />       is midway between the parties' processing systems. <br />       passes out of PAC's control. <br /><br /><br /><strong>86.</strong> Sunny is a salesperson for Tech Instruments, Inc. (TI). She misrepresents to Universal Piping Company, a customer, that a certain device has a certain capability. In reliance, Universal buys the device. Liable for this misrepresentation is (Points: 2)<br />       Sunny and TI. <br />       Sunny only. <br />       TI only. <br />       Universal but neither Sunny nor TI. <br /><br /><br /><strong>87.</strong> Ida hires Jim, a real estate broker, to act as her agent to sell her land for $100,000. Oil is discovered beneath the land, causing its market value to increase 100-fold. The agency agreement is likely (Points: 2)<br />       still in force if Ida gives Jim additional consideration. <br />       still in force if Jim does not mention the oil to prospective customers. <br />       terminated by mutual consent of the parties. <br />       terminated by operation of law. <br /><br /><br /><strong>88.</strong> Gus is an employee of Harden Steel Company. Under federal labor law, Gus and other employees have the right to (Points: 2)<br />       bargain collectively with Harden through their representatives. <br />       insist that Harden require union membership as a condition of work. <br />       interfere with the efforts of others to form labor organizations. <br />       refuse to bargain with Harden through their representatives. <br /><br /><br /><strong>89.</strong> Mold & Dye Corporation is a private employer involved in a Title VII employment discrimination suit. Punitive damages may be recovered against Mold & Dye only if the employer (Points: 2)<br />       acted with malice or reckless indifference. <br />       can easily afford to pay the amount. <br />       has one hundred or more employees. <br />       none of the choices. <br /><br /><br /><strong>90.</strong> Energy Resources, LLC, is a limited liability company. Rather than distribute its profits to its members, Energy wants to reinvest the profits in its business. For this reason, Energy may choose to be taxed as (Points: 2)<br />       a corporation. <br />       a franchise. <br />       a partnership. <br />       a sole proprietorship. <br /><br /><br /><strong>91.</strong> Pola and Quint want to form and do business as River Tours Corporation. A corporation can consist of (Points: 2)<br />       no natural persons. <br />       one natural person but not more. <br />       one or more natural persons. <br />       only more than one natural person. <br /><br /><br /><strong>92.</strong> Giant Lift Corporation purchases all of the assets of Heavy Hydraulics Corporation. With respect to Heavy Hydraulics's liabilities, Giant Lift is (Points: 2)<br />       automatically responsible. <br />       not responsible under any circumstances. <br />       responsible if Heavy Hydraulics is a competitor of Giant Lift. <br />       responsible if the sale is actually a merger or consolidation. <br /><br /><br /><strong>93.</strong> Salt Corporation wants to acquire or merge with Pepper Corporation. The board and the shareholders of Pepper are resisting. Salt should (Points: 2)<br />       file a plan of merger with the secretary of state. <br />       file an article of merger with Pepper. <br />       make a tender offer to the shareholders of Pepper. <br />       make a tender offer to the shareholders of Salt. <br /><br /><br /><strong>94.</strong> Flite-Craft Corporation makes and sells aircraft parts. In most states, the minimum number of directors that must be present before Flite-Craft's board can transact its business is (Points: 2)<br />       all of the directors authorized in the articles or bylaws. <br />       a majority of the number authorized in the articles or bylaws. <br />       any odd number. <br />       one. <br /><br /><br /><strong>95.</strong> Nina is a director of Omega, Inc. Under the standard of due care owed by directors of a corporation, Nina's decisions must be (Points: 2)<br />       ambiguous and questionable. <br />       arguable and defensible. <br />       informed and reasonable. <br />       perfect and unassailable. <br /><br /><br /><strong>96.</strong> Odell, Prince, and Quinn are shareholders of Rite Corporation. Before a shareholders' meeting, they agree in writing to vote their shares together in a certain manner. Usually, such agreements are held to be (Points: 2)<br />       invalid and unenforceable. <br />       oppressive and irresponsible. <br />       suspect and voidable. <br />       valid and enforceable. <br /><br /><br /><strong>97.</strong> Mit-E Clean Corporation wants to make an offering of securities to the public. This offering is not exempt from registration under the Securities Act of 1933. Before the firm sells its securities, it must provide investors with (Points: 2)<br />       a forward-looking financial forecast. <br />       an investment contract. <br />       a prospectus. <br />       a road show. <br /><br /><br /><strong>98.</strong> Kirk is the chief financial officer of Lemon Corporation, which is required to file certain financial statements with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Kirk must personally (Points: 2)<br />       certify that the statements are accurate. <br />       delegate the responsibility for preparing the statements. <br />       deliver the statements to the appropriate SEC officer. <br />       prepare the statements. <br /><br /><br /><strong>99.</strong> Bess, an agent for Calm Harbor Marina, Inc., enters into an unauthorized contract with Dropt Anchor Worx, Inc., purportedly on behalf of Calm Harbor, which refuses to perform. Bess is liable to (Points: 2)<br />       Calm Harbor and Dropt Anchor for breach of contract. <br />       Calm Harbor for misrepresentation. <br />       Dropt Anchor for misrepresentation. <br />       no one. <br /><br /><br /><strong>100.</strong> Begin Anew Enterprise, Inc., completes its registration process and begins advertising the availability of its new issue of securities. The firm places a tombstone ad in the financial papers. This ad tells prospective investors (Points: 2)<br />       about investing. <br />       about the company. <br />       where to buy the securities. <br />       where to obtain a prospectus.
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