1. A shareholder in a professional corporation can be liable for malpractice arising from the rendering of professional services. (Points : 2)
2. Jay tells Kim that he will buy her textbook from the last semester for $80. Kim agrees. Jay and Kim have (Points : 2)
an express contract.
3. 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)
4. 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)
to all of the states.
5. Eastside Warehouse offers to sell a forklift to Forest Lumber Company, but it is stolen before Forest accepts. Eastside must obtain (Points : 2)
nothing for Forest, because the theft terminated the offer.
6. Larceny relies on stealth while robbery relies on fear and force. (Points : 2)
7. Giant Lift Corporation purchases all of the assets of Heavy Hydraulics Corporation. With respect to Heavy Hydraulics’s liabilities, Giant Lift is (Points : 2)
responsible if the sale is actually a merger or consolidation.
8. Portia, a businessperson, is convicted of RICO offenses. Portia's penalties may include (Points : 2)
dissolution of her business, forfeiture of its assets, and imprisonment.
9. Household Furnishings, Inc., distributes its merchandise on an interstate basis. Under the commerce clause, Congress has the power to regulate (Points : 2)
any commercial activity in the United States that substantially affects interstate commerce.
10. A Massachusetts state statute imposes a prison term, without a trial, on all street vendors who operate in certain areas. A court would likely hold this statute to be (Points : 2)
unconstitutional under the due process clause.
11. Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For entrapment to be a valid defense (Points : 2)
Mary must not have been predisposed to commit the crime.
12. A defendant is strictly liable for the results of his or her acts only if he or she intended those results. (Points : 2)
13. Parents are required by law to provide necessaries for their minor children. (Points : 2)
14. The roles that women play in some foreign countries may present some difficult ethical problems for firms doing business internationally. (Points : 2)
15. Shareholder approval is required when a corporation buys all of the assets of another company. (Points : 2)
16. Alienation is a transfer of the ownership of land. (Points : 2)
17. Like the bylaws of other corporations, the bylaws of Retail Sales, Inc., (Points : 2)
were adopted at its first organizational meeting.
18. Specific performance is the remedy customarily used when there is no actual contract or agreement between two parties. (Points : 2)
19. An applicant cannot register a trademark on the basis of an intention to use the mark in commerce. (Points : 2)
20. Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior. (Points : 2)
21. Uri and Vicky orally agree on the sale of Uri’s Nite Club to Vicky and note terms on a pair of the Club’s napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain (Points : 2)
the essential terms.
22. A business trust is somewhat similar to a corporation. (Points : 2)
23. Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties. (Points : 2)
24. Julio contracts to provide lawn-mowing services to Kevin for $140 per month. Julio cannot transfer this duty (Points : 2)
without continuing to be potentially liable.
25. Recreational Pools, Inc., agrees to build a swimming pool for Sandy, but fails to build it according to the contract specifications. Sandy hires Total Fix-It Company to finish the project. Sandy may recover from Recreational Pools (Points : 2)
the costs needed to complete construction.
26. Aero Cola features Bubbly Cola’s trademark without its owner’s permission. Dana buys a bottle of Aero Cola. The mark has been infringed by (Points : 2)
27. Browse-wrap terms are generally enforceable. (Points : 2)
28. Most courts are usually very concerned about the fairness of contracts. (Points : 2)
29. 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)
informed and reasonable.
30. 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)
only the part of the contract that involves e-signatures.
31. Common law is a term for social manners and customs that are familiar to most of us. (Points : 2)
32. Owen, Paula, Quinn, and Rita combine to finance the building of Super Stores, a shopping mall. Their selected form of business organization is an investment group, or (Points : 2)
a joint venture.
33. 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)
where to buy the securities.
34. 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)
damages representing restitution.
35. Some states provide for the termination of minority status on marriage. (Points : 2)
36. Gus is an employee of Harden Steel Company. Under federal labor law, Gus and other employees have the right to (Points : 2)
bargain collectively with Harden through their representatives.
37. Complete performance occurs when conditions in a contract are fully satisfied. (Points : 2)
38. Bo and Clancy decide to do business as Dynamo Production Associates. To be a partnership, this association can result from an agreement that is (Points : 2)
oral, written, or implied by conduct.
39. When a contract party alters a written contract, the other party must adapt his or her performance accordingly. (Points : 2)
40. Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain (Points : 2)
not a subpoena, a warrant, or the employer's consent.
41. 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)
something of value passed between the parties.
42. Musicology Instrument Company and Noisemakers, Inc., enter into an e-contract. A dispute arises, and Musicology files a suit against Noisemakers. Like most courts to date, the court that hears this suit will probably apply (Points : 2)
Article 2 of the Uniform Commercial Code.
43. 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)
before 10 A.M. Monday.
44. There are no statutes regulating the use of spam. (Points : 2)
45. Genetic Seed Company hires Howie to work in its shipping office, accepting deliveries and dealing with other companies' drivers. With respect to Genetic, Howie is most likely (Points : 2)
46. The UETA provides that a document cannot be notarized electronically. (Points : 2)
47. An offer to form a unilateral contract is accepted by a promise to perform. (Points : 2)
48. Joint ownership of property in and of itself creates a partnership. (Points : 2)
49. Cory enters into a contract with Dian to act as her personal sports trainer. If they later dispute the meaning, and the contract contains unclear terms, the rules of contract interpretation will give effect to (Points : 2)
the parties' intent as expressed in their contract.
50. To recover workers' compensation, an employee must prove that an injury was not the fault of the employer. (Points : 2)
51. Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable. (Points : 2)
52. Voir dire is a process for presenting evidence in a case. (Points : 2)
53. To date, most courts have applied traditional common law principles to cases arising in e-commerce. (Points : 2)
54. Sanitary Supplies Company requires its customers to pay by check. Tyla, a Sanitary driver, tells customers on her route that they can pay her with cash. When Sanitary learns of Tyla's collections, it takes no action to stop her. Tyla steals some of the cash. Sanitary may suffer the loss under the doctrine of (Points : 2)
55. Musical Production Company and Nora enter into a contract that calls for Nora to write six songs for which Musical agrees to pay her. Nora transfers her right to payment under the contract to Omni Entertainment Agency. Nora is (Points : 2)
56. Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may (Points : 2)
rescind the contract only if Steve knew about the law before the deal.
57. In winding up a limited partnership, non-partner creditors are paid before the partners receive their capital contributions. (Points : 2)
58. Amber pushes Brad into the path of an oncoming car driven by Carol. Don tries to rescue Brad, but the car hits both of them. Amber is liable for the injuries of (Points : 2)
Brad and Don.
59. Kirk is the chief financial officer of Lemon Corporation, which is required to file certain financial statements with the Securities and Exchange Commission (SEC). Under the Sarbanes-Oxley Act of 2002, Kirk must personally (Points : 2)
certify that the statements are accurate.
60. B2B, LLC, is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is governed by (Points : 2)
the applicable state LLC statute.
61. Salt Corporation wants to acquire or merge with Pepper Corporation. The board and the shareholders of Pepper are resisting. Salt should (Points : 2)
make a tender offer to the shareholders of Pepper.
62. Under the UETA, a signature may be denied legal effect solely because it is in electronic form. (Points : 2)
63. 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)
64. Parties can form a contract without putting the terms in writing. (Points : 2)
65. Joy induces Kelly to enter into a contract for the purchase of a condominium about which Joy knowingly misrepresents a number of material features. When Kelly discovers the truth, Kelly can (Points : 2)
enforce the contract and seek damages.
66. 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)
is a more convenient location to hold the trial.
67. A zoning law that affects the lease will cause its termination. Union City's zoning board adopts a new zoning classification that affects the lease. This adoption satisfies (Points : 2)
the condition subsequent.
68. In studying the legal environment of business, Professor Dooley’s students also review ethics in a business context. Ethics includes the study of what constitutes (Points : 2)
fair or just behavior.
69. Corporate officers hire corporate directors. (Points : 2)
70. Damages awarded in a shareholder's derivative suit go to the shareholder personally. (Points : 2)
71. 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)
72. A reference to "28 U.S.C. Section 1332" means that a federal court’s decision can be found on Page 28 of Section 1332 of the United States Cases. (Points : 2)
73. 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)
for ten years.
74. A corporate officer is not expected to be informed on corporate matters. (Points : 2)
75. Lara is indicted for a crime. Mac, the arresting officer, advises Lara of her right to counsel. Lara waives the right and confesses to the crime. Later, Lara claims that her confession should be excluded as evidence from her trial. The statement will most likely be (Points : 2)
admitted because Lara made it after being advised of her rights.
76. An employer must modify its job-application process so that those with disabilities can compete for jobs with those who do not have disabilities. (Points : 2)
77. The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages. (Points : 2)
78. 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)
79. An employer must verify documents establishing a prospective worker's identity and eligibility to work in the United States. (Points : 2)
80. To be enforceable, any assignment must be in writing. (Points : 2)
81. Cole is a shareholder of Donut Holes, Inc. Cole will be deemed to have a fiduciary duty to Donut Holes and its minority shareholders if he has (Points : 2)
a sufficient number of shares to exercise de facto control.
82. An employee who leaves a job voluntarily cannot later claim to have been "constructively discharged" on the basis of unlawful discrimination. (Points : 2)
83. Precision Applications Corporation (PAC) sends an electronic record to ***** a PAC customer. Under the UETA, the record will be considered received when it (Points : 2)
enters Quotient's processing system in a readable form, even if no person is aware of its receipt.
84. A federal judge must adhere strictly to federal sentencing guidelines. (Points : 2)
85. Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of (Points : 2)
the MP3 player and the speakers only.
86. Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial. (Points : 2)
87. Pola and Quint want to form and do business as River Tours Corporation. A corporation can consist of (Points : 2)
no natural persons.
88. An accord and satisfaction requires that the amount of a debt must not be in dispute. (Points : 2)
89. Heavy Hauling, Inc., is a public company whose shares are traded in the public securities markets. Under the Sarbanes-Oxley Act of 2002, to ensure that Heavy Hauling’s financial results are accurate and timely, the firm’s senior officers must set up and maintain (Points : 2)
internal "disclosure controls and procedures."
90. Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take. (Points : 2)
91. An expert's false statement to a naive buyer about a technical detail may entitle the buyer to rescind a contract. (Points : 2)
92. Before filing a registration statement, an issuer must attempt to sell, or at least offer to sell, the securities. (Points : 2)
93. Don enters into a contract with Emma, who does not have contractual capacity. Don can enforce the contract only if Emma (Points : 2)
elects not to avoid the contract.
94. The U.S. Constitution is the supreme law of the United States. (Points : 2)
95. National Insurance Company violates a statute when selling an insurance policy to Opal. The policy may be enforced by (Points : 2)
96. A state court can exercise jurisdiction over anyone within the boundaries of the state. (Points : 2)
97. Preemptive rights entitle shareholders to bring a derivative suit against the corporation. (Points : 2)
98. To act ethically is to think narrowly about what is best in the short run for one’s employer. (Points : 2)
99. Cody contracts with Drew to act as her agent in a fraudulent marketing scheme. Cody does not successfully complete the scheme. Drew can recover from Cody for (Points : 2)
none of the choices.
100. An offer must be communicated by mail or in person. (Points : 2)