Business Law Final 101 - 227

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Business law 1

101. _____ A seller's statement that "this is a terrific used car" generally creates an express warranty.

F

102. _____ A buyer from a thief can acquire title to the goods as a good faith purchaser.

F

103. _____ A contract for the sale of goods must include a price to be enforceable under the UCC.

F

104. _____ In ordinary sales transactions, the warranty of title can be disclaimed or modified only by specific language in a contract.

T

105. _____ Implied warranties of merchantability can never be disclaimed.

F

106. _____ According to the UCC, unless otherwise specified or agreed upon, all goods in a contract must be rendered in a single delivery.

T

107. _____ The UCC, not common law, covers the sale of real estate and services.

F

108. _____ When an offer governed by the UCC does not specify a means of acceptance, it can be accepted by any means reasonable under the circumstances.

T

109. _____ The UCC always governs breach of contract cases involving a combination of services and tangible movable goods.

F

110. _____ In order to be liable for negligence a person must have owed a duty of care to the plaintiff.

T

111. _____ Tim and his friend are playing catch in the back yard when Tim suddenly throws the ball over the fence into the neighbor's yard where it breaks a window. This is trespass to real property, even if Tim himself does not go onto the property to get the ball.

T

112. _____ Truth is a complete defense to defamation.

T

113. _____ Arthur offers Bob, an employee of Carl, a job with his company at a yearly salary of $10,000 more than Bob receives under the contractual relationship between Bob and Carl. Arthur knows about the contract between Bob and Carl and knows that the contract should run for another five years, but Arthur wants Bob to work for him. Arthur probably is liable to Carl for intentional interference with contractual relations.

T

114. _____ The same act can never be both a tort and a crime.

F

115. _____ Because he's a good friend, and has known Hilda a long time, Scott fixes Hilda's car as a surprise for her birthday. When Hilda sees it, she is so happy, she promises to give Scott $1000 the following week for doing the work. He gratefully accepts. A court would likely find that: 1) this promise to be supported by valid consideration; and 2) Hilda's promise to pay $1000 is enforceable as a contract.

F

116. _____ One distinction between nuisance and trespass to land is that trespass to land involves intrusions by human beings, while nuisance involves intrusions by other forces.

F

117. _____ In order to be liable for conversion, the defendant must know that the property rightfully belongs to someone else.

F

118. _____ In a strict liability case, the plaintiff still must prove that the defendant breached a duty.

F

119. _____ Even though no one else had developed an invention like that of the patent applicant, the application will be denied if, at the time of the invention, the invention would have been obvious to a person having ordinary skill in the area.

T

120. _____ A copyright owner's failure to use a proper copyright notice does not cause her to forfeit copyright protection.

T

121. _____ Consent can be raised as a defense to battery.

T

122. _____ Bill dictates a letter to his assistant, Barbara. The letter is addressed to Betty Bonds, his accountant, and in it, he accuses Betty of being dishonest when he knows she is not! Barbara never types the letter, and does not send it to Betty. Nevertheless, Bill has likely committed the tort of defamation.

T

123. _____ In a defamation suit where the plaintiff is a "public figure," the defendant must prove that the plaintiff acted "with actual malice."

F

124. _____ A fanciful use of ordinary words may be trademarked.

T

125. _____ Tort law provides legal remedies for both personal injury and property damage.

T

126. _____ In tort law, intent means only that the actor intended the consequences of his or her act or knew with substantial certainty that certain consequences would result from the act.

T

127. _____ To commit an intentional tort, a person need not act with a harmful motive.

T

128. _____ An assault may be committed when a person acts in a way so as to create an apprehension of offensive contact in the distant future.

F

129. _____ A battery occurs only if the victim suffers actual physical harm.

F

130. _____ Libel involves the written communication of defamatory language.

T

131. _____ Puffery is fraud.

F

132. _____ To commit the tort of trespass to land, a person does not need to actually harm the land.

T

133. _____ Conversion is wrongfully taking or retaining an individual's personal property and placing it in the service of another.

T

134. _____ An arbitrary use of ordinary words may not be trademarked.

F

135. _____ A service mark is used to distinguish products produced by the federal government from those produced by private corporations.

F

136. _____ Brad doesn't like Rob and especially dislikes Rob's new felt hat, so he intentionally knocks it off Rob's head in order to embarrass Rob. Brad has committed a battery.

T

137. _____ In a defamation action, the plaintiff must prove that the defendant communicated a false statement to a third party.

T

138. _____ A tort is a violation of a duty imposed by the civil law.

T

139. _____ Under the new Restatement (Third) of Torts, a manufacturing defect exists only when it is shown that: 1) the product has departed from its intended design; and 2) the manufacturer failed to exercise "due care" in the manufacturing process.

T

140. _____ Written defamation is called "slander."

F

141. _____ Opinion is generally a valid defense in a defamation lawsuit because it cannot be proven to be true or false.

T

142. _____ In order for a plaintiff to win a case involving intentional infliction of emotional distress, she must prove the defendant acted in an extreme and outrageous manner.

T

143. _____ Prior to any battery, an assault (even if only momentarily) must have occurred.

F

144. _____ Punitive damages are intended to punish the defendant.

T

145. _____ An employee who divulges secret trade information cannot be sued.

F

146. _____ Infringement is the unauthorized use of the intellectual property of another

T

147. _____ Electronic surveillance for the purpose of acquiring trade secrets is permissible under the law of unfair competition.

F

148. _____ For a mark to be protected under federal law, it must be registered with the Patent and Trademark Office.

T

149. _____ Trade secrets are information held as confidential by a company and its employees.

T

150. _____ A trademark differs from a service mark in that the latter describes services.

T

151. _____ A copyright does not last forever.

T

152. _____ A copyright would protect a photograph.

F

153. _____ Georgia's company may lawfully discover Samantha's company's trade secrets if Samantha's company fails to take reasonable precautions to protect their trade secrets.

T

154. _____ A patent may be renewed.

F

155. _____ Knowing and intentional infringement of a mark can be a criminal offense.

T

156. _____ Komco Computer Company has developed a new and innovative magazine and television ad campaign that it would like to protect from use by its competitors. Komco may copyright its magazine and television ads.

T

157. _____ The word "truck" cannot be a trademark for trucks, although it could be a trademark for a new brand of designer jeans.

T

158. _____ A patent is available for an idea as well as a tangible application.

F

159. _____ Computer software may be patentable.

T

160. _____ If a trademarked name acquires a generic meaning the owner of the trademark loses protection.

T

161. _____ Persons found liable for a tort usually must either pay a fine or serve time in prison.

F

162. _____ Some torts are crimes.

T

163. _____ "Res ipsa loquitur" means "the thing speaks for itself" and raises a presumption of breach of duty and causation in negligence cases.

T

164. _____ The plaintiff's burden of proof in a tort action is beyond a reasonable doubt.

F

165. _____ Bob writes an all-new, original, marching song. Bob's song is copyrightable.

T

166. _____ Dan lends Susan $500. She agrees to pay Dan $100 a month until the $500 is paid. She gives Dan her diamond ring to hold until she fully satisfies the debt. The ring is "collateral."

T

167. _____ Filing a petition for bankruptcy automatically stays most legal actions filed against the debtor.

T

168. _____ Bob throws a ball across his neighbor's property, and the ball then lands in the street; this could constitute "trespass to land."

T

169. _____ Bob sends Larry Lawyer, his attorney, a letter in which he accuses him of being "an incompetent lawyer." Larry is not incompetent, and Bob knows that the statement he is making is false. This constitutes the tort of defamation.

F

170. _____ A party trying to establish mutual mistake as a defense to the enforcement of a contract must show that the other party had "scienter" (guilty knowledge) of the mistaken fact.

F

171. _____ A security interest is not enforceable after the creditor's rights have attached to the collateral.

F

172. _____ A chair bought by a business office would be classified as a consumer good.

F

173. _____ In order for an artisan's lien to be valid, the lienholder normally must have possession of the property.

T

174. _____ Where the creditor has possession of the collateral, the security agreement may be oral.

T

175. _____ A security agreement may cover after-acquired property of the debtor--if it says so.

F

176. _____ Attachment of a security interest is a necessary condition for its perfection.

T

177. _____ Bob has not paid his ex-wife alimony as required under court order. His ex-wife is trying to collect the alimony Bob owes her. Bob files a bankruptcy petition. This automatically stays his ex-wife's collection efforts.

F

178. _____ Negligence may best be described as an intentional tort.

F

179. _____ When a court determines whether the defendant has breached his or her duty of care to the plaintiff, the court asks whether the defendant acted the way a reasonable person would in similar circumstances.

T

180. _____ Compensatory damages include damages for past and future pain and suffering.

T

181. _____ A company is generally not liable for the criminal acts of its employees.

T

182. _____ One who participates in an activity subject to strict liability will be held liable for damages resulting from the activity even if he exercised reasonable care in undertaking the activity.

T

183. _____ Strict liability for defective products requires the plaintiff to show there was a defect in the product that caused the injury.

T

184. _____ In some cases, failure to warn about a product's dangers can make an otherwise safe product defective.

T

185. _____ Generally, sellers must design their products to be safe when foreseeably misused.

T

186. _____ To succeed in a product liability suit based on strict liability, a plaintiff does not need to prove why or how a product became defective.

T

187. _____ Defendants who engage in ultrahazardous activities are almost always strictly liable for any harm they cause.

T

188. _____ A defendant who engages in an ultrahazardous activity is liable for any harm that results from the activity.

T

189. _____ Unless the warranty of merchantability is expressly disclaimed, all merchants warrant that the goods they sell are fit for the general purpose for which they are intended to be used.

T

190. _____ A security interest is enforceable only if the collateral is in the possession of the secured party.

F

191. _____ To have an enforceable security interest in collateral that is in the possession of the secured party, there must be a written security agreement.

F

192. _____ A security interest is not enforceable unless the creditor's rights have attached to the collateral.

T

193. _____ A security agreement's description of collateral as "all the debtor's assets" is sufficient to reasonably identify the property.

F

194. _____ To create an enforceable security interest, the secured party must give value.

T

195. _____ Collateral is not the subject of a security interest.

F

196. _____ An authenticated security agreement can be in an electronic medium.

T

197. _____ For a creditor to have an enforceable security interest, it is necessary that the debtor have rights in the collateral.

F

198. _____ A chair bought by a business office would be classified as a consumer good.

F

199. _____ A financing statement is effective even if it is filed electronically.

T

200. _____ For a financing statement to be valid, it must contain a description of the collateral.

T

201. _____ An improper filing does not render a secured party unperfected.

F

202. _____ The state office in which a financing statement should be filed depends on the debtor's location.

T

203. _____ A pledge is a promise made by a debtor to take reasonable care of the property.

F

204. _____ Filing a financing statement with the appropriate public office is the only way to perfect a purchase-money security interest in consumer goods.

F

205. _____ A purchase-money security interest in consumer goods is perfected automatically at the time of a credit sale.

T

206. _____ A purchase-money security interest arises when a seller or lender provides a buyer with the "purchase money" to buy goods.

T

207. _____ A mechanic's lien can be enforced to obtain payment for work that adds value to personal property.

F

208. _____ A creditor with a mechanic's lien on property can prevent the sale of the property but cannot sell the property to satisfy the debt.

F

209. _____ A debt does not have to be past due before a creditor can begin legal action against a debtor.

F

210. _____ An artisan's lien is effective only if a creditor has possession of the property.

T

211. _____ If a debtor cannot, or will not, pay a judgment, a creditor can only resort to "self-help" to collect.

F

212. _____ A writ of execution is a court order to seize a debtor's property after the entry of a final judgment in a creditor's lawsuit against the debtor.

T

213. _____ In a contract of suretyship, the surety is secondarily liable on an obligation and becomes primarily liable only when the debtor cannot pay the debt.

F

214. _____ Before a surety can be required to answer for the debt of a debtor, the debtor must have defaulted on the underlying obligation.

F

215. _____ A contract of suretyship must be in writing to be enforceable

T

216. _____ A surety can use any defenses available to a debtor to avoid liability on the obligation to the creditor.

T

217. _____ Bankruptcy law has one goal: to ensure equitable treatment to creditors who are competing for a debtor's assets.

F

218. _____ Bankruptcy proceedings are held in federal bankruptcy courts.

T

219. _____ A bankruptcy court looks at the totality of a debtor's circumstances to determine whether the debtor's petition for relief under Chapter 7 constitutes substantial abuse.

T

220. _____ The filing of a petition for bankruptcy will automatically stay most legal actions against the debtor.

T

221. _____ It is possible, on a debtor's bankruptcy, that an unsecured creditor might receive nothing to cover the debt.

T

222. _____ A creditor's extension of time to a debtor for making payment, without the consent of the surety, will not discharge the surety.

F

223. _____ Filing bankruptcy will automatically discharge all debts, including student loans and child support payments.

F

224. _____ A creditor with an artisan's lien on property can sell the property to satisfy the debt.

T

225. _____ A guarantor is secondarily liable on an obligation.

T

226. _____ A guarantor becomes primarily liable only when a debtor cannot pay a debt.

T

227. _____ Before a surety can be required to answer for the debt of a debtor, the debtor must have defaulted on the underlying obligation.

F

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