Business Law 1-7
Terms in this set (253)
The _____ is a request for the court to consider that all the facts in the pleadings are true and to apply the law to those facts.
motion for judgement on the pleadings
Once the trial ends, the party who received the favorable verdict files a motion for a judgment notwithstanding the verdict.
Which of the following is not a possible decision an appellate court can render?
writ of certiorari
A _____ is a request made by either party that asks a court to expeditiously dispose of a case without a trial.
motion for summary judgement
Which of the following criteria is necessary for a case or controversy to exist?
court decision is able to resolve the dispute
The power of a court to require that a party come before the court is known as in rem jurisdiction.
Arbitrators generally do not have to offer reasons for their decisions.
The federal court system has exclusive jurisdiction over the majority of cases.
Which of the following ADR methods is also known as "rent-a-judge"?
The U.S. Supreme Court, under no circumstances, functions as a trial court.
Which of the following is not a requirement for standing?
injury that cannot be fixed
The unofficial jury sitting in during the actual trial and deliberating at the end of each day to evaluate for the attorneys how each side is doing is referred to as:
_____ refers to a ruling by the judge in the defendants' favor when the plaintiffs have put forward their case before the defendants get to present their evidence.
The right of the plaintiff and the defendant in a jury trial to have a juror dismissed before trial without stating a reason is known as _____.
Which of the following is an advantage of arbitration?
the parties involved can choose the arbitrator
Administrative hearings are generally held in front of an administrative law judge, but in some circumstances, administrative law matters are heard by a jury.
An agency initiates informal rule making by publishing the proposed rule in the _____.
_____ is an order to appear at a particular time and place and bring specified documents.
subpoena duces tecum
A(n) _____ rule is a rule that does not create any new rights or duties but is merely a detailed statement of the agency's interpretation of an existing law.
Executive agencies are generally located under one of the cabinet-level departments within the executive branch.
Which of the following is true about an executive agency?
Executive-agency heads may be discharged by the president at any time
Every state has a state environmental protection agency to which the federal EPA delegates primary authority for enforcing environmental protection laws.
Which of the following is true of independent agencies?
They are governed by a board of commissioners
Which of the following types of evidences refers to evidence that a reasonable mind could accept as adequate to support a conclusion?
The _____ limitation accords power to Congress to override the proposed agency rules.
Which of the following actions of a government implies that it is in the enhanced stage of the development of e-government as characterized by the UN?
Creating links that enable citizens to easily access archived information.
Policy statements are summaries of rules in a particular area of the law.
Which act under the informational limitations of agency powers prohibits disclosure of information about an individual to other agencies or organizations without that individual's written consent?
The first step in notice-and-comment rule making is publication in the Federal Register of a notice of proposed rule making by the agency.
The primary type of rule making used by administrative agencies is the _____ rule making.
The Fifth Amendment to the US Constitution protects citizens against:
The _____ clause in the First Amendment of the U.S. Constitution protects citizens' choice of religion.
If a law prevents individuals from exercising a fundamental right, or if the law's classification scheme involves suspect classifications, the action will be subject to strict scrutiny.
_____ is the court's power to review laws to determine whether they are constitutional.
According to the Tenth Amendment to the Constitution, all powers that the Constitution neither gives exclusively to the federal government nor takes from the states are reserved for the federal government.
Which clause states that any state or local law that directly conflicts with the U.S. Constitution or federal laws or treaties is void?
Which of the following is true of the Fourth Amendment to the Bill of Rights?
it protects citizens from unreasonable search and seizure
In areas where the state and federal governments have concurrent authority, the federal government can decide to regulate that area exclusively. In such a situation, according to the doctrine of _____, the state law is unconstitutional.
Procedural due process refers to the basic fairness of laws that may deprive an individual of their life, liberty, or property.
The constitutional amendments are a limit on actions of the government and the behavior of private employers.
The _____ clause prohibits states from discriminating against citizens of other states when nonresidents engage in ordinary and essential activities.
privileges and immunities clause
Which clause requires that courts in all states uphold contracts and public acts established in other states?
full faith and credit clause
The _____ restricts the states' authority to pass laws that substantially affect business between states.
dormant commerce clause
The contract clause in the Constitution prohibits the government from unreasonably interfering with an existing contract.
Which of the following is not generally included in the rights protected in the Constitution under substantive due process?
the right to a jury trial
When a judge is the fact finder in a case, the trial is called a _____ trial.
In a criminal case, the burden of persuasion is lower than in a civil case.
In a criminal trial, society is seen as the victim whereas in a civil trial, there is an individual victim or victims.
In a civil case, the government, referred to as the prosecutor, always brings the case.
The advantage of a nolo contendere plea over a guilty plea is that the former cannot be used against the defendant in a civil suit.
Which act criminalizes specific nonaudit services when provided by a registered accounting firm to an audit client?
the sarbanes-oxley act
Proving _____ requires the government to demonstrate that the defendant's behavior resulted in a prohibited act or consequence.
_____ is the wrongful conversion of another's funds by one who is lawfully in possession of those funds.
The responsibility imposed on a person for damages caused by another is known as:
What two elements must the government demonstrate to punish an individual for criminal behavior?
actus reus mens rea
White-collar offenses are punishable only through incarceration or restitution.
To prove _____ in a criminal case, the government must prove that the defendant acted with the state of mind required by the law defining the relevant offense.
The crime of _____ occurs when a person obtains money, property, and/or services from another by wrongfully threatening or inflicting harm on the other person.
The rights that are read to an arrested individual by a law enforcement agent before the individual is question are known as _____.
Who files the charges against the defendant in a criminal proceeding?
A defense whereby the defendant is not liable for the percentage of harm that he or she can prove is due to the plaintiff's own negligence is known as _____.
A business tort that occurs when false spoken statements criticize a business product and result in a loss of sales is known as:
slander of quality
A private nuisance occurs when a person permanently removes personal property from the owner's possession and control.
Which of the following refers to conversion in the context of intentional torts against property?
A tort that permanently interferes with another's use and enjoyment of his or her personal property.
Compensatory damages are typically awarded for pain and suffering, and lost wages.
Placing an object on another's land without seeking the owner's permission is an instance of _____.
trespass to realty
Under the theory of strict liability, a person is responsible for damages, regardless of the existence of negligence.
What doctrine does the plaintiff use to allow the judge to infer that the defendant's negligence was the cause of the plaintiff's harm?
res ipsa loquitur
Proximate cause is the determination that the defendant's breach of duty resulted directly in the plaintiff's injury.
In a negligence action, a measurement of a person's duty of care is the_____.
reasonable person standard
Which of the following is an example of defamation made orally?
Which of the following is true of nominal damages?
The purpose is to recognize that the defendant committed a tort against the plaintiff.
A negligent tort occurs when the defendant:
acts in a way that subjects other people to an unreasonable risk of harm.
acts in a way that subjects other people to an unreasonable risk of harm
Misrepresentation made with the intent to facilitate personal gain and with knowledge that it is false is known as _____.
An easement is an irrevocable right to use some part of another's land for a specific purpose without taking anything from it.
Which of the following is a criterion for a work to be copyrightable?
A _____ occurs when the patent holder issues a license to use the patented object on the condition that the licensee agrees to buy some nonpatented product from the holder.
Which of the following is true of adverse possession?
The possessor takes ownership of property by treating the land as his or her own
An ownership interest in which the holder has exclusive rights to ownership and possession of the land is known as a _____ estate.
fee simple absolute
A license is:
a right to use another's property that is both temporary and revocable
A life estate is a person's present right to property ownership and possession in the future.
The right to go onto someone's land and take part of the land refers to:
A trademark used intrastate is protected under state common law.
The legal process by which a transfer of property is made against the protest of the property owner is known as _____.
Which of the following refers to gifts made in contemplation of one's immediate death?
Intangible property is property that can be identified by the senses.
A _____ is used by a producer together with a product causing consumers to identify the product with the producer.
A patent is a process, product, method of operation, or compilation of information that gives a businessperson an advantage over his or her competitors.
Which of the following is not a necessary element for a valid gift?
In the merit defense, all of the following types of validation are acceptable EXCEPT:
Which of the following is the agency that is responsible for promulgating workplace safety standards, inspecting facilities to ensure compliance with the standards, and bringing enforcement actions against violators?
The _____ is a federal law sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.
Employee Retirement Income Security Act
State laws may give employees more, but not less, protection than federal laws.
The _____ Act requires certain financial disclosures by unions and establishes civil and criminal penalties for financial abuses by union officials.
The Age Discrimination in Employment Act of 1967 prohibits employers from refusing to hire, discharging, or discriminating in terms and conditions of employment on the basis of an employee's or applicant's being age _____ or older.
What is a business-extension exemption?
It allows employers to monitor employee telephone conversations in the ordinary course of their employment
Which of the following was the first major piece of federal legislation adopted explicitly to encourage the formation of labor unions and provide for collective bargaining between employers and unions as a means of obtaining the peaceful settlement of labor disputes?
the Wagner Act
The Fair Labor Standards Act mandates that employees who work more than 40 hours in a week be paid no less than _____ times their regular wage for all the hours beyond 40 that they work during a given week.
The Fair Labor Standards Act requires that a minimum wage of a specified amount be paid to all employees in covered industries.
The _____ Act was designed to curtail some of the powers unions had acquired under the Wagner Act.
In order to sue for disparate treatment under Title VII, the plaintiff need not be a member of a protected class as listed in CRA.
Under the Employee Retirement Income Security Act (ERISA), employers must provide participants with the right to sue for benefits and breaches of fiduciary duty.
Which of the following is true of disparate impact?
It establishes that the actual effect of an employer's policy is that it disproportionately limits employment opportunities for a protected class
The Civil Rights Act permits employers from segregating employees in a manner that would affect their employment opportunities on the basis of their national origin.
Which of the following is primary source of contract law?
Under the mailbox rule, an acceptance is valid at the time _____.
it is placed in the mailbox
A(n) _____ contract is a promise exchanged for an act.
If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates.
Which of the following statements describes a recognizance?
An obligation in which a party acknowledges in court that he or she will perform some specified act.
The _____ says that the terms of the acceptance must mirror the terms of the offer.
Contracts under seal require specific considerations for them to be legal.
_____ refers to what each party gets in exchange for his or her promise under a contract.
In an auction without reserve, the seller merely expresses an intention to receive offers.
An offer immediately terminates in all of the following situations, except:
manifestation of intent to be bound.
A contract is said to be executory once all the terms of the contract have been fully performed.
A contract is _____ if one or both of the parties have the ability to either withdraw from the contract or enforce it.
A quasi-contract is a contract that:
is imposed by court to prevent unjust enrichment
An option contract is an agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for the specified period of time.
A(n) _____ is an agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for the specified period of time.
The court always considers adequacy of consideration.
A pool lifeguard demands money after saving Bob from drowning in the pool. Bob need not pay the lifeguard because this is an instance of _____.
Which of the following is not an exception to the preexisting-duty rule?
A liquidated debt is a debt for which there is no dispute between the parties about the fact that money is owed and the amount of money owed.
An illusory promise is a situation in which a party appears to commit to something but really has not committed to anything.
All of the following requirements are necessary for an accord and satisfaction to be enforceable, except:
the debt is liquidated
A promise cannot be based on consideration that was provided before the promise was made.
Mark saves Emily from drowning. As an expression of gratitude, Emily promises to reward Mark for his actions. A year later, Mark still does not receive the money. This example is an illustration of _____.
In a unilateral contract, one party's consideration is the promise and the other party's consideration in return is also a promise.
What does adequacy of consideration imply?
soundness of the bargain
Which of the following examples illustrates illusory promise?
Ahmed gets a new job and commits to work for three years unless he resigns sooner than that.
The legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract is known as _____.
Brian promises his tennis coach that he will not ride his motorcycle till the tournament gets over even though he loves riding it. What type of consideration does the example suggest?
a detriment to the promise
In which of the following instances can injustice be avoided by carrying out the promise?
What type of consideration does a promise to stay in a job until a particular project is complete reflect?
A benefit to the promisor
Which of the following is an example of usury?
A pawnbroker charges interest rates that are beyond the legal interest rates.
Which of the following is true of a severable contract?
It has both legal and illegal portions in the contract.
Which of the following is an example of substantive unconscionability?
Charging excessive prices in comparison to the cost of products and services.
Which of the following is an example of an anticompetitive agreement?
The rivals within an industry mutually agree on the purchase price that will be offered to suppliers.
A contract entered into with or by a minor is voidable.
A(n) _____ clause is a statement releasing one of the parties to an agreement from all liability.
_____ laws limit the types of business activities in which parties can legally engage on Sundays.
An agreement to commit a crime or tort is not enforceable by the courts.
A basic test to determine whether an exculpatory clause is unenforceable is to see if the enforcing party engages in a business directly related to the public interest.
A(n) _____ contract is created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis.
In a(n) _____ contract, the powerful party dictates the terms of the agreement and eliminates the other party's free will.
Which of the following is true of a contract that is procedurally unconscionable?
It contains conditions that would impair a party's understanding of the contract.
Covenants not to compete in employment contracts are illegal in most states.
What term is used in the law when both parties are equally responsible for an illegal agreement?
in pari delicto
Not knowing that the other party to a contract intended to fulfill the agreement through illegal means does not void the contract.
Courts can rescind a contract even though the person making the false assertion is entirely innocent of any intentional deception.
Which of the following would not render a contract voidable?
A(n) _____ is a false statement about a fact material to an agreement that the person who made the statement believed to be true.
When a contact is void, it may be rescinded, or canceled.
Concealment involves a failure to provide pertinent information about the projected contract.
A unilateral mistake does not void a contract.
____________ is when one person has taken advantage of his or her dominant position in a relationship to unduly persuade the other person to the extent that the dominant person's persuasive efforts have interfered with the other person's ability to make his or her own decision.
A(n) _____ is an untruthful assertion by one of the parties about a material fact.
Scienter is present when the party accused of making a fraudulent assertion believed that the assertion was true.
Which of the following is true about a unilateral mistake?
The contract can be invalidated if caused by a clerical error not resulting from gross negligence.
Which of the following is true of a mutual mistake?
Such contracts can be rescinded by either of the parties.
What condition will the court consider to invalidate a contract on grounds of unilateral mistake?
One party made a mistake about a material fact and the other party either knew or had reason to know about the mistake.
A(n) _____ results when the party making the statement would have known the truth about the fact had it used reasonable care to discover it.
Which one of the following is one of the conditions required for mutual mistake to interfere with legal consent?
The parties have a basic assumption about the subject matter of the contract.
Which of the following is true of incidental beneficiaries?
They lack the capacity to enforce a contract as they maintain no rights to enforce other people's contracts.
The rights to a contract cannot be assigned when the contract is personal in nature.
A(n) _____ contract is a written contract intended to be the complete and final representation of the parties' agreement.
The statute of frauds does not relate to fraudulent contracts.
A _____ is an event in a contract that must occur in order for a party's duty to arise.
Which rule requires that contracts that would normally fall under the statute of frauds and need writing if negotiated by the principal must be in writing even if negotiated by an agent?
equal digits rule
All of the following are contracts that fall within the statute of frauds and thus are required to be evidenced in writing, except:
Contracts between parties whereby one party substitutes a different performance for his or her original duty under the contract.
The parol evidence rule states that oral evidence of an agreement is inadmissible when it is made prior to or contemporaneously with a written agreement.
A third party who is not part of the original contract but to whom duties to perform are transferred by one of the contracting parties is known as a(n):
_____ is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.
Which clause states that the written agreement accurately reflects the final, complete version of the agreement?
Partial performance cannot override the statute's requirement for a written agreement.
Secondary obligations are debts entered into in an initial contract.
Which of the following is an exception to the statute of frauds in which an unwritten agreement is executed in some degree by one or both parties?
Mark hands over the power of attorney of his apartment to his mother. Consequently, the tenants living in his apartment now pay rent to his mother. In this case, Mark's mother is a(n) _____.
_____ refers to the contractual terms under which each party's performance is conditioned on the performance of the other.
A(n) _____ is used when one of the parties wants to substitute a different performance for its original duty under the contract.
accord and satisfaction
Consequential damages are foreseeable damages that result from special facts and circumstances arising outside the contract itself.
After Company X enters into a contract with Company Y, it advises Company Y of its intent to not honor its contractual obligations. What can company X be sued for?
_____ damages are imposed to punish the defendant and deter such conduct in the future.
A condition subsequent is a condition that must be satisfied in order for the parties to have a binding contract.
The agreement to replace one of the parties with a third party is known as:
Under which of the following situations will a contract be discharged by law?
What are liquidated damages?
Damages specified as a term of the contract, before a breach of contract occurs.
To recover damages in a breach-of-contract case, the plaintiff must demonstrate that he used reasonable efforts to minimize the damage resulting from the breach.
Implied conditions are those that are not explicitly stated but are inferred from the nature and language of the contract.
Money awarded to a plaintiff as reimbursement for her or his losses is known as _____ damages.
In most situations, parties _______their obligations by doing what they respectively agreed to do.
Anticipatory repudiation discharges the nonbreaching party from his obligations under the contract.
_________ required that the breaching party fulfill the terms of the agreement.
A _____ contract occurs when the purchased goods are transferred to the buyer from the seller at either the time of the sale.
A person who transfers the right to possession and use of goods under a lease is known as the _______.
A transfer of the right to possession and use of goods for a term in return for consideration is known as _____.
A common-carrier delivery contract is a type of contract in which purchased goods are delivered to the buyer via an independent contractor
Federal statutes govern the formation of sales and lease contracts.
In a _____ contract, the buyer and seller agree that the buyer may give the goods back at a later time.
The right to encumber goods as collateral for a debt is dependent on who is holding title.
_____ is the transfer of goods to a merchant who ordinarily deals in that type of goods.
Which of the following is an example of a void title?
A buyer acquires a stolen car without his knowledge
A requirement that the seller has and holds conforming goods at the disposal of the buyer and gives the buyer reasonable notification to enable him or her to take the goods is known as:
tender of delivery
A _____ is made in writing and giving assurances that it will be irrevocable for not longer than three months despite a lack of consideration for the irrevocability.
In a _____ contract, the seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase.
The mirror-image rule that applies under common law does not apply under the UCC.
If the seller is not a merchant, the risk of loss remains with the seller under the rule of tender of delivery.
_____ damages are specified as a term of the contract, before a breach of contract occurs.
Liquidated damages are damages identified before the breach occurs.
_____ is an assurance whereby a lessor knows that the lessee is relying on him or her to make the selection.
Implied warranty of fitness for a particular purpose
A description of a good's physical nature or its use, in either general or specific circumstances, that becomes part of the contract is known as ______.
A(n) _____ is any description of a good's physical nature that becomes part of the contract.
Which of the following is a court order requiring a nonbreaching party to fulfill the terms of the contract?
Course of dealing refers to the history of dealings between the parties in the particular contract at issue.
What is usage of trade?
Practices that members of an industry expect to be part of their dealings
An assurance that the seller has good and valid ownership to the goods and has the right to transfer them free and clear is known as _____.
warranty of title
Specific performance requires that the seller deliver the particular goods identified in the contract.
_____ is a breaching party's right to provide conforming goods when nonconforming goods were initially delivered.
Under the UCC, the buyer or seller must bring a lawsuit on a breached contract within five years of when the breach occurred or when the nonbreaching party became aware of it.
At common law, the obligations and responsibilities of the contractual parties are determined by the express terms of the contract.
The _____ rule requires that the seller deliver goods in conformity with the terms of the contract.
The _____ is a requirement that the seller holds conforming goods at the disposal of the buyer and provides him timely information enabling him to claim it.
tender of delivery
The _____ rule requires that all contracts that would normally fall under the statute of frauds and need writing if negotiated by the principal must be in writing even if negotiated by an agent.
An agency relationship exists if a principal leads a third party to believe that another individual serves as his or her agent but the principal has made no agreement with the so-called agent.
Which of the following is true of independent contractors?
All independent contractors need not necessarily be agents.
In a/an _____ relationship, the agency relationship is inferred from the conduct of the parties.
_____ is a specific form of express authority that grants an agent specific powers.
power of attorney
Agency law is federal law.
An individual who hires an independent contractor can be held liable for the independent contractor's tortious actions.
A _____ is a person who has a duty to act primarily for another person's benefit.
If an agent has no authority to act on behalf of a principal but the agent still enters into a contract with a third party, the principal is not bound to the contract unless the principal _______ the agreement.
All agents are employees because all employees are agents.
Which of the following is true of agency by estoppel?
The principal's conduct falsely projects that another person serves as his agent.
Which of the following is true of a constructive notice?
Notice of termination is made known to parties indirectly related to an agency agreement.
Substantial departure is also known as "frolic of his own."
Which of the following is true about gratuitous agents?
They agree to function without consideration.
In which of the following situations is the agent the only liable party for the contract?
The agent contracts with a third party knowing the third party would not enter into a contract with the principal if the principal's identity were disclosed.
In a distributorship, the franchisor helps franchisee set up a business run under the franchisor's business name according to the franchisor's usual methods and standards.
Which of the following is true of a partnership?
The partners' income is taxed as personal income.
Which of the following is true of a limited liability partnership?
All partners pay taxes on their share of the income of the business.
Which of the following is an investment group that comes together for the explicit purpose of financing a specific large project?
What is the disadvantage of sole proprietorship?
Funds can be acquired only through personal funds and loans.
In a general partnership, the partners share limited personal liability for the partnership's debts.
A limited liability company is recognized in all states.
Which of the following is true of a limited liability company?
It is an unincorporated form of business organization.
Which of the following is true of a corporation?
All but S corporations are forms of corporations created under state law.
A franchisee is the owner of the trade name in a franchise.
A _________ is a business organization formed by individuals to market products, whereby members pool their resources together to gain some kind of advantage in the market.
Which of the following is a disadvantage for a franchisee?
There is little creative control over the business for the franchisee.
A joint venture is a relationship between two or more persons or corporations created for a specific business undertaking.
A _____ is an association between two or more parties wherein the parties share profits and management responsibilities with respect to a specific project.
A disadvantage of a corporation is that:
the corporate income gets taxed twice.