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BUSN 210 Final 75/80
Terms in this set (80)
The Uniform Commercial Code (UCC) requires several specific terms of a contract to be in the writing, while common law contracts have a much more liberal rule concerning what must be in the writing.
The federal government has the inherent power to protect the general welfare of the citizenry.
A limited liability company's (LLC) operating agreement will typically contain provisions regarding the amount and methods for capitalizing the business.
Which of the following statements accurately differentiates between the management of a limited liability company (LLC) and a limited liability partnership (LLP)?
An LLC may be member-managed or manager-managed; an LLP is managed by managing partners or an executive committee.
If arbitration is nonbinding, the arbitrator's decision is final unless both parties in the dispute agree to have the case reopened.
While state antidiscrimination statutes are relatively conservative in exactly what constitutes a protected class, federal statutes have expanded protected-class membership.
Black Inc., a successful shoe manufacturing company, follows the moral minimum ethical philosophy. Which of the following actions is Black most likely to take in compliance with this philosophy?
It will avoid using certain harmful manufacturing processes, even though the processes ensure cost reduction and greater profits.
Understanding which primary and secondary stakeholders will be affected is part of the _____ stage of the ethical decision-making process.
Which of the following is true of implied warranties under the Uniform Commercial Code (UCC)?
They are applicable to sales made by one merchant to another merchant.
Which of the following statements is true of a sole proprietorship?
It is not subject to corporate income taxation.?
Which of the following is an application of the power granted to the U.S. Congress by the Commerce Clause?
To ban discrimination in places of public accommodation such as restaurants.
When a hazardous substance spill occurs, the Environmental Protection Agency (EPA) and the principally responsible party (PRP) begin negotiations regarding liability and cleanup. If the negotiations result in a settlement being reached before cleanup efforts begin or are complete, the EPA and PRP will
enter into a binding agreement called a consent decree specifying the actions to be taken.
An employee at a company is suffering from severe back injury, which is a covered disability. The employee comes to know of a vacant position in the company that involves only light lifting and requests his employer for a temporary transfer to that vacant position. According to the Americans with Disabilities Act (ADA), which of the following statements is most likely to be true in this scenario?
Given that the vacant position exists, the employee's request to be transferred to that vacant position is considered to be an undue hardship for the employer.
Which of the following grants a court specific authorization or jurisdiction over an out-of-state defendant due to the defendant's conduct or other circumstances?
State long-arm statute.
An employee alleging employment discrimination must first file a complaint in federal court.
According to the Uniform Commercial Code (UCC), a seller may not disclaim an implied warranty.
Ted is on trial for murder. The prosecution must provide _____ evidence in order to secure Ted's conviction.
Which of the following statements is NOT true of the Federal Arbitration Act (FAA)?
It spells out specific procedures and formats for conducting arbitration proceedings.
Which of the following is likely to be covered under the Truth in Lending Act (TILA)?
Allan, who borrows money from a commercial bank to buy a house.
Differentiate between codes of conduct and codes of ethics.
Codes of conduct specify actions in the workplace, and codes of ethics are general guides to decisions about those actions.
A primary market is one in which investors buy and sell issued securities among themselves.
In a business context, legal counsel is not only a primary and important source of information and advice but is also solely responsible for making decisions about how to resolve a dispute.
A state criminal statute and a federal criminal statute may outlaw identical or substantially identical conduct even when the federal statute contains specific language that preempts state law.
Mike hires Tom, a general contractor, to renovate his apartment while he is away on vacation. Mike expects Tom to have completed the work by the time he gets back in three weeks. Tom's team needs asphalt roof shingles to install a new roof but Tom does not have a regular supplier. Assuming he has the authority in Mike's absence, Tom signs a sales contract on behalf of Mike to obtain the shingles from a third party. The contract allows Mike to make the payment for the shingles over the course of the next three months. When Mike returns, Tom informs him about this contract. Mike neither ratifies nor repudiates the contract. Based on this scenario, which of the following statements is most likely to be true?
Mike is bound to honor the contract because he did not ratify or repudiate it but reaped its benefits.
The Federal Trade Commission regulations relating to franchises are designed primarily to do which of the following?
Provide full disclosure of relevant information relating to the franchise prior to the franchisee's investment.
Maya enters into a sales contract with Kevin. Which of the following is most likely to be true if Kevin breaches the contract even before he receives the goods?
If Maya recovers the full value of the contract from Kevin, she cannot resell the goods even if a new buyer is found.
If parties in a dispute have not reached an agreement at the end of a mediation activity, the mediator makes the decision for them, and this decision is binding on the parties.
Which of the following is true of citizen suits in environmental law?
When an environmental statute authorizes citizen suits, it allows the agency with jurisdiction over the matter to decide whether to initiate agency action.?
Nate agrees to sell his boat to Tina. In the contract, Nate agrees to deliver the boat in two weeks, but Tina learns that he is looking for another buyer who will pay a higher price. Tina turns to the court to stop Nate from selling his boat to any other party. In this case, she is seeking _____.
____ consists of a body of law that, for the purposes of preventing harm to society, declares what conduct is unlawful and prescribes the punishment to be imposed for such conduct.
A(n) _____ is best defined as a contract that one party may, at its option, either disaffirm or enforce.
Employers have a legal obligation to rehire striking workers or provide retroactive pay in cases of a strike for economic reasons.
A nominal amount of money, such as one dollar, is sufficient consideration to form a valid contract. This is true even if the other party's consideration is much more valuable.
Matthew Granger is a member of the board of directors at Produxicore Inc. Over a period of one year, Matthew failed to attend most of the board meetings, claiming that he was unaware of their occurrence. During the meetings that he did attend, he was not up to date with the company's developments. He did not read the reports he was presented with, and was unfamiliar with the company's financial records. In this scenario, Granger breached his duty of care primarily through _____.
All federal statutes create liability for owners of contaminated property, but only if the owners have contributed in some way to the contamination.
The _____ is the centerpiece of a fiduciary relationship between an agent and a principal because the agent is obliged to advance the principal's interest over her own interest.
duty of loyalty
The U.S. Environmental Protection Agency (EPA) handles a broad range of environmental concerns at the federal level. No other federal agencies are involved in the handling of environmental concerns.
Law serves as an important catalyst for commerce by
giving some degree of reliability in business planning.
Which of the following is not included in the revised LLC statute (RULLCA)?
Establishes a mandated structure for the LLC's management.
The exclusionary rule applies only to evidence that is obtained directly in violation of a defendant's Constitutional protections, but not any evidence that is indirectly related to it.
Congress's broadest powers are derived from the
Which of the following is a similarity between the Uniform Commercial Code (UCC) and the U.N. Convention on Contracts for the International Sale of Goods (CISG)?
Both include a statute of frauds.
When a buyer agrees to purchase all of the goods needed to complete a project from a particular seller, the contract is said to be a requirements contract.
Which of the following statements is true of the taxation of limited liability partnerships (LLPs)?
All income or losses from an LLP are reported on the partners' individual tax returns.
A(n) _____ is created when the parties involved have knowingly and intentionally agreed on the promises and performances.
The Americans with Disabilities Act (ADA) of 1990 requires the person in the protected class to receive equal treatment to that of nonclass members.
Tom and Ralph drafted a partnership agreement, but did not sign it. In their day-to-day business dealings they demonstrate a clear intent to carry on as co-owners of a business for profit. Because they have not yet signed the partnership agreement, they cannot be considered general partners.
An S corporation
has the ability to distribute earnings without incurring double level taxation.?
Criminal laws are a protection of society, and the violation of criminal laws results in penalties to the violator such as fines or imprisonment.
The mailbox rule governing common law contracts provides that the acceptance of an offer is generally effective as soon as the acceptance is received by the offeror.
Decisions of trial courts are reviewed by appellate courts.
Which of the following individuals is most likely to avoid liability for defamation through absolute privilege?
Vicky, a criminal attorney, who makes a statement about an accused during a trial.
Wilma hires Fred, a contractor, to paint her house. When Fred finishes, Wilma refuses to pay him and states that the quality of the job done is not satisfactory. If Fred sues Wilma for breach of contract in a trial court, Fred would be the defendant.
The Uniform Commercial Code (UCC) considers electronic records and signatures in a sales transaction as invalid.
The Industrial Revolution in America was fueled in part by the availability of an abundant workforce consisting of immigrants and displaced farmers willing to work long hours for low wages.
When a borrower pledges collateral in order to obtain a loan, the lender is known as an unsecured creditor.
Which of the following sales agreements is most likely to be subject to Article 2 of the Uniform Commercial Code (UCC) because it represents a merchant transaction?
A sales agreement made by Mike, a wholesaler, who sells to Sunil, the owner of a retail store.
Wang is an Asian candidate applying for the position of a waiter at an Asian restaurant in Boston. Raj, the restaurant owner, rejects Wang's application because he believes that Asians do not make good waiters. Which of the following statements is most likely to be true in the context of Title VII of the Civil Rights Act of 1964?
Under Title VII, Wang is being discriminated against on the basis of his membership in a protected class.
Adjudicating disputes is one of the primary roles of the U.S. judiciary.
Corporate officers have only express authority and no implied authority.
Which of the following is true of Immanuel Kant's form of principles-based ethics?
It includes the notion that rights imply duties.?
The Financial Stability Oversight Council has the power to
compel the Federal Reserve to assume an oversight position over certain institutions that pose a risk to financial markets.
Which of the following is specifically exempted from coverage by the National Labor Relations Act (NLRA)?
General partners' personal assets are at risk for the full amount of the debts and liabilities of their partnership
jointly and severally, regardless of their percentage of ownership interest in the partnership.
A shareholder's derivative action suit is also called a shareholder's direct action suit.
Eva is one of the directors of Purple-On Corp. Tim works as a reporting officer in the corporation. In which of the following situations will a court most likely find Eva to have breached her duty of care?
Eva suspects Tim's intentions and still allows him to make reporting decisions.
In private arbitrations
The two parties agree to arbitrate
Which of the following is true of dissociation in a limited liability company (LLC)?
Upon a dissociation, the remaining members have the choice to either continue the LLC or to trigger dissolution.
Congress has the power to remove an administrative agency head via
impeachment by the House of Representatives and removal by the Senate.
A bill is a federal statute passed by Congress and signed into law by the president.
Based on the fact that Josh's bike is less than a year old, has recently been serviced, and is perfect for mountain riding, Rick agrees to buy the bike and signs Josh's contract. However, Josh is aware that, in reality, his bike is much more than a year old. In this scenario, Josh's behavior is reflective of _____.
Members of a limited liability company (LLC) have the right to elect to be taxed as a corporation rather than a partnership if they consider the corporate tax structure more favorable.
The Bill of Rights consists of the Constitution's first
The state trial court in Nevada issued a decision in which a party was found guilty of fraud. Should a case arise in the future with the same basic fact situation, Nevada courts will be bound by precedent to follow the reasoning and decision of this prior decision.
The Fair Debt Collection Practices Act (FDCPA) prohibits collector contact
before the debtor gives notice that she refuses to pay the debt.
Before shareholders of a corporation can file a derivative action lawsuit, they must first make a formal demand on the board of directors to take corrective action and must allow sufficient time for correction.
If an individual was legally declared to be incompetent by a court prior to entering into a contract, most states will consider the contract to be voidable.
Mutual assent refers only to the written acceptance of an offer.
The power granted by the supremacy clause to override a state law is called _____.
Which of the following statements is true of the U.N. Convention on Contracts for the International Sale of Goods (CISG)?
The CISG specifically provides that contracts are not subject to formal writing requirements.?
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