Deck 19: Online Appendix

Question 1

Laws are rules that govern the conduct and actions of people in a given society and are enforced by the government.

Answer 1

True

Question 2

The Uniform Commercial Code is a uniform act governing the sale of goods, leases, transfer of funds, and a variety of other business­related activities.

Answer 2

True

Question 3

A tort is a private wrong that results in physical or mental harm to an individual, or damage to that person's property.

Answer 3

True

Question 4

The statute of limitations limits the size of monetary payments a jury can award to the injured party in civil trials.

Question 5

Civil law deals with disputes between private parties.

Question 6

Government agencies such as the Food and Drug Administration and Environmental Protection Agency lack authority to regulate specific industries.

Question 7

A defendant is the person who initiates a lawsuit against a plaintiff.

Question 8

Common law refers to laws that result from rulings, called precedents, made by judges who initially hear a particular type of case.

Question 9

Marcia's reckless behavior resulted in significant damage to Carmella's property. If the damage was unintentional, Carmella cannot sue Marcia to recover the loss.

Question 10

All business law contracts must be written as a formal documents that include complex and professional legal language.

Question 11

In basic terms, a contract is an agreement that is enforceable in a court of law.

Question 12

Claiwvislu liatw a gdaiisnpsut t tehse a oreth seert.t led in the courts when one of the parties initiates a

Question 13

Precedents make legal rulings unpredictable so that the parties involved are unable to decipher what the judge is likely to rule.

Question 14

The application of laws and legal principles to business relationships and transactions is known as business law.

Question 15

In the United States, the U.S. Constitution is considered to be the supreme law in the land.

Question 16

During the winter season, a customer of New Trends Store accidentally slipped on sleet and broke her hand as she was exiting the store. If she sues the store, the store can be found liable for an intentional tort.

Question 17

The same wrongful behavior can result in both civil and criminal trials.

Question 18

Compensatory damages refer to monetary payments a party who breached a contract is ordered to pay in order to compensate the injured party for the actual losses that result from the breach.

Question 19

In order for a contract to be valid, only one party needs to offer something of value to the other.

Question 20

A court judge is set to rule on a case dealing with the interpretation of a newly enacted law. Because this judge is the first to rule on this type of case, his decision will establish a precedent that other courts in the same jurisdiction will be expected to follow when dealing with similar cases in the future.

Question 21

Most approved patents are protected for 20 years from the time the application is filed with the U.S. Patent and Trademark Office.

Question 22

In order to save money, Lily photocopied her entire biology textbook, using the book on reserve at the library. Even though the book is copyrighted, this is not a violation of intellectual property laws, since she is not trying to sell the photocopied textbook.

Question 23

During a dispute over who bears the risk of loss, the courts are likely to use UCC guidelines to make their decision.

Question 24

Katie invented a desalination machine that can be installed in homes. In order to protect her invention, she must apply for a patent.

Question 25

Adoni ningj,u an csptieocni fiisc aa ccto.u rt order that requires one party to do, or to refrain from

Question 26

Erexcporgenssit iaounth tohraitt ya gise nntost mexupstli hciatvlye sthpee laleudth oourtit byu tto ias cbta isne dce ortna itnh ew caoyusr ti'ns order to perform their duties.

Question 27

The Environmental Protection Agency is given authority under _____.

A) constitutional law
B) the UCC
C) administrative law
D) statutory law

Question 28

_____ are laws that are enacted by legislative bodies and are written and passed by federal, state, county, or city governments.

A) Common laws
B) Statutory laws
C) Civil laws
D) Contract laws

Question 29

When contracts do not spell out the conditions that determine when exactly the title to goods changes hands, they are not considered binding agreements between the buyer and the seller.

Question 30

Which of the following statements is true of Article 2 of the Uniform Commercial Code?

A) It does not govern the sale of goods.
B) It has the same provisions as case law.
C) It governs leases of goods.
D) It does not govern the sale of services.

Question 31

Tom works for a consulting agency. When he makes sales calls to inform prospective clients about the services his firm provides, it can be said that he is acting as a principal for his firm.

Question 32

According to the UCC, if the contract does not specify who bears the risk, then the court assumes that the risk remains with the seller at all times.

Question 33

Chapter 13 bankruptcy is available only to individual debtors who have a regular source of income.

Question 34

Chapter 11 bankruptcy involves selling off a debtor's assets to raise cash via a process called liquidation.

Question 35

The city of Chicago passed a law that banned smoking in public places. The city council voted for a "Green Environment" and decided to increase the tax levied on tobacco as well. In this scenario, the city has passed a(n) _____.

A) federal statute
B) ordinance
C) precedent
D) bylaw

Question 36

Jim entered into a contract with John, and the contract states that Jim will supply 100 sacks of wheat at $100 per sack. However, Jim later increased the price to $120. According to the terms of the original contract, John can sue for specific performance.

Question 37

Under UCC rules, if one party breaches the contract, risk of loss falls on that party.

Question 38

A patent gives authors, artists, and other creative individuals control over their creations.

Question 39

Developed by the National Conference of Commissioners on Uniform State Laws, the _____ is the most important uniform act for businesses.

A) Code of Acceptable Business Practices
B) Statute of Frauds
C) Uniform Business Standards Act
D) Uniform Commercial Code

Question 40

A sale occurs when legal ownership to goods passes from one party to another in exchange for a price.

Question 41

Which of the following statements is true of the sale of services?

A) It is covered by the Article 5 of the Uniform Commercial Code.
B) It is governed by precedents established by case law.
C) It is covered by the Article 2 of the Uniform Commercial Code.
D) It is governed by the Thirteenth Amendment.

Question 42

_____ damages are monetary payments that a party who breached a contract is ordered to pay in order to make up for the actual harm suffered by the injured party due to the breach of contract.

A) Compensatory
B) Nominal
C) Punitive
D) Specific

Question 43

Which of the following statements is true of a civil law court?

A) It hears cases involving robbery or theft.
B) It hears cases involving slander and libel.
C) It hears cases associated with embezzlement and identity theft.
D) It hears cases related to murder and arson. A contract in which the terms are explicitly spelled out either orally or in

Question 44

Case law, also known as common law, refers to laws that arise from:

A) court decisions.
B) rulings by regulatory agencies.
C) legislative action.
D) executive orders.

Question 45

Mutual assent refers to:

A) an offer freely given by one party and freely accepted by the other party.
B) one party offering something of value to the other party.
C) both parties disputing the need for a court settlement.
D) both parties having the legal capacity to enter into a contract.

Question 46

A comparison of the standard of proof needed to win civil cases and criminal cases suggests that:

A) the standard of proof is the same for both types of cases­the case must be proven beyond a reasonable doubt.
B) the burden of proof is lower in civil cases than it is in criminal cases.
C) the burden of proof is more stringent in civil cases than it is in criminal cases.
D) the burden of proof varies in civil cases depending on the type of case and the circumstances, so that it may be either much more stringent or much less stringent than the burden in criminal cases.

Question 47

Which of the following specifies the time period in which a lawsuit must be initiated?

A) The specific performance rule
B) The UCC
C) The court calendar
D) The statute of limitations

Question 48

The sale of a good is a transaction in which _____ passes from one party to another in exchange for a price.

A) the title to the good
B) the physical possession of the good merely
C) a royalty fee
D) risk of loss exclusively

Question 49

The courts do not require specific performance in cases that require personal services, because making someone work personally for another individual could be interpreted as involuntary servitude, which is prohibited by the _____.

A) Uniform Commercial Code
B) Thirteenth Amendment to the U.S. Constitution
C) statute of limitations
D) Miranda ruling

Question 50

James, a football player, signs a three­year contract with a team. However, he simultaneously also signs another agreement with a second team that offers him more money. In this scenario, the first team can obtain a court order than prevents James from playing for any other team. This court order is referred to as a(n) _____.

A) provisional remedy
B) injunction
C) specific performance
D) nonequitable remedy

Question 51

A(n) _____ is a private wrong that results in physical or mental harm to an individual, or damage to that person's property.

A) felony
B) misdemeanor
C) tort
D) indictable offense

Question 52

writing is known as a(n) _____ contract.

A) implicit
B) tangible
C) express
D) embedded

Question 53

Henry promised to gift Jake $250 for his 25th birthday. However, on Jake's 25th birthday, Henry refuses payment and denies offering any money. If Jake sues henry for specific performance, the court is likely to rule that:

A) Henry lacks the legal capacity to enter into a contract.
B) Jake didn't offer any consideration to Henry and hence the contract cannot be enforced.
C) Jake was a minor at the time of the agreement and hence the contract is void.
D) Henry must fulfill his obligation according to the "mutual assent rule."

Question 54

Jim, a 16­year­old, entered into a contract with Ryan. Jim agreed to purchase a motorcycle from Ryan by paying monthly installments of $1,000. Which of the following is likely to be true in this scenario?

A) The contract is invalid as Jim does not have legal capacity to enter into a contract.
B) Jim is required to fulfill the contract, but only when he turns 18.
C) Ryan can demand payment from Jim's guardian as a 16­year­old is allowed to enter into a legal contract.
D) Ryan must wait till Jim turns 21 years old to require fulfillment.

Question 55

The _____ requires certain types of contracts be in writing in order to be enforceable, such as contracts that take more than a year to complete or that involve the sale of goods worth $500 or more.

A) statute of frauds
B) statute of liberties
C) statute of authenticity
D) statue of limitations

Question 56

The courts are most likely to apply the remedy of _____ when a contract involves the sale of a unique item that the injured party could not obtain from anyone but the other party to the contract.

A) punitive damages
B) restrictive injunction
C) specific performance
D) nominal damages

Question 57

_n_e_g_li_g etonrctes. arise because of careless or irresponsible behavior, known as

A) Indictable
B) Intentional
C) Felony­based
D) Unintentional

Question 58

An appellate court ruled that Pluto Inc. must not be allowed to sell its services in the state of Ohio, in a certain manner. The judge arrived at his judgement based on a prior ruling, or precedent. In this scenario, the judge has applied _____.

A) case law
B) statutory law
C) constitutional law
D) administrative law

Question 59

An appellate court judge ruled that Jim had defaulted in his promise to deliver a particular service and imposed a fine of $1,000. In this scenario, the judge would have based his decision on:

A) precedents established by case law.
B) Article 3 of the statute of frauds.
C) Article 2 of the Uniform Commercial Code.
D) administrative rulings made by the Federal Trade Commission.

Question 60

A trial for first degree murder is conducted in a criminal court and is considered a _____.

A) negligence
B) felony
C) tort
D) misdemeanor

Question 61

Describe the characteristics of a contract and what constitutes as a breach of contract.

Question 62

James, a loan officer, acts on behalf of his bank and authorizes loans to several customers. In this scenario, James is acting as a(n) _____.

A) trustee
B) beneficiary
C) agent
D) principal

Question 63

Jim, a marketing executive, has been assigned to handle the sales function. In his role, Jim is required to interact with clients and sell the company's products to the highest bidder. In this scenario, Jim possesses _____ authority.

A) implicit
B) implied
C) apparent
D) express

Question 64

Define law and briefly explain why we need laws.

Question 65

What is a sale? Explain which party assumes risk of loss during the process of transferring goods from seller to buyer.

Question 66

Unless otherwise specified in the sales contract, the UCC generally holds that the title passes from seller to buyer when:

A) the sales contract is signed.
B) the seller has performed all duties related to delivery of the good.
C) money is actually transferred from the buyer to the seller.
D) the standard examination period of 72 hours expires.

Question 67

List and describe three types of bankruptcy proceedings.

Question 68

What is intellectual property?

Question 69

Describe the three common types of intellectual property.

Question 70

In order to safeguard his interest in a machine that he invented, Montell must file for a _____.

A) service mark
B) copyright
C) trademark
D) patent

Question 71

Farms Inc. is not an agent for Naturaz Inc, but it sells Naturaz's products on its lot. To the average buyer, it may look like Farms is an agent for Naturaz. In this scenario, Farms Inc. assumes _____ authority.

A) implicit
B) apparent
C) express
D) implied

Question 72

Which of the following statements is true about the assignment of risk under the UCC when the contract does not specify who bears the risk?

A) It automatically passes to the buyer.
B) It remains with the seller.
C) It passes to the party that has legal title to the goods when the damage occurs.
D) It passes to the party who is more likely to be insured against a loss.