Deck 19: Business Law

Question 1

When contracts don't spell out the conditions that determine when exactly the title to goods changes hands,they aren't binding agreements between the buyer and the seller.

Answer 1

False

Question 2

Precedents are laws based on rulings by government regulatory agencies that Parliament has given authority to regulate a specific type of activity.

Answer 2

False

Question 3

Mario Wallace is a famous tenor who was scheduled to perform at the opening of a new Broadway musical,"The Tardy Tenor." Mario failed to show for the performance,or for any subsequent performance,leaving the director no choice but to utilize the services of another tenor.The musical production company sued Mr.Wallace for not fulfilling his contract.The court ordered an injunction,meaning it ordered Wallace to honour the contract and sing in the musical,as the contract stipulated.

Answer 3

False

Question 4

The main difference between civil cases and criminal cases is that criminal cases are concerned only with felonies,while civil cases are concerned only with misdemeanours.

Question 5

Marcellus behaved in a reckless and irresponsible way,resulting in significant damage to Carmella's property.However,it is clear that Marcellus didn't actually intend to do the damage.Marcellus has refused to pay for repairs.Since the damage was unintentional,Carmella cannot successfully sue Marcellus to recover the loss.

Question 6

Case law (or common law)refers to laws that result from rulings,called precedents,made by judges who initially hear a particular type of case.

Question 7

There are only three requirements for a valid contract: it must be a voluntary agreement,at least one of the parties must offer something of value,and the terms of the contract must be stipulated in writing.

Question 8

Civil law deals with disputes between private citizens.These disputes are settled in the courts when one of the parties initiates a lawsuit against the other.Common types of cases brought before civil courts involve breach of contract,negligence,or willful acts that cause harm.

Question 9

June has suffered from severe back problems because she slipped on some liquid detergent that Henrietta carelessly dropped.Henrietta meant to clean up the spill but got distracted and forgot to do so.June intends to sue Henrietta.If she does so,she will most likely seek to have June found liable for an intentional tort.

Question 10

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

Question 11

When goods are shipped from the seller to the buyer,the risk of loss due to damage or spoilage always rests with the party who held legal title to the goods at the time the loss occurred.

Question 12

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

Question 13

A precedent is a court ruling on a particular issue that judges who hear similar cases in the future are expected to follow.

Question 14

Judge Baker is set to rule on a case dealing with the interpretation of a newly enacted law.Because Judge Baker 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 15

Compensatory damages refer to monetary payments a party who breaches a contract is ordered to pay in order to compensate the injured party for the actual harm suffered due to the breach of the contract.

Question 16

Rob Smythe collects antique furniture and has been looking for a specific piece to complete a set.He found the furniture at a yard sale at Rob Bibb's house.Smythe told Bibb that he had been looking for that specific piece for several years.He offered $300,which Bibb thought was a very good price.Bibb agreed to sell.Smythe then gave Bibb a significant down payment to hold the furniture until he could pick it up.However,before Smythe could pick up the furniture from Bibb,another buyer offered him an even better deal.Bibb informed Smythe of his intention to sell to the other buyer and offered to return the down payment.Smythe informed him he really wanted the furniture and would sue if necessary.If he does so,Smythe will most likely ask the courts to remedy the breach of contract by ordering specific performance.

Question 17

Common law generally considers minors as lacking the legal capacity to enter into most types of binding contractual agreements.

Question 18

The statute of frauds stipulates that certain types of contracts,such as those involving the sale of land,must be in writing in order to be enforceable.

Question 19

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

Question 20

Mark entered into an oral agreement to sell some land to David.Both sides voluntarily agreed to the transaction,both sides provided consideration,and both had the legal capacity to enter into a contract.The sale was for a legal purchase.Under the statute of frauds,this agreement meets all of the conditions necessary for a valid contract for the sale of the land.

Question 21

The period of protection for a creator's creative work like a play,song,painting,or book lasts for the remainder of the creator's life plus an additional 100 years after their death.

Question 22

Civil law deals with disputes between private citizens that usually involve which of the following?

A)crimes
B)felonies
C)misdemeanours
D)breach of contract or torts

Question 23

Which of the following is a code that establishes the fundamental rules and principles that govern a particular organization or entity?

A)contract
B)constitution
C)tort
D)law

Question 24

What is the term for a private wrong that results in physical or mental harm to an individual or damage to that person's property?

A)tort
B)punitive judgment
C)felony
D)misdemeanour

Question 25

Merisol Winery Inc.hires several agents to represent the firm across the nation.The firm has the legal right to expect these agents to be loyal,make a sincere effort to effectively complete their duties,maintain open lines of communication about their work,and to keep accurate records.

Question 26

What is suggested by a comparison of the standard of proof needed to win civil cases and criminal cases?

A)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.
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 standard of proof is the same for both types of cases-the case must be proven beyond a reasonable doubt.

Question 27

Principals are obligated to compensate agents in a timely manner and to reimburse agents for reasonable expenses incurred while acting for the principal.

Question 28

In bankruptcy proceedings the first in line to receive payments is the Canada Revenue Agency.

Question 29

What laws,which may be written and passed by federal,provincial,or city governments,are enacted by legislative bodies?

A)common laws
B)civil laws
C)all laws
D)statutory laws

Question 30

Tim Tuttle acts as a principal for his firm when he makes sales calls to secure contracts for the testing services that his firm provides.

Question 31

A civil law court would be most likely to hear cases concerning which of the following?

A)robbery or theft
B)embezzlement and identity theft
C)slander, libel, and/or wrongful death
D)murder and/or arson

Question 32

An agent may be acting illegally if he or she disobeys lawful instructions issued by the principal.

Question 33

Bernie Ashby travels throughout the country representing the Cosgate Corporation Advertising Agency.He visits with major corporate accounts and has the authority to negotiate binding sales contracts.If Bernie creates a crime while pursuing his duties,the Cosgate Corporation will be held legally responsible for his actions even if they did not approve or support his illegal actions.

Question 34

Scope of authority for an agent is the extent to which an agent has the authority to act for and represent the principal.

Question 35

Rio Bravo Theme Park is known for its variety of roller coasters.Recently,it was reported that two cars on the Macho Nacho roller coaster left the tracks,resulting in serious injuries to four riders.These riders are suing the Theme Park for damages,claiming that the maintenance procedures for the coasters were carelessly performed by the park's staff.When hearing the lawsuits,the courts will seek to determine whether Rio Bravo Theme park could be which one of the following?

A)guilty of a felony
B)liable for a breach of contract
C)guilty of a misdemeanour
D)liable for an unintentional tort

Question 36

The law recognizes that an agent's primary responsibility is to look out after his or her own interests.

Question 37

Case law,also known as common law,refers to laws that arise from which of the following?

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

Question 38

Which of the following is true about contracts?

A)They are agreements that are enforceable in a court of law.
B)They are oral agreements that are enforceable by the government.
C)They are needed to start a business.
D)They involve forcing one party to perform his or her obligations.

Question 39

Which of the following does a judgment handed out in civil court typically entail?

A)only imprisonment
B)compensation for injury or requirements for specific performance
C)public reprimands
D)a combination of fines and imprisonment

Question 40

A key duty of the agent in a principal-agent relationship is to act in the best interests of the principal.

Question 41

Describe the characteristics of a contract and explain how the terms of contracts are enforced.

Question 42

Which type of damages are monetary payments a party who breaches a contract is ordered to pay in order to compensate the injured party for the actual harm suffered due to the breach of contract?

A)specific damages
B)punitive damages
C)nominal damages
D)compensatory damages

Question 43

Which of the following requires certain types of contracts to 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)statue of limitations
C)parole evidence rule
D)statute of authenticity

Question 44

The time period in which a lawsuit must be initiated is specified by which of the following?

A)parole evidence rule
B)court calendar
C)probationary period
D)statute of limitations

Question 45

What type of authority exists when a principal's behaviour leads a third party to reasonably believe that someone has the authority to act as an agent,even though no such agency actually exists?

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

Question 46

Henry,who is already 25,promised in writing to give his buddy Jake $250 as a gift when he celebrated his 25th birthday.Jake thanked Henry and kept the written promise in his wallet.But when the date arrived,Henry decided not to make the payment.Jake was understandably disappointed and plans to sue Henry for breach of contract in order to require him to make good on his promise.But Jake's lawsuit is unlikely to be successful because of which of the following?

A)Jake didn't offer any consideration to Henry.
B)Jake was a minor at the time of the agreement.
C)Henry lacks the legal capacity to enter into a contract.
D)There was no mutual assent.

Question 47

What type of authority is based on the law's recognition that agents must have the authority to act in certain ways in order to perform their duties,even if the principal does not explicitly provide this authority?

A)express authority
B)implied authority
C)indirect authority
D)apparent authority

Question 48

Define a principal-agency relationship,and describe three duties that each party owes the other in this type of relationship.

Question 49

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,the courts are most likely to apply the remedy of which of the following?

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

Question 50

What is "mutual assent"?

A)an offer freely given by one party and freely accepted by the other party
B)both parties living up to a contractual agreement
C)both parties agreeing to settle a tort dispute through mediation rather than going to court
D)one party offering something of value to the other party

Question 51

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

A)physical possession of the good
B)risk of loss
C)title to the good
D)money

Question 52

Which of the following duties does an agent owe to the principal?

A)reimbursement for expenses
B)compensation
C)indemnification
D)loyalty

Question 53

Aaron Wright is a sales agent for Grandfather Clocks Unlimited,and he has the company's explicit recognition of his ability to finalize sales contracts.He negotiated a sales agreement with Benfield's Furniture Stores for the delivery of 50 clocks by the 30th of the month.Benfield's did not receive the clocks on time to satisfy the customer orders they intended to fill.The principal is liable for making good on this promise because Aaron was acting according to which of the following?

A)specific performance
B)scope of authority
C)due diligence
D)statute of limitations

Question 54

When a loan officer grants a loan to a borrower on behalf of the bank,he or she is acting as which of the following?

A)an agent
B)a trustee
C)a mediator
D)a securities analyst

Question 55

Back in 1998,Barb Ballister agreed to sell her 1963 Corvette,which she stated was in "mint condition," to Tyler Burgess for $47 000.After they agreed upon the price,the transfer of title,and other details,Barb and Tyler met at a notary and finalized the sale.Soon after taking possession of the car,Tyler realized that there were several cosmetic problems with the car that Barb did not originally disclose.Tyler intended to take Barb to court to seek monetary payments to cover his costs to restore the car to the desired condition.However,he got busy with other matters and kept putting things off.Now,several years later,he is finally ready to take legal action.What is one problem Tyler may face?

A)Barb didn't provide any consideration, so the contract isn't legally enforceable.
B)He has waited so long that the statute of limitations may have expired.
C)He paid a price well below the true market value, thus undermining his right to sue.
D)Because Barb is a private citizen rather than a business, Tyler can't sue for monetary damages.

Question 56

What is meant by an agent's scope of authority? Name and describe three types of scopes of authority.

Question 57

A distinctive mark,symbol,word,phrase,or motto used to uniquely identify the goods of a particular business,like the Nike "swoosh," can be protected by registering it as which of the following?

A)copyright
B)trademark
C)patent
D)symbol

Question 58

In which type of contract are the terms explicitly spelled out either orally or in writing?

A)a notarized contract
B)an express contract
C)a tangible contract
D)a specified contract

Question 59

In a valid contract,consideration can take the form of which of the following?

A)a previous contract
B)a promise to perform part of a specific act
C)property
D)nonmonetary payments