Business Law Final Review

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  1. If the parties to a contract under the UCC do not specify all terms, the courts may use the UCC to help ____________. To do so, the courts look to ___________ for ideas on practice or methods relevant to the contract.
    • Fill the gap
    • Trade usage
  2. T/F     The UCC allows a contract to exist even if some terms are missing, but there must be written evidence of intent of both parties to form the initial contract
  3. The UCC requires good-faith dealings on the part of __________
  4. T/F      Under the UCC, unless specifically required in a particular manner. Acceptance of an offer can be communicated in any "reasonable" manner.
  5. T/F     The main purpose of the International Standards Organization (ISO) is to serve as a "clearing house" for potential sellers and buyers of commercial, wholesale product
  6. If a seller delivers a product with a defect in it, and the time for completion of the contract has not ended, the seller has the right to try to _________ the defect.
  7. T/F      Warranty of title to goods being purchased must be expressed in a contract as the UCC does not presume that kind of warranty exists otherwise.
  8. A seller's promise or guarantee as to the quality, safety, performance, or durability of goods being sold is called___________.
    Express warranty
  9. T/F      The Convention on the Recognition and Enforcement of Foreign Arbitrable Awards has not been signed by the United States and a number of other major nations, making it not very useful so far.
  10. When a seller fails to deliver goods on time and the buyer must buy substitute goods due to the breach, the difference in the contract price and the price of the substitute goods is called _________.
  11. If a negotiable instrument may be freely trade din the market without concern for other contractual responsibilities, the party with the instrument is said to be _________.
    A holder in due course
  12. T/F    A certificate of deposit is a draft drawn on a bank and payable on demand.
  13. T/F    A legally binding written order to pay a fixed sum of money that involves three parties---a drawer, drawee, and a payee--- is a draft.
  14. A promise by one party (the maker) to pay a certain sum of money to another party (the payee) is called a ________.
  15. T/F    Under the UCC, the open accounts for commercial transactions are permissible, but "revolving accounts" are not as the security is too uncertain.
  16. A promise by a third party to be responsible for a borrower's payment obligations to a creditor is called a _______.
  17. A lien placed on personal property is called a _________
    Possessory lien
  18. T/F     If a debt is past due, a court may order seizure of goods to prevent the goods from being disposed of by the debtor.
  19. T/F    Before a person may file for bankruptcy, they must complete a debtor education course.
  20. If a business files for bankruptcy and keeps operating in bankruptcy, it is said to be in ________.
    Chapter 11
  21. T/F    Any person in financial difficulty has the right to file for Chapter 7 (liquidation) bankruptcy no more than every 10 years.
  22. Which of the following is a debt least likely to be extinguished by bankruptcy:
    A) student loans.
    B) alimony.
    C) back taxes.
    D) none of the other choices are likely to be extinguished
    D) none of the other choices are likely to be extinguished
    (this multiple choice question has been scrambled)
  23. Legally, the principal of a corporation is ______.
    The board
  24. In a general partnership, the partners usually have ________ liability.
  25. T/F    Partners in a partnership are said to have a duty based on ordinary care to each other.
  26. T/F    The limited partners in a limited partnership may not manage the partnership.
  27. If the shares of stock in a company are held by a small group of shareholders and not actively traded, the company is said to be a ___________.
    Close Corporation
  28. T/F Sole proprietorships need not file Federal Sole Proprietorship tax returns.
  29. The Federal Trade Commission regulation that guides disclosure when franchise offerings are made is called the ____________.
    Franchise rule
  30. Investors in a Limited Liability Company are called _____
  31. If the owner of a corporation abuses the purpose of the corporation so as to avoid payments due to creditors, it is possible that the court will ______ of the corporation.
    Pierce the veil
  32. T/F    LLCs ordinarily, by law, have limited life.
  33. A person authorized to execute all transactions connected with a business is which class of agent?
  34. T/F    When a principal behaves as if she intended to allow an unauthorized agreement by an agent, there is said to be express ratification
  35. Among the duties of a principal to an agent, includes paying for travel expenses and other normal expenses incurred on behalf of the principal. This is called the ___________
    Duty to reimburse
  36. T/F     If an agent acts on behalf of a principal in dealing with a third party, and the third party never knows of the principal, by law there cannot be an enforceable contract between the third party and the principal.
  37. If an agent receives oral or written instructions from the principal about the business that may be done on behalf of the principal, there is said to be ___________ authority.
  38. In modern language, a servant whose conduct is controlled by a master is generally called an ____________.
  39. When someone is hired to do a job and is not an agent or servant, and generally controls the details of the work done, the person is likely an __________
    Independent contractor
  40. T/F    The doctrine of employment-at-will has been replaced in most states by laws that control proper methods of termination
  41. T/F    Under the Communications Decency Act, employers may not control the use of social media, such as Facebook, by employees, unless obscene material is involved.
  42. If an employer issues as employee handbook, the employer may also issue a  _____________ that it is not bound by the terms of the handbook and may change it any time.
  43. The primary structure of administrative law is determined by the ________ enacted by Congress in 1946.
    Administrative Procedures Act
  44. T/F    Statements issued by an agency to provide its staff and the public with guidance  regarding how an agency views the substance of a rule are interpretative rules.
  45. T/F When an agency writes a new rule, before it is finalized, it is published in the Code of Federal Regulations.
  46. T/F   When a firm is subject to a regulation, an agency may not require a firm to report violations it commits, as that violates the Fifth Amendment
  47. When an agency has an adjudicatory hearing about a matter, the hearing may be under the supervision of an ____________.
    Administrative law judge
  48. T/F    In Invention Submission v. Rogan, the appeals court held that the Patent Office violated the APA by naming a firm in ads about a bad business practice.
  49. _______ means there can be no judicial review until the agency's decision is final so that the court will have the final issues in the case before it and not hypothetical disputes.
  50. ______ means the complaining party may seek judicial review only in courts that have power to hear the case.
  51. T/F    How far a court of appeals may go in examining an action undertaken by an agency is referred to as statutory interpretation.
  52. T/F     Congress may slash the budget of an administrative agency if it is not pleased with its performance.
  53. T/F    Congress requires cost-benefit analyses to be completed by an agency considering a regulation that would impose more than $100 million in cost.
  54. If a citizen wants access to government documents held by an agency, it may be necessary to file a __________ request.
  55. T/F     For an employer to be Certified Contractor under the Drug Free Workplace Act, all employees must be subject to an annual drug test.
  56. If an employee signs an agreement that they will not recruit fellows employees for another company when they leave their current place of employment, it is called an _______.
    Anti-raiding covenant
  57. If an employee is fired for performing a public duty, such as reporting for military duty, there is likely a right for a suit against the employer for _________________
    Wrongful discharge
  58. At the workplace, employees who work around dangerous chemicals must be trained about the chemicals and what to do in case of a problem under the __________.
    Hazardous communication standard
  59. T/F    Federal minimum wage law only applies to workers over the age of 18.
  60. The federal law that regulates pensions and other worker benefits is commonly referred to as _____________
  61. T/F     States may not regulate occupations by licensing unless Congress has approved such regulation due to the impact on Interstate Commerce
  62. Under the Norris-LaGuardia Act, federal courts are prohibited against issuing __________ in case of nonviolent labor disputes.
  63. T/F    If there is a dispute between a union and an employer that cannot be resolved by arbitration, a resolution will be imposed by the National Labor Relations Board after 90 days have passed.
  64. T/F    For a union representation election to be held, at least 50 percent of the employees must have signed authorization cards calling for an election.
  65. In rights-to-work states, ____________ may be prohibited
    Agency shops
  66. T/F    The NLRA as amended, specifices that unions may not bargain over the terms of an employer's drug test policy
  67. If a union uses economic pressure to try to force others to stop doing business with an employer not directly involved in a primary labor dispute, it is a _________, and likely illegal.
    Secondary boycott
  68. T/F    Title VII was amended in 2010 to include sexual orientation to the list of protected classes in employment.
  69. Preferential treatment in favor of members of a protected class is known as _________.
    Reverse discrimination
  70. T/F    The Pregnancy Discrimination Act requires employers to provide "reasonable accommodation" for pregnant women employees
  71. If an employee is promised a reward in the workplace in exchange for sexual favors, there is said to be _________ sex discrimination.
    Quid pro quo
  72. A person bringing a discrimination suit in court must establish a ___________ for the matter to proceed.
    Prima facie case
  73. T/F   If an employer is accused of intentional discrimination in violation of Title VII, that is referred to as a claim of per se discrimination.
  74. If an employee suffers intense harassment and quits because of it, there is said to be ________.
    Constructive discharge
  75. T/F    If an employment rule which, on its face is neutral, has the effect of causing illegal discrimination, there is said to be a disparate impact.
  76. There may be a defense of ___________ in a situation where an employer rewards on the basis of productivity and it happens to produce the appearance of discrimination in pay.
    Merit system
  77. T/F    Executive Order 11246, concerning proper utilization of workers on the basis of sex and minority status, applies to all companies with 50 or more employees
  78. If a firm subject to Executive Order 11246 is not in compliance, it may be ordered to institute an ______ program.
    Affirmative action
  79. If an employee is disabled under the ADA, an employer is not expected to make a reasonable accommodation if it would impose an _______ on business operations.
    Undue hardship
  80. T/F    A person may be covered by the ADA even if one is not disabled if other people believe the person is disabled
  81. T/F    Employers should, in the hiring process, collect "competent information" about applicants' disabilities so the employer can properly consider reasonable accommodations.
  82. T/F   State Implementation Plans under the Clean Air Act are rewritten by the EPA every five years.
  83. If a firm emits pollution that goes on to a neighbor's property, the neighbor may have a suit for ________ or for ___________.
    • Trespass
    • Nuisance
  84. Areas that have "dirty air" because they have not met Clean Air Act standards are called __________.
    Nonattainment areas
  85. Under the Clean Water Act, a point source emitter of effluent must obtain a _________ that specifies how much may be dumped.
    Discharge permit
  86. T/F      Pollution that runs off from agriculture is subject to much less regulation than pollution emitted by point sources, such as factories.
  87. Chemicals in commercial use are registered with the EPA under ___________
  88. T/F    Pesticides are registered with the EPA under the Resource Conservation and Recovery Act
  89. Hazardous waste generators, transporters, and disposal site operators must keep track of the waste by use of a ________
  90. Much of the protection of endangered species focuses on the protection of their ___________.
  91. Under CERCLA, or Superfund, if it is determined that an abandoned waste site needs remediation, it is placed on the __________.
    National Priority List
  92. When urban land is abandoned, due to the fear of costs of compliance with environmental standards, the property is referred to as a __________.
  93. T/F   To protect ozone in the upper atmosphere against destruction, an international treaty agreed to stop the production of chemicals that caused the change.
  94. The copying or imitating of a trademark without authority to do so is called ___________.
  95. T/F    Trademarks are called "trade dress" if they apply to items of clothing.
  96. T/F   When a trademark holder suspects another party of violating a trademark, enforcement efforts must be initiated by filing a complaint with the Patent and Trademark Office.
  97. T/F     If a seller causes confusion about the origins of a product by improper use of a trademark there is infringement.
  98. A new hotel chain names its hotels Arranllianna. What classification of trademark would that name likely have?
    Arbitrary and fanciful
  99. The improper use of a trademark in a domain name is called _________
  100. Producers in Indiana decide that all products actually made in Indiana can have the label "Made in Indiana." That kind of mark is a ______ mark.
  101. Key conditions for an invention to be patented are that it is ________ and ___________.
    Original and novel
  102. T/F    Patents have always been statutory law going back to the writing of the Constitution
  103. T/F   The theft of commercial trade secrets may be held to be a felony
  104. There is no infringement of a copyright if the copying is considered to be _________
    Fair use
  105. T/F    If a trade secret becomes known by a competitor, the secret is held to be lost.
  106. T/F    For a trade secret to be valid, a firm must have all employees sign an agreement to protect the secret for a minimum of two years after leaving the place of employment
Card Set
Business Law Final Review
Chapters 10-18
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