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Test Bank For Business Law Today Comprehensive, 8th Edition

Test Bank For Business Law Today Comprehensive, 8th Edition is your complete study solution, ensuring you master the exam syllabus with ease and confidence.

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    Table of Contents Preface ............................................................................................................................................................. ix UNIT ONE: The Legal Environment of Business 1 The Legal Environment ........................................................................................................................ 1 2 Constitutional Law .............................................................................................................................. 17 3 Courts and Alternative Dispute Resolution .................................................................................... 33 4 Torts and Cyber Torts ......................................................................................................................... 49 5 Intellectual Property and Internet Law ............................................................................................ 65 6 Criminal Law and Cyber Crimes ...................................................................................................... 81 7 Ethics and Business Decision Making .............................................................................................. 97

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    UNIT TWO: Contracts 8 Nature and Classification ................................................................................................................. 113 9 Agreement .......................................................................................................................................... 129 10 Consideration ..................................................................................................................................... 145 11 Capacity and Legality ....................................................................................................................... 163 12 Genuineness of Assent ...................................................................................................................... 179 13 The Statute of Frauds ........................................................................................................................ 197 14 Performance and Discharge ............................................................................................................. 213 15 Breach and Remedies ........................................................................................................................ 229 16 Third Party Rights ............................................................................................................................. 245 17 E-Contracts and E-Signatures .......................................................................................................... 261 UNIT THREE: Sales and Lease Contracts 18 The Formation of Sales and Lease Contracts ................................................................................. 277 19 Title and Risk of Loss ........................................................................................................................ 293 20 Performance and Breach of Sales and Lease Contracts ................................................................ 309 21 Warranties and Product Liability .................................................................................................... 325 UNIT FOUR: Negotiable Instruments 22 Negotiability and Transferability .................................................................................................... 341 23 Rights and Liabilities of Parties ....................................................................................................... 357 24 Checks and Banking in the Digital Age.......................................................................................... 375 UNIT FIVE: Debtor-Creditor Relationships 25 Security Interests in Personal Property .......................................................................................... 391 26 Other Creditors’ Remedies and Suretyship ................................................................................... 407 27 Bankruptcy ......................................................................................................................................... 423

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    CHAPTER 45: INSURANCE, WILLS, AND TRUSTS 1328 UNIT SIX: Business Organizations 28 Agency Relationships in Business ................................................................................................... 439 29 Sole Proprietorships and Franchises ............................................................................................... 455 30 Partnerships ....................................................................................................................................... 471 31 Limited Liability Companies and Special Business Forms .......................................................... 487 32 Corporate Formation and Financing .............................................................................................. 501 33 Corporate Directors, Officers, and Shareholders .......................................................................... 517 34 Corporate Acquisitions, Takeovers, and Termination ................................................................. 533 35 Investor Protection, Insider Trading, and Corporate Governance ............................................. 549 UNIT SEVEN: Government Regulation 36 Administrative Law .......................................................................................................................... 567 37 Antitrust Law ..................................................................................................................................... 583 38 Consumer Law ................................................................................................................................... 599 39 Environmental Law ........................................................................................................................... 615 40 Employment, Immigration and Labor Law ................................................................................... 631 41 Employment Discrimination............................................................................................................ 647 42 Liability of Accountants and Other Professionals ........................................................................ 663 UNIT EIGHT: Property and Its Protection 43 Personal Property and Bailments .................................................................................................... 681 44 Real Property and Landlord-Tenant Law ...................................................................................... 697 45 Insurance, Wills, and Trusts............................................................................................................. 713 UNIT NINE: The International Legal Environment 46 International Law in a Global Economy ......................................................................................... 729

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    CHAPTER 1: THE LEGAL ENVIRONMENT 1 Chapter 1 The Legal Environment N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows. N A question new to this edition of the Test Bank. + A question modified from the previous edition of the Test Bank, = A question inclu ded in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. The law establishes rights, duties, and privileges that are consistent with the values of society. ANSWER: T PAGE: 2 TYPE: = NAT: AACSB Reflective LOC: AICPA Critical Thinking 2. How judges apply the law to specific disputes may depend in part on their personal philosophical views. ANSWER: T PAGE: 2 TYPE: = NAT: AACSB Reflective LOC: AICPA Critical Thinking 3. Law includes enforceable rules governing relationships between individuals and their society.

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    CHAPTER 1: THE LEGAL ENVIRONMENT 2 ANSWER: T PAGE: 2 TYPE: + NAT: AACSB Analytic LOC: AICPA Legal 4. The natural law philosopher believes that the law should reflect universal moral and ethical principles that are part of human nature. ANSWER: T PAGE: 3 TYPE: = NAT: AACSB Ethics LOC: AICPA Critical Thinking

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    CHAPTER 1: THE LEGAL ENVIRONMENT 3 5. Constitutional law includes only the U.S. Constitution. ANSWER: F PAGE: 6 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 6. A federal law that conflicts with the U.S. Constitution will be deemed unconstitutional. ANSWER: T PAGE: 6 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 7. A state law that conflicts with the U.S. Constitution will be deemed unconstitutional. ANSWER: T PAGE: 6 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 8. The U.S. Constitution is the supreme law of the United States. ANSWER: T PAGE: 6 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 9. Whether a law is constitutional depends on its source. ANSWER: F PAGE: 6 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal

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    CHAPTER 1: THE LEGAL ENVIRONMENT 4 10. A state constitution is supreme within the state’s borders so long as it does not conflict with the U.S. Constitution or a federal law. ANSWER: T PAGE: 6 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal 11. Uniform laws apply in all states, including those in which the laws have not been adopted. ANSWER: F PAGE: 7 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal 12. Federal statutes apply to all states. ANSWER: T PAGE: 7 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal 13. Every state has adopted the Uniform Commercial Code in its entirety. ANSWER: F PAGE: 7 TYPE: N NAT: AACSB Reflective LOC: AICPA Legal

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    CHAPTER 1: THE LEGAL ENVIRONMENT 5 14. Federal administrative agencies specify the powers of Congress. ANSWER: F PAGE: 8 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 15. State agency regulations take precedence over conflicting federal agency regulations. ANSWER: F PAGE: 8 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 16. Common law is no longer a source of legal authority. ANSWER: F PAGE: 10 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal 17. Common law is a term for the law that is known to most of us. ANSWER: F PAGE: 10 TYPE: N NAT: AACSB Analytic LOC: AICPA Critical Thinking 18. A decision on a given issue by a court is not binding on an inferior court. ANSWER: F PAGE: 11 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 19. Judges use precedent when deciding a case in a common law legal system.

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    CHAPTER 1: THE LEGAL ENVIRONMENT 6 ANSWER: T PAGE: 11 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 20. Stare decisis is a doctrine obligating judges to follow precedents established within their jurisdictions. ANSWER: T PAGE: 11 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 21. Courts do not depart from precedents. ANSWER: F PAGE: 11 TYPE: = NAT: AACSB Reflective LOC: AICPA Critical Thinking 22. A court may depart from a precedent if the court decides that the precedent should no longer be followed. ANSWER: T PAGE: 11 TYPE: = NAT: AACSB Reflective LOC: AICPA Critical Thinking

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    CHAPTER 1: THE LEGAL ENVIRONMENT 7 23. Equity is a branch of law that seeks to supply remedies other than damages. ANSWER: T PAGE: 12 TYPE: N NAT: AACSB Analytic LOC: AICPA Legal 24. A defendant is a person against whom a lawsuit is brought. ANSWER: T PAGE: 12 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 25. A plaintiff is a person against whom a lawsuit is brought. ANSWER: F PAGE: 12 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 26. Monetary damages is a remedy at law. ANSWER: T PAGE: 12 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 27. In most states, a court can grant legal remedies or equitable remedies, but not both in the same case. ANSWER: F PAGE: 13 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 28. A court’s order to a party to do or to refrain from doi ng a particular act is a rescission.

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    CHAPTER 1: THE LEGAL ENVIRONMENT 8 ANSWER: F PAGE: 14 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 29. Equitable remedies include injunctions and decrees of specific performance. ANSWER: T PAGE: 14 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 30. A substantive law creates or defines legal rights and obligations. ANSWER: T PAGE: 16 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal 31. Criminal law focuses on duties that exist between persons. ANSWER: F PAGE: 16 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal

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    CHAPTER 1: THE LEGAL ENVIRONMENT 9 32. International law is the law of a foreign nation and varies from country to country. ANSWER: F PAGE: 17 TYPE: + NAT: AACSB Analytic LOC: AICPA Legal 33. A reference to “28 U.S.C. Section 1332” means that a federal court’s decision can be found on Page 28 of Section 1332 of the United States Cases . ANSWER: F PAGE: 23 TYPE: N NAT: AACSB Analytic LOC: AICPA Research 34. Rules and regulations adopted by federal administrative agencies are compiled in the Code of Federal Regulations . ANSWER: T PAGE: 24 TYPE: = NAT: AACSB Analytic LOC: AICPA Research 35. Most state trial court decisions are not published. ANSWER: T PAGE: 24 TYPE: = NAT: AACSB Analytic LOC: AICPA Legal MULTIPLE-CHOICE QUESTIONS 1. To Pete, the written law of a particular society at a particular time is most significant. Pete is

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    CHAPTER 1: THE LEGAL ENVIRONMENT 10 a. a legal positivist. b. a legal rationalist. c. a legal realist. d. a person who adheres to the natural law tradition. ANSWER: A PAGE: 3 TYPE: = NAT: AACSB Analytic LOC: AICPA Critical Thinking 2. To Opal, the law is a tool for promoting justice. This is a view of what is sometimes called a. promotional jurisprudence. b. the just society. c. the sociological school. d. utilitarianism. ANSWER: C PAGE: 4 TYPE: N NAT: AACSB Analytic LOC: AICPA Critical Thinking

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    CHAPTER 1: THE LEGAL ENVIRONMENT 11 3. Voters in North Carolina approve a new state constitution, after which the Ocean City Council passes new ordinances, the North Carolina Department of Parks and Recreation issues new rules, and the Ocean City Chamber of Commerce sends out new instructions. Sources of law do not include a. instructions issued by the Ocean City Chamber of Commerce. b. ordinances passed by the Ocean City Council. c. rules issued by the North Carolina Department of Parks and Recreation. d. state constitutions passed by popular vote. ANSWER: A PAGE: 6 TYPE: N NAT: AACSB Reflective LOC: AICPA Legal 4. In Nebraska, the highest-ranking (superior) law is a. a case decided by the Nebraska Supreme Court. b. a provision in the Nebraska constitution. c. a rule created by a Nebraska state administrative agency. d. a statute enacted by the Nebraska legislature. ANSWER: B PAGE: 6 TYPE: = NAT: AACSB Reflective LOC: AICPA Legal 5. Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforced by a. no one. b. the federal government only. c. the state of Hawaii only.

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    CHAPTER 1: THE LEGAL ENVIRONMENT 12 d. the United States Supreme Court only. ANSWER: A PAGE: 6 TYPE: + NAT: AACSB Reflective LOC: AICPA Legal 6. If a provision in the Florida state constitution conflicts with a provision in the U.S. Constitution a. neither provision applies. b. the provisions are balanced to reach a compromise. c. the state constitution takes precedence. d. the U.S. Constitution takes precedence. ANSWER: D PAGE: 6 TYPE: = NAT: AACSB Reflective LOC: AICPA Legal 7. The U.S. Congress enacts a new federal statute that sets different standards for the liability of businesses selling defective products. This statute applies a. only to matters not covered by state law. b. only to those states that adopt the statute. c. to all of the states. d. to none of the states. ANSWER: C PAGE: 6 TYPE: + NAT: AACSB Reflective LOC: AICPA Legal

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