Business Law Answer Key

Business Law Answer Key

This is a comprehensive key to all the questions, including some chapters which we did not cover. You are responsible only for chapters on the syllabus.

Ch. 1 A. 3 B. 5 C. 1 D. 2 E. 4 1. F 2. T 3. F 4. T 5. T 6. B 7. D 8. D 9. A 10. E Ch. 3 A. 5 B. 4 C. 2 D. 1 – 3 E. 3 – 1

Interrogatories are a pretrial procedure involving written questions to be signed under oath. A deposition is a pretrial procedure involving oral questions answered under oath 1.

F 2. F 3. T 4. T- F 5. T

• About one-half of all lawsuits settle before trial. – True
• In a lawsuit for money damages, both the plaintiff and the defendant are generally entitled to a jury. – True

6. E 7. D 8. C 9. C 10. D Ch. 4 A. 5 B. 6 C. 1 D. 2 E. 3 F. 4

Stare Decisis

The rule that requires courts to decide cases based on the precedent

Promulgate

The act of an administrative agency creating a new rule

1. T 2. F- T 3. T 4. F 5. F 6. F

• The due process clause requires that any citizen is entitled to a jury trial before any right or property interest is taken – False
• Administrative agencies play an advisory role in the life of many industries but do not have the legal authority to enforce their opinions. – False

7. D 8. B 9. C 10. D 11. C 12. B

If Colorado passes a hotel tax of 8 percent for Colorado residents and 15 percent for out of state visitors. The new law is void, based on the commerce clause. Which of these is an example of judicial review? A federal court declares a statute unconstitutional, What is an example of a subpoena?

A court order requiring a deponent to answer questions. Ch. 5 – Perfect!!!!!!!

A. 4 B. 3 C. 6 D. 2 E. 1 F. 7 G. 5 1. F 2. F (not enough information; battery for sure

) 3. T 4. F 5. T 6. D 7. An 8. C 9. C 10. C Ch. 6 A. 3 B. 5 C. 1 D. 2 E. 4 1. F 2. T (depends on which state – state law differs on this point)

3. F 4. T-F 5. T 6. F

• Some states are comparative negligence states but the majorities are contributory negligence states. -) False A
• landowner might be liable if a dinner guest fell on a broken porch step but not liable if a trespasser fell in the same place. ) True

7. C 8. D 9. D 10. C Ch. 7 A. 5 B. 1 (this seems to be the best choice, although the definition sounds more like the Anti-Money Laundering Act rather than RICO, which was originally passed to combat organized crime).

C. 4 D. 6 E. 3 F. 2 1. F 2. T 3. T 4. F 5. F

• Corporate officers can be convicted of crimes: corporation they cannot be -) False

An affidavit is the government’s formal charge of criminal wrongdoing. Affidavit- a written statement signed under oath.

6. D 7. E 8. A 9. A- E 10. B

A prosecutor concerned that he may lack sufficient evidence to obtain a conviction may agree to an affidavit. Professor asks Janice, his teaching assistant to please drive the professor’s car to the repair shop. Janice gets in and drives, not to the garage, but 1,400 miles farther west to Las Vegas. Janice has committed Embezzlement. Ch. 9 A. 4 (this is how the textbook defines implied contracts, but keep in mind that if you spell out the terms of a contract, this is going to be an express contract; an implied contract is one which can be inferred from the conduct of the parties).

B. 5 C. 3 D. 1 E.

• Implied contract- An agreement based on words and actions of the parties
• Consideration- Bargaining that leads to an exchange between the parties
• Liquidated debt- a debt in which the amount is undisputed.
• Bilateral contract- a common-law principle requiring the acceptance to be on exactly the terms of the offer.

1. F 2. F 3. F 4. T 5. F 6. A (although E seems ok to me as well)

7. C (although A seems ok to me as well, perhaps not enough facts are provided, so C is the better answer)

8. E 9. C- E 10. E Abdul hires Sean to work in his store and agrees to pay him $9 an hour.

• This agreement is governed by the UCC-)False

If someone makes an offer and that person puts another offer on the table, they are rejecting the offer. Ch. 10 A. 3(intent is just one of the elements to prove fraud)

B. 4 C. 5 D. 1 E. 2

• Part Performance- Entry onto land, or improvements made to it, by a buyer who has no written contract
• Exculpatory Clause- a contract clause intended to relieve one party from potential tort liability

1. T 2. F 3. T- F 4. T 5. T 6. F

• Non compete clauses are suspect because they tend to restrain free trade. -) True

7. B 8. A 9. D 10. An 11. C 12. D

If people are buying and selling a house and neither party has a copy of the emails, they still have the parties still have a binding contract for the sale of Louise’s House. You drive up to a fancy restaurant and hand your car keys to the valet. You have created a Bailment. Bailment: giving possession and control of the personal property to another person.

CH. 16 A. 3 B. 4 C. 1 D. 5 E. 2 1. T-F 2. F-T 3. F 4. F-T 5. T

• A principal is always liable on a contract, whether he is fully disclosed, unidentified or undisclosed. ) True •
• When a contract goes wrong, a third party can always recover damages from the agent, whether the principal is fully disclosed, unidentified, or undisclosed. -) False
• An agent may never act for two principals whose interest conflict-) false

6. B 7. C 8. B-D 9. C 10.

A-none

Someone painting the outside of a building you own crashed through a window, injuring a visiting executive. Which of the following questions would our lawyer not need to ask to determine if the painter was your employee? Had you checked the painter’s references? Which of the following activities committed by an agent is not likely to create liability for the principal. A car accident while driving to work.

Ch. 17 A. 4 B. 6 C. 5 D. 2 E. 1 F. 3 1. F 2. F 3. F 4. T 5. T 6. F 7. F 8. F 9. F 10. E 11. A 12. B 13. C 14. E 15. A CH. 18 A. 1 B. 3 C. 4 D. 2 E. 5 1. T 2. T 3. F 4. F 5. T 6. B 7. E 8. D 9. D 10. B CH. 20 A. 2 B. 5 C. 4 D. 1 E. 3 1. F 2. T 3. T 4. F 5. F 6. C 7. A 8. D 9. C 10. C CH. 22 A. 4 B. 5 C. 3 D. 1 E. 2 1. F 2. T 3. F 4. F 5. T 6. D 7. C 8. B 9. B 10. C CH. 25 A. 4 B. 3 C. 5 D. 1 E. 2 1. T 2. T 3. F 4. T 5. T 6. B 7. C 8. D 9. B 10. A