Business Law Exam Study Guide: Key Concepts & Definitions, Exams of Business and Labour Law

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BUSI 2301 Business Law Today Exams Practice 2025-2026 Guide

BUSI 2301 Business Law Exam One Ch 1 - 15, Test 1 Chapters Business Law Today (Intro Lo business law), Busincss Law Today, Business Law Final Exam Study Guide, Business Law Today - The Essentials Midterm, Busincss Law Today, The Essentials - Final Define lv.-~Arule of civil conduct, commanding what is right and prohibiting what Explain why we have laws. - 4S1// SRSDNSHS tame Oli AiG sole eam Obeaieiee List four sources of law. - 0) > Co Sa ES eas) Distinguish among crimes, torts, and ethics. - Crimes - offenses against society as a Explain the function of the courts. - ANSWER In a democratic society, laws generally reflect the ethical view of the majority. T/F - ANSWER. Ifa decision of an administrative agency conflicts with at statue enacted by a higher legislative body, the agency decision will prevail. T/F - ANSWERER Felonies refer to crimes that are usually punishable by just a fine. T/F - ANSWER Which source of law responds more to the changing demands of the people? - ANSWER Ses Many federal laws regulating business do so based on the Commerce Clause of the U.S. Constitution. T/F - ANSWERER In the legal system of the United States, it is possible for identically worded law to have different consequences in different sales. T/F - ANS wee Which of the following stalements is most likely Lo be true of administralive agencios? - /——-__ Administrative azoncios have the power to implomont laws. A temporary order that is issued by a court with equity powers forbidding activities that would be detrimental to others is known as: - ANS — -A restraining order. Which of the following statements best describes a difference between rules and laws? - Laws are rules that-are enacted by the government. Which of the following is true of the Uniform Commercial Code (ICC)?- ANS Individual Which of the following best describes the difference between civil law and criminal law? - Civil law deals with the enforcement or protection of private rights, whereas criminal The U.S. Supreme Court is the highest tribunal in the land, and its decisions are binding on all other courts. T/F- ANSWERS A person licensed to represent others in court is called a(n: - ANSWER SSRRY A chief officer is known as a judge in a state court of record as well as ina federal court. T/F - ANSWER laws are those that state how parties are to go forward with filing civil actions and how these actions are Lo be tried. - ANS 1) aa Appellate courts include courts of appeals and supreme courts. T/F- ANS wer Which of the folowing is true of appcals made to higher courts? - ANS Tho decision of the Which of the following statements is true of federal district courts? - ANS They hear all The location where a case is to be tried is known as a venue. T/F - ANS WER Awritten request to a court to settle a dispute is called a(n): - ANSWER GQHBISIBHOMDeLLNOH A probate court is an example of a(n): - ANS —— -Speeial court Ina small claims court, there is no jury and a judge tries the case. T/F - ANSWER Asummons is a way for parties to obtain unprivileged information from another party prior to trial TF - ANSWERS It is simpler to file a suit in a court of record than in an inferior court. T/F - ANS wer See Which of the following is true of special federal courts? - ANS They have jurisdiction Which of the following is true of the United States Supreme Court? - ANS thas appellate Which of the following is true of state urial courts? - ANS They handle cases that are first Each state is part of the federal court system and has a state court system. T/F - ANSWEHE Probate courts handle divorce and child custody cases. T/F - ANSWERER Which of the following is true of a jury trial procedure? - ANS — --The jury is soleeted before Payments made to governmental officials to obtain new business are treated as bribes by the Foreign Corrupt Practices Act. T/F- ANSWENGE Ina situation where an injured party in an accident is partly ta blame for the accident, which of the following is most likely to be true under a contribut: tem? - ANSWER The On investigation, it was found that Ken, the bookkeeper at CL Corp., had stolen money from the company's account and recorded financial transactions inaccurately to cover up for this acti For which of the following business crimes can Ken be prosecuted? - ANSWEI The offering of money, entertainment, or anything of value as a corrupt payment constitutes a bribe. TP - ANSWERER Disgorgement of profits refers to:- ANS the repayment of any profits received as a result A jury found the plaintiff's damages amounted to $100,000 but that the plaintiff was also 45% lable for the event causing the damages. Under the doctrine of comparative negligence, what damages will the plaintiff collect? - ANSWENS35IO00 To recover damages for an intentional tort, the plaintiff is required Lo prove thal there was a breach of duty by the tortfeasor to the plaintiff, T/F - ANSWE iBRIRG A trademark must be registered before the holder is afforded any rights or protections for the mark. T/F - ANSWERS To recover for a tort based on negligence, the plaintiff must show: - ANS —_-the breach of the To establish the offense of criminal copyright infringement, a prosecutor needs to prove that the infringement was done for non-financial gain. T/F - ANS wer ee The use of rogue programs to produce abnormal computer behavior is an example of computer trespass. T/F - ANSWERS The Racketeer Influenced and Corrupt Organizations Act includes civil sanctions as well as criminal ones. T/F - ANSWERER An employee who picks up inventory tools from his office with the intent to deprive the owners is an example of larceny. T/F - ANSWERS of the property For an act to be established as a tort of injurious falsehood, the false statements of fact must be communicated by the defendant to a third person. T/F - ANS wee The doctrine of strict lability can make the manufacturer of a dangerously delective product able, even if there's no proof of negligence. T/F - ANS wee fi The Racketeer Influenced and Corrupt Organizations Act provides for the recovery of three times the damages suffered by an injured party as a result of its violation. T/F - ANSWER that are illegal regardless of their effect are known as __- ANS wer Seas Private citizens are entitled to sue on the basis of the Water Pollution and Control Act. T/F - ANSWER Generally, it is the activity itself, not is effect, which is the most important element in deciding whether the Sherman Act has been violated. T/F- ANS Wer See Which of the following is true of The Water Pollution and Control Act? - ANS Tt sets limits Regulatory agencies can use their licensing power ta: - 0) > SUR TSRSS SaaS The purpose of antitrust laws is to: - -—-_-promote competition among businesses. Which of the following is true of government regulation business? - ANS _— -Government The Office of Foreign Assets Control (OF AC) is responsible for: - ANSWER SARORSIEESOnOnG The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) seeks to ensure the cleanup of waste from previous business activities. An agency's power to determine whether the activity of a regulated entity is acceptable or not is an example of - ''$1/ The law states that a unilateral contract can be formed when performance is started. T/F - ANSWERS A__ contract would be an enforceable agreement but, because of circumstances or the capacity of a party, one or both of the parties may set it aside. - ANSWERS Most busi people prefer making oral contracts regarding matters of great importance. T/F - ANSWERS When a contract is required to be sealed, a substitute for an actual seal may be used. T/F - ANSWEN Judy promises to pay Ashley $39 to babysit her children. After Ashley babysits the children, Judy pays Ashley the $50; thus cach parly has completed performance of each part of the contract. This is an example of a(n): - ANSWE QeSaCnset There is no difference between a void contract and an unenforceable contract. T/F - ANS WEI Acontract for the sale of goods is governed by the Uniform Commercial Cade. T/F - ANSWET- All agreements are contracts. T/F - ANS wer ee The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid. T/F - ANSWER Which of the following best describes the term "recognizance"? - ANG — Citrefers to the What is the difference between an agreement and a contract? - ANS An agreement results Advertisements and catalogs are examples of general invitations. T/F - ANS wer An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances. T/F - ANSWER If an offeror receives something of value in return for a promise to hold the offer open, it is said to be afm) , and this type of offer cannol. be revoked. - ANS wee Sea Ifa merchant displays a coat at a particular price, he has a binding requirement to scll at thal price. T/F- ANSWERS The “mailbox rule” does not apply in situations where the offeror does not receive the acceptance. T/F - ANS WE BIS If after an offer has been made, the performance of the contract becomes illegal, the offer is terminated. T/F- ANSWER __ is the assent to an offer that results in a contract. - ANSWER-QSEBaRe Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance. T/F - ANS wei An offeree’s response that rejects an offer by varying its terms is known as a(n)___. - ANSWER. An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer. T/F - ANSWER _| Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the .- ANS wee Se Tf the intended acceptance varies or qualifics an offer, the counterolfer rejcets the original offer under the common law. T/F- ANS wer When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, itis considered accepted. T/F - ANSWERER 2s the willingness of the offeror to enter into a contractual agreement. T/F - Which of the following is true of a binding contract? - ANS It is created when an offeree A firm offer can be best defined as: - can offer that cannot be revoked for a reasonable The law is uniform throughout the United States in binding minors on contracts induced by misrepresenting their age. T/F - ANSWERS As a general rule, a minor is liable for torts as fully as an adult is. T/F - ANSWER Aminor, upon reaching the age of majority, must ratify none or all parts of a contract. T/F - ANSWERS Ratification to a contract can be made any time before reaching majority. T/F- ANSWERER While many states have repealed their former laws restricting the capacity of a convict to ctions. TIF - ANSWERS coniracl, some slales still have rest Ifan adult purchases personal property from a minor, the minor has only a voidable Litle Lo the property. T/F - ANSWEN SERBS Which of the following is true of a contract between two minors? - AVS -Each minor has the When a minor returns property in a damaged condition, in most jurisdictions an adult (party Lo the original agreement) may:- ANS /-not recover compensation. The term disaffirmation refers to: - _——_-the election to avoid a contract or set it aside. Kenneth, ages sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third party, before Kenneth can disaffirm the contract. In this case, which of the following will hold true? - _——--Sarah can obtain good title to the property. Sam and Martha sign a contract in which Sam agrees to pay a certain price and buy Martha’s house. Lator, Sam’s brother states thal Sam olin has intervals of delusions and hence the contract is invalid because it has been made by an incompetent person. Sam has not been declared by the court as insane. In such a scenario, according to law, which of the following will ontille Martha to the price agreed upon in the contract? - ANS - -Sam was ina sane frame of What precaution can a business person take when contracting with a minor? - ANS WERE Ifa minor contracts for necessaries, the minor's liability is quasi-contractual in nature. This aeans that the minor is not required to pay the contract price but will be required to Which of the following conditions is a prerequisite for any agreement Lo be legally cnforecable? - “The parties entering into the agreement must have the mental capacity to contract. A person who is under the influence of drugs... - ANS /——-cannot use that as an excuse to void The Uniform Commercial Code states thal when a contract for the sale of good is modified by agreement of the parties, consideration is necessary to make it enforceable. T/F - ANSWEI- When parties to a contract mutually agree to cancel an old contract and replace it with anew one, which of the following is true? - ANS _ -To be enforceable, there must be added features As ageneral rule, the adequacy of the consideration is irrelevant because the law allows bargains. T/F - ANSWERER Consideration is not necessary to support an obligation of record. T/F - ANSWER-TE Mark ow financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing a cancellation of the unpaid balance due to them. This type of an agreement is known as a | A promis eal a valuable picee of art is valid consideration to support a contra ANSWERS Performing or promising to perform what one is already obligated to do is valid consideration. TF - ANSWERER Tf the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid. T/F - ANSWEHE When charitable enterprises are financed by voluntary subscriptions of many people, the promise of cach person is generally not held to be enforecable. T/F - ANS wer Rae valid consideration? - ANS WP) BQQBSERSEnenes Which of the following constit State laws are the supreme law of the United States. - ANSWERS Statutory law includes state statutes and ordinances passed by cities and counties. - ANSWEIL Criminal acts are prohibited only by federal government statutes. - ANSWERER The First Amendment protects corporate political speech. - ANSWER The amount in controversy in a divorsily of cilizenship case must be more Ilhan $1 million belore a federal court can take jurisdiction. - ANS WeRFee There is at least one federal district court in every state. - ANS wer i Arbitration is the most formal method of alternative dispute resolution. - ANS wer Acourt may never depart from precedent. - ANSWENRS Specific performance is a remedy in equity. - ANS wei Commerce within a state can also be regulated by the national government as long as the commerce substantially affects commerce involving more than one state. - ANSWEHE Remedies at law include monetary damages. - ANSWERS