legal business

1A person who wrongfully hurts another’s good name or reputation orally may be liable for libel.

1False

2A federal court will apply federal law in a case involving a federal question.

2True

3Agency relationships cannot exist outside an employment, so agency law has a narrower reach than employment law.

3False

A company’s ethical code of conduct is not

law.

5A person who enters into a risky situation, knowing the risk involved, can nevertheless recover for a resulting injury or harm for reasons of public policy.

5False

6A plaintiff who sues on the basis of disparate-treatment discrimination in hiring must make out a prima facie case of illegal discrimination, and will win in the absence of a legally acceptable employer defense.

6True

Bram knows that the pipes in his building leak, but he tells Cass, a potential buyer, that there are no leaks. On this assurance, Cass buys the building. On learning the truth, she may sue Bram for

fraudulent misrepresentation

8A defendant cannot be liable for negligence unless he or she intended to harm the plaintiff.

8False

A court’s subject-matter jurisdiction may be limited by all of the following except

he prior experience of the court in deciding similar disputes.

10

A defective product is an unreasonably dangerous product when it is dangerous beyond the expectation of the ordinary consumer.

10True

Cato is driving a car in which Diego is a passenger when an accident occurs. Diego is not injured. In Diego’s tort action against Cato for negligence, Cato can most likely assert as a successful defense that

Diego was not injured.

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid

A truck with defective brakes runs off the street and crashes into Lima’s home, damaging the property and injuring her. In a successful tort action against the truck’s owner for gross negligence, Lima may be awarded punitive damages to

punish the defendant and deter others from similar wrongdoing.

14

A product will be considered defective when the omission of reasonable warnings renders the product not reasonably safe.

14true

15Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

15True

16An act intended to make another person fearful of an immediate physical harm is an assault if the threat is reasonably believable.

16True

A trial court’s capacity to directly observe witnesses’ gestures, demeanor, and other nonverbal behavior supports the decision of an appellate court to

defer to the trial court’s findings on questions of fact.

18An employer can avoid liability for sexual harassment by taking prompt remedial action.

18True

19

An employer can require employees to participate in such religious activity as weekly prayer meetings with other employees.

19False

20

A constitution is a primary source of law.

20True

21A truck driver who drives a company truck on a regular basis is most likely an employee.

21True

22

A choice-of-law clause permits a party to choose which nation’s law to apply to a dispute arising under an international contract.

22False

23A seller who introduces into commerce an unreasonably dangerous product may be subject to a tort action for strict liability.

23True

24An employer may fire a worker for reasons that violate a fundamental public policy if that policy is clearly expressed in statutory law.

24False

Baby Things Inc. makes and sells a crib to Cara. Baby Things fails to exercise “due care” to make the crib safe, and Cara’s child Dua is injured as a result. Baby Things is most likely liable for

negligence

Buddy’s Burgers advertises so effectively that the regular customers of its competitor Slimy’s Sliders patronize Buddy’s instead of Slimy’s. This is

none of the choices.

27

A business firm has a duty to exercise reasonable care to protect its business invitees.

27True

An injunction is

an order to do or to refrain from doing a certain act.

29Any court can exercise jurisdiction over any person.

29False

After a dinner at Rosa’s Restaurant, So believes that he was overcharged and shoves Tell, the waiter, who is injured when he falls. Tell sues So, alleging that the shove was a battery. So is liable if

the shove was offensive.

31

A business cannot use puffery without liability for fraudulent misrepresentation.

31False

32

A person who is injured by a defective product can bring a negligence suit only if he or she was the one who purchased the product.

32False

33

Arbitration differs from other forms of alternative dispute resolution in that a third party hearing a dispute makes a decision for the parties.

33True

Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo Inc., where she is an employee. As a result, the employer demotes her. Beth can file

a retaliation claim.

35A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

35True

36Any time one party’s allegedly wrongful conduct causes injury to another, an action may arise under the law of torts.

36True

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel—he was only trying to make a sale. This is

fraudulent misrepresentation.

38Negotiation requires the use of a neutral third party to facilitate a settlement.

38False

39To avoid copyright infringement, you just need to change 5 things about the original picture.  .

39False

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm’s sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak’s manager immediately accepts. The seller

is bound to the deal at the offered price.

Fess convinces Gwyn to enter into a contract for the purchase of a Falafel Waffle Food Cart by knowingly misrepresenting a number of material features about the facility and the business. Most likely, Gwyn can rescind the contract on the basis of

fraudulent misrepresentation.

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect’s performance is most likely

a material breach

43

A state may not restrict certain kinds of advertising, even in the interest of preventing consumers from being misled.

43False

44Nonverbal expression of belief is not a constitutionally protected form of expression.

44False

45If a contractor’s bid was significantly low because he or she made a mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable.

45False

46

QTIPS can be dangerous if used improperly.

46True

47

If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, a court may allow the contract to be rescinded.

47True

Faiz enters into a contract to buy 350 acres from Grain Farm to cultivate hops and open a brewery. Faiz fails to make the purchase. Grain Farm’s remedy is most likely

the difference between the contract and market prices of the land.

Reese contracts to sell a Spicy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely

reform the contract to make the distance and time limits reasonable.

50

To make a prima facie case for negligence, you must show duty, breach, causation and damages.

50True

Fresh Seafood Inc. and Grocers Market LLC dispute a term in their contract. Because the parties have a long-standing business relationship that they would like to continue, they could settle their dispute through mediation because

the process is not as adversarial as litigation.

52

The first ten amendments to the U.S. Constitution are commonly known as the Bill of Rights.

52True

53In most situations, when a breach of contract occurs, the injured party is held to a duty to mitigate, or reduce, the damages that he or she suffers.

53true

54

IRAC stands for issue, rule, acceptance and conclusion.

54False

Jill and Kane, with their attorneys, meet to try to resolve a dispute. A neutral third party works with both sides and proposes a solution, but does not make a decision resolving the matter. This is

mediation.

Cattle House Steaks, a Colorado company, enters into a contract over the phone with Beef Packing Inc., an out-of-state corporation. If a dispute arises, a Colorado court can exercise jurisdiction over Beef Packing

under the minimum-contacts test.

57

A covenant not to compete that is imposed as part of a sale of an ongoing business will be enforced even if the restraints are unreasonable.

57False

Food Court Inc. leases space to Gourmet Café. Gourmet abandons the premises when the amount of the rent due on the lease is $5,000. Food finds a new tenant, Hasty Bowls, which agrees to pay $3,500 for the space over the remainder of Gourmet’s term. Food’s measure of damages is

$1,500, plus any additional expenses to find the new tenant.

59Any breach of contract effectively excuses both parties from performing.

59False

60

Corporations enjoy many of the same rights and privileges as natural persons do.

60True

Heyli is not a resident of Iowa although her website can be accessed by residents of that state. Jen files a suit against Heyli in an Iowa state court. The court is most likely to have jurisdiction over Heyli if Jen’s claim arises from

substantial business between Jen and Heyli through Heyli’s website.

62My car breaks down on the side of the road.  Frustrated, I kick the tire and say, "I would sell this car right now for $50."  You accept.  We have an enforceable contract.

62False

Dom burns a U.S. flag in his backyard. He films the activity and posts the video on YouTube.com. Dom’s conduct is most likely

protected by the First Amendment.

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl

can rescind the deal based on fraudulent misrepresentation.

65Under a state long-arm statute, a court can exercise jurisdiction only over certain nonresident defendants.

65True

Because litigating a complaint can be costly, and there is a backlog of cases in many courts, a businessperson is likely to attempt to resolve a dispute

with a method of alternative dispute resolution.