mgmt 254 - final exam

A state supreme court hears every case a party appeals to it.

False

Equity steps in to fill the gaps and provide justice when the law is inadequate.

True

Arbitration is a dispute making process that occurs in a court of law.

False

Procedural law delineates the steps that must be adhered to when enforcing rights and liabilities.

True

When the parties opt to mediate to settle disputes, the losing party generally can appeal from such mediation to a court.

True

Uniform state laws were adopted by individual states after being written by Congress

False

A judge rules on the admissibility of evidence presented in the trial.

True

The time-honored rules that courts used to solve similar problems for hundreds of years or decades is called precedent.

False

Administrators can create regulations that have the force of law.

True

Daniel asserts he had a legal right. Daniel is really saying he has an obligation to perform or refrain from performing an act.

False

In the US, money is the default remedy in many civil disputes. However, when the law does not offer an adequate remedy through money, \________ is a body of law that provides justice.

Equity

You are not protected from unreasonable searches by the right to privacy in which of the following scenarios:

in the commission of a crime.

The right to privacy means that individuals

are protected against intrusions by individuals.

The Securities Exchange Commission (SEC) was created as part of an act of Congress. The SEC creates:

administrative regulations.

Suppose Devonne signs a contract to purchase a cottage from Anthony, but Anthony later refuses to transfer title to the cottage to Devonne. Devonne could force Anthony to transfer title to the cottage by asking a court for an order of ....

Not: substantive law.

A right is defined as:

a legal capacity to require another party to preform an action.

Which of the following is/are an example of limited or special jurisdiction court/s?

Probate, Juvenile, and Domestic Relations Court

Allison is called as a witness in a robbery trial to testify for the prosecution. When testifying at trial, Allison will undergo \______ by the prosecutor, and a(n) \________ by defense counsel.

direct examination, cross-examination

The types of civil cases that a private citizen can file in federal district courts include:

cases between citizens of different states that involve damages of $75,000 or more

Substantive law:

creates, defines, and regulates rights and liabilities

Requiring buyers to purchase one product in order to get another is acceptable practice and not a violation of the Sherman Act.

False

A court will not reverse an agency's decision merely because the court would have made a different decision based on the same facts.

True

Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public.

True

A federal agency planning to adopt a new regulation must give public notice of such intent and then hold a hearing at which members of the public may express their views and make suggestions.

True

The Sunshine Act requires most meetings of major administrative agencies to be open to the public.

True

In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses, take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for action.

True

A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may sue the wrongdoers for treble damages, which is four times the actual damages.

False

An agreement to charge an agreed-upon price or to set maximum or minimum prices between or among competitors is called price fixing but it is not per se a violation of the Sherman Act.

False

Boycotts are always illegal, even when done with good intentions.

True

Nobel economist Milton Friedman believes that government regulation of business interferes with the free enterprise system.

True

To satisfy the requirements of due process, an agency handling a complaint must generally\______, although there is no right to \__________.

give notice and hold a hearing, trial by jury before an agency.

When the FTC or DOJ evaluate mergers under the Clayton Act, they can request a divesture order which is:

Not: An order by a quarter requiring an enterprise to dispose of its inventory.

You've been asked what a significant difference between an illustrative agency hearing and tell your friend the key difference is that:

There is no right of trial by jury before the agency.

Congress is a bill that would create a new agency. As the legislative director to Sen. James Smith, You need to tell him what administration agencies can do. In general, an administrative agency can be created to perform:

all three of the functions of government.

You work for the attorney general of the state of New York, who is annoyed at what he believes is improper raised prices. If this is the effect of an antitrust violation to raise prices, then

the state attorney general may bring a class action suit for damages

Before an agency can begin rule making proceedings it must be given jurisdiction

by congressional enactment in the form of a statute

Utah Pie was a company that was harmed by a violation of the Sherman Act. As a result, Utah Pie, as a person or enterprise harmed by a Sherman Act violation, could bring an action for

Treble damages

Under the \____________ Amendment, agency officials have the right to conduct \_____________ with a warrant, but a(n) \__________ inspection is permitted when violations are dangerous to public health and safety

Fourth, inspections, warrantless

You've just reviewed the Microsoft case we discussed in class and want to test your understanding of its concepts. A(n) \___________ occurs when the seller makes a buyer who wants to purchase one product buy an additional product that he or she does not want

tying agreement

a trespass to personal property is an unpermitted entry below, on, across, or above the land of another

false

The shopkeeper's privilege gives store managers the absolute right to detain anyone they believe has shoplifted for an indeterminate period of time

false

Because a corporation is not a human being, it cannot be convicted of a crime

false

Jon manages a Stop & Shop. His employee blackmails an official on behalf of the store. Because it is a business crimes, Jon cannot be held criminally responsible for the conduct of his employee

false

There are several defenses available when the standard of strict liability is applied

true

The use of someone's car without person's permission is a trespass to personal property

true

Due process includes the right to be heard, question witness, and present evidence

true

Assault is the wrongful touching of another person without that person's consent

false

A crime consists of three elements: the mental state, the intent, and the act

false

In Indiana, former employers are protected by a qualified privilege for true comments made about former employees who are applying for jobs at other companies

true

A car accident occurred between Jim and Joe with no witnesses. Joe sues Jim for damages. If Joe has either engaged in or refrained from actions that are at least partially to blame for his injuries, what negligence has occurred?

contributor y

Defamation is a broad category of laws that protect people and companies from false statements made about them. An absolute privilege is available as a defense to slander when

a witness testifies in a court proceeding

Luke intentionally attempts to have Shelby break a contract with Ben. Luke will be liable under theory of tort?

contract interference

Professionals include doctors, lawyers, engineers, and others with advanced education or training. These professions have a duty to perform their jobsAt the level of coolant

A reasonable professional in the same business

The degree of care required of a person is:

That degree of care a reasonably prudent person would exercise under similar circumstances

Claudia owed Wendy money. Space Wendy called Claudia's home and work several times per day for five weeks asking for repayment, with some of the calls coming after midnight. Wendy might be liable for:

Intentional infliction of emotional distress

The fifth amendment to the United States Constitution's protection against self incrimination applies to:

Individuals only

Ruth sent Mark an email message telling Mark that his wife Anna had been killed in a car accident, and Ruth knew this was untrue. Mark may be able to sue Ruth for:

Intentional infliction of emotional distress

You are a student in business law and have been asked by an international student to explain what a crime is. You tell the student that it generally consist of:

A mental state and an act or omission

A wrong that arises from a violation of a private duty is called a:

Tort

What are the elements of negligence?

duty, breach, causation, damages

What are the elements required in a crime and intentional tort?

Mental intent and actus reus

Suppose a Dodge truck slams into a crowd in the driver claims the brakes failed. All of the following are potentially liable in a defective product suit except:

The bystanders

Angelina go shopping at Nordstrom's. The clerk hoping her makes many statements about how that outfit looks on Angelina. Which of the following statements made by the clerk does not likely constitute an express warranty?

"this looks beautiful on you"

Albert purchases is soup from Tyler, but Albert relies on Tyler's expertise to pick the perfect interview suit. Which of the following implied warranties is created when Albert relies on Tyler to pick out the goods that the buyer requires to meet a stated need?

Not: Merchantability

Loni Smith suffered the loss of her cottage as a result of a chimney fire that was caused by the ignition of shit in the chimney this fire would be described as:

A hostile fire

Josh purchases life insurance on his children family in Brody. Two years later one of the boys dies in a tragic accident. At the trial, the insurance company argues that the policy is ambiguous. If the court finds that a provision in the insurance policy is ambiguous:

It is interpreted against the insured

Jolene is a person of average intelligence, education, experience in business. Julie purchase insurance and paid the premium. The policy was mailed to her, but before they arrived a loss was suffered. When she read the policy, Julie could not determine whether the loss was covered because the policy was too difficult to understand. The loss is:

Covered because the insurer had an obligation to word the policy in an understandable way

Right has decided now that he's married and has children life insurance would be a good idea to provide for his family in the event of his death. What type of insurance is written for specified number of years and terminates at the end of that period?

Term insurance

Bill purchases life insurance from life insurance for you. Three years later the company learns bills heart only has 25% function, which puts him at risk of early death. An incontestability clause ordinarily bars contest of the validity of a life insurance policy by the insured after the lapse of:

Two years

If it insured person tells her current husband that she is going to name him as beneficiary of her life insurance in place of her former husband and dies a year later without having taking any further steps with respect to the change of the policy beneficiary, the insurance company must pay the proceeds of the policy too:

The former husband

Julia and her husband wright purchase in the store a building in downtown Lafayette. Their insurance agent tells them that for property insurance, and insurable interest must exist:

At the time of the loss

The insured must comply with a number of time limitations in making a claim

True

When a buyer makes a purchase without relying on the seller's skill adjustment, no warranty of fitness for particular purpose exist

True

Homeowners insurance is a combination of the standard fire insurance policy and comprehensive personal liability insurance

True

To collect a property insurance, and insurable interest in the property must exist at the time that the losses suffered

True

There're multiple types of fire. All fires that cause damage are classified as hostile fires

False

This statement "this chainsaw is The chainsaw is the market" will most likely create an express warranty

False

And insurer may cancel any contract of insurance by the insurer's unilateral act as long as the insured gives advance written notice

False

A person has an insurable interest in property is destruction of that property would cause a monetary or pecuniary loss to that person

True

It's an automobile collision results in a permanent serious disfigurement or death, a lawsuit may be brought against the party who was at fault

True

The right to sue for damages sustained from a defective product is reversed exclusively to the original purchaser of the product

False

Bankruptcy law does not regulate the banner in which the assets of the debtor are distributed; instead, distribution of the debtors assets is solely within the discretion of the trustee

False

One of the concerns reflected in Sarbanes-Oxley was the auditors were not exercising sufficient discretion and independence in conducting audits of their clients

True

Jo was told that cost is expenses of administration of the bankruptcy case, including trustee fees are paid before any money is disbursed to secured or unsecured creditors

False

XYZ Corporation sues Joe for bankruptcy even though Joe has said he can pay his debt. Joe may recover damages against XYZ because XYZ filed an involuntary bankruptcy petition against Joe in bad faith

True

The known user role imposes liability on the accountant for malpractice when he can foresee the parties who rely on his work in the financial statements

False

After all the creditors have been paid by the trustee, any balance is turned over to the debt

True

Under the known user rule the identity of the particular user must be known to hold the accountant liable for malpractice

False

Under the\____Act, Auditors are to report any fraud at the company to management and the audit committee, and maybe eligible for\____

SOX, whistleblower awards

Arthur was an involuntary petition into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions:(A)Three weeks before the filing of the petition, Arthur paid cash for $17,000 worth of inventory for his store; And(B) 12 days before the filing of the petition, Arthur paid $300 in full satisfaction of his stores most recent electric bill. The trustee is considering attempting to set aside both of these transfers as preferential transfers. Discuss the advisability of the trustees attempt to set aside these transfers. As to b

This is a purchase for something received earlier in the ordinary course of business and allowed

A member of the cleaning crew takes information from waste basket at your county firm and then purchases stock based on that information. You threw it away because it was bad information. This person sues you for his losses. \____Impose liability on the accountant to a total stranger who gets possession of the accountant's work and then sustains a loss because of a false statement in the work

No courts

You believe your account has not held their professional requirements in the way they handled reporting your financials and that lead to your inability to get a loan. Your attorney tells you that an accountant may be able to raise the defense of the\____in a malpractice suit by third-party

Contract rule

The filing of a bankruptcy petition operates as an\_____, which prevents creditors from taking action, such as filing suits or foreclosure action, against the debtor

Automatic stay

To insure that audit partners do not become entrenched, Sarbanes-Oxley requires audit firms to change audit partners at least once every\____Years

Seven

If there are 12 or more creditors, at least\____of those creditors whose unsecured and undisputed claims total\____or more must sign the involuntary petition

Three; $15,325

None of the following transfers maybe set aside as preferences by the bankruptcy trustee except for:

Payments to a debtor's relative

Arthur was an involuntary petition into bankruptcy by three of his creditors. When the trustee reviewed Arthur's books and records, the trustee discovered the following transactions:(A)Three weeks before the filing of the petition, Arthur paid cash for $17,000 worth of inventory for his store; And(B) 12 days before the filing of the petition, Arthur paid $300 in full satisfaction of his stores most recent electric bill. The trustee is considering attempting to set aside both of these transfers as preferential transfers. Discuss the advisability of the trustees attempt to set aside these transfers. As to a

This is a purchase in the ordinary course of business and allowed

When the debtor has fewer than twelve creditors, how many must sign an involuntary petition?

One, assuming that the creditors unsecured claim is at least $15,325

Sarbanes-Oxley would prohibit which of the following individuals from serving on an audit committee of the company board?

All of these

Jill sues her CPA for malpractice. She alleges that the CPA's failure to fulfill reasonable standard of care cost $100,000 in extra interest and penalties. She is in a contributory negligence state. If the jury finds that Jill is 10% at fault, what will she recover as damages?

$90,000