Questions and Answers of Essentials of Business Law

A form of tax, or other restrictions, on exports or imports in order to attain economic results, such as protecting domestic industries or facilitating the production of certain crops.a. comityb.
An organization responsible for overseeing the implementation of all multinational trade agreements negotiated now or in the future.a. comityb. transnational ins titutionsc. General Agreement on
A broad category that includes various activities, including licensing the sale of some goods to foreign buyers, intended to affect the balance of trade.a. comityb. transnational ins titutionsc.
An agreement among the United States, Canada, and Mexico that focuses strictly on economic trade.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded. World Trade O
A U.S. law that makes it unlawful to bribe foreign government offi cials to obtain or retain business.a. comityb. transnational ins titutionsc. General Agreement on Tariffs a nd Traded. World Trade O
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.International law is the broad study of the legal systems of major countries, treaties,
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.There is little or no relationship between international law and international trade.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The activities of the United Nations are limited to international law.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The doctrine of comity holds that the courts of one country should refrain from deciding
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The purpose of transnational institutions is to maintain legal and economic order in
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The purpose of the International Monetary Fund is to provide a clearinghouse for checks
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The European Union established a legal and political relationship among its members that
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.In some countries, it is common that there will be payments made to individuals in order
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.In addition to trade sanctions and embargoes, some countries impose tariffs, a form of
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Most countries recognize U.S. patents but not copyrights.
How do governments attempt to control foreign businesses operating within their borders?
Should the FCPA impose U.S. ethical standards on the activities of U.S. businesses in international trade, even though this law may put these businesses at a competitive disadvantage with their
Before boarding an El Al Israel Airlines fl ight from New York to Tel Aviv, Tseng, a passenger, was physically subjected to an intrusive security search.Although not injured bodily, Tseng sued El Al
Johnson, a passionate bicyclist, wanted to go into the business of manufacturing high-quality bicycles. He found that both labor and component parts were quite inexpensive in Taiwan. Even adding the
Yikes, a U.S.-based manufacturer of shoes, had plants in several countries in Southeast Asia and enjoyed considerable success in world markets as a result of a number of factors, including its
A law that requires, prior to the commencement of any work, a declaration of the impact any major project will have on the environment.a. National Environmental Policy Actb. environmental impact
Increasing global temperatures can result from increasing amounts of carbon dioxide released into the atmosphere.a. National Environmental Policy Actb. environmental impact Statementc. Environmental
A law that sets minimum standards for water purity.a. National Environmental Policy Actb. environmental impact Statementc. Environmental Protection Agencyd. Clean Air Acte. Clean Water Actf.
A federal agency with responsibility for regulating business activities as they relate to the environment.a. National Environmental Policy Actb. environmental impact Statementc. Environmental
Activities that negatively impact public or private property.a. National Environmental Policy Actb. environmental impact Statementc. Environmental Protection Agencyd. Clean Air Acte. Clean Water
A cause of action that accepts the theory that a business can illegally enter another person’s property with its pollution.a. National Environmental Policy Actb. environmental impact Statementc.
A condition resulting from the discharge of pollutants into the atmosphere that creates problems for forests and crops, kills fi sh, and destroys the paint fi nishes on automobiles.a. National
A declaration required before beginning construction of a major project that describes the impact of the project on the environment.a. National Environmental Policy Actb. environmental impact
A law that regulates the dumping of waste onto land and designates specifi c sites, mandating that these locations be cleaned up by their owners.a. National Environmental Policy Actb. environmental
A law that sets minimum standards for air purity.a. National Environmental Policy Actb. environmental impact Statementc. Environmental Protection Agencyd. Clean Air Acte. Clean Water Actf. Superfund
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The United States lacks the abundance of natural resources that many other countries have.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Environmental regulation is not yet a distinct area of the law.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.The Clean Air Act of 1970 deals only with pollution within the boundaries of each state.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Included in the Clean Water Act are standards for water quality that allows the navigable
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Applying the provisions of Superfund has been an easy process, and it has it met with
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Businesses that create pollution frequently cause injury to people or damage to their
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.A public nuisance is created when a nuisance impacts public property, such as a navigable
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Many states recognize a cause of action for “particle trespass,”accepting the theory
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Excess noise (as measured in decibels) cannot affect the health and well-being of persons.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Pursuant to the Toxic Substance Control Act of 1976, manufacturers are required to test
Bronx Reptiles, Inc. imported live animals, including reptiles, into the country approximately twice per week. Edelman, the owner, knew of the International Air Transport Association guidelines for
The Forest Service planned extensive timber cutting in a part of the Green Mountain National Forest but did not prepare an environmental impact statement. A coalition of conservation organizations
The benefi t received and the loss suffered by parties to a contract.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c
A demand of the conscience based on love, friendship, honor, or sympathy.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c
A promise to do what one is already required to do.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c onsideration h. pledge or
An offer to confer a benefi t on someone without requiring a sacrifi ce in return.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g.
A promise to contribute to a charitable organization.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c onsideration h. pledge
An obligation to perform actions that are already required.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c onsideration h.
An offer to pay for a benefi t that has already been received.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c onsideration
The act of refraining from exercising a legal right.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c onsideration h. pledge
A written agreement to give up a claim or settle a debt for less than the amount demanded.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c
The party to an agreement who receives a promise.a. barren pr omiseb. considerationc. forbearanced. gratuitous promis ee. general re leasef. moral c onsideration g. past c onsideration h. pledge or
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Consideration is one of the elements of a contract.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The courts generally do not rule on the adequacy of consideration.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A promise of inaction, or forbearance, can be valid consideration.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Pledges and subscriptions are never legally enforceable because they lack the element of
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract in which consideration is based on a promise that is impossible to fulfi ll
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Preexisting duty refers to existing debts that must be paid.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An offer to pay for a benefi t after it has been received is enforceable.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An agreement based on a gratuitous promise is enforceable, if the purpose of the agreement
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A general release allows for the discharge of a debt because it is viewed as forbearance, a
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.No contract is enforceable without consideration.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Courts sometimes enforce a contract that lacks consideration because it is socially benefi
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The Uniform Commercial Code states that additional consideration is always required in the
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract performed because “it is the right thing to do”is an example of forbearance
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Past consideration is a promise to repay someone for a benefi t after it has been received.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A promise to do something that one is already required to do either by law or by contract is
Since valid consideration is an exchange of promises, it is obvious that a promise to commit an illegal act is not valid consideration. Describe a promise to commit an illegal act that is not legally
Jackson, a widow who was desperate for money, sold land to her brother, Seymour, for $275. Later, Seymour found valuable timber on the land and sold some of it for $2,353. When Jackson realized that
Forrer was an employee of Sears for many years. He eventually left because of health problems and began operating a farm. Sears persuaded Forrer to return to work on a part-time basis, and about one
The Spring Well Drilling Company entered into a contract with Towne Construction Company to drill a well to supply water to a particular piece of property where Towne was building a house. Spring
Maitland, a fund-raiser for Arbor College, solicited contributions for the college’s building program. Hamill Manufacturing pledged a contribution to the program. When the company did not pay,
Items considered essential for a person’s well-being, such as food, shelter, clothing, medical care, and employment.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye.
Affi rming, or agreeing to, the terms of a contract entered into previously.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g. incompetency
A person who has not yet reached the age of majority.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g. incompetency h. minor i.
The state of a minor who has married and/or left home that renders the minor responsible for his or her contracts.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi
The act of canceling a voidable contract.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g. incompetency h. minor i. necessaries j. ratifi
Legal incapacity to make a binding contract.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g. incompetency h. minor i. necessaries j.
Statutory legal age.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g. incompetency h. minor i. necessaries j. ratifi cation
A person of legal age and normal mentality who is capable of understanding the meaning of a contract.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef.
The ability of a party to make a contract.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g. incompetency h. minor i. necessaries j. ratifi
A minor’s surrender of the special protection given to him or her by the la w.a. abandonmentb. age of majorityc. contractual c apacityd. competent pa rtye. disaffi rmancef. emancipation g.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A person’s legal birthday is the same as the day on which his or her birthday is
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An emancipated minor’s contracts for necessaries are valid.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract with a minor can be ratifi ed by either party.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Upon reaching legal age, a minor must ratify earlier completed contracts in writing.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A minor is responsible for his or her torts and crimes.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Contracts made while a person is intoxicated are voidable by either party.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A person who is of legal age and at least normal mentality is considered a competent party.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract made by a person while intoxicated must be ratifi ed in writing within 30 days.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A minor is considered emancipated, and hence responsible for his or her contracts, upon
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The responsibility of determining whether or not a person is competent rests with anyone who
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The law regards actions of minors that result in emancipation as abandonment.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A minor’s disaffi rmance must be in writing to be effective.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Ratifi cation of a minor’s contracts must be in writing to be effective.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.In some states a minor may avoid a contract, even if he or she falsely represented himself
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract ratifi cation must apply to the entire contract.
Staples, following extensive injuries in an automobile accident, was declared mentally incompetent. He imagined himself to be in command of a large army engaged in protecting the country against an
Doran, a young man of 17, married a 17-year-old woman. After the wedding they moved to another city, where they both found work and began to buy furniture and appliances. When they realized that they
Ortelere, a retired teacher, had built up a substantial amount of funds in her retirement plan before she retired because of “involutional psychosis” (a form of mental illness). She had

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