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business
essentials of business law

Questions and Answers of Essentials of Business 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.All states prohibit all forms of gambling.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Agreements that require the performance of acts against public policy are void.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Agreements that restrain marriage are valid if both parties agree to all provisions.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Agreements in restraint of trade can only be prosecuted under federal 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 government will always prosecute companies that wield monopoly power because
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 Robinson-Patman Act prohibits price discrimination.
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 Sherman Antitrust Act prohibits agreements that tend to lessen competition.
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn.Zoning regulations also may act as legal restraints of trade because they restrict where
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 and safety regulations seldom act as legal restraints of trade even though
Alfino borrowed money from Yakutsk and agreed in writing to pay a rate of interest higher than that allowed by local law. Later, when Alfi no was called upon to pay, he refused, claiming that the
Morton Salt Company, a large producer of table salt, had an established price scale for its product based on the quantity of salt ordered in a 12-month period. Thus, a fi rm that ordered a
Jasons decided to declare bankruptcy because his fi nancial situation was desperate and his only property was a nearly new car worth about$14,000. In an attempt to conceal the value of his property,
The law that requires certain types of contracts to be in writing.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol evidence rule h.
Property other than land and items permanently attached to it.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol evidence rule h.
The point of law that prevents oral changes to a written contract from being legally enforceable.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf.
A written contract or agreement.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol evidence rule h. personal prope rty i. real prope rty
The personal representative appointed by a court to distribute the assets of the estate of the deceased.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf.
Land and items that are permanently attached to it.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol evidence rule h. personal prope rty
The personal representative named in a will to distribute the assets of the estate of the deceased.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf.
A promise to pay the debts or settle the wrongdoings of another.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol evidence rule h.
A person who conducts sales of articles in which individuals bid against one another.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol
A contract containing promises made by persons planning to marry.a. administratorb. antenuptial or prenuptial a greementc. auctioneerd. executore. guarantyf. memorandum g. parol evidence rule h.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.Some types of contracts must be in writing to be enforceable.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.The parol evidence rule affects the enforceability of contracts that include oral or
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.The Statute of Frauds specifi es that certain kinds of contracts must be in w riting.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.Oral or written evidence cannot legally be introduced to explain unclear portions of a
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.A valid contract can be entirely handwritten.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.Promises made in anticipation of marriage are enforceable.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.An agreement to guarantee debts of another generally must be in writing to be enforceable.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.The requirement of writing does not apply in auction sales.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.An agreement that cannot be completed within six months must be in w riting.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.An agreement for the sale of personal property for over $500 must be in writing to be
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.An agreement for the sale of real estate must be in writing to be e nforceable.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.An agreement by an administrator or executor to pay the debts of the deceased must be in
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.The Statute of Frauds applies only to contracts that have yet to be pe rformed.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.A series of letters or e-mail among several persons can satisfy the Statute of Frauds.
Indicate whether each of the following statements is true or false by writing T or F in t he a nswer c olumn.A valid contract must either by typed, printed, or written in pen.
Anderson was seriously injured in a traffi c accident.Anderson’s daughter called a doctor, Lawrence, and told him to “give my father the best care you can give him, and I’ll pay whatever you
Dennison agreed to purchase land from Harden with the understanding that the land contained fruit trees. To prove that there were fruit trees on the property, Harden provided nursery reports stating
Marti, the owner of an expensive sports car, agreed in writing to sell the car to Berini. Because both parties recognized that some necessary engine repairs were needed, their contract did not
Wang orally agreed to sell a thoroughbred horse to Presti for $60,000. When Presti sent a check in payment, Wang told him that he intended to hold the check for a month for tax purposes. Wang
A signifi cant change in a contract that is made with the mutual consent of all parties.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation
The transfer of duties to a third party by a party to a contract.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i. personal-service c
A party who would benefi t from the performance of a contract, but for whom the contract is not created.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi
An outside party for whose benefi t a contract is made by other partiesa. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i.
A party to a contract who transfers his or her rights to a third party.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i.
A contract in which services that require a unique skill, talent, ability, and so forth are provided by a specifi c person.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g.
The state of a person or fi rm recognized to be unable to pay obligations.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i.
An outside party to whom contract rights are transferred.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i. personal-service c ontract
The transfer of contract rights by one of the parties.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i. personal-service c ontract j.
An assignor who guarantees or stands behind an assignment.a. assigneeb. assignmentc. assignord. bankrupte. delegationf. guarantor g. incidental benefi ciary h. novation i. personal-service c ontract
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A third-party benefi ciary has a legal right to receive the benefi ts of a contract if it is
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A third party who benefi ts incidentally from a contract has a right to the benefi ts if
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The law in most states permits the assignment of most contract rights to a third party.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The court may make assignments for bankrupt persons.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An assignment must be in writing if the original contract was required by law to be in
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The assignment of certain contracts is prohibited by law.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.It is legally permissible to delegate contract obligations to perform certain tasks.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Contracts that specifi cally prohibit assignment in their wording can still be assigned if
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Contracts for personal services may not be assigned unless there is agreement to the
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.In most cases, duties required in an employment contract are not delegable.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Services of artists, musicians, photographers, and athletes can be delegated.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Some assignments are prohibited by public policy.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Once a person delegates a contractual duty, he or she no longer has responsibility under the
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A novation is a special kind of assignment where none of the parties to the contract are
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.The assignor of a contract right becomes a guarantor.
Chang, a fl orist, contracted with Torres to provide delivery services in the local community. Torres discovered that his vehicles did not have the equipment to handle the work well, so he asked
Benefi ciary Benefi ts Franken, a college student, recognized that she was fi nancially very dependent upon her widowed mother’s fi nancial support while she was in college.To protect against the
Westerfi eld contracted with Bradley Building Company for the construction of a ranch house as a wedding gift for his daughter. Before construction began, Westerfi eld died and Bradley announced that
Rodrigos, the leader of a rock-and-roll group, agreed to provide music for the annual Park College Marketing Club dinner dance. On the night of the dinner dance, however, another, very amateurish
A restaurant, Pizza of Gaithersburg, Inc. (PG), agreed with Virginia Coffee Service (VCS) to have vending machines installed in PG’s restaurants.The contract was to run for one year and was
The employees of Powder Power Tools Corp. were represented by a labor union that had negotiated an agreement covering pay rates.A number of employees did not receive the higher rates of pay specifi
Birmingham Automotive Supply Company entered into a contract with the Excel Construction Company to build a chain-link fence around the property of the auto supply company. Included in the contract
Weintraub wished to donate a music rehearsal room to Northern College, from which she had graduated. She hired Hazelton, an architect who specialized in acoustics, to design the room. Shortly after
A written promise to pay a specifi ed sum of money.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g. restraining
The completion of a contract except for some small details.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g.
A change of an important term in a contract that affects the rights or obligations of the parties.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione.
An offer to perform acts required by a contract.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g. restraining
An offer of payment made to fulfi ll the terms of a contract.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g.
Inability to fulfi ll the terms of a contract due to unforeseen circumstances.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c
Cancellation of a contract due to an announcement of intention to breach prior to the time performance is due.a. anticipatory bre achb. impossibility of performancec. material a lterationd.
A court decree that prohibits the performance of a certain act.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g.
A court order that directs that a certain act be carried out.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g.
The duty of an injured party to lessen the amount of damages.a. anticipatory bre achb. impossibility of performancec. material a lterationd. mitigatione. promissory not ef. specifi c performance g.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract can be terminated in accordance with provisions in the contract itself.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A consumer can terminate a contract made in the home with a door-to-door salesperson within
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Complete and satisfactory performance of a contract will bring about its termination.
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract must be completely performed in all its details in order to be considered
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A tender of performance does not relieve a contracting party of his or her obligation to
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A consumer has three days to cancel a contract in which his or her home has been pledged as
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Death or disabling illness of a party to a contract terminates the contract if such requires
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A deliberate material alteration of a contract that affects the rights or obligations of the
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.If a law or regulation makes the performance of a contract illegal, the parties are released
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A party to a contract is released from his or her obligations if a law is passed that
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.Except for promissory notes, the injured party in a contract may bring suit whenever he or
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A contract is breached if one party deliberately or negligently stands in the way of
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.When one party to a contract receives notice of the other party’s intent to breach, he or
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.An action for specifi c performance is a request that the court direct a party to perform a
Indicate whether each of the following statements is true or false by writing T or F in the answer c olumn.A court order directing a person to refrain from performing a particular act is an
Chiu agreed to sell his custom-built sailboat to Graham for $60,000. Before delivery, Chiu received another offer for $68,000 and wrote to Graham that he had decided not to sell his boat after all.a.

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