Question 30

Larry has booked a hotel room for a conference at a rate of $100 per day for five days. When he arrives to check in, Larry is told that the hotel was overbooked and it cannot supply him with a room. Larry is forced to go to the only hotel in town with available rooms and pay $150 per night. If Larry sues the original hotel for damages and wins

Group of answer choices

he will be entitled to compensatory damages in the amount of $250.

he will be entitled to liquidated damages in the amount of $250.

he will not be entitled to any damages because the additional costs were not foreseeable.

he will be entitled to consequential damages in the amount of $250.

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Question 31

Pete has been fired from his job and believes that he has been wrongfully terminated. As he decides how to fight the perceived injustice, how can he best mitigate his damages?

Group of answer choices

Actively seek new employment as soon as possible.

Call his former employer to determine the real reason he was fired.

File for unemployment insurance as quickly as possible so that he doesn't sink too far into debt.

File his suit as soon as possible while the evidence is available and witnesses' recollections are fresh.

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Question 32

A sole proprietorship automatically is dissolved when the owner dies

Group of answer choices

True

False

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Question 33

One disadvantage of a sole proprietorship business entity is that it is restricted to a single location and cannot expand.

Group of answer choices

True

False

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Question 34

The duty of a partner to act in the best interests of the partnership is called __________ duty.

Group of answer choices

Ethical

Commercial

Legal

Fiduciary

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Question 35

LLCs are frequently governed by an agreement of the parties called an LLC agreement or

Group of answer choices

Operating agreement

UCC-1 report

Bylaw

Partnership agreement

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Question 36

A corporation exists as an independent person separate from its principals.

Group of answer choices

True

False

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Question 37

The United States Postal System is an example of what type of corporation?

Group of answer choices

Private

Public

Publicly traded

Professional

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Question 38

Which of the following is NOT a right enjoyed by shareholders of a corporation?

Group of answer choices

The right to veto a board decision to pursue venture capital financing.

The right to veto a board decision to issue more capital stock.

The right to elect and remove officers.

The right to approve structural changes in the corporation through the amending of the articles of incorporation.

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Question 39

Carl Critic has just announced his choices of the worst Hollywood actresses of the year, and Stella Starr has been named the worst of the worst. Carl's announcement, made in his weekly column titled "Random Musings by Carl Critic" and published in the local paper, claims that he believes her to have the least amount of talent in the movie industry and that she "can't act her way out of a paper bag." When Stella reads Carl's column, she immediately starts to cry hysterically and then decides to sue him. Does she have a valid case of libel?

Group of answer choices

Yes, but only if his statements cause her to lose money by losing movie roles.

No, this was merely Carl's opinion.

Yes, her crying proves injury.

No, Carl committed slander, not libel.

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Question 40

The FDA is proposing new rules for over-the-counter pain medication. The agency expects to hear from various pharmaceutical groups in favor of the regulation and from several medical associations on the public health consequences of the proposed change. This is an example of what rule-making phase?

Group of answer choices

Public comment.

Study and research.

Revision.

Publication of the rule.

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Question 41

__________ environmental laws are primarily administered, implemented, and enforced by the U.S. Environmental Protection Agency (EPA).

Group of answer choices

Municipal

Federal

State

Local