BUS 201 LEGAL ENVIRONMENT OF BUSINESS COMPILED
QUESTIONS WITH ACCURATE ANSWERS
____ cannot deprive individuals of the freedoms protected by the Bill of Rights.
correct answer Federal and state governments
A misdemeanor is a crime punishable by incarceration (going to jail) for up to:
correct answer one year
A mistake of fact cannot be unilateral. correct answer False: mistakes can be
unilateral (made by only one of the parties) or bilateral aka mutual (made by both
parties)
A person who commits a tort is known as: correct answer A tortfeasor
A statement releasing one of the parties to an agreement from all liability,
regardless of who is at fault or what the injury suffered is, would be referred to as
a(n): correct answer exculpatory clause: such a statement is known as a release or
exculpatory clause
According to Professor Jones-Rikkers, what are the elements of a binding
contract? correct answer Offer, acceptance, and consideration
An "answer" can admit to allegations made in the complaint. correct answer True
An arbitrator can never render a legally binding decision. correct answer False
, An executed contract is one that has been fully performed by the parties. correct
answer True
An offer to enter into a contract requires a subjective manifestation of intent to
be bound by the terms of the offer. correct answer False
At a(n) ______, attorneys verbally examine a witness under oath with a court
reporter present. correct answer deposition
Barb sent Sally a letter offering to sell Sally her bike for $50. Sally left the letter on
her nightstand where her roommate April saw it. After reading the letter, April
wrote to Barb and stated that she (April) wanted to accept Barb's offer. Which of
the following is most correct? correct answer There is no contract between Barb
and April because Barb communicated her offer to Sally not April: It is only the
person to whom the offer is made that has the power to accept. Here the offer
was made to Sally not April.
Barb, a jogger is running on the wrong side of the street. Curt is driving his car and
hits Barb, causing her serious injuries. Curt claims that Barb was more careless
than he was because she was jogging on the improper side of the roadway. The
accident happened in Holland, Michigan. Under the applicable defense to
negligence Barb's recovery may be reduced: correct answer even if Barb was only
slightly at fault
Bette is Jack's accountant, Bette fails to properly complete financial documents
for Jack's business thereby causing Jack to loose $7,500. Jack may recover $7,500
to cover his losses if Bette failed to act as: correct answer a person in a special
relationship.
QUESTIONS WITH ACCURATE ANSWERS
____ cannot deprive individuals of the freedoms protected by the Bill of Rights.
correct answer Federal and state governments
A misdemeanor is a crime punishable by incarceration (going to jail) for up to:
correct answer one year
A mistake of fact cannot be unilateral. correct answer False: mistakes can be
unilateral (made by only one of the parties) or bilateral aka mutual (made by both
parties)
A person who commits a tort is known as: correct answer A tortfeasor
A statement releasing one of the parties to an agreement from all liability,
regardless of who is at fault or what the injury suffered is, would be referred to as
a(n): correct answer exculpatory clause: such a statement is known as a release or
exculpatory clause
According to Professor Jones-Rikkers, what are the elements of a binding
contract? correct answer Offer, acceptance, and consideration
An "answer" can admit to allegations made in the complaint. correct answer True
An arbitrator can never render a legally binding decision. correct answer False
, An executed contract is one that has been fully performed by the parties. correct
answer True
An offer to enter into a contract requires a subjective manifestation of intent to
be bound by the terms of the offer. correct answer False
At a(n) ______, attorneys verbally examine a witness under oath with a court
reporter present. correct answer deposition
Barb sent Sally a letter offering to sell Sally her bike for $50. Sally left the letter on
her nightstand where her roommate April saw it. After reading the letter, April
wrote to Barb and stated that she (April) wanted to accept Barb's offer. Which of
the following is most correct? correct answer There is no contract between Barb
and April because Barb communicated her offer to Sally not April: It is only the
person to whom the offer is made that has the power to accept. Here the offer
was made to Sally not April.
Barb, a jogger is running on the wrong side of the street. Curt is driving his car and
hits Barb, causing her serious injuries. Curt claims that Barb was more careless
than he was because she was jogging on the improper side of the roadway. The
accident happened in Holland, Michigan. Under the applicable defense to
negligence Barb's recovery may be reduced: correct answer even if Barb was only
slightly at fault
Bette is Jack's accountant, Bette fails to properly complete financial documents
for Jack's business thereby causing Jack to loose $7,500. Jack may recover $7,500
to cover his losses if Bette failed to act as: correct answer a person in a special
relationship.
