Chapter 1 To 51
TEST BANK
,Table of contents
UNIT I: THE LEGAL ENVIRONMENT OF BUSINESS.
1. Law and Legal Reasoning.
2. Business and the Constitution.
3. Ethics in Business.
4. Courts and Alternative Dispute Resolution.
5. Court Procedures.
UNIT II: TORTS AND CRIMES.
6. Tort Law.
7. Strict Liability and Product Liability.
8. Intellectual Property Rights.
9. Internet Law, Social Media, and Privacy.
10. Criminal Law and Cyber Crime.
UNIT III: CONTRACTS AND E-CONTRACTS.
11. Nature and Terminology.
12. Agreement.
13. Consideration.
14. Capacity and Legality.
15. Mistakes, Fraud, and Voluntary Consent.
16. The Writing Requirement.
17. Third Party Rights.
18. Performance and Discharge.
19. Breach of Contract and Remedies.
UNIT IV: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS.
20. Sales and Lease Contracts.
21. Title, Risk, and Insurable Interest.
22. Performance and Breach of Sales and Lease Contracts.
23. Warranties.
24. International and Space Law.
UNIT V: NEGOTIABLE INSTRUMENTS.
25. Negotiable Instruments.
26. Transferability and Holder in Due Course.
,27. Liability, Defenses, and Discharge.
28. Banking.
UNIT VI: CREDITORS’ RIGHTS AND BANKRUPTCY.
29. Creditors’ Rights and Remedies.
30. Secured Transactions.
31. Bankruptcy Law.
UNIT VII: AGENCY AND EMPLOYMENT.
32. Agency Formation and Duties.
33. Agency Liability and Termination.
34. Employment, Immigration, and Labor Law.
35. Employment Discrimination.
UNIT VIII: BUSINESS ORGANIZATIONS.
36. Small Businesses and Franchises.
37. All Forms of Partnerships.
38. Limited Liability Companies and Special Business Forms.
39. Corporate Formation and Financing.
40. Corporate Directors, Officers, and Shareholders.
41. Mergers and Takeovers.
42. Investor Protection, Insider Trading, and Corporate Governance.
UNIT IX: GOVERNMENT REGULATION.
43. Administrative Agencies.
44. Consumer Law.
45. Environmental Protection.
46. Antitrust Law.
47. Professional Liability and Accountability.
Unit X: Property and Its Protection.
48. Personal Property and Bailments.
49. Real Property and Landlord-Tenant Law.
50. Insurance.
51. Wills and Trusts.
, Chapter 1: Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business
activities. ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among individuals and between
individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform
it. ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking A
4. Constitutional law includes only the U.S. Constitution.
ANSWER: F
A5. A state constitution is supreme within the state‘s borders.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
6. Whether a law is constitutional depends on its source.
TEST BANK
,Table of contents
UNIT I: THE LEGAL ENVIRONMENT OF BUSINESS.
1. Law and Legal Reasoning.
2. Business and the Constitution.
3. Ethics in Business.
4. Courts and Alternative Dispute Resolution.
5. Court Procedures.
UNIT II: TORTS AND CRIMES.
6. Tort Law.
7. Strict Liability and Product Liability.
8. Intellectual Property Rights.
9. Internet Law, Social Media, and Privacy.
10. Criminal Law and Cyber Crime.
UNIT III: CONTRACTS AND E-CONTRACTS.
11. Nature and Terminology.
12. Agreement.
13. Consideration.
14. Capacity and Legality.
15. Mistakes, Fraud, and Voluntary Consent.
16. The Writing Requirement.
17. Third Party Rights.
18. Performance and Discharge.
19. Breach of Contract and Remedies.
UNIT IV: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS.
20. Sales and Lease Contracts.
21. Title, Risk, and Insurable Interest.
22. Performance and Breach of Sales and Lease Contracts.
23. Warranties.
24. International and Space Law.
UNIT V: NEGOTIABLE INSTRUMENTS.
25. Negotiable Instruments.
26. Transferability and Holder in Due Course.
,27. Liability, Defenses, and Discharge.
28. Banking.
UNIT VI: CREDITORS’ RIGHTS AND BANKRUPTCY.
29. Creditors’ Rights and Remedies.
30. Secured Transactions.
31. Bankruptcy Law.
UNIT VII: AGENCY AND EMPLOYMENT.
32. Agency Formation and Duties.
33. Agency Liability and Termination.
34. Employment, Immigration, and Labor Law.
35. Employment Discrimination.
UNIT VIII: BUSINESS ORGANIZATIONS.
36. Small Businesses and Franchises.
37. All Forms of Partnerships.
38. Limited Liability Companies and Special Business Forms.
39. Corporate Formation and Financing.
40. Corporate Directors, Officers, and Shareholders.
41. Mergers and Takeovers.
42. Investor Protection, Insider Trading, and Corporate Governance.
UNIT IX: GOVERNMENT REGULATION.
43. Administrative Agencies.
44. Consumer Law.
45. Environmental Protection.
46. Antitrust Law.
47. Professional Liability and Accountability.
Unit X: Property and Its Protection.
48. Personal Property and Bailments.
49. Real Property and Landlord-Tenant Law.
50. Insurance.
51. Wills and Trusts.
, Chapter 1: Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business
activities. ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
A2. Law is a body of enforceable rules governing relationships among individuals and between
individuals and their society.
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
A3. A breach of a contract is a failure to perform
it. ANSWER: T PAGE: 3 TYPE: N
NAT: AACSB Ethics AICPA Critical Thinking A
4. Constitutional law includes only the U.S. Constitution.
ANSWER: F
A5. A state constitution is supreme within the state‘s borders.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
6. Whether a law is constitutional depends on its source.
