LEGAL ENVIRONMENT OF
BUSINESS EXAM 2024
QUESTIONS AND ANSWERS
Which of the following is not a common challenge to business ethics and values
management? - Answer-Success is measured in profits and losses, not in ethical
conduct.
The moderate view of assessing corporate citizenship holds that - Answer-The
government should provide the exclusive view of corporate responsibility.
Ethical misconduct not only includes illegal and unethical practices but also includes
questionable practices of managers and organizations. - Answer-True
Under the moral minimum theory, as long as the business remains profitable, the
company strives to act as ethically as possible. - Answer-True
A consulting contract between a management consulting firm and a software company
is governed by what source of law? - Answer-Common Law
A contract in which one party may disaffirm or enforce the contract is - Answer-A
voidable contract
A contract that lacks one or more of the basic required elements of a contract or that
has not been formed in conformance with the law from the outset of the agreement is
considered - Answer-Void
A promise that can be accepted only by the performance of the person to whom it is
offered is an example of - Answer-A unilateral contract
A[n] ___________ is where the offeror agrees to hold an offer open and not to enter into
a contract with another party for a certain period of time in exchange for consideration. -
Answer-Option contract
All of the following are necessary elements of a contract except - Answer-Writing
An offer may be terminated in all but which of the following ways? - Answer-Acceptance
If the offer specifies no time limit to which to accept - Answer-The offeree has a
reasonable amount of time to accept.
, In general, contracts for services are governed by - Answer-State Common Law.
In general, contracts for the sale of goods are governed by - Answer-State statutory law
based on the Uniform Commercial Code.
An event that occurs after the performance under a contract and discharges the parties'
contractual obligations is best referred to as a(n) - Answer-Condition Subsequent
In which of the following scenarios would enforcement of specific performance be
appropriate? - Answer-You own the pistol used by Hamilton and contract to buy the
pistol used by Burr in the Hamilton -Burr duel to complete your set, but despite the
contract the Burr pistol owner refuses to sell at the last minute.
In which of the following situations would a delegation of contractual duties be allowed?
- Answer-A painter hired to paint your home.
In which of the following situation would anticipatory repudiation not be allowed? -
Answer-Manny calls Moe and tells him that the sculpture he's creating for him is coming
along slower than anticipated but he's pretty sure he'll be done by the contract deadline.
Which of the following is classified as an equitable remedy? - Answer-Reformation
Which of the following involves a third-party substitution? - Answer-Novation
When examining and enforcing conditions precedent and conditions subsequent, courts
generally will - Answer-Not recognize any substantive difference between the two
categories of conditions.
In which of the following situations is a court most likely to find substantial performance?
- Answer-KM Corporation orders 500 boxes of copy paper from MK supply, but MK can
deliver only 450 boxes.
Which of the following is not a discharge by mutual consent? - Answer-Frustration of
purpose
Which of the following is rarely awarded in contract cases? - Answer-Punitive Damages
Commercially reasonable means - Answer-Observing industry standards and practices
that may be unique to the particular industry.
For a writing to satisfy statute of frauds requirements under the UCC, it must include
each of the following except - Answer-Price
In a destination contract, risk of loss passes to the buyer when the goods - Answer-Are
tendered at the specific destination.
BUSINESS EXAM 2024
QUESTIONS AND ANSWERS
Which of the following is not a common challenge to business ethics and values
management? - Answer-Success is measured in profits and losses, not in ethical
conduct.
The moderate view of assessing corporate citizenship holds that - Answer-The
government should provide the exclusive view of corporate responsibility.
Ethical misconduct not only includes illegal and unethical practices but also includes
questionable practices of managers and organizations. - Answer-True
Under the moral minimum theory, as long as the business remains profitable, the
company strives to act as ethically as possible. - Answer-True
A consulting contract between a management consulting firm and a software company
is governed by what source of law? - Answer-Common Law
A contract in which one party may disaffirm or enforce the contract is - Answer-A
voidable contract
A contract that lacks one or more of the basic required elements of a contract or that
has not been formed in conformance with the law from the outset of the agreement is
considered - Answer-Void
A promise that can be accepted only by the performance of the person to whom it is
offered is an example of - Answer-A unilateral contract
A[n] ___________ is where the offeror agrees to hold an offer open and not to enter into
a contract with another party for a certain period of time in exchange for consideration. -
Answer-Option contract
All of the following are necessary elements of a contract except - Answer-Writing
An offer may be terminated in all but which of the following ways? - Answer-Acceptance
If the offer specifies no time limit to which to accept - Answer-The offeree has a
reasonable amount of time to accept.
, In general, contracts for services are governed by - Answer-State Common Law.
In general, contracts for the sale of goods are governed by - Answer-State statutory law
based on the Uniform Commercial Code.
An event that occurs after the performance under a contract and discharges the parties'
contractual obligations is best referred to as a(n) - Answer-Condition Subsequent
In which of the following scenarios would enforcement of specific performance be
appropriate? - Answer-You own the pistol used by Hamilton and contract to buy the
pistol used by Burr in the Hamilton -Burr duel to complete your set, but despite the
contract the Burr pistol owner refuses to sell at the last minute.
In which of the following situations would a delegation of contractual duties be allowed?
- Answer-A painter hired to paint your home.
In which of the following situation would anticipatory repudiation not be allowed? -
Answer-Manny calls Moe and tells him that the sculpture he's creating for him is coming
along slower than anticipated but he's pretty sure he'll be done by the contract deadline.
Which of the following is classified as an equitable remedy? - Answer-Reformation
Which of the following involves a third-party substitution? - Answer-Novation
When examining and enforcing conditions precedent and conditions subsequent, courts
generally will - Answer-Not recognize any substantive difference between the two
categories of conditions.
In which of the following situations is a court most likely to find substantial performance?
- Answer-KM Corporation orders 500 boxes of copy paper from MK supply, but MK can
deliver only 450 boxes.
Which of the following is not a discharge by mutual consent? - Answer-Frustration of
purpose
Which of the following is rarely awarded in contract cases? - Answer-Punitive Damages
Commercially reasonable means - Answer-Observing industry standards and practices
that may be unique to the particular industry.
For a writing to satisfy statute of frauds requirements under the UCC, it must include
each of the following except - Answer-Price
In a destination contract, risk of loss passes to the buyer when the goods - Answer-Are
tendered at the specific destination.
