BUS 115 REVIEW CORRECT
QUESTIONS & ANSWERS(RATED A+)
A _____ is a violation of the rights of an identifiable individual or business that has been
wronged by an intentional act, not by negligence. - ANSWER tort
A ________ is a person of legal age and at least normal mentality who is considered by
law to be capable of understanding the meaning of a contract and is permitted to enter
into a valid contract. - ANSWER competent party
A category of illegal activity that includes embezzlement, stock swindles, fraud against
insurance companies, credit card fraud, computer fraud, and theft of computer
programs is generally known as white-collar crime. - ANSWER true
A community may not designate certain areas of development as zones for such uses
as light industrial, industrial, commercial, and residential. - ANSWER false
A felony is a crime punishable by death or imprisonment in a federal or state prison for a
term exceeding one year. - ANSWER true
A gambling agreement is one in which performance by one party depends on the
occurrence of a(n): - ANSWER uncertain event
A misdemeanor is a crime punishable by a prison sentence of no more than one year. -
ANSWER true
A party who makes a promise is called a(n) ________. - ANSWER promisor
A person can be charged with creating a public nuisance by causing loud noises,
creating foul odors, shining bright lights, or diverting a stream. - ANSWER true
A person must be competent in both ________ and mentality to enter into a contract. -
ANSWER age
A person who discusses the terms of a purchase with a salesperson, pays cash for the
purchase, and takes the item with him, has made a valid oral contract. - ANSWER true
A person who makes a promise without requiring some benefit in return has made a: -
ANSWER gratuitous promise
A person who makes false statements to a bank for the purpose of obtaining a loan can
be prosecuted for the offense of: - ANSWER false pretenses
, A private wrong that causes injury to the physical well-being, property, or reputation of
another person is called a(n)_____. - ANSWER tort
A telephone conversation can result in a(n): - ANSWER enforceable oral contract
A unified set of statutes designed to govern almost all commercial transactions. -
ANSWER UCC
A valid contract does not exist if the consideration is a promise to perform an illegal act,
or to avoid performing an act that is legally required to be performed. - ANSWER true
A valid offer must be all of the following EXCEPT: - ANSWER stating in writing
A(n) ________ is a document that compels an individual or business to appear before
an agency. - ANSWER subpoena
Explain the difference between binding precedent versus persuasive precedent. -
ANSWER With binding precedent a court must follow the ruling. Persuasive precedent
can be followed or ignored.
Freedom of speech is covered under which Amendment? - ANSWER First Amendment
If a contract requires a person to do something he or she is already required to do, such
as obey all traffic laws, the contract is: - ANSWER not enforceable
If a loan is made at an interest rate higher than that allowed by state law, the lender is
guilty of ________, which is defined as charging interest higher than the law permits. -
ANSWER usury
If a minor injures another person or damages another person's property, he or she may
be liable for such injuries or damages and may be prosecuted by the state in a criminal
action. - ANSWER true
If only one party promises something, such as paying a certain amount of money, and
the other party promises nothing, then the agreement lacks - ANSWER consideration
If the offeror acknowledges the rejection but restates the offer, the offeree: - ANSWER
still has the opportunity to accept, reject, or make a counteroffer.
If the person accused of defamation had a special privilege in making the defamatory
statement, such as an attorney in a court proceeding who accuses a witness of lying,
the person who claims he or she was defamed: - ANSWER cannot recover damages
In 1890, Congress passed the Federal Antitrust Act. Similar antitrust statutes have been
passed by most states to prohibit: - ANSWER local anticompetitive practices.
QUESTIONS & ANSWERS(RATED A+)
A _____ is a violation of the rights of an identifiable individual or business that has been
wronged by an intentional act, not by negligence. - ANSWER tort
A ________ is a person of legal age and at least normal mentality who is considered by
law to be capable of understanding the meaning of a contract and is permitted to enter
into a valid contract. - ANSWER competent party
A category of illegal activity that includes embezzlement, stock swindles, fraud against
insurance companies, credit card fraud, computer fraud, and theft of computer
programs is generally known as white-collar crime. - ANSWER true
A community may not designate certain areas of development as zones for such uses
as light industrial, industrial, commercial, and residential. - ANSWER false
A felony is a crime punishable by death or imprisonment in a federal or state prison for a
term exceeding one year. - ANSWER true
A gambling agreement is one in which performance by one party depends on the
occurrence of a(n): - ANSWER uncertain event
A misdemeanor is a crime punishable by a prison sentence of no more than one year. -
ANSWER true
A party who makes a promise is called a(n) ________. - ANSWER promisor
A person can be charged with creating a public nuisance by causing loud noises,
creating foul odors, shining bright lights, or diverting a stream. - ANSWER true
A person must be competent in both ________ and mentality to enter into a contract. -
ANSWER age
A person who discusses the terms of a purchase with a salesperson, pays cash for the
purchase, and takes the item with him, has made a valid oral contract. - ANSWER true
A person who makes a promise without requiring some benefit in return has made a: -
ANSWER gratuitous promise
A person who makes false statements to a bank for the purpose of obtaining a loan can
be prosecuted for the offense of: - ANSWER false pretenses
, A private wrong that causes injury to the physical well-being, property, or reputation of
another person is called a(n)_____. - ANSWER tort
A telephone conversation can result in a(n): - ANSWER enforceable oral contract
A unified set of statutes designed to govern almost all commercial transactions. -
ANSWER UCC
A valid contract does not exist if the consideration is a promise to perform an illegal act,
or to avoid performing an act that is legally required to be performed. - ANSWER true
A valid offer must be all of the following EXCEPT: - ANSWER stating in writing
A(n) ________ is a document that compels an individual or business to appear before
an agency. - ANSWER subpoena
Explain the difference between binding precedent versus persuasive precedent. -
ANSWER With binding precedent a court must follow the ruling. Persuasive precedent
can be followed or ignored.
Freedom of speech is covered under which Amendment? - ANSWER First Amendment
If a contract requires a person to do something he or she is already required to do, such
as obey all traffic laws, the contract is: - ANSWER not enforceable
If a loan is made at an interest rate higher than that allowed by state law, the lender is
guilty of ________, which is defined as charging interest higher than the law permits. -
ANSWER usury
If a minor injures another person or damages another person's property, he or she may
be liable for such injuries or damages and may be prosecuted by the state in a criminal
action. - ANSWER true
If only one party promises something, such as paying a certain amount of money, and
the other party promises nothing, then the agreement lacks - ANSWER consideration
If the offeror acknowledges the rejection but restates the offer, the offeree: - ANSWER
still has the opportunity to accept, reject, or make a counteroffer.
If the person accused of defamation had a special privilege in making the defamatory
statement, such as an attorney in a court proceeding who accuses a witness of lying,
the person who claims he or she was defamed: - ANSWER cannot recover damages
In 1890, Congress passed the Federal Antitrust Act. Similar antitrust statutes have been
passed by most states to prohibit: - ANSWER local anticompetitive practices.
