PRE-ASSESSMENT: BUSINESS LAW FOR
ACCOUNTANTS
1. A client owed an accountant $2,500 for an accounting service provided. The
client believed that the services the accountant provided cost less than $2,500
because they did not seem difficult, based on the client's judgment. When the
accountant demanded payment, the client sent a check for $2,250 marked
"tendered in full satisfaction." The accountant endorsed and cashed the check.
Which type of settlement agreement is this? - ANS☑☑---Accord and
satisfaction
2. A collector agreed to sell a rare collection of baseball cards to a buyer for
$2,000 after several weeks of negotiation and discussion. After the sale, the
buyer and collector do additional independent research and both learn that
the baseball cards are worth only $20. What is the court's decision if this
buyer sues this collector? - ANS☑☑---No damages
3. A company created a film to train its employees on workplace safety. Which
type of protection should the company seek for the training film? -
ANS☑☑---Copyright
4. A company started a beverage company that sells a variety of juices. All the
juices are sold in a plastic bottle with the company's name, the name of the
juice, and a logo the owner found online. Which type of protection should the
owner seek for the name of the juice? - ANS☑☑---Trademark
5. A business advertised a reduced price on its new skillet for one day only. A
customer saw this advertisement and visited the business, where the clerk
instructed them to try the new, more expensive grills. The business never had
any skillets in stock. Which type of advertising technique is this business
engaging in? - ANS☑☑---Bait-and-switch advertising
, 6. A CEO thinks it is time to talk about business ethics to senior management.
She is developing a list of talking points. What is a fundamental ethical issue
that must be included in these talking points? - ANS☑☑---Developing
integrity and trust
7. A consumer purchases goods through the mail. Under which circumstances
would the merchant violate the Mail, Internet, or Telephone Order
Merchandise Rule? - ANS☑☑---Failing to notify the consumer when orders
cannot be shipped on time
8. A corporate officer enters into a contract with a supplier for the purchase of
raw materials for the corporation. What is the agency status between the
corporate officer and the corporation? - ANS☑☑---Agent and principal,
agency relationship
9. A corporation is creating a media campaign. It has not been able to attract
any famous personalities even when it was willing to pay. It believes it is
crucial to have a famous person behind this campaign to succeed. The
accountant is out doing some errands and notices a crowd of people at a
corner. He rushes over to see what is going on and notices a famous actor
giving autographs and taking pictures with people. He asks the famous actor
if he could take a picture and the famous actor agrees. The accountant gives
the picture to advertising and tells the department that the famous actor
agreed to have his picture taken. The corporation releases the media
campaign with the famous actor's picture in it. While browsing on social
media, the famous actor sees the campaign and calls his lawyer. The famous
actor's lawyer sues the corporation for using the famous actor's picture
without consent. Do this famous actor's allega - ANS☑☑---Yes, because the
accountant should have explained the purpose of the picture.
10. A corporation wants to conduct business in a state other than the state of its
formation.
ACCOUNTANTS
1. A client owed an accountant $2,500 for an accounting service provided. The
client believed that the services the accountant provided cost less than $2,500
because they did not seem difficult, based on the client's judgment. When the
accountant demanded payment, the client sent a check for $2,250 marked
"tendered in full satisfaction." The accountant endorsed and cashed the check.
Which type of settlement agreement is this? - ANS☑☑---Accord and
satisfaction
2. A collector agreed to sell a rare collection of baseball cards to a buyer for
$2,000 after several weeks of negotiation and discussion. After the sale, the
buyer and collector do additional independent research and both learn that
the baseball cards are worth only $20. What is the court's decision if this
buyer sues this collector? - ANS☑☑---No damages
3. A company created a film to train its employees on workplace safety. Which
type of protection should the company seek for the training film? -
ANS☑☑---Copyright
4. A company started a beverage company that sells a variety of juices. All the
juices are sold in a plastic bottle with the company's name, the name of the
juice, and a logo the owner found online. Which type of protection should the
owner seek for the name of the juice? - ANS☑☑---Trademark
5. A business advertised a reduced price on its new skillet for one day only. A
customer saw this advertisement and visited the business, where the clerk
instructed them to try the new, more expensive grills. The business never had
any skillets in stock. Which type of advertising technique is this business
engaging in? - ANS☑☑---Bait-and-switch advertising
, 6. A CEO thinks it is time to talk about business ethics to senior management.
She is developing a list of talking points. What is a fundamental ethical issue
that must be included in these talking points? - ANS☑☑---Developing
integrity and trust
7. A consumer purchases goods through the mail. Under which circumstances
would the merchant violate the Mail, Internet, or Telephone Order
Merchandise Rule? - ANS☑☑---Failing to notify the consumer when orders
cannot be shipped on time
8. A corporate officer enters into a contract with a supplier for the purchase of
raw materials for the corporation. What is the agency status between the
corporate officer and the corporation? - ANS☑☑---Agent and principal,
agency relationship
9. A corporation is creating a media campaign. It has not been able to attract
any famous personalities even when it was willing to pay. It believes it is
crucial to have a famous person behind this campaign to succeed. The
accountant is out doing some errands and notices a crowd of people at a
corner. He rushes over to see what is going on and notices a famous actor
giving autographs and taking pictures with people. He asks the famous actor
if he could take a picture and the famous actor agrees. The accountant gives
the picture to advertising and tells the department that the famous actor
agreed to have his picture taken. The corporation releases the media
campaign with the famous actor's picture in it. While browsing on social
media, the famous actor sees the campaign and calls his lawyer. The famous
actor's lawyer sues the corporation for using the famous actor's picture
without consent. Do this famous actor's allega - ANS☑☑---Yes, because the
accountant should have explained the purpose of the picture.
10. A corporation wants to conduct business in a state other than the state of its
formation.
