LAW 531 Final Exam 2018

LAW 531 Final Exam 2018 1. The obligation owed by individuals to one another not to cause any unreasonable harm or any risk of harm is called: duty of care duty of restoration. duty of loyalty. duty of restitution. 2. Which of the following best describes the term warranty? It refers to the terms in a sales contract stipulating the party that will bear the risk of loss of goods during shipment. It is a purchaser’s title to goods obtained by the impersonation of another person. It is the seller’s assurance to a buyer that the goods sold meet certain standards of quality. It refers to the transfer of possession of stolen property to a person who had bought the property without the knowledge that it has been stolen. 3 The manifestation of the substance of a contract by two or more individuals is called . acceptance an agreement an offer consideration 4 Workers’compensation is defined as the: set of programs mandated by the government to ensure safety in places of work. remuneration awarded to employees & their families when the employees are injured on the job. insurance obtained by employees from private insurance companies & government-sponsored programs. system that provides retirement & death benefits to covered employees & their dependents. 5. Which of the following applies to trade restraints that are inherently anticompetitive? The per se rule The pro rata rule The rule of four The rule of reason 6. A group boycott occurs when: competitors at one level of distribution collectively refuse to deal with others at a different level of distribution. parties enter into a trade agreement that has greater anticompetitive effects than procompetitive effects. competitors agree that they will distribute their goods to only a particular portion of the market. parties at different levels of distribution enter into an agreement to adhere to a schedule that will stabilize prices. 7. Which of the following scenarios is an example of law & ethics contradicting each other? the trademarked garment designs of a well-known fashion designer. A restaurateur, whose restaurant is violating labor laws, bribes a federal official to prevent him from reporting the violations. A florist in the United States employs an illegal immigrant to help the immigrant & her family overcome their financial difficulties. An iron-ore manufacturing company provides its employees with high-quality safety equipment. 8. Corporate officers are elected by a corporation’s . board of directors preferred stockholders owners common stockholders 9. Which of the following is a category of torts? Personal liability Nonintent crime Professional malpractice Strict liability 10. Corporate officers are best described as: owners of a corporation with limited liability for its debts & obligations. directors elected by a corporation’s shareholders. employees appointed to manage the daily operations of a corporation. partners pursuing a joint venture transaction 11. Which of the following is a remedy that requires the breaching party to perform the acts promised in a contract? Binding arbitration Special damages Specific performance Punitive damages 12. Helen buys a toy railway set for her 3-year-old son, Ben. The product’s cover mentions that the toy is suitable for children only aged between 3 & 12. While playing with the toy one evening, without Helen’s supervision, Ben chokes on an inch-long engine driver figure that forms part of the train. Although he survives, he is traumatized by the incident. For which type of defect can Helen sue the toy manufacturer? Failure to tamperproof Defect in product packaging Failure to warn Defect in manufacture 13. An agency that appears to be created by a principal but does not exist in reality is called a(n) .