MGMT 230
101. Compensatory damages are foreseeable damages that arise from a party’s breach of contract. True False
102. Special damages are awarded for damage caused by special circumstances beyond a contract. True False
103. The purpose of the doctrine of election of remedies is to permit a double recovery. True False
104. A party who knowingly accepts defective performance of a contract waves the breach. True False
105. The stability and predictability of the law is essential to business activities. True False
106. State law that conflicts with the U.S. Constitution will be deemed unconstitutional. True False
107. Common law is a term for law that is common throughout the world. True False
108. Damages are a remedy at law. True False
109. Courts do not depart from precedent True False
110. Most state trial court decisions are not published. True False
111. Federal courts have jurisdiction over any case involving citizens of different states regardless of the amount in controversy. True False
112. Venue is the term for the subject matter of a case. True False
113. There is one set of procedural rules for federal courts and various sets for state courts. True False
114. A default judgment is entered against a party who fails to respond to the allegations in a complaint. True False
115. A summary judgment is granted only if there is no genuine question of law. True False
116. Alternative dispute resolution refers to any method for resolving a dispute outside the court system. True False
117. A court’s scope of review on the appeal of an arbitrator’s award may be restricted. True False
118. An arbitrator’s award may be set aside if it was the result of corruption or fraud. True False
119. Corporations can be perceived as owing ethical duties to groups other than their shareholders. True False
120. Restricting the bonuses that are paid to executives is unethical. True False
121. Bribery of foreign government officials is both an ethical and legal issue. True False
122. Any employee, except and undocumented alien, can bring an action for employment discrimination. True False
123. Employers cannot forbid their employees from participating in any religious activity. True False
124. Sexual harassment occurs when sexual favors are demanded in return for job opportunities, promotions, salary increases or other benefits. True False
125. An employer may be liable for the harassment of non-employees if the employer knew about the harassment and failed to take corrective action. True False
126. The Americans with Disabilities Act of 1990 defines persons with disabilities as persons with physical or mental impairments that “substantially limit” their everyday activities. True False
127. Under current law, an employer must adopt an affirmative action plan. True False
128. Generally, under employment at-will doctrine, an employee may quit a job at any time for any reason. True False
129. All employees are entitled to overtime pay. True False
130. Certain employers must provide their employees with up to 15 weeks of unpaid family or medical leave during any 15-month period. True False
131. An employer generally is required to notify an employee when an absence will be counted as family or medical leave under federal law. True False
132. Employers have a general duty to keep the workplace safe. True False
133. Non-employees may recover benefits under Workers Compensation laws. True False
134. To recover Workers Compensation, an employee must prove that an injury did not occur on the job or in the course of employment. True False
135. Employers are required to establish retirement plans for their employees. True False
136. No employee has a reasonable expectation of privacy in the workplace. True False
137. An independent contractor may not act in the capacity of an agent. True False
138. A person must have contractual capacity to be a principal. True False
139. An agent’s actions must be strictly for the benefit of the principal. True False
140. Apparent authority usually comes into existence through a principal’s pattern of conduct over time. True False
141. A principal is exposed to tort liability whenever a third person sustains a loss due to an agent’s misrepresentation. True False
142. A corporation is referred to a domestic corporation by its home state. True False
143. An S corporation is treated the same as a regular corporation for tax purposes. True False
144. The first step in the incorporation process is to select the state in which to operate. True False
145. When the corporate privilege is abused for personal benefit, the court will require the owners to assume personal liability. True False
146. Many states permit a corporate board to have fewer than three directors. True False
147. A director or officer is not liable to the corporation for a negligently made bad business decision. True False
148. Directors are entitled to use confidential corporate information for their personal advantage. True False
149. A director does not need to expose any conflict of interest before voting on a proposed transaction. True False
150. Before shareholders can bring a derivative suit, they must submit a written demand to the corporation, asking the board of directors to take action. True False
151. False imprisonment is a legal term for “privilege to detain.” True False
152. Malicious prosecution can occur if a party initiates a lawsuit out of malice. True False
153. If it can be shown that a trespass to personal property was warranted, a complete defense exists. True False
154. Causation in fact exists if an injury would not have occurred without the defendants act. True False
155. The law establishes limits to liability for negligence through the concept of proximate cause. True False
156. Negligence per se may occur on the violation of a statute. True False
157. The basis for applying strict liability is an intentional wrongful act. True False
158. Strict liability is imposed based on fault. True False
159. The purpose of tort law is to punish criminal wrong doers. True False
160. Only the manufacturer of a defective product can be strictly liable for an injury or damage caused by the product. True False
161. The types of product defects that have been traditionally recognized in product liability law include design defects. True False
162. When an offeror does not specify a means of acceptance, acceptance can be made by any means of a communication that is reasonable. True False
163. If a buyer breaches a contract, the seller can choose to simply cancel the contract. True False
164. An e-contract must meet the same basic requirements as a paper contract. True False
165. Under federal law, an electronic document can be as enforceable as a paper one. True False
166. A contractual obligation may not be discharged through novation. True False
167. In Islamic countries, the law is often influenced by the religious law of Islam. True False
168. In a civil law system, the only official source of law is a statutory code. True False
169. Disparate impact discrimination is intentional discrimination. True False
170. The burden of proof required in a criminal case is “preponderance of the evidence.” True False
171. Stealing software is not a crime. True False
172. Necessity is never a defense to a criminal act. True False
173. The U.S. Constitution is the supreme law of the United States. True False
174. There is one right answer to every legal question. True False
175. State courts are inferior to federal courts. True False
176. For purposes of diversity of citizenship, a corporation is a citizen only of the state in which its principle place of business is located. True False
177. A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers for its products. True False
178. Courts of appeals conduct new trials in which evidence is submitted to the court but witnesses are not examined. True False
179. Discrimination based on Title VII is narrowly construed. True False
180. Employers are prohibited from electronically monitoring their employees. True False
181. The only defense to criminal liability that justifies the use of force is self-defense. True False
182. Under the exclusionary rule, all evidence must be included in a criminal prosecution. True False
183. A misdemeanor is a crime punishable only by a fine. True False
184. The purpose of the exclusionary rule is to encourage criminals to provide exclusive evidence of their crimes. True False
185. Federal administrative agencies can regulate beyond the powers granted by enabling legislation. True False
186. Administrative agencies cannot make legislative rules or substantive rules that are as legally binding as laws that the congress passes. True False
187. Independent regulatory agencies include the cabinet departments of the executive branch. True False
188. All powers not specifically delegated to the federal government are reserved to the states. True False
189. Under the commerce clause, a state may impose a higher tax on out of state products shipped to in state locations. True False
190. Preemption is a doctrine under which a state law takes precedence over a conflicting federal law. True False
191. The taxing and spending clause of the U.S. Constitution has had a greater impact on business than any other clause in the constitution. True False
192. The right to due process of law applies to corporations. True False
193. Federal courts have jurisdiction over any case involving citizens of different states regardless of the amount in controversy. True False
194. Federal cases typically originate in appellate courts. True False
195. A petitioner is the party against whom an appeal is taken. True False
196. The most common way to discharge a contract is by performance. True False
197. Anything less than complete performance is a material breach of contract. True False
198. Some risks are obvious but with respect to the duty of care required to establish negligence, a warning is always necessary. True False
199. To avoid strict product liability, a manufacturer must make a product entirely safe for all uses. True False
200. The extreme risk of an activity is a primary basis for imposing strict liability. True False