Business Law for Accountants Review Questions Flashcards
The US Constitution sets forth the governments ________?
limits and powers
Laws enacted by legislative bodies at any level of government make up the body of law generally referred to as _____?
statutory Law
The Uniform Commercial Code provides a set of rules governing ________?
commercial Transactions
Administrative law includes _______?
the rules, orders, and decisions of a government agency
The classification of law that concerns the rights and duties that exist between persons and between citizens of their governments is _______?
civil Law
Criminal statutes prescribe which of the following?
Wrongs committed against society for which society demands redress
In a civil case, the object is to _______?
obtain a remedy to compensate the injured party
In a criminal case, the object is to _______?
punish a wrongdoer to deter others from similar actions
A precedent is _______?
a court decision that furnishes an example for deciding subsequent cases involving similar or identical facts or principles
Each court has a jurisdiction. Jurisdictions are best defined as ______?
th geographic area in which a court has the power to apply the law
When Laura and Mick can’t resolve their dispute amicably, Laura initiates a lawsuit against Mick. Laura is ________ in the lawsuit?
the plaintiff
In a case, the court may rule contrary to the precedent if the court decides that the precedent is _________?
incorrect or inappropriate for the situation
The federal government has the power to regulate commercial activities among the states under ________?
the commerce clause
Nat Gas Co. obtains a federal license to operate a gas pipeline through a certain area of Oregon. The Oregon state legislature enacted a law that bans gas pipelines in that area. Most likely, the state will violate ___________?
the supremacy clause
To reduce traffic, Market Town enacted an ordinance that allows only a few specific street vendors to operate in certain areas. A court would likely review this ordinance under the principle of __________?
equal protection
Company managers are most likely to find that unethical behavior in the workplace can be deterred by ______?
taking immediate action in response to unethical conduct
Duty-based ethical standards are most likely to derive from ______?
philosophical reasoning
Making a decision based on its projected financial outcome and then arguing that the decision is ethical is _______?
rationalizing the decision
Jimena, a marketing manager for Home Stuff LLC, is responsible for branding the company’s products. Aspects of branding that can be trademarked include _________?
a catchy phrase, such as “stuff your home with Home Stuff”
Without permission, Race Runners Inc. uses a trademark that is similar to the registered mark of Swiftfoot Inc. This use of the mark constitutes the trademark dilution if ________?
the use diminishes the distinctive quality of the work
Brewed Beans Inc. makes and sells “Co Co Cafe”, a chocolate-flavored coffee. Darkroast Inc. later marketed a similar drink under the name “Ko Ko Cafe”. This is most likely _______?
trademark infringement
Phoenix Inc. is a publisher. Phoenix uses a logo featuring a bird rising from a flame to identify its publications. The publications are printed ina unique process that includes a 3-D printer. Phoenix could most likely obtain trademark protection for its _______?
logo
Serena invents a new, unique long-life battery. A grant from the government that gives Serena the exclusive right to make and sell the battery for a certain period of time is _________?
a patent
How long does a company have to file a challenge for an infringed patent?
6 years
To be protected under the Copyright Act, a work must me _________?
original and fixed in a durable medium
Prognosis Inc. owns a brain-computer interface that enables physicians to diagnose and treat some diseases quickly and accurately. Federal copyright protection extends to _________?
the parts of the app that can be read by computers
Like most successful companies, Phones Inc. has trade secrets. The law protects those secrets if the information is _______?
unique and has value to a competitor
The marketing process for “Price and Profit”, an app that businesses can use to track their revenue, profit, and payroll, is protected by _______?
trade secret laws
The primary source for contract law is ______?
common law
Juan offers to pay Sari to deliver certain documents within 30 minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Juan and Sari will have _________?
a unilateral contract
Marketing Inc. offers to create a campaign to increase N’Ice Cream Inc.’s online business. N’Ice agrees to pay for the service. These parties have _______?
an express contract
Macy offers to sell his fitness watch for $70 to Nona. Nona promises to pay Macy the price later. They exchanged the watch for the funds. A contract was formed when ______?
Nona promised to pay Macy for the watch
Grinders Mill agrees to sell to Harvest Company a certain quantity of refined grains. Some of the other terms int he deal are left open. In the case of a dispute, a court will generally presume ________?
whatever is reasonable
Bon, an agent for City Motors Inc., e-mails Dale on May 1st that the dealer will sell to him a 2018 Ford pick-up truck for $25,000 between May 1st and July 1st. Bon’s offer to Dale is _______?
irrevocable for the stated period
Bean Processor Inc. agrees to ship a certain quantity of coffee beans to Coffee Cafe LLC. Bean sends Coffee an
e-mail indicating that the parties intended to form a contract. Against Bean, as a contract, the email will be sufficient if __________?
it is signed by Bean
Donna offers to sell her used sofa chair, coffee table, end table, and lamp to Etta for $700. Etta responds that she will pay that price if Donna’s TV set is included. Neither party is a merchant. Their contract is formed according to _________?
the terms of the original offer
Seacoast Transport Co. pays Trucks and Trailers Inc. a stated price for the use of seven tractor-trailer rigs for a year. Under the UCC, this is __________?
a lease
Mining Co. purchases the business assets of Open Pit Inc., including its equipment and supplies for an agreed-to-price, payable in installments under the UCC, this is ________?
a sale
Embers Co. orders 12 fire extinguishers from Firefighting Inc. which delivers the equipment. This is _______?
a sale of goods