Cengage and quizes with added volcab

Question 1

Liens generally take priority over other claims against the same property

Answer 1

True

Question 2

A court awards a judgment to Loan Collection Agency, who is the creditor,
against Margret, who is the debtor. After the judgment, the creditor
requests a court order to seize Margret’s property to ensure that the
judgment will be collectible. This is

Answer 2

writ of execution

Question 3

Only a few types of property—a debtor’s wages or bank account, for
example—can be garnished.

Answer 3

False

Question 4

Contracts in which creditors discharge debtors’ debts for amounts less
than what is owed are referred to as composition agreements.

Answer 4

True

Question 5

A surety can be required to pay an obligation only after the principal
debtor defaults and usually only after the creditor has made an attempt
to collect from the debtor.

Answer 5

False

Question 6

Ridgeline Bank provides Shirley with a mortgage to buy a home. The rate
of interest is xed for three years and then adjusts annually. This is

Answer 6

an adjustable-rate mortgage

Question 7

If a homeowner defaults, or fails to make the mortgage payments, the
lender has the right to foreclose on the mortgaged property.

Answer 7

True

Question 8

Erin and Dooley, a married couple, borrow $120,000 from Capital & Credit
Bank to buy a home. When Erin and Dooley divorce, they are unable to
make payments on the mortgage. The market value of the home has
declined to less than the balance of the loan. Capital & Credit agrees to a
sale of the property for this amount. This is

Answer 8

a short sale

Question 9

Nancy joins with other creditors to force Odette, a debtor, into
bankruptcy. One of the goals of bankruptcy law with respect to creditors
is to

Answer 9

ensure equitable treatment of creditors who are competing for a
debtor’s assets.

Question 10

Roland les a petition in bankruptcy. After all his assets have been sold
and the proceeds distributed among his creditors, Roland’s remaining
debts

Answer 10

are discharged

Question 11

An involuntary bankruptcy occurs when the debtor forces his or her
creditors into bankruptcy proceedings.

Answer 11

False

Question 12

Gerald les a petition in bankruptcy. An automatic stay will apply to
actions by creditors seeking to collect Gerald’s debts comprised of

Answer 12

car payments

Question 13

The FTC is charged by Congress with the broadly stated goal of preventing
unfair and deceptive trade practices.

Answer 13

True

Question 14

A sanction known as counteradvertising requires a company to advertise
anew to inform the public about earlier misinformation.

Answer 14

True

Question 15

Advertising that contains an endorsement by a celebrity will not be
deemed deceptive.

Answer 15

False

Question 16

Puery constitutes deceptive advertising.

Answer 16

False

Question 17

Through careless manufacturing practices, Metalworks Company makes
and distributes unsafe products that are sold to Nabi and other
consumers. This may be subject to sanctions under

Answer 17

federal and state law

Question 18

Mouth & Gums, Inc. (CSI), engages in de ceptive advertising when it
markets its product Oral Rinse as able to kill germs over long periods of
time. In an action against Mouth & Gums, the rm is ordered to stop its
false advertis ing of Oral Rinse and other products. This is

Answer 18

a multiple product order

Question 19

Sweet Treats, Inc., wants to market a new snack food. On the prod uct’s la -
bel, standard nutrition facts are

Answer 19

required

Question 20

Under federal law, the calorie content of the food on a menu must be
posted by Organic Mix, LLC, if Organic Mix is

Answer 20

a restaurant chain with twenty or more locations

Question 21

The agency with the chief responsibility to prevent unsafe food and drugs
from being sold is

Answer 21

the FDA

Question 22

Tory borrows $10,000 from USA National Bank to remodel a room in her
home. This transaction is subject to

Answer 22

the Truth-in-Lending Act

Question 23

QuikPay Inc. extends credit to consumers. QuikPay is subject to the Equal
Credit Opportunity Act, which prohibits credit dis crimination based on

Answer 23

race

Question 24

Jasmine receives an unsolicited credit card in the mail and tosses it on her
desk. Without Jasmine’s permission, her roommate Ilene uses the card to
buy a new tablet for $500. Jasmine is

Answer 24

not liable for any amount

Question 25

Debt & Loan Collection Agency calls Ethel several times a day, and some - times in the middle of the night, about an overdue bill that a Furniture4U store turned over to Debt & Loan for collection. This is a violation of

Answer 25

the Fair Debt Collection Practices Act

Question 26

Kip opens an account at a Lotsa Goodies Store, and buys a digital music player and other items, but makes no payments on the account. To collect the debt, Mako, the manager, contacts Kip’s parents. This violates

Answer 26

no federal law

Question 27

what is a write of execution

Answer 27

a judicial order that a judgement be enforced

Question 28

In choosing a form of business organization for a new enterprise, important factors include the ability to raise capital

Answer 28

True

Question 29

The intent to associate is a key element of a partnership.

Answer 29

True

Question 30

The partnership is a pass-through entity and a taxpaying entity.

Answer 30

False

Question 31

A franchisee is generally legally independent of the franchisor

Answer 31

True

Question 32

Kari is the sole proprietor of Living Earth Garden Shop. As a sole proprietor, on the business’s prots, Kari pays

Answer 32

only personal income taxes

Question 33

Silvano owns Textbooks Plus, a sole proprietorship that sells textbooks and other school supplies. When Silvano dies, Textbooks Plus will automatically

Answer 33

dissolve

Question 34

Noah and Orin do business as Personnel Providers, an employment agency. In most states, for purposes of suing and being sued, Personnel Providers, which is a partnership, would be treated as

Answer 34

an entity

Question 35

Luke and Maya form Northwest Air Express, a general partnership. The essential elements of this partnership do not include

Answer 35

goodwill

Question 36

Pualani and Quentin do business as partners in Rio Vista Builders, a residential construction rm. For federal income tax purposes, Rio Vista would be treated as

Answer 36

a pass-through entity

Question 37

Paradise Footwear buys a franchise from Quadrangle Athletic Shoes Inc. This rela tionship, like all other franchise relationships, is governed by

Answer 37

contract law

Question 38

Members of limited liability companies are shielded from personal liability in many situations.

Answer 38

True

Question 39

Limited liability companies are entities apart from their owners.

Answer 39

True

Question 40

A limited liability company can be taxed as a partnership.

Answer 40

True

Question 41

A limited liability company can be held liable for any loss or injury caused by the wrongful acts or omissions of its members.

Answer 41

True

Question 42

In a limited partnership, a limited partner has full responsibility for the partnership and for all its debts.

Answer 42

False

Question 43

Bee Hive Honey, LLC’s members include Chad, Dolores, and others. For purposes of suing and being sued, Bee Hive Honey is

Answer 43

a legal entity apart from the owners

Question 44

Arnie is a member of Bowling & Billiards, LLC, a limited liability company. Arnie can participate in the rm’s management

Answer 44

to any extent

Question 45

Hillside Vineyards is a family limited liability partnership. All of the partners must be

Answer 45

natural persons or persons acting as duciaries for natural persons

Question 46

Nikki and Orlando are limited partners in Port City Exports, a lim ited part - ner ship. To avoid personal liability for partnership obligations, they must not

Answer 46

participate in the rm's management

Question 47

Buckley is a general partner in Cut-Rate Shipping, LLLP, a limited liability lim ited partnership, which cannot pay its debts. Buckley is personally li - able for the debts

Answer 47

to no extent

Question 48

One of the key advantages of the corporate form is the unlimited liability of its owners.

Answer 48

False

Question 49

Shareholders have the power to vote to elect or remove members of the board of directors.

Answer 49

True

Question 50

Dollars & Sense, Inc., is incorporated in the state of New Jersey and is doing busi ness in the state of New York. In New York, Dollars & Sense is properly referred to as

Answer 50

a foreign corporation

Question 51

The shares of Home Mortgage Corporation are publicly traded in securities mar kets. Home Mortgage Corporation is

Answer 51

a publicly held corporation

Question 52

If a corporation has S corporation status, it can avoid the imposition of income taxes at the corporate level.

Answer 52

True

Question 53

There are no important consequences if the procedures for incorporation are not followed precisely.

Answer 53

False

Question 54

The articles of incorporation serve as a primary source of authority for the corporation’s future organization and business functions.

Answer 54

True

Question 55

Lewis is a director of Mines & Reneries, Inc. Using information that is not available to the public, Lewis makes a prot trading in Mines & Reneries stock. Lewis is most likely li able for breach of

Answer 55

the duty of loyalty

Question 56

Eloise is a director for Frozen Yogurt Company. Eloise is also a director for Gelato Desserts, Inc. When the board of Frozen Yogurt considers entering into a contract with Gelato Desserts, Eloise must

Answer 56

make a full disclosure of any conict of interest

Question 57

Farrah and Grant are shareholders of Hong Kong Restaurants, Inc. As shareholders, they must approve

Answer 57

conducting a merger

Question 58

Agency relationships do not permeate the business world.

Answer 58

False

Question 59

The agent has the right to be compensated, to be reimbursed and indemnied, and to have a safe working environment

Answer 59

True

Question 60

An agent has the implied authority to do what is reasonably necessary to accomplish the objectives of the agency.

Answer 60

True

Question 61

Under the doctrine of respondeat superior, a principal may be liable for any harm that his or her agent causes to a third party.

Answer 61

True

Question 62

A principal or employer normally is not liable for an agent’s crime even if the crime was committed within the scope of authority or employment.

Answer 62

True

Question 63

Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from various sources on its behalf. In this relationship, Jewelry & Coin is

Answer 63

a principal

Question 64

California Produce Company hires Drew to work on California Produce’s shipping dock, checking outgoing loads and dispatching the company’s drivers. With respect to California Produce, Drew is most likely

Answer 64

an agent

Question 65

Sybil agrees with Tyrone and other professional athletes to sign contracts with promoters and others on the athletes’ behalf. Sybil is

Answer 65

an agent

Question 66

Ingmar asks Jessie to contract with Jessie’s high school classmates to babysit Ingmar’s new baby. Jessie orally agrees to do so. This is

Answer 66

an agency by agreement

Question 67

Lucille is married to Marcus. Lucille buys food for their children’s lunches and charges the cost to Marcus’s account. This is

Answer 67

an agency by operation of law

Question 68

Bernard is an expert on exotic owers. Custom Floral Arrangements, Inc., hires Bernard to order exotic owers for its arrangements. Bernard does not examine the quality of the owers he orders on behalf of Custom Floral. Bernard has breached

Answer 68

the duty of performance

Question 69

Home Enterprises employs Itzak to buy property for a possible residential development. Itzak secretly buys some of the property and sells it to Home Enterprises at a prot. Itzak has breached

Answer 69

the duty of loyalty

Question 70

Trucking Dispatch Company and Ucello put their agency agreement into a written document that describes the rights and duties of both parties. Ucello, as the agent, has

Answer 70

express authority

Question 71

Garry drives a truck as an employee for Heavy Hauling, Inc. Garry would most likely be considered acting outside the scope of his employment if he

Answer 71

crashed into a car at the airport while o duty.

Question 72

Bayou Development Corporation hires Coastal Brokerage Associates to sell the condominiums in a building at Bayou Development’s resort. The agency will terminate

Answer 72

after the condos have been sold

Question 73

Generally, under employment-at-will doctrine, an employer may re an employee even if doing so would violate a federal or state statute.

Answer 73

False

Question 74

Febo is an employee of Guitar & Drum Company. Guitar & Drum’s employee manual states that workers, such as Febo, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is

Answer 74

an exception based on contract theory

Question 75

Certain employees are exempt from federal overtime provisions

Answer 75

True

Question 76

An employer can voluntarily pay overtime to ineligible employees.

Answer 76

True

Question 77

Certain employers must provide advance notice of a layo to the aected workers.

Answer 77

True

Question 78

Hauser takes temporary family leave from his job at Gelato Confectionary Corporation to care for a new baby. On Hauser’s return from the leave, Gelato must

Answer 78

restore Hauser to his original position

Question 79

Livia takes temporary family leave from her job at Meatpackers Corporation to care for a new baby. On Livia’s return from the leave, Meatpackers must

Answer 79

restore Livia to her original position

Question 80

Employers have a general duty to keep workplaces safe.

Answer 80

True

Question 81

To recover workers’ compensation, an employee must prove that an injury did not occur on the job or in the course of employment.

Answer 81

False

Question 82

Like Social Security, Medicare is funded by contributions from the employer and the employee

Answer 82

True

Question 83

Employers are required to establish retirement plans for their employees.

Answer 83

False

Question 84

Most employers with fty or more employees are required to oer healthinsurance benets.

Answer 84

True

Question 85

Investment Sales Corporation wants to monitor its employees’ electronic com munications. Investment Sales’s best course of action to avoid liability under laws related to employee monitor ing is to notify

Answer 85

its employees

Question 86

Data & Data Accountants, a private employer, handles bookkeeping for small employers. In most circumstances, with exceptions, federal law clearly pro hibits Data & Data from subjecting its employees to

Answer 86

lie-detector tests

Question 87

Neville, a member of a protected class, applies for a job with Origami Paper Products Corporation, but fails the company’s employment test and is not hired. Neville believes that the test has an unintentionally discriminatory eect. If so, this is

Answer 87

disparate-impact discrimination

Question 88

Insurance Sales Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is

Answer 88

reverse discrimination

Question 89

Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner announces that some em ployees will be discharged. Ruta tells Tim that for sexual favors she will give him an excellent performance review and recommend a raise. This is

Answer 89

quid pro quo harassment

Question 90

Conrad and Delilah are employees of EcoCrop Feed & Seed Corporation. Under the Equal Pay Act of 1963, EcoCrop can legitimately pay dierent wages on the basis of

Answer 90

seniority

Question 91

Elsa participates in an investigation into possible violations of the Civil Rights Act of 1964 at Fabrication Foundry, Inc., where she works. As a result, Elsa’s employer demotes her. Elsa can le a

Answer 91

retaliation claim

Question 92

Boni, the owner of Café Rico, knows about, but does not take any action to prevent, the sexual harassment of employees. Boni and the café may be liable for such harassment by

Answer 92

a customer or a co-worker

Question 93

Kyla replaces Lomax in his job at Motor Vehicle Manufacturing Corporation (MVMC). Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply

Answer 93

Lomax must be forty years of age or older

Question 94

Helene, a disabled person, applies for a job at Industrial Engineering Applications Inc. for which she is well quali ed, but for which she is rejected. Industrial Engineering continues to seek applicants and eventually lls the posi tion with a person who is not disabled. Helene is most likely to succeed in a suit against Industrial Engineering for discrimination under the Americans with Disabilities Act of 1990 if she can show that

Answer 94

she was not hired solely because of her disability

Question 95

Merlin is a drug addict who has completed a supervised drugrehabilitation program. Nabil used drugs casually in the past. Both work for Omni Insurance & Investments Inc. Considered to have a disability under the Americans with Disabilities Act of 1990

Answer 95

is Merlin only

Question 96

Lumber Mill Inc. is a private employer with more than twenty employees. Its employment practices do not indicate a past pattern of discrimination. It is located in Metro City, which has recently seen an increase in the number of its citizens who are members of protected classes. Under the Civil Rights Act of 1964, Lumber Mill is

Answer 96

not required to implement an armative action policy