ETH 321 Week 4 Quiz

Complete the Week Four Quiz to be posted by the Instructor at the begining of Week Four. The quiz will incude week three and four topics. There are 20 multiple choice questions. Use the attached Quiz Answer Sheet to record your answers. Please be sure to include your name on the Answer Sheet.

Click the Assignment Files tab to submit your assignment.

1. A(n) ______ contains a specific promise and a specific demand.

1. consideration
2. revocation
3. offer
4. capacity
5. exculpation

2. Mayra offers to sell her home to Hanna for “about $100,000 plus closing costs.” Hanna accepts Mayra’s offer. Later, a dispute arises over the precise dollar amount of the purchase price. How will a court most likely resolve this dispute?

1. The court will determine a reasonable price to be paid by Hanna.
2. The court will determine that Hanna pay only the figures mentioned in the contract.
3. The court will appoint a licensed real estate appraiser to determine the price to be paid by Hanna.
4. The court will require Hanna to pay the average of her price and Mayra’s price.
5. The court will declare the purchase price and terms too indefinite to create a binding contract.

3. In which of the following cases does the legal power of the offeree to bind the offeror end?

1. When the offeree accepts the offer
2. When the offeror is declared insane before acceptance of the offer by the offeree
3. When the subject matter of the contract is destroyed after the acceptance of the offer
4. When the offeror accepts the counteroffer
5. When the offeror attempts to retract the offer after its acceptance by the offeree

4. If there is evidence that a word used in a contract has a particular trade usage, courts will
5. give it that meaning.
6. ask the contracting parties to remove that word from the contract.
7. ask the contracting parties to add it as a comment to the contract.
8. ask the contracting parties to add it to the nolo contendere section of the contract.
9. replace the word with its legal equivalent.

5. Which of the following statements is true of a situation in which a party to a contract substantially performs its obligations to the contract?

1. The contract is said to be materially breached.
2. The party will be entitled to full recovery under the contract.
3. The contract immediately becomes void.
4. The party may be entitled to a partial recovery under the contract.
5. The party’s performance is said to be as good as completed.

6. Frank is the fresh produce supplier to Green Valley, an upscale restaurant. He provides the restaurant with imported meat for which he is paid $1,500 per day. One day, Frank fails to deliver the meat due to personal reasons. This causes the restaurant to order from a neighboring city for $2,500. The delay in shipment results in a foreseeable loss of $1,500 in revenue for Green Valley. If Green Valley decides to sue Frank for damages, the court is most likely to award Green Valley with damages in the amount of ______.

1. $1,000
2. $4,000
3. $2,500
4. $8,000
5. $5,500

7. Which of the following organizations is equally managed by the members unless a manager is designated?

1. partnership
2. corporation
3. limited liability company
4. sole proprietorship
5. S corporation

8. When courts find that a corporate organization is being misused, the corporate entity can be disregarded. This has been called

1. cracking the corporate shell.
2. piercing the corporate veil.
3. breaking the corporate shield.
4. breaching the corporate defense.
5. rupturing the corporate law.

9. Which of the following is a disadvantage of partnerships?
10. They have a high cost of formation.
11. They are tax-paying entities.
12. They are subject to more governmental supervision than corporations.
13. They need to obtain a license if they wish to operate in more than one state.
14. They will be dissolved any time a partner leaves the partnership.

10. Which of the following is an advantage of a sole proprietorship?

1. A sole proprietor is personally obligated for the debt of the proprietorship.
2. A sole proprietorship is not taxed as an organization.
3. In a sole proprietorship, liability is shared with many partners.
4. A sole proprietorship is the least expensive business organization to create.
5. A sole proprietorship’s business activity may be more stable than the proprietor’s willingness to remain actively involved in the business.

11. The ______ power of administrative agencies is primarily to decide on controversies.

1. executive
2. judicial
3. legislative
4. arbitrary
5. preliminary

12. Which of the following functions allows an agency to gather and compile information concerning the organization and business practices of any corporation or industry engaged in commerce to determine whether there has been a violation of any law?

1. adjudicating
2. advising
3. rule making
4. investigating
5. policy making

13. Which of the following statements is true of the executive branch of a government?

1. It has no control over the administrative process of an agency.
2. It normally appoints the top officials of an agency with the advice and consent of the legislative branch.
3. It is denied veto power over the statues of the legislatures.
4. It is excluded from making any budget recommendations to the legislative branch.
5. It enacts and creates specific legislations adopted by administrative agencies.

14. A prospectus is filed during the

1. prefiling period.
2. waiting period.
3. pre-effective period.
4. posteffective period.
5. elimination period.

15. According to the Securities Act of 1933, which of the following is illegal during the waiting period?

1. Soliciting buyers for a company’s securities
2. Receiving offers to buy a company’s securities
3. Selling securities subject to the act
4. Soliciting through the use of a summary prospectus
5. Soliciting offers for later acceptance

16. Prohibitions against insiders from engaging in short-swing profits are enforced by the

1. Securities and Exchange Commission (SEC).
2. Federal Trade Commission (FTC).
3. Federal Reserve.
4. issuer of the security or by a person who owns a security of the issuer.
5. executive officers, accounting officers, and chief financial officers.

17. An environmental impact statement

1. must include available alternatives to the proposed action.
2. must include economic profits that can be guaranteed from the organization’s action.
3. must include a statement of any reversible use of resources.
4. must include technical jargon for better understanding of the statement.
5. must be included in most recommendations or reports on proposals for legislation affecting the environment.

18. Which of the following statements is true of the National Environmental Policy Act?

1. It establishes a single piece of legislation that comprehensively controls radiation pollution.
2. It imposes specific duties on all state agencies, but not on federal agencies.
3. It ensures that the Clean Air Act and the Clean Water Act do not contain provisions related to government suits to recover costs for the cleanup of toxic chemicals.
4. It promotes the understanding of the ecological systems important to the United States.
5. It demands that all state agencies prepare an environmental impact statement prior to taking certain actions.

19. Under the Superfund law, a purchaser of land may escape the liability to clean up hazardous wastes by
20. fixing responsibility on the previous owner of the land.
21. suing the land seller for the hazardous wastes left by the seller.
22. informing the government of any hazardous wastes in the land.
23. pleading ignorance to the knowledge of the act.
24. proving the use of due diligence in checking the land for toxic hazards.

20. If a bank assumes ownership of a piece of contaminated land

1. the previous owner will be solely responsible for the cleanup.
2. the bank can re-sell the property without any liability for cleanup.
3. the bank becomes a responsible party.
4. the bank is withheld from selling the land due to its contaminated status.
5. the future owner will be solely responsible for the cleanup upon its sale to the future owner.