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Chapter: 7 -Problem: 2 >> How can business leaders encourage their companies to act ethically?
Answer Preview: There are a number of things that business leaders can do to encourage their co…

, Chapter: 26 -Problem: 3 >> Does the Truth-in-Lending Act (TILA) apply to all mortgages? How do the TILA provisions protect borrowers and curb abusive practices by mortgage lenders?
Answer Preview: 1. Does the Truth-in-Lending Act (TILA) apply to all mortgages? The Truth-in-Lending Act (TILA) does …

, Chapter: 23 -Problem: 4 >> What rights does a secured creditor have on the debtor’s default?
Answer Preview: A secured creditor has the right to …

, Chapter: 24 -Problem: 2 >> Autolign Manufacturing Group, Inc., borrowed funds from Wamco 34, Ltd., to operate its auto parts business. The loan was secured by the molds that were used to form the parts. Autolign contracted with Delta Engineered Plastics, LLC, to make the parts and provided Delta with the molds. When Autolign defaulted on its obligations to Wamco and Delta, Delta asserted a “molder’s lien” against the molds
Answer Preview: Delta Engine ered Pl astics , LLC v . Aut ol ign Manufacturing Group , Inc ., 286 Mich . App . 115 , …

, Chapter: 25 -Problem: 4 >> In a Chapter 11 reorganization, what is the role of the debtor in possession?
Answer Preview: A debtor in possession ( D IP ) is a party ( usually a corporation ) that has filed for bankruptcy and is still in possession of its assets . The debt…

, Chapter: 17 -Problem: 4 >> Bath Iron Works (BIW) offered a job to Thomas Devine, contingent on Devine’s passing a drug test. The testing was conducted by NorDx, a subcontractor of Roche Biomedical Laboratories. After NorDx found that Devine’s urinalysis showed the presence of opiates, a result confirmed by Roche, BIW refused to offer Devine permanent employment. Devine sued Roche, claiming that he had tested positive for op
Answer Preview: 1. Is Devine an intended third party beneficiary of the contract …

, Chapter: 4 -Problem: 1 >> Although there are more claims for breach of contract than for anyother category of lawsuits, the dollar amount of damages awarded in tort actions is typically much higher than the awards  in contract claims. Tort claims are also commonplace for businesses. Because of the potential for large damages awards for intentional and unintentional acts, businesspersons should take preventive measures to a
Answer Preview: 1 . Const antly inspect the premises and look for areas where customers or employees might trip , slide , or fall . Take corrective action whenever yo…

, Chapter: 7 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 7 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: Women are born with two to three times as many oocytes (1 to 2 million) as they will have at the end of their reproductive years. Men also produce ger…

, Chapter: 6 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 6 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: The individual practice questions were generated randomly and with varying levels of difficulty. Exe…

, Chapter: 2 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 1 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: When an agent does more than he authirized to do and …

, Chapter: 32 -Problem: 4 >> What advantages do limited liability partnerships offer to business persons that are not offered by general partnerships?
Answer Preview: A limited liability partnership ( LL P ) is a business structure in which partners have limited pers…

, Chapter: 18 -Problem: 4 >> At what point does the buyer acquire an insurable interest in goods subject to a sales contract? Can both the buyer and the seller have an insurable interest in the goods simultaneously?
Answer Preview: 1. At what point does the buyer acquire an insurable interest in goods subject to a sales cont…

, Chapter: 36 -Problem: 2 >> ABC Corporation combines with DEF, Inc. ABC ceases to exist. DEF is the surviving firm. Global Corporation and Hometown Company combine. Afterward, Global and Hometown cease to exist. GH, Inc., a new firm, functions in their place. Which of these combinations is a merger and which is a consolidation?
Answer Preview: The first combination is a merger , while the second is a consolidation . In a merger , two co…

, Chapter: 33 -Problem: 1 >> John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent of the profits, in accordance with his contribution. Lesa and Trevor, however, assume that the profits will be divided equally. A dispute over th
Answer Preview: 1. What law will the court apply The court will apply the law of …

, Chapter: 15 -Problem: 2 >> What is the difference between compensatory damages and consequential damages? What are nominal damages, and when do courts award nominal damages?
Answer Preview: 1. What is the difference between compensatory damages and conseque…

, Chapter: 31 -Problem: 3 >> What laws govern a franchising relationship?
Answer Preview: F ranch ising is governed by a variety of state and federal laws . These laws are designed to protec…

, Chapter: 3 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 3 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: The Boston study of women at risk for heart disease found benefit and no harm to the addition of soy …

, Chapter: 4 -Problem: 4 >> Identify the four elements of negligence.
Answer Preview: 1 . The existence of a duty of care …

, Chapter: 26 -Problem: 4 >> What is a short sale? What advantages over mortgage foreclosure might it offer borrowers?
Answer Preview: 1. What is a short sale? A short sale is a real estate transaction for the purchase of a home before …

, Chapter: 43 -Problem: 8 >> The Wallen family owned a cabin on Lummi Island in the state of Washington. A driveway ran from the cabin across their property to South Nugent Road. Floyd Massey bought the adjacent lot and built a cabin on it in 1980. To gain access to his property, Massey used a bulldozer to extend the driveway, without the Wallens’ permission but also without their objection. In 2005, the Wallens sold their pr
Answer Preview: 1 . To establish an eas ement by prescription , a claimant must show that his or her use of the prop…

, Chapter: 17 -Problem: 3 >> Inez has a specific set of plans to build a sailboat. The plans are detailed in nature, and any boat builder can build the boat. Inez secures bids, and the low bid is made by the Whale of a Boat Corp. Inez contracts with Whale to build the boat for $4,000. Whale then receives unexpected business from elsewhere. To meet the delivery date in the contract with Inez, Whale delegates its obligation to
Answer Preview: The delegation built the boat according to Inez's specifications, therefore s…

, Chapter: 42 -Problem: 5 >> What are the basic rights and duties of a bailee? What are the rights and duties of a bailor?
Answer Preview: 1 . The basic rights and duties of a ba ilee are to take re…

, Chapter: 21 -Problem: 3 >> Can a manufacturer be held liable to any person who suffers an injury proximately caused by the manufacturer’s negligently made product?
Answer Preview: Yes , a manufacturer can be held liable to any person who suffers an injury prox imately caused by t…

, Chapter: 44 -Problem: 5 >> What are the four essential elements of a trust? What is the difference between an express trust and an implied trust?
Answer Preview: 1 . The four essential elements of a trust are : ( 1 ) the sett lor , or creator of the trust ; ( 2 …

, Chapter: 9 -Problem: 3 >> What are the elements that are necessary for an effective acceptance?
Answer Preview: There are many elements that are necessary for an effective acceptance . First , …

, Chapter: 23 -Problem: 1 >> What three requirements must be met to create an enforceable security interest?
Answer Preview: To create an enforce able security interest , three req…

, Chapter: 1 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 2 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: 1. The term in this chapter for one of the four basic cognitive processes is perception. Perception …

, Chapter: 44 -Problem: 3 >> What are the basic requirements for executing a will?
Answer Preview: The will must be in writing , …

, Chapter: 13 -Problem: 5 >> What is parol evidence? When is it admissible to clarify the terms of a written contract?
Answer Preview: 1. What is parol evidence? Parol evidence is evidence of pri…

, Chapter: 37 -Problem: 1 >> What is meant by the term securities?
Answer Preview: A security is a trad able asset of any kind . Financial securities are broadly categorized into debt …

, Chapter: 3 -Problem: 1 >> Inadvertently or intentionally, wrongs are committed every day in the United States. Sometimes, businesspersons believe that wrongs have been committed against them by other businesspersons, by consumers, or by the government. If you are deciding whether to sue for a wrong committed against you or your business, you must consider many issues.The Question of Cost Competent legal advice is not inexp
Answer Preview: 1 . The cost of going to court can be a significant barrier to seeking redress for a wrong . However …

, Chapter: 35 -Problem: 5 >> If a group of shareholders perceives that the corporation has suffered a wrong and the directors refuse to take action, can the shareholders compel the directors to act? If so, how?
Answer Preview: The shareholders of a corporation can compel the directors to take action if they pe…

, Chapter: 17 -Problem: 9 >> If intended third party beneficiaries could not sue the promisor directly to enforce a contract, what would their legal remedy be?
Answer Preview: If intended third party beneficiaries could not sue the prom is or direc…

, Chapter: 33 -Problem: 5 >> What are the essential characteristics of joint stock companies, syndicates, business trusts, and cooperatives, respectively?
Answer Preview: There are several key characteristics that distinguish joint stock companies from other types of bus…

, Chapter: 15 -Problem: 1 >> What is the standard measure of compensatory damages when a contract is breached? How are damages computed differently in construction contracts?
Answer Preview: 1. What is the standard measure of compensatory damages when a contract is breached? The standard me…

, Chapter: 31 -Problem: 4 >> What terms and conditions are typically included in a franchise contract?
Answer Preview: The terms and conditions of a franchise contract can vary depending on the franch is or and the type …

, Chapter: 25 -Problem: 1 >> What procedure does a debtor follow in a voluntary bankrupty?
Answer Preview: There are a few things that a debtor must do in order to file for a voluntary …

, Chapter: 32 -Problem: 1 >> What are the three essential elements of a partnership?
Answer Preview: There are three essential elements to any partnership : trust , communication , a…

, Chapter: 5 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 5 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: One day, I decided to observe a class in a junior high school in South Korea. The purpose of my visi…

, Chapter: 43 -Problem: 5 >> What are the respective duties of the landlord and the tenant concerning the use and maintenance of leased property?
Answer Preview: The landlord and tenant each have certain duties and responsibilities when it comes to the care and …

, Chapter: 1 -Problem: 1 >> Most businesses, institutions, and organizations gather information from and about their customers, constituents, or members. Many businesses also want information about potential customers and may obtain names from a mailing list of some other business ororganization. Unless the owner of the list has a privacy policy that prohibits the sharing of certain information without the  person’s consent,
Answer Preview: 1 . Every company should have a privacy policy in order to protect the information of their customer…

, Chapter: 33 -Problem: 3 >> What are the two options for managing limited liability companies?
Answer Preview: There are two options for managing limited liability companies …

, Chapter: 14 -Problem: 1 >> In the United States, when a party alleges that contract performance is impossible or impracticable because of circumstances unforeseen at the time the contract was formed, a court will either discharge the party’s contractual obligations or hold the party to the contract. If the court agrees that the contract is impossible or impracticable to perform, the remedy is to rescind (cancel) the contrac
Answer Preview: There are a few factors to consider when deciding whether resc ission or re formation is the preferred remedy in the event that a contract becomes imp…

, Chapter: 42 -Problem: 5 >> Vincent Slavin was a partner at Cantor Fitzgerald Securities in the World Trade Center (WTC) in New York City.In 1998, Slavin and Anna Baez became engaged and began living together. They placed both of their names on three accounts at Chase Manhattan Bank according to the bank’s terms, which provided that “accounts with multiple owners are joint, payable to either owner or the survivor.” Slavin ar
Answer Preview: 1. In what form of ownership were the accounts held? The accounts were held in join…

, Chapter: 30 -Problem: 8 >> Why has the federal government limited the application of the statutes discussed in this chapter to firms with a specified number of employees, such as fifteen or twenty? Should these laws apply to all employers, regardless of size? Why or why not?
Answer Preview: 1. Why has the federal government limited the application of the statutes discussed in this chapter …

, Chapter: 21 -Problem: 3 >> As a businessperson (and as a consumer), you will certainly be writing and receiving checks. Both activities can involve pitfalls. Checks Drawn in Blank The danger in signing a blank check is clear. Anyone can write in an unauthorized amount and cash the check. Although you may be able to assert lack of authorization against the person who filled in the check, subsequent holders of the properly in
Answer Preview: 1 . A good rule of thumb is never to sign a blank check . This is because doing so leaves the check …

, Chapter: 43 -Problem: 4 >> What is a leasehold estate? What types of leasehold estates, or tenancies, can be created when real property is leased?
Answer Preview: 1 . A lease hold estate is an interest in land that is leased for a certain period of time . …

, Chapter: 14 -Problem: 3 >> When is a breach considered material, and what effect does that have on the other party’s obligation to perform?
Answer Preview: A breach of contract is considered material when it results in a loss of val…

, Chapter: 36 -Problem: 2 >> Under what circumstances is a corporation that purchases the assets of another corporation responsible for the liabilities of the selling corporation?
Answer Preview: A corporation that purchases the assets of another cor…

, Chapter: 13 -Problem: 4 >> If a written contract is required, what terms must it contain?
Answer Preview: A written contract is only required if the parties agree to it . If they do ag…

, Chapter: 44 -Problem: 4 >> What is the difference between a per stirpes distribution and a per capita distribution of an estate to the grandchildren of the deceased?
Answer Preview: A per stir pes distribution of an estate to the grandchildr…

, Chapter: 26 -Problem: 1 >> What is a subprime mortgage? How does it differ from a standard fixed-rate mortgage?
Answer Preview: 1. What is a subprime mortgage? A subprime mortgage is a type of mortgage loan that is available to …

, Chapter: 35 -Problem: 4 >> From what sources may dividends be paid legally? In what circumstances is a dividend illegal? What happens if a dividend is illegally paid?
Answer Preview: 1. From what sources may dividends be paid legally? Dividends may be paid from a compan…

, Chapter: 18 -Problem: 3 >> Under what circumstances is a seller’s title to goods being sold void? When does a seller have voidable title?
Answer Preview: 1. Under what circumstances is a sellers title to goods being sold …

, Chapter: 38 -Problem: 5 >> How do administrative agencies enforce their rules?
Answer Preview: There are a few different ways that administrative agencies can enforce their rules . One way is thr…

, Chapter: 1 -Problem: 4 >> The Russ College of Engineering and Technology of Ohio University announced in a press conference that it had found “rampant and flagrant plagiarism” in the theses of mechanical engineering graduate students. Faculty singled out for “ignoring their ethical responsibilities” included Jay Gunasekera, chair of the department. Gunasekera was prohibited from advising students. He filed a suit against D
Answer Preview: Due process in these circumstances would require t…

, Chapter: 38 -Problem: 4 >> What sequence of events must normally occur before an agency rule becomes law?
Answer Preview: There are a few different ways that an agency rule can become law . The most common way is for an ag…

, Chapter: 2 -Problem: 5 >> Assume that you want to read the court’s entire opinion in the case of McKee v. Laurion, 825 N.W.2d 725 (2013). Read the section entitled “Finding Case Law” in the appendix that follows this chapter, and then explain specifically where you would find the court’s opinion.
Answer Preview: The court s opinion in the case of McK ee v . Laur ion can be found in a v…

, Chapter: 32 -Problem: 2 >> What are the rights and duties of partners in an ordinary partnership?
Answer Preview: The rights and duties of partners in an ordinary partnership vary depending on the jurisdict…

, Chapter: 17 -Problem: 3 >> In what situations is the delegation of duties prohibited?
Answer Preview: The delegation of duties is prohibited in certain situations where it would be unsafe or …

, Chapter: 40 -Problem: 3 >> Under what common law theories can polluters be held liable?
Answer Preview: The common law theories under which poll uters can be held liable are negligence , strict liability …

, Chapter: 26 -Problem: 5 >> Roderick and Linda Sharpe borrowed $51,300 secured by a mortgage on their home. About six years later, with more than $68,000 needed to pay off the mortgage, the Sharpes defaulted. The mortgage holder, Wells Fargo Home Mortgage, foreclosed on the property. Immediately before and after the foreclosure sale, Wells Fargo obtained two separate real estate brokers’ opinions as to the property’s fair ma
Answer Preview: The sale price of the property was fair , based on the t…

, Chapter: 26 -Problem: 3 >> In 2011, Frank relocates and purchases a five-year-old house for $450,000. He pays $90,000 as a down payment and finances the remaining $360,000 of the purchase price with a loan from Bank of Town. Frank signs mortgage paperwork, giving Bank of Town a mortgage interest in the home. Frank pays on the loan for three years. At that point, the housing market has declined significantly. Frank’s home is
Answer Preview: Bank of Town s options in this situation are to fore close on the property or to work with Fran…

, Chapter: 8 -Problem: 1 >> What is a contract? What is the objective theory of contracts?
Answer Preview: 1 What is a contract? A contract is a legally binding agreement between two or more parties. A contr…

, Chapter: 25 -Problem: 2 >> What is a trustee? What does a trustee do?
Answer Preview: 1 What is a trustee? A trustee is an individual or organization that mana…

, Chapter: 41 -Problem: 3 >> How might an accountant violate federal securities laws?
Answer Preview: There are a few ways that an accountant could violate …

, Chapter: 5 -Problem: 4 >> What laws protect authors’ rights in the works they create?
Answer Preview: There are a variety of laws that protect authors rights in the works they create . The most important of these is copyright law , which gives authors …

, Chapter: 41 -Problem: 2 >> What are the rules concerning an auditor’s liability to third parties?
Answer Preview: There are a number of rules and regulations governing an auditor 's liability to third parties . The…

, Chapter: 34 -Problem: 1 >> What is a close corporation?
Answer Preview: A close corporation is a business entity that is not required to have more …

, Chapter: 11 -Problem: 1 >> Sales personnel, particularly those who are paid on a commission basis, are often eager to make contracts. Sometimes, these salespersons must deal with minors and intoxicated persons, both of whom have limited contractual capacity. If you are a retailer, you should make sure that your employees are acquainted with the law governing contracts with minors and intoxicated persons.Contracts with Minor
Answer Preview: 1 . When in doubt about the age of a customer , it is important …

, Chapter: 38 -Problem: 1 >> How are federal administrative agencies created?
Answer Preview: The process for creating a federal administrative agency varies depending on the pa…

, Chapter: 34 -Problem: 3 >> What is the difference between a de jure corporation and a de facto corporation?
Answer Preview: A de j ure corporation is one that has been legally …

, Chapter: 18 -Problem: 1 >> What is the significance of identifying goods to a contract?
Answer Preview: When two or more parties agree to purchase or sell goods , they must identify the specific items tha…

, Chapter: 36 -Problem: 4 >> What are the two ways in which a corporation can be voluntarily dissolved?
Answer Preview: There are two ways in which a corporation can be voluntarily dissolved : by u…

, Chapter: 26 -Problem: 1 >> Ruth Ann borrows $175,000 from Sunny Valley Bank to buy a home. What are the major terms of the mortgage that must be disclosed in the writing under the Truth-in-Lending Act?
Answer Preview: The major terms of the mortgage that …

, Chapter: 4 -Problem: 10 >> Assume that your business partner, Gayanne Zokhrabov, was at the train station when a train, traveling at more than 70 mph, hit eighteen-year-old Hiroyuki Joho, who was running across the tracks. The impact killed Joho and flung parts of his body about 100 feet into the air. Some of them landed on Gayanne and knocked her to the ground. As a result, she hurt her shoulder and broke her leg and wrist
Answer Preview: 1 . One group should analyze whether Joh o had a duty to Gay anne and whether his decision to run in front of the train was a breach of that duty beca…

, Chapter: 30 -Problem: 5 >> What are three defenses to claims of employment discrimination
Answer Preview: There are a few defenses to claims of employment discrimination . The first is if t…

, Chapter: 34 -Problem: 5 >> What is the difference between stocks and bonds?
Answer Preview: A stock is a financial instrument that r…

, Chapter: 33 -Problem: 4 >> What is a joint venture? How is it similar to a partnership? How is it different?
Answer Preview: A joint venture is a strategic alliance between two or more businesses in which each company agrees …

, Chapter: 15 -Problem: 2 >> Lyle contracts to sell his ranch to Marley, who is to take possession on June 1. Lyle delays the transfer until August 1. Marley incurs expenses in providing for cattle that he bought for the ranch. When they made the contract, Lyle had no reason to know of the cattle. Is Lyle liable for Marley’s expenses in providing for the cattle? Why or why not?
Answer Preview: L yle is not liable for Mar ley 's expenses in providing for the cattle because L yle did not kn…

, Chapter: 36 -Problem: 1 >> Interstate Corporation asks its shareholders to vote on a proposed merger with Regional, Inc. Jill, an Interstate shareholder, votes against it but is outvoted by the other shareholders. Is there anything Jill can do to avoid being forced to go along with the transaction? Why or why not?
Answer Preview: Yes; Jill can avoid being forced to go along with the transacti…

, Chapter: 41 -Problem: 4 >> What crimes might an accountant commit under the Internal Revenue Code?
Answer Preview: There are a number of potential crimes that an accountant could commit under the Internal Reve…

, Chapter: 6 -Problem: 1 >> Each year, conventional, old-fashioned crooks rob banks to the tune of about $50 million. In contrast, every year cybercrooks steal billions of dollars from the bank accounts of small and mid-size companies in Europe and the United States. Why? The reason is that small businesses tend to be lax in protecting themselves from hackers. They keep their accounts in community or regional banks, have onl
Answer Preview: 1 . Meet with your bank managers and discuss what you can do to protect your company s bank accounts . It is important to have a discussion with your …

, Chapter: 21 -Problem: 2 >> Real Chocolate Company makes a box of candy, which it sells to Sweet Things, Inc., a distributor. Sweet sells the box to a Tasty Candy store, where Jill buys it. Jill gives it to Ken, who breaks a tooth on a stone the same size and color as a piece of the candy. If Real, Sweet, and Tasty were not negligent, can they be liable for the injury? Why or why not?
Answer Preview: No , they cannot be liable for the injury . The stone was the sam…

, Chapter: 37 -Problem: 3 >> What is insider trading? Why is it prohibited?
Answer Preview: 1. What is insider trading ? Ins ider trading refers to the buying or selling of a security by someo…

, Chapter: 30 -Problem: 3 >> What remedies are available under Title VII of the 1964 Civil Rights Act, as amended?
Answer Preview: The remedies available under Title VII of the 1964 Civil Rig…

, Chapter: 42 -Problem: 1 >> What is real property? What is personal property?
Answer Preview: 1 . Real property is land and anything perm…

, Chapter: 31 -Problem: 2 >> Thirsty Bottling Company and U.S. Beverages, Inc. (USB), enter into a franchise agreement that states that the franchise may be terminated at any time “for cause.” Thirsty fails to meet USB’s specified sales quota. Does this constitute “cause” for termination? Why or why not?
Answer Preview: No , this does not constit…

, Chapter: 38 -Problem: 8 >> Every year, Michael Manin, an airline pilot and flight instructor, had to renew his firstclass airman medical certificate, which showed that he had met medical standards for aircraft operation. The application for renewal included questions regarding criminal history, including non-traffic misdemeanors. Manin had been convicted of disorderly conduct, a minor misdemeanor, in 1995 and again in 1997,
Answer Preview: 1. How should the court rule? The court should rule in favor of …

, Chapter: 32 -Problem: 3 >> What is meant by joint and several liability? Why is this often considered to be a disadvantage of the partnership form of business?
Answer Preview: J oint and several liability is a legal term that refers to the liability of two or more people fo…

, Chapter: 24 -Problem: 3 >> What is a suretyship, and how does it differ from a guaranty?
Answer Preview: A sure ty ship is a contract in which one party , the s…

, Chapter: 27 -Problem: 4 >> What are three clauses commonly included in international business contracts?
Answer Preview: 1 . Choice of law : This clause determines which country 's laws will g…

, Chapter: 15 -Problem: 1 >> Not every contract can be performed. If you are a contractor, you may take on a job that, for one reason or another, you cannot or do not wish to perform. Simply walking away from the job and hoping for the best normally is not the most effective way to avoid litigation—which can be costly, time consuming, and emotionally draining. Instead, you should consider various options that may reduce the l
Answer Preview: 1 . A compromise is an agreement between two or more parties to settle a dispute or conflict . In th…

, Chapter: 36 -Problem: 3 >> What actions might a target corporation take to resist a takeover attempt?
Answer Preview: There are many actions a target corporation might take to resist a takeover attempt . Some common de…

, Chapter: 2 -Problem: 2 >> Arthur Rabe is suing Xavier Sanchez for breaching a contract in which Sanchez promised to sell Rabe a Van Gogh painting for $150,000. (See page 11.)1. In this lawsuit, who is the plaintiff, and who is the defendant?2. If Rabe wants Sanchez to perform the contract as promised, what remedy should Rabe seek?3. Suppose that Rabe wants to cancel the contract because Sanchez fraudulently misrepresented
Answer Preview: 1 . In this lawsuit , Arthur R abe is the plaintiff , and Xavier Sanchez is the defendant . 2 . If R …

, Chapter: 13 -Problem: 3 >> When will an oral promise to pay another person’s debt be enforced?
Answer Preview: The answer to this question depends on a number of factors , including the jurisdiction in which the …

, Chapter: 24 -Problem: 4 >> What is the homestead exemption, and how does it work?
Answer Preview: The hom estead exemption is a tax break that allows homeow…

, Chapter: 14 -Problem: 1 >> What is a condition precedent, and how does it affect a party’s duty to perform a contract?
Answer Preview: A condition precedent is a condition that must be met before a pa…

, Chapter: 17 -Problem: 2 >> What rights can be assigned despite a contract clause expressly prohibiting assignment?
Answer Preview: The general rule is that a contract clause prohibiting assignment will be given effect , and that an…

, Chapter: 18 -Problem: 3 >> Julian Makepeace, who had been declared mentally incompetent by a court, sold his diamond ring to Golding for value. Golding later sold the ring to Carmichael for value. Neither Golding nor Carmichael knew that Makepeace had been adjudged mentally incompetent by a court. Farrel, who had been appointed as Makepeace’s guardian, subsequently learned that the diamond ring was in Carmichael’s possessio
Answer Preview: The legal ownership of the ring is with Carm ichael . This is because , when Ma…

, Chapter: 39 -Problem: 5 >> What agencies of the federal government enforce the federal antitrust laws?
Answer Preview: The Federal Trade Commission ( F TC ) is the primary federal …

, Chapter: 9 -Problem: 1 >> As noted in this chapter, increasingly the contracting process is moving online. Large and small e-commerce Web sites offer to sell millions of goods and services. The vast amount of data collected from online shoppers has pushed customer relationship management (CRM) to the fore. CRM is a marketing strategy that allows companies to acquire information about customers’ wants, needs, and behaviors.
Answer Preview: Yes, online companies might face privacy issues when creating databases for generalized mar…

, Chapter: 34 -Problem: 8 >> If you had started a business, under what circumstances would you be willing to give up a substantial percentage of its ownership to obtain venture capital financing?
Answer Preview: There are a few circumstances in which I would be willing to give up a substantial percentage of own…

, Chapter: 12 -Problem: 3 >> What are the differences between misrepresentation of fact and misrepresentation of law?
Answer Preview: There are several key differences between misrepresent ation of fact and misrepresent ation of law . …

, Chapter: 38 -Problem: 10 >> Does Congress delegate too much power to federal administrative agencies? Do the courts defer too much to Congress in its grant of power to those agencies? What are the alternatives to the agencies that we encounter in every facet of our lives?
Answer Preview: Part a Congress has delegated too much power to federal administrative agencies. In the past, the Supreme Court has said that Congress cannot delegate …

, Chapter: 41 -Problem: 2 >> In early 2014, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of the company. On receiving Bennett’s prospectus, Helms was dismayed by the pessimism it embodied, so he decided to delay purchasing stock in the company.Later, Helms asserted that the prospectus prepare
Answer Preview: In order to successfully bring a suit under Rule 10 b 5 against Bennett 's account ants , Hel ms wou…

, Chapter: 5 -Problem: 2 >> Eagle Corporation began marketing software in 2001 under the mark “Eagle.” In 2012, Eagle.com, Inc., a different company selling different products, begins to use eagle as part of its URL and registers it as a domain name. Can Eagle Corporation stop this use of eagle? If so, what must the company show?
Answer Preview: E agle Corporation can stop the use of eagle by showing that it ha…

, Chapter: 17 -Problem: 14 >> Gerald Lindgren, a farmer, agreed by phone to sell grain to Glacial Plains Cooperative. They reached two agreements—one for a delivery of soybeans, and one for a delivery of corn. Glacial Plains sent Lindgren two written, unsigned contracts. He made the soybean delivery, but sold his corn to another dealer. Glacial Plains filed a suit against Lindgren for breach of contract. During a deposition an
Answer Preview: The court found that the oral agreements between Lind gren and Gl acial Plains were enforce abl…

, Chapter: 41 -Problem: 2 >> Nora, an accountant, prepares a financial statement as part of a registration statement that Omega, Inc., files with the Securities and Exchange Commission before making a public offering of securities. The statement contains a misstatement of material fact that is not attributable to Nora’s fraud or negligence. Pat relies on the misstatement, buys some of the securities, and suffers a loss. Can N
Answer Preview: Yes , Nora can be held liable to Pat . The mis statement of material fact that is conta…

, Chapter: 35 -Problem: 1 >> Algonquin Corp. has issued and has outstanding 100,000 shares of common stock. Four stockholders own 60,000 of these shares, and for the past six years they have nominated a slate of candidates for membership on the board, all of whom have been elected. Sergio and twenty other shareholders, owning 20,000 shares, are dissatisfied with corporate management and want a representative on the board who
Answer Preview: If Sergio and the other shareholders are unhappy with corporate management , they can try to …

, Chapter: 18 -Problem: 1 >> The shipment of goods is a major aspect of commercial transactions. Many issues arise when an unforeseen event, such as fire or theft, causes damage to goods in transit. At the time of contract negotiation, both the seller and the buyer should determine the importance of the risk of loss. Risk should always be considered before a loss occurs, not after.In some circumstances, risk is relatively uni
Answer Preview: 1. The importance of the risk of loss for a given sale is that risk must be considered…

, Chapter: 33 -Problem: 2 >> What advantages do limited liability companies offer to business persons that are not offered by sole proprietorships or partnerships?
Answer Preview: Limited liability companies offer a number of advantages to business persons that are not offered by …

, Chapter: 26 -Problem: 7 >> First Brownsville Co. executed a promissory note secured by a mortgage so that it could build and operate a mini-warehouse storage business. When First Brownsville defaulted on the loan, Beach Community Bank sought to foreclose on the property in Florida state court. The court determined that First Brownsville owed $1,224,475, entered judgment for Beach Community, and scheduled a foreclosure sale.
Answer Preview: Under Florida law , a deficiency judgment may be awarded when a borrower defaults o…

, Chapter: 21 -Problem: 23 >> Peter Gowin was an employee of a granite countertop business owned by Joann Stathis. In November 2012, Gowin signed a promissory note agreeing to pay $12,500 in order to become a co-owner of the business. The note was dated January 15, 2012 (ten months before it was signed) and required him to make installment payments starting in February 2012. Stathis told Gowin not to worry about the note and n
Answer Preview: 1 . Peter Gow in did not own any interest in the business because he had never paid th…

, Chapter: 44 -Problem: 1 >> Is an insurance broker the agent of the insurance applicant or the agent of the insurer?
Answer Preview: An insurance bro ker addresses you as the client though a Protection Specialist addresse…

, Chapter: 24 -Problem: 7 >> Write a few sentences describing the circumstances in which a creditor would resort to each of the following remedies when trying to collect on debt.1. Mechanic’s lien2. Artisan’s lien3. Writ of attachment
Answer Preview: 1 . A mechanic 's l ien is a legal claim that a creditor has …

, Chapter: 41 -Problem: 1 >> Under what common law theories may professionals be liable to clients?
Answer Preview: There are four common law theories under which professionals may be liable to clients : negligence , …

, Chapter: 10 -Problem: 4 >> In what circumstances might a promise be enforced despite a lack of consideration?
Answer Preview: If a party to a contract has made a promise to another party and the prom is or …

, Chapter: 31 -Problem: 5 >> What is wrongful termination? In what types of situations do courts typically find that a franchisor has wrongfully terminated a franchise?
Answer Preview: Wr ong ful termination occurs when a franch is or unjust ly ends a franchise agreement . This can ha…

, Chapter: 2 -Problem: 9 >> John’s company is involved in a lawsuit with a customer, Beth. John argues that for fifty years higher courts in that state have decided cases involving circumstances similar to his case in a way that indicates he can expect a ruling in his company’s favor. Write at least one paragraph discussing if this is a valid argument. Write another paragraph discussing whether the judge in this case must ru
Answer Preview: 1. Write at least one paragraphs discussing if this is a valid argument. John's a rgument may b e v…

, Chapter: 26 -Problem: 2 >> Tanner borrows $150,000 from Southeast Credit Union to buy a home, which secures the loan. Two years into the term, Tanner stops making payments on the mortgage. After six months without payments, Southeast informs Tanner that he is in default and that it will proceed to foreclosure. What is foreclosure, and what is the usual procedure?
Answer Preview: Fore closure is the legal process by which a lender se izes and sells a borro…

, Chapter: 12 -Problem: 3 >> Ricky Wilcox contracted with Fireside Log Homes to build a house. The logs were to be delivered precut and predrilled, but they arrived unfinished. Fireside told Wilcox that cutting and drilling the logs would take only two or three days. In fact, this process slowed the project by five months. To cover costs caused by the delay Wilcox borrowed an additional $200,000. When the house was finally bu
Answer Preview: Yes , Fires ide committed fraud . This is because they made a material m…

, Chapter: 14 -Problem: 4 >> Will the courts allow parties to avoid performing their contractual duties when performance becomes extremely difficult or expensive?
Answer Preview: The courts will generally allow parties to avoid performing t…

, Chapter: 9 -Problem: 5 >> What is the Uniform Electronic Transactions Act? What are some of the major provisions of this act?
Answer Preview: 1. What is the Uniform Electronic Transactions Act? The Uniform Electronic Transactions Act (UETA) i…

, Chapter: 3 -Problem: 9 >> Kelley Mala was severely burned when his boat exploded after being over-fueled at Crown Bay Marina, Inc., in the United States Virgin Islands. Mala filed a lawsuit in a federal district court against Crown Bay, alleging that the marina negligently maintained its gas pump. (Negligence is the failure to exercise the standard of care that a reasonable person would exercise in similar circumstances. N
Answer Preview: The appeals court ruled that, under the terms of the admiralty laws of the Virgin Islands, Crown Bay …

, Chapter: 24 -Problem: 6 >> Main Avenue, LLC, agreed to lease commercial property to PP Door Enterprise, Inc. if its principal officers executed personal guaranties and provided credit information. Nan Zhang signed the lease as manager of PP Door. The principals of PP Door signed the lease and guaranty agreements. When PP Door failed to make monthly payments, the lessor sued PP Door and its owner, Ping Ying Li. Li testified
Answer Preview: 1. The facts do not support Li's argument that Zhang was not authorized to bi…

, Chapter: 23 -Problem: 3 >> If two secured parties have perfected security interests in the collateral of the debtor, which party has priority to the collateral on the debtor’s default?
Answer Preview: Assuming that both secured parties have perfected their security interests in the debtor 's …

, Chapter: 11 -Problem: 2 >> Does an intoxicated person have the capacity to enter into an enforceable contract?
Answer Preview: In general , an intoxicated person does not have the capacity to enter into an enfo…

, Chapter: 18 -Problem: 2 >> Chocolate, Inc., sells five hundred cases of cocoa mix to Dessert Company, which pays with a bad check. Chocolate does not discover that the check is bad until after Dessert sells the cocoa to Eden Food Stores, which suspects nothing. Can Chocolate recover the cocoa from Eden? Explain.
Answer Preview: Yes , Chocolate can recover the cocoa from Eden . E den Food Stores is a ba ilee of the coco…

, Chapter: 13 -Problem: 2 >> If it is possible for a contract to be performed within one year, must it be in writing?
Answer Preview: There is no requirement under the law that a contract be in writing if …

, Chapter: 26 -Problem: 5 >> In a mortgage foreclosure, what legal rights do mortgage holders have if the sale proceeds are insufficient to pay the underlying debt?
Answer Preview: M ort gage holders have a few different legal rights if the sale proceeds a…

, Chapter: 8 -Problem: 5 >> What rules guide the courts in interpreting contracts?
Answer Preview: The rules that guide the courts in interpreting contracts are based on the common law principle of f…

, Chapter: 14 -Problem: 2 >> What is substantial performance?
Answer Preview: Sub stantial performance is defined as the degree of performance that is suffici…

, Chapter: 9 -Problem: 2 >> In what circumstances will an offer be irrevocable?
Answer Preview: There are a few different circumstances in which an offer may be considered irre voc able . One comm…

, Chapter: 16 -Problem: 1 >> Assignments of contractual rights and delegations of duties are common in the business world. As you discovered in this chapter, third party rights and duties stem from the law on assignments, delegations, and third party beneficiaries. A third party may not even be aware that he or she has rights in a contract, as can happen when a person is the beneficiary of a life insurance policy. In certain
Answer Preview: 1 . You can generally assign or delegate your rights or duties under a contract to a third party , unless the contract specifically prohibits it , or …

, Chapter: 10 -Problem: 2 >> What are some examples of contracts that lack consideration?
Answer Preview: A contract is an agreement between two or more people that creates an obligation to do , or not do , …

, Chapter: 12 -Problem: 4 >> What is the difference between undue influence and duress?
Answer Preview: There are a few key differences between undue influence and du ress . For one , du ress is general…

, Chapter: 7 -Problem: 1 >> While in business school, all of you must take basic accounting courses. Accounting generally is associated with developing balance sheets and profit-and-loss statements, but it can also be used as a support system to provide information that can help managers do their jobs correctly. Enter managerial accounting, which involves the provision of accounting information for a company’s internal use.
Answer Preview: There are a few key reasons why it can be valuable for a corporation to expend resources on creating …

, Chapter: 13 -Problem: 1 >> Most business students must take a course in business communication. These courses cover the planning and preparation of oral and written communications, including e-mails. E-mails have become pervasive in business settings. Indeed, an increasing number of contracts are created via e-mail.Voluntary Consent and Mistakes One possible defense to contract enforceability is a lack of voluntary consent,
Answer Preview: 1. The subject line of the email should say "change delivery date for line portable generators." This is a specific and informative subject line that …

, Chapter: 31 -Problem: 2 >> What are the most common types of franchises?
Answer Preview: There are five major types of franchises are: job franchise, product franchise, business format franchise, investment franchise and conversion franchise . 1 Job Franchise A Job Franchise is generally …

, Chapter: 8 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 8 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: I found out that the ISBN 9781285428932 is for the textbook "Foundations …

, Chapter: 26 -Problem: 2 >> When is private mortgage insurance required? Which party does it protect?
Answer Preview: 1. When is private mortgage insurance required? Private mortgage insurance (PMI) is typically …

, Chapter: 3 -Problem: 1 >> Sue contracts with Tom to deliver a quantity of computers to Sue’s Computer Store. They disagree over the amount, the delivery date, the price, and the quality. Sue files a suit against Tom in a state court. Their state requires that their dispute be submitted to mediation or nonbinding arbitration. If the dispute is not resolved, or if either party disagrees with the decision of the mediator or a
Answer Preview: Articles and the Constitution of the United States enforce arbitration agreements on both parties in …

, Chapter: 4 -Problem: 1 >> Go to www.cengagebrain.com, enter the ISBN 9781285428932, and click on “Find” to locate this textbook’s Web site. Then, click on “Access Now” under “Study Tools,” and select Chapter 4 at the top. There, you will find a Practice Quiz that you can take to assess your mastery of the concepts in this chapter, as well as Flashcards and a Glossary of important terms.
Answer Preview: This chapter reviews the basics of including other languages and cultures in English through communi…

, Chapter: 30 -Problem: 4 >> What federal act prohibits discrimination based on age?
Answer Preview: The Age Discrimination in Employment Act of 1967 ( AD EA ) is a federal law that prohi…

, Chapter: 28 -Problem: 1 >> Springer, who was running for Congress, instructed his campaign staff not to purchase any campaign materials without his explicit authorization. In spite of these instructions, one of his campaign workers ordered Dubychek Printing Co. to print some promotional materials for Springer’s campaign. When the printed materials arrived, Springer did not return them but instead used them during his campai
Answer Preview: Yes , Dub y che k is correct . The campaign worker …

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