Business Law Chapter 1 Answer Key

UNIT 3 — MILESTONE 3  16 questions were answered correctly. 1 question was answered incorrectly. 1  ● Who can own property in the United States today? ● Only people All people, animals, and ● nonhuman legal persons ● People and animals All people and some nonhuman   legal persons CONCEPT → The Property System Report an issue with this question 2  ● A utility patent __________. may be granted for inventing or ● ● modifying any useful item, even if the item waspreviously patented may be granted solely for the idea of a new invention may be granted for inventing a   useful item that does not infringe on the patent of another item CONCEPT → Patents Report an issue with this question 3  ● A local shopkeeper has been doing business with Imogene for years. Imogene is a caretaker for an elderly woman in town, and she is authorized to purchase groceries and other goods in the store on the elderly woman's account. One day, a man named Andrew comes to the store and claims to be the elderly woman's new caretaker. He charges groceries to her account and leaves. The elderly woman later refuses to pay those charges, asserting that she doesn't know an Andrew. Is Andrew personally liable for the charges? ● ● ● No, because Andrew was only a partially disclosed agent. Yes, because an agent is almost always responsible for a contract formed on behalf of a principal. No, because the shopkeeper should have known that Andrew was not a legitimate agent. CONCEPT → Agent's Personal Liability for Torts and Contracts Report an issue with this question 4  ● Ryan owns a Christmas tree farm that struggles to compete with the Christmas tree farm on the other end of town. He instructs one of his employees to set a fire at the rival farm, which destroys much of their stock and drives up demand for Ryan's trees. Ryan's employee is arrested for arson, and the rival farm sues for damages. Is Ryan liable for the tort? Yes, Ryan is vicariously liable according to the "zone of risk" ● No, Ryan is not liable in this case. Yes, Ryan is directly liable for the   ● tort and for the employee's criminal act of arson. Yes, Ryan is directly liable for the tort but not for the employee's criminal act of arson. CONCEPT → Principal's Tort and Criminal Liability Report an issue with this question 5  ● Marissa, a principal, hires a new fifth grade teacher for the upcoming school year. Which type of agent is the new teacher? ●  Special agent ● Collection agent  Employee CONCEPT → Types of Agents Report an issue with this question 6  ● Carla (principal) hires an agent to represent her business and find buyers for her artwork. At the same time, Carla continues to aggressively market her artwork and sells several pieces on her own. Is Carla in breach of her duty? Yes, because Carla is "self● ● dealing" by continuing to sell pieces on her own. Yes, because Carla is violating her fiduciary duty to her agent. No, because of the shop rights ●   doctrine. No, because Carla may compete with her agent unless their contract states otherwise. CONCEPT → Duties between Agent and Principal 7  ● If you sign a lease to rent an office in a building, you have a __________ in the office.   ● possessory interest reversionary interest ● fee simple defeasible interest ● devisable interest CONCEPT → Real Property: Duties, Responsibilities, and Interests Report an issue with this question 8  ● Why was the power to confer intellectual property rights given to Congress? ●   To deter monopolies To promote progress ● To support capitalism CONCEPT → Intellectual Property Report an issue with this question 9  ● A pound of coffee beans is __________. ●   ● ● fungible public property tangible fungible private property intangible private property intangible public property CONCEPT → Personal Property Report an issue with this question 10  ● Ramona purchases a DVD of a copyrighted movie from a store and watches it at home with her family and a few friends.   ● Legal use of a copyright license Direct copyright infringement ● Fair use ● Contributory infringement CONCEPT → Copyright Law Report an issue with this question 11  ● Wanda's financial advising firm wants to know the private client list held by a competing firm in town. Wanda sets up a meeting with an employee at the rival firm, and while there, Wanda downloads the client list to a flash drive when the employee steps away from his office. Three days later, Wanda uses the flash drive to open the client list. Does Wanda's conduct violate trade secret law? ● No, because the firm with the private client list failed to keep it a secret. No, because trade secret ●   protections disappear when a trade secret is discovered. Yes, because the method by which Wanda discovered the trade secret is illegal according to trade secret law. CONCEPT → Trade Secrets Report an issue with this question 12  ● Which of the following is true of agency relationships? Agency relationshipsare created   between a principal and an agent, who represents the principal to a third party. ● Legally binding agency relationships may be formed between a principal who is a minor and an agent, if the agent is a fully capable adult. Agency relationships are created between a principal and an ● employee, who represents the principal to an agent. CONCEPT → Introduction to Agency Law Report an issue with this question 13  ● If a voluntary bailment is only of benefit to the bailee, what sort of responsibility does the bailee owe the bailor?   Minimum duty of care The bailee has no responsibility ● ●  ● in this case. Ordinary duty of care Extraordinary duty of care CONCEPT → Bailment 14  ● Select the true statement regarding real property purchases. ● ●   ● By law, all deeds must be recorded at the end of real property sales. All real property transfers must involve a warranty deed. A purchase of real property includes the acquisition of fixtures, if such fixtures exist and are not excluded by contract. A contract for the purchase of real property may be either verbal or written. CONCEPT → Real Property: Methods of Acquisition Report an issue with this question 15  ● Jason is a salesperson at a clothing company. He has no authority to order inventory, but one day he sends a purchase order on company letterhead to a shoe supplier. He likes the Is the company liable for the invoice? ●  Yes, due to express authority.  Yes, due to apparent authority. ● Yes, due to implied authority. ● No, the company is not liable. CONCEPT → Principal's Contract Liability Report an issue with this question 16  ● Which of the following most clearly represents a lawful termination of employment? A daycare center fires one of its ● teachers for wearing a hijab to work. A car salesman quits his job in June after signing a contract to ● ●   A newspaper publisher fires one of its reporters after the reporter exposes discrimination within the publishing company. A landscaping company fires an employee who habitually leaves work earlier than he's supposed to. The employee has to leave early to pick up his child from school. CONCEPT → Employment at Will Report an issue with this question 17  ● Select the statement that best applies to the new company name "Pep-C." This name likely cannot be   trademarked. This name is an example of a ● service mark. This name is an example of a ● collective mark. CONCEPT → Trademarks Report an issue with this question