Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is TRUE regarding Gretchen’s statement?

Gretchen offers $100 to anyone who can return her lost dog, Sparky. Haley returns the dog and requests the money. Gretchen says that there is no binding contract. Which of the following is TRUE regarding Gretchen’s statement? Gretchen is incorrect because there is a binding bilateral contract. Gretchen is incorrect because there is a binding unilateral contract that Haley accepted by performing. Gretchen is correct because there is no binding bilateral contract. Gretchen is correct because there is no binding unilateral contract. Gretchen is correct because Haley acted incorrectly by her manner of attempted acceptance.
2 points

Question 12

Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel, that he would complete renovations on her upscale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, a strong earthquake shook the area, and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Which of the following is the appropriate term for the agreement that Stewart would pay Joan $50,000 for each day he was late in completion? Mitigated damages term Liquidated damages clause Stipulated damages Acknowledged damages clause Approved and acknowledged damages clause
2 points

Question 13

Which of the following are the two primary kinds of performance? Partial and significant Partial and complete Partial and substantial Complete and substantial Complete and significant
2 points

Question 14

The “public disclosure” test is also known as the __________ test. television Powell self-conscious golden primary
2 points

Question 15

Which of the following is FALSE regarding a limited liability partnership? A limited liability partnership is considered a separate legal entity. Limited liability partnerships are fairly new. The business name must include “Limited Liability Partnership” or an abbreviation in the name. The parties must file a form with the secretary of the state to create a limited liability partnership. Each partner pays taxes on his or her share of the income of the business.
2 points

Question 16

Positive abstractions that capture our sense of what is good or desirable are __________. ethical ideas values conscience demands desirable principles action goals
2 points

Question 17

Which of the following is TRUE regarding the mirror-image rule and the UCC? The mirror-image rule applies under the UCC the same as it is applies under common law. The mirror-image rule that applies under common law does not apply under the UCC. The mirror-image rule that applies under the common law applies under the UCC only if a lease is involved. The mirror-image rule that applies under the common law applies under the UCC only if a sale of goods is involved. The mirror-image rule under the UCC does not apply to common law.
2 points

Question 18

Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarships, and research? The limited-use doctrine The copyright-use doctrine The fair-use doctrine The trade-use doctrine None of these because there is no such provision
2 points

Question 19

__________ are investor-owners of a corporation. Profit owners Profit and loss owners Approved investors Limited partners Shareholders
2 points

Question 20

Which of the following is FALSE regarding trade-secret protection? Competitors may not legally discover trade secrets by doing reverse engineering. Competitors may discover secrets by going on public tours of plants and observing the use of the trade secret. Lawful discovery of a trade secret means there is no longer a trade secret to be protected. An invention may be considered a trade secret. A design may be considered a trade secret.
2 points

Question 21

Mistakes in contracts may be classified as __________. void and voidable enforceable and voidable unilateral and void mutual and enforceable unilateral and mutual
2 points

Question 22

Kitty, who had a love of baking, decided to open her own bakery. She decided that she did not need and did not want to pay for a lawyer to advise her on different forms of ownership. Unfortunately, Kitty had not paid attention in business law class. She proceeded, with little thought, to simply open her business called Kitty’s Baking. Bobby came in to order some cookies for his girlfriend, Bitsy, who was allergic to peanuts. Bobby told Kitty that he needed some cookies for Bitsy, but he explained that Bitsy had allergies to peanuts. Kitty told him not to worry because she would make up a special batch just for him. Kitty had hired some assistants because she was so busy. She told an assistant, Cathy, to make up several batches of cookies for different customers, including Bobby, and to leave out the peanuts in Bobby’s order. Cathy, however, forgot the instruction and proceeded to make Bobby’s cookies with crushed peanuts. Bobby picked up the cookies and gave one to Bitsy in the car while they were on the way to the movie in Bobby’s new car. Bitsy became violently ill, vomited in Bobby’s car, and had to have her stomach pumped. Bobby and Bitsy sought recovery from Kitty who told them that Bitsy’s doctor bill and Bobby’s car-cleaning bill were business debts, that the business was new and not making any money at the moment, and that she had no personal liability. Following the incident involving Bobby and Bitsy, Kitty discussed with her parents her problems with the bakery. Kitty’s parents would like to invest in her business and share in any profits, but they do not want to share in the management responsibilities. What type of business did Kitty initially set up? A limited liability company A sole proprietorship An individual proprietorship A general company An S corporation
2 points