TEST BANK
Business Law: Text and Cases
Kenneth Clarkson
16th Edition
Chapters 1-51 (Questions with Verified Answers)
PR
O
FD
O
C
Page | 1
,Table of Contents — Business Law: Text and Cases (16th Edition)
Kenneth W. Clarkson & Roger LeRoy Miller
UNIT I: THE LEGAL ENVIRONMENT OF BUSINESS
1. Law and Legal Reasoning
2. Business and the Constitution
3. Ethics in Business
4. Courts and Alternative Dispute Resolution
5. Court Procedures
UNIT II: TORTS AND CRIMES
6. Tort Law
7. Strict Liability and Product Liability
8. Intellectual Property Rights
9. Internet Law, Social Media, and Privacy
10. Criminal Law and Cyber Crime
UNIT III: CONTRACTS AND E-CONTRACTS
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11. Nature and Terminology
12. Agreement
13. Consideration
14. Capacity and Legality
15. Mistakes, Fraud, and Voluntary Consent
16. The Writing Requirement
17. Third-Party Rights
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18. Performance and Discharge
19. Breach of Contract and Remedies
UNIT IV: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS
FD
20. Sales and Lease Contracts
21. Title, Risk, and Insurable Interest
22. Performance and Breach of Sales and Lease Contracts
23. Warranties
24. International and Space Law
UNIT V: NEGOTIABLE INSTRUMENTS
O
25. Negotiable Instruments
26. Transferability and Holder in Due Course
27. Liability, Defenses, and Discharge
28. Banking
C
UNIT VI: CREDITORS’ RIGHTS AND BANKRUPTCY
29. Creditors’ Rights and Remedies
30. Secured Transactions
31. Bankruptcy Law
UNIT VII: AGENCY AND EMPLOYMENT
32. Agency Formation and Duties
33. Agency Liability and Termination
34. Employment, Immigration, and Labor Law
35. Employment Discrimination
UNIT VIII: BUSINESS ORGANIZATIONS
36. Small Businesses and Franchises
37. All Forms of Partnerships
38. Limited Liability Companies and Special Business Forms
39. Corporate Formation and Financing
40. Corporate Directors, Officers, and Shareholders
41. Mergers and Takeovers
Page | 2
, 42. Investor Protection, Insider Trading, and Corporate Governance
UNIT IX: GOVERNMENT REGULATION
43. Administrative Agencies
44. Consumer Law
45. Environmental Protection
46. Antitrust Law
47. Professional Liability and Accountability
UNIT X: PROPERTY AND ITS PROTECTION
48. Personal Property and Bailments
49. Real Property and Landlord-Tenant Law
50. Insurance
51. Wills and Trusts
PR
O
FD
O
C
Page | 3
, Chapter 1
Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business activities.
PR
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
O
A2. Law is a body of enforceable rules governing relationships among individuals and between
individuals and their society.
FD
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
O
A3. A breach of a contract is a failure to perform it.
ANSWER: T PAGE: 3 TYPE: N
C
NAT: AACSB Ethics AICPA Critical Thinking A
4. Constitutional law includes only the U.S. Constitution.
ANSWER: F
A5. A state constitution is supreme within the state‘s borders.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
Page | 4
Business Law: Text and Cases
Kenneth Clarkson
16th Edition
Chapters 1-51 (Questions with Verified Answers)
PR
O
FD
O
C
Page | 1
,Table of Contents — Business Law: Text and Cases (16th Edition)
Kenneth W. Clarkson & Roger LeRoy Miller
UNIT I: THE LEGAL ENVIRONMENT OF BUSINESS
1. Law and Legal Reasoning
2. Business and the Constitution
3. Ethics in Business
4. Courts and Alternative Dispute Resolution
5. Court Procedures
UNIT II: TORTS AND CRIMES
6. Tort Law
7. Strict Liability and Product Liability
8. Intellectual Property Rights
9. Internet Law, Social Media, and Privacy
10. Criminal Law and Cyber Crime
UNIT III: CONTRACTS AND E-CONTRACTS
PR
11. Nature and Terminology
12. Agreement
13. Consideration
14. Capacity and Legality
15. Mistakes, Fraud, and Voluntary Consent
16. The Writing Requirement
17. Third-Party Rights
O
18. Performance and Discharge
19. Breach of Contract and Remedies
UNIT IV: DOMESTIC AND INTERNATIONAL SALES AND LEASE CONTRACTS
FD
20. Sales and Lease Contracts
21. Title, Risk, and Insurable Interest
22. Performance and Breach of Sales and Lease Contracts
23. Warranties
24. International and Space Law
UNIT V: NEGOTIABLE INSTRUMENTS
O
25. Negotiable Instruments
26. Transferability and Holder in Due Course
27. Liability, Defenses, and Discharge
28. Banking
C
UNIT VI: CREDITORS’ RIGHTS AND BANKRUPTCY
29. Creditors’ Rights and Remedies
30. Secured Transactions
31. Bankruptcy Law
UNIT VII: AGENCY AND EMPLOYMENT
32. Agency Formation and Duties
33. Agency Liability and Termination
34. Employment, Immigration, and Labor Law
35. Employment Discrimination
UNIT VIII: BUSINESS ORGANIZATIONS
36. Small Businesses and Franchises
37. All Forms of Partnerships
38. Limited Liability Companies and Special Business Forms
39. Corporate Formation and Financing
40. Corporate Directors, Officers, and Shareholders
41. Mergers and Takeovers
Page | 2
, 42. Investor Protection, Insider Trading, and Corporate Governance
UNIT IX: GOVERNMENT REGULATION
43. Administrative Agencies
44. Consumer Law
45. Environmental Protection
46. Antitrust Law
47. Professional Liability and Accountability
UNIT X: PROPERTY AND ITS PROTECTION
48. Personal Property and Bailments
49. Real Property and Landlord-Tenant Law
50. Insurance
51. Wills and Trusts
PR
O
FD
O
C
Page | 3
, Chapter 1
Introduction to Law and Legal Reasoning
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
A1. The stability and predictability of the law is essential to business activities.
PR
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Critical Thinking
O
A2. Law is a body of enforceable rules governing relationships among individuals and between
individuals and their society.
FD
ANSWER: T PAGE: 2 TYPE: =
NAT: AACSB Analytic AICPA Legal
O
A3. A breach of a contract is a failure to perform it.
ANSWER: T PAGE: 3 TYPE: N
C
NAT: AACSB Ethics AICPA Critical Thinking A
4. Constitutional law includes only the U.S. Constitution.
ANSWER: F
A5. A state constitution is supreme within the state‘s borders.
ANSWER: T PAGE: 4 TYPE: =
NAT: AACSB Analytic AICPA Legal A
Page | 4
