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BUS1310 amendments.
The Constitution has been amended (i.e., added to or changed) on several occasions since its
ratification. The first 10 amendments, called the Bill of Rights, were added in 1791. - ✔✔The Bill of
Rights consists of the Constitution's first
A contract that violates public policy.
As a general rule, an illegal contract that violates public policy or is specifically barred by statute is
automatically void. Neither party may enforce an illegal contract against the other. - ✔✔Which of the
following is most likely to be considered automatically void?
A hearing is conducted to resolve the dispute.
In arbitration, an arbitrator (or a panel of arbitrators) conducts a hearing between the parties in the
dispute. An arbitration hearing is similar to a civil trial and includes opening statements, but arbitration
is less formal since there is no discovery and rules of evidence do not apply. Parties in an arbitration
hearing may be represented by an attorney, or may proceed to arbitration without an attorney's
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assistance. - ✔✔Which of the following is always true of litigation and arbitration?
A minor may force the concerned adult to complete the contract.
Minors have only limited power to contract. Minors may seek to cancel (i.e., avoid or void) the
contract immediately, or they may enforce the contract with the option of avoiding it at any time up
until the time they reach majority. - ✔✔Which of the following is true of contracts with minors?
a Ponzi scheme
These investors are victims of a Ponzi scheme. A Ponzi scheme is a fraudulent investment operation
that pays returns to investors from their own money or money paid by subsequent investors rather
than from any actual profit earned. A Ponzi scheme usually offers returns that other investments
cannot match in order to entice new investors. - ✔✔Gamma Consultants, a financial firm, promises
its clients a 20 percent rate of return on their investments in just one month. However, instead of
investing the clients' money, Gamma takes out a loan and pays the investors the returns promised.
The high returns received by the investors encourage other investors to start investing large sums of
money. This time, Gamma uses the deposits from the previous investors to pay the dividends. After a
year or so, Gamma runs out of money and can no longer pay the investors the returns promised,
,causing the investors to lose huge amounts of money. In this scenario, the investors are likely victims
of __________.
Actual authority
Typically, an agent's power to bind is created through actual authority, which arises either when the
parties expressly agree to create an agency relationship or when the authority is implied based on
custom or course of past dealings. - ✔✔_____ arises either when the parties in an agency
relationship expressly agree to create the relationship or when the authority is implied based on
custom or course of past dealings.
ADR is usually conducted in private and accidental disclosure of confidential business information is
unlikely to occur.
ADR methods are usually conducted in private with no public court record. This reduces the risk of
accidental disclosure of confidential business information. This privacy also helps parties avoid
avoiding unwanted publicity of their dispute. - ✔✔Which of the following is true of alternative dispute
resolution (ADR)?
Affirmative action includes outreach attempts to recruit minority applicants.
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Affirmative action as it is understood today includes, but goes beyond, outreach attempts to recruit
minority applicants, offer special training programs, and reevaluate the effect of selection criteria.
Courts may impose affirmative action on an employer as a judicial remedy when they find that the
employer acted in a pattern of egregious discrimination against employees. - ✔✔Which of the
following statements is true of affirmative action in employment?
Airline employees
In general, the NLRA covers all employers whose business activity involves some aspect of interstate
commerce. The NLRA provides general protections for the rights of workers to organize, engage in
collective bargaining, and use economic weapons (such as a strike) in the collective bargaining
process. However, some workers are specifically exempted by statute, including railroad and airline
employees. - ✔✔Which of the following are specifically exempted from coverage by the National
Labor Relations Act (NLRA)?
An employer displays pornographic pictures or movies in a workplace area during an office party.
While there is no formula for determining a hostile work environment, courts have deemed certain
behaviors as a violation of Title VII. These include (1) initiating a discussion of sexual acts, activities,
,or physical attributes in workplace areas (such as the employee cafeteria); (2) engaging in
unnecessary or excessive physical contact; (3) using crude, demeaning, or vulgar language; and (4)
displaying pornographic pictures or movies. In determining whether a hostile work environment has
been created, courts will generally require that the harassment be severe and pervasive. This means
that if an inappropriate incident occurred but was not subsequently repeated, that one-time incident
will likely not support a claim for harassment. - ✔✔Which of the following would likely create a hostile
work environment in violation of Title VII of the Civil Rights Act of 1964?
apply standards.
Once the impact has been identified, values and ethical principles (i.e., standards) must then be
applied. This involves asking questions about the legal impact of the dilemma and the consequences
of action and inaction. - ✔✔In a typical ethical decision-making process, once the impact of the
decision has been identified, the next step is to
Arraignment
The adjudicative step that will most likely occur immediately after the indictment is the arraignment.
The defendant is entitled to an arraignment in a state trial court, at which he is informed of the final
charges and is asked to enter a plea of guilty, not guilty, or no contest. - ✔✔Alex has been charged
with fraud and the grand jury determined that probable cause exists to hold Alex over for trial. Alex
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has been notified that he is held over for trial through an indictment. Which of the following
adjudicative steps will most likely occur immediately after the indictment?
Banning discrimination in places of public accommodation, such as restaurants.
A key, but unorthodox, use of the federal commerce power has been in the area of civil rights
legislation. In the 1964 Civil Rights Act, Congress used its commerce power to ban discrimination in
places of public accommodation such as restaurants and hotels. - ✔✔Which of the following is an
application of the power granted to the U.S. Congress by the Commerce Clause?
being discriminated against on the basis of his membership in a protected class.
Wu is being discriminated against on the basis of his membership in a protected class. Referred to
simply as Title VII, the law prohibits discrimination in the workplace on the basis of an employee's
race, color, national origin, gender, or religion. These classifications are known as "protected
classes". - ✔✔Wu is an Asian candidate applying to work as a waiter at a Mexican restaurant in
Dallas. Marcia, the restaurant owner, rejects Wu's application because she believes that Asians do
not make good waiters. Under Title VII of the Civil Rights Act of 1964, Wu is
, bribery.
Offering a bribe is unlawful even if the offeree does not go along with the scheme. In this scenario, if
Jeremy, the offeree, does go along with the bribe (known as a kickback in these circumstances), then
he too will be culpable for bribery. - ✔✔Julie is opening a new bar and restaurant. She offers Jeremy,
an inspector from the county liquor board, 3% of the business' profits from the first year of operation
in exchange for an alcoholic beverage license. If Jeremy accepts the kickback, he could be found
guilty of the criminal offense of
Capacity
The necessary elements of an enforceable contract are mutual assent, capacity to contract,
consideration, and legal purpose. Capacity to contract requires that the parties are of proper age
(usually at least 18 years old) and mental competence. - ✔✔James signed a three-year employment
contract with HIS Inc., a men's clothing store. James' parents are furious because James is 16 years
of age. In this scenario, which of the following contract elements is likely missing?
Carter stopped along his usual route to buy lunch on a working day.
If Carter injures a pedestrian when he is on his way to buy lunch on a working day, then it will
probably be considered a "detour" under the doctrine of respondeat superior. A simple detour is a
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small-scale deviation that is normally expected in a workday. Detours are within the ambit of
respondeat superior and employers can be held liable for tortious conduct during a detour. -
✔✔Carter is employed as a bike courier by Express Everywhere, a local delivery service. Carter hits
a pedestrian and injures her with his bicycle. Which of the following scenarios is likely a "detour"
where Express Everywhere could still be held liable under the doctrine of respondeat superior?
charge Ernest and the company with misdemeanors under the FDCA.
The responsible corporate officer doctrine allows the government to bring criminal charges against
corporate officers who by reason of their position in the corporation have the responsibility and
authority to take necessary measures to prevent or remedy violations of the Food, Drug and
Cosmetic Act (FDCA) and fail to do so, may be held criminally liable as responsible corporate agents,
regardless of whether they were aware of or intended to cause the violation. This doctrine was
developed by the U.S. Supreme Court in a famous 1975 case United States v. Park in which the court
upheld the conviction of a corporate officer for a misdemeanor crime under the (FDCA) after his
company was held responsible for putting adulterated or contaminated food into commerce. -
✔✔Ernest is the president of a large cosmetics manufacturing company, Sleeping Beauty, Inc. The
Food and Drug Administration (FDA) determined that a toxic compound was inadvertently added to a
number of the company's products during the manufacturing process. The FDA notified Sleeping
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