Q&A Hero

Q: No state requires a release to be in writing.

Q: Under rules of professional misconduct, an attorney should not engage in conduct involving dishonesty.

Q: Orange Company makes cellphones. The company's ad states that "if you arent usin an Orange, you arent gettin any "˜C." The Federal Trade Com­mission would consider this ad a. false and misleading. b. impermissibly vague and general. c. a deceptive half-truth. d. none of the choices.

Q: Cashing a check in an amount for less than a balance owed and on which the debtor has written "payment in full" never bars a dispute over the amount.

Q: Under rules of professional misconduct, an attorney should not engage in conduct involving deceit.

Q: When a release of hazardous chemicals from a site occurs, potentially responsible parties can avoid liability through transfer of ownership.

Q: A contract that one party retains the exclusive right to cancel at any time is unenforceable.

Q: A client's negligence may constitute a defense to a charge of negligence against an accountant.

Q: The Environmental Protection Agency can regulate a toxic substance that poses an imminent hazard but cannot prohibit its use altogether.

Q: An illusory promise is a promise that is enforceable without consideration.

Q: An accountant can avoid liability by proving that his or her negligence was only the proximate cause of the cli­ent's loss.

Q: Professionals can limit their liability for the misconduct of other profes­sionals with whom they work to some extent by disclaiming it.

Q: It is a violation of federal law to destroy or deface any labeling required on a pesticide or herbicide.

Q: The Environmental Protection Agency sets minimum levels for pollut­ants in public water systems.

Q: A promise to pay for an act that has already occurred is enforceable.

Q: An opinion that disclaims any liability for false or misleading financial statements is too general.

Q: Public water system operators must meet the Environmental Protection Agency's standards regardless of the economic and technological feasibility.

Q: A later promise to do what one already has a legal duty to do is legally sufficient consideration.

Q: A qualified opinion must be specific and identify the reason for the qualification.

Q: Two parties can mutually agree to rescind a contract unless it is executory.

Q: The courts have considerably scaled back the Clean Water Act's protection of wetlands.

Q: Gen­erally ac­cepted auditing standards represent guidelines rather than standards of care.

Q: An accountant's violation of generally accepted accounting principles is prima facie evidence of negligence.

Q: The courts sometimes allow exceptions to the preexisting duty rule.

Q: Special requirements must be met to discharge toxic chemicals into surface waters.

Q: The preexisting duty rule permits a party who is bound by contract to perform a certain duty to use that duty as consideration for a second contract.

Q: Any point source emitting pollutants into water must have a permit.

Q: With respect to negligence, an accountant is subject to no greater stan­dard of care than a person who is not an accountant.

Q: Gen­erally ac­cepted accounting principles represent guidelines rather than a standard of care.

Q: Normally, a court of law will not question the adequacy of consideration if the consideration is legally sufficient.

Q: Those who knowingly violate the Clean Air Act are exempt from criminal penalties.

Q: Inadequate consideration may indicate fraud, duress, or undue influence.

Q: Performance standards for major sources of air pollution require the use of the any available technology, or AAT.

Q: A professional owes a duty to his or her client to honor the terms of their contract.

Q: Parties are not generally free to bargain as they wish.

Q: The Environmental Protection lists all hazardous air pollutants (HAPs) on a prioritized schedule.

Q: The liability of professionals is based solely on common law.

Q: A transaction that lacks a bargained-for exchange will always be upheld if the parties consented to it.

Q: Different standards for air quality apply to existing sources of pollution and major new sources.

Q: GR8 Fashion, Inc., complains to the Federal Trade Commission (FTC) about an ad broadcast by Hotte Clothes Company, GR8's competitor. The FTC investigates and concludes that the ad is deceptive. The FTC's next step is to a. conduct negotiations between the competitors. b. draft a formal complaint. c. issue a cease-and-desist order. d. permit GR8 to broadcast similarly deceptive counteradvertising.

Q: Use of the word consideration in an agreement means that consideration has been given.

Q: The primary responsibility for preventing and controlling air pollution rests with the federal government.

Q: Miracle Products, Inc., engages in de­ceptive advertising when it markets its product Weight-Off as able to help consumers lose weight in their sleep. Miracle is ordered to include in all future adver­tising of Weight-Off the statement, "Weight-Off will not cause anyone to lose weight in their sleep." This is a. a counteradvertising order. b. a multiple product order. c. bait-and-switch advertising. d. excessive abuse of authority.

Q: The Environmental Protection Agency has concluded that greenhouse gases, including carbon dioxide emissions, do not constitute a public danger.

Q: A promise by one party to pay another for refraining from an act is enforceable.

Q: Frosty's Appliance Store advertises freezers at a "Special Low Price of $299." When Garth tries to buy one of the freezers, Huey, the salesperson, tells him that they are all sold and no more are obtainable. Huey adds that Frosty's has other freezers for $2,299. This is a. a legitimate sales technique. b. bait-and-switch advertising. c. counteradvertising. d. puffery.

Q: There are no plans to develop national standards regulating the fuel economy and emissions for medium- and heavy-duty trucks.

Q: The Environmental Protection Agency periodically updates the air pollution standards.

Q: Orange Company makes computers. The company's ad states that "if you aren"t eatin" an Orange, you aren"t gettin" any "˜C." The Federal Trade Com­mission would consider this ad a. false and misleading. b. false only. c. misleading only. d. neither false nor misleading.

Q: For consideration to have "legally sufficient value," it does not have to consist of goods or money.

Q: An environmental impact statement is required for every major federal action that significantly affects the quality of the environment.

Q: Consideration is the value given in return for a promise.

Q: Nick, an employee of Omega Financial Corporation, gives the firm two weeks' notice that he will quit. In anticipation of his departure, Omega offers the job to Paula, giving her five business days to decide whether to accept. Four days later, Nick signs a new contract with Omega for the same job and tells Paula of the new contract. She immediately e-mails Omega her acceptance of Omega's offer. Does she have a contract with Omega?

Q: Injured individuals can rely on the common law to obtain damages and injunctions against business polluters.

Q: Rollo, an inventor, owns a number of copyrights, patents, and trademarks related to video games. Unaware of Rollo's work, Stu discusses with Rollo an idea for a "Swim "˜n Surf" game. Later, Rollo gives Stu a beta copy of a beach activities game, which Stu plays and responds to. Rollo offers to pay Stu, who declines, saying that he can be paid later "the real worth of my contribution." Rollo's "Surf & Dive" game is released, and is popular and profitable. When Stu is paid nothing, he files a suit against Rollo. Do Rollo and Stu have a contract? If so, how much is Stu's "contribution worth"?

Q: Once the government begins to clean up a waste dis­posal site, only the party who generated the waste must contribute to the cost.

Q: In Case 11.3, Osprey L.L.C. v. Kelly-Moore Paint Co., the court cited Osprey's denial of receiving the fax as evidence that a. fax service was not adequate. b. the methods of service stated in the contract should have been used. c. Osprey denied receiving the fax. d. Kelly-Moore never tried to fax the notice.

Q: A collection agency must include a validation notice whenever it initially contacts a debtor for payment of a debt.

Q: Major credit reporting agencies must provide consumers with free copies of their own credit reports every twelve months.

Q: The Environmental Protection Agency may ban the use of a toxic substance altogether.

Q: First Mining Corporation offers to sell Great Foundries, Inc., seven tons of aluminum. Great Foundries sends an acceptance via First Steel's authorized mode of communication. This acceptance is effective when it is a. in transit. b. received. c. sent. d. written.

Q: A credit-card company is not required to provide advance notice to consumers before changing credit-card terms.

Q: Any oil facility that discharges oil into navigable waters is liable for the clean-up costs plus damages.

Q: Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 a.m. Monday. A contract is formed if Shopping Stores' acceptance is received a. any time on Monday. b. before 10 a.m. Monday. c. before 11 a.m. Monday. d. within twenty-four hours of 10 a.m. Monday.

Q: Rita offers to sell an MP3 player to Steve, but receives a letter of acceptance from Tony. A valid contract exists between a. Rita and Steve. b. Rita and Tony. c. Rita, Steve, and Tony. d. none of the above.

Q: A credit-cardholder is liable for all unauthorized charges made before the creditor is notified that the card has been lost.

Q: Those who violate the Clean Water Act may be subject to civil penalties.

Q: Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank's acceptance is complete a. as soon as Frank says he will unload the truck. b. once Frank starts to unload the truck. c. only after Frank unloads the truck. d. when Frank hears Eve's offer.

Q: The key federal statute regulating the credit and credit-card industries is basically a disclosure law.

Q: A new source of water pollutants does not need to install pollution-control equip­ment until pollution is proved.

Q: First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Todd and the bank have a. have a contract for a loan at 15 percent interest. b. have a contract for a loan at 12 percent interest. c. have a contract for a loan at 0 percent interest. d. no contract for a loan.

Q: Manufacturers are required to report on any products intended for sale if the products have proved to be hazardous.

Q: Federal statutes provide the basis for issuing regulations to control wa­ter pollution.

Q: Merchants must issue a refund within a specified period of time when a consumer cancels an order.

Q: Merchants must ship orders within the time promised in their ads.

Q: Corporate officers may be subject to criminal penalties for violations of the Clean Air Act.

Q: Elle offers to sell a forklift to Glen, but it is stolen before Glen accepts. Elle a. must obtain a similar item for Glen, if Elle's insurance covers the loss. b. must obtain a similar item for Glen, if he still wants a forklift. c. need not obtain a similar item for Glen, because it would extend the time of the offer. d. need not obtain a similar item for Glen, because the theft terminated the offer.

Q: Labels on vegetables and fruits are not required to indicate where the food originated.

Q: Different standards for air quality apply to sources of pollution in clean areas and sources in polluted areas.

Q: Ann offers to buy a laser printer, with a case of paper and an extra cartridge, from Best Office Products for $200. Curt, Best's representative, says, "OK, but no paper and no extra cartridge." Curt has a. accepted the offer. b. made a counteroffer without rejecting the offer. c. rejected the offer and made a counteroffer. d. rejected the offer without making a counteroffer.