D216 Business Law for Accountants - Set 4 - Part 1

Correct Answer: When both parties are mistaken about the same material fact

A bilateral mistake occurs when both parties share the same misunderstanding about a material fact, which can make the contract voidable.

Correct Answer: Due process and equal protection under the law

The 14th Amendment, passed in 1868, ensures that no state can deprive any person of life, liberty, or property without due process of law.

Correct Answer: To perform specific government functions

Administrative agencies are created by legislatures to oversee and enforce specific regulations in areas such as the environment or labor.

Correct Answer: It is the first ten amendments to the U.S. Constitution

The Bill of Rights includes fundamental civil liberties such as freedom of speech, religion, and protection against unreasonable searches and seizures.

Correct Answer: A source of law a court must follow when deciding a case

Binding authority refers to legal precedents or laws that a court is obligated to follow when deciding a case.

Correct Answer: The party who brings a lawsuit

The plaintiff is the individual or party who initiates a legal action against another in a court of law.

Correct Answer: To grant Congress the power to regulate interstate commerce

The commerce clause gives Congress the authority to regulate trade between states and with foreign nations.

Correct Answer: A firm authorized by statute to act as a separate legal entity

A corporation is a legal entity that is separate from its owners, created by statute and capable of owning assets, entering into contracts, and being sued.

Correct Answer: Issue, Rule, Application, Conclusion

The IRAC method is used in legal reasoning to analyze and resolve legal issues by identifying the issue, applying the relevant rule, analyzing the facts, and concluding the outcome.

Correct Answer: A set of laws about the internet and electronic communications

Cyberlaw is the body of law that governs the use of electronic communications and transactions, including those conducted online.

Correct Answer: The compensation given to an innocent party to enforce a right

A remedy is the legal means to enforce a right or compensate for a breach of a legal duty.

Correct Answer: A provision that guarantees that no person shall be deprived of life, liberty, or property without legal procedures

The due process clause, part of the Fifth and Fourteenth Amendments, ensures fair treatment through the normal judicial system.

Correct Answer: Confidential information that gives a business a competitive edge

A trade secret is proprietary knowledge, such as formulas, methods, or designs, that is kept confidential to maintain a business’s competitive advantage.

Correct Answer: A contract that results when an offer can be accepted only by the offeree’s performance

In a unilateral contract, one party makes a promise that is accepted by the performance of an act rather than a return promise.

Correct Answer: A court order requiring a party to perform a specific act

Specific performance is an equitable remedy where a court orders the party in breach to fulfill their part of the contract, often used in cases involving unique goods or properties.

Correct Answer: Unreasonable searches and seizures

The Fourth Amendment of the U.S. Constitution protects citizens from unwarranted government searches and seizures of property.

Correct Answer: A rule stating that contract offers must mirror each other exactly

The mirror image rule requires that the acceptance of a contract must exactly match the terms of the offer without any modifications.

Correct Answer: Damages intended to put the plaintiff in the position they would have been in if the breach had not occurred

Compensatory damages are awarded to compensate the plaintiff for actual losses resulting from a breach of contract or wrongdoing.

Correct Answer: To take an appeal from one court to another

The appellant is the party who appeals a lower court’s decision, seeking a review from a higher court.

Correct Answer: It protects freedoms of speech, religion, and the press

The First Amendment guarantees essential civil liberties, including freedom of speech, freedom of religion, freedom of the press, the right to assemble, and the right to petition the government.