Problem 1: Karen is going downtown to shop. She pulls her car into a parking lot, stops, pays for and receives a ticket, parks her car, and leaves. Karen keeps her keys and may get her car at any time. Several hours later, when Karen returns, she learns her car has been stolen. Which of the following statements best describes this situation?
a. This is a bailment.
b. This is not a bailment because there was no compensation paid.
c. This is not a bailment because there was no taking of possession by a bailee.
d. This is not a bailment because the bailee had no duty to return the goods.
e. This is not a bailment because there is no personal property.
Problem 2. Under the Uniform Simultaneous Death Act, when two persons who would inherit property from each other die together in such a way that it is impossible to determine who died first, the property of each is distributed:
a. as if the other person had not been left anything in the will.
b. as if he or she had died after the other person.
c. as if each had half the combined assets of both parties.
d. as if he or she had died first. e. as if the older person had died first.
Problem 3. Which of the following actions is consistent with the maximizing profits theory of the social responsibility of business?
a. Raising wages because it is expected to lower employee turnover and long-term overall compensation expenses.
b. Raising wages because it is believed that workers are underpaid relative to the industry average and that employee relations will be improved even though overall compensation expenses will increase.
c. Raising wages to avoid a strike that would cost more than the increased costs of the wage increase.
d. A and C only.
e. A, B, and C.
Problem 4. Under international law, what is the difference between a treaty and a convention?
a. Conventions usually have only a few signatory nations whereas treaties usually have many.
b. The two terms have the same meaning, thus there is no difference between them.
c. A treaty is an agreement negotiated directly be the signatory nations, whereas a convention is first drafted by a sponsoring international organization, after which, nations can decided whether to be bound by it.
d. A treaty is an agreement, and a convention is typically the meeting at which the treaty was drafted.
Problem 5: Under an automobile insurance policy, what does comprehensive coverage protect against?
a. All types of damage to the covered vehicles of the insured.
b. Coverage for all losses in connection with the vehicle of the insured that are caused by other parties.
c. All types of damage to the covered vehicles of the insured except for damage caused by collision.
d. All types of losses caused by the insured to other parties.
e. All types of loss in connection with the ownership and operation of a vehicle.