Question 1

Businesses that have been unable to resolve complex contractual disputes may have to turn to litigation as the last resort to,among other things,establish the liability of one business to another.

Accepted Answer

Litigation is often considered the last resort for resolving complex contractual disputes when other methods, such as negotiation or mediation, have failed, in order to establish the liability of one party to another.

Question 2

Why might a business involved in a legal dispute prefer to reach a private settlement instead of litigating the matter in court?

Accepted Answer

The answer of Why might a business involved in a...

Question 3

Ethics may demand that a business do more than comply with the law.

Accepted Answer

Ethics involves principles and standards that guide behavior in the world of business. It often requires businesses to go beyond mere legal compliance, encouraging them to act in a morally right or socially responsible manner even when the law might not require it.

Question 4

What are some examples of typical business transactions and events with significant legal implications?

Accepted Answer

The answer of What are some examples of typical business...

Question 5

Lawsuits come to court for either of two reasons: there is a dispute about the facts that actually occurred or there is a dispute about the way the law treats the parties.Describe the role and obligations of the judge,including what details must be considered and what must be proven to the court to allow it to reach a decision resolving the dispute.

Accepted Answer

The answer of Lawsuits come to court for either of...

Question 6

Briefly describe the main reasons that some business disputes must be resolved in court.

Accepted Answer

The answer of Briefly describe the main reasons that some...

Question 7

One of the most important functions of law in the business environment is to facilitate planning.

Accepted Answer

Law provides a framework that businesses can follow in planning their operations, ensuring that they are in compliance with legal standards and regulations, which helps in reducing uncertainty and facilitating more effective planning.

Question 8

Briefly describe how the law of contract facilitates commercial activity.

Accepted Answer

The answer of Briefly describe how the law of contract...

Question 9

It is a rule of law that a party who suffers a breach of contract is entitled to be put in the position it would have been in had the contract been fulfilled.

Accepted Answer

This principle is known as the expectation measure or principle of compensation in contract law, aiming to restore the injured party to the position they would have been in if the contract had been performed as agreed.

Question 10

Liability between parties engaged in a contractual business relationship refers specifically to the legal responsibility of one party to the other for any event or loss that may occur due to breach of the contract.

Accepted Answer

Liability in a contractual business relationship indeed refers to the legal obligation of one party to another for damages or losses incurred due to non-compliance or breach of the terms of the contract.

Question 11

Briefly describe the steps that parties must go through to achieve the consensus reflected in a contract.What role does a lawyer play in this process?

Accepted Answer

The answer of Briefly describe the steps that parties must...

Question 12

It is a rule of law that a party who suffers a breach of contract is entitled to be put in the position that he or she would have been in had the contract been fulfilled.

Accepted Answer

This principle is known as the expectation measure or the principle of compensation for loss of expectation, aiming to make the injured party whole by awarding damages that reflect what the party would have gained if the contract had been properly performed.

Question 13

In the litigation process,the party initiating a claim for breach of contract is obligated to prove its case,and the judge is obligated to be as objective as possible in determining whether the case of breach has been proven.

Accepted Answer

In the litigation process, the party initiating a claim (plaintiff) bears the burden of proof, meaning they must present evidence to prove their case of breach of contract. The judge, on the other hand, is obligated to remain neutral and objective, evaluating the evidence presented to determine whether the plaintiff has successfully proven their case.

Question 14

Briefly describe the main reasons one party to a contract might decide to overlook a breach of contract by the other party.

Accepted Answer

The answer of Briefly describe the main reasons one party...

Question 15

A legal risk management plan involves a business strategy that may require legal supervision to reduce the probability and severity of loss.

Accepted Answer

A legal risk management plan indeed involves strategies, often requiring legal oversight, aimed at minimizing the likelihood and impact of legal issues on a business.

Question 16

A supplier who commits to a contract is free of any legal obligations for direct and foreseeable financial consequences that the other party to the contract may experience should the supplier breach the contract.

Accepted Answer

When a supplier breaches a contract, they can be held legally responsible for direct and foreseeable financial consequences experienced by the other party due to the breach.

Question 17

Parties that agree to submit disputes to a neutral party who will ultimately make a binding decision to resolve the dispute are agreeing to participate in the arbitration process.

Accepted Answer

Arbitration is a process where disputing parties agree to submit their disputes to a neutral third party (the arbitrator) who makes a binding decision to resolve the conflict, unlike mediation where the mediator facilitates negotiation but does not make binding decisions.

Quiz 1: Knowledge of Law As a Business Asset