Which of the following is not required to create a valid trust:
a. mental capacity of the grantor.
b. witnesses.
c. a beneficiary(ies).
d. property transferred to the trust.
If the subject of the contract includes issues that may be controversial, it is best to:
a. keep lawyers out of the negotiation, so relationships are not strained.
b. deal with them up front before the relationship is strained.
c. deal with them one at a time, as the problems arise.
d. state your position up front and stand firm when the other party objects.
Mike made the following offer to Mick: “I will pay you $500 if you agree to paint my
house.” Mick replied that he would. At this point, the contract is an:
a. executed, bilateral, express contract.
b. executory, bilateral, implied-in-law contract.
c. executory, unilateral, express contract.
d. executory, bilateral, express contract.
Bertha, from Chicago, traveled to San Francisco to attend a conference. Her sister,
Martha, lives in San Francisco and consequently, Bertha made arrangements to spend a
couple of days with her sister. The next morning sitting at the breakfast table, Bertha
realizes that she packed a mismatched pair of shoes (one is black and the other is blue).
Luckily, Martha wears the same size of shoes and lends Bertha a pair of black leather
pumps. During the day, the shoes are damaged while Bertha is wearing the shoes.
Bertha’s duty of care would be a duty of:
a. extraordinary care, because this is a bailment for the sole benefit of the bailee.
b. ordinary care, because this is a bailment with both parties receiving mutual benefits.
c. only slight care, because this is a bailment for the sole benefit of the bailor.
d. none, as the sisters would share without condition.
Bert had his driver’s license suspended by the state department of transportation. He
believes his constitutional due process rights were violated by the administrative
agency. Can he immediately file a court action to have agency’s actions reviewed?
a. Yes. A court has the jurisdiction to immediately review an agency’s alleged
unconstitutional action.
b. Yes. Bert must specifically allege his constitutional rights have been violated and file
a court action in federal court – not a state court.
c. No. Bert must first utilize the administrative agency’s procedures to review the
suspension before he seeks judicial review by a court.
d. No. A court of law does not have jurisdiction to review an administrative agency’s
actions.
Greenhouse effect is caused by
a. sulfur emissions from coal-burning utility plants.
b. automobile emissions, especially from large cities.
c. any fossil fuels being burned
d. all of these answers are correct
Betty wants to hire a secretary who is “mature.” In particular, she wants to hire a
woman with experience and whose children are grown (so she will not have to be
staying home with sick children, etc.). She also wants to make sure the woman is of
‘sound, Christian character, with solid morals.”
To find such an employee, she ran the following ad in the newspaper: “Secretary.
Excellent Pay. Quiet professional office. Must not have young children. Must not be
opposed to Christian work ethic. References required. 555-1111 or write to P.O. Box
114, Ourtown, USA.”
Discuss the legal issues raised by Betty’s ad.
What is a tariff?
a. Selling goods at a cheaper price than they cost to put competition out of business
b. a duty imposed on imports
c. Selling goods at a cheaper unfair price
d. a duty imposed on exports
Chance is a traveling marketing representative for a publishing company. He is an
independent contractor. One afternoon while driving to a meeting, he negligently runs a
stop sign and causes an accident. Judy is injured. Judy can:
a. hold both Chance and his company liable for her injury.
b. hold the company but not Chance liable.
c. hold Chance but not the company liable.
d. not hold Chance or his company liable for her injury.
Smalltown, located in a border state, seemed to favor Caucasians over Latinos in their
hiring practices. The courts will review the practice using:
a. minimal scrutiny.
b. intermediate scrutiny.
c. strict scrutiny.
d. Supremacy Clause scrutiny.
Under the Uniform Anatomical Gift Act:
a. an individual may indicate the desire to be an organ donor by putting a provision in
his will. The provision will take effect after probate of the will.
b. the willingness to be an organ donor may be indicated by signing an organ donation
card in the presence of one disinterested witness.
c. family members of a decedent have no right to make a gift of the decedents organs if
the decedent did not make an affirmative indication of the desire to be a donor during
her lifetime.
d. an effective donation may be made by an individual in a will or on a witnessed
organ-donation card or by family members after the persons death as long as the person
did not indicate a desire not to be a donor.
Which of the following statements is correct?
a. It is much easier for a government employer to test an employee for drugs or alcohol
than it is for a private employer.
b. Generally speaking, in most states, it is easier for a private employer than the
government to test an employee for drugs or alcohol.
c. Neither may test for drugs or alcohol.
d. Both may test for drugs or alcohol without restriction.
In awarding punitive damages, a court must consider:
a. the reprehensibility of the defendant’s conduct.
b. the ratio between the harm suffered and the award.
c. the difference between the punitive award and any civil penalties used in similar
cases.
d. All of the above.
Through which of the following procedures can a person inherit?
a. Will
b. Trust
c. Intestacy
d. All of the above.
Under the Robinson-Patman Act was it is legal to charge a different price for a product
if…
a. the items are the same
b. the cost of doing business is less with one buyer over another
c. Competition is lessened.
d. All the above.
Sam, the chief executive officer of Boch Industries, was criminally prosecuted for
violating the Resource Conservation and Recovery Act. Which of the following is
correct concerning the penalties?
a. Sam cannot be punished because he was acting for Boch Industries. Boch Industries
faces criminal fines.
b. Sam faces criminal fines as well as imprisonment.
c. Sam faces only criminal fines.
d. The only remedy Sam faces is an injunction to prevent further violations.
Ikerd was entering the United States from a trip abroad when the Customs Service
confiscated some goods she had purchased and brought back with her. The
determination of whether the government is attempting to take property and what type
of hearing the Customs Service must offer Ikerd, is an analysis of:
a. substantive due process.
b. procedural due process.
c. the Takings Clause.
d. eminent domain.
In follow.Entergy Corp v. Riverkeepers, Inc.the main issue was:
a. does the EPA have the power to regulate the mortality of fish
b. can the EPA use cost as a deciding factor in discrimination against parties in the
implementation of its rules?.
c. Can the EPA allow existing industries to implement rules at a slower pace than new
industry.
d. none of the above
Under what conditions can a landlord become liable for a crime committed against a
tenant.
a. Foreseeability
b. Reasonableness of Crime prevention tactics
c. Both a & b are correct
d. A landlord cannot be liable for crime. It is not within his control.
Burns Medicine Shop developed a website where customers could ask the pharmacists
questions and could refill prescriptions online. What statute requires Burns to have and
disclose a privacy policy to anyone using the website?
a. The FTC Act.
b. The Electronic Communications Privacy Act.
c. The Gramm-Leach-Bliley Privacy Act.
d. No statutes presently require Web sites to have or disclose a privacy policy.
Grady receives a $12,940 credit card bill in the mail from a company with which he did
not open an account. He fears he is a victim of identity theft. Does he have any
recourse?
a. Yes, under the Fair and Accurate Credit Transactions Act (FACTA), Grady can place
an alert in his credit files using the National Fraud Alert System.
b. Yes, under the Fair Credit Billing Act he may call the credit card company to
complain about the bill, and the credit card company must investigate and correct any
errors.
c. Yes, under the Truth in Lending Act, Grady is liable only for the first $50 in
unauthorized charges.
d. No, he should have been more careful with his personal information so no one could
have applied for credit in his name.
Roxanne was fired from her job when her employer instituted a new policy that
prohibited employees from smoking cigarettes. This requirement applied to off-duty
time as well as job-related time. Roxanne claimed that she could not quit smoking and
that she was wrongfully fired since she did not smoke in the workplace — only when
she was outside the building and during off-duty time.
a. The company has wrongfully fired Roxanne and is liable to her for damages.
b. The company would be liable to Roxanne only if there is a state statute prohibiting
employers from passing such job-related requirements.
c. The company is not liable to Roxanne since the nonsmoking requirement is
reasonable given the high cost of treating smoking-related illness.
d. The company is not liable to Roxanne since the United States Supreme Court has
expressly ruled such a company policy does not violate the worker’s right to privacy.
The bankruptcy Chapter designed only for individuals:
a. Chapter
b. Chapter
c. Chapter
d. Chapter 13
Sherry, a 12-year-old, visited a website that wanted to know her family size, her parents’
educational level, and her weekly allowance. The site also asked Sherry’s name, mailing
and e-mail addresses, and age.
a. Under COPPA, the website must disclose how it will use the information it acquires
from Sherry.
b. COPPA prohibits the Internet operator from collecting such information without her
parents permission.
c. COPPA does not apply to Sherry’s situation since she is over the age limit for those
protected by the statute.
d. Both a and b.
Ron is the business agent for Kansas Sunshine, a rock band. He is also the agent for
another popular Midwestern rock group, City Sand. Ron negotiates a deal with a
Kansas City promoter to have City Sand play after a professional football game. The
promoter was willing to pay $250,000 for both groups to play after the game; however,
Ron talked her into booking just City Sand for $175,000. Given his contract with City
Sand, Ron made more money under this arrangement. Has Ron violated his fiduciary
duty to Kansas Sunshine?
a. Yes. It appears that Ron put his own interests ahead of his principal’s interests.
b. Yes. Ron cannot, under any circumstances, act as an agent for both groups.
c. Both a and b are correct.
d. Neither a nor b is correct since it is very common for rock band agents to represent
several groups at the same time.
If the title of an appellate court case appears as Jones v. Smith:
a. Jones is the plaintiff and Smith is the defendant.
b. Smith won the trial court decision.
c. you cannot determine which party is the plaintiff, because when a defendant loses a
trial and files an appeal, some courts (but not all) reverse the names of the parties.
d. the trial judge was Jones and the appellate judge is Smith.
Fact Pattern 39-1
Two universities located within 30 miles of each other agree to divide their market so as
to help them both. The two schools draw a line down a map and each university agrees
to accept students only on their side of the line. This agreement violates the:
a. Sherman Act.
b. Clayton Act.
c. Robinson-Patman Act.
d. None of the above.
The Age Discrimination in Employment Act (ADEA) of 1967 prohibits age
discrimination against employees or job applicants who are:
a. at least 40 years old
b. at least 55 years old
c. under 21 years old
d. younger than any other employee
John loans George money and they sign a written agreement whereby George will
repay John in monthly installments. Is this loan subject to the Truth-in-Lending Act?
a. Yes, if the loan is for more than $1,000.
b. Yes, if John and George live in different states.
c. No, if John is not in the business of offering credit.
d. No, if John and George are related.
Which of the following contracts requires a writing under the UCC, Article 2?
a. Jeremy, a full-time student, sold his snow blower to a friend for $450.
b. Jeremy, a full-time student, purchased a used computer from Office Plus for $300.
c. A toy manufacturer contracted to sell dolls valued at $10,000 to a department store.
d. Tobias Department Store contracted to sell Jenny a $400 doll.
Debts that cannot be discharged in bankruptcy include all EXCEPT:
a. alimony.
b. income taxes.
c. negligence judgments.
d. fraud judgments.
The courts will find an implied contract when:
a. justice demands it.
b. conduct of the parties indicates they intended an agreement.
c. there is promissory estoppel.
d. there is undue influence.
At her neighbor’s garage sale, Constance buys a vanity dressing table from her
neighbor, Carlos, for $160. Constance purchased the vanity table for her own personal
use, without any knowledge that Carlos had signed a security agreement giving All
Purpose Furniture, Inc. a security interest in the vanity table. All Purpose Furniture did
not file a financing statement. Constance does not know that Carlos is still paying off
the purchase money security interest and owes All Purpose Furniture, Inc. $400. Under
these circumstances:
a. Constance takes the vanity table subject to All Purpose’s security interest because All
Purpose’s security interest automatically perfected. A perfected security interest takes
priority.
b. Constance takes the vanity table free of All Purpose’s security interest because she is
a buyer of consumer goods
c. Constance takes the vanity table free of All Purpose’s security interest because she is
a buyer in the ordinary course of business.
d. Constance must pay All Purpose $400 or the table must be resold, and she and All
Purpose will proportionately share the proceeds from the sale of the table.
Ray v Beacon Hudson Mountain Corp decided
a. Continuous possession, but not occupancy was necessary for adverse possession.
b. Continuous occupancy was necessary for adverse possession.
c. There was too much time between the mother dying and their adverse claim to
establish adverse possession.
d. None of these answers are correct
Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to
form an enforceable contract.
Discuss the tenant’s and the landlord’s basic duties under a landlord-tenant relationship.
Brooke uses her credit card to purchase a lawn mower at the local “big box hardware
store, but when she tries to use the mower for the first time, she finds it is not
self-propelled as advertised. Does she have any recourse?
The First Amendment guarantee of freedom of speech is an absolute right.
The Fourth Amendment to the Constitution of the United States prohibiting
unreasonable searches and seizures does not apply to the Internet.
Insider trading is illegal only if the person with secret information has a duty to disclose
to those with whom he trades, thus in Chiarella v US, Mr. Chiarella was found
innocent.
Property of a person who dies without a will is distributed according to intestacy laws.
DoorWay Computers, Inc., the trademark owner of “DoorWay,” sought a court
injunction to prevent Handyman Hardware, Inc. from using the domain name,
“DoorWay.com.” A jury will decide whether DoorWay is entitled to this remedy.
Summary judgment is appropriate when there are no essential facts in dispute.
Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie’s house
by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays
the $75, then this is an implied, bilateral, executory contract.
If a program is on your computer monitors your activities without your permission, you
may be able to get protection through state legislation which makes spyware illegal.
Under the “fair use doctrine,” instructors cannot be liable for copyright violations.
Barbara, a skilled welder, was hired at Mainco Enterprises for a welding position. She
was asked to sign noncompete clauses limiting future employment if she left Mainco. A
court would be very likely to enforce the noncompete clause unless the time or
geographic restriction is unreasonable.
Chapter 7 bankruptcy petitions may only be filed voluntarily..
Separation of powers allows one of the branches of government to become more
powerful over the other two.
The workers at Thom Trucking went on strike over wages. Thom Trucking may hire
permanent replacement workers.
The management and union at TriColor have bargained for two years without reaching
an agreement. After notifying the union, TriColor prohibited the workers from entering
the factory to work. This is a lockout.