Corporations as a business entity cannot be charged with a crime, only the individuals
that make up the company’s officers and board.
When a corporation issues securities under a nonpublic offering or safe harbor
exemption from SEC regulations, they are free of the burden of supplying any
disclosures to the investor due to the investors experience and knowledge of the
process.
Only business are able to file for Chapter 13 bankruptcy.
In a shipping contract, the seller is obligated to deliver the good into the “hands” of the
buyer.
In order to file a lawsuit to enforce an environmental regulation, an individual must be
authorized to do so by the statute.
George has entered into a contract with Mark to supply raw materials to Mark’s factory.
The contract does not contain an antidelegation clause. George then delegates his duty
to supply the raw materials to Wayne, a competitor of Mark. This is a valid delegation.
If done properly, sellers may limit a buyer’s remedies in all situations.
The Clean Air Act requires a new permit when minor modifications are made to a plant
by a current permit holder.
Kate owns 1000 shares of stock in a corporation. As an owner of the corporation by
virtue of her stock ownership, if she enters into a contract on behalf of the corporation
the company will be bound by her actions.
Wrongfully revoking an acceptance will constitute a breach of contract by the buyer.
If a student leaves a book bag in class by accident and the professor takes possession to
safeguard the bag, a bailment has been formed.
The International Court of Justice primarily hears civil and criminal cases.
Both managing members and controlling members owe a fiduciary duty to other
members.
Mel is under contract with a textbook publisher to write a teachers manual to
accompany a new textbook. The contract states that the instructor’s manual is to be
completed by August 1. On July 1, the publisher calls Mel and asks for an update. Mel
states that he’s working hard and making progress. He then states that the August 1
deadline is “doable but it’s going to be tough”. Based on Mel’s statement the textbook
publisher may claim an anticipatory repudiation and find another author to complete the
project.
Impossibility of performance is subjective meaning that one of the parties may
unilaterally decide that performance is impossible, thus discharging the contract.
Disparagement has to do with industries, companies and corporations and not
individuals.
In American Needle Inc. v. National Football League, the 32 football teams were
treated as a single entity because they belong to the same sports league.
When an accord and satisfaction is agreed to, the original obligation subject to the
accord is immediately discharged.
In Butters v. Vance International Inc, Vance International was hired to provide security
for the Saudi royal family while they were in California. Butters was employed by
Vance International as a security officer. She was assigned to the Saudi detail and
worked occasionally as an acting supervisor in a security command post. Vance
International recommended to the Saudis that Butters be promoted to a full rotation in
the command post. The Saudis rejected this recommendation on their belief that it was
against Islamic law to have a woman in the command post. Butters sued for gender
discrimination for the loss of promotion. Vance International argued that they were
immune under the Federal Sovereign Immunities Act because they were carrying out
the orders of a foreign government. The court found that:
A.Vance International was not immune because the discrimination took place on
American soil.
B.Vance International was not immune because the Saudis waived immunity by hiring
an American security company.
C.Vance International was immune because the Saudis were performing an act peculiar
to a sovereign and not a commercial activity.
D.Vance International was immune because U.S. courts recognize the jurisdiction of
Saudi’s laws for Saudi nationals in the U.S.
Karl is a driver for Arnold’s Appliance Store and delivers appliances to customers. One
day, Karl negligently secures a washer and dryer in the back of his truck and while
driving, the washer falls out of the truck. Jan, driving behind the truck, sees the
appliance flying at her and swerves into a telephone pole. Which of the following is
correct?
A.Karl, but not Arnold’s is liable
B.Both Karl and Arnold’s are liable
C.Arnold’s, but not Karl is liable
D.no one is liable, it was an accident
What is the role of the International Court of Justice?
A.settle legal disputes submitted to it by member states
B.set rules and standards for international arbitrations
C.hear cases on war crimes and crimes against humanity
D.interpret legislation drafted by the United Nations
Which of the following would not be considered a real estate fixture?
A.an area rug laid out in the living room with double sided tape to keep it in place
B.a chandelier hanging in the dining room
C.a dishwasher installed under a kitchen countertop
D.wood paneling in the den
Oscar is speeding and driving inattentively when he runs into Felix who is driving very
cautiously. As a result of the accident, Felix’s car needs $2,500 worth of repairs and
Felix loses a weeks salary because he had to take off from work to recover from injuries
sustained during the crash.
A.both the repairs and the lost wages are compensatory damages
B.the repairs are compensatory damages and the lost wages are consequential damages
C.the repairs are consequential damages and the lost wages are compensatory damages
D.both the repairs and the lost wages are consequential damages
The Communications Decency Act of 1996:
A.redefined obscenity standards for the motion picture industry.
B.redefined obscenity standards for the radio and television industry.
C.made Internet Service Providers liable, as publishers, for content placed on their
website even by independent and anonymous contributors.
D.provided Internet Service Providers liable with immunity from defamation liability as
publishers, for content placed on their website even by independent and anonymous
contributors.
Who is typically empowered by the states to protect consumers from deceptive trade
practices?
A.the governor
B.the state bureau of investigation
C.the local police
D.the state attorney general
The purchase and sale of issued securities between investors is called the:
A.primary market.
B.secondary market.
C.preferred market.
D.common market.
In a delegation situation, the nondelegating party is called the:
A.obligee.
B.delegate.
C.delegator.
D.obligor.
Bill is a lab technician and in charge of safety inspections and injury prevention due to
faulty equipment at a university chemistry lab. One morning, as a result of his
inspection, Bill discovers a gas burner with a broken valve. Bill gets distracted and fails
to put an “OUT OF ORDER/DO NOT USE” sign on the faulty burner. When the
morning class arrives, Halle uses the faulty burner and is burned when it catches fire.
Bill’s negligence is based on:
A.nonfeasance.
B.misfeasance.
C.negligence per se.
D.res ipsa loquiter.
What is the major difference between domestic and international arbitrations?
A.the different arbitration rules between the arbitration organizations
B.international arbitration awards have wide enforceability in many countries
C.international arbitration awards have limited enforceability in many countries
D.American courts do not recognize the validity of international arbitration
In American Medical Association v. United States Internal Revenue Service the IRS had
proposed a rule that made changes to the way the allocation of dues and memberships
were taxed using a seven factor test. After the comment period the IRS revised the rule
to a three factor test that was published as final. The AMA claimed that the rule was
invalid because there had been no comment period for the revision. The court held that:
A.the IRS should have given proper notice of the revision. Because they had not done
so, the new rule was invalid.
B.the IRS should have given property notice of the revision but it did invalidate the rule
because the IRS is not required to go through formal rule making procedure.
C.the IRS did not need to give public notice of the revision because it was a logical
outgrowth of the original rule.
D.the IRS did not need to give public notice because the new test was based on the
same public policy as the original rule.
The Takings Clause is found in the Constitution’s:
A.First Amendment.
B.Fifth Amendment.
C.Eighth Amendment.
D.Fourteenth Amendment.
A commercial airliner flying across the Atlantic Ocean suddenly disappears from radar.
There is no inclement weather nor were there any other planes in the area. Nothing at
all showed on radar at the time the plane disappeared. A day later, a fishing boat
reported debris from an airplane and investigators determined that the plane crashed
into the ocean. There were no survivors. The plane itself is now two miles under water
and only small floating objects remain. The “black box” that might provide evidence is
in the fuselage two miles down and is not recoverable. Further investigation shows that
the plane had had all proper maintenance with no problems or concerns and that the
flight crew was experienced, sober and rested prior to the flight. Karl’s wife was a
passenger on the plane and he wants to sue. How can he successfully bring a law suit
for negligence?
Title VII applies to private sector employers with:
A.10 employees or more.
B.15 employees or more.
C.20 employees or more.
D.25 employees or more.
Which of the following is intellectual or intangible property?
A.oxygen
B.copyrights and patents
C.a car
D.a tree
Who sets the water quality standards for the navigable waters in a state under the Clean
Water Act (CWA)?
A.states
B.Congress
C.the Waterways Protection Agency
D.the U.S. Army Corps of Engineers
Which of these agreements apply to copyrights?
A.Madrid Protocol
B.United Nations Intellectual Property Accord
C.Berne Convention
D.Paris Convention
The reorganization plan is unique to what type of bankruptcy filing?
A.Chapter 7
B.Chapter 11
C.Chapter 12
D.Chapter 13
Lindsay is a sprinter on the school’s track team. If she is confronted by a man with a
cast on his leg who is threatening her with a knife and she kills her assailant during a
brief skirmish, claiming self defense would most likely be a successful defense if:
A.she is confronted on campus in front of the administration building.
B.she is confronted in her home.
C.she is confronted in a dark parking lot while walking to her car after class.
D.she is confronted in the hall of the business building.
The color or shape of an item, if distinctive, is a:
A.trademark.
B.trade dress.
C.copyright.
D.patent.
The Small Business Franchise Act provided franchisees each of the following
protections except:
A.the right to limited liability should the franchise fail as long as good faith, care and
loyalty can be proven.
B.a required 30 day period for the franchisee to cure contract defaults.
C.freedom to work outside of the franchise as long as the franchisee does not work in
competition with the franchise.
D.the right to purchase materials from vendors cheaper than the franchisor as long as
the quality is comparable.
Stan and Frank have started a general partnership. Stan has contributed 95% of the
startup capital and has the business experience and contacts while Frank’s primary
contribution is labor necessary to operate the business. Management decisions are
jointly made. At the end of the year, the business has shown a $100,000 profit. They
have no formal written partnership agreement.
A.Stan is entitled to $95,000 and Frank gets $5,000
B.RUPA mandates that each get $50,000
C.RUPA mandates that Frank be paid a fair amount for his labor contribution and the
remaining profits be split with 95% going to Stan and 5% going to Frank
D.RUPA mandates that Frank be paid a fair amount for his labor contribution and the
remaining profits be split equally between Stan and Frank
In which case did the Supreme Court hold that a unilateral boycott does not fall under
the Sherman Act?
A.Greyhound v. International Business Machines Corp.
B.United States v. Colgate
C.United States v. Grinnell
D.Covad Communications Co. v. BellSouth Corp.
The Securities Act of 1933 focuses on the:
A.primary market.
B.secondary market.
C.preferred market.
D.common market.
What is the standard that an individual must meet in order to file for Chapter 7
bankruptcy?
A.means test
B.threshold level of debt
C.length of time of debt
D.attempts to repay under Chapter 13
In Hauter v. Zogarts Hauter received a “Golfing Gizmo” that was made by Zogarts as a
present. The device was a golf ball attached to string that a user could hit with club. The
box that it came in stated, “completely safe, ball will not hit player.” Hauter had read
the safety manual and used the product a dozen times when he hit the ball too low and
was struck in the head with the ball, causing serious injury. Hauter sued for breach of
warranty. Zogarts argued that the photos of the man using it properly were a disclaimer
and that it was only “completely safe” when used like the photo. The court held that:
A.Zogarts was not liable because the photo was a disclaimer of the express warranty.
B.Zogarts was not liable because Hauter was not using the product properly.
C.Zogarts was liable because they breached the implied warranty of merchantability
because the product could not be used to practice golf safely.
D.Zogarts was liable because they failed to put an age restriction on their product.
The “effects test” is utilized:
A.to determine the amount of damages a defendant must pay the plaintiff.
B.by the U.S. Supreme Court to decide whether to accept a case for review.
C.by a federal court to determine whether state precedent should apply to a case they
are adjudicating.
D.to establish personal jurisdiction over an out-of-state defendant in certain cases when
minimum contacts do not otherwise exist.
If Continental Tires agreed to purchase all of the rubber that a particular Brazilian
rubber plantation could produce, this would be:
A.an output contract.
B.an input contract.
C.a requirements contract.
D.a necessities contract.
When is formal agency rulemaking used?
A.only if the enabling statute requires it
B.if the agency believes that a proposed rule will be controversial
C.when required by the Administrative Procedures Act
D.any time an agency makes a new rule
Robert is a wealthy businessman who wishes to purchase a particular property.
Realizing that the price might become inflated if his name is made known, he asks Faye
to negotiate the purchase of the property on his behalf. Faye is the general manager of
Robert’s east coast operations. Faye reports directly to Robert and is supervised in all
respects. Faye is told to tell Philip, the property owner, that she represents someone but
she’s told not to specify who she works for. The agency would be described as:
A.partially disclosed.
B.disclosed.
C.undisclosed.
D.indemnified.
Jon works for a major bank. The revised employee handbook that he received five years
ago says that all employees with 25 years of service will receive a retirement party. He
is about to hit 25 years of service and has announced his retirement. His manager tells
him that the company, based on his years of service, will throw him a party and present
him with a gold watch. Jon retires on his 25th anniversary and his manager announces
that the company will not throw the party or give him the watch.
A.because of past consideration, no party or watch is owed
B.the company is required to throw the party but no watch is owed
C.the company is required to present him with the watch but no party is owed
D.the company is required to present him with the watch and throw him the party
Business trusts are run by:
A.members.
B.managers.
C.directors.
D.trustees.
Bob has inherited a small home in Wyoming from his deceased Uncle George. Bob has
no desire to live in Wyoming but he enjoys going up to his Wyoming property to fish
for two weeks every fall and spring. George’s lawyer has agreed to have the home
secured when Bob leaves and to have it opened when he’s planning to visit. George’s
lawyer, without asking or informing Bob, has suggested to his freeloading brother Alan
and Alan’s wife Judith that they stay at Bob’s Wyoming place and simply vacate just
before Bob shows up which they do. They live there acting like the owners for
forty-eight weeks every year. The statutory period for adverse possession in Wyoming
is ten years. After twelve years Alan and Judith file for ownership under Wyoming’s
adverse possession statute.
A.Alan and Judith will be successful because they have lived there for over the required
ten years
B.Alan and Judith will be successful because they have lived there for over the required
ten years and they were open, notorious and visible
C.Alan and Judith will not be successful because one cannot become the owners by
adverse possession if you are there without the owner’s permission
D.Alan and Judith will not be successful because their control of the property was not
exclusive or continuous
Offering or trading ownership interests in corporations is governed by:
A.state laws.
B.federal laws.
C.the Revised Model Business Corporation Act.
D.common law.
Floyd has lived in his residence for three years when new neighbors move in. Soon
afterward he starts to smell hideous odors emanating from the new neighbors home. It
turns out that they have started a large compost heap that they plan to use as fertilizer
for their spring and fall planting. Even with his windows closed and the air conditioning
on, he can’t stop the smell from permeating his home. If he files in court claiming a
nuisance, what standard will the court use and how is it applied?
In some special types of cases such as divorce, the defendant is instead called a
_______.
Water rights are also known as ________ rights.
The expiration date of a corporate bond is also called its _______.
Alan lives in a beach front home and one morning discovers an adult woman who has
washed up on shore and is unconscious. Alan takes her into his home and administers
aid to her. She awakens after a few hours but has amnesia, not knowing who she is or
how she ended up washed ashore on his property. Alan cares for her for two weeks
when her memory returns. She fell overboard while sailing with her wealthy parents on
their yacht. She tells him that her name is April and she provides him with contact
information for her parents. Naturally, when Alan calls they are ecstatic. They tell Alan
that they will fly in to pick her up the next day and that he should tally up his expenses
and that they will reimburse him for his costs. When they arrive, Alan gives them the
cost sheet which they refuse to pay. Does Alan have any rights against the parents?
Does Alan have any rights against April?
A trial without a jury is called a ________ trial.
A court order to refrain from performing a particular act is known as _______.
Name and discuss the four sources administrative law.
Explain the similarities and differences, if any, with regard to tax treatment of LLCs and
LLPs.
If terms are left open in a sales contract, the UCC will complete the contract by
inserting ________ to make the contract enforceable.
A contract that is so blatantly unfair that it shocks the objective conscience would be
rendered unenforceable and subject to the defense of _______.
As a result of the Enron scandal, Congress passed the ________ Act increasing
management responsibilities and liabilities regarding those involved in the finances of
public companies.
The Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act is commonly called the ________ Act.
Seller lists his car on Craigslist “as is” and “with all faults” in bold, conspicuous letters
in the advertisement. Seller knows that the brakes are faulty. Buyer purchases the car
and is later injured when the brakes fail and the car is wrecked. Did Seller limit his
liability against Buyer in a lawsuit by using the term “as is”?
The Sherman Act prohibits ________ by a business to gain monopoly power.
The EPA has identified a new hazardous waste site. What should its initial steps be to
clean up the site?
Alan drives drunk and causes a collision killing Toni. When Toni’s grandmother hears
the news she has a heart attack and dies. Can Alan be successfully sued for negligence
in causing the grandmother’s death?
A deceptive practice is that one that misleads a ________ consumer and where the
conduct resulted in some sort of detriment to the consumer.
Casey’s identity was stolen. The thieves stole lots of money and took out a loan in
Casey’s name. She notified all the necessary banks and agencies as soon as she
discovered the identity theft. Is Casey’s credit protected in this situation?