ERISA was passed to regulate employee pension and retirement plans.
a. True
b. False
When the UTSA does not apply, recovery for taking a trade secret:
a. does not exist.
b. may exist for breach of loyalty.
c.may exist for breach of due care.
d.may exist for breach of accounting.
Which of the following contracts would not be governed by the UCC?
a. a contract for dentures
b. a contract for the purchase of an Arabian horse
c.a contract for the purchase of an oil painting for $550
d.a contract for the purchase of an ATR jet
e. All of the above are governed by the UCC.
The ADA prohibits discrimination on the basis of disability against otherwise qualified
applicants.
a. True
b. False
Corporate officers are not liable for violations of the Sherman Act.
a. True
b. False
Under common law, a counteroffer is also a rejection.
a. True
b. False
Which of the following is the general trial court of the federal system?
a. federal district court
b. Court of Claims
c.U.S. Court
d.none of the above
Ted’s Red Hots is a hot dog restaurant that has the shape of a hot dog in a bun, with the
hot dog wearing a white chef’s hat at one en
d.Wally’s is a new hot dog restaurant that has a wiener dog shape with the wiener dog
wearing a white chef’s hat. Ted’s probably has an infringement claim based on:
a. patent appropriation.
b. trade dress appropriation.
c.copyright infringement.
d.any of the above
Precedent is not followed when:
a. the facts of a case can be distinguished.
b. a court believes that a change of law is socially or morally mandated.
c.technology changes.
d.all of the above
The reasonable and prudent person standard is not used for establishing contributory
negligence.
a. True
b. False
Federal district courts are the general trial courts of the federal system.
a. True
b. False
Ralph Pew is the president of a small corporation, Yogurt for You, Inc.The company has
two yogurt stores in malls in Mesa, Arizona. There were 22 employees in the stores in
1993. Pew, facing business startup costs, did not pay Yogurt for You’s portion of the
Social Security taxes (employees did have their shares withheld). Who is liable for the
missing taxes?
a. Yogurt for You
b. Ralph Pew
c.all officers of Yogurt for You
d.all of the above
Section 402A permits suits only by those in privity of contract.
a. True
b. False
The Supreme Court has held that developing a method for creating
something that exists in nature patent laws.
a. is
b. is not
c.cannot
d.should not
The penalty for document destruction under Sarbanes-Oxley is:
a. five years.
b. ten years.
c. fifteen years.
d.twenty years.
Criminal laws:
a. carry fines and/or imprisonment penalties.
b. are enforced by individuals.
c.are generally not enforced by government agencies.
d.are the same as private laws.
e. none of the above
Mattel, Inc.had to recall 19 million toys because it learned that its
manufacturer/supplier in China had used lead- based paint on the toys, a paint that is
prohibited in the United States. Mattel:
a. is not liable to purchasers of the toys for any injuries resulting from the lead because
it did not manufacture the toys or authorize the use of lead paint.
b. is not liable to purchasers because there is no privity of contract.
c.is liable to purchasers as a manufacturer/seller of toys.
d.can escape any liability because it was unaware of the lead paint use.
Grace Owen formed a corporation with three of her friends for purposes of operating a
catering company. Grace used her own checking account to deposit the client payments
and to make distributions of the corporation’s profits to her three friends, who together
owned 50% of the shares, with Grace owning the remainder of the shares. Grace
promised her friends “no meetings, no formalities, we”ll just run the catering business.”
Several wedding guests at a reception Grace’s company catered became ill. Grace had
not purchased insurance. The guests brought suit to recover their medical bills and other
damages from Grace and her three friends. Grace says she has no personal liability for
the bad food that resulted in their illness.
a. Grace is correct; their suit should be against the corporation.
b. Grace is incorrect because of the veil and alter ego theory.
c.Grace is liable, but her friends are not.
d.none of the above
Under the doctrine of sovereign immunity, commercial transactions cannot be
regulated.
a. True.
b. False
Speeding is a breach of duty for negligence purposes.
a. True
b. False
Employee evaluation systems that rank employees in tiers for purposes of raises and
termination violate the Fair Labor Standards Act.
a. True
b. False
The breach of the fiduciary duty by an agent:
a. results in termination of the agent.
b. terminates the agent’s apparent authority.
c.does not terminate an agent’s implied authority.
d.none of the above
Hearsay:
a. is never admissible in court.
b. is unreliable evidence.
c.can be used on cross-examination.
d.none of the above
The directors of Kmart, Inc.voted several years ago to approve a new marketing plan
that involved endorsements by Martha Stewart of Kmart home products such as linens,
paint and decorations. Marketing studies have shown that Martha Stewart was not the
right match for endorsements for Kmart’s customer base. Kmart is now in Chapter 11
bankruptcy. Its shareholders believe the Martha Stewart decision was the cause of the
company’s demise.
a. The shareholders have a cause of action against the directors for violation of the
business judgment rule.
b. The shareholders have a cause of action against the directors for violation of the
corporate opportunity doctrine.
c.The shareholders can have the court order the directors removed for cause.
d.The directors of Kmart are protected under the business judgment rule.
e. none of the above
Which firms would be required to file a 10-K?
a. company with 600 shareholders and $5 million in assets and not listed on national
exchange
b. company with 300 shareholders and $10 million in assets and not listed on a national
exchange
c.company with 700 shareholders and $6 million in assets and listed on a national
exchange
d.all of the above
Day 1: A wires an offer to B Day 2: B receives the offer
Day 3: B phones an acceptance
A states, “Too late. I changed my mind.” Which of the following statements is true?
a. A and B do not have a contract
b. A and B have a contract under common law only
c.A and B have a contract
d.none of the above
Evaluate the following facts and then answer the next two questions.
Day 1 S sends a letter to B with the following: “I will sell you my Play Station 3 for
$150.”
Day 2 B receives the letter and responds, “I will take the Play Station for $150, but
include 3 games.”
S has made a valid offer to B.
a. True
b. False
In an opinion column published in wallstreetbuzz.com, a columnist wrote, “James
Jackson, CEO of Blain Investments, now posting an $8 billion write-down, has robbed
shareholders blind through his accounting slights of hand.Jackson insists that he has
scruples. I don”t know about that but if he does have scruples you can bet they belong
to somebody else.” The columnist:
a. has committed the tort of libel.
b. is protected from defamation liability under the opinion/analysis quasi-privilege.
c.cannot be protected from defamation liability by the opinion/analysis privilege if the
statement was published.
d.none of the above
Cross-elasticity of demand is:
a. the willingness to substitute other products.
b. a factor in determining resale price maintenance.
c.a factor in determining the geographic market.
d.all of the above
The Digital Millennium Copyright Act exempts digital technology from copyright
protections.
a. True
b. False
Which of the following is not a source of private law?
a. lease
b. employment agreement
c.ordinance
d.marriage prenuptial agreement
The Export Trading Company Act of 1982 provides an exception to U.S. antitrust laws
in international markets.
a. True.
b. False
Generally, three judges review a case at the court of appeals level in both the state and
federal levels.
a. True
b. False