If Bill Gates goes into a car dealership and buys every car on the lot for sticker price,
the dealer has suffered no contractual detriment because he’s in the business of selling
cars and got full price.
Actual trade secrets of a company are exempted from discovery and need not ever be
disclosed.
A security can exist in the absence of a formal certificate evidencing the investment and
also in the absence of an interest taken in the tangible assets of the company being
invested in.
Only current government officials are included in the anti-bribery restrictions of the
Foreign Corrupt Practice Act.
The forfeiture provisions under the Racketeer Influenced Corrupt Organizations Act are
generally considered to be the Act’s most effective penalty.
The EPA may enforce its rules and regulations through criminal prosecutions.
One significant benefit of an employer completing an IRS Form SS-8 is that even if the
employer does in fact misclassify a worker, the proper completion of the form may
evidence a good faith effort by the employer reducing or even eliminating IRS penalties
for misclassification.
Wayne Lewis wants to start a sole proprietorship named Lewis Plumbing Services.
Because it will be a sole proprietorship, Wayne has no filing requirements other than
obtaining the appropriate business license from the local and state government where
the business will be located in.
George has assigned the lease on his apartment to Brad for a six month period. Three
months later, the apartment is infested with cockroaches. When Brad complains to the
landlord, the landlord informs him that his agreement is with George and only George
has the right to enforce habitability and quiet enjoyment complaints. Brad must have
George make the complaint to the landlord.
If an employee has a retirement savings account, the employer promises to pay a
monthly sum to employees ordinarily based on length of service and the employee’s
final salary at the date of retirement.
Bankruptcy is the only option for businesses who want to not be liable for their debts.
Jethro is having a sweet sixteen birthday party for his daughter Kate in his backyard. To
make the party special, he hires Tony to put on a fireworks display. He found Tony in a
classified ad in the local newspaper. In the written contract, Jethro simply instructs
Tony to begin the display at 8:00 pm, make it last 16 minutes and to make it spectacular
but no safety parameters are mentioned or discussed. During the finale, one of the
rockets malfunctions and explodes amidst the party guests, injuring 8 people. Jethro has
no liability because Tony was an independent contractor.
The Insider Trading and Securities Fraud Enforcement Act created substantial civil
penalties but no criminal penalties for those committing insider trading violations.
General partnerships are pass-through entities regarding taxation, however; limited
partnerships are not pass-through entities for taxes.
Altering people’s values is one of the objectives of an organizational ethics program.
Banks that become owners of contaminated property through foreclosure are not liable
for cleanup costs.
All bilateral contracts are express.
The Federal Trade Commission Act was the first antitrust act.
Ownership of personal property is governed by federal law.
Grimshaw v. Ford Motor Company is often cited as a failing of the management’s hand
approach to corporate social responsibility.
Before an individual is allowed to file for bankruptcy he must complete a short credit
counseling seminar.
Your professor is in the middle of her lecture when the dean from a competing school
walks into class and offers her a position at his school at double her present salary.
When she asks when the position will start, he says tomorrow. Your professor looks at
the class, says goodbye and walks out to start cleaning out her office. Your school can
sue your professor for tortious interference with an existing contractual relationship.
MFK Corp. wants to raise capital and is considering an offer of bonds and debentures.
They are not sure of a particular disclosure requirement so they pose their question to
the SEC and they request an interpretation letter. If the SEC issues an interpretive letter
addressing MFK’s question and MFK follows the statements contained in the letter,
MFK will not be able to be penalized by the SEC should the advice incorrect.
At trial, the judge decides the facts and the jury decides the law.
Gas station owners agreeing on the price per gallon is not a violation of the Sherman
Act.
Expressly false statements can result in breach of warranty lawsuits.
The United States is bound to follow the judgments of the International Court of
Justice.
When Ford runs a commercial stating that Fords are better than Chevy and that “you’ll
be happier if you buy a Ford”, Ford is committing trade libel.
Kathy and Tom have entered into a contract in which Mike has been named and
included as an intended beneficiary by Kathy. Should Tom or Kathy breach the contract,
Mike may sue both Tom and Kathy for breach of contract.
Regarding defamation, a qualified privilege exists in courtrooms and legislative
hearings.
The Social Security Act is funded through mandatory employment taxes paid by both
the employer and employee.
In Hayes v Zoological Society of Cincinnati, Hayes was demoted and then fired after
reporting dangerous conditions at the defendant zoo and then testifying for Stober, a
fellow employee injured at the zoo. She sued based on retaliation. The court found:
A.for the Zoo because Hayes was not a zoologist and therefore not qualified to judge
whether conditions were safe or not regarding wild animals.
B.for the zoo because the injury to Stober, Hayes’s fellow employee resulted from her
assumption of risk and contributory acts by trying to feed a grape to a bear.
C.for Hayes because the Federal Whistle-Blower Act expressly provided protections for
employees dealing with institutions directly dealing with the public and the zoo could
not justify the demotion and firing independent of retaliation.
D.for Hayes because she reported safety violations that could harm members of the
public as covered under Ohio law and the zoo could not justify the demotion and firing
independent of retaliation.
What is the purpose of the Madrid Protocol?
A.set standards for international trials
B.make the trademark process more uniform and single-sourced for multinational
companies
C.ensure copyright protection in foreign jurisdictions
D.limit abilities of multinational companies to file for trademark protections
Modern Corporation operates a steel mill. They have never contributed anything to the
local community and they knowingly pollute both the air and river that runs by their
mill. Their reasoning is that the cost to install pollution control devices would diminish
their profits and they don’t support the community because they provide jobs and don’t
think they owe anything else to the citizens in their area. Donating to the community
would also diminish profits. Which theory of corporate social responsibility are they
exhibiting?
A.the narrow view a/k/a invisible hand theory
B.the moderate view a/k/a government’s hand theory
C.the hybrid view a/k/a citizen’s hand theory
D.the broad view a/k/a management’s hand theory
Which piece of legislation prohibits denying an applicant credit because of
discrimination?
A.Equal Credit Opportunity Act
B.U.S. Constitution
C.Fair Credit Act
D.Truth in Lending Act
Which of the following is not an option available to a general partnership seeking
capitalization?
A.borrowing money from one or more of the partners
B.selling the right to a percentage of the profits to an investor
C.selling ownership rights through the public markets
D.borrowing money from a commercial lender
Security transactions involving the original and reissuance of securities by a business to
raise capital are called the:
A.primary market.
B.secondary market.
C.preferred market.
D.common market.
A general partnership may be formed by:
A.oral agreement.
B.written agreement.
C.either oral or written agreement.
D.either oral, written or implied agreement.
Mike has sued Kathy for injuries received in a traffic accident. If Kathy fails to respond
to the complaint and summons within the proper time limit:
A.Mike wins based on a summary judgment.
B.Mike wins based on a default judgment.
C.Mike wins based on a judgment as a matter of law.
D.nothing happens, Kathy is not required to respond to a complaint and summons.
Voir dire:
A.is a form of discovery.
B.is the process of choosing a jury.
C.is a motion made after trial seeking an appeal.
D.is the process of notifying a defendant that they have been sued.
The Equal Employment Opportunity Commission was created by the:
A.Civil Rights Act of 1964.
B.Americans with Disabilities Act.
C.Lilly Ledbetter Fair Pay Act.
D.Executive Order 11246 creating Affirmative Action.
A local real estate developer wants to build a new office park on a piece of forested land
that is home to many spotted owls, an endangered species. The office park is expected
to bring new companies and jobs to the area. You are particular fond of the owls and
want to see them thrive. Is there anything that you can do to stop construction?
Aimee is a 21 year old college student. Her parents are worried about her being away
from home so they tell her that if she goes both the Fall and Spring semesters without
drinking alcohol, they will buy her a new car. Aimee does in fact go both semesters
without drinking:
A.Aimee gets the car because she performed exactly as required under her parents offer.
B.Aimee gets the car because a quasi contract is formed due to her parent’s unjust
enrichment.
C.Aimee is not entitled to the car because her benefit far outweighed her detriment.
D.Aimee is not entitled to the car because she’s healthier so she suffered no detriment.
As a result of the AIG bailout, the U.S. Government received a/an ________ stake in
the company.
A.50%
B.60%
C.70%
D.80%
Which of the following would not be considered tangible?
A.a car
B.oxygen
C.the right of ownership
D.the pen or pencil you are using
Home Gardening Corp., a hardware and gardening chain has ordered 1000 bags of red
cedar mulch from Mulch Masters, Inc. Delivery is to be made at the Home Gardening
warehouse in Sioux City, Iowa. When the goods arrive in Sioux City, Home Gardening
discovers that Mulch Masters has had delivered 1000 bags of black licorice mulch.
What option or options does Home Gardening have?
Which of the following would not generally be formed as an LLP?
A.three frat brothers opening a bar
B.two attorneys operating a law firm
C.four licensed physical therapists running a clinic
D.twenty CPAs running an accounting firm
Which of the following is not a component that needs to be shown to authorize use of a
long-arm statute?
A.the defendant must transact business within the plaintiff’s state borders
B.the defendant must have violated a plaintiff’s state statutory law
C.the defendant must have committed negligence resulting in loss to the plaintiff within
the plaintiff’s state borders
D.the defendant owns property in the plaintiff’s state
Which of these is not a purpose of bankruptcy?
A.offer a fresh start to the debtor
B.punish the debtor
C.create a way for creditors to recover the debt
D.prevent creditors from gaining an unfair advantage over one another
Workers at Jones Corporation have been on strike for three months due to an impasse
based on salary and benefits. When the strike is concluded:
A.the workers must all be rehired but they are not entitled to back pay.
B.the workers must be rehired and they are entitled to back pay.
C.the employer is not required to rehire the employees as long as back pay is paid as
severance.
D.the employer is not required to rehire the employees and no back pay is required to
be paid.
Which of these is not a prominent group that administers arbitrations?
A.International Chamber of Commerce’s International Court of Arbitration (ICC)
B.World Arbitration Organization (WAO)
C.London Court of International Arbitration (LCIA)
D.American Arbitration Association (AAA)
Cynthia hates writing term papers and reports so when she receives an assignment to
write a paper for her law class, she calls her friend Stephanie and agrees to pay
Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a
paper from a small remote law journal that publishes faculty written papers from
throughout the world on-line. When the plagiarism is discovered, an infringement claim
is brought. Cynthia is guilty of:
A.nothing because Stephanie infringed on the author’s/publisher’s copyright, not her.
B.vicarious infringement.
C.indirect/contributory infringement.
D.nothing because once a work is published on-line, the fair use doctrine permits
unlimited use of the work without attribution.
The National Park Service is considering expanding one of their ranger stations at
Yellowstone National Park. The ranger station is located on a side of mountain and is
primarily used for tracking animal populations. The National Park is unsure what the
expansion would to do to the environment. Before they are able to start construction
they must categorize the expansion under NEPA as:
A.no category required.
B.environmental impact statement.
C.categorical exclusion.
D.environmental assessment.
In State Farm Mutual v. Campbell, the court laid out a three part analysis for
determining the constitutionality of a statute regulating punitive damages. Which of the
following is not one of the three criteria specified by the court?
A.the degree of reprehensibility of the defendant’s misconduct
B.the disparity between the actual or potential harm suffered by the plaintiff and the
punitive damages award
C.whether the harm resulted from a criminal act or a civil act
D.the difference between the punitive damages awarded and the civil penalties
authorized or imposed in similar or comparable cases
When Enron’s top executives were subpoenaed to testify before Congress, each
exercised their constitutional right against self incrimination except:
A.Kenneth Lay, founder and Chief Executive Officer.
B.Jeffrey Skilling, Chief Operating Officer.
C.Andrew Fastow, Chief Financial Officer.
D.Rick Clausey, Chief Accounting Officer.
Jonathan’s Soccer Mart (JSM) advertises a pair of boots on sale. The normal price is
$150.00 and the sale price should have read $135.00 but the advertisement says $15.00.
Josh walks into the store, picks up a pair of the boots and puts $15.00 on the counter
demanding to purchase the boots at the advertised price. Which of the following is
correct?
A.JSM must sell the boots at the advertised price
B.Josh has accepted JSM’s offer to sell
C.JSM has made an ambiguous offer
D.Josh has made an offer
A utility or business method patent will last for:
A.14 years from the date of the filing of the application with the United States Patent
and Trademark Office.
B.14 years from the date of the approval of the application granted by the United States
Patent and Trademark Office.
C.20 years from the date of the filing of the application with the United States Patent
and Trademark Office.
D.20 years from the date of the approval of the application granted by the United States
Patent and Trademark Office.
The ultimate arbiter of federal law is:
A.the Senate.
B.the President.
C.the U.S. Supreme Court.
D.the full Congress.
The Uniform Guidelines on Employee Selection Criteria says that discrimination is
likely if the pass rate of any protected class is less than ________ of the pass rate of the
most successful race, sex or other protected class tested.
A.50%
B.60%
C.70%
D.80%
Mitigating circumstances:
A.if proven, may excuse a defendant from an alleged crime.
B.if proven, may be applied to reduce a defendant’s punishment.
C.are the elements of a crime which must be proven at trial.
D.refer to the procedures that must be followed when investigating a crime.
When is a monopoly illegal under the Sherman Act?
A.when it has horizontal restraints
B.when it is acquired or maintained through prohibited means
C.all monopolies are illegal under the Sherman Act
D.The Sherman Act does not address monopolies
Sharon has contracted with Craig to buy Craig’s car. She will pay $5,000 in cash and he
will provide the title and registration. They agree to meet at 10:00 am on Wednesday to
exchange their consideration. Unfortunately, Craig dies Tuesday evening.
A.the contract automatically terminates due to impossibility caused by Craig’s death
B.the contract automatically terminates due to impracticability caused by Craig’s death
C.the contract is still valid and Craig’s heirs must go through with it based on the agreed
terms
D.the contract is still enforceable, however, Craig’s heirs may renegotiate the terms
because they are now the owners of the car
Which of the following requires the most disclosures and is the most lengthy and
complex to create?
A.an LLC
B.an LLP
C.a limited partnership
D.franchise
Sophie is renting a home from Robert. There is no written lease and the agreement is
that Sophie will pay rent on the first of every month. Either party may terminate the
agreement with thirty days notice. Sophie has a:
A.life estate.
B.periodic tenancy.
C.tenancy for years.
D.easement by grant.
Mike worked for Frank’s Pizza as a driver and is an agent. His duties consisted of
making deliveries along a designated route. One day Mike decided to see his girlfriend,
Jackie, who lived 50 miles out of his pizza route. While driving to his girlfriend’s, Mike
injured a pedestrian, Chuck. The accident was caused because of Mike’s negligent
driving. Chuck is now suing both Mike and Frank’s for personal injuries. Under the
circumstances:
A.Frank’s is liable under the doctrine of respondeat superior.
B.Frank’s is never liable for the negligent torts of its agents.
C.Chuck can recover damages from both Frank’s and Mike.
D.Frank’s is not liable because Mike’s was on a frolic of his own.
An administrative law judge is typically an ________ who is employed by the agency
to adjudicate disputes.
The Truth in Lending Act applies to creditors who are _______ engaged in extending
credit for goods and services.
What process will the courts use to resolve a dispute between principals of a limited
partnership in the absence of a written partnership agreement?
A contract formed from a party’s actions rather than their words is called a/an ________
contract.
What constitutes a meeting of the minds for antitrust laws? Why is it important?
What is the effect of the employment-at-will doctrine and generally what are the
exceptions to its application?
Proposed agency rules are published in the _____.
Olivia works as an advertising executive for a large public relations firm in New York.
Her boss gives her tickets to attend a formal event in Washington D.C. at which many
of the firm’s clients will be in attendance. He expects her to represent the firm and
generally solidify client relations by her attendance. While mingling with the attendees,
she slips on a spilled drink and is severely injured in the fall. If Olivia files for workers’
compensation, will she be eligible for benefits?
Marcia is an accountant for a large corporation and after meeting with the company’s
CFO, has falsified records inflating the company’s quarterly profits making them
acceptable to the bank that the corporation has applied to for a commercial loan. Under
the tenants of the Model Penal Code, what must be proven for her company to be
criminally liable?
If a 17 year old enters into a contract to purchase a car, that contract is ________ at the
minor’s option until they reach the age of 18.
When one party has failed to perform his or her duties under a contract that party is said
to be in total _______.
The articles of incorporation for Pedal Power, Inc. have been approved and registered
by the state. What needs to be done at the initial organizational meeting?
Business Trusts are also known as ________ trusts.
What effect has mandatory sentencing guidelines had on the judiciary and criminal
punishment in general?
Lost revenue or profits, whether actual or potential is called ________ harm.