The __________ doctrine imposes liability for physical injury to child trespassers
caused by artificial conditions on the land.
a. negligence per se
b. foreseeable trespasser
c. attractive nuisance
d. respondeat superior
Answer:
Under CERCLA which of the following is true if the EPA does cleanup work?
a. The EPA can recover its cleanup costs from responsible parties.
b. The EPA can recover its cleanup costs only from the present owner only.
c. The EPA can recover its cleanup costs only from the owner at the time of disposal.
d. The EPA can recover its cleanup costs from either the present owner or the owner at
the time of disposal, but from no one else.
Answer:
In the Monsanto Co. v. Geertson Seed Farmscase discussed in the text, the court
analyzed the issue of __________, or whether the plaintiffs would suffer a(n)
__________ traceable to a challenged act that would be redressed by a favorable
decision.
a. industry protection, concrete injury
b. national ambient air quality standards, concrete injury
c. standing, concrete injury
d. public nuisance, concrete injury
Answer:
The packaging or dressing of a product may be protected under the trademark laws as
trade dress.
a. True
b. False
Answer:
The __________ is a term referencing the method used for determining the citizenship
of a corporation for purposes of diversity of citizenship.
a. locality determination
b. nerve-center test
c. prime location test
d. conflict determination
Answer:
A valid search warrant must be:
a. supported by an oath and be based on reasonable cause.
b. supported by an oath, and describe in specific detail what is to be searched or seized.
c. supported by an informant.
d. issued at least 24 hours before the search.
Answer:
Which of the following is an example of a hallmark of the fiduciary relationship?
a. Loyalty
b. Subservience
c. Politeness
d. Both loyalty and subservience, but not politeness
Answer:
In CASE 23.3United States Department of Justice v. Sperry (2013), Sperry, the sole
owner of a Subchapter S corporation that filed bankruptcy, made paymentstoother
creditors before paying the corporation’s federal tax obligations. Sperrycountered that
he was released from the tax liens, and claimed the corporationnot himowed the ‘trust
fund taxes.’ The IRS sued. How did the court rule and why?
a. For the IRS, because Sperry was never properly incorporated and was therefore
personally liable.
b. For Sperry, because the Subchapter S corporationnot Sperrywas liable for the tax
obligations.
c. For the IRS. Sperry’s payments and loans triggered personal liability.
d. For Sperry, because the IRS failed to give proper notice before seizing the company’s
assets.
Answer:
Fact Pattern 21-3
Yolanda has filed the registration statement, in connection with a public offering of
stock in ABC Corgi, a company dedicated to the production of clothing and toys
highlighting the highly prized Welsh Corgi breed of dog. The registration statement is
not yet effective. Yolanda would like to move forward with promoting the company as
much as possible. She asks for advice regarding activities in which she could legally
participate. She is particularly interested in making presentations to large institutional
investors.
Refer to Fact Pattern 21-3. Which of the following are true regarding selling efforts to
institutional investors during this period.
a. Such efforts are called roadshows and are legal so long as SEC requirements are
followed.
b. Such efforts are an illegal type of promotion referenced as selling promotions.
c. Such efforts are called concerted sales and are legal so long as the SEC gives prior
approval.
d. Such efforts are simply called felonies and can result in fines as well as jail time.
Answer:
The European Union’s __________ rules are __________, so a former government
official can begin exploiting his connections __________.
a. antitrust, strong, one day he after leaving office
b. criminal, enforceable, one year after leaving office
c. ethical, weak, one year after leaving office
d. ethical, weak, the day he leaves office
Answer:
In United States v. Windsor case referenced in the text, the U.S. Supreme Court struck
down the Defense of Marriage Act, holding that DOMA was an unconstitutional
deprivation of liberty protected by the Fifth Amendment.
a. True
b. False
Answer:
France requires bystanders to try and help those in danger if trying to help will not put
the bystanders at risk.
a. True
b. False
Answer:
Which of the following is an online agreement that appears on a website but does not
require the user to take any action to express his or her consent to the agreement?
a. Click-wrap license
b. Browse-wrap agreement
c. Shrink-wrap license
d. Computer-license agreement
Answer:
In most jurisdictions, there is no quorum unless the holders of at least _____ of the
outstanding shares are present in person or by proxy.
a. 25%
b. 33%
c. 50%
d. 75%
Answer:
Federal diversity jurisdiction exists when:
a. a lawsuit is between citizens of different states.
b. the amount in controversy, exclusive of interest and all costs, exceeds $75,000.
c. either that a lawsuit is between citizens of different states or the amount in
controversy, exclusive of interest and all costs, exceeds $75,000.
d. a lawsuit is between citizens of different states, and that the amount in controversy,
exclusive of interest and all costs, exceeds $75,000.
Answer:
Requiring a person to appear in a lineup does not violate the Fifth Amendment privilege
against self-incrimination.
a. True
b. False
Answer:
Environmental law does not cover land-use regulation.
a. True
b. False
Answer:
A(n) __________ company is a development-stage company that has no specific
business plan or has a business plan to acquire a currently unknown business.
a. illegal
b. bespeaks caution
c. blank check
d. best-efforts
Answer:
Susie has a great farm bordering on a river and plans to build a house on a cliff
overlooking the water. She was also considering building a couple of guest cottages to
rent to vacationers. One day a land conservatory came to Susie and asked her to
designate the land as a pristine area whereby no development or building could take
place. Susie told them to get lost. The next thing she knew, the jurisdiction in which she
lived had passed a regulation permanently prohibiting riverfront owners in her area
from building any structures within one half mile of the river. There had been no such
restriction in her state or county previously, and Susie suspects that the regulation is
part of a plot to force landowners to agree to the request of the land conservatory. Susie
tells her builder to go ahead with plans to construct the home because the government
cannot take land through excessive regulation. Is Susie correct that the government
cannot take land through excessive regulation?
a. Susie is incorrect although if the government action constitutes a taking,
compensation to the landowner must be provided.
b. Susie is incorrect, and no compensation to the landowner is required.
c. Susie is incorrect although she would only be entitled to compensation for any lost
profits she can establish.
d. Susie is correct, and the regulation would be overturned by a federal court.
Answer:
If a company employee chooses to follow orders (and breaks the law) the fact that his
supervisor ordered him to do so is a complete defense at a criminal trial.
a. True
b. False
Answer:
The defense of __________ is available when a trademark user truthfully uses a
competitor’s mark to identify the competitor’s product for the user’s own purposes.
a. nominative use
b. competitive use
c. genericity
d. fair use
Answer:
Rules adopted by a federal agency are published in the:
a. Federal Reporter.
b. Federal Register.
c. Uniform Register.
d. Legislative Reporter.
Answer:
Payment of workers’ compensation is based on fault.
a. True
b. False
Answer:
__________ a security interest involves making it valid as against other creditors of the
debtor.
a. Finalizing
b. Perfecting
c. Organizing
d. Signing
Answer:
Fact Pattern 13-1
Sam, who is age 60, was told by Big Company that he was being laid off. Sam was
offered a severance package of $5,000 if he would waive his rights to sue for age
discrimination under the Age Discrimination in Employment Act. Sam believed that his
age was a factor in the decision to lay him off; but he really needed the money, so he
signed an agreement whereby Big Company agreed to pay him $5,000 and he agreed to
waive his rights against Big Company for age discrimination. Sam was given seven
days to consider whether to enter into the agreement, and the agreement provided that it
was final the date it was signed.
Refer to Fact Pattern 13-1. Does Sam have any rights to sue Big Company for age
discrimination?
a. No.
b. Yes, because although the agreement complied with the Older Workers’ Benefit
Protection Act, Sam has six months in which to renounce the agreement and sue for age
discrimination.
c. Yes, because the agreement did not comply with the Older Workers’ Benefit
Protection Act, Sam can sue the company for age discrimination but only if he returns
the severance payment.
d. Yes, because the agreement did not comply with the Older Workers’ Benefit
Protection Act, Sam can sue the company for age discrimination without having to
return the severance payment.
Answer:
As defined by the UCC, “good faith” involves the observance of objective reasonable
commercial standards of fair dealing but there is no requirement as to honesty in fact.
a. True
b. False
Answer:
In CASE 14.1 Riley v. California (2014) while in custody after an arrest, defendant
received phone calls from a number identified as “my house.” The police inspected the
information on defendant’s phone and ascertained his address, secured a warrant, and
recovered contraband which was introduced in the case against the defendant. The main
issue on appeal before the U.S.SupremeCourt waswhether police may search the
contents of an arrestee’s cell phone without a search warrant.
a. True
b. False
Answer:
Fact Pattern 20-1
Tonya is the president of Big Corporation. Big Corporation is looking for land on which
to build a new facility. Tonya locates suitable land, but purchases it for herself with
plans to sell it at a profit at a later date. Rick, the majority shareholder of Big
Corporation hears about Tonya’s purchase and complains to her about it. She tells Rick
that she viewed and purchased the land on her own time and that she did not breach any
duties owed to the corporation. Rick tells her that she should reconsider and that he
plans to discuss the matter with the rest of the board.
Refer to Fact Pattern 20-1. Which of the following is a widely used test for determining
whether an opportunity belongs to a corporation?
a. The line-of-business test
b. The time-spent test
c. The corporate-interest test
d. The officer-corporate equilibrium test
Answer:
TheNat’l Treasury Emps. Union v. Von Raabcase referenced in the text, involved the
testing of U.S. Customs Service employees in line for transfer or promotion to certain
sensitive positions involving drug interdiction or the handling of firearms. How did the
U.S. Supreme Court rule?
a. That drug testing would be allowed only if the government could establish evidence
of a drug problem among that group of customs employees.
b. That the drug testing was illegal and unconstitutional.
c. That the drug testing was justified by the need for national security and by the
extraordinary safety hazards attendant to the positions involved.
d. That the drug testing would be allowed because the customs employees, as public
employees, had no greater rights than private employees.
Answer:
Under the theory of __________, a company can be held liable for violations of
__________ law by its employee, even if a manager told the employee not to violate
the law.
a. vicarious liability, civil
b. aided-in-the-agency, civil
c. vicarious liability, criminal
d. disclosure of principal, civil
Answer:
Greg has too much to drink at a local bar. He yells out that Lynette, who was in the bar
and had just turned him down for a date, is loose with her affections and has even been
guilty of stealing money from the wallets of her dates. Those allegations are untrue. In
fact, Lynette is a Sunday school teacher who does not drink and was only in the bar
accepting donations for a local charity. Lynette promptly slaps him, and he pushes her
away. Unfortunately for Greg, a police officer is present in the bar and arrests Greg.
Based on the altercation, Greg pays a hefty fine and spends 24 hours in jail for violation
of the jurisdiction’s criminal battery statute. The next week, Greg receives a civil
complaint filed by Lynette for defamation and a civil cause of action for battery. Greg
says that he already paid for the offense and that he should not be prosecuted twice.
What should Greg do?
a. Greg should file a motion to dismiss Lynette’s suit which should be granted because
of the bar against double jeopardy.
b. Greg should file a motion to dismiss Lynette’s suit which should be granted because
of the bar against double jeopardy, and he should also sue Lynette for malicious
prosecution.
c. Since he can be held either civilly or criminally liable, but not both, Greg should
consent to proceed with the civil action and move to have the criminal conviction set
aside because the civil action will not look as bad on his record.
d. He should try to settle with Lynette because the criminal conviction is no defense to
civil liability.
Answer:
The __________ is a program developed by the industrialized countries to assist
developing nations by improving their ability to export.
a. World Trade Organization
b. Developing Nations Schedule
c. Harmonized Tariff Schedule
d. Generalized System of Preferences
Answer: