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A(n) __________ is created when two or more persons agree to place their money,
labor, or skills in a business and to share the profits and losses.
a. sole proprietorship
b. general partnership
c. S partnership
d. C corporation
Answer:
The Statute of Frauds requires certain types of contracts to be evidenced by some form
of written communication.
a. True
b. False
Answer:
Which of the following is generally true regarding the liability of members of a limited
liability partnership for malpractice?
a. Members split evenly among themselves 50% of any assessed liability for
malpractice against any member with the limited liability company retaining liability
for the remaining 50%.
b. Members are not liable for their own malpractice or for the malpractice of other
members because recovery for malpractice may only be obtained from assets of the
limited liability partnership itself.
c. Members are liable for their own malpractice but not for the malpractice of other
members.
d. Members are liable for their own malpractice and also for the malpractice of other
members.
Answer:
Agencies are required to hold a formal public hearing before enacting any regulation.
a. True
b. False
Answer:
Which of the following is false regarding decision making in a partnership?
a. Each partner's assets are vulnerable to the poor business decisions of the fellow
partners.
b. A partnership is prohibited from placing managerial control of the business in one
partner.
c. Unless the partners expressly agree otherwise, partnership law requires unanimous
agreement of all partners on all but the most ordinary matters.
d. If the partners in an informal partnership cannot agree on a decision, they may
disband the partnership, distribute its assets, and terminate it.
Answer:
Under Section 2-207(2), if only one party is a merchant, an acceptance containing
additional terms:
a. automatically becomes part of the contract unless the offeror objects within ten days.
b. is considered a proposal for additions to the contract.
c. is a counteroffer.
d. has no effect and the contract is accepted without the new terms.
Answer:
In CASE 24.2 Medellin v. Texas (2008), in ruling against the defendant, the U.S.
Supreme Court considered the question of whether the decisions of the International
Court of Justice that flowed from two international treaties were binding on the state of
Texas.
a. True
b. False
Answer:
Which of the following is true regarding acceptance?
a. In the absence of a provision in an offer regarding how acceptance is to be made,
acceptance is effective upon dispatch into a mailbox.
b. Acceptance is never effective until it is received.
c. An offeror may not by law specify that an offer can be accepted only by facsimile to
a stated fax number and that the acceptance is not effective until actually received.
d. An offeror may revoke an offer so long as the revocation is made before an
acceptance is received.
Answer:
Amanda was just hired to work for a federal agency in the procurement department.
Amanda shops for the best buys possible and thinks she has found a great deal. She
returns to her office and tells her supervisor about her discovery. Her boss tells her to be
sure that the Buy American Act is satisfied. Amanda decides to research the law. What
will she find?
a. That under all circumstances federal agencies must purchase products that are 100%
made in the U.S.A.
b. That under all circumstances federal agencies must purchase products with at least
75% of the components made in the U.S.A.
c. That unless the price is a certain percentage higher than the price of the equivalent
foreign product, federal agencies must buy products with at least 50% of the
components made in the U.S.A.
d. That federal agencies may buy foreign made products so long as it can be established
that a representative did comparison shopping and established that the foreign made
good is a better deal than the made in the U.S.A. product.
Answer:
Brice is on the board of ABC Corporation. XYZ Corporation has made a move to
acquire ABC. Tina, the president of ABC advises the board that the offer made by XYZ
is a good one that should be accepted. She did not disclose, however, that XYZ had
offered her a generous bonus if she could convince the board members of ABC to take
XYZ's offer. Brice tells the other board members that they should simply rely on Tina
because she is probably right, and under the business judgment rule they are protected
even if she is wrong. Which of the following is true regarding Brice's advice?
a. Brice is correct.
b. Brice is correct only if the directors of Success had been soliciting offers, and Tina
was charged with reviewing them.
c. Brice is incorrect unless it can be established that Tina has prior experience in
mergers and acquisitions.
d. Brice is incorrect because no statement made by an officer is entitled to blind
reliance.
Answer:
Racist speech, no matter how disgusting or extreme, is unprotected by the First
Amendment of the United States Constitution.
a. True
b. False
Answer:
The practice of __________ occurs when an individual registers a famous trademark as
an Internet domain name and then offer to sell the domain name to the trademark owner
for a ransom.
a. Internet trademark abuse
b. domain misuse
c. domain / trademark harassment
d. cybersquatting
Answer:
Gender will qualify as a BFOQ where a gender-based restriction is based on the
preferences of coworkers, employers, or customers for one sex or the other.
a. True
b. False
Answer:
A(n) __________ is made up of product or service offerings by different manufacturers
or sellers that are economically interchangeable and may therefore be said to compete.
a. interchangeable-brand product market
b. market power interchange
c. multiple-brand product market
d. consumer surplus brand market
Answer:
Under the Convention on Contracts for the International Sale of Goods (CISG), an offer
becomes effective when:
a. the offeror sends it.
b. it reaches the offeree.
c. the offeree reads it.
d. the offeree replies.
Answer:
___________ are issued by administrative agencies to interpret and implement statutes
enacted by a legislature.
a. Regulations
b. Interpretations
c. Reviews
d. Acknowledgements
Answer:
According to the text, is an employer negligent for failing to protect an employee from
being attacked by a dog, whether or not the dog is known to have abnormally dangerous
propensities? (See the Labaj v. VanHouston case.)
a. An employer has no duties in regard to an animal on the premises because of the rule
that animals cannot be absolutely controlled under any circumstances.
b. An employer can be held strictly liable for failing to protect an employee from
getting attached by a dog, even if the dog is not known to possess abnormally
dangerous propensities.
c. An employer cannot be negligent for failing to protect an employee from getting
attached by a dog unless the dog is not known to possess abnormally dangerous
propensities.
d. An employer can be negligent for failing to protect an employee from getting
attached by a dog, even if the dog is not known to possess abnormally dangerous
propensities.
Answer:
What is generally meant by a reference to a triple net industrial lease?
a. That the tenant pays all taxes, insurance, and operating maintenance expenses.
b. That the lessor pays all taxes, insurance, and operating maintenance expenses.
c. That the tenant pays insurance and operating maintenance expenses, but that the
lessor pays taxes.
d. That the lessor pays insurance and operating maintenance expenses, but that the
tenant pays taxes.
Answer:
In CASE 18.3 Koontz v. St. Johns River Water Management District (2013), plaintiff
Koontz purchased 14.9 acres of undeveloped land classified as "wetlands." The State of
Florida found Koontz's land-use permit proposal (which included land and cash) to
develop the land inadequate and imposed more "conditions" to the permit. Koontz
found these conditions were excessive under theNolan and Dollan cases, and filed suit.
The U.S. Supreme Court __________ the Florida Supreme Court, holding that the
government's demand for property (and cash) for land under the __________
requirements amounted to a(n) __________ of Koontz's land.
a. affirmed, Kelo, unconstitutional taking
b. reversed, Nolan and Dollan, unconstitutional taking
c. reversed, Kelo, nonconforming use
d. affirmed, Nolan and Dollan, unconstitutional taking
Answer:
A person commits perjury when he or she takes an oath to tell the truth and states a
material matter the witness believed to be true or untrue.
a. True
b. False
Answer:
The federal Sarbanes-Oxley Act removed several federal whistleblower provisions
applicable to nongovernment employees.
a. True
b. False
Answer:
Most states in the United States have adopted strict product liability whereby an injured
person may recover damages by showing that a defendant was negligent.
a. True
b. False
Answer:
In CASE 7.2, Kurashige v. Indian Dunes, Inc.(1988), plaintiffKurashige, used Indian
Dunes Park for motorcycle dirtbike riding. Prior to entering the park he signed a general
release. Kurashige was injured and sued Indian Dunes. How did the court rule andwhy?
a. For the defendant, holding that the release was not unconscionable, and that all the
risk was on the plaintiff.
b. For the plaintiff, holding that the release was unconscionable, and that all the risk
was on the defendant.
c. For the defendant, holding that the release was enforceable, and that plaintiff should
have been insured.
d. For the plaintiff, because the release was enforceable based on the plaintiffs age in
that he could not legally contract.
Answer:
The safe harbor provision applies to forward-looking statements in connection with an
initial public offering.
a. True
b. False
Answer:
Fact Pattern 17-2
Janie is a pharmacist in Small City. At the direction of several physicians in Small City,
she begins mixing up a treatment for indigestion that is prescribed by the physicians.
She advertises the mixture, and she and prescribing physicians see a large increase in
business. Other pharmacists who do not want to bother with mixing begin to complain.
Janie takes the position that it is a free country, and she can do as she pleases since there
is no evidence that the mixture is harmful; and it is particularly helpful for those
individuals who have had reactions to other indigestion medication.
Refer to Fact Pattern 17-2. Which of the following is the term that best describes the
process Janie uses in preparing the drug?
a. Combining
b. Compounding
c. Integrating
d. Servicing
Answer:
Caveat venditor means:
a. "let the buyer beware."
b. "le the buyer prevail."
c. "let the market decide."
d. "let the seller beware."
Answer:
Fact Pattern 5-2
Billy owns a used car lot. Samantha works for Billy selling used cars. Billy fully directs
and controls her work, sets her hours, and pays her an hourly salary as well as a
commission. Belinda comes to the lot to buy a used car. Samantha, however, tells
Belinda that she needs to sell her mother's used vehicle and that if Belinda will meet her
after hours, she will give Belinda an excellent deal. Belinda meets Samantha after work
and ends up buying the car belonging to Samantha's mother. The next day, Samantha,
acting within the scope of her employment, is moving a car. She, however, is in a hurry
and in a grossly negligently manner backs it over the foot of Wesley, another customer.
While waiting for the ambulance to come for Wesley, Belinda storms onto the lot
complaining about the condition of the vehicle she purchased from Samantha's mother.
Billy fires Samantha on the spot based on her obviously intoxicated condition and the
fact that she arranged for the sale of her mother's vehicle. Samantha informs him that
she has been an excellent employee and that he has no reason to be unhappy with her.
Refer to Fact Pattern 5-2. Did Samantha breach any fiduciary duties owed to Billy?
a. Yes, only the duty of loyalty
b. Yes, only the duty of care
c. Yes, both the duty of loyalty and the duty of care
d. No
Answer:
It is not necessary to prove intentional discrimination to prevail in a disparate impact
case.
a. True
b. False
Answer:
Fact Pattern 3-2
Sally tells you that she is in a dispute with her employer regarding whether in denying
Sally a promotion she wanted, the employer committed sex discrimination. Sally says
that she has heard about both mediation and arbitration and asks you which would
result in a quicker judgment in her favor because she does not particularly want to go to
the time and expense of a court action. Sally also asks if, as a friend, you will go with
her when she consults with a lawyer.
Refer to Fact Pattern 3-2. What would you tell Sally regarding her request that you go
with her, as her friend, to see her lawyer?
a. That you would be glad to do so because you want to provide emotional support.
b. That you should not go because your presence would destroy the attorney-client
privilege.
c. That you should not go because your presence would destroy the work-product
privilege.
d. That you should not go because your presence would destroy both the attorney-client
privilege and the work-product privilege.
Answer:
An equilibrium in which scarce societal resources are allocated to the production of
various goods and services up to the point where the cost of the resources equals the
benefit society reaps form their use is:
a. productive efficiency.
b. allocative efficiency.
c. true efficiency.
d. product efficiency.
Answer:
