Most contracts require a specific format or ceremony.
E-mail communications between parties in an ongoing business relationship have been
found to create sufficient minimum contacts to establish personal jurisdiction without a
separate physical presence, and this rule is the prevailing law throughout the United
States.
Filing a statement of notice with a state government is one way to perfect a security
interest.
If an agent suffers losses while acting for the principal, the principal has a duty to
indemnify the agent for those losses.
Credit card companies must now give a 45-day notice of any rate hike.
The per se standard applies to nonprice vertical restraints.
In Estate of Weingeroff v. Pilatus Aircraft, the fact that Pilatus had purchased over $1
million in products and services from Pennsylvania suppliers was not sufficient to
establish minimum contacts or show purposeful availment in Pennsylvania sufficient to
establish personal jurisdiction.
Legal realism is the oldest form of American jurisprudence; it was founded during the
American Revolution and forms the basis for the U.S. Constitution.
Suggestive trademarks gain trademark protection only if they have acquired a
secondary meaning.
Conditions in American industrial plants have always been safe and humane with
regard to the treatment of workers.
An express termination of the agency relationship by the agent is called a renunciation.
Social Security provides benefits for workers who become disabled on the job.
If an employee has a retirement savings account, the employer promises to pay a
monthly sum to the account, ordinarily based on the employee’s length of service and
final salary at the date of retirement.
Family limited partnerships are designed solely for estate planning and asset
distribution for wealthy families.
Professor Smith announces to his dean that the students in his noon class are the worst
students that he has ever had and that they should never have been admitted to the
school. The students are actually as qualified as any other students admitted to the
school. The students may sue Professor Smith for slander.
In Kelo v. City of New London, the court permitted the use of eminent domain to take
property that was to be given, in part, to private individuals and companies so that they
could develop the land for the benefit of the city and its citizens.
If an offer does not specify a required type or form of acceptance, the offeree is required
to provide a written acceptance for valid mutual assent to be proved.
Every buyer boycotting a supplier that uses child labor to produce its raw materials is
committing a per se violation of the Sherman Act.
The SEC has the power to initiate criminal actions against individuals or companies that
violate security laws.
When a member of an LLC dies, the business entity automatically ceases to exist.
A life estate gives the owner more rights than a fee simple.
It may not be discriminatory to require that persons in a protected class, in certain
instances, be afforded special rights.
A fraudulent transfer occurs when a debtor makes payment on a prebankruptcy debt up
to a year before filing for bankruptcy.
The standard that must be met for a plaintiff to win a trademark infringement claim is
likelihood of confusion.
The American Arbitration Association provides mediation services as well as arbitration
services.
Chapter 7 allows business entities to keep some exempt property.
UCC risk of loss provisions will govern the terms of a contract even if the parties have
specified risk allocation in the contract.
International Chamber of Commerce terms and abbreviations are usually used in
conjunction with the CISG.
The NBA signing an agreement for all the teams to wear a single brand of shoes would
not fall under the Sherman Act.
Assume that Iowa has passed a law requiring that anyone riding or operating a
motorcycle wear a helmet. Mary enters Iowa Harley-Davidson and wants to take a test
ride. She doesn’t have a helmet with her and the dealership doesn’t have one available in
her size, so the proprietor lets her go without one. If she crashes and is injured, the
proprietor has committed negligence per se.
Corporate bylaws are public documents that must be filed with the appropriate state
corporation office.
Kathy is a college student who enjoys spending her summers at the beach. For the past
four years, starting as a junior in high school, she has worked as a waitress at a local
beach resort restaurant from mid-June through mid-August. If Kathy is injured while
working in the restaurant, she will be eligible for workers’ compensation benefits.
A particular act can be deemed unethical yet still be legal.
Social responsibility is at its highest when the moderate view, or government’s hand
theory, of corporate social responsibility is utilized.
The Fair Credit Reporting Act requires each of the credit bureaus to give consumers a
free copy of their credit report at least twice a year.
Nominal damages are rarely awarded in contract cases.
Officers and directors owe fiduciary duties to the corporation and its shareholders;
however, none of the shareholders owe such duties because they cannot bind the
company.
Robert and Philip are operating a general partnership. Under the Revised Uniform
Partnership Act, if Robert rightfully or wrongfully dissociates from the partnership, the
partnership continues to exist.
Some courts have determined that the inclusion of an arbitration clause in an acceptance
as a means of dispute resolution constitutes a material alteration of the offer in a
merchant transaction.
The right to take away private property for the public good or for public use is called:
A. police powers.
B. condemnation.
C. eminent domain.
D. easement.
A disadvantage of choosing a publicly held corporate form to operate a business is:
A. the pass-through taxation.
B. the unlimited liability of officers and directors.
C. the cost and formalities of setup.
D. the difficulty of raising capital.
Courts have a clear power to set aside an agency’s actions. They tend to use this power:
A. frequently.
B. only when faced with citizen suits.
C. sparingly.
D. on a somewhat regular basis.
A commercial airliner crashed in the middle of the Atlantic. The cause of the crash has
been proved to be a wrongly installed part in one of the engines during routine
maintenance. If a negligence lawsuit is brought against the airline, it will be based on:
A. nonfeasance.
B. misfeasance.
C. res ipsa loquitur.
D. negligence per se.
Which of the following was not an argument made by recipients of AIG bonuses who
were defending their right to receive and retain the bonus money?
A. The bonuses were negotiated into their contracts prior to the AIG collapse.
B. The bonuses were based on meeting individual goals that the employees did meet.
C. The bonuses were needed to retain AIG’s top talent, who were necessary as the
company rebuilt.
D. The bonuses came from money AIG had on hand at the time of the collapse and did
not come from the taxpayer-supplied funds.
Which of the following scenarios would most likely result in strict liability?
A. Bruno owns a basset hound that escapes from his yard and bites a neighbor.
B. Amos buys a bag of Chips Ahoy chocolate-chip cookies and breaks a tooth when he
bites into one that contains a small rock that looks like a chip.
C. Ted is injured at a major-league baseball game when a foul ball enters the stands and
hits him.
D. Maintenance at a school waxes the floors during class but fails to put up warning
signs. A student leaving class slips and is injured.
Which of the following is not a required preregistration document?
A. the prospectus
B. letters of intent
C. an underwriting agreement
D. comfort letters
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 percent
B. 60 percent
C. 70 percent
D. 80 percent
Which of the following is not a major part of the Foreign Corrupt Practices Act?
A. requiring that corporations keep accurate records, books, and accounts
B. requiring that corporations refrain from committing copyright violations abroad
C. prohibiting bribery of foreign officials by American corporations
D. requiring that issuers registered with the Securities and Exchange Commission
maintain a responsible internal accounting control system
Tracy has agreed to lease a home from Henry on a month-to-month basis. The lease is:
A. a life estate.
B. an easement.
C. a tenancy for years.
D. a periodic tenancy.
Shelly is a state legislator. A bill to legalize gambling has been introduced in her state,
and she is deciding how to vote on it. Shelly owns 10,000 shares of stock in a company
that manufactures slot machines. She wants to remain ethical and is not sure if she
should disclose her holdings and disqualify herself from the vote.
A. Shelly need not disclose her holdings and disqualify herself if her vote is based on
what is best for the state and not for her.
B. Shelly need not disclose her holdings and disqualify herself from voting as long as
she has nothing to do with negotiating the contract for the slot machine provider.
C. Shelly should disclose her holdings but not disqualify herself from voting because
as long as she doesn’t hide anything she can’t be faulted.
D. Shelly should disclose her holdings and disqualify herself from voting because her
potential conflict of interest, real or not, would make her actions ethically questionable.
Each of the following is considered trade dress except:
A. the white linen tablecloths at the Four Seasons Restaurant in New York City.
B. the font and size of print used in a national store’s print advertising.
C. the brown uniforms and trucks at UPS.
D. the costume worn by your school’s mascot at sporting and other events.
For a writing to satisfy statute of frauds requirements under the UCC, it must include
each of the following except:
A. price.
B. quantity.
C. the signature of the party against whom enforcement is sought.
D. language that a reasonable person would believe constitutes an intent to form a
contract.
Which of the following would likely not be considered a major life activity supporting a
disability claim?
A. being able to sit for long periods
B. thinking and reasoning
C. proficiency in typing
D. speaking
A partnership is considered fully terminated:
A. after dissociation.
B. after winding up.
C. after dissolution.
D. after the termination certificate is properly filed.
Jon and Amy work for Dover Farm and Home Company. Jon and Amy are caught one
day stealing a tractor. The next day, Jon was given a verbal warning and Amy was
terminated.
A. Amy has a claim for discrimination based on gender discrimination.
B. If the company has a written policy providing for termination for theft, Amy does
not have a claim for discrimination based on gender discrimination.
C. Amy does not have a claim for discrimination based on gender discrimination if Jon
has more seniority.
D. Amy does not have a claim for gender discrimination if she is paid more than Jon.
Brenda is the CEO of a large corporation. While presenting a proposal to a commercial
bank for a corporate loan, she offers the bank’s commercial loan manager a $10,000
“gift” for favorable treatment.
A. Brenda is guilty of bribery whether the manager accepts or not because the offer
constitutes the crime.
B. Brenda is guilty of bribery only if the manager accepts because the crime has not
occurred without acceptance by the other party.
C. Brenda is guilty of bribery because she is dealing with a commercial bank in the
normal course of business.
D. Brenda is not guilty of bribery.
The state of Delaware has passed a new law banning cell phone use while driving a
motor vehicle within the state. This law would be defined as:
A. an ordinance.
B. a regulation.
C. a statute.
D. a common law.
Rita Reporter works for a major news network and has been assigned to investigate a
story about a woman’s death in a small town. She interviews police and other public
officials, and the investigation is pointing to the woman’s ex-husband. When Rita
reports live on the air, she states that the investigation is ongoing and that the
ex-husband is the prime suspect. In fact, the police have just ruled out the ex-husband,
but Rita has not yet been informed of that fact. The next day, the ex-husband is fired,
his new wife moves out, and friends are now refusing to talk with him.
A. Rita is guilty of libel for telling a lie that caused injury to the ex-husband.
B. Rita is guilty of slander for telling a lie that caused injury to the ex-husband.
C. Rita is not guilty of defamation due to a qualified privilege.
D. Rita is not guilty of defamation due to an absolute privilege.
In Arthur Andersen LLP v. United States, Andersen’s previous conviction was
overturned by the Supreme Court because it was determined that:
A. the trial court’s jury instructions were defective.
B. the government had not met its burden of proof.
C. Andersen was acting solely on Enron’s directions and that only Enron could be held
responsible.
D. no law existed at the time that Andersen acted that prohibited the shredding of
corporate documents and that such law was passed after the scandal and could not be
enforced retroactively.
Judicial review is the:
A. power or right of a court to hear a case.
B. power of a state or federal court to declare a statute unconstitutional.
C. power of an appellate court to reverse a decision made in a lower court.
D. power of a federal court to declare a state or federal statute invalid if inconsistent
with the Constitution.
Which international body created the Convention of Contracts for the International Sale
of Goods (CISG)?
A. World Trade Organization
B. U.N. Commission on International Trade Law
C. International Monetary Fund
D. Organization for Economic Cooperation and Development
If there is no direct evidence of an agreement to manipulate the competitive market
between two CEOs, a prosecutor may use their calendars and subsequent actions that
were not in the usual course of business as circumstantial evidence to prove the
________ requirement of an antitrust violation.
A. price-fixing
B. vertical restraint
C. horizontal restraint
D. meeting-of-the-minds
The Environmental Protection Agency (EPA) does not work with other agencies to
carry out its duties.
The FTC publishes a rule regulating TVs and Blu-Ray DVD players for public
comment but revises it to include traditional DVD players also. Should the FTC
republish the revision?
A. no, because the new rule is more limited than the original proposal
B. no, because there is generally no legal obligation to provide an additional comment
period
C. no, because the revision is a logical outgrowth of the original rule
D. no, because there was no need for publication of the original rule
Sanchez borrowed money from Fifth National Bank to buy a car. She defaulted on the
loan. Fifth National hired Rex’s Recovery Service to repossess the car for a set fee.
Rex’s was simply told to locate and seize the car. Rex’s would be classified as:
A. an agent/employee.
B. a principal.
C. a gratuitous agent.
D. an independent contractor.
Evidence obtained from an illegal search may not be used against the defendant. This is
called:
A. flower of the unlawful fruit.
B. fruit of the poisonous tree.
C. bloom of the illegal bush.
D. sticker of the criminal shrub.
After a rule is published, what is the next step in the rulemaking process?
A. The rule is enacted into law.
B. The rule goes back to committee for revisions.
C. A public comment period is held.
D. Notice is given.
In Gonzalez v. Raich, patients who were prescribed medical marijuana sought to prevent
enforcement of the federal Controlled Substances Act (CSA) in medical marijuana
cases. They claimed enforcement violated the Commerce Clause because the medical
marijuana was cultivated and possessed within state borders and did not enter the
stream of commerce. The U.S. Supreme Court decided:
A. the government had a rational basis for believing that locally cultivated marijuana
would end up in interstate commerce.
B. the intrastate, noncommercial cultivation and possession of marijuana was not
intended to enter interstate commerce.
C. California’s medical marijuana law was unconstitutional.
D. enforcement unreasonably burdened interstate commerce.
A state’s appellate court has made a decision in a particular case. That decision becomes
case precedent in all cases except the cases heard in:
A. the state’s supreme or highest court.
B. the state’s special courts, such as family or probate court.
C. the state’s general trial court.
D. the state’s inferior or small-claims court.
Mike is Kathy’s employer. Mike tells her that she will not get a raise or promotion
unless she has sex with him. Mike has committed ________ sexual harassment.
Following an investigation by the EEOC, should discrimination be found, the next step
for the agency is to begin _______.
John, Paul, Mark, and Luke have been operating an LLC, and according to the
operating agreement, the term of the LLC is set to expire in the near future. What
options do the four partners have?
A formal filing by a magistrate that binds a defendant over for trial is called an _____.
Name and discuss the three different categories for federal agency actions as classified
under the National Environmental Policy Act. Provide an example for each.
A standard that is applied to all employees or candidates for employment equally but
nevertheless is shown to be discriminatory is called a ________ standard.
Briefly discuss the origins and purposes of law.
Name the five agent duties that comprise the agent’s fiduciary responsibility to the
principal.
Mohammed has applied for a custodial job and has been rejected. He believes that his
rejection is because of his Arab heritage. He is able to show two years of custodial
experience and has successfully performed each of the jobs listed on the position’s job
description. He subsequently discovers that the job continued to be advertised after his
rejection. When he files a complaint alleging disparate impact discrimination with the
EEOC, the employer asserts that Mohammed did not meet the qualifications, which
included a minimum of 10 years’ experience and a high school degree. How should the
court decide this case?
The party petitioning or asking for an appeal is called the _______.
Explain the doctrine of respondeat superior and how it applies to a principal’s liability.
The Clean Air Act’s market-based approach is controversial. What are major arguments
for and against this approach?
Robert and Philip are the named beneficiaries under Alan’s insurance policy. Robert and
Philip would specifically be considered to be ________ beneficiaries.
Appointing another person to perform one’s duties under a contract is called a _______.
Michelle has just passed the bar exam, and is ready to start practicing law. She draws up
articles of incorporation and puts them into the mail to the appropriate state office. After
leaving the post office, she immediately drives to an office building and rents an office,
signing on behalf of Michelle’s Law Services Inc. A week later she discovers that her
uncle, who was going to lend her money to start her business, has filed bankruptcy and
is unable to provide her with the promised funds. She realizes that she cannot open her
solo firm and accepts a position working for a local firm. Discuss Michelle’s liability for
the lease she signed for the office.
“Snapple” is an example of a(an) ________ trademark.
Federal environmental laws are primarily administered, implemented, and enforced by
the ________ Agency.
What is the difference between a derivative action and a direct action regarding
shareholder lawsuits, and what are the typical grounds for these suits?