In the __________ case, the U.S. Supreme Court upheld Title II of the Civil Rights Act
of 1964 prohibiting discrimination or segregation on the grounds of race, color, religion
or national origin in any inn, hotel, motel, or other establishment of more than five
rooms that provides lodging to transient guests.
a. Gibbons v. Ogden
b. Reno v. Condon
c. Heart of Atlanta Motel, Inc. v. United States
d. Sweet Dreams Hotel v. United States and State Department
Answer:
What was the first U.S. antitrust law?
a. The Hart-Scott-Rodino Antitrust Improvements Act
b. The Robinson-Patman Act
c. The Clayton Act
d. The Sherman Act
Answer:
A cite such as 2004 WL 1208516 may be found on Westlaw.
a. True
b. False
Answer:
Susan, the CEO of ABC Company, which was involved in the production and sale of
hair care products, decided to hire new employees to develop new product lines for a
planned expansion into the dog shampoo arena. She was concerned, however, that the
employees specializing in canine products might leave at some point, taking company
secrets with them for use in competition with ABC. She, therefore, required that the
employees sign contracts containing covenants not to compete. Susan also consulted
her in-house counsel, Sam, regarding the effect of some new regulations involving the
use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore
the regulations until some type of investigation of the company was started. Sam says
that more than likely no one will ever check to see whether or not ABC is in
compliance. Susan disagrees with his advice and decides to seek other counsel.
Refer to Fact Pattern 1-1. The use of covenants not to compete involves which of the
following forces identified by Michael Porter and referenced in the text?
a. Supplier power
b. Threat of entry
c. Substitution
d. Buyer power
Answer:
Which of the following is true regarding the effect of the death of a partner on a general
partnership?
a. Unless there is an agreement to the contrary, the partnership dissolves upon the death
of a partner.
b. Unless there is an agreement to the contrary, the partnership ceases to exist 10 days
after the death of any partner.
c. The remaining partners must by operation of law continue the partnership for at least
one year.
d. Within 90 days the remaining partners may elect to continue the partnership.
Answer:
Fact Pattern 4-2
Wally, a law school student, is an intern for Rebecca, an assistant professor who is
attempting to get tenure at Imperial Law School in part by getting an article published
on the right to a jury trial. Rebecca asks Wally to explain to her the right to a jury trial
under the U.S. Constitution as applied to jury trials involving state law.
Refer to Fact Pattern 4-2. What should Wally tell Rebecca regarding whether the U.S.
Constitution requires that jury trials be held in state court civil cases?
a. That there is no federal constitutional requirement that jury trials be held in state
court civil cases.
b. That the federal constitution requires that jury trials be held in state court civil cases
only if the controversy involved exceeds the amount of $75,000.
c. That the federal constitution requires that jury trials be held in state court civil cases
only if the controversy involved exceeds the amount of $20.
d. That in all state court civil cases the federal constitution gives any party the right to
demand a jury trial.
Answer:
A product is __________ when it is sold abroad below the current selling price in the
exporter’s home market or below the exporter’s cost of production.
a. subsidized
b. dumped
c. underpriced
d. undervalued
Answer:
Worker protection is one major public policy concern underlying U.S. business law.
a. True
b. False
Answer:
Which of the following is an example of an arbitrary trademark?
a. Camel
b. Kodak
c. Exxon
d. Clorox
Answer:
A purchase money security interest in consumer goods is an automatically perfected
security interest.
a. True
b. False
Answer:
The doctrine of federalism serves to allocate power between the federal government
and government by the states.
a. True
b. False
Answer:
The Fifth Amendment does NOT contain which of the following?
a. Self incrimination provision
b. Grand jury requirement
c. Jury trial requirement
d. Double jeopardy prohibition
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 whether she should
choose mediation or arbitration?
a. That mediation and arbitration are essentially the same thing.
b. That a mediator would actually decide the case whereas an arbitrator would not.
c. That an arbitrator would actually decide the case whereas a mediator would not.
d. That both an arbitrator and a mediator would decide the case but that an arbitrator is
required to be a lawyer whereas a mediator is not.
Answer:
Which of the following members of the chain of distribution cannot be strictly liable in
a products lawsuit?
a. The manufacturer
b. The wholesaler
c. The retailer
d. The occasional seller
Answer:
The Robinson-Patman Act prohibits a manufacturer from making any price
discrimination among its customers.
a. True
b. False
Answer:
Which of the following are situations in which ownership rights are shared by two or
more individuals?
a. Tenancy in common
b. Tenancy by the entirety
c. Both tenancy in common and tenancy by the entirety
d. Neither tenancy in common nor tenancy by the entirety
Answer:
A(n) __________ gives the person to whom it is granted the right to buy a certain
number of shares at a fixed price for a fixed number of years during a period known as
the __________ period which is not usually for more than __________.
a. call right; exercise; twelve months
b. option; redemption; twelve months
c. option; redemption; ten years
d. option; exercise; ten years
Answer:
On a failure to warn claim, adequate warnings and instructions for a product’s safe use
can shield a manufacturer from liability for a:
a. properly manufactured and designed product.
b. defectively designed product.
c. defectively manufactured product.
d. properly manufactured and designed product or defectively designed product.
Answer:
A minor may ratify a contract after reaching the age of majority.
a. True
b. False
Answer:
CASE 3James v. Meow Media, Inc. (2002) addressed whether a video game
manufacturer was strictly liable for a teenager’s shooting spree. What was the court’s
holding?
a. That the shooting was so aberrant as to be unforeseeable by the video game producer.
b. That the products were defective.
c. That the video game manufacturer was liable for the shooting.
d. That the shooting was so aberrant as to be unforeseeable by the video game producer
but also that the products at issue were defective.
Answer:
In CASE 4.1National Federation of Independent Business v. Sebelius (2012), the U.S.
Supreme Court held that the insurance mandate of the Affordable Care Act
(“Obamacare”) was a proper exercise of Congress’s power to regulate interstate
commerce.
a. True
b. False
Answer:
Fact Pattern 19-1
Joan decides to enter into a franchise agreement with XYZ Burgers to sell their burgers
in her town. The franchise agreement did not prohibit XYZ Burgers from granting other
franchises in the area, but that did not concern Joan because she thought XYZ Burgers
would treat her fairly. She did not bother to read the franchise papers, contracts, and
disclosures she was provided. Joan’s business went very well for the six months. Then,
however, another XYZ Burgers franchise opened just down the street from Joan’s
restaurant. She was very upset and called XYZ Burgers to complain. The CEO brushed
off her concerns and told her that there was enough business for everyone. Joan,
however, is interested in suing XYZ Burgers.
Refer to Fact Pattern 19-1. Which of the following is the term used when a franchisor
sells a franchisee an outlet in a certain location, and then a few months later, sells
another outlet a few blocks away to someone else?
a. Encroachment
b. Fair trace
c. False competition
d. Crowding
Answer:
The doctrine of stare decisis means:
a. to abide by decided cases.
b. let the courts decide.
c. let the superior argument prevail.
d. to decide the case on its merits.
Answer:
Under the Fifth Amendment, state and federal governments have the right to
__________, which is the power to take private land for public use, in exchange for just
compensation.
a. subpoena a landowner
b. eminent domain
c. expropriate property
d. re-zone land
Answer:
The Systems Approach recognizes that law is dynamic, as opposed to static.
a. True
b. False
Answer:
The Uniform Trade Secrets Act is a federal law.
a. True
b. False
Answer:
In order to be actionable under Rule 10b-5, misstatements or omissions must be made
with:
a. negligence.
b. lack of due care.
c. scienter.
d. recklessness.
Answer:
In the McKennon v. Nashville Banner Publishing Co.case referenced in the text,
after-acquired evidence of the plaintiff-employee’s misconduct was introduced in a
lawsuit filed under the ADEA. How did the U.S. Supreme Court rule?
a. The court ruled that under such circumstances, the plaintiff’s claim should be
dismissed.
b. The court ruled that under such circumstances, remedies available to the plaintiff
should be limited to back pay and should not include reinstatement or front pay.
c. The court ruled that under such circumstances, remedies available to the plaintiff
should be limited to back pay and front pay and should not include reinstatement.
d. The court ruled that such evidence has no effect on the lawsuit or on available
remedies.
Answer:
Which of the following terms refers to a slight deviation from the employer’s business
that is still within the scope of employment?
a. Frolic
b. Detour
c. Errand
d. Chore
Answer:
The S-Corporation is the entity of choice that helps venture capitalists raise investment
capital.
a. True
b. False
Answer:
A product liability action brought in tort generally permits recovery of economic
damages suffered by a purchaser of an inferior or defective product whereas a breach of
warranty action would not allow such a claim.
a. True
b. False
Answer:
The “Inside Story” discusses how the Telephone Records and Privacy Protection Act of
2006 made it illegal for a person to use fraud to obtain individual customer billing
records and other customer information from telephone companies.
a. True
b. False
Answer: