The U.S. Department of Agriculture (USDA) approved an application from Monsanto
to plant genetically
engineered alfalfa seeds that resist Monsanto’s Roundup herbicide. Several
environmental groups brought suit to stop the planting because the USDA did not
complete an EIS in carving out an exception for genetically engineered crops. The fear
is that the crops contain a bacterial gene that allows farmers to spray their fields for
weeds without harming the alfalfa or other crops because the bacteria allows the crops
to resist the weed spray. How do you think the court ruled in this case?
Jane Dixon is going to create a limited liability company for operating her business that
does billing for physicians and medical laboratories. Jane is unsure whether her state
allows for the creation of limited liability companies. Advise Jane on the best place to
look for finding whether she can create a limited liability company in her state:
a. United States Code
b. Code of Federal Regulations
c.municipal ordinances
d.state statutes
e. none of the above
Frank Zelco is a manufacturer’s rep who represents the product lines of several
manufacturers. Frank has worked with his brother, Dion, in their two person firm for
almost five years. They have no written contract, but they split the profits. Frank would
like to create a business organization and put their arrangement in a written contract.
Which sources of law will Frank need to help him do this?
a. ordinances
b. the UCC
c.state laws on business organizations
d.both b and c
When the music companies filed suit against the peer-to-peer file sharers on
copyrighted music, they wanted legal and equitable remedies. Which of the following is
an equitable remedy?
a. money damages for the loss of royalties on the downloaded copyrighted songs
b. injunction against the facilitating software provider for the downloading
c.civil penalties for the infringement
d.both a and c
Give the source of statutory law for each of the following state:
a. Uniform Revised Limited Partnership Act
b. 1933 Securities Act
c. law requiring bikes on public streets to be licensed
d. no taking of property without just compensation
e. establishment of the House of Representatives
The statement, “What’s good for GM is good for the country,” is an example of the
thoughts of a manager from the:
a. inherence school.
b. enlightened self-interest school.
c.social responsibility school.
d.invisible hand school.
Which of the following statements is true about an ethical business?
a. It will always be profitable.
b. It will always satisfy all stakeholders.
c.It will always survive over the long run.
d.It will avoid the consequences of unethical behavior.
An employer instituted a wellness program for all employees. The wellness program
includes an exercise facility
and several pay incentives for losing weight, quitting smoking, or beginning an exercise
program. The program is not required under any state or national laws. Which of the
following schools of social responsibility applies to this employer?
a. inherence school
b. enlightened self-interest school
c.invisible hand school
d.social responsibility school
Yucca Mountain is the proposed location for the disposal of spent nuclear fuel rods
from the nuclear plants located in the United State. Who of the following are
stakeholders in the decision about whether to open Yucca Mountain?
a. Those who live in and around Yucca Mountain.
b. The shareholders in nuclear utility plants.
c.Those who live around nuclear plants where the rods are stored temporarily.
d.a and c
e. a, b, and c
President Obama said in a number of speeches advocating his health care plan, “If you
like your health care plan, you can keep your health care plan, period.” After the law
was passed and as its provisions took effect, about 5 million Americans had their
policies canceled because the policies no longer met federal minimum standards for
coverage. A provision in the law required insurers to cancel any policies that did not
meet those federal standards. Which of the following categories does the President’s
statement fall into?
a. Giving or allowing a false impression
b. Conflict of interest
c.Personal decadence
d.a, b and c
Three boys were leaving Wal-Mart when they were stopped by plain clothes security
officers. One officer said, “Those shirts that you have on were stolen.” One boy said,
“You can”t be serious.” The officer responded, “Yes, I am. Come with me.” The boys
then went with the officers to a side door and into an office. The boys’ parents have
filed suit against Wal-Mart. Discuss what their suit might be for and what defenses
Wal-Mart has.
Opposition proceedings are part of the patent process outside the U.S.
a. True
b. False
Termination of a TV retailer’s sales contract with a TV manufacturer by that
manufacturer for selling the manufacturer’s TVs at too-low prices is:
a. a per se violation of the Sherman Act.
b. resale price maintenance subject to a rule of reason review.
c.price fixing.
d.none of the above
Title VII remedies include back pay and punitive damages.
a. True
b. False
A counterclaim is:
a. made by a defendant.
b. part of the complaint.
c.part of the interrogatories.
d.none of the above
If the underlying activity Congress attempts to regulate is not economic in nature,
authority for such regulation is not part of the Commerce Clause.
a. True
b. False
Describe the types and sliding scales of penalties under OSHA.
“This offer is limited to these terms,” means that between merchants only immaterial
terms added in the acceptance will be part of the contract.
a. True
b. False
What type of scientific/expert testimony requires a higher standard of review before it
can be used in court?
a. any academic studies
b. any studies developed for use at trial
c.any studies in an area in which experts differ
d.none of the above
An agency that fails to investigate the issues before proposing a rule has acted
arbitrarily and capriciously.
a. True
b. False
If any mistake is made in a case, it is reversible error.
a. True
b. False
An unconstitutionally vague statute cannot be a basis for criminal prosecution.
a. True
b. False
EU and countries’ antitrust laws do not apply to U.S. companies doing business in the
EU.
a. True.
b. False
Section 402A covers:
a. manufacturers only.
b. retailers only.
c.those who sell products out of their home.
d.only merchants.
Which of the following cannot be used to pierce the corporate veil?
a. inadequate capitalization
b. alter ego theory
c.formation of the corporation to avoid personal liability
d.All of the above theories can be used.
U.S. antitrust laws:
a. do not apply to companies based in other countries that are doing business in the
United States.
b. do not apply to U.S. companies doing business in other countries.
c. apply to companies based in other countries that do business in the U.S.
d. none of the above
The Department of Homeland Security has been given the responsibility for the
construction of a fence along the border between the United States and Mexico. The
Department has not followed the 30-day comment rule on the composition and location
of the proposed fence. Secretary Chertoff says that the fence is a matter of national
security. The Department:
a. has not complied with the rulemaking requirements and cannot proceed with the
fence.
b. is using the emergency exception for the time waiver on rulemaking.
c. does not have the authority to waive the time requirements.
d. both a and c
Which of the following is not important for capitalism to function?
a. consumer confidence
b. absence of corruption
c.grease payments
d.risk takers comfortable with trustworthiness of government officials
e. All of the above are necessary for capitalism.
Arbitration is not allowed when federal statutory rights are involved.
a. True
b. False
Jurisprudence is legal philosophy.
a. True
b. False
The penalties for certification of false financial statements are up to $1 million in fines
and/or 10 years.
a. True
b. False
Jay Housel, an employee at Raytheon Aircraft Services, was injured when his
supervisor blasted compressed air into his backside while he was bending over his
toolbox at the plant. Which of the following is correct about Raytheon’s liability in this
case?
a. Raytheon is not responsible for these kinds of intentional acts outside the scope of
employment or that involve misuse of company tools.
b. Raytheon could be responsible if it had knowledge of the supervisor’s prior
misconduct.
c.Raytheon is liable for all injuries that occur in the workplace.
d.none of the above
OPEC is:
a. a treaty among the EU, the Arab nations and the U.S.
b. an international environmental NGO.
c. an oil cartel.
d. disbanded.
Michael Chertoff was the head of the Department of Homeland Security. Mr. Chertoff
paid 25 cents to the federal government each time a personal fax came to him at his
federal office. Mr. Chertoff’s actions:
a. are meant to establish an effective tone at the top.
b. are unnecessary because there is no ethical breach when you have no control over
who sends faxes.
c.are inconsequential for the agency.
d.none of the above
The Pregnancy Discrimination Act:
a. prohibits employers from requiring pregnant women to take leaves.
b. prohibits employers from cutting the pay of women who return to work after
maternity leave.
c.prohibits employers from basing a promotion decision on the basis of a pregnancy or
planned pregnancy.
d.does not apply to professionals.
e. all of the above
The “Know They Customer” program:
a. is a federal program directed at commercial bribery prevention.
b. is a federal program related to detecting money laundering.
c. is an unconstitutional federal program.
d.both a and c
Which case ruled that when acting as a private person even the president of the United
States is not above the law?
a. Citizen”sUnited
b. Nixonv.Administrator of General Services
c. Clintonv.Jones
d. AltriaGroup
A partner’s interest:
a. is the same as the partnership property.
b. cannot be attached by creditors.
c.cannot be transferred.
d.none of the above.
The scienter required for proof of a 10(b) violation is:
a. intent to defraud.
b. gross negligence.
c.negligence.
d.a or b
The federal courts in the United States have jurisdictional authority over all cases,
parties, and disputes in which a U.S. firm is involved.
a. True
b. False
The RestatementofAgency:
a. is a summary of the common law agency.
b. has been adopted in all states.
c.is legislative law.
d.none of the above
Regulation A offerings:
a. still require registration.
b. are available for offerings up to $10 million.
c.are now part of Regulation D.
d.none of the above
Which of the following terminates apparent authority?
a. firing an employee
b. an employee quitting
c.an employee retiring
d.none of the above
Distributors of software that facilitate peer-to-peer file sharing cannot be liable for
infringement by file sharers.
a. True
b. False
Negligence product liability cases:
a. are the same as 402A cases.
b. have no defenses.
c.require proof of privity.
d.none of the above
Horizontal mergers:
a. include mergers between manufacturers and jobbers.
b. can be approved if a failing company is acquired.
c.are always antitrust violations.
d.none of the above
Chevy (General Motors) manufactured a truck called the LUV. Expert evidence has
shown that the absence of a head restraint in the LUV exposes the occupants in a
low-speed rear-end collision to cranial impact 16 times that which would result if head
restraints were provided. Discuss the risk General Motors runs with the product as it is
and possible theories owners injured in such crashes could use for recovery. Must a car
be crash-proof?
Bucky Warren, Inc.manufactured a hockey helmet. The helmet had gaps in it to give it
flex and movement.
Everett was injured when a puck struck his head in one of the gaps. Is Bucky Warren
liable?
A tenancy in partnership does not carry rights of survivorship.
a. True
b. False
As video games have become more advanced, some of the games have also increased in
violence. While the
games are rated, many of the advertisements for the games are targeted for a market
who are not supposed to buy them under the rating system. Discuss the ethical issues in
these marketing strategies.
The effect of a counterclaim is to have the defendant also suing the plaintiff.
a. True
b. False
Discuss the requirements for ending an agency relationship.
List the types of contracts required to be in writing.
Discuss the issues for businesses concerning potential litigation and portable devices
such as smartphones and laptops.
Courts view non-compete agreements against the employees and for the employers.
a. True
b. False
A principal cannot ratify an act of an agent retroactively.
a. True
b. False
First Fidelity Insurance received a call from Second Fifth Bank regarding Margaret
Gessner, a former Fidelity employee. Gessner had been fired for embezzlement. Can
First Fidelity disclose such information? Must First Fidelity disclose it?
Appendagez, Inc.is a Massachusetts corporation that manufactures jeans, tops, and
sweaters under a line called faded glory. Mr. Segal had been one of their salespeople.
During a trade show, he signed orders with several stores, but Appendagez did not ship
because Segal was not their agent. Segal did, however, still have his display samples
and order forms. Is Appendagez required to fill the orders?
List the information that will be required to file a valid complaint on a breach of
contract suit.
ABC partnership owns and operates a potato farm in Idaho. A, B, and C are the
partners/owners. C is having significant personal financial problems. Savoy Stores has
obtained a judgment against C in the amount of $l2,341. Savoy knows that ABC is
about to harvest its potatoes. When the ABC potatoes are being transported for
processing, Savoy takes one-third of the potatoes to satisfy the debt. A and B object. C
claims he is using the partnership property to satisfy a debt. Can C do this?