In order for a copyright holder to collect money damages from a person who used
copyrighted material, it must be proven that:
a. the infringement was intentional.
b. the copyright holder sustained more than $500 in actual damages.
c. the copyrighted material contained the copyright symbol, name of the copyright
holder, and the year of copyright.
d. None of the above.
Sid burned his own warehouse in an attempt to collect on a fire insurance policy. Sid
has committed:
a. arson.
b. larceny since he committed an act intended to wrongfully obtain money from his
insurance company.
c. a crime called “burning to defraud insurers” since the crime of arson only applies to
property owned by another person.
d. an intentional tort, but not a crime since a person has a right to destroy his own
property.
Fashions, Inc. has 12 shareholders. The company is subject to the Model Act. What
officers is Fashions, Inc. required to have?
a. A president, secretary, and treasurer.
b. A president and a secretary, and they can be the same person.
c. A president, at least one vice-president, a secretary, and a chief financial officer.
d. Whatever officers are described in the corporate bylaws.
Which of the following is a true statement about tort reform?
a. Almost all the states have passed statutes limiting the amount a jury can award in a
tort case.
b. Congress has proposed and debated bills placing limits on tort awards, but so far has
not enacted such legislation.
c. Large medical malpractice awards account for about 60 percent of the dramatic
increase in health care costs in the United States during the last two decades.
d. All of the above.
Which of the following types of property would be classified as “goods” under Article 2
of the UCC?
a. Cash in hand.
b. A stock certificate.
c. A computer.
d. A membership to a health club.
Who owns and controls an accountant’s working papers?
a. The client, in theory.
b. The IRS.
c. The accountant, in theory and practice.
d. The AICPA.
Great State Bank claimed that Wiles Accounting committed fraud in the preparation of
an audit. To hold the accounting firm liable, which of the following elements must be
established?
a. Knowledge or reckless disregard of the truth.
b. A fiduciary relationship.
c. Failure to exercise due care.
d. An executed engagement letter.
Which of the following is true about a PMSI?
a. It perfects automatically.
b. It must involve consumer goods.
c. It must be taken by someone selling or financing the goods.
d. all of these answers are true.
John enters into a contract to paint Chad’s house. When Chad decides on a color, John
will buy the paint and paint the house for the price of $2,500. This contract is governed
by:
a. the common law of contracts governs because this is a mixed contract (one for
services and goods).
b. the common law of contracts governs because the predominant factor of the contract
is for the sale of services and not goods.
c. the Uniform Commercial Code governs because a sale of goods is involved.
d. both the common law and the Uniform Commercial Code will govern this contract.
The CAN-SPAM Act:
a. Applies to virtually all promotional e-mails, whether or not the sender has a
pre-existing relationship with the recipient.
b. Provides unavoidable requirements for senders of promotional e-mails.
c. Requires recipients of unsolicited, pornographic e-mails to notify the Justice
Department.
d. Requires senders of promotional e-mails to provide a valid return address, which may
be a post office box or a specific physical location.
The Securities and Exchange Commission (SEC) has proposed a set of rules that would
ultimately require U.S. companies to use international financial reporting standards.
Why?
a. With global business there is a need for consistency
b. More than 100 countries already use it.
c. foreign companies would be more willing to invest in the United States if they could
use international accounting rules.
d. All of these answers are true
Why did Congress pass the Sarbanes Oxley Act?
a. Accounting rules were too restrictive and complicated to follow.
b. Because the Big 4 were spending too much money on litigation
c. In response to Enron
d. To combine consulting service and auditing services into one streamlined service
package.
Under Sarbanes Oxley what is true?
a. If a company restates its earnings the executive must reimburse its company for any
profit they made based on those misstated earnings.
b. a company may not restate its earnings.
c. Executives may retain their bonus even if the earnings of the corporation are restated.
d. None of the above are correct.
Which of the following duties can probably be delegated?
a. An agreement to perform an operation.
b. A contract to paint a picture.
c. An agreement by an attorney to draft a contract.
d. An agreement to paint a house.
A trademark lasts for:
a. 20 years after the application is filed.
b. 70 years after the death of the creator.
c. 10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d. as long as it is kept confidential.
Approximately how much merchandise is stolen from United States retail stores every
year?
a. $10 million
b. $50 million
c. $10 billion
d. $25 billion
Ryan, a minor, contracted to sell his auto to Ed, a 28-year-old. Ryan later refused to
complete the sale. If Ed sues to enforce the contract, Ed will:
a. win because Ryan was the seller.
b. win because minors can only avoid contracts for the sale of land.
c. lose, as the contract is void.
d. lose, because the contract is voidable by Ryan.
Ralph is a professional football player. He signs a valid contract with the Jets. Later, he
claims that he was also promised free use of the Jets private jet, but this was not in the
contract. What type of clause in his contract would prevent him from flying away with
this claim?
a. A complete agreement clause.
b. A “no additional terms clause.
c. An integration clause.
d. A severability clause.
Who has the right to manage the business of a corporation?
a. Shareholders.
b. Officers.
c. Bondholders.
d. The board of directors.
If a consumer cancels a door-to-door sale within the required time, how many days does
the seller have to return the buyer’s money?
a. Three.
b. Ten.
c. Twenty-one.
d. Thirty.
The requirements for a patent include all EXCEPT:
a. the invention must be novel.
b. the invention must be nonobvious.
c. the invention must be commercially valuable.
d. the invention must be useful.
The United States and Singapore have signed the Convention on Contracts for the
International Sale of Goods (CISG). Notren, Inc., a U.S. company, and SWT, a
Singapore company, have entered into a contract under which SWT is to ship party
supplies to Notren. One of the terms of the contract states, “The validity and
performance of this contract will be governed by the Uniform Commercial Code (UCC)
of the state of New York, not the Convention of the International Sale of Goods
(CISG).” The contract will be governed by the:
a. CISG.
b. Uniform Commercial Code of New York.
c. common law.
d. World Trade Law.
Assume that three automobile manufacturers all merged into one car company. Such a
merger would be a:
a. vertical merger.
b. vertical cooperative arrangement merger.
c. horizontal merger.
d. intracompetitive merger.
Don received in the mail merchandise he never ordered. The package was addressed to
him, and when he opened it he saw a brochure stating he could keep the products for
only $19.95. If he chose not to keep the products he was instructed to mail them back
within five days. Don:
a. can keep and use the merchandise without having to pay for it.
b. can keep the merchandise only if he pays the $19.95.
c. must send the merchandise back within five days if he does not want it.
d. None of the above is correct.
The case of Carafano v. Metrosplash.com, Inc. held:
a. The Fourth Amendment applies to computers.
b. Congress, in enacting the Communications Decency Act, intended that ISPs should
not be held liable for information provided by someone else.
c. Congress had weighed free speech interests with protection of the public from
offensive or obscene materials and determined that protection of the public was more
important in the Internet setting.
d. Matchmaker, because it had provided the questionnaires for collecting information
from its users, must be considered an “information content provider under the
Communications Decency Act, and it is therefore liable under the Act.
Don works at the local gas station and garage. He wants to support the general strike on
May 1, in solidarity with immigrants, the working poor and students. His boss, Betsy
tells him that she will fire him if he does not work on May 1. What is true?
a. Betsy can fire Don, and Don has no legal recourse.
b. Betsy can fire Don, but Don can recover damages against Betsy.
c. Betsy can fire Don, unless he claims that 1 May is a religious holiday for him.
d. Don has no recourse but to quit
MagNet is a U.S. company based in Utah. It is negotiating to sell $4 million worth of
computer goods to a French company, L’la. L’la is insisting that the contract be
governed by the CISG. What are some of the primary differences between the UCC and
the CISG?
Clint is auditing MegaCorp. In reviewing the sales ledger, Clint saw that MegaCorp had
sold 3,000 disk drives to CompSales, Inc. Clint reviewed the original invoice of this
sale to ensure that the date, price, quantity, and customer’s name all match. He then
verified each step along the paper trail until the disk drives left the warehouse. This
illustrates:
a. tracing.
b. vouching.
c. following.
d. monitoring.
Notren, Inc., a U.S. company, and SWT, a Singapore company, entered into a contract
under which SWT is to ship party supplies to Notren. One of the terms of the contract
states, “Any disputes that arise under this contract will be resolved in the courts of
Singapore.” This contract term is a:
a. letter of credit.
b. choice of language clause.
c. choice of forum clause.
d. draft clause.
The Fair Debt Collection Practices Act prohibits which of the following practices?
a. A debt collector falsely representing himself as a lawyer.
b. A debt collector telephoning the debtor at 8:00 a.m.
c. Visiting a debtor at work if the employer permits personal visits.
d. Using neighbors to locate the debtor.
John is auditing MegaCorp. He finds an accounts payable for 1,000 reams of photocopy
paper. He checks to make sure the paper actually arrived and that the receiving
department had signed and dated the invoice. He also checks the original purchase
order to make sure the purchase was properly authorized. This illustrates:
a. tracing.
b. vouching.
c. following.
d. monitoring.
Statements of facts about the past and present are called:
a. provisions and terms.
b. promises and covenants.
c. representations and warranties.
d. damages and remedies.
Some contracting parties are intentionally vague in contract terms.
Under the 2008 amendment to the UPC, a notarized will does not require any witnesses,
but only four states have passed this amendment.
The Patent and Trade Office will register even lewd and pornographic images.
The Rameys are selling their home. They did not set forth in the sales agreement
whether the washer and dryer, the draperies, and a cherry corner cabinet which was in
the dining room were to be included in the sale or whether they were planning to take
these items with them. The buyers are claiming these items are fixtures and should stay
with the house. The Rameys are claiming they are movable goods and they should not
be part of the real estate which was sold. Define “fixtures, identify the tests used to
determine whether an item is a fixture, and explain whether you think each of the
contested items is a fixture and why or why not.
On March 1 Donna wrote a check for $296 to Sun Services. When will the check be
overdue? What is the effect of the checks being overdue? What is the effect if the check
is stamped “Insufficient Funds by Donnas bank?
In a civil case, the plaintiff must prove the case beyond a reasonable doubt.
A contract should have a descriptive title, which is generally in all capital letters,
underlined and centered at the top of the page.
Ad valorem duty is based on the fair market value of the imported good as of the date it
reaches the United States, not the price actually paid for the good when sold for export
to the United States.
In the case of Panavision Int’l v. Toeppen, the Ninth Circuit Court of Appeals affirmed
the district court’s decision. This means that the Ninth Circuit approved the district
court’s decision and upheld the outcome in the case.
Megan agrees to sell Nancy her Rolex watch but they do not specify a price. In such a
case, the court would not enforce the agreement because all of the essential terms are
not present.
Both per se and rule of reason violations of the Sherman Act are automatically illegal.
Discuss the differences between a will and a trust.
In January, Erwin told David, his nephew, that he would give him a car when he
graduates from college. David graduated in May. If Erwin refuses to give David a car,
David can sue him for breach of an inter vivos gift.
Violations of antitrust law are either per se violations or rule of reason violations. What
are the differences between these two types of violations? Give examples of each.
Valley Mart told its employees that they would be fired if they actively supported a
unionizing effort. Valley Mart has committed an unfair labor practice.
If you have an established relationship with a buyer, you can sell small tracts of land
without a written contract.
Companies with substantial assets must notify the FTC before consummating a merger.
If the President vetoes a bill, it can still become law if both the House and the Senate
approve it with a 51% majority.
If employees wish to organize a union, the employer is prohibited from distributing
written notices to employees stating it is opposed to union activity within the company.