The physical presence of an out-of-state party in a particular state is generally an
automatic basis for jurisdiction over the defendant by both that state’s courts and the
federal trial court within that state.
Because there is no general duty to act or assist others, a store is not liable should they
wash a floor and fail to notify the public of the slippery condition and someone is
injured. Stores do it as a convenience to customers but not due to a legal duty.
The implied warranty of merchantability applies to sales by any seller to any buyer.
State and local affirmative action plans in race or gender based preferences in hiring
government contractors are subject to strict scrutiny.
It is not market allocation if two different airlines agree to split the major travel routes
between them, rather than both fly to all the same cities.
In Aquino v. Honda of America, Inc., even though the charges against Aquino for
alleged vandalism were dropped, Honda’s reasonable belief, after their own
investigation, met the burden of proving that they had a legitimate, nondiscriminatory
reason for his firing.
Every buyer boycotting a supplier that uses child labor to produce their raw materials is
committing a per se violation of the Sherman Act.
The Uniform Limited Liability Company Act preempts all state laws in order to
maintain consistence throughout the U. S. business community.
What is considered an ethical practice, once established, remains constant and
acceptable unless specifically preempted by statute.
Congress may tax activities and property that it might not be authorized to regulate
under any of the enumerated regulated powers.
The original Howey test required that the investor have no involvement with the
generation of profits, however, modern courts have permitted a limited passive
involvement on the part of the investor.
LLCs are pass-through entities for tax purposes, however; LLPs are taxed at the entity
level without tax liability passing to partners other than their personal salary income if
any.
Once an entry becomes part of credit report, it is permanently a part of the report.
The highest court in the state is always called that state’s Supreme Court.
If a student goes to the library and plagiarizes text from a book or other publication,
they are guilty of indirect infringement.
In U.S. v. Lopez, the Supreme Court agreed with Congress saying that gun possession in
schools made it more difficult for a student to obtain an education and was therefore an
interstate commerce issue.
The standard that must be met for a plaintiff to win a trademark infringement claim is
likelihood of confusion.
When an adverse possession of real property occurs, title to land transfers without the
delivery of a deed from the former owner to the new owner.
The Superfund requires that all states have emergency procedures in place in the event
of a chemical spill.
Prior to the passing of the Sarbanes-Oxley Act, the auditing in the accounting
profession was self regulating.
There are 51 criminal justice systems in the United States.
With regard to dissociation and dissolution, the Revised Uniform Partnership Act
adopted and reserved the same general rules and procedures as its predecessor, the
Uniform Partnership Act.
Generally, mutual mistakes will often lead to the court allowing an avoidance of a
contract; however, a unilateral mistake is not usually grounds to cancel a contract.
LLCs are required to name a member as its registered agent and may not use a
commercial registered office provider.
After an offer is made, the offeror may revoke that offer at any time, even if the offeree
has not been given a reasonable period of time to decide whether or not to accept.
Craig has been hired by Brian to negotiate a deal with Rudy. Brian instructs Craig that
while in Rudy’s office, should he be able to steal the Johnson file he is to do so. If Craig
has the opportunity to steal the file but fails to do so, he is in violation of his duty of
obedience and to follow his principal’s instructions.
Agencies tend to employ large amounts of attorneys to make sure that the rulemaking
process is legally complaint.
Adam Smith’s book, The Wealth of Nations, is a source of support for some elements of
antitrust law.
The court cannot force creditors to agree to a reorganization plan even if it is fair,
equitable, and feasible.
You can be guilty of bribery even if the party you have made the offer to turns the offer
down.
Any corporation that does not make money is classified as a nonprofit corporation.
States may require that LLPs carry liability insurance to protect clients and customers
as a condition of LLP formation.
Ben is the manager of a branch of a large bank. He has regularly taken money from
customer’s accounts for his own use and changed the bank records to cover his actions.
Ben is guilty of:
A.a conspiracy.
B.a Ponzi scheme.
C.racketeering.
D.embezzlement.
Who, among the following, is not present during a pretrial conference?
A.the judge
B.the parties
C.the court reporter
D.the party’s attorneys
The Clean Air Act’s tailpipe emissions standards are set by:
A.each state adopts their own standards.
B.each state may choose between federal or California’s standards.
C.each state must use the federal standards.
D.the car manufactures set the emission standards.
Which of the following is not classified as an equitable remedy?
A.specific performance
B.damages
C.reformation
D.injunctive relief
In No Spray Coalition, Inc. v. The City of New York, No Spray Coalition filed a lawsuit
in New York City to stop the city’s program of spraying for mosquitoes to prevent the
spread of the West Nile Virus, a potentially fatal disease. The program included both
ground and aerial spraying of a potentially hazardous pesticide. No Spray contented that
the chemicals were being sprayed in violation of the Clean Water Act (CWA). The court
found that:
A.No Spray was not allowed to sue under the citizen suit provision.
B.New York was in violation of the CWA because the pesticides it was spraying entered
the city’s rivers and navigable water.
C.New York was spraying the pesticides according their labels as approved by the
Environmental Protection Agency (EPA) and therefore was permitted under the CWA.
D.The risks of the spread of the West Nile Virus outweighed the risks to the navigable
waters and so spraying was therefore permitted.
Which of the following would be valid grounds to recognize and apply a bona fide
occupational qualification?
A.a survey of customers at a restaurant shows a preference for female servers so males
are not hired
B.a survey of customers at a health spa indicates that same sex attendants are wanted in
locker rooms for privacy reasons
C.a factory is in a bad part of town so they refuse to allow women to work the night
shift for safety reasons
D.a church has always had a white pastor so other races who apply are automatically
excluded
When does an automatic stay become permanent?
A.never
B.once the bankruptcy proceedings have ended
C.when the petition is determined to be valid
D.when the debtor files for bankruptcy
In U.S. v. LaGrou Distribution Systems, the defendant company suffered from an
extremely serious rat infestation. Stewart, the president of LaGrou defended saying he
had no specific knowledge of meat contamination so he was not culpable.
A.Stewart was found guilty because he knew of the rat problem and didn’t do all that
could be done to control the problem
B.Stewart was found not guilty because he recognized the problem and instructed
employees to work daily to control the problem
C.Stewart was found guilty because even though his subordinates hid the problem from
him, they did so in the normal course of business making senior management liable
D.Stewart was found not guilty because the court recognized that when 20 million
pounds of meat are stored in a facility, it is impossible to control rats that target the
meat
Enron Corporation was a multinational conglomerate with a core business of:
A.oil and gas exploration and production.
B.energy trading.
C.insurance and stock speculation.
D.banking and mortgage lending.
Which of these is not one of the steps in a three step test for attempted monopolization
under the Sherman Act?
A.the entity had a demonstrable and specific intent to achieve a monopoly
B.the entity acted in an anticompetitive manner designed to injure its competitors
C.the entity formed an agreement with others to achieve a monopoly
D.dangerous probability that monopoly power would fact be achieved
Diversity jurisdiction requires citizens of two different states:
A.or a controversy of $50,000 or more.
B.and a controversy of $50,000 or more.
C.or a controversy of $75,000 or more.
D.and a controversy of $75,000 or more.
Cybersquatting describes the practice of:
A.registering multiple domain names and then selling them back to companies at
inflated prices.
B.hacking into a company’s website to install a virus or Trojan horse designed to steal
information but allow the site to continue operation.
C.using mechanical devises to access a company’s website multiple times to the point
that traffic to the site is slowed or blocked.
D.hacking into a company’s website to install a virus designed to cause the company’s
website to totally cease operation.
What is the minimum amount that a product must cost to be covered by the
Magnuson-Moss Act?
A.$5
B.$10
C.$15
D.$20
Rich has been arrested for a series of twenty one home burglaries that spanned over
nine months. The news regarding the crime spree was on television, on radio and in the
newspapers on a regular basis. His lawyer doesn’t believe that Rich can get a fair trial
locally so he will ask for:
A.a change in personal jurisdiction.
B.a change in subject matter jurisdiction.
C.a change in venue.
D.a change using a long-arm statute.
A grand jury will issue a/an ________ if their investigation indicates that a defendant
should be held over for trial.
A.indictment
B.information
C.warrant
D.summons
Which of the following is not eligible for immediate trademark protection?
A.fanciful trademarks
B.descriptive trademarks
C.arbitrary trademarks
D.suggestive trademarks
Mary Beth has written a novel. Copyright protection regarding her work will be for:
A.70 years beginning from the date she began writing the novel.
B.70 years beginning from the date that she completed the novel.
C.70 years beginning from the date the novel is published.
D.70 years after her death.
This economist/philosopher is cited in support of frequent meetings being
circumstantial evidence of anticompetitive collusion?
A.Plato
B.Socrates
C.John Locke
D.Adam Smith
In Grimshaw v. Ford Motor Company, if Ford had made the repairs to the cars,
diminishing profit but enhancing customer safety, which theory of corporate social
responsibility would Ford have been exhibiting?
A.the narrow view a/k/a invisible hand theory
B.the moderate view a/k/a government’s hand theory
C.the hybrid view a/k/a citizen’s hand theory
D.the broad view a/k/a management’s hand theory
In the cases of Heart of Atlanta Motel v. U.S. and Katzenbach v. McClung, the Supreme
Court found illegal discrimination under the Civil Rights Act of 1964 by applying:
A.the Commerce Clause
B.the Supremacy Clause
C.the Necessary and Proper Clause
D.the Equal Protection Clause
In Arthur Andersen LLP v United States, Andersen’s appeal of their previous conviction
was overturned by the Supreme Court because:
A.it was determined that the trial court’s jury instructions were defective.
B.it was determined that the government had not met its burden of proof.
C.it was determined that Andersen was acting solely on Enron’s directions and that only
Enron could be held responsible.
D.it was determined that no law existed at the time that Andersen acted that prohibited
the shredding of corporate documents and such law was passed after the scandal and
could not be enforced retroactively.
What step comes directly prior to public comment in the rulemaking process?
A.judicial challenges
B.proposed rule publication
C.public comment
D.enabling statute
Saul was elected to the board of trustees of Round Way Corp. four years ago. He makes
sure everyone knows he’s a board member and always brings it up at parties.
Unfortunately he cares more about the prestige than doing a good job so he hasn’t
attended board meetings nor is he attending committee meetings to which he’s been
assigned. If the insiders at Round Way enter into a series of bad business deals causing
financial loss to the corporation:
A.Saul is shielded from liability under the corporate veil.
B.Saul cannot be held responsible because he didn’t vote to approve the transactions.
C.Saul will be liable because his inattention will likely be considered negligence on his
part.
D.Saul will be held liable because by accepting the board position he has opened
himself up to liability for the actions of the corporation.
In Automotive Supply Co. v. Scene-in-Action, Scene rented a commercial space from
Automotive. Soon after taking possession of the premises the heat started
malfunctioning for hours at a time with the temperature dropping to below 50 degrees.
After numerous employees stopped coming to work due to cold and illness, Scene
moved out, claiming a constructive eviction.
A.because Scene was a commercial tenant they were not afforded the same rights as
would be given a residential tenant and they were found to be breaching the lease
B.the court determined that the cold was not so bad that it affected Scene’s right to
habitability and beneficial use so they were found to be breaching the lease
C.Scene would have had the right to claim a constructive eviction had they vacated the
premises immediately after the problem arose but since they didn’t do so, remaining
despite of the problem, they waived the right to claim a constructive eviction and were
found to be breaching the lease
D.Scene was entitled to vacate the premises within a reasonable amount of time and
was not required to vacate immediately
Which of these was the first major antitrust law?
A.Clayton Act
B.Celler-Kefauver Antimerger Act
C.Sherman Act
D.Federal Trade Commission Act
The Chicago Cubs major league baseball team is in the playoffs and doing well. Behind
the left field wall there is an apartment building and the owner advertises, “Space
available on the apartment building roof with a clear view of the field available for the
World Series. Bring a lawn chair, your radio and a cooler and enjoy the game. Just
$50.00 per game.” Bart, a lifelong fan, answers the ad and pays the building owner
$100.00 to reserve space for the first two games. Unfortunately the Cubs start playing
poorly and don’t make it to the World Series.
A.the building owner does not have to refund the money because Bart reserved space
and the space is still there for him to use whether the games are played or not
B.the building owner does not have to refund the money because it’s not her fault that
the Cubs didn’t make it to the world series
C.Bart will get a refund because impracticability
D.Bart will get a refund because of frustration of purpose
Each of the following is a discharge by mutual consent except:
A.accord and satisfaction.
B.novation.
C.rescission.
D.frustration of purpose.
Judicial review:
A.is the power or right of a court to hear a case
B.is the power of a state or federal court to declare a statute unconstitutional
C.is the power of an appellate court to reverse a decision made in a lower court
D.is the power of a federal court to declare a state or federal statute invalid if
inconsistent with the constitution
An Oregon Corporation and a New Hampshire Corporation have entered into a contract
and agreed that any legal disputes will be conducted using New Hampshire law. This
agreement is called a:
A.state selection clause.
B.venue selection clause.
C.site selection clause.
D.forum selection clause.
The legislation that established a process for federal agencies for making decisions that
may reasonably impact the environment is called:
A.Environmental Protection Act.
B.National Environmental Policy Act.
C.Environmental Decision Impact Act.
D.Clean Air Act.
Which of these is an example of a tying agreement?
A.as part of purchasing a new computer, a buyer must also purchase a new monitor
B.when purchasing a new digital music player, a buyer is given the option of buying
songs
C.when purchasing a used car, a buyer is offered a discount on new tires
D.when purchasing a couch, the buyer is given free throw pillows
The owners of a corporation are the:
A.promoters.
B.officers.
C.board of directors.
D.shareholders.
The Revised Uniform Partnership Act mandates that with regard to partnership debts
and liabilities, general partners are:
A.not personally liable for non-debt liabilities which may only be charged to the
partnership but personally liable for debts.
B.personally jointly liable for unpaid debts and liabilities.
C.personally jointly and severally liable for unpaid debts and liabilities.
D.not personally liable for debts or liabilities which may only be charged to the
partnership.
If an LLP does not have a partnership agreement, the courts will look to the ________
to resolve internal management disputes.
A.Revised Limited Liability Partnership Act or Limited Liability Partnership Act if the
RLLPA is not adopted
B.Revised Limited Liability Company Act or Limited Liability Company Act if the
RLLCA is not adopted
C.Revised Uniform Partnership Act or Uniform Partnership Act if the RUPA is not
adopted
D.common law
When the parties perform their obligations in good faith in order to complete the
contract, this completion is called _______.
Disparate impact is analyzed using the ________ standard.
Lois is a reporter for the school newspaper and generally writes satirical articles
spoofing students, faculty and school policy. After one particular article, Professor
Mackey fails to find the humor in her portrayal as a left over 1970’s hippie and sues
Lois for defamation. In fact, Professor Mackey is a modern woman with a degree in
sociology and has written extensively on American culture in the 1960’s and 70’s. She
did attend Woodstock, still listens to Led Zeppelin and still occasionally wears tie-dyed
tee shirts when not otherwise professionally dressed. The state trial court finds for
Professor Mackey and the jury awards her $10 Million. Is there anything that Lois can
do besides filing for an appeal?
In a minority of the states, the articles of incorporation are called the ________.
The procedure for collecting additional capital contributions from partners as necessary
is called _______.
Maria has just sat down and is ready to take her last final exam before graduating. Just
before the tests are distributed she discovers that all three pens that she brought are out
of ink. She turns to Mike, a classmate, and asks to borrow a pen. Recognizing her
predicament, he says, “No, I won’t lend you a pen but I’ll sell you this BIC ballpoint pen
for $100.00″. Recognizing that she has no alternative, she gives him the money. A BIC
pen is worth about $.10. Afterwards she demands a return of her cash and offers to
return the pen. Mike laughs and says, “No, a deal’s a deal”. How would the courts look
at this “deal”?
The illegal act that constitutes the crime and results in criminal liability is called the
_____.
A ________ is one that is regularly engaged in the sale of a particular good.
In 1975, Denise purchased a used Volkswagen Beetle from Don. At the sale, Don
produced a title to the car that said it was a 1972 car. In 1976, Denise sold the car to Ed,
delivering a title stating that the car was a 1972 Volkswagen Beetle. Both titles were
genuine and issued by the proper state office. In the 1970’s, Volkswagen Beetles
underwent essentially no body changes and quite frankly the cars were
indistinguishable from year to year except to experts. When Ed takes the car to his
mechanic for some routine maintenance, he is told that the car is actually a 1970, not a
1972 model. Ed immediately calls Denise and accuses her of fraud. Denise calls Don
and is told that the car was indeed a 1970 car but he had replaced the motor with a new
1972 motor and had the car reregistered for the year of the new engine which at the
time was legal in that state. Has Don committed an actionable wrong? Has Denise
committed any form of an actionable wrong?
People and companies that are directly and indirectly affected by another company’s
decisions are called _______.
Name the various categories of torts and explain the essential differences between.
Angela has just graduated and is ready to go on with her life. She loves good food and
loves to party so she decides to combine her two loves and open a restaurant/bar.
Although she has a lump sum of money she doesn’t have management experience or
management knowledge since she was a French major in school. When she approaches
landlords to find a suitable place for her business they see that she is likely to not be
successful on her own so they won’t deal with her. What might she do to best
accomplish her goal of restaurant/bar ownership?
Evidence that stems from the original evidence is called ________ evidence.
What is the logical outgrowth test?
What is puffery? Provide an example.
A standard applied to all employees or candidates for employment equally but
never-the-less is shown to be discriminatory is called a ________ standard.
The standards courts use to determine violations of the Sherman Act are the rule of
reason standard and the ________ standard.
Consideration in a small or minimal amount that is written into a contract but never
actually paid is called ________ consideration.
A person who receives non-public confidential information regarding a company and
uses that information to realize a profit is called a _______.
Name the five step process that a manager should use for ethical decision making.