The effects test has been used by courts to establish personal jurisdiction over
out-of-state defendants for both intentional and unintentional acts which have caused
harm to in-state plaintiffs.
Administrative agencies are not empowered to hear cases of alleged violations of their
regulations and must depend on the courts for adjudication.
Price fixing is a clear example of a per se violation.
An agreement to purchase $499 worth of land does not have to be in writing to be
enforceable.
In an agency relationship the principal’s control must be total and continuous over the
agent.
Substantial modifications to proposed rules may be published without going through the
entire rulemaking process again.
A corporation may be a principal of an LLC.
Uncle Phil has lent you $10,000 to pay tuition and other school related costs. You’ve
now graduated and Uncle Phil is asking about repayment terms. The loan was never
evidenced in writing. This transaction falls under the UCC statute of frauds.
An option contract refers to the choices that one has when entering into a contract.
A revocation of the agency relationship requires the principal and the agent to agree to
terminate the agency.
Igor is a brilliant chemist and one day decides to try and find out why Whipple Iced Tea
tastes so good. Whipple advertises that they blend secret spices into their drink and
those secret spices are a closely guarded secret. The recipe is kept in a safe which is
kept in a vault at the home office and is guarded by two former Special Forces soldiers
at all times. Igor, after weeks of analysis has discovered the recipe. Igor is guilty of
misappropriation of the Whipple trade secret.
The Supreme Court has held that agencies have very narrow discretion regarding when
and whom to regulate.
The Revised Uniform Limited Partnership Act requires that there be a written
partnership agreement regarding limited partnerships.
Disciplinary actions rarely give rise to employment discrimination claims.
One benefit of the Subchapter S corporation is that there is no double taxation.
The main role of the bankruptcy trustee is to protect the assets of the estate.
Courts will apply a subjective standard when examining the existence of offer and
acceptance by the parties when creating an agency relationship.
Mike and Kathy have a live Christmas tree in their home. This tree is real property.
A company’s Code of Conduct and Code of Ethics may be combined into a single
document.
Criminal law regulates the rights and duties between private parties.
The per se standard applies to nonprice vertical restraints.
The Equal Pay Act was written to prohibit racial discrimination in pay.
In Estate of Weingeroff v. Pilatus Aircraft, the fact that Pilatus had purchased over
$1,000,000 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.
Ms. Bobbin, your ethics teacher, is a first year professor, just out of school and she is
very tough and demanding. You’ve done poorly on the first two tests and you think it’s
her fault. Someone tells you that she has a criminal past and without verification, you
spread this allegation. In fact, Ms. Bobbin has been a model citizen and never broken
the law. As a result of your actions, she is put on probation pending an investigation.
She cannot sue for defamation because as a professor, she is a public figure and your
conduct was intentional but not a careless disregard of the truth or with malice.
The promissory note securing a home mortgage is a security instrument.
When an employee takes leave pursuant to the Family Medical Leave Act, seniority
continue to accrue and will be applied as if they were not on leave.
Shovels R Us sends a purchase order to Acme Snow Shovel, Inc. for 500 shovels to be
delivered by September 30, 2010, in time for the winter season. Acme returns an
acknowledgment form indicating that the shovels would be delivered on March 1, 2011.
The acknowledgement letter forms a valid contract.
If goods are to be picked up at the seller’s place of business by the buyer and the seller
is a merchant, the seller retains risk of loss until the buyer takes possession of the
goods.
Lisa is doing some landscaping around her house and ordered a delivery of top soil. Her
agreement says that the delivery will be made on Wednesday and payment for the soil
will be due when the truck arrives at her house. This is an example of a concurrent
condition.
The organizers of an LLC who sign the certificate of organization are required to be
residents of the state that the LLC is being formed in.
If a written work has been completed but has not been published or otherwise put into
the public domain, fair use can never be used as a defense if the work is copied or used
by another.
Short-term contamination sites are not placed under the Superfund laws.
Generally, regarding employment at-will, employees may be fired just because the boss
doesn’t like them.
Bruno owns a French Poodle that he advertises for sale. The dog has a history of
viciously biting three local neighborhood kids without reason as well as one of Bruno’s
kids. Marge is looking for a dog to be a playmate for her children. When she comes to
Bruno’s house to see the dog, she sees it playing with Bruno’s kids and doesn’t ask about
the dog’s past behavior. She tells Bruno that she’s looking for a dog for her kids and
Bruno says nothing. Five minutes after the dog enters her house, it bites one of Marge’s
kids:
A.Bruno has not committed a fraudulent misrepresentation because silence cannot be
considered a fraudulent misrepresentation.
B.Bruno has not committed a fraudulent misrepresentation because Marge didn’t
specifically ask if the dog bites.
C.Bruno has committed a fraudulent misrepresentation because he withheld a material
fact.
D.Bruno has committed an innocent misrepresentation because he didn’t state a lie but
only withheld all of the truth.
Which of the following is not a coequal branch of the United States government as
specified in the Constitution?
A.the legislative branch
B.the executive branch
C.the administrative branch
D.the judicial branch
Shareholders generally have the power and right to do each of the following except:
A.veto a board decision to issue more capital stock.
B.veto a board decision to pursue venture capital financing.
C.approve structural changes in the corporation through the amending of the articles of
incorporation.
D.elect and remove officers.
Lloyd and Harry both are claiming patent rights protection for inventions that they
independently created. The rights to protection will be:
A.the first to file for the patent.
B.the first to have his application approved.
C.the first who actually completed the invention.
D.the first to bring it to the public realm.
Mighty Motors is a major automobile manufacturer with assembly plants in small
towns throughout the United States. Mighty Motors is suffering losses in the current
economy and has decided to stop manufacturing the Mighty Brute, an SUV with
horrible gas mileage that simply isn’t selling. They will also be closing the only plant
that is exclusively dedicated to manufacturing the Brute. This particular assembly plant
is the primary employer in the town that it is located in. Who, among the following
would be considered a secondary stakeholder in this decision?
A.Ed who has been working at the factory for ten years
B.See Through Glass who manufactures the windshields and side windows exclusively
used in the Brute
C.Mike, a town resident who teaches elementary school and drives a Hyundai Sonata
D.Tony who runs a pizza shop that many of the plant employees go to for lunch and
sometimes dinner
Carl Critic has just announced his choices of the worst Hollywood actresses of the year
and Stella Starr has been named the worst of the worst. Carl’s announcement, made in
his weekly column titled “Random Musings by Carl Critic” and published in the local
paper, claims that he believes her to have the least amount of talent in the movie
industry and that she “can’t act her way out of a paper bag”. When Stella reads Carl’s
column she immediately starts to cry hysterically and then decides to sue him. Does she
have a valid case of libel?
A.yes, her crying proves injury
B.yes, but only if his statements cause her to lose money by losing movie roles
C.no, Carl committed slander, not libel
D.no, this was merely Carl’s opinion
Frank and Jesse are operating as a general partnership. A question has arisen not
covered under their partnership agreement and also not addressed by the Revised
Uniform Partnership Act. What will the courts do to resolve the situation?
A.dissolve the partnership and allow them to reform
B.look to foreign partnership laws because RUPA encompasses all U.S. partnership law
C.look to the common law
D.look to the UCC for a gap filler
From first to last, which of the following trial stages are in the correct order?
A.pretrial conference; pleadings; discovery; deliberations
B.pleadings; discovery; deliberations; jury selection
C.discovery; jury selection; deliberations; charging the jury
D.pleadings; discovery; pretrial conference; jury selection
Where a promise can only be accepted by the performance of the person to whom it is
offered is an example of a/an:
A.bilateral contract.
B.unilateral contract.
C.implied contract.
D.quasi contract.
Although it may vary because of the nature of the case, generally, a delay of more than
________ is presumptively an unconstitutional violation of a defendant’s right to a
speedy trial.
A.four months
B.six months
C.eight months
D.ten months
Which of the following inclusions in an employment advertisement would likely not be
considered discriminatory?
A.young persons wanted
B.seeking recent college graduates
C.high school graduation required
D.stewardesses needed
If a civil trial results in a hung jury:
A.the plaintiff wins.
B.the defendant wins.
C.the litigants must start the process over and conduct a trial with a new jury.
D.this will be grounds for an automatic appeal and the appellate court will render a final
decision.
Sunshine Corporation has just filed bankruptcy. Among the investors, who will be paid
first?
A.all investors are treated equally so each gets paid simultaneously their fair share
B.bond holders
C.common stock holders
D.preferred stock holders
In Lucy v. Zehmer, the two parties were drinking in a bar when Lucy offers to buy
Zehmer’s farm. After some negotiation a written contract was executed. Zehmer
claimed that the whole episode was only a joke and he never intended to sell the farm.
The court determined that:
A.since Zehmer claimed to be “high as a Georgia pine” and it was only the liquor
talking, there was no contract.
B.since the contract was written without lawyers present, it was likely not really serious
so no contract was actually formed.
C.because the terms were fair, the parties are bound by the contract regardless of their
intent or capacity.
D.because negotiations and modifications to the written agreement lasted between
30-40 minutes, it appeared that both parties were serious so even if Zehmer had no
objective intent to sell the farm he is still bound by his actions and the contract was
enforceable.
Victims of odometer tampering may receive what kind of damages?
A.actual damages
B.double damages
C.triple damages
D.liquidated damages
In Discover Bank v. Owens, Owens received a Discover credit card with a limit of
$1,900 and charged $1,460. The credit card agreement allowed Discover to add fees
and increase her interest rate when Owens paid her bill late or did not pay in full.
Owens became disabled and experienced severe financial difficulty. She stopped using
the card and made regular payments but continued to accrue fees. She eventually paid
$3,492 towards her original debt but still owed Discover $5,564 when Discover brought
a collection suit against her. The court held that in this situation:
A.Owens owed $5,564 because she agreed to the terms of the credit card agreement
when she used the card the first time.
B.Owens owed $5,564 because Discover did not have a duty to mitigate their damages
over the six years.
C.Owens did not owe the $5,564 because her disability prevented her from having the
financial means to pay the money.
D.Owens did not owe the $5,564 because the terms of the agreement were manifestly
unconscionable in these circumstances.
Alan has accepted a new job. Which of the following is not a contract condition related
to that job?
A.medical and dental benefits will start after Alan has worked for six months
B.Alan will receive a bonus provided that he obtains six new clients within 30 days
C.Alan’s salary will be $1,000 a week
D.Alan cannot begin work unless he passes a drug and alcohol screening
Each of the following is a pretrial motion except:
A.to dismiss for mistrial.
B.to compel discovery.
C.to dismiss.
D.for summary judgment.
Which of the following is not a major federal environmental law?
A.Clean Air Act
B.Clean Land Act
C.Clean Water Act
D.Safe Drinking Water Act
Dick has made a statement that the average person would realize is puffery. Dick is
guilty of:
A.fraudulent misrepresentation.
B.innocent misrepresentation.
C.undue influence.
D.nothing.
With regard to consideration in a sales contract, the UCC differs from the common law
in that:
A.consideration in a sales contract may be modified without additional consideration.
B.consideration exchanged must be equal or very closely equal in sales contracts.
C.consideration is not required in sales contracts.
D.consideration in a sales contract may be modified as long as additional consideration
is provided.
Mike lends money to Kathy as a business loan to Kathy who is capitalizing her start up
sole proprietorship named Kathy’s Things. If Mike must sue for repayment, he would
sue:
A.Kathy.
B.Kathy’s Things.
C.Kathy and Kathy’s Things.
D.no one since the loan makes him a partner.
Penalties for violations of the ’33 Act may include each of the following except:
A.civil penalties and fines.
B.revocation of the corporate charter for egregious cases.
C.criminal prosecution and incarceration.
D.revocation of the investment by the investor.
If a credit card is issued to a consumer under the age of 21 the credit card company is
required to:
A.obtain the signature of a cosigner who has the means to repay any debt.
B.to give a 60 day notice before making any rate hikes.
C.notify the card holders parents so they can monitor their child.
D.set reasonable spending limits.
In a disparate impact case, if an employer can show that a challenged employment
practice is job related and consistent with business necessity, the plaintiff can still win
by showing that:
A.there is an alternative practice that would have less discriminatory effects, but the
employer declines to use it.
B.the employer has engaged in a pattern or practice of discrimination.
C.the difference in selection rates across protected class groups is statistically
significant.
D.there is additional evidence of a discriminatory motive.
The only state that has not adopted the UCC is:
A.California.
B.Louisiana.
C.Texas.
D.Arizona.
The highest and most comprehensive duty owed by a landowner to a person on their
property is to a:
A.invitee.
B.licensee.
C.accidental trespasser.
D.intentional trespasser.
A limited partnership requires:
A.at least two general partners.
B.at least two limited partners.
C.a written limited partnership agreement.
D.at least one general and one limited partner.
Tabletop, LP is registered in Nebraska but operates the business in the state of Iowa.
Nebraska will require an in-state address and a ________ be identified to receive mail
and accept legal documents.
Legal systems that are made of two or more different legal systems are known as:
A.mixed legal systems.
B.combined legal systems.
C.multiple legal systems.
D.blended legal systems.
A significant change or deviation from the terms of a contract is called a ________
change.
Aspirin generally comes in 81 mg and 325 mg doses. Arnold’s Aspirin Company starts a
marketing campaign touting the 81 mg to be children’s doses and the 325 mg to be adult
doses. Aspirin is widely accepted to be a generally safe, nonprescription product for
those without aspirin allergies. Arnold’s sells the 81 mg pills in bottles with cartoon
characters and flavors the pills to make them more palatable. It has been proven that
giving aspirin to children under 12 may cause Reyes Syndrome, an often fatal disease
linked to treatment of viral infections with aspirin. The back label of Arnold’s 81 mg
bottles is printed in very small and cramped type and contained in the middle of one
paragraph it states, in type similar in font, size and color, “not for 12 yrs or under”.
When Deloris’s 8 year old got sick she bought some Arnold’s 81 mg aspirin for her son
and her son contracted Reyes Syndrome. Does Deloris have a cause of action in tort for
her son’s injuries?
What is the difference between a derivative action and a direct action regarding
shareholder lawsuits and what are the typical grounds for these suits?
What was the justification for, and the purpose of, the Lilly Ledbetter Fair Pay Act of
2009?
Let us assume that you have just graduated and you’re employed doing the job you have
trained for and hoped and expected to have. State what that job is (if you’re undecided
choose something) and explain whether the position makes you exempt or nonexempt
from standards and regulations under the Fair Labor Standards Act and how the FLSA
will or will not apply to you.
When the original parties to a contract agree to allow one of them to substitute another
to perform the contract, this is called _______.
Frank is the president and CEO of a publicly held corporation and is quoted in the paper
as saying that the company is solid and has a bright future. He mentions a number of
projects and plans that he anticipates will be successful in both the short term and long
term, thus benefitting the company. Betty Sue reads this article and calls a broker
ordering her to buy shares in Frank’s company. After two years the stock is below the
price she paid for it and she brings suit claiming that Frank committed a fraud when he
stated that the company was solid and would be very successful in the future. What
must be proven by each side and what is the likely outcome of this suit?
Expressly firing someone for whistle-blowing constitutes the act of ______.
How do compensatory damages and consequential damages differ?
Delta Tau Chi is a college fraternity and is recruiting new members. Although hazing is
banned, they never the less take the pledges to the local zoo where they hand them
bows and ribbons ordering them to break into the monkey house exhibit and decorate
the inhabitants. The monkey house has a distinct sign stating, “DANGEROUS
ANIMALS, DO NOT APPROACH OR ENTER THE PREMISES!” The pledges go in
anyway and two of the pledges are severely injured and sue the zoo for their injuries.
Discuss the liability of the zoo and the pledges.
You have just purchased a new car. After driving the car for a few days without
incident, you then go through a puddle of water while turning through an intersection.
The water splashes up and your power steering momentarily stops operating. You lose
control running into a car parked along the road. You read in the paper the next day that
this has occurred with this model car before and a recall is being considered. If you sue
the manufacturer, what are the three theories of product liability you may sue under and
how do they differ?
Under the concept of ______, foreign nations are exempt from jurisdiction in foreign
courts.
Define and explain how the negligence defenses of contributory and comparative
negligence differ.
Mike’s Models Inc. is a modeling agency registered in Delaware, specializing in Central
and South American women for print, runway and other modeling work. The company’s
manager of the Venezuelan territory, Jose a Venezuelan citizen, has discovered Sonja
and believes that she has the potential to be a superstar. Because permission for her to
travel to the U.S. could take weeks and they want her for a car show in ten days, Jose
offers the head of Venezuelan immigration services the use of the company’s New York
City penthouse and personal use of the company’s limousine the next time the official
visits the United States for putting Sonja’s papers through quickly. The official turns
him down. Has the Foreign Corrupt Practices Act been violated? Fully explain why or
why not.
Structures erected on real estate are called ______.
Bud and Lou own and operate a bakery. They each perform all of the functions in the
bakery from baking to cleaning up. They make decisions jointly and hold themselves
out to the public as business equals. When starting the business, Bud contributed
$60,000 and Lou $40,000 to capitalize the business. They have a written agreement
stating that they will share profits equally, however; responsibility for losses will be
allocated at 60% to Lou and 40% to Bud. If Helen slips and falls in the shop and gets a
judgment for $100,000, how may Helen proceed?
The right of states to protect its citizenry is called its _______.
Give an example of a boycott that would not be a per se horizontal restraint. Explain
why it is a per se horizontal restraint.
How does an agency regulate through licensing?