Securities may not be sold or marketed to the public until the SEC has completed its
review phase and the registration becomes effective.
The law tends to provide more protection to residential tenants than it does to
commercial tenants.
An individual filing for Chapter 7 may always keep their car.
The government must pay when it exercises its right of eminent domain.
The United States has adopted the country of origin principle to determine the
application of law in international on-line disputes.
Debtors may keep certain assets after they have filed for liquidation.
Negligence may result from either an intentional or unintentional act.
Congress’s broadest powers are derived from the Commerce Clause.
According to the mailbox rule, a revocation is valid the moment that it is mailed.
Suggestive trademarks only gain trademark protection if they have acquired a
secondary meeting.
If an offer does not specify a required type or form of acceptance, the offeree is required
to provide a written acceptance for valid mutual assent to be proven.
Mediation is an involuntary process that involves a third party decision maker.
The operating agreement of the LLC often controls the amount and methods of
capitalizing the business.
Leah is a first year elementary school teacher at a private religious school. The parents
and kids love her and she gets along with everyone. One month after starting, she’s
called into the headmaster’s office and handed an envelope containing spring break
college photos of her topless, guzzling beer and alcohol while sitting in various men’s
laps. The headmaster informs her that she is terminated immediately and that she must
clean out her desk and removes all personal belongings by the end of the day. She
demands to know where the headmaster got these photos and he tells her that they
monitor social networking sites. These pictures had been posted to a site she no longer
uses and had forgotten about. She will be successful if she sues for wrongful
termination based on invasion of privacy.
A plaintiff need not be in a minority of a protected class to be covered under Title VII.
Employers, in some states, enjoy an absolute privilege when giving employment
references as long as the reference is factual and without malice.
Property owners of contaminated land are not exempt from liability for cleanup even if
they bought the property unaware of pollution.
Zoning is generally done at the state level through statutes passed by the state
legislature.
Private international law primarily addresses relationships between countries, business
entities, and international organizations.
There are no exemptions to the doctrine of sovereign immunity.
Growing marijuana for purely personal medical use while possessing a valid
prescription in a state that has approved medical use of marijuana has been found to be
interstate commerce.
Under concepts articulated in McPherson v. Buick, a manufacturer of a defective
product is only liable to the purchaser of the product and not to every user.
Federal laws concerning discrimination expressly preempt state laws and prohibit them
from imposing additional obligations and legal responsibilities on employers not
covered under the federal statutes.
Company executives taking foreign officials to dinner is not bribery under the Foreign
Corrupt Practices Act.
One of the major reasons that Enron failed was because they did not have an articulated
Code of Ethics to guide them.
The Clayton Act was amended by the Robinson-Patman Act.
In Chapter 11, creditors file a reorganization plan which articulates a specific strategy
and financial plan for emerging from financial distress.
States often have their own versions of federal administrative agencies.
The doctrine of equivalence will negate the effect of the doctrine of omission if the new
item performs substantially the same function as the already patented item.
Generally, everything relevant to a dispute is discoverable in a civil law suit unless
protected by a legal privilege.
As of today, the Enron bankruptcy remains as the largest corporate bankruptcy in
America’s history.
Specific performance is almost always available when a real estate contract is involved.
What is one of the main criticisms of the Superfund laws according to the critics?
A.taxpayers fund too much of the cleanup costs
B.it is too difficult to determine who is responsible for contamination
C.does not halt further environmental damage from toxic waste sites
D.transporters of hazardous waste should not be held liable for transporting the
materials
Which of these is not one of the FDA’s powers?
A.ordering mandatory recalls
B.the right to step in and close a business
C.the seizure of contaminated products
D.filing civil enforcement lawsuits
Angel is Hispanic and has applied for a job at Buckets Inc. Buckets Inc. has a
workforce that is 45% Hispanic, 35% black and 20% white. This closely approximates
the available workforce available to Buckets. Angel is turned down for the job and is
told that they have too many Hispanics, so he couldn’t be hired. He is a victim of:
A.mixed motive discrimination.
B.disparate treatment.
C.affirmative action.
D.disparate impact.
During the pleadings stage, a third party may be brought into the trial by a defendant by
filing a/an:
A.supplementary answer.
B.counterclaim.
C.cross-claim.
D.additional complaint.
Creation and internal governance of corporations is governed by:
A.state laws.
B.federal laws.
C.the Revised Model Business Corporation Act.
D.common law.
In PGA Tour, Inc. v. Martin, Martin was a golfer who sought accommodation under the
Americans with Disabilities Act for a recognized disability which caused pain due to
restricted blood flow between his legs and heart. He asked to use a cart which would
then permit him to play full rounds of golf. The PGA responded that its rules prohibited
carts during tournament play and that allowing cart use would fundamentally change
the game. The court determined that:
A.Martin should be allowed to use the cart because it provided him with little or no
advantage under the circumstances and such an accommodation was not unreasonable
nor did it fundamentally change the game.
B.Martin should be allowed to use the cart because carts are used at country clubs
where strict rules of golf are required so the PGA ban was arbitrary and discriminatory.
C.Martin should not be allowed to use the cart because having one player using a cart
and banning all others discriminates against the other players.
D.Martin should not be allowed to use the cart because there were other
accommodations offered by the PGA which were reasonable and Martin had no right to
reject them.
Which of the following situations will create diversity jurisdiction?
A.New York sues Virginia to stop the sale of firearms to New York residents
B.April, a Delaware resident, is a student at the state university in Delaware and sues
for $1,000,000 after she is molested on campus due to lack of appropriate security
C.April, a Delaware resident, is a student at an out-of-state university and sues the
school for a $50,000 tuition refund when she must leave for a semester for a personal
family emergency and the school refuses a refund or credit
D.April, a Delaware resident sues Mike, a New York resident driving in Delaware, for
$80,000 when he rear ends her while she’s riding her bicycle and severely injures her.
A delegation will be allowed in which of the following situations?
A.a surgeon performing brain surgery
B.an actor hired to perform in a play
C.a sculptor hired to sculpt your bust
D.a painter hired to paint your home
The Financial Stability Oversight Board created by the Restoring American Financial
Stability Act of 2010 has the power to:
A.break up companies deemed to pose a threat to the nation’s financial markets even if
the company is not insolvent.
B.compel the SEC to assume an oversight position over institutions that pose a global
risk to financial markets.
C.approve or disapprove executive compensation packages, including bonuses,
regarding companies deemed “too big to fail”.
D.criminally prosecute officers and board members of companies found to have
committed fraud and who have harmed the public or the national economy.
Which of the following is not a protected class under the original Civil Rights Act of
1964?
A.gender
B.age
C.race
D.national origin
Your school’s football coach has just been fired. When the athletic director informs him
of the termination he tells the coach that although he has had recent winning seasons,
the inability to make it into post season play and his inability to groom players for the
pros has weighed prominently in the decision. He is also told that his recruiting has not
been effective and that his fund raising has been disappointing. The AD then tells him
that his pretty boy image makes him look too effeminate, he dresses like a nerd and that
he doesn’t portray the proper image of a head football coach desired by the school.
Coach’s best theory for pursuing a discrimination law suit is:
A.disparate treatment discrimination.
B.mixed motives discrimination.
C.disparate impact discrimination.
D.pretextual discrimination.
Which of the following will not create minimum contacts in a state sufficient to find
personal jurisdiction on an out-of-state defendant?
A.maintenance of a web site that provides information about a company’s products and
that provides an address or number that a customer can contact to obtain an order form
to purchase products directly from the company
B.a company maintains an office in the forum state that is manned once a week by
employees
C.a company sends sales personnel into the forum state to conduct business but does
not maintain an office within the forum state
D.a company maintains no physical office within a state and does not send sales
personnel in to conduct business but they target advertise in the forum state providing
special products and discounts for the forum state’s residents
Product liability law arises from:
A.state statutes.
B.state common law.
C.both state statutes and state common law.
D.the Uniform Law of Product Liability as adopted by each of the states.
When an LLP is formed, who files the initial paperwork?
A.an individual representing two or more persons desiring to start a new business
B.the principal in a sole proprietorship already in operation
C.a limited partnership already in operation
D.a general partnership already in operation
A corporation formed for the purpose of maintaining a charitable operation is called
a/an:
A.nonprofit corporation.
B.Subchapter S corporation.
C.public corporation.
D.closely held corporation.
In U.S. v. Microsoft the appellate court found that:
A.Microsoft’s business practices were a per se violation of the Sherman Act.
B.Microsoft illegally attempted to monopolize the browser market.
C.Microsoft did not employ illegal anticompetitive means to maintain and further their
monopoly of the operating systems market.
D.Microsoft employed illegal anticompetitive means to maintain and further their
monopoly of the operating systems market.
Each of the following is a factor used by courts to determine whether to pierce the
corporate veil except:
A.poor management and decision making performed by inadequately trained or
educated manager.
B.inadequate capitalization.
C.evidence of fraud or willful misconduct.
D.failure to follow necessary corporate formalities.
The rule making requirement that an agency does not need to publish revised rules for
comment unless they are radically different from the original is known as:
A.the arbitrary and capricious standard.
B.the Chevron test.
C.the logical outgrowth test.
D.the McDonnell-Douglas test.
Courts will apply the ________ analysis to determine the classification of an agent.
A.consistency over form
B.fundamentals over style
C.substance over form
D.classification over mode
Roger is the CFO of a corporation and is having a business dinner with some of the
company’s largest shareholders. Roger knowingly and intentionally starts drinking a
variety of alcoholic drinks and even excuses himself to secretly snort cocaine in the
men’s room. By the end of the evening he is obviously intoxicated. His dinner
companions keep buying more rounds of drinks and Roger needs no urging to continue
drinking. By dessert he is obviously extremely intoxicated. At that point his
companions ask him to sign a variety of documents, which he doesn’t read due to his
condition. They turn out to be falsified financial statements which are then supplied to
the accountants auditing the company.
A.Roger’s act of signing the documents is enough for him to be guilty of criminal fraud
B.because Roger was voluntarily intoxicated he has no defense against a charge of
criminal fraud
C.because Roger was so intoxicated, he likely could not have formed the required mens
rea and would not be guilty of criminal fraud
D.Roger is not guilty of criminal fraud because he did not voluntarily sign the
documents due to his intoxication
LLPs are formed with the filing of a ________ with the proper public official.
A.Statement of Qualification
B.Certificate of Formation:LLP
C.Record of Business Creation
D.Articles of Organization
Martin is an intern working for Tennessee Fried Chicken, an international company
with over 1000 franchised restaurants throughout the U.S. and in twenty one other
countries. They heavily advertise on television and in various print media that their
chicken is superior due to their blend of “forty-two secret herbs and spices”. Many have
tried to duplicate the recipe unsuccessfully and burglars have even been caught trying to
steal it. One day Martin is called into the president’s office for an assignment and during
the talk the president leaves the room leaving Martin alone. He sees the wall safe is
open and looks inside seeing an envelope labeled “THE RECIPE”. He opens it and sees
that it’s the list of the forty-two secret herbs and spices along with quantities and order
of use. He quickly makes a copy of the recipe and returns the envelope to the safe. That
afternoon he calls Bluto’s Fried Chicken, a TFC competitor and informs them of the
information he possesses and they arrange a meeting.
A.if Martin sells the recipe to BFP, Martin is guilty of misappropriation but BFP is not
guilty of misappropriation
B.if Martin sells the recipe to BFP, Martin is not guilty of misappropriation but BFP is
guilty of misappropriation
C.if Martin sells the recipe to BFP, both Martin and BFP are guilty of misappropriation
D.neither Martin not BFP can be guilty of misappropriation because leaving the safe
open shows the secret was not guarded as is necessary to qualify for trade secret
protections
Which of these debts may be discharged in a bankruptcy?
A.taxes
B.child support
C.a new auto purchased 90 days before filing
D.punitive damages
This amendment guarantees a speedy public trial.
A.Fourth Amendment
B.Fifth Amendment
C.Sixth Amendment
D.Eighth Amendment
In Mobil Oil Exploration & Producing Southeast, Inc. v. United States:
A.Mobil was able to get out of the contract for the $156 million lease because the new
law passed at the last minute changed the terms of the original contract amounting to
repudiation by the United States.
B.Mobil was able to get out of the contract for the $156 million lease because the new
law passed at the last minute changed the terms of the contract, barring certain types of
oil exploration, frustrating Mobil’s contractual purpose.
C.Mobil could not claim an anticipatory repudiation because even though as new law
had been passed, they had not yet filed their oil excavation plan so they could not know
whether they were facing a problem.
D.Mobil could not claim an anticipatory repudiation because even though as new law
had been passed, it did not substantially change the terms of the original contract.
Regarding limited partners:
A.they may withdraw from the partnership at any time but they forfeit their investment
if they withdraw early.
B.they may not withdraw before the time that the partners have agreed that the
partnership will terminate.
C.if the partnership agreement is silent as to notice require prior to termination, 90 days
written notice will be required before the limited partner may withdraw.
D.they must obtain a court order to withdraw because of their limited liability and its
effect on the remaining partners and third parties dealing with the business.
Tom is a city policeman and is Mr. August in the police charity calendar wearing only a
pair of Speedos and a smile. Chuck is a fellow cop and a homosexual. Every
opportunity that he has, Chuck brushes up against Tom and asks if Tom has ever been
with a man. Chuck buys Tom gifts and leaves them by Tom’s locker. Tom throws the
gifts away immediately. Tom has asked Chuck to stop but Chuck just laughs and says
that “I’ll get you someday”. Tom is and has always been a heterosexual. Tom has
complained to his superiors pursuant to department policy but they claim it’s just
horseplay and not serious. If Tom files a complaint with the EEOC:
A.he has a valid case based on hostile work environment harassment.
B.he has a valid case based on quid pro quo harassment.
C.he does not have a case because same gender harassment does not give rise to a valid
cause of action.
D.he does not have a case because Chuck’s actions are not severe enough to constitute
sexual harassment.
The business necessity defense is a defense to:
A.disparate treatment cases.
B.sexual harassment cases.
C.unequal pay cases.
D.disparate impact cases.
Which of the following does not require the filing of a form with a governmental
agency to come into existence?
A.a general partnership
B.a sole proprietorship
C.a corporation
D.a limited partnership
Mike has admired Monica for a long time and has wanted to date her but is too shy
around girls to ask. He is a football player with a reputation of being the toughest player
on the team. Monica is scared of Mike because of his size and reputation. One day
Mike summons the courage and approaches Monica who has her back to him and
doesn’t know he’s there. He puts his arms around her and gives her a gentile kiss before
letting go. He can’t believe what he did, apologizes and runs away. Monica is slightly
shaken but physically unharmed. Mike has committed:
A.conversion.
B.battery.
C.intentional infliction of emotional distress.
D.nothing, because he apologized and she was unharmed.
Which part of the Truth in Lending Act requires that certain disclosures be made before
a credit transaction is consummated?
A.Regulation Y
B.Regulation Z
C.Creditors’ Disclosure Regulation
D.Disclosure of Key Terms Regulation
Normally, the buyer’s offer in a commercial transaction takes the form of:
A.a personal letter.
B.a purchase order.
C.an acknowledgement form.
D.a phone call with the parties directly speaking with each other.
In 2002, Martha Stewart, the media mogul and CEO of Martha Stewart Living was
prosecuted for insider trading regarding her sale of ImClone stock. Her stock broker
had informed her that Samuel Waksal, the CEO and chairman of ImClone, was selling
substantial amounts of his stock in the company so she then sold her ImClone holdings.
A.since she only ‘saved” $45,000 by selling her stock her dealings were deemed too
insignificant and the matter was not pursued
B.she was found guilty of insider trading as a tippee and went to jail
C.she claimed that she was merely acting on her brokers advice and didn’t know the
information provided was material and non-public so she didn’t qualify as a tippee
D.she was found guilty of obstructing justice in a securities investigation and went to
jail
Jennifer is having a party and has invited her friends to her home. These social guests
would be legally classified as ______.
The court’s authority over disputes between the parties is called ________ jurisdiction.
Mike is Kathy’s employer. Mike tells her that she will not get a raise or promotion
unless she has sex with him. Mike has committed ________ sexual harassment.
U.N. Commission on International ________ provides arbitration rules for parties who
do not wish to spend money on the services of arbitration services but would like a
standard procedure.
Evidence that proves innocence or nonliability is called ________ evidence.
Explain the origin and justification of judicial review.
Restrictions and protections contained in a franchise agreement are called _______.
The U.S. Major League Soccer League wants to have more similarity in its licensed
goods so the league decides to contract with a single company to produce all of the
licensed goods for every team. Will MLS be able to do so?
Federal laws regulating the selling of equity in limited partnerships through
broker-dealer contracts are known as ________ laws.
The nation of Tobago is looking for new boats for its Coast Guard. Tobago enters into a
contract to purchase boats from an American manufacture while visiting their facility in
Miami. Tobago revokes the contract after the acceptance period under the UCC. The
boat manufacturer sues for contract enforcement in a U.S. federal court. Does the court
have jurisdiction over the nation of Tobago?
Fixed site emitters of air pollutants are known as ________ sources of air pollution.
What are the four primary functions of administrative agencies?
The state of Colorado has enacted a statute limiting the size of freight trains entering the
state to no more than 80 cars other than the locomotive(s) and the caboose. Assume that
there is no federal law mandating a maximum limit of cars and further assume that
freight trains frequently consist of over 100 cars. Colorado has justified the law saying
that shorter trains are safer but their evidence is not persuasive. They also claim that
very long trains inconvenience drivers and can cause major traffic jams. Trains longer
than 80 cars must stop and reduce their size, employing additional locomotives to
transport the cars through the state where they may again re-couple and proceed.
Discuss the validity or invalidity of this law.
A website lets anyone sell items to buyers from around the world. The site’s policies for
the items being sold included prohibitions on particular illegal items from being sold. It
also tells sellers that they could not list items in jurisdictions where the sale of the item
would violate the jurisdiction’s applicable laws. The E.U. has an anti-terrorism law
prohibiting the sale of pro-Irish Republican Army related items on the internet. The
website has several IRA items for sale. The E.U. found a violation of their law. Would a
U.S. court find the same?
Under the Revised Uniform Limited Partnership Act, the act of leaving a limited
partnership and ceasing to be a principal is called _______.
________ policy is primarily governed by the Paris Convention and the Madrid
Protocol.
The Sportsman’s Club is having their annual banquet and fundraiser and has decided to
feature a speaker that will attract a huge crowd. They contract with Hall of Fame
football announcer John Madden to be the keynote speaker. A week before the event,
John calls and says that he would like to give his brother Fred the opportunity to speak
and that John would sit in the audience rather than speak. What options does The
Sportsman’s Club have?
Commerce which is wholly contained within a state and which has no effect on other
states or foreign countries is called ________ commerce.