Religious teachings and ethics are separate and distinct and rarely if ever overlap.
If a jury is deadlocked and cannot come to a decision at the end of a trial, the prosecutor
may not bring charges to retry the defendant due to the defendant’s double jeopardy
protection under the Constitution.
A public official or public figure can win a defamation case only by proving actual
malice by the defendant.
Enumerated powers are those rights and powers granted in the Constitution to the
individual states.
The Environmental Impact Statement (EIS) is a procedural requirement for all actions
that might impact the environment.
For situations where there is an immediate threat of hazardous materials release, the
Superfund does not require immediate removal.
Conditions in American industrial plants have always been safe and humane with
regard to the treatment of workers.
Some states do not require a written management agreement regarding LLCs.
According to the decision in Cavel International, Inc. v. Madigan, the clearest case of a
state law that violates the commerce clause is a law that discriminates in favor of
foreign or international firms.
Faye is driving when she sees an accident occur a half mile in front of her. Sarah has
negligently swerved her car forcing Lindsay off the road into a tree. Lindsay is thrown
from the car and appears injured. Faye stops to render aid and while helping Lindsay
she slips and breaks her leg. Sarah is not liable in negligence for Faye’s injury because
the injury was not foreseeable and her act was not the proximate cause of Faye’s injury.
Trish is a partner in an LLP and the partnership is having a cash flow problem. To
alleviate the problem the partnership has initiated a capital call for each partner to
contribute an additional $25,000 to the business. If Trish cannot come up with the
necessary funds, she may be forced to sell her interest in the partnership.
Legally mandated arbitration is nonbinding arbitration.
Under a bilateral contract, there is no contract until the offeree performs the requested
act.
The SEC has the power to initiate criminal actions against individuals or companies that
violate security laws.
The use of treaties as a modern source of international law dates to World War I and the
Treaty of Versailles.
The standard for finding violations of the Foreign Corrupt Practices Act has never been
amended.
Betty Sue suspects that she was turned down for a job as a server at Hooters because
she is 40 lbs overweight. She may contact the EEOC who will investigate her case
based on a Title VII violation.
Agents of the debtor are the only parties that are regulated by the Fair Debt Collection
Practices Act.
Victims of odometer tampering are eligible to receive up to triple the amount of their
damages.
The Equal Employment Opportunity Commission enjoys rule making as well as
enforcement powers.
Robin is an employee-at-will and works from 8 am until 6:30 pm Monday through
Thursday. She gets ½ hour for lunch. It is a presidential election day and she goes to the
polls at lunch where she discovers a one hour line. She calls her employer who tells her
she has to be back within the ½ hour. She is told that the polls close at 6 pm so she stays
because she really wants to vote. When she returns to work late she is fired. The
employer may do so under the employment-at-will doctrine.
Lance is an avid bicyclist and sends in a $150 fee to participate in an across the state
ride in the Midwest. A week before the ride, he breaks his leg. Unless the contract
specifically provides for no refunds under any conditions, he will be able to receive a
refund based on impossibility.
UCC risk of loss provisions will govern the terms of a contract even if the parties have
specified risk allocation in the contract.
Debentures are unsecured equity instruments that are issued by a corporation.
The Fair Labor Standards Act requires that all workers be paid a minimum wage.
The order of payment for unsecured creditors in bankruptcy is specified in the state’s
UCC statutes.
The judge determines whether a crime is a misdemeanor or a felony.
Diversity jurisdiction must be shown to bring an appeal in a state’s highest court.
Rob agrees to act as an agent for Diane in selling her car. Diane has a duty of loyalty to
Rob.
The Restatement (Third) of Agency has been adopted in about half of the states.
All trade secrets are protectable by either patent or copyright laws.
A corporation is considered formed the moment the articles of incorporation are filed by
the principals.
Res ipsa loquiter does not require that the plaintiff prove the exact cause of negligence.
Bill has shoplifted at a local store stealing three mobile phones. The theft is not detected
until store camera videos are examined later that afternoon. Store management has the
right to go to Bill’s home and detain him until police arrive.
Issuing securities to the public markets the first time is called an initial public offering.
Kate is an underwriter who acted as a third party conducting a sale of securities
between Fox Co. and an investor. Subsequent to the sale it is discovered that the
disclosures made by Fox Co. were fraudulent. The investor has sued both Fox Co. and
Kate. What is Kate’s best defense to avoid liability?
A.by proving that she actually did not profit from the transaction
B.by proving that the fraud was so sophisticated that even if she had investigated the
preregistration and registration documentation that she probably wouldn’t have
discovered the fraud anyway
C.by proving that the issuing company had a long history of truthful disclosures and
had never been suspected or investigated for fraud so she was able to rely on their
representations
D.by proving that she exercised due diligence in examining the preregistration and
registration documentation and did not discover the fraud
Amanda is driving towards a busy intersection. As she goes through the intersection she
looks down and reaches to adjust the radio in her car. She runs a red light and hits
another car which then runs into a utility pole, knocking it down and causing a power
loss in a 3-mile radius. It takes the utility company 48 hours to restore electricity to the
area because of a strike by the utility union. Kimberly sues Amanda because all the
food in her refrigerator and freezer spoiled due to the power outage. What will the result
be?
A.Amanda will be liable to Kimberly because a person is liable for all consequences of
their negligence
B.Amanda will not be liable to Kimberly because she could not have actually foreseen
that it was dangerous to take one’s eyes off the road when approaching an intersection
C.Amanda will be liable to Kimberly because she should have foreseen that taking her
eyes off the road could cause Kimberly’s food to spoil
D.Amanda will not be liable to Kimberly because her conduct was not the proximate
cause of Kimberly’s damages.
If a principal would like to keep her identity secret, she would use a/an:
A.disclosed agency.
B.partially disclosed agency.
C.undisclosed agency.
D.independent agency.
The Environmental Protection Agency (EPA) does not work with other agencies to
carry out its duties.
In Yahoo! v. La Ligue Contre Racisme et L’Antisemitisme, Yahoo! ran an auction site
that allowed user to post and sell items to buyers from around the world. Yahoo!’s
policies for the items being sold included prohibitions on particular illegal items from
being sold. It also told sellers that they could not list items in jurisdictions where the
sale of the item would violate the jurisdiction’s applicable laws. La Ligue Contre
Racisme et L’Antisemitisme (LICRA) sued Yahoo! in France under a French law
prohibiting the sale of Nazi and Third Reich related items. The French court held that
Yahoo! violated the French code with their sale. Yahoo! filed a suit in U.S. District
court claiming that the ban infringed on impermissibly on its rights under the U.S.
Constitution’s First Amendment and asked that the court find that the French court’s
holding was not enforceable under American law. The district court held that:
A.U.S. courts are bound by foreign judgments if the two countries both recognize the
sovereignty of each other.
B.U.S. courts are not bound by foreign judgments if the judgment is inconsistent with
Constitution and laws of the United States.
C.U.S. courts are bound by foreign judgments based on the principles set forth through
comity and the Vienna Treaty.
D.U.S. courts are not bound by foreign judgments based on the idea of sovereign
immunity.
Joyce contracted with Mega Drug Corporation to buy vitamins on behalf of Howard, a
personal trainer. Howard told Joyce to use her own name and not to disclose to Mega
that she was working for Howard. If Joyce signs the contract in her own name only and
Howard won’t honor it:
A.Joyce can’t be sued because she’s only an agent.
B.Joyce is liable but may sue Howard based on indemnification.
C.Joyce is liable but may sue Howard based on failure of loyalty.
D.Howard has no liability to anyone since his name was never disclosed.
Which is not an example of a warranty?
A.merchantability
B.express
C.puffery
D.fitness for a particular purpose
The ________ based standard requires that the majority good be placed ahead of the
individual good when faced with a moral dilemma.
In the case of Rosenfeld v. Basquiat, Basquiat sold several paintings to Rosenfeld and
provided him with a written receipt. Unfortunately Basquait died before delivery and
Basquait’s heirs challenged the enforceability of the agreement. The court determined
that:
A.because the written agreement was completed in crayon on a scrap of brown packing
paper, the writing did not meet the formality of a proper contract.
B.because the written agreement did not contain the terms of delivery, the writing was
too vague to form a contract.
C.because the writing contained the names of the paintings, the price paid and was
signed by Basquait, the paper was sufficient to evidence a contract.
D.because the writing was not signed by Rosenfeld, the paper was not sufficient to
evidence a contract.
Management is permitted to voice objections to the formation of a union under the:
A.National Labor Relations Act.
B.Labor Management Relations Act.
C.Labor-Management Reporting and Disclosure Act.
D.Fair Labor Practices Act.
Roger is a limited partner in a business. To retain his limited liability protection he must
not:
A.participate in the approval of new partners.
B.participate in the removal of existing partners.
C.consult or be paid by the business.
D.assume management responsibilities.
The power to impeach and remove is a check and balance power of the:
A.executive branch
B.legislative branch
C.judicial branch
D.it is a power shared by all three governmental branches
The National Environmental Policy Act (NEPA) applies to interstate highway
construction.
Nora loaned money to Susan and received a signed security agreement from Susan.
What could Nora do to make sure she has priority as a creditor?
A.give the security agreement to her attorney
B.nothing, the date of signing gives Nora priority
C.file the security agreement in a security deposit box
D.take possession of the collateral
Penny is renting an apartment from Albert. Every time Penny flushes the toilet the toilet
overflows and she must clean and mop the floor of her bathroom. She has complained
numerous times but Albert will not fix the problem. Albert is breaching Penny’s right to:
A.habitability.
B.quiet enjoyment.
C.possession.
D.fair use.
Which of the following is not a vertical restraint?
A.market allocation
B.tying agreements
C.exclusive selling, territorial, and dealing agreements
D.price fixing
Stan is an investment manager. He has received money from various investors with a
promise of very high returns on their investments. The invested money is not supplying
enough capital in order to pay the returns promised so he has started using new
investor’s money to pay older investors. By advertising and by word of mouth, people
are anxious to invest with Stan because of the money being paid and with the influx of
new investors he is able to continue operating. Stan is:
A.operating an insider trading operation.
B.racketeering.
C.guilty of conspiracy to defraud.
D.operating a Ponzi scheme.
Initial public offerings occur when:
A.a public corporation seeks to become a professional corporation.
B.a publicly held corporation seeks to become a privately held corporation.
C.a privately held corporation seeks to become a publicly held corporation.
D.a for profit corporation seeks to become a nonprofit corporation.
Joey owned three homes in three different states. He tells Monica that she can live in
his Iowa home until he decided to start using the home again in the future. Monica
moves in and lives there for thirteen years when Joey calls and says that he wishes to
start using the home and that she must move out. Monica tells Joey that the statutory
period for adverse possession in Iowa is ten years and that she is now the owner.
A.Monica owns the home because she was open, notorious, visible, continuous and
exclusive and lived their more than the ten year requirement
B.Monica owns the home because she was there with Joey’s permission and had not
broken the law
C.Joey owns the home because he did show up after thirteen years to claim the property
D.Joey owns the land because Monica was not adverse or hostile because she was there
with his consent
In a general partnership:
A.profits and losses must be split equally amongst the partners.
B.an unequal split of profits may be agreed to based on the partnership agreement, but
losses must be split equally.
C.profits must be split equally, but losses may be split unequally based on the
partnership agreement.
D.profits and losses may be unequally split based on the partnership agreement.
Modern antitrust law’s focus is on:
A.protecting individual companies.
B.protecting the competitive process.
C.all of the above.
D.none of the above.
In Miranda v. Arizona, Miranda’s voluntary confession was thrown out because:
A.Miranda asked for an attorney but was questioned before the attorney arrived.
B.Miranda spoke such poor English that he didn’t fully understand his rights as told him
and an interpreter was not provided.
C.Miranda spoke English but didn’t read English so he didn’t understand that the
document he signed was a confession.
D.Miranda was questioned in a police interrogation room and the court deemed the
setting too coercive particularly since he didn’t know his rights and even though he was
not forced to talk by the police, his confession was therefore not truly voluntary.
A gratuitous agent:
A.has no duty of care owed to the principal.
B.breaches the duty of care when ordinarily negligent.
C.breaches the duty of care when grossly negligent.
D.is held to the same standard of care as any other type of agent other than the
independent contractor.
Cathy’s Coaster Company uses cork in all of the protective drink coasters that they
manufacture. If they enter into an agreement with a cork exporter from Portugal to
purchase all of the cork they need to produce their products, this would be:
A.an output contract.
B.an input contract.
C.a requirements contract.
D.a necessities contract.
Mia has written a deed that says, “To Chelsea for life and upon her death, the property
shall go back to me.” What kind of interest does Mia have in the property upon
Chelsea’s death?
A.a repudiation
B.a redemption
C.a reversion
D.a retention
In Mink v. AAAA Development LLC, the court refused to grant personal jurisdiction over
AAAA because:
A.Texas courts refused to follow the Zippo standard because Zippo was decided by a
federal district court, a court which does not establish precedent.
B.the court adopted the Zippo standard and found that the AAAA site had no level of
interactivity so no minimum contacts were established.
C.the court adopted the Zippo standard and found significant interactivity and more
than sufficient minimum contacts but reasoned that Vermont was so distant from Texas
that it would be unfair to subject AAAA to a Texas lawsuit.
D.the court adopted the Zippo standard and found that there was minimal interactivity
on the AAAA site which didn’t rise to the level of minimum contacts sufficient to create
personal jurisdiction in Texas.
In In re Jones Jones graduated from college and then went to law school. He graduated
from law school but was unable to pass the bar exam. Over the next decade he worked
various jobs before going back to school again for a masters. Jones took out student
loans to pay for his education, resulting in $140,000 of debt. He filed for bankruptcy
and sought to have the student loans discharged for “undue hardship.” The court held
that the undue hardship standard:
A.had been met because the amount of money owed was too much for a person in their
50s to be able to pay.
B.had been met because Jones demonstrated that he has made diligent efforts to find
employment.
C.had not been met because a healthy, educated, employable man paying back the loans
would not amount to undue hardship.
D.is not applicable to student loans and therefore Jones could not discharge the debt.
With regard to negligent hiring, the courts would require the least amount of scrutiny
regarding:
A.an office worker.
B.a teacher.
C.a tour guide.
D.a pizza delivery person.
Wayne is the president and CEO of a corporation. He owns 25% or the company’s total
stock and has been selling large chunks of his holdings over the past three months. If
the SEC investigates him for short-swing profits, they would do so under:
A.Regulation D of the ’33 Act.
B.Rule 10(b) (5) of the ’34 Act.
C.Section 16 of the ’34 Act.
D.the Private Securities Litigation Reform Act of 1995.
This amendment requires probable cause with respect to searches and seizures:
A.Fourth Amendment
B.Fifth Amendment
C.Sixth Amendment
D.Eighth Amendment
Federal court judges are:
A.selected by the President without outside confirmation.
B.nominated by the President and subject to full Congressional confirmation.
C.nominated by the President and subject to Senate confirmation.
D.nominated by the President and subject to House of Representative confirmation.
Trade secret protections are provided through:
A.state statutes and common law.
B.federal statutes.
C.the U.S. Constitution.
D.the Uniform Trade Secrets Act.
An enterprise may not be a Subchapter S corporation if it owns more than ________ of
the stock of a subsidiary corporation.
A.50%
B.60%
C.70%
D.80%
Which of the following involves a third party substitution?
A.novation
B.accord and satisfaction
C.substitute agreement/modification
D.rescission
Name the seven computer crimes defined in the Computer Fraud and Abuse Act as
amended by the Patriot Act.
Explain the interrelationship of agency law and contract law as they relate to the
principal and agent in an agency relationship.
Compensatory damages cover a broad spectrum of losses for recovery of ________
damages suffered by the nonbreaching party.
Permission to use another’s property that may be revoked at any time by the property
owner is called a ______.
Mediation and conciliation both involve a ________ process.
When developing a Code of Ethics, what are the four key points that must be followed
to create a usable and effective document?
LLC laws define dissolution of an LLC as a ________ process.
Give four examples of nondischargeable debt in bankruptcy.
In the event that a tenant breaches a duty owed under a lease, what are the possible
remedies that may be available to the landlord?
In what ways does OSHA (the act and the agency) work to establish and maintain
workplace safety?
What is the arbitrary and capricious standard and how is it used by the courts?
Final effective ________ are published in the Code of Federal Regulations.
When a party may, at his or her option, either disaffirm or enforce a contract, that
contract is said to be _______.
A group of adversely affected parties want to challenge an agency rule in federal court.
What is the process that the judge will use to make his or her decision?
You arrive at your final exam for your law class and as you approach the door your
professor is standing at the door with a sign saying, “THE COST FOR TAKING THIS
TEST IS $10.00 PAYABLE TO ME” (the professor). Your professor is also holding a
tin cup for students to place their cash and checks into. Speaking entirely from a
contracts perspective, can your professor enforce such a fee? Explain fully.
Business owners are also known as _______.
Administrative law hearings are presided over by ________ judges.
Why is it important for an agent to accurately define their role when signing contracts
on behalf of a principal?