Janet Kennedy has received a letter in the mail from BISA International, a credit card
firm. The letter describes the card as follows:
“This card is yours for only a small annual fee that is billed to your account. There is an
annual percentage rate finance charge of 16.5%. There may be other charges for some
transactions. There are no late fees, but there will be a charge for going over your credit
limit.”
Which of the following statements is true?
a. The letter includes all the necessary disclosures for credit card solicitation under
Regulation Z.
b. The finance charge is usurious.
c.The letter is missing several items of disclosure required under Regulation Z for credit
card solicitation.
d.none of the above
The Government in the Sunshine Act applies to all federal administrative agencies.
a. True
b. False
What is the maximum civil penalty the Consumer Product Safety Commission can
assess against a company for violations of the Consumer Product Safety Act?
a. $2,000
b. $50,000
c.$500,000
d.none of the above
A joint venture:
a. is a partnership limited in scope.
b. is a limited liability company.
c.must be incorporated to be recognized.
d.none of the above
Berth Ness signed a promissory note for the purchase of real estate in Arizona. Only his
name appeared on the note. Berth had acted as an agent for several corporations and
Louise Ness in the past. Upon default, the payee of the note brought suit to collect from
the corporations and Louise. They claim Berth was not acting as their agent in the
transaction and they are, therefore, not liable. Who is correct?
The EPA has developed three categories of water pollutants: conventional, international,
and toxic pollutants.
a. True
b. False
Buyer on fax: “Will take house for $587,500 if front lawn is fixed.” Seller on fax in
response: “Price is $589,000 and no front lawn.” Buyer on fax in response: “$588,000
plus the front lawn.”
Seller on fax in response: $589,000 plus the front lawn.”
a. There is a contract for the sale of the house at $588,000 plus the lawn.
b. There is a contract for the sale of the house at $589,000 plus the lawn.
c.There is no contract.
d.none of the above
The IRS is conducting an investigation of the construction industry because contractors
routinely classify carpenters, dry-wallers, and plumbers who work on all of their
projects as independent contractors. These craftsmen report for work on different jobs,
but all of the jobs are managed by the same contracting firm. Which of the following
will be most important in determining whether the craftsmen are employees rather than
independent contractors?
a. That they bring their own tools.
b. That they determine which jobs they will work on and which they will not.
c.That they are told to report for work on which days and at what time.
d.That they work for other contractors.
Which federal law provides for unemployment compensation?
a. FLSA
b. OSHA
c.ERISA
d.none of the above
James Schoenberger interviewed for a position with the Chicago Transit Authority
(CTA). He talked with the person who would ultimately be his supervisor, Zu Christian,
and was offered a salary of $19,300. Under CTA procedures, only the Placement
Department could give final salary figures. When Placement’s figure for Schoenberger
was computed, it was lower, and Schoenberger sued for the higher figure. CTA claimed
Zu Christian had no authority to offer a particular salary. Discuss the legal issues in the
case from both CTA’s and Schoenberger’s perspectives.
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool
construction industry, “the miracle we have waited a lifetime for.” The cleaning system
is very effective and recommended by all consumer magazines. The result is that 93
percent of all new pools have the system, and 94 percent of all pool owners buying
replacement systems choose Pool Line. Pool Line’s competitors have brought suit
charging Pool Line with monopolization of the pool cleaning market. Pool Line:
a. probably has a monopoly per se because of the 90 percent+ market share figures.
b. probably has a valid defense of superior skill, foresight, and industry.
c.will owe treble damages to the competitors.
d.none of the above
An EIS must be filed for both private and governmental projects.
a. True
b. False
The Equal Pay Act addressed only the issue of wage discrimination.
a. True
b. False
The Freedom of Information Act is part of the Administrative Procedures Act.
a. True
b. False
A record, such as an e-mail or fax, now satisfies the writing requirement under both the
UCC and common law.
a. True
b. False
Alan Freeman and Bill Freeman, brothers, operated a residential construction firm.
There were three divisions of the firm: single-family homes, townhomes, and custom
homes. Alan did not enjoy the demands of custom home buyers and Bill did not enjoy
the cookie-cutter work of the other divisions. The brothers agreed to split the business
with Bill assuming the responsibilities and contracts of the custom home division and
Alan handling the remaining divisions. Alan told Bill he could continue to use the
company offices until he was able to find offices of his own. Bill met his clients at the
company offices, used the plans of the company and even continued to use the company
stationery. Three months later Bill left town, leaving custom homes unfinished and
taking the deposits of three customers with him. The customers have sued Alan. Which
of the following statements is true?
a. Alan is not liable since the relationship had been terminated.
b. Alan is liable because of apparent authority.
c.Bill is not liable because he was Alan’s agent.
d.none of the above
An appellate court reversal requires a unanimous vote by the reviewing judges.
a. True
b. False
Which of these ends apparent authority?
a. Departure of the agent
b. Retirement of the agent
c.Termination of the agent
d.None of these
The tort of intentional infliction of emotional distress:
a. requires proof of some physical harm before there can be recovery.
b. is the same as the tort of false imprisonment.
c.is a property tort.
d.requires proof of conduct that exceeds all bounds of decency.
In a partially disclosed principal relationship, who is liable to the third party on a
contract within the agent’s
authority?
a. principal
b. agent
c.both a and b
d.none of the above
Which of the following is not exempt from an FOIA request?
a. national defense or foreign policy information
b. internal agency policies on copy charges
c. trade secrets
d. investigation records
When shareholders get to vote on executive compensation it is referred to as what?
a. Pay-to-play
b. Say-on-pay
c.Day-of-pay
d.Play-on-payday
There is no liability of employers for the acts of independent contractors.
a. True
b. False
Mad Hatters, Inc.is a costume store based in Navajo County, Arizona. It has stores in
Navajo, Maricopa, Pima and Pinal counties. Xeon Corporation entered into a contract
for Mad Hatters to furnish 75 costumes for an ad campaign. Xeon has its headquarters
in Maricopa County, but has offices in Pima and Navajo Counties. Xeon has failed to
pay for the costumes. Mad Hatters has brought suit in Superior Court, the trial court for
Arizona. The county in which the suit is held is a question of:
a. venue.
b. fact.
c.federal jurisdiction.
d.none of the above
Who signs the 10-Qs and 10-Ks of publicly trading companies to certify their content?
a. CEO
b. CFO
c.both a and b
d.The treasurer or controller of the company.
John Redmond was not paid for trim carpentry work that he did for Brenda Knighton in
her home. Ms. Knighton does not dispute that Redmond did the work, but she says that
he waited too long to file the suit because the time for suit is measured from the time
the work began, which was over 4 years ago, and not from the time she failed to pay,
which was two years ago. The statute of limitations in their state is four years. Which of
the following is a correct statement?
a. The case must be dismissed because of the statute of limitations.
b. The case qualifies for a directed verdict.
c.The case can be decided on a summary judgment motion.
d.The case can be dismissed on a judgment on the pleadings.
There are agency regulations at both the state and federal levels.
a. True
b. False
The intrastate exemption violates the commerce clause.
a. True
b. False
A, B, and C are partners in a real estate firm. B has just died.B’s widow:
a. owns one-third of all the partnership land.
b. is a tenant in partnership with A and C.
c.can force the sale of the partnership property.
d.none of the above
Sprago, a fine restaurant, has hired only male waiters over the past ten years. Sprago’s
manager says male waiters look more professional and customers prefer male waiters to
female waiters. A female who has applied for and been denied a waiter position at
Sprago in spite of her qualifications would have:
a. no cause of action since being male is a BFOQ.
b. no cause of action unless females were denied other positions in the restaurant.
c.a cause of action for sex discrimination under Title VII.
d.none of the above
Caveat emptor is a Latin term meaning “let the buyer beware.”
a. True
b. False
With reference to #s 105 and 106, suppose that Radical Board’s manager simply verifies
employment for the camp director. During Keller’s first month at the camp, he is able to
gain access to the girls at night and sexually assaults 3 of them. The girls’ parents have
brought suit against the camp as well as Radical Boards. The camp:
a. is not liable for the criminal conduct of employees that was not authorized.
b. might be liable for negligent hiring.
c.has no liability for conduct of employees after hours.
d.both a and d
e. none of the above
An anonymous reporting system is a requirement for companies under Sarbanes-Oxley.
a. True
b. False
On a radio talk show, the host said, “That no good felon, O.J. Simpson.” Mr. Simpson
has never been convicted of
a felony.
a. The talk show host has defamed Mr. Simpson.
b. Because most people believe Mr. Simpson to be a murderer, there is no defamation.
c.The talk show host enjoys the media qualified privilege.
d.both a and c
Summary jury trials offer the perspective of a jury with a shortened version of the case.
a. True
b. False