Saying that “this car is the ultimate driving experience” is an example of puffery.
When the judge issues the jury instructions, the judge is said to be charging the jury.
Strict scrutiny requires that a state prove that it is acting to promote an important
government objective and that the proposed act is substantially related to the
government’s objective.
“The buyer agrees to take the table with all faults and as is” disclaims warranties.
Alan is the attorney representing Derek in bankruptcy hearings. His fees have the
highest priority among the other unsecured debtors.
The FDA jurisdiction includes administering the Flammable Fabrics Act.
If a business or individual emits a substance into a water source as part of their
facilities’ operation, they are not required to have a permit if they are not causing
pollution.
A person must exhibit some sort of distinctive physical characteristic, obvious to a
neutral observer in order to be considered as disabled.
Federal securities laws can, depending on the language and circumstances, classify a
business plan as a form of securities offering.
Placing conditions on the use of federal money given to states is most often
accomplished by interpreting the Commerce Clause.
In a disclosed agency situation, the agent is not contractually liable to the third party.
Most federal environmental laws do not require that state work in conjunction with the
EPA to implement and enforce them.
environmental agencies.
A fee tail is an ownership interest in land, recognized in only a minority of states, which
limits succession of the property to members of the owner’s family only.
The Revised Model Business Corporation Act provides that a self-dealing transaction is
not a breach of the duty of loyalty if a majority of disinterested parties approve the
transaction after disclosure of the conflict.
Enron profits showed that first quarter revenues rose from $12 billion in 2000 to $84
billion in 2001.
Leasing of personal property is governed by both state property law and by state
commercial law.
Honoring ethical values, respecting communities and the environment while
recognizing the interest in its shareholders are elements of corporate citizenship.
If the criminal trial results in a verdict of not guilty, the government may retry case
again because the government always gets one appeal.
Most common law that regulated administrative law has been codified in the
Administrative Procedures Act.
Whether an agency is classified as disclosed, undisclosed or partially disclosed, the
principal has the duty to fully perform the contract obligations.
Physical harm or injury is required to prove a case of intentional infliction of emotional
distress.
All monopolies are illegal.
If someone successfully sues a sole proprietorship, they must exhaust the businesses
assets before they may go after the principal’s personal assets.
Disparate impact claims under the Age Discrimination in Employment Act do not
require the employer to prove a business necessity in order to defend their actions.
Kenneth Lay, Enron’s CEO is currently serving a prison sentence as a result of his
fraudulent dealings which led to the Enron Scandal.
On February 1st, Frank’s Fedora Manufacturers sends an offer to Metropolitan Outfitters
by letter with all price, quality, quantity and delivery terms clearly stated, indicating
that the offer will remain open until October 1st. On September 1st Metropolitan sends
an acceptance of the offer to Frank’s with no material alterations to any of the stated
terms in the offer. The acceptance makes the contract valid and enforceable.
The Sherman Act only prohibits contracts, combinations, and conspiracies in restraint
of trade.
Circumstantial evidence is not enough to show a meeting of the minds.
Every time Mike passes Kathy in the office he rubs against her. Sometimes he walks up
behind her and massages her shoulders even though she has told him not to. Lately he’s
been pinching her butt when no one is watching. Mike is committing quid pro quo
sexual harassment.
Leon works in an office environment and during lunch, closes his office door and he
uses his personal laptop computer to search the Internet for porn using the company’s
server via an Ethernet cable connection. The company may monitor his computer usage
even though he is using a personally owned computer.
The court order for Microsoft to break apart into multiple entities in U.S. v. Microsoft
was overturned on appeal.
An agent is generally prohibited from using their own judgment in substitution of the
principal’s judgment unless specifically authorized by the principal.
An automatic stay halts all creditors’ collection actions except for ones brought by
government agencies.
If the creditor may keep the property used as collateral in his possession if the debtor
defaults, the UCC does not require a lawsuit if there is a security agreement.
A market-based approach does not give a business options about how to comply with
pollution standards.
Most common stock enjoys voting rights; however, common stock may be sold without
voting rights.
Courts apply the logical outgrowth standard when reviewing a challenge of a rule from
an adversely affected party.
Nuisance suits allow an individual to sue a polluter to protect the community from
environmental damage.
If the tenant stops paying rent and ignores the landlord’s demands, the landlord may
constructively evict the tenant ending the lease agreement.
The oil spill that resulted in Congress creating the Oil Pollution Act was the:
A.Deepwater Horizon.
B.Gulf Oil Spill.
C.Kirsk.
D.Exxon Valdez.
Joe and Arthur each own a chain of restaurants. In order to ensure successful
restaurants, Joe and Arthur enter into an agreement that Joe will open his new locations
in Kansas City but not St. Louis and Arthur vice versa. This is an example of:
A.price fixing.
B.market allocation.
C.tying agreements.
D.boycotts.
The Labor Management Relations Act gives the President of the United States the right
to suspend a strike for up to ________ in times of national emergency.
A.80 days
B.90 days
C.120 days
D.180 days
Robert is about to graduate college and his parents tell him that because he is the first
member of the family to graduate college, they want to buy him a new, but inexpensive
car. They have the money to buy the car and Robert is excited to get his gift. Robert
owns a used car but he as never owned a new car so this will be his first. He decides to
keep his used car because he had been promised a new car by his parents for his high
school graduation and never got it. On graduation day, his parents tell him that they
have decided to use the car money for a vacation and there will be no car.
A.Robert can successfully sue based on promissory estoppel
B.Robert can successfully sue based on the promise of a gift
C.Robert cannot successfully sue because he did not rely to his detriment on the
promise
D.Robert cannot successfully sue because the promise was not reasonable and would
not support promissory estoppel
Treaties:
A.may be entered into by the President without oversight or approval
B.are entered into by the President subject to House approval
C.are entered into by the President subject to Senate approval
D.are entered into by the President subject to joint House and Senate approval
Agency law primarily exists on the:
A.state level.
B.federal level.
C.common law level.
D.constitutional level.
An oil tanker crashes off the coast of California. It dumps millions of gallons of oil into
the ocean. When investigating the crash, it is suspected that there might be gross
negligence on the part of the ship’s captain. Is the ship owner liable for the damages?
Why or why not?
Once public debate and comment is concluded, an agency will publish the final rule and
its effective date in the:
A.Federal Register.
B.U.S. book of statutes.
C.Code Administrative Rules.
D.Code of Federal Regulations.
Principals generally have no personal liability for the business entity’s debts regarding:
A.limited partnerships.
B.limited liability partnerships.
C.corporations.
D.limited liability companies.
A car dealership advertises a small used car for a great price and a low interest rate loan
in the local paper. When Patty comes in to look at that car, the salesman steers her away
from the advertised car. Instead the salesman tries to convince her to buy a different
used car with a much higher interest rate loan. What unfair sales practice might this be
an example of?
A.false advertising
B.bait and switch
C.warranty breach
D.fraud
Which of the following is true of open priced term contracts?
A.the contract is void due to the failure to specify a required term of the contract
B.the price becomes the reasonable price at the time the contract was entered into
C.the price becomes the reasonable price at the time the goods are delivered
D.the price is determined by the court applying a reasonable price at whatever time the
court deems appropriate to fairness
In Edgewater Motels, Inc. v A.J. Gatzke and Walgreen Company, Gatzke, an employee
agent of Walgreen, while filling out expense reports under the scope of his employment,
accidently started a fire due to careless smoking, severely damaging the Edgewater
Motel. With regard to the smoking the court determined that:
A.defendant Walgreen has no liability because smoking had nothing to do with Gatzke’s
duties so the fire was caused by an act outside of the scope of his employment.
B.defendant Walgreen is only liable if they knew that Gatzke smoked and did not order
him to stop or if they condoned or authorized smoking.
C.Edgewater wins because the smoking occurred as Gatzke was performing his job and
the slight deviation for his personal comfort was reasonable and was not a severe
departure from his duties.
D.Edgewater wins because Walgreen authorized him to rent the room and Walgreen is
therefore liable for any intentional or unintentional acts of their employee agent that
result in harm to others.
LLPs were created to:
A.limit taxation burdens existing in LLCs.
B.ease the costs and filing requirements present with LLCs.
C.provide limited protections for general partners increasing protections offered by
LLCs.
D.increase the duration of the business entity permitted under LLC statutes.
Which of the following is not covered under the Fair Labor Standards Act?
A.overtime
B.working conditions
C.child labor
D.minimum wage
Where does the president get authority to exercise power over administrative agencies?
A.federal law
B.judicial decisions
C.the Constitution
D.Congressional delegations
Felonies generally are punishable by:
A.three months or more of incarceration.
B.six months or more of incarceration.
C.nine months or more of incarceration.
D.twelve months or more of incarceration.
What is the main problem with international courts?
A.finding judges who understand the complexities of international law
B.creating a body of law that reflects multiple legal systems
C.enforcing a ruling on sovereign nations is difficult
D.lack of recognition from the U.N. and WTO
When an attorney requests a change of venue they are asking:
A.for a different judge due to the assigned judge’s potential bias.
B.to move the trial from a state trial court to a federal court in the same state.
C.to move the trial from one state to another due to the potential unfairness of a trial in
the first state.
D.to change the charges that the defendant has originally arrested for and is now on trial
for.
In Alston v. Advance Brands and Importing Company, Alston sued to prevent
advertising of alcohol because it influenced children. He was found not to have
standing for each of the reasons below except:
A.Alston did not evidence any actual injury.
B.Alston’s children bought liquor using money provided by Alston, so he was at fault.
C.Alston could not show that a proper remedy was available.
D.Even if injury could be shown, the injury was not direct because Alston’s alleged
injury was not directly connected to the defendants and was broken by third party
sellers who criminally sold to minors.
Which of these is not a type of horizontal restraint?
A.tying agreement
B.allocation of markets
C.price fixing
D.boycotts
In 2006, Martin purchased a home in a residential development and in 2010 he sold it in
fee simple to Richard. A week after Richard moved in the local cable company came to
his door to inform him that they would start digging up his yard to install underground
cable for the neighborhood. When Richard objected he was told that they had a right to
do it and he should check with his lawyer. A call to the lawyer confirmed the right of
the cable company to enter his land and dig. Which of the following would have given
the cable company this right?
A.an easement by grant
B.an easement by prescription
C.an easement by necessity
D.an easement by implication
An environmental impact statement is required by the NEPA in instances where:
A.the environmental impact is unknown.
B.the environmental impact is significant.
C.the environmental impact is little.
D.it is required in all instances.
Howard has fulfilled his residential lease and has moved out of his apartment. The
landlord, depending on the state, has between ________ to act on Howard’s security
deposit.
A.15 and 15 days
B.15 and 30 days
C.15 and 45 days
D.15 and 60 days
Amanda works in an office environment with 50 employees. Once or twice a week, her
boss Alan, tells her she has great legs and that she should wear shorter skirts. He also
tells her to let loose and open another button on her blouse once in a while. She asks
him to stop and continues to wear knee length skirts and keeps her blouse buttoned to
the neck. He never touches her and he never makes these comments when someone else
can hear. When she gets her performance appraisal from Alan, he gives her an excellent
evaluation and a raise. After listening to Alan for six months she files a complaint with
the EEOC:
A.she has a valid quid pro quo claim.
B.she has a valid hostile environment claim.
C.she may choose either a valid quid pro quo claim or a hostile environment claim as
both are valid.
D.she has suffered no economic or other job detriment so she has no cause of action.
Which of the following is the true statement?
A.ratification applies to previously unauthorized acts
B.actual authority must be expressly created and cannot be based on custom or past
dealings
C.apparent authority is based on what the principal communicates to the agent and not
the third party
D.actual authority must always be expressed in writing
In Estrada v. Fedex Ground Package System, Inc., the court determined that the
plaintiffs were employees for each of the following reasons except:
A.Fedex exercised extensive control over the driver’s schedules.
B.Fedex maintained a standard pay rate for all similarly situated drivers.
C.Fedex required the drivers to work exclusively for the company.
D.Fedex required the drivers to supply and use their own trucks.
The origination of the employment-at-will doctrine is:
A.based on common law.
B.based on state statutory law.
C.based on federal statutory law.
D.based on constitutional interpretations.
In which of the following scenarios would enforcement of specific performance be
appropriate?
A.your bookstore agrees to order a textbook for you but breaches their contract with
you by canceling the order the next day
B.you order three gallons of white ceiling paint from a local store and they breach by
not delivering or making the three gallons available to you
C.you order a current model name brand television from a department store and a few
days later they breach by not ordering it from the manufacturer
D.you own the pistol used by Hamilton and contract to buy the pistol used by Burr in
the Hamilton-Burr duel to complete your set, but despite the contract the Burr pistol
owner refuses to sell at the last minute
The United Nations Convention on Contracts for the International Sale of Goods
(UNCISG) differs from the UCC in that:
A.acceptances are effective when mailed.
B.acceptances are effective when received.
C.written contracts are required for sales contracts of $1,000 or more rather than $500
or more.
D.the UNCISG does not recognize industry practices and past dealings between parties.
The right to take away private property for the public good or for public use is called:
A.police powers.
B.condemnation.
C.eminent domain.
D.easement.
Rita Reporter works for a major news network and has been assigned to investigate a
story about a woman’s death in a small town. She interviews police and other public
officials and the investigation is pointing to the woman’s ex-husband. When she reports
live on the air, she states that the investigation is ongoing; however, the ex-husband is
the prime suspect. In fact, the police have just ruled out the ex-husband but she hasn’t
yet been informed of that fact. The next day, the ex-husband is fired, his new wife
moves out and friends are now refusing to talk with him.
A.Rita is guilty of libel for telling a lie which caused injury to the ex-husband
B.Rita is guilty of slander for telling a lie which caused injury to the ex-husband
C.Rita is not guilty of defamation due to a qualified privilege
D.Rita is not guilty of defamation due to an absolute privilege
In Estate of Weingeroff v. Pilatus Aircraft, the plaintiff’s representative brought a
diversity action against Pilatus, a Swiss company that manufactured the plane that
crashed killing Weingeroff. The court decided that:
A.because Pilatus was a Swiss company they are immune from civil law suits.
B.Pilatus wins because the $1M+ that they spent in Pennsylvania was too insignificant
to create minimum contacts and no specific marketing was done targeted to
Pennsylvania.
C.Weingeroff wins because spending over $1M in Pennsylvania satisfied the minimum
contacts requirement to create jurisdiction.
D.Weingeroff wins because Pilatus conducted a nationwide marketing campaign and
specifically manufactured planes to meet FAA compliance constituting purposeful
availment.
The notion of ________ is a central theme in Immanuel Kant’s work.
________ provisions are part of many environmental statutes that allow third parties to
file a law suit.
Why is it so important that the law of contracts be so ordered and strong with regard
particularly to the business world?
________ refers to the point at which an employee becomes fully entitled to a benefit.
A person who performs preincorporation duties on behalf of the forming corporation is
called a _______.
The ________ Act was designed to prevent companies from creating monopolies
through mergers.
Workers at Kent Corp. are on strike. To increase pressure on Kent Corp. they start
picketing Flint Corp., one of Kent’s suppliers, with signs urging the boycotting of Flint
for supporting unfair labor practices. The picketing at Flint would be considered an
illegal _______.
Damages agreed to when the contract is written and prior to any actual breach are called
________ damages.
Manny, Moe and Jack are hunters. In 1990 they discovered what appeared to be a
deserted hunting lodge in the woods. The lodge had no indoor plumbing, no running
water and no heating system other than a fire place. The building is a one mile hike
from the nearest road. Each year since 1990, they have returned to the lodge and used it
as a base during the deer and elk hunting seasons which occur in the fall and winter
months. They spend a total of six weeks a year using the lodge. They have cleaned the
place up, cut and stacked firewood and even stored clothing inside when they weren’t
there. The owner of the lodge has noticed the stacked firewood but hasn’t traveled to the
lodge during hunting season to find out who is using the property even though he is
disturbed that the property is being used without his permission. After the statutory
period has run, have Manny, Moe and Jack acquired title to the property?
Power Play, Inc. has decided to raise capital to grow and strengthen the company to
make it attractive to competitors who might wish to purchase the business. A board
member has suggested that they seek funding through a venture capital firm. How does
a venture capital firm operate and is there a disadvantage to using venture capital?
Harry enters into a contract with Sally in which she was to pay $50,000 for Harry’s
hunting cabin. All negotiations, witnessed by various third parties, stated the $50,000
figure as the sales price. When the contract was written, a typographical error was made
indicating a price of $5,000. At settlement, Sally tendered $5,000 and demanded the
deed per the written contract. Must Harry sell the cabin for $5,000?
You have been invited to become a member of a partnership. What are some of the
considerations you need to assess in making a decision to become a general or limited
partner?
Contracts that involve goods and services are known as ________ contracts.
Acceptance of an agent’s previously unauthorized act by a principal is called ______.
Explain how the UCC “battle of the forms” is resolved in nonmerchants and in
merchant transactions.
The Clean Air Act’s market based approach is controversial. What are major arguments
for and against this approach?
Vertical price-fixing occurs when a seller attempts to control the resale price at a
_______ in the supply chain.
The plaintiff and defendant, the adverse parties in a law suit, are called the _______.
