A Japanese company operates a ship called the Kinia. If the Kinia sails in U.S. waters, it
must comply with the standards set by the Clean Water Act.
Which of the following projects would require the preparation of an Environmental
Impact Statement?
a. A plan initiated by the Forest Service to eliminate a herd of wild goats causing
damage in the Olympic (Washington) National Park.
b. The building of a golf course outside of Los Angeles that requires a government
permit to build in wetlands.
c. The expansion of a runway to a major city airport.
d. All the above.
The initial term for which a financing statement will be effective is:
a. one year.
b. five years.
c. ten years.
d. two years.
The possessor of a piece of commercial paper has an unconditional right to be paid, so
long
as:
a. the paper is negotiable
b. it has been negotiated to the possessor;
c. the issuer cannot claim a valid defense
d. all of these answers are correct.
Marty, a 16-year-old, contracts with Cream-of-the-Crop Cycles to buy an $8,000
motorcycle. Marty agrees to make monthly payments until the purchase price plus
interest are paid in full. Which of the following is correct?
a. The contract is voidable by Marty.
b. The contract is void as soon as it is made.
c. The contract is voidable by Cream-of-the-Crop Cycles.
d. The contract is voidable by either Marty or Cream-of-the-Crop Cycles.
A corporation must obtain shareholder approval before the company:
a. sells off a major portion of its business to another company.
b. amends its bylaws.
c. amends its charter.
d. All the above are correct.
A force majeure event is:
a. anything that makes the contract unprofitable for either party.
b. a natural disaster that claims human life or leads to the declaration of a state of
emergency.
c. a disruptive, unexpected occurrence for which neither party is to blame that prevents
one or both parties from complying with the contract.
d. any happening that fulfills one of the conditions in the contract, making it
enforceable.
Tom, the production manager at Esday, was told by his supervisor to hire Elton, a 15-
year-old, to operate an industrial machine. Hiring the 15-year-old violates the child
labor laws. Tom:
a. should hire Elton. Tom has a duty to obey Esday’s instructions.
b. should hire Elton. Tom has a duty of care to ensure that the government does not
discover that Elton is 15 years old.
c. should not hire Elton. Tom has a duty of care and he would not be caring for Elton.
d. should not hire Elton. Tom has a duty to obey Esday’s instructions only if they are
legal and ethical.
The duty of fair representation created by the NLRA and the LMRDA requires that:
a. a union represent all members impartially and in good faith.
b. a union must pursue any members grievance against the employer.
c. an employer, in communications with employees during a union organizing effort,
must fairly represent the effects it believes a union will have on the company.
d. the NLRB certify only proposed bargaining units that it thinks the union can properly
represent.
Under Superfund legislation, to what extent is a party liable?
a. for the cost of cleaning up the site
b. any damages to the natural resources
c. for any required health assessments
d. all of these answers are correct
Which of the following statements is incorrect concerning arbitration?
a. The losing party in an arbitration can file an appeal in a District Appellate Court.
b. Arbitration is almost always cheaper and faster than litigation.
c. Arbitrators may be biased toward the “larger party who may be a repeat client.
d. Parties to a contract cannot be forced to arbitrate unless the contract specifies it.
The primary purpose of RICO was:
a. to be a tool against organized crime.
b. to raise revenue.
c. to prosecute non-citizens.
d. to prosecute those engaged in tax fraud.
The test of “Foreseeability is generally used to determine the existence of which
element of a negligence case?
a. Duty of due care.
b. Breach.
c. Factual cause.
d. Injury.
A company’s trade secret lasts for:
a. 20 years after the application is filed.
b. 70 years after the death of the creator.
c. 10 years, but it can be renewed for an unlimited number of terms as long as it is used.
d. as long as it is kept confidential.
Maia wrote a check which said, “Pay to the order of Kevin Mathews $10.97. The next
line of the check stated, “One thousand ninety-seven Dollars. In applying the rules of
interpretation, how much should the drawee pay?
a. Nothing; when the instrument is ambiguous it is declared non-negotiable.
b. Ten dollars and 97 cents. Numbers control over words.
c. One thousand, ninety-seven dollars or $1,097.00. Words control over numbers.
d. Parol evidence would be needed to determine the purpose of the check.
The Minnesota legislature passed a law requiring that employers allow each employee
adequate time within each four consecutive hours of work to utilize the nearest
convenient restroom. This law is:
a. an executive order.
b. an ordinance.
c. a statute.
d. a stare decisis.
To prosecute under the Robinson Patman Act it is necessary to prove:
a. price discrimination occurred and it lessoned competition.
b. price discrimination occurred but the parties are not in competition with each other.
c. clearly separate products are tied together for purchase and sale.
d. non of these answers are correct.
Lucky loses in a high-stakes poker game to Fat Chance. To pay his debt, Lucky writes a
check to Fat Chance, who negotiates the check to Convenient, who then tries to cash the
check at Lucky’s bank. Lucky has already stopped payment on the check, so the check
is not honored by her bank. Convenient then tries to collect the check by suing Lucky.
High-stakes poker games are illegal in this state. Which statement is correct?
a. If Convenient can demonstrate that he is a holder in due course, he will prevail.
b. If Convenient can demonstrate that he was a buyer in the ordinary course of business,
he will prevail.
c. If Convenient can demonstrate that he gave value without notice, he will prevail.
d. Convenient will not prevail.
Kent Weston wrote a check for $500 payable to the order of Chester Jones. Chester
indorsed the back of the check as follows: “Chester Jones.” The check is now:
a. order paper.
b. bearer paper.
c. a cashier’s check.
d. special paper.
Which of the following does not act as a revocation of a will?
a. Destruction of the will by a house fire.
b. The testator’s putting an X through it.
c. Physically destroying the will by intentionally shredding it.
d. Signing a new will that expressly revokes prior wills.
Don was standing in a cafeteria line holding a plate. Tim was upset with Don. Tim
turned Don around and grabbed the plate out of Don’s hand. Tim then held the plate up
and threatened to break it over Don’s head. Tim has committed:
a. a battery, but not an assault.
b. an assault, but not a battery.
c. both an assault and a battery.
d. neither an assault nor a battery.
“Hacking” is:
a. gaining unauthorized access to a computer system.
b. a major crime.
c. illegal under the federal Computer Fraud and Abuse Act, which applies to any
computer attached to the Internet.
d. All of the above are correct.
Which of the following forms of organization would a Lawyer most likely form to
avoid liability?
a. Partnership
b. LLC
c. Close corporation.
d. Professional corporation.
Sarah, an employee of Amex Corporation, committed a serious criminal act in an
attempt to obtain a large sales order for her employer. A court found her guilty of the
felony and also found the corporation guilty of criminal conduct. The company was
fined $1 million. The court:
a. erred in fining the company since finding both Sarah and the corporation guilty
violates the Double Jeopardy Clause of the Constitution.
b. acted properly if this were a federal proceeding; however, it did not act properly if
this were a state proceeding.
c. acted properly if this were a state proceeding but not if this were a federal case.
d. acted properly in this case.
The biggest change in litigation in the last decade is:
a. an explosive rise of electronic discovery.
b. a decrease in the use of discovery.
c. the replacement of interrogatories with depositions.
d. the use of juries in appellate courts.
Laura, a brain surgeon, committed a negligent act when she ran a red light and injured
Randy, a pedestrian crossing the street. Randy was a mentally impaired adult.
a. The “reasonable person standard does not apply to Laura since she is an extraordinary
person.
b. None of these answers is correct..
c. The “reasonable person” standard does not apply to Randy since he is mentally
impaired.
d. The “reasonable person” standard does not apply to Laura nor Randy given their
respective degrees of extreme intelligence (one high and one low).
The difference between the UCC requirement of good faith and doctrine of
unconscionability is that:
a. good faith prohibits shockingly one-sided terms in a contract.
b. good faith focuses on the parties’ behavior as they perform the contract.
c. unconscionability looks at the parties’ attempt to carry out the terms of the contract in
a reasonable manner.
d. unconscionability focuses on whether a party is honest in fact and exercises
reasonable commercial standards of fair dealing.
Carey decided to incorporate her business under the name yStar Inc. Before yStar was
incorporated, Carey signed a contract in the name of yStar, Inc. to have some office
space remodeled. Which statement is correct?
a. yStar is liable on the contract because the contract was signed in its name.
b. yStar becomes liable on the contract as soon as it is incorporated.
c. yStar is liable on the contract if the contractor knows that the corporation does not yet
exist.
d. yStar will be liable on the contract only if the corporation adopts the contract.
The form of business ownership that is the most easily transferable is the:
a. general partnership.
b. corporation.
c. limited liability company.
d. limited partnership.
Mrs. O’Leary hired Jenna to sell her house in Michigan. She executed a power of
attorney in favor of Jenna authorizing her to do “anything and everything associated
with the sale of real estate, acting as a prudent person.” On May 30, Jenna finalized a
deal with Brandon for the purchase of the house. Brandon and Jenna signed the real
estate contract that day. Jenna learned the next day that Mrs. O’Leary had died May 29.
a. The contract is void since the agency terminated May 29.
b. The contract is valid since the agencys purpose was achieved before Jenna was
notified of Mrs. O’Leary’s death.
c. The contract is voidable at the option of Mrs. O’Leary’s estate.
d. The contract is voidable at the option of Brandon.
Great State Bank took a security interest in Gresham, Inc.’s meat processing equipment.
Gresham defaulted on the loan. Which statement is correct?
a. Great State Bank may take possession of the collateral.
b. Great State Bank may ignore its rights in the collateral and sue Gresham for the
money owed.
c. Both a and b are courses of action that Great State Bank may follow.
d. Neither a nor b are courses of action that Great State Bank may follow.
Janet was employed as a sales representative for Esday, Inc. An appreciative customer
gave her a diamond bracelet for all her hard work on a complicated contract. Can Janet
keep the bracelet?
a. Yes. The bracelet was given to Janet personally and intended for her.
b. Yes, but only if she discloses the gift to Esday and Esday consents to her keeping the
bracelet.
c. No. An agent is not allowed under any circumstances to personally profit as a result
of the agency relationship.
d. No. The bracelet is regarded as an unfair trade practice and violates antitrust law.
It is acceptable to ask a job candidate:
a. How many days were you sick last year?
b. Are you currently using illegal drugs?
c. What prescription medications do you use?
d. What country were you born in?
Andrew has been hired to do some work for Rossi Enterprises. What factors would a
court consider in determining if Andrew is an employee or an independent contractor?
Why does the designation matter?
In 2008, then-President George W. Bush reached an agreement with other world leaders
to cut greenhouse gases in half by 2028.
It is not a violation of United States law for a domestic company to pay money to a
foreign governmental official in order to obtain a contract with the foreign government
if this type of “commission is commonly paid in that foreign country.
Congress passed a law imposing penalties for displaying “indecent” material online
where children could see it. If the U.S. Supreme Court subsequently rules that the
statute conflicts with the First Amendment of the U.S. Constitution, the statute is void.
Victor purchased $1 million of insurance on his home even though the house was only
worth $500,000. Victor’s house was destroyed by lightning. Under the insurance policy,
Victor will be able to recover $1 million.
Generally, a contract may include language that limits or alters the damages recoverable
for a breach of warranty, as long as the restrictions are not unconscionable.
How do the tort theories of negligent product liability and strict product liability differ
from each other? List and describe the elements an injured party must establish for
recovery under each cause of action.
Matt wrote a $500 check to Alistar for some yard work that Alistar had done. What will
Alistar have to do negotiate this instrument to Totally Tough, Inc. in payment for some
yard equipment Alistar had bought?
Grant is a delivery person for Watkins Furniture. One day, after delivering a chair to
Nadines house, he stopped at a fast food restaurant to get a sandwich at the
drive-through window. As he was leaving the parking lot, he accidentally hit the rear of
Blanches car. Discuss the possible liability of Watkins for Grants accident. Would there
be any difference in the potential liability of Watkins if Grant had the accident after
driving 30 miles away to visit a friend?
Discuss the effect of the Uniform Commercial Code on the law of sales contracts in the
area of open terms.
If Milan asks a court to order Pamela to stop reprinting his copyrighted material, he is
seeking a legal, rather than an equitable, remedy.
The death of an agent automatically terminates an agency relationship.
Discuss the requirements of promissory estoppel.
Outline the focused, multi-step process recommended for reading a contract before you
agree to it.
Outline the parts of a typical contract.
The federal government has established uniform probate laws that apply in all 50 states.
Oxtron, Inc. arranged for two employees, Kaiya and Gary, to attend “The Business
Ethics 2008 Conference: Maintaining Credibility” in New York City. Although Gary
goes to New York, he does not participate in the conference. Instead, he takes in the
local attractions. Kaiya fully participated in the conference. Using ethical standards,
describe what Kaiya should do about Gary’s failure to participate in the conference.
Jorgeson Co., on its website, promised the company would not give PII to third parties
without the customers consent, but then gave out such information. This practice
violates Section 5 of the FTC Act.
Fraudulent, but not innocent, misrepresentation permits the injured party to rescind a
contract.
Rameriz and Cox enter a contract obligating Cox to supply Rameriz with 2,000 bushels
of corn by the end of September. Weather conditions are poor and Cox is unable to
grow that much corn himself, but could obtain enough to make up the required
difference at a financial loss. Discuss the general purpose of contracts and the result of
seeking enforcement of this contract both in a court exercising judicial restraint and in a
court practicing judicial activism.