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The Model Penal Code has been adopted by only about half of the states.
Unsecured creditors may seize any asset of the borrower once they have a debt
collection judgment.
There is a bright-line test for determining the amount of market share necessary to be
considered a monopoly.
If a buyer has not made a specific representation about a product, the buyer may still be
protected by an express warranty.
In civil cases, the standard of proof used by state trial courts is a preponderance of the
evidence while in federal trial court the standard of proof is beyond a reasonable doubt.
If a sole proprietorship loses money, the principal may deduct the losses from her own
personal tax liability if any.
The mandate given to The Equal Employment Opportunity Commission is that they are
required to pursue any discrimination based claims made by aggrieved employees.
The ICC, LCIA, and AAA all use the same rules to govern their arbitrations.
Once a patent has been issued by the U.S. Patent and Trademark Office, the patent
cannot be challenged or revoked due to the comprehensive investigation performed by
the USPTO prior to issuance.
If a union chooses not to bring a grievance to arbitration, the individual union member
always has the right to pursue the matter through a law suit to enforce union provisions.
Under the Health Care and Education Reconciliation Act, individuals not covered under
a health care plan by 2014 will be required to purchase a plan through a health care
exchange.
Commercial speech has always been afforded protection under the First Amendment.
The Clayton Act was enacted to limit the provisions of the Sherman Act.
Courts enforce fraudulent misrepresentation for intentional lies but will not enforce
fraudulent misrepresentation for negligent ones.
Violators of antitrust legislation are subject to both civil and criminal suits.
Debentures are unsecured promises to pay back money with interest at a certain date
backed by the strength of the general credit of the corporation.
A corporation exists as an independent person separate from its principals.
Under the federal system used by the United States, the federal government has only
limited power to regulate individuals and businesses.
In an LLC, the members may act as agents of the LLC but they will not be personally
liable to third parties who successfully sue the LLC.
While the common law recognizes commercial impracticability as a means to terminate
a contract, the UCC rejects and does not recognize commercial impracticability.
LLC members are always required to complete a Certificate of Membership Interest
evidencing the individual member's interest the business entity.
Arbitration can at times be legally mandated but mediation is entered into only on a
voluntary basis.
The 2003 revisions to the UCC have only been adopted by about half of the states.
An assignment may be of current and/or future rights.
A trademark application to the U.S. Patent and Trademark Office that is rejected may
still be entitled to trademark protection but not entitled to statutory benefits provided by
law.
The Fair Labor Standards Act does not cover all employees.
For a corporation to be privately held, the number of shareholders will be limited as
will the permitted total of gross revenues.
Social security provides benefits for those workers who become disabled on the job.
Leasing of personal property is based on state law modeled after provisions of the
Uniform Commercial Code.
Joint ventures are governed by the same legal principles as a general partnership.
Codes of ethics are insufficient and do not serve their proper purpose if they are
intended only to ensure that company policies are legal.
Jessica was caught shoplifting at a department store both by employees who witnessed
the act and cameras in the store. The store's management may hold her as long as it
takes to get her to confess.
Employees classified as key employees who take leave, are not automatically entitled to
Family Medical Leave Act reinstatement protections and guarantees.
If a defendant is found guilty in a criminal trial, they may not appeal due to double
jeopardy.
In an installment contract, the buyer may reject an installment if the nonconformity
substantially impairs the value of that installment or the nonconformity cannot be cured.
Mike is a limited partner in Big Blue, LP. The partnership agreement permits him to
have a say in the removal of general partners and the blocking of new partners. This
agreement will jeopardize his limited partner status.
If you give a truthful answer to a question during contract negotiations, but something
then happens that makes that answer now false, you are not obligated to notify the other
party unless they ask the question again.
Corporations may be created by written agreement between the principals and no strict
or formal filing is required as long as the agreement is written.
Burt has gone to a commercial bank to negotiate a loan for the LLC in which he is a
member. He tells you that he is authorized to act on behalf of and to bind the company.
What is the best way for you to verify whether Burt does in fact have the authority he
claims?
A.get him to sign a written statement
B.call another member of the LLC for confirmation
C.check the articles of organization
D.nothing need be done because all LLC members have the right to bind the company
as do general partners
The exchange of e-mail between companies in different states can create personal
jurisdiction in a law suit when:
A.the defendant also maintains an office in the forum state.
B.the defendant, at minimum, has employees that enter the forum state to conduct
business.
C.the e-mail is an integral part of an ongoing business relationship even if no offices or
personnel are within the forum state.
D.the e-mail specifically references a voluntary intention by the parties to submit to the
forum state's personal jurisdiction.
A partnership is considered fully terminated:
A.after dissociation.
B.after winding up.
C.after dissolution.
D.after the termination certificate is properly filed.
Which of the following does not have to be shown for copyright protection to be
granted?
A.the work is original
B.the work has a present or potential value
C.the work exhibits some degree of creativity
D.the work is fixed in a durable medium
The source of warranty law is:
A.the UCC.
B.FTC regulations.
C.the Consumer Protection Act.
D.the TILA.
If an employee is killed on the job, OSHA requires that the employer notify them as
soon as possible but no later than ________ after the accident.
A.8 business hours
B.12 business hours
C.24 hours regardless of business hours
D.48 hours regardless of business hours
What is the problem with the Madrid Protocol?
A.there are no specifics that require fundamental enforcement
B.few countries have signed the agreement
C.the European Union chose to create their own agreement instead of following Madrid
Protocol's terms
D.the terms of the protocol are very limited in their application
The Fair Labor Standards Act was originally intended to cover employers:
A.engaged in intrastate commerce only.
B.engaged in interstate commerce only.
C.both intrastate and interstate commerce only.
D.any and all commerce including foreign commerce.
In which of the following situations is the agent not liable should the principal breach
the contract with the third party?
A.agents are liable in all agency situations
B.partially disclosed agency
C.undisclosed agency
D.disclosed agency
The SEC maintains ________ regional offices throughout the United States where
much of its day-to-day work is done.
A.eight
B.eleven
C.thirteen
D.twenty-one
The International Chamber of Commerce abbreviation indicating that goods are to be
picked up by the buyer and not delivered is:
A.EXW.
B.FAS.
C.FOB.
D.FCA.
A petition for bankruptcy that is filed by creditors against a debtor is known as what
type of filing?
A.a recovery action
B.an involuntary bankruptcy
C.a voluntary bankruptcy
D.an order for relief
In 2002, Australia's highest court ruled on a defamation case where an Australian
citizen claimed to have been defamed by a Dow Jones article published on the
defendant's web site. They found:
A.the citizen was defamed but jurisdiction over Dow Jones couldn't be established
because the defendant had no physical presence in Australia.
B.the citizen was defamed but jurisdiction over Dow Jones couldn't be established
because the defendant's servers were in America and the article had been uploaded in
the U.S. so it was considered published in the U.S. and not subject to Australian law.
C.the citizen was defamed and jurisdiction over Dow Jones was established because
under American law, the defendant's web site was interactive and sufficiently
established minimum contacts creating jurisdiction.
D.the citizen was defamed and publication of the article occurred when the article
appeared and could be read on a user's computer screen establishing jurisdiction in
Australia.
An employee must file charges of illegal discrimination with the EEOC within
________ days of the adverse job action.
A.90
B.120
C.180
D.365
Wanda has graduated from a university and after nine months has failed to find a job.
She graduated with a degree in business and her college was AACSB accredited.
(AACSB accreditation is a specialized accreditation for business schools that evidences
a quality program.) In her complaint, she alleges that four years of school and tuition
should guarantee a job in the field of study and she wants her money back. At no time
did her school guarantee job placement, either through express or implied statements.
Wanda does not disagree with this but still thinks she was wronged and that it's unfair to
graduate and not get a job automatically. The school will be successful in extinguishing
Wanda's law suit if their attorney files a:
A.motion to dismiss because Wanda does not have standing.
B.motion for summary judgment.
C.motion to dismiss for mistrial.
D.motion for a judgment as a matter of law.
Which international body created the Convention of Contracts for the International Sale
of Goods (CISG)?
A.World Trade Organization
B.U.N. Commission on International Trade Law
C.International Monetary Fund
D.Organization for Economic Cooperation and Development
When examining and enforcing conditions precedent and conditions subsequent, courts:
A.give stricter enforcement to conditions precedent and find conditions subsequent
rarely enforceable.
B.give stricter enforcement to conditions subsequent and find conditions precedent
rarely enforceable.
C.maintain that procedurally, with respect to who bears the burden of proof, conditions
subsequent and conditions precedent differ.
D.hold that under modern law, both conditions subsequent and conditions precedent
should only rarely be enforced.
In Clancy v. King, the plaintiff and defendant had operated a general partnership to
promote certain literary works. Their partnership agreement contained standard
language requiring the duty of diligence and care but specifically permitted the partners
to freely compete against the partnership on an individual basis. The partnership entered
into a very profitable agreement to have Clancy lend his name to fictional works of
other authors taking advantage of Clancy's substantial fame and marketing power.
Clancy retained the right to withdraw the use of his name at any time. Subsequent to his
divorce from King, Clancy withdrew the use of his name from use in the agreement
despite the lucrative nature of the agreement although the Clancy/King partnership
continued to operate. Clancy's only participation in the agreement was the use of his
name and no labor or other duties were required of him. King sued claiming a lack of
good faith and the court decided:
A.the partnership's clause allowing competition by a partner with the partnership
violated common law principles and could not be enforced so Clancy could opt out of
the illegal contract and King had no case.
B.the partnership's clause allowing competition by a partner with the partnership
violated RUPA standards and principles and could not be enforced so Clancy could opt
out of the illegal contract and King had no case.
C.the partnership agreement clause allowing individual competition was enforceable
and preempted the duty to act in good faith so Clancy could add or withdraw his name
pursuant to the contract without liability.
D.the duty to act in good faith was not negated by the clause permitting competition so
because Clancy withdrew his name solely to spite and injure his ex-wife he is liable to
her and may not withdraw his name from the contract.
In American Needle Inc. v. National Football League, the NFL had entered into an
agreement with Reebok to manufacture all of its teams' official goods and claimed that
all 32 teams were a single-entity. American Needle sued claiming that the Reebok
agreement was an illegal conspiracy under the Sherman Act. The U.S. Supreme Court
found that:
A.the 32 teams were a collective unit and not subject to the Sherman Act.
B.the 32 teams were not a collective unit and were subject to the Sherman Act.
C.the 32 teams were not a collective unit but were exempt from the Sherman Act
because of the economic environment of sports.
D.there was no Sherman Act violation.
The Fair Labor Standards Act imposes restrictions on hiring workers under:
A.18 years old.
B.17 years old.
C.16 years old.
D.15 years old.
Which of the following does not require two or more principals?
A.limited partnerships
B.limited liability partnerships
C.sole proprietorships
D.limited liability companies
The corporation is considered to come into existence when:
A.the board adopts the bylaws.
B.the officers are chosen.
C.the organizational meeting has commenced.
D.the state accepts the articles of incorporation and issues the charter.
Platkos Inc. applies for a permit to import their goods to Russia. A Russian official
denies their permit. Platkos hires a Russian consultant, a very low level official to act as
a lobbyist. The consultant is paid a very large fee. When the permit is approved, Platkos
sends the consultant a thank you gift. Is this scenario permissible under the FCPA?
In Pagan v. Fruchey and Village of Glendale, Pagan sued questioning a village
ordinance prohibiting the parking of a car on a public street displaying it for sale. Pagan
won because:
A.Glendale's law violated Pagan's commercial speech rights which are absolute
B.Glendale was unable to prove that Pagan's speech was unlawful
C.Glendale's ordinance was broader than necessary to accomplish the Village's
governmental interest
D.Glendale did not prove that the ordinance directly advanced their claimed
governmental interest because they based their argument on opinion rather than data
After numerous threats from the federal government to enact laws and taxes to recoup
bonus money paid to executive employees at AIG, of the reported $165 million paid
out, how much was returned by those receiving bonuses?
A.approximately $50 million
B.approximately $75 million
C.approximately $100 million
D.approximately $120 million
Binding arbitration means:
A.that the parties had previously agreed that arbitration would be utilized rather than
litigation should a dispute arise.
B.that the rules of the hearing will be strict in terms of number of witnesses called,
duration of the hearing itself and whether attorneys could be present.
C.that the decision of the arbitrator will be final unless the parties agree to reopen the
case.
D.that the decision of the arbitrator will be final and the parties are barred from
agreeing to reopen the case.
Jose is from Argentina. He works for a railroad business that is controlled by the
government. Big Container Shipping Company is considering sending their South
American cargo on that railroad. Should Big Container Shipping be concerned with the
Foreign Corrupt Practices Act when they take Jose out to an expensive dinner?
A.yes, because Jose is a foreign national
B.yes, because Jose works for a government controlled business
C.no, because Jose does not work directly for the government administration, he works
for a business
D.no, because it is only dinner
Lisa and Tara are operating a business as a general partnership without an express
partnership agreement. Should a dispute arise, the courts will look to ________ to
resolve the issue regarding operation of the partnership.
A.the common law
B.state contract law
C.the Revised Uniform Partnership Act
D.federal contract law
That corporations have a social responsibility and that profitability should be secondary
reflects:
A.the narrow view a/k/a invisible hand theory.
B.the moderate view a/k/a government's hand theory.
C.the hybrid view a/k/a citizen's hand theory.
D.the broad view a/k/a management's hand theory.
The Supreme Court established the standard for lower courts when applying the
arbitrary and capricious standard in which case?
A.Motor Vehicle Manufacturing Association v. State Farm Mutual Automobile
B.Chevron v. NRDC
C.Buckley v. Valeo
D.Fox v. the Federal Communications Commission
Mackey Pharmacy Corp. orders 5000 cases of regular strength aspirin from MAK
Pharmaceuticals. When they are delivered, an inspection shows that while the delivery
is conforming to the contract with regard to quantity and quality of the aspirin, none of
the aspirin are in child proof bottles. The contract was silent regarding the issue of child
proof bottles. Mackey rejects the delivery and MAK sues them for breach of contract.
How should the courts analyze and resolve this matter?
Mike has moved into a privately owned apartment complex. The stated rules of the
complex prohibit unmarried men and women from living together in the same
apartment. When Mike's girlfriend Kathy moves into his apartment he is served with
eviction papers. Mike claims that the apartment complex is violating his constitutional
rights since it allows only married people to live together. Is he correct?
Money being held by a neutral third party, to be paid out once a dispute is settled is
money being held in ______.
Officer Tom is executing a validly obtained search warrant in Kathryn's home. The
warrant gives him the right to search every room in the house but is limited to a search
for automatic weapons and handguns. When he walks into the kitchen he sees an open
box filled with small plastic bags with small pills inside. A closer inspection reveals the
pills to be ecstasy, an illegal narcotic. May Officer Tom seize the drugs even though the
warrant did not include a search for drugs and would the drugs be admissible in court?
If Sam is hired by a pest company to go into people's homes and six months after
starting it is discovered that Sam has previously been arrested and found guilty of
criminal assault. Failure to fire or reassign Sam to a nonpublic related position may give
rise to a suit based on ________ should Sam attack a customer in their home while in
the course of employment.
Goods that exactly meet the specifications of a contract are called ________ goods.
Federal environmental laws are primarily administered, implemented, and enforced by
the ________ Agency.
What are the sources of international law? Briefly discuss each.
If a jury is unable to come to a conclusion, a _______ will be declared.
George runs a baseball equipment supply store. He specializes in supplying batting
cages with new and used pitching machines. George sold Joan a used pitching machine
for her softball team. Joan signs a lengthy contract where George disclaims all liability
and sells the machine to her "as is." These terms are in the same font as the rest of the
text and not bolded, underlined or otherwise highlighted. When Joan gets the machine
to her house, it catches fires and burns down her garage. Is George potentially liable for
the damage?
LLCs are frequently governed by agreement of the parties called an LLC agreement or
_______.
A piece of personal property affixed to real property is called a ______.
How does a secured creditor establish their rights to the collateral securing a first
priority position?
Once a corporation has submitted a registration statement to the SEC, what responses
may the SEC make and what is the required timing of these responses?
Lon's GPS, Inc. orders 500 Class A widgets to be installed in GPS units they are
manufacturing. When delivery is made on Monday, the widgets delivered are Class B.
Lon's signs a receipt accepting the nonconforming shipment. The next day, Lon's
installs some of the Class B widgets and finds that the Class B widgets perform with
half the accuracy of the Class A widgets. What if any options does Lon's have?
An exception to zoning ordinances is called a ______.
A ________ is a document filed by one party that requests court action in a matter
pertaining to the litigation.
Veggy Time, Inc. is a distributor of canned vegetables. They have been dealing with
Fred Farmer for 10 years purchasing Fred's entire corn crop. Fred's farm is so large and
productive that Veggy Time has exclusively bought all of their corn from Fred alone.
Once again they have entered into a contract with Fred to purchase his entire 2011 crop
and have no other corn sellers under contract. For the entire ten years, Fred has
delivered 100,000 bushels of corn to Veggy Time. Unfortunately, due to an
extraordinary amount of rain, Fred's fields are flooded and his crop is destroyed. In
2011, Fred can deliver only 10,000 bushels and Veggy Time is about to suffer a huge
loss. Does Veggy Time have any rights against Fred to recover for their losses? What
could Veggy Time do to mitigate their damages?
Laws that impose liability on liquor stores and bars are called ________ laws.
