The burden of proof required in a criminal case is:
a. clear and convincing.
b. a preponderance.
c. beyond a reasonable doubt.
d. highest degree of honesty.
In the first decade of this century, music sales at American record labels declined by:
a. 58%
b. 3%
c. 75%
d. 20%
The United States has taken a position that legal issues are best resolved by lawsuits
involving parties with conflicting interests presenting their strongest possible case to a
neutral factfinder. Because of this, the legal system in the United States is considered:
a. an adversary system.
b. a conflict system.
c. an alternative dispute resolution system.
d. a mediation system.
Which of the following is generally covered under casualty insurance?
a. Employee theft or embezzlement.
b. Disability.
c. Transportation insurance.
d. Vandalism.
Under a state law, a dog owner is absolutely liable to any person who is injured by the
dog. This is an example of:
a. negligence per se.
b. strict liability.
c. res ipsa loquitur.
d. negligence.
The European Union has adopted a currency known as the:
a. Yuri.
b. Common Union.
c. Yen.
d. Euro.
What are the requirement of Holders in Due Course?
a. Possession of the instrument
b. Must have given value for the instrument
c. Mist not have any notice of outstanding claims
d. All of these answers are correct.
Legal requirements for a will depend on state law, but generally include all but which of
the following?
a. A writing.
b. Signatures of at least three witnesses.
c. The testators signature.
d. Witnesses who will not inherit under the will.
Brandon orally assigned his right to $100 to Will as a gift. This assignment is:
a. not valid because it was not in writing.
b. valid even though it was oral and there was no consideration from Will.
c. irrevocable once Brandon has told Will about the gift.
d. not valid because Will gave no consideration for the assignment.
What is the name of the treaty that allows American patents to be recognized and
enforced in member countries?
a. The Paris Convention for the Protection of Industrial Property.
b. The International Treaty of Trademarks and Patents.
c. The World Agreement of London.
d. The Berne Convention.
Percival takes his computer to a repair shop to have the disk drive repaired. This is most
likely a:
a. bailor benefit bailment.
b. bailee benefit bailment.
c. mutual benefit bailment.
d. leasehold arrangement.
Health insurance plans that specify that the patient can be treated only by doctors in the
organization are called:
a. Health Maintenance Organizations
b. Health Management Options
c. Pay for Service Plans
d. Point Source Plans
Tom receives an e-mail from someone alleging to be a Nigerian government official
who has stolen money from the government. He needs some place safe to keep the
money for a short time. The official promises that, if Tom lets his bank account be used
for this purpose, Tom will be allowed to keep a percentage of the stolen money. Tom
gives in to the temptation and provides his account information. Instead of receiving
money, Tom loses everything he had in the account to the scammer. In this situation:
a. prosecution can be under state law.
b. prosecution can be under the Computer Fraud and Abuse Act.
c. a civil action can be brought under Section 5 of the FTC Act.
d. All of the above.
Buck, fearing death from severe injuries suffered in a machinery accident, assigned
over a certificate of deposit worth $100,000 and delivered the certificate to Pearl, a
friend, who gladly accepts. Buck ends up recovering from the injuries. Why must Pearl
give the certificate of deposit back to Buck?
a. This type of gift is known as a gift causa mortis. It is a conditional gift which is
conditioned on Buck’s actually dying. Because Buck recovered, the gift is automatically
revoked.
b. This is an inter vivos gift because Buck was still alive when the gift was made. Any
inter vivos gift is revocable because there is no consideration to make Buck’s delivery
of the certificate binding under contract law.
c. This is an inter vivos gift and due to state laws, gifts in contemplation of death must
be written into a valid will or otherwise the deceased’s assets will be distributed
according to state statute.
d. This gift is an ordinary gift, but it is revocable because we don’t know if the
certificate of deposit has matured or not.
A customer in a restaurant would be considered ________ to whom the restaurant
owner owes a duty ________.
a. a licensee; to warn of known dangers.
b. an invitee; of reasonable care.
c. a social guest; only to avoid intentionally injuring him.
d. none of the above.
At what stage are the partnership debts paid and the proceeds distributed to the
partners?
a. During dissolution.
b. During winding up.
c. During termination.
d. During dissociation.
In 1919, Henry Ford was sued because:
a. he used corporate profits to support humanitarian and charitable works.
b. he diverted corporate profits for personal gain.
c. the Dodge brothers wanted a bigger role in management.
d. his factory was deemed to be a sweatshop.
Big Hog Farms of America, Inc., purchased 6,000 acres of farmland in South Dakota.
The company intends to build several hog confinement buildings that will house nearly
40,000 hogs in each one. When completed, the facility will have over 200,000 hogs.
The “hog factory” will cause terrible odors which will be extremely unpleasant for
neighbors within five miles. A town of 2,500 people is only three miles north of the
planned facility. The most serious concern is the disposal of all the hog manure, which
will be very substantial. The hog factory will dump the hog sewage into large lagoons
and then empty the watered-down sewage onto farm fields. It plans to sell some of this
manure as fertilizer, though most of it will be spread on grounds the facility owns.
Despite all the uproar from people in the area, many people are in favor of the facility.
It will employ nearly 200 people, purchase a lot of products (feed, supplies, etc.) from
local businesses, and generate a lot of money into the economy.
Is this business required to submit an Environmental Impact Statement to the federal
government and/or obtain a permit to operate from the EPA? Does the operation need
any permits from the federal government to operate? Does it need authorization from
state or local authorities? Explain.
A rock group assigns its payment under a performance contract to the Costume Shop, a
business that has supplied the group with outrageous stage outfits, and to which the
group owes a great sum of money. This is:
a. a valid assignment because of the rule of freedom to contract.
b. a valid assignment because this is a simple transfer of the right to receive money.
c. an invalid assignment because it increases the burden of the payor.
d. an invalid assignment because this is a personal service contract.
Beth owned an original United States flag. She had previously loaned the flag to Ross, a
lawyer, so that he could display the flag on the wall behind his office desk. One day
while visiting Ross in his office and admiring the flag, Beth said to Ross, “You are so
fond of that flag, I would like you to have it!” Ross responded with a gracious “thank
you.” In this situation:
a. Beth has not made a valid, binding gift of the flag because gifts are never binding and
can always be revoked by the donor.
b. Beth has not made a valid, binding gift of the flag because the donor must deliver the
property to the donee, which was not done here.
c. Beth has made a valid, binding gift if Beth agreed to give the flag in exchange for
Ross’s legal services.
d. Beth has made a valid, binding gift because she intended to transfer present
ownership to Ross and Ross accepted the flag.
A landlord’s substantial interference with a tenant’s use of the property is considered:
a. a constructive eviction.
b. a tort.
c. a violation of federal housing law.
d. permissible in a periodic tenancy.
James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to
take over for his father in the partnership and was well qualified to do the work his
father had done. Which statement best describes Frank’s rights in the partnership if he
inherits the interest?
a. Frank has a right to take over for his father in the partnership.
b. Frank is entitled to the value in the partnership, but not to become a full partner.
c. Frank has no rights to his father’s partnership interest.
d. None of the above.
Which of the following is a non mandatory issue for collective bargaining?
a. Wages
b. Hours
c. benefits
d. moving a plant
Roxanne was injured when she fell in a hole while walking across her landlord’s
parking lot. She and her lawyer hope they can settle the claim. Which of the following
statements about settlements is correct?
a. A case can be settled provided it has not been filed with the court.
b. A case can be settled provided that discovery has not commenced.
c. A case can be settled provided the jury has not heard any testimony.
d. A case can be settled at any time.
The following is a violation of the Sherman Abnti Trust Act.
a. Setting the minimum price for an item.
b. Lowering prices to put a competitor out of business.
c. Monopolize a market
d. all of the above
Who is a Merchant
a. someone who routinely deals in the particular goods
b. someone who appears to have special knowledge or skill in certain goods,
c. someone who holds a merchant to a higher standard of conduct than a nonmerchant
d. all of the above
Francenie has a checking account at Corner Bank. She wants tickets to an upcoming
concert. She writes a check to Ticketmaster for the cost of two tickets. In this scenario:
a. Francenie is the drawee, Corner Bank is the drawer, and Ticketmaster is the payee.
b. Francenie is the maker, Corner Bank is the drawee, and Ticketmaster is the payee.
c. Francenie is the drawer, Corner Bank is the drawee, and Ticketmaster is the payee.
d. Francenie is the payee, Corner Bank is the drawer, and Ticketmaster is the maker.
An auditor who determines a company is materially misstating certain items on its
financial statements should issue:
a. an unqualified opinion.
b. a qualified opinion.
c. an adverse opinion.
d. a disclaimer of opinion.
A “holder” of order paper can be described as:
a. the payee.
b. any person in possession of the instrument.
c. any person in possession of the instrument if it is payable to or indorsed to him.
d. the first party to come in contact with a negotiable instrument.
An agency will be terminated in all but which one of the following situations?
a. The principal and agent agree on an agency relationship to sell a boat, and the boat is
sold.
b. A travel agent files for individual bankruptcy under Chapter 13.
c. The agent violates his duty of loyalty.
d. An electrician, an agent of a contractor, has her license revoked.
Company policy of PushOne, Inc. is to block the company name and telephone number
on potential customers Caller ID systems so they wont know the call is from a
telemarketer. This policy violates FTC rules.
Explain what the General Agreement on Tariffs and Trade (GATT) is and give pro and
con arguments concerning this agreement.
Federal courts can declare an act of congress unconstitutional and therefore void.
Union members earn, on average, $200 more per week than non-union members.
A principal must indemnify an agent for any expenses incurred in carrying out agency
responsibilities, but the principal will not be responsible for indemnifying an agent for
any expenses not expressly authorized.
Stephen wants to give his niece, Dawn, a piece of jewelry as a gift. Stephen gives Tracy,
his agent, the bracelet to take to Dawn. The delivery element of making a gift has been
completed.
Assume that Jessie and Whole Foods have formed a contract whereby Jessie agrees to
deliver 10,000 dozen “Grade A Large Eggs” to be shipped in recycled paper cartons that
conform with Whole Foods green policy.. A shortage of paper makes paper cartons
much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Whole
Foods is entitled to cancel the contract based on this deviation of terms in the contract.
Generally, the assignment of the obligation to perform personal services is invalid.
Under all chapters of the Bankruptcy Code, most of the debtors assets are distributed to
creditors and the debtor has no obligation to share future earnings with creditors.
The city of Richmond needs land owned by the Neelans to expand a middle school. The
Neelans do not want to sell. Discuss what course of action the city can take and the
basis for this action.
An executor who is related to the testator is not entitled to compensation.
What is the Genetic Information Nondiscrimination Act?
Maddie enters into a secured consumer debt transaction with Friendly Bank. When
Maddie pays the loan in full, Friendly Bank is required to file a statement indicating
that it no longer claims a secured interest in the collateral. This statement must be filed
within one month from the date the debt is fully paid.
A domestic corporation is a corporation that deal with non commercial matters.
The largest source of new law is court decisions.
It is legal for a private employer to use lie detector tests as part of its usual hiring
process.