Individual consumers may bring an action against a collection agency for damages
suffered by collections efforts.
Joe and Josephine have started a plumbing business and have incorporated. They invest
nothing into the corporation and the corporation has minimal assets. One day Josephine
negligently damages a main pipe in a customer’s home causing the basement to flood
and resulting in $20,000 in damages. The homeowner’s only remedy is to sue the
corporation and because the corporation has no funding and minimal assets, the
homeowner must bear the loss because Joe and Josephine are shielded from liability
due to the corporate protections the business entity affords them.
Federal legislation or regulation must be authorized by a specific enumerated power in
the Constitution.
Company A and Company B own adjacent pieces of land. If Company A digs a mine
that starts on its own property but goes across the property line below ground and finds
minerals below Company B’s surface property, they may mine and use the minerals for
their own use because they have not gone onto or disturbed Company B’s property.
Incidental beneficiaries are known about when the contract is entered into.
The common law held that property owners own the rights to the air and light for up to
one hundred feet above their property.
A principal has the power to terminate an agency relationship whether or not they have
the legal right to terminate that relationship.
Mike goes to his local bike shop to buy a cyclometer (measures speed, distance, etc.).
He tells the salesman that he wants the best cyclometer on the market and the salesman
shows him a cyclometer and states that particular brand and model was actually used by
some participants in the 2010 Tour de France bicycle race and is the best Mike can buy.
Mike buys the cyclometer. As it turns out, 8 of the 189 riders indeed used the brand and
model bought by Mike, with the other 181 using varying other brands and models. In
actuality, there is no acknowledged top brand and model and use is subject to personal
tastes. The salesman has committed a fraudulent misrepresentation stating that the
brand and model sold to Mike was the best.
The U.S. Constitution does not address bankruptcy laws.
Once an employee has established that she has a covered disability, the Americans with
Disabilities Act requires that the employer make reasonable accommodations allowing
the employee to perform the essential functions of the job.
International Chamber of Commerce terms and abbreviations are usually used in
conjunction with UNCISG.
The standard for issuance of a warrant for a search in a noncriminal administrative
violation investigation is lower than for investigating a criminal offense.
An international arbitration usually has no connection with the country where the
arbitration is being held.
Citizen suits may be used to attack the substance of an administration regulation that
has been properly promulgated.
The management structure of a member-managed LLC is similar to that of a general
partnership.
States may never regulate commerce that crosses state borders as this is an exclusive
federal power.
A telephone book listing citizens’ names, addresses and phone numbers may not be
copyrighted.
A particular act can be deemed unethical yet still be legal.
Many states have eased filing requirements to create an LLC from requiring extensive
amounts of information to now requiring minimal information similar to that required
in a corporate filing.
Ben has applied for a job at a restaurant. As a condition of employment, he may be
required to take a polygraph test.
LLPs may choose to be taxed like a corporation or choose pass-through taxation
treatment.
The UCC permits a contract to be considered formed entirely by the parties’ conduct
even if no definite time of formation can be determined.
The Americans with Disabilities Act defines a disability as being a physical impairment
and does not include or protect employees regarding mental impairments.
To qualify for Subchapter S status, a supermajority of the shareholders must consent to
the Subchapter S designation.
Family limited partnerships are designed for parents and children to operate a business
together while protecting family related assets.
All American tax payers are allowed to bring any case they want to in federal court at
any time.
Once a corporation is recognized as existing by the state, the corporation automatically
becomes liable for all contracts which a promoter had entered into on behalf of the
corporation.
Affirmative action sets and requires quotas in order to meet racial and sexual equality.
If the police fly over your home with a helicopter and observe your activities using
binoculars or a telephoto lens, this would constitute an illegal search if done without a
warrant.
If a seller has delivered nonconforming goods that have been rejected, upon notice of an
intent to cure, the seller automatically then has 15 days to deliver conforming goods.
The case of Mattison v. Johnston held that competition is not a valid excuse to break a
restrictive covenant that was created to avoid just such practices and that inducing
someone to break a restrictive covenant is tortious conduct.
Administrative warrants are held to the same probable cause standard as criminal
warrants.
The final result of the AIG bonusgate scandal was that no new laws or taxes were
enacted, nor were there any additional official actions taken by Congress or the
president.
Antitrust legislation was enacted in response to the robber barons of the late 18th
century.
Assumption of risk by the investor is a defense available for allegations of ’33 Act
violations.
The U.S. Constitution requires that all state court judges be appointed by the state’s
governor, subject to the approval of the state’s legislature.
Most privacy rights afforded in the Constitution do not extend to the workplace.
Online negotiation is available for minor disputes but disputes arising from complex
transactions may only be resolved with traditional face to face meetings.
The United Nations Convention on Contracts for the International Sale of Goods does
not recognize a formal writing requirement similar to the UCC statute of frauds
requirement.
Which of the following situations is not a situation in which strict liability applies?
A.T.J. manufactures cheap clothing that falls apart after minimal use
B.Amanda owns a pet tiger that she keeps in her home in a suburban neighborhood
C.Faye owns a business in which she regularly uses explosives
D.Aimee manufactures snack cakes that are sold in small grocery stores
Which of the following would likely not be considered a major life activity supporting a
disability claim?
A.being able to sit for long periods
B.thinking and reasoning
C.proficiency in typing
D.speaking
With regard to whistle-blowers:
A.employers may terminate whistle-blowers if they can prove a reason for termination
independent of retaliation for the whistle-blowing.
B.based on the employment-at-will doctrine, employers may terminate whistle blowers
without evidencing a reason independent of retaliation for the whistle blowing.
C.every state law protects both government and private employees from retaliation.
D.there is no federal whistle-blower act.
In Bridgestone Americas Holding, Inc. v. Mayberry, the court had to determine if
Bridgestone’s trade secret for a particular formula was discoverable. They decided:
A.whenever a tire fails and an accident occurs, any formulas directly applicable to the
construction of the tire are discoverable even if a trade secret is claimed.
B.because Mayberry was able to prove the general relevance of the formula to her case,
she met her burden and the trade secret was discoverable.
C.the trade secret formula was not discoverable because the case could be proven by the
tire’s appearance and disclosure of the trade secret formula was therefore not pertinent.
D.if a company can meet the test to prove that particular information truly represents a
trade secret, that trade secret is never discoverable because allowing trade secrets to be
made public would disrupt business and competition.
There are two ice cream stands at the same intersection. In order to protect their
businesses, the two owners agree that they will charge their customers the same prices
for an ice cream cone. What type of horizontal restraint is this?
A.not a horizontal restraint
B.price fixing
C.market allocation
D.boycott
In Trinity Marine Products v. Secretary of Labor Elaine Chao Trinity Marine turned
away OSHA compliance officers who had come to conduct an inspection. OSHA
obtained an administrative warrant and came back with federal marshals. Trinity
officials allowed the search under protest and later filed suit alleging that the warrant
had been obtained without probable cause. The court held that:
A.the probable cause standards for administrative warrants were the same as criminal
warrants and the criminal standard had been met in this case which allowed for a
reasonable use of force in executing the warrant.
B.the probable cause standards for administrative warrants is lower than for criminal
warrants and the warrant could be executed using a reasonable degree of force.
C.the probable cause standard for administrative warrants is lower than for criminal
warrants but cannot be executed with any degree of force.
D.the probable cause standard for administrative warrants is the same as for criminal
warrants but that standard had not be met in these circumstances.
With regard to taxation of partnerships:
A.a partnership files a federal and state partnership tax return and pays taxes on its
income.
B.a partnership must file an information return.
C.a partnership files a state partnership tax return and pays taxes on its income but no
federal filing is required.
D.partnerships have no tax filing responsibilities.
When disputing parties submit blind bids to an automated service stating what they are
willing to pay or receive to resolve the dispute and the software evaluates the bids and
produces a fair price based on the party’s input, the form of ODR being utilized is:
A.online negotiation.
B.online mediation.
C.online arbitration.
D.med-arb.
Michelle is driving at night when a policeman pulls her over for a blown tail light.
When he approaches the car he shines his flashlight into the car and sees a bag of white
powder on the back seat. The officer orders Michelle out of the car and then reaches in
to seize the bag. A quick examination leads him to believe that the bag contains cocaine.
He arrests Michelle and takes her to the station.
A.the officer conducted an illegal search because he didn’t obtain a warrant
B.the officer conducted an illegal search because he may look into the car but may not
use mechanical devices to aid his search without a warrant so the use of the flashlight
made the search illegal
C.the officer conducted a legal search because he may look into the car and may use
simple mechanical devices, such as a flashlight, to aid his search without a warrant
D.the officer conducted a legal search because he found drugs and the ends justify the
means
The corporate counsel’s opinion verifying the business ventures adherence to corporate
formalities and compliance and opinion of the corporation’s accounting firm is
contained in the:
A.prospectus.
B.letters of intent.
C.supplemental information.
D.comfort letters.
Under the Clean Air Act (CAA) who determines the best way to achieve National
Ambient Air Quality Standards (NAAQS)?
A.Congress
B.the Environmental Protection Agency (EPA)
C.states
D.the National Air Quality Control Agency (NAQCA)
Which act regulates the leasing relationship where the consumer has possession of a
motor vehicle in exchange for monthly payments?
A.Consumer Lending Act
B.Truth in Lending Act
C.Magnuson-Moss Act
D.Equal Credit Opportunity Act
Which of the following is not true regarding venture capital firms?
A.they are generally long term investors
B.they generally concentrate on one particular industry
C.they usually insist on substantial control of the corporation being funded through
membership on its board or through appointments to certain officer positions
D.they are generally a source of expertise in operations and expansion of the
corporation being funded
LLCs share characteristics in common with each of the following except:
A.general partnerships.
B.limited partnerships.
C.corporations.
D.sole proprietorships.
Corporate officers are:
A.elected by the shareholders.
B.appointed or elected by the board.
C.appointed by the board and ratified by the shareholders.
D.elected by the shareholders and ratified by the board.
Murder is the killing of a human being with malice aforethought. Malice aforethought
is the premeditation and planning of the crime. Malice aforethought shows that one
considered the consequences of their actions and knowingly committed the crime. The
killing would be the:
A.actus reas.
B.mens rea.
C.voir dire.
D.indictment.
What is the name of the legislation that helps homeowners avoid foreclosure by
offering certain guarantees when refinancing a mortgage?
A.Mortgage Forgiveness Debt Relief Act
B.Truth in Lending Act
C.House Refinancing and Protection Act
D.Foreclosure and Debt Prevention Act
Mike’s Bikes is a bicycle sales and repair shop in a small city. They sell new and used
bikes with a narrow profit margin and do repairs at minimal costs. Frequently if a child
comes into the shop with a broken part or a flat tire they make the repair for free if the
child has no money. Mike also provides a free one hour repair class for those who want
to learn how to fix their bikes. At large local organized bike rides Mike’s provides free
services asking only for voluntary donations. Which theory of corporate social
responsibility is Mike’s exhibiting?
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
Under the Foreign Sovereign Immunities Act (FSIA) a foreign country is not under the
jurisdiction of U.S. courts if the foreign nation:
A.is engaged in some commercial enterprise on U.S. soil.
B.its actions have a direct effect on U.S. interests.
C.files a law suit in its own courts against a U.S. based business.
D.waived immunity, explicitly or by implication.
An easement written in a deed is called an:
A.easement by necessity.
B.easement by grant.
C.easement by implication.
D.easement by prescription.
Le Magasin de Vêtements, Inc. is a clothing retailer incorporated in France. If they
transact business in New York, Le Magasin de Vêtements would be characterized as
a/an:
A.domestic corporation.
B.foreign corporation.
C.alien corporation.
D.native corporation.
An ex post facto law:
A.is a criminal law that takes effect at some specified time in the future.
B.is a state criminal law that conflicts with a federal criminal law and is overruled by
the federal law.
C.is a criminal law that is written to apply retroactively.
D.is a criminal law that is based on federal common law.
Gina is the executive secretary to the CEO of a large public corporation. One day her
boss takes her into a back room containing numerous cardboard file boxes and three
shredding machines and he orders her to shred every document and file in the room. He
then says, “We’re under investigation by the SEC and if they get their hands on anything
in this room we’re ruined.” She asks what is going on and is told that the company has
been perpetrating frauds for years and they need to destroy all the evidence.
A.since Sarbanes-Oxley does not have a whistle-blower provision Gina has no recourse
if she wants to keep her job
B.since Gina didn’t actually participate in the frauds and since she is only following
orders, she will have no liability
C.since the investigation is ongoing and no charges have been brought, shredding the
documents is not a punishable offense yet
D.Gina could be imprisoned for up to 20 years if she shreds the documents
Once the union organizers obtain authorization cards from at least ________ of the
members of a bargaining unit an election will be scheduled by the NLRB.
A.20%
B.25%
C.30%
D.35%
Jonathan has graduated and wants to start a business. Which business entity gives him
the most complete and exclusive control over the business and any business decisions?
A.sole proprietorship
B.limited liability company
C.corporation
D.general partnership
The following act was passed specifically to monitor and prevent corruption in major
trade unions:
A.National Labor Relations Act.
B.Labor Management Relations Act.
C.Labor-Management Reporting and Disclosure Act.
D.Fair Labor Practices Act.
In Hannington v. University of Pennsylvania, the court had to determine whether an
attorney acted under apparent authority regarding the negotiation and signing of a
settlement agreement. They determined that:
A.attorneys are generally independent contractors and cannot possess apparent
authority to bind a principal.
B.after six months of negotiations it is reasonable to believe that an attorney has
apparent authority to finalize an agreement on behalf of the principal.
C.because the agency was disclosed and the principal’s identity well known, the
University could have easily verified the enforceability of the agreement with
Hannington so they are at fault for not doing so.
D.third parties may never enforce an agreement that the principal has not authorized
and signed.
Which of the following courts renders decisions binding only on the parties involved in
the dispute?
A.the Pennsylvania Supreme Court
B.the U.S. Supreme Court
C.the U.S. District Court
D.the Michigan Appellate Court
Fred and Barney have incorporated and obtained a $100,000 loan payable with interest
over five years in the corporate name. After paying on the loan regularly for two years,
the business falters due to the economy and they default on their loan. Their business
has no assets.
A.Fred and Barney are jointly and severally liable for the entire balance
B.Fred and Barney are each individually liable for one quarter of the debt with the
corporation liable for the remaining half
C.Fred and Barney are each individually liable for one third of the debt with the
corporation liable for the remaining third
D.Fred and Barney have no personal liability for the debt
In Fontainebleau. Eden Roc, the Eden Roc Hotel sued the Fontainebleau Hotel when
Fontainebleau began erecting a fourteen story addition to their premise that they
claimed blocked air and sunlight from their pool and sunbathing areas. The court
determined:
A.blocking the air and sunlight constituted a nuisance so the building could be stopped.
B.the English law doctrine of “ancient lights” applied only if the building caused a
dangerous circumstance to occur but not if the building only causes a nuisance.
C.the building could be erected only if it could be shown to be useful and beneficial as
long as it is not being erected out of spite to knowingly harm the plaintiff.
D.the building could be erected if it could be shown to be useful and beneficial even if
it may have been erected partly for spite to knowingly harm the plaintiff.
The Americans with Disabilities Act applies to employers with ________ employees.
A.10 or more
B.15 or more
C.20 or more
D.25 or more
Protections under the Bill of Rights were extended to include restrictions and actions by
state governments under the:
A.Twelfth Amendment
B.Thirteenth Amendment
C.Fourteenth Amendment
D.Fifteenth Amendment
With regard to the court, adequacy of consideration means:
A.the consideration exchanged must be exactly equal in value.
B.the consideration exchanged must be reasonably close in value.
C.the court will adjust the consideration if the value exchanged is unfair.
D.the court doesn’t care about value as long as the mutual assent is valid.
The civil law system is based on which legal heritage?
A.English
B.Roman
C.American
D.Italian
The power of preemption is derived from:
A.the power of judicial review
B.the Commerce Clause
C.the Necessary and Proper Clause
D.the Supremacy Clause
How does an assignment differ from a delegation? When are they permitted and when
are they not permitted?
A company’s environmental policy and employee expectations regarding protection of
the environment would be found in the company’s code of _______.
Name the four elements that must be proven to establish a prima facie case of disparate
treatment in hiring under the McDonnell Douglas standard.
Why is the case of Grimshaw v. Ford Motor Company looked at as an example of the
failing of the invisible hand and government’s hand approaches to corporate social
responsibility?
Kathy runs a business from her home. Not only is she the sole employee, she never
leaves her home, performing all business functions in her pajamas in front of her
computer. Her business consists of buying and then reselling various goods over the
Internet. She is very successful with thousands of customers. In terms of regulation of
commerce, how would you characterize her business?
Disparate treatment is analyzed using the ________ standard.
The ________ Act is the main federal statute that is a source of administrative law.
Language such as “provided that” or “unless” in a contract which triggers a
performance obligation is called a _______.
Powers granted to the three branches of the federal government in the Constitution are
known as ________ powers.
Mohammed has applied for a custodial job and has been rejected. He believes that his
rejection is because of his Arab heritage. He is able to show two years of custodial
experience and has successfully performed each of the jobs listed on the positions job
description. He subsequently discovers that the job continued to be advertised after his
rejection. When he files a complaint alleging disparate impact discrimination with the
EEOC, the employer asserts that Mohammed did not meet their qualifications which
included a minimum of ten years experience and a high school degree. How should the
court decide this case?
In what way do legal remedies and equitable remedies differ?
Owners of nonvoting stock who receive a share of the corporate profits have received
what is called a _______.
A fact that does not excuse a crime but may be considered to lessen punishment is
called a ________ circumstance.
A short term strike called without union authorization is called a ________ strike.
Willie is selling his home. As he starts the moving process he is wondering what he may
take with him and what he must leave behind. Assume that the contract doesn’t
specifically list individual items and simply says that he must leave all fixtures. In
particular he is wondering if he can take the following: his brand new refrigerator;
glued carpeting in his basement; the 5′ by 7′ handmade Oriental rug in his den and the
shelving in his garage. Since you have taken a law class, he asks you for your advice.
What should you tell him?
Mountain Stuff is a Colorado Corporation selling mountain climbing equipment. They
maintain a web site that provides information about their products as well as general
information about mountain climbing. A consumer cannot purchase equipment directly
from the site but can request order forms to purchase equipment directly from Mountain
Stuff. Mountain Stuff maintains no offices outside of Colorado and no products are sold
by retailers outside of Colorado. On the web sites general information portion of the site
they print an article accusing Utah Mountain Sports, a competitor, of intentionally
manufacturing and selling defective and sub standard equipment following an accident
by climbers using Utah Mountain Sports equipment. There is no direct proof referenced
in the article and in fact the article is incorrect. Never-the-less, articles are written
referencing the Mountain Stuff statements and Utah Mountain Sports has seen an
otherwise unexplained 10% decline in their typically $1 million a month sales in each
of the three months since the article was published. If Utah Mountain Sports sues in
federal court in Utah, will the court be able to find personal and subject matter
jurisdiction under these circumstances?
An employee who reports unlawful conduct or a statutory violation committed by their
employer is called a ______.