Kathy is the president of a corporation. She has just made the news by being discovered
with a male prostitute while at a conference. Mike, a shareholder, may successfully
present a proposal at the next shareholder meeting calling for a shareholder vote to have
her removed from office.
The courts have adopted a soft per se analysis for cases involving tying agreements.
The Federal Arbitration Act specifically enumerates specific procedures for conducting
arbitration hearings.
AIG caused a major political firestorm when, after receiving taxpayer bailout money,
they distributed $165 million in performance bonuses to executive employees.
The Employee Retirement Income Security Act authorizes the Department of Labor to
monitor both pensions and retirement savings plan administration.
The IRS has classified the LLC as a type of corporation for tax purposes.
Judges must be present during depositions to resolve disputes and ensure fairness.
Even though children may legally be employed as actors, the Fair Labor Standards Act
requires that appropriate educational standards be maintained through tutors and/or
home schooling.
Unless very extreme circumstances are shown, the tenant’s right to habitability will be
more strictly enforced in residential leases than in commercial leases.
American Arbitration Association arbitration rules permit the parties to choose an
arbitrator as long as the AAA receives notification of their choice.
The majority of cases filed in the U.S. are filed in state courts.
Ronald is 17 years old and contracts to purchase a car and make monthly payments for
three years. His birthday is August 1st. If Ronald changes his mind, he may disaffirm
the contract at anytime prior to August 1st but loses the right to disaffirm on August 2nd.
In liquidation secured creditors are paid first and in full so long as the value of the
collateral equals or exceeds the value of their security interest.
Government officials do not negotiate with principally responsible parties to figure out
their contribution towards cleaning up polluted sites.
If a limited partner actively participates in day to day management of the business they
may forfeit their limited partner status and lose their limited liability for debts and
liabilities.
Sally is walking her 6 month old baby in a stroller. Mark, a stranger, looks into the
stroller and says, “Wow, that’s one ugly baby.” Sally is furious and sues Mark for
intentional infliction of emotional distress. She will likely lose.
Under the Revised Uniform Limited Partnership Act, limited partners may act as
consultants and may contribute their expertise to the limited partnership.
Professor Jones accuses Kim, one of his students, of cheating on an exam. Professor
Jones arranges a hearing to be held in front of the University’s Academic Honesty
Board and she is informed that she must prove her innocence before Professor Jones
must prove her guilt. Kim is being denied her Substantive Due Process rights.
There are no federal common law crimes.
LLCs are not permitted to capitalize by selling equity ownership in the LLC itself.
According to the Zippo standard for assessing minimal contacts by an out-of-state
Internet based company, it is possible for a passive web site to also be considered a site
integral to the company’s business model.
It is possible to be in rightful possession of personal property without having actual
ownership of the property.
The CAN SPAM Act does not address spammers who falsify the name of the sender.
If an agent suffers losses while acting for the principal, the principal has a duty to
indemnify the agent for those losses.
Under the Constitution, Congress has the enumerated power to appoint federal officers
and judges.
An advantage of operating as a sole proprietorship is that personal liability for any
business losses is limited to the owner’s investment in the business.
The finder of lost property obtains better rights of ownership to that property than
anyone else.
A party holds title to goods when the goods have come into existence and the goods are
identified to the contract.
Individual consumers do not have the right to see their own credit report unless they are
applying for a loan.
Officer Jones is a policeman on a foot patrol. When he passes a group of three students
he smells what he believes to be the odor of marijuana even though he does not see any
of the three actually holding or smoking a joint. He may conduct a limited pat down
search of the three students to determine whether any have marijuana on their person.
Shareholders are the owners of the corporation and, in part, act principally through
electing and removing officers.
Duress must be based on a physical threat and not an economic one.
In Palsgraf v. Long Island Railroad Co., the court first articulated and established the
concept of proximate cause.
The Restatement (Third) of Torts is currently the most current.
Obscenity regulation of commercial speech is subject to the same scrutiny as any other
government regulation of commercial speech.
When a member of an LLC dies, the business entity automatically ceases to exist.
Vertical restraints are agreements between:
A.business and government.
B.noncompetitors.
C.competitors.
D.consumers and government.
A corporation incorporated in Utah and doing business in Nevada is classified as
________ in Nevada.
Which of the following gives a person the right to vote at an annual meeting?
A.a debenture
B.a share of stock
C.a bond
D.a promissory note
Under the Administrative Procedures Act, Congress has the authority to cancel an
agency’s final rule if all of these conditions are met except:
A.both houses agree.
B.a resolution to overrule is passed within 60 days.
C.there is no judicial challenge from the court’s within 60 days.
D.the overruling resolution is presented to the president.
A professor tells a student that if she writes a 5,000 word paper on the evils of
plagiarism by May 13th, he will pay the student $750.00.
A.the offer is for a unilateral contract
B.if the student gives the paper to the professor on May 14th, the money is owed
because the student came close and did get the paper done
C.this contract is only enforceable if it’s in writing
D.this contract is only enforceable if the student verbally or in writing accepts the offer
prior to beginning the paper
The fact that the actual negligent act must directly cause the injury is called the:
A.proximate cause.
B.misfeasance.
C.nonfeasance.
D.cause in fact.
In Cavel International, Inc. v. Madigan, when Illinois passed the statute barring the
slaughter of horses primarily for human consumption, Cavel presented each of the
following arguments except:
A.that they would suffer $20M in losses
B.that dozens of jobs would be lost in the local economy
C.that they were a foreign corporation not subject to US commerce laws
D.that the Act effectively banned the export of horsemeat to Europe affecting foreign
commerce
Mike has written a novel.
A.the novel is copyrighted automatically after completion
B.the novel does not receive copyright protection unless it is registered with the United
States Copyright Office
C.Mike may sue in court to enforce his rights whether the novel is registered or not
D.the novel must be published before it can be eligible for copyright protections
When is a categorical exclusion for an action available under NEPA?
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
Which of the following is not true of ADR proceedings?
A.the jury decision in an ADR proceeding is automatically subject to one appeal
B.the party conducting the ADR hearing is chosen by the disputing parties themselves
in certain instances
C.ADR hearings generally result in much less publicity than does litigation
D.ADR hearings usually arrive at a resolution at a much lower cost than does litigation
Mike asks his girlfriend Brandi if he could borrow her car. Brandi agrees to allow
Michael to use her car for the day.
A.an easement has been created
B.a bailment has been created
C.a leasehold has been created
D.a fee simple defeasible has been created
In Enriquez v. West Jersey Health Systems, the plaintiff began an external
transformation from male to female. When her contract was not renewed she brought
suit claiming discrimination.
A.the plaintiff was not entitled to protection under federal law but was protected by
New Jersey state law
B.although there was a New Jersey law protecting Enriquez, because the federal law
excluded the plaintiff the state law was deemed preempted and could not be enforced
C.changing sex or changing sexual appearance is intended to be covered by Title VII so
Enriquez had a valid suit
D.the discomfort of the majority of the plaintiff’s coworkers outweighed any rights that
the plaintiff might have because the majority should be able to dictate policy
What is not typically part of a security agreement?
A.description of the collateral
B.obligations of debtor
C.remedies available to the creditor
D.instructions on perfection
Johnson Builders is selling a newly built home to Sheila. JRK Realtors is handling the
transaction. This sale is covered under Article 2 of the UCC.
Applying the parole evidence rule:
A.written contracts with ambiguous terms are automatically void and cannot be
corrected.
B.oral agreements may be used to change a final written contract if the final written
contract isn’t exactly conforming to the pre-contract agreements.
C.written agreements may be used to change a final written contract if the final written
contract isn’t exactly conforming to the pre-contract agreements.
D.a written contract is the final expression of the party’s agreement and may not be
contradicted by oral or written agreements made prior to the writing.
Which of the following is least likely to be considered a mitigating circumstance?
A.age
B.sex
C.mental illness
D.lack of a prior criminal history
The Due Process Clause is found in:
A.the Fifth Amendment only
B.the Fourteenth Amendment only
C.neither the Fifth or Fourteenth Amendment
D.both the Fifth and Fourteenth Amendments
E.Scrambling Locked
Kathy is stopped at a red light when she is run into from behind by Mike. This occurred
at noon on a clear and sunny day on dry roads. Kathy claims a serious back injury and
is suing for various forms of damages. There were three witnesses to the accident. With
regard to discovery methods, which form of discovery would be most appropriate in
each of the following situations? Fully explain.
a. Kathy would like to avoid calling an expert witness to testify as to road and weather
conditions at the time of the accident.
b. Kathy would like to determine if Mike was talking on his cell phone or texting at the
time of the accident.
c. Mike would like to see the doctor’s reports discussing Kathy’s back injury.
d. Both Mike and Kathy would like to get statements from the witnesses.
Which of the following is an incorrect statement regarding Subchapter S corporations?
A.they may issue only one class of stock
B.they may be domestic or foreign but cannot be alien
C.taxation is pass-through similar to partnership taxation
D.they may not have more than 100 shareholders
Absent specific agreements between the parties, the reasonableness requirement of the
UCC governing delivery of goods requires each of the following except:
A.the goods be delivered in one shipment.
B.the goods must be delivered at a reasonable hour.
C.the goods must be delivered on a week day.
D.the goods must be delivered in a reasonable manner.
The Endangered Species Act (ESA) is administered by the Department of Commerce
and the Department of the Interior.
Mike and Kathy are both tenured associate professors in a school’s English Department.
Kathy is constantly asking Mike out on dates, which he always refuses. He has asked
her to stop asking. Furthermore, Kathy is always making provocative comments to him,
telling dirty jokes and asking him about his preferences in women which embarrasses
him and has caused him to lose sleep. If Mike sues the school for permitting her
behavior:
A.the school would win because a woman can’t harass a man and he should be flattered
rather than upset.
B.the school would win because Mike and Kathy are on the same employment level and
Mike can’t be truly harassed unless Kathy has the ability to impact his job status; which
she doesn’t.
C.Mike wins if he had previously complained to the school and they had done nothing
to stop the harassment.
D.Mike wins because regardless of notice, the employer is automatically liable for any
improper activity that occurs on the job and it is their responsibility to know what is
happening on their premises.
Assume that the state of Georgia has just raised the fee for registration of motor
vehicles $5.00 per year. If challenged, this new statute would be reviewed using:
A.rational basis scrutiny
B.intermediate scrutiny
C.strict scrutiny
D.no particular form of scrutiny is required in this situation
Which of the following is used to separate and keep apart commercial, residential and
industrial properties?
A.eminent domain
B.variances
C.easements
D.zoning
Christian and Jimmy both design and manufacture popular shoes. They believe that one
of the department stores that carries both of their designs is undercutting the other
department stores’ prices. After discussion, Christian and Jimmy decide that they should
not sell their shoes to the department store again. What type of restraint is this?
A.meeting of the minds
B.price fixing
C.boycott
D.market allocation
In a contract governed by UNCISG, when must a contract for the sale of goods be
written?
A.when the price exceeds $500
B.when the price exceeds $1,500
C.when the price exceeds $5,000
D.there is no requirement that the contract be written
The Fair Credit Reporting Act (FCRA) requires that credit bureaus remove bankruptcy
filings from credit reports. A bankruptcy filing is considered to be obsolete after how
many years?
A.seven
B.eight
C.thirteen
D.fourteen
Kathy was returning to the United States after a vacation when the Customs Service
confiscated some goods she had purchased abroad and brought back with her. The
determination of whether the government acted properly and the type of hearing that
she must be provided is an analysis of:
A.Procedural Due Process
B.Substantial Due Process
C.the Equal Protection Clause
D.the Commerce Clause
In Leonard v. Pepsico, the court ruled against Leonard and refused to enforce the
purchase of a Harrier Jet because:
A.the advertisement specifically referred to the accumulation of points to purchase
items in the catalog and the Harrier was not listed in the catalog
B.the sale of a Harrier jet, still used by the military, would jeopardize national security
so Pepsi’s ad could not be taken seriously
C.Leonard did not accumulate points but instead purchased them which violated the
rules of the offer
D.Leonard did not accept the offer in the manner specified and required in the offer so
his acceptance was defective and void
When Bad Frog Brewery, Inc., placed a label on their product showing a frog with
unwebbed fingers with its middle finger extended, New York State sued to prohibit the
use of the label claiming it to be obscene and claiming an interest in protecting the
state’s children. The court found:
A.for Bad Frog because children cannot purchase beer so any exposure would be
incidental
B.for Bad Frog because the labels did not concern an unlawful activity and the state did
not prove its interest in protecting children from vulgarity
C.for New York State because once purchased, the labels would be exposed in
refrigerators or drunk in rooms while children were present
D.for New York State because they proved a substantial effort to advance a valid state
interest amounting to more than “not merely the removal of a few grains of sand from
the beach of vulgarity”
Who is the presiding officer at an agency’s adjudication hearing?
A.a member of Congress appointed as a representative
B.the head of the agency
C.an arbitrator
D.an administrative law judge
In EEOC v. Asplundh Tree Expert Co., the court dismissed the lawsuit against the
defendant because:
A.the EEOC filed suit without doing an investigation.
B.the EEOC did not have a right to sue letter.
C.the EEOC had not acted in good fair with regard to the timing and procedures they
followed.
D.the EEOC had not uncovered an actionable form of discrimination and the suit was
without merit.
What is the role of a trustee in bankruptcy?
The loss of marital relations and spousal companionship is called loss of ______.
You are the CEO of a major corporation that is suffering financially in the current
economy. Your board has tasked you with cutting employee related costs by 5%.
Recognizing and referencing the pros and cons of alternative approaches you could take
and the ethical theories that apply; what would you do?
When a trademark has become representative of a broad type of products as opposed to
being descriptive of a particular brand, the trademark has become ________ and the
holder has lost the right to enforce the mark against competitors.
Amos owns a piece of land along a country dirt road. Very few cars use the road and the
land is pretty secluded. One day Amos hears that the county is planning to build a major
highway that will go right along the border of his property. He checks the newspaper
and sees that indeed plans are being made to build the road and funds are being
arranged. Amos then drains his modest bank account and borrows money from his
family and friends to erect a diner on his property to attract the highway drivers. Just as
he finishes construction of the diner, the county changes their plans and decided to build
the highway along another route, miles from Amos’s property. Amos now has a shiny
new diner, miles from any traffic and essentially in the middle of nowhere. What legal
options does Amos have, if any?
Describe the current state of international protections of trademarks.
What are the four major differences between the UCC and the UNCISG?
What is the means test? Provide an example of how it would be applied.
Veto power is a power granted to the ________ branch of government.
Burt has come across an excellent recipe for a new beer and he and twenty college
friends decide to go into business. They form a corporation named New Brew Inc.,
issuing stock only to the twenty one of them and not selling any stock outside of the
group. The beer is a huge success and they soon have the need to expand. They decide
to sell stock to members of the public to raise capital. Aside from stock disclosure
requirements, what must they do and how will it affect their corporate status?
Artisan Tools, Inc. manufactures and sells quality hand tools to commercial and
consumer users. Due to an excellent marketing campaign, their business is growing
quickly. After careful consideration the board decides that a new factory needs to be
built to accommodate current and future business. This factory will cost millions of
dollars. In order to fund this project the board has decided to issue and sell bonds and
debentures. What is the difference between a bond and a debenture and why might they
be more advantageous than simply obtaining a commercial bank loan to finance the
factory?
The U.S. Supreme Court has established three standards of review used when applying
Constitutional law. Name and discuss these three standards in terms of how they relate
to state objectives.
You have just graduated and you want to start your own business. You have a degree in
horticulture so you have chosen to open a florist shop and plant nursery. What type of
business entity will you choose and explain its benefits and detriments in detail.
Dover is the State Capital of Delaware. The primary road that bisects the city is Route
13 which was, many years ago, a primary road for travel up and down the east coast.
Route 13 as it goes through Dover is a four lane road with two lanes in each direction.
There are no other major through roads. Due to an influx of industry both north and
south of the city, along with increased population in and around the city, the two lanes
of Route 13 are often clogged and very slow moving. Dover Downs attract over
100,000 NASCAR fans, and their vehicles, twice a year and a new convention
center/hotel/casino has recently been built, attracting hundreds of visitors a day. The
city wants to widen Route 13 but all land adjacent to the road is privately owned. What
rights does the City of Dover have and what can the city do? Explain fully.
The business entity in a franchise arrangement that has the record of success and allows
others to operate a business using their trade mark and products is called the _______.
Secured creditors must ________ their security interests before they are protected under
the UCC.
The ________ gives the president power to appoint officers of the U.S. which includes
heads of administrative agencies.
Explain the following statement from the text. “A franchise should be thought of as a
method of conducting business rather than a business entity”.
Gus owes a lot of money to his creditors. Recently one of the creditors turned over his
account to a collection agency. The agency continually calls Gus to try to recover the
debt he owes. They have started calling him at work several times a day. May the
collection agency do this?
The ________ Act is the most important wildlife protection legislation.