Laws requiring that the police show reasonable cause and obtain a search warrant
before entering a place of business to search for evidence are examples of substantive
laws.
Jurisprudence refers to the conducting of a trial and the rendering of a judicial decision.
Jason writes a check to the university bookstore to pay for textbooks and supplies. This
is an example of an informal contract.
Under the Constitution, Congress has the enumerated power to appoint federal officers
and judges.
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.
In NLRB v. Midwestern Personnel Services Inc., the court agreed with the NLRB
position, saying that unfair labor practice strikes do not lose their character when
economic motives contribute to their cause and that they remain unfair labor practice
strikes as long as employees are motivated in part by unfair labor practices.
Holders of equity securities have no specific right or guarantee of a return on their
investment.
The doctrine of equivalence will negate the effect of the doctrine of omission if the new
item performs substantially the same function as the already patented item.
As long as there is proof that the parties intended to form a contract for the sale of
goods and there is mention of the goods, quantity, and price, there is a valid offer under
the CISG.
The implied warranty of merchantability applies to sales by any seller to any buyer.
Jones LLC and Smith LLC both have 10 members and 5 managing members. Both
entities go into dissolution. The procedures for dissolution, including preferences of
members in terms of who is paid first and so on, will be identical for both companies.
The International Court of Justice primarily hears civil and criminal cases.
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 Kim is informed that she must prove her innocence before Professor Jones
must prove her guilt. Kim is being denied her substantive due process rights.
Most employers are not subject to affirmative action requirements.
In Palsgraf v. Long Island Railroad Co., the court first articulated and established the
concept of proximate cause.
Strict scrutiny requires that a state prove that it is acting to promote an important
government objective and that the proposed act is substantially related to the
government’s objective.
Obscenity regulation of commercial speech is subject to the same scrutiny as any other
government regulation of commercial speech.
In the early part of the 2000s, Wall Street analysts rated Enron’s stock risk as
‘staggeringly low.”
The common law held that property owners own the rights to the air and light for up to
100 feet above their property.
For private law to be applied, there must be a statute or ordinance enacted that provides
for the rights of the parties.
Your professor is in the middle of her lecture when the dean from a competing school
walks into class and offers her a position at his school at double her present salary.
When she asks when the position will start, he says tomorrow. Your professor looks at
the class, says good-bye, and walks out to start cleaning out her office. Your school can
sue your professor for tortious interference with an existing contractual relationship.
Alphonse has lost his job and has decided to rob a bank. He goes to the bank to observe
how it operates, and he purchases a weapon and ammunition as well as a mask. He has
planned his getaway thoroughly. He drives to the bank but is arrested on his way in
when an alert police officer sees him draw his weapon and don the mask. Among other
things, Alphonse may be charged with and convicted of conspiracy to rob the bank.
The case of Mattison v. Johnston held that competition is not a valid excuse for
breaking a restrictive covenant that was created to avoid just such practices and that
inducing someone to break a restrictive covenant is tortious conduct.
Under the Revised Uniform Limited Partnership Act, limited partners may act as
consultants and may contribute their expertise to the limited partnership.
For situations in which there is an immediate threat of hazardous materials release, the
Superfund does not require immediate removal.
Preferred stock always has voting rights.
Under the federal system used by the United States, the federal government has only
limited power to regulate individuals and businesses.
Capitalization refers to how the business will fund its operations.
Company A and company B own adjacent pieces of land. The companies own the full
bundle of rights in their respective properties. Company A digs a mine that starts on its
own property but extends, below ground, across the property line. If company A finds
minerals below company B’s surface property, it may mine and use the minerals for its
own use because it has not gone onto or disturbed company B’s property.
The United States is bound to follow the judgments of the International Court of
Justice.
All statutes have a statutory scheme, but not all statutes have a legislative history.
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 Sherman Act does not prevent an entity from becoming a monopoly.
The most common way for commercial real estate to be transferred is by inheritance.
Stan and Frank have started a general partnership. Stan has contributed 95 percent of
the start-up capital and has the business experience and contacts, while Frank’s primary
contribution is the labor necessary to operate the business. Management decisions are
jointly made. At the end of the year, the business has shown a $100,000 profit. Stan and
Frank have no formal written partnership agreement.
A. Stan is entitled to $95,000, and Frank gets $5,000.
B. The RUPA mandates that each get $50,000.
C. The RUPA mandates that Frank be paid a fair amount for his labor contribution and
the remaining profits be split with 95 percent going to Stan and 5 percent going to
Frank.
D. The RUPA mandates that Frank be paid a fair amount for his labor contribution and
the remaining profits be split equally between Stan and Frank.
In Raffles v. Wichelhaus, the court refused to enforce the contract for a boatload of
cotton, shipped to but refused by Wichelhaus, because:
A. the parties made a mutual mistake with regard to which ship named Peerless the
cotton was to be shipped on and the two ships sailed in different months.
B. the parties made a mutual mistake with regard to the quality of the cotton as each
ship carried different grades of cotton.
C. despite there being two ships named Peerless sailing on different dates, the contract
was oral and violated the statute of frauds.
D. Raffles knew that there were two ships named Peerless but failed to notify
Wichelhaus, thus committing a fraudulent misrepresentation due to the withholding of a
material fact.
Jennifer and Angela are both broke. They have sold most of their possessions, and
neither can find a job. One evening they decide to rob a bank. They agree that Jennifer
will enter the bank pretending to have a bomb strapped to her chest and Angela will
drive the getaway car. The next morning they drive to the bank, and while they are
waiting for it to open, they see a church next door. Hoping for divine help while
committing the robbery, they step into the church to pray. Suddenly realizing the error
of their ways, they abandon their plans and sign up to become nuns.
A. They have committed no crime because they abandoned the plan.
B. They are guilty of attempted robbery by driving to the bank.
C. They are guilty of a crime only if the bomb was real and not a threat.
D. They are guilty of conspiracy.
Whether a dividend is paid depends on:
A. the officers agreeing to pay the dividend.
B. the board of directors agreeing to pay the dividend.
C. the shareholders voting to award themselves the dividend.
D. the applicable state law, which mandates whether dividends must be paid.
The reorganization plan is unique to what type of bankruptcy filing?
A. Chapter 7
B. Chapter 11
C. Chapter 12
D. Chapter 13
With regard to federal question jurisdiction:
A. the case may be filed in either state or federal court.
B. the case may be filed only in state court if the controversy is $75,000 or more.
C. the case may be filed only in federal court if the controversy is $75,000 or more.
D. the case may be filed only in federal court and the amount in controversy is
irrelevant.
Your school’s police/security force requires that all officers be over 6 feet and over 200
pounds. This requirement creates a:
A. disparate treatment regarding men.
B. disparate impact regarding men.
C. disparate treatment regarding women.
D. disparate impact regarding women.
Courts apply the ________ analysis to determine the classification of an agent.
A. consistency-over-form
B. fundamentals-over-style
C. substance-over-form
D. classification-over-mode
The Labor Management Relations Act gives the president of the United States the right
to suspend a strike for up to ________ in times of national emergency.
A. 80 days
B. 90 days
C. 120 days
D. 180 days
Which of the following is intellectual or intangible property?
A. oxygen
B. copyrights and patents
C. a car
D. a tree
Normally, the buyer’s offer in a commercial transaction takes the form of:
A. a personal letter.
B. a purchase order.
C. an acknowledgment form.
D. a phone call with the parties directly speaking with each other.
Which businesses typically need a personal guaranty in order to receive a loan?
A. large businesses
B. small businesses
C. almost all businesses
D. no businesses (Businesses do not need personal guaranties.)
Principals generally have no personal liability for the business entity’s debts regarding:
A. limited partnerships.
B. limited liability partnerships.
C. corporations.
D. limited liability companies.
Which of the following situations will create diversity jurisdiction?
A. New York sues Virginia to stop the sale of firearms to New York residents.
B. April, a Delaware resident, is a student at the state university in Delaware and sues
for $1 million after she was molested on campus due to lack of appropriate security.
C. April, a Delaware resident, is a student at an out-of-state university and sues the
school for a $50,000 tuition refund when she must leave for a semester for a personal
family emergency and the school refuses a refund or credit.
D. April, a Delaware resident, sues Mike, a New York resident driving in Delaware, for
$80,000 when he rear-ends her while she’s riding her bicycle and severely injures her.
Protection of employee medical information is addressed by the:
A. Health Insurance Portability and Accountability Act.
B. Consolidated Omnibus Budget Reconciliation Act.
C. Social Security Act.
D. Health Care and Education Reconciliation Act.
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.
The Truth in Lending Act covers creditors that:
A. regularly engage in extending credit for goods and services.
B. occasionally extend credit for goods and services.
C. extend credit for real estate.
D. lend money to their relatives.
Penny is renting an apartment from Albert. Every time Penny flushes the toilet, the
toilet overflows and she must clean and mop the floor of her bathroom. She has
complained numerous times, but Albert will not fix the problem. Albert is breaching
Penny’s right to:
A. habitability.
B. quiet enjoyment.
C. possession.
D. fair use.
Arthur Andersen was:
A. Enron’s largest customer.
B. Enron’s largest supplier.
C. Enron’s auditing firm.
D. Enron’s largest competitor.
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.
The National Conference of Commissioners on Uniform State Laws (NCCUSL) was
formed by the ________ for the purpose of establishing uniform standards in areas of
law where national interests would be achieved through the use of uniform laws.
A. Congress
B. American Bar Association
C. American Legal Institute
D. National Conference of Governors
The most commonly used debt instrument is:
A. a debenture.
B. a bond.
C. common stock.
D. a promissory note.
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. The court 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 it is at fault for not doing so.
D. third parties may never enforce an agreement that the principal has not authorized
and signed.
The Supreme Court established guidelines for lower courts on 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
In which of the following situations is a court most likely to find substantial
performance?
A. KM Corporation orders 500 boxes of copy paper from MK supply, but MK can
deliver only 450 boxes.
B. Young orders a set of four specially made chrome rims for her car, but the supplier
can deliver only three.
C. Olivia orders 3 gallons of paint for the exterior of her house, based on square
footage covered and needed, but the paint supplier can deliver only 2 gallons.
D. April orders a fully equipped car from a dealer, but although perfect in every way,
the car delivered has an automatic transmission rather than the manual transmission that
she ordered.
An ex post facto law is:
A. a criminal law that takes effect at some specified time in the future.
B. a state criminal law that conflicts with a federal criminal law and is overruled by the
federal law.
C. a criminal law that is written to apply retroactively.
D. a criminal law that is based on federal common law.
What is the mailbox rule, and how does it apply in the following situation? Explain
whether acceptance is effective and a contract is formed.
Day 1: An antique dealer e-mails an offer to sell a highly collectible Art Nouveau glass
vase to a collector for $1,500.
Day 2: Collector receives the offer, prints out the e-mail, writes “ACCEPTED, 1 Art
Nouveau glass vase for $1,500. Collector,” and faxes Dealer the acceptance.
Day 3 (9 a.m.): Dealer’s assistant receives Collector’s fax, but Dealer is out of the store
all morning.
Day 3 (12 p.m.): Realizing he can get much more for the vase at auction, Dealer calls
Collector to revoke his offer.
Day 3 (1:30 p.m.): Collector’s acceptance fax is delivered to Dealer.
LLCs were originally created by the:
A. New York legislature.
B. California legislature.
C. Wyoming legislature.
D. Delaware legislature.
Bud calls Lou and says, “I’ll sell you my car for a thousand bucks, interested?” Lou
says, “I’ll look it up on the Internet. If the Blue Book price is close, I’ll pay you $1,000
in the morning.” At sunrise Lou shows up with $1000.
A. Bud must sell him the car because Lou accepted the evening before when he
promised to look up the car’s value.
B. Bud must sell him the car because he cannot revoke his offer after Lou accepted.
C. Bud does not have to sell the car because his promise was unclear.
D. Bud does not have to sell the car because the payment is based on past
consideration.
What must an agency do to conduct an inspection of a business without permission
from the owners?
A. An agency must obtain an administrative warrant.
B. An agency has authority under statute to conduct inspections without a warrant.
C. An agency must obtain a police officer’s permission to conduct an inspection.
D. An agency must send advance notice of the inspection.
Happy Hops Brewery Inc., has found that its business is expanding very quickly. The
decision to fire three new delivery drivers would be made by:
A. the shareholders.
B. the officers.
C. the board of directors.
D. the board of directors with the consent of the officers.
Eligible workers who take leave under the Family Medical Leave Act:
A. must be paid their regular salary and medical benefits must be continued by the
employer.
B. are not entitled to be paid their salary but the employer must continue providing
medical benefits.
C. are guaranteed their same position on their return at their same salary.
D. are not guaranteed the same position but must be offered, at a minimum, a similar
position; however, their salary pay may be adjusted if the new position is at a different
pay grade.
Bill has voluntarily organized office birthday parties for the past 10 years because he
enjoys making people happy. One day, Brenda, his boss, tells him that he’s been doing
such a great job that she’s going to pay him an extra $200 next month. However, when
Bill gets his check, it’s the same amount that it has always been. Which of the following
is correct?
A. Brenda’s promise is enforceable because it is based on a bargained-for exchange.
B. Brenda’s promise is unenforceable because it is based on past consideration.
C. Brenda’s promise is enforceable because Bill performed a service for the company
and should be paid even if it’s not part of the job description.
D. Brenda’s promise is unenforceable because the situation is governed under the
preexisting duty rule.
A contract in which each component of the contract is dependent on every other
component is called:
A. a divisible contract.
B. an entire contract.
C. a severable contract.
D. a voidable contract.
Common law jurisdictions adhere to the concept of ________, whereby a court may
strike down a piece of legislation if it violates an overriding principle of law.
Disparate treatment is analyzed using the ________ standard.
A discretionary order issued by the Supreme Court and other federal courts granting a
request to argue an appeal is called a _______.
Why is it important for agents to accurately define their role when signing contracts on
behalf of a principal?
Explain the difference between secured and unsecured creditors. What is the likelihood
of financial recovery for each?
What was the effect of the creation of the LLC on those seeking to open a new
business?
Imagine that the SEC had investigated ENRON prior to its collapse and had found
extremely serious violations of various securities statutes and regulations. What two
things might the SEC have done in the exercise of its delegated executive powers and
administrative enforcement powers?
Chapter 13 repayment plans are limited to ________ filing for bankruptcy.
Charlie and Mia have started selling T-shirts with iron-on decals and lettering. They
have no formal written agreement and simply decided to split all profits equally. Each
has contributed $1,000 to the enterprise, and since Mia will be doing all of the work,
Charlie agrees that he will be responsible for 75 percent of any losses. Charlie does call
in to make day-to-day decisions, but Mia purchases the shirts, decals, and lettering,
operates the press, and runs the store. Charlie stays home and smokes cigars and drinks
scotch. Alan purchases one of their shirts and, after wearing it all day, discovers that the
dye has run and his upper body is now blue. After bathing numerous times, he finds that
the blue dye will not wash off. Alan sues and is awarded $100,000 in damages. Charlie
claims that there was no real business entity formed and that he should not be liable.
How will the court decide?
Administrative agencies exercise their policymaking function through _____.
Annie agrees to purchase a television from Huge Buy, a merchant electronics seller. Her
agreement is that she will pick the television up on Friday at Huge Buy. On Friday
morning Huge Buy calls to verify that the television is marked with her name and is
available for pickup. Annie tells Huge Buy that she can’t come until Saturday. Friday
evening a huge storm damages the Huge Buy facility, caving in the roof and destroying
her television. Huge Buy demands payment from Annie, claiming that it tendered the
goods and if she had picked up the television on Friday as originally agreed, there
would not have been a loss. Does Annie have to pay? Why or why not.
Justice of the peace, municipal court, small-claims court, and local district courts are
generally referred to as ________ courts.
You arrive at your final exam for your law class, and as you approach the door, your
professor is standing at the door with a sign saying, “THE COST FOR TAKING THIS
TEST IS $10 PAYABLE TO ME” (the professor). Your professor is also holding a tin
cup for students to place their cash and checks into. Speaking entirely from a contract
perspective, can your professor enforce such a fee? Explain fully.
How does an assignment differ from a delegation? When are they permitted, and when
are they not permitted?
Fully explain the components of the Zippo standard as they are used to establish or
refute minimal contacts regarding out-of-state Internet company defendants.
Parties must be of proper age and mental competence to have ___________ to contract.