A process or procedure is not eligible for copyright protection.
Company executives taking foreign officials to dinner is not bribery under the Foreign
Corrupt Practices Act.
Rockefeller’s Standard Oil Trust is an example of a company that participated in
antitrust behavior.
Trish is a partner in an LLP, and the partnership is having a cash flow problem. To
alleviate the problem, the partnership has initiated a capital call for each partner to
contribute an additional $25,000 to the business. If Trish cannot come up with the
necessary funds, she may be forced to sell her interest in the partnership.
If a limited partner actively participates in day-to-day management of the business, he
or she may forfeit limited partner status and lose limited liability for debts and
liabilities.
Jon owns two cars. He says to Rachel, “I’ll sell you either car for $8,000.” This is a
valid offer.
In a fully disclosed agency situation, the agent is not contractually liable to the third
party.
A market-based approach does not give a business options about how to comply with
pollution standards.
When completing the certificate of organization, the organizers of an LLC are not
required to disclose how the business is to be managed.
Annuities issued by insurance companies are exempt from full SEC registration
requirements.
Federal securities laws can, depending on the language and circumstances, classify a
business plan as a form of securities offering.
One disadvantage of a sole proprietorship business entity is that it is restricted to a
single location and cannot expand.
Advertising coffee as “the best in the world” is prohibited by UCC rules.
The doctrine of negligent hiring applies to independent contractors only when the
contractor is hired to do a hazardous or inherently dangerous job.
In a sale between Mark Merchant and Norm Nonmerchant the CISG rules for the sale
of goods are applicable.
States were not subject to Bill of Rights restrictions until after the Civil War.
Beth has a contract with Annie in which Annie is to deliver 1,000 hand-decorated
beverage holders in 60 days. When Beth calls the Psychic Hotline for her weekly
reading, the psychic informs her that she has entered into a contract and the other party
will not perform all the conditions and specifications in accordance with the agreement.
Beth may sue for an anticipatory repudiation.
Burt has contracted with Mel to put a concrete driveway on Mel’s property. If Burt
delegates the duty of laying the driveway to Chuck and Chuck does an unacceptable
job, Mel may sue Burt for damages.
One of the major reasons that Enron failed was that it did not have an articulated code
of ethics to guide the company.
The certificate of organization may restrict membership in an LLC to only those
possessing a professional license in a named field.
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.
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.
What is the standard used to find violations of the Foreign Corrupt Practices Act
(FCPA)?
A. a standard of good faith and fair dealing
B. a standard of reasonable care
C. a standard under which no intent is necessary
D. a knowing standard
Max has contracted with Lew to have his house painted. The contract specifically stated
that the job was to be completed by August 25. Lew completes the job on August 26.
Max has suffered no loss due to the delay. The job was otherwise done exactly to all
contract requirements and specifications. If Max sues Lew for breach of contract due to
the missed completion date and if the courts were to award damages, what type of
damages would most likely be awarded?
A. punitive damages
B. consequential damages
C. restitution
D. nominal damages
Josh’s Futbol World orders 500 U.S.A. replica soccer jerseys from Victory Apparel, a
sports apparel manufacturer. The jerseys are to be delivered to Josh’s place of business.
When the shipment arrives, Josh’s discovers that it has received 500 pairs of U.S.A.
replica shorts but no jerseys. Before Josh’s can notify Victory and return the shorts, a
fire destroys Josh’s building along with the shipment of shorts.
A. This was a destination contract, and since the shorts were tendered to the
destination, Josh’s bears risk of loss until they can be returned.
B. This was a destination contract, and the shorts were nonconforming goods, so
Victory did not complete performance and retains risk of loss.
C. This was a shipment contract, and Josh’s assumed risk of loss when Victory
delivered the goods to the carrier.
D. This was a shipment contract, and Victory retained risk of loss until the goods were
tendered to Josh’s at Josh’s establishment.
The No Electronic Theft Act primarily addressed protection regarding:
A. copyrights.
B. patents.
C. trademarks.
D. trade secrets.
April hires Christine to landscape her yard. They agree on a price, agree on the types
and colors of the plantings, and agree on the start date. When Christine shows up on the
agreed date, April refuses to allow her to begin work. Christine sues April for breach of
contract. At trial, April produces the contract, which states that the plants were to be a
mixture of red, white, and blue and were to be between 12 inches and 18 inches in
height. She then produces pictures to show that Christine had arrived with only purple
and yellow plants that were 6 to 8 inches high. This type of evidence produced by April
would be called:
A. inculpatory evidence.
B. summary evidence.
C. exculpatory evidence.
D. direct evidence.
In U.S. v. Microsoft, the appellate court reversed the finding of the district court that:
A. Microsoft fundamentally employed illegal anticompetitive means to maintain and
further its monopoly of the operating system market.
B. Microsoft should be broken apart.
C. Microsoft business practices were a per se violation of the Sherman Act.
D. Microsoft did not employ illegal anticompetitive means to maintain and further its
monopoly of the operating system market.
Which of the following agreements applies to copyrights?
A. Madrid Protocol
B. U.N. Intellectual Property Accord
C. Berne Convention
D. Paris Convention
In Texaco Inc. v. Dagher et al., two oil refiners and gas suppliers, Texaco and Shell Oil,
entered into a joint venture called Equilon to consolidate their operations in the western
United States. Historically, Texaco and Shell were competitors, but for their joint
venture they shared expenses and profits equally. The products produced by Equilon
were sold under the brand names Texaco and Shell at a mutually agreed-upon price.
Texaco and Shell retailers brought a class action lawsuit against the two companies,
claiming there was a per se violation of the Sherman Antitrust Act because of the lack
of price competition. The court held that:
A. there was a per se violation because the joint venture was plainly anticompetitive.
B. there was a per se violation because oil companies are automatically held to this
standard.
C. the rule of reason standard should apply because a market analysis was relevant.
D. the rule of reason standard should apply because it is a joint venture and not a
meeting of the minds.
Joshua is a highly accomplished soccer player and a successful coach. He is often hired
by other coaches to run soccer clinics and soccer camps for their teams. If Joshua
decides to incorporate and sell stock to finance the corporation, the area of law that he
would need to be aware of with regard to the stock sales would be:
A. securities law.
B. intellectual property law.
C. contract law.
D. antitrust law.
Privately held corporations may issue a ________ in lieu of conducting a formal annual
meeting.
A. testament of meeting occurrence
B. unanimous consent resolution
C. statement of meeting substitution
D. proof of alternative meeting
Jurisprudence is defined as:
A. adjudication of lawsuits.
B. the enactment of laws by a government body.
C. the science and philosophy of law.
D. the duties and obligations owed by a citizen.
Mike has been hired by a publishing company to write a companion book for a
particular text sold to college students. In 2010 Mike completes the companion book,
and he signs over his copyright to the publisher. The publisher actually publishes the
book in 2013. When will the publisher’s copyright run out and expire?
A. 2080
B. 2083
C. 2105
D. 2108
When a party to a contract is of proper age and mental competence, it is said that he or
she has:
A. capacity to contract.
B. legal purpose.
C. mutual assent.
D. consideration.
Which of the following is not an example of deceptive advertising?
A. claiming that for the price, the item is the best money can buy
B. artificially inflating the original retail price of an item so that when it is featured as a
sale item, it looks more marked down than it actually is
C. using a term like “clearance price” when the item is not being sold at a reduced rate
D. misrepresenting the prices of competitors
In a delegation situation, the nondelegating party is called the:
A. obligee.
B. delegate.
C. delegator.
D. obligor.
The Family and Medical Leave Act provides that eligible employees be permitted:
A. 6 weeks of unpaid leave during any 12-month period.
B. 6 weeks of paid leave during any 12-month period.
C. 12 weeks of unpaid leave during any 12-month period.
D. 12 weeks of paid leave during any 12-month period.
Which of the following debts may be discharged in a bankruptcy?
A. taxes
B. child support
C. a new auto purchased 90 days before filing
D. punitive damages
McDonald has invented a machine that harvests corn in the field, automatically shucks
the corn from the husk, and peels the kernels from the cob, separating everything for
easy disposal or further use. Assuming that all requirements are met for a patent, the
length of his patent protection will be:
A. 14 years from the completion of the invention.
B. 14 years from the filing of the application with the U.S. Patent and Trade Office.
C. 20 years from the completion of the invention.
D. 20 years from the filing of the application with the U.S. Patent and Trade Office.
Josh is negotiating the sale of his car with Jonathan. Jonathan asks if the car has ever
been in an accident, and Josh replies, “No, it has never been in an accident.” In fact, the
car was nearly totaled the year before when Sheila, Josh’s girlfriend, was driving Josh’s
car, hit a wet spot, and skidded into a pole. She had the car repaired without telling him
about the accident. Josh has committed:
A. fraudulent misrepresentation.
B. innocent misrepresentation.
C. an unconscionable act.
D. no misrepresentation because he thought he was being truthful and didn’t intend to
deceive Jonathan.
The Worker Adjustment and Retraining Notification Act applies to situations in which
entire plants are to be shut down or a layoff is to occur. WARN applies to:
A. all employers of any size business.
B. employers of 50 or more full-time workers with a layoff of 20 or more to occur.
C. employers of 75 or more full-time workers with a layoff of 35 or more to occur.
D. employers of 100 or more full-time workers with a layoff of 50 or more to occur.
Shareholders generally have the power and right to do each of the following except:
A. veto a board decision to issue more capital stock.
B. veto a board decision to pursue venture capital financing.
C. approve structural changes in the corporation through the amending of the articles of
incorporation.
D. elect and remove officers.
Maria is the CFO of a company being investigated by the SEC for various alleged
violations. Each of the following would constitute an obstruction of justice except:
A. ordering her secretary to lie if she is questioned.
B. refusing to answer questions and invoking the Fifth Amendment.
C. shredding her personal calendar and appointment book.
D. changing some figures on documents used to support filed financial statements.
Mighty Motors is a major automobile manufacturer with assembly plants in small
towns throughout the United States. Mighty Motors is suffering losses in the current
economy and has decided to stop manufacturing the Mighty Brute, an SUV with
horrible gas mileage that simply isn’t selling. The company will also be closing the only
plant that is exclusively dedicated to manufacturing the Brute. This particular assembly
plant is the primary employer in the town that it is located in. Who, among the
following, would be considered a secondary stakeholder in this decision?
A. Ed, who has been working at the factory for ten years
B. See Through Glass, which manufactures the windshields and side windows
exclusively used in the Brute
C. Mike, a town resident who teaches elementary school and drives a Hyundai Sonata
D. Tony, who runs a pizza shop that many of the plant employees go to for lunch and
sometimes dinner
Modern Corporation operates a steel mill. It has never contributed anything to the local
community, and it knowingly pollutes both the air and the river that runs by its mill.
The corporation’s reasoning is that the cost of installing pollution control devices would
diminish its profits, and it doesn’t support the community because it provides jobs and
doesn’t think it owes anything else to the citizens in its area. Donating to the community
would also diminish profits. Which theory of corporate social responsibility is Modern
Corporation exhibiting?
A. the narrow view, or invisible hand theory
B. the moderate view, or government’s hand theory
C. the hybrid view, or citizen’s hand theory
D. the broad view, or management’s hand theory
Robert is a wealthy businessman who wishes to purchase a particular property.
Realizing that the price might become inflated if his name is made known, he asks Faye
to negotiate the purchase of the property on his behalf. Faye is the general manager of
Robert’s east coast operations. Faye reports directly to Robert and is supervised in all
respects. Faye is told to tell Philip, the property owner, that she represents someone, but
she’s told not to specify who she works for. The agency would be described as:
A. partially disclosed.
B. disclosed.
C. undisclosed.
D. indemnified.
What is the purpose of the Paris Convention?
A. extend national patent rights to foreign inventors who have patents in their home
country
B. place limits on the items that are able to be protected under trademark laws
C. set requirements for filing for copyrights in foreign jurisdictions
D. standardize requirements for filing for trademarks around the world
Mike is walking through a parking lot and finds Kathy lying unconscious. He puts her
in his car and takes her to the hospital. The hospital saves her life, and when she
becomes conscious, it presents her with a bill.
A. Kathy has to pay based on a unilateral contract.
B. Kathy has to pay based on an implied contract.
C. Kathy has to pay based on a quasi-contract.
D. Mike has to pay because he brought her to the hospital.
Which option does not attempt to repay and discharge debt?
A. out of existence
B. workout
C. Chapter 7 bankruptcy
D. Chapter 11 bankruptcy
Howard has fulfilled his residential lease and has moved out of his apartment. The
landlord may hold Howard’s security deposit for between ________, depending on the
state.
A. 30 and 60 days
B. 60 and 90 days
C. 15 and 45 days
D. 15 and 60 days
Countries that follow the common law system include the United States, Canada,
Australia, and most of Latin America.
Which of the following is not typically part of a security agreement?
A. description of the collateral
B. obligations of the debtor
C. remedies available to the creditor
D. instructions on perfection
Protections for the citizenry from unlawful or reprehensive acts by the government are
contained primarily in:
A. the Preamble to the Constitution.
B. Article I of the Constitution.
C. Article V of the Constitution.
D. the Bill of Rights.
What is the difference between ethics and morals?
Being blameworthy in criminal law is called _____.
Some agencies monitor compliance with regulations by conducting ________ of a
business.
Why does Xerox Corporation take out full-page ads in national publications stressing
that it is improper to use the word Xeroxing when referring to making a photocopy?
What is meant by the expression “double taxation” of corporations?
What is puffery? Provide an example.
Define the negligence defenses of contributory negligence and comparative negligence,
and explain how they differ.
The illegal act that constitutes the crime and results in criminal liability is called the
_____.
What are the four defenses available to an employer under the Equal Pay Act that will
permit different levels of pay between men and women?
Jon visits an upscale restaurant and allows the valet to take and park his car. The
restaurant becomes the ________ of the car in this bailment relationship.
Stop Now LLP manufactures brake linings and sells its product to repair and
maintenance shops for use as replacements for worn brakes. Stop Now approaches
Coastal Garage and offers Coastal a very good price on the brake linings. Coastal is a
nationwide company, and the order would be very large. The management at Coastal is
very interested in dealing with Stop Now but is concerned with the LLP’s limited
liability protections for Stop Now’s partners. What could Coastal do to protect itself
from the LLP’s limited liability protections?
The Fair Labor Standards Act requires that all workers be paid a minimum wage.
The Federal Arbitration Act provides four grounds by which a court may set aside the
award of an arbitrator. Name them.
________ international law addresses relations between individual countries and
international organizations.
Define and explain the concepts of permanence and preemption as they apply regarding
the U.S. Constitution.