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Courts enforce fraudulent misrepresentation for intentional lies but will not enforce
fraudulent misrepresentation for negligent ones.
If a seller has not made a specific representation about a product, the buyer may still be
protected by an express warranty.
The primary market consists of securities sales in public markets, while the secondary
market consists of security sales in private placements.
A building manager hires a painting company to paint the common areas in the
building. The manager will supply all of the paint. This contract is a hybrid contract.
Bill has shoplifted at a local store, stealing three mobile phones. The theft is not
detected until store camera videos are examined later that afternoon. Store management
has the right to go to Bill's home and detain him until police arrive.
A limited partnership is required to have two or more limited partners.
A Chapter 11 debtor may use bankruptcy as an excuse for not performing contractual
obligations.
Corporations are afforded full First Amendment political speech protection.
Expressly false statements can result in breach-of-warranty lawsuits.
Unsecured creditors may seize any asset of the borrower once they have a debt
collection judgment.
The foundation and underlying principle of all securities regulation is disclosure.
The substantial evidence test is applied by the courts to determine whether or not the
agency's actions were lawful with regard to investigations and licensing.
Minimum contacts in a state need not be shown if an out-of-state corporation's conduct
has the reasonably foreseeable potential to cause injurious effects to a forum state
plaintiff.
Sophia stops at a coffee shop after class and orders a latte. This is an example of an
implied contract.
There is no federal requirement for businesses to disclose the presence of certain
chemicals to their community.
The Uniform Commercial Code (UCC) is law that governs contracts for the sale of
goods.
In U.S. v. Kozeny, the court of appeals found that the defendant was not guilty of
conspiracy to commit bribery because he did not have actual knowledge of the bribery
scheme.
It is possible to be in rightful possession of personal property without having actual
ownership of the property.
LLCs are pass-through entities for tax purposes; however, LLPs are taxed at the entity
level without tax liability passing to partners other than their personal salary income if
any.
The mirror image rule is not enforced under UCC standards.
Some states do not require a written management agreement regarding LLCs.
Administrative warrants are held to the same probable cause standard as criminal
warrants.
Informal rulemaking is not permitted under the Administrative Procedures Act.
While the common law recognizes commercial impracticability as a means to terminate
a contract, the UCC rejects and does not recognize commercial impracticability.
It is not possible for a total stranger with no ties to the alleged victim to commit undue
influence over another.
The Magnuson-Moss Act requires a label with warranty conditions regarding all
products that cost $10 or more.
When an adverse possession of real property occurs, title to land transfers without the
delivery of a deed from the former owner to the new owner.
Congress has no power to remove an agency head.
Ordinances will preempt state-level statutes.
In U.S. v. Lopez, the Supreme Court agreed with Congress, saying that gun possession
in schools made it more difficult for a student to obtain an education and was therefore
an interstate commerce issue.
One important aspect of a successful workers' compensation claim is that the
employer's fault, negligence, or wrongdoing does not have to be evidenced or proved
for the injured employee to be compensated.
Gina has hired Frank, an attorney, to handle her divorce. If, during face-to-face
negotiations, Frank strikes Gina's husband's attorney, Gina will be liable because Frank
was her agent employee.
Unless a contract for services calls for unique personal services, that contract cannot be
discharged by impossibility.
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
In Gonzalez v. Raich, when federal law enforcement confiscated and destroyed
medicinal marijuana plants, Raich presented each of the following arguments except:
A. the plants were cultivated and possessed within state boarders.
B. the plants did not enter the stream of commerce.
C. there are no enforcement difficulties in distinguishing between marijuana cultivated
locally and marijuana grown elsewhere.
D. the plants were for personal use, not for commercial use.
Mike asks his girlfriend Brandi if he can 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.
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 precontract agreements.
C. Written agreements may be used to change a final written contract if the final
written contract isn't exactly conforming to the precontract 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.
In Bridgestone Americas Holding Inc., v. Mayberry, the court had to determine if
Bridgestone's trade secret for a particular formula was discoverable. The court 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 proved 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.
Real estate deeds and mortgages that require a seal to be enforceable are considered:
A. quasi-contracts.
B. implied contracts.
C. informal contracts.
D. formal contracts.
The University of Dover and Dover University are bitter cross-town rivals. They
compete in everything from sports to academics. The schools, because of shrinking
enrollment, make an agreement to give all incoming students free tuition for one
semester before raising the existing rates the following semester. This action would be
considered:
A. a horizontal restraint violating the Sherman Act.
B. a vertical restraint violating the Sherman Act.
C. a tying agreement in violation of the Clayton Act.
D. price discrimination in violation of the Robinson-Patman Act.
Bankruptcy is primarily governed by:
A. federal statutes.
B. state statutes.
C. a blend of state and federal statutes.
D. administrative regulations.
Sam has contracted with Dave to purchase Dave's racing bike, with payment and
delivery of the bicycle to be in 10 days. Three days later Sam hears that Dave is going
to sell the bike to Gene in three days at a higher price. If Sam really wants the bike,
what should he do?
A. Immediately sue for specific performance.
B. Immediately seek injunctive relief.
C. Immediately sue for compensatory damages.
D. Immediately sue for consequential damages.
When the Age Discrimination in Employment Act is being applied, the substantially
younger test generally says that the younger employee must be at least ________ years
younger than the terminated employee claiming discrimination.
A. three
B. five
C. eight
D. ten
Federal court judges are:
A. selected by the president without outside confirmation.
B. nominated by the president and subject to full congressional confirmation.
C. nominated by the president and subject to Senate confirmation.
D. nominated by the President and subject to House of Representative confirmation.
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 percent
B. 25 percent
C. 30 percent
D. 35 percent
The utilitarian approach to moral philosophy was founded by:
A. Jeremy Bentham.
B. Immanuel Kant.
C. Cicero.
D. Kenneth Lay.
Mary Beth has written a novel. Copyright protection regarding her work will be for:
A. 70 years beginning from the date she began writing the novel.
B. 70 years beginning from the date that she completed the novel.
C. 70 years beginning from the date the novel is published.
D. 70 years after her death.
From first to last, which of the following trial stages are in the correct order?
A. pretrial conference; pleadings; discovery; deliberations
B. pleadings; discovery; deliberations; jury selection
C. discovery; jury selection; deliberations; charging the jury
D. pleadings; discovery; pretrial conference; jury selection
Management is permitted to voice objections to the formation of a union under the:
A. National Labor Relations Act.
B. Labor Management Relations Act.
C. Labor-Management Reporting and Disclosure Act.
D. Fair Labor Practices Act.
Trish makes $30,000 a year. The median income for her state is $28,000. She owes over
$50,000 in various debts and is considering ways to address her situation. Which of the
following is not one of her options to fix her debt issues?
A. attempt to negotiate a workout with her creditors
B. pay off her loans
C. Chapter 7 bankruptcy
D. Chapter 13 bankruptcy
Mike's Bikes is a bicycle sales and repair shop in a small city. It sells new and used
bikes with a narrow profit margin and does repairs at minimal costs. Frequently, if a
child comes into the shop with a broken part or a flat tire, Mike's makes the repair for
free if the child has no money. Mike's 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, 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
The exchange of e-mail between companies in different states can create personal
jurisdiction in a lawsuit when:
A. the defendant maintains an office in the forum state.
B. the defendant, at a minimum, has employees that enter the forum state to conduct
business.
C. the e-mail is an integral part of an ongoing business relationship even if no offices
or personnel are within the forum state.
D. the e-mail specifically references a voluntary intention by the parties to submit to
the forum state's personal jurisdiction.
The legislation that established a process for federal agencies for making decisions that
may reasonably impact the environment is called the:
A. Environmental Protection Act.
B. National Environmental Policy Act.
C. Environmental Decision Impact Act.
D. Clean Air Act.
Which of the following is not a purpose of bankruptcy?
A. offer a fresh start to the debtor
B. punish the debtor
C. create a way for creditors to recover the debt
D. prevent creditors from gaining an unfair advantage over one another
Jose is from Argentina. He works for a railroad business that is controlled by the
government. Big Container Shipping Company is considering sending its South
American cargo on that railroad. Should Big Container Shipping be concerned with the
Foreign Corrupt Practices Act when they take Jose out to an expensive dinner?
A. yes, because Jose is a foreign national
B. yes, because Jose works for a government-controlled business
C. no, because Jose does not work directly for the government administration but,
instead, works for a business
D. no, because it is only dinner
If a piece of land has long-term contamination, what is the EPA required to do first
under the Superfund?
A. determine the best way to decontaminate the site
B. access the toxicity of the site
C. allocate liability for contamination
D. determine whether the site should be placed on the National Priorities List
Bob, Carol, and Ted have decided to go into business as a limited partnership importing
and selling exotic spices. Bob and Carol will manage the business, and Ted will have no
role in the day-to-day operations. Bob and Carol have each invested $500,000, and Ted
has contributed the building and land that the business will be operated from. Alice, a
customer, contracts a rare disease from a contaminated spice sold by the company and
sues. Alice is awarded a judgment for $5 million. After she exhausts the assets of the
partnership, having the property and building sold and seizing all other property, $3
million remains unpaid.
A. Bob, Carol, and Ted each owe $1 million, and Alice must sue each for his or her
part.
B. Bob, Carol, and Ted each owe $3 million jointly and severally, so Alice may sue
one, two, or all three for the $3 million balance.
C. Bob and Carol each owe $1.5 million, and Alice must sue each for his or her part;
Ted has no additional liability.
D. Bob and Carol each owe $3 million jointly and severally, so Alice may sue one or
both of them; Ted has no additional liability.
In Forestal Guarani S. A. v. Daros International Inc., Forestal was a maker of wood
finger joints based in Argentina. Daros, a U.S. business, orally agreed to sell Forestal's
finger joints to third parties in the United States. A dispute arose over the amount Daros
owed for the product that Forestal delivered. Argentina, like the United States, had
ratified the U.N. Convention on Contracts for the International Sale of Goods (CISG) to
govern contracts between merchants for the sale of goods. Unlike the United States,
Argentina had made an Article 96 declaration, which meant the country required that
contracts governed by the CISG be in writing. When Forestal sued Daros for the money
it claimed Daros owed, Daros argued that the claim was precluded because the contract
was not in writing. The appeals court held that:
A. when one country has adopted an Article 96 declaration and the other country has
not, courts should consider the past conduct of the parties in determining whether the
parties had or did not have a contract relationship.
B. when one country has adopted an Article 96 declaration and the other country has
not, courts should not look to the past conduct of the parties in determining whether the
parties had or did not have a contract relationship.
C. Argentina's declaration was sufficient to bar Forestal's claim.
D. a contract existed and Daros owed Forestal the amount it claimed.
After numerous threats from the federal government to enact laws and taxes to recoup
bonus money paid to executive employees at AIG, of the reported $165 million paid
out, how much was returned by those receiving bonuses?
A. approximately $50 million
B. approximately $75 million
C. approximately $100 million
D. approximately $120 million
The United Nations Convention on Contracts for the International Sale of Goods
(UNCISG) differs from the UCC in that under UNCISG:
A. acceptances are effective when mailed.
B. acceptances are effective when received.
C. written contracts are required for sales contracts of $1,000 or more rather than $500
or more.
D. industry practices and past dealings between parties are not recognized.
Because it is not a taxable entity, an LLP:
A. files an information tax return.
B. does not need to file a tax return.
C. needs to file only a federal tax return.
D. needs to file only a state and local tax return.
Harry seeks to implement a policy of enhanced values management in his office. Which
of the following is not a direct outcome of values management in the workplace that
Harry can expect?
A. Managing values in Harry's workplace will legitimize managerial actions.
B. Managing values in Harry's workplace will strengthen the cohesiveness and balance
of his organization's culture.
C. Managing values in Harry's workplace will enhance profit and profitability.
D. Managing values in Harry's workplace will cultivate greater sensitivity to the impact
of the company's values and messages.
The reputed mastermind of the Enron business model was:
A. Kenneth Lay, founder and chief executive officer.
B. Jeffrey Skilling, chief operating officer.
C. Andrew Fastow, chief financial officer.
D. Rick Clausey, chief accounting officer.
Mike is a high school dropout employed as a counter worker at a Kentucky Fried
Chicken (KFC) outlet in Georgia. He has been voted the employee of the month and has
been awarded a trip to Louisville, Kentucky, to visit the KFC headquarters. While there,
he notices an open wall safe, and when he looks inside, he discovers the Colonel's
secret recipe of 23 herbs and spices. He quickly makes a copy and returns the original
to the safe. Once he arrives home, he contacts a number of local fried-chicken
restaurants and offers to sell them the recipe. When KFC finds out what he's doing, the
company immediately sues him, but it discovers that there are no applicable trade secret
statutes. What effect does the failure of an applicable statute have, and what, if
anything, can KFC do?
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.
Professor Patty is very distraught that three students in her class cannot afford to buy
the 42-chapter book for the course. The book is used for two semesters, although not all
students take the second semester. She finally tells the three students that she will make
copies of the first 21 chapters for them, at no charge. Professor Patty makes the copies
and gives each chapter to the students prior to her coverage of the relevant chapter in
class. If Professor Patty is sued for copyright infringement:
A. she wins because the fair use doctrine permits use of the work for educational
purposes.
B. she wins because she is not copying the entire book but only 21 chapters of it and is
not making a profit.
C. she loses because by making and distributing the chapters, she is diminishing the
value of the book on the national market.
D. she loses because she is copying whole sections and a significant portion of the
book.
Which of the following requires a written contract to be enforceable?
A. Jon rents a luxury yacht for a month at a cost of $10,000.
B. Lindsay borrows $5,000 from Robert to buy a car.
C. Stanley's pit bull has just had a litter, and he agrees to sell you a puppy for $500
when the pups are weaned from their mother.
D. Philip agrees to paint your house for $500.
Which of the following is not a primary source of international law?
A. treaties
B. customs
C. U.N. statutes
D. judicial decisions
How does an agency regulate through licensing?
________ are recognized as binding between two parties even though no specific
statute or regulation provides for the rights of the parties.
What process will the courts use to resolve a dispute between principals of a limited
partnership in the absence of a written partnership agreement?
An LLC member with ownership sufficient to decide or veto internal operational
matters is called a ________ member.
Your school is embarking on a new advertising campaign and has started using the
tagline "The Rolls-Royce of Higher Education." Assuming that Rolls-Royce is a
registered trademark, can your school be liable for trademark infringement or trademark
dilution?
How do compensatory damages and consequential damages differ?
Why is it so important that the law of contracts be ordered and strong, particularly with
regard to the business world?
The ________ Act is the most important wildlife protection legislation.
If a seller offers a written ________ warranty, the consumer transaction is subject to the
Magnuson-Moss Act.
The Americans with Disabilities Act does not require an employer to provide
accommodations that constitute a(an) ________ on the employer.
Judicial opinions are also known as the ________ of the case.
Burt has come across an excellent recipe for a new beer, and he and 20 college friends
decide to go into business. They form a corporation named New Brew Inc., issuing
stock only to the 21 of them and not selling any stock outside 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?
A party who is injured by another's negligence but is found to have committed
comparative negligence will recover nothing.
Give four examples of nondischargeable debt in bankruptcy.
Public international law primarily addresses relationships between countries, business
entities, and international organizations.
