An equipment lease that serves the purpose of financing is known as a(n) __________
lease.
a. finance
b. temporary
c. lending
d. debtor’s
Answer:
If a product valuable to society is unavoidably unsafe, the __________ determines
whether the dangerous product is also defective.
a. adequacy of the warning label
b. obviousness of the risk
c. care in design and manufacture
d. extent of the danger
Answer:
Until a developer obtains a(n)__________ right, meaning a fully guaranteed right, to
develop a property, the regulation governing that property may be changed.
a. vested
b. acknowledged
c. known
d. discretionary
Answer:
Under which of the following may a parent corporation be held liable under CERCLA
for facilities ostensibly operated by a subsidiary?
a. As an owner of a subsidiary whose corporate veil has been pierced
b. As an operator of the facility
c. Both as an owner of a subsidiary whose corporate veil has been pierced and as an
operator of the facility
d. Under no circumstances may a parent corporation be held liable
Answer:
Which of the following allows the filing of a lawsuit previously barred by the running
of the statute of limitations?
a. A statute of repose
b. A recommence statute
c. A revival statute
d. None of these choices because any such law would be unconstitutional.
Answer:
Under federal law there are no caps on either compensatory or punitive damages when
sexual discrimination is involved.
a. True
b. False
Answer:
Under the __________ doctrine, under certain circumstances, a person may infringe the
copyright owner’s exclusive rights without liability in the course of such activities as
news reporting, education, scholarship, or research.
a. fair use
b. education use
c. new use
d. critical use
Answer:
The courts that have considered click-wrap licenses have generally found that the
licenses are:
a. enforceable.
b. enforceable only for software costing $100 or less.
c. enforceable only for software costing $100 or less and that is designed for business,
not consumer use.
d. unenforceable.
Answer:
Under traditional common law, the acceptance must be the __________ of the offer.
a. essential terms
b. consideration
c. understanding
d. mirror image
Answer:
Which of the following is generally true regarding front pay in discrimination cases?
a. It is a substitute for back pay.
b. It is equal to one-half the back pay amount.
c. It is a substitute for back pay and is generally awarded in addition to reinstatement.
d. It is equal to what the employee would have received had he or she not been
discharged and is generally awarded when reinstatement is inappropriate.
Answer:
In a(n)__________ loan, more than one lender enters into concurrent direct obligations
with the borrower to make the loan.
a. participation
b. term sheet
c. syndicated
d. illegal
Answer:
Fact Pattern 11-2
Professor Peter enjoys using a small manual containing information on employment
laws in his business law class. The manual costs $100 and is published by We Publish
book publishers. Because Professor Peter wants to save his students some money, he
copies the manual and has ABC Copy Store make copies for students. Students are
required to purchase the copies directly from the copy store. Professor Prudence, who
dislikes Peter because she believes he blocked her tenure application, hears about the
deal and notifies the publishing company. The publishing company demands that the
process be stopped and prepares to seek damages.
Refer to Fact Pattern 11-2. Can Professor Peter be found guilty of copyright
infringement?
a. No, he was engaged in fair use because of his involvement in education.
b. No, because he did not do the actual copying.
c. No, because he did not make a profit.
d. It is likely that he would be found guilty of copyright infringement particularly since
he arranged for copying of the entire manual, not limited sections.
Answer:
Exports are controlled by means of export:
a. duties.
b. licenses.
c. subsidies.
d. customs valuations.
Answer:
Fact Pattern 5-1
Candy owns a nail and hair salon. She reaches an agreement with Todd, an independent
contractor, allowing him to do nails in her salon three days per week. Todd has a sign
on his desk informing his customers that he is an independent contractor of the shop.
After working for a month, Todd asks Candy if she has been paying appropriate social
security taxes for him. He also informs Candy that Phyllis, a customer, is preparing to
sue both Todd and Candy based upon a nasty nail fungus she developed after having her
nails done by Todd.
Refer to Fact Pattern 5-1. Which of the following is true regarding legal responsibility
to Phyllis assuming negligence on the part of Todd can be established?
a. Both Candy and Todd are responsible to Phyllis with Candy being primarily
responsible meaning that if Todd pays then he can recover any payments from Candy.
b. Both Candy and Todd are responsible to Phyllis with Todd being primarily
responsible meaning that if Candy pays then she can recover any payments from Todd.
c. Candy owes 50% of any payments due Phyllis, and Todd owes 50%; but neither
Candy nor Todd can recover against the other.
d. Candy does not owe Phyllis any amounts.
Answer:
Environmental __________ is a systematic and ongoing process for determining
whether property contains or emits hazardous substances and whether a company is in
compliance with environmental laws
a. awareness
b. justice
c. due diligence
d. risk management
Answer:
In 2013, the average CEO of a company in the Standard and Poor’s 500 Index took
home more than _____ times as much as the average worker.
a. 50
b. 150
c. 325
d. 500
Answer:
An S corporation would likely be used as the corporate form for a business intending to
raise money from venture capitalists.
a. True
b. False
Answer:
An agent who refuses to follow legal instructions of a principal has breached the duty of
care.
a. True
b. False
Answer:
Section 16(b) of the 1934 Act governs __________ by officers, directors, and
greater-than-10% shareholders of equity securities of a public company.
a. fraud
b. deceptive practices
c. short-swing profits
d. unorthodox transactions
Answer:
What is the major provision of the Civil Rights Act of 1866 (Section 1981)?
a. It prohibits racial discrimination by employers of over 50 employees in the making
and enforcement of contracts, including employment contracts.
b. It prohibits racial discrimination by employers of any size in the making and
enforcement of contracts, excluding employment contracts.
c. It prohibits racial discrimination by employers of any size in the making and
enforcement of contracts, including employment contracts.
d. It prohibits racial discrimination by employers of over 25 employees in the making
and enforcement of contracts, including employment contracts.
Answer:
An __________ occurs if a principal approves or accepts the benefits of the actions of
an otherwise unauthorized agent.
a. agency by ratification
b. agency by estoppel
c. agency by independent action
d. agency by intervention
Answer:
A(n) __________ is an agreement by a lender to replace a construction loan with a
permanent loan, usually after certain conditions, such as the timely completion of the
project, have been met.
a. substitution agreement
b. interim agreement
c. development commitment
d. take-out commitment
Answer:
One of the major differences between U.S. and European Union competition laws is the
European Union’s treatment of horizontal agreements.
a. True
b. False
Answer:
The transfer of technical data to a foreign citizen while present in the U.S. is generally
not considered to be an export.
a. True
b. False
Answer:
Which of the following is not a part of the measure of compensatory damages?
a. The cost to repair or replace an item.
b. The decrease in market value of an item.
c. Compensation for medical expenses.
d. Damages to deter others from engaging in similar conduct.
Answer:
Which of the following is NOT typically true of a state workers’ compensation statute?
a. The system is no-fault.
b. The system is based on the principle that the risks of injury in the workplace should
be borne by the state.
c. An employee is entitled to benefits regardless of the level of safety in the work
environment.
d. An employee is entitled to benefits regardless of the degree to which the employee’s
carelessness contributed to the incident.
Answer:
Courts will generally not defer to an agency’s construction (interpretation) of a statute,
even if it is within the agency’s area of expertise.
a. True
b. False
Answer:
Which of the following is true regarding the passing of community property upon the
death of one of the owners?
a. The community-property interest of a spouse may be separately willed upon death;
and in the absence of a will, community property passes to the other spouse.
b. The community-property interest of a spouse may be separately willed upon death;
and in the absence of a will, passes to the surviving spouse and any surviving children
in equal shares upon the death of one of the spouses.
c. The community-property interest of a spouse may not be separately willed upon
death and passes to the other spouse automatically upon the death of one of the spouses.
d. The community-property interest of a spouse may not be separately willed upon
death and passes to the surviving spouse and any surviving children in equal shares
automatically upon the death of one of the spouses.
Answer:
A counteroffer does not terminate the original offer.
a. True
b. False
Answer:
A statute of repose cuts off the right to assert a product liability action.
a. True
b. False
Answer: