A contract is __________ if its terms are unduly harsh or oppressive or unreasonably
favorable to one side.
a. substantively unconscionable
b. procedurally unconscionable
c. procedurally impracticable
d. substantively impracticable
Answer:
The Seventh Amendment grants the defendant in most criminal prosecutions the right to
the assistance of counsel.
a. True
b. False
Answer:
If the use of a product carries an obvious risk, the manufacturer will not be held liable
for injuries that result from ignoring the risk.
a. True
b. False
Answer:
A court is not bound by the Restatement’s formulation of product liability law.
a. True
b. False
Answer:
A __________ is an agreement whereby one or more creditors of a common debtor
agree to defer payment of their claims until another creditor of the same debtor is fully
paid.
a. participation loan
b. cross-collateralization
c. debt subordination
d. lien subordination
Answer:
At its core, legal astuteness is the ability of a manager to:
a. effectively communicate and solve problems with counsel.
b. prevent deceptive trade practices and piracy.
c. develop the firm’s brand and marketing strategy.
d. encourage the sale of safe products at a fair price.
Answer:
Under the doctrine of __________, the plaintiff may recover only the proportionate
amount of damages attributable to the defendant’s negligence.
a. contributory negligence
b. comparative negligence
c. contribution
d. indemnity
Answer:
Most computer-aided thefts can be prosecuted under traditional state larceny laws.
a. True
b. False
Answer:
A case involving an appeal from a decision of the Court of Federal Claims would be
heard by the Court of Appeals for the Federal Circuit.
a. True
b. False
Answer:
What does the term respondeat superior mean?
a. Let the master answer
b. Let the servant answer
c. Let the servant or master answer
d. The master was negligent
Answer:
A commitment fee is an amount a lender requires as consideration for its promise to
keep a commitment to loan available.
a. True
b. False
Answer:
In CASE 17.2 Stokely-Van Camp, Inc. v. Coca-Cola Co. (2009), the court analyzed
whether a(n) __________ for a sports drink marketed by Coca-Cola constituted a(n)
__________ in violation of the __________.
a. advertisement, false and misleading advertising, Federal Trade Commission Act
b. trade Secret, theft of intellectual property, Lanham Act
c. advertisement, false and misleading advertising, Lanham Act
d. formula, theft of intellectual property, Trade Secret Espionage Act
Answer:
B corporations have no duty to maximize shareholder value even when there is a
change of control.
a. True
b. False
Answer:
The completion of a public offering terminates the issuer’s relationship with the SEC.
a. True
b. False
Answer:
In CASE 11.1 Association for Molecular Pathology v. Myriad Genetics, Inc.(2013), the
U.S. Supreme Court held that under U.S. Patent Laws isolated DNA is:
a. not eligible for patent protection because it is naturally occurring.
b. eligible for patent protection because it is man-made.
c. eligible for patent protection because it is naturally occurring.
d. not eligible for patent protection because it is man-made.
Answer:
Promoting economic growth is one of the primary public policy objectives of laws and
regulations applicable to business.
a. True
b. False
Answer:
U.S. trade laws are enacted by the Congress pursuant to the treaty power of the U.S.
Constitution.
a. True
b. False
Answer:
The term, “Holiday Inn” has a(n) __________, because the public associates the term
with a particular provider of hotel services.
a. suggestive mark
b. service mark
c. secondary meaning
d. certification mark
Answer:
Which of the following is governed by Article 2 of the UCC?
a. A contract for sale of a commercial building
b. A contract for sale of office supplies
c. An employment contract
d. A life insurance contract
Answer:
Fact Pattern 7-2
Hester offers to sell her house to Frank for $250,000. Frank says that he would like to
think about it, and Hester says that is fine. The next day, Martha, Hester’s friend, says
that she will give Hester $240,000 for the house. Hester really likes Martha more than
Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank
walking up her driveway. She immediately opens the window and yells “I revoke the
offer on the house” before Frank says anything. Frank replies that he accepts the offer
and expects to purchase the home. Frank tells Hester that while he has not yet taken
steps to sell his own home or get a loan, he feels confident that there will be no problem
with those matters and he is a ready, willing, and able buyer.
Refer to Fact Pattern 7-2. Which of the following is true regarding the offer to Frank
assuming Hester’s revocation was ineffective?
a. The offer was probably still open the next day because a reasonable length of time
would not have expired.
b. The offer would have terminated because Frank did not provide any consideration to
leave it open.
c. By operation of law, it would have terminated at midnight on the day it was made.
d. By operation of law, it would still have been open because it would not have
terminated until midnight on the day after it was made.
Answer:
In certain cases, the duty of good faith may be subsumed within the duty of loyalty.
a. True
b. False
Answer:
Under Rule 10b-5, any use of the mails is sufficient to satisfy the interstate commerce
condition even if the mail does not leave the state.
a. True
b. False
Answer:
Written defamation is known as:
a. libel.
b. slander.
c. malicious intent.
d. invasion of privacy.
Answer:
In a __________, someone wishing to replace the board with his or her own candidates
attempts to acquire a sufficient number of shareholder votes to do so through limited
written powers of attorney entitling the holder to vote the shares owned by the person
giving the power of attorney.
a. hostile takeover
b. proxy contest
c. poison pill
d. greenmail takeover
Answer:
In theUnited States v. Forrestercase referenced in the text,the Ninth Circuit Court of
Appeals addressed the issue of whether, without a search warrant, the government can
obtain e-mail addresses and information regarding Internet sites visited through
installation of a surveillance device at the location of the Internet service provider. How
did the court rule?
a. That the government violated the defendant’s constitutional rights because no warrant
was obtained.
b. That obtaining the information did not constitute a Fourth Amendment search,
because the defendant did not have an expectation to privacy in emails or websites he
visited.
c. That obtaining the information constituted a Fourth Amendment search, but that the
defendant’s constitutional right to privacy were not violated.
d. That obtaining the information did not constitute a Fourth Amendment search, but
that the defendant’s due process rights were violated.
Answer:
Connie owns a retail establishment that sells electronics. She does a lot of business with
Company ABC in Japan. Connie does not want to learn Japanese law or travel to Japan
in the event of a dispute with the company. She seeks advice regarding how to protect
herself from such risks in the event of a dispute. Which of the following would be a
good idea for Connie?
a. A choice-of-law provision
b. A choice-of-forum provision
c. A conflict-of-laws provision
d. Both a choice-of-law provision and a choice-of-forum provision
Answer:
Researchers found a statistically significant inverse relationship between a country’s
economic prosperity, as measured by the per capita gross domestic product, and the
country’s judicial independence.
a. True
b. False
Answer:
A shareholder derivative suit is a lawsuit by:
a. shareholders on behalf of the corporation.
b. the shareholders directly.
c. the controlling shareholders on behalf of the majority shareholder.
d. the corporation.
Answer:
A descriptive mark that is initially unavailable for protection can still become
protectable if it acquires __________ meaning.
a. descriptive
b. geographic
c. personal
d. secondary
Answer:
Rawlsian moral theory seeks to develop principles behind a “veil of information.”
a. True
b. False
Answer:
Some companies, like Nike and Adidas, are now auditing supplier working conditions
and posting the results at the Fair Labor Association website.
a. True
b. False
Answer:
Lobbying legislators is one method by which managers can help shape the environment
in which they do business.
a. True
b. False
Answer:
A reasonable accommodation for a disabled employee is required whether or not it
would impose an undue hardship on the employer.
a. True
b. False
Answer:
The mens rea for recklessness involves the same elements and standards as those
required for intentional wrongdoing.
a. True
b. False
Answer: