Once the Patent and Trademark Office issues a patent, a court may not find it invalid.
a. True
b. False
Answer:
Congress can override a President’s veto by a __________ vote of both the House of
Representatives and the Senate.
a. majority
b. two-thirds
c. three-quarters
d. unanimous
Answer:
In theBond v. United States case referenced in the text, the U.S. Supreme Court held
that a border patrol officer cannot touch or squeeze a bus passenger’s carry-on bag
placed in the overhead rack, even though other passengers might also be expected to
touch the bag.
a. True
b. False
Answer:
__________ includes demotions, reductions in pay or other actions that affect an
employee’s status in a tangible manner.
a. Accommodation
b. Quid pro quo
c. Notice of right to sue
d. Adverse employment action
Answer:
The United States is regarded as providing adequate privacy protection under privacy
laws of the European Union.
a. True
b. False
Answer:
The principal federal law prohibiting discrimination in employment on the basis of age
is:
a. Title VII.
b. ADEA.
c. OWBPA.
d. EEOC.
Answer:
No provision in the Bill of Rights has been held to limit the actions of state
governments because the Bill of Rights only applies to federal government actions.
a. True
b. False
Answer:
Companies listed on the New York Stock Exchange must have compensation
committees composed entirely of independent directors.
a. True
b. False
Answer:
In CASE 19.2Holmes v. Lerner(1999), Lerner (a wealthy entrepreneur) talked to
Holmes about setting up a cosmetics business called Urban Decay. Holmes received
assurances from Lerner about finances and setting up the business. Later Lerner
negotiated a separate deal for Urban Decay without including Holmes, and drafted
articles of incorporation which gave Holmes only a one percent interest in Urban
Decay. Holmes sued, insisting that even though they had no written agreement, she
should have been a full and equal partner. How did the court rule and why??
a. The court held for Lerner as a full and equal partner, because the oral and written
expressions and discussion of profits was a prerequisite to form a partnership.
b.The court held for Lerner, there was insufficient evidence of intentions to form a
partnership.
c. The court held for Holmes as a full and equal partner, because the oral and written
expressions and discussion of profits was a prerequisite to form a partnership.
d.The court held for Holmes, because under state law, she automatically became a
limited partner.
Answer:
Implied ratification of an agent’s unauthorized acts can occur through the silence of the
principal.
a. True
b. False
Answer:
Kant’s categorical imperative states that:
a. the form of an action rather than the intended result determines the ethical worth.
b. no one person’s interest is given more weight than another.
c. distribution favors the person getting the worst share.
d. morally objectionable actions can never be in the best interests of society.
Answer:
All tenants in common have an equal right to possession of the property.
a. True
b. False
Answer:
National banks acting as lenders are subject to state usury laws.
a. True
b. False
Answer:
The so-called “Tailpipe Rule” enacted by the EPA in 2010 requires most passenger
vehicles to achieve 35.5 MPG by 2016.
a. True
b. False
Answer:
In the caseUnited States v. Morrisonreferencedin the text, the U.S. Supreme Court held
that the Violent Crimes Against Women Act was:
a. validly enacted under the authority of the due process clause of the U.S. Constitution.
b. validly enacted under the authority of the equal protection clause of the U.S.
Constitution.
c. not valid because it discriminated against men.
d. invalid because Congress exceeded its authority under the Commerce Clause of the
U.S. Constitution.
Answer:
In a __________, the seller offers the buyer a commission, rebate, or discount for
furnishing the seller with a list of additional prospective customers.
a. pyramid sale
b. referral sale
c. commission sale
d. rebate sale
Answer:
Fact Pattern 19-2
Maxine and Vince verbally agree to form a dog grooming partnership called “XYZ
Grooming.” They file nothing with the state. Maxine puts up 80% of the capital needed
for the partnership, and Vince supplies 20%. Maxine assumed that Vince would do extra
work to account for the small amount of capital contributed by him, but that did not
occur. Maxine found herself grooming more than 90% of the animals on her own.
Maxine told Vince that he was only entitled to 10% of the profits because he was only
doing 10% of the work. Vince disagreed, and a heated argument occurred. Not
surprisingly, Maxine and Vince decided to end the partnership. While winding up
affairs, Maxine discovered that Vince paid an excessive amount for some dog shampoo.
She thought he bought it from a certain supplier just so he could flirt with the
receptionist there. She told him that paying for the shampoo was entirely his
responsibility because she had not agreed to the purchase. Maxine and Vince also
became aware of a lawsuit filed by the owner of a Welsh Pembroke Corgi complaining
that the dog developed a skin rash following bathing by Vince in the expensive
shampoo he had purchased, and that the owner lost money because the dog could not be
entered into shows. Maxine told Vince that the litigation was entirely his responsibility
and that she disavowed any liability to the plaintiff.
Refer to Fact Pattern 19-2. Which of the following is true regarding liability on the
lawsuit brought by the Corgi owner?
a. The partnership is liable and Vince is liable in the event there are insufficient
partnership assets to pay any judgment, but Maxine would not be liable on any
judgment.
b. The partnership is liable, and so are both Vince and Maxine if insufficient partnership
funds exist to pay any judgment.
c. Vince is liable on any judgment, but neither Maxine nor XYZ Grooming would be
liable.
d. Since the winding-up process has begun, neither Maxine, Vince, nor XYZ Grooming
would be liable on any judgment obtained.
Answer:
A poison pill is a defensive measure that would make any takeover not approved by the
directors prohibitively expensive.
a. True
b. False
Answer:
__________ is the publication of statements derogatory to the quality of the plaintiff’s
business, to the business in general or to the plaintiff’s personal affairs in order to
discourage others from dealing with him or her?
a. Disparagement
b. Critical falsehood
c. Defamation
d. Malicious derogatorism
Answer:
In theRagsdale v. Wolverine World Wide case discussed in the text, the question was
whetherthe Department of Labor could validly institute a regulation giving an employee
the right to an additional twelve weeks of family or medical leave if the employer failed
to notify the employee that the twelve weeks of leave provided by the Family and
Medical Leave Act ran concurrently with the thirty weeks of paid disability leave
provided by the employer. How did the U.S. Supreme Court rule?
a. The U.S. Supreme Court invalidated the regulation because it granted entitlements
not set forth in the Family and Medical Leave Act and that were inconsistent with the
purpose of the Act.
b. The U.S. Supreme court upheld the regulation as a valid exercise of the Department
of Labor’s power.
c. The U.S. Supreme Court invalidated the regulation because it had not first been
approved by a federal judge and also because it granted entitlements not set forth in the
Family and Medical Leave Act.
d. The U.S. Supreme Court invalidated the regulation because it had not first been
approved by the executive branch.
Answer:
Trespass to personal property and conversion are different names for the same tort.
a. True
b. False
Answer:
Fact Pattern 17-1
Cream X has been approved by the Food and Drug Administration for the treatment of
eczema. Dr. Glover discovers, however, that it is also great for a number of other things
including the removal of wrinkles and cellulite. The cream is applied to the skin, not
ingested. He starts prescribing it for those purposes and has a great increase in patients.
Dr. Smith starts to lose a number of patients to Dr. Glover and becomes grumpy when
she hears why Dr. Glover is gaining in popularity. Dr. Smith decides to complain about
the practice but does not know quite what to do about it.
Refer to Fact Pattern 17-1. Which of the following is the appropriate term for Dr.
Glover’s prescribing of Cream X for the elimination of wrinkles and cellulite?
a. Compounding use
b. Non-acknowledged use
c. Derivative use
d. Off-label use
Answer:
Which of the following authorizes the federal government to take remedial action in
response to a release of hazardous substances into the environment?
a. CERCLA
b. Solid Waste Disposal Act
c. Resource Conservation and Recovery Act
d. Clean Air Act
Answer:
__________ prohibits the testimony of the witness from being used against him in any
way.
a. Transactional immunity
b. Use immunity
c. Nolo contendere
d. Plea bargaining
Answer:
The defendant may put forth a(n) __________ which admits the defendant acted in a
certain way but claims that the defendant’s conduct was not the __________ of harm to
the plaintiff, or that that defendant’s conduct was __________.
a. affirmative defense, legal cause, excused
b. motion for summary judgment, legal cause, excused
c. counterclaim, legal cause, excused
d. affirmative defense, proximate cause, preempted
Answer:
A trust is a form of co-ownership of property.
a. True
b. False
Answer:
Under what circumstances will reliance be presumed for purposes of establishing
liability under Rule 10b-5?
a. If the investor shows that the defendant made a public material misrepresentation that
would have caused reasonable investors to misjudge the value of the defendant’s stock.
b. If the investor shows that (1) the defendant made a public material misrepresentation
that would have caused reasonable investors to misjudge the value of the defendant’s
stock and (2) the investor traded shares of the defendant’s stock in an open securities
market after the misrepresentations were made and before the truth was revealed.
c. If the investor shows that (1) the defendant made a public material misrepresentation
that would have caused reasonable investors to misjudge the value of the defendant’s
stock, (2) the investor traded shares of the defendant’s stock in an open securities
market after the misrepresentations were made and before the truth was revealed, and
(3) the investor made specific inquiries from professionals regarding the value of the
stock before trading.
d. If the investor shows that (1) the defendant made a public material or nonmaterial
misrepresentation that would have caused reasonable investors to misjudge the value of
the defendant’s stock, (2) the investor traded shares of the defendant’s stock in an open
securities market after the misrepresentations were made and before the truth was
revealed, and (3) the investor made specific inquiries from professionals regarding the
value of the stock before trading.
Answer:
Which of the following has the responsibility for deciding which allocation of resources
and rewards in a business makes the most business sense?
a. The general manager
b. The in-house lawyer
c. An independently retained lawyer
d. An independently retained law firm, not just one lawyer
Answer:
The division of power among the executive, legislative and judicial branches of
government is typically referred to as:
a. federalism.
b. judicial review.
c. separation of powers.
d. the Supremacy clause.
Answer:
Both the U.S. Congress and state legislatures may adopt statutes.
a. True
b. False
Answer:
Lenders are immune from liability under CERCLA if a contaminated property goes
through foreclosure.
a. True
b. False
Answer:
A loan agreement may be preceded by a(n) __________ which is a letter outlining the
terms and conditions on which the lender will lend.
a. term sheet
b. advance notification
c. contract addendum
d. attachment
Answer:
Which of the following is true regarding enforcement under the antitrust laws?
a. The U.S. Department of Justice and the Federal Trade Commission act as
enforcement agents for the federal antitrust laws.
b. Only the U.S. Department of Justice acts as an enforcement agent for the federal
antitrust laws.
c. Only the Federal Trade Commission acts as an enforcement agent for the federal
antitrust laws.
d. The U.S. Department of Justice and the Consumer Fairness Commission act as
enforcement agents for the federal antitrust laws.
Answer:
In most states shopkeepers who detain and later release a shoplifter may be held liable
for false imprisonment even if the detention was reasonable and based on reasonable
cause.
a. True
b. False
Answer: