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General partnerships are pass-through entities regarding taxation; however, limited
partnerships are not pass-through entities for taxes.
Nuisance suits allow an individual to sue a polluter to protect the community from
environmental damage.
Restatements of the Law are written and revised by Congress and state legislatures as
needed.
The CAN SPAM Act does not address spammers who falsify the name of the sender.
In Alston v. Advance Brands and Importing Company, a parent group sued a maker of
alcoholic beverages, claiming the maker's advertising induced alcohol sales to minors.
The suit was dismissed because the group suffered no legitimate damages.
Under the Age Discrimination in Employment Act, to maintain a valid claim, the
replacement employee must be substantially younger than the terminated employee and
must be a member of a recognized protected class.
To qualify for Subchapter S status, a supermajority of the shareholders must consent to
the Subchapter S designation.
Partners in an LLP may choose to have LLP income taxed as a corporation.
The Supreme Court has held that agencies have very narrow discretion regarding when
and whom to regulate.
Typically, political speech by corporations is fully protected by the First Amendment.
Individual consumers do not have the right to see their own credit report unless they are
applying for a loan.
Fred has a toothache and is driving to the dentist. He's in a lot of pain, so he speeds
down the road 20 miles over the speed limit. If he has an accident, it is an intentional
tort and not negligence because he knowingly was speeding.
The Federal Unemployment Tax Act covers the costs of administering state
unemployment insurance and state job service programs.
Most common stock enjoys voting rights; however, common stock may be sold without
voting rights.
If a buyer knowingly accepts nonconforming goods, the buyer may still sue the seller
for monetary damages based on the nonconformity.
In Oncale v. Sundowner Offshore Services Inc., the court determined that same-sex
harassment is a legitimate issue covered and actionable under Title VII.
If a worker dies before retirement, all Social Security benefits are forfeited and no
benefits are paid to anyone.
Rob agrees to act as an agent for Diane in selling her car. Diane has a duty of loyalty to
Rob.
The bankruptcy trustee is appointed to represent the creditors' interests.
Every time Mike passes Kathy in the office he rubs against her. Sometimes he walks up
behind her and massages her shoulders even though she has told him not to. Lately he's
been pinching her butt when no one is watching. Mike is committing quid pro quo
sexual harassment.
Boris skydives from a plane and gets tangled in a tree, hopelessly suspended and
swinging precariously in his parachute from the branches of the tree. Natasha sees that
he is in trouble and comes to his rescue. Once Boris is safely on the ground, he
gratefully promises to give Natasha half of his life savings account. When he changes
his mind, Natasha will probably be unsuccessful in enforcing his promise.
Trademarks must be distinctive and cannot be classified as arbitrary or fanciful, with no
inherent relationship to the company's product or service.
The standard that must be met for a plaintiff to win a trademark dilution claim is
likelihood of confusion.
A corporation may be a principal of an LLC.
Substantial modifications to proposed rules may be published without going through the
entire rulemaking process again.
Kent Corp. (KC), a general contractor building a new dorm at a university, contracted
with Fine Rugs Inc. (FRI) to have a certain grade of industrial rugs installed in the
dorm. The contract price was $180,000. After the rugs were installed, KC was
dissatisfied with the rug quality. FRI insisted that the rugs installed were appropriate to
the contract specifications and demanded full payment. KC sends FRI a check for
$120,000, which KC believes is the proper value for the rugs installed, and marks the
check "Paid in Full." FRI writes "Under Protest" on the check and deposits it. FRI may
now, in most states, successfully sue KC for the balance of $60,000.
Except for children working in family agricultural jobs or as actors, the Fair Labor
Standards Act prohibits the employment of 13-year-olds.
Unsecured creditors have few practical ways to collect their debt.
Immanuel Kant is credited with developing the utilitarian stream of moral reasoning.
Legally mandated arbitration is nonbinding arbitration.
Shovels R Us sends a purchase order to Acme Snow Shovel Inc., for 500 shovels to be
delivered by September 30, 2014, in time for the winter season. Acme returns an
acknowledgment form indicating that the shovels will be delivered on March 1, 2015.
The acknowledgment letter forms a valid contract.
Sara is broke but needs a gown to go to a formal dance sponsored by her company. She
goes to a local dress shop and purchases an expensive gown she cannot afford. She
wears the gown to the event, tucking in and hiding the price tag rather than removing it.
She dances all night and the next day goes back to the shop and returns the dress. The
store's policy is that it will accept returns for 30 days as long as the price tag is still
attached.
A. Sara has not acted unethically because she complied with the store's policy.
B. Sara has not acted unethically because she got the idea from an article in a magazine
that said that celebrities do things like this all the time.
C. Sara has not acted ethically because this is not an accepted act in the general society.
D. Sara has not acted ethically if she returns the dress without cleaning it but has acted
ethically if it is cleaned and sanitized before returning it.
When is formal agency rulemaking used?
A. only when the enabling statute requires it
B. when the agency believes that a proposed rule will be controversial
C. when it is required by the Administrative Procedures Act
D. any time an agency makes a new rule
The civil law system is based on the ______ legal heritage.
A. English
B. Roman
C. American
D. Italian
When a state action is found to be based on a semi-suspect (or quasi-suspect)
classification, the courts will employ:
A. rational basis scrutiny.
B. intermediate scrutiny.
C. strict scrutiny.
D. no particular form of scrutiny (none is required in this situation).
The official publication of federal statutory law is the:
A. Federal Register.
B. Consolidated Statutes of the United States.
C. Code of Congressional Statutes.
D. United States Code.
Which of the following is not one of the FDA's powers?
A. ordering mandatory recalls
B. stepping in and closing a business
C. seizing contaminated products
D. filing civil enforcement lawsuits
What does going through the process of accord and satisfaction do?
A. It prevents a creditor from suing while the business is revising its business model.
B. Contract terms with creditors are renegotiated, releasing the debtor from liability by
settling the debt.
C. It prevents creditors from filing for involuntary bankruptcy.
D. It discharges debt.
In a destination contract, risk of loss passes to the buyer when the goods:
A. are tendered at the specific destination.
B. are delivered by the seller to the carrier.
C. begin the journey to the destination point.
D. have passed the halfway point to the destination.
Which of the following is not presented in the textbook as a purpose of environmental
protection statutes?
A. protect wildlife and endangered species
B. promote clean air and water through regulation and permitting
C. ensure that businesses have no impact on the environment
D. ensure that government agencies make as minimal an impact as possible on the
environment
Your school's football coach has just been fired. When the athletic director informs him
of the termination, he tells the coach that although he has had recent winning seasons,
the inability to make it into postseason play and his inability to groom players for the
pros has weighed prominently in the decision. The coach is also told that his recruiting
has not been effective and that his fund-raising has been disappointing. The AD then
tells him that his pretty-boy image makes him look too effeminate, he dresses like a
nerd, and he doesn't portray the proper image of a head football coach desired by the
school. The coach's best theory for pursuing a discrimination lawsuit is:
A. disparate treatment discrimination.
B. mixed motives discrimination.
C. disparate impact discrimination.
D. pretextual discrimination.
Mike has sued Kathy for injuries received in a traffic accident. If Kathy fails to respond
to the complaint and summons within the proper time limit:
A. Mike wins based on a summary judgment.
B. Mike wins based on a default judgment.
C. Mike wins based on a judgment as a matter of law.
D. nothing happensKathy is not required to respond to a complaint and summons.
The concept that in order to pass judicial muster, the evidence must show that the
agency made its final decision based on a consideration of relevant factors without any
clear errors of judgment is known as the:
A. arbitrary and capricious standard.
B. Chevron test.
C. logical-outgrowth test.
D. McDonnell Douglas test.
The Safe Drinking Water Act (SDWA) sets standards that are different for different
water systems.
The U.S. Supreme Court held that the Sherman Act applies to commercial agreements
in which the parties acted in ________ manner.
A. an unreasonable
B. a deceptive
C. a controlling
D. any kind of
In Enriquez v. West Jersey Health Systems, the plaintiff began an external
transformation from male to female. When her contract was not renewed, she brought
suit claiming discrimination.
A. The plaintiff was not entitled to protection under federal law but was protected by
New Jersey state law.
B. Although there was a New Jersey law protecting Enriquez, because the federal law
excluded the plaintiff the state law was deemed preempted and could not be enforced.
C. Changing sex or changing sexual appearance is intended to be covered by Title VII,
so Enriquez had a valid suit.
D. The discomfort of the majority of the plaintiff's co-workers outweighed any rights
that the plaintiff might have because the majority should be able to dictate policy.
Frank and Jesse are operating as a general partnership. A question has arisen that is not
covered under their partnership agreement and also not addressed by the Revised
Uniform Partnership Act. What will the courts do to resolve the situation?
A. dissolve the partnership and allow them to reform
B. look to foreign partnership laws because the RUPA encompasses all U.S.
partnership law
C. look to common law
D. look to the UCC for a gap filler
The Uniform Commercial Code has been adopted in every state except:
A. California.
B. Mississippi.
C. Louisiana.
D. Iowa.
Which of the following is not a requirement for disclaiming a warranty?
A. statutory authorization
B. a conspicuous writing
C. an explanation of why the warranty is being disclaimed
D. inclusion of the word merchantability if merchantability is to be disclaimed
A trademark can be any of the following except a:
A. word.
B. symbol.
C. formula.
D. phrase.
A disadvantage of the sole proprietorship is:
A. the difficulty of formation.
B. the inflexibility of management and control.
C. the unlimited liability of the principal.
D. the double taxation that occurs.
In Alston v. Advance Brands and Importing Company, Alston sued to prevent
advertising of alcohol because it influenced children. He was found not to have
standing for each of the reasons below except:
A. Alston did not evidence any actual injury.
B. Alston's children bought liquor using money provided by Alston, so he was at fault.
C. Alston could not show that a proper remedy was available.
D. Even if injury could be shown, the injury was not direct because Alston's alleged
injury was not directly connected to the defendants and was broken by third-party
sellers who criminally sold to minors.
Treaties:
A. may be entered into by the president without oversight or approval.
B. are entered into by the president subject to House approval.
C. are entered into by the president subject to Senate approval.
D. are entered into by the president subject to joint House and Senate approval.
Which of the following is a service mark?
A. the Adidas three stripes on a pair of sneakers
B. the GEICO gecko in advertisements
C. McDonald's golden arches
D. the Geek Squad at Best Buy
In which of the following situations will the court enforce a contract?
A. Tinker offers to sell his car to Evers. Evers asks for some time to decide, and Tinker
gives him until 6 p.m. At 4 p.m. Evers sees Chance driving the car and is told that
Tinker sold it to him. Evers calls Tinker at 4:30 p.m. and says "I accept."
B. Jan offers to sell his boat to Dean. Dean asks for 24 hours to decide, and Jan agrees.
At midnight, the boat sinks, although neither Jan nor Dean knows it has sunk. Dean
calls Jan before the 24 hours elapse and says "I accept."
C. Martin offers to sell his horse to Lewis for $1,000. Lewis replies that $1,000 is too
much and says, "I'll give you $850 for her." Martin says no, and Lewis replies, "Okay,
I'll give you $1,000."
D. Fred offers to sell his car to Wilma. Wilma asks for more time, and Fred says she
can have until 10 o'clock the next morning. For Fred to keep the offer open to her,
Wilma gives him $50, which is nonrefundable. Fred dies during the night, and after
hearing that Fred died, Wilma calls Fred's heirs at 9 o'clock the next morning and
accepts Fred's offer.
In the local paper, a car dealership advertises a small used car for a great price and a
low interest rate loan. When Patty comes in to look at that car, the salesman steers her
away from the advertised car. Instead, the salesman tries to convince her to buy a
different used car with a much higher interest rate loan. What unfair sales practice
might this be an example of?
A. false advertising
B. bait and switch
C. warranty breach
D. fraud
The IRS has developed a three-prong test to determine an agent's status. Which of the
following is not a prong in this test?
A. whether the working relationship is written or oral
B. behavioral aspects of the agency
C. the type of working relationship between the principal and the agent
D. the financial arrangements between the principal and the agent
When the American Arbitration Association receives an application for appointment of
an arbitrator, it:
A. meets with a local trial judge to determine whether litigation or arbitration will be
most efficient and advantageous based on the parties and the nature of the dispute.
B. meets with attorneys from both sides to determine whether litigation or arbitration
will be most efficient and advantageous based on the parties and the nature of the
dispute.
C. receives a list of suggested arbitrators from both parties and then selects the
arbitrator, who informs the parties of the procedures and rules of arbitration.
D. appoints a tribunal administrator, who informs the parties of the procedures and
rules of arbitration.
The Happy Days Day Care is hiring a child care worker. On the employment
application Happy Days specifically asks if the applicant has ever been arrested. Tina
applies for a job at Happy Days and answers no to that question. She also answers no to
the question that asks if there is any reason that she would not be qualified to work with
children. Soon after Tina is hired, she severely shakes a baby to stop it from crying,
causing the baby injuries. It is discovered at trial that Tina has been fired from
numerous day cares for baby shaking and various other offenses. If the baby's parents
sue Happy Days:
A. Happy Days is not liable because it made a good faith effort to screen applicants and
because it specifically asked about past indiscretions.
B. Happy Days is liable because Tina was dealing not with the public but only with
children.
C. Happy Days is liable for negligent hiring.
D. Happy Days is liable for negligent retention.
In Hauter v. Zogarts, Hauter received, as a present, a "Golfing Gizmo" that was made
by Zogarts. The device consisted of a golf ball attached to string that returned the ball to
the user after it had been hit with a club. The box that it came in stated, "completely
safe, ball will not hit player." Hauter had read the safety manual and used the product a
dozen times, but then he hit the ball too low and it struck him in the head, causing
serious injury. Hauter sued for:
A. breach of implied warranty only.
B. breach of express warranty only.
C. breach of express and implied warranty.
D. false advertising.
Diversity jurisdiction requires citizens of two different states:
A. or a controversy of $50,000 or more.
B. and a controversy of $50,000 or more.
C. or a controversy of $75,000 or more.
D. and a controversy of $75,000 or more.
Who sets the water quality standards for the navigable waters in a state under the Clean
Water Act (CWA)?
A. states
B. Congress
C. the Waterways Protection Agency
D. the U.S. Army Corps of Engineers
JR Winery grows grapes and produces wine in the state of Delaware. It purchases its
corks from Cork Masters, a California cork importer. Despite a written contract, Cork
Masters has informed JR Winery that it will immediately be raising the cost of corks 20
percent. JR Winery disputes the added charges and claims a breach of contract. Both
companies agree that they want to resolve the dispute as cheaply as possible but also
agree that they want to actually see each other during any dispute resolution
proceedings. Which type of ODR would best suit their mutual interests?
A. online negotiation
B. online mediation
C. online arbitration
D. med-arb
In Florence Cement Company v. Vittraino, Florence sought to pierce Shelby's corporate
veil and hold the principals personally liable, claiming Shelby mixed personal and
business transactions and had engaged in fraud in a loan application. The appeals court
held that:
A. the veil could be pierced.
B. piercing the corporate veil was not warranted.
C. Shelby was liable for the $114,557 owed to Florence.
D. Florence had an opportunity to mitigate damages.
In what way do legal remedies and equitable remedies differ?
What are the four primary functions of administrative agencies?
An irrevocable offer made by one merchant to another is called a _______.
Powers granted in the Constitution to the three branches of the federal government are
known as ________ powers.
Robin has just graduated with an MS in elementary education. He sends his résumé to a
number of school boards, and one writes back offering an interview for a kindergarten
position. When Robin arrives at the interview, it is obvious that the interviewers had
expected a female. They ask a few general questions and conclude the interview. Two
days later he gets a rejection letter. He later finds out that a female applicant with only a
bachelor's degree was hired. He believes that he has been discriminated against due to
sex, and he files a complaint with the EEOC. The school district defends by saying that
kindergarten teachers are traditionally female and that the parents' preference is for a
female to conduct the class. Is the school board justified in its actions, and will its
defense be effective?
If a shipwreck causes an oil spill, the legislation that regulates it is known as the
________ Act.
Evidence of specific intent to deceive, manipulate, or defraud is called _______.
A collection of uniform legal principles focused on a particular area of traditional state
law is called ________ of the Law.
Limited partnerships are required to file a(an) ________ return with the IRS each year.
The process of having the NLRB certify a union based on 50 percent of the
authorization cards indicating the employees want a union without an election is called
______.
"Computer City" is an example of a ________ trademark.
On what grounds might the U.S. Patent and Trademark Office deny or reject an
application for trademark protection?
For the formation of a valid contract, the broad underlying requirement that the parties
must reach an agreement using a combination of offer and acceptance and that the
assent must be genuine is known as ___________ assent.
Do you agree with the court's decision in Fontainebleau Hotel v. Eden Roc? Explain. Is
this case the same as one in which your neighbor, whom you don't get along with,
builds a 40-foot fence on her property that blocks air and light from your deck and
swimming pool, claiming she's doing it for security and privacy?
What does the parole evidence rule say, and how does it affect contracts?
Minzer Corp. is considering a lawsuit against Salter Inc., for patent infringement.
Minzer is a Delaware corporation, and Salter is located in Utah. If the case is brought in
Utah, what issues should the Minzer board of directors consider when deciding whether
to file and pursue the case?
When an invention is shown to be new and unique, the invention has met the ________
standard.
Thelma and Louise are roommates in college. Thelma loves to bake and makes
incredibly tasty chocolate chip cookies. Louise suggests that they sell the cookies
around campus and split the profits. They orally agree that Louise will advertise the
cookies, provide decorative bags to put the cookies in, and be responsible for deliveries
around campus while Thelma will obtain the ingredients and do all the baking. They
intend the whole endeavor to be low-key and informal. Have Thelma and Louise
created a business entity, and why is it important for them to fully understand their
relationship?
