Ethical misconduct includes not only illegal and unethical practices but also includes
questionable practices of managers and organizations.
Bankruptcy laws come solely from state statutes and case law.
Courts are generally inclined to be predisposed to piercing the corporate veil whenever
a corporation causes economic harm to others.
If a buyer knowingly accepts nonconforming goods, they may still sue the seller for
monetary damages based on the nonconformity.
If Nevada sues the federal government over the constitutionality of a new federal
statute, because the United States is a party, the suit may be brought in either the state’s
highest court or in federal court.
All states require LLPs to have a written partnership agreement.
Transcripts of ADR proceedings are required to be available to the public.
FDA regulations do not apply to the labeling of food packages.
For the courts to allow a law suit to proceed, both the plaintiff and the defendant must
be able to prove standing or the suit will be dismissed.
Restitution is classified as an equitable remedy.
Contributory and comparative negligence are generally not valid defenses to workers’
compensation claims.
Diversity jurisdiction is a form of federal personal jurisdiction.
If the plaintiff proves their prima facie case under the McDonnell Douglas standard, the
burden of proof shifts to the defendant to evidence a legitimate and nondiscriminatory
reason for the discriminatory action.
When an assignment is made, the assignee has the right to reform the contract and
change the obligor’s rights and duties as they wish.
Whether someone is an agent or not depends on what is said in the agreement between
the principal and the agent.
The Fair Debt Collection Practices Act does not prevent creditors from harassing or
using misleading tactics by credit agents.
Scoop Masters Inc. has been charged by Fab Flavors Corp. of stealing Fab Flavor’s
patented process for making ice cream. After the papers are filed, Scoop Masters begins
shredding all documents pertaining to their ice cream making process. Since no motion
has been made requesting production of documents, Scoop Masters has done nothing
wrong.
When you place your garbage or trash at the curb, you have waived any expectations of
privacy and the police may go through the garbage or trash without a warrant.
Ethical problems faced by managers almost always come down to a clear choice with
one option clearly the most ethical choice.
Vince is a general contractor who hires Brad to install plumbing in a government
building under construction. The morning that Brad is to begin work, Vince discovers
that Brad has lost his plumbing license and is no longer eligible to do work on
government buildings. When Brad shows up ready to work, Vince informs him that he
can’t use his services and sends him away. The agency relationship terminated due to
operation of law.
Mike is having coffee in a coffee house when he sees Jordan who is the dean of a
Midwest business school. Mike used to teach at Jordan’s prior school and was
considered a very valuable faculty member. They haven’t seen each other for years and
Jordan has no idea what Mike has been doing or where he’s currently working. She tells
him that she has a position for him if he’s interested. The next day Mike quits the
university he’s under contract with and signs a contract with Jordan’s school. Jordan’s
school can be sued for tortious interference with existing contractual relationship.
Generally, for an acceptance to create a non-commercial contract, the acceptance must
be without qualifications or conditions.
The FDA enforces both specific and general standards for food safety.
A sublease occurs when a tenant transfers the entire remaining term of a lease to a third
party.
Filing a statement of notice with a state government is one way to perfect a security
interest.
Your school or college has just received a specialized accreditation for which a lot of
work has been done. This specialized accreditation is a great achievement. If the
accrediting body takes a picture from your school or college’s website and publishes the
picture as a thumbnail along with a hyperlink to your school or college’s website, on
their site advertising or announcing the accomplishment, they are infringing on the
picture’s copyright.
Agencies are frequently charged by Congress to study potential solutions to a problem
and then exercise legislative function by creating legally enforceable rules.
One significant benefit of obtaining a patent is that the cost to defend a patent is
relatively minimal when compared to typical law suits.
According to the Zippo standard, any website that is in any way interactive with
customers will be sufficient to create personal jurisdiction over a nonresident company.
An independent contractor is not considered an employee but is entitled to minimum
wage and overtime protections.
Only property owners are liable for cleanup costs of contaminated sites under the
Superfund laws.
The sales of securities in the secondary market does not raise capital for the business
whose stock is sold.
Albert has sued Tina and received a judgment for $50,000. Tina’s assets may be exempt
from collection of the judgment if Tina has filed bankruptcy.
Beth has a contract with Annie in which Annie is to deliver 1000 hand decorated
beverage holders in 60 days. When Beth calls the Psychic Hotline for her weekly
reading, the psychic informs her that she has entered into a contract and the other party
will not perform all the conditions and specifications as per the agreement. Beth may
sue for an anticipatory repudiation.
Amanda, a recent university graduate, needed a car to get to her new job. To help
Amanda secure a loan for the car, Ted, a friend, agreed to pay the loan should Amanda
default. Ted’s promise is enforceable as long as he goes to the bank, declares his
promise to guarantee Amanda’s loan in front of witnesses and shakes hands on the deal
giving his word.
The Uniform Residential Landlord-Tenant Act applies to both commercial and
residential agreements.
Both commercial speech and corporate political speech are subject to intermediate
scrutiny.
Each contract should cover a singular promise and if multiple promises are involved,
multiple contracts should be created.
The three stripes on Adidas clothing represents a:
A.trademark.
B.trade dress.
C.trade secret.
D.patent.
The Securities Act of 1934 focuses on the:
A.primary market.
B.secondary market.
C.preferred market.
D.common market.
Most state workers’ compensation statutes exempt each of the following except:
A.Marie is a maid who injures her back while vacuuming a rug.
B.Tom is a full time custodial worker employed at a local store.
C.Fred is a college student who regularly works part time for a florist after classes and
is injured making a delivery to a customer.
D.Mike is a college student who works two months a year during his summer vacation
as a life guard at a pool and is injured saving a woman.
What businesses typically need a personal guarantee in order to receive a loan?
A.large businesses
B.small businesses
C.almost all businesses
D.businesses do not need personal guarantees
The merchant’s privilege with regard to shoplifters requires each of the following
except:
A.the shopkeeper must have reasonable cause to stop the customer.
B.the shopkeeper only may detain the customer for a reasonable time.
C.the shopkeeper must make a reasonable investigation if possible.
D.the shopkeeper must have an eye witness or video evidence of the theft.
Murder is the killing of a human being with malice aforethought. Malice aforethought
is the premeditation and planning of the crime. Malice aforethought shows that one
considered the consequence of their actions and knowingly committed the crime. The
malice aforethought would be the:
A.actus reas.
B.mens rea.
C.voir dire.
D.indictment.
The civil counterpart to theft is:
A.conversion.
B.trespass to chattels.
C.disparagement.
D.battery.
Which of the following is not true regarding a business trust?
A.when a business trust is entered into, no public filing is required
B.business trusts do not have officers or directors
C.business trusts are nonstatutory business arrangements
D.business trust beneficiaries are issued stock as evidence of their ownership rights in
trust assets
Public comment on proposed rules generally comes from which one of these?
A.other agencies
B.an ordinary citizen
C.public advocacy groups
D.members of Congress
Federal regulations regarding franchises are primarily designed to:
A.ensure full disclosure of all information relating to a franchise company prior to a
franchise investment.
B.ensure the federal tax guidelines are met.
C.ensure that the public is protected from fraud or other injuries.
D.ensure that the franchisee has the requisite knowledge to manage a business and be
sure the franchisee is not entering a business relationship they are not equipped to
financially handle.
If an agent acts in a disloyal manner and realizes a personal profit from their acts, the
court may order a return of the funds which is called:
A.replenishment.
B.disgorgement.
C.restoration.
D.reinstatement.
The nonagent employee relationship is sometimes referred too as the:
A.superior/inferior relationship.
B.supervisor/worker relationship.
C.director/directee relationship.
D.master/servant relationship.
A study published by the Harvard Business Review in January, 2000 found that
intellectual property represents approximately ________ of an average firm’s value.
A.40%
B.50%
C.60%
D.70%
Chelsea’s house is for sale and she is selling it through a real estate agent. The house is
listed and any licensed agent may show the house by using the special accessible key in
a lockbox on the front porch. Stan is a licensed agent and brings Paula into the home to
show it for a possible sale while Chelsea is not home. Stan and Paula would be
considered:
A.invitees.
B.licensees.
C.trespassers.
D.guests.
Employers must provide continuous coverage to any employee even if terminated,
under the:
A.Health Insurance Portability and Accountability Act.
B.Consolidated Omnibus Budget Reconciliation Act.
C.Social Security Act.
D.Health Care and Education Reconciliation Act.
The point at which liability for negligence stops is called:
A.proximate cause.
B.negligence per se.
C.res ipsa loquiter.
D.negligence interuptus.
Several people have decided to go into business as an LLC. To cover all contingencies,
specifying what will constitute an act of dissociation and specifying the procedures
upon dissolution would be included in the:
A.certificate of organization.
B.operating agreement.
C.Uniform Limited Liability Company Act.
D.common law because the members may not negotiate these rights.
Assumption of risk is a defense to:
A.conversion.
B.negligence.
C.defamation.
D.battery.
Fly High Aviation provides maintenance for executive jets based on private contracts
with corporations that maintain airplanes for company use. Which of the following is
least likely to be a Fly High stakeholder?
A.the mechanics that work for Sky High
B.the corporations that contract with Sky High for their services
C.the citizens that live near the airports that planes maintained by Sky High fly into
D.individuals who own Sky High stock
The Robinson-Patman Act make it illegal for a business entity to discriminate in price
“between different purchasers of commodities of like quality or grade.” In order to
violate this act, the business must:
A.make sales at different prices to at least three different purchasers.
B.make one sale of a different price to a purchaser.
C.make two or more sales to different purchasers at different prices.
D.give different price quotes to different purchasers.
Helen’s cat Fluffy has run away and she places reward posters throughout her
neighborhood. Mark sees the reward poster and spends the next six hours searching for
Fluffy. While Mark is searching the neighborhood, Fluffy gets hungry and comes home.
A.this was a bilateral contract and Mark is entitled to be compensated for his efforts
B.this is a bilateral contract and Mark is entitled to nothing because he didn’t perform
C.this was a unilateral contract and Mark is entitled to be compensated for his efforts
D.this is a unilateral contract and Mark is entitled to nothing because he didn’t perform
Car performance standards are regulated by the EPA.
Regarding finance charges and APR, Regulation Z requires that their disclosure:
A.is not required.
B.be included with the rest of the information regarding the credit transaction.
C.be more conspicuous than other disclosures.
D.is not necessary for the consumer to see.
Which of these is not impermissible collector contact under the Fair Debt Collection
Practice Act?
A.contacting the debtor at inconvenient times or at inconvenient places
B.contacting the debtor once the debtor gives written notice of refusal to pay the debt
C.contacting the debtor once the debtor has asked the creditor not to call
D.contacting the debtor once the debtor informs the collector of attorney representation
Micro bonds appeal to small business ventures who wish to take advantage of bond
financing in the ________ range.
A.$50,000 to $100,000
B.$100,000 to $500,000
C.$500,000 to $1,000,000
D.$1,000,000 to $5,000,000
Which of these is not a primary source of international law?
A.treaties
B.customs
C.United Nations statutes
D.judicial decisions
Which of the following is an incorrect statement?
A.a corporation may file suit in its own name without the principals filing suit
B.a corporation may form a contract in its own name without the principals
guaranteeing the contract
C.a corporation can be sued without the principals being sued
D.a corporation may incur obligations separate from those of its principals
In Metro-Goldwyn-Meyer Studios v. Grokster, Ltd., Grokster claimed a fair use
exception to the copyright infringement claim because their process was such that it
was impossible for Grokster to know if the users of their device were infringing or not:
A.the Supreme Court agreed that since Grokster could not have known whether
infringement was occurring or not, that Grokster could not have been held liable either
directly, indirectly or vicariously.
B.the device provided by Grokster to its customers was capable of substantial
non-infringing uses so the fair use exception articulated in the Sony case was met.
C.Grokster was denied the fair use exception because the majority of their business
model was dedicated to appealing to former Napster customers and the model showed
intent to infringe on copyrights.
D.Grokster was allowed to use the fair use exception because all of the music their
device was designed to copy was already in the public domain and therefore not
protected.
Which of the following contracts 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 situations is a court most likely to find substantial performance?
A.KM Corporation orders 500 boxes of copy paper from MK supply, but MK can only
deliver 450 boxes
B.Young orders a set of four specially made chrome rims for her car but the supplier
can only deliver three
C.Olivia orders three gallons of paint to paint the exterior of her house based on square
footage covered and needed but the paint supplier can only deliver two cans
D.April orders a fully equipped car from a dealer but although perfect in every way, the
car delivered has an automatic transmission rather than the manual transmission that
she ordered
The act of taking away private property by the government is called:
A.police powers.
B.condemnation.
C.eminent domain.
D.easement.
A commercial airliner has crashed in the middle of the Atlantic. The cause of the crash
has been proven to be a wrongly installed part in one of the engines during routine
maintenance. If a negligence law suit is brought against the airlines, it will be based on:
A.nonfeasance.
B.misfeasance.
C.res ipsa loquiter.
D.negligence per se.
With regard to establishing minimal contacts to establish jurisdiction regarding
out-of-state companies that advertise and sell products over the Internet, which of the
following is not a true statement?
A.the U.S. Supreme Court has not yet directly ruled on the issue
B.the Zippo Standard, established in Zippo Manufacturing Company v. Zippo Dot Com,
Inc., is not legally binding precedent
C.at least six federal circuit courts have adopted the Zippo Standard as the legal
framework to assess minimum contacts
D.the Zippo standard sets a rigid test to establish minimum contacts by requiring that at
least a minimum of 5% of the state’s population visit the company’s web site
When did the U.S. withdraw from compulsory jurisdiction from the International Court
of Justice?
A.1959
B.it was never under compulsory jurisdiction of the court
C.1986
D.it never withdrew
John owns a company that makes televisions. The company makes high quality TVs
and has a large share of the market. Recently John’s company decided to expand their
business into surround sound systems. If the company requires its distributors to buy
the surround sound system as a condition of sale for the TVs would there be an illegal
restraint? Why or why not?
The ________ Act establishes a national fraud alert system so that consumers have a
timely way to guard their credit.
Once a federal judge is confirmed and sworn in, they may only be removed by death,
retirement or _______.
Name the five factors that the courts will use to determine whether certain material
constitutes a trade secret.
John, Paul Mark and Luke have been operating an LLC and according to the operating
agreement, the term of the LLC is set to expire in the near future. What options do the
four partners have?
When you were a senior in high school, your college announced plans to build a new
and modern athletic complex with pools, spas, weight rooms and exercise classes for
general student use. You chose to enroll largely based on these plans as announced. You
are now a senior and the building is just being started. What rights, if any do you have
because you never had the opportunity to use the facility?
Administrative agencies exercise their policymaking function through _____.
The document served on the defendant along with the complaint that provides actual
notice of the lawsuit is called a _______.
Authority based on what the third party reasonably believes the agent to possess is
called ______ authority.
ADR has some advantages for a company that makes it a better alternative than
litigation in many situations. Name and explain the various methods of ODR and what
are the advantages that ODR has over ADR for some companies?
Robert and Philip are the named beneficiaries under Alan’s insurance policy. Robert and
Philip would specifically be considered to be ________ beneficiaries.
The mental element or “guilty mind” required for criminal liability to occur is called
_____.
A factory has a permit to emit pollutions at a specified level under the Clean Air Act. As
part of upgrading its facilities what must the factory do? What might be their concern?
Payments made to common stock holders based on the profitability of the company are
called _______.
Horizontal restraints are restrictions on trade through an agreement with a _______
company.
On what grounds might the United States Patent and Trademark Office deny or reject an
application for trademark Protection?