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Eleanor Rigby is an employee of Strawberry Fields Music, Inc., a firm that specializes
in the preparation of original music for possible use by advertisers in TV and radio
commercials. In January 2000, Rigby wrote a song that is protected by copyright. She
wrote the song as part of her regular duties as a Strawberry Fields employee. Rigby and
Strawberry Fields did not have a written agreement concerning ownership of the
copyright on the song. In February 2000, Rigby and Strawberry Fields published the
song by making large numbers of copies available to the public. Statements A through
D deal with ownership of the copyright on the song and with the duration of the
copyright. Which statement is legally accurate?
A. Rigby owns the copyright, which will expire 50 years after her death.
B. Rigby owns the copyright, which will expire in 2100.
C. Strawberry Fields owns the copyright, which will expire in 2075.
D. Strawberry Fields owns the copyright, which will expire 50 years after Rigby's
death.
The purpose of the _____ is to increase penalties for corporate wrongdoers, establish
rules designed to deter and prevent future wrongdoing, and encourage and enable
corporate executives to be ethical and socially responsible.
A. Sarbanes-Oxley Act
B. Davis-Bacon Act
C. Goldwater-Nichols Act
D. Certiorari Act
If there are insufficient funds to satisfy all the creditors within a class:
A. the debtors have the last say on the amount that each member shall receive.
B. the class members decide amongst themselves the amount that each of the members
should receive.
C. the court makes an arbitrary decision regarding the share of each member.
D. each class member receives a pro rata share of his claim.
Maggie, the tenant under a one-year lease of an apartment, assigned the lease to her
friend, Cosmo. Which of the following is a legally accurate statement?
A. Maggie's assignment of the lease is the same thing as the granting of a sublease.
B. If Cosmo fails to pay rent during the year covered by the lease, Maggie will be liable
for it.
C. The assignment extinguishes any further obligations Maggie may have under the
lease.
D. Maggie's assignment is called a tenancy for a period.
Which of the following is also termed a "liability waiver"?
A. exculpatory clause
B. nondisclosure agreement
C. confidentiality clause
D. noncompetition clause
What is term for a clause that authorizes a creditor to go into court if the debtor defaults
and to have a judgment entered against a debtor without a trial?
A. Power of Attorney
B. Articles of Incorporation
C. Commerce treaty
D. Confession of Judgment
George has signed a promissory note and Huber, Nick and Jeffery are cosureties of their
friend George. When George defaults, Jeffery pays the whole obligation. Jeffery is
entitled to collect one third from both Nick and Huber. This is known as the:
A. right to contribution.
B. right of exoneration.
C. right of redemption.
D. right of collection.
Agreements made by unmarried people who are living together:
A. are unenforceable regardless of their nature.
B. are enforceable if they do not involve the division of property.
C. are unenforceable if one of the parties is married to someone else.
D. are considered to be against public policy.
Federal regulation is considered to be officially "pervasive" when:
A. Congress has given an administrative agency broad regulatory power in a particular
area.
B. there is literal conflict between the measures by different states.
C. the state regulation is an obstacle to federal regulations.
D. there is a conflict regarding a federal issue between private citizens.
A drawer's written stop-payment order is valid for:
A. six months, unless the drawer extends it in writing.
B. only 14 days, and can be extended if the drawer sends a written order.
C. one year, unless it is renewed in writing.
D. a check of $500 and above.
Under the common law, an offer for a unilateral contract:
A. is accepted by full performance of the act requested by the offer.
B. is accepted either by an appropriate act or an appropriate promise.
C. is accepted by whatever means are reasonable under the circumstances.
D. is accepted by making the promise requested by the offer.
Which of the following is true about perfection of fixtures?
A. Automatic perfection does not apply for consumer goods that are yet to become
fixtures.
B. A creditor who relies on attachment for perfection will prevail against other creditors
who hold an interest in the good to which the consumer good is attached.
C. Fixture filing is always necessary to perfect the security interest in any good.
D. A creditor with a security interest in fixtures obtains perfection merely by attachment
of her security interest to the good.
Jack was an employee of ABC Corp. Harry, the president of ABC, had reasonable
grounds to believe that Jack had stolen money from the corporation. ABC fired Jack.
One month later, Jack applied for employment at DEF Corp. The vice president for
Human Relations at DEF contacted Harry and asked about Jack's performance at ABC.
Harry responded, "I believe that Jack stole money while working here". DEF declined
to hire Jack. Jack later discovered what Harry had said, and is now suing Harry for
defamation. What is the likely outcome of this case?
A. Jack will win because Harry's statement harmed him.
B. Jack will win because Harry did not have absolute proof that Jack had stolen money.
C. Harry will win because he had a conditional privilege to make that statement.
D. Harry will win because he had an absolute privilege to comment on a former
employee's performance.
Which of the following characterizes an output contact?
A. The buyer must accept whatever amount the seller produces, no matter how large.
B. The buyer must accept a reasonable amount from the seller, but no more.
C. The buyer must accept any amount that is reasonably proportionate to any stated
estimate in the contract.
D. The buyer must accept a conscionable amount from the seller, but no more.
When conducting an investigation of terrorism federal authorities seek warrants from
what court?
A. FISA court
B. Federal District Court for the District of Columbia
C. The International Criminal Court
D. The UN High Court on Terrorism
The Bankruptcy Act of 2005 increases the responsibility of a debtor's attorneys thereby
raising concerns that bankruptcy practice may become less attractive as:
A. the attorney has to operate on relatively thin margins as provisions increase along
with costs and risks.
B. the attorney owes a duty to client for getting the debtor's property appraised.
C. the attorney has to call a meeting of all the creditors of the debtor.
D. the attorney has to classify the priority of creditors as per the 10 classes of priority
given in the Bankruptcy Code.
Which of the following entities is covered by Title VII? Assume that the entity in
question discriminates on one of the bases forbidden by Title VII.
A. An individual who employs 5 people.
B. A corporation employing 10 people.
C. A labor union with 20 members.
D. A private college with 12 employees.
Which of the following occurs when a buyer, after having a reasonable opportunity to
inspect them, either indicates that he will take them or fails to reject them?
A. Rejection of goods
B. Assignment of goods
C. Revocation of rights
D. Acceptance of goods
Ken was a general partner in a limited partnership until March 2011, when he
transferred all his transferable rights to his wife. A few days later, he was expelled from
the limited partnership by other partners. If the limited partnership did not give any
notice of dissociation, Ken will retain his apparent authority to transact for the limited
partnership until:
A. 2012.
B. 2013.
C. 2014.
D. 2015.
In which of the following transactions is the buyer most likely to be entitled to specific
performance of the contract?
A. A contract for purchasing a tanker of crude oil
B. A contract for purchasing 1,000 tons of wheat
C. A contract for purchasing 100,000 light bulbs
D. A contract for purchasing a Picasso painting
Because the articles of incorporation embody the basic contract between a corporation
and its shareholders, shareholders must approve most changes in the articles. Which of
the following is an example of "such changes" in the article?
A. Place of shareholder meeting
B. Increase in the number of authorized shares
C. Amount of annual dividend
D. Date of shareholder meeting
Equity securities consist of:
A. debentures and promissory notes.
B. short-term notes payable.
C. common and preferred shares.
D. bonds and debentures.
_____ are long-term, unsecured debt securities.
A. Options
B. Warrants
C. Bonds
D. Debentures
When is a person's duty to perform discharged on grounds of impossibility?
A. When a substitute is available
B. When there is a delay in the delivery of goods
C. In the presence of supervening illegality
D. A promisee's dissatisfaction with the performance
Some states have a statute that allows finders of property to clear their title to the
property. These are called:
A. leasings.
B. statutes of limitations.
C. estray statutes.
D. exculpatory clauses.
Which of the following is a similarity between Title VII and the employment
discrimination provision known as "Section 1981"?
A. Both Title VII and Section 1981 apply to sex discrimination.
B. Both Title VII and Section 1981 apply to racial discrimination.
C. Both Title VII and Section 1981 impose limits on covered employees.
D. Both Title VII and Section 1981 impose limits on compensatory damages.
Average Corp. was convicted of violating the federal mail fraud statute due to the
activities of some of its employees, who had used the U.S. mail to perpetrate a
fraudulent scheme designed to advance the otherwise legitimate business interests of
Average. Average has appealed, arguing that its conviction should be set aside because
the employees in question were relatively minor officials of the company and were
acting without the knowledge or consent of any high-level corporate officer. In addition,
Average argues that the involved employees were acting in violation of a longstanding
and well-known Average policy against fraudulent schemes. Should Average's
conviction be set aside?
A. Yes, because Average could not have had the necessary mens rea.
B. No, because the involved employees were acting within the scope of their
employment and for the benefit of Average.
C. No, because nothing in the facts indicates that Average should qualify for the
protection of the due diligence defense recognized by most courts.
D. Yes, because high-level corporate officers must be involved and they were not
involved. Here in order for criminal intent to be imputed to the corporation.
Nearly Insolvent Savings & Loan (NISL) recently ran a newspaper advertisement that
read as follows: "Unsecured open-end credit lines (maximum $15,000) now available to
consumers. Borrow against your line as you need money. Your minimum monthly
payment to NISL? Only $25." Which of the following is a legally accurate statement
about this advertisement?
A. The advertisement complies with the Truth in Lending Act in word and in spirit.
B. The Truth in Lending Act does not apply, because NISL would be extending
consumer credit in an amount that exceeds the ceiling set forth in the statute.
C. The Truth in Lending Act does not apply, because NISL would be extending credit
for consumer uses rather than for commercial uses.
D. The advertisement's failure to state the annual percentage rate (APR) is a reason why
the advertisement violates the Truth in Lending Act.
Which of the following tasks can an agent perform on behalf of a principal?
A. Signing a will
B. Making statements under oath
C. Voting in public elections
D. Making a contract
If an ambiguity or conflict arises when people read and/or interpret a will, courts will:
A. look for evidence of the intent of the testator within the will.
B. ask the family members or beneficiaries for their preference(s).
C. appoint a probate referee to decide the future of the will.
D. declare it void or invalidate the will due to ambiguity in the will.
