When a party breaches a contract, the nonbreaching party always has the option of
seeking legal or equitable remedies.
It may not be discriminatory to require that persons in a protected class, in certain
instances, be afforded special rights.
A patent equates to a governmentally sanctioned monopoly right.
Not all courts have the authority to hear all cases.
While normal arbitration produces an arbiter’s decision and the parties are bound by the
award, online arbitration produces a decision; however, the award is not binding on the
parties.
A motion for a summary judgment may be filed by either the plaintiff or defendant.
The inherent right of the federal government to protect its citizenry’s health, safety and
welfare is referred to as the federal government’s police powers.
Jonathan is a junior in college and has started dating a secretary who works in the
college president’s office. She is madly in love with him and when he asks for the
passwords to access the school’s main computers she gladly gives them to him. He uses
the passwords to change his grades. Jonathan has violated the Patriot Act.
In a bailment, the title to the goods stays with the bailor.
When the seller promises that a product is good for a particular activity, they are
implying the warranty of merchantability.
There is no federal requirement for businesses to disclose the presence of certain
chemicals to their community.
Employees making complaints to the Occupational Safety and Health Administration
are protected under the Occupational Safety and Health Act’s whistle-blowing
provisions.
Business ethics is a recent phenomenon not recognized or considered prior to the mid to
late 1900’s.
Lori owes the bank the full amount of the loan that she guaranteed since collection
action against Becky was unsuccessful.
The Clayton Act was enacted to prohibit anticompetitive practices not included in the
Sherman Act.
A startup business planning to incorporate must file for incorporation in the state they
originally plan to do business in.
Existing sources of pollution are required to install the best available technology to
obtain a permit to release substances into a water source.
Magnuson-Moss requires that a seller offer a warranty to buyer.
Arthur Andersen, as a result of its conviction following the Enron scandal, is now
completely out of business.
The visitor’s bureau in the county your school is located in has a website with a section
titled “Education”. In this section, the site has placed hyperlinks to each elementary
through high school as well as links to colleges and universities with campuses in the
county. If the link to your school’s home page was placed on the bureau’s site without
your school’s consent, the travel bureau is guilty of infringement.
Mike believes that his neighbor Stephanie has been dumping sewage on her property.
After the Environmental Protection Agency has conducted its investigation, Mike is
permitted, under the Sunshine Act, to attend the meeting called to discuss the results of
the investigation.
The Federal Circuit Court of Appeals, located in Washington D.C., has exclusive
jurisdiction to hear appeals from federal courts of appeals throughout the country prior
to their appeal to the U.S. Supreme Court.
When a party successfully sues for an equitable remedy for a breach of contract, they
do not receive a monetary award.
Alphonse has lost his job and has decided to rob a bank. He goes to the bank to observe
how they operate and he purchases a weapon and ammunition as well as a mask. He has
planned his getaway thoroughly. He has driven to the bank but is arrested on his way in
when an alert policeman sees him draw his weapon and don the mask. Among other
things, Alphonse may be charged with and convicted of conspiracy to rob the bank.
Social responsibility is at its highest when the moderate view a/k/a government’s hand
theory of corporate social responsibility is utilized.
In a sale between Mark Merchant and Nonmerchant Norm the UNCISG rules for the
sale of goods are applicable.
Jimmy is annoyed because his neighbor’s dog is constantly barking. He intentionally
walks up to the dog in his neighbor’s yard and viciously kicks it. Jimmy is guilty of
battery.
Lee has rented an apartment two blocks from a busy airport. After a month of hearing
planes passing by the premises at all hours he may properly inform the landlord that he
is vacating the apartment immediately because his quiet enjoyment of the renal has
been breached.
Courts are highly critical of agency decisions involving how and when an agency
enforces a regulation.
Your cousin who is a CPA calls you and says that a client paid him in diamonds and he’s
selling them. If you purchase one of those diamonds, at the time of the sale your cousin
would be considered a merchant of those diamonds.
The shift from an agricultural society toward industrial production began almost
immediately after the end of the U.S. Revolution.
Preferred stock is the most frequently used form of equity instrument.
Which of the following is not a true business entity?
A.an LLC
B.an LLP
C.a franchise
D.a sole proprietorship
What is the name of the legislation enacted in response to injuries and death from
products being sold to consumers?
A.Federal Product Act
B.Food, Drug and Cosmetic Act
C.Product Liability and Safety Reform Act
D.Consumer Product Safety Act
Which treaty is the standard that courts use for interpreting treaty law?
A.Convention on the Recognition and Enforcement of Foreign Laws
B.United Nations Treaty on Foreign Jurisprudence
C.Berne Convention
D.Vienna Convention on the Law of Treaties
Which of the following involves the analysis of personal jurisdiction?
A.application of a long-arm statute
B.diversity jurisdiction
C.federal question jurisdiction
D.enforcement of a state or federal criminal law
Which of the following is not true of strict liability?
A.intent to injure does not have to be proven
B.it primarily applies in defective product and abnormally dangerous situations
C.injury need not occur or be proven
D.it is based on state law
The law firm of Smith, Brown and Jones has just held a meeting in which they have
decided that all fees charged by the partners will be $500 per hour with no exceptions.
They also set nonnegotiable fees for such things as preparation of wills, real estate
settlements and other types of standard types of cases. Smith, Brown and Jones:
A.are guilty of horizontal price fixing under the Sherman Act.
B.are guilty of vertical price fixing under the Sherman Act.
C.are guilty of price discrimination under the Robinson-Patman Act.
D.have broken no laws.
Which of the following is not exempt from the Do Not Call registry?
A.charitable organizations
B.certain political organizations
C.businesses seeking commercial contracts
D.businesses with whom the consumer has past commercial contacts
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 they will accept returns for thirty 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
Riparian rights have to do with:
A.water rights.
B.airspace rights.
C.subsurface mineral rights.
D.leasehold rights.
The corporation with the most shareholders is the:
A.public corporation.
B.professional corporation.
C.publicly held corporation.
D.nonprofit corporation.
Morris is a nonexempt employee with a salary of $400 a week based on a 40 hour
week. If he should work 50 hours in a particular week his paycheck should be for:
A.$450.
B.$500.
C.$550.
D.$600.
Countries that follow the common law system include the U.S., Canada, Australia, and
most of Latin America.
Which of the following is an example of a suggestive trademark?
A.Fruit of the Loom
B.Victoria’s Secret
C.eBay
D.IHOP
Max has contracted with Lew to have his house painted. The contract specifically stated
that the job was to be completed by 8/25. Lew completes the job on 8/26. Max has
suffered no loss due to the delay. The job was otherwise done exactly to all contract
requirements and specifications. If Max sues Lew for breach of contract due to the
missed completion date, were the courts to award damages, what type of damages
would most likely be awarded?
A.punitive damages
B.consequential damages
C.restitution
D.nominal damages
Fred is a corporate insider and has made some very large profits through the buying and
selling of his corporations stock during the previous six months. These profits would be
called:
A.short-term profits.
B.short-range profits.
C.short-spell profits.
D.short- swing profits.
For a writing to satisfy statute of frauds requirements under the UCC, it must include
each of the following except:
A.price.
B.quantity.
C.the signature of the party against whom enforcement is sought.
D.language that a reasonable person would believe constitutes an intent to form a
contract.
Which of the following must be approved by the FDA before it can be sold to the
general public?
A.eggs
B.food ingredients
C.produce
D.all products made from animals
Sanchez borrowed money from Fifth National Bank to buy a car. She defaulted on the
loan. Fifth National hired Rex’s Recovery Service to repossess the car for a set fee.
They were simply told to locate and seize the car. Rex’s would be classified as a/an:
A.agent/employee.
B.principal.
C.gratuitous agent.
D.independent contractor.
Trish makes $30,000 a year. The median income for her state is $28,000. She owes over
$50,000 in various debts and is considering ways to address her situation. Which of the
following is not one of her options to fix her debt issues?
A.attempt to negotiate a workout with her creditors
B.pay off her loans
C.Chapter 7 bankruptcy
D.Chapter 13 bankruptcy
Professor Patty is very distraught that three students in her class cannot afford to buy
the forty two chapter book. The book is used for two semesters although not all students
take the second course. She finally tells them that she will make copies of the twenty
one chapters to be discussed for them, at no charge. Professor Patty makes the copies
and gives them to the students prior to the beginning of each new chapter. If Professor
Patty is sued for copyright infringement:
A.she wins because the fair use doctrine permits use of the work for educational
purposes.
B.she wins because she is not copying the entire book but only twenty one chapters of it
and is not making a profit.
C.she loses because by making and distributing the chapters she is diminishing the
value of the book on the national market.
D.she loses because she is copying whole sections and a significant portion of the book.
Under Art. 9 of the UCC, which of these could not be used as collateral?
A.a car
B.a house
C.a fixture
D.cash
Your department secretary has called a local office supply company and ordered 100
reams of copy paper. The agreement is that the paper will be delivered to the
department office and a check for payment will be given upon delivery. On the way to
make the delivery the truck is in a crash and the paper is destroyed in a fire resulting
from the accident.
A.this is a shipment contract and the office supply company bears risk of loss
B.this is a shipment contract and your school bears risk of loss because the paper had
been set aside and tendered
C.this is a destination contract and because delivery had been initiated the school bears
the risk of loss
D.this is a destination contract and since the goods were never properly tendered, the
office supply company bears the risk of loss
In Cavel International, Inc. v. Madigan, Cavel, the only exporter of horsemeat to
Europe for human consumption fought an Illinois state law prohibiting the slaughter of
horses if the primary reason for slaughter was to produce horsemeat for sale. The court
decided:
A.Illinois had a legitimate interest in prolonging the lives of certain animals and there
was only a minimal effect on interstate or foreign commerce
B.Illinois could enforce the law intrastate but if the meat was exported the law
interfered with foreign commerce and was therefore invalid
C.Illinois could enforce the law if it extended to all animals but they could not protect
some and ignore others
D.Illinois could not enforce the law because Cavel was the sole company in the state
exporting meat and the law targeted them unfairly
Olivetone, Inc., a Florida corporation manufactures and sells sun tan products. Through
their web site they sell their products in bulk to a company in Finland, who then
distributes and sells the Olivetone products to Swedish companies for retail sale to
Swedish consumers. Both Finland and Sweden are in the European Union but the
United States is not. Should a dispute arise and Olivetone is sued, whose law will
apply?
A.because the country of reception approach would be utilized, Finnish law will apply
because the products initially went to Finland where the Finnish servers were located
B.because the country of reception approach will be utilized, Swedish law will apply
because the products were ultimately received in Sweden where the Swedish servers
were located
C.because the county of origin rule will apply, U.S. law will apply because the
defendant’s servers are in the U.S.
D.because the country of origin rule will apply, the International Court of Justice will
have to determine where the dispute actually arose and would award jurisdiction to that
country
Under the Revised Model Business Corporation Act, if a promoter acts on behalf of a
corporation knowing that incorporation has not yet been completed and liability occurs:
A.the corporation becomes liable once formed with the promoter shielded from liability.
B.the principals of the forming corporation are liable with the promoter shielded from
liability.
C.the promoter is jointly and severally liable for the liability incurred even after the
corporation is formed.
D.the promoter is personally liable with the principals shielded from liability.
In Sons of Thunder, Inc. v. Borden, Inc., it was alleged that Borden breached their
contract with the owners of Sons of Thunder by not purchasing the required amount of
clams. The court found that:
A.because Borden urged the plaintiffs to purchase bigger boats to handle ‘shuck-at-sea”
technology and then cancelled the ‘shuck-at-sea” program, buying less clams from the
plaintiff and then buying from a competitor, Borden had not acted in good faith.
B.Borden had breached an output contract by not buying all of the plaintiff’s clams and
buying from competitors.
C.purchasing larger boats by the plaintiffs was a business decision that Borden could
not be held responsible for.
D.Borden had breached a requirements contract by buying from competitors when the
plaintiffs still had available clams to sell to them.
In Raffles v. Wichelhaus, the court refused to enforce the contract for a boatload of
cotton, shipped to but refused by Wichelhaus, because:
A.the parties made a mutual mistake with regard to which ship named Peerless the
cotton was to be shipped on and the two ships sailed in different months
B.the parties made a mutual mistake with regard to the quality of the cotton as each ship
carried different grades of cotton
C.despite there being two ships named Peerless sailing on different dates, the contract
was oral and violated the statute of frauds
D.Raffles knew that there were two ships named Peerless but failed to notify
Wichelhaus constituting a fraudulent misrepresentation due to the withholding of a
material fact
Which of the following is rarely awarded in contracts cases?
A.consequential damages
B.compensatory damages
C.punitive damages
D.liquidated damages
Which of the following is a neutral requirement that is likely to result in disparate
impact?
A.females only
B.one year of prior experience required
C.physical strength test must be passed
D.American’s only
Brandi orally tells landscaper Mike “If you trim my bush I’ll pay you $50.00.” Mike
trims her bush. Which of the following is correct?
A.this was a unilateral contract
B.this was a bilateral contract
C.this was an implied contract
D.this was a quasi contract
Hillary is a nerdy bookworm couch potato who rarely goes out of her home except to
go to work as a deskbound CPA. She wears a sweater almost every day including
during the summer and is always complaining about being cold. Edmund, a coworker,
tells Hillary that he will give her $1M if she climbs Mt. Everest. Edmund doesn’t
believe that she’d even give the offer a second thought. Hillary, without saying anything
to anyone, starts an intensive training program to whip herself into shape and six
months later, during her vacation, in fact, climbs Mt. Everest. Upon returning to work,
she presents Edmund a picture of herself on the summit of Mt. Everest and demands her
$1M. Edmund tells her that they never had a contract so he owes her nothing and
Hillary claims that the money is owed based on promissory estoppel.
A.promissory estoppel only applies if Edmund was very rich because $1M is a lot of
money
B.promissory estoppel applies whether Edmund was rich or not
C.promissory estoppel does not apply because Edmond had no reason to believe that
Mary would rely on his promise
D.promissory estoppel does not apply because Mary must announce that she accepts his
offer for it to create an obligation to pay
The EEOC is a _____ member commission.
A.five
B.ten
C.fifteen
D.twenty
The World International Property Organization created an arbitration center in
Switzerland for the arbitration of each of the following except:
A.copyrights.
B.patents.
C.trademarks.
D.contracts.
Suds Corp. has just suffered a huge loss of revenue for three quarters and the
shareholders are furious. Much of the loss can be attributed to a board decision to
change the focus of the company from traditional lager beer to a lighter and smoother
brew. Unfortunately the new recipe alienated current customers and failed to bring in
new customers. Although Suds has announced that they will return to their original
product, the shareholders are claiming a violation of the board’s fiduciary duty of care
and they are suing the directors personally for their significant losses. What must the
shareholders prove to be successful? What defense is available to the directors and what
must they prove to prevail?
Use of unfair coercion to force another into a contract constitutes _______.
What are some of the ways that the Credit Card Accountability Responsibility and
Disclosure Act attempts to protect college students from deceptive practices by credit
card companies?
George is 85 years old and Grace, his wife, is 83. They are on a fixed retirement budget
and have no disposable income and they have no savings. Grace’s doctor informs her
that she requires a particular medicine that costs $84.00. They don’t have money to buy
the medicine, there are no relatives or friends to ask and there are no programs that can
provide them with the medicine money. Feeling he has no choice, George goes to the
local bank and robs it, handing the teller a note demanding $84 in small bills. Discuss
George’s action from a moral and ethical point of view.
In Palsgraf v. Long Island Railroad Co., would the case have turned out differently had
the package being held by the man being pulled onto the train been clearly and
distinctively marked, “DANGER – EXPLOSIVES”. Why or why not?
________ is an agreement between competitors to divide up markets or geographic
regions.
You are a defense attorney representing a man who has ignited a bomb in the public
building in the city of Xanadu, a small city. It appears that everyone in Xanadu knew
someone that died in the blast. The crime has been front page news every day for a year
and local television personalities have consistently ranted about your client’s guilt. You
want to have the trial moved to another city. What is your argument and should it be
successful?
The unlawful use of another’s intellectual property is called ______.
What is a pretrial conference, when does it occur, and what are its purposes?
Violations of safety statutes are sometimes referred to as negligence ______.
The case of Marbury v. Madison established the federal court’s power of _______.
A question put to voters during a state election to decide a particular issue may be
called a ballot initiative, a referendum or a _______.
Robin is the treasurer of Big Bottle Brewery, Inc. Big Bottle is a small local brewery
that has recently started and has minimal assets. At 4:30 pm one day, she realizes that
she hasn’t made an important bank deposit and only has one half hour to get to the bank.
She takes a corporate car and is speeding to the bank when she hits Gretchen, a
pedestrian legally in a cross walk. Gretchen is seriously injured and the car which then
careened into a pole is totaled. Gretchen sues both Big Bottle and Robin. The bank
which financed the car has also sued Big Bottle and Robin because Big Bottle stopped
making the loan installment payments after the accident and is in default. Discuss Big
Bottle’s and Robin’s liability, if any.
When a dispute arises between two parties, one party will typically make an informal
________ on the other party prior to initiating a law suit.
Following an investigation by the EEOC, should discrimination be found, the next step
for the agency is to begin _______.