Nate works as a carnival barker. His employment contract specifies that he can be fired
if he “loses his voice. This is an example of:
a. vagueness.
b. extortion.
c. ambiguity.
d. duress.
An engagement letter is a written contract:
a. between an accountant and client.
b. in anticipation of marriage.
c. between a corporation and the AICPA.
d. intended to create a fiduciary duty of an accountant to his client.
Abbott provided evidence of fraudulent financial reporting about his employer, a
publicly traded company, to federal securities investigators. Abbott receives
whistleblower protection under:
a. the U.S. Constitution.
b. The Sarbanes-Oxley Act.
c. The Civil Service Reform Act.
d. None of the above.
Farmer Fred stay at a Quality Inn when eh goes to Des Moines for the pig auction. He
leaves his $25,000 Rolex in the room so as not to reveal him net worth tot he people at
the auction. When he returns the watch is gone. Who is liable
a. State statute may limit the Inns liability
b. State statute may have required Fred to leave the watch in the Inns safe.
c. Farmer Fred may not be able to hold Quality Inn liable
d. All of these answers are correct.
The Foreign Corrupt Practices Act makes it a crime:
a. for U.S. companies to sell unregistered stock in other countries.
b. for non U.S. companies to sell unregistered securities in the U.S.
c. to “bribe” foreign governments or officials.
d. to conspire to defraud stock purchasers in other countries.
what percentage of mammals/reptiles/birds and endangered?
a. 13/25/17
b. 5/2/1
c. 50/40/20
d. 25/22/13.
Mitch takes his two best suits to Quality Cleaners and receives a ticket as a receipt.
Quality tells Mitch his suits will be cleaned and will be ready to be picked up on
Monday. Another customer overhears the exchange and early on Monday goes to
Quality, convinces the worker he is Mitch but that he has lost his receipt. He identifies
and retrieves the suits, which happen to fit him perfectly, too. Quality Cleaners:
a. is strictly liable to Mitch for the suits.
b. is liable to Mitch only if Mitch can prove Quality was grossly negligent.
c. has no liability unless Mitch proves Quality did not use ordinary care.
d. will avoid liability if the receipt contained an exculpatory clause excluding gross
negligence.
Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of
champagne in 5 days. The parties negotiated and meant to say in the written agreement,
delivery in 50 days. If the evidence is clear that the two parties intended to agree to 50
days, the courts will probably apply the remedy of:
a. reformation.
b. rescission.
c. restitution.
d. reliance.
Maxine lost her job as an electrical engineer with a large company which had provided
health insurance benefits for Maxine and her family. She now:
a. must try to find insurance on her own or try to find another job with health insurance
benefits.
b. is protected under COBRA, which allows her continued health insurance coverage
for 18 months as long as she pays the cost.
c. is protected under COBRA, which requires her employer to continue her health
insurance coverage for six months under whatever copayment arrangements she had
while she was employed.
d. has some protection under the NLRA, which requires her employer to pay for
continued health insurance for three months following her termination if she did not
leave the company voluntarily.
The intent required to commit a burglary would be:
a. general intent.
b. reckless conduct.
c. strict liability.
d. specific intent.
An inmate in a state prison claims his United States constitutional rights prohibiting
cruel and unusual punishment are being violated by the state correctional facility. This
case:
a. may not be decided by a federal court since it involves a state facility.
b. must be decided by the state court where the inmate established residency before
going to prison.
c. is a federal question case over which the federal courts have jurisdiction.
d. cannot be heard, as prisoners lose the right to sue.
The federal judicial branch of the U.S. government:
a. interprets statutes.
b. passes statutes.
c. issues executive orders.
d. creates administrative agencies.
Wedney, Inc. has a purchase money security interest in one of Yoro Chicken’s meat
processing machines. Wedney filed a financing statement on the day the machine was
delivered, perfecting its interest. Great State Bank already had a security interest in the
machine. Which party has superior priority rights in the meat processing machine?
a. Wedney. A PMSI in collateral other than inventory takes priority over a conflicting
security interest if the PMSI is perfected at the time the debtor receives the collateral or
within 20 days after he receives it.
b. Great State Bank, since it had an earlier security interest.
c. The party who is first to repossess the collateral.
d. The creditors have equal priority.
Sara sent letters to 1,000 people offering to send them information that would guarantee
them a profit in the stock market if they sent her $99.95. If they sent her the money, the
brief, generally known information she sent them said: “Buy stocks when their prices
are low, and sell when the prices are high. Sara is guilty of:
a. mail fraud.
b. larceny.
c. embezzlement.
d. nothing. She merely thought of and executed a clever way to make money.
Which of the following is true?
a. After making a counteroffer a party may accept the original offer.
b. A rejection terminates the offer and ends the power to accept the offer
c. If the offer specifies no time limit, the offeree has 2 day to accept.
d. all of the above
Jake owns an old piece of exercise equipment. He has been using the equipment merely
to hang his clothes on, so Jake decides to get rid of the thing. He takes the unused
exercise machine to the landfill and throws it off the back of the truck. Maggie, a
teenager, is at the landfill rummaging for useful items. Maggie sees the exercise
equipment and decides it is just the thing to give her sister for Christmas, so she decides
to take it home. As she is loading it into the back of her pickup truck, Jake stops and
tries to get it back. The landfill owner sees the commotion and decides he would like to
have the equipment as well. Who has the best rights in the exercise equipment?
a. They are all joint owners.
b. Maggie.
c. Jake.
d. The landfill owner.
Laverne went to visit her best friend and while climbing the front steps to the apartment
building she falls because she was leaning on a loose hand rail. Who is liable?
a. Laverne. She should have looked where she was walking and been more careful
b. Both the tenant and landlord if the step are a common area
c. The landlord only.
d. The tenant as she should have reported the loose rail to the landlord.
George gave his great-grandfather’s pocket watch to Nurse Nadene because he expected
to die soon. This is:
a. a testamentary gift.
b. an inter vivos gift.
c. an executed gift.
d. a gift causa mortis.
Kelley went ice skating on a neighbors pond, but she fell through a thin area into icy
waters. Kelley did not have permission to be on the property, and the neighbor did not
even know that she was there. Is the neighbor liable for Kelleys injuries?
a. Yes. The neighbor should have posted “thin ice notices.
b. No. Kelley was a trespasser and the neighbor could only be held liable for
intentionally injuring her or for gross misconduct.
c. It may depend on Kelleys age.
d. Yes, the neighbor is strictly liable.
The issue of the constitutional protections afforded flag burning was addressed in:
a. Texas v. Johnson.
b. United States v. Lopez.
c. Marbury v. Madison.
d. Palmore v. Sidoti.
President Nixon issued wage-price controls in an effort to stabilize the economy. This
use of executive power was:
a. an illegal usurption of legislative powers which belong to the Congress.
b. a valid use of power, known as an executive order.
c. a valid use of power creating a treaty.
d. an illegal usurption of the regulatory powers of administrative agencies.
Roberto sued Monica for injuries received in a traffic accident. If Monica does not
respond to the complaint and summons served by Roberto within the prescribed time
limits, Roberto may obtain a:
a. judgment on the pleadings.
b. summary judgment.
c. pretrial conference.
d. default judgment.
A power of attorney may expire under all the following conditions EXCEPT:
a. the attorney in fact losing the license to practice law
b. being revoked by the principal
c. the incapacity of the principal
d. the death of the principal
The doctrine of precedent requires:
a. that the victim testify.
b. that the defendant testify.
c. a 12-member jury of the defendants peers.
d. judges to base rulings on previous cases.
What are the sources of United States current law?
a. the Constitution of the United States
b. Court decisions
c. Statutes
d. all of these answers are correct
The prevention of significant deterioration (PSD) program was established because.
a. Some states had better quality air than the EPA standards.
b. Some states were not following the clean air act.
c. Help defray the cost of enforcing the clean air act.
d. none of these answers are correct.
Which of the following is NOT a standard provision frequently found in contracts?
a. choice of forum.
b. choice of law.
c. choice of compensation..
d. arbitration.
Nikki was an tax accountant with HBR Accounting. Nikki decided to do some tax
consulting in the evenings and on weekends. HBR is unaware of Nikki’s consulting
work. Which statement is correct?
a. Nikki has not breached a fiduciary duty to HBR since her consulting is done after her
work for HBR.
b. Nikki has not breached a fiduciary duty to HBR since her behavior does not reflect
badly on the accounting firm.
c. Nikki has not breached a fiduciary duty to HBR since Nikki has a contractual
relationship with her clients, not her employer.
d. Nikki has breached a fiduciary duty to HBR since she is competing with HBR.
Pamela hired Lena to sell her business. Lena:
a. can buy the business as long as the price is fair.
b. can buy the business as long as she qualifies for financing.
c. can buy the business only with Pamela’s permission.
d. cannot buy the business under any circumstances.
In determining whether parties intended to reduce their agreement to writing, which of
the following factors would normally NOT be considered:
a. whether the type of agreement is one that is normally put into writing.
b. the complexity of the agreement.
c. whether or not the terms are complete.
d. the amount of money involved in the agreement.
The first step a court takes in choosing a remedy is to determine:
a. what interest it is trying to protect.
b. if the damages can be quantified with reasonable certainty.
c. if punitive damages should be awarded.
d. whether the injured party mitigated its damages.
Which of the following statements regarding a negligence case is correct?
a. A plaintiff must show that the defendant’s act was both the factual cause of her injury
as well as a foreseeable injury.
b. A plaintiff must show that the defendant’s act was the factual cause of her injury even
if the injury was not foreseeable.
c. A plaintiff must show that the defendant’s act created a foreseeable danger even if it
was not the factual cause of her injury.
d. A plaintiff does not have to show that the defendant’s act either created a foreseeable
danger or that the act was the factual cause of her injury.
The Marcel Company is opening an office in Mexico. The cost to obtain electrical
service is $500, but the clerk suggests that service could be started faster if an
additional $50 is paid, which the clerk will keep. If the Marcel official pays the
additional $50:
a. he will have violated the Foreign Corrupt Practices Act.
b. he will not have violated the Foreign Corrupt Practices Act because this would be
considered a “grease or facilitating payment, which is legal.
c. he will be guilty of violating the Foreign Corrupt Practices Act only if the payment
was illegal under the written law of Mexico.
d. he will be guilty of violating both the Foreign Corrupt Practices Act and the
Convention of Combatting Bribery of Foreign Public Officials in International Business
Transactions.
Agreeing not to open a competing business could be consideration.
Compare and contrast the perspectives of a lawyer and a client when approaching the
negotiation of a contract.
What is a limited liability company? Explain the advantages and disadvantages of this
type of business ownership?
In Chapter 11 only the debtor may propose plans of reorganization.
Identify and explain the parts of the following case name: Palsgraf v. Long Island
Railroad Co., 248 N.Y. 339, 162 N.E. 99, New York Court of Appeals.
The only function of a will is to dispose of a person’s property upon death.
Wearever Builders constructs new houses in the Oak Grove subdivision. Unless it
expressly gives a warranty to buyers, Wearever does not guarantee the adequacy of
materials and good workmanship in its new houses.
Charlene Brown has possession of a check made out to the order of Charlene Brown
(herself) which she received in payment for writing a manuscript for her publisher.
Charlene is a holder in due course and the publisher has no defenses to payment.
Charlene has an unconditional right to be paid for the check.
The Fourteenth Amendment to the Constitution of the United States is also know as the
equal protection Clause
The behavior of top executives regarding ethical issues has little effect on the behavior
of the employees of the organization.
Ron is an accountant who was contacted by Zebra Toy Company to prepare financial
statements. Zebra Toy Company told Ron that it wished to present these documents to
Lion Wholesalers, Inc., a large supplier of toys. If Lion is convinced that Zebra Toy
Company is financially solid, it will issue Zebra a large line of credit.
After Ron prepares the financial documents, Zebra presents the information to Lion
Wholesalers and also to Tiger Toy Company, another wholesaler of toys. Zebra wishes
to obtain a line of credit from Tiger as well as from Lion. If Ron committed a serious
error by overstating Zebra Toy Company’s financial soundness and the two creditors,
Lion and Tiger, are damaged as a result, can these third parties recover damages from
Ron? Explain.
Discuss how the Sarbanes-Oxley Act affects Haletronne Co., a publicly traded
corporation.
As with Title VII, a plaintiff under the Americans with Disabilities Act must first file a
charge with the EEOC.
Shareholders of S corps have the tax status and advantage of a corporation but non of
the protection from liability.
Prior to the Industrial Revolution, the primary law of employment was that, absent an
agreement otherwise, a worker was hired for a year at a time.
The Trimbles apply to Community Savings & Loan for an installment loan of $20,000
to remodel their bathroom. Discuss the disclosures Community is required to make.
The FTC can sue and prevent a business from continuing to violate FTC rules or
impose a fine for each violation of these rules.
The parties to a criminal trial are the government and the defendant.