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Kyle was eating clam chowder soup in a restaurant when a very small piece of bone
lodged in his throat. Fortunately, he was able to remove the bone with his fingers.
However, he was upset by the incident and sued the restaurant for negligence. The most
likely result would be:
a. Kyle will not collect any damages since he did not sustain any damages.
b. none of these answers are correct.
c. Kyle will collect damages if he proves it was possible to prevent tiny fish bones from
being present in clam chowder.
d. Kyle will collect damages, as res ipsa loquitur applies.
All of the following might be in the same collective bargaining unit except:
a. secretarial workers.
b. clerical workers.
c. plant workers
d. the department manager.
Marla applies for and receives a three-year loan through Sharkey Lenders for $5,000 at
27% APR.If the loan agreement violates the applicable usury statute, Marla may be able
to keep:
a. the interest that exceeds the usury limit.
b. all of the interest on the loan.
c. the interest and the $5,000.
d. Any of the answer choices are possible, depending on where the loan was made.
What are the elements of Interference with a contract?
a. There has to be an existing contract
b. must be injury to the plaintiff
c. the defendant induced one party to break the contract
d. all of these answers are correct
How is The Congress organized
a. 2 houses the senate and the house of representatives.with dozens of committees under
them.
b. 3 houses the judicial, senate and the house of representatives.with courts and
committees under them.
c. 2 houses with administrative agencies controlled by them
d. 1 house divided into 2 committees, the senate and the house of representatives.
The law that protects financial services from being infringed on is:
a. America Invents Act
b. Uniform Trade Secrets Act
c. Anticybersquatting Consumer Protection Act
d. The Lanham Act
You go to a theater to see a play one Saturday evening. You have:
a. purchased an interest called a "profit.
b. an easement by reservation.
c. a license to enter the theater.
d. no property right in the theater just by purchasing the ticket for the play.
Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the
office one night, Adam, wearing a mask, stepped out from behind some bushes. He
pointed a handgun made out of licorice at her and demanded her purse. He then pushed
the candy gun to her head and told her if she told anybody he'd kill her. Linda was very
scared during the whole incident. She did not think it was funny when Adam pulled the
mask off and took a bite out of the gun as he gave her the purse back. Did Adam
commit the tort of intentional infliction of emotional distress?
a. Yes, as his conduct was intentional.
b. Yes, but only if Adam intended to cause Linda serious emotional distress.
c. No, since he was only playing a practical joke.
d. No, since Linda was not physically hurt by Adam.
Trein, Inc. entered into a one-year, $1 million contract with Mia, a sports celebrity, to
promote Trein's products. E-presto Inc., a competitor of Trein, was interested in having
Mia promote its products and knew of her contract with Trein. E-presto offered Mia a
three-year, $5 million contract. Mia left Trein and signed with E-presto. Which
statement is correct?
a. Trein is liable for tortious interference with a contract.
b. Mia is liable for tortious interference with a contract.
c. E-presto is liable for tortious interference with a contract.
d. Both Mia and E-presto are liable for tortious interference with a contract.
The Sherman Act was enacted to deal with.....
a. Anticompetitive mergers
b. Price fixing
c. Discriminatory pricing
d. Tying arrangements
Liability policies, such as personal liability, professional malpractice, or business
liability insurance, do not protect the insured against:
a. a personal injury on the insured's property, such as the mail carrier who slips and falls
on the owner's sidewalk.
b. There own intentional torts.
c. a negligent act or omission by the property owner.
d. someone injured by the insured away from home or business.
The stated purpose(s) of Article 2 of the UCC is/are:
a. to simplify the law governing sales.
b. to permit the continued development of business practices through custom and usage.
c. to make the laws governing sales uniform among the various states.
d. All of the above are correct.
The privacy of e-mail is regulated by:
a. the federal ECPA.
b. spyware.
c. both a and b.
d. neither a nor b. There is currently no regulation of e-mail privacy.
Dr. Gavornne advises his very ill patients to prepare a living will. The purpose of a
living will is:
a. to make a disposition of property.
b. to express a desire not to have extreme medical treatment that would prolong their
lives.
c. to transfer life insurance.
d. to consent to organ donation.
Bob, a weak swimmer, ignored warning signs in a recreational swimming area and went
into deep water. He soon grew tired and realized that he could not make it back to
shore. Seeing Kelly, he cried out for help. Kelly, however, ignored the pleas. Bob was
finally saved by Dorothy, but suffered brain damage from being submerged during the
ordeal. Bob now sues Kelly for negligence for failing to try to save him. Bob will:
a. prevail because society places a duty on people to help each other and Kelly breached
this duty, resulting in Bob's injury.
b. lose because Kelly had no legal duty to rescue him.
c. lose even though Kelly had a legal duty to save him, since Bob will not be able to
prove that Kelly's failure to act was the proximate cause of his injuries.
d. lose because a reasonable person could not have foreseen that someone in a
recreation area could not swim well.
As assistant manager of a discount department store, you have been asked to review the
store's policy concerning shoplifters. (a) Discuss the legal standard used in most states
governing the detention of suspected shoplifters. (b) In reviewing the store's policy,
discuss some of the items that you will consider.
Tommie, a six-year-old child, was seriously injured when he stuck a fork into an
electrical outlet. His parents sued the restaurant where the incident occurred, claiming it
should have had child protective guards on the outlets. Whether the restaurant is liable
will be dependent upon whether:
a. the incident was reasonably foreseeable.
b. none of these answers is correct.
c. this is negligence per se.
d. this is an ultrahazardous activity.
Monic, a college professor, makes 30 photocopies of a magazine article and passes the
article out to her students. The students are assigned to read the article and write an
opinion paper about it. Has Monic violated copyright law?
a. Yes. Though the author will probably not enforce his or her rights under this
situation, Monic has technically violated federal copyright law.
b. Yes. Though educators have a right under the "fair use doctrine" to make limited use
of copyrighted materials, Monic violated the law when she made photocopies of an
entire article and distributed them to her students.
c. No. Monic has acted within the fair use doctrine.
d. No, as up to 50 photocopies of articles are always permissible.
A CPA's duty of care to a client most likely will be breached when the CPA:
a. gives a client an oral report instead of a written report.
b. gives a client incorrect advice based on an honest error in judgment.
c. fails to give tax advice that would save the client money.
d. fails to follow generally accepted auditing standards (GAAS).
A national magazine published an article about a famous television star. The television
personality is upset because the information contained in the story is not correct. If the
actress sues the magazine:
a. she will need to show that the magazine has a history of being "reckless" with facts
on a regular basis.
b. she will need to show that the magazine either knew the story was false or acted with
reckless disregard of the facts.
c. she will need to show that the magazine failed to attempt to verify the story by trying
to contact her or her agent before the story was printed.
d. she will need to show that the magazine could have discovered that the story was
false but failed to do so.
In a comparative negligence state, if the plaintiff in a negligence lawsuit is found to be
30 percent negligent, the plaintiff would recover:
a. 70 percent of the damages.
b. all of the damages.
c. none of the damages.
d. 30 percent of the damages.
Title VII does NOT prohibit:
a. discrimination in the workplace
b. sexual harassment
c. discrimination because of pregnancy.
d. employment tests.
Gateway sold a big-screen TV and entertainment center to Iris for $2000 on credit. Iris
signed a promissory note and gave Gateway a security interest in the TV and
entertainment center. Gateway filed a financing statement in the appropriate public
office. When Iris defaulted on her monthly payments owing a balance of $1780,
Gateway's attorney made arrangements to have the TV and entertainment center
repossessed. The attorney then placed classified ads in the local newspaper to sell the
goods. The attorney's fees are $300, the repo company charged $150, and the
advertising costs are $50.
(A) If Iris chooses to redeem the property, how much must she pay to Gateway to
recover the property?
(B) If Iris does not redeem and the TV and entertainment center are sold for $1750, how
will the money be disbursed?
Which of the following is true regarding an open price term?
a. It makes the contract unenforceable.
b. The price may be fixed by the seller.
c. The price is the "reasonable" price at the time of delivery.
d. The price is set by the buyer.
Richard wrote a song called "College Days." He copyrighted the composition and had it
professionally printed. A couple years later he was attending a business meeting about
1500 miles from his home. While sitting in a nightclub, he heard a small local band
perform a song called "College Memories." The music and words were extremely
similar to his song. The composer of "College Memories" claims he never heard of
Richard's song and that she is offended he would accuse her of stealing his work. If
Richard wishes to sue for copyright infringement, he must prove:
a. only that his song and the infringer's song are substantially the same.
b. that his work was original, and the infringer actually copied his work or that the
infringer had access to his song and that the two works are substantially the same.
c. that he sustained money damages as a result of the infringement.
d. that he registered the song for a copyright.
The amount of money that will restore a person who suffers damages to the position he
was in before the injury is called
a. Putative damages
b. Compensatory damages
c. Consequential damages
d. Economic damages
One morning, Miles placed a thumbtack on the chair of the office manager where he
worked. He had no quarrel with the office manager, but thought this would be funny.
Two days after sitting on the tack, the office manager was hospitalized with an infection
caused by the tack. Which of the following is correct?
a. Miles actions were negligent.
b. No tort has been committed.
c. Miles committed an intentional tort.
d. Miles is strictly liable.
Kjell is the vice president of international sales for Oxtren, Inc, a U.S. company. To
secure a multimillion dollar contract for his company, Kjell paid a Mongolian
governmental officer $10,000. Kjell:
a. has violated the Foreign Corrupt Practices Act.
b. has not violated the Foreign Corrupt Practice Act because the payment was a grease
payment.
c. has not violated the Foreign Corrupt Practices Act because the government official
was from Mongolia, not the United States.
d. has not done anything illegal because Congress has not ratified the Convention of
Combatting Bribery of Foreign Public Officials in International Transactions.
Who decides if a statute is constitutional?
a. President
b. Congress
c. Federal Judges
d. Administrative agencies
The Clean Air Act of 1970 requires the EPA to:
a. use a cost benefit approach in all EPA regulations.
b. to not get involved in the GHC controversy
c. establish national air quality standards.
d. permit all smokestacks in the United States
Sharon fell while making an inspection of a machine at work and in the fall, she broke
her arm. Can she collect workers' compensation for the time she had to be away from
work as she recovered?
a. Yes, since the injury occurred while she was engaged in her job at work.
b. Yes, if she can prove that the injury was caused by a fellow employee.
c. No, she can only receive compensation for her medical expenses.
d. No, since she should have been using a safety harness.
Inez contracted with Filippo Furnaces Co. for the installation of a new furnace. Inez
selected the furnace she wanted, accepting no suggestions from Filippo Furnaces'
heating engineer. The furnace operated fine, but it did not heat the entire house. The
size of the blower on the furnace was too small to accommodate the third floor of the
house. Inez sued Filippo Furnaces Co. for the breach of the implied warranties of
merchantability and fitness. What result?
Sean of Sean's Shrimp House was enjoying a cup of cappuccino while visiting with
Ollie at Ollie's Ocean Front Bar & Grill. During the course of their conversation, Sean
agreed to supply 100 pounds of shrimp per month for the next year to Ollie's restaurant
at the price of $50 per pound. When Sean got back to his office, he sent a written
confirmation of the agreement to Ollie. Six weeks after receiving the confirmation Ollie
wrote back, stating that he had not agreed to the price of $50 per pound. Is Ollie bound
to the confirmation?
Explain the difference between attachment and perfection.
A company that engages in unethical behavior may suffer severe consequences.
To be negotiated, bearer paper must simply be delivered to the recipient.
Auditors cannot protect themselves from liability to third parties by issuing a qualified
or an adverse opinion.
Jack and Jill were living together. Jack wanted to start a small retail store, but did not
have good credit. Jill, whose credit was excellent, signed loan agreements with Jack so
he could borrow the money to start the business. Jack used business cards that stated he
was the "owner" of the business. He and Jill filed separate tax returns. Jack stated he
was self-employed and claimed the business was a sole proprietorship. The money that
was earned from the store was placed into a joint checking account owned and used by
Jack and Jill. When there were significant decisions to be made about the business, such
as deciding to franchise the business, the decision was made jointly by Jack and Jill.
Five years after the business was started, Jill left Jack. She claimed she was entitled to
one-half the business's profits since she and Jack were partners. Jack disagreed and
claimed they never had a partnership. Discuss Jill's claim.
Tianhui was recently hired as a sales representative by Oxtron, Inc. Before leaving on
his first sales trip, a number of the other sales representatives take Tianhui aside and tell
him that it is customary for the sales representatives to "pad" (increase) their expense
reports each month by 20%. Use utilitarian ethics to decide what Tianhui should do
about the expense report he submits to Oxtron.
Norm and Frank have a legal contract that is silent with regard to an assignment of the
contract. In order for Norm to assign all or part of his rights under a contract, Frank
must grant permission to Norm to make the assignment legally effective.
Under a contract, Danielle is required to paint a room with paint chosen by the
homeowners, the Flynns. After Danielle paints the room according to the contract
requirements, her duties under the contract are discharged.
In a mixed contract involving goods and services, Article 2 of the UCC will govern if
the predominant purpose is the sale of goods.
A crime is a violation of statutory law.
A party engaging in ultra hazardous activity is always liable for any harm that results.
The UCC is federal legislation enacted by Congress.
Ambiguities in contracts are always interpreted in favor of the side that wrote the
contract, since they are the ones who know what the provision is supposed to mean.
