The manager at an apartment complex has no prior criminal record but has just been
arrested for possession of child pornography. If he is convicted but given probation and
not jailed, the apartment complex may be liable if they do not fire him and he later
harms a child on the premises.
An option contract has to do with a contract that gives one of the parties a choice of
consideration to accept.
The name of an LLC must contain a designator such as “Company”, “Limited”,
“Limited Liability Company” or “LLC”.
The test for determining a monopoly under the Sherman Act is the entity’s share of the
relative market.
In United States v. Morton, Morton was declared a general partner despite all
paperwork including tax returns naming her as a limited partner because of her conduct.
The courts have very narrowly defined whether the Fair Labor Standards Act requires
that time commuting to work sites when performing work during the commute should
be compensated and no clear standard yet exists.
Jeff goes to a car dealership and the salesman tells him that the car he’s looking at is a
great car and an excellent value. The statements made by the salesman, if untrue, will
not be adequate to create either an innocent misrepresentation or a fraudulent
misrepresentation.
An agent may work for two principals at the same time if the agent deals fairly with
both.
Sylvia is a student who has parked her car in a university parking lot. To enter the lot
she had to swipe her ID card to gain access. During class, a thief has broken into her car
and stolen her computer. The school is liable to her under a bailment relationship if they
did not exercise proper care in the protection of her car.
Larry has had a few beers and is starting to get a bit drunk. He isn’t acting strange and
he’s conducting conversations with others slurring only an occasional word or two.
Larry, should he enter into a contract in this state would be considered mentally
incompetent and his contract would be void.
Intent to discriminate must be proven for a disparate impact case to be successful.
The Health Care and Education Reconciliation Act requires employers to provide health
care coverage to employees by 2014.
Peter and Paul are business associates. The police enter the business with a search
warrant because Peter is under investigation for a crime. When the police ask Paul to
answer some questions he agrees but one of the questions, if answered, might make him
culpable also. Paul must answer the question because he is not under investigation and
does not therefore currently have the right against self incrimination.
Assignments require the consent and agreement of all parties to the contract.
Historically, the only legal protection a consumer had against a seller that engaged in
deceit during a sale was a common law suit for fraud.
Only the Congress may enact securities regulations and only the courts may interpret
securities statutes.
Kathy is a college student who enjoys spending her summers at the beach. For the past
four years starting as a junior in high school she has worked as a waitress at a local
beach resort restaurant from mid-June through mid-August. If Kathy is injured while
working in the restaurant, she will be eligible for workers’ compensation benefits.
UCC gap fillers will not be used and are not applicable to contracts when the contract
clearly specifies a contract term or condition.
Misappropriation is a civil offense punishable by compensatory and punitive damages
but is not a criminal offense in any state.
The terms morals and ethics are synonymous.
Under the Age Discrimination in Employment Act, substantially younger is not defined,
but many courts follow the general rule that the age difference must be 10 years in order
to qualify as substantially younger.
The same act cannot cause a criminal and civil wrong at the same time.
Publishing a new rule in the Federal Register is the first step in the rulemaking process
after research and study is performed.
A rescission of a contract may occur when either party chooses to end the agreement.
Investors holding debt instruments are primarily interested in a fixed rate of return on
their investment regardless of the profitability of the company.
An express termination of the agency relationship by the agent is called a renunciation.
Linda’s company has a code of ethics and a separate code of conduct. If she would like
to be sure that she complies with the company dress code she would reference the code
of ethics.
Genericide occurs when a trademark has lost its distinctiveness and becomes a general
term describing a type of product rather than a specific company’s product.
Marbury v. Madison, decided in 1803, is no longer considered valid precedent and has
been preempted by statute.
An employee has filed a claim of discrimination with the EEOC. If the EEOC
investigates and determines that they will not follow through with a law suit
representing the employee, the employee has no recourse and cannot file a private law
suit.
Citizen suit provisions are rare in federal and state environmental statutes.
Craig is a licensed plumber and has a contract to install a replacement toilet for Mary.
When Craig realizes that he has booked two appointments simultaneously, he calls
Brian, another licensed plumber and asks him to install Mary’s toilet. Craig has assigned
his duties to Brian.
Corporations are afforded full First Amendment political speech protection.
If the seller ships conforming goods, the buyer has a duty to accept them and may not
reject the goods.
Most states do not have laws that require state and local governments to consider the
environmental impacts of their decisions when taking actions that might reasonably
affect the environment.
A person cannot be guilty of negligence if they have no duty owed to the plaintiff.
Typically, political speech by corporations is fully protected by the First Amendment.
When a United States company conducts business with a foreign company on-line,
United States law will automatically apply to the transaction should there be a dispute.
Many express warranties are made through advertisements.
Actual authority is the authority that the third party may reasonably assume that the
agent possesses.
What is the first step in the agency rulemaking process?
A.determine legislative authority
B.draft the proposed rule change
C.filing for a hearing to start formal rulemaking procedure
D.study and research
The NEPA procedures require that an environmental assessment be performed for
actions where:
A.the environmental impact is unknown.
B.the environmental impact is significant.
C.the environmental impact is little.
D.it is required in all instances.
Big Bucks Bank has published a detailed company ethical code based on an extensive
values management process. The code specifies that all dealings with customers are to
be fully documented and all dealings with the public are to be not only legal but should
be based on what is best for the consumer. Everyone who deals with a customer is
responsible for what they advise and must document conversations. Promotions and
rewards will be based on not only productivity but also on fairness and how the
customer is dealt with. At the weekly mortgage department meeting, Bill the supervisor
informs his department that the loan production is way down and that they need to do
whatever is necessary to step up the amount of loans granted. As a result, a number of
questionable loans are granted which make money for Big Bucks but result in families
being foreclosed on. Assuming the questionable loans to be unethically given, which
trait of an ethical company has been breached?
A.senior management has not articulated a clear vision of integrity
B.policies and practices of the mortgage department are not aligned with those of the
organization
C.responsibility is collective rather than individual
D.nothing has been breached as this is common amongst even the most ethical of
companies
Your school’s police/security force requires that all officers be over 6′ and over 200 lbs.
This
requirement creates a:
A.disparate treatment regarding men.
B.disparate impact regarding men.
C.disparate treatment regarding women.
D.disparate impact regarding women.
What is the name of the test used by the courts to analyze the validity of an agency’s
statutory interpretation and action?
A.Amoco test
B.Valero test
C.Chevron test
D.Texaco test
Commercially reasonable means:
A.getting the highest price possible for goods without violating the law.
B.charging a fair price for goods and not taking advantage of others in the industry.
C.observing industry standards and practices that may be unique to the particular
industry.
D.observing industry standards and practices that are generally accepted throughout
various industries as proper business practices.
Young has just fired Kathy who was her agent. Young places an ad in the classified
section of the various local newspapers stating that “Kathy no longer works for or
represents Young in any way”. Young would place this ad:
A.to eliminate any possible liability resulting from actual authority.
B.to eliminate any possible liability resulting from apparent authority.
C.to eliminate any possible liability resulting from ratification.
D.to eliminate any possible liability resulting from respondeat superior.
Which of the following is not a potential right a tenant has should a serious dispute
arise with the landlord?
A.claim a constructive eviction
B.withhold rent and remain on the premises until the dispute is resolved
C.pay rent into escrow and remain on the premises until the dispute is resolved
D.terminate the lease and sue the landlord for damages
Courts have a clear power to set aside an agency’s actions. They tend to use this power:
A.frequently.
B.only when faced with citizen suits.
C.sparingly.
D.on a somewhat regular basis.
The first LLP legislation was enacted in:
A.New York.
B.Texas.
C.Florida.
D.Iowa.
Which of the following is categorized as informal ADR?
A.negotiation
B.mediation
C.arbitration
D.med-arb
Lon has just come home from serving in the Marines and contracts with a local car
dealership to purchase a car. The car must be ordered and payment is to be made when
the car arrives. The next day, Lon receives orders to return to active duty. Realizing that
he doesn’t need the car, he brings Tony to the dealership and asks that Tony substitute
for him. Lon will take delivery and ownership of the car and Lon will pay the
dealership upon delivery. The dealership agrees to have Tony substitute for Lon. What
has occurred?
A.an assignment
B.a novation
C.a delegation
D.an accord and satisfaction
LLCs were originally created by the:
A.New York legislature.
B.California legislature.
C.Wyoming legislature.
D.Delaware legislature.
The Family and Medical leave Act applies to employers with a minimum of:
A.10 full time employees.
B.15 full time employees.
C.25 full time employees.
D.50 full time employees.
A business which exists in fact although not formally recognized is referred to as being:
A.de facto.
B.de jure.
C.de minimus.
D.de legal.
Mike is driving when he has an accident. Robin who is driving behind him sees the
accident and stops to help. She pulls Mike from the burning car and administers CPR
saving his life. Mike is a wealthy landowner and wants to reward Robin so he gives her
a home with the understanding that when she dies, the home will go back to Mike or if
Mike were deceased, to Mike’s heirs. Mike has granted Robin a:
A.fee simple.
B.fee tail.
C.life estate.
D.fee simple defeasible.
Whether a dividend is paid depends on:
A.the officers agreeing to pay the dividend.
B.the board of directors agreeing to pay the dividend.
C.the shareholders voting to award themselves the dividend.
D.the applicable state law which mandates whether dividends must be paid.
One who commits a tort is called the:
A.tortmaster.
B.tortfeasor.
C.tortdoer.
D.torteffector.
Harry wants to start a personal training business. He should choose a sole
proprietorship entity if:
A.he seeks limited liability.
B.he seeks perpetual existence for the new company.
C.he seeks the ability to raise capital by selling equity in the business.
D.he seeks to avoid management conflict.
Professor Smith has placed an ad in the school newspaper advertising a lap top
computer for sale. Janice is in Professor Smith’s econ class and approaches Smith
during office hours and purchases the computer. Professor Smith has been at the school
for over ten years and is popular with students and faculty. The price Janice pays is just
a bit below the fair market value of the computer. Six months later, the police come to
Janice’s home and inform her that the computer was stolen.
A.Janice may keep the computer because she bought it in good faith and had no reason
to believe that it had been stolen
B.Janice may keep the computer if the state statute regarding ownership by possession
of personal property had run
C.Janice will lose the computer because she had a duty to verify that Professor Smith
was the rightful owner of the computer
D.Janice will lose the computer because she can not obtain good title to stolen goods
If Gina, an American musician, sold copies of her latest album in Great Britain, her
music would be protected the same as a British citizen under what agreement?
A.Vienna Convention on the Law of Treaties
B.Paris Convention
C.Madrid Protocol
D.Berne Convention
A patent holder should mark their product as patented in order to achieve the fullest
protections. Each of the following is an acceptable means to mark the product except:
A.writing the word patent on the item or its packaging.
B.placing the patent number on the item or its packaging.
C.writing pat. on the item or its packaging.
D.placing a P in a circle on the item or its packaging.
Franchisors are regulated by the:
A.National Labor Relations Board.
B.Federal Trade Commission.
C.state law where the franchise is located.
D.state law where the franchisor is located.
Toy Tech (TT) has ordered 50,000 aluminum widgets from the Acme Widget
Corporation (AWC) with delivery to be made on November 1. These widgets will be
used in TT products to create toys for the holiday season. Under which circumstance
may TT claim an anticipatory repudiation?
A.the cost of aluminum has risen, lowering AWC’s profit margin, yet AWC insists that
they will honor the contract
B.the demand for widgets has suddenly decreased and TT isn’t sure they can sell the
50,000 widgets they ordered
C.AWC’s sole manufacturing plant has burned down on October 1st, yet AWC insists
that they will rebuild and honor the contract
D.TT has found another manufacturer who can provide less expensive widgets of the
same quality as AWC
What must an agency do to conduct an inspection of a business without permission
from the owners?
A.obtain an administrative warrant
B.an agency has authority under statute to conduct inspections without a warrant
C.an agency must obtain a police officer’s permission to conduct an inspection
D.an agency must send advance notice of the inspection
Tracy has agreed to lease a home from Henry for nine months at a monthly rent of
$1,000 per month.
A.this lease must be in writing because it pertains to real property
B.this lease must be in writing because it is for more than $500 per month
C.this lease must be in writing because the law requires leases to be written regardless
of duration or cost
D.this lease may be oral
In the civil system, the term litigation refers to:
A.matters that occur prior to the trial.
B.the trial itself.
C.both the pretrial and trial.
D.post trial enforcement of judgments.
Which of the following would generally not be patentable?
A.a mathematical formula that allows one to calculate the gross national product
B.a new business method that streamlines and improves production
C.a business process that changes water into wine
D.an engine that runs on water
Formation of an LLC requires the filing of:
A.Statement of Qualification.
B.Certificate of Formation:LLC.
C.Record of Business Creation.
D.Articles of Organization.
At this moment, your contract with your university or college is:
A.implied, unilateral and voidable.
B.express, bilateral and valid.
C.implied, bilateral and valid.
D.quasi, unilateral and voidable.
In SEC v. Switzer, et al., Switzer overheard a conversation while in a public place and
used information heard during the conversation to for a group to purchase stock in a
corporation that subsequently showed a substantial profit. When the SEC brought
charges of insider trading against Switzer the court said:
A.since Switzer was not a direct participant in the conversation, he could not be
prosecuted as a tippee.
B.Switzer was not a tippee because he did not know that the information overheard was
material and non-public.
C.the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his
company because he spoke about the company in a public place.
D.the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his
company and was guilty of insider trading because he was telling his wife material and
non-public information.
A professor at your school has discovered that if certain music is played in the
background during lectures, the room is lit to a particular level, the temperature is
maintained at a particular level and the professor speaks within a particular tonal range,
students understand and retain the information presented at an astonishing 84% higher
rate than students hearing the same lecture without these conditions. The professor has
even created a machine that converts the professor’s voice to the tonal range required.
The school is advertising that this process will be implemented in all classrooms and
freshman applications have more than tripled. Is this process protectable as a trade
secret and if so, how effective will the protection be?
In a destination contract, the ________ bears risk of loss until the goods reach the
destination.
What is the procedure for Chapter 7 filings?
How is the Revised Uniform Partnership Act similar to the Uniform Commercial Code
in terms of gap filling?
An irrevocable offer made by one merchant to another is called a _______.
What is the primary purpose of the Truth in Lending Act?
________ is typically defined as intentionally committing a wrongful act with intent to
harm.
The process of having the NLRB certify a union based on 50% of the authorization
cards indicating the employees want a union without an election is called _______.
Discuss the differences between the per se and rule of reason standards.
“Coppertone” is an example of a ________ trademark.
Stella is an agent for Howard. It has come to Howard’s attention that Stella has
breached the duty of loyalty and has used information that Stella should have passed on
to Howard for her own personal dealings. What remedies does Howard have if he
chooses to end the agency relationship?
A ________ allows the debtor in possession to avoid any obligation that he would
otherwise be forced to perform.
When a Mississippi defendant does business or extensively advertises in Louisiana,
they subject themselves to personal jurisdiction in Louisiana based on the concept of
_______.
Store management may detain a suspected shoplifter without liability for false
imprisonment based on the concept of ______.
If an employee in a unionized company believes that the employer is violating the
collective bargaining agreement, he or she may file a ________ and the union will
arbitrate the matter on behalf of the employee.
If a seller offers a written ________ warranty, the consumer transaction is subject to the
Magnuson-Moss Act.
Your school is embarking upon a new advertising campaign and has started using the
tag line “The Rolls Royce of Higher Education”. Assuming that Rolls Royce is a
registered trademark, can your school be liable for trademark infringement or trademark
dilution?
Describe how the federal government is protecting consumers online regarding spam.