The concept of stare decisis focuses most on:
a. predictability.
b. flexibility.
c. legislative intent.
d. change.
Nestles sold a drink called Boost Kid Essentials, which contained probiotics and
claimed that Boost would prevent children from getting sick or missing school,
assertions for
which the company had no evidence. The FTC ruled that:
a. the advertising was not deceptive because it did contain probiotics which were good
for the childrens health.
b. the advertising was misleading, but was not likely to make a consumer really believe
Boost Kids Essentials could keep their kid from getting sick.
c. the advertising was deceptive, and the FTC required the company to specifically stop
claiming such health benefits.
d. None of the above
Negligence concerns harm that:
a. is unforeseeable.
b. arises intentionally.
c. arises by accident.
d. is always substantial.
Iris received a discharge under a Chapter 7 bankruptcy. She cannot receive another
discharge under Chapter 7 for at least:
a. six years after the prior filing.
b. eight years after the prior filing.
c. ten years after the prior discharge.
d. She cannot file another Chapter 7, but could file a Chapter 11 or 13 bankruptcy.
Pablo, a resident of New Mexico, while driving through Arizona was struck by a SUV
driven by Dick, a resident of California. Dick was speeding when the accident
happened and Pablo suffered severe injuries that ruined a potential acting career. Pablo’s
damages are estimated at $200,000. Discuss the court system(s) in which Pablo may
bring a lawsuit.
The central issue in the FTC v. Direct Marketing. case involved:
a. whether the writings and research of an individual. not a doctor were sufficient to
support health claims.
b. the scientific evidence necessary to make health claims.
c. whether calcium had any curing effect at all.
d. whether puffery was a valid defense to a deceptive trade practices claim
Which type of joint ownership can be left to someone else in a will.
a. Joint Tenancy
b. Tenancy in Common
c. Both a and b are correct
d. Neither a or b is correct
What is a major argument against the GATT Treaty?
a. The United States will have to compete against countries with unlimited pools of
exploited labor.
b. The United States will lose millions of jobs involving low-end employment and these
types of workers are least capable of finding other employment.
c. Both a and b above are major arguments against GATT.
d. Neither a nor b above is a major argument against GATT.
Ron and several fellow workers of Vicy, Inc., a small manufacturing company, wished
to organize a union. When Vicy learned of this activity, it issued a bulletin to all
workers stating that a union will only hurt the company and that “we are a family that
can solve any problems ourselves — we do not need union activists from outside our
company trying to tell us what to do!” Which statement is correct?
a. As a small family business, Vicy can obtain an injunction halting the unionizing
drive.
b. If the union will hurt the company, Vicy can obtain an injunction halting the
unionizing drive.
c. If union activists from outside the company are involved in the unionization drive,
Vicy can obtain an injunction halting the drive.
d. The employees have the right to organize a union, regardless of Vicy’s status.
Mulcare Corp. started a compliance program to prevent and detect criminal conduct
within the company and had specific, high-level officers in charge of overseeing the
program. The company effectively communicated the program to its employees and
monitored those employees who were in a position to cheat. It promptly disciplined
anyone who broke the law. One effect of having this program is:
a. federal investigators would no longer investigate the company since Mulcare could
take care of any problems internally.
b. federal investigators might be convinced to limit any prosecution to those directly
involved rather than attempting to get a conviction against high-ranking officers or
against the company itself.
c. the Federal Sentencing Guidelines no longer apply.
d. any cases would be prosecuted in state, rather than federal, court.
Wanderlust gave a security interest in his Conestoga wagon to Iowa Bank who
perfected its security interest by filing a financing statement with the appropriate
officials in Iowa. What is true about the filing of this security interest.
a. It is effective for 5 years.
b. after 5 years the security interest expires and cannot be refiled.
c. it must be filed where the collateral is located.
d. It is effective for 30 years.
Jackie and Robert own an apartment building as partners. Cyndi, one of their tenants,
gives Robert written notice she will be moving out at the end of the following month.
Robert did not tell Jackie that Cyndi was moving. Has Cyndi properly given notice to
the partnership?
a. Yes. Notice to Robert was notice to the partnership.
b. Yes, if it is determined that Robert acted negligently in failing to notify Jackie.
c. No. Cyndi has an obligation to notify both Robert and Jackie.
d. No. Jackie was not notified since Robert never told her Cyndi was moving.
Stacy believes her rights as a union worker have been violated by her employer. If the
specific rights are addressed by both state and federal law:
a. the state law will apply.
b. the federal law will apply.
c. both state and federal law will apply.
d. she may choose which law, state or federal, will govern her rights.
Xavier wants to work at the CIA. Xavier knows there is a federal law, the Employee
Polygraph Protection Act, prohibits private employers from imposing or suggesting that
employees take polygraph tests. Nonetheless, CIA officials tell Xavier that he must
submit to a polygraph test or he cannot be considered for a position at the CIA. What
must be true?
a. The law exempts the CIA.
b. The CIA considers applicants to be criminal suspects.
c. The CIA considers Xavier to be a criminal suspect
d. Xavier must take the test, but he has a remedy if he is refused employment based on
the polygraph test results
When a principal is partially disclosed:
a. the agent and principal will be jointly and severally liable on the contract.
b. the agent and principal will be only jointly liable on the contract.
c. only the principal can be liable.
d. only the agent is liable.
Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half
payable now as a down payment; one-half payable in 30 days at the time of closing
when the title will be transferred. The buyer, Willis, is to have possession immediately.
Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At
the time of closing, Willis has made a substantial beginning on the house. However,
Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This
contract is:
a. enforceable, because the statute of frauds does not apply to this interest in land.
b. unenforceable, because there is no writing signed by Leslie.
c. enforceable, because Willis has partially performed the oral contract and made
improvements on the land.
d. unenforceable, because the parol evidence rule applies.
A college professor copies seven chapters from a book called “How to Get Better
GradesA Creative Approach to College Success!” There are ten chapters in the book.
She incorporates this material into a packet of material that is printed in her college’s
copy center. The packet is then placed in the local book store and is placed on the
required materials list for students to purchase. The author of the book on getting better
grades believes the professor has violated his copyright.
a. The author is right. The professor should not have copied the chapters and placed
them for sale in the bookstore.
b. The author is technically correct. However, even though an infringement occurred, he
cannot sue the professor since educational personnel are exempt from liability under
copyright law.
c. The author is not correct. Under the “fair use doctrine” a college professor can copy
material and distribute it to students for educational purposes.
d. The author is not correct. It does not appear that the professor actually made any
money from the alleged copyright infringement.
LLCs have legal uncertainty because
a. they are relatively new forms of business
b. There is not a widely developed body of law to look to for legal guidance in setting
them up and enforcing them.
c. There is no defined duty of managers to members of the LLC.
d. all of the above
Which of the following statements about torts is correct?
a. A tortious act is always a criminal act.
b. A criminal act is always a tortious act.
c. A tortious act may also be a criminal act.
d. All the above are correct.
When determining if an accommodation for a disability is reasonable, courts consider:
a. the cost of the accommodation
b. if it imposes undue hardship on the company
c. fairness to other workers
d. the value of the employee
Ethics is the study of:
a. sovereign immunity.
b. how people should act.
c. respondeat superior.
d. victimization.
The Children’s Online Privacy Protection Act prohibits Internet operators from
collecting information from children under what age without parental permission?
a. 18
b. 16
c. 13
d. 10
The advantages of trademark registration include all EXCEPT:
a. potential damages are higher.
b. after five years the mark becomes almost impossible to challenge.
c. it allows the trademark owner to use the TM symbol to put others on notice of the
protection.
d. the mark is valid nationally.
Criminal liability for accountants:
a. is not an option under securities law; there is only civil liability.
b. is possible under the Securities Act of 1933, the 1934 Act, state securities laws, and
the Internal Revenue Code.
c. may result in fines but not imprisonment from violation of the federal securities laws.
d. will result from violation of the accountant-client privilege under federal law.
Mega Corp. hired permanent replacement workers when its union went out on strike
seeking better medical and retirement benefits. After the strike is over, Mega Corp.:
a. must give the striking employees their jobs back since this was an economic strike.
b. must give the striking employees their jobs back since this was an unfair labor
practices strike.
c. may hire additional workers without considering the striking employees who want
their jobs back.
d. does not have to give the striking employees their jobs back since this was an
economic strike.
Judicial review can best be described as the power of federal courts to:
a. review state court decisions.
b. review state executive action.
c. review state and federal legislative and executive action.
d. none of the above.
What rights are protected by the First Amendment
a. Religion
b. Assembly
c. Flag burning
d. All of these answers are correct
Which of the following protects e-mail messages from unauthorized interception?
a. The First Amendment.
b. The GLB Privacy Act of 1999.
c. The Electronic Communications Privacy Act.
d. COPPA.
Which of the following of the bankruptcy process occurs first:
a. the submission of a plan of repayment.
b. the bankruptcy courts issuance of an order for relief.
c. a meeting of creditors.
d. the appointment of a trustee.
An assignment:
a. is generally revocable if it is gratuitous and is either oral or written.
b. for consideration is irrevocable.
c. becomes valid when the obligor receives notice of the assignment.
d. must follow formalities.
If a bailment is for the sole benefit of the bailee which is the level of care he is required
to use?
a. Extraordinary care
b. ordinary care
c. slight care
d. no care
The landmark federal labor statute that requires financial disclosures by union
leadership and guarantees union members free speech and fair elections is the:
a. NLRA.
b. Labor-Management Relations Act.
c. Labor-Management Reporting and Disclosure Act.
d. Norris-LaGuardia Act.
Nikes “Just do it is an example of a:
a. trademark.
b. patent
c. copyright
d. domain name
A misdemeanor is distinguished from a felony based upon:
a. the rules of evidence.
b. the length and place of possible imprisonment.
c. the burden of proof.
d. the type of intent.
Self dealing by a manager of a corporation:
a. must be approved by at least one directors of the corporation
b. cannot be mad valid by the shareholders.
c. always violate the corporate opportunity doctrine.
d. must be entirely fair to the corporation.
The landlord’s duty to provide quiet enjoyment of the premises and the landlord’s duty
to deliver and maintain the premises in a habitable condition are one and the same.
The 1933 Act prohibits fraud only in transactions involving registered securities.
To form an LLC, a charter but not an operating agreement must be filed with the
Secretary of State in the jurisdiction where the business will operate.
Patents and copyrights are considered goods in which a security interest can attach and
be perfected.
Good Faith means not only that someone not have notice of dishonesty in a transaction
but the transaction must also have all appearance of commercial reasonableness.
Alicia and Ted have a written agreement wherein they will share the losses of their joint
business. This agreement is strong evidence they are partners.
Identify and discuss the primary sources of contemporary U.S. law.
Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the
entrance of the restaurant. Even though no employee of the restaurant is present, the
provision of the cloakroom makes Jerry think it will be safe. In this situation, the
restaurant is a bailee of Jerrys coat.
Hankrin Corp. is incorporated under Delaware law and has its principal place of
business in Annapolis. For diversity purposes, it is considered a resident only of
Maryland.
Alex worked for years for MegaCorp. During his employment with MegaCorp, he
learned a great deal of confidential information and knew that if this information got
into the hands of competitors or the general public, MegaCorp could suffer great
business losses. Alex claims that he was wrongfully fired by MegaCorp and accordingly
he believes he has no obligation to MegaCorp to keep any information he acquired with
them as confidential. MegaCorp claims that Alex is under a continuing duty to keep
confidential information secret, even though he is no longer with the company. Who is
right? Why?
Immanuel Kant was a German philosopher who was a proponent of utilitarian ethics.
The cost-benefit trade-off is particularly complex in environmental issues because those
who pay the cost often are not the ones who receive the benefit.
Mark and Cynthia work for Bryson Supply Co. If the company files for Chapter 7
bankruptcy before paying their last month of wages and benefits, will they be able to
recover anything from the company?
To be a close corporation, the business must not have publicly traded stock.
Provisional patents are good for one year.
The management of Northeastern Manufacturing may not close one of its
manufacturing plants without bargaining that issue with the union if its workers are
represented by a collective bargaining unit.
Congress can create a statute on any topic at all.
A merchant is someone who routinely deals in the particular goods involved, or who
appears to have special knowledge or skill in those goods, or who uses agents with
special knowledge or skill in those goods.
Explain the difference between a debit and a credit card and discuss the potential
liability for a lost or stolen card.
The union representing workers at Blue Ridge Co. were unable to reach a collective
bargaining agreement with management. The union may legally stage a strike in which
members stop working but remain at their job posts, physically blocking replacement
workers from taking their places, so the strike is more effective.