The EPA brought an administrative action against Boch Industries for violating the
Clean Air Act. The administrative law judge ruled in the EPA’s favor. Boch Industries:
a. can appeal the decision to a U.S. Court of Appeals and then to the U.S. Supreme
Court.
b. can appeal to the U.S. Congress and then to the Chief Justice of the Supreme Court.
c. can appeal to the Chair of the EPA.
d. cannot appeal the decision.
A sales representative at Oxtren, Inc orally told the purchasing agent at Wety, Inc. that
its industrial saw is exceptional. Which statement is correct concerning the claim that
the saw is exceptional?
a. The claim is an express warranty.
b. The claim is an implied warranty of merchantability.
c. The claim is not a warranty because it is not in writing.
d. The claim is not a warranty because it is sales puffery.
In order to disclaim a warranty of fitness for a particular purpose, a merchant:
a. need do nothing; such a warranty will not exist unless the merchant intends to create
the warranty.
b. must make the disclaimer orally and directly to the buyer.
c. may disclaim the warranty with any language that is clear and conspicuous.
d. None of the above. Implied warranties cannot be disclaimed.
Grand Lighting Co. has filed a petition for voluntary bankruptcy under Chapter 7 of the
Code. The following property will be exempt from the bankruptcy process:
a. work tools.
b. up to three company cars.
c. up to $20,200 in the value of the companys real property.
d. All of the above.
e. None of the above.
Axle Corporation imports goods into the United States. Who is required to pay the duty
on the imported goods?
a. The importer, Axle Corporation.
b. The World Trade Organization.
c. Each party pays one-half the duty.
d. The exporter of the goods.
It was payday. Navidida decided to run some errands and then deposit her check in the
bank over her lunch hour. So that she wouldn’t have to spend too long at the bank,
Navidida indorsed the back of the paycheck as follows, “Navidida Jones,” before
leaving work. While window shopping, Navidida lost the check. Roger finds Navidida’s
paycheck.
(A) Will Roger be able to cash Navidida’s check?
(B) How could have Navidida indorsed the check so that she would not have to be
concerned about losing the check?
Valid defenses to charges of discrimination include all of the following, except:
a. Merit
b. Seniority
c. Test scores
d. Bona fide occupational qualification
Kelly is upset with her supervisor and believes his conduct violates the terms of her
union’s collective bargaining agreement (CBA). The union filed a grievance on Kelly’s
behalf. Who will conduct the grievance hearing?
a. The U.S. Court of Appeals.
b. The National Labor Relations Board.
c. A member of the company’s management team.
d. A replacement worker.
Rodney was employed by Deluxe Discount Store. Rodney’s manager directed him to
check the prices of dog food at Huge Savings Store. The manager of Huge Savings
Store saw Rodney writing down prices and asked him to leave. Rodney, fearful that he
would be fired by Deluxe, refused to leave. Rodney committed the tort of:
a. larceny.
b. trespass.
c. misrepresentation.
d. conversion.
What is judicial review?
a. When a judge reads the jury verdict to the courtroom.
b. When an appellate court reverses the results of a trial court
c. When a federal court rehears a state case.
d. Congress approves the presidents appoint of Federal judges
To prove a disparate impact case, the plaintiff must:
a. only show that the employer has a rule that excludes too many people in a protected
group.
b. show that any reasoning presented by the defendant is just a pretext, not legitimate
reasons for the treatment.
c. provide a witness who testifies that the defendant intentionally discriminated.
d. prove that the defendant has discriminated similarly in the past.
Luella just purchased 5 shares of common stock in TriColor, Inc. for $250. Luella has
the right to:
a. manage the day-to-day business of the corporation.
b. set executive compensation.
c. require that a proposal be placed in the companys proxy statement to be voted on at
the shareholder meeting.
d. vote to elect directors.
Intellectual property:
a. producers are likely to be adequately paid in the free market.
b. production is not subsidized by the government.
c. typically is expensive to produce but cheap to reproduce and transmit.
d. typically is expensive to produce, copy, and transmit.
Can-Spam is a federal statute that:
a. Prohibits spam
b. Regulated that all commercial email must have an opt out system
c. Requires that all email must have a P.O.Box or physical address of the company.
d. None of these answers are correct
Roger assaulted Jim in a tavern, causing medical expenses and lost wages. Which of the
following is true?
a. Roger can be prosecuted by the state for a criminal offense and Jim may sue him for
money damages.
b. If Roger is convicted of criminal assault, Jim is not allowed to sue him for money
damages since that would violate the double jeopardy clause of the Constitution.
c. If Jim refuses to press charges against Roger, the state cannot initiate a criminal
proceeding against him.
d. Jim can either elect to sue for money damages or proceed with criminal charges.
Don runs a construction company. He hires people to work on his projects and tells
them they are all “independent contractors.” Legally, they are not independent
contractors since Don tells the workers when to come to work, how long to work, what
days to work, what they are to do each day, and so forth. At the end of each week, Don
pays his workers in cash rather than with a check. Also, he does not withhold any state,
federal or local withholding tax (since he claims the workers are independent
contractors). Which statement is correct?
a. Don has committed both unethical and illegal conduct.
b. Don has committed unethical conduct, but it is legal.
c. Don has committed ethical conduct but it is illegal.
d. Don has committed both ethical and legal conduct.
The United States Supreme Court has the power to:
a. appoint judges to serve on the Supreme Court.
b. declare an act of Congress unconstitutional.
c. issue executive orders.
d. ratify treaties.
Griffith Manufacturing ships 40 crates of goods by Trusty Shipping, a common carrier.
Trusty offers Griffith a shipping rate of $725 for a limited liability of $5,000 or a rate of
$975 for full liability for any harm to the goods. Griffith chooses the $725 rate. In
transit, Trustys driver has an accident during an ice storm and all of Griffiths goods are
destroyed, causing a loss of $12,000. If Griffith sues Trusty:
a. Trusty will be liable for only $5,000 because a common carrier is allowed to limit its
liability by contract.
b. Trusty will be liable for the full $12,000 because common carriers have strict
liability.
c. Trusty will automatically be liable for the full $12,000 under the Carmack
Amendment.
d. Trusty is subject to normal bailment rules and can escape liability for any damage to
the goods by proving that it exercised due care of the property and that the loss was
caused by an act of God.
If Walter becomes incompetent to manage his affairs:
a. his chosen attorney-in-fact can make decisions for him if he appointed the person in a
durable power of attorney with a springing power to become effective upon Walters
incompetence.
b. a court will appoint a guardian if Walter had no power of attorney.
c. his will becomes effective, and his executor or executrix will manage his business
and personal decisions.
d. Both a and b are correct.
Which of the following may not be used as collateral within the scope of UCC Article
9?
a. Certificates of deposit.
b. Accounts receivable.
c. Goodwill.
d. A 250-acre farm.
In order to constitute a valid gift:
a. the donor must intend to transfer ownership of property immediately.
b. the donee must accept the gift.
c. the donor must deliver the gift property to the donee.
d. All of the above are necessary for a valid gift.
In a civil case, the plaintiff must prove the case:
a. by a preponderance of the evidence.
b. by clear and convincing evidence.
c. beyond a reasonable doubt.
d. None of the above; the burden of proof is on the defendant.
An S Corporation cannot have more than ____ shareholders.
a. 100
b. 75
c. 50
d. 25
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 concerning the
bulletin issued by Vicy?
a. Vicy has committed an unfair labor practice. Vicy must remain neutral during the
organizing drive.
b. Vicy has committed an unfair labor practice. The bulletin constitutes outrageous
interference with the union organizing campaign.
c. Vicy has not committed an unfair labor practice. An employer may vigorously
present anti-union views to its employees.
d. Whether Vicy has committed an unfair labor practice depends on whether the bulletin
was approved by the NLRB.
What powers does the President have?
a. Nominate cabinet heads
b. Veto statutes passed by congress
c. Negotiate an international treaty
d. All of the above
After a unions collective bargaining agreement expires, A union declares it will be
engaging in a strike Which statement is correct?
a. Many states prohibit public employees from striking.
b. Management does not have the right to hire replacement workers for this type of
strike.
c. After this type of strike the employer is not obligated to hire back the striking
workers.
d. Management may not lock out the employees.
Advantages of Alternative Dispute Resolution (ADR) include:
a. ADR is faster than litigation.
b. ADR keeps the parties talking rather than fighting.
c. ADR is less expensive than litigation.
d. All of the above are advantages of ADR.
What is not required to establish promissory estoppel?
a. A promise made by the defendant.
b. A promise made by the plaintiff in response to the defendant’s promise.
c. Reliance on the defendant’s promise.
d. Enforcing the promise is the only way to avoid injustice.
In the case of scriveners errors (commonly known as typos), a court will usually:
a. reform the contract if it is clear that the mistake is not what the parties intended.
b. instruct the parties to rewrite the contract without the errors.
c. enforce the contract as written.
d. throw out the contract completely.
In the Albinger v Harris case:
a. there was a bailment of a ring and the court had to decide who paid for the diamond
which was lost.
b. the court stated had to figure out how to reimburse a bride who was left at the alter.
c. the court had to decide whether an ex-fiance could keep an engagement ring.
d. the court found that the cause of a fiance resulted in her being able to keep all the
property acquired while they lived together.
Maude was denied employment with Trucks R Us as a warehouse worker because she
didn’t meet the weight requirement of 160 pounds. Trucks argued the weight
requirement was reasonable because warehouse workers often have to lift things
weighing up to 100 pounds. If she sues Trucks, she will probably:
a. lose, as the weight requirement seems like a reasonable occupational requirement..
b. lose, as the 160-pound requirement doesn’t discriminate.
c. win, as the weight requirement is discriminatory and doesn’t appear necessary for the
requirement of lifting 100 pounds.
d. win, as the employer specifically cannot have a weight requirement.
How many countries belong to the European Union?
a. 50
b. 100
c. 27
d. 5
Which of the following would be notice of an overdue instrument?
a. Taking a demand instrument after a request for payment is made and denied.
b. Taking an instrument one day after the due date.
c. Taking a check 91 days after its issue date.
d. All of the above illustrate overdue instruments.
Under the Business Judgment Rule:
a. Managers have to act in good faith
b. Managers might have to prove how their decisions was fair to the shareholders.
c. Managers will not be held liable for the damage their decisions cause the company.
d. All of the above
A third party beneficiary’s status occurs:
a. after an assignment and delegation.
b. when the third party is informed of the contract.
c. when the third party beneficiary agrees to the contract terms.
d. when the contract is created.
Teresa is suing her accountant for fraud. To win, Teresa must show that she justifiably
relied on the accountants fraudulent statement.
Bagsby owns a business selling insects for organic gardening. Bagsby is seeking a loan
from First Natural Bank. The loan officer is asking that the loan be secured by Bagsby’s
inventory of insects, now owned or hereafter acquired. In order to do this, a new
security agreement will need to be signed each time Bagsby gets new insects or sells his
insects.
In a Chapter 13 bankruptcy, creditors cannot force a debtor into bankruptcy; nor can
they vote to confirm or reject a plan of reorganization.
Deontologists would agree that the increasing medical concern over obesity in the
United States justifies federal regulation of high fat, high sugar, low nutrition food
advertising during childrens television programs.
If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials
that infringe his copyright, he is entitled to a jury trial if the value of the materials is
over $100.
Term life insurance premiums are paid only for a certain length of time, or “term but the
coverage lasts for the insureds entire life.
Injunctions are commonly used by courts to force employees to complete their
contractual obligations with their employers.
Most contracts are discharged by mutual agreement.
The Constitution ensures that the states retain all power not given to the national
government.
Sara decided to incorporate her business under the name Gomo, Inc. Before Gomo was
incorporated, Sara signed a contract in the name of Gomo, Inc. to lease a store front.
Sara did not tell the other party that Gomo was not yet formed. Sara is personally liable
on the lease.
Generally, consumers are not adversely affected by tariffs since tariffs affect wholesale
prices, not retail prices.
Res ipsa loquitur shifts the burden of proof from the plaintiff to the defendant.
Briefly discuss the limitations on a corporation electing Subchapter “S” status.
Discuss two types of misrepresentation and how they differ. List the three things a party
must show to rescind a contract based on misrepresentation.
Estate planning has two primary goals: to ensure property is distributed as the owner
desires and to minimize estate taxes.
Corporate shareholders who undercapitalize their corporations and do not keep their
corporate books are in jeopardy of having their corporation pierced and becoming
personally liable for the debts of the corporation.
Christy and Sylvester trade movies by downloading each others movie files. If the
copyrighted material has a retail value greater than $1,000, Christy and Sylvester are
subject to criminal penalties under the No Electronic Theft Act, even if they had no
profit motive in reproducing the movies.
Margo is in possession of a check issued to her by Felix. The check states, “Pay to the
order of Margo.” If Margo wishes to transfer the check to Pete to pay a debt she owes
him, all she needs to do is strike out her name on the front of the check, write in Felixs
name and give it to him.