Trade secrets are most frequently misappropriated in which of these ways?
a. An employee wrongfully uses or discloses such secrets.
b. A competitor wrongfully obtains them.
c. Through inadvertent disclosure in advertisements.
d. Both (a) and (b).
Of the following elements, which one is NOT required to create an enforceable trust?
a. Consideration.
b. Legal capacity.
c. Specific property.
d. A beneficiary.
Registration of securities calls for disclosure of which of the following?
a. A description of the registrant’s properties and business.
b. Financial statements certified by independent public accountants.
c. Information about the management of the registrant.
d. All of the above.
In the Shearson Lehman Brothers, Inc. v. Wasatch Bank case, the applicable defense
was:
a. a forged indorsement was ineffective to pass title.
b. the instrument was assigned rather than negotiated.
c. the fictitious payee defense.
d. the impostor rule.
The UPA provides that partners are __________ liable on all debts and contract
obligations of the partnership.
a. jointly
b. strictly
c. jointly and severally
d. partially
The __________ is responsible for enforcing federal anti-discrimination laws.
a. OSHA
b. Social Security Administration
c. EEOC
d. NLRB
If a company has assets of over $10 million but trades its stock over the counter, it is
nevertheless required to comply with the 1934 Act if it has:
a. 500 or more shareholders.
b. one class of stock with 500 or more shareholders.
c. 500 or more shares of stock outstanding.
d. 500 different investors.
Minority shareholders of N Corporation dissent to the corporation’s merger with J
Corporation. If the appraisal remedy is granted, the shareholders will be paid the:
a. par value of their shares.
b. stated value of their shares.
c. fair value of their shares.
d. accounting book value of their shares.
Where there has been informal rulemaking or informal adjudication by an
administrative agency and the decision by that agency is then appealed to the courts, the
court will generally apply what standard in reviewing factual determinations?
a. The unwarranted by the facts standard.
b. The substantial evidence standard.
c. The arbitrary and capricious standard.
d. The beyond a reasonable doubt standard.
Margaret told Bill she would give him her concert tickets. Later she changed her mind
and decided she wanted to use the tickets after all. Is Margaret required to give Bill the
tickets?
a. No, because there was no intent to make a present transfer.
b. No, because there was no delivery.
c. No, because there was no acceptance.
d. All of these are correct.
Negotiable instruments:
a. include drafts, assignments, and promissory notes.
b. are used primarily for smaller transactions.
c. in the form of checks have decreased in use since 1995.
d. have increased in usage to the point where they are now approximately equal to
usage of cash for payments.
Mary goes to her stockbroker, purchases 50 shares of stock, and instructs the broker to
register the shares in her husband Warren’s name. If this stock is intended as a
Valentine’s gift, Warren becomes:
a. a donee beneficiary.
b. a transferee.
c. a delegatee.
d. an assignee.
Eric bought a new snowmobile from the North Pole Manufacturing Company. After
buying the machine, Eric then modified the spark plugs and a few other things in order
to soup it up. In February, just after a snowfall, Eric was driving the snowmobile, when
it tipped over, trapping him beneath it. His leg was severely burned. Eric now wants to
sue North Pole for strict liability in tort. Eric:
a. will likely win the suit, because of the faulty design of the snowmobile.
b. will likely lose the suit, because the machine has been altered since its manufacture.
c. has assumed the risk of using the snowmobile.
d. cannot sue the manufacturer, because horizontal privity is lacking.
Most of the protections provided by the U.S. Constitution and its amendments apply
only to governmental action, which is referred to as:
a. due process.
b. state action.
c. equal protection.
d. separation of power.
Anita tells Bob that unless Bob pays her $5,000, she will tell his customers that he was
once arrested for shoplifting as a teenager. The fact that Bob shoplifted as a teenager is
true.
a. In most jurisdictions Anita has committed the crime of extortion.
b. Anita has committed the crime of defamation.
c. Anita has committed the crime of bribery.
d. In all jurisdictions in the United States, Anita would have to have received the money
from Bob to be charged with a crime.
NAFTA establishes a free trade area among the United States and Mexico but not
Canada.
Which of the following is correct with regard to partnership property?
a. Like partnership capital, it is a fixed amount set forth in the articles of partnership.
b. Unless contrary intention appears, property acquired with partnership funds is
partnership property.
c. Under the UPA, title to real estate purchased with partnership funds cannot be taken
in the partnership name.
d. If there is no express agreement whether property owned by a partner before
formation of the partnership and used in the partnership business is an asset of the
partnership, the fact that taxes, liens, and expenses have been paid by the partnership is
irrelevant.
Infringement of a mark occurs when:
a. a person intends to confuse purchasers.
b. it is proved that purchasers were actually confused by use of an identical or
substantially indistinguishable mark.
c. and only when, the mark is identical to another mark.
d. a person without authorization uses an identical or substantially similar mark that is
likely to cause confusion, to cause mistake, or to deceive.
Hal promises not to foreclose on a mortgage that he holds on an office complex that
Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel
the complex. Which of the following is correct with regard to Hal’s promise?
a. Hal’s promise not to foreclose is unsupported by consideration.
b. Hal’s promise is noncontractual.
c. Hal’s promise may be enforced against him based upon the doctrine of promissory
estoppel.
d. All of the above.
The transfer of a contract duty to a third party is known as a(n):
a. implied warranty.
b. assignment.
c. delegation.
d. novation.
Marilyn, George, and Christine pool their money to buy land to operate a vegetable
farm from which they plan to sell the produce and share the profits or losses. Are they
partners?
a. Yes, since they are associating to carry on a for-profit business which they co-own.
b. No, because they each control the use of the land.
c. Yes, because if there is a loss in the land’s value, they will all share that loss.
d. No, they are merely joint venturers.
Stephen and Martha have spent months looking for their dream home. One day they
saw it and fell in love with everything about the house, and they asked the Realtor to
draw up a purchase agreement, which they then signed. After signing the papers, they
asked the Realtor whether the house was in good shape. The Realtor said it was. When
the couple moved into the house, they realized that the basement had serious water
problems and that the roof leaked. They now want to sue the Realtor. What tort should
they consider? If they sue the Realtor for this tort, will they win? Why or why not?
Explain.
The Supreme Court in the SEC v. Edwards case held that an investment scheme
promising a fixed rate of return can be an ‘investment contract’ and thus a ‘security’
subject to the federal securities laws.
The 1990 Negotiated Rulemaking Act requires agencies to use negotiated rulemaking in
the majority of circumstances.
The form of business association known as partnership is a relatively recent creation,
being developed in the United States during the Industrial Revolution.
A warranty deed contains covenants of good title and quiet enjoyment of the land.
Title insurance protects an owner of real property from losses due to defects in title and
undisclosed liens or encumbrances.