Kimberly, the owner of Littleton Cinema, trusts Max to manage the theater’s daily cash
flow. One night, without Kimberly’s knowledge or consent, Max takes and keeps
$1,000 from the receipts. This is most likely
a. embezzlement.
b. larceny.
c. robbery.
d. burglary.
Answer:
George borrows funds from Hometown Credit Union (HCU) to buy real property.
George signs a written instrument that gives HCU an interest in the property as security
for the debt’s payment. This is
a. a mortgage.
b. an artisan’s lien.
c. a workout agreement.
d. a suretyship arrangement.
Answer:
A statute enacted by the Arizona state legislature to regulate trucking affects interstate
commerce. In evaluating this statute, the courts will balance the burden that it imposes
on interstate commerce against
a. the courts’ authority to determine that a law is unconstitutional.
b. the purpose of interstate commerce.
c. the state’s interest in regulating the matter.
d. the statute’s impact on noneconomic activity.
Answer:
ConnectWeb, Inc., an Internet service provider (ISP), supplies information to the
Federal Trade Commission concerning possible unfair or deceptive conduct in foreign
jurisdictions. For this disclosure, federal law gives ConnectWeb and other ISPs
immunity from liability. This is
a. goodwill.
b. fair use.
c. a safe harbor.
d. a license.
Answer:
Clean n’ Green, Inc., operates a chain of car washes throughout the United States. The
government entity that is most likely to be involved in regulating the chain’s
environmental impact is
a. Congress.
b. federal and state regulatory agencies.
c. local chambers of commerce.
d. local police departments.
Answer:
Jewelry & Coin Company hires Kelly Ann to buy gems and precious metals from
various sources on its behalf. In this relationship, Jewelry & Coin is
a. an employee.
b. an independent contractor.
c. a principal.
d. an agent.
Answer:
Soda Bubbles Corporation makes and sells soft drinks. Talia buys and drinks a Soda
Bubbles beverage, which proves defective and injures her. One justification for holding
Soda Bubbles strictly liable for the harm caused to Talia by its defective product is that
a. Soda Bubbles is making a profit from its activities.
b. Talia is a person, not a business.
c. making and selling products are abnormally dangerous activities.
d. Soda Bubbles and Talia are in privity.
Answer:
The U.S. Patent and Trademark Office (USPTO) wants to review certain records of
Omni App Corporation. The USPTO can legitimately gain access to the records through
a. agency coercion.
b. infiltrating Omni App’s computers without the firm’s knowledge.
c. public comment.
d. Omni App’s voluntary compliance.
Answer:
Fact Pattern 3-1
Morsels Restaurant, Inc., and Nature Foods Corporation dispute a term in their contract.
Refer to Fact Pattern 3-1. Oona, a third party, resolves the dispute beÂtween Morsels
and Nature. In most states, Oona must issue an award or decision in writing
a. if the resolution involved arbitration.
b. if the resolution involved mediation.
c. if the resolution involved negotiation.
d. under no circumstances
Answer:
Quiana, an employee of Reservations for Less, Inc., pays Svetlana, an employee of
Reservations for Less’ competiÂtor Travel Cheap, Inc., for a secret Reservations for
Less pricing schedule. This may be
a. an effective marketing strategy.
b. commercial bribery.
c. insider trading.
d. money laundering.
Answer:
Mix-It Concrete Company has the right to enter Nim’s land and remove the rock from
Nim’s quarry. This is
a. the power of eminent domain.
b. a license.
c. an easement.
d. a profit.
Answer:
Keralyn creates a Web site to post threatening messages about celebrities. The First
Amendment protects such speech
a. all of the time.
b. none of the time.
c. only if it is noncommercial.
d. only if it is symbolic.
Answer:
Cloud Computing & Processing Corporation wants to hire Dhani, a noncitizen of
‘extraordinary ability.’ To hire Dhani, Cloud Computing must petition
a. U.S. Citizenship and Immigration Services.
b. the Social Security Administration.
c. U.S. Immigration and Customs Enforcement.
d. the National Labor Relations Board.
Answer:
When Maja, an attorney and a U.S. citizen, crosses the border between the United
States and Canada, she expects the U.S. Department of Homeland Security to search
her laptop. To avoid disclosing confidential client data during the search, Maja could
a. keep client files on a device that she does not take abroad.
b. carry client files abroad only in hard copy.
c. refuse to consent to a border search of her laptop.
d. assert her right to be free from unwarranted government intrusion.
Answer:
Backfill Equipment Corporation currently employs three thousand full-time workers.
Because business has declined, Backfill plans to lay off one hundred workers. If
Backfill does not provide advance noÂtice of the layoff, the employer may be subject to
a. fines, employee back-pay awards, attorneys’ fees, and more.
b. a cease-and-desist order or other injunction but no economic liability.
c. imprisonment but no injunctive or economic sanction.
d. no sanctions.
Answer:
Lewis is a director of Mines & Refineries, Inc. Using information that is not available
to the public, Lewis makes a profit trading in Mines & Refineries stock. Lewis is most
likely liÂable for breach of
a. no duty or rule
b. the business judgment rule.
c. the duty of loyalty.
d. the duty of care.
Answer:
Petro Oil Company wants to conduct genetic testing of its workers to identify those
who might develop significant health problems in the fuÂture. Under federal law, Petro
may use genetic information to
a. make decisions about hiring or firing.
b. make decision about job placement or promotion.
c. deny group health-care coverage or charge a higher premium.
d. none of the choices.
Answer:
Federal law permits the intentional accessing of stored electronic communication even
if the accessing is unauthorized.
Answer:
Friend2Friend, Inc., a social network provider, is cited by an Internal Revenue Service
(IRS) representative for an underpayment of federal income tax. Friend2Friend’s
accountants believed that the agency overlooked some of the firm’s legitimate tax
deductions and credits. Erin, Friend2Friend’s chief executive officer, wants to challenge
the assessment. What are Erin and Friend2Friend’s next steps?
Answer:
The United States will not enforce a foreign court’s decision.
Answer:
An agent’s implied authority can be implied by custom.
Answer:
When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right
that the creditor had against the debtor.
Answer: