1) InfoFree Inc., makes and sells devices and services for the circumvention of
encryption software and other technological antipiracy protection. Under the Digital
Millennium Copyright Act, this is
a.a violation of copyright law.
b.prohibited but not a violation of copyright law.
c.a “fair use” exception to the provisions of the act.
d.permitted for reconsideration every three years.
2) Geri is a minor. Without her parents’ knowledge, she signs a contract to buy an
airline ticket to Hawaii for spring break. Geri’s parents are liable for
a.the entire price of the ticket.
b.no part of the price of the ticket.
c.up to half of the price of the ticket.
d.up to two-thirds of the price of the ticket.
3) Investment Holdings Corporation hires Jerilyn, a business appraiser, to locate
investment possibilities for Investment Holdings. Jerilyn learns of a salsa and hot sauce
manufacturing company available for a reasonable price, but neglects to tell Investment
Holdings. Most likely, Jerilyn
a.breached the agent’s fiduciary duties to the principal.
b.did nothing wrong.
c.failed to take advantage of a business opportunity.
d.assumed that the information was confidential.
4) Mythic Games Company employs two hundred workers full-time. If Mythic Games
plans to have a mass layoff, it must provide its employees with notice of at least
a.thirty days.
b.sixty days.
c.ninety days.
d.one year.
5) Helene, a disabled person, applies for a job at Industrial Engineering Applications
Inc. for which she is well qualified, but for which she is rejected. Industrial Engineering
continues to seek applicants and eventually fills the position with a person who is not
disabled. Helene is most likely to succeed in a suit against Industrial Engineering for
discrimination under the Americans with Disabilities Act of 1990 if she can show that
a.she was not hired solely because of her disability.
b.she can function well with corrective devices or on medication.
c.her disability causes her undue hardship.
d.she could not perform the job even with reasonable accommodation.
6) Oswald, an employee of Pipes & Plumbing Company, fills out his time sheets by
rounding off his hours and thus effectively listing more time than he actually worked.
Pipes & Plumbing submits the time sheets to a federal regulatory agency. For Oswald to
be held criminally liable for lying, the false information on his time sheets must be
a.considered material.
b.made under oath.
c.made after a warning about the consequences of a false statement.
d.in writing.
7) Northwest Energy Corporation signs an instrument that states it is being executed “as
per contract for a purchase of 4,000 barrels of oil dated September 1.” This instrument
is
a.negotiable.
b.nonnegotiable, because information about the sale must be obtained from another
source.
c.nonnegotiable, because it states an express condition to payment.
d.nonnegotiable, because the terms of the contract are not clear on the face of the
instrument.
8) Oliver slips and falls on Port Harbor’s Tour Boat and is injured. Oliver files a suit
against Port Harbor for $500,000. If Oliver is 20 percent at fault and Port Harbor is 80
percent, under the “50 percent rule” comparative negligence principles, Oliver would
recover
a.$0.
b.$250,000.
c.$400,000.
d.$500,000.
9) Congress enables the Environmental Protection Agency to regulate air and water
pollution. This congressional act is
a.divine right.
b.a delegation of legislative power.
c.a gap-filling power.
d.arbitrary and capricious.
10) Godwin is a director on the board of Health Insurance Corporation. On the receipt
of notice of a board meeting, Godwin attends the meeting and takes part in the
discussion of business matters and votes on corporate issues. Godwin is entitled to be
notified of, and to take part in, these meetings
a.underthe director’s right to participation.
b.underthe director’s right to compensation.
c.underthe director’s right to indemnification.
d.only on his own initiative.
11) The idea for “Prices & Profit,” an app that businesses can use to control their
revenue, profits, and payrolls, is protected by
a.copyright law.
b.patent law.
c.trademark law.
d.trade secrets law.
12) Arnold loses his suit against Buffy in a Colorado state trial court. Arnold appeals to
a state intermediate court of appeals and loses again. Arnold would appeal next to
a.a U.S. district court.
b.the Colorado Supreme Court.
c.the United States Supreme Court.
d.the U.S. Court of Appeals for the Ninth Circuit.
13) The United States and other members of a certain organization agree to grant
normal trade relations (NTR) status to each other with regard to imports and exports.
This organization is
a.the Convention on Contracts for the International Sale of Goods.
b.the International Export-Import Bank.
c.the United Nations.
d.the World Trade Organization.
14) Pest Eradication, Inc., makes a pesticide with a one-in-a-million risk to people of
developing cancer from exposure. This substance must be
a.disposed of before anyone develops cancer.
b. registered before it is sold.
c.taken off the market and placed in temporary storage.
d.used only in a way that avoids exposure to people.
15) Fact Pattern 41-1B
DIYFasteners Company decides to consolidate its operations with Evergrip Studs, Inc.,
to form Fit-Rite Bolts & ScrewsInc.
Refer to Fact Pattern 41-1B. The articles of consolidation differ from Shrimp Boat’s
articles of incorporation. The articles
a.are replaced by Evergrip’s articles of incorporation.
b.are replaced by the articles of consolidation.
c.effectively prevent the consolidation.
d.prevail.
16) The Iowa Supreme Court rules against Jennifer in a case against Kut-Rate Stores,
Inc. Jennifer wants to appeal her case to the United States Supreme Court. She must ask
the Court to issue a writ of
a.appeal.
b.certiorari.
c.jurisdiction.
d.summons.
17) Yokio, Ltd., and Zeno, S.A., transact an international sale of goods. At the request
of these parties, a court in Portugal resolves a dispute between them. A U.S. court will
most likely honor the judgment
a.if it is consistent with U.S. laws and public policy.
b.if it is consistent with Portuguese laws and public policy.
c.if it does not benefit the U.S. to deny it.
d.under no circumstances.
18) Fact Pattern 27-1B
Charlton is the maker of a $200,000 promissory note payable to Development & Sales
Corporation. Development & Sales indorses the note to Equity Lenders, which in turn
indorses it to First Select Investors, which then indorses it to Global Bank, the present
holder.
Refer to Fact Pattern 27-1B. Suppose that First Select pays Global Bank on the note.
With timely notice to the proper parties, First Select may then collect payment on the
note from
a.Charlton, Development & Sales, or Equity Lenders.
b.Charlton or Development & Sales only.
c.Equity Lenders only.
d.no one.
19) The only defense to criminal liability that justifies the use of force is self-defense.
20) An undisclosed principal is not liable to a third party for a contract made by an
agent.
21) A limited liability limited partnership is a type of limited partnership.
22) eDigital Enterprise Corporation discovers a defect in its newly developed, recently
marketed tablets. eDigital decides to recall the product and replace it with another.
eDigital’s insurance policy with Finance & Business Insurance Company will cover any
harm to customers that occurs before the tablets are returned. Is it likely that the policy
will also pay for the recall and replacement? If so, what type of policy does eDigital
have?
23) When a negotiable instrument contains the notice required under FTC Rule 433, a
consumer can bring any defense to payment that he or she has against the seller of a
product against a subsequent holder as well.
24) A party can be directly prosecuted for violating an administrative agency€s
interpretive rule or guidance document.
25) Under the doctrine of respondeat superior, a principal may be liable for any harm
that his or her agent causes to a third party.
26) Federal Bank is a secured party on a $50,000 loan to Gigi, who owns Home
HealthCare, an assisted living facility. When Gigi experiences financial difficulty,
creditors other than Federal Bank petition her into involuntary bankruptcy. The value of
the secured collateral has substantially decreased in value. On its sale, the debt to
Federal Bank is reduced to $25,000. Gigi’s estate consists of $100,000 in exempt assets
and $20,000 in nonexempt assets. After the bankruptcy costs and back wages to Gigi’s
employees are paid, nothing is left for unsecured creditors. Gigi receives a discharge in
bankruptcy. Later she decides to go back into business. By selling a few exempt assets
and getting a small loan, she is able to buy Indulgence, a small, profitable nightclub.
Gigi goes to Federal Bank for the loan. The bank claims that the balance of its secured
debt was not discharged in Gigi’s bankruptcy. She signs an agreement to pay Federal
Bank the $25,000, and the bank makes a new unsecured loan to her. Is Federal Bank
correct that the balance of its secured debt was not discharged in bankruptcy? What is
the legal effect of Gigi’s agreement to pay the bank $25,000 after the discharge in
bankruptcy?
27) U.S. district courts have concurrent jurisdiction with state courts in matters
involving federal questions.