If an appellate judge agrees with the majority’s decision, but for different reasons, the
judge may write a “concurring” opinion.
Japanese law fails to recognize fault of the part of the consumer in product liability
cases, and manufacturers must bear the full burden when a product is found to be
defective.
Under the common law, a corporation could not be considered a criminal because it was
not an actual person and, thus, did not have a mind.
A personal representative of an estate makes sure that gifts of real and personal property
go to the correct beneficiaries, persons who inherit under the will.
Unlike in the United States, in India money orders may be issued only by the post
office.
According to the UCC, a signature can be any name, word, mark, or symbol used by a
party to authenticate a writing.
Ethical conversation is primarily about finding the one and only right thing to do.
An assignment for the benefit of creditors is an involuntary proceeding instituted
generally by a bankruptcy court.
A bystander may not invoke the doctrine of strict-liability in a lawsuit.
Under OSHA employers must prominently display in the workplace either the federal
or a state OSHA poster to provide their employees with information on their safety and
health rights.
Under the Mailbox Rule, a valid contract has been formed if a rejection is dispatched,
but before it is received, the acceptance is communicated to the offeror.
In enacting the Sherman Act, Congress did not specify which specific behaviors were
prohibited.
A will is a legal document that outlines how a person wants his or her property
distributed on death.
Federal law is the primary method by which to interpret sales contracts.
The joint venture is not automatically terminated when one of the members dies.
A sole proprietor is considered a separate legal entity.
Corporations have only those powers that states grant them.
The Can-Spam Act prohibits sending consumers e-mail messages with no option
concerning whether they receive messages in the future.
The primary type of rule making used by administrative agencies is informal rule
making.
In a bilateral contract, the consideration for a promise is a completed act.
The Magnuson-Moss Act requires a full warranty on the sale of goods.
The reasonably foreseeable users test holds an accountant liable to any third-party who
was or should have been foreseen as a possible user of the accountant’s work product
and did, in fact, use and rely upon that work product for a proper business purpose.
At any time before the sale of real property subject to a mortgage, the debtor may
recover the property by paying the debt along with additional costs and interest.
The UCC adopted the common law of warranties.
Accountants may not be sued for malpractice because that action is only available in the
medical community.
ADR is a process done only in the U.S., not in foreign countries.
Creditor beneficiaries can enforce their rights under a contract whenever the contract is
valid.
More than half the states remain contributory negligence states.
Once an offer is made, an offeror has no right to terminate it before receiving a reply.
Shareholders may not be held personally liable for a defective corporation’s actions.
If a contract is valid, then it is enforceable.
In some countries, businesses must pay bribes in order to receive legitimate supplies.
Sometimes language in the parties’ agreement limits the rigidity of the perfect tender
rule.
In German product liability cases, consumers do not have a right to recover damages for
pain and suffering or for emotional distress.
Banks themselves oversee the issuance of shares and bonds in Sweden.
In the employer/employee context, the purpose of a covenant not to compete is to
restrict what an employee may do after leaving a company.
The community in which a firm operates would not be considered a stakeholder of the
firm.
Which of the following are common classifications of torts?
A. Intentional, negligent, and criminal.
B. Intentional, criminal, and strict liability.
C. Intentional, negligent, and strict liability.
D. Criminal, negligent, and strict liability.
E. Administrative, civil, and criminal.
Which of the following is true regarding the use of legal counsel at arbitration
proceedings?
A. It is up to each of the parties. They may have legal counsel or they may not.
B. Parties may not have legal counsel.
C. Parties may have legal counsel if they had legal counsel in mediation proceedings.
Otherwise, legal counsel may not be used.
D. Individuals may have legal counsel, but corporations may not.
E. Corporations may have legal counsel, but individuals may not.
“ADA Blues.” Prudence, the Human Resources Manager, at ABC Corporation was
encountering a rush of requests under the Americans with Disabilities Act. Samantha, a
receptionist, was having a birthday and turning 40. She told Prudence that while she
had not been to see a physician, she had “the blues” and needed to take every Friday off
for the next few weeks to recuperate. Samantha said that while she was able to engage
in her normal activities, her energy level was down. Prudence promptly denied her
request on the basis that the act only applies to physical disabilities. Another employee,
Trevor, asked for a private office. Trevor had been significantly burned. Prudence asked
him why he needed a private office. Trevor replied that while nothing was physically
wrong with him, he was tired of everyone treating him as if he had a disability. He said
that the treatment he received interfered with his everyday life and work activities.
Prudence denied his request explaining to him that he needed an actual documented
physical disability before being covered by the act. Finally, George, who had undergone
knee surgery, asked that Prudence put in another elevator near his work station.
Prudence explained that his office could be moved nearer to the existing elevator, but
George told her that under the Americans with Disabilities Act, she did not have the
right to dictate to him when his doctor said that he should not be climbing stairs.
Nevertheless, Prudence denied his request for a second elevator noting that no other
employees needed a second elevator. Samantha, Trevor, and George got together and
decided to go directly to federal court and sue under the Americans with Disabilities
Act to challenge Prudence’s decisions.
Assuming George can establish that he is covered under the Americans with Disabilities
Act based on an actual physical disability, which of the following is true regarding any
duty of Prudence to provide George with a second elevator?
A. Since he is covered under the act with an actual physical disability, she must grant
his request regardless of cost.
B. She is not required to accommodate him under the act until his doctor certifies that
he has reached maximum medical improvement and will not get any better.
C. She will likely be required to put in the second elevator because under the act, an
employee is not supposed to be asked for any accommodation by the employer.
D. She will likely not be required to put in the second elevator because George can
move his office, and putting in a second elevator would probably be an undue hardship
on the employer.
E. She will likely not have to put in a second elevator because it will not benefit other
employees, and an employer only has to make a change to a building as an
accommodation under the act if the change will benefit a substantial number of
employees.
In China which of the following is true regarding the treatment of fraudulent
misrepresentations by outsiders?
A. Outsiders have been fined but by law are allowed to continue operation in the
country because of the country’s concern with joint ventures.
B. Outsiders have been prohibited from doing further business with Chinese firms but
not fined because of the country’s concern with its reputation with foreign investors.
C. Outsiders are jailed for at least 20 years by law.
D. Outsiders are jailed for at least 10 years, fined heavily, and have all property
confiscated.
E. Outsiders have been fined heavily and refused permission to enter into more
agreements with Chinese firms.
Which of the following was the result on appeal in AMW Materials Testing Inc.,
Anthony Antoniou v. Town of Babylon & North Amityville Fire Company Inc., the case
in the text in which the plaintiffs claimed that the defendants were liable for cleanup of
a hazardous site after a fire on the basis that the defending town and fire department had
control of the facility during the time that the fire department was responding to the
fire?
A. That the defendants were not liable because they had insufficient control over the
hazardous material.
B. That the defendants were not liable because a municipality was involved.
C. That the defendants were not liable because the plaintiffs negligently started the fire.
D. That the defendants were liable because they should have done a better job handling
the fire.
E. That the defendants were liable because the fire department did not respond in a
timely manner resulting in delay and the release of additional hazardous material.
When does a private trial typically occur?
A. After a jury trial and prior to appeal.
B. After a case has been filed in federal court, but parties must wait at least 30 days.
C. After a case has been filed in either state or district court.
D. Before a case has been filed in any court.
E. Upon order of a federal judge only.
Which of the following gives immunity to providers of interactive computer services
for liability they might otherwise incur on account of material disseminated by them but
created by others?
A. The Internet Communications Act of 2000.
B. The Interactive Computer Services Protection Act of 2004.
C. The Communications Decency Act of 1996.
D. The Internet Communications Protection Act of 1998.
E. The Blog Protection Act of 2001.
Which of the following is a type of bond that a corporation may call in and repay at
specific times?
A. Secured
B. Unsecured
C. Callable
D. Convertible
E. Income
Which of the following acts has as its goal preventing employers from discriminating
against employees and applicants with disabilities?
A. The Americans with Disabilities Act
B. The Disabled Citizens Act
C. The Handicapped Americans Act
D. The Disabled Americans Act
E. The Civil Rights ActTitle VII
Which of the following is false regarding requirements needed for a business to qualify
as an S corporation?
A. It must have no more than 100 shareholders.
B. Individuals, trusts, partnerships, and in some circumstances corporations can be
shareholders.
C. All S corporations must be domestic corporations.
D. No shareholder can be a nonresident alien.
E. S corporations can issue only one class of shares, although they need not have
identical voting rights.
The __________ terms of a contract are those terms that would allow a court to
determine what the damages would be in the event that one of the parties breaches the
contract.
A. Important
B. Significant
C. Material
D. Adequate
E. Identifiable
The term ______ rights references the right to enter onto property to remove the
underground materials.
A. Subsurface
B. Underground
C. Earth
D. Terrestrial
E. Subterrestrial
Which of the following is the type of defect most likely involved when an individual
glass bottle of soda shatters in someone’s hand causing a cut, although most bottles do
not shatter in that manner?
A. Design
B. Warning
C. Punitive
D. Manufacturing
E. Negligent
Which of the following was the result on appeal in the case of Lakeland Enterprises of
Rhinelander Inc., v. Chao, the case in the text involving whether the constitutional
rights of the defending sewer and water contractor were violated following an
inspection by an OSHA officer resulting in the issuance of citations?
A. That the contractor waived any protection involving the requirement of a search
warrant under the Fourth Amendment by not objecting to the inspection at issue.
B. That protections under the U.S. Constitution are not available when administrative
agency action is at issue.
C. That protections under the U.S. Constitution are only available when administrative
agency action is at issue if incarceration is at issue.
D. That a search warrant should have been obtained pursuant to the Fourth Amendment,
that the search was invalid, and that the citations were invalid.
E. That a search warrant should have been obtained pursuant to the Fourth Amendment,
that the search was invalid, but that the citations would not be revoked because
employee safety was involved.
“Boat Tow.” Donnie went to a new car dealership and told the salesperson, Sally, who
was not the manager, that he needed a new car that would get good gas mileage and
would also pull his big boat. Sally encouraged him to buy a smaller car that she
promised would pull the boat. Sally was new to the job and did not realize that the
small car did not have sufficient power to pull the boat for any distance. Donnie bought
the car and used it to pull the boat. Unfortunately, the heavy pull on the car did
significant damage to the car’s engine. Donnie complained to the Sally who denied any
liability. Donnie, who had half a semester of business law, informed Sally that along
with the sale of the car he also received an express warranty, an implied warranty of
merchantability, and an implied warranty of fitness for a particular purpose; and that he
could recover under any of those theories. Sally truthfully said that no explicit promises
regarding warranties were ever made orally or in writing.
Will Donnie likely be able to recover damages based upon a breach of the implied
warranty of merchantability?
A. No, because the implied warranty of merchantability was that the car would, for
example, be fit for the ordinary purposes for which such goods are used. Pulling the
boat was not an ordinary purpose for that small car.
B. Yes, because Donnie informed Sally about the need for the car to pull the boat.
C. Yes, because Sally told Donnie that the car would pull the boat.
D. No, because of the lack of an implied warranty of fitness for a particular purpose.
E. No, because there was no warranty of merchantability.
Which of the following was the result in Cooper Investments v. Conger, the case in the
text in which guarantors of a note claimed that they were not liable because the terms of
the note had been altered without their consent?
A. That the guarantors consented by implication and remained liable.
B. That the guarantors failed to file a financing statement evidencing their position and
that they, therefore, retained liability.
C. That the alterations should discharge the guarantors from liability on the note.
D. That the alterations should discharge the guarantors, but only for 50% of the
obligation on the note.
E. That the alterations were commercially reasonable and that, therefore, the guarantors
remained liable.
“Not So Slick Trucker.” Slick had a trucking business and advertised that he would
transport “anything.” One day Sleazy Corporation asked him to transport some
hazardous waste and dump it on a farm telling him that, by the way, he should be
careful about touching any of the waste. A friend of Slick’s asked him if he should
check to see if Sleazy Corporation had the proper permits. Slick replied that he was
unconcerned about permits for dumping because he was a mere transporter. A few years
later, federal investigators operating on a tip from someone Slick had cheated in a poker
game, discovered the farm. The material at issue consisted of a pile of hazardous waste
dumped by Slick. The waste was removed; soil was cleaned; and the action, resulting in
a permanent solution, was complete within 6 months. The government requested that
Slick cover the clean-up costs. He refused on the basis that he was simply a trucker and
did not make the waste.
Which of the following is true regarding Slick’s contention that he should not be held
liable for any amounts for clean-up because he was merely a transporter?
A. He is correct only if the federal government, not the state, cleans the site.
B. He is correct only if the state, not the federal government, cleans the site.
C. He is correct only if he can establish that the owner of the site has sufficient funds
with which to clean the site.
D. He is correct only if damages for cleaning the site are in an amount less than
$50,000.
E. He is incorrect.
Which of the following is false regarding private enforcement of antitrust laws?
A. A private party can bring suit under the Clayton Act.
B. A private party can bring suit under the Sherman Act.
C. Under the Sherman Act a private party may receive treble damages.
D. A private party who prevails may receive attorney fees under the Sherman Act and
under the Clayton Act.
E. Private parties are responsible for only a minority of antitrust claims brought to court
in recent years.
“Exemptions.” Sidney is injured in an automobile accident and cannot work. She cannot
pay her bills and files for bankruptcy relief under Chapter 7. Federal exemptions apply,
and she lists as exempt $25,000 in equity in her residence; interest in a vehicle of
$2,000; interest in jewelry of $400; and retirement funds in her individual retirement
account. Her creditors filed an objection to all claimed exemptions except for the home
equity claim.
What is the status of the exemption she claimed on the residence?
A. It will likely be allowed because the value claimed is within the federal exemption
allowed.
B. It will likely be allowed because although it is more than the federal exemption, no
creditor filed an objection to it.
C. It will likely be disallowed because the federal limit for an exemption for a residence
is $10,000.
D. It will likely be disallowed because the federal limit for an exemption for a residence
is $5,000.
E. The status of the exemption is unclear without further information regarding the
resale value of the home.
Which of the following is not an exemption under which agencies may decide whether
public participation will be allowed in rule-making proceedings?
A. Rule-making proceedings with regard to military or foreign affairs.
B. Rule making with regard to agency management or personnel.
C. Rule-making proceedings with regard to complaints about the agency.
D. Rule making with regard to agency property.
E. Rule making with regard to agency contracts.
Which of the following is a federal law that protects the quality of water in navigable
waterways?
A. The Federal Water Pollution Control Act
B. The Safe Navigation Act
C. The Water Control Act
D. The Water Use Act
E. The Water Conservation Act
“Scheming Friends.” Willy very much wants to rent a basement apartment in Weaver’s
home. Willy threatens to tell all Weaver’s friends that he and Weaver had been arrested
for illegally smoking marijuana unless Weaver rents the apartment to him for $100 per
month. (The information regarding the arrests is true.) Weaver reluctantly agrees to rent
the apartment to Willy for $100 per month. Willy also wants to buy Weaver’s car.
Weaver runs back the odometer on the car before Willy test drives it. Willy is impressed
by the low mileage and agrees to buy the car. Weaver offers to sell Willy a ring for
Willy’s fiancée. Weaver tells Willy that the ring is a diamond and believes that to be
true. After the deal is made, however, a jeweler friend of Weaver informs him that the
ring is a fake. When Willy shows up with the money, Weaver says nothing. He just
hands Willy the ring and takes the money. Later, Willy finds out that the odometer was
run backwards from another friend to whom Weaver confided. Willy also finds out from
his girlfriend that the ring is a fake.
Which of the following would be the most likely result if Weaver attempts to rescind
the agreement to rent the apartment?
A. He will be able to rescind the agreement based upon Willy’s threat of extortion.
B. He will be able to rescind the agreement based upon the threat to Willy’s economic
interests.
C. He will be able to rescind the contract because of undue influence.
D. He will not be able to rescind the contract because he agreed to it.
E. He will not be able to rescind the agreement unless he can show that he was not
actually convicted of the crime alleged.
Which of the following are outside directors who do not have business contacts with the
corporation?
A. Approved directors
B. Associated directors
C. Inside directors
D. Affiliated directors
E. Unaffiliated directors
Which of the following types of insurance should a business manager purchase to
obtain protection against a broad range of risks?
A. A commercial general liability policy
B. A business tort policy
C. A litigation commercial policy
D. An economic protection policy
E. A business approved policy
For an instrument to be negotiable, the instrument must indicate that it was created for
the purpose of being ____.
A. Transferred
B. Paid
C. Maintained
D. Banked
E. Retained
Today, when the First Amendment is concerned, what does the term “political speech”
reference?
A. Speech that occurs when corporations support political candidates.
B. Speech by any citizen in connection with an election campaign.
C. Speech by elected officials regarding other elected officials.
D. Speech by private citizens involving advertising that is regulated by state
government.
E. While the term “political speech” has historical connections, the First Amendment is
not referenced in relation to “political speech” today because today all speech is
considered at the same level.
Assume a judge writes that she is deciding to enforce a law in question but that her
decision does not mean that she sees the law as the morally correct rule. The judge
would have leanings in the direction of ______.
A. Legal positivism
B. Natural law
C. Legal realism
D. Conscience reaction
E. Concluding law
The Family and Medical Leave Act covers private employers with ______ or more
employees.
A. 20
B. 25
C. 50
D. 75
E. 100
Which of the following is true regarding types of warranty liability?
A. There is only one type of warranty in regard to instruments, transfer.
B. There is only one type of warranty in regard to instruments, presentment.
C. There is only one type of warranty in regard to instruments, acknowledged.
D. There are three types of warranties in regard to instruments, transfer, presentment,
and acknowledged.
E. There are two types of warranties in regard to instruments, transfer and presentment.
Which of the following has the power to dissolve a federal agency?
A. The House of Representatives
B. The Senate
C. Congress
D. The President
E. The Administrative Regulatory Agency
Which of the following is an instrument whereby one party orders the second party to
pay an amount of money to the party listed on the instrument?
A. A draft.
B. A note.
C. A mark.
D. An instrument.
E. A certificate of deposit.
Which of the following is a type of partnership, if any, that does not specify the
objective or duration of the partnership?
A. A partnership at will
B. A partnership at sufferance
C. An indeterminate partnership
D. A temporary partnership
E. There is no such partnership because a partnership cannot exist unless either the
objective or duration is stated.
Which of the following is false regarding a creditor’s rights to collateral upon a debtor’s
default?
A. If a debtor defaults on a loan, the secured party can take possession of the collateral
so long as the debtor does not breach the peace.
B. Under the UCC, the secured party can sell, lease, or transfer the collateral in any
commercially reasonable method.
C. Regardless of where the collateral is sold, the secured party must strive to receive the
best price for the collateral.
D. Instead of disposing of the collateral, the secured party may choose to keep the
collateral in full or partial satisfaction of the debt.
E. A debtor in default has no rights in regard to whether collateral is retained by the
secured party or sold.
Define the term “in personam” jurisdiction and discuss where corporations and
individuals are generally subject to that type of jurisdiction. Include in your answer a
discussion of long-arm jurisdiction.
Set forth the five conditions under which a holder may take an instrument for value.
List and discuss the five factors, discussed in the text, suggested as a structure for
critical thinking in reviewing case law.
List four reasons discussed in the text as to why individuals engage in estate planning.
Set forth the rationale behind the doctrine of respondeat superior and discuss whether
ethically you believe is an appropriate doctrine for our society.
Contrast traditional antitrust theories with the Chicago School theories.
Set forth the circumstances under which a partnership may be dissolved by act of the
court.
What is the difference between a demand instrument and a time instrument?
What are the two general goals of bankruptcy laws as set forth in the text?
Set forth the elements for a finding of substantial performance and the effect of a
finding of substantial performance on damages.
Describe the liability, if any, of incoming partners.
Effie received a check written by Sam whom she did not really trust. Accordingly, she
rushed to his bank to get the check cashed. The bank told her that presentment would be
considered as being made on the next business day and refused to immediately give her
the funds. The bank representative told her that the bank’s cut-off hour was 2:00 p.m.
and that she did not present the check until 3:00 p.m. Effie was upset and told the bank
that it wrongfully dishonored the check in violation of provisions of the UCC. Discuss
the rights of the parties.
Discuss the meaning of a void contract and a voidable contract, and the effect of a
determination that a contract is either void or voidable.
What is the preexisting duty rule?
Set forth the requirements a party must meet in order to be considered a holder in due
course.