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Which of the following was the court's ruling on appeal in Danny Lambert v. Mazer
Discount Home Centers Inc., the case in the text in which the plaintiff alleged age
discrimination following a change in management and his discharge?
A. That the plaintiff had not established the elements of a prima facie case of age
discrimination because he had failed to produce evidence that the employer replaced
him with a younger person.
B. That the plaintiff established the elements of a prima facie case of age discrimination
and that there was no requirement that he establish that he was replaced with a younger
person, but that the plaintiff failed to rebut the defendant's proffered reason for the
discharge.
C. That the plaintiff established the elements of a prima facie case of age
discrimination, that there was no requirement that he establish that he was replaced with
a younger person, and that a jury question existed as to whether the plaintiff could
sufficiently rebut the defendant's proffered reason for the discharge.
D. That a jury question existed both as to whether the plaintiff established the elements
of a prima facie case of age discrimination and as to whether the plaintiff could
sufficiently rebut the defendant's proffered reason for the discharge.
E. That the plaintiff was entitled to a verdict in his favor as a matter of law because he
established a prima facie case and also successfully rebutted the defendant's proffered
reason for the discharge.
Which of the following was the result at the Supreme Court level in Matrixx Initiatives
Inc., v. Siracusano, the case in the text in which the plaintiffs brought a class action
alleging that the defendant violated security laws by failing to release reports that its
product Zicam Cold Remedy had been found to result in a loss of smell?
A. That the plaintiffs would not be allowed to proceed because they did not present
statistically significant evidence that Zicam caused loss of smell.
B. That the plaintiffs would be allowed to proceed because they sufficiently pled
scienter and also presented statistically significant evidence that Zicam caused loss of
smell.
C. That under the "total mix" standard, the plaintiffs sufficient pled materiality in regard
to the alleged failure to disclose; that plaintiffs sufficiently pled scienter; and that
plaintiffs would be allowed to proceed.
D. That under the "total mix" standard, the plaintiffs failed to sufficient plead
materiality in regard to the alleged failure to disclose and therefore would not be
allowed to proceed.
E. That although under the "total mix" standard, the plaintiffs pled materiality in regard
to the alleged failure to disclose, the plaintiffs failed to sufficiently plead scienter and
would therefore not be allowed to proceed.
Prima facie is Latin for ____.
A. A provable case
B. At first view
C. Probable cause
D. Beyond a reasonable doubt
E. By a preponderance
Which of the following is viewed as a middle ground test in regard to accounting
liability to third-party users?
A. The Privity Rule
B. The Near Privity Rule
C. The Restatement Test
D. The Ultramares Rule
E. The Reasonably Foreseeable Users Rule
Which of the following is the payee's or last endorsee's signature and nothing else?
A. A special endorsement.
B. An allonge.
C. A blank endorsement.
D. A qualified endorsement.
E. A restricted endorsement.
Which of the following is generally a legitimate defense to a charge of a crime?
A. Mistake of law
B. Vicarious liability
C. Mistake of fact
D. Mistake of felony
E. Mistake of actus reus
"Used Car Sales." Walter sells used cars. He is seeking a way to increase sales and
profits because he would like to take his girlfriend on a nice diving trip to the Grand
Cayman Islands. The first thing that Walter does is say that during the first week of
December, he will give a $500 rebate on used cars that are under two years old. To
spice things up, he also offers to sell any car on the lot that is over five years old for
$1,000 to the first three customers who can hula hoop ten hours straight on December
7th. (Hula hooping was a practice popular some years ago in which a large hoop would
be swung around by a person, usually around the waist.) Walter was not very concerned
about the hula hooping issue because he thought that no one would be able to hula hoop
for ten hours straight. Walter put an advertisement pertaining to the rebate and the hula
hoop opportunity in the local newspaper. The promotion went over very well. Although
Walter had several cars available, he ran out of cars under two years old within one day.
During the rest of the week shoppers were told that no cars of that description were
available. Sam was very angry at Walter for not having a car available that was under
two years old so that he could get a good deal and a $500 rebate. On December 7th,
while Walter was watching the hula hoopers, Sally was shopping for a car. She was in
college and did not have much money. She saw one, an older car, a real clunker, that
she liked; but she really did not know if it could be repaired sufficiently to be
dependable. Walter had not even put a price on it because he planned to have it crushed.
Sally was going to talk to her parents about it. Walter eventually approached her, and
Sally asked him if he would take $450 for the car. Walter said, "Yes, sold." Sally tried to
explain that she needed to talk to her parents first, but Walter would not hear of it.
While Walter was still fuming from his encounter with Sally, Zack walked up and
started to criticize the nature of Walter's inventory. Walter told him that he had great
cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a
cracked windshield. Zack said, "Sure, I'll pay $100,000 for that car!" Walter said,
"Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way."
Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping
except for Barbara. She completed the hula hooping and asked for her car for $1,000.
Walter refused saying that the offer was revoked. Sam and Barbara sued Walter, and
Walter sued Zack and Sally. Under the applicable law in Walter's state, common law
will be applied, and there are no state statutes impacting the situation.
What is the most likely result in Walter's lawsuit against Sally in which he claims that
she must pay $3,000 for the car at issue?
A. Walter will win because Sally made an offer that he properly accepted.
B. Walter will win because Sally agreed to pay a reasonable amount for the vehicle.
C. Sally will win because the agreement was not put into written form and signed by
both parties.
D. Sally will win because she merely expressed interest and did not make an offer.
E. Sally will win because she was not provided sufficient time in which to consider the
offer.
Which of the following was the result in U.S. v. Alfred Caronia, the case in the text in
which the defending pharmaceutical representative was charged with illegally
promoting off-label use of a drug?
A. That the defendant had not indeed promoted off-label use of the drug at issue, and
the case was dismissed.
B. That although the defendant promoted off-label use of the drug at issue, the off-label
use was later approved as a valid and appropriate use, and the case was dismissed.
C. That the defendant's speech failed to meet the criteria for classification as
commercial speech and that, therefore, the defendant had no constitutional argument in
opposition to the charges against him.
D. That although the defendant's speech met the criteria for classification as commercial
speech, no constitutional protection has been historically extended to that type of
speech; and the defendant, therefore, had no constitutional argument in opposition to
the charges against him.
E. That although the defendant's speech met the criteria for classification as commercial
speech entitled to constitutional protection under some conditions, the government met
the requirements for regulation of the particular speech at issue involving off-label
usage.
Ordinarily, to obtain an arrest warrant, a law enforcement agent must demonstrate that
there is ________ that a suspect committed or is planning to commit a crime.
A. Likely cause
B. Suspected cause
C. Certainty
D. Probable cause
E. Information
"Refusal to Pay." Business law teacher Debby needed some yard work done. She told
her class that she would give $50 to the first person who mowed her yard. She also
entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max
went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood
dog bit him, and he had to go to the emergency room for a couple of stitches. Debby
refused to pay Max because she said that he had angered the neighbors and their dog,
and that he was more trouble than he was worth. Secretly, Debby was glad about the
dog bite because she felt it gave her an excuse not to pay. Max refused to pay the
emergency room because he said that they did not have a binding, bilateral contract.
Betty refused to trim the shrubbery because she got a better offer and claimed that she
was not bound on the contract until she started to perform.
Which of the following is true regarding Max's statement that he did not have to pay the
emergency room charges?
A. He is correct.
B. He is incorrect because there was a bilateral, express contract.
C. He is incorrect because there was a unilateral, express contract.
D. He is partially correct in that because a quasi-contract existed, he would have to pay;
but he would only have to pay fair market value, not what the hospital requested.
E. He is incorrect because there was a binding implied contract.
Which of the following is true regarding revelations involving Enron and WorldCom?
A. That their upholding of high ethical standards in regard to accounting practices
supports the conclusion that the business world should be allowed to regulate itself.
B. That WorldCom, a privately held company, had high ethical standards but that
Enron, a publicly traded company, engaged in illegal accounting practices supporting
the conclusion that privately held companies should be allowed to regulate themselves
whereas publicly held companies need significant government regulation.
C. That WorldCom, a privately held company, engaged in illegal accounting practices
but that Enron, a publicly traded company, had high ethical standards supporting the
conclusion that privately held companies need significant government regulation
whereas publicly held companies should be allowed to regulate themselves.
D. That although illegal accounting practices occurred, it is so difficult to find and
regulate such practices that any regulation should be left to the free market.
E. That accounting issues with these companies illustrate that the business world cannot
be allowed to regulate itself ethically and that government oversight is needed.
The surviving corporation's right to sue for debt and damages on behalf of the absorbed
corporation is called which of the following?
A. A right of recovery
B. A right of litigation
C. A course of recovery
D. A chose in action
E. An accord and satisfaction
The Family and Medical Leave Act guarantees all eligible employees up to ______
weeks of leave during any ______-month period.
A. 4; 24
B. 12; 24
C. 12; 12
D. 20; 12
E. 20; 24
A[n] ______ account is an account maintained by a neutral third party into which a
deposit on property is placed until all necessary steps for a transfer of property can be
made.
A. Closing
B. Escrow
C. Accountable
D. Earnest
E. Back-up
Which of the following is some sort of mental or physical defect that prevents a person
from being able to enter into a legally binding contract?
A. Immajority
B. Capacity
C. Chronic illness
D. Incapacity
E. Terminal illness
Which of the following was the result on appeal in the case in the text, Cynthia Walker
v. John A. Lahoski involving whether the plaintiff was an employee entitled to workers'
compensation benefits from the defendants?
A. That the plaintiff was an independent contractor because she signed an agreement to
the effect that she was an independent contractor.
B. That the plaintiff was an employee because she was not a professional employee.
C. That the plaintiff was an employee because she worked set hours.
D. That the plaintiff was an employee because she worked at one location.
E. That a question existed as to whether the plaintiff was an employee and that the trial
court erred in granting summary judgment to the defendants.
Which of the following references regulations aim to achieve the greatest possible
improvements while taking into account the existing levels of technology?
A. Technology-driven
B. Technology forcing
C. Application assuming
D. Invention dependant
E. Technology dependant
An insurer may also be called a[n] _____.
A. Overseer
B. Underseer
C. Overwriter
D. Underwriter
E. Guarantor
"Partnership Disruption." Bruce, Sandra, and Minnie want to form a partnership to
assist students with resume preparation and employment searches. Bruce asks Sandra
and Minnie if they should draw up some sort of agreement. Sandra replies that a written
agreement is not legally required and that an oral agreement will set up a partnership.
Upon the urging of Bruce and Minnie, however, Sandra agreed to a written document
which they all signed setting up the partnership. It was a simple agreement listing the
partners that did not specifically address the right to management or allocation of
profits and losses. Sandra has an opportunity to assist some students with resumes and
does so without revealing her employment to the partnership. She keeps the funds she
receives for herself. When Bruce and Minnie found out, Sandra replied that she was
doing two-thirds of the partnership work, particularly in regard to management; that
she, therefore, had two-thirds of the voting rights; and that she voted that her actions
were appropriate. The articles of partnership did not address the right to share in
management, but Bruce and Minnie strongly disagreed with Sandra.
Which of the following is true regarding Sandra's statement that a written agreement is
not necessary to set up a partnership?
A. She is correct.
B. She is correct but only because three or fewer members are involved.
C. She is incorrect but only because fewer than five members are involved.
D. She is correct only if all partners are considered sophisticated investors.
E. She is incorrect only if none of the partners have experience with the partnership
form of business.
Which of the following are rules that do not create any new rights or duties but are
step-by-step statements of what actions a party must take to be considered in
compliance with an existing law?
A. Regulatory rule
B. Explanatory rule
C. Interpretive rule
D. Analysis rule
E. Application rule
Which of the following is the general rule when it is not possible to determine the status
of the signer of an instrument?
A. The party is considered the maker.
B. The party is considered the acceptor.
C. The party is considered the drawer.
D. The party is considered the endorser.
E. The party is considered an accommodation party.
"Prenuptial Agreement." Rhonda performed accounting services for Greg's used car
business. She had a contract with Greg to the effect that she would audit his books and
financial statements for his own use, not for the purpose of obtaining loans. In auditing
Greg's business, she developed various notes, calculations, memorandums, and other
papers. Candace, Greg's fiancé, approached Rhonda to inquire about Greg's business.
Candace and Rhonda had been friends for many years. Rhonda allowed Candace to
look at the various notes, calculations, and other papers resulting from her review of
Greg's financial statements and other records. Candace told Rhonda that she really
needed to investigate Greg because they were thinking of getting married, and she
believed he had a legal obligation to disclose the information to her because of
negotiations involving a prenuptial agreement. Rhonda agreed and proceeded to discuss
Greg's finances with Candace revealing all the information that Greg had disclosed to
her. Candace broke up with Greg telling him that after what she discovered from
Rhonda, she was concerned that Greg could not support her in the way in which she
wanted to become accustomed. Greg was very angry with Rhonda and told her that she
was unethical and had violated the accountant-client privilege.
Which of the following is accurate regarding Greg's assertion that Rhonda violated the
accountant-client privilege?
A. Greg was correct since the accountant-client privilege exists in all states through
common law.
B. Greg was incorrect because there is no an accountant-client privilege in any state.
C. Greg was correct because the accountant-client privilege is recognized by federal
law.
D. Greg was correct because the accountant-client privilege is recognized in all states
through statutory law.
E. More information is needed in order to know if Greg is correct because the
accountant-client privilege is recognized in some states, but not in all states.
In reference to the case in the text DeJesus v Cat Auto Tech. Corp., what was the effect
of the defendant's payment for goods without inspection on the day of delivery, when
the delivery was approximately two weeks after the time called for by the contract?
A. The defendant effectively waived the performance provisions of the contract
regarding the time for delivery.
B. The defendant did not lose any rights because under the UCC he had 24 hours after
delivery in which to object to late delivery.
C. The defendant did not lose any rights because under the UCC he had 48 hours after
delivery in which to object to late delivery.
D. The defendant did not lose any rights because under the UCC he had 7 days after
delivery in which to object to late delivery.
E. The defendant did not lose any rights because under the UCC he had 10 days after
delivery in which to object to late delivery.
"Wedding photos." Bobby took a number of wedding photos at Jill's wedding. He was
paid as the photographer. On all of the photographs, he appropriately noted in the
bottom right-hand corner information showing that he was claiming copyright
protection. Jill came to see Bobby three years after the initial photographs were taken
and requested that he grant her permission to run off as many copies as she wanted at
the local photo shop from the pictures that she initially purchased. The photo shop had
refused to reproduce the photographs without his permission. When he refused to give
her permission to do so, Jill started a heated argument. She told Bobby that photographs
are not entitled to copyright protection. She also told him that even if he was correct
that there was some copyright protection, it only lasted for two years and that, in any
event, damages for copyright infringement are unavailable.
Which of the following is correct regarding Jill's claim that photographs are not subject
to copyright protection?
A. She is correct. Photographs are not subject to copyright protection even if taken by a
professional photographer.
B. She is correct but only because family pictures are involved. Family pictures may
not be the subject of copyright, but landscape photographs may be the subject of
copyright protection.
C. She is partially correct. Bobby was entitled to copyright protection on the first
picture. After Jill purchased the first picture, however, she could make as many copies
as she wanted.
D. She is correct only because Bobby had not registered the photographs for copyright
protection.
E. She is incorrect. Photographs may be the subject of copyright protection.
Which of the following is true regarding who may be considered an insider under the
Securities Exchange Act of 1934?
A. Only directors are considered insiders
B. Only employees are considered insiders
C. Any shareholder is considered an insider along with all directors and all employees
D. Directors, officers, and anyone who receives private information regarding the
trading of securities may be considered insiders
E. Only directors, officers, and majority shareholders are considered insiders
"Furniture Store Woes." Manny was hired by John to deliver furniture purchased from
John's furniture store, Good Furniture. John had authorized Manny to drive the delivery
truck home from work, but Manny was not authorized to use the truck for any personal
errands. Manny decided to help his friend Helen move believing that John would never
find out. Unfortunately, while moving Helen's furniture to her new home, Manny was
speeding and hit Bobby's vehicle in the rear causing whiplash to Bobby. Bobby is
threatening to sue both John and Manny. Then, on his way to work in the same truck the
next day, Manny again bumped a car driven by Joan who is threatening to sue both
Manny and John. John also has another problem involving Connie, his niece, an
aspiring interior designer who John hired to provide design services to customers. Both
Connie and John were aware that customers would likely have no interest in the
services of Connie if they knew she had no experience and no training in design.
Therefore, they inflated her accomplishments to customers telling them that she had
both training and experience. In reliance on those claims, Beth agreed to have Connie
do the interior design work for her new business building while Beth was out of town
on an extended business trip. Unfortunately, Connie did a terrible job. For example, she
put in purple carpeting and painted the walls orange. Beth was outraged when she
returned. She found out from Sandy, a disgruntled employee of John, that Connie
actually had no training or experience in interior design. Sandy wants to sue both
Connie and John.
Which of the following is true regarding John's liability to Bobby?
A. John will likely be held liable for Bobby's injuries because while Manny was acting
outside the scope of his duties at the time of the accident, he had not substantially
departed from the course of his employer's business.
B. John will likely be held liable for Bobby's injuries because Manny was driving
John's truck at the time of the accident.
C. John will likely be held liable for Bobby's injuries because Manny allowed John to
take the truck home regardless of John's instructions regarding the use of the truck.
D. It is unlikely that John will be held liable for Bobby's injuries because Manny had
substantially departed from the course of his employer's business.
E. It is unlikely that John will be held liable for Bobby's injuries unless it can be proven
that Manny had no insurance and lacks the ability to pay.
"Coffee shops." Bernice wants to open a chain of coffee shops but needs some
investors. Her friend Robbie tells Bernice that she should be sure that she satisfies
requirements of the SEC. Robbie tells her that she has to provide information to the
SEC involving a description of the securities, an explanation of how proceeds will be
used, information regarding the management of the company and other matters. He tells
her that she also has to provide a document to the SEC that will be provided as an
advertising tool to potential investors who can rely on it to decide whether they should
buy the securities. Bernice says that she does not want to do that. She explains to
Robbie that insofar as the coffee shop venture is concerned, she does not want to
advertise; and she wants to offer securities only to a limited number of wealthy friends.
Particularly, she has in mind Scott who has a net worth of at least $3 million.
Which of the following is a term, if any, that would describe Scott as an investor?
A. Approved
B. Sophisticated
C. Accredited
D. Superior
E. There is no specific term to describe Scott as he is considered the same as any other
investor.
Which of the following was the judge's ruling in Jamil Blackmon v. Allen Iverson, the
case in the text in which the plaintiff alleged that the defendant, a professional athlete,
wrongfully failed to pay him a percentage of proceeds received from using the
nickname "The Answer" in merchandising although the defendant agreed to do so after
the plaintiff suggested the use of the nickname?
A. That consideration was lacking because the defendant was not bound to use the
nickname.
B. That the defendant's promise to pay was past consideration insufficient to create a
binding contract.
C. That consideration was present and that the defendant was liable to the plaintiff.
D. That the issue of consideration was irrelevant because consideration was not
required in this type of contract.
E. That the defendant was required to pay the plaintiff only half of the percentage
initially offered because a gift situation was involved.
Which of the following is true if a bailment is intended to benefit only the bailor?
A. The bailee is liable for harm to the bailed property arising out of either the bailee's
ordinary or gross negligence.
B. The bailee is liable for harm to the bailed property arising only out of the bailee's
gross negligence only.
C. The bailee is liable for harm to the bailed property caused by even the slightest lack
of due care on the part of the bailee.
D. The bailee is strictly liable for harm to the bailed property.
E. The bailee is not liable for harm to the bailed property because of the doctrine of
assumption of the risk.
Which of the following is an example of the imposition of strict liability?
A. A robber pulls a gun to rob a bank teller.
B. A burglar breaks into a home to steal jewelry.
C. A business sells cigarettes to a minor.
D. A minor shoplifts in a department store.
E. An adult shoplifts in a department store.
