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The Fifth Amendment to the United States Constitution's protection against
self-incrimination applies to:
a. individuals only.
b. corporations only.
c. both individuals and corporations.
d. individuals, but only in their official capacity within a business.
Which of the following does not constitute an acceptance?
a. An express statement of approval by the buyer.
b. The buyer's examination of the goods.
c. The buyer's retention of goods for an unreasonable period of time.
d. The buyer's modification of the goods.
A trust may be terminated:
a. by its own terms.
b. by merger of all interests in the same person.
c. via revocation by the settlor if allowed by the terms of the trust.
d. all of the above.
An obligation to pay for the reasonable value of services rendered when there is no
contract would be called:
a. quasi-contractual.
b. quasi-enforceable.
c. semi-lawful.
d. valid.
The Americans With Disabilities Act applies to private employers when:
a. they have federal contracts.
b. they have demonstrated past practices of discrimination.
c. they have fifteen (15) or more employees.
d. they have state contracts.
Unidentified members of a certain class may sue for negligent malpractice in states that
follow the __________ rule.
a. contact
b. known user.
c. unidentified user
d. foreseeable user
A limited liability company may be classified as a partnership for tax purposes if:
a. such an election is made by "checking the box" for partnership tax treatment on the
appropriate Internal Revenue Service form.
b. such an election is made in the operating agreement.
c. such an election is made in the articles of incorporation.
d. a majority of its members petition the Internal Revenue Service for partnership tax
treatment.
An implied contract is shown by:
a. a writing.
b. the acts and conduct of the parties.
c. statements made in open court.
d. an exchange of oral promises.
The power given to courts to hear certain types of cases is called:
a. jurisdiction.
b. mediation.
c. arbitration.
d. summary judgment.
A consignment sale is treated as a(n) __________ under UCC Article 2, and the
dealer-consignee has full authority to sell the goods for the consignor and can pass title
to the goods.
a. ordinary sale
b. final sale
c. sale on approval
d. sale or return
rrrr
The Blanchard and Peale three-part test for resolving ethical dilemmas consists of the
following questions:
a. Is it legal? Is it ethical? Is it moral?
b. Is it legal? Is it balanced? How does it make me feel?
c. Is it ethical? Is it right? Does it pass the "front page of the newspaper" test?
d. Is it right? Is it balanced? Is it fair?
The passage of federal securities disclosure laws occurred largely as the result of:
a. voluntary self-regulation by ethics experts in the securities industry.
b. the stock market crash of 1929.
c. changes in the international market for securities and negotiable instruments.
d. all of the above.
A limited liability company's operating agreement:
a. is equivalent to the bylaws of a corporation.
b. must be in writing.
c. does not cover member compensation..
d. all of the above.
Without meaning to, Alice carelessly strikes Mary. Mary may be able to sue Alice for:
a. an intentional tort.
b. negligence.
c. strict liability
d. absolute liability.
Strict tort liability is applied:
a. independently of the UCC.
b. without regard to privity of contract.
c. despite negligence on the part of the plaintiff.
d. all of the above.
__________ is a federal law that recognizes digital signatures as authentic for purposes
of contract formation.
a. Cyber-sign
b. We-sign
c. Electra-sign
d. E-sign
Which of the following allows a domestic firm to maintain the greatest control over its
foreign operations?
a. wholly-owned subsidiaries
b. licensing
c. foreign distributorships
d. agency arrangements
The spread of limited liability corporation statutes resulted from:
a. a United States Supreme Court decision.
b. an Internal Revenue Service ruling.
c. a Wyoming Supreme Court decision.
d. a Securities and Exchange Commission ruling.
Under the U.S. Constitution:
a. "persons" are expressly protected.
b. particular rights of "persons" are expressly protected.
c. certain rights of "persons" have been implied by the Supreme Court.
d. both b and c.
The provisions of the United Nations Convention on Contracts for the International
Sale of Goods (CISG) have been strongly influenced by:
a. the GATT's most-favored nation clause.
b. the European Economic Community's Treaty of Rome.
c. the Uniform Commercial Code.
d. the success of the Organization of Petroleum Exporting Companies.
A third-party beneficiary:
a. may be obligated to pay for services rendered.
b. may bring suit on and enforce the contract.
c. must consent to the contract.
d. must be identified by name.
Which of the following statements regarding the Foreign Corrupt Practices Act is true?
a. It applies only to foreign officials in this country.
b. It applies only to foreign officials outside this country.
c. It applies only to "grease" payments.
d. None of the above statements is true.
The scope of an agent's authority may be determined from the:
a. express words of the principal.
b. words or deeds of the principal.
c. customs of the trade or business.
d. all of the above.
Companies who have misrepresented the capabilities of their search engines or failed to
disclose the methods whereby they give preference to certain links:
a. may be liable for fraud, but are not responsible for either rescission or damages.
b. may be liable for fraud, but if so are only responsible for rescission.
c. may be liable for fraud, but if so are only responsible for damages.
d. may be liable for fraud, and if so might be responsible for rescission or damages.
The effectiveness of an exception to coverage is limited by:
a. strictly interpreting the exception to coverage against the insurer.
b. placing on the insurer the burden of proving that the exception applies.
c. both a. and b.
d. neither a. nor b., since exceptions to coverage are not generally permissible.
__________ liable on contracts with third persons.
a. Agents may intentionally make themselves
b. Agents are never able to make themselves
c. Agents are always
d. None of the above statements are true.
Administrative regulations:
a. are essentially industry advisories.
b. are case-law precedents.
c. generally have the force of statute.
d. are Constitutional principles.
A corporation that does business in the state in which it was created is called a(n):
a. domestic corporation.
b. foreign corporation.
c. alien corporation.
d. home corporation.
When an enterprise has made false and deceptive statements in advertising, the FTC
may require new advertising to correct the former statement so that consumers are
aware of the truth. This corrective advertising required by the FTC is also called
__________ advertising.
a. retractive
b. redactive
c. retroactive
d. refractive
The rights of an employee to be compensated are governed primarily by the same
principles that apply to the compensation of a(n):
a. partner.
b. stockholder.
c. agent.
d. independent contractor.
Which is not a correct statement about deeds?
a. The grantor must sign the deed.
b. A deed must be recorded to effectively pass title.
c. The fact that a deed is recorded provides notice to the world about who holds title.
d. A deed must be delivered to be effective.
In order to establish the tort of false imprisonment, a person must show imprisonment
for:
a. any amount of time.
b. at least one minute.
c. at least ten minutes
d. at least one hour.
A buyer may revoke acceptance because of a seller's failure to complete promised
repairs.
A consent decree is an informal settlement of an enforcement action brought by an
administrative agency.
The Constitution may be amended, but it always has been interpreted in the same way.
Despite consumer protection legislation, for most consumers pursing their rights in
court is not cost beneficial.
When a party waives compliance with one provision of a contract, the other party may
thereafter ignore other provisions of that contract.
Personal property includes all things of value including real estate.
Private citizens lack the authority to have polluting activities halted through the use of
injunctions.
Employers are accountable when employee use e-mails to defame competitors.
Arthur was looking for a Father's Day gift for his dad, Tony. Tony was a cigar smoker
but Arthur was a nonsmoker. Arthur went to a cigar store and was looking around when
the proprietor suggested Arthur try a new imported cigar. The proprietor touted this new
cigar as "just like the great Cuban cigars." Arthur was reluctant but did light one of the
cigars, which had a pleasant aromatic smell and took about five to six minutes to be
consumed. On this basis, Arthur bought a box of the cigars and presented them to his
father as a gift. When the father smoked one of the cigars, it gave off an acrid smell and
was completely consumed in less than two minutes. When Arthur saw this, he was very
upset and asked his father to try another. The same situation was repeated with the acrid
odor and the cigar burning down very quickly like a cigarette.
After Arthur tried unsuccessfully to return the cigars for a refund, Arthur filed a small
claims court action against the store. The case was based on the failure of the purchased
cigars to conform to the sample, breach of the implied warranty of merchantability, and
the misleading statement "just like the Cuban cigars." Discuss the probable outcome of
the case.
Consumer protection even protects a consumer from the consumer's own negligence.
An accumulation of complaints from employees, customers, or investors can lead to
imposition of restrictive new regulations and laws.
Taylor, a securities lawyer for a major Wall Street law firm, worked on numerous
successful takeover bids of companies listed on the New York Stock Exchange. Prior to
the public announcement of the takeover bids, Taylor provided information to Rogers
(his stockbroker) and to Price (his mistress) about certain planned takeover bids on
which he had provided legal services. Rogers, who was aware of the relationship
between Taylor and Price, made purchases of the target companies on Rogers' and
Price's behalf, netting them more than a million dollars in profits each. The SEC brings
an action against Taylor, Rogers, and Price under Rule 10b-5 and the Insider Trading
Sanctions Act of 1984. Taylor defends that he is an outsider not subject to the 1984 law
and Rule 10b-5, and that he received no personal benefit. Rogers and Price defend that
they were merely acting on stock market tips received from a person who did not
personally benefit from the disclosure. Decide.
The coverage of the Personal Auto Policy (PAP) is limited to claims arising from the
"use and operation" of an automobile.
Art and Mary were good friends who went through high school and college together.
Art eventually became a college philosophy professor and Mary went into the business
world. Mary became a senior vice-president of a management firm and learned many of
the company's trade secrets. Both Art and Mary signed one-year contracts with their
respective employers. The contracts contained clauses that provided that they would not
compete against their former employers for a period of one year after leaving their jobs.
The area covered by the restrictions for both Art and Mary was a radius of 500 miles
from the place of employment.
Both Art and Mary resigned and within two months took other jobs. Art went to work
for another college 50 miles away, teaching philosophy. Mary took a job 75 miles from
her former employment. Her new position was similar to her former job. The former
employers sued to enforce the anticompetitive covenants in the original contracts.
Discuss the probable outcome of the lawsuits.
Collective bargaining agreements generally are subject to a ratification vote by the
employees.
The burden of proving the existence of an agency relationship rests on the person who
seeks to benefit by such proof.
In an action for breach of contract, the statute of limitations runs from the date on which
the harm is discovered.
The pattern of rules that society uses to control the conduct of individuals in their
relationships is called law.
