A Chapter 11 debtor may use bankruptcy as an excuse for not performing contractual
obligations.
Even if a debtor’s salary is more than the median income for their state, they are still
eligible for Chapter 7.
Delaware and New Jersey are separated by the Delaware River. New Jersey has started
to build a pier extending well into the river and Delaware claims that the construction
will infringe on Delaware’s navigational rights. If a law suit is filed, it must be filed in
either Delaware or New Jersey state court.
A limited partnership is formed by the limited partner filing a certificate of limited
partnership with the appropriate state governmental authority.
General partnerships are not created by filing a form with a government agency.
States provide an automatic right to appeal inferior court decisions, usually to the state’s
trial court.
The fundamental underlying concept of corporate social responsibility is that
conscience resides in individuals but not in a corporation itself.
The Paris Convention removes all risk for inventors regarding patents.
In the absence of an agreement to the contrary, the Revised Uniform Partnership Act
mandates that general partnership profits be split equally amongst the partners.
In Alston v. Advance Brands and Importing Company, the court reasoned that if the
actual sale and purchase (of alcohol) is insufficient to remedy Alston’s alleged injuries,
then outlawing mere advertising must be insufficient as well.
A comprehensive values management program may be used in managing a
corporation’s diversity program.
Informal rulemaking is not permitted under the Administrative Procedures Act.
A secured creditor does not need to perfect their interest to be protected under the UCC.
Credit card companies may give out free umbrellas on campus when a student
completes an application for a card.
When completing the certificate of organization, the organizers of an LLC are not
required to disclose how the business is to be managed.
The centerpiece of a fiduciary relationship is the agent’s duty to act with due care when
performing the responsibilities of the agency.
Article 2 rules for acceptance of offers are more rigid than common law rules.
Once water quality standards are set, it is up to the EPA to monitor if the water source is
meeting that standard.
Properties owned by businesses are eligible for mortgage refinancing under the
Mortgage Forgiveness Debt Relief Act.
A business entity is considered a person in terms of assessing personal jurisdiction.
Each state follows its own individual whistle-blower statute.
Corporate bondholders are creditors of the corporation but not shareholders.
Stephen is 40 years old and has applied for a job at a large computer games
development company. He is told that he is “over the hill” and not eligible for
employment at that company. Stephen does not have a valid age discrimination suit
under the Age Discrimination in Employment Act because the act only applies to those
already employed but not to applicants in the hiring process.
Jones LLC and Smith LLC both have ten members and five managing members. Both
entities go into dissolution. The procedures for dissolution including preferences of
members in terms of who is paid first and so on will be identical for both companies.
Just as in the common law, the UCC recognizes the concept of anticipatory repudiation
allowing a breach to be declared prior to performance being due.
The First Amendment prohibits individuals from encroaching or prohibiting another
person’s freedom of speech.
Satires and parodies have generally been deemed not to be copyright infringement due
to the fair use doctrine.
The American Arbitration Association provides mediation services as well as arbitration
services.
Eight businesswomen have formed a privately held corporation. Their stock certificates
and the stock register of the corporation are public documents.
“Frosted Mini Wheats” is a descriptive mark that has acquired a secondary meaning and
is afforded protection.
Which of these creditors has first priority?
A.alimony due an ex-spouse
B.unpaid employees
C.general creditors
D.court costs
The Fair Labor Standards Act is administered and enforced by the:
A.Equal Employment Opportunity Commission.
B.U.S. Department of Labor.
C.individual states through state departments of labor.
D.Senate Labor Committee.
Happy Hops Brewery, Inc. has found that there business is expanding very quickly. The
decision to fire three new delivery drivers would be made by:
A.the shareholders.
B.the officers.
C.the board of directors.
D.the board of directors with the consent of the officers.
The National Environmental Policy Act (NEPA) process does allow for public notice so
that a citizen may influence an agency’s decision.
Eve is a promoter and has approached Adam with an investment opportunity. Eve
anticipates a generous profit and informs Adam that he too can realize a generous profit
also. This opportunity is not being offered to others. Assuming all other requirements to
classify this as a security are in evidence, the commonality of this transaction would be
described as a:
A.horizontal commonality.
B.parallel commonality.
C.vertical commonality.
D.common commonality.
Each of the following is considered trade dress except:
A.the white linen table cloths at the Four Seasons Restaurant in New York City.
B.the font and size of print used in a national store’s print advertising.
C.the brown uniforms and trucks at UPS.
D.the costume worn by your school’s mascot at sporting and other events.
The Sarbanes -Oxley Act imposed stricter regulations on how corporations do business
through regulations in each of the following areas except:
A.tax compliance.
B.financial reporting.
C.corporate governance.
D.auditing.
In Palmer v. Champion Mortgage Palmer received a debt-consolidation loan from
Champion. When she signed the loan agreement, she also received the required TILA
disclosures. Several days later Palmer received copies of the documents and a notice of
her right to cancel under TILA which permitted her to cancel within three business days
of three different dates stated in the document. Over a year later Palmer filed to cancel
the transaction claiming the time frames given to her in the TILA disclosures were too
confusing. The court held that Palmer:
A.could cancel her loan because the time disclosures were too confusing.
B.could cancel her loan because of the extended three year time frame of TILA.
C.could not cancel her loan because TILA does not permit cancellation of loans.
D.could not cancel her loan because the TILA disclosures would not confuse an
objectively reasonable consumer.
Fred is a student in your class and is frequently disruptive. Your professor has asked
him to stop talking four times and to stop texting three times; just in today’s class.
Finally your professor asks him to leave and when Fred says “make me”; your professor
loses it and knocks him out with a right cross to the jaw. Fred is now suing your
professor for civil battery. Both sides believe that you can provide valuable information
for their side. Which discovery method should they use to get your information?
A.a deposition
B.an interrogatory
C.a request that you write down your recollection and so they can file for a request for
production to obtain your statement
D.a request that you make an admission
When a party files a writ of certiorari to the U.S. Supreme Court, how many justices
must vote to hear the case for it to be accepted for review?
A.four
B.five
C.six
D.the vote must be unanimous
The No Electronic Theft Act primarily addressed protection regarding:
A.copyrights.
B.patents.
C.trademarks.
D.trade secrets.
The principal federal trial court is the:
A.U.S. District Court.
B.U.S. Court of Appeals.
C.U.S. Circuit Court.
D.U.S. Supreme Court.
Brenda is the CEO of a large corporation. While presenting a proposal to a commercial
bank for a corporate loan, she offers the bank’s commercial loan manager a $10,000
“gift” for favorable treatment.
A.Brenda is guilty of bribery whether the manager accepts or not because the offer
constitutes the crime
B.Brenda is guilty of bribery only if the manager accepts because the crime has not
occurred without acceptance by the other party
C.Brenda is guilty of bribery because she is dealing with a commercial bank in the
normal course of business
D.Brenda is not guilty of bribery
Finley is a United States Senator. While at a friend’s wedding he comments that another
senator, Glen, is corrupt and is an alcoholic and drug addict. A reporter overhears this
statement and includes the conversation in a written report that is published in the
state’s largest newspaper. Glen is called before a Senate investigatory committee and his
reputation is permanently scarred. Is Finley guilty of defamation?
A.yes, he has committed slander
B.yes, he has committed libel
C.no, he didn’t disseminate the information to a third party, the reporter did
D.no, he has an absolute privilege as a government official
Kim, a CPA, works for a small accounting firm consisting of two managing partners,
six accountants and four secretaries. During a skiing vacation, Kim has a serious fall
and is paralyzed from the waist down. While she cannot walk, her mind is not affected
and she is 100% capable of performing her accounting duties. She has asked the firm to
widen the aisles between cubicles so she can maneuver her wheel chair and to provide a
special desk that is wheel chair friendly. These accommodations would cost less than
$1,000.
A.under provisions of the Americans with Disability Act her requests should be granted
because they are reasonable
B.under provisions of the Americans with Disability Act her requests would not be
granted because they are not reasonable
C.since she can still do her job she is not deemed to have suffered a limitation to a
major life activity
D.the company is not required to make or offer any accommodations to Kim
Each of the following is a key component in the creation and implementation of a
company’s value management program except:
A.identifying the values that the company should promote.
B.identifying the values that the company’s peer competitors promote.
C.developing written policies and procedures to align behaviors with the company’s
preferred values.
D.training personnel about the policies and procedures implemented.
Which of the following was not an argument made by recipients of AIG bonuses
defending their right to receive and retain the bonus money?
A.the bonuses were negotiated into their contracts prior to the AIG collapse
B.the bonuses were based on meeting individual goals which the employees did meet
C.the bonuses were needed to retain AIG’s top talent who were necessary as the
company rebuilt
D.the bonuses came from money AIG had on hand at the time of the collapse and did
not come from the taxpayer supplied funds
A forum selection clause:
A.is written into a contract when the contract is entered into.
B.is created by the contracting parties after the dispute arises after they analyze the
fairest location for the trial.
C.is created by the court after determining where jurisdiction is the strongest.
D.is created by the parties after the dispute arises based on the type of dispute and
which state’s court has the appropriate precedent and statutory law to hear the case.
Whose only legal remedy is to bring a lawsuit against a borrower to try to recover the
money loaned?
A.secured creditors
B.unsecured creditors
C.mortgager
D.government agency
Bill is a general partner in a four member limited partnership with two general and two
limited partners. The partnership is silent with regard to the duration of the partnership
and Bill wishes to retire.
A.Bill may withdraw at any time and the partnership continues.
B.Bill must give six months notice before being permitted to withdraw.
C.The other general partner and the limited partner with the largest liability must agree
to his withdrawal.
D.The court must grant permission for him to withdraw since the agreement was silent
and the other partners and third party customers of the partnership must be protected.
Bankruptcy is primarily governed by what type of law?
A.federal statutes
B.state statutes
C.blend of state and federal statutes
D.administrative regulations
The Electronic Communications Privacy Act prohibits employers from monitoring each
of the following unless consent to monitor is granted except:
A.employee incoming personal phone calls.
B.employee outgoing personal phone calls.
C.employee e-mail.
D.employee voice mail.
Maria is the CFO of a company being investigated by the SEC for various alleged
violations. Each of the following would constitute an obstruction of justice except:
A.ordering her secretary to lie if she is questioned.
B.refusing to answer questions invoking the Fifth Amendment.
C.shredding her personal calendar and appointment book.
D.changing some figures on documents used to support filed financial statements.
The Truth in Lending Act covers creditors who:
A.regularly engage in extending credit for goods and services.
B.occasionally extend credit for goods and services.
C.extend credit for real estate.
D.lend money to their relatives.
The Clean Air Act (CAA) is an uncontroversial statute.
Which of the following requires a formal filing to be recognized as a valid business
entity?
A.a sole proprietorship
B.a general partnership
C.a limited partnership
D.all business entities require a formal filing to validly exist
April hires Christine to landscape her yard. They agree on a price, agree on the types
and colors of the plantings and agree on the start date. When Christine shows up on the
agreed date, April refuses to allow her to begin work. Christine has sued April for
breach of contract. At trial, April produces the contract which states that the plants were
to be a mixture of red, white and blue and were to be between 12″ and 18″ in height.
She then produced pictures to show that Christine had arrived with only purple and
yellow plants that were 6″ to 8″ high. This type of evidence produced by April would be
called:
A.inculpatory evidence.
B.summary evidence.
C.exculpatory evidence.
D.direct evidence.
A design patent will last for:
A.14 years from the date of the filing of the application with the United States Patent
and Trademark Office.
B.14 years from the date of the approval of the application granted by the United States
Patent and Trademark Office.
C.20 years from the date of the filing of the application with the United States Patent
and Trademark Office.
D.20 years from the date of the approval of the application granted by the United States
Patent and Trademark Office.
Which of these is not regulated through the Transport and Air Quality Program?
A.tailpipe emissions
B.distance that semi-trucks may travel in one day
C.performance standards
D.composition of fuel
Bill is a lab technician and in charge of safety inspections and injury prevention due to
faulty equipment at a university chemistry lab and Bill’s job includes the repair of faulty
equipment. One morning, as a result of his inspection, Bill discovers a gas burner with a
broken valve and does a very poor job of repairing it, using techniques not considered
proper or acceptable. When the morning class arrives, Halle uses the faulty burner and
is burned when it catches fire. Bill’s negligence is based on:
A.nonfeasance.
B.misfeasance.
C.negligence per se.
D.res ipsa loquiter.
“What if everyone took these same actions” is a question sometimes called the:
A.universalization approach.
B.utilitarian approach.
C.functionality approach.
D.morality approach.
The Restoring American Financial Stability Act of 2010 established the Consumer
Financial Protection Bureau. What is the authority of this agency?
Tom is a cop and has a reputation for being one of the toughest men in the precinct. He
regularly hangs out with the guys and flirts with the women. After two years he
announces that he is gay and always has been. A week later he is fired when his
lieutenant announces that he can’t trust a gay person and feels too uncomfortable around
him. If Tom files a discrimination complaint with the EEOC, what will be the outcome?
________ refers to the having a conscious system in use for deciding moral dilemmas.
When an appellate court sends a case back to a lower court for further action, the court
is said to ________ the case.
Name the three instances where a federal court may establish subject matter jurisdiction
over a defendant.
When an invention is shown to be new and unique, the invention has met the ________
standard.
The United States Supreme Court exercises both original and appellate jurisdiction. In
which matters may the court exercise its original jurisdiction?
The civil law system relies heavily on ________ to define their laws.
In many states, if a person has been declared incompetent, contracts that person enters
into are classified as void ________ or not valid from the onset.
A disability, as defined in the Americans with Disabilities Act, is an impairment that
significantly limits a person’s ability to participate in a ________ activity.
How is it possible for two different parties to have simultaneous rights to use the same
trademark?
Evidence of specific intent to deceive, manipulate or defraud is called _______.
The Fair Debt Collection Practices Act applies to ________ collecting a debt for the
creditor.
What was the effect of the creation of the LLC on those seeking to open a new
business?
When ownership in land is subject to being cancelled it is said to be ______.
X-mart has just purchased 100 acres of land in Happyville. The town, fearful of a huge
chain store ruining the economy and putting local businesses out of business quickly
passes an ordinance restricting the size of any new buildings to no more than 5000
square feet. The typical X-mart store averages approximately 100,000 square feet. Does
the town of Happyville have the right to enact a zoning restriction of this nature?
Generally accepted standards of right and wrong in a given society are called _______.
An LLC member with ownership sufficient to decide or veto internal operational
matters is called a ________ member.
