The Administrative Procedure Act:
a. applies to all federal agencies.
b. applies to executive branch agencies but not to independent agencies.
c. applies to independent agencies but not to executive branch agencies.
d. does not apply to federal agencies.
Farmer Fred is leasing pasture land from Wealthy Warren. Farmer Fred is working the
soil to turn the pasture land into land that will be able to grow crops. As Farmer Fred is
preparing the field, he discovers a treasure chest full of gold and silver coins. The coins
are all dated before 1810. A finder of treasure trove under common law:
a. was entitled to keep the treasure trove.
b. was required to turn the property over to the owner. Here, under common law,
Farmer Fred is required to turn the treasure trove over to Wealthy Warren.
c. was required to turn the treasure trove over to the State.
d. was required to turn the treasure trove over to the federal government who will give
the treasure trove to the closest Native American reservation.
A trust created in a will is:
a. an inter vivos trust.
b. a constructive trust.
c. a testamentary trust.
d. a probate trust.
What law prohibits mergers that are anti-competitive?
a. Sherman Act.
b. Clayton Act.
c. Robinson-Patman Act.
d. Radmon Act.
The most accurate statement about the Robinson-Patman Act is:
a. It has rarely been enforced in recent years.
b. The U.S. government has stepped up its enforcement during the last decade.
c. It has been declared unconstitutional.
d. It was repealed by Congress in 1998.
The Family and Medical Leave Act applies to:
a. companies with 15 or more full-time workers.
b. companies with 50 or more employees.
c. companies with 100 or more employees.
d. any company engaged in interstate commerce.
Which of the following countries has not passed legislation to comply with the
European Unions directive prohibiting the transfer of personal data to any countries that
do not provide adequate privacy protection?
a. Canada
b. Australia
c. United States
d. New Zealand
Jack goes to Fast Copy Center and pays to have 40 copies of a textbook made. Jack
then sells the photocopied versions of the book to fellow students for $60 a copy (as
opposed to the $95 textbook price). The textbook author learns of this and sues Jack and
the copy center. Which statement is correct?
a. Jack and the copy center are both liable to the author.
b. Jack is liable to the author but the copy center is not.
c. The copy center is liable to the author but Jack is not.
d. Neither the copy center nor Jack is liable to the author.
In Jones v. Clinton, the court held:
a. Paula Jones did not demonstrate the essential elements for her claim.
b. Paula Jones was entitled to a summary judgment.
c. public policy required that the case be dismissed because of the Presidents
governmental position.
d. President Clinton failed to comply with a discovery order.
The elements in a defamation case are:
a. defamatory statement; falseness; communication; and injury.
b. a contract; knowledge of the contract; improper inducement; injury.
c. false or misleading fact statements; statements in commercial advertising; likelihood
of harm.
d. duty; breach of duty; proximate causation; and damages.
If a court orders rescission and restitution of a contract under which Nala sold a
baseball card to Shirley in exchange for $450:
a. Shirley must return the baseball card.
b. Nala must return the $450.
c. Both a and b.
d. Neither a nor b.
The test of “foreseeability is generally used to determine the existence of which element
of a negligence case?
a. Duty of due care.
b. Breach.
c. Factual cause.
d. Injury.
A civil case generally proceeds as follows:
a. answer, complaint, discovery, trial, verdict.
b. complaint, answer, trial, discovery, verdict.
c. complaint, answer, discovery, trial, verdict.
d. discovery, complaint, answer, trial, verdict.
Meredith, a shareholder in Quarto, Inc., notified Quarto’s board of directors that the
corporation had been wronged and asked the board to bring a lawsuit in the
corporation’s name. In response to Meredith’s demand, the board:
a. can file suit on behalf of the corporation.
b. can reject Meredith’s demand or simply fail to respond.
c. can appoint a Special Litigation Committee.
d. can do any of the above.
In the Unocal Corp. v. Mesa Petroleum Co. case, the court:
a. found the issuance of a preliminary injunction against Unocals offer was proper.
b. ruled that a board of directors may not act primarily out of a desire to keep itself in
office.
c. issued a permanent injunction against a selective exchange offer.
d. applied the Williams Act to analyze the target companys actions.
Mona co-signs a promissory note with her daughter Beth so Beth can purchase her first
car. Mona will be discharged from her obligation on the note:
a. if Beth pays the obligation in full under the terms of the note.
b. if the creditor extends the final due date because of allowing Beth to skip a payment
in December.
c. Both of the above.
d. only if Mona dies before Beths obligation is discharged.
Under the 1934 Act, an issuer must register with the SEC if:
a. it completes a public offering under the 1933 Act.
b. its securities are traded on a national exchange.
c. it has at least 500 shareholders and total assets that exceed $10 million.
d. All of the above.
Under the Clean Air Act:
a. California was granted special permission to set stricter pollution standards than the
federal standards.
b. all states must follow federal automobile emission standards.
c. the states must each set automobile emission standards, which must then be approved
by the EPA.
d. the EPA was directed to reduce automobile pollution levels by 50 percent within six
years.
The 1934 Act is primarily intended to:
a. maintain the integrity of the secondary market for securities.
b. make sure companies who wish to raise money by the sale of securities comply with
disclosure requirements for the initial offering.
c. coordinate federal and state laws with a primary emphasis on allowing the individual
states to maintain primary control over securities law.
d. All the above are correct.
If a consumer cancels a door-to-door sale within the required time, how many days does
the seller have to return the buyer’s money?
a. Three.
b. Ten.
c. Twenty-one.
d. Thirty.
LLCs have become popular for all except which of the following reasons:
a. management flexibility.
b. tax status as a partnership.
c. uniformity of law.
d. limited liability.
Federal law regulates:
a. point source and non-point source pollution.
b. neither point source nor non-point source pollution.
c. point source but not non-point source pollution.
d. None of the above is correct.
Mack writes a check to his maid, Marianne, in payment for services rendered. Marianne
indorses the check in blank and gives the check to her masseuse, Janet, in exchange for
a neck massage. Without indorsing the check, Janet gives the check to Martin, her
newspaper carrier in payment for the next four month’s delivery charges. Martin
indorses with a special indorsement and negotiates the check to his church, St. Mark.
The church indorses the check and deposits it in its bank account. If Mack’s bank later
dishonors the check, to whom may St. Mark’s look for recovery?
a. Martin only.
b. Only Mack.
c. Mack, Marianne, Janet, and Martin.
d. Mack, Marianne, and Martin.
Under the Endangered Species Act, what federal agency is responsible for preparing a
list of species that are in danger of becoming extinct?
a. Department of Commerce.
b. Department of the Interior.
c. Department of Labor.
d. Both a and b are correct.
The issue of the constitutional protections afforded flag burning was addressed in:
a. Texas v. Johnson.
b. United States v. Lopez.
c. Marbury v. Madison.
d. Palmore v. Sidoti.
In order to constitute a valid gift:
a. the donor must intend to transfer ownership of property immediately.
b. the donee must accept the gift.
c. the donor must deliver the gift property to the donee.
d. All of the above are necessary for a valid gift.
Which of the following would probably not be required of employers to reasonably
accommodate for religious beliefs?
a. Flexible scheduling.
b. Closing the business on Sundays.
c. Reassigning employees within the company.
d. Allowing employees to switch work schedules.
Charles owns 1,000 shares of stock in Temperan, Inc. Charles wants to obtain corporate
records including the corporation’s minute book and accounting records. Under the
Model Act, Charles is entitled to this information if he requests it in good faith and:
a. he has a proper purpose.
b. he owns at least 1 percent of the company or $2,000 of stock.
c. he is an employee of Temperan.
d. he is a controlling shareholder.
A tenancy with no fixed duration is a:
a. tenancy from month to month.
b. tenancy at will.
c. periodic tenancy.
d. tenancy for years.
On April 10, Amy agreed to buy a riding lawn mower from Mowers Plus, signing a
promissory note and security agreement giving Mowers Plus a security interest in the
mower. On April 15, Amy took delivery of the mower. On May 1, Mowers Plus filed a
financing statement. Which of the following is correct?
a. Despite the agreement, Mowers Plus could not create a security interest in the mower
since it is a consumer good.
b. Mowers Plus has attachment of a security interest in Amy’s mower.
c. Mowers Plus completed the attachment of a security interest in the mower when it
filed the financing statement on May 1.
d. The security interest has not attached, but attachment is unimportant to enforceability
of a security interest.
The Employee Retirement Income Security Act (ERISA) requires employers to
establish pension plans for employees.
Under the UCC, the seller’s right to correct a shipment of non-conforming goods is
called:
a. correction.
b. cure.
c. cover.
d. retender.
Tuan, Inc. contracted to buy 200 monogrammed blankets from Titex, Inc. Tuan paid for
the blankets in advance. Before segregating and monogramming the blankets, Tuan
filed for bankruptcy. Tuan will not be able to recover the blankets because:
a. Tuan is a merchant.
b. the blankets were not identified to the contract.
c. Tuan became bankrupt after the contract was formed.
d. the goods were specially manufactured.
Judith is a CPA with an excellent reputation and client base. She sells her tax
preparation business to Shawn, and the sales contract includes a noncompete clause
restricting Judith from opening a similar business for two years within a 10-mile radius
of her former office. If she opens a tax preparation office five miles away after one year,
a court would probably:
a. grant an injunction barring her from operating the new office.
b. order confiscation of all of her new client files and turn them over to Shawn.
c. refuse to become involved, as the noncompete clause was illegal.
d. refuse to enforce the noncompete clause, as it is unreasonable regarding time and
geographic area.
Extraterritoriality
a. The power of a Country to go into other countries and enforce their labor laws.on
citizens of other countries.
b. The power to regulate tariffs in foreign nations as provided for by GATT.
c. The power of one nation to impose its laws in other countries on its citizens.
d. The power of a Company to extend its subsidiaries overseas without abiding by our
trade laws.
In a breach of contract the injured seller may resell goods not accepted by the buyer. If
the resale is commercially reasonable, the seller may recover the difference between the
resale price and contract price, but cannot recover incidental damages.
Elion was a partner in a partnership. Elion’s death would be considered a wrongful
dissociation.
Parol evidence refers to anything (other than the written contract itself) that was said,
done, or written before or as the parties signed the contract.
Explain the difference between attachment and perfection.
Revocation is the withdrawal of an offer by the offeror.
A sports fan, injured by a hockey puck that flew into the stands during an NHL game,
would be subject to the defense of assumption of the risk in a suit to recover for her
injuries.
Martina developed a new type of apple tree which could be reproduced through
grafting. She cannot protect her rights in this tree by obtaining a plant patent since the
tree cannot be reproduced by planting its seeds.
BGH Accounting firm audited the financial statements that were included in E-prise’s
registration statement. The financial statements overstated sales by 2000%. In
conducting the audit, BGH did not comply with generally accepted auditing standards
(GAAS). Under Section 11 of the 1933 Act, BGH is liable for any material
misstatement in the financial statements.
Krista, the Director of Advertising at Trein, Inc., approved a series of magazine
advertisements using a close-up photograph of celebrity look-alike models driving a
train engine with the slogan, “Get on Board with Trein. Each ad included a signature,
meant to look like that celebritys autograph. Since in most cases, these “autographs are
not legible, this series of ads does not commit any tort.
Discuss the UCC rules on the limitation of damages in a contract.
Consumers have been active in requesting government regulation of web data collection
to protect their privacy.
Agreeing not to open a competing business could be consideration.
Garden World orders 120 hand cultivators from Green Thumb, Inc. When the
cultivators arrive, they seem fine, so Garden World accepts them. As the stock person is
putting the cultivators on display, she notices that the tines are loose on all the
cultivators. Garden World returns the cultivators to Green Thumb, but they are lost
when the delivery truck slips on an oily spot in the road and drives into a nearby lake.
Discuss who bears the risk of loss for the shipment.
The Framers of our Constitution, a true cross section of the population at the time,
created the Constitution by amending the Articles of Confederation, which had been the
governing document of the colonists.
If interrogatories are being used as a form of discovery, the party being questioned must
generally answer all the questions orally under oath.