Who conducts cross-examination when the defendant is presenting its case?
a. the defendant because the defendant always does cross-examination
b. the plaintiff
c.the judge because the burden of proof has shifted
d.none of the above
Early neutral evaluation is a means of alternative dispute resolution used prior to
discovery.
a. True
b. False
Milton Friedman’s view of the social responsibility of business is best described as:
a. the social responsibility of a business is to make money within the rules of the game.
b. the social responsibility of a business should be dictated by its managers.
c.the social responsibility of a business requires it to be environmentally clean.
d.businesses have no social responsibility.
e. none of the above
Pool Line is the manufacturer of a pool cleaning system that has been called by the pool
construction industry, “the miracle we have waited a lifetime for.” The cleaning system
is very effective and recommended by all consumer magazines. The result is that 93
percent of all new pools have the system, and 94 percent of all pool owners buying
replacement systems choose Pool Line. The relevant product market is:
a. pool cleaning systems.
b. pool supplies and equipment.
c.cleaning equipment.
d.none of the above.
Expropriation is prohibited in countries that are members of the United Nations.
a. True.
b. False
Ralph Waters operates a watch repair business in Mesa, Arizona. He orders most of his
parts from out-of-state suppliers. He orders watch faces from a supplier in Escondido,
California. The supplier does not have a sales force but relies on catalogues shipped to
watch dealers throughout the country as his means of marketing. Ralph installed several
of the suppliers’ watch faces on his customers’ watches. A strange chemical reaction
between perspiration and the faces of the watches caused Ralph’s customers to develop
rashes and nausea, with some requiring hospitalization. Ralph wishes to bring suit to
recover damages ($75,000) from the Escondido supplier. Which of the following
statements is true?
a. Ralph must bring suit in California to gain jurisdiction over the supplier.
b. Ralph has a diversity action that can be brought in federal court.
c.Ralph will not be able to bring suit in Arizona because there are no contacts in the
state.
d.none of the above
Instructions for the jury are given by the lawyers in the case during their closing
arguments.
a. True
b. False
Pestro is the manufacturer of a weed killer that is used in the parks in Metroville. After
the parks were sprayed, a group of children became ill and required hospitalization.
Two dogs that had been with the group died.The parents of the children and the dog
owners could:
a. bring suit against Pestro under 402A even though there is no privity.
b. not bring suit against Pestro because of a lack of privity.
c.not bring suit against the city.
d.none of the above
A U.S. luxury liner was attacked by an Iraqi ship in the Persian Gulf. Many passengers
were injured and the ship was damaged. The owner of the ship brought suit in federal
district court against the government of Iraq. The suit will:
a. be heard because the attack was a violation of international law.
b. be heard because the attack harmed U.S. citizens.
c. not be heard under the doctrine of sovereign immunity.
d. be heard but only in the International Court of Justice.
The inherence school is one that follows the standard of society’s interest coming first.
a. True
b. False
Reasonable accommodation is required of employers when employee’s religious beliefs
interfere with work schedules.
a. True
b. False
A screensaver program that uses the likeness of a person is commercial appropriation.
a. True
b. False
The Pension Reform Act was passed in response to company bankruptcies that
discharged their pension plan obligations.
a. True
b. False
All states recognize non-compete agreements as enforceable contract clauses.
a. True
b. False
Christie’s and Sotheby’s:
a. faced criminal charges of price fixing.
b. faced civil charges of price fixing.
c.faced both criminal and civil charges of price fixing.
d.faced neither criminal nor civil charges of price fixing.
What is the purpose of the LESCANT factors?
a. To deal with issues beyond the law when doing business in other countries.
b. To control tariff imports and exports.
c. To establish a uniform system of international contract laws.
d. To eliminate grease payments.
e. none of the above
The failure to follow industry code is a breach of duty.
a. True
b. False
A price cap imposed by a distributor on retail outlets is a violation of federal antitrust
laws.
a. True
b. False
A retail store:
a. has no duty to protect customers from criminal conduct by third parties.
b. owes its customers duties as licensees.
c.owes its customers duties as invitees.
d.need not protect its customers against problems it has knowledge of.
Procedural due process rights exist in administrative, civil, and criminal proceedings.
a. True
b. False
An employer instituted a wellness program for all employees. The wellness program
includes an exercise facility
a. inherence school
b. enlightened self-interest school
c.invisible hand school
d.social responsibility school
An ombudsperson and/or ethics hotline are both critical to an ethical culture in a
company.
a. True
b. False
Sarbanes-Oxley is:
a. a philosophical school that serves society first
b. federal legislation that imposed ethics requirements on corporations
c.an international accounting treaty
d.the former CEO of World.Com
American Greetings, a family-owned corporation, wished to take the company private,
and the family shareholders made an offer to purchase the shares of all nonfamily
members. The family owns 10% of the company’s shares, but has 50% of the voting
power. The board refused to approve the offer for the shares because the price was too
low. Which of the following is correct?
a. The approval of the board is not required for the family purchase of shares.
b. The board’s failure to approve the transaction means that the acquisition cannot be
done without dissenting
shareholders.
c.The approval of the board cannot be obtained until the family uses its votes to
restructure the board with directors friendly to its proposal.
d.Those with a minority interest cannot acquire other shares.
The Export Trading Company Act allows for international joint ventures that would
otherwise be anticompetitive.
a. True.
b. False
Market power is:
a. represented by a relatively inelastic demand curve.
b. defined by statute.
c.the same as market share above 50 percent.
d.all of the above
The Digital Millennium Copyright Act:
a. makes it a criminal offense to create programs to circumvent encoded copyrighted
materials.
b. does not impose liability on those who provide Internet access to employees.
c.does not impose liability for circumvention of encoding of copyrighted materials for
personal use.
d.both b and c
e. none of the above
Tippees:
a. are people who get information from corporate insiders.
b. are relatives of corporate directors who are given nonpublic information.
c.can be liable under section 10(b).
d.all of the above
The duty of loyalty of an agent to a principal does not cover conflicts of interest.
a. True
b. False
Which of the following would mitigate an officer’s or corporation’s sentence under the
corporate sentencing guidelines?
a. officer had no direct knowledge; he/she was only the supervising manager
b. the company had an ethics training program
c. subordinates failed to follow orders
d.subordinates were demoted for questioning decisions
According to Arizonav.Gant, police officers:
a. may not serach a vehicle when the owner is present.
b. may search a vehicle with the driver’s permission or with a warrant.
c. may search a vehicle only with a warrant.
d.may no longer search vehicles because it is an invasion of privacy.
Bob’s Grocery merges with Pete’s Produce and becomes PB Foods. The transaction is a:
a. merger.
b. consolidation.
c.tender offer.
d.none of the above
Nearly 30 nations have accepted OECD principles.
a. True.
b. False
Regulation A filings are exempt from Section 11 liability.
a. True
b. False
Describe three defenses to product liability.
H2O Plumbing has been working on a residential subdivision project for Paradise
Builders. H2O agreed to do all plumbing work on each of the houses for a fee of $5200
per house. H2O has reviewed the market and decided that most plumbers are getting
between $5500 and $6000 for houses of comparable size. H2O has done the initial work
on all of the houses and has told Paradise it will stop work unless the price is increased
to $5500 per house.
Paradise is on a tight schedule with its construction lender and with home buyers and
succumbs to the demand. Later, when the houses are constructed, Paradise refuses to
pay any more than $5200 per house. Explain H2O’s rights to them.
Discuss how EMF problems can affect property values.
Name the statutes that affect contract formation in cyberspace.
Discuss the Administrative Procedures Act and its amendments and purpose.
What protections does the Equal Pay Act provide?
Allegheny Airlines is incorporated in Delaware and has flights throughout the states of
Pennsylvania, Ohio, West Virginia, New Jersey, New York, and Connecticut, and also in
Washington, D.C.Wayne Jones, a resident of Las Vegas, Nevada, is severely injured
when an Allegheny flight carrying him from Pittsburgh to Johnstown, Pennsylvania,
crashes on landing. Jones has damages of over $250,000. In what court can Jones
properly bring suit and where?
The sale of the goodwill of a partnership requires unanimous consent.
a. True
b. False
Discuss Goldman Sachs obligation to disclose to its investors its position in the
mortgage instrument markets.
Charles Goodman has filed a suit against his employer for violation of Title VII but has
also joined the union in the suit because the union agreement resulted in the
discrimination. Is the issue a subject matter for collective bargaining? Can the union be
held liable?
Maine Central Railroad had a labor dispute with its employees and their Brotherhood of
Maintenance of Way Employees (BMWE). Roughly 300 of its 400 employees belonged
to BMWE. The strike of BMWE slowed traffic on Maine Central’s lines. However, the
traffic was transferred to Guilford Transportation Industries Lines. Guilford is the
parent company of Maine Central. BMWE workers then refused to put rerouted traffic
on Guilford lines. Guilford claims this is an unfair labor practice. Discuss.