Requiring a franchisee to purchase all franchise related materials and supplies,
trademarked and otherwise, from the franchisor violates the Small Business Franchise
Act.
A general partner who rightfully dissociates from a partnership remains liable for
predissociation debts of the partnership.
State long-arm statutes are used to establish subject matter jurisdiction over out-of-state
defendants.
As long as there is proof that the parties intended to form a contract for the sale of
goods and there is mention of the goods, quantity, and the price there is a valid offer
under the UNCISG.
After conducting an investigation of a discrimination claim, should discrimination be
found, the EEOC may immediately file suit on behalf of the aggrieved employee.
In recent years, the Supreme Court of the United States has generally accepted only
about 10% of the petitions for a Writ of Certiorari made to the court each year.
The Equal Credit Opportunity Act is limited to regulating applications for credit, but
not to the charging of higher interest rates based on the race of the consumer.
Bonds are debt instruments secured by company assets.
About half of the states provide the same level of protection to general partners in an
LLP as is provided to a limited partner in a limited partnership.
Enron Corporation was a private corporation dealing in a governmentally regulated
market.
In early part of the 2000’s, Wall Street analysts rated Enron’s stock risk as ‘staggeringly
low”.
Substantive Due Process requires that a state statute must be published for public
inspection and be clear and specific.
Powers of an administrative agency to carry out the enabling statute are exercised
through rulemaking, enforcement, licensing, and adjudication.
The only way to obtain protection for a trademark is by registering the trademark with
the U.S. Patent and Trademark Office.
Generally, courts do enforce a strict compliance standard for contact conditions.
Financial information provided to a prospective franchisee must be audited.
Trademarks must be distinctive and cannot be classified as arbitrary or fanciful with no
inherent relationship to the company’s product or service.
Collection agencies may threaten to put the debtor in jail in an effort to recover the
money that is owed to the creditor as long as the debt is legitimate and overdue.
Reciprocity is an important concept in the Berne Convention.
UNCISG has a writing requirement that is similar to the Statute of Frauds.
Race discrimination directed at white employees violates Title VII if the employer’s acts
were motivated by race.
Rule 10(b)(5) of the ’34 Act is aggressively used by the SEC in terms of insider trading
enforcement.
The Foreign Corrupt Practices Act was created to prevent bribery of foreign officials.
Uncle Buck has lent you $10,000 for tuition and living expenses. The agreement was
oral. This contract violates the statute of frauds, so it is unenforceable and you need not
repay the loan.
In all forms of business entities, the entity itself pays taxes on money earned by or
through the entity.
It is possible for authorities to conduct an illegal search of your home without ever
entering your property or the home itself.
Rockefeller’s Standard Oil Trust is an example of a company that participated in
antitrust behavior.
Patios R Us contracts with Karl’s Concrete to have 35 yards of concrete delivered to a
job site they are working on. Payment is to be made 30 days after delivery. Five days
after the concrete is delivered, Patios R Us files for bankruptcy and the filing is
accepted by the court. Karl’s cannot sue to enforce the contract and receive payment.
A party to a contract may be discharged from performance due to operation of law if the
other party unilaterally alters the contract.
Questions asked by an attorney of witnesses that they have called to testify is called
cross examination.
In State v. Yenzer, after Yenzer was arrested because the dental receptionist disclosed an
appointment time in violation of the Health Insurance Portability and Accountability
Act patient privacy provisions, she claimed that evidence discovered during her arrest
should be excluded due to the violation of the HIPAA breach of confidentiality. The
court decided that violation of a federal statute does trigger the exclusionary rule.
Blue-sky laws refer to federal security laws that preempt state security laws.
One disadvantage of a sole proprietorship business entity is that it is restricted to the
principal and the principal’s immediate family in terms of number of employees that
may work for the business.
The FDA has authority to bring criminal prosecutions.
The right of a buyer for a seller to cure any problems with the goods ends when the
performance period is through under UNCISG.
Family limited partnerships are designed solely for estate planning and asset
distribution for wealthy families.
Assume that you are a freshman and live in your school’s dormitory. The agreement
you’ve signed with the school states that you may move in on September 1st and must
vacate the room by May 31st of the following year. Should you wish to live in the
dormitory during your sophomore year you must sign a completely new contract with
the school. Your agreement with the school best approximates a:
A.fee simple defeasible.
B.periodic tenancy.
C.tenancy for years.
D.easement by grant.
The Sunshine Act requires agencies to announce their meetings at least ______ in
advance.
A.three days
B.seven days
C.fourteen days
D.thirty days
Respondeat superior makes a principal liable for:
A.acts of the agent based on implied authority.
B.unauthorized acts of the third party.
C.frolics and detours of the agent.
D.negligent acts of independent contractors.
The IRS has developed a three prong status to determine an agent’s status. Which of the
following is not a prong in this test?
A.whether the working relationship is written or oral
B.behavioral aspects of the agency
C.the type of working relationship between the principal and the agent
D.the financial arrangements between the principal and the agent
In Belanger v. Swift Transportation, Inc., after Belanger had an accident driving a
company vehicle, the accident was reported to a government website. Belanger claimed
that Swift acted with malice and lost any reference related privilege by reporting
information to a third party website.
A.Swift followed all company procedures so they did not act with malice and
defamation did not occur
B.Swift has an absolute privilege to report on former employees so no defamation
occurred
C.Swift showed malice by not reporting Belanger’s side of the story so they are guilty
of defamation
D.Swift defamed Belanger by reporting to a web site as privilege only applies in
company to company references
The adjudicative phase of the criminal justice process includes each of the following
components except:
A.setting bail.
B.the defendant entering a plea.
C.filing the indictment or information.
D.sentencing.
Antitrust laws designed to combat the problem of monopolization is known as:
A.horizontal restraints.
B.structural offenses.
C.rules of reason.
D.consent orders.
In Brower v. Gateway Computer, the issue involved the enforcement of a mandatory
and binding arbitration agreement pertaining to disputes between Gateway and its
customers. With regard to the agreements enforcement, the court determined that:
A.because the Standard Terms and Agreements document made the arbitration
agreement enforceable after the customer retained the computer for thirty days and over
thirty days had elapsed, the agreement was considered accepted and enforceable.
B.because Congress had indicated in the Federal Arbitration Act that arbitration
agreements were the preferred method of dispute resolution, the courts were bound and
preempted by Congress’s stated policy so the agreement had to be enforced.
C.because the parties could not agree on a suitable arbitrator, the clause was useless and
only litigation before a court could adequately and fairly resolve the dispute.
D.because the mandatory fee required by the arbitration forum exceeded the cost of
most of Gateway’s products, the prohibitive cost of arbitration made the arbitration
unfair and biased toward Gateway and therefore nullified the arbitration clause.
The Toxic Substance Control Act (TSCA) does which of the following:
A.gives the FDA broad jurisdiction in controlling risks from manufacturing, processing,
use, and disposal of chemical compounds.
B.gives the state legislatures broad jurisdiction in controlling risks from manufacturing,
processing, use, and disposal of chemical compounds.
C.gives the EPA broad jurisdiction in controlling risks from manufacturing, processing,
use, and disposal of chemical compounds.
D.gives the EPA limited jurisdiction in controlling risks from manufacturing,
processing, use, and disposal of chemical compounds.
When are parties able to bring judicial challenges to an agency’s rule during the
rulemaking process?
A.during any point in the rule making process
B.after public notice has been given
C.after the final rule has been published
D.during public comment
In Grimshaw v. Ford Motor Company, Ford was found liable because:
A.Ford ignored a governmental recall warning to the detriment of its customers.
B.Ford placed profit over the potential impact to customers including potential loss of
customer’s lives.
C.Ford improperly designed the Pinto and did few if any safety tests so the flaw wasn’t
uncovered until accidents started occurring.
D.Ford acted unethically by hiding the fact that lawsuits were being filed for the Pinto’s
defect from the government and the general public.
Arthur Andersen was:
A.Enron’s largest customer.
B.Enron’s largest supplier.
C.Enron’s auditing firm.
D.Enron’s largest competitor.
The Environmental Defense Fund, an environmental watchdog group, files a lawsuit to
prevent future open pit coal mining in West Virginia. This type of lawsuit is known as a:
A.wrongful damage suit.
B.citizen suit.
C.nuisance suit.
D.negligence suit.
The National Environmental Policy Act (NEPA) sets out a ________ for making
decisions.
Christine is a resident of Delaware and while shopping in Pennsylvania, is assaulted by
Puuki, a New Jersey resident. Ordinarily, venue in this case would originally be in:
A.Delaware.
B.Pennsylvania.
C.New Jersey.
D.in the state chosen by Christine because multiple states are involved.
In Cipollone v. Liggett Group, Inc., et al., Cipollone sued based on state laws regulating
advertising and promotional activities in the tobacco industry.
A.Cipollone won because the state laws were specific and were violated by the
defendant
B.Cipollone won because although there were federal laws regulating promotion and
advertising activities regarding tobacco products, they specifically authorized
supplemental state laws negating preemption
C.Cipollone lost because the federal and state laws conflicted, negating both, so the
court had no basis to make its decision
D.Cipollone lost because he relied on State law which was preempted by federal law
The power of a municipality to pass zoning ordinances stems from:
A.the common law.
B.federal statutes passed by Congress.
C.statutes passed by the state legislature.
D.police powers.
Harry sees an AK-47 automatic assault rifle in a gun shop window. He inquires about
the price and is told that it is $2,500. Harry signs a contract promising to pay the $2,500
on Friday, taking possession of the rifle when payment is made. On Thursday, a law is
enacted making the ownership, sale or possession of an automatic rifle illegal. This
contract:
A.automatically terminates due to impossibility.
B.automatically terminates due to impracticability.
C.automatically terminates due to frustration of purpose.
D.is enforceable and not affected by the new law because it was entered into before the
law took effect.
The University of Dover and Dover University are bitter cross town rivals. They
compete in everything from sports to academics. The schools, because of shrinking
enrollment, make an agreement to give all incoming students free tuition for one
semester before raising the existing rates the following semester. This action would be
considered:
A.a horizontal restraint violating the Sherman Act.
B.a vertical restraint violating the Sherman Act.
C.a tying agreement in violation of the Clayton Act.
D.price discrimination in violation of the Robinson-Patman Act.
Which of these is not a source of administrative law?
A.Constitution
B.Administrative Procedures Act
C.Common Law
D.Treaties
Because it is not a state, cases arising in Washington D.C. are heard by:
A.a specially appointed court that reports directly to the U.S. Supreme Court.
B.courts from the Virginia state system because Virginia is the closest state.
C.the Federal Circuit Court of Appeals.
D.the Court of Appeals for the District of Columbia.
Employee protection from use of regular or random drug or alcohol tests in the
workplace is governed by:
A.the common law.
B.state law.
C.federal law.
D.constitutional law.
The moderate view of assessing corporate citizenship believes that:
A.corporate officers and boards of directors should provide the exclusive view of
corporate responsibility.
B.corporate employees below the senior executive level should provide the exclusive
view of corporate responsibility.
C.community groups where the corporation is located should provide the exclusive
view of corporate responsibility.
D.the government should provide the exclusive view of corporate responsibility.
What legislation amended the Comprehensive Environmental Response Compensation
and Liability Act (CERCLA)?
A.Revised Environmental Response Compensation and Liability Act (RERCLA)
B.National Environmental Policy Act (NEPA)
C.Superfund Amendments and Reauthorization Act (SARA)
D.Resource Conservation and Recovery Act (RCRA)
When a state action is found to be based on a semi-suspect (a/k/a quasi-suspect)
classification the courts will employ:
A.rational basis scrutiny
B.intermediate scrutiny
C.strict scrutiny
D.no particular form of scrutiny is required in this situation
Which of these is not a way that the Environmental Protection Agency (EPA) enforces
its regulations?
A.criminal complaints
B.permits
C.administrative fines
D.mandatory arbitration
An LLC:
A.offers principals the same liability coverage as principals in corporations with
taxation at the business entity level.
B.offers principals the same liability coverage as principals in corporations with pass
through taxation.
C.offers principals the same liability coverage as general partners in a partnership with
taxation at the business entity level.
D.offers principals the same liability coverage as limited partners in a partnership with
pass through taxation.
Who hears an appeal of an administrative law judge’s ruling?
A.federal judge
B.agency head
C.state judge
D.there is no administrative appeal process
For which of the following is an occupational license issued by an agency not required?
A.lawyers
B.college and university professors
C.hair stylists
D.kindergarten teachers
The Freedom of Information Act:
A.requires that all documents become public.
B.has no meaningful enforcement procedures.
C.opens certain agency records to the public.
D.publically announces agency meetings ahead of time.
Josh is negotiating the sale of his car with Jonathan. Jonathan asks if the car has ever
been in an accident and Josh replies, “No, it has never been in an accident.” In fact, the
car was nearly totaled the year before when Sheila, Josh’s girlfriend, driving Josh’s car,
hit a wet spot and skidded into a pole. Shehad it repaired without telling him about the
accident. Josh has committed:
A.fraudulent misrepresentation.
B.innocent misrepresentation.
C.an unconscionable act.
D.nothing because he thought he was being truthful and didn’t intend to deceive
Jonathan.
Bob’s Department Store in New York sends a purchase order to Sam’s Sweaters in
California ordering 10,000 sweaters. The purchase order includes a breakdown of sizes,
styles, colors and states that delivery is to be made to Bob’s in New York at Sam’s cost.
When Sam’s sends an acknowledgement form accepting the offer, certain terms are
changed. Which of the following would likely not automatically become part of the
contract?
A.Sam’s changes the quantity to 9,500 sweaters
B.Sam’s changes the price raising the per item cost by $.50 each
C.Sam’s omits the order for 1000 purple sweaters and allocates the color of those 1000
sweaters equally amongst the other colors ordered
D.Sam’s changes the place of delivery to their factory in California and allocates the
cost of shipping to Bob’s in New York
In Green Tree Financial Corporation v. Randolph, Randolph brought suit in federal
court for violation of a federal statute that regulates consumer lending. Green Tree
moved to dismiss based on a mandatory arbitration clause in the consumer contract.
How did the court decide?
A.for Green Tree because the consumer protection law itself required mandatory
arbitration before a law suit could be brought
B.for Green Tree because Randolph had not proven that the mandatory arbitration
clause was unfair or biased toward the defendant negating his rights
C.for Randolph because the mandatory arbitration clause was silent regarding the
location of the required arbitration so that flaw invalidated the clause due to the
potential harm to Randolph should a distant or inconvenient forum be utilized
D.for Randolph because the Federal Arbitration Act requires that matters involving
federal law be litigated rather than arbitrated
Valarie is employed as a sales representative at a major corporation. On occasion she
feels like the, the men at her office stare at her and they occasionally make suggestive
comments which upset her and make her uncomfortable. When she complains to her
Human Resource Department, they inform her that they will send out a memo asking
the male employees to start acting more professionally but the HR Department doesn’t
feel that the conduct has broken any laws. When she says the company and the male
employees are not acting ethically, that implies that this is a legal but not an ethical
matter. Do you agree or disagree and why?
April is at work when a commercial painter’s truck pulls up in front of her house. After
checking the address on his assignment sheet the painter starts erecting ladders against
April’s house and starts unloading brushes, rollers and cans of paint. April has not
contracted with this company and the company has made a mistake putting the wrong
address on the assignment sheet the painter took the address off of. When April arrives
home, the painter is just finishing and he presents her with a bill. Is she obligated to
pay? Why or why not?
Why are trademarks worthy of protections as valuable business assets?
That society is best served when companies aggressively seek a competitive advantage
and that ethical violations will eventually harm companies reflects the narrow view or
________ hand theory of corporate social responsibility.
You have just graduated and have started your own business. You will be providing
goods and services to the general public and you are concerned about potential legal
exposure and resultant costs of litigation. You’d like to add a mandatory arbitration
clause to all of your contracts. Is a mandatory arbitration clause legal and valid and if
so, what concerns must you consider in constructing this clause?
Under the Revised Uniform Partnership Act, the act of leaving a partnership and
ceasing to be a principal is called _______.
A court order authorizing an official to do something the official would otherwise be
prohibited from doing is called a _____.
Officers, directors and controlling shareholders are often called _______.
What is the difference between the assignment of a lease and the subletting of a lease?
How does each pertain to the rights and duties of the original tenant?
The implied warranty of merchantability applies to every sale from a _______ to a
buyer.
Corporate tax structures result in ________ taxation.
UNCISG provisions do not apply to transactions where one party is a _______.
An essentially minimal improvement to an existing invention that is not worthy of
patent protection is called a ________ improvement and is considered relatively
obvious.
Any officer, director or shareholder who owns 10% or more of a company’s stock is
considered an _______.
A jury which cannot agree on a verdict is called a ________ jury.
Alan is a freshman in the computer science department. One of his professors has
embarrassed him in class and then mocked him saying that Alan will never be as good
as he (the professor) is with computers. In order to prove the professor wrong, Alan
decides to break into the main computer at the Department of Defense and leave a note
saying the professor is a spy. Alan indeed hacks into the computer and leaves the
message. He designed the message to erase itself after 13 hours leaving no trail and no
damage to the computer. If Alan is discovered to be the hacker, has he committed a
crime? Explain.