Emmanuelle has been the subject of intense and continuous hostile environment sexual
harassment over a period of months. If she quits before filing a complaint with the
EEOC, she forfeits the right to file the complaint and seek damages.
Ike has orally agreed to paint Tina’s portrait. The oral agreement is for the portrait to be
completed in nine months. Even if the portrait actually takes thirteen months to
complete, the agreement will be enforceable.
Kent Corp. (KC), general contractors building a new dorm at a university, contracted
with Fine Rugs Inc. (FRI) to have certain grade of industrial rugs installed in the dorm.
The contract price was $180,000. After the rugs were installed, KC was dissatisfied
with the rug quality. FRI insisted that the rugs installed were appropriate to the contract
specifications and demanded full payment. KC sends FRI a check for $120,000 which
they believe is the proper value for the rugs installed and they mark the check, “Paid in
Full”. FRI writes “Under Protest” and deposits the check. FRI may now, in most states,
successfully sue KC for the balance of $60,000.
Professor Smith announces to his dean that the students in his noon class are the worst
students that he has ever had and that they should never have been admitted to the
school. The students are actually as qualified as any other students admitted to the
school. The students may sue Professor Smith for slander.
Your professor is a partially disclosed agent representing your school.
Sally works an hourly office job from 8:00 am until 4:30 pm, Monday through Friday,
with an hour each day for lunch. Lunch is unpaid so her total weekly hours total 37 ½.
One Friday, her boss Harry asks her to stay an extra hour to complete a project. If she
stays the extra hour she will be entitled to overtime pay for that hour.
A closely held corporation may be privately held or publicly held depending on the
status determined at creation.
Tom’s company has a code of ethics and a separate code of conduct. If he would like to
find out about the company’s expectations or requirements regarding community
service, he would reference the code of ethics.
U.S. v. Microsoft held that the appropriate standard to analyze Microsoft’s actions in the
browser market was the rule of reason.
Fred has a toothache and is driving to the dentist. He’s in a lot of pain so he speeds
down the road 20 mile over the speed limit. If he has an accident, it is an intentional tort
and not negligence because he knowingly was speeding.
A book publisher suggesting a retail price for the latest bestseller is an example of price
fixing.
Public international law primarily addresses relationships between countries, business
entities, and international organizations.
The primary market consists of securities sales in public markets while the secondary
market consists of security sales in private placements.
If a state appellate court renders a decision on a new issue, that state decision will
become precedent for any federal court decisions when the federal court is located
within the state and the decided issue is one of state law.
Credit card companies must now give a 45 day notice of any rate hike.
Magnuson-Moss Act requires a label with warranty conditions regarding all products
that cost $10 or more.
The right to privacy is a specifically named right established in the Bill of Rights.
The only major difference between the UCC and the UNCISG is the lack of writing
requirement under the UNCISG.
One of the major functions of criminal law in general is to compensate parties for
damages caused by another’s conduct.
If a worker dies before retirement, all social security benefits are forfeited and no
benefits are paid to anyone.
Contractual consideration is defined as the thought process a party uses to decide
whether or not to accept the offer and enter into a contract.
Allen calls PepsiCo, the makers of Pepsi Cola saying that he’s an employee of
Coca-Cola and he has the Coca-Cola secret recipe. The recipe is legendary as a closely
guarded secret supposedly known to only a handful of people in the world. They
arrange a meeting. Allen begins the meeting by stating that he acquired the recipe
legally and the PepsiCo representative says that they believe him and they will buy it.
Allen in fact stole the recipe. Since PepsiCo does not know specifically that the recipe
was acquired improperly by Allen, they cannot be guilty of misappropriation.
Preferred stock always has voting rights.
The bankruptcy trustee is appointed to represent the creditors.
Capitalization refers to how the business will fund its operations.
Jones Corp. is set to deliver goods ordered by Smith, Inc. and calls to confirm that the
goods will be delivered the next day. Smith, Inc., on the phone, notifies Jones Corp. that
they have found the same goods cheaper from another seller and will not accept
delivery. In order for Smith, Inc. to officially be in breach of contract, Jones Corp. must
deliver and tender conforming goods and have Smith, Inc. wrongfully reject them.
In Harley-Davidson Motor Co., v. PowerSports, Inc., the court permitted PowerSports
to retain their Harley-Davidson franchise because their decision to become a publicly
owned corporation had nothing to do with their commitment to sales and service so it
was deemed not material to the negotiations so no fraud occurred.
The Model Penal Code specifically states that those exhibiting a sociopathic personality
disorder are not eligible to claim a mental incapacity defense to a criminal charge.
Federal Unemployment Tax Act covers the costs of administering state unemployment
insurance and state job service programs.
The Paris Convention sets international standards for the patentability of inventions.
In the typical business context, ADR is invoked either via contract or by mutual
agreement.
Fred has been charged with a crime where the maximum punishment is a fine and up to
six months in jail. The crime he has been charged with is a misdemeanor.
Unless a contract for services calls for unique personal services, that contract cannot be
discharged by impossibility.
The Sherman Act does not prevent an entity from becoming a monopoly.
Administrative agencies at the state level do not issue licenses.
The Robinson-Patman Act requires businesses who are considering mergers that are
over a certain dollar amount to give advanced notice to the FTC and Department of
Justice.
In Ricci v. DeStefano, Ricci, a white firefighter, took and passed the City of New Haven
firefighter’s test, required of all applicants for promotion in the city’s fire department.
The test was thrown out when it was discovered that minorities scored poorly and the
city feared a disparate impact based law suit.
A.even though the test was prepared by a professional testing organization, the city has
the right to reject the test results if minorities do not score adequately
B.deliberately oversampling minorities to seek to create a fair test is irrelevant if the test
results show that minorities still scored poorly
C.Ricci, as a member of the white majority, had no grounds to sue when the city was
seeking the legitimate aim of nondiscrimination
D.An employer may not simply disregard a test based on unwanted results unless the
test is shown to be biased or deficient
Jan is on trial for arson. To be found guilty, her guilt must be proven:
A.beyond a reasonable doubt.
B.beyond a preponderance of the evidence.
C.by a preponderance of the evidence.
D.by a reasonable preponderance of the evidence.
Which of the following is a valid bailment?
A.babysitting your sister’s child for the weekend
B.house sitting your friend’s house for the weekend
C.feeding your neighbors dog (who lives in the yard in a dog house) by tossing food
over the fence
D.putting your neighbor’s car in your garage to shield it from a hail storm
The most commonly used debt instrument is a:
A.debenture.
B.bond.
C.common stock.
D.promissory note.
Which act was designed to prevent monopolies from being created through mergers?
A.Clayton Act
B.Celler-Kefauver Antimerger Act
C.Sherman Act
D.Federal Trade Commission Act
When applying the Age Discrimination in Employment Act, the substantially younger
test generally says that the younger employee must be at least ________ years younger
than the terminated employee claiming discrimination.
A.three
B.five
C.eight
D.ten
AIG received a government bailout to save the company because:
A.had the company gone bankrupt, too many employees would have become
unemployed without sufficient unemployment insurance to aid them.
B.had the company gone bankrupt, the effect on New York City, where it was situated,
would have been a catastrophe so the bailout was actually in part to keep New York
City solvent.
C.had the company gone bankrupt, moneys already owed to the U.S. Government prior
to the collapse would never have been recovered so the bailout was necessary to keep
AIG in operation until they were solvent enough to repay the government.
D.had the company gone bankrupt, the U.S. financial infrastructure would have been
severely or even irreparably damaged.
Generally, constitutional protections do not apply to:
A.acts of the federal government
B.acts of state governments
C.acts of administrative agencies
D.acts of privately owned businesses
In Goldman v. Chapman and Region Associates, the court was asked to pierce Region’s
corporate veil and find Chapman personally liable because Chapman was the sole
owner and operator of Region Associates who Goldman had successfully sued. The
court found that:
A.being the sole owner and decision maker is not sufficient cause to pierce the
corporate veil without evidence of misconduct.
B.the fact that Chapman’s corporation was found liable for $209,320 is evidence of
misconduct sufficient to pierce the corporate veil.
C.any time there is one owner and decision maker, the corporation is considered to be
that persons “alter ego” and the corporate veil may be pierced without the need to
provide additional evidence.
D.the liability protections afforded to owners of corporations were not intended to
protect one party businesses due to the enhanced possibility of frauds due to lack of
oversight by others so one person corporations do not protect that individual from
liability.
Chris and Paul operate a business in which both have contributed $50,000 to the
businesses capitalization. Chris makes all business decisions and Paul made Chris sign
a partnership agreement saying that Paul is only liable for partnership debts up to
$50,000.
A.both are general partners
B.Chris is a general partner and Paul is a limited partner
C.Paul is a general partner and Chris is a limited partner
D.both are limited partners
The concept that in order to pass judicial muster, the evidence must show that the
agency made its final decision based on a consideration of relevant factors without any
clear errors of judgment is known as:
A.the arbitrary and capricious standard.
B.the Chevron test.
C.the logical outgrowth test.
D.the McDonnell-Douglas test.
The Colorful Paint Company got a mortgage from the bank to purchase a factory to
make paint. As part of their manufacturing process the Colorful Paint would dump the
excess paint into a pit behind the building. This practice contaminated the property. If
the bank foreclosed on the factory, would they be liable for cleanup costs of the
contaminated land?
A.no because they were innocent landowners
B.no because they did not contaminate the property
C.no because they were secured creditors
D.yes because they own the property
The power to carry out foreign policy is an enumerated power granted to:
A.the Executive branch
B.the Legislative branch
C.the Judicial branch
D.all three branches may carry out foreign policy
Which chapter of the bankruptcy code is best thought of as temporary protection from
creditors while a business goes through a planning process to pay creditors while
continuing to do business?
A.Chapter 7
B.Chapter 11
C.Chapter 12
D.Chapter 13
Which of the following is not a general category of torts?
A.intentional torts
B.negligence
C.strict liability
D.criminal torts
Sam has contracted with Dave to purchase Dave’s racing bike with payment and
delivery of the bicycle to be in 10 days. Three days later Sam hears that Dave is going
to sell the bike to Gene in three days at a higher price. If Sam really wants the bike,
what should he do?
A.immediately sue for specific performance
B.immediately seek injunctive relief
C.immediately sue for compensatory damages
D.immediately sue for consequential damages
The UCC permits disclaimers of warranties:
A.under no circumstances.
B.when the seller disclaims properly.
C.if the buyer was unaware of the warranties.
D.when allowed by the common law.
The National Environmental Policy Act (NEPA) focuses on achieving results like clean
air and water.
The Employee Retirement Income Security Act establishes rules regarding each of the
following except:
A.how much company stock may be held in a pension plan.
B.minimum interest rate returns on investments by pension and retirement savings
plans.
C.record keeping.
D.maintenance of standardized vesting rules.
In Custom Vehicles v. Forest River, Custom sued because Forest used the term “Work
and Play” to describe a van they manufactured after Custom had registered the mark
“Work-N-Play” to describe a vehicle they had built. The court found no trademark
infringement because:
A.Work-N-Play had not acquired a secondary meaning so as to qualify as a suggestive
trademark.
B.Work-N-Play was not distinctive enough to qualify as a fanciful trademark.
C.Work-N-Play was not distinctive enough to qualify as an arbitrary trademark.
D.Work-N-Play had not acquired a secondary meaning so as to qualify as a descriptive
trademark.
Which of the following is not a challenge to the concept that values management
programs should not be given priority in the corporate world?
A.ethics cannot be taught
B.complying with the law is all that a corporation needs to do to remain ethical
C.ethics cannot be managed
D.success is measured in profits and losses, not in ethical conduct
Bob, Carol and Ted have decided to go into businesses as a limited partnership
importing and selling exotic spices. Bob and Carol will manage the business and Ted
will have no role in the day to day operations. Bob and Carol contributed have each
invested $500,000 and Ted has contributed the building and land that the business will
be operated from. Alice, a customer, contracts a rare disease from a contaminated spice
sold by the company and sues. Alice is awarded a judgment for $5 million. After she
exhausts the assets of the partnership, having the property and building sold and seizing
all other property, $3 million remains unpaid.
A.Bob, Carol and Ted each owe $1 million and Alice must sue each for their part
B.Bob, Carol and Ted each owe $3 million jointly and severally so Alice may sue one,
two or all three for the $3 million balance
C.Bob and Carol each owe $1.5 million and Alice must sue each for their part; Ted has
no additional liability
D.Bob and Carol each owe $3 million jointly and severally so Alice may sue one or
both of them; Ted has no additional liability
In Texaco Inc. v. Dagher et al. two oil refiners and gas suppliers, Texaco and Shell Oil,
entered into a joint venture called Equilon to consolidate their operations in the western
U.S. Historically, Texaco and Shell were competitors but for their joint venture they
shared expenses and profits equally. The products produced by Equilon were sold under
the brand names Texaco and Shell at a mutually agree upon price. Texaco and Shell
retailers brought a class action lawsuit against the two companies claiming there was a
per se violation of the Sherman Antitrust Act because of the lack of price competition.
The court held that:
A.there was a per se violation because the joint venture was plainly anticompetitive.
B.there was a per se violation because oil companies are automatically held to this
standard.
C.the rule of reason standard should apply because a market analysis was relevant.
D.the rule of reason standard should apply because it is a joint venture and not a
meeting of the minds.
What evidence may a company offer in defense to an antitrust violation under the rule
of reason standard?
A.the anticompetitive harm was not harmful to the government
B.none, if the company violates the standard there is no defense
C.their actions were justified and necessary under the economic conditions
D.there was no economic harm to the consumer
Which of these is not an example of deceptive advertising?
A.claims that for the price, the item is the best money can buy
B.artificially inflating the original retail price of an item so that when featuring it as a
sale item, it looks more marked down than it actually was
C.using a term like “clearance price” when the item is not being sold at a reduced rate
D.misrepresenting the prices of competitors
What is the test to determine if an entity has monopoly power?
A.share of the relevant market
B.rule of reason
C.vertical integration test
D.bright line
What type of legal system would a government that based its laws on the tenants of
Buddhism have?
A.a karma law system
B.a blended legal system
C.a religious-based legal system
D.a mixed legal system
The common law system is based on what country’s legal concepts and organization?
A.United States
B.ancient Rome
C.England
D.France
When Maria comes home from work she finds that her yard has been mowed and
trimmed. An hour later a man comes to her door to collect payment for the yard work.
Maria refuses to pay him because she has never seen him before nor had she hired him
to do the work. Which of the following is accurate?
A.this is an implied, unilateral contract so she must pay
B.Maria has received unjust enrichment so a quasi contract is formed so she must pay
C.the court would make Maria pay the reasonable cost of the work to be fair to both
parties
D.Maria would not have to pay anything
Mike is walking down the street minding his own business when he is stopped by a
policeman. Although no crimes have been reported in the area and Mike has done
nothing suspicious, the policeman doesn’t like the looks of Mike so he conducts a pat
down search and finds a tiny bag of marijuana.
A.under these circumstances this is an illegal search under Fourth Amendment
protections
B.under these circumstances this is an illegal search under Fifth Amendment
protections
C.under these circumstances this is a legal search because illegal drugs were found,
justifying the policemen’s actions
D.under these circumstances this is a legal search because police are given broad
discretion to use their experience to fight crime and obviously the policeman was right
in this case
The Safe Water Drinking Act (SDWA) does not apply to which of these water sources?
A.lakes
B.rivers
C.oceans
D.subsurface wells
McDonald has invented a machine that harvests corn in the field, automatically shucks
the corn from the husk and peels the kernels from the cob, separating everything for
easy disposal or further use. Assuming that all requirements are met for a patent, the
length of his patent protection will be:
A.14 years from the completion of the invention.
B.14 years from the filing of the application with the U.S. Patent and Trade Office.
C.20 years from the completion of the invention.
D.20 years from the filing of the application with the U.S. Patent and Trade Office.
The Equal Pay Act is an amendment to:
A.the Civil Rights Act of 19
B.the Fair Labor Standards Act.
C.the National Labor Relations Act.
D.the Social Security Act.
Why does the Xerox Corporation take out full page ads in national publications
stressing that it is improper to use the word Xeroxing when referring to making a
photocopy?
How do citizen suits work in the context of administrative law?
The EPA would like to propose a new rule lowering the emissions requirements for coal
factories. They write a new rule. Where is the EPA in the rulemaking process? What is
the next step?
The ________ of the International Court of Justice is the main document constituting
and regulating the International Court of Justice.
Liability involving one party’s liability for another party’s act is called ________
liability.
Tom has been injured on the job so Dick hires Harry to fill in for him. The agreement
with Harry is that he will work until Tom is ready to return. When Tom is indeed ready
to return, Dick’s position is terminated by an express act defined as ______.
Employers are increasingly employing elaborate employee monitoring measures
primarily to limit their risk of ________ liability in areas such as defamation and
employment discrimination.
Discuss the differences between Chapters 7 and 11 bankruptcy proceeding.
Explain how the Fifth Amendment right against self-incrimination applies to
corporations and the individuals working for the corporations.
Some agencies monitor compliance with regulations by conducting ________ of a
business.
You are taking a course with an adjunct professor who is teaching under a one course
contract. With six weeks to go in the course, she is offered a tenure track position at
another school. They require her to start within a week. When she approaches the
administration, what options are available, if any, regarding the adjunct contract and her
desire to leave early?
Discuss the potential advantages of ADR over litigation.
A lawsuit against an officer or director brought by a shareholder is called a ________
suit.
An employee with a salary in the top 10% of the company’s payroll is classified as a
________ employee for FLSA purposes.
Stop Now LLP manufactures brake linings and sells their product to repair and
maintenance shops for use as replacements for worn brakes. When Stop Now
approaches Coastal Garage, they offer a very good price for their products. Coastal is a
nationwide company and the order would be very large. The management at Coastal is
very interested in dealing with Stop Now but is concerned with the LLP’s limited
liability protections for Stop Now’s partners. What could Coastal due to protect
themselves from the LLP’s limited liability protections?
What does it mean when it is said that corporations are double taxed?