Congresswoman Sloan introduced a bill in the House of Representatives. If the bill is
approved by the House committee specializing in that subject, the bill will go to:
a. a Senate committee specializing in the subject matter of the proposed legislation.
b. the full House.
c. a Conference Committee made up of representatives of both the House and Senate.
d. the voters of her state for approval.
Hanna intends to give her granddaughter, Melodee, her antique hat pin. This heirloom
has been kept under lock and key in the wall vault in the library of Hannas house in
Virginia. The hat pin is currently the only item in the vault. When Hanna is visiting
Melodee in Connecticut, Hanna gives Melodee the only key to the vault. Melodee is
grateful for the present and excitedly accepts. In this situation has there been a
completed gift?
a. No. There has been no physical delivery of the hat pin.
b. Yes. There has been physical delivery of the hat pin.
c. No. There has only been constructive delivery of the hat pin.
d. Yes. There has been constructive delivery of the hat pin.
John hired Tim to sell his house. Which statement is correct?
a. John is Tim’s principal.
b. Tim, but not John, can terminate the agency.
c. This illustrates a power coupled with an interest.
d. All the above are correct.
If a court applies res ipsa loquitur:
a. the plaintiff needs to prove the case by a preponderance of the evidence.
b. the plaintiff must prove the case by clear and convincing evidence.
c. the defendant has the burden of proving he or she is not liable.
d. the defendant is strictly liable.
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.
In 1932, Congress passed what legislation prohibiting federal court injunctions in
nonviolent labor disputes, thereby declaring that workers should be permitted to
organize unions and use their collective power to achieve legitimate economic ends?
a. The Sherman Act.
b. The Norris-LaGuardia Act.
c. The National Labor Relations Act.
d. The Labor-Management Relations Act.
The beneficiary of a life insurance policy paid for by the insured would ordinarily be:
a. a creditor beneficiary.
b. an incidental beneficiary.
c. a donee beneficiary.
d. a debtor beneficiary.
Lois receives an e-mail asking her to update her personal information on a website that
is an illegal imitation of a legitimate site. This practice:
a. is a crime called phishing.
b. is a tort called information theft.
c. is a breach of contract action known as shilling.
d. may be prosecuted under the GLB Privacy Act.
Courts may award damages called “quantum meruit:
a. which means “as much as he deserved.
b. which is money the court believes the plaintiff morally ought to have.
c. even though there was no valid contract entitling the plaintiff to it.
d. All of the above.
Bill and Kim moved onto some deserted land. After living on the land for ten years (as
is required by that state’s law), Bill and Kim claimed to be the titled owners by adverse
possession. The state court awarded title to Bill and Kim. Their real property consisted
of:
a. The land.
b. The buildings they constructed on the land.
c. The plants and vegetation on the land, including the growing trees and plants that
produced fruit and other edible items.
d. All of the above.
Which of the following promises ordinarily must be in writing to be enforceable?
a. Promises made as a part of a prenuptial agreement.
b. The agreement to sell a car for $1500.
c. The promise by an executor of an estate to pay a debt of the decedent.
d. All of the above.
The common law governs contracts for:
a. services.
b. real estate.
c. employment.
d. All of the above.
If there is a conflict between a state and federal law, generally the federal law will
prevail because of the:
a. federalism doctrine.
b. Supremacy Clause.
c. paramount doctrine.
d. Interstate Commerce Clause.
What is the purpose of a corporation?
a. Make the shareholders money.
b. Include consideration of the welfare for all stakeholders
c. Both answers are true
d. Neither answer is true
The officers of a corporation are:
a. chosen by the board of directors.
b. appointed by the president of the company.
c. elected by shareholders.
d. appointed by the Secretary of State.
Which of the following are administrative agencies?
a. House of Representatives
b. Internal Revenue Service
c. Supreme Court
d. Bureau of Prisons
Harriett raises and sells hippos. In order to keep her hippos happy and healthy, she feeds
them Hippo Chow, which she buys from the local pet store. Under the UCC, Harriett is:
a. a merchant of both hippos and Hippo Chow.
b. a merchant of hippos, but not of Hippo Chow.
c. a merchant of Hippo Chow, but not of hippos.
d. not a merchant of either hippos or Hippo Chow.
Barb has been a children’s day care provider for several years in the small town of
Sallton. She has decided to give it all up and move to the big city for excitement and
adventure. She sells her business to Ken, agreeing not to open a competing business
within five miles of Sallton for a period of nine months. After five months of the big
city life, Barb is broke and moves back to Sallton. She opens a small day care business.
Ken sues on the noncompete clause. What is the most likely result?
a. Ken wins. The agreement is enforceable.
b. Barb wins. The agreement is denying her the right to do the only thing she knows
how to do.
c. Barb wins. The agreement is not enforceable because it is not ancillary to a legitimate
bargain.
d. Barb wins. The agreement is not reasonable as to time.
The Digital Millennium Copyright Act:
a. It is illegal to delete copyright information from an article
b. It is illegal to circumvent encryption or scrambling devices that protect copyrighted
works
c. It is illegal to distribute tools and technologies used to circumvent encryption devices
d. all of these answers are correct
What statute prohibits accessing a computer without authorization and obtaining
information from it.?
a. Computer Fraud and Abuse Act
b. Communication Decency Act
c. Electronic Communications Privacy Act.
d. Childrens Online Privacy Protection Act
The evening news was full of stories about how Levine sold fraudulent negotiable
instruments to investors around the country. Two days later, Brighty, who did not hear
the news reports, bought some of the fraudulent negotiable instruments from a swindled
investor. Can Brighty claim the position of a holder in due course considering the
publicity of the scam?
a. Brighty is presumed to have knowledge of the scam and therefore did not purchase
the instruments in good faith.
b. Although Brighty passes the subjective test of good faith, he fails the objective test
and therefore cannot claim to have purchased the instruments in good faith.
c. Brighty can claim to have purchased the instruments in good faith if he subjectively
believed the instruments were valid and if objectively his purchase of the instruments
was commercially reasonable.
d. None of the above are correct.
The Computer Fraud and Abuse Act prohibits all but which of the following?
a. Computer trespass.
b. Sending spam.
c. Negligent damage to a computer attached to the Internet.
d. Trafficking in computer passwords.
Lois is running for political office. She trails the incumbent and decides to start running
a series of “attack ads.” The attack ads are very effective and one week before the
election it appears that she has drawn even with her opponent. Lois admits that the
attack ads were exaggerations and contained some distortions. Which statement is
correct?
a. Lois has engaged in unethical behavior.
b. Lois has engaged in ethical behavior since she has an obligation to her supporters to
run a campaign that will help her get elected.
c. It is not possible to determine whether Lois’s attack ads were ethical or unethical.
d. Assuming Lois’s attack ads were unethical, her conduct is justified and proper if she
to gets elected.
In a negligence case, the plaintiff must establish:
a. duty, strict liability, causation, and injury.
b. mens rea, breach, foreseeable harm, and injury.
c. duty, actus reus, foreseeable harm, and causation.
d. duty of due care, breach, causation, foreseeable harm, and injury.
Mabel is a single 40-year-old who has borrowed money on numerous occasions. Her
payment record has been good, except she has been delinquent in paying a few bills.
Which of the following is true regarding credit information gathered on Mabel?
a. Since Mabel has been delinquent, she waives her right to see the credit files.
b. If Mabel is rejected for a loan because of the consumer report, the lender must tell
her the source of the report.
c. Mabel has a right to have the information regarding her delinquency in paying a few
loans stricken from her credit record because her record has generally been good.
d. Mabel’s only legal remedy, if there is erroneous information in her credit file, is to
report the problem to the FTC for enforcement.
The Fair Labor Standards Act (FLSA) provides that hourly workers must:
a. be paid a minimum wage of $7.25 per hour and time and a half for hours over 40 per
week.
b. be paid a minimum wage of $5.15 per hour
c. not work more than 45 hours per week
d. be given one hour each day for lunch break
MoneyMaker Toy Company violated the safety standards set forth by the Consumer
Product Safety Commission when it produced a toy gun that caused injury to hundreds
of children. Because of MoneyMakers actions:
a. the CPSC can impose civil penalties on the company.
b. the CPSC can impose criminal penalties on the company.
c. users can sue for damages, including attorneys fees, if MoneyMaker knew it was
violating a consumer product safety rule when it produced the guns.
d. All of the answers are correct.
Fact Pattern 39-1
Two universities located within 30 miles of each other agree to divide their market so as
to help them both. The two schools draw a line down a map and each university agrees
to accept students only on their side of the line. Such an agreement is:
a. a per se violation of antitrust law.
b. subject to the rule of reason test to determine if it violates antitrust law.
c. not governed by antitrust law since educational institutions are exempt from this area
of law.
d. subject to state regulations but not to the Justice Department.
Whether or not the zoning board will grant a request for a variance depends upon:
a. The type of the proposed building.
b. The reaction of the neighbors.
c. The reason the owner claims she is harmed by the zoning ordinance.
d. All of the above.
What must be done when a debtor pays off the debt secured by a security interest in
goods?
a. nothing must be done.
b. the collateral must be sold
c. a termination statement must be filed by the creditor.
d. the original note must be returned to the debtor.
Sam has a five year written lease for Bills rental house. Bill dies and his wife sells the
house to Joe. Joe tells Sam to move out because he wants to live there. Sam does not
want to move. Who wins.
a. Joe. A new owner has the right to evict an existing tenant.
b. Sam. The new owner is substituted as the landlord
c. Joe. Death voids any leases
d. Sam because he has adversely possessed the lease
Forever Yours, Inc. has a secured and perfected security interest in Sally’s big-screen
TV. On the filing date of Sally’s Chapter 7 petition, the balance of the debt owed to
Forever Yours is $2,000. The value of the TV is estimated at $1,500. This means that
Forever Yours:
a. is secured for the entire debt, $2,000.
b. is unsecured for $500, the excess of the debt over the value of the TV.
c. has a high priority claim of $500. This means that Forever Yours, Inc. will be allowed
$500 worth of other unsecured property before other unsecured creditors get anything.
d. is unsecured for the entire debt.
What powers are granted to Congress through the Constitution of the United States ?
a. Appoint heads of administrative agencies
b. Appoint Supreme Court Justices
c. The right to regulate commerce with foreign nations.
d. None of these answers are correct
NAFTA is a trade agreement between the United States, Canada and Mexico.
During the hiring interview, Supervisor Staci told Henry that as long as he did his job as
requested, he would have a job until he retired. Courts have been willing to enforce
such an oral promise under the Truth in Hiring doctrine, even if the companys top
management did not approve the statement.
A tort is a violation of a duty imposed by the civil law.
Under the ECPA any intended recipient has the right to disclose the content of an email
Smalltown has two family-owned hardware stores that have been in business for years.
Major Hardware decides that Smalltown would be a good place to build one of its
superstores. Major opens, advertising unbelievably low prices; in fact, at below cost.
Because Major owns stores nationally, it is able to keep prices extremely low until both
of the family-owned stores have to go out of business because they cannot compete.
After Major is the only hardware store in town, it raises its prices enough to make up
for its former losses and to make some additional profit. Discuss this behavior in
relation to antitrust law.
Amanda buys a vacuum cleaner to use in her home from retailer Andy. Amanda
promises to pay for it in six monthly installment of $50 each. Andy assigns the contract
to Big Finance Co. who paid value and took without notice of any defense. Big Finance
Co. sues Amanda for nonpayment. Amanda has stopped making payments because the
vacuum stopped working and Andy refuses to honor the express warranty he made to
her at the time of the sale. Generally, any defense that Amanda may have against Andy
is good against Big Finance Co.
Creditor claims are divided into classes and the highest class must be satisfied in full
before going to the next category.
The doctrine of contributory negligence is followed in most states.
A contract involving the sale of goods from a Texas seller to a French wholesaler must
always use the United Nations Convention on Contracts for the International Sale of
Goods (CISG).
The only issue covered in the First Amendment of the Constitution of the United States
is free speech.
Connie and her fellow union employees went out on strike when the company refused
to meet the union’s demands for higher wages and better benefits. Shortly thereafter, the
company began hiring permanent replacement workers. After a hard eight-month strike,
the union and the company reached an agreement. When the strike was over, Connie
was upset that she was not given her job back. The replacement worker that took over
her job was retained. She believes she has a legal right to her job, especially since she
was a faithful employee for over 20 years. Is Connie right? Explain.
Patsy is shopping for a used car. She finds a car she likes at Morley Motors. Discuss the
standard of conduct the UCC imposes on the parties in performing the sales transaction.
Prime Products, Inc. was going to be able to ship the comforter Margaret ordered within
three weeks instead of the seven days it had originally promised. Prime must cancel
Margarets order and notify her that it can deliver within three weeks if she wants to
reorder.
Li is the vice president of marketing for Felson, Inc., a manufacturer of childrens
clothing Felson is considering building a factory in a developing country, where there
are few restrictions on working conditions, wages, or maximum work hours. Which
viewpoint: utilitarian or deontological would support this move? Why?
To be negotiated order paper must first be indorsed but does not need to be delivered to
the transferee.
As a general rule, employers have a legal obligation to disclose information about
former employees to potential future employers.
Tim received a letter from his state college stating he had been expelled from the
school. The letter stated his finance professor reported him to the Dean’s office for
cheating and that a committee had decided to expel him. He was reminded in the letter
he had been disciplined earlier that same year for plagiarizing a term paper. Tim
believes his due process rights have been violated by the college. Discuss what factors
should be considered to determine the validity of Tim’s claim.
Extraterritoriality is the power of one nation to impose its laws in other countries.
Explain horizontal price-fixing and vertical minimum and maximum price-fixing.
Discuss their status under antitrust laws.