The rule originates in common law that when a seller transfers goods to a buyer, the
buyer gets only voidable title if the buyer is a minor.
A board of directors may take no action that benefits a director in his or her personal
capacity.
Tender of delivery is the moment goods are picked up by the buyer.
A party who is primarily liable for an instrument must pay without resorting to any
other party.
Over the last few years, plaintiffs have been successful in bringing fraud suits against
accountants under the Racketeer Influenced and Corrupt Organizations Act.
Consolidation does not require shareholder approval.
Under current law, corporations cannot be held criminally accountable for strict-liability
offenses.
The term ADR refers to the resolution of legal disputes through methods other than
litigation.
Good Samaritan statutes impose liability upon people for refusing to stop at accident
scenes.
A product may be found defective if a manufacturer fails to provide adequate warnings
about potential dangers associated with the product.
Under the UCC, buyers and lessees are obligated to accept and pay for conforming
goods in accordance with the contract.
Under the market share theory, a plaintiff may be able to recover in a products liability
action even if the plaintiff cannot trace the harmful product to a particular manufacturer.
In some states a promise to pay a debt that has already been discharged in bankruptcy
must be in writing in order to be enforceable.
When a fraudulent misrepresentation is at issue, intent to deceive may not be inferred.
Concurrent federal jurisdiction means that both state and federal courts have
jurisdiction over a case.
Agents in Australia are obligated to act personally on behalf of the principal.
The Americans with Disabilities Act is enforced by the Disability Action Agency, not
the Equal Employment Opportunity Commission.
A person must be a lawyer in order to perform arbitration.
In most states, a broker cannot act as an agent for both buyer and seller unless both
parties consent.
Under our system of justice, courts may issue advisory opinions.
Premiums for whole-life insurance are generally smaller than those for term-life
insurance.
By broadening the scope of actions covered and the definition of a public official,
Congress amended the Foreign Corrupt Practices Act to conform to the antibribery
convention adopted by the Organization for Economic Cooperation and Development.
Both artisan’s and mechanic’s liens are super-priority liens.
Land and service contracts are governed by common law, not the UCC.
A living will is a document by which a person expresses his or her wishes regarding
medical treatment desired if an accident or illness prevents him or her from
participating in medical decisions.
Only one party may appeal from a final judgment.
A special power of attorney grants the agent express authority over specifically outlined
acts.
Perfection of a security interest in a motor vehicle generally occurs when the secured
party files the interest with the state’s Department of Motor Vehicles.
The U.S. Constitution explicitly allows courts to review legislative and executive
actions to determine whether they are constitutional.
Canada’s cigarette labeling requirements are less strict than those in the U.S.
Which of the following is a uniform law proposed by the National Conference of
Commissioners on Uniform State Laws that provides guidance in the area of estate
planning?
A. The Uniform Probate Code
B. The National Will Act
C. The Uniform Will Act
D. The Federal Probate and Will Act
E. The National Probate Code
Which of the following was the result on appeal in Reisenfeld & Co. v. The Network
Group Inc.; Builders Square Inc.; Kmart Corp., the case in the text involving whether
the plaintiff could recover from BSI in the situation in which BSI contracted with
Network Group to lease property, and Network Group contracted with the plaintiff
agreeing to pay a certain commission for his work but then defaulted on the contract?
A. The court ruled that because it was a third-party beneficiary, BSI was required to pay
the plaintiff the full amount of the commissions claimed.
B. The court ruled that because it was a third-party beneficiary, BSI was required to pay
the plaintiff the reasonable value of the services rendered, not necessarily the
contractual amount promised for commissions.
C. The court ruled that because a quasi-contract was involved, BSI was required to pay
the plaintiff the full amount of the commissions claimed.
D. The court ruled that because a quasi-contract was involved, BSI was required to pay
the plaintiff the reasonable value of the services rendered, not necessarily the
contractual amount promised for commissions.
E. The court ruled that because the plaintiff did not have a contract with BSI, the
plaintiff was entitled to no recovery from BSI.
“Rough Start.” Debby, who just graduated from college, wanted to buy a new car. She,
however, did not have much of a credit history, and the bank would not give her a loan
unless she had a cosigner who agreed to be liable on the loan along with Debby.
Debby’s father cosigned with Debby on her loan at the bank. Debby also wanted to start
a real estate business. She needed funds with which to do so. Her boyfriend, George,
agreed in a signed writing with the bank that he would pay Debby’s start-up loan for the
real estate business if Debby did not do so. Unfortunately, Debby did not make any
money in the real estate business. She went bankrupt as did George who had been
acting as her receptionist.
What is the effect, if any, of Debby’s bankruptcy on any debt owed by George?
A. George is not released and will be liable for the loan amounts.
B. George is released in the same manner that Debby is released.
C. George is released only if the bank failed to take sufficient steps to sue Debby and
require payment of the loan before she filed for bankruptcy.
D. George is released only if the bank failed to notify him of the bankruptcy in
sufficient time to allow him to make a proper claim against Debby in bankruptcy court.
E. George is released only if Debby failed to give him sufficient notice of her plans to
file bankruptcy.
Which of the following prohibits price discrimination by sellers?
A. Section 2 of the Clayton Act
B. Section 3 of the Sherman Act
C. Section 2 of the Sherman Act
D. Section 1 of the Sherman Act
E. The Federal Trade Commission Act
Which of the following are rules that explain how the agency views the meaning of the
statutes for which the agency has administrative responsibility?
A. Procedural
B. Interpretive
C. Legislative
D. Adjudicative
E. Executive
Which of the following is required by law in the United Kingdom in regard to holidays?
A. That employees be allowed to either be off or be paid double for 1 holiday per year.
B. That employees be allowed to either be off or be paid double for 2 holidays per year.
C. That employees be allowed to either be off or be paid double for 3 holidays per year.
D. That employees be allowed to either be off or be paid double for 4 holidays per year.
E. Employees are not guaranteed any holidays off or any extra pay for working holidays
under federal law.
Which of the following was the result on appeal in Crown Awards Inc., v. Discount
Trophy & Communication Inc., the case in the text involving whether the defendant
violated the plaintiff’s copyright on a type of trophy?
A. That the defendant was entitled to a judgment in its favor because the defendant’s
product was not identical to the plaintiff’s product.
B. That the trial court erred in refusing to require proof that the defendant had actual
access to the trophy design at issue.
C. That the facts established a reasonable possibility that the manufacturer had access to
the plaintiff’s work and that considering the similarities between the works, the plaintiff
was entitled to prevail.
D. That the trial court correctly found that proof of actual access to the infringed
product was required, that actual access was established, and that the defendant’s
product was an exact copy of the plaintiff’s product, thereby entitling the plaintiff to a
judgment in its favor.
E. That the trial court correctly found that the defendant had access to the product but
that copying was allowed because the plaintiff had not properly protected its work.
“Cheap Motorcycle.” Tony, a hateful, disgruntled, business law teacher notices that a
student, Peter, who is past the age of majority, has a nice motorcycle that is for sale.
Peter has struggled through school, is in his last semester, and needs to pass business
law in order to graduate. Tony tells Peter that he would like to see Peter pass and, in the
next sentence, says that he wants to buy the motorcycle for $100, a price far below the
value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies,
“I have the power here! Take it or leave it!” Tony proceeds to draw up a contract for the
sale of the motorcycle for $100 which Peter signs. Peter does some research and finds
that Tony has had several arrests for driving under the influence in a nearby town. As an
act of revenge, Peter tells Tony that unless Tony sells Peter his new Mustang
convertible for $50, he is publishing the facts about the arrests in the school newspaper.
Tony reluctantly agreed to the deal.
Which of the following is true if Tony seeks to rescind the contract for the sale of the
Mustang?
A. Tony may rescind the contract on grounds of fraud.
B. Tony may rescind the contract on grounds of misappropriation of name or likeness.
C. Tony may rescind the contract on grounds of duress.
D. Tony may rescind the contract on grounds of defamation.
E. Tony may not rescind the contract because truth is involved.
Which of the following is generally true regarding minitrials?
A. It is more costly than arbitration.
B. In a typical minitrial, business representatives have settlement authority.
C. A minitrial utilizes a jury to make a recommended decision.
D. A minitrial must follow and come after a failed mediation.
E. A minitrial must follow and come after an arbitration.
Which of the following may be held liable in a malpractice action?
A. Doctors but not accountants or real estate brokers
B. Doctors and accountants but not real estate brokers
C. Doctors and real estate brokers but not accountants
D. Accountants and real estate brokers but not doctors
E. Doctors, accountants, and real estate brokers
Which of the following is the most common form of agency?
A. Expressed agency
B. Implied agency
C. Apparent agency
D. Ratification
E. Endorsement
A[n] _____ purchases goods from a seller for resale in a foreign market and actually
takes title to the goods assuming the risk of being unable to resell them.
A. Foreign sales representative
B. Distributor
C. Licensing agent
D. Joint agent
E. Affiliate agent
Which of the following is true regarding corporate executives being held personally
liable for business crime under the “responsible corporate officer” doctrine?
A. A corporate executive may never be held personally liable for a business crime.
B. Corporate executives may only be held personally liable for a business crime if they
benefited personally from their actions in executing the business crime.
C. Corporate executives may be found personally liable for a business crime even if
they did not engage in, direct, or know about a specific criminal violation.
D. A court may not assess criminal liability on a corporate executive unless the
executive directly engaged in the specific criminal violation.
E. Criminal liability may not be assessed against a corporate executive unless the
executive directly engaged in the criminal activity and also profited directly and
personally from the criminal activity.
Which of the following is true regarding damages that may be recovered in
negligence-based product liability cases if proven?
A. Compensatory damages may be recovered, but punitive damages may not be
recovered.
B. Punitive damages may be recovered, but compensatory damages may not be
recovered.
C. Compensatory damages and punitive damages may be recovered.
D. Compensatory damages, punitive damages, and administrative damages may be
recovered.
E. Compensatory damages, punitive damages, administrative damages, and
manufacturing damages may be recovered.
For purposes of diversity-of-citizenship, where does a corporation reside?
A. The state of incorporation only.
B. Only the state in which the corporation has its principal place of business.
C. The state in which the corporation has its principal place of business and the state of
incorporation.
D. Any state in which the corporation does business.
E. Any state in which the corporation has done business within the last five years.
“Pet Police.” Millie breeds German Shepherd dogs. Bernard, who lives down the street,
took in a stray dog loosely identified as a Corgi-plus. The dog, Casanova, would
definitely be classified as a mixed breed. Bernard allowed Casanova to roam freely.
Unfortunately, Casanova went to visit Millie’s pure-bred German Shepherd. Puppies
resulted which were Shepherd and Corgi-plus puppies. Millie was incensed. She started
a campaign to round up all of the stray dogs, including Casanova, and haul them off to
the animal shelter. She picked up a few cats as well. She posted signs all over the
neighborhood saying that no animal, neither dog, cat, nor fowl, should come into her
yard and that she was going to begin shooting the next time, period. Understandably,
Bernard and some of the other neighbors took offense. Bernard comes to Millie’s house
while she is working in the yard. He walks behind her and shoves her. Millie did not see
him coming. Millie turned around and proceeded to have a heated conversation with
Bernard. Millie drew her fist back and told Bernard that she was going to punch him in
the nose. Millie raised back her arm and started to punch Bernard but he stepped back,
and all she managed to do was jab him in the shoulder, causing no actual pain. Sally,
who was going by on the street, saw Millie attempting to hit Bernard. Sally came over
and grabbed Millie’s hands, pinning Millie’s hands behind her back.
Considering Bernard’s shoving of Millie in the back, which of the following is true?
A. By shoving her in the back, Bernard committed a battery.
B. By shoving her in the back, Bernard committed a battery and an assault.
C. By shoving her in the back, Bernard committed an assault.
D. Bernard did not commit any torts because he did not actually physically harm Millie.
E. Bernard did not commit any torts because he can rely on the self-defense theory.
“Scheming Friends.” Willy very much wants to rent a basement apartment in Weaver’s
home. Willy threatens to tell all Weaver’s friends that he and Weaver had been arrested
for illegally smoking marijuana unless Weaver rents the apartment to him for $100 per
month. (The information regarding the arrests is true.) Weaver reluctantly agrees to rent
the apartment to Willy for $100 per month. Willy also wants to buy Weaver’s car.
Weaver runs back the odometer on the car before Willy test drives it. Willy is impressed
by the low mileage and agrees to buy the car. Weaver offers to sell Willy a ring for
Willy’s fiancée. Weaver tells Willy that the ring is a diamond and believes that to be
true. After the deal is made, however, a jeweler friend of Weaver informs him that the
ring is a fake. When Willy shows up with the money, Weaver says nothing. He just
hands Willy the ring and takes the money. Later, Willy finds out that the odometer was
run backwards from another friend to whom Weaver confided. Willy also finds out from
his girlfriend that the ring is a fake.
Of which of the following is Willy guilty in threatening to tell friends about the arrest
unless Weaver rents the apartment?
A. Duress
B. Unconscionability
C. Fraud
D. Undue influence
E. Consumer misbehavior
“Teenage Driver.” Sally bought a new car, a yellow convertible. She also had a teenage
son at home, Bobby, but she did not plan to let him drive the car. She was annoyed
because Bobby had run her last car into the lake. Sally decided to change insurers
because she thought her previous insurance agent was annoyed over Bobby’s antics. She
went to ABC Insurance to apply. She got an application from Mark. Sally was a little
nervous because the application asked about other drivers in the home. It also asked if
there were any teenagers in the home. Sally answered “no” on both counts because she
had no plans to let Bobby drive. Sally got full coverage on the car, and the policy was
issued shortly after she completed the application. She renewed the policy without
revising any of the information she provided. Thirteen months later, Sally really needed
some gas in the car for the next day. Under the belief that he had sufficiently matured,
Sally sent Bobby to get some gas at the station just down the street. Unfortunately, a
drunk driver who had no insurance hit the car and totaled it. Sally immediately called
Mark. When Mark reviewed the police report, however, he told Sally that there would
be no coverage on the car because Bobby was driving. Sally said that was completely
unfair and that she would appeal to the jury. Sally told Mark that ABC issued the policy
and that she was relying on the incontestability clause. Mark told Sally that she was
wrong and that based on how disputes were handled under the policy, she would not
even see a jury.
Which of the following is true regarding Mark’s statement that Sally would never see a
jury?
A. He is correct based on provisions in most policies denying the insured the right to
contest policy provisions.
B. He is incorrect, and insurers may not require as a condition of a policy that an
insured give up the right to a trial by jury.
C. He is correct based on provisions in most policies providing that the insurance
company has the final word regarding coverage.
D. He is likely referencing a provision requiring arbitration contained in some policies.
E. He is likely referencing a provision requiring that any dispute be settled by the
Insurance Adjustors of America contained in some policies.
Which of the following types of warranties are automatically, as a matter of law,
injected into a contract?
A. Express warranties, implied warranties of quality, and acknowledged title warranties
B. Implied warranties, but not express warranties or acknowledged title warranties
C. Acknowledged title warranties, but not express warranties or implied warranties of
quality
D. Acknowledged title warranties and express warranties, but not implied warranties of
quality
E. Express warranties and implied warranties of quality, but not acknowledged title
warranties
Which of the following defenses is an argument that harm was caused not by the
defendant’s negligence but by the plaintiff’s failure to properly use the product?
A. Assumption of the risk.
B. Product misuse.
C. Pure comparative fault.
D. Last-clear-chance.
E. Misapplication.
“Death.” Barbara is president and a large shareholder in Reuse It, a corporation that
sells used cellular telephones. Although the company was not insolvent, sales had been
significantly down, and Barbara decided that it would be a good idea to discontinue the
business. The board of directors agreed with her. The board members presented the
proposal to discontinue the corporation to shareholders. Initially, Willy, a disgruntled
shareholder, opposed ending the corporation. He claimed that the problem was that
Barbara had done a poor job in management. Barbara planned to go forward with the
termination of the company because a majority of the shareholders agreed. Willy,
however, came around; and upon a second vote to discontinue the corporation, the vote
was unanimous. Quill, a vice president of the corporation, was aware of a few
outstanding debts owed by Reuse It. He suggested hurrying along quietly with ending
the corporation because any claims not made before the corporation was dissolved
could be avoided. Barbara told him that she was not sure that was a good idea.
Therefore, the company proceeded with all appropriate notifications. When the time
came to liquidate the corporation, the members of the board did not want to participate.
Barbara was concerned about what action to take at that point because she really
wanted to be finished with Reuse It.
Which of the following is true regarding Quill’s suggestion that dissolution be
implemented quickly in order to avoid claims by creditors?
A. His suggestion was a good one because in that way, the claims could likely be
avoided.
B. His suggestion would not avoid claims because the law requires that creditors be
allowed at least 120 days after dissolution in order to make a claim.
C. Whether or not his suggestion will help depends on the corporation’s articles of
incorporation which set forth the time period during which creditors may file claims
following dissolution.
D. Whether or not his suggestion will help depends on the corporation’s bylaws which
set forth the time period during which creditors may file claims following dissolution.
E. His suggestion was a good one only for debts outstanding for over 1 year; otherwise,
the creditors have at least six months following dissolution in which to make claims.
When an accountant is found liable for fraud, what type of damages may be assessed in
addition to compensatory damages in order to punish the accountant?
A. Punishable
B. Punitive
C. Material
D. Nominal
E. Incidental
Which of the following is based on the idea that, when ruling on a case, judges consider
more than just the law; they also weigh factors such as social and economic conditions?
A. Cost-benefit analysis
B. Legal realism
C. Historical school
D. Legal positivism
E. Executive positivism
Which of the following is true regarding adoption of the Uniform Anatomical Gifts
Act?
A. It has been adopted by every state in the U.S.
B. It has been adopted by 40 states in the U.S.
C. It has been adopted by half the states in the U.S.
D. It has been adopted by 13 states in the U.S.
E. At this point, it has not been adopted by any state in the U.S.
“Uncooperative Employer.” Joan requested a 12-week leave for the birth of her child.
She had 3 weeks of accrued paid sick leave time and 2 weeks of accrued paid vacation
time. Joan’s employer, Rose, requested that she take the sick leave time and vacation
time prior to any leave time under the Family and Medical Leave Act. Joan did not wish
to do so, however, and told her employer that she was entitled under the Family and
Medical Leave Act to take leave under the Act first and to save any other time. Another
employee, Frank, requested leave time under the Family and Medical Leave Act in
order to care for a seriously ill parent. He had no other sick leave or vacation time
available and immediately started using leave under the act. Unfortunately, he was
unable to return to work for 15 weeks. At that time, Rose told him that he would have to
be reassigned to a lower paying position because she had been unable to hold his job for
him and had reassigned it to Bob. Frank demanded that Bob be removed and that he be
reinstated to his previous job. To the dismay of Rose, Alice also requested leave
because she planned to take in a foster child. Rose told Alice to forget it because of all
the other employees out on leave, because voluntarily taking in a foster child did not
qualify Alice for leave, and also because she typically worked only 30 hours per week.
Which of the following is true regarding Frank’s claim that the other employee should
be removed so that he can have his position back?
A. Unless the other employee has seniority over him, Frank is entitled to have his job
back.
B. Frank is entitled to his job back only if there is another position to which Bob could
be assigned in the company.
C. Frank is entitled to his job back because the Family and Medical Leave Act requires
that his job be held for him for at least six months.
D. Frank is not entitled to his job back because the Family and Medical Leave Act only
requires that an employee be allowed to come back to work, not that the employee be
provided the same job at the same rate of pay.
E. Frank is not entitled to his former job under the Family and Medical Leave Act
because the Act does not require reinstatement when an employee takes leave under the
Act but is off for more than 12 weeks.
“New Agency.” Debby just got a job as an assistant in a new federal agency called the
Accounting Commission that was set up to regulate the accounting and auditing
profession. The agency is headed by commissioners who serve for fixed terms and can
be removed only for cause. No more than a majority of the commissioners may be from
the same political party. The agency is getting ready to issue rules. The enabling
legislation that set up the Accounting Commission specified that the agency could make
rules but said nothing about the form of the rules. Debby’s boss, Blaire, gave her some
proposed rules and asked her to be sure that they were published and to take care of the
next step in the approval process. Blaire also told her that at this point she was not very
interested in hybrid rule making.
After publication what would be the next step in obtaining enactment of the rules?
A. A vote in Congress
B. Approval by the president through an executive order
C. A public hearing
D. Opportunity for all interested parties to submit written comments
E. A hearing before an administrative law judge
“On the Town.” Benny began taking people on tours of historic sites in his town. That
had not been done before because no one thought there was very much in the way of
historical significance there. Benny, however, did some research; and, with a very
active imagination on his part, came up with some good stories. He started to make a
nice profit with the tours, particularly with tourists passing through the town on the way
to the mountains. Benny began to hear of some rival tour groups that were planning to
start giving tours in the area. Benny sent a memo to his secretary asking, “How can we
shut down other potential tour groups because we want all the business?” One rival
company had started operations, but Benny still had 85 percent of the business. His plan
was to run the rival out of business and prevent the start-up of any other tour operations
in his town. Benny decided that he would offer to do a free advertising brochure to any
business that would put up a poster advertising his tour group and agree not to advertise
or mention in any way any other tour group. Benny was particularly successful in
reaching that agreement with hotels and restaurants in his town because of his likeable
personality. When Prudence, who ran a rival tour group heard about Benny’s actions,
she was furious and accused him of an antitrust violation because he was trying to keep
all the tour action for himself. Benny told Prudence she was nuts and that the only
reason she had no business was that she stuck to dry historical fact on her tours and did
not do research on romantic relationships between individuals in the area in order to
‘spice-up” her tours. He also told her that he was not a monopolist because he did not
have all the business as evidenced by Prudence’s own tour service.
Which of the following violations would Prudence most likely be alleging with her
claim that Benny was attempting to keep all the tour business for himself?
A. A violation of Section 1 of the Sherman Act
B. A violation of Section 2 of the Sherman Act
C. A violation of the Business Regulation Act
D. A violation of the Robinson-Patman Act
E. A violation of Sections 1 and 2 of the Sherman Act, but not a violation of the
Business Regulation.
“Defective Computer.” Clara went to buy a new computer from XYZ Computer Sales.
The manager there, Harold, told her that the store carried the best computers in the
state, even in the country. Unfortunately, after Clara bought the computer and took it
home, she discovered that it had a number of problems. When she took it back to the
store, Harold told her that he was sorry, that he was simply giving his opinion when he
sold her the computer, and that the store did not warranty products. Harold told her that
is why he never mentioned warranties – because they were not given.
Which of the following would represent Harold’s defense that he was only giving his
opinion that the store carried the best computers in the state, even in the country?
A. Express warranty
B. Implied warranty
C. Warranty of fitness for a particular purpose
D. Acknowledged warranty
E. Puffing
“Surprise Arrival.” Gracie was surprised and pleased to find that she was pregnant. She
worked as a waitress at Good Food and was aware that Groucho, her employer, had
allowed employees who were ill for reasons that were not work related to take paid time
off. For example, her friend Craig was off with pay for two months after suffering a
mild heart attack, and her friend Bonnie was off work for three months when she ran
her personal watercraft into a dock and broke her leg. Gracie, therefore, happily told
Groucho about her pregnancy. He very angrily told her that, as set forth in the employee
handbook, pregnancy was completely voluntary; that she was not entitled to a dime
when she was off work; and that she would be lucky if he even allowed her to continue
working at all because she would not be as cute when she gained weight. According to
Groucho, being slender was a bona fide occupational qualification for females as well
as males. He said that he serves families, and he does not want the kids asking
embarrassing questions of their parents regarding Gracie’s condition. Gracie was very
angry and threatened to sue. Groucho told her, however, that he had business law back
in 1980 and that discrimination based on pregnancy is not even covered by Title VII.
What will be the likely result if Groucho defends on the basis that being slender is a job
requirement for males as well as females?
A. If he can prove that he also requires males to be of a certain type, then that is a bona
fide occupational qualification; and Groucho can require that of Gracie with a resulting
discharge.
B. Groucho will only prevail on a defense of bona fide occupational qualification if he
can establish that he has an established history of requiring skinny servers and that he
did not single out Gracie.
C. Groucho will only prevail on a defense of bona fide occupational qualification if he
can establish that Gracie was attempting to voluntarily get pregnant.
D. Groucho will not prevail on a defense of bona fide occupational qualification
because it is available in cases involving religion and national origin only.
E. Groucho will lose because pursuant to the Pregnancy Discrimination Act (PDA) of
1987, an employer may not force a woman to take time off work during her pregnancy.
What did the court rule in regard to the plaintiff’s claim of intentional infliction of
emotional distress in Olson v. CenturyLink, the case in the text in which the plaintiff
alleged that representatives of the defendant, a provider of telephone services, wrongly
failed to process his application, disconnected his telephone service, and hung up on
him during telephone conversations?
A. That the conduct complained of by the plaintiff failed to meet the level of conduct
required for a finding of the intentional infliction of emotional distress.
B. That the plaintiff’s complaint regarding the disconnection of his telephone service
was sufficient to support a claim of intentional infliction of emotional distress but that
the plaintiff’s other allegations were insufficient to support an award based on the tort of
the intentional infliction of emotional distress.
C. That the plaintiff’s complaint regarding the refusal to process his application was
sufficient to support a claim of intentional infliction of emotional distress but that the
plaintiff’s other allegations were insufficient to support an award based on the tort of the
intentional infliction of emotional distress.
D. That the plaintiff’s complaint regarding representatives hanging up on him were
sufficient to support a claim of intentional infliction of emotional distress but that the
plaintiff’s other allegations were insufficient to support an award based on the tort of the
intentional infliction of emotional distress.
E. That the plaintiff would be allowed to proceed as to all allegations because they were
all adequate to support a verdict based on the intentional infliction of emotional
distress.
“Run Around.” Millie issues a promissory note to Bob. Bob endorses the note and
transfers it to Anne. Anne endorses the note and transfers it to Henry. Henry presents
the note to Millie for payment. When Henry presents the note to Millie, she asks him
for reasonable identification. He did not have any identification with him and told her
that she had no right to dishonor the instrument. Millie continued to insist, so finally, on
the same day, Bob obtained clear identification and presented it to her. Nevertheless,
even with proper identification, Millie refused to pay the note, claiming that she lacked
the funds with which to do so. After properly providing notification of dishonor to both
Anne and Bob, Henry requested that Anne pay the note, but she told him that he would
have to get his money from Bob. Henry has been trying to call Bob for 35 days, but
Bob did not return his telephone calls. Henry is exasperated; and within 40 days of
when Millie refuses payment, he notifies Millie, Bob, and Anne that the promissory
note has been dishonored by Millie and that he is asserting liability on the note against
all of them. Millie calls him up and says that she never dishonored the note, she simply
lacks the funds with which to immediately pay and thinks that he should seek recovery
elsewhere.
Which of the following is true regarding Henry’s entitlement to payment from Millie?
A. Henry is only entitled to payment from Millie because Anne dishonored the
payment.
B. Henry is not entitled to payment from Millie unless Bob, in addition to Anne,
dishonors the instrument.
C. Henry is never entitled payment from Millie because he must seek recovery only
from Anne.
D. Henry is entitled to recover on the note from Millie.
E. Henry is entitled to recover on the note from Millie only if both Anne and Bob have
filed bankruptcy or are otherwise proven insolvent.
Which of the following references the liability of corporations for torts and crimes
committed by their agents during the scope of their employment?
A. Stare decisis
B. Res ipsa loquitur
C. Respondeat superior
D. Ab initio
E. Actus reus
Cindy who was riding her new bicycle accidentally ran over jogger Bruce’s foot. He
sues. Cindy is suspicious that he is not hurt as badly as he claims. What would Cindy
want to know for trial, and how could she and her lawyer find out? Fully discuss your
answer and methods by which Cindy could obtain information.
In most states, what must a plaintiff prove to succeed in a strict-liability action alleging
a defective product?
Set forth the steps involved in hybrid rule making.
Define and describe the three commonly used theories of recovery in product liability
cases and set forth the two common elements that a plaintiff must generally show in
order to prevail under a product liability theory.
Assuming the parties live in a jurisdiction that allows donee beneficiaries to enforce
rights under a contract, against whom may a donee beneficiary enforce rights and why?
Identify and describe a franchise agreement, a joint venture, and an affiliate business in
relation to international business.
What is a proxy solicitation and how is it regulated by the SEC?
When can an accountant be held liable to his or her client for fraud?
Discuss when a party may be considered a “merchant” under the UCC.
Bill, the president of Brute Force, a company that provides security services, was very
concerned about attempts at unionization. The union obtained a majority of
authorization cards. At that point, Bill told all employees that they would be fired on the
spot if they supported the union. His friend Susie had told him that was the only way in
which to proceed and that he should “nip union organization in the bud.” The union lost
the election and complained of Bill’s practices to the NLRB. What, if anything, can the
NLRB do once the union has lost the election?
List and describe the three types of documents of title governing bailments.
Set forth in detail the test that most states follow regarding the treatment of the capacity
of intoxicated persons to enter into contracts.
Explain the concept of absolute privilege in the context of defamation and set forth the
two situations listed in the text in which it is applied. Discuss whether you believe each
category of absolute privileges should be eliminated.
Anne orally promises Judy that in return for Judy washing Anne’s dog, Anne
unconditionally promises to pay Judy $50 the next Wednesday. Is a contract formed, is
it negotiable, and why or why not?
What four considerations did the U.S. Supreme Court identify in the case of Daubert v.
Merrill Dow Pharmaceutical for relevant and reliable expert opinions?
Set forth the universal requirements for a merger or acquisition including what most
states require in regard to shareholder approval.
When is the exemption from rule-making procedures known as “impracticable,
unnecessary, or contrary to the public interest” most commonly used and what must the
agency do if this avenue is chosen?
In what two ways do courts interpret subscription agreements?