The Long-haul Truckers Association wants the federal government to spend funds to
build a new highway. Congress can spend revenues
a. only to carry out its enumerated powers.
b. to promote any objective that it deems worthwhile.
c. as long as the funds are spent uniformly among the states.
d. without regard to whether the expense violates the Constitution.
Answer:
Round-Up Ranch and Smith & Jones, Accountants, are limited liability partnerships
(LLPs). The major features of an LLP are that it limits the personal liability of the
partners and
a. it allows the partnership to continue as a pass-through tax entity.
b. LLP statutes do not vary from state to state.
c. it can only do business in the state in which it was formed.
d. only a few states have enacted LLP statutes.
Answer:
Eartha receives from Fergie a guitar stolen from Harper. To be criminally liable, Eartha
must
a. know that Fergie is the thief.
b. know that Harper is the true owner.
c. know that the guitar is stolen.
d. have paid for the guitar .
Answer:
NoGas, Inc., designs and makes a non-fuel propulsion system that copies parts of Omni
Momentum Corporation’s designs without Omni’s permisÂsion. This is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
Answer:
Fine Motor Company buys gas pedals and other parts from General Mechanix, Inc., and
puts them in its vehicles without changing their composition. If the pedals or other parts
are defective, strictly liable for any damage caused by the defects are
a. Fine Motor only.
b. no one.
c. Fine Motor and General Mechanix.
d. General Mechanix only.
Answer:
Fried Food, Inc., operates a commercial frying plant, discharging polÂlutÂants into the
air. Greg reports the violations to the Environmental Protection Agency. Greg
a. is not entitled to a payment.
b. may be paid up to any amount.
c. may be paid up to $1,000.
d. may be paid up to $10,000.
Answer:
Congress enacts a law prohibiting toys made in Indonesia from being sold in the United
States. The Washington state legislature enacts a law allowing the sale of
Indonesian-made toys. Washington’s law will most likely be
a. rendered invalid under the supremacy clause.
b. held to be valid under the equal protection clause.
c. struck down under the taxing and spending clause.
d. upheld under the commerce clause.
Answer:
General Assembly Corporation, a U.S. employer, may hire Hilo, a nonÂcitizen, if Hilo
is
a. a lawful permanent resident of the United States.
b. an unlawful but hopefully permanent resident in the United States.
c. an unlawful but only temporary resident in the United States.
d. any of the choices.
Answer:
HoneyBee Foods, Inc., in Illinois, and Jelly Roll Pastries, in Kentucky consent to have
their dispute resolved in arbitration according to the law of Illinois. This is a ground for
a court to
a. compel arbitration.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside any award.
Answer:
Portia owes Bon $500 on their roof repair contract, but refuses to pay. To collect, Bon
files a meÂchanic’s lien. Under a mechanic’s lien, security for the debt is repreÂsented
by
a. Portia’s personal property.
b. Portia’s real estate.
c. the $500 owed under the contract.
d. the contract.
Answer:
Mont Blanc S.A., a French firm, imports its goods into the United States and offers
those goods for sale at ‘less than fair value.’ ‘Fair value’ is the price of Mont Blanc’s
goods in
a. the European market.
b. France.
c. the United States.
d. the world market.
Answer:
Ruta is a supervisor for Subs & Suds, a restaurant. Tim is a Subs employee. The owner
announces that some emÂployees will be discharged. Ruta tells Tim that for sexual
favors she will give him an excellent performance review and recommend a raise. This
is
a. harassment on the basis of sexual orientation.
b. hostile-environment harassment.
c. not harassment.
d. quid pro quo harassment.
Answer:
Livestock Feedlot orders one hundred sacks of cattle feed from MegaNutrient Feed,
Inc. Each sack is stamped with the phrase ‘Twenty percent protein.’ This is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Answer:
Sara believes that she has a strong case against Tom for the breach of an employment
contract. Despite this belief, Sara cannot file a suit against Tom after the expiration of
the time allowed for the filing under
a. a statute of limitations.
b. the doctrine of laches.
c. an equitable maxim.
d. the remedy at law.
Answer:
As a judge in a federal court, Christine can decide, among other things, whether the
laws or actions of the executive and legislative branches are constitutional. The process
for making this determination is known as
a. judicial review.
b. jurisdiction.
c. venue.
d. early neutral case evaluation.
Answer:
Coco is considering forms of business organization for her concessions
business’”Coco’s Cakes. Most states require that a limited liability company have
a. no minimum number of members.
b. at least one member.
c. at least two members.
d. at least three members, including one general partner.
Answer:
Optima Medico Corporation, a U.S. firm, signs a contract with Pharma Beneficial, Ltd.,
a Canadian firm, to give Pharma the right to sell Optima’s products in Canada. This is
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
Answer:
Fact Pattern 25-1
Open Pit Excavation Inc. operates a rock quarry next to Robyn’s vineyard and winery.
Robyn files a suit against Open Pit, alleging that the quarry is a nuisance and
unreasonably interÂferes with Robyn’s enjoyment of her property.Refer to Fact Pattern
25-1. The court is most likely to award Robyn damages
a. if letting the pollution continue is equally as harmful as stopping it.
b. if letting the pollution continue is less harmful than stopping it.
c. if letting the pollution continue is more harmful than stopping it.
d. under no circumstances.
Answer:
As part of a stock offering for Designer Studio Corporation, the firm’s accountant
Evelyn intentionÂally misrepresents material facts in the proÂspectus. Flores buys the
stock unaware of the misrepresentation and sufÂfers a loss. Evelyn may be subject to
a. a fine and damages only.
b. a fine and imprisonment only.
c. a fine, imprisonment, and damages.
d. damages only.
Answer:
A provision in the California state constitution conflicts with a provision in the U.S.
Constitution. If challenged
a. neither provision will be enforced.
b. the provisions will be balanced to reach a compromise.
c. the state provision, not the U.S. Constitution, will be enforced.
d. the U.S. Constitution, not the state provision, will be enforced.
Answer:
Orson files a suit against Portia. Before going to trial, the parties meet, with their
attorneys to represent them, to present their dispute to a third party who is not a judge
but who imposes a resolution on the parÂties. This is
a. arbitration.
b. mediation.
c. negotiation.
d. not a legitimate form of dispute resolution.
Answer:
Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal
land. For this action, an environmental impact statement is
a. prohibited.
b. required.
c. unnecessary.
d. voluntary.
Answer:
An injured party may sue a business polluter in tort under the negligence and strict
liability theories.
Answer:
A director who does not hold a management position in the corporation is an outside
director.
Answer:
Falsifying public records or altering a legal document is larceny.
Answer:
Simplex Corporation agrees to deliver a certain grade of silicon to TruTools Company.
When the silicon arrives, TruTools claims that it is an inferior grade. The parties submit
their dispute to Uri, an arbitrator who is an expert in the silicon industry. Who sets the
rules for an arbitration proceeding? Are these rules likely to be less restrictive or more
restrictive than the rules governing a court proceeding? Why?
Answer:
U.S. district courts have concurrent jurisdiction with state courts in matters involving
federal questions.
Answer:
An agency agreement can be implied by conduct.
Answer: