Liu enters Mountain Triathlon, an athletic competition in which Liu has never
competed. Regarding the risk of injury, Liu assumes the risks
a. attributable to the triathlon in any way.
b. different from the risks normally associated with the triathlon.
c. greater than the risks normally associated with the triathlon.
d. normally associated with the triathlon.
Answer:
Soft Drink Corporation is charged with violating the Sherman Act through conduct
subject to the rule of reason. When applying the rule of reason in this situation, a court
will not consider
a. the purpose of the agreement.
b. the parties’ market ability to implement the agreement.
c. the effect of the agreement on international trade.
d. the potential effect of the agreement on competition.
Answer:
Damien buys a copy of the book Exchange. Later, after reading the book, Damien sells
it to his sister. Under the first sale doctrine, Damien’s sale of the book is
a. legal.
b. legal only if the copyright has expired.
c. legal only if Damien sells it for less than he paid for it.
d. illegal.
Answer:
Cook’s Pantry Appliances, a retail store, must use reasonable care on its premises to
warn its patrons of
a. all risks.
b. hidden risks.
c. obvious risks.
d. no risks.
Answer:
Garden Tool Company makes chain saws. Hadrian is injured while using a Garden Tool
saw and sues the company for product liability based on negÂligence. To win, Hadrian
must show that
a. Garden Tool did not use due care with respect to the trimmer.
b. Garden Tool used puffery in its advertising.
c. Hadrian was not experienced in the use of trimmers.
d. Hadrian was in privity with Garden Tool.
Answer:
Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for
$2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job
for $2,000. Dry Gulch may recover from Elliot
a. nothing.
b. compensatory damages.
c. consequential damages.
d. nominal damages.
Answer:
Bertha owns land located outside Centre City. Bertha sells the land to Disposal &
Recycling, Inc., which establishes a hazardous waste disposal facility at the site.
Disposal & Recycling accepts only waste transported by Eco Trucking Inc. exclusively
from Federated Industries, Inc. Several years later, Disposal & Recycling closes its
facility and sells the land to Garden Variety Retail Corporation, which builds a Home &
Yard store on the site. Meanwhile, some of Centre City’s citizens complain to the
Environmental Protection Agency (EPA) that the city’s municipal water supply is polÂ-
luted. The EPA investigates and discovers that the sources of the polluÂtion are leaks of
hazardous waste from what is now the Home & Yard site. The EPA cleans up the site.
Who can be held liable for the cost of cleaning up the site? What standards must Centre
City meet regarding the water?
Answer:
Space Trips Inc. files a registration statement with the SEC before making an offering
to the general public. The registration contains false, immaterial statements of which the
investors are unaware. Space Trips is charged with violating the Securities Act of 1933.
Space Trips’s best defense is
a. the investors were not aware of the misrepresentations.
b. the issuer reasonably believed the misstatements were true.
c. the offering was made available to the general public.
d. the untrue statements were not material.
Answer:
Beth is a victim of Carl’s violation of a criminal law. Criminal law is conÂcerned with
a. the prosecution of private individuals by other private individuals.
b. the prosecution of public officials by private individuals.
c. the relief available when a person’s rights are violated.
d. wrongs committed against the public as a whole.
Answer:
Esmeralda promises to pay Fiorello $400 because ‘he does not have as much money as
other people.’ Esmeralda’s promise is not enforceable because
a. society does not want gifts cheapened by making them legally enforceable.
b. the redistribution of wealth on a one-to-one basis is not a valid social goal.
c. Esmeralda could have paid more.
d. Fiorello has not given consideration in return.
Answer:
Selena’s Fajitas, a fast food outfit, files a suit against the state of Texas, claiming that a
Texas state law violates the commerce clause. The court will agree if the statute
imposes a substantial burden on
a. a local government.
b. interstate commerce.
c. noneconomic activity.
d. the state.
Answer:
Custom Auto Body & Detailing, LLC, is a limited liability company. Unless indiÂcated
otherwise on the Custom Auto’s federal tax form, the firm will be taxed as
a. a cooperative.
b. a corporation.
c. a joint venture.
d. a partnership.
Answer:
To prepare for a trial between SmartPhones, Inc., and TechApps Company, TechApps’
attorney places SmartPhones’ chief executive officer (CEO) under oath. A court official
makes a record of the attorney’s questions and the CEO’s answers. This is
a. a cross-examination.
b. a deposition.
c. voir dire.
d. an interrogatory.
Answer:
After extensive collective bargaining, Union of Warehouse Workers (UWW) and
Volatile Products Company cannot agree on terms. The employer may
a. file an unfair labor practice complaint with the National Labor Relations Board.
b. file a suit in the appropriate federal court.
c. lock out the UWW employees.
d. petition the president of the United States, who has eighty days to make a decision.
Answer:
Oliver slips and falls on Port Harbor’s Tour Boat and is injured. Oliver files a suit
against Port Harbor for $500,000. If Oliver is 20 percent at fault and Port Harbor is 80
percent, under the ’50 percent rule’ comparative negÂligence principles, Oliver would
recover
a. $0.
b. $250,000.
c. $400,000.
d. $500,000.
Answer:
Luella trespasses on Merchandise Mart’s property. Through the use of reaÂsonable
force, Merchandise Mart’s security guard Norris detains Luella until the police arÂrive.
Merchandise Mart is liable for
a. assault.
b. battery.
c. false imprisonment.
d. none of the choices.
Answer:
No state requires franchisors to provide presale disclosures to prospective franchisees.
Answer:
Any activity that substantially affects interstate commerce falls outside the scope of
antitrust laws.
Answer:
Under the U.S. Constitution, the judicial branch interprets the laws.
Answer:
The verdict in a summary jury trial is not binding.
Answer:
The distribution of promotions and other job benefits according to a seniority system is
not normally a good defense to a suit for employment discrimination.
Answer: