State and federal transportation agencies may issue regulations that conflict. When a
state regulation conflicts with a federal regulation
a. the federal regulation takes precedence.
b. the state regulation takes precedence.
c. the regulations are mutually void.
d. the regulations are of equal effect.
Answer:
Qatar Global Investments is a foreign entity’”a firm owned and operated by investors in
a foreign country. With respect to a limited liability company in the United States, Qatar
Global can
a. act as a creditor, but cannot otherwise invest or participate.
b. become a member.
c. not become a member, but can participate in its operations.
d. not become a member or otherwise participate in its operations.
Answer:
Foster contracts with Golf Carts Unlimited, Inc. to buy five golf carts. The contract lists
the five carts as GC001, GC002, GC003, GC004, GC005. Identification
a. requires that Foster verify his identity to take possession of the carts.
b. has taken place.
c. cannot take place until the contract is reviewed by a court.
d. will take place only when Foster pays for the golf carts.
Answer:
Corbin, a partner in Dentists & Orthodontists Clinic, applies for a loan with Evermore
Bank allegedly on Doctors’ behalf but without the authorization of the other partners.
Evermore knows that Corbin is not authorized to take out the loan. If Corbin defaults on
the loan, liability for its unpaid amount will be imposed on
a. Corbin and Doctors, jointly.
b. Corbin only.
c. Doctors only.
d. Evermore only.
Answer:
Fact Pattern 15-1
Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and
those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to any
e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene sends
e-mail notes to her friends, relatives, and co-workers, discussing personal issues and
recommending products or services that she likes.
Refer to Fact Pattern 15-1. Federal law preempts state antispam laws
a. with no exceptions.
b. except for laws that require the use of spam by business entities.
c. except for statutes that ban the use of spam altogether.
d. except for provisions that prohibit false and deceptive e-mailing practices.
Answer:
Fact Pattern 15-1
Great Looks Clothing Corporation sends daily e-mail ads to its previous customers and
those who have opted to receive the notices. Hot Trends Inc. sends e-mail ads to any
e-mail address that Hot Trends can find on the Web or otherwise generate. Ilene sends
e-mail notes to her friends, relatives, and co-workers, discussing personal issues and
recommending products or services that she likes.
Refer to Fact Pattern 15-1. One of the senders’”Great Looks, Hot Trends, or Ilene’”is
acting outside the bounds of federal law. Federal law prohibits the sending of
a. unsolicited commercial e-mail.
b. solicited commercial e-mail.
c. commercial e-mail to randomly generated addresses.
d. non-commercial e-mail that promotes a product or service to a friend, co-worker, or
relative.
Answer:
Nazih and Ovidia are limited partners in Physicians Medical Center, a limited partnerÂ-
ship. In terms of the firm’s books and information regarding partnership business, Nazih
and Ovidia are entitled to
a. access in proportion to their participation in management of the firm.
b. access to the parts that directly relate to their capital contributions.
c. no access.
d. complete access.
Answer:
The U.S. Small Business Administration issues a new regulation that will have a
significant impact on a substantial number of small businesses. Under the Regulatory
Flexibility Act, the agency must do all of the following except
a. measure the cost that the rule will impose on small businesses.
b. consider less burdensome alternatives.
c. conduct a regulatory flexibility analysis.
d. adjust the rule to the satisfaction of the regulated businesses.
Answer:
Alain is chairman of the board of Barber & Beauty Supply Corporation. Consuela, a
conÂsumer, is injured while using a Barber & Beauty product. She sues Barber &
Beauty and Alain individuÂally. The corporation may pay Alain’s legal fees under
a. under the director’s right to participation.
b. under the director’s right to compensation.
c. under the director’s right to indemnification.
d. only on the firm’s own initiative.
Answer:
MedBeat Inc., makes medical devices, including heart pacemakers. Nina, a heart
patient, files a product liabilÂity suit against MedBeat, alleging a warning defect with
respect to its pacemaker. In deciding whether to hold MedBeat liable, the court may
consider whether there is a foreseeable risk of harm posed by the pacemaker and
a. the omission of a warning renders the pacemaker not reasonably safe.
b. there is a reasonable alternative design.
c. MedBeat did not use due care in making the pacemaker.
d. Nina lacks insurance coverage.
Answer:
Roderick possesses five hundred acres of forested property. Roderick has the right to
use the land, inÂcluding cutting its timber, for life. Roderick also has the right to lease
the land for a period not to exceed his life. This ownership interest is
a. a fee simple absolute.
b. a leasehold estate.
c. a life estate.
d. an easement.
Answer:
BurgerBoy Restaurant Corporation allows its trademark to be used as part of a domain
name for BurgerBoyNY, Inc., an unaffiliated company. BurgerBoyNY does not obtain
ownership rights in the mark. This is
a. goodwill.
b. fair use.
c. a license.
d. a safe harbor.
Answer:
Riverside Ranch is a horse breeding facility. Steed Stables is a customer looking for a
new stallion for its breeding program. Riverside’s representative Tomas shows Steed a
stallion that he says is very fertile and can easily breed twenty mares per year. This
statement is
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffery.
Answer:
App Developers, Inc. (ADI), enters into a contract with Carmen, the chief executive
officer of SalesCorp, to create an app for the firm. To fulfill the contract, ADI hires Max
and ten other student interns. With respect to the contract between ADI and Carmen,
Max is
a. an intended beneficiary.
b. an incidental beneficiary.
c. a delegate.
d. an assignee.
Answer:
In reviewing the actions of the U.S. Bureau of Land Management and other federal
agencies, the courts
a. are usually reluctant to review questions of fact.
b. rarely defer to the technical expertise of administrative agencies.
c. often rule on the merits of policy determinations.
d. never defer to an agency’s interpretation of law.
Answer:
Commercial Credit & Finance is a limÂited partnerÂship. Derry, Eleni, and Frey are
the general partners. Derry dies. The partnership can
a. continue only after a distribution of its assets.
b. continue only as a general partnership.
c. continue only if Eleni and Frey consent.
d. not continue because Derry’s death dissolves the firm.
Answer:
Debt & Loan Collection Agency calls Ethel several times a day, and someÂtimes in the
middle of the night, about an overdue bill that a Furniture4U store turned over to Debt
& Loan for collection. This is a violation of
a. no federal law.
b. the Fair and Accurate Credit Transactions Act.
c. the Fair Debt Collection Practices Act.
d. the Truth-in-Lending Act.
Answer:
Charles is a federal judge whose judicial decisions are part of case law, which does not
include interpretations of
a. regulations created by administrative agencies.
b. constitutional provisions.
c. statutes enacted by legislatures.
d. sound bites in the media.
Answer:
Taco Hot Dogs, Inc., regularly advertises its products. Under the First Amendment, in
comparison with noncommercial speech, the protection given these ads is
a. equally extensive.
b. less extensive.
c. more extensive.
d. non-existent.
Answer:
The Pennsylvania Consumer Protection Agency (PCPA) investigates the marketing
practices of Respond Now!, Inc. The PCPA serves a subpoena on Respond Now!,
ordering the firm to provide certain business records, including its marketing
agreements with other companies. Respond Now! refuses to comply with the subpoena.
On what is the company most likely basing its refusal? Is a court likely to support this
position? Why or why not?
Answer:
Rodrick, the chief executive officer of Social Post Host Inc., claims that certain actions
by the state of Texas infringe on rights guaranteed by the Bill of Rights. Most of these
guarantees have been held to limit
a. federal actions only.
b. federal and state actions.
c. federal and state actions, and actions by nongovernment entities.
d. actions by nongovernment entities only.
Answer:
The study of business ethics is concerned with the purposes of a business and how that
business achieves those purposes.
Answer:
Procedural law does not have a significant impact on a person’s ability to pursue a legal
claim.
Answer:
Limited liability companies are entities apart from their owners.
Answer:
Specifically targeting the customers of a competitor is always a legitimate business
practice.
Answer:
An agency relationship created for a purpose that is contrary to public policy may still
be enforceable.
Answer:
Most contracts need to be performed only to the satisfaction of a reasonable person
unless they expressly state otherwise.
Answer:
The principle of comity basically refers to legal reciprocity.
Answer:
Compensatory damages are not available in cases of intentional discrimination in
violation of Title VII of the Civil Rights Act of 1964.
Answer:
Federal wage-hour laws cover all employers engaged in interstate commerce.
Answer:
For most crimes, the state must initiate prosecution within a certain number of years
after the crime occurs.
Answer: