BLAW Exam

Employment-at-will is a doctrine of legal inequality: after all, most employees are not wealthy while many employers and bosses are.

False

Which of the following is false?

A corporation is not a legal person.

Which of the following is true regarding types of corporations:

A domestic corporation is one chartered in a home state; a foreign corporation is chartered out-of-state; an alien corporation is chartered outside the United States.

An indemnification is:

A promise by one person to pay for the loss of another

If a litigant is not physically present or otherwise not within the court's ordinary jurisdiction, a court may still exercise jurisdiction under the minimum contacts test. Which of the following are part of the minimum contacts test? A. Purposeful availment B. Res ipsa loquitur C. Foreseeability by defendant of being sued there D. Concatenation minusculus E. Fair play and substantial justice

A, C, and E

A corporation is a "person" because:

All of the above are correct

Aggressive Andy, angry that Sneaky Sam had stolen his idea and was about to present it to the boss, decides to take action. Andy grabs the report from Sam, not touching Sam but causing a definite jerking of arms. Sam, upset, takes a ruler and tries to hit Andy, but misses. Andy then tells Sam that unless he agrees not to steal his idea, Andy will not let him out of the cubicle area. Afterward, Sam is seen joking with friends about having stolen your idea. Which torts might have occurred?

Assault, battery, false imprisonment, and possibly conversion

Which of the following is required under a "long arm" statute? A. Stare decisis B. Purposeful availment C. Foreseeability by defendant of being sued there D. Exclusive jurisdiction E. Fair play and substantial justice

B, C, and E

Why would U.S. courts, which are generally predisposed to favor business activity, often place the burden of tort law upon a business defendant?

Because the business and only the business can reduce future injuries

Courts of law and courts of equity are distinct in the United States.

False

Covenants not to compete in employment are unenforceable.

False

Which is true in U.S. bankruptcy law:

Chapter 7 covers liquidation, and Chapters 11-13 cover reorganization of debts

Careful Carissa is singing the Karen Carpenter hit Close to You as she drives down First Avenue. She is driving under the speed limit, with both hands on the wheel. She is hitting the high notes in the song, shouting "Waa, ah ah ah ah...close to you..." when she is struck from the side by a large truck driven by an extremely inebriated ex-felon. Under which of the following tort laws is Carissa likely barred from recovery?

Contributory negligence, if it is shown that her singing is even 1% responsible for the accident

Which of the following rights under copyright law refers to the right to sell, rent, lease, lend, or give away copies of the work:

Distribution rights

A federal question is:

Exclusive jurisdiction in the federal courts

A joint venture is synonymous with a general partnership.

False

A litigant may file a case in federal court under the theory of diversity of citizenship if he or she is of a different racial or ethnic background than the defendant.

False

A non-profit corporation need not worry about the monies that would be profits if the non-profit were a for-profit corporation.

False

An appeals court will give deference to a trial court for findings of law.

False

Co-insurance is a form of insurance in which the business budgets funds to pay for known risks

False

If a breach of contract occurs, the court is likely to return the parties to their ex ante position, or the position they held before the contract.

False

If a business sets an interest rate in a credit sale at a rate higher than the usury rate, the court will void the contract.

False

If two parties have not dealt with each other before, the court will not interfere in interpreting a contract in a way the parties might not have agreed.

False

In Agency Law, respondeat superior is a duty owed by the master, while vicarious liability is the duty owed by the servant.

False

In an agency relationship, the servant should inform the master of a matter only if it affects the servant's ability to carry out the job.

False

In bankruptcy law, "Chapter 11" involves a liquidation of debts.

False

In contract law, "consideration" must be money.

False

In contract law, a person must prove that they have capacity to enter into a contract.

False

It is not possible to buy air above land.

False

It is not possible, under Agency Law, to avoid liability for a violation of the important duty of loyalty.

False

Jurisdiction is the location of the court in which proceedings occur.

False

Mens rea is the act that leads to criminal liability.

False

Peaceful Pauline spends her life savings (and then some!) on building an artists' retreat, with a mission to expand art education to the people of the world, to make them more gentle and caring through art. Pauline, annoyed at continued burglary of her literally hand-built retreat, sets up a 12-gauge shotgun to protect her property (and her precious artwork!) during the off-season. The shotgun is set to fire when a trip-wire is triggered at the entrance. Evil Elizabeth, seeking artwork for her downtown loft, breaks into Pauline's building, and is immediately rendered devoid of life by the shotgun, aimed expertly at burglars' abdomens. Neither Pauline nor anyone else was in the building (as it was off-season). Pauline is charged with Elizabeth's murder, with a lesser charge of negligent homicide. If Pauline claims the defense of defense of dwelling, she will not be liable for a crime.

False

There is an absolute right to be left alone.

False

Under Agency Law, "compensation" must be in legal currency.

False

Under Agency Law, only the servant owed duties.

False

Under the duty of obedience in Agency Law, the master must follow the instructions of a servant who has superior knowledge of a specific issue, such as the type of iron used in making swords.

False

If a jurisdiction has enacted a "stand your ground" law, the victim of a crime may claim a defense of self-defense even if they could have retreated.

True

You are an entrepreneur, fresh from an IPO placing your net worth somewhere in the top one-one-hundredth of one percent. (You're now an evil top one-one-hundredth of one percenter!) You've always had a dream of flying, and so, between efforts at your newest start-up, you take lessons at your local airport to learn how to fly helicopters. Upon receiving your license (and after the appropriate festivities), you stop by the helicopter dealer next door, and purchase a sparkly, brand-new, 5-bladed, hot-rod Hughes MD500 helicopter (with the special two-tone paint job, of course). After signing the papers and being given the keys, you hop in the helicopter, lift off, and begin to climb away—whereupon the tail rotor, which had been installed without safety fasteners, twists off. The helicopter, minus its tail rotor, spins out of control. 1. Your surviving relatives can sue the dealer because: 2. This is an implied warranty from a usage of trade. 3. This is an implied warranty of merchantability. 4. This is an implied warranty of fitness for a specific purpose. This is an express warranty. 5. Your surviving relatives cannot sue the dealer.

I, II, and III are correct

You are the general manager for an amusement park, Thrills & Spills. Jonathan, a most troublesome tyke, sneaks onto a ride. Unbeknowst to Johnny, the head of maintenance, under intense pressure (by you!) not to disturb the operation of rides, and thus flow of revenues, covers for another employee, whom he suspects has been falsifying safety-inspection logs. At just the moment Johnny's car rounds the most-exciting bend of the ride, a critical bolt fails, causing the car to be derailed and Johnny to be severely injured. Sued by his parents, you point to the large signs at the entrance of the park and at the ride itself: "Thrills & Spills NOT responsible for personal injuries. Use at your OWN RISK!!!" Under the principles of exculpatory clauses, which of the following are most likely to be true: 1. Johnny likely wins if he can show that Thrills & Spills is grossly negligent 2. You likely win if you can show that Johnny did not pay for the ride 3. Johnny's sneaking into the ride is not likely, on public policy grounds, to excuse Thrills & Spills 4. Exculpatory clauses can sometimes be legally effective 5. Exculpatory clauses are used even if not legally effective

I, III, IV, and V are correct

Intellectual property is important for all of the following reasons except:

It replaces the prior art

Which would not be an example of a crime in which the person who commits the crime does not intend to commit a crime, or might not even know about the crime:

Murder

Jacqueline and Jake operate a website in Rhode Island. They receive a document summoning them to appear in a court in Oregon. They:

Must appear if their website offers order-taking functionality

knowledge that the sale violates the rights of another person in the goods, and (c) in the ordinary course from a person, other than a pawnbroker, in the business of selling goods of that kind (i.e., a merchant).

Not sue, because "as is" is an express disclaimer

In business law, double taxation refers to:

Payment of taxes by the corporation and again by the shareholder

Which of the following is not true of preferred shares:

Preferred shareholders are paid dividends before bondholders.

Businesses will often self-insure against knowns risks by budgeting a certain amount for likely costs, while insurance companies might share extraordinary risks with other insurers via co-insurance.

True

Which of the following is least likely to be an acceptance in the formation of a contract:

Silence

Which of the following refers in U.S. law to the legal equivalent of the Golden Rule: "Do unto others as you would have them do unto you":

The "Clean Hands" doctrine

Fred Q. Taxpayer sues the federal government on the basis of a misuse of money in the acquisition of pencils for the U.S. Department of Commerce. A U.S. court is likely to rule that:

The case cannot proceed due to a lack of standing

An "S" Corporation is a corporation with favored tax treatment yet legal restrictions on ownership.

True

An important duty in law is a fiduciary duty.

True

If an owner has limited liability, this means that:

The liability for losses is limited to the extent of the investment

Which of the following is not an example of "trade dress"?

The technology behind your product: Glarf

Your business sells a great product, Glarfs. Your product, Glarfs, goes viral, and soon nearly everyone is talking about Glarfs. In fact, they talk about it so much, it becomes a verb, meaning "to Glarf." Pretty soon, copycat producers produce their versions of your products, but everyone still calls them all Glarfs, even though only yours are the real Glarfs. No matter, Glarfs becomes a common term used to describe the type of product. Which of the following is not true:

There is no downside, as you're now super-successful.

"This is one of the finest vintages in the last 20 years!" Which of the following is most true:

This statement creates an express warranty if it is stated by a wine connoisseur.

A "uniform code" is not law until adopted by a state.

True

A franchise is a means to leverage one's energies and modest capital with the intellectual property of the franchisor.

True

A key concept in insurance in an indemnity of one party to pay for the loss of another.

True

If a master leads someone else to believe that the servant is authorized to conduct business, the master will be liable to that other person for the actions of servant on the master's behalf.

True

Imputed knowledge occurs when the law assigns, or "imputes" knowledge to a master whether or not the master actually "knew" a fact.

True

In a strict liability crime, mens rea, or a guilty mind, is not required. Businesses may be liable for criminal punishment in "regulatory crimes" such as health and safety regulations, environmental pollution, or taxation.

True

In bankruptcy law, a "fresh start" is a discharge of debts.

True

In contract law, the legal tests of "offer," "acceptance," and "consideration" are fairly easy to satisfy.

True

Insurance is the reallocation of risk via contract.

True

Managing conflict is ultimately productive, because in the resolution of disputes we can move on.

True

Property and contract law were considered an essential starting point for the rule of law, and a necessary precondition for economic development.

True

Real property is land and anything affixed thereto.

True

The Model Penal Code has, through legislation in individual states, modified common law crimes into a more standardized, simplified statutory approach.

True

The duty of performance is a duty owed by the servant to the master.

True

The practical impact on business is in regulatory law rather than constitutional law.

True

Title VII of the Civil Rights Act is among the most important of numerous exceptions to the legal doctrine of employment-at-will.

True

U.S. courts have some flexibility in evaluating cases and enforcing a resolution.

True

Umbrella insurance is coverage that extends above other policies, to protect high-net-worth individuals from extraordinary losses.

True

Under Agency Law, the master must reimburse the servant for expenses taken on behalf of the master in furtherance of the service.

True

Under Article 2 of the Uniform Commercial Code, a contract might be upheld even if the parties forgot to specify the price.

True

Under the Uniform Commercial Code, a "buyer in the ordinary course of business" supersedes the interests of the original seller who is still owed money on the item. In other words, such a buyer purchases the item "free and clear," even if the merchant doesn't own it.

True

Under the doctrine of employment-at-will, an employee can be fired for absolutely any reason at all: Even if the boss "just felt like it!"

True

Sally has been accused of a crime, which has been widely publicized in her local area. If Sally believes that she cannot receive a fair trial based on this negative publicity, she might seek to change the location of the trial. This is referred to as:

Venue

In U.S. law, bankruptcy courts are:

Within each U.S. District Court

You operate a highly successful software firm from your beachfront mansion in Hawaii. You receive official notice that you are being sued by a disgruntled customer from Maine. It is February. Must you defend your suit in Maine?

Yes, if your website offers full e-commerce such as ordering and business support.

In contract law, what phrase refers to the power you have to enter into whatever deal you believe is best for you:

You are the "master of your offer"