BUS 251 Final Exam Study pt. 2

To be eligible for FMLA benefits, an employee must have worked for the company for at least 12 months and have worked __________ hours during the past 12 months.

1250

Under the federal Tax Cuts and Jobs Act of __________, estates that exceed $11.2 million are subject to a 40 percent estate tax at the time of death if the death occurs between 2018 and 2025.

2017

A study published in the Harvard Business Review in January 2000 found that intellectual property represents approximately __________ of an average firm's value.

70 percent

Which of the following would generally not be patentable?

A mathematical formula that allows one to calculate the gross national product.

An owner of a corporation is called

A shareholder

Many states have adopted the __________ test in their agency law as a standard for determining agency status

ABC

Courts will consider the public policy objective to be explicit and well established if it is related to:

All of the choices are correct

Harry and Ron are partners in a delivery business. On a delivery, the delivery truck has a flat tire and Harry pays to have the flat fixed with his own personal credit card. Harry will be paid back the expense that he incurred in the ordinary course of business because

All partners have a right to indemnity

__________ states only cover whistleblowing by government employees or employees of government contractors.

Almost all, some, the majority of None of the choices are correct.

In the case, Unitrin v. American General Corp. the court employed the definition of a non-employee and non-management director to be

An outside director

Psi Pharmaceuticals, Inc. created a patented drug that cures cancer. Omega Corporation wishes to takeover Psi Pharmaceuticals but does not want to incur all of the previous debt and liabilities that Psi Pharmaceuticals incurred in the creation of the drug. Which type of transaction should Omega pursue to achieve this goal

Asset purchase

The RULLCA changes the term managing member to

Authorized representative

Another phrase for termination clause that allows for payment of fees and damages is a(n)

Breakup fees

All of the following are hostile takeover defense strategies except

Budet bidding

Which of the following is not exempt from the Do Not Call Registry?

Businesses seeking commercial contracts.

Burt has gone to a commercial bank to negotiate a loan for the LLC in which he is a member. He tells the bank that he is authorized to act on behalf of and to bind the company. What is the best way for the bank to verify whether Burt does in fact have the authority he claims?

Check the articles of organization.

Which of the following is not impermissible collector contact under the Fair Debt Collection Practice Act?

Contacting the debtor once the debtor has asked the creditor not to call.

__________ are regulations that set out the average miles-per-gallon requirements for vehicles.

Corporate Average Fuel Economy standards

Space X filed its articles of incorporation in Delaware, but its principal place of business is in Texas. In which state is Space X a domestic corporation?

Delaware

A venture capital firm is a group of professional investors using private equity to

Develop a business

Pass-through taxation avoids __________ that corporations face.

Double taxation

All of the following terms are used to indicate where one company splits into two except

Duplication

All of the following are fiduciary duties of partners to the partnership except

Duty of wisdom

What profession(s) is/are subject to various state licensing regulations?

Electricians, Massage Therapists, Doctors of, Oriental Medicine All of the choices are correct.

__________ is traditionally invoked using a condemnation proceeding.

Eminent domain

Which of the following is not presented in the textbook as a purpose of environmental protection statutes?

Ensure that businesses have no impact on the environment.

One of the most important aspects of New Deal legislation was the enactment of various employment laws, one of which was the __________.

Fair Labor Standards Act

Which agency has oversight over making expressly false statements in an advertisement about a product's quality, ingredients, or effectiveness?

Federal Trade Commission

A responsibility to act in the best interests of a partnership by the partners is call a(n)

Fiduciary duty

Which of the following is not an example of a trademark lost, or in danger of losing protection, due to its becoming a generic term?

Ford

The amendment that guarantees no unreasonable searches and seizures is

Fourth Amendment

A __________ partner may withdraw at any time without causing dissolution of the partnership.

General

What agency created a three-prong test to determine an agent's status?

IRS

Rocky and Paulie enter into a professional boxing partnership. Paulie, not being a very bright man, makes all partnership decisions by flipping a coin. Which of the following statements is correct?

If the court determines that Paulie's actions were grossly negligent, then he will have breached his duty of care.

When an LLC is insolvent any distribution of money made will be called

Improper distribution

Limited partnerships are required to file a(n) __________ return with the IRS each year.

Information

For sites listed on the National Priorities List, government authorities then investigate the site's chain of ownership to determine any principally responsible parties (PRPs) and assess cleanup alternatives.

National Priorities List

Matt and Mindy wish to incorporate their business but want to limit who can buy ownership interests in their business. Which type of corporation would you suggest?

Privately held corporation

What is the name of the first piece of legislation enacted in response to protect consumers?

Product Liability and Safety Reform Act.

After the ULLCA was created, some states have started to adopt an act that modifies it called

Revised Uniform Limited Liability Company Act

__________ states have extended protection of at-will employees beyond the traditional statutory protection provided by antidiscrimination and false claims laws.

Some

In the case, Unitrin v. American General Corp., the court determined

The board's actions were reasonable and proportionate responses to the potential takeover.

If the court determines that a de facto merger occurred,

The merged company will still incur the preexisting debts and liabilities.

Which of the following is NOT a right enjoyed by shareholders of a corporation?

The right to elect and remove officers.

An ex post facto law is

a law that criminalizes an act that occurred before the law was enacted.

A charitable remainder trust is used to reduce income and capital gains taxes while increasing the trustor's immediate cash flow. Some of the benefits for the trustor of this type include:

a lifetime of income from the trust assets during his/her life or a specified number of years

There is a large body of __________ law that regulates credit transactions.

administrative

Which of the following is not a protected class under the original Civil Rights Act of 1964?

age

With regard to negligent hiring, courts would require the least amount of scrutiny regarding

an office worker.

Voting rights of LLC principals are governed by

the operating agreement.

An agency relationship is terminated by expiration in all of the following situations except when

the principal dies.

One who commits a tort is called the

tortfeasor

The estate tax is one part of the __________ and estate tax system in the United States.

unified gift

Under the Health Care and Education Reconciliation Act, employers offering high-end health care policies in 2018 will be required to pay additional taxes to help fund the Act's plan. A high-end health care policy is defined as one costing more than

$27,500per year

Section __________ of the Exchange Act requires public companies to file regular reports with the SEC in order to maintain their registration and to provide the public with ongoing disclosures via annual, quarterly, and special reports.

13

McDonald has invented a machine that harvests corn in the field, automatically shucks the corn from the husk, and peels the kernels from the cob, separating everything for easy disposal or further use. Assuming that all requirements are met for a patent, the length of his patent protection will be

14 years from the filing of the application with the U.S. Patent and Trade Office

Kylo has fulfilled his residential lease and has moved out of his apartment. The landlord may hold Kylo's security deposit for between __________, depending on the state

15 and 45 days

The National Environmental Policy Act (NEPA) of __________ established a process that must be followed by federal agencies when they are making decisions that may reasonably impact the environment or when Congress passes a law that requires federal funding.

1969

The Industrial Revolution is described as the time period during the __________ centuries that saw great advances in science and technology

19th and 20th

A utility or business method patent will last for

20 years from the date of the filing of the application with the U.S. Patent and Trademark Office.

Once the union organizers obtain authorization cards from at least __________ of the members of a bargaining unit, an election will be scheduled by the National Labor Relations Board.

30 percent

According to the National Whistleblower Center, approximately __________ percent of the money recovered under the False Claims Act over the past decade was from cases brought by employees of contractor firms.

70

An enterprise may not be a Subchapter S corporation if it owns more than __________ of the stock of a subsidiary corporation.

80 percent

In the case, Kirksey v. Grohmann, because the members could no longer communicate regarding the LLC except through legal counsel, and faced deadlock, the court ordered

A forced dissolution

Which of the following is a neutral requirement that is likely to result in disparate impact?

A physical-strength test must be passed.

When one company takes over a target company by stepping into the shoes of the target causing it to disappear by operation of law is a(n)

Acquisition

Brock has inherited a small home in Wyoming from his deceased uncle Gabriel. Brock has no desire to live in Wyoming, but he enjoys going up to his Wyoming property to fish for two weeks every fall and spring. Gabriel's lawyer has agreed to have the home secured when Brock leaves and to have it opened when he's planning to visit. Gabriel's lawyer, without asking or informing Brock, has suggested to his freeloading brother Alex and Alex's wife, Jana, that they stay at Brock's Wyoming place and simply vacate just before Brock shows up, which they do. They live there acting like the owners for 48 weeks every year. The statutory period for adverse possession in Wyoming is 10 years. After 12 years Alex and Jana file for ownership under Wyoming's adverse possession statute. Will Alex and Jana likely be successful?

Alex and Jana will not be successful because their control of the property was not exclusive or continuous.

An agent's power to bind a principal in contract is derived from the agent's authority, which may arise from __________ authority.

All of the choices are correct.

Which of the following scenarios would most likely result in strict liability?

Amos buys a bag of Chips Ahoy chocolate-chip cookies and breaks a tooth when he bites into one that contains a small rock that looks like a chip.

Which of the following would not be considered a real estate fixture?

An area rug laid out in the living room with double-sided tape to keep it in place.

In 2006, Martin purchased a home in a residential development, and in 2010 he sold it in fee simple to Rocco. A week after Rocco moved in, the local cable company came to his door to inform him that it would start digging up his yard to install underground cable for the neighborhood. When Rocco objected, he was told that the company had a right to do it and he should check with his lawyer. A call to the lawyer confirmed the right of the cable company to enter his land and dig. Which of the following would have given the cable company this right?

An easement by grant.

Boris, Carina, and Theo have decided to go into business as a limited partnership importing and selling exotic spices. Boris and Carina will manage the business, and Theo will have no role in the day-to-day operations. Boris and Carina have each invested $500,000, and Theo has contributed the building and land that the business will be operated from. Alina, a customer, contracts a rare disease from a contaminated spice sold by the company and sues. Alina is awarded a judgment for $5 million. After she exhausts the assets of the partnership, having the property and building sold, and seizing all other property, $3 million remains unpaid.

Boris and Carina each owe $3 million jointly and severally, so Alina may sue one or both of them; Theo has no additional liability.

Brenda is the CEO of a large corporation. While presenting a proposal to a commercial bank for a corporate loan, she offered the bank's commercial loan manager a $10,000 "gift" for favorable treatment. Is Brenda guilty of bribery?

Brenda is guilty of bribery whether the manager accepts or not because the offer constitutes the crime

CJ and Danny have incorporated and obtained a $100,000 loan in their corporate name. The loan is payable with interest over five years. After paying on the loan regularly for two years, the business falters due to the economy, and CJ and Danny default on the loan. Their business has no assets. Which of the following statements best describes CJ and Danny's liability in this case?

CJ and Danny have no personal liability for the debt unless they pledged personal assets as collateral or signed a personal guarantee.

Carter is a brand representative at an exclusive shopping store that requires male brand representatives to have long hair. After a 90-day evaluation with his boss, it is clear that Carter has refused to stop cutting his hair in accordance with the standards. He is fired on the spot. Which of the following is true?

Carter has no claim under Title VII because of the protected class requirement.

__________ occurs when an agent agrees to act for the principal.

Consent

Employers must provide continuing health care coverage to any employee, for a fee, even if terminated, under the

Consolidated Omnibus Budget Reconciliation Act.

The liability protection shareholders, directors, and officers of a corporation have from personal liability in case the corporation runs up large debts or suffers some liability is called

Corporate veil

In a share purchase agreement the following statement was included, "Both parties agree to operate with the utmost professionalism, integrity and good character in all corporate transaction such that it instills confidence and respect for the process and the result." This is an example of a(n)

Covenant

To which of the following would a dram shop law apply?

Curley's Tavern

Frank wants to leave his partnership and wants to stop being a principal. What is this process called?

Dissociation

One of the largest fines ever levied by the FDA was against Odwalla Juice Company in the 1990s, when Odwalla was accused of producing a bad batch of apple juice using blemished fruit contaminated with the infectious __________ bacterium.

E. coli

How are the Clean Air Act's tailpipe emission standards set?

Each state may choose between the federal and California standards.

What, if any, federal statute(s) give specific anti-retaliation protections for employees who disclose conduct that violates that law?

Fair Labor Standards Act, Sarbanes-Oxley Act All of the choices are correct

What main reporting system has become a resource for traffic safety research?

Fatality Analysis Reporting System

In Metro-Goldwyn-Mayer Studios v. Grokster, Ltd., Grokster claimed a fair use exception to the copyright infringement claim because its process was such that it was impossible for Grokster to know if the users of its device were infringing or not. Which of the following was the outcome?

Grokster was denied the fair use exception because the majority of its business model was dedicated to appealing to former Napster customers and the model showed intent to infringe on copyrights.

The Happy Days Day Care is hiring a child care worker. On the employment application, Happy Days specifically asks if the applicant has ever been arrested. Tina applies for a job at Happy Days and answers no to that question. She also answers no to the question that asks if there is any reason that she would not be qualified to work with children. Soon after Tina is hired, she severely shakes a baby to stop it from crying, causing the baby injuries. It is discovered at trial that Tina has been fired from numerous day cares for baby shaking and various other offenses. If the baby's parents sue Happy Days:

Happy Days is liable for negligent hiring.

The Food and Drug Administration (FDA) is a federal agency of the United States Department of __________, one of the many cabinet-level executive departments of the federal government

Health and Human Services

Which of the following inclusions in an employment advertisement would likely not be considered discriminatory?

High school graduation required.

A transaction in which the board of a target company has no prior knowledge of an acquirer's purchase offer is called a

Hostile takeover

In AK-Feel, LLC v. NHAOCG, the court determined

In order to eliminate the fiduciary duties of the managing members the language of the operating agreement must be clear and unambiguous.

Termination rights in an asset purchase agreement ma

Include fees and the payment of damages caused by certain events.

In a merger agreement it states, "the board of both parties will be held harmless for the losses incurred as a result of a breach of its contractual obligations in the purchase agreement" is called

Indemnification clause

Chaplan Corporation is a privately held corporation that wishes to offer ownership interests to the general public and commercial investors in order to generate more capital. This process is called

Initial public offerings

Which of the following is not true of strict liability?

Injury need not occur or be proved.

In the case, Paramount v. Q.V.C. Network, the court

Issued an order stopping the Viacom-Paramount merger.

What is an advantage of a Subchapter S corporation that a standard corporation does not have?

It does not face double taxation.

Professor Smith has placed an ad in the school newspaper advertising a laptop computer for sale. Jasmine is in Professor Smith's economics class and approaches Smith during office hours and purchases the computer. Professor Smith has been at the school for over 10 years and is popular with students and faculty. The price Jasmine pays is just a bit below the fair market value of the computer. Six months later, the police come to Jasmine's home and inform her that the computer was stolen.

Jasmine will lose the computer because she cannot obtain good title to stolen goods.

Personal financial contributions may be required by previous agreement with regard to

LLPs.

The following act was passed specifically to monitor and prevent corruption in major trade unions:

Labor-Management Reporting and Disclosure Act

Frances wants to start a new small business and is seeking advice as to which type of entity would best suit his needs. His business has a high potential for liability and therefore he wants to protect his personal assets, but he does not want to spend a lot of time, effort or money in starting the business up or continuing the management of it. Additionally, he is looking for an entity that would give him the best tax advantages. Which type of business organization would suggest?

Limited liability company

Lindsay is Jon's manager and calls him into her office after everyone else has gone home for the day. She closes the door and tells Jon that he is a thief and that he must return items that he stole from the company. In fact, Jon is extremely honest and has never stolen anything in his life. He is extremely upset and starts to feel sick.

Lindsay has not committed a defamation tort.

LLC laws define dissolution of an LLC as a __________ process.

Liquidation

Franco and Jesse are operating as a general partnership. A question has arisen that is not covered under their partnership agreement nor addressed by the Revised Uniform Partnership Act. What will the courts do to resolve the situation?

Look to common law.

Similar to the board of directors in a corporation, an LLC may have

Managing members

An owner of an LLC is called a

Member

Dorothy Inc. purchases the assets of Glenda Inc. to gain control of the company. Dorothy retains the same governing board at Glenda and keeps the company's name, Glenda. These actions may trigger what exception to the general rule that no successor liability exists in an asset transfer?

Mere continuation exception

Criminal law is based on state and federal laws that started as common law crimes but were codified into statutes based on the __________

Model Penal Code

The Clean Air Act authorized the EPA to establish the __________.

National Ambient Air Quality Standards

__________ is the legislation that established a process for federal agencies for making decisions that may reasonably affect the environment.

National Environmental Policy Act

Martina and Dryson have applied for teaching positions in your school's accounting department. Martina is a recent graduate with her PhD in accounting and one published paper. She has no teaching experience except for classes taught as a teaching assistant during her PhD program. Dryson also has a PhD in accounting and has been teaching for five years at a major university. He has eight published papers. Both are hired as tenure track assistant professors and assigned two 101 courses and one 102 course. When Martina later discovers that Dryson's salary is $10,000 higher than hers, she is furious and files suit under the Equal Pay Act. Will she be successful?

No, Martina does not have a valid cause of action because Dryson is being paid a different salary based on factors other than sex.

Carl Critic has just announced his choices of the worst Hollywood actresses of the year, and Stella Starr has been named the worst of the worst. Carl's announcement, made in his weekly column titled "Random Musings by Carl Critic" and published in the local paper, claims that he believes her to have the least amount of talent in the movie industry and that she "can't act her way out of a paper bag." When Stella reads Carl's column, she immediately starts to cry hysterically and then decides to sue him. Does she have a valid case of libel?

No, this was merely Carl's opinion.

Unsafe workplace conditions are monitored and regulated under

OSHA

Which group of a corporation is responsible for running the day to day matters of the corporation?

Officers

A pledge from LLC members of personal assets to guarantee pa

Personal guarantee

Which of the following is not a class of principally responsible parties (PRPs) under Superfund?

Previous owners.

Which of the following is a valid bailment?

Putting your neighbor's car in your garage to shield it from a hail storm.

Which of the following is a true statement?

Ratification applies to previously unauthorized acts.

All of the following are methods a corporation can capitalize except

Require the shareholder to invest more money to keep their shares.

What law is intended to regulate active and future facilities that produce solid waste and/or hazardous materials, and it created a "cradle-to-grave" procedure for handling waste?

Resource Conservation and Recovery Act (RCRA).

All of the board members of Bruint Hockey Corporation despise the board members of the Bluet Hockey Corp. because of the Bluet's recent defeat of the Bruint Hockey team in the national championship series. The Bluet Hockey Corp. approaches Bruint to discuss an acquisition of their company. What advice would be the best to give to the Bruint Hockey Corporation board so that they may honor their fiduciary duties?

Seek the advice and counsel of third parties such as attorneys, investment bankers and valuation experts before deciding whether to approve the proposed acquisition.

All of the following listed below are methods for capitalizing LLCs except

Selling share of stock.

Which of the following is least likely to be considered a mitigating circumstance?

Sex

Al and Tom are co-owners of "A & T Auto Repairs." The both consider themselves managers and the split the decision-making and profits 50/50, yet they do not have any formal paperwork stating that they are a partnership. Which of the following statements is true?

Since their actions show they conduct themselves as a partnership, the law will consider them an implied partnership.

Disability benefits are provided to eligible workers pursuant to the

Social Security Act

A __________ requires each state to develop a collection of regulations that will help it achieve a reduction in each pollutant to below the maximum level set in the NAAQS.

State Implementation Plan

Limited liability partnerships are formed when a general partnership files a __________.

Statement of qualification

Which of the following is not one of the FDA's powers?

Stepping in and closing a business.

The Board of Layne Corporation recently stated that under no circumstances would it allow Gwen Corporation to take-over its corporation. The problem is that the Board only owns five percent of the shares. Therefore, Gwen Corporation contacts all of the other shareholders and offers to purchase their shares of stock. What is this process called?

Stock purchase

__________ is an accidental (without willful intent) event that causes harm to another party

Strict liability

Which of the following is an incorrect statement regarding Subchapter S corporations?

Subchapter S corporations may be domestic or foreign, but they cannot be alien.

In Waddell v. Rustin, the court determined

That no implied partnership existed as that the prosperity of the business was not due to the equal contribution of the two parties.

Which entity wrote the Revised Model Business Corporation Act (RMBCA)?

The American Law Institute

Which of the following is a service mark?

The Geek Squad at Best Buy

ABC LLC's operating agreement is silent on several important issues involving management structure and organization. Therefore, what will the effect of these gaps be?

The LLC statute of the state in which it is organized will apply its default rules.

Which body of a corporation has the duty to appoint and to remove the corporation's officers?

The board of directors

Kim, a CPA, works for a small accounting firm consisting of two managing partners, six accountants, and four secretaries. During a skiing vacation, Kim has a serious fall and is paralyzed from the waist down. While she cannot walk, her mind is not affected and she is 100 percent capable of performing her accounting duties. She has asked the firm to widen the aisles between cubicles so that she can maneuver her wheelchair and to provide a special desk that is wheelchair friendly. These accommodations would cost less than $1,000.

The company is not required to make or offer any accommodations to Kim.

Cyndy, Shelby, Kennedy and Kristin formed Double Dawn Paddle Board Yoga LLC as a manager-managed LLC naming Kennedy as the managing member. A local yogurt entrepreneur approaches Shelby offering to be the exclusive provider of pink yogurt for their company to give out after their yoga sessions. Loving pink yogurt, Shelby signs a 10 year contract whereby only their pink yogurt will be provided for their company. When Cyndy, Kennedy and Kristin find out what Shelby has done, they are furious and do not want to be bound by the 10 year contract Shelby signed as they all prefer blue yogurt. What most likely will be the outcome of this scenario?

The contract will not bind the LLC since Shelby did not have the authority to enter into a contract that binds the LLC.

Sam is a promoter acting on behalf of a corporation that has not yet been fully incorporated. Under the Revised Model Business Corporation Act, if Sam acts on behalf of the yet-to-be-formed corporation, who is liable in the event of a breach of contract?

The corporation becomes liable once formed, and Sam will be shielded from liability.

Which of the following is not regulated through the Transport and Air Quality Program?

The distance that semitrucks may travel in one day.

Mike has written a novel. When, if ever, would Mike's novel be copyright protected?

The novel is copyrighted automatically after completion.

If a person dies without a will, what happens to his/her property?

The property passes in accordance to the intestate statute of the decedent's state of domicile

Which of the following statements is false with regard to the 2008 discovery of Bernard Madoff's Ponzi scheme?

The scheme lasted over 20 years and cost his clients billions of dollars.

Who is typically empowered by the states to protect consumers from deceptive trade practices?

The state attorney general

In Samson v. Federal Express Corporation, Samson sued Federal Express under the ADA, claiming his job offer as a technician was withdrawn solely because he had failed his DOT medical examination because he had diabetes - a disqualifier for operating a motor vehicle in interstate commerce. What was the appellate court's ruling?

The trial court's ruling in favor of the employer was reversed because there was a genuine issue of fact as to whether test-driving was truly "essential" to the job of technician and remanded the case to a jury trial.

All of the following statements about a hostile takeover are true except

There must be some preexisting animosity between the competing boards.

Jennifer and Angela are both broke. They have sold most of their possessions, and neither can find a job. One evening they decide to rob a bank. They agree that Jennifer will enter the bank pretending to have a bomb strapped to her chest and Angela will drive the getaway car. The next morning they drive to the bank, and while they are waiting for it to open, they see a church next door. Hoping for divine help while committing the robbery, they step into the church to pray. Suddenly realizing the error of their ways, they abandon their plans and sign up to become nuns.

They are guilty of conspiracy

__________ states and the District of Columbia have created statutes that provide an incentive to report fraud involving state-funded programs.

Thirty

What federal statute gives the EPA broad jurisdiction to control risks that may be posed by the manufacture, processing, use, and disposal of chemical compounds?

Toxic Substances Control Act (TSCA)

Which act regulates the leasing relationship in which the consumer has possession of a motor vehicle in exchange for monthly payments?

Truth in Lending Act

In 2017, when AT&T proposed a $85 billion merger with Time Warner, who challenged this deal in court?

U.S. Department of Justice

What company agreed to settle a class action lawsuit by paying approximately $100 million to roughly 385,000 drivers where drivers were claiming that they were actually employees under the California Labor Code and they should receive worker protections and benefits under California law?

Uber

Sonya and Davi are going to open a sporting goods store. They sign a written limited partnership agreement naming Davi as a limited partner and Sonya as the general partner. Sonya files a certificate of limited partnership with the state. Sonya contributes $100,000 toward the start-up, while Davi contributes $200,000. They agree to split profits evenly because Sonya will be working in the store and operating the day-to-day business. About a month after they open, the business is not doing well, so Davi starts becoming more involved. Soon he is requiring that Sonya approve all purchases with him, and Davi is actively directing Jack, the sole employee. One day, Geoff, a customer, is injured when a bowling ball falls off a shelf and shatters his foot. Geoff sues and is awarded a judgment of $1 million.

Under the circumstances, Sonya and Davi are both jointly and severally liable for the full $1 million.

The Uniform Probate Code is a comprehensive model act governing inheritance and decedents' estates, while the __________ is a comprehensive model act governing the creation of trusts.

Uniform Trust Code

Viro and Winona are both tenured associate professors in a school's English Department. Winona is constantly asking Viro out on dates, which he always refuses. He has asked her to stop. Furthermore, Winona is always making provocative comments to him, telling dirty jokes, and asking him about his preferences in women, which embarrasses him and has caused him to lose

Viro would win if he had previously complained to the school and it had done nothing to stop the harassment.

Which of the following is not a factor considered when classifying an employee as covered or exempt?

Whether the employee uses the employer's tools or his or her own.

In order to determine if a de facto merger occurred the courts will consider all of the following factors except:

Whether the reasonable person would have determined that a merger occurred.

In evaluating corporate transactions, the board has all of the following fiduciary duties except the duty of

Wisdom

Which of the following is not a potential remedy available to a tenant should a serious dispute arise with the landlord?

Withhold rent and remain on the premises until the dispute is resolved.

Affirmative action in employment began during __________ when President Franklin D. Roosevelt issued an executive order banning racial, religious, and gender discrimination in the defense industry

World War II

LLCs were originally created by the

Wyoming legislature.

Travon has agreed to lease a home from Helena on a month-to-month basis. The lease is

a periodic tenancy.

Some Uniform Trust Code provisions provide against attack by family members and address which of the following concerns:

a person contesting the validity of a trust at any time will be removed as a trust beneficiary.

In an undisclosed agency relationship, the __________ is fully liable to perform the contract

agent

One who agrees to act and is authorized to act on behalf of another, a principal, to legally bind the principal in particular business transactions with third parties pursuant to an agency relationship is the __________.

agent

Principals often create agency relationships to give __________ the power to enter into contracts with third parties that are legally binding on the principal.

agents

The National Highway Traffic Safety Administration is __________ of the U.S. Department of Transportation

an agency

The National Park Service is considering expanding one of its ranger stations at Yellowstone National Park. The ranger station is located on the side of a mountain and is primarily used for tracking animal populations. The National Park is unsure what the expansion would do to the environment. Before it is able to start construction, the National Park must categorize the expansion under the NEPA as

an environmental assessment.

Suppose that Aubrey, an at-will employee at Costco, injures her arm on the job. Costco's manager tells Aubrey that the company frowns on employees who file claims under the workers' compensation law. Aubrey files the claim and is fired one week later without being given a reason. Under what theory(ies) would Aubrey be able to sue Costco for illegal termination?

an existing statute, the state constitution, previously established policy All of the choices are correct.

Sanchez borrowed money from Fifth National Bank to buy a car. She defaulted on the loan. Fifth National hired Rex's Recovery Service to repossess the car for a set fee. Rex's was simply told to locate and seize the car. Rex's would be classified as

an independent contractor

If a principal wants to keep her identity secret, she would use

an undisclosed agency.

If the decedent owned property in other states, a separate, __________ probate might have to be opened-and a personal representative appointed—in each of those states.

ancillary

Courts __________ any of the Restatements, but they do recognize them as widely applied principles of law.

are not bound by

The document filed with the state that begins the incorporation process in most states is called the

articles of incorporation.

Formation of an LLC requires the filing of

articles of organization.

A person attempting to determine the law in a specific state should check the code __________ in that jurisdiction and not rely on the text of the UPC.

as adopted

Roger is a limited partner in a business. To retain his limited liability protection, he must not

assume management responsibilities.

When an injured party knows that a substantial and apparent risk is associated with certain conduct, and the party goes ahead with the dangerous activity anyway, the Restatements allow the tortfeasor to assert the defense of:

assumption of the risk

An __________ agent who enters into a contract with a third party binds the principal because the third party may legally enforce the contract against the principal

authorized

Jan is on trial for arson. For Jan to be found guilty, her guilt must be proved

beyond a reasonable doubt

The __________ of a trial is where the court splits the trial into two parts so as to render a judgment on a set of legal issues

bifurcation

A gratuitous agent

breaches the duty of care when grossly negligent.

Under the Pennsylvania Whistleblower Act, the __________ shifted from McQueary to Penn State to prove that the termination was for "separate and legitimate reasons" from any whistleblowing activity.

burden

To obtain a license, one typically must apply in the office of __________ of any state in which the work will be performed

business regulation

The Environmental Defense Fund, an environmental watchdog group, files a lawsuit to prevent future open-pit coal mining in West Virginia. This type of lawsuit is known as a

citizen suit.

Courts look to state __________ law and statutes for guidance in determining independent contractor status

common

This defense requires a jury to divide up the proportion of negligence committed by the parties in terms of percentage:

comparative negligence

Congress provided clarification by amending the FLSA with the Portal-to-Portal Act to provide guidelines regarding what constitutes __________ work.

compensable

__________ damages could be in the form of back pay for the aggrieved employee.

compensatory

At large companies, part of the management team may include __________ assigned to coordinate monitoring and ensure that employees are following all company e-mail and Internet policies.

compliance officers

The act of taking away private property by the government is called

condemnation

The Truth in Lending Act applies to credit extensions made to

consumers

As agents, they may under certain circumstances create liability to the principal in __________ and tort.

contract

One major exception to the employment-at-will rule is when an employee has an express __________ relationship with the employer that is intended to displace the employment-at-will rule.

contractual

The ADA was originally passed in 1990, but it was amended in 2008 in order to settle some of the more __________ interpretations by courts related to the definition of a disability.

controversial

The No Electronic Theft Act primarily addressed protection regarding

copyrights

Which of the following is intellectual or intangible property?

copyrights and patents

Although many LLCs are treated as pass-through entities, an LLC's members may elect to be taxed as a

corporation

In Palmer v. Champion Mortgage, Palmer received a debt-consolidation loan from Champion. When she signed the loan agreement, she also received the required TILA disclosures. Several days later Palmer received copies of the documents and a notice of her right to cancel under TILA, which permitted her to cancel within three business days of three different dates stated in the document. Over a year later, Palmer filed to cancel the transaction, claiming that the time frames given to her in the TILA disclosures were too confusing. The court held that Palmer

could not cancel her loan because the TILA disclosures would not confuse an objectively reasonable consumer.

The probate process is supposed to protect the rights of __________.

creditors

Criminal procedure refers to the legal process and safeguards afforded to individuals (and in some cases business entities) during __________.

criminal investigations, arrests, trials All of the choices are correct

Which of the following is not a general category of torts?

criminal torts

In Diaz v. Pan Am World Airways, Inc., the plaintiff was denied a job as a flight attendant because the airline had a policy of hiring only women as flight attendants. The court held that

customer preference did not make gender a bona fide qualification for the position.

Strict liability is recognized in the Restatements for:

defective products

Which of the following is not eligible for immediate trademark protection?

descriptive trademarks

Clyde has been hired to deliver a truckload of hogs to a cross-state slaughterhouse. On the way there he stops to visit his girlfriend Samantha, who lives five minutes off his prescribed route. He spends five minutes with her. During those five minutes he is considered to be on a/an __________.

detour

Your school's police/security force requires that all officers be over 6 feet and over 200 pounds. This requirement creates

disparate impact regarding women

Gwendolyn points a gun at Jim and threatens to kill him if he doesn't steal his neighbor's car. If Jim complies and is caught, he may use the following defense:

duress

What is the concept called when a decedent has not left a will?

dying intestate

An easement written in a deed is called an

easement by grant

Although it may vary due to the nature of the case, generally a delay of more than __________ is presumptively an unconstitutional violation of a defendant's right to a speedy trial

eight months

The authority of the government to take away private property for the public good or for public use is called

eminent domain.

A manual or bulletin that is drafted and distributed by the employer may give rise to an implied contract theory if the manual extends some protections or process to the employee that she would not have under the __________

employment-at-will doctrine

More often than not, the parties in an agency relationship will have agreed to a fixed term for the representation. In that case, the agency relationship may be terminated by __________.

expiration

Tom has been injured on the job, so his employer hires Harry to fill in for him. The agreement with Harry is that he will work until Tom is ready to return. When Tom is indeed ready to return, Harry's position is terminated by an express act defined as __________.

expiration

A standard that is applied to all employees or candidates for employment equally but nevertheless is shown to be discriminatory is called a __________ standard.

facially neutral

Juries decide:

facts

Creden has left 50 acres of land to the First Church of Magnolia with the condition that it shall own and have rights to it forever; however, if the church ever permits alcohol to be served on the premises, the property will immediately go back to Creden or, if Creden is deceased, to his heirs. Creden has granted the church a:

fee simple defeasible.

Agency is described as a __________ relationship that results when a principal manifests consent to an agent to act on the principal's behalf subject to the principal's control.

fiduciary

Because it is not a taxable entity, an LLP

files an information tax return.

The estate for an individual includes

financial investments, real property, personal property All of the choices are correct

A trademark can be any of the following except a

formula

When the third party entering into the contract is aware of the principal's identity and knows that the agent is acting on behalf of the principal in the transaction, then the agency relationship is a/an __________ agency.

fully disclosed

Many courts have adopted the __________ rule whereby employers are generally not liable for tortious acts committed by employees while on their way to and from work.

going-and-coming

The covenant of __________ and fair dealing, adopted by a minority of states, represents a significantly different approach to the traditional notions of an employment-at-will relationship.

good faith

Chester is renting an apartment, and he has a problem. All night he hears the scurrying of rodents, and each morning he finds cereal boxes and other cardboard food containers gnawed. He has also noticed droppings all over the apartment, including in the children's nursery. He has complained to the landlord, who simply replies, "Hey, this is center city—everybody has a rat problem." The landlord is breaching Chester's right to

habitability.

Under the exclusionary rule

illegally obtained evidence may not be introduced at trial.

The leading justification for freedom of disposition has to do with __________

incentives

The main difference between an estate tax and a/an __________ tax is who pays the tax.

inheritance

False imprisonment is a/an __________ tort unless the tortfeasor is a merchant who temporarily and reasonably detains a suspected thief

intentional

The Fair Labor Standards Act was originally intended to cover employers engaged in

interstate commerce only.

Chelsea's house is for sale, and she is selling it through a real estate agent. The house is listed, and any licensed agent may show the house by using the special accessible key in a lockbox on the front porch. Stan is a licensed agent and brings Paula into the home to show it for a possible sale while Chelsea is not home. Stan and Paula would be considered

invitees

The FMLA affords employees certain protections related to __________.

job security

A principal may face __________ liability for an agent's tort, most commonly the tort of negligence, even though the principal has not engaged in any wrongful conduct.

joint-and-several

Perhaps the broadest defense to employment discrimination is when a business can justify discrimination on the basis that it is __________ necessary to the business operations of the company.

legitimately

Marvin is driving when he has an accident. Robin, who is driving behind him, sees the accident and stops to help. She pulls Marvin from the burning car and administers CPR, saving his life. Marvin is a wealthy landowner and wants to reward Robin, so he gives her a home with the understanding that when she dies, the home will go back to Marvin or, if Marvin is deceased, to Marvin's heirs. Marvin has granted Robin a

life estate.

An employee's right to privacy in the workplace is very __________.

limited

Environmental laws must be thought of as having broad coverage, and understanding environmental law is important in __________.

limiting a company's liability, ensuring regulatory compliance, proactive business planning All of these choices are correct

A __________ of states have a statutory equal dignity rule that sets out formalities for certain principal-agent transactions.

majority

An important feature of many federal environmental laws is that state governments are often __________ to work in conjunction with the EPA when implementing and enforcing federal environmental statutes.

mandated

The Digital Millennium Copyright Act provided each of the following protections except

manufacturers of CD-writers were required to pay 2 percent of their sales into a fund to be distributed to copyright holders because the CD-writers could easily copy music and other copyrighted works.

The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act of 2003 regulates the sending of unsolicited e-mail (spam) by prohibiting certain online __________ practices, including falsifying the "from" name and information in the subject line, and mandating that senders provide a physical address of the producer of the e-mail.

marketing

The nonagent employee relationship is sometimes referred to as the

master-servant relationship

If the employee's negligent __________ results in harm only to emotional state, reputation, or a purely economic loss, respondeat superior does apply.

misconduct

A commercial airliner crashed in the middle of the Atlantic. The cause of the crash has been proved to be a wrongly installed part in one of the engines during routine maintenance. If a negligence lawsuit is brought against the airline, it will be based on

misfeasance

A traditional defense to products liability may include:

misuse of product

All computer use ordinarily is subject to employer monitoring, including the employer has the right to do all of the following except:

never limit the amount of time an employee may spend at a specific website.

The Consumer Financial Protection Bureau (CFPB), one of the __________ federal regulatory agencies to be created by Congress, is empowered to monitor and regulate consumer financial markets, including consumer loans and credit cards

newest

A corporation formed to maintain a charitable operation is called a

nonprofit corporation

As a minimum, procedural due process requires notice:

notice and an opportunity to be heard

In an LLP, any income is taxed

only when distributed to its partners.

If the third party knows that the agent is representing a principal but does not know the actual identity of the principal, the agency relationship is a/an __________ agency.

partially disclosed

An agency transaction ends when the agency is terminated by the __________.

parties

In Goodrich Corp. v. Town of Middlebury, there were two public landfills that were designated as Superfund sites. The principally responsible parties formed a coalition to sue several municipalities for assistance in cleanup costs. During the litigation, a special master was appointed to determine which parties contributed waste and how much each contributed. When the case went to trial, the district court chose not to follow the determinations of the special master; instead, the court itself determined the liability of the municipalities. The decision was appealed. The appellate court determined that disregarding the special master's determination of liability was

permissible for the district court because it was within its rights to determine that the municipalities were more liable than the special master had determined.

When a person dies, someone, usually a family member, may petition a court in the decedent's state of domicile to appoint a __________ to protect and distribute the property in the decedent's estate.

personal representative

The Revised Uniform Partnership Act mandates that with regard to partnership debts and liabilities, general partners are

personally jointly and severally liable for unpaid debts and liabilities.

Who(m) may be excluded from a prohibition on mandatory retirement policies?

pilots, federal law enforcement officers, fire fighters All of the choices are correct.

The parties must have an understanding that the __________ is in control of the agency relationship.

principal

One of the reasons agency is such a useful legal concept is because it allows businesses as __________ to grow and transfer authority to agents within the organization's chain of command.

principals

When you die, whether or not you leave a will your estate will go through a process called __________

probate

In a products liability case, the plaintiff may pursue legal remedies against the seller under any of the following categories except

product disparagement.

In a general partnership

profits and losses may be unequally split based on the partnership agreement.

The point at which liability for negligence stops is called

proximate cause

The most widely used exception that displaces the employment-at-will rule recognizes that allowing employers to terminate an employee for certain reasons may contradict __________.

public policy

A capital crime is one:

punishable by death or imprisonment

Intellectual property is an umbrella term for the legal property rights except:

real property

An employment-at-will relationship may be converted to a contract relationship if the employer acted in a manner that would lead a __________ person to believe that the employer intended to offer an employee protection from termination without cause.

reasonable

The duties of a tenant are to pay the rent and to act __________ in his care and use of the property.

reasonably

The False Claims Act allows the reporting party to file a lawsuit against the organization that is accused of the fraud and to __________

receive a portion of any monetary recovery

A company that files a __________ statement under the Securities Act of 1933 becomes a reporting company subject to the Exchange Act once the registration company becomes effective.

registration

The Toxic Substances Control Act has both reporting and __________ components.

regulatory

When the agent initiates the termination, it is known as __________.

renunciation

States may not __________ the federal constitutional rights of individuals.

repeal

As the narrow interpretation of ADA solidified in federal courts, Congress passed an amendment to the ADA that effectively __________ the Supreme Court's efforts to read the disabilities category as a narrow class of ailments.

reversed

In McQueary v. The Pennsylvania State University, Pa. Ct. of Common Pleas, No. 2012-1804 (2016), the court

ruled in favor of McQueary

In Wurtz v. Beecher Metro District, 848 N.W.2d 121 (Mich. 2014), the court ruled:

ruled in favor of the District

The doctrine of respondeat superior is limited by a requirement that in order for a principal (employer) to be liable for the employee's tort, the act must have occurred within the employee's employment.

scope of

The adjudicative phase of the criminal justice process includes each of the following components except

setting bail.

Lindsay is a sprinter on the school's track team. If she is confronted by a man with a cast on his leg who is threatening her with a knife and she kills her assailant during a brief skirmish, claiming self-defense would most likely be a successful defense if

she is confronted in her home

Professor Patty is very distraught that three students in her class cannot afford to buy the 42- chapter book for the course. The book is used for two semesters, although not all students take the second semester. She finally tells the three students that she will make copies of the first 21 chapters for them, at no charge. Professor Patty makes the copies and gives each chapter to the students prior to her coverage of the relevant chapter in class. If Professor Patty is sued for copyright infringement

she loses because she is copying whole sections and a significant portion of the book.

The employment-at-will doctrine does not apply cases where (1) the employee has an express contract, (2) courts have fashioned a common law exception that protects the employee, or (3) __________.

some specific statutory protection against job termination

Lemon law protection arises under:

state law, District of Columbia All of the choices are correct

Trade secret protections are provided through

state statutes and common law

Courts apply the __________ analysis to determine the classification of an agent.

substance-over-form

Carlos is a member of an LLC along with three others. After one year, despite their best efforts, the business closes and the bank that extended them a loan sues for repayment. The bank may

sue the LLC but may not sue Carlos.

A CEO could be referred to as a/an __________ agent.

superior

In what court was the following case decided in: Jasper v. H. Nizam, Inc., 764 N.W.2d 751 (Iowa 2009)?

supreme

The knowledge that resides within employees is __________ knowledge.

tacit

Assume that you are a freshman and live in your school's dormitory. The agreement you've signed with the school states that you may move in on September 1 and must vacate the room by May 31 of the following year. Should you wish to live in the dormitory during your sophomore year, you must sign a completely new contract with the school. Your agreement with the school best approximates a

tenancy for years.

The FDA was empowered by Congress to enforce the Food, Drug, and Cosmetic Act to regulate the __________ of foods, medications (including over-the-counter medications and prescription drugs), medical devices, and cosmetics.

testing, manufacture, distribution all of the choices are correct.

Which of the following is least likely to be considered a common initiator of an environmental law citizen suits?

the American Civil Liberties Union

Agency law generally exists on the state statutory level and is based on:

the Restatement (Third) of Agency

In Smith v. Van Gorkom, the court considered whether the business judgment rule protected board members who permitted the sale of a significant amount of stock by the retiring chairman of the board at an undervalued price, devaluing the company. Regarding the board's liability in this case, the court stated each of the following except

the board in this case had the expertise to make decisions without consulting outside experts but made a poor decision.

An injured worker is not entitled to workers' compensation if the injury was intentionally self-inflicted or resulted from certain behavior except:

the employee's track record of attendance

Workers at Jones Corporation have been on strike for three months due to an impasse based on salary and benefits. When the strike is concluded,

the employer is not required to rehire the employees and the employees are not entitled to back pay.

Both Lloyd and Harry are claiming patent protection for the same invention that each independently created. The rights to protection will be awarded to

the first to file an application for the patent.

Under the term employment discrimination, what is/are considered workplace-related discrimination?

the hiring process only, treatment of employees and their work schedules, disciplinary action All of the choices are correct.

In Shapira v. Union National Bank, Ohio Court of Common Pleas, 315 N.E.2d 825 (1974), the court held that

the right to receive property by will is a creature of the law, and is not a natural right

A corporation comes into existence when

the state accepts the articles of incorporation and issues the charter.

Once the plaintiff has established a prima facie case under the McDonnell Douglas standard and the defendant has presented justification for the actions taken, the plaintiff must now prove any of the following except

the stated reasons contain a mixed motive.

Defamation is a false statement that is directed specifically at a party, company, or product; is aired to a __________ party; and results in pecuniary harm to the victim.

third

A trust is a __________-party fiduciary relationship.

three

Statutes that set out the ABC factors typically create a presumption that the agent is an employee unless __________ tests are satisfied.

three

The legal term for ownership rights in property is __________.

title

The purpose of the FTC in relation to consumers is

to prevent unfair or deceptive acts in commercial transactions.

The color or shape of an item, if distinctive, is

trade dress.

Which of the following is not a common law felony?

treason

Victims of odometer tampering may receive

triple damages

Which of the following is identified as an individual who has died with a will?

trustee, decedent, descendent None of the choices are correct

A person can be convicted of treason only by the testimony of __________ witnesses or by confession in open court

two

The National Conference of Commissioners on Uniform State Laws has drafted __________ uniform acts pertaining to probate and trusts

two

There are __________ main types of trusts.

two

What are the exceptions to a zoning law called when a zoning board or commission is appointed by the local government to handle appeals from decisions of the zoning officer and to consider applications for parties?

variances

Cynthia hates writing term papers and reports, so when she receives an assignment to write a paper for her law class, she calls her friend Stephanie and agrees to pay Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a paper from a small, remote law journal that publishes faculty-written papers from throughout the world online. When the plagiarism is discovered, an infringement claim is brought. Cynthia is guilty of

vicarious infringement.

Perhaps more than in any other area of the law, citizen interest organizations, also called __________, have contributed to the enforcement of environmental statutes and policy.

watchdog groups

Riparian rights have to do with

water rights.

A __________ is a person who reports illegal conduct committed by employees, directors, and executives of a company.

whistleblower

Redrock GP has decided to go out of business. Selling the partnership assets and making payments to creditors will occur during the __________ phase of the closing of a partnership.

winding-up

The employment-at-will doctrine permits an employer to terminate an employee __________

with or without advance notice, with or without just cause, subject to certain exceptions All of the choices are correct.

The Federal Unemployment Tax Act of 1935 was enacted to provide limited assistance to

workers who had been temporarily or permanently terminated from their employment through no fault of their own.