UH Manoa BLAW 200 Final Exam

The average cost of developing a successful new drug is approximately:

$1.0-$12 billion

Which offices are responsible for enforcing antitrust law: (a) Antitrust Division of the U.S. Department of Justice (b) Private actions, through qui tam litigation (c) State attorneys general (d) The Federal Trade Commissions and the U.S. Department of Justice (e) Both "c" and "d"

(e) Both "c" and "d"

The terms (in years) of office for Representatives, Senators, Presidents, and Justices are:

2, 6, 4, lifetime

One discussion that is both legal and political is that of "positive rights." How do positive rights differ from negative rights?

A "positive" right requires that the government take action, while a "negative" right limits the power of government.

Which of the following is false? - A corporation is a person because it has a separate identity. - A corporation is a person because it is a corporate person. - A corporation is a person despite not being a natural person. - A corporation is a person because it must conduct business as a natural person would. - A corporation is not a legal person.

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

Which of the following is least likely to be a case of disparate impact discrimination?

A requirement that all employees complete an HR-approved training program.

Self-regulation is:

A willing, active internal compliance effort to reduce the likelihood and severity of formal agency rule-making and enforcement

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

Which of the following is NOT an advantage of a corporation: - The corporation's promoters may seek an unlimited amount of capital - The corporation's promoters may seek investment from an unlimited number of investors (providing they comply with securities law) - The corporation's promoters may offer different classes of shares - The corporation can live forever - All of the above are advantages

All of the above are advantages

A corporation is a "person" because: - This was a useful legal fiction - Corporations often employ people - Corporations can sue and be sued - All of the above are correct

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.

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

Evil Ed has planned to steal the priceless manuscript from Innocent Irene for many years. Ed's plans are intricate, well-thought-out, and deeply felt. This is, in fact, a consuming passion. Ed is, however, quite timid. As a result, he has not yet carried out any of his plans, but dreams of his dastardly success in stealing the manuscript. Has Ed committed any crime? I. Yes, because the criminal law exists to prevent crime, and in preventing crime society must guard against mens rea. II. Yes, because this is a "thought crime." III. Yes, this might be an inchoate (attempted) crime if the prosecutor shows that Evil Ed carried out any part of his plan IV. No, because while he has sufficient mens rea, there is no actus reus. V. Either [c] or [d]

Both III and V are correct

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

Under both the U.S. and English common law systems, which historical system provided relief in a case of extreme unfairness even if a legal rule did not:

Courts of Equity

Which of the following is most likely not a protected class? A. A person whose parents are descended from slaves taken from the African coast B. A person who immigrated from a foreign country C. A woman D. An extremely tall person E. A Zoroastrian

D

A client asks you to continue to work for them, but paid directly and not reported to your employer. This would thus be extra income to you, and you could provide the same excellent service to the client at a lower cost. You should:

Decline the offer and continue to work for your employer

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

Sally is head of a department with an all-female staff. The first male is promoted into the department, and Sally realizes that the communications among the veteran staff are causing the new employee to be deeply uncomfortable, although he has not complained. Sally should:

Engage each staff member as to expected professional communication, including styles and tones

A federal question is:

Exclusive jurisdiction in the federal courts

An employee experiences serious vision and hearing impairments. The firm purchased expensive equipment and software to allow the employee to continue to work productively. This was successful for a while. Unfortunately, the medical conditions continue to worsen, and the employee faces increasing challenges in performing the tasks of the job. Physicians are uncertain whether the employee will be able to continue to function in the job. The employer should:

Explore all possible means to accommodate the employee's impairments allowing them to accomplish the job

An employee experiences serious vision and hearing impairments. The firm purchased expensive equipment and software to allow the employee to continue to work productively. This was successful for a while. Unfortunately, the medical conditions continue to worsen, and the employee faces increasing challenges in performing the tasks of the job. Physicians are uncertain whether the employee will be able to continue to function in the job. The employer should:

Explore all possible means to accommodate the employee's impairments allowing them to accomplish the job Explore, with the employee, potential solutions including a redefinition of the job or of different jobs the employee might be able to do

"D&O insurance" is a Direct Offering from the insurer to a second insurer.

FALSE

"Independent" labs such as UL, which are funded by industry, are suspect because of their funding.

FALSE

A foreign corporation is a corporation from outside the United States.

FALSE

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

A partnership is formed out of strength.

FALSE

Actus reus is the "guilty mind" that shows a criminal intent.

FALSE

Administrative law, the realm of regulation, is a fairly minor concern for business.

FALSE

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

FALSE

Appellate courts will defer to trial court judges as to an issue of law.

FALSE

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

FALSE

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

FALSE

Covenants not to compete in employment are unenforceable.

FALSE

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

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 an unlicensed electrician performs electrical work, the contract would still be valid and enforceable.

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 a civil law system, the laws are in flux, dependent upon court cases.

FALSE

In a criminal trial, the victim is a party to the action against the defendant accused of the crime.

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 bankruptcy law, "Chapter 7" involves a reorganization of debts.

FALSE

In contract law, "consideration" must be money.

FALSE

It is not possible to buy air above land.

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

Punitive damages are common in tort law cases.

FALSE

Regulation, while vast, is not as important to business as case law.

FALSE

Rent control is an effective way to reduce housing costs for nearly all residents in a high-cost area.

FALSE

The "not in my backyard" term relates to regulations concerning environmental protections in residential backyards.

FALSE

The Supreme Court, head of the most important branch, is addressed in Article I of the U.S. Constitution.

FALSE

The U.S. Environmental Protection Agency was created by President Jimmy Carter.

FALSE

The government of the United States is a direct democracy.

FALSE

There is an absolute right to be left alone.

FALSE

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

FALSE

Under the Uniform Commercial Code, special warranties apply to all parties.

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

Which of the following would be an approximate rank order of societies from most likely to follow the rule of law to least likely to follow the rule of law. In other words, rank the following societies from "most lawful" to "least lawful":

Finland, United States, Italy, Venezuela, North Korea

The law of modern Japan is:

German

Which of the following is least likely to be a bona fide occupational qualification?

Hiring only female wait staff.

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. Your surviving relatives can sue the dealer because: I. This is an implied warranty from a usage of trade. II. This is an implied warranty of merchantability. III. This is an implied warranty of fitness for a specific purpose. IV. This is an express warranty. V. 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: I. Johnny likely wins if he can show that Thrills & Spills is grossly negligent II. You likely win if you can show that Johnny did not pay for the ride III. Johnny's sneaking into the ride is not likely, on public policy grounds, to excuse Thrills & Spills IV. Exculpatory clauses can sometimes be legally effective V. Exculpatory clauses are used even if not legally effective

I, III, IV, and V are correct

Sneaky Sam is attempting to steal a candy bar from Richy Rich. Which of the following would be true? I. If Sam punches Rich in the face, Sam is liable for assault and/or battery II. If Sam simply pulls the candy bar from Rich's hand, he would not be liable for either assault or battery III. If Rich, enraged by the loss of his favorite candy bar, smashes Sam in the face, Rich could be liable to Sam for assault and/or battery even though Sam was the instigator of the initial tort IV. If Rich, enraged but quite timid, waits until Sam is asleep to hit him, Rich would be liable for assault and battery V. If Rich, enraged but quite timid, waits until Sam is asleep to hit him, Rich would be liable for battery but not assault

I, III, and V are correct

Which of the following is true about regulatory law?

It is vast, authorized and overseen by the legislature and controlled by the executive branch.

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

You are a sales representative for a major corporation. In meetings with an official during an international sales trip for a large industrial purchase, the official cheerfully mentions that he will be applying for his child to attend an expensive private school. You get the distinct impression that this was an implied request for your company to "assist" in this. You should:

Nod sympathetically but attempt to be as non-committal as possible, then seek guidance from senior managers

Loud Larry owns a bar, which he converts to a live-music venue. As business is good, he expands his hours to 4:00 a.m., causing residential neighbors to complain about the deep "thump, thump, thump..." of the massive bass speakers in the club. Under which legal doctrine could Larry's neighbors force him to stop playing loud music?

Nuisance

You are CEO of a massive global enterprise, with successful divisions in many markets. The best economic and legal position for your company is:

Oligopoly

In business law, double taxation refers to:

Payment of taxes by the corporation and again by the shareholder

Administrative law is carried out through agencies, which are bureaucratic in structure. Which of the following is NOT part of the "rational model" of bureaucracy proposed by Max Weber?

Political decision-making.

Which of the following is not true of preferred shares:

Preferred shareholders are paid dividends before bondholders.

Fred is the supervisor for a crew of construction employees. Several employees converse with each other in their native language. Sam approaches Fred to voice concerns by the other employees about the foreign language being spoken. Fred should:

Require all employees to speak English when on the job, especially if safety issues are present

In which of the following cases is the employer least likely to be liable for discrimination:

Requiring pilots to accomplish training at twice the rate required under FAA rules.

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

Silence

"Blue sky" laws were established to protect small investors.

TRUE

"Ethics" now covers sourcing of products even several steps removed from the company's own production.

TRUE

"Workers' compensation is a no-fault system to provide efficient care for injured employees.

TRUE

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

TRUE

A cooperative pools resources among members to provide lower-cost products or services.

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

A limited partnership must have at least one general partner who has unlimited liability for the debts of the partnership.

TRUE

A senior executive of a publicly traded company may be fined up to $5,000,000 and be sentenced to up to 20 years in prison for violation of financial reporting rules.

TRUE

A strict liability crime is one in which someone might be completely innocent in not intending to cause harm, but still be guilty of a crime.

TRUE

Administrative adjudication refers to the realm of legal proceedings within a regulatory agency.

TRUE

Agency Law is important because the rules that apply to Master/Servant also apply to Employer/Employee and Principal/Agent.

TRUE

Although the "master" and "servant" were almost always of unequal wealth and status, the law treats them as legal equals under Agency Law.

TRUE

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

TRUE

An LLC is among the most popular forms of business, providing numerous benefits and few disadvantages.

TRUE

An important duty in law is a fiduciary duty.

TRUE

Bankruptcy and intellectual property are two types of cases that must be heard in federal court.

TRUE

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

Constructive knowledge occurs when a person should have known a fact.

TRUE

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

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

If an investor is neither "accredited" nor "sophisticated," they are effectively excluded from many of the most highly lucrative deals.

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 general partnership, each partner may be sued for and lose all personal assets, even if the harm was caused by another partner.

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 an agency, appeals are made within the agency, heard by Administrative Law Judges who are not under the authority of the judicial power of the U.S. Supreme Court.

TRUE

In bankruptcy law, "Chapter 13" is the personal equivalent of the "Chapter 11" business reorganization.

TRUE

In criminal law, the defense of defense of others is possible if the defense would have been available for defense of self.

TRUE

In determining whether a bilateral contract exists, courts will first look to whether the parties engaged in a bargained-for exchange involving an offer and acceptance of that offer.

TRUE

In some jurisdictions, a person cannot use the defense of self-defense if they were able to retreat.

TRUE

Japanese law is to a large extent German law.

TRUE

Laches is the equitable principle that if one waits too long before complaining about an issue, a court may deny them a recovery even if they would have won earlier.

TRUE

Legislatures may override the common law.

TRUE

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

TRUE

Much of the realm of regulation is a "dance of experts" in which technical experts on both sides of the regulatory divide decide, argue about, and enforce regulatory rules.

TRUE

Natural law refers to a moral realm that is separate from and above a society's specific laws.

TRUE

One of the most important duties in Agency Law is the duty of loyalty, which is owed by the servant to the master.

TRUE

One way to measure how closely a society follows the rule of law is to look at the inverse of the level of corruption in that society.

TRUE

Our legal system relies to a large degree upon industry self-regulation.

TRUE

Prior to the advent of securities law, the assumption was that when a market fell, weaker firms would fail. This would "cleanse" the market, resulting in better and stronger future growth. The basis of this was the concept of "moral hazard," or the affect of risk on behavior.

TRUE

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

TRUE

Rules of evidence concern the admissibility of evidence in a trial.

TRUE

Stare decisis is the legal principle of precedent.

TRUE

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

TRUE

The Restatement of Torts (2d) has, through legislation in individual states, modified common law torts into a more standardized, simplified statutory approach.

TRUE

The basis of a "con" is confidence.

TRUE

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

TRUE

The essence of Agency Law is the Master-Servant relationship.

TRUE

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

TRUE

There are many exceptions to the legal doctrine of employment-at-will.

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, even if no express, implied, or apparent authority exists, the principal can still be held liable.

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 Sarbanes-Oxley law, publicly traded companies must establish multiple committees adjunct to the board of directors, to ensure proper governance.

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 congressional delegation of power, when Congress creates a new agency it often delegates the rule-making process to the agency being created.

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

Under the jurisprudence of legal positivism, a society's written law is law even if it is immoral or unfair.

TRUE

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

Which are not restrictions in an "S" corporation?

The "S" corporation must include a for-profit entity shareholder.

You are walking normally through the mall. Unbeknownst to you or to the mall owner, an elevator motor has begun leaking oil, dripping onto the ceiling of the elevator and then onto its floor. When riding the elevator, you step in the oil, and upon exiting the elevator, you slip on the sleek floor, breaking your hip. Under the common law, which of the following is true:

The court will look to the opinions of other judges.

If an owner has limited liability, this means that:

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

Civil procedure refers to

The process of litigation

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!"

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

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

Under what circumstance would a judge not pierce the corporate veil?

Victim Victor amply funds a corporation, but it fails anyway due to a market downturn.

Suppose a person believes they have been discriminated against, and presents their case to the Equal Employment Opportunity Commission. The EEOC decides not to pursue the case. The employee:

Will receive a Notice of Right to Sue, and may pursue the case individually.

In U.S. law, bankruptcy courts are:

Within each U.S. District Court

Under Rule 802 of the Federal Rules of Evidence, "hearsay" (a statement of another person's words, thus difficult to substantiate) is not admissible as evidence in court. Among many exceptions, Rule 803(16) concerns "statements in ancient documents": "A statement in a document that is at least 20 years old and whose authenticity is established." If Rule 803(16) applies, can the jury hear the testimony?

Yes, because Rule 803(16) is an exception to Rule 802.

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"

Workers' compensation is:

a "no-fault" statute, where the employee receives compensation upon injury

In regulation, the interests of the parties, including the government, are:

differing but with substantial overlap

The notion that, in contract law, you are the Master of Your Offer means that:

you may offer (almost) anything you want, at any price you want, under any terms you want