BUL 3130 Exam 1

The Role of Legal Counsel in the business decision making process is

Assist clients to understand their legal rights and consequences of their actions in a business environment.

Shelby is a pizza delivery driver for Quick-E-Pizza. One day Shelby negligently failed to close her delivery truck's passenger door while stacking up six pizzas for delivery in the passenger seat. When she took a corner a little too fast, the pizzas flew out the door, tumbling into a busy intersection. A pizza splatted on Manuel's front window and he swerved out of control and crashed into a food truck, causing thousands in damages and physical injuries. Which of the following is correct of liability for the damages?

Both Shelby and Quick-E-Pizza are liable

Sheila was a used car salesperson who told Chet, a prospective buyer, that the car he was considering was only driven to church on Sunday by a little old lady and was in excellent condition when in fact it was owned by a street racer and was in poor mechanical condition. Chet signed a contract to buy the car in justifiable reliance upon Sheila's misrepresentations. If Sheila honestly but wrongly believes the little old lady story, may Chet avoid the contract?

Chet can avoid the contract because of innocent misrepresentation

The U.S. Constitution requires that all state court judges be appointed by the state's governor and approved by the approval of the state's legislature

False

Aria contracted to purchase Vikram's custom 1957 Chevy Bel Air car for $50,000, with payment and delivery of the car to be made five days after the contract was made. Two days later Aria heard that Vikram was going to sell the car to Barathi the next day for $60,000. If Aria really wants the Chevy, what should she do?

Immediately seek injunctive relief.

Act Now!, an organization devoted to voting rights, applied for a permit to protest the closing of polling places in poor neighborhoods. Genevieve, the head of the organization, wanted the protest to be on the lawn of the county courthouse. The county denied the permit on grounds that it would prevent people from accessing the courthouse. If Act Now! challenges this action in court, it will be reviewed by the judge using

Intermediate Scrutiny

Which of the following is correct of the UCC?

It applies only to agreements for the sale of goods

The Federal Unemployment Tax Act accomplished which of the following?

It established a state-administered fund to provide payments to workers with sudden job loss

A state trial court based in a county that can only hear legal matters from within the state is considered a

A Court of General Jurisdiction

Which of the following courts renders decisions binding only on the parties involved in the dispute?

A U.S. District Court

Which of the following statements about alternative dispute resolution (ADR) is true?

A common formal ADR method is mediation

Which of the following would not be a legitimate exercise of judicial power in the U.S. system?

A federal trial court judge, establishes precedent through his or her court decision.

In which of the following situations would res ipsa loquitur likely apply?

A pair of surgical scissors was left inside Boris after surgery, but he can't prove exactly how they got there

Which of the following is not true

A plaintiff is not required to plead the remedy they seek from the court and generally relies on the court to establish the appropriate remedy

The first step in creating an agency relationship is

A principal manifesting some offer to form an agency

In which of the following situations would a delegation of contractual duties be allowed?

A roofer hired to reroof your home

Which of the following circumstances involves a "remand"?

A state appeals court judge, reverses a trial court case and sends it back to the trial court with instructions that a different rule should be followed

Harriet's Hats ordered 1,000 red hats from Gary's Retail Supply. Gary's sent 1,000 blue hats by mistake. Under the UCC, which of the following options does Harriet's have?

All of the answer choices are correct

The relationship between ethics and law is that

All of the answer choices are correct

Which of the following is true regarding federal powers under the US Constitution

They are limited and Granted

Freddie was approached by Byron, a police officer, who asked him if he could search Freddie's backpack. Freddie gave Byron permission to conduct the search. Byron had no warrant and no probable cause to believe that Freddie was involved in criminal activity. Byron found an illegal switchblade in Freddie's backpack and arrested him. Is this a legal search? Why/why not?

This is a legal search because it was consensual, Freddie gave Byron permission

Which of the following employees would be eligible for 12 weeks leave under the Family and Medical Leave Act?

Trishia, an accountant who has worked full time for the last year for Midco, a company with 70 employees who work in one building.

A legal defense renders a contract unenforceable, even though it has the necessary elements of a valid contract

True

Ethical misconduct not only includes illegal and unethical practices but also includes questionable practices of managers and organizations

True

Honoring ethical values and respecting communities and the environment while recognizing the interests of shareholders are elements of corporate citizenship

True

Intent to discriminate must be proved for a disparate impact case to be successful.

True

Under the Theory of Mixed Motive, an employee is protected under Title VII in a case where legitimate motives are mixed with illegitimate motives if the employee proves the protected-class membership was a substantial factor in the decision-making process.

True

Valid contracts can be written or oral.

True

Workers' compensation provides benefits for workers who are injured on the job.

True

Which of the following is true of the U.S. court system?

U.S. Supreme Court appellate review is discretionary

Which of the following is not a theory of discrimination under the Civil Rights Act?

Unclear opportunity

Thomas Jefferson wrote: "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness." Which of the following ethical views does this most closely represent?

Natural law

The utilitarian approach is most accurately stated by the following saying:

Our actions should create as many positive results as possible while creating as little harm as possible."

Which of the following is not a benefit of legal awareness for business owners

Permits a business to pay more taxes than is legally required

An Attorney wants to file a lawsuit. What will be the first stage of litigation for him?

Pleadings

Precious, at a private party, agreed to sell LaStarshae her new Gucci purse for $2,000. LaStarshae asked Precious if she would hold the price open until the end of the month when LaStarshae received a quarterly bonus from her job. Precious agreed to do it for her as a favor. At the end of the month, LaStarshae approached Precious with $2,000 in hand, but Precious said "Sorry, LaStarshae, I just sold it to Celine, you're too late." What will be the result if LaStarshae sues for breach of contract?

Precious wins as there was no exchange of consideration

What is the name for the petition to the U.S. Supreme Court to request that the court review a case, and roughly what percentage of cases does the Supreme Court agree to hear each year?

Writ of certiorari, 1 percent

Billy's Barbecue was a small business with 20 employees in Tinyville, a town that seldom had visitors from other states. Billy refused to serve people of Middle Eastern descent. Billy's only contact with other states was purchasing some of his beef from a butcher in a neighboring state. May Congress regulate Billy's activity under the Civil Rights Act? Why/why not?

Yes, because Billy's is engaged in interstate commerce under the Commerce Clause

Leticia was in a conference room being questioned by an attorney. The only other person in the room was a person from the court making a written record. Which of the following is this?

a deposition

In order to qualify for an accommodation under the Americans with Disabilities Act, employees must have

a documented disability

One definition of a contract is

a promise or set of promises enforceable by law

Which of the following stands for the proposition that a contract must involve both sides receiving and giving up something of legal value?

consideration

Brandon's Computers Incorporated (BCI) entered into an agreement to purchase all of the computer chips that BCI needed for the next year from Chipco. What is this agreement called?

a requirements contract

The sales contract for $30,000 worth of motorcycle parts between Cycle Parts Unlimited (CPU) and Terry's Cycles Incorporated (TCI) was in electronic form only, by email and with electronic signatures of both representatives of CPU and TCI. There was no hard copy documentation or original written signatures. Under the UCC rules of contracts, this agreement is

a valid contract because the UCC recognizes electronic records and signatures as sufficient in contracts between merchants

The completion of a contract when both parties no longer have obligations under it because they have performed everything in good faith is known as

discharge

The employment-at-will doctrine

exists in some form in every U.S. jurisdiction

The Supremacy Clause holds that

federal law trumps state law if there is a conflict

Rita defaulted on the loan of her motorhome. She had borrowed the money to purchase the motorhome from Thrifty Bank. Thrifty hired Roger the Repo Man to repossess the motorhome for a fee of $1,000. Roger was told to find the motorhome and take it in whatever manner he thought best so long as he did not break the law. Roger would be classified as

an independent contractor

Dirk is the delivery driver for Papa Pepperoni's Pizza. On a delivery he spotted Marvin, his main competition for the affections of his girlfriend Jolene. He accelerated his truck and hit Marvin, breaking both his legs. Under these circumstances, this is

an intentional tort

Raelynn saw Tawny choking in a restaurant. Raelynn jumped from her seat, beat Tawny on the back in her untrained attempt at Heimlich Maneuver, which she did not know how to perform, and gave Tawny serious back injuries. Raelynn will be liable to Tawny under which of the following doctrines?

assumption of the risk

The common law of torts is primarily intended to

compensate victims

Lanza was just hired to work for a government defense contractor. A clause in the contract calls for Lanza to pass a background check before he can work in the job, as a security clearance is required for all employees. If he cannot pass the background check and get appropriate security clearance, he cannot have the job and the employment contract will be voided. This clause would be a

condition subsequent

In the UCC, good faith is defined as

honesty in fact in the conduct or transaction concerned

Sarah and James have entered into an agreement where Sarah offered to sell her Camaro to James for $15,000 and James agreed to buy it for that price. This agreement is known as a/an

meeting of the minds

Sharice was working on a scaffolding 20 feet above the ground when she carelessly tossed her power drill to a co-worker. It fell to the ground and landed on Gardner, a visitor to the construction site, injuring him. What category of tort is this?

negligence

A breach of contract that is not material is known as a/an

partial breach.

Botha is a rich art collector and corporate executive who wants to remain anonymous in a purchase of a Van Gogh painting. He has Francine, an executive in his corporation, negotiate for the purchase of the painting, which is being sold by Northaby's Art Sales. Francine reports directly to Botha and is supervised directly by him. Botha instructed Francine to tell Northaby's that she represents an art collector who will go unnamed. The agency would be described as

partially disclosed

Butler was shopping at Grocerymart and slipped and broke his tailbone because an employee had dropped a gallon of milk in the aisle. This was on October 25, 2019. The state law that requires Butler to file his lawsuit by October 25, 2022, is known as a/an ________________.

statute of limitations

Formal action in a lawsuit begins when the plaintiff files a _______.

summons and complaint

The contract for the lease of a fleet of delivery trucks, which would be considered equipment, to FedEx by Ford Motors would be governed by

the Uniform Commercial Code

When a principal breaches a duty to an agent

the agent generally has the right to recover damages in court.

The proper mode of acceptance of an offer up and until the offer has been accepted is established by

the offeror

Carla's Cars (CC) and Trixie's Transmissions (TT) entered into a contract for CC to purchase transmissions from TT. Certain terms of the contract were incomplete and somewhat ambiguous. Under the UCC, this contract will be allowed to be enforced using each of the following criteria except the:

trial judge's input of any terms necessary to maintain fairness between CC and TT

Crimeco senior executives were involved in a massive fraud scheme to misrepresent their financial health. Faroq was employed by Crimeco as a regional manager and reported to state authorities about the fraud. Faroq is known in employment law as a/an

whistle-blower

Marianne was a computer programmer making almost $170,000 a year at a rate of $80 an hour for Big Tech. Ginger, her boss, demanded that she work 100 hours of overtime over the next month until a large project was complete. Marianne believes she is entitled to 100 hours of overtime pay. Under the Fair Labor Standards Act, how much overtime pay is she entitled to?

$0

Rocky is an employee with McDougal's Incorporated, a company covered by the Fair Labor Standards Act. Rocky works as a laborer and is not exempt. He is scheduled to work 40 hours each week and makes $20 an hour, for a total of $800 a week. If he works 10 extra hours in a particular week, his paycheck for that week should be for

$1,100

What are the two primary roles of the judiciary in the U.S. system?

Adjudicate cases and perform judicial review

According to the text, which of the following does the system of law in the United States provide for?

All of the Above

Cindy verbally told a number of lies about Beyhanna, a diva recording star. These lies included that she was regularly using illegal drugs. One of the people Cindy told the lies to, Ramone, worked for Beyhanna's record label and Ramone went straight to the president of the record label and verbally told him about the drug use story that he had heard. While Cindy's stories were lies, they sounded compelling to Ramone and would have convinced the average reasonable person of their truthfulness. Beyhanna was fired by the record label as a direct result of the lies and lost out on a recording contract worth $5 million. If Beyhanna sues Ramone for defamation, what result?

Beyhanna should not win because Ramone did not act with malice, an essential element of a defamation claim against a public figure

Garp signed a contract with Tech Corp that had a binding arbitration clause. A dispute arose between Garp and Tech Corp and the matter was heard by an arbitrator. The arbitrator awarded Tech Corp $50,000. Under which of the following circumstances may a court judge set aside the award of the arbitrator in the hearing?

Both an arbitrator's refusal to hear relevant evidence that prejudices a party's rights and bias against one's gender are grounds for setting aside an arbitrator's award.

The fact that the injury would not have occurred except for the breach of duty by the tortfeasor is called the

Cause in Fact

Dravon agreed by contract to be an agent employee for Imagine Corporation. This is known in agency law as

Consent

Which of the following statements about organizational ethical systems is true?

Informal value systems standing alone may be too vague and impractical

Shirley owned a lion which she kept on a thick chain in her backyard. She took several precautions to protect people in the neighborhood, including building a high fence around her yard and putting up several signs that said "Beware of lion. No trespassing." In spite of the precautions she took, Darby managed to climb the high fence, ignored the signs and jumped into her backyard. Darby was mauled by the lion and managed to escape with serious injuries. Darby sued Shirley for his injuries. What is the likely result?

Darby wins because Shirley is strictly liable for her abnormally dangerous activity of keeping a wild animal

While organizations may have standards and values they aspire to follow, a practical approach and strategic legal solution identified by the textbook to make these standards and values effective is to

Develop a code of ethics

Which of the following statements is true?

Dispute resolution requires a cost-benefit analysis

The U.S. Department of Labor is authorized to oversee pension and retirement savings plans that corporations set up under the

Employee Retirement Income Security Act

All of the following are examples of sources of Florida law except

English Common law after 1776

Bella suspects that she was turned down for a job as a server at Hooters because she is 40 pounds overweight. She may contact the EEOC, which will investigate her case based on a Title VII violation.

False

Business ethics is a commitment to following the opinions of stakeholders in pursuing a course of action in business operations.

False

Courts routinely question and overturn administrative-agency decisions involving how and when an agency enforces a regulation

False

Equitable remedies are available to compensate injured parties in both civil and criminal lawsuits

False

Under federal law, what must an employee who is alleging employment discrimination do first?

File a complaint against the employer with the local EEOC office within 180 days of the adverse job action

Selina has been served with a summons and complaint. Which of the following options does she have?

File a motion to dismiss

General Contracting was hired by the city of Rockyville to put in a new road through a mountain pass for $2 million. General Contracting did reasonable soil tests as would be expected of a contractor under their circumstances. The job would involve about 80% costs related to highway materials and 20% labor costs. When General Contracting started building the road, they discovered that it was solid granite a few feet down and that the mountain was unlike any they had ever seen in the state. It would cost them over $5 million in costs just to complete the job. If General Contracting refuses to complete the job at a loss and Rockyville sues, what result?

General Contracting can have the contract discharged based on impracticability

Who of the following is a gratuitous agent?

Gerta asks her roommate Dorian to pick up her laundry from the dry cleaners as a favor

Spacely Sprockets ordered 1,000 10-inch cogs from Cogswell Cogs to be delivered by July 15. On July 5, Cogswell delivered 1,000 12-inch cogs. Under the UCC, which of the following options does Cogswell have to cure the imperfect tender if, on July 6, Mr. Spacely informs Mr. Cogswell that the cogs are not usable?

Give notice of his intent to cure and deliver conforming cogs by July 15

Brain worked on an oil rig and was subject to frequent unwanted sexual advances from his supervisor, who was the same gender. Brian's corporation had 500 employees. Brian wants to file a lawsuit based on sexual harassment under Title VII. What result?

He can file a sexual harassment claim under Title VII because it is gender-neutral.

The Science and Philosophy of the Law is commonly called

Jurisprudence

Judicial review is best represented by which of the following hypotheticals?

Laura, a federal appellate court judge, is researching the language of a statute to determine if it is unconstitutional

The three most common formal methods of ADR are:

Mediation, arbitration and expert evaluation

Which of the following will not create minimum contacts in a state sufficient to find personal jurisdiction on an out-of-state defendant?

Modern Pharmaceuticals maintains a website that provides customers information about its products, as well as email addresses and phone numbers for regional sales representatives from whom customers can purchase products

Management at Bargain Palace Incorporated (BPI) want to monitor employee activities to prevent industrial espionage. Which of the following may BPI do under the Federal Communications Privacy Act?

Monitor business calls

Protection of employees through the prevention of workplace injuries is addressed by the

Occupational Safety and Health Act

Under the concept of Stare Decisis

Prior Court Decisions from courts of Appeal in the same jurisdiction are considered precedent and generally must be followed

Rodriguez and Howard, Attorneys at Law, hired Rhoda as an associate attorney. Rhoda represented a client while working for Rodriguez and Howard and told several lies about Marlin, the person her client was suing. These lies resulted in Marlin being fired from his job. The principals at Rodriguez and Howard had no knowledge of what Rhoda had done. Under these circumstances, which of the following can Marlin successfully sue?

Rhoda but not Rodriguez and Howard, as Marlin suffered no physical harm

Which of the following items would not be considered tangible and movable under the UCC Article 2?

Rights to a patent

Roddie is 30 years old. He was demoted from his job as a manager at Big Trucks, a company with 10,000 employees. He was replaced by Bambi, a 45-year-old. Roddie was told that he was a little too young for management. Under the Age Discrimination in Employment Act (ADEA), what are Roddie's options?

Roddie has no options under the ADEA

Congress passed a law that permitted government agents to tap the phones of the executives of internet service providers (ISPs) without the probable cause and warrant normally required by the Fourth Amendment. The rationale was that ISPs were involved in frequent violations of citizen's' privacy rights and the taps were needed to uncover evidence of this illegal activity. Allen, the president of an ISP, had his phone tapped. He has challenged the law in federal court. What level of scrutiny will the courts apply to this law?

Strict Scrutiny

In which of the following situations is a court most likely to find substantial performance?

Superior Manufacturing orders 6,000 containers of the standard industrial type of manufacturing machine oil from Industrial Supply Associates (ISA), but ISA can deliver only 5,500 containers.

Congress attached spending conditions to federal funds granted to states to maintain interstate highways. The conditions stated that a state would have federal highway repair funds cut back by 10 percent if a state raised its speed limit on public roads higher than 70 miles per hour on grounds that safer highways would promote the federal welfare. The state of Wyoming raised their speed limit to 80, had their funds reduced, and challenged the congressional conditions in federal court. What is the likely result of their challenge?

The federal conditions will be upheld as constitutional, as a constitutional exercise of Congress's spending authority.

Which of the following Is true of the executive powers of the President

The president has the power to issue executive orders which have the full force of law

Which of the following would be a servant in a master-servant relationship?

The security guard who worked for Countryside Credit Union

The Purpose of the Law is

The two answers which do not involve subjugating the masses

Flick entered into an oral agreement with Ralphie where he agreed to sneak out at night and spray paint graffiti on the walls of Warren G. Harding Elementary School in consideration of $25. The two negotiated over the price and Flick finally agreed to do it when Ralphie "double dog dared" him. With respect to the laws of contracts, which type of contract is this?

This is an express, bilateral and void contract

Austin contracted to paint Nygee's house. Nygee specified a certain brand of paint that she always used on her house. She told Austin that her great grandfather had founded the paint company. Austin secretly used a different brand of paint because he got a half price deal on it and could increase his profits by $1,000. He never told Nygee what he had done. The paint Austin used was similar in quality to what Nygee had ordered, there was no material variation in that, and the job looked good. However, it was not per Nygee's intentions. Nygee found out when she saw the brand of the paint that Austin's secretary had inadvertently typed on the invoice. Nygee refused to pay. Austin has claimed he substantially performed and sued for payment. What result?

This is not substantial performance because Austin did not act in good faith

Stevenson Sanitation Corp (SSC) ordered 1,000 green toilet seats from Commercial Sanitation Supply (CSS). The contract stated "1,000 green toilet seats, FOB SSC loading dock." The toilet seats were required to be green because this was SSC's trademark color. When the shipment arrived, SSC discovered that it has received 1,000 red toilet seats. Before SSC could notify CSS and return the seats, a fire destroyed SSC's building along with the shipment of seats. Which of the following statements is true?

This was a destination contract, and the toilet seats were nonconforming goods, so CSS did not complete performance and retained risk of loss

Rocket Corporation's slogan was "Treat customers and the world with respect." This principle informs Rocket's strategies and plans and guides employees. According to the text, this is an example of:

Values management

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

Warehouse worker

Allie, a 24-year-old graduate accounting student, entered into a written agreement with her father to give up drinking until she completed her master's degree. Her father agreed to pay her $100,000 if she did so. Does Allie have a right to collect if she lives up to her end of the bargain?

Yes, because this is a bargained-for exchange and has adequate consideration.

A tort is

a civil wrong where one party has acted or failed to act in a way that causes loss to be suffered by another

Blake agrees to purchase a four-wheel drive monster truck from Offroad Autos and schedules a delivery. Blake signs a contract promising to pay the amount of $40,000 in full upon delivery in three days. The day before the scheduled delivery, Congress passes an emissions law making sale of vehicles with inadequate gas mileage illegal, and the truck that Blake contracted to purchase is included among the illegal vehicles. This contract

automatically terminates due to impossibility

In a products liability case, the injured party can pursue a legal remedy against the seller of the product based on all of the following theories except

immunity

Diversity of citizenship jurisdiction involves a case

in federal court with diverse parties and a controversy over $75,000

The state of Massachusetts passed a law requiring all commercial trucks driving on Massachusetts highways to install special pollution scrubbers on their exhausts. These devices cost $1,500 per truck and any truck entering the state must have the scrubber installed or the driver is subject to a large fine. Massachusetts has justified this regulation on grounds of air quality health for residents and alleviation of global warming. This Massachusetts law

is invalid because, although on its face it's an intrastate law, this statute will have a significant economic effect on interstate commerce, causing an undue burden

In a case where Davey sues Rockridge Corporation for selling him defective software that crashed his network, the standard used to decide the case will be _______, in a case where Davey is prosecuted for being a minor in possession of alcohol, the standard used to decide the case will be _______.

preponderance of the evidence, beyond a reasonable doubt

Darryl believed that right and wrong were established by his religious beliefs and followed the tenets of his religion in his dealings with others. This is known as a:

principles-based approach

Stelissa is an associate attorney with Drake & Creighton, Attorneys at Law. Her supervisor, Russ, is a partner in the firm. Russ regularly tells her she's hot and should wear tighter-fitting clothes. He often calls her into his office and asks her to turn around slowly so he can admire her body. He never touches her. These ongoing comments make her job difficult. At the end of the year, Russ gives Stelissa a great performance review and a $20,000 a year raise, more than any other associate attorney. Stelissa files a complaint with the EEOC after one year of this treatment. Under these facts

she may have a valid hostile environment claim

Under disparate impact theory, a plaintiff must prove that

the evaluation methods used by an employer to hire employees resulted in statistically significant differences that adversely impacted members of a protected class

Gigantic Toys (GT) contracted with Destiny Distributing (DD) to deliver 5,000 kid cars to them via ground delivery. If there are no specific agreements regarding the terms of shipping between GT and DD, the reasonableness requirement of the UCC governing delivery of goods requires each of the following except

the goods must be delivered on a weekday