business law
Where do the funds to pay out workers' compensation claims come from?
Business contributions to a state held fund
Any partner:
may act as an agent who binds the partnership.
In terms of personal liability of the owner, a sole proprietorship:
offers no protection.
The formation of LLCs is governed by:
the laws of the state in which the LLC is created.
The ___________________________, for example, is an agency within the U.S. Department of Health and Human Services.
Food and Drug Administration
What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers.
- A party to a personal contract dies or becomes incapacitated. - The subject matter of the contract becomes illegal. - The specific subject matter of the contract is destroyed.
Which of the following should be approved by shareholders? Select 2 answers.
- An acquisition of the company by another company - A dissolution of the corporation
What is an exception to the statute of frauds?
Promissory Estoppel
What business speech is protected by the First Amendment?
Some types of advertising
In ethics, compliance with the law is considered:
the moral minimum.
In general, which of these contract terms is NOT required to meet the requirement of definiteness?
Acceptance
As an actual agent, which of the following would have been an appropriate way for George to sign a contract on behalf of Sunshine to have avoided personal liability?
All of these are acceptable.
Wrongful interference with a contractual relationship occurs when
All of these choices.
Assume The Haunted Witch Trials meets the elements to be found negligent with regards to the claim by Lukas. What, if anything, could potentially reduce the award of damages to Lukas depending on the state in which the attraction is located?
All of these.
What must a plaintiff prove in an intentional tort case?
Intent to commit the act.
The maker of CalmDown argues that it should not be subject to the jurisdiction of any state court other than Alaska. Which of the following, if true, is CalmDown's best argument against being subject to any other state's jurisdiction?
It merely conducted some activity outside of Alaska and that activity took place through a website.
Cari discovers that Lucas has a criminal background and shares this information with others where they both work. Which intentional tort could apply here?
Public Disclosure of Private Facts
If the court finds that no valid contract existed between BrainTrain and Natasha because of a failure in the meeting of the minds, what could Natasha argue to still recover damages?
Restitution.
If Mark cannot find a physical address to serve the maker of CalmDown and convinces a judge that the best way to serve the company is through a notice via email to [email protected], what must he first show?
That service by traditional means has failed and service via email to this address is reasonably calculated to provide notice and an opportunity for the app makers to respond.
What is the key factor in apparent authority?
The principal's actions
Under the rights theory, determining whether a business decision is unethical is to see how it affects others.
True
When concurrent jurisdiction exists, the parties may choose to bring the case in state or federal court.
True
EZ Hauling holds itself out to customers as being a corporation but makes no attempt to incorporate. In this circumstance, EZ Hauling is most likely
a corporation by estoppel.
What does the reasonable person standard impose on a person in a negligence lawsuit?
a duty to act as a reasonable person would in the same circumstances
A corporation that is formed in one state but does business in another state is referred to in the second state as:
a foreign corporation.
In order to infringe upon Evander's rights in this way, the state must have a ____ interest that can only be served by infringing upon his rights.
compelling
What must a prosecutor prove when the law requires mens rea?
intent
Kim takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Lum picks up the ring, puts it on, and walks away. Lum has likely committed
larceny
Ethics is the consideration of how one should act, based on which of the following concepts?
morality, or principles of right and wrong
Gil is an officer for HVAC Corporation. Due to Gil's choice of a certain supplier, HVAC's costs are somewhat higher than they might have been if a different supplier had been chosen. Gil is most likely liable for
nothing
What are the two types of actual authority? Choose 2 answer choices.
- Implied authority - Express authority
How may a revocable offer effectively be revoked? Choose 2 answers.
- The offeror may take an action that contradicts the offer and make that known to the offeree. - The offeror may withdraw the offer with a clear expression.
The Fraud Reduction and Data Analytics Act was designed to: (choose all applicable answers - you must choose ALL correct answers)
- assess fraud. - detect fraud. - prevent fraud.
When a defendant faces a negligence lawsuit, what defenses are available? Choose 3 answers.
- comparative fault - contributory negligence - assumption of risk
What is the main provision of the Immigration Act of 1990?
The Immigration Act of 1990 placed caps on the number of visas (entry permits) that can be issued to immigrants each year.
These things would indicate an employer/employee relationship and not an independent contractor (choose all applicable answers)
WRONG - employer provides tools for the job. - paying every two weeks, - the supervisor has a say in what the worker does
The publication of false information about another's product alleging that it is not what its seller claims is
WRONG slander of quality.
State University provides housing on campus, and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
a condition.
Haji is arrested at a warehouse in Industrial Park and is charged with the crime of theft. Haji will be prosecuted by
a district attorney or an attorney general.
The Bill of Rights embodies
a series of protections for the individual against government action.
Doris wants to form a new firm—eBeats—to market a new app. Fees are required to form all of the following business organizations except
a sole proprietorship.
Without creating a separate business organization, Rey starts up Street Cruisers, a pre-owned auto sales enterprise. This enterprise is
a sole proprietorship.
Jan claims she was having a hallucination as the result of her clinically diagnosed schizophrenia while committing a crime. This defense is known as:
insanity.
A law that restricts a person's activities based on their gender will receive _____ by the courts
intermediate scrutiny
Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by
no one because it is oral
Which of the following is an equitable remedy for breach of contract?
an order for specific performance
Mai-Lin's Martial Arts, Inc., grants a franchise to Naomi to operate a Mai-Lin's school. Mai-Lin's may require Naomi to pay the franchisor a percentage of her
annual sales or volume of business.
An operating agreement for a limited liability company:
typically includes provisions about choosing the LLC's management.
What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words?
unilateral contract
An accountant's conduct is judged not by the reasonable person standard, but by the
reasonable accountant standard.
__________________________ is concerned with the most appropriate physical location for a trial.
venue
"Be honest and treat people fairly." With respect to business ethics, implementing this motto is
very important.
According to Evander, continuing to work for the military division would _____ Evander's religious beliefs.
violate
Employers must make which of the following to accommodate the religious practices of employees?
A reasonable accommodation
What authority is ended with the termination of an agency relationship?
Actual authority
Kelly lives in Arkansas and works in the data division of Acxiom Corporation. Acxiom has its headquarters in Conway, Arkansas. Acxiom is incorporated in Delaware, however, because of the corporate-friendly laws in that state. Kelly works in a(n):
foreign corporation because Acxiom is incorporated in a different state than the division where Kelly works.
Zayn boards the Big Rock Metro to ride downtown to his job. Zayn gives his money to the driver and takes his seat. Neither the driver nor Zayn says anything. Zayn and the bus driver:
have an implied contract.
In evaluating the second factor, Grey should analyze what the ___ might say if the shipped food caused sickness or death. Knowingly or recklessly allowing someone to become sick from the food because the company continued to test the food until the salmonella test was negative _____ be a public relations problem. In evaluating the third factor, Grey would look at the _____ for consumers and employees. Grey's instructions to repeat the tests until the results were negative, _____ support the health and safety of consumers.
- media - would - safety risks - did not
Which of the following represent two of the potential financial costs of reporting unethical behavior? Choose 2 answer choices.
- penalties, fines, and lawsuits against the company - the loss of top performing employees
Tort law provides a civil remedy for violations of which of the following protected interests? Choose 3 answers.
- personal and physical safety - personal or business reputation - the destruction of or damage to property
Which posters does the Occupational Safety and Health Act (OSHA) require most businesses to display? Choose 2 answers.
- records of occupational illness and injuries. - post certain notices in the workplace.
What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers.
- rescission - reformation
What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers.
- satisfaction of the receiving party (buyer) - satisfaction of a reasonable person
There are four different aspects of a decision that a business should evaluate in order to maximize profits and be a good corporate citizen. In evaluating the first of the four factors, Grey should determine whether his failure to report the results to the Food and Drug Administration is a violation of ____. In this case, Grey ____ have a legal duty to perform internal tests on food produced at his plant to check for contamination. Grey ____ have a legal duty to report the initial test results to the U.S. Food and Drug Administration. Merely complying with the law is known as the ___.
- the law - did - did not - moral minimum
In a negligence action, a plaintiff may seek an award for compensatory damages as a result of which of the following? Choose 3 answers.
- the loss of a spouse's companionship - actual missed days at work - medical bills
A limited liability company that wants to distribute profits to its members could avoid "double taxation" by electing to be taxed as
a partnership.
Ned and Olga are shareholders of Pizza Pies Inc. Ned's written authorization to Olga to vote Ned's shares at a shareholders' meeting is
a proxy.
Ronald is a minor. He can enter into any contract an adult can provided
b and c.
The value difference between Klaus's worsened behavior at the end of the 12 weeks versus the promise to "cure" Klaus of ADHD can be described as a measure, in part, of:
compensatory damages.
A corporation formed in one state and doing business in another is referred to as a
domestic corporation. WRONG
Assume that, after George received the invoice from Tree Down, he went ahead and paid it out of company funds to which he had access, rather than handing it to Stan. This is an example of:
implied authority.
For an employer to be held liable for a supervisor's sexual harassment, the supervisor normally must have taken ______ against the employee.
tangible employment action
Which of the following is a valid offer?
Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.
A written contract must consist of a single document to constitute an enforceable contract.
False
If a party has a primary obligation on a debt, the contract must be in writing to be enforceable.
False
To participate in a shareholders' meeting, a shareholder must present a proxy.
False
Under the UETA, if a party does not follow the security procedures and then fails to detect an error, what happens?
The party who followed the procedures can avoid the effect of the error.
How does larceny differ from embezzlement? Choose 2 answer choices.
- The intent could include taking the property temporarily. - It requires that the property is entrusted to the perpetrator.
Which of the following are reasons why a motion for a new trial might be granted? (Select 3 answers)
- The judge committed prejudicial error - Excessive damages were awarded - The trial was unfair
Miriam ____ sue the trucking firm in a federal trial court because _____ and ________.
- can - she and the company are residents of different states - the amount in controversy is over $75,000
Which of the following are the two primary types of damages available for an intentional tort? Choose 2 answers.
- compensatory damages - punitive damages
In evaluating the four factors, it seems that Grey's decision was ________ . If Grey had thought through his options as if all food manufacturers would make the same decision, he would be applying ________ . If Grey had analyzed his options using ________ , he would have evaluated the costs and benefits of each option to determine the _______ for the _______ and most likely _______ shipped the food.
- unethical - Kant's categorical imperative - utilitarianism - greatest good - greatest number - would not have
Can the company use the medical exam for purposes of lowering insurance premiums?
No, an employer can only require a medical exam of an existing employee to determine if the employee can still perform his job.
Esther is pulled over for crossing the yellow line with her automobile. The officer suspects Esther is intoxicated, so she administers a field sobriety test. Esther blows a .16 on the test, so the officer arrests Esther for DWI. Esther decides to fight the charge. Her defense is that she is an alcoholic, and the laws against driving while intoxicated unconstitutionally discriminate against her and other alcoholics. Does Esther have a valid defense to her DWI charge?
No, she does not because laws that regulate economic or social issues are presumed valid, and the courts will apply minimum scrutiny in evaluating whether such laws discriminate against people.
What would be The Haunted Witch Trials' best argument for why it did not breach its duty to Theo?
The danger was open and obvious, therefore, they did not have a duty to warn Theo.
Jason, a citizen of Kansas, wants to file a suit against Lora, a citizen of Michigan. Their diversity of citizenship may be a basis for:
a federal court to exercise jurisdiction.
Fraudulent misrepresentation involves intentional deceit for personal gain and includes
damage suffered as a result of the reliance.
In order for Miriam to sue the trucking firm, she has to file the lawsuit in a court that has in personam jurisdiction over the _______.
defendant
Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred
from the position Ben occupies.
Failure to exercise due care, which is normally determined by the reasonable person standard, constitutes the tort of
negligence.
Which of the following is a necessary element of the business judgment rule? Choose 2 answer choices.
- The person acted in good faith. - The person acted with the care of an ordinarily prudent person.
In a manager-managed LLC, the designated manager may: (Select 2 answers)
- be from within the members of the company. - be from outside the members of the company.
How may an agency relationship be formed? Choose 3 answers.
- by express written agreement between agent and principal - implied by the conduct of the principal - by express oral agreement between agent and principal
Pros in Politics, a bookstore in Capitol City, sells publications that criticize government actions and policies. The city enacts an ordinance prohibiting the sale of such materials in the interest of preserving public tranquility. This ordinance is most likely
an unconstitutional restriction of speech.
If Sunshine Landscaping, LLC, had regularly contracted with Tree Down, LLC, to perform tree removal services for customers, then, from the perspective of Tree Down, George's action to contract for the tree removal at 203 Main Street would be an example of:
apparent authority.
Lupita enters into a contract with Faith to purchase a used car. At the time they sign the contract, Lupita appears to be very intoxicated. Faith notices this but signs the contract anyway. If Lupita later decides she wants to get out of the contract:
Lupita can raise the defense of lack of contractual capacity due to intoxication.
Which of the following provides notification to a criminal defendant in custody of the right to an attorney?
Miranda warning
Korbyn enters into a contract with Peyton to sell Peyton a 1956 roadster. The contract has a condition precedent that the roadster will pass inspection by an independent appraiser, verifying that the roadster contains all original parts and is in good working order. This contract provision means that:
Peyton is not required to perform under the contract until the appraisal is complete.
Which of the following does not qualify as an invasion of privacy?
Privilege
Some of the shareholders of Interwebs met to discuss the leadership of the company and whether it would be in their best interest to sell their shares or use their positions to replace members of the board. In particular, these shareholders made the majority of their wealth from the oil industry and they had vested interests in seeing pro-oil messaging on the site. However, several of the board members were advocates of green energy and saw climate change as a real and human influenced problem. In conversations about "misinformation" those board members wanted any climate-change denial to be considered "misinformation" and subject to content regulations. Can the company regulate speech relating to climate change, including restricting posts of government entities such as the Environmental Protection Agency (EPA) that discusses climate change on their site?
Yes, because government speech is not protected against censorship by an individual or corporation.
Which act or statement is a valid offer?
A detailed advertisement
What is preemption in the Supremacy Clause?
Federal law is supreme over state law.
Which of the following crimes has Janae committed?
No crime
What does venue refer to?
geographic location of the court
Greta files a suit against Home Repair Corporation under the doctrine of promissory estoppel. Greta must show that
she justifiably relied on Home Repair's promise.
The simplest form of business to establish is a:
sole proprietorship
What is the term for when a party to a contract performs his duties exactly according to the terms of the contract?
strict performance
A contract for a purpose that causes the parties to violate a law is:
void
Jordynne was the manager of Pets-R-Us, a pet store in Southern Valley Mall. Pets-R-Us had a one-year lease, and rent payments were $2,000.00 per month. Five months into the lease, Jordynne found a better site for the pet store. She notified Southern's manager, vacated the mall, and moved her store to its new location. After two months, Southern was able to re-lease the premises to another retail store, but at a reduced rent of $1,800.00 per month. If Southern successfully sues Pets-R-Us, Southern will likely receive:
$5,000.00 in damages.
Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least
$500.
To win a wrongful interference with a contract case, a plaintiff must prove which of the following elements? Choose 3 answer choices.
- A valid contract existed between the plaintiff and a third party. - The defendant knew a contract between the plaintiff and a third party existed. - The plaintiff experienced injury or damages as a result of the defendant's actions.
What conditions must be met for an offer to be legally accepted? Choose 2 answers.
- Acceptance must be unequivocal with no requests for changes in the offer. - It may only be accepted by the intended offeree or the offeree's agent.
Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take? Choose 3 answer choices.
- An email - An invoice - A check
Which of the following are advantages of operating as a partnership? Choose 2 answers.
- Any partner may add a new partner at any time to help decrease the workload and liability and to bring in more capital. - Forming a partnership is simple and relatively inexpensive.
Ben is very mad at his supervisor because of pay cuts. Ben plots to damage some equipment so his company will have to pay him overtime compensation to repair it. In which of these situations could Ben be found guilty? Choose 2 answer choices.
- Ben walks over to the equipment holding a heavy sledgehammer he brought from home, but at the last minute, decides against hitting the equipment. Instead, he trips and falls, slamming the sledgehammer into a crucial part of the equipment, which ruins the machine. - Ben carries out his plan, but there are no witnesses.
Which of the elements required to prove negligence involve the reasonable person standard? Choose 2 answer choices.
- Breach of duty of care - Duty of care.
Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices.
- Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. - Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use.
Which of the following workers are generally NOT eligible for workers' compensation? Select 3 answers.
- Domestic workers - Agricultural workers - Temporary workers
Officers and directors owe which of the following duties to the corporation? Choose 2 answer choices.
- Duty of Loyalty - Duty of Care
The reasonable person standard applies to which of the required elements to be proved in a negligence case? Choose 2 answer choices.
- Duty of care. - Breach of duty.
Which of the following are considerations of corporate social responsibility? Choose 3 answer choices.
- Ethical treatment of employees and suppliers - Environmental impact of a business - Issues within the community where a business is located
A judge issues a warrant without probable cause. What protection will limit the usage of any evidence that is now gathered? Choose 2 answer choices.
- Exclusionary Rule - Fourth Amendment
An employer reacts to an employee's report of a Title VII violation by cursing and making offensive jokes about that employee and moves the employee to another department. What part of Title VII could apply? Choose 2 answer choices.
- Hostile work environment. - Retaliation.
Sara, a resident of Indiana is involved in a dispute over goods she bought from Jim, a resident of Florida. The amount of damages she is seeking is $70,000. In what court can Sara bring her suit against Jim? (choose all applicable answers - you must choose ALL correct answers)
- Indiana state court. - Florida state court.
In what stages of the criminal process could a jury be involved? Choose 2 answer choices.
- Indictment - Trial
A chain of jewelry stores uses an actress, Felicity Fake, who resembles Rachel Real, a famous actress, to appear in commercials for their stores, with the intent of giving the impression that Rachel Real is endorsing the chain. They dress Felicity in a dress similar to the dress Rachel Real wore in her most famous movie and ask Felicity to imitate Rachel's voice. Rachel Real is insulted by the presentation. For which intentional tort could Rachel sue the company? Choose 2 answer choices.
- Invasion of Privacy - Appropriation
Isabel is 17 years old and wants to stop paying for the use of the local gym, but wishes to continue teaching classes. Her contract with the company includes terms regarding her employment and use of the facility. What must she do to properly disaffirm the contract? Choose 2 answer choices.
- Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. - Isabel must let gym staff know she is terminating the contract.
A product is unreasonably dangerous to consumers when it meets which of the following conditions? Choose 3 answers.
- It is inherently dangerous but is even more dangerous than an ordinary consumer would expect. - The manufacturer failed to adequately warn the consumer about the dangers of the product. - A less dangerous alternative was available but was not used by the manufacturer.
Which of the following are qualities of a non-profit corporation? Select 2 answers.
- Its goal is to earn a profit. - It does not provide dividends to shareholders.
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.
- Lilly's silence is acceptance because the offeree accepted the benefit offered. - Lilly's silence is acceptance because of the parties' past dealings.
What restrictions on business speech are allowed by the First Amendment? Choose 2 answer choices.
- Limitations on advertisements for alcohol - Some advertising venues for tobacco
What are the best remedies for wrongful termination in the case of someone who found another job three months after being fired? Choose 2 answer choices.
- Lost wages. - Lost benefits.
Which of the following are the TWO types of ADR that results in parties voluntarily signing a settlement agreement rather than proceeding to trial? Choose 2 answer choices.
- Mediation - Negotiation
What are the differences between legal and equitable remedies? Choose 2 answer choices.
- One is monetary. - One requires actions instead of damages.
Federal courts have exclusive subject matter jurisdiction over which of the following? Choose 2 answer choices.
- Patent/trademark/copyright cases - Bankruptcies
What is true of corporate political speech? Choose 2 answers.
- Political donations are protected by the First Amendment as types of corporate political speech. - Corporate political speech is protected by the First Amendment.
In general, how does respondeat superior differ for employees versus independent contractors? Choose 2 answer choices.
- Principals are usually responsible for the actions of employees, and more rarely responsible for the actions of independent contractors. - Principals are responsible for the actions of both categories if they are negligent in hiring.
Which of the following are essential elements of a partnership? Choose 2 answers.
- Profits and losses are shared among the members. - All members have equal right to be involved in the management of the business.
What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers.
- Promises exchanged may not be a preexisting duty. - Promises must be made with voluntary consent.
In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices.
- Sales contracts under the UCC - Courts can complete a contract to supply some missing items.
The formation of a partnership without a partnership agreement requires which of the following? Select 2 answers.
- Sharing of management duties - Sharing of profits and losses
What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.
- Subjective personal taste - Objective, reasonable person standard
Which of the following illustrates a financial or non-financial cost of unreported unethical behavior to a company? Choose 2 answers.
- Sweet Home Diner lost half of its business when the community became outraged with the owner for failing to stop the racist social media postings of the restaurant manager. - Employee morale hit an all-time low when Scott, the line supervisor, ignored repeated instances of harassment by certain employees.
What are the main provisions of the Immigration Reform and Control Act (IRCA) enacted in 1986? Choose 2 answers.
- The IRCA made it illegal to hire, recruit, or refer for a fee someone not authorized to work in the United States. - The IRCA provided amnesty to certain groups of immigrants living illegally in the United States at the time.
What is required for a writing to be legally sufficient to form a contract? Choose 2 answer choices.
- The UCC requires that the quantity be included - The writing must provide evidence of agreement
Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices.
- The contract is void if Samuel has been previously determined to be mentally incompetent. - The contract is voidable if Samuel was incompetent at the time the contract was formed.
What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers.
- The enriched party knows about the benefit and keeps it. - One party is being enriched at the expense of the other.
How can the legal concepts of accord and satisfaction apply to negotiable instruments? Choose 2 answer choices.
- The parties can agree to discharge the instrument for less than the stated amount. - The UCC provides debtors a way to prove accord and satisfaction.
What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices.
- The parties can complete the contract. - The contract is voidable.
Why would parties use accord and satisfaction regarding a negotiable instrument? Choose 2 answer choices.
- The parties might wish to avoid a lawsuit. - The parties could wish to end the obligation without further conflict.
What does agency by ratification require? Choose 2 answer choices.
- The principal affirms the agent's entire act, not just a portion. - The principal must have the legal capacity to contract.
Which of the following is required in the Articles of Organization for an LLC? Select 2 answers.
- The principal place of business - The name of the business
What elements are required for an offer to be effective under the common law? Choose 3 answers.
- The terms of the offer must be reasonably definite so that all parties understand them. - The offeror must intend to be bound by the offer. - The offer must be communicated to the offeree.
Clarence sneaks into his neighbor's yard and takes a bike to sell for cash. What crime could he have committed? Choose 2 answer choices.
- Theft - Larceny
In what situation could a party enforce strict performance? Choose 2 answer choices.
- When the parties specifically agree to it in the contract - When the requirement is reasonable
In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices.
- When the unjust enrichment is a relatively insignificant amount of money - If the defendant was unjustly enriched and played a part in deceiving the plaintiff
In which of the following would the business judgment rule not help a manager escape liability? Choose 2 answer choices.
- When they committed an illegal act - When they did not act in the best interests of the corporation
The Economic Espionage Act made the theft of trade secrets a federal crime. Individuals face up to _______ in fines.
1,000,000 WRONG
Alma owns fifty shares of common stock in Alpha Corporation. Alma also owns eighty shares of preferred stock in the same corporation. Alpha Corporation has an upcoming vote for a new director. In the election for the new board member of Alpha, Alma will be able to cast:
50 votes.
Defenses to a claim of trespass to land is to show that the
All of these choices
At what stage in the criminal process does the defendant typically plead guilty or not guilty?
Arraignment
Which of the following is a requirement for the initial formation of a corporation?
Articles of Incorporation
Which mistake is likely to be voidable?
Bilateral mistake
___________________ is law that has to do with wrongs committed against society for which society demands redress.
Civil law
Which of the following would Natasha argue to be an appropriate remedy in this case?
Compensatory and/or punitive damages.
______________________________ refers to the number of procedural devices to obtain information and gather evidence about the case from the other party or from third parties before the trial begins.
Discovery
An employer requires a college degree to work in any position in the company. What part of Title VII could apply?
Disparate impact.
A jury finds Joe not guilty of murder. Investigators have found new evidence proving Joe's guilt, so the prosecutor in the case wants to charge and try Joe again. What prevents the government from doing this?
Double Jeopardy
Franklin tosses a ball up in the air and intends to catch it, yet the ball hits a bystander, Yen, and injures her. Which of the following is correct?
Franklin was negligent.
What factor should a plaintiff consider when deciding which interference tort applies to a situation?
If the plaintiff had a contract with another party who breached the contract.
What rights does a third-party beneficiary to a contract hold in regard to that contract?
If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.
Elvis agrees to provide guitar lessons to Angela's niece for three months for $600. Angela decides her niece really is not interested in guitar lessons, and assigns her rights under the contract to Jose, so Jose can use the lessons for his daughter. When Jose contacts Elvis to set up the first guitar lesson for his daughter:
Jose cannot enforce the contract against Elvis because the contract is for personal services.
For what types of dangers does The Haunted Witch Trials have a duty to warn its patrons?
Known and unknown dangers
__________ engages in financial transactions to conceal the identity, source, or destination of illegally gained funds.
Money laundering
Which of the following is required to create a sole proprietorship?
Nothing
Which of the following is a disadvantage of operating as a partnership?
Partners may suffer financial loss if the partnership is not profitable.
Roland and Alfreeda enter into a written agency agreement in which Alfreeda will represent Roland as his agent to obtain acting jobs for Roland. No termination provisions are included in the written agreement. If Roland wishes to terminate his agreement with Alfreeda:
Roland must do so in writing because the agency agreement is in writing.
Riki contracts to buy a franchise from Sushi Company. In this contract, as in most franchise contracts, the determination of the territory to be served is made by
Sushi.
Which act is violated if an employer refuses to provide health insurance to pregnant females due to the increased cost associated with their pregnancy?
The Pregnancy Discrimination Act
What is required to form an agency relationship?
The agent and principal must agree to enter the relationship.
What was the duty of care that The Haunted Witch Trials owed to its patrons?
The attraction owes a duty to act with special care because patrons are invitees.
What is the result of a contract in which both parties are wrong about a material fact of the contract?
The contract is voidable.
What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?
The contract must be objectively impossible to perform within one year.
Why would a superseding cause relieve a tort defendant of liability?
The defendant could not have reasonably foreseen the event.
What must a plaintiff show to be awarded a quasi-contract in a lawsuit?
The defendant was unjustly enriched.
You and a friend are taking a road trip during summer break and decide to stop for lunch. You choose your favorite fast food restaurant. You both order a burger, fries, and a soft drink and chow down. In the afternoon, as you are continuing your journey, both of you begin to feel stomach cramps. They get worse so you decide to go to an urgent care clinic. The doctor there diagnoses you both with food poisoning and prescribes medication. You fill the prescription, check into a hotel, and experience several days of agony. You later discover the cook at the restaurant undercooked the beef in your burger, which caused your food poisoning. You sue the restaurant. Is the restaurant liable to you or is only the employee liable?
The restaurant is liable.
Assume that a state does not require LLCs to publish their operating documents publicly. How might this impact a third-parties' (like Tree Down) right to recover contract damages from an LLC if the member's (such as George or Stan) authority to bind the company was rescinded in a nonpublished operating agreement?
Tree Down should take additional steps to ensure members claiming to act on behalf of an LLC have actual authority, if they want to be able to recover contract damages from the LLC.
A principal who creates an exclusive agency and then competes with the agent can be held liable for the agent's lost profits or sales.
True
With respect to consideration, a bargained-for exchange distinguishes a contract from a gift.
True
What type of acceptance requires an affirmative action for the offeree to accept that offer?
Unilateral contracts
Tyler, a citizen of Utah, files a suit in a Utah state court against SeaCoast Sales Corporation, a Washington state company that does regular business in Utah. Utah state court would have jurisdiction over SeaCoast because of:
Utah would never have state jurisdiction over SeaCoast.
The ethical model that focuses on the outcome of a decision, as opposed to the motives behind the decision, is:
Utilitarianism
For quasi-contract to apply, the following must apply (choose all applicable answers - you must choose ALL correct answers)
WRONG - the party receiving the benefit would be unjustly enriched if allowed to retain the benefit without paying. - the party conferred the benefit with the expectation of being paid
Assume Texas does not have any state laws or case precedent protecting employees from discipline or discharge based on their off-duty conduct. If the CEO witnesses Pierre eating at a local fast-food establishment on his day off, may the CEO fire Pierre for-cause?
Yes, because the right to eat fast food is not protected by any federal or state statute.
Are Sally's actions enough to possibly make her liable for racketeering under the Racketeer Influenced and Corrupt Organizations (RICO) Act?
Yes, because through her actions she participated in Nico's racketeering activity.
Is a principal liable for the tortious actions of the principal's agent?
Yes, but only if the principal authorized the tortious conduct.
Can Mark compel the bank or the app store to provide additional information about the creator of CalmDown in order to determine the creator's location and potential assets?
Yes, he can subpoena records during the discovery process from both, but the bank and the app store may ask the judge to deny the request or limit the request due to privacy concerns.
Isaiah wants to build a new shopping complex. He is afraid that once news gets out about his plans, the price of the land where he wants to build the shopping complex will increase in price. Isaiah, therefore, hires Landon to purchase the parcels of land for him and to keep the fact that Landon is working for Isaiah a secret. Landon enters into a written contract for the sale of the land with Miriam and does not tell Miriam that Landon is an agent for anyone else on the deal. Isaiah refuses to buy the property from Miriam. Is Landon obligated to perform the contract with Miriam?
Yes, he is because there was an undisclosed principal who failed to perform.
Assume that when Tristan made the agreement with the PR Firm, he failed to read the agreement closely. Instead of agreeing to a one-time payment of $20,000, Tristan actually agreed to monthly payments for $20,000 over the course of the next year. If a court upholds the contract as being valid, could Vlad and Lea's personal assets be at risk if it is determined they are partners?
Yes, they can be held personally liable if the partnerships assets are insufficient to cover the debt.
You plan to open a tattoo parlor, and you are trying to decide the best form of business entity to use. You decide on a sole proprietorship (a solely-owned business), because you want all the profits from the business and you don't want anyone telling you how to run your business. Do you think there might be any disadvantages to creating your tattoo parlor as a sole proprietorship?
Yes. As a sole proprietor, you can be held personally liable for all the business's debts, and your options for raising capital will be limited.
You haven't used your professional camera in a while, so you offer to sell it to your friend who just started photography classes at the local college. Later in the day, you start having second thoughts. You call your friend and tell her that you changed your mind, and the camera is not for sale after all. What do you think would happen if your friend tried to enforce your offer and make you sell her the camera?
Your friend cannot force you to sell her the camera because you let her know you changed your mind before she accepted the offer.
Jan tells Lee she will pay him to babysit her son Mark on weekday evenings for six months. Lee agrees. Jan and Lee have formed
a bilateral contract.
Sam, driving under the influence, causes a car accident that results in the death of Tanya. Sam is arrested and charged with a crime punishable by imprisonment for more than a year. This crime is
a felony.
Andy causes a disturbance at Brew Pub. He is arrested and charged with disorderly conduct; a crime punishable by imprisonment up to one year. This crime is
a misdemeanor.
Qin applies for a job at Rocket Science, Inc. He passes a test to determine which applicants are eligible for hiring, but Rocket discards the results, and Qin is rejected. To support a claim for discrimination against the employer under Title VII of the Civil Rights Act, Qin must be a member of
a protected class.
Don is a shareholder of Energy Renew Inc. When the directors fail to undertake an action to redress a wrong suffered by the firm, Don files a suit on its behalf. Don's suit is
a shareholder's derivative suit.
The tort of misrepresentation involves reliance on
a statement of fact.
Denny works for Engineers P.A. While working on an Engineers project, Denny is injured. Under state workers' compensation laws, he will be compensated only if the injury was
accidental.
To meet the standard for the duty of care, a person must:
act in good faith and with the judgment of an ordinarily prudent person.
Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn. Jess orally agrees to do so. This is an agency by
agreement
A member-managed LLC means:
all members participate, and decisions are made by majority vote.
Burgers & Brew Inc. prepares its articles of incorporation. The articles are likely to include
all of the choices.
Rye is an employee of Steel Mill, Inc. Steel's employee manual states that workers, such as Rye, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is
an exception based on contract theory.
Rosario is a chef and caterer who hires out on a per-project basis to companies with on-location work sites, as well as to the hosts of banquets and other events. In this capacity, Rosario is
an independent contractor.
Luke puts his motorcycle up for sale via a post on an online auction site. This is
an invitation to negotiate, not an offer.
Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as
anticipatory repudiation.
Daisy enters into a contract with Evan for the construction of a Fast-Food Café, according to a certain schedule. The parties perform some preparatory steps, but Evan materially and willfully fails to begin work on the specified date. To rescind the contract, Daisy must show that the parties can
be restored to the status quo.
Onida is an employee at Kale's Manufacturing Company. The company makes bicycle tires, and Onida's job is to inspect the inner tubes before they are inserted into the tires. She recently noticed that the inner tubes are thinner than the safety specifications require. Onida tells her supervisor, Tom, about the problem, and is instructed to ignore it because these thinner tubes save the company money. Onida cannot ignore this problem in good conscience, so she tells Tom that if he is not going to report the problem, she will. Tom then fires Onida. Kale's Manufacturing Company is in an employment-at-will state. If Onida brings a lawsuit for wrongful termination, she will likely:
be successful because she was fired for an unlawful reason.
Gerald has been a sales representative for Goldsmith's Department Store for the past five years. When Gerald was hired, the general manager told Gerald that he would have a job there as long as he made $3,000 in sales each month. Every month, Gerald has exceeded that level in sales, so he is surprised when his supervisor calls him into the office and fires him. Gerald tells the supervisor about the promise from the general manager not to fire him as long as his sales were $3,000 each month. The supervisor responds by telling Gerald that the law in this state is employment at will, so he can fire him at any time for any reason. If Gerald sues Goldsmith's for wrongful termination, he will likely:
be successful because the general manager orally promised him that he would remain in his job as long as his sales stayed at a specific level, and he has maintained that level.
What is the prosecutor's burden of proof in a criminal case?
beyond a reasonable doubt
Who is liable to third parties for damage caused by an agent's tortious conduct if the principal had directed the agent to take that action?
both the agent and the principal
Miriam _________ sue the trucking firm in both Georgia and Florida state courts.
can
Good intentions are not a defense against conversion, and someone who buys stolen goods
can be sued for conversion even if the buyer did not know that the goods were stolen.
Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide when in reality, he has never been in the canyon. Most likely, Beryl
can rescind the deal based on fraudulent misrepresentation.
Which of the following defenses to negligence is used to assign liability proportionately to the level of harm from each party's own conduct?
comparative fault
Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products. The company cannot compete with Dian in that territory under the duty of
cooperation.
Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be
discharged.
Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation, and when present fails to adequately do her job. This
discharges the employer from the contract.
Anton tells Brooke, who has no knowledge of Shakespearean comedy, that he will tutor her in the subject for $50. As an offer, this is
effective.
Bart works as an accountant for Good Times Restaurant. He is responsible for not only keeping the books current but also for making daily bank deposits for Good Times. Bart has been struggling financially, so he decides to put some of the daily bank deposits for Good Times into his personal account, instead of the bank account of Good Times. Every day, for one month, he takes ten percent of the cash receipts from Good Times and deposits them into his personal checking account. When the manager of Good Times discovers what Bart is doing, she contacts the police, and Bart is arrested. Bart can be found guilty of:
embezzlement
Freedom of religion is divided into two major categories. The first prevents the government from __ a state-sponsored religion, promoting or preferring religion.
establishing
Which of the following activities is an example of corporate social responsibility?
establishment of a foundation that funds high school educational initiatives
Under the U.S. Constitution, Congress has the power to regulate
every commercial enterprise in the United States.
Kari and Lillian, who are citizens of Mississippi, are involved in a case related to the adoption of their child. Regarding jurisdiction of this case, Mississippi state courts have:
exclusive jurisdiction.
Bernard and Hilda have both worked for Home Refinance Inc. for many years. Bernard has been with the company for fifteen years, and Hilda has been with the company for nine years. Both Bernard and Hilda are loan managers for the company, so they perform the exact same duties. Hilda discovers that Bernard's salary is twenty percent higher than hers. She cannot believe that she is paid less for the same job just because she is a woman. If Hilda sues the company over the disparity in pay, Hilda's lawsuit will likely:
fail if Home Refinance can prove the difference in pay is due to Bernard's seniority.
Chuck signs Dolly's name, without her authorization, to the back of her paycheck, which was issued by Eastside Market. This is
forgery
The second component of religious freedom guarantees that people can believe what they want to believe and is called the __ clause.
free exercise
Mia contracted with Greencare Lawn Service for a pest treatment on Mia's lawn for $1,000. Pat lives next door to Mia. Greencare mistakenly treats Pat's lawn instead of Mia's. Pat watched them perform the treatment while looking through the window of his living room, but did not go outside and stop them. When Greencare seeks payment from Pat, Greencare can probably receive:
from Pat an amount less than the contract amount that will reimburse Greencare for expenses incurred, in order to avoid unjust enrichment.
Through which proceeding do prosecutors obtain an indictment?
grand jury
Kathy is a director of Line Production Inc. As a director, with respect to the corporation, Kathy is expected to subordinate
her personal interests to the corporation's welfare.
The triple bottom line looks at all of the following except
how decisions impact relations with foreign nations.
Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit by also using ethical behavior:
if customer service and reviews are good.
Employers are not required to make accommodations for employees:
if that accommodation causes an undue hardship on the business.
Under self-defense, a person may use whatever force necessary if they fear ________.
imminent danger
A shareholder has the right to inspect the corporate books, if done:
in good faith and for a proper purpose.
Hal, a resident of Illinois, owns a warehouse in Indiana. A dispute arises over the ownership of the warehouse with Jack, a resident of Kentucky. Jack files a suit against Hal in Indiana. Regarding this suit, Indiana has
in rem jurisdiction.
When adopting duty-based ethics, corporations often describe the values and duties they owe:
in their mission statements and strategic plans.
What is the medium level of scrutiny, sometimes called heightened scrutiny, that a court will use when deciding a case that involves a quasi-suspect class?
intermediate scrutiny
With respect to what society will tolerate, a company's compliance with the law, and no more, is
irrelevant.
Before any court can hear any dispute between Miriam and the trucking company, it must have _____ over the person or company against whom the suit is brought against or over the property involved in that lawsuit.
jurisdiction
After class one day, you are in a hurry to meet a friend and accidentally leave your textbook in the classroom. You soon realize you do not have your book and return to the classroom to get it. Unfortunately, the book is gone. You go to lost and found, but no one has returned it. Later, you find out that someone took your book and sold it. What crime was committed by the person who took your book?
larceny
A partnership in which the liability of all the partners is limited to the amount of their capital investment in the firm is called a:
limited liability limited partnership.
A constitution sets forth a government's
limits and powers.
Accounting LLC is a member-managed limited liability company. Unless the members have agreed otherwise, all decisions with respect to the firm's business are made by
majority vote.
Which of the following is a duty of both corporate directors and corporate officers?
making a full disclosure of potential conflicts of interest
Raul uses social media to post links that, when clicked, secretly install software on others' computers without the owners' knowledge. Raul's software is designed to harm or disrupt the computers. This program is
malware.
If young children are likely to be attracted to the property by some object such as a swimming pool or a sand pile, and are injured, the landowner
may be held liable under the attractive nuisance doctrine.
If a trial court judge is deciding an issue that has never come before the court (a case of first impression), they:
may create new precedent.
Aircraft Corporation employs mechanics, programmers, outside salespersons, and professionals, including pilots. Employees exempt from the Fair Labor Standards Act's overtime provisions include all of the following except
mechanics.
Liam is Neely's supervisor. During Neely's yearly written evaluation, Liam states that Neely has not performed her job well at all, constantly comes in late to work, and stirs up trouble with the other employees. Neely is understandably upset and wants to sue Liam for defamation. If Neely files a lawsuit against Liam for libel, Neely will probably:
not be successful if Liam's comments on Neely's written evaluation were made in good faith.
Jill enters into a contract to buy a certain office building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to
obtain the exact bargain promised in the contract.
A foreign corporation is:
one that was incorporated in a different state.
The Racketeer Influenced and Corrupt Organizations Act has become an effective tool in attacking
organized crime
A ________________________ is a legal authority that a court may consult for guidance, but that is not binding on the court.
persuasive authority
What is a document called that is filed with the court to state the position of the plaintiff or the defendant in a lawsuit and ask for relief from the court?
pleading
Common law rules develop from
principles underlying judges' decisions in actual controversies.
John, a law enforcement official, monitors Kelsey's Internet activities—e-mail and website visits—to gain access to her personal financial data and student information. This may violate Kelsey's right to
privacy.
Title VII The Civil Rights Action of 1964 applies to
private and some federal government employers.
Common shareholders have the right to vote on:
proposals for fundamental changes affecting the company such as mergers or liquidation.
Rosa, who operates a Street Tacos restaurant in her apartment, is charged with criminal violations of the local health and building codes, state license regulations, and federal environmental statutes. To obtain a conviction, the prosecution must
prove beyond a reasonable doubt that Rosa committed every essential element of an offense.
Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to
provide Soapy with funds for its loss of the bargain.
_______ is often called a victimless crime, because it only harms the offender.
public order
Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential?
quantity of items being purchased
What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement?
quantum meruit
In order to receive unemployment benefits, Evander could not ___, but instead had to ____
quit voluntarily, be terminated
What is the lowest level of review by a court to determine whether a government action unconstitutionally infringes on protected rights?
rational basis review
In selling a warehouse, Riley, a real estate broker, tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building. Sam's best course of action is most likely to
recover damages or rescind the contract to buy the building.
Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will pay $75,000." Hanna has
rejected the offer and made a counteroffer.
AI Medical, Inc., is a private, for-profit corporation that is owned by six shareholders who are not members of the same family but are personally known to one another. They also serve as the directors and officers. To prevent a majority shareholder from dominating the firm, the corporation may
require more than a majority of directors approve any board action.
What is the primary purpose of the Statute of Frauds?
requiring written evidence of agreements concerning important transactions
Under _________, a court may impose criminal liability on corporate officers regardless of whether they participated in, directed, or even knew about a given criminal violation.
responsible corporate officer doctrine
Under ______, parties are restored to their original position prior to loss or injury, or placed in the position they would have been in had the breach not occurred. This often involves returning goods, property, or funds.
restitution
Luke takes temporary family leave from his job at Metal Works Corporation to arrange for childcare and deal with financial and legal matters when Nancy, his spouse, a U.S. Marine on active duty, is deployed overseas. On Luke's return from the leave, Metal Works must
restore him to his same position or a comparable position
The offeror's act of withdrawing an offer is referred to as:
revocation.
Landscape Supply agrees to provide Delta Lawn Service eight pallets of sod for the price of $260 per pallet. The agreement contains the following provision: "This Agreement may not be amended or modified except by an instrument in writing signed by the party to be charged with such amendment or modification." Delta decides it now needs 160 pallets of sod, and Landscape is willing to reduce the price to $255 per pallet because of the increased amount. Delta and Landscape can accomplish this change to the contract by:
signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
Johnson lives near Dollywood, a popular theme park in Tennessee. Johnson decides to begin a new money-making venture selling screen printed t-shirts from a booth just down the road from the theme park, to take advantage of the traffic that flows by on its way to the park. Johnson's t-shirts, however, will not be Dollywood-themed t-shirts; they will be Johnson's own creations. Johnson's daughter Susan helps him in his new venture by manning the booth from time to time, but Johnson has total control over everything about the business—from ordering the t-shirts, paying the bills, pricing the t-shirts, paying the taxes on his sales, and receiving all the profits from the venture. Even though Johnson put no thought into what kind of business venture he was creating when he started his business, Johnson has effectively created a:
sole proprietorship.
A person must have _______________________________, or a sufficient "stake" in the matter to justify seeking relief through the court system.
standing to sue
Nevis and Olsen want to do business as a corporation—Pastries & Pies Inc. The procedure for forming this firm is prescribed by
state law.
Evander's company did not ___ him; instead, it allowed him an opportunity to continue working, but for the military division.
terminate
Anne Marie has surgery to have her gall bladder removed at Mt. Sinai Hospital. The surgery goes well, but several days later, Anne Marie experiences severe abdominal pain. X-rays reveal a small surgical instrument in Anne Marie's abdominal cavity. Anne Marie has to endure another surgery to remove the instrument. Anne Marie sues the surgeon for negligence. To win her negligence lawsuit against the surgeon, Anne Marie must prove:
that a reasonable surgeon would not have left a surgical instrument in her abdominal cavity.
Which amendment to the U.S. Constitution is the primary source of equal protection provisions in employment law?
the Fourteenth Amendment
At the federal level, the primary legislation that protects workers from dangerous conditions on the job is:
the Occupational Safety and Health Act (OSHA).
Which of the following is the provision of the U.S. Constitution that establishes federal law precedence over state law?
the Supremacy Clause
Gary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Helen enters into a contract to buy "Gary's ATV" for $750. Gary believes, in good faith, that he is selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV. In this situation
the contract is not enforceable
Savannah is shopping at King Toys Inc. when a large box of toys falls from a top shelf and strikes her, causing severe injuries. Savannah sues King Toys Inc. and each of its shareholders individually for her injuries. If Savannah's lawsuit is successful, she will be able to recover from:
the corporate entity only.
Ellen offers to sell her 1997 Mustang convertible to Fred for $2,000. Fred agrees to pay $2,000 for Ellen's Mustang. Before Fred picks up the Mustang, Ellen discovers that the Mustang is considered a classic car and is worth much more than $2,000. Ellen refuses to sell the Mustang to Fred, stating that the consideration is insufficient. If Fred tries to enforce the deal by taking Ellen to court:
the court would probably enforce the deal because there was valid consideration on both sides.
Ellie, Josie, and Dylan are partners in a car dealership. Ellie gives notice to Josie and Dylan that she wants to withdraw from the partnership, and Josie and Dylan decide to continue the partnership without her. Shortly after Ellie leaves the partnership, she has lunch with an old friend, Justin. Justin has been looking for a new car and asks about the price of a particular car he saw on the website of the dealership, because he does not know that Ellie has left the partnership. Instead of telling Justin that she has left the partnership, Ellie quotes Justin a price for the car, and Justin accepts. When Justin goes to the car dealership to complete the deal:
the dealership must honor the deal unless it has provided Justin notice of Ellie's dissociation.
Bread Company hires Craig to sell the company's products in a certain area. Bread agrees to pay Craig a salary, plus commission, for a trial period. They also agree that he can sell using any methods and during any hours that seem appropriate. The key factor in whether Craig is Bread's employee is
the degree of the employer's control over the details of the work.
Roz, a director of Soy Inc., is specially trained in petroleum trading. Soy's board approves several deals in which the company pays too much for soybeans. Roz approves all the deals without first reviewing them. Roz is most likely liable for breach of
the duty of care.
Under the principle of rights, the term "rights" refers to:
the fundamental rights of human beings.
Omar asserts that a deal he entered into with Pat to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Omar's best defense to the enforcement of this contract is
the lack of a party's voluntary consent.
Genna and four others are establishing a business to create monogrammed items of personal clothing to sell to the general public. Genna is concerned about entering into business with others and possibly being liable for their actions, so she convinces the others that they should incorporate. After doing some basic research on how to incorporate a business, Genna starts preparing the articles of incorporation. At a minimum, Genna must make sure that the articles of incorporation include:
the name of the corporation, the number of shares of stock the corporation is authorized to issue, the name and street address of the initial registered agent of the corporation and his or her registered office, and the name and address of each incorporator.
Who is liable for contracts entered into on behalf of the corporation before the corporation is formed?
the promoter
Welding Corporation makes a good faith attempt to incorporate but there is a defect in its incorporation. Welding undertakes business as a corporation. In this circumstance, the firm's existence may be challenged by
the state.
Leah, a citizen of Maine, obtains a federal license to operate a commercial fishing boat in a certain area off the Maine coast. The Maine state legislature enacts a law that bans all commercial fishing in that area. Most likely, the state law violates
the supremacy clause.
Olin is a partner in Precision Plumbing. When the partners decide to dissolve the firm, Olin collects and distributes the assets. This results in
the termination of the firm's legal existence.
When a publication denies or casts doubt on another's legal ownership of property, and the property's owner suffers financial loss as a result, this is
the tort of slander of title.
Franny is charged with a crime. Almost all federal courts and some state courts would not hold Franny liable if, at the time of the offense, as a result of a mental disease or defect, she lacked substantial capacity to obey the law and to appreciate
the wrongfulness of her conduct.
Lola, Jacy, and Tate plan to create a company to manufacture bicycles. After reviewing the pros and cons of the various forms of business enterprises, they decide to create a limited liability company. To create a limited liability company:
they must file a certificate of organization with the secretary of state and should create an operating agreement, although an operating agreement is not required.
Dain is a limited partner in Eco Baits, a pest control service organized as a limited partnership, which cannot pay its debts. Dain is liable for the debts
to the extent of his capital contribution to the firm.
Huan is a shareholder of Insulation Inc. When the directors fail to undertake an action to redress a wrong suffered by the firm, Huan files a suit on its behalf. Any damages recovered by the suit will go to the firm's
treasury.
The federal and most state judicial branches have at least these three levels in the court system:
trial court, intermediate appellate court, and highest appellate court.
A benefit corporation is designed to make a profit and thereby provide long-term shareholder benefit.
true
In ordinary circumstances, when the corporate veil has not been pierced, a shareholder may be liable for:
unpaid amounts on the shares held by that shareholder.
If the court considers the state's reasons sufficient, it is likely to find that the regulation that violates Evander's religious freedom is _____ if the regulation is the only way to meet that government objective.
valid
What type of contract exists when at least one party has the option of canceling it?
voidable
What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing?
voidable
Sal is mentally incompetent but has not been adjudged by a court to be incompetent. Sal enters into a contract with Tony for the cleaning and maintenance of Uptown Office building. Most likely, the contract is
voidable if Sal did not comprehend the consequences.
Freddy carries his books and school supplies in a large backpack. The hallways at Freddy's school are always very crowded. One day, Freddy turns around quickly to talk to a friend, and a sharp pencil that is sticking out of his backpack gouges Lorraine in the eye. Lorraine ends up losing the use of her eye. If Lorraine sues Freddy in a negligence action, the standard the court will use to determine whether Freddy is liable is:
what a reasonable person would have done under the circumstances.
Tom is seventeen years old. Under the Fair Labor Standards Act, he cannot
work in a hazardous occupation.
A ___________________ is an order issued by the Supreme Court to a lower court requiring that court to send the record of the case for review.
writ of certiorari
Intoxicated, Efron enters a contract for the sale of his business, Freight Dispatch, to Gretel for less than its market value. This contract is enforceable if, at the time,
Efron understood the legal consequences.
Who can terminate an agency relationship?
Either the agent or the principal may terminate.
An intentional tort does not require intent.
False
Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. The party entitled to sue Midwest for its failure to honor the terms of the contract is:
Laurelei, because she is a donee beneficiary.
You have had a grudge against the owner of a local barbeque restaurant for years. You went to high school together, and he is always acting like he is better than you because even though you both own barbeque restaurants, his business seems to be more popular than yours. You come up with a plan to get back at him by spreading false rumors that his barbeque made a lot of people sick. That'll teach him! What do you think might happen if you go through with your plan?
The owner of the restaurant could sue you, and you may have to pay him money.
Which of the following scenarios illustrates a business world without agency relationships?
The owner prepares the tax returns.
Avery wants to go into business as Boom! to make and market fireworks. When deciding which form of business organization would be most appropriate, Avery would normally take into account all of the following except
the forms of competitors' business organizations.
The firm's headquarters are in Georgia, although the company does business in Florida, so ______ in personam jurisdiction over the trucking firm.
Georgia and Florida have
Criminal negligence must have intent in order for there to be a liability.
True
What is the liability of the principal for the actions of a subagent (an agent of an agent)?
When an agent is authorized to hire a subagent, the principal is as liable for the acts of the subagent as he is for the acts of the agent.
Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez
does not have to pay Josh.
A contract for an illegal purpose is:
void
What implied terms do all contracts include? Choose 2 answers.
- an implied covenant of good faith - an implied covenant of fair dealing
Miriam would likely want to sue the trucking firm in Florida because: It is ______ She can better research ________
- closer to her home - local lawyers
In the United States, who creates federal statutory law?
- congress - State legislatures
What are the fiduciary duties of an agent to her principal? Choose 3 answers.
- indemnification - obedience - loyalty
Which of the following are rights of common shareholders? Choose 3 answers.
- voting on matters such as election of directors and proposals for mergers or liquidation - transferable ownership - opportunity to inspect corporate books and records
What situation would NOT be regulated by the federal government under the Commerce Clause?
A state requiring lawyers practicing in the state to be licensed
Mateo is sixteen years old and just got his first job bagging groceries at Harry's Market, a local grocery store. During the school year, Mateo works limited hours after school and on the weekends. Now that school is out, Harry's Market increases Mateo's hours to six days a week and eight hours a day. Mateo's mother Isabel is concerned about Mateo working such long hours. She knows there is a federal law, the Fair Labor Standards Act (FLSA), that protects children from working long hours and too many days per week. When Isabel raises the issue with Mateo's supervisor, Mateo's supervisor explains to Isabel that:
under the FLSA, children who are sixteen or seventeen years old may work unlimited hours as long as they work in nonhazardous jobs.
How much time off does the Family and Medical Leave Act (FMLA) provide?
up to 12 weeks of unpaid time off
Salsa, Inc., employs three hundred workers at four locations in two states. Under federal law, Salsa must provide each employee, during any twelve-month period, family or medical leave of
up to twelve weeks.
Juan owns a manufacturing company that wants to expand its line of plastics. To expand and still make a profit, pollution into the local river will be significantly increased. In evaluating his decision, Juan tries to determine whether expanding the company's line of plastics would produce the greatest amount of good for the greatest number of people. In doing so, Juan is following the ethical principle known as:
utilitarianism.
Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers.
- contracts for the sales of land - collateral promises to pay the debt of another person - promises made in consideration of marriage
To assess the fourth factor, Grey should evaluate how much it might _____ the company to continue to test until the salmonella result is negative. Grey's approach to profits in making this decision seems to be _____ profit maximization. In this case, Grey should consider not just the ______ of testing, but also the _____ of potential lawsuits or settlements.
- cost - short run - cost - cost
White-collar crime, which is usually committed by corporate or government officials, typically involves crimes committed for financial gain, such as: Choose 2 answers.
- embezzlement. - mail and wire fraud.
An overemphasis on this, is the most common reason for ethical problems in the workplace:
short-run profit maximization.
When there is a direct conflict between a federal law and a state law, both laws are rendered invalid.
False
Which statement is true about creating a sole proprietorship?
No documentation is required to create a sole proprietorship.
Can Ernesto's Auto Body Shop be held liable for money laundering and receiving stolen goods?
No, for either.
May the government terminate a government employee who speaks out against policies and procedures?
No, if the matter is one of public concern.
For some time, the police have suspected Abbie of selling drugs out of her apartment, but the police have not been able to gather any concrete evidence with which to prosecute Abbie. One night, the police decide to try a knock-and-talk procedure, where the police just knock on Abbie's door and see if Abbie will allow them inside. Abbie refuses to give consent for the officers to enter after they knock, but the police officers push past Abbie anyway. Once the officers are in the apartment, the officers see drugs in plain sight, so the police seize the drugs and arrest Abbie for possession with intent to sell. At Abbie's trial, can the drugs be entered into evidence?
No, the drugs cannot be admitted into evidence at trial because they were illegally obtained.
In what situation is a minor most likely to be able to terminate a contract?
When a minor orders books for school
Where should Articles of Incorporation be filed?
With the state
no duty to sell the house, but if Julianna does attempt to sell the house, she owes Marlo the duty to use reasonable diligence and skill in performing the task.
Yes, Ruby has violated a principal's duty of cooperation and may be liable to Grover for Grover's lost profits.
Heber, Irma, and Jon apply to work for Kitchen Chicken, Inc., in Louisiana. These individuals' eligibility to work must be verified by
Kitchen Chicken.
The corporation's internal rules of management are the
bylaws.
You recently had an accident on the job. Some equipment fell on you causing a serious injury, and your medical bills alone are likely to be over $85,000. You claim an outside vendor who was working on the equipment that day created the problem that caused the injury, and you want to sue. You live and work in Texas, and the outside vendor is a resident of Oklahoma. Where do you think you should file the lawsuit?
in either state of federal court
What is Vlad's best argument for why Lea should not be considered a partner?
Lea did not participate in the management of the business. She merely made what amounts to a loan to the company.
What is the difference between legal remedies and equitable remedies for breach of contract?
Legal remedies are monetary while equitable remedies are non-monetary.
Kyla replaces Lomax in his job at Motor Corporation. Lomax believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act to apply
Lomax must be forty years of age or older.
How does the punishment for a misdemeanor differ from the punishment for a felony?
Misdemeanor fines are lower and imprisonment is usually limited to less than one year in jail.
What defense, of the following, may Sally potentially raise on charges of receiving stolen property, if the parts she bought from Nico were, in fact, stolen?
Mistake of fact, because she didn't know for sure they were stolen.
Which situation would be considered sufficient consideration for a contract to exist?
Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.
Rosa introduces Sal to her friend Trey as "my associate." Sal purports to act as Rosa's agent in a business transaction with Trey. If Rosa is liable for Sal's actions, it will be because their relationship is
an agency by estoppel.
With respect to different types of transactions, including ordinary loans, the purpose of a usury statute is to
set a maximum rate of interest.
Karishma and Stephen, co-owners of Roundtree Corporation, are discussing a new benefits package they are considering for their employees. The proposed plan is more expensive for the company than the current plan but will offer better benefits to the employees. Stephen wants to decide based solely on the effect on the owners of the corporation, while Karishma's position is that the employees should be taken into consideration as well. Stephen is more concerned with the _____________ theory of management, and Karishma is more concerned with the __________ theory of management.
shareholder; stakeholder
Elton is a state representative for the North Dakota legislature. Recently, Elton and his colleagues in the legislature proposed a law that would increase the penalty drivers would have to pay if they pass a stopped school bus. The type of law that Elton and his colleagues will enact is known as:
statutory law.
After all pleadings are filed and discovery is completed, a party may ask the judge to rule in their favor on the basis that there are no genuinely disputed facts and the judge need only rule on the law. The motion asks the court for a:
summary judgment.
Alfonso plays basketball for Hope County High School. His team makes it to the state tournament, where they play their archrival, Duvall County High. After an intense game where tempers run high, the Hope County team wins. While walking home from the basketball game, Alfonso is confronted by George, a member of the Duvall County team. George pushes Alfonso, causing him to fall to the ground. Enraged, Alfonso pulls a gun from his gym bag and shoots George in the chest, killing him instantly. Alfonso is arrested and charged with murder. Alfonso claims he shot George in self-defense. At trial, Alfonso's claim of self-defense is likely to be:
unsuccessful, because Alfonso used excessive force.
A company exhibits responsible corporate citizenship when it:
uses its wealth and influence to benefit society as a whole.
Under which theory of ethics would a decision be ethical if it provides the greatest benefit for the largest number of individuals?
utilitarianism
The reasonable person standard can vary based on what factors? Choose 2 answer choices.
- Facts and circumstances of the situation. - The occupation of the defendant.
Partners have which of the following duties? (Select 3 answers)
- Fiduciary duties - Record keeping - Capital contribution
Miriam would likely NOT want to sue the trucking firm in Georgia because she would need to: Get a lawyer in _________ Make multiple trips to _________ Have ________ travel to Georgia
- Georgia - Georgia - witnesses
What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.
- He or she acted in good faith. - The breach was not intentional.
At the first meeting of corporate shareholders, what business is normally conducted? Select 2 answers.
- The election of the board of directors - The adoption of corporate bylaws
What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices.
- Whether the court will discharge the contract - The level of the performance of the contractual obligations
Duty-based ethical standards are most likely to derive from (choose all applicable answers - you must choose ALL correct answers)
- a religious reasoning. - philosophical reasoning.
What type of speech does not receive First Amendment protections? Choose 3 answers.
- threats to the president of the United States - obscenity - speech that incites lawlessness
Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract:
Matilda may rescind the contract on the grounds that she signed the contract under duress.
Which type of lack of capacity is easiest to prove?
Minor status
Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers. The company closely supervises its sales reps and dictates their schedules. With respect to third parties, Nora is
an employee and agent.
Orin works at Pumps Inc. He works in the company's engineering department, interacting with third parties only to discuss technical issues. With respect to third parties, Orin is
an employee only.
Ray is a delivery driver for Sicilian Pasta Company. Ray does exactly what the company tells him. Ray is
an employee.
Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one-year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes
an offer and an acceptance.
Cornel and Deanna resolve their dispute over the destruction of Cornel's real property due to Deanna's excavation for an irrigation pond, by having a neutral third party render a binding decision. This would be:
arbitration.
Owen offers to sell his motorcycle to Julian for $5,000. After he makes the offer, Owen has second thoughts. Owen can revoke the offer to sell his motorcycle to Julian:
as long as Julian has not yet accepted the offer.
Cass, a certified public accountant, agrees to perform an audit for Drone Distribution, Inc. These parties are most likely to follow the rules of contract law in order to
avoid potential disputes
In contrast to federal courts, state courts have what kind of jurisdiction?
broad
For ________ to succeed as a defense, both the suggestion and the inducement must take place.
entrapment
What is the system of government called in which states form a union and share sovereign power with the central government of the union?
federalism
Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is
received.
Reese contracts to sell her Spicy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely
reform the contract to make the distance and time limits reasonable.
Suva is an agent for Tax Accountants, Inc. On the firm's behalf and at its request, Suva pays Uzo for specially coded software. Suva's right to obtain the amount of the payment from Tax Accountants arises under the duty of
reimbursement.
If an employee reports illegal behavior of a publicly traded company and is later terminated because of it, under Sarbanes-Oxley they may be entitled to:
reinstatement, back pay, and attorneys' fees.
Gobi is an employee of Haz-Mat, Inc. He refuses a transfer to a Haz-Mat department in which several employees suffered serious injuries from exposure to hazardous materials. Under the Occupational Safety and Health Act, Gobi may be
entitled to protection from discharge.
Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have?
executory
Title VII of the Civil Rights Act applies to employers and labor unions with at least
fifteen employees or members.
A person may be subject to which of the following penalties for crimes committed under the Racketeer Influenced and Corrupt Organizations Act (RICO Act)?
fines, imprisonment, and forfeiture of property
Teresa buys a franchise from Urgent Care Clinics, LLC. If their agreement is like most franchise agreements, it will specify that Urgent can terminate the franchise
for cause only.
A corporation is recognized in legal forums as a
legal person.
Which branch of government has the authority to enact law?
legislative
______ does not prevent an injured party from bringing civil charges against a defendant once they are found innocent in a criminal case.
Double jeopardy
For what terminations does a principal NOT have a duty to notify third parties?
Agencies terminated by operation of law
Would Pierre likely be covered under the Americans with Disabilities Act (ADA)?
Yes, if Pierre has an underlying physiological cause or has morbid obesity.
What is the difference between a material breach and an immaterial breach?
A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
Business torts generally involve wrongful interference with another's
business rights.
What is the most common way that duties under a contract are discharged?
by performance
Beth participates in an investigation into possible violations of Title VII of the Civil Rights Act at ChemCo, Inc., where she is an employee. As a result, the employer demotes her. Beth can file
a retaliation claim
A court might look at fairness, social values and customs, and public policy in deciding a case if there is no precedent.
true
How do agency relationships affect businesses and the business world? Choose 2 answer choices.
- Workers can specialize and become experts. - Businesses can grow by hiring employees.
Assume that the trucking company did not do business in Florida but was just passing through. Miriam _______ still sue in Florida because the trucking company has ______ contacts in Florida since it caused the accident in _______ . If the truck did not cause the accident and was just passing through, Miriam ______ sue in Florida since there were no ______ contacts. __________ allows one state to reach into another state and bring a defendant into the first state's courts.
- could - minimum - Florida - could not - minimum - Long-arm statutes
Which of the following provisions are typically in an operating agreement for a limited liability company (LLC)? Choose 2 answers.
- how membership interests may be transferred - whether the dissociation of a member, such as by death or departure, will trigger dissolution of the LLC
Choose the activities that are a part of discovery: (choose all applicable answers - you must choose ALL correct answers)
- interrogatories - depositions - witness list
What documents spell out the powers of a corporation? Choose 2 answers.
- the charter (also called the articles of incorporation) - the bylaws
A general partnership differs from a limited partnership in: (Choose 2 answers.)
- the documents required for creation. - a partner's management rights.
When making a decision using the stakeholder theory of management, a business professional would place more weight on which of the following? Choose 2 answers.
- the impact of its decisions on employees over the profitability of the business - the harm to customers from using the company's product over profits
Grey wants to evaluate the outcome for all stakeholders to inform his decision making. Grey first should consider _______ to determine the legal and ethical issues related to implementing a corporate food safety compliance policy. After the initial step, Grey should list his possible actions related to the new law and evaluate each option for ___________. Using the information from the first two steps, Grey should work with his staff to come to a consensus and develop a plan of action. Because Grey has used the stakeholder theory to inform his decision making, he has evaluated the protentional outcome for: ______, _________, ________, as well as ______.
- who the stakeholders are - each stakeholder - shareholder - employees and vendors - customers - the community
What does mens rea require?
A particular state of mind
What does the ratification of an agency relationship include?
A party affirms the contract another person made with a third party.
What does respondeat superior dictate?
A principal can be held liable for employee actions, even if the principal is not at fault.
Ahmed is an employee of Bristol Manufacturing Company. Bristol manufactures plastics, which creates large amounts of toxic waste that must then be disposed of. Ahmed is responsible for making sure this toxic waste is properly disposed of. To cut costs, Ahmed decides to divert the liquid waste into a local stream, instead of properly disposing of it. This is a direct violation of the Clean Water Act, a national law that protects the United States' waterways. Sanford is the director of the division in which Ahmed works and knows that Ahmed is doing this. When the authorities discover Ahmed's unlawful actions, can Bristol be held criminally liable?
Bristol can be held criminally responsible if Sanford knew of Ahmed's criminal actions.
A company handbook states that employees will be given warnings for three instances of arriving late for work, after which they will be fired. An employee is fired after being late for the first time. Which of the exceptions to at-will employment could apply?
Contractual agreements.
Embezzlement includes the making (or altering) of any writing in a way that changes the legal rights and liabilities of another.
False
Under the Age Discrimination in Employment Act, the plaintiff must show that unlawful discrimination was only one of the reasons for an adverse employment action.
False
Assume a partnership exists between Vlad, Lea, and Tristan and the state in which the business exists has the following statute: "§177.1 (a) No partner shall have the right to withdraw any portion of partner's capital contribution until the dissolution of the partnership or rightful disassociation of the partner; (b) A payment or advance made by a partner to cover the obligation of a partnership constitutes a loan to the partnership which accrues reasonable interest from the date of the payment or advance." What is Lea's strongest argument for why she is entitled to a payment of $63,333 as opposed to $50,000?
Her contribution of $20,000 represented a loan to the business for which she is entitled to repayment in addition to a 1/3 share of the remaining profits ($43,333) as a partner.
Jana and Kwan are partners in Lawyers LLP, a limited liability partnership. Jana supervises the firm's associate Milo, who negligently fails to appear in court on behalf of Norm, a client. Liability to Norm rests only with
Jana and Milo.
Which of the following lists the steps of a trial in the correct chronological order from beginning to end?
Jury selection, opening statements, plaintiff's case, defendant's case
Under which principle of ethics would a person consider whether his or her action is one that every other person should take?
Kant's categorical imperative
You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle?
No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.
If BrainTrain and Natasha had executed a written contract which contained a liquidated damages clause for $200 in the event that BrainTrain breached, and assuming BrainTrain admits to a breach, would that clause be upheld in court?
No, in this case, actual damages can be easily determined.
Heather is an artist and has several watercolors she would like to sell. Heather orally asks Rylee to sell the paintings for her and directs Rylee that each painting should be sold for at least $100. Rylee schedules a showing in her art gallery to display Heather's paintings. On the day of the showing, a customer offers to buy one of the paintings for $100, and Rylee accepts. When Heather finds out the price the painting sold for, she tries to get the painting back from the customer. Heather claims that she and Rylee did not have a written agency agreement, and, therefore, an agency relationship did not exist between them. Is Heather correct?
No, most agency agreements do not have to be in writing to be effective.
If law enforcement is conducting an investigation into Nico's business dealings, would they be permitted to examine the records of Ernesto's Auto Body Shop and/or Sally's personal bank account without a warrant and against their wishes, for evidence of Nico's wrongdoing?
No, they do not have sufficient probable cause nor do they meet any warrant exception.
What is the company's best defense against a claim of "disparate impact" by Pierre in regards to his termination based on the company's policy?
Pierre is not covered under the ADA, but, even if he was, the employer has a legitimate safety reason for not employing shuttle drivers with obesity.
The Village of Gratis' City Council created a profile on Interwebs. It regularly posted notices about roadwork which may cause traffic delays, village council meetings, and proposed village ordinances. Interwebs allowed users who followed the Village's profile to post comments. Generally, the comments were benign. However, a disgruntled community member who had a quarrel with a councilman began posting statements challenging the councilman's fitness to serve and competency of the entire council. He was regularly posting 30-50 comments per day, flooding the page. May the Village revoke his (and his alone) ability to post to their profile (assuming Interwebs does not function as a hosting service but is akin to the platform provided by Facebook)?
Probably not, but Interwebs could if he is in violation of their terms of use.
Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective?
Reformation
Samantha has been the top salesperson at her company for the last six months in a row. Samantha has been using high-pressure techniques to meet the unrealistically high sales quotas in her division, including marking up the price so she can offer a good discount to the customers, lying about the quality of the product, and telling customers that the items are one-of-a-kind when they are not. Her manager, Samuel, is aware of the tactics Samantha is using but does not say anything because Samantha makes their division look great. Here, the parties guilty of unethical behavior include:
Samantha and Samuel.
Sid offers Tina, a city inspector, money to overlook health code violations in his restaurant. Tina accepts the money and overlooks the violations. Sid is charged with the crime of bribery. The crime occurred when
Sid offered the bribe.
How is substantial performance involved with the classification of material breaches versus immaterial breaches?
Substantial performance involves an immaterial breach.
Assume Vlad is presented with an opportunity from another tech company to develop software for a music sharing platform. By coincidence, a portion of the code he developed for the social media app could be used in the music sharing platform. Vlad doesn't feel the need to disclose it to the group because he believes the opportunity doesn't involve anything that impacts Tristan or Lea and they would never know that he reused the code. What is the best argument Tristan and Lea have against Vlad for violating their financial rights?
The code is protected as intellectual property of their partnership, and he has therefore appropriated property of the partnership.
Which of the elements must a plaintiff prove to prevail in a negligence lawsuit?
The plaintiff must address all of the elements.
How does a principal become liable to third parties on contracts?
The principal's agent has the authority to bind the principal in a contract with a third party.
You are the manager of a sandwich shop called Buns-R-Us, which has twelve employees. The corporate office has a very robust ethical code of conduct for employee behavior and has trained each employee on it. On a personal level, you disagree with some of the rules. And, because you are the manager, you choose not to follow them. When your employees see that you, as the manager, do not follow the rules, what's the likely consequence?
They will likely not follow the rules either.
If it were not possible to assign contract rights, many businesses could not continue to operate.
True
In some states, limited partners cannot withdraw from a limited partnership.
True
One of the ways that a business can create an ethical workplace is for the top management to demonstrate its commitment to ethical decision making.
True
The discharge of an employee may in some circumstances give rise to a tort action of wrongful discharge.
True
The following are factors that strongly indicate that a third party is an intended beneficiary of a contract (choose all applicable answers - you must choose ALL correct answers)
WRONG - the third party is expressly designated as a beneficiary in a contract. - performance is rendered directly to the third party.
The People's Freedom Party is a group advocating an extremist political view, which bases its beliefs in a particular religious system. It advocates for the "elimination" of obstacles, including any person who opposes the group. It also advocates for "self-care" meaning that its members should take any and all steps necessary to protect themselves and their families against oppressors. Recently, the group has been put on a terror group watch list and both the Federal Bureau of Investigations as well as the Alcohol, Tobacco, and Firearms divisions of the government have started monitoring the groups' stock-piling of weapons. As part of the case against The People's Freedom Party, the government made copies of posts the group put on its Interwebs profile and then arrested leaders of the group for inciting violence. Is this speech constitutionally protected?
Yes, because it does not specifically call others to actions of violence.
Is a principal under a duty to compensate an agent who works on the principal's behalf?
Yes, if the contract requires compensation.
If the maker of CalmDown receives Mark's properly served complaint and files a motion to dismiss, is the court likely to grant it?
Yes, if the court finds that CalmDown did not have sufficient minimum contacts with Vermont.
Tillie is served with a lawsuit to collect a debt Tillie allegedly owes to Big Ben Clocks. The summons attached to the lawsuit says that Tillie has thirty days to answer the complaint. Fifteen days later, Tillie receives a copy of a default judgment in the mail, directing Tillie to pay $1000 to Big Ben Clocks. Does Tillie have any grounds on which to have the default judgment set aside?
Yes, it is a violation of procedural due process.
Kit hires Lanie to manage Kit's Cattle Ranch. Lanie agrees to act on Kit's behalf, subject to Kit's control, and Kit trusts Lanie to so act. Their relationship is
a principal and an agent.
A company, Blue Marbles, who has a presence on Interwebs has become actively involved in political campaigns and uses their profile to make claims about federal and state political candidates - both positive and negative - as well as taking a stance on political issues and advocating for particular political parties. Blue Marbles has over 20 million followers and their political messages, if paid for, would far exceed the limits allowed by campaign finance laws. Days before the most recent election, Blue Marbles continued to post political content to its page. However, Blue Marbles never gave money directly to any candidate or political party. Is this permissible corporate political speech?
Yes, under the Citizens United case, Blue Marbles' speech is protected.
You agree to paint your neighbor's house for a certain price. You get ninety percent of the painting done and then have to leave town for your real job. Your neighbor is pretty mad because you didn't finish the job, and says she is not going to pay you a penny! What do you think will happen when you try to collect payment from your neighbor for painting her house?
You will probably receive the price you agreed on, less the amount it will take for her to have the painting finished.
Pipeline Corporation requires its employees to have a high school diploma. In a suit against Pipeline under the Civil Rights Act, the employer shows a connection between a high school education and job performance. This is
a business necessity defense.
Sam buys a franchise from Taco Loco, Inc. This relationship, like all other franchise relationships, is governed by
all of the choices.
Jayne is opening her own bakery. As she develops her company policies, she is concerned about the morality of her actions and how those actions will affect her employees, her stakeholders, and herself. Jayne studying the rightness or wrongness of her actions as they apply to her business constitutes the study of:
business ethics.
Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases if the bakery will not tow the cars of Sports Bar's patrons who park in the bakery's lot. The discount is legally sufficient consideration
because it is a promise of something of value.
Compliance with the law is not always sufficient to determine if a decision or behavior is "right" because
being legal does not necessarily mean it is ethical.
The free exercise clause has an absolute protection related to __ but the government may restrict an individual's __ in order to maintain order.
beliefs, actions
Evander alleges that the state denied him unemployment because he quit rather than work in a location where his religious ___ would be violated, and he claims a violation of the _____ clause.
beliefs, free exercise
Sanchez and Yan entered into a contract that required Sanchez to deliver twenty textbooks to Yan's bookstore every month by the 15th raised to the th power of the month. Six months after Sanchez and Yan entered into this contract, Sanchez breached the contract by not delivering the textbooks to Yan's bookstore. After Sanchez breached the contract, Yan sued Sanchez for her damages. Yan must choose the appropriate court in which to file her lawsuit. To do this, Yan needs to be sure the court has:
both subject matter and in personam jurisdiction in the case.
Assume the state in which The Haunted Witch Trials is located has the following statute: "All special amusement parks and attractions must be inspected prior to becoming operational and may not contain open flames or other sources of ignition within 25 feet of a publicly accessible area." Given this statute, the Haunted Witch Trials has
breached a statutorily defined duty to its patrons.
A court is likely to find that the state's interest in reducing illegal drug activity, and the associated criminal activity, is a ____ interest that would justify violating Evander's religious freedom.
compelling
In order to financially support himself, Evander either had to ____working for the military division or needed to ____ unemployment benefits.
continue, receive
ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly, and that they are acting ethically and are accountable to society. This is the concept of:
corporate social responsibility.
John approaches a stranger standing at John's car who appears to be about to break the window. Before the stranger sees him, John knocks him to the ground. What should John claim as a defense to the criminal battery charge?
defense of property
Beri owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically
dissolve.
Start-Up LLC is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be
divided equally among the members.
Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to
do whatever is reasonable to minimize the damages.
Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:
duress.
A company issues a laptop computer to an employee for use at the business location only. The employee takes the laptop home to use for his or her own purposes and reports it as lost. This is an example of:
embezzlement
Olinda, an employee of People's Bank, deposits into her account checks entrusted to the bank through its ATM system by customers to deposit into their accounts. This is
embezzlement.
Paul is a director on the board of Quality Tire Corporation. As a director, Paul may not
engage in self-dealing.
Oil Industries Inc. is a private, for-profit corporation that is owned by five shareholders who are members of the same family. Po, the majority shareholder, misappropriates company funds. The shareholders whose interests are injured by Po's misconduct should
have their shares appraised and be paid the fair market value for them.
Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is
illusory.
Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?
implied-in-fact
For the past year, Zegrida has been writing a historical fiction novel based on the experiences of her family as they immigrated to the United States from Latvia during World War II. When finished, she contacted a publisher and was shocked to discover that her book had just been published two weeks ago with Fran, a business acquaintance of Zegrida, listed as the author. Two months ago, Zegrida had asked Fran to review the book and give feedback, but instead, Fran published the book under her own name. Zegrida plans to sue Fran for copyright infringement and is trying to decide in which court to sue. Zegrida must sue Fran:
in federal district court because the suit involves a copyright issue.
To meet the element of intent, a plaintiff must prove that the defendant:
knowingly committed the act or knew with substantial certainty that his or her actions would result in the consequences.
Bart, Sam, and Greg create Big Barns Sales LLC, a company that builds pre-constructed barns. They file the certificate of organization with the secretary of state and create an operating agreement for the LLC. The operating agreement, however, does not address the method by which the LLC will be managed. Because management of the LLC is not addressed in the operating agreement, it is assumed the LLC will be:
member-managed; all members will vote on decisions of the LLC, and the majority vote controls.
eSports, Inc., offers entrepreneurs the opportunity to operate a franchise under the eSports trade name as the owner of a game-playing venue. To possible franchisees, eSports makes earnings claims. For those claims, the franchisor
must have a reasonable basis.
Buck is a director on the board of Construction Corporation. The board delegates work to Don, Construction's president, and other corporate officers. Buck fails to reasonably supervise the work. He is most likely liable for
negligence or mismanagement.
The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances is
negligence.
If harm is done by an agent, and it is discovered that this agent has been convicted of the same harm before at a previous job, what might a principal be liable for?
negligent hiring
Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent
no more.
What type of corporation is formed for the purpose of doing a public service instead of making money?
nonprofit
Vern is one of three partners in Waffles Food Truck. Concerning all aspects of the partnership business, Vern is entitled to information
on a complete basis.
Shep offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when
sent from Reliable's email.
A______________________ consists of a document that notifies a defendant that a legal action has been commenced against them, and that they must appear in court to answer the complaint.
summons
Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by
taking immediate action in response to unethical conduct.
Lillian applies for a job as the chief financial officer (CFO) of Delco Corporation. Lillian is excited about the opportunity and feels that she has a pretty good chance of getting the position. Just to make sure, Lillian decides to explore the backgrounds of the decision-makers at Delco. If Lillian knows their interests, she thinks that might increase her chances of making a good impression in the final interview. The decision-makers who will decide whether or not Lillian gets the CFO position at Delco Corporation include:
the board of directors.
Donuts Whole, Inc., offers an entrepreneur the opportunity to operate a franchise bakery under the Donuts Whole trade name. Before a franchise contract is signed, Donuts Whole must explain
the contract's termination provisions.
A business landowner has a duty to reasonably maintain his or her property for safety. When the business invites guests or customers onto its premises, it has a duty to:
warn invitees of and reasonably protect them from a foreseeable risk of harm or danger from something on the premises.
What are the elements of consideration? Choose 2 answer choices.
- something of value from each party - an exchange to which the parties agree
What are the three levels of scrutiny used by courts to determine the constitutionality of a government action? Choose 3 answers.
- strict scrutiny - intermediate scrutiny - rational basis review
Which of the following are methods of preventing unethical behavior? Choose 2 answers.
- terminating an employee for unethical behavior - establishing a company code of ethics
Which of the following provisions are typically in a charter for a corporation? Choose 2 answers.
- the intended business purpose of the corporation - the name and address of the corporation's agent
When is an agent liable on a contract that the agent entered into in the business of the agent's principal? Choose 3 answers.
- when the agent is acting without authority - if the agent entered into the contract in a personal capacity - when the principal is undisclosed
Did Tristan exceed his authority when he signed the contract for PR services on behalf of the business if he did not disclose it to Vlad and Lea prior to signing?
Not if a partnership exists because all partners are agents of the partnership for the acts occurring within the course of ordinary partnership business and neither Vlad nor Lea repudiated the transaction.
In this case, what (if anything) could Natasha have done to mitigate her monetary damages after paying for the program?
Nothing.
_______________ may be best suited for resolving small- to medium-sized business liability claims, which may not be worth the expense of litigation or traditional ADR.
Online dispute resolution
While shopping in your local Wal-Mart store, you slip and fall on a wet spot in the grocery aisle. You break a hip, incur huge medical bills, and miss several weeks at work. You know that Wal-Mart is a huge corporation and that thousands of people own stock in Wal-Mart, so you start thinking about who you can sue to recover for your injuries. What do you think would happen if you tried to sue not only Wal-Mart but also all the people who owned stock in Wal-Mart?
Only Wal-Mart might be held responsible.
Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by:
Ruby, because she is a minor, but Ruby must return the car.
Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land:
is not enforceable because it violates the statute of frauds.
Angelina and Sophia attended a professional development retreat at Ferncliff Camp. They met at a downtown location and traveled to the camp by bus. After three days of team-building exercises, Angelina and Sophia returned on the bus to their respective cars. When Angelina arrived at home, she discovered the camp employee who unloaded the bus had given her Sophia's luggage by mistake. She called the camp to explain what happened and hopefully get her luggage back. Angelina can be charged with the crime of:
nothing, because she did not have the mental state required to commit a crime.
Andrea and Jerome are involved in a terrible car accident. Andrea ran a red light and plowed into Jerome's car, causing Jerome's car to be totaled. Luckily, Jerome was not hurt. Jerome files a tort lawsuit against Andrea. If he is successful in his lawsuit, Jerome will receive compensatory damages, the purpose of which is to:
put Jerome in the position he would have been in had the tort not occurred.
Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects. Fred secretly buys some of the property and sells it to Energy at a profit. Fred has breached
the duty of loyalty.
Market Company employs workers, including Nita, at six locations in two states. Market's discharge of Nita outside the terms of an implied employment contract may result in
the employer's liability for breach of contract.
In entering into a contract with Marc for the sale of a cold storage warehouse, Nan fails to reveal the fact that the freezers do not consistently maintain a proper temperature. Most likely, this is fraudulent misrepresentation if
the fact is a serious defect known to Nan, but not to Marc.
Each court has a jurisdiction. Jurisdiction is best defined as
the geographic area in which a court has the power to apply the law.
Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics in making business and ethical decisions that involve the actions of the firm. According to this standard, an action is morally correct when it produces the greatest good for
the greatest number.
Cindy, a real estate agent, sells her friend Doug's house without charging a commission. In return, Doug promises to give Cindy $1,000. This promise is not an enforceable contract because
the house has already been sold—the consideration is past.
Zayden was recently arrested for driving while intoxicated. The law in his state defines the crime of driving while intoxicated as operating a motor vehicle on the public roads with a blood alcohol content over 0.8%. State law also states that anyone convicted of this crime has the right to appeal. Zayden recently took a criminal justice course in college and remembers studying the differences between substantive and procedural law. In his current situation, he knows that:
the law that defines the crime is a substantive law, and the law that provides for the right to appeal is a procedural law.
Olav starts Power Cells to make and sell batteries. Later, Olav contracts with Quinn to invest additional capital in the firm in exchange for 25 percent of the profits. Olav and Quinn are not partners in Power Cells because
they do not have joint control over the business.
Because of the state's regulation, Evander either had to ____ his religious beliefs and continue working for the military division or give up unemployment compensation.
violate
Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets:
violates the statute of frauds, and is, therefore, unenforceable.
What does the law require for a personal service contract?
The personal service requirement must be stated.
Brie buys a subscription to music provided by Concerto, an online streaming service. Before gaining access, Brie must click "I agree" to a provision stating that she will not make and sell copies of the music. This provision is
a click-on agreement.
During the pandemic of 2020, the City of Mayberry passes an ordinance that requires all citizens to wear a face mask in public. Addison believes that the government cannot regulate his personal behavior and refuses to wear a mask; he says that forcing him to wear a mask violates his constitutional rights! A police officer stops Addison on the street and arrests him for violating the city ordinance. Can Addison successfully challenge the mask ordinance on constitutional grounds?
No, requiring people to wear a face mask during a pandemic is a valid exercise of the state's police power.
Assume that Pierre is the only employee who was not born in the United States, although he currently possesses the credentials to work in the United States. Further, assume he is the only employee terminated under the new "health" policy allegedly due to being the only employee in violation by having obesity, though Pierre knew of at least one other person who also had obesity but who retained his job. Which of these causes of action Pierre could bring against the company?
The company is in violation of both the ADA and Title VII of the Civil Rights Act.
You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time to do bookkeeping for a computer store. You work during normal business hours at the computer store. Your work there is supervised by the office manager, and you are paid an hourly wage. On Saturday nights, you play guitar at a pub. You bring your own instrument and you decide what music to play. You are paid a set price for this gig. A question arises at both the store and the pub as to whether you are an employee or an independent contractor. This question is important because employers have certain obligations to employees that do not apply to independent contractors. For example, employers are liable for the wrongful acts of employees but generally not for the acts of independent contractors. Likewise, employers must withhold payroll taxes for employees but not for independent contractors. Are you an employee or an independent contractor at the store and at the pub?
You are an employee of the computer store and an independent contractor of the pub.
Nadia needs help running her bakery. Nadia contacts her friend Zoey, who has baking experience but lives in another state, and offers Zoey a job. Nadia orally promises Zoey that she will employ Zoey for at least two years. Zoey quits her job in the other state, moves her family, and begins to work for Nadia. After three months, Nadia terminates Zoey's employment. Zoey sues Nadia, claiming they had a contract for two years. If Nadia defends the lawsuit by claiming the contract could not be enforced because it violates the statute of frauds, the court will likely hold in favor of:
Zoey, under the theory of promissory estoppel.
Rando and Shania are involved in an automobile accident. Rando decides to sue Shania for his injuries, so he files a complaint, a formal pleading that starts the lawsuit and sets out the allegations that Rando has against Shania. Rando has the complaint, along with a summons, served on Shania to give her notice of the lawsuit. If Shania does not respond to the complaint:
a default judgment may be entered against her.
Stare decisis is best defined as
a doctrine under which judges follow established precedents.
A written agreement outlining the roles of partners, their rights, and their duties are called:
a partnership agreement.
Alexander, the CEO of Westwind Baby Furnishings, received a report from one of his quality inspectors about a possible defect in the Baby Sleeptime Crib Westwind had just started to market. The report said the bed was not safe for older babies, because there was a chance it would collapse if the baby climbed up onto the railing. Westwind had manufactured 20,000 Baby Sleeptime Cribs and would lose a great deal of money if it could not market the cribs. Alexander decided to proceed with the sale of the cribs anyway, to maximize company short-run profits. Possible consequences Westwind could face for such unethical conduct include:
lawsuits, large settlements, and bad publicity.
Marlo is about to be transferred overseas and wants to sell her house. Julianna, who is not a real estate agent, offers to sell the house for Marlo for free. Marlo jumps at the chance to get such a valuable service for free! Because Julianna offered to sell the house for free, Julianna owes Marlo:
no duty to sell the house, but if Julianna does attempt to sell the house, she owes Marlo the duty to use reasonable diligence and skill in performing the task.
Rihana and her friends attend the opening day of Wild Water Country, a local water park attraction. Before riding the new Tornado Tunnel water slide, the steepest and scariest water slide in the park, Wild Water Country requires its customers to sign a waiver of liability which states that they know the risks involved in riding the Tornado Tunnel, and that Wild Water Country is not responsible for injuries that occur during the ride. Rihana signs the waiver and climbs to the top of the slide. As she begins her descent, however, the metal slide buckles under the weight of the riders. Rihana and several other riders are thrown from the slide and fall one hundred feet to their deaths. Rihana's parents sue Wild Water Country. Wild Water Country defends the lawsuit by stating they are not liable for any injuries because Rihana had signed a waiver of liability, and, therefore, she had assumed the risks associated with riding the water slide. Wild Water Country's defense will probably:
not be successful, because Rihana did not assume the risk of the water ride collapsing.
Benjamin works for The Cabinet Maker, a large manufacturing plant that makes ready-to-hang cabinets for the kitchen and bath. Benjamin is running a table saw that cuts wood into strips to make a cabinet. As Benjamin loads wood onto the conveyer belt, he slips on the concrete floor and falls into the table saw. Benjamin's face and arms are severely injured by the table saw, and he is rushed to the hospital. Benjamin's injuries are so severe that he is admitted to the hospital for four days. The Cabinet Maker must file a report of Benjamin's work-related injury with the Occupational Safety and Health Administration (OSHA) within:
twenty-four hours.
Lev, an agent for Mill Grains LLC, executes an unauthorized contract with National Grocers Inc. The deal is highly advantageous to Mill Grains, and the company ratifies the contract. The contract is
valid
Jerry Hall and Lawrence Vaught practice law in the same building. They share equally in the overhead expenses, such as rent and utilities, required to keep the business running. Both Jerry and Lawrence handle their own cases, consult and accept their own clients, and purchase their own advertising. Jerry and Lawrence do occasionally handle a case together, and they have stationery that says "Hall and Vaught" on the letterhead. They each have their own stationery as well. Jerry and Lawrence keep their finances separate, except when they handle a case together; then, they split the proceeds equally. When a client of Jerry's becomes dissatisfied and sues Jerry for malpractice, she sues Lawrence as well. In deciding whether or not a partnership exists here, the court will look at:
whether Jerry and Lawrence share profits and losses, whether they own the business jointly, and whether they have an equal right to be involved in the management of the business.
What are two types of challenges an attorney can make during voir dire? (Select 2 answers)
- Challenge for cause - Peremptory challenges
What authority does the federal government have under the Commerce Clause? Choose 2 answer choices.
- To regulate commerce on the national and local levels - To regulate international commerce
In what situations does federal law preempt state law? Choose 2 answer choices.
- When Congress passes very detailed laws - When Congress passes a law and creates an agency to enforce that law
A court has personal jurisdiction over a party in which of the following circumstances? Choose 2 answer choices.
- When a party brings a case in its court - When the party's property at issue in the case exists within the geographic boundaries of the authority of the court
What are the three steps of a civil trial? Choose 3 answers.
- opening arguments - presentation of testimony and evidence - closing arguments
Under the common law, which of the following is true?
In a case of first impression, a judge may use persuasive authorities rather than precedents.
Could Mark bring his action in federal court?
No, because even if there is diversity of citizenship, the amount in controversy is too low.
What is the process of interviewing prospective jurors and either approving of or challenging a person's impartiality toward service on a particular jury?
voir dire
Andre is involved in a business dispute with his former partner, Ned. Instead of filing a lawsuit, Andre and Ned decide to use alternative dispute resolution (ADR) to settle their dispute. Andre and Ned choose to present their case to a neutral third party, and that third party will decide the case. The form of ADR that Andre and Ned have decided to use is:
arbitration.
When the parties in a dispute present their arguments and evidence to a neutral third party who then renders a decision, it is called:
arbitration.
The role of a mediator is to:
assist parties in a dispute in resolving their differences out of court.
The principle of stare decisis does which of the following?
creates predictability in the legal system
Because the state forced Evander to choose between his religion and his unemployment benefits, the state ___ violate his free exercise rights.
did
State statutory law is created by:
elected members of the state legislature.
An arbitrator is different than a mediator because an arbitrator:
has the authority to make a binding award.
Interwebs began developing sophisticated programs that would take the users location at the time of posting and tag it in the metadata of the post which users can choose to share or not share to their subscribers. Interwebs also created programs that would track which posts users viewed or commented on and would modify the content the user would see based on their predicted preferences. Interwebs would compile all this data and sell it by allowing advertisers to choose which group of users it wanted its ads displayed in front of and charging the advertisers to target specific demographics. When users would first sign up for the site, it required agreement with Interwebs privacy policy which stated that users' data may be "collected and used for a variety of reasons." Unbeknownst to users, the U.S. government was also monitoring the user's posts and meta data information to gain access to users' whereabouts and activities. What is the best argument that this a violation of the users' constitutional rights?
individuals have an explicit constitutional right to privacy. WRONG
Granting a Motion for a J.N.O.V. means:
the jury verdict was wrong and so clearly against the weight of the evidence that no reasonable person could have found as the jury did.
Historically, the common law developed from:
the unification of local customs and laws in feudal England.
