business law final

The primary authorization of constitutional powers is given to Congress under:

Article I of the Constitution.

Harry seeks to implement a policy of enhanced values management in his office. Which of the following is not a direct outcome of values management in the workplace that Harry can directly expect?

Managing values in Harry's workplace will enhance profit and profitability.

A principal and agent relationship requires a A. Meeting of the minds and consent to act. B. Specified consideration. C. Written agreement. D. Power of attorney.

Meeting of the minds and consent to act

Mike has sued Kathy for injuries received in a traffic accident. If Kathy fails to respond to the complaint and summons within the proper time limit:

Mike wins based on a default judgment.

Mighty Motors is a major automobile manufacturer with assembly plants in small towns throughout the United States. Mighty Motors is suffering losses in the current economy and has decided to stop manufacturing the Mighty Brute, an SUV with horrible gas mileage that simply isn't selling. They will also be closing the only plant that is exclusively dedicated to manufacturing the Brute. This particular assembly plant is the primary employer in the town that it is located in. Who, among the following would be considered a secondary stakeholder in this decision?

Tony who runs a pizza shop that many of the plant employees go to for lunch and sometimes dinner

the principal federal trial court is the

U.S. District Court

Generally, constitutional protections do not apply to:

acts of privately owned businesses

One criticism of the U.S.A Patriot Act is that:

adequate safeguards are not in place to prevent the government from using the act to invade citizen's privacy.

Diversity jurisdiction requires citizens of two different states

and a controversy of 75000 or more

when the american arbitration association receives an application for appointment of an arbitrator it

appoints a tribunal administrator who then informs the parties of the procedures and rules of arbitration

Treaties:

are entered into by the president subject to Senate approval.

in the civil system the term litigation refers tp

both the trial and pretrial

The last time an attorney addresses a jury is during the:

closing argument

Precedent evolves from

common law

In Arthur Andersen LLP v United States , Andersen's appeal of their previous conviction was overturned by the Supreme Court because

defective

If an agent acts in a disloyal manner and realizes a personal profit from their acts, the court may order a return of the funds which is called: A. replenishment. B. disgorgement. C. restoration. D. reinstatement

disgorgement

A complaint will contain each of the following except

exculpatory evidence

April hires Christine to landscape her yard. They agree on a price, agree on the types and colors of the plantings and agree on the start date. When Christine shows up on the agreed date, April refuses to allow her to begin work. Christine has sued April for breach of contract. At trial, April produces the contract which states that the plants were to be a mixture of red, white and blue and were to be between 12" and 18" in height. She then produced pictures to show that Christine had arrived with only purple and yellow plants that were 6" to 8" high. This type of evidence produced by April would be called:

exculpatory evidence

Which of the following, from highest to lowest, properly demonstrates preemption?

federal administrative law; federal common law; state statutory law

When Bad Frog Brewery Inc., placed a label on its product showing a frog with unwebbed fingers with its middle finger extended, New York State sued to prohibit the use of the label, claiming it to be obscene and claiming an interest in protecting the state's children. The court found:

for Bad Frog because the label did not concern an unlawful activity and the state did not prove its interest in protecting children from vulgarity.

An Oregon corporation and a new Hampshire corporation have entered into a contract and agreed that any legal disputes will be conducted using New Hampshire law this agreement is called

forum selection clause

when a party files a writ of certiorari to the U.S. Supreme Court, how many justices must vote to hear the case for it to be accepted for review?

four

The equal protection clause is contained in the

fourteenth amendment

AIG received a government bailout to save the company because:

had the company gone bankrupt, the U.S. financial infr severely or even irreparably damaged

secondary sources of law

have no legally binding effect.

Each of the following is a key component in the creation and implementation of a company's value management program except

identifying the values that the company's peer competitors promote

the categorical imperative test consists of:

individuals making ethical decisions with an eye toward potential consequences if everyone in society acted similarly

If Alabama passes a statute specifically permitting high school girls to try out for and play on varsity high school football teams if qualified, that statute would be reviewed using:

intermediate scrutiny

Generally, the agent's duty to keep an accounting means that the agent must:

keep records, receipts and other documentation of costs or income for the principal

A motion for a court to issue a ruling declaring that no trial is necessary because there are no essential facts in dispute is called a:

motion for a summary judgment

Wanda has graduated from a university and after nine months has failed to find a job. She graduated with a degree in business and her college was AACSB accredited. (AACSB accreditation is a specialized accreditation for business schools that evidences a quality program.) In her complaint, she alleges that four years of school and tuition should guarantee a job in the field of study and she wants her money back. At no time did her school guarantee job placement, either through express or implied statements. Wanda does not disagree with this but still thinks she was wronged and that it's unfair to graduate and not get a job automatically. The school will be successful in extinguishing Wanda's law suit if their attorney files a

motion for summary judgement

Philip believes that moral values inherent in humankind should form the basis of law and that these principles are a higher authority than human-made law. Philip is a proponent of:

natural law

Which of the following is categorized as informal ADR?

negotiation

Federal court judges are

nominated by the President and subject to Senate confirmation

The power to impeach and remove is a check and balance power:

of the legislative branch

The Sunshine Act : Requires all agencies announce their meetings at least_______________________in advance

one week

JR Winery grows grapes and produces wine in the state of Delaware. It purchases its corks from Cork Masters, a California cork importer. Despite a written contract, Cork Masters has informed JR Winery that it will immediately be raising the cost of corks 20 percent. JR Winery disputes the added charges and claims a breach of contract. Both companies agree that they want to resolve the dispute as cheaply as possible but also agree that they want to actually see each other during any dispute resolution proceedings. Which type of ODR would best suit their mutual interests?

online arbitration

New york city has passed a law banning smoking of cigarettes and cigars in public bars and restaurants. This law would be defined as

ordinance

Robert is a wealthy businessman who wishes to purchase a particular property. Realizing that the price might become inflated if his name is made known, he asks Faye to negotiate the purchase of the property on his behalf. Faye is the general manager of Robert's east coast operations. Faye reports directly to Robert and is supervised in all respects. Faye is told to tell Philip, the property owner, that she represents someone but she's told not to specify who she works for. The agency would be described as:

partially disclosed

from first to last which of the following trial stages are in correct order

pleadings; discovery; pretrial conference; jury selection

The clean hands doctrine is most specifically applied to:

primarily plaintiffs

Kathy was returning to the United States after a vacation when the Customs Service confiscated some goods she had purchased abroad and brought back with her. The determination of whether the government acted properly and the type of hearing that she must be provided is an analysis of:

procedural due process

A state statute mandates that the statute of limitations for a negligence lawsuit is two years and the plaintiff is barred from filing the suit if he or she files after that time. This statute is an example of a:

procedural law

voir dire

process of choosing a jury

after a rule is published, what is the next step in the rulemaking process

public comment

Assume that the state of Georgia has just raised the fee for registration of motor vehicles $5 per year. If challenged, this new statute would be reviewed using:

rational basis of scrutiny

Assume that the state of Georgia has just raised the fee for registration of motor vehicles $5 per year. If challenged, this new statute would be reviewed using:

rational basis scrutiny

in keeton v hustler magazine the new hampshire court determined that

regular circulation of a magazine is sufficient to establish jurisdiction in a defamation case because of the potential for injurious effects of defamatory articles even without an otherwise physical presence of defendant

Joshua is a highly accomplished soccer player and a successful coach. He is often hired by other coaches to run soccer clinics and soccer camps for their teams. If Joshua decides to incorporate and sell stock to finance the corporation, the area of law that he would need to be aware of with regard to the stock sales would be

securities law

Agency law primarily exists on the: A. state level. B. federal level. C. common law level. D. constitutional level.

state level

The source of bankruptcy law is a combination of

statutory and administative law

Courts will apply the ________ analysis to determine the classification of an agent

substance over form

Bradley collects historic memorabilia, and one of his prized possessions is the pistol used by Aaron Burr in his duel with Alexander Hamilton. After reading an article in a magazine, Bradley discovers that Sam owns the matching pistol, used by Hamilton in the duel. Bradley contacts Sam and offers him $500,000 for the pistol. Sam e-mails Bradley that he accepts his offer but that the transaction must be for cash and face-to-face. Bradley responds that he'll be at Sam's home at noon the next day with the money. When he arrives, Sam informs him that he's received an offer of $600,000 for the pistol and states that Bradley must pay that amount or he'll sell to the other buyer. Bradley wants the weapon to complete the set. If he sues Sam, what course of action will best provide him the results he desires?

sue for breach of contract and seek a decree of specific performance

binding arbitration means that

that the decision of the arbitrator will be final unless the parties agree to reopen the case

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

the Restatements (Second) of Agency

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

the U.S. District court

Which of the following is not a coequal branch of the U.S. government as specified in the Constitution?

the administrative branhc

In Grimshaw v. Ford Motor Company , if Ford had made the repairs to the cars, diminishing profit but enhancing customer safety, which theory of corporate social responsibility would Ford have been exhibiting?

the broad view a/k/a management's hand theory

That corporations have a social responsibility and that profitability should be secondary reflects

the broad view a/k/a management's hand theory.

In 2002, Australia's highest court ruled on a defamation case where an Australian citizen claimed to have been defamed by a Dow Jones article published on the defendant's web site. They found: A. the citizen was defamed but jurisdiction over Dow Jones couldn't be established because the defendant had no physical presence in Australia

the citizen was defamed and publication of the article occurred when the article appeared and could be read on a user's computer screen establishing jurisdiction in Australia

In the cases of Heart of Atlanta Motel v. U.S. and Katzenbach v. McClung, the Supreme Court found illegal discrimination under the Civil Rights Act of 1964 by applying:

the commerce clause

In kauffman-harmon v. kauffman, when mr. kauffman sued his children to have all stock given to them transferred back to him stating their possession was only a temporary trust. the court found that:

the court found that the children owned the stock and Mr. Kauffman's claims were barred by the clean hands doctrine

Which of the following is not a component that needs to be shown to authorize use of a long-arm statute?

the defendant must have violated a plaintiff's state statutory law

The exchange of e-mail between companies in different states can create personal jurisdiction in a law suit when:

the e-mail is an integral part of an ongoing business relationship even if no offices or personnel are within the forum state.

The power to carry out foreign policy is an enumerated power granted to:

the executive branch

Protections under the Bill of Rights were extended to include restrictions and actions by state governments under the:

the fourteenth amendment

If a civil trial results in a hung jury

the litigants must start the process over and conduct a trial with a new jury

Nobel Prize winning economist Milton Friedman believed that:

the only responsibility a business has is to maximize shareholder wealth

which of the following is not true of adr proceedings?

the party conducting the ADR hearing is chosen by the disputing parties themselves in certain instances

which of the following is not required in order to show standing to assert a claim

the party must be a citizen or taxpayer eligible to use the U.S. court system

A state's appellate court has made a decision in a particular case. That decision becomes case precedent in all cases except the cases heard in:

the state's supreme or highest court

Mackey Corp. is incorporated in Delaware but has no office or personnel in the state. Their main office is in Arizona. Mackey would have a physical presence in Delaware if

they maintain a P.O. Box to receive mail which is then forwarded to the main office in Arizona

When an attorney requests a change of venue they are asking:

to move the trial from one state to another due to the potential of unfairness of a trial in the first state

If a principal would like to keep her identity secret, she would use a/an:

undisclosed agency

The U.S. system of common law

was established in the U.S. Constitution

When Enron's top executives were subpoenaed to testify before Congress, each exercised their constitutional right against self incrimination except:

Jeffrey Skilling, Chief Operating Officer

The reputed mastermind of the Enron business model was

Jeffrey Skilling, Chief Operating Officer.

Generally, the agent's duty to keep an accounting means that the agent must: A. keep records, receipts and other documentation of costs or income for the principal. B. be able to verify the exact number of hours acting within the scope of employment. C. prepare tax returns for the principal pertinent to the agent's financial activities. D. be able to account for any and all of the principal's funds when they are comingled with the agent's or anyone else's fund

A. keep records, receipts and other documentation of costs or income for the principal.

The IRS has developed a three prong status to determine an agent's status. Which of the following is not a prong in this test? A. whether the working relationship is written or oral B. behavioral aspects of the agency C. the type of working relationship between the principal and the agent D. the financial arrangements between the principal and the agent

A. whether the working relationship is written or oral

As a result of the AIG bailout, the U.S. Government received a/an ________ stake in the company

80%

Generally, an agency relationship is terminated by operation of law in all of the following situations except the

Agent's renunciation of the agency

Joyce contracted with Mega Drug Corporation to buy vitamins on behalf of Howard, a personal trainer. Howard told Joyce to use her own name and not to disclose to Mega that she was working for Howard. If Joyce signs the contract in her own name only and Howard won't honor it: A. Joyce can't be sued because she's only an agent. B. Joyce is liable but may sue Howard based on indemnification. C. Joyce is liable but may sue Howard based on failure of loyalty. D. Howard has no liability to anyone since his name was never disclosed.

B. Joyce is liable but may sue Howard based on indemnification.

In Hannington v. University of Pennsylvania, the court had to determine whether an attorney acted under apparent authority regarding the negotiation and signing of a settlement agreement. They determined that: A. attorneys are generally independent contractors and cannot possess apparent authority to bind a principal. B. after six months of negotiations it is reasonable to believe that an attorney has apparent authority to finalize an agreement on behalf of the principal. C. because the agency was disclosed and the principal's identity well known, the University could have easily verified the enforceability of the agreement with Hannington so they are at fault for not doing so. D. third parties may never enforce an agreement that the principal has not authorized and signed.

B. after six months of negotiations it is reasonable to believe that an attorney has apparent authority to finalize an agreement on behalf of the principal.

After more than 100 years, the Chicago Cubs have won baseball's World Series. They want a parade down Michigan Street at 10 a.m. on Friday, but the city tells them that the parade will be down Rush Street at noon on Saturday. The city claims that Rush Street on Saturday will provide more safety and convenience for the city's citizens. The Cubs claim a violation of their freedom of speech. If a lawsuit ensues, what standard of review will the court use to resolve the issue?

B. intermediate-level scrutiny

Young has just fired Kathy who was her agent. Young places an ad in the classified section of the various local newspapers stating that "Kathy no longer works for or represents Young in any way". Young would place this ad: A. to eliminate any possible liability resulting from actual authority. B. to eliminate any possible liability resulting from apparent authority. C. to eliminate any possible liability resulting from ratification. D. to eliminate any possible liability resulting from respondeat superior

B. to eliminate any possible liability resulting from apparent authority.

Karl is a driver for Arnold's Appliance Store and delivers appliances to customers. One day, Karl negligently secures a washer and dryer in the back of his truck, and while he is driving, the washer falls out of the truck. Jan, driving behind the truck, sees the appliance flying at her and swerves into a telephone pole. Which of the following is correct?

Both Karl and Arnold's are liable. Karl was negligent and responsible. Arnold's is responsible for Karl's acts based on respondeat superior.

Jack is a truck driver employee of Ace Trucking. While delivering his cargo he sees that the truck assigned to him is low on gas. Jack pulls into a convenient station and puts $50 worth of gas in which will allow him to complete his assignment and return to the depot. A. Ace is not required to reimburse Jack unless he had been given the express actual authority to purchase gas on behalf of the principal prior to starting the delivery B. Ace is not required to reimburse Jack unless he phoned in and asked for and was granted permission to purchase gas C. Ace will be required to reimburse Jack for the cost of the gas based on implied authority stemming from his express authority to drive the truck D. Ace will be required to reimburse Jack because apparent authority gives him the right to buy gas when it is apparent that it is needed

C. Ace will be required to reimburse Jack for the cost of the gas based on implied authority stemming from his express authority to drive the truck

Angelina hires Brad to drive a truck to a depot 200 mile away. She specifies the route that he is to take and tells him to be sure to arrive by 5:00 pm. On the way, Brad finds himself nodding off due to hunger. He checks the time and finds that he has plenty of time to make the 5:00 pm deadline so he decides to stop at a diner that he is familiar with. The diner is ¾ of a mile off of the route that Angelina had specified. Brad does not call Angelina to ask for permission. On the way to the diner, Brad runs a light and has a collision with Billy Bob. Billy Bob sues Angelina. A. Angelina wins because Brad was on a detour, freeing her from liability B. Angelina wins because Brad was on a frolic, freeing her from liability C. Angelina loses because Brad was on a detour, so she is liable D. Angelina loses because Brad was on a frolic, so she is liable

C. Angelina loses because Brad was on a detour, so she is liable

A gratuitous agent: A. has no duty of care owed to the principal. B. breaches the duty of care when ordinarily negligent. C. breaches the duty of care when grossly negligent. D. is held to the same standard of care as any other type of agent other than the independent contractor.

C. breaches the duty of care when grossly negligent.

In Flagiello v. Pennsylvania Hospital, the court had to balance the hospital's negligence against the charitable immunity doctrine to determine whether Flagiello could recover for injuries sustained on the hospitals property. The court determined that:

Current societal norms rendered the charitable immunity doctrine inapplicable to this case and that fundamental fairness allowed the court to deviate from established case precedent and find for Flagiello

In Estrada v. Fedex Ground Package System, Inc. , the court determined that the plaintiffs were employees for each of the following reasons except: A. Fedex exercised extensive control over the driver's schedules. B. Fedex maintained a standard pay rate for all similarly situated drivers. C. Fedex required the drivers to work exclusively for the company. D. Fedex required the drivers to supply and use their own trucks

D. Fedex required the drivers to supply and use their own trucks

Which of the following is not an exception to the employment-at-will doctrine? A. the employee is working under an express employment contract B. the employee is working under an implied employment contract C. the employee's termination violates a public policy or statutory right D. the employee is terminated but has received excellent evaluations and the employer cannot articulate a reason for the dismissal

D. the employee is terminated but has received excellent evaluations and the employer cannot articulate a reason for the dismissal

Arthur Andersen was

Enron's auditing firm

Corporate social responsibility emphasizes:

Obligation and Accountability

In Estate of Weingeroff v. Pilatus Aircraft , the plaintiff's representative brought a diversity action against Pilatus, a Swiss company that manufactured the plane that crashed killing Weingeroff. The court decided that

Pilatus wins because the $1M+ that they spent in Pennsylvania was too insignificant to create minimum contacts and no specific marketing was done targeted to Pennsylvania.

Ace engages Butler to manage Ace's retail business. Butler has the implied authority to do all of the following, except A. Purchase inventory for Ace's business. B. Sell Ace's business fixtures. C. Pay Ace's business debts. D. Hire or discharge Ace's business employees.

Sell Ace's business fixtures

The National Conference of Commissioners on Uniform State Laws (NCCUSL) was formed by the ________ for the purpose of establishing uniform standards in areas of law where national interests would be achieved through the use of uniform laws

The american bar assocciation

Which of the following is not a procedural due process issue?

The state of Massachusetts has raised the drinking age to 25 years old.