GENBUS EXAMS 1-3 Park

List the three common law exceptions to the "at will" doctrine of employment.

-Violation of public policy -Express / implied contract -Implied covenant of good faith and fair dealing

Match the employer action described in the questions below with the appropriate response below (a or b). Give the answer that is generally (not necessarily always) applicable in most states (such as Idaho) and under federal law. Questions: -Monitoring employee email -Using a polygraph -Firing an employee for posting a photo on Facebook showing the employee drunk at parties. -Recording an employee's private telephone conversation, without the knowledge or the consent of either party to the phone call (employee or third party), to determine whether the employee is having an extra-marital affair. -random employee drug testing

1. legal 2. illegal 3. legal 4. illegal 5. legal

How many shareholders can there be in a Subchapter S corporation?

100.

In the U.S., patent protection lasts how long?

20 years from the date of application.

According to the U.S. Supreme Court, which part of the constitution supports the right to privacy?

9th Amendment

Which of the following is true about the first Amendment?

A and B only are true. -The government may place "time, place and manner" restrictions on speech to protect compelling government interests. -Commercial speech and may be regulated more heavily than social or political speech.

The Endangered Species Act requires that the Secretary of the Interior list those animal and plant species that are:

A and B only. -endangered. -threatened

The theory of strict liability applies:

A and B only. -to products sold in a defective condition. -if the defect makes the product unreasonably dangerous.

Which of the following is a defense to a negligence claim?

A and D. -The defendant acted reasonably. -The defendant's inattention is explained by undue influence.

Nell is visited in her home by a salesperson from Lohman Publications, a magazine distributor. The salesperson shows her several magazine purchase plans that will allow her to purchase a number of popular magazines at truly low prices. Even though Nell is not really interested in any of the magazines, the salesperson is very persuasive, and Nell ends up purchasing a set of subscriptions worth about $15 per month. The next day, Nell calls up Lohman Publications and tells them she does not want any of the magazines she had agreed to purchase the day before. The person with whom she spoke at Lohman told her that she could not cancel the order. Ten days later, one of the magazines that she had purchased and then canceled arrived in her mail box, along with a bill. What is the best statement of the rule of law which would apply to the above facts?

A consumer who purchases merchandise from a door-to-door salesperson has three days from the date of the sale or from the date that they are notified of the three-day cooling off period to cancel the order.

In which of the following situations does the first promise serve as valid consideration for the second promise?

A debtor's promise to pay $500 for a creditor's promise to forgive the balance of a $600 unliquidated (disputed) debt.

EC: Adam is withdrawing from the ABC partnership. Under what circumstances will Adam continue to be liable for contracts ABC enters into after Adam is no longer a partner?

Adam will continue to be liable for all ABC contracts for two years after he withdraws, unless he provides adequate notice.

Which of the following are sources of law in the U.S. legal system?

All of above. -Federal and state constitutions. -Common and statutory law -Rules and regulations of federal and state administrative agencies

Define partnership. Be specific.

An association of two or more persons, as co-owners, to carry on a business for profit.

An employer may be liable for harassment against an employee by all of the following except:

An employer will be liable if any of the above harass employees.

Bill owes Andy $2,500. Bill contracts to sell Carol a $2,500 computer, and Carol agrees in the contract to pay the money to Andy. Which of the following is a correct statement?

Andy is an intended third party beneficiary under the contract and can sue to enforce it.

Which of the following forms of alternative dispute resolution is binding on the parties?

Arbitration.

Which of the following is true of Section 7 of the National Labor Relations Act (NLRA)?

B and C. -It applies to all employees without regard to whether they are in a union. -It gives covered employees the right to engage in concerted activity for their mutual aid and protection. This means, for example, that employer policies which prohibit employees from discussing their wages with each other may be illegal.

A grocery store clerk at Best Foods spills syrup on the floor and does not clean it up. A customer slips on the syrup and breaks her arm. Which statement is correct?

Best Foods is liable because the clerk acted negligently while acting within the scope of employment.

Regarding the previous question concerning the Dewey, Cheatum and Howe partnership, under the RUPA (Revised Uniform Partnership Act), what will happen to the partnership when Dewey withdraws?

Cheatum and Howe may continue the business even Dewey left the partnership.

Which part of the U.S. Constitution grants Congress the right to regulate commerce with the foreign nations and among the several states?

Commerce Clause.

The federal environmental law which contains the "Superfund" and is aimed at assessing liability and paying for the clean up of land which has been contaminated by toxic waste is:

Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)

Put the following in order: -motion for new trial -pretrial conference -notice of appeal -opening statements -voir dire -depositions

Correct match: -fifth -second -sixth -fourth -third -first

In Idaho, the following courts are only appellate court (never trial):

Court of Appeals and Supreme

Regarding the previous facts, to determine whether Vandelay Industries is liable for Newman's damages, the SECOND question you must answer is:

Did George commit the tort while acting within the course and scope of his employment?

Which of the following expresses the duties that the officers and directors owe to the corporation and its shareholders?

Duties of loyalty and care.

The federal agency (not a state agency) responsible for enforcing federal anti-discrimination laws is the:

Equal Employment Opportunity Commission (EEOC).

What constitutional principle requires that the government treat similarly situated people the same?

Equal protection.

How do partners in a general partnership share profits and losses if there is no written partnership agreement?

Equally

Which of the following are the two types of federal jurisdiction?

Federal question and diversity jurisdiction

The U.S. law which prohibits paying bribes to foreign government officials is the:

Foreign Corrupt Practices Act.

European Union member states are required to enact legislation which brings their laws into harmony with the principles enunciated in directives issued by the European Union. This refers to the concept of:

Harmonization.

If Marie quits her job because of her co-workers' repeated sexual comments and taunting related to her body or other sexual matters, she has been subject to what type of illegal sexual harassment?

Hostile work environment.

Fred owned a classic Rolex. Barney later found the watch. Both Fred and Barney are claiming title to the Rolex. In which of the following cases will Fred win over Barney? I. Fred mislaid the watch and forgot to take it with him. II. Fred lost the watch out of his van while driving down the road. III. Fred had abandoned the watch but later changed his mind after Barney found it.

I. and II. only.

In Idaho, an employee who wishes to file a Title VII claim against her employer must first file the claim with the:

Idaho Human Rights Commission.

Which of the following is NOT included within the definition of merchantability?

If the goods are fungible, that they be of a quality that exceeds the description.

The difference between a legal and an illegal pyramid scheme is sometimes difficult to determine. What makes a pyramid scheme illegal?

If the scheme is what is being sold, and the individual is rewarded based on the number of recruits brought into the scheme.

More negligence cases are filed in court than any other type of tort case. Which one of the following is not one of the required elements of a negligence case?

Intentional action

The section of the U.S. Constitution which has been used as the authority for most federal laws regulating the conduct of business is the:

Interstate Commerce Clause.

George was a rather careless customer service agent at Vandelay Industries. One day, while talking on the phone to his friend Jerry, George learned that their mutual friend Kramer was actually named "Cosmo." George was so surprised and became so agitated by this news that he threw his clipboard into the reception area, where it hit Newman, a customer waiting to speak with George. Newman broke two fingers in the accident and missed several weeks of work delivering the mail. Newman sued Vandelay Industries, claiming that it was liable for the damages George, Vandelay's agent, inflicted on him. Vandelay Industries denied liability. To determine whether Vandelay Industries is liable for Newman's damages, the FIRST question you must answer is:

Is George is a general agent or an independent contractor?

aylor got a D- on his first GB 202 exam, which upset his mother, who wanted to see her son succeed in college. This in turn upset Taylor. Therefore, he studied really hard for the second exam and got an A-. His mother was SO happy to see this improvement that she promised to pay for his summer school tuition. After Taylor enrolled in summer school, he sent his mother a bill. Which of the following is correct about his mother's promise to pay the tuition?

It is unenforceable because Taylor had already studied and improved his score when his mother made the promise to pay for summer school, so there is no consideration.

Holly deeds her land to Jake. The deed states, "To Jake for life, then to Kim." Which of the following are true?

Jake has a life estate. While he is alive, Kim has a future interest.

John was injured in an automobile accident tow months ago. His business law professor recommended that he hires an attorney that represent him. John and his attorney agree to enter into a contingency fee arrangement. If John ends up taking the case to trial:

John will not pay his attorney any fees unless he is successful in court.

Ken works for Local Excavation Corp (LEC). While operating a backhoe, Ken suffers an injury. Ken will be compensated under state workers' compensation laws only if:

Ken's injury was accidental and occurred on the job or in the course of employment.

In the United States, if someone composes an original song, copyright protection on the song lasts how long?

Life of the author plus 70 years.

Adams, Jackson and Hicks are joint tenants in a piece of land. Jackson has provided in her will that, upon her death, her interest in the land will go to Meyer. Upon Jackson's death, Adams and Hicks claim ownership of the land. Assuming that Jackson's will is valid, does Meyer have a legal claim to the property?

No, because under the right of survivorship, surviving joint tenants inherit the interest of the deceased joint tenant.

EC: In May, 2005, Grandpa grants a life estate to Mother, for her life, then to his granddaughter Sarah. In February, 2006, Mother sells her life estate to Bob, who dies in July, 2007. Sarah claims she has a right to the land after Bob dies. Does she?

No, the property goes to Bob's heirs until Mother dies.

Paul is driving a truck delivering goods for his partnership when he negligently backs into a customer's new Mercedes. The customer sues the partnership and recovers $5000 in damages. What liability do the other partners have for Paul's actions?

Personal liability

Which of the following is not type of discovery method in a civil lawsuit?

Pretrial conference.

Which of the following is not a protection provided by the 5th Amendment?

Privacy.

In SEC v. Texas Gulf Sulfur, the court held that:

Rule 10b-5 required Texas Gulf Sulfur to disclose inside information regarding preliminary test mining results to the public or refrain from trading on the information.

The UCC covers which of these transactions?

Sales of goods over $500.

Sara owns a coffee shop. She hires Howard to manage the shop. Which of the following best describes their relationship?

Sara, the employer, is the principal; Howard, the employee, is a general agent.

Richard writes a letter to Sarah authorizing her to sell his car and sends a copy of the letter to Timothy, a prospective buyer. The next day, Richard sends a letter to Sarah revoking her authority, but he fails to notify Timothy.

Sarah has apparent authority to sell the car to Timothy.

What is the name of the U.S. federal law passed after the Enron and WorldCom scandals that imposed significant new reporting and financial duties on corporate officers and their accounting and audition firms?

Sarbanes-Oxley Act.

Which of the following is NOT one of the four dilemma patterns discussed in THe Eghics of Right v. Right article>

Situation v. principle.

To whom may the decision of a federal administrative law judge be appealed?

The panel of commissioners who run the agency.

Which of the following is not an element of the tort of interference with contract?

The plaintiff did everything it could do to mitigate damages.

Which of the following is a criteria for a lawful taking of private property by the government under the theory of eminent domain?

The property must be taken for a public use or purpose.

Which of the following is the best statement of the principal purpose of the federal securities law?

To assure that investors have adequate information upon which to base investment decisions.

Private sector employers do not have to recognize employees' due process (or constitutional) rights.

True, because the Bill of Rights protects people from governmental action which infringes on constitutional rights, not actions by private parties.

Which of the following are true about insider trading?

Under the misappropriation rule, trading on any inside information gained as a result of a confidential relationship is illegal. It is not necessary that the insider have a fiduciary relationship with the company whose securities are being traded.

Which of the following is not one of the factors relevant to a decision of whether the corporate veil should be pierced?

Whether the board of directors has violated its duty of loyalty.

Which of the following is not a factor in determining whether a fair use of copyrighted material exists?

Whether the work serves the public good.

David's fiance, Janice, comes to meet his parents for the weekend. On Saturday morning, while using David's mother's hair dryer, the blower shirt-circuits, sending sparks across the guest room. Janice's angora sweater and her hands are covered with tiny burns. Will Janice have a case against the seller of the dryer for breach of warranty?

Yes, since Janice is a guest in the home of the buyer, any warranties would extend to her.

Dewey Cheatum and Howe (DCH) were partners in a new computer software business. The partners did not have a written partnership agreement and they never decided how the management responsibilities or affairs of the partnership were to be allocated or how profits and losses would be divided. Although the partnership was very profitable, Dewey often disagreed with Cheatum and Howe regarding partnership business. When the partnership received a proposal from Boise State University to develop some new registration software, Cheatum and Howe decided to sign the contract on behalf of DCH. Dewey opposed the contract and told the other two partners he did not agree. Nevertheless, the contract with Boise State purported to bind the partnership. The contract with Boise State turned out to be unprofitable. Dewey refused to share the losses, arguing that Cheatum and Howe were not authorized to make the contract. On February 14, Dewey told Cheatum and Howe he was withdrawing from the partnership as of that date. Did Cheatum and Howe have authority to enter into the BOise State contract? Why or why not?

Yes, they do have the actual authority to do so.

Under the attorney/client privilege:

a lawyer may not disclose anything revealed by the client during the time that the client represents by the lawyer, unless the client gives permission.

A warranty is:

a promise regarding the goods sold.

Kelly is injured when she slips and falls on Lee's sidewalk. To determine whether Lee breached a duty of care owed to Kelly, Lee will be subject to the standard of:

a reasonable person.

EC: Res ipsa loquitur is:

a situation in which the incident which caused the injury could not have happened without negligence, and the defendant was in control of the event or premises where the accident occurred.

The right to state information regarding another without fear of liability for defamation, in a trial or legislative hearing, is known as a(n):

absolute privilege.

The Resource Conservation and Recovery Act (RCRA) requires that hazardous waste be tracked through its:

all of the above. -transportation. -storage. -use. -disposal

A company's stakeholders can include:

all the above. -politicians and government agencies. -employees. -customers and suppliers.

The doctrine of ripeness holds that:

an agency action cannot be challenges until the action becomes final.

When one person has the legal right to use a specific portion of the real property owned by someone else, for a limited purpose only, that legal right is called:

an easement.

Under the going and coming to work rule:

an employer is generally not liable for torts committed by an employee who is on the way to work or on the way home from work.

The Age Discrimination in Employment Act (ADEA) prohibits discrimination against employees who:

are 40 years old or older.

The document that specifies the name, address, and purpose of the corporation, the key people involved in its creation, its capital structure, and its internal organization, is called the:

articles of incorporation.

Inspiring in another person the reasonable fear of imminent physical injury is:

assault.

Flourish and Blotts advertises wands made from beechwood and dragon heartstring for the special low price of 10 galleons ($5.99) apiece. When Hermione arrives at the store seeking to purchase one of the low-priced wands, Mr. Ollivander, the salesperson, tells Hermione that the specially priced wands have all been sold and no more like them are obtainable. Mr. Ollivander is quick to point out, however, that they do have some very good ebony and unicorn hair wands for fifteen galleons ($9.99) each. This kind of scenario is typical of:

bait-and-switch advertising.

In certain cases an employer can legally discriminate on the basis of gender, religion, or national origin if the discrimination is:

based on a bona fide occupational qualification (BFOQ).

The government must prove criminal guilt:

beyond a reasonable doubt.

Cody and Dina form Eagle Corporation. Eagle has a board of directors, a chief executive officer, a chief operating officer, and fifty-two shareholders. Eagle is governed by its:

board of directors

The burden of proof that the plaintiff must meet to win a civil case is:

by a preponderance of evidence.

The primary goal of a tort lawsuit is to:

compensate the victim.

A document filed in court stating the plaintiff's arguments and factual assertions which support the plaintiff's claim for damages is a(n):

complaint

To create an agency relationship, both parties (agent and principal) must:

consent to the relationship.

The "common law" is derived from:

court decisions handed down over the last two hundred years or so.

American Investments and First State Bank are secured parties with security interests in property owned by U.S. Manufacturing. Priority between these security interests will be determined by the:

date of perfection of each security interest.

Stare decisis means that:

decisions made by higher courts in previous cases must be followed by lower courts in that jurisdiction.

Felix was in a car accident. The other decides to file a lawsuit against him. In the lawsuit, Felix will be referred to as the:

defendant

Assumption of the risk is a:

defense to negligence wherein the defendant asserts that the plaintiff knowingly and voluntarily undertook to encounter the risks created by the defendant's behavior.

A lawsuit filed by a shareholder to remedy situations in which officers or directors have acts outside the scope of their authority is called a(n):

derivative action.

Ray is a shareholder of Small Business Company (SBC). When the directors fail to undertake an action to redress a wrong suffered by SBC, Ray files a suit on the firms behalf. Ray's lawsuit is a shareholder's:

derivative lawsuit.

When a lawyer questions one of her own witnesses during trial, this is called:

direct examination.

Intentional discrimination on the basis of a trait protected by Title VII is called:

disparate treatment discrimination.

In Idaho, if Joe files a lawsuit against Tom seeking $15,000 in damages, the case will be filed in:

district court

Corporate profits distributed to shareholders are called:

dividends.

When a company sells its product in a foreign country for a lower price than the price charged for the sale of the product in the manufacturer's home country, this practice is called:

dumping.

In the HP firing case a(n):

employee was discharged for refusing to remove Bible verses condemning homosexuality he had posted at his work station.

EC: Under the Fair Labor Standards Act:

employers are not allowed to average the hours worked by an employee during any two contiguous weeks for purposes of determining whether overtime pay is due.

Under the Family and Medical Leave Act, eligible employees are:

entitled to up to twelve weeks of unpaid leave, in a one-year period, to care for newborn or newly adopted children or certain ill family members.

Sam enters into a contact with Bill by which Bill is to pay Sam $7000 after Sam builds Bill a new garage. If the garage has not yet been built, the contract is:

executory.

The most extensive ownership interest a person may have in real property is a:

fee simple absolute.

A person in a position of trust and confidence who has a duty of utmost loyalty and good faith is a(n):

fiduciary.

One method of perfecting a security interest occurs when a:

financing statement is properly filed with the appropriate state office.

Cody files a suit against Delta Corp. After the discovery period, Delta files a motion asking the judge to decide the case now because the parties do not dispute the facts and the only left to decide is how the law apples to those facts. Delta has filed a motion:

for summary judgment

The method of enforcing a judgement against a defendant, wherein the court orders someone who owes money to the defendant to pay it to the court for transfer to the plaintiff, is referred to as a(n):

garnishment.

Regulations properly issued by administrative agency:

have the force and effect of law.

Authority that is not found in the express or explicit words of the principal, but that is inferred from the nature of the job required and/or the principal's words, is known as:

implied authority.

All of the following are characteristics of a corporation except it:

is managed by shareholders.

EC: Under Title VII, an apparently neutral selection practice that has an unintended adverse impact on a protected class is legal if it:

is shown to be job related.

Commercial impracticability will discharge one or both party's obligation to perform a contract when:

it is possible to perform under the contract, but the cost of performance has become exceedingly high due to some unforeseeable event.

A "right-to-work" law refers to a:

law that prohibits unions from requiring employees from becoming union members and/or paying union dues.

When a trial is conducted with a jury, the judge determines issues of _______ and the jury determines questions of ______.

law,fact

Written defamation is called:

libel.

Sandy buys shares of stock in Universal, Inc. If Universal is sued by a supplier, Sandy's liability for damages will be:

limited to Sandy's investment in Universal.

Easy Credit Corporation (ECC) lends Randy $20,000. Easy files a financing statement on March 4. Randy also borrows money from First National Bank, which advances funds and files a financing statement on March 3. Randy uses the same property as collateral for both loans. Randy later defaults on both loans. In a dispute between the two lenders over who has the right to repossess the collateral, ECC will:

lose, because First National perfected its interest first

Under the Uniform Commercial Code (UCC), the implied warranty of merchantability is given by:

merchants.

To be eligible for unemployment compensation, an employee must:

not have quit the job without good reason or have been fired for serious misconduct.

EC: Brady files suit in federal district court against Connie. Connie loses the case, appeals to the Third Circuit Court of Appeals, and loses again. Connie asks the U.S. Supreme Court to hear the case. The Court is:

not required to hear the case.

Mr. Jones sues an adjoining landowner for operating a smelting operation that creates a foul odor. Mr. Jones alleges the odor creates a(n):

nuisance.

Under the corporate opportunity rule:

officers and directors may not personally benefit from an opportunity in which the corporation would have been interested.

Mary hires Jay to act as her agent in the purchase of Kappa, Co. Mary tells Jay to reveal only that he is buying the firm on behalf of a third party, without telling Kappa's seller who that third party is. Mary is a(n):

partially disclosed principal

Best Builders substantially performs its contract with Mall Development Co. to complete construction of a small outdoor mall complex, but it is unable to finish the job. Best must:

pay the difference between substantial and complete performance.

The method for excusing a potential juror from service for any reason, and without the consent of the judge, is referred to as a:

peremptory challenge.

Collateral is the:

property that a debtor agrees to give the creditor if the debtor fails to pay the debt in full.

The main purpose of the Bill of Rights was to:

provide for restrictions on the power of the federal government.

The condition of job status, hiring, promotion, or the privileges or benefits of a job on a willingness to submit to sexual behavior is called:

quid pro quo sexual harassment.

The main functions of administrative agencies are:

rule-making, enforcement, and adjudication.

Delivery of the complaint and summons to the defendant is called:

service of process.

Roberta owns a flower shop by herself. She has full control and full responsibility for the flower shop. Robert has a:

sole proprietorship.

The Clean Water Act requires:

standards on the discharge of pollutants from a point source into a navigable waterway or public sewage system.

ABC, Inc., sells poorly-made products. Samantha has never bought an ABC product but she is worried that someone will be injured. Samantha files a lawsuit against ABC, alleging that its products are defective. ABC's best ground for dismissal of Samantha's lawsuit is that Samantha does not have:

standing

The legal doctrine by which a plaintiff who is injured by a defective product can win a lawsuit for damages without showing any fault on the part of the manufacturer is called:

strict product liability.

If Oscar agrees to paint Felix's sports car but fails to put a pinstripe around each of the headlights as called for in the contract, then the fact that Oscar has done everything else required under the contract would constitute:

substantial performance.

This international body consists of more than 150 nations and enforces various treaties and agreements between the nations aimed at reducing international tariffs and trade barriers:

the WTO.

Dirk is driving an SUV in which Ellen is a passenger when they are involved in a traffic accident and Ellen is injured. Liability may be imposed on Dirk for Ellen's injury if Dirk's driving is:

the actual and proximate cause of Ellen's injury.

EC: The theory of inverse condemnation holds that:

the imposition, by government, of a sufficiently restrictive regulatory burden on a piece of property can amount to a taking, and requires the payment of just compensation.

"Exhaustion of administrative remedies" means that:

the individual charged with violation of a rile did not use all possible appellate procedures within the federal agency before taking the case to court.

The 1933 Securities Act primarily regulates:

the issuance of securities

To initiate a lawsuit, Any files a complaint against Brittany, who responds with an answer. Taken together, the compliant and answer are referred to as:

the pleadings.

EC: The inherent power of states to make laws to promote and protect the health, safety, and welfare of their citizens is referred to as:

the police power.

For an agent of the government, such as a police officer, to be permitted to search a person's home or business, the agent must prove to a magistrate that:

there is a probable cause to believe that the search will turn evidence of a crime.

The federal court will overturn findings of fact made by the government board of an administrative agency during an appeal from the decision of an administrative law judge only if:

there was not substantial evidence to support the findings of fact.

Incorrect Tina, an accountant for United Technology, Inc., learns of undisclosed company plans to market a revolutionary new desktop computer. Tina buys 1,000 shares of United stock. She reveals the company plans to Vic, who buys 500 shares of United stock. Vic tells Wendy, who buys 100 shares. Wendy knows that Vic got his information from Tina. When United publicly announces its new desktop, they all sell their stock for a profit. Wendy is a:

tippee.

A mark or symbol used to identify and distinguish a product from other products is called a:

trademark.

The level of court where one world find a jury is:

trial court

The name of the ethical philosophy which determines the ethical nature of an action by asking it it produces "the greatest good for the greatest number" is:

utilitarianism.

Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely:

voidable.

In contract law, the predominant purpose test applies to determine:

whether a contract is governed by the UCC or the common law.

Termination of an at-will employee, in violation of one of the recognized exceptions to the employer's right to terminate such an employee, is called:

wrongful discharge.