Finance 240 Midterm Practice Questions

What are the three steps of a civil trial? Choose 3 answers.

opening arguments + presentation of testimony and evidence + closing arguments

Which of the following types of intellectual property protection usually has a set term of 20 years?

patent

A business using a word, phrase, symbol, or design to identify and distinguish its brand of goods would protect that branding with a:

patent protection

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

How a hearing or court case is conducted is governed by:

procedural law

Which of the following are the two primary types of damages available for an intentional tort? Choose 2 answers.

punitive damages compensatory damages

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 2005, bankruptcy reform laws:

required debtors to pay more of their debts in bankruptcy.

What remedies are available after an anticipatory repudiation? Choose 3 answers.

requiring assurance suspending performance cover

The CAN-SPAM Act regulates unsolicited commercial emails by: (Select two)

requiring opt-out systems prohibits deceptive email headings

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers.

rescission reformation

Substantive law governs a person's:

rights and responsibilities

what type of speech does not receive First Amendment protections? Choose 3 answers.

speech that incites lawlessness threats to the president of the United States obscenity

What are the three levels of scrutiny used by courts to determine the constitutionality of a government action? Choose 3 answers.

strict scrutiny + rational basis review + intermediate scrutiny

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

What is the result of a contract in which both parties are wrong about a material fact of the contract?

the contract is voidable

Tort law provides a civil remedy for violations of which of the following protected interests? Choose 3 answers.

the destruction of or damage to property personal and physical safety personal or business reputation

Employers have the right to monitor emails by their employees when: (Select two)

the employer has provided the computer on which the emails are sent. the company has provided the email server on which the email was sent.

The default provision of the Uniform Commercial Code (UCC) is that, unless otherwise specified, title to goods being sold passes when:

the goods are physically delivered to the buyer.

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 medical bills actual missed days at work

A written or authenticated security agreement is a requirement when creating a secured transaction unless:

the secured party has possession or control of the collateral.

Which of the following is the provision of the U.S. Constitution that establishes federal law precedence over state law?

the supreme clause

A business using a word, phrase, symbol, or design to identify and distinguish its brand of goods would protect that branding with a:

trademark

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.

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

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.

Under which of the following could an online user reasonably expect to maintain privacy protections under the Fourth Amendment? (Select two)

when the user is entering in their credit card information to an online store when the user posted to a private online journal which did not allow for sharing or followers

Under the Uniform Commercial Code (UCC), risk of loss passes to the buyer:

whenever the contract designates it to pass.

If an anonymous online user commits defamation against an individual or business, may that individual or business compel the Internet Service Provider to reveal the identity of the user?

yes, if ordered to do so by a court

An author may expect to receive copyright protection for the life of the author plus:

70 years

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.

Which of the following is a correct statement of federal preemption of state law under the Supremacy Clause? Choose 2 answers.

A state law that requires documentation of citizenship is preempted by the National Voter Registration Act because the act only requires a statement under oath. + A state's attempt to regulate television and radio is preempted by federal law because the federal government has regulated the entire field.

Which of the following are objections that a creditor may bring to bankruptcy distribution proceedings? Choose 3 answers.

An unsecured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy. A secured creditor may object to being excluded from the distribution if she had not been notified of the bankruptcy. A creditor may object to a distribution plan if the debtor has been fraudulent.

Which international agreement requires its member countries to establish border procedures for searching international shipments of goods?

Anti-Counterfeiting Trade Agreement

Internet Service Providers (ISPs) are not liable for the content posted by someone on a neutral forum under the:

Communications Decency Act of 1996

Which of the following laws regulate wiretapping on a federal level?

Electronic Communications Privacy Act

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.

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.

In either state or federal court

Which of the following is an example of federal agency regulations that impact business operations?

Internal Revenue Service rules for business tax audits

A restriction on commercial speech will be valid if it meets three criteria. What are they? Choose 3 answers.

It must not be overly restrictive to meet its objectives. It must directly advance a government interest. It must seek to implement a substantial government interest.

What is the difference between legal remedies and equitable remedies for breach of contract?

Legal remedies are monetary while equitable remedies are non-monetary.

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.

You collect antiques and regularly travel the country looking for good deals. In your wanderings, you find an old fiddle and offer the owner $5. The owner accepts, and you take your treasure home. After you get the fiddle home and do your research on it, you discover the fiddle is actually worth $5,000. What a find! What do you think would happen if the owner tried to cancel the contract and get the fiddle back?

Mistake of value is not a valid defense to a contract, so the owner could not get his fiddle back.

Does the First Amendment protect defamatory speech online, provided it is anonymous?

No, because defamatory speech is unlawful.

You've spent the last eighteen months writing a how-to book for entrepreneurs who want to establish their own business. As you put the final editing touches on the book, you start thinking about how you can protect your book, and how you can make sure you receive the profit from it. What do you think you should do to make sure only you can profit from your work?

Nothing; copyright protection happens automatically once the work is in tangible form.

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.

How does the 1980 United Nations Convention on Contracts for the International Sale of Goods (CISG) differ from the Uniform Commercial Code (UCC)? Choose 3 answers.

The CISG is stricter on requiring mirror image acceptances. The CISG does not apply to consumer sales. Under the UCC, an irrevocable offer must be in writing, but under the CISG it can be oral.

You have a small business supply store. You order fifty boxes of paper from Hammerhill Paper Supply and tell them you need the paper delivered within four days, and Hammerhill agrees to provide the paper within four days. Neither you nor Hammerhill mentions the price of the paper, though. How do you think the price of the paper will be determined if you get into a legal dispute with Hammerhill about it?

The court will determine a reasonable price at the time of delivery.

Online activities and content may be legally regulated through the following laws or mechanisms: (Select two)

The first amendment of the constitution Tort Law

A product is unreasonably dangerous to consumers when it meets which of the following conditions? Choose 3 answers.

The manufacturer failed to adequately warn the consumer about the dangers of the product. It is inherently dangerous but is even more dangerous than an ordinary consumer would expect. A less dangerous alternative was available but was not used by the manufacturer.

Which of the following describes a product with a defective condition?

The product is not reasonably fit for its ordinary and intended use.

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.

The abbreviation "U.S." in the legal citation Brown v. Board of Education, 347 U.S. 483 (1954) references the:

United States reports

If a user of a social media app, publicly posts content incriminating themselves, may police use that as evidence against the individual?

Yes, because there was no reasonable expectation of privacy in the post.

You lost your high-paying corporate job six months ago when the company went out of business. After being out of work for four months, you finally find a job, but make much less money than you did before. At the same time, your debts have been rising dramatically due to some medical issues that resulted in large doctor and hospital bills. You start to consider filing for bankruptcy but are concerned that if you file for bankruptcy, you will lose your car. How would you get to work then? Do you think there is anything you can do to ensure that you don't lose your car if you file for bankruptcy?

Yes, you can reaffirm the debt.

Which of the following qualifies as a "good" under Article 2 of the Uniform Commercial Code?

a commercial freezer unit

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

What is the term for when a merchant gives a written, signed assurance that he or she will not revoke an offer for a stated period of time?

a firm offer

Which of the following types of intellectual property may only be owned by a business?

a trade secret

Failure to pay a debt for having a car bumper replaced and painted to match the car would lead to:

an artisan's lien.

The role of a mediator is to:

assist parties in a dispute in resolving their differences out of court.

The earliest international agreement that provided copyright protections among the signatories to the agreement was the:

berne convention

What is the prosecutor's burden of proof in a criminal case?

beyond a reasonable doubt

Legal researchers will use which of the following tools to locate a court decision? Choose 2 answers.

bound volumes of reported court decisions, organized by jurisdiction, date, and courts + online legal research engines such as Lexis, Westlaw, or Bloomberg

In contrast to federal courts, state courts have what kind of jurisdiction?

broad

What is the most common way that duties under a contract are discharged?

by performance

What do legal professionals use to analyze court decisions that are relevant to their clients' cases?

case briefing

When a defendant faces a negligence lawsuit, what defenses are available? Choose 3 answers.

comparative fault assumption of risk contributory negligence

In the United States, who creates federal statutory law?

congress

A purchase money security interest (PMSI) is created when a seller or lender agrees to extend credit to a buyer for all or part of the purchase price of:

consumer goods

When used as collateral, a laptop computer used by a family for email, games, and schoolwork would be classified as:

consumer goods

For an original work of authorship, such as a book, song, poem, article, recording, or other work, an author would seek the protection of a:

copyright

A secured party who has control will prevail over a secured party who has only filed for these types of collateral:

deposit accounts, investment property, and letter-of-credit rights.

One of the key purposes of the Digital Millennium Copyright Act (DMCA) is to bring copyright laws into the digital age by regulating digital media copyright infringement. As with non-digital assets, an owner of copyrightable material:

does not need to include a (c) symbol on their digital work in order to be protected from reproduction.

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

State statutory law is created by:

elected members of the state legislature.

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

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

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

The process by which a creditor may take possession of (and usually sell) collateral to satisfy an unpaid debt is called:

foreclosure.

What does venue refer to?

geographic location of court

Through which proceeding do prosecutors obtain an indictment?

grand jury

A business will be able to protect its trademark for how long?

if unregistered, as long as it is in use

What must a prosecutor prove when the law requires mens rea?

intent

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

Jan claims she was under the influence of drugs and has no recollection of committing a crime. This defense is known as:

intoxication

The Bankruptcy Code exempts (limited to a certain dollar amount) which type of property?

jewelry

An employee who violates a company's social media policy by public posting negative comments about the company:

may be fired

Which of the following is the lowest priority of claims in bankruptcy?

medical debts

Which of the following provides notification to a criminal defendant in custody of the right to an attorney?

miranda warning

When a plaintiff in a strict liability lawsuit has used a product in a way that is not intended or that the defendant could not have reasonably foreseen, the defendant may assert which defense?

misuse or abuse of a product

Which of the following citations indicates that the citation is referencing state statutory law? Choose 2 answers.

Ark. Code Ann. § 6-17-2401 (2020) + Cal. Penal Code § 11164(a) (West 2020)

Which of the following is an equitable remedy for breach of contract?

an order for specific performance

How long do you think the protection for your book will last?

as long as you live, plus seventy years

Which section of the Uniform Commercial Code (UCC) applies to contracts for sales of goods?

Article 2

In what ways does Article 2 of the Uniform Commercial Code (UCC) differ from contract rules under the common law? Choose 3 answers.

Under the UCC, merchants have more flexibility in having open terms. Under the UCC, any manner of showing agreement to contract is accepted, but under the common law acceptance must mirror the offer. Under the UCC, the only required definite term is quantity of product being sold. Other terms such as price and delivery time can be left open.

What implied terms do all contracts include? Choose 2 answers.

an implied covenant of fair dealing an implied covenant of good faith

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

If the U.S. Supreme Court determines that a state or federal law violates the U.S. Constitution, it may:

invalidate the law.

What characteristics must an item possess to be classified as a "good"? Choose 2 answers.

it must be tangible it must be movable

White-collar crime, which is usually committed by corporate or government officials, typically involves crimes committed for financial gain, such as: Choose 2 answers.

mail and wire fraud embezzlement

When does title to stolen goods transfer?

never

Under the Uniform Commercial Code (UCC), what is the only required term for a valid sales contract?

the quantity of goods being sold

You play drums in a band that is very popular on your campus. In addition to playing other groups' hit songs, your band plays music that you write. One of your songs has gone viral and has over five million "likes" on Facebook. Your band copyrighted this song and is selling the single via iTunes. You learn that someone in Spain is selling downloads of the song without your permission. You want to stop the unauthorized sales. You are aware of the Berne Convention, an international treaty that would require Spain to recognize your copyright and enable you to enforce your rights in that country. You are thrilled that this treaty exists and you wonder how it came into existence. How are international agreements like the Berne Convention adopted?

Treaties must be approved by the supreme power of each nation. In the United States, approval by both the president and the Senate is required. The treaty must pass in the Senate by a minimum vote of two-thirds.

After eating at a local restaurant, in which you had a heated disagreement with the owner, you decide to go online and post a review. Your review states that not only would you never eat their again due to their unprofessionalism, but that your food was bad and the restaurant was so unclean that it should be inspected by the health department, because you "saw a rat run across the floor of the kitchen." If your review is posted anonymously, does the restaurant owner have any legal recourse so they may find out who you are and possibly sue you for defamation?

Yes, the business may have the right to uncover your identity in order to bring a suit against you.

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

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.

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

Which branch of government has the authority to enact law?

legislative

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.

LaVon contracts with Nathan for Nathan to sing at her comedy club every Friday night in July. The first Friday, the crowd loved Nathan. The second Friday, they booed him. The next week, Nathan got a better offer, so he hired his twin brother Ethan to fill in for him at LaVon's club. Can LaVon compel Nathan to perform?

No, because you cannot compel performance of personal services under specific performance.

You live in Texas. During the COVID-19 pandemic, you decide to visit your cousins in New York City. The number of coronavirus cases in New York state is at an all-time low. The number of cases in Texas, however, is at an all-time high. To help control the spread of the disease in New York, the governor of New York issues an order requiring that all visitors from Texas quarantine for two weeks upon arrival in New York. This order will be in effect at the time of your planned trip. You had hoped to visit some of the sites of New York City and do not want to spend two weeks inside at your cousin's house. You believe the order of the governor violates your fundamental right to interstate travel. Does the order of the governor restricting travel violate your substantive due process rights?

No, it doesn't, because the interest of the government in controlling the spread of coronavirus and protecting the health of New Yorkers is a compelling state interest.

You've decided to buy some rental property but know very little about the law regarding landlord-tenant relations. You head to the local law library to do a little research on the subject. The law librarian is extremely helpful, and with his help, you have lots of reading material about landlord-tenant law! You discover there are several kinds of law and that some laws are procedural and other laws are substantive. What do you think procedural law covers?

The methods of enforcing the rights established by substantive law.

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.