Legal Environment of Business (Wright)

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Francesca has signed a lease for a coveted apartment on Court Street. On the day before she was scheduled to receive the keys, the apartment manager informs her that the previous tenant has decided to extend her lease. If Francesca sues the aparment company, which body of contract law will apply? answers: -Common law of contracts - The Uniform Commercial Code

- Common Law of Contracts

A negotiable instrument is a written document containing the signature of the creator who makes an unconditional promise to pay a certain sum. true or false

true

Tony has contracted with Emil for the purchase of Emil's rare coin. If Emil later backs out of the deal, Tony would be able to sue for specific performance of the contract. true or false

true

Imagine that Toyota issues recall of all of one of their new sport utility vehicles because the vehicles have the tendency to roll over during high speed turns. Which of the following is the most likely reason? Answers: -The product was defective in its design -The product was defective in its manufacture

The product was defective in its design .

Which type of trademark gets the most protection? answers: Generic Suggestive Arbitrary Fanciful

- Fanciful

Which type of clause dictates where a company can be sued? Answers: Choice of law clause Forum selection clause Arbitration clause Fair use clause

- Forum Selection Clause

Why did the CEO of WorldCom go to jail? answers: Fraudulent accounting methods Embezzlement Insider trading Selling trade secrets to China

- Fraudulent accounting methods

Natasha bought a Stark Industries computer. While she was at work, the computer overheated and caught on fire. The fire burned part of her house. In a negligence lawsuit, a jury found that the battery used in the computer was defective in its design. Natasha bought the computer from the retail store Marvel Electronics. Marvel purchases Stark computers wholesale from the Thanos Company. Who should Natasha sue in a products liability lawsuit? Answers: -Stark Industries -Marvel Electronics -The Thanos Company -All of the above -None of the above

-All of the above

If Pedro wants to sue Helen's Truck Outlet, LLC, where is Helen's considered a citizen for the purposes of jurisdiction? Select all answers that apply. answers: -Its state of incorporation -The state where its board of directors meet -The state where it has its principal place of business -The state in which Pablo chooses -Any state where members of the LLC reside

-Its state of incorporation -The state where its board of directors meet -The state where it has its principal place of business -The state in which Pablo chooses -Any state where members of the LLC reside

Buzz sued Peachtree Coffee in the state of Georgia for negligence after he burned himself severely drinking a cup of the defendant's coffee. The jury agreed with Buzz that Peachtree's coffee was too hot for normal human consumption; however, the jury found that Buzz was 50% at fault for negligently carrying his coffee by putting it in a pocket holder of his backpack. The jury awarded Buzz $100,000 in compensatory damages to cover the cost of his recovery. The jury decided against awarding punitive damages. How much is Buzz entitled to recover from the defendant? Answers: $0 $10,000 $50,000 $100,000 There is not enough information to answer this question.

$0.00

Below are courts in a typical state court system. Order the courts from 1 to 4 starting with the highest court working down to the lowest court.

1. United States Supreme Court 2. State Supreme Court 3. Courts of appeals 4. Trial Courts

Mixed sales apply to which type of sales contracts? Answers: -A contract for real estate and stocks -A contract for real estate and services -A contract for goods and services -A contract for goods and stocks -A contract for real estate and goods

A contract for goods and services

Kevin negotiated and bought a used car for personal use from Lana's Car Lot, Inc. Once the agreement was executed, Calvin left with his car. What type of contract is this? Answers: -A simple bailment transaction -A certified owner transfer agreement -A sale on approval contract -A sale or return contract -A simple delivery contract

A simple delivery contract

Which local establishment is most likely a sole proprietorship? answers: Jackie O's Court Street Coffee Buffalo Wild Wings Burrito Buggy

Burrito Buggy

Under the UCC, who bears the risk of loss of the goods during transportation when the parties have agreed to a shipment contract? Buyer, seller, or neither

Buyer

Put the "steps" to successful negligence claim int he correct order. answers: Duty Breach Cause Damages

Duty Breach Cause Damages

In February, the FTC entered into a consent decree with Zoom Video Communications, Inc., about the level of security the company provided for its Zoom meetings. Such a consent decree would require that Zoom stop breaking the law. True or False

False

Julio invented a new type of synthetic fabric. As inventor of the invention, he has the exclusive right to patent the invention. True or False

False

Martin obtained a favorable judgment over Gina on Judge Joe Brown's TV abitration show. That decision can be appealed to a judge. True or False

False

Men and women may not be paid different wages for any reason under the Equal Pay Act. True or False

False

Most corporations offer stocks available to the general public. True or False

False

Pizza Hut claims that "No one outpizzas the Hut." This is an example of deceptive advertising because Domino's Pizza was #1 in gross pizza sales in America in 2021 while Pizza Hut was #2. True or False

False

Buddy's Diner advertises that its coffee is "The World's Best Cup of Coffee." Under the UCC, how is a court likely to treat this statement if a plaintiff sues claiming that Buddy's Diner coffee is not the best in the world? Answer: -An express warranty -An implied warranty -A statutory warranty -Sales puffery -None of the above

Sales Puffery

In November 2012, the citizens of the state of Colorado voted to pass an amendment to the state constitution that permits individuals aged 21 and older to use marijuana recreationally, under certain limits. However, in 1970, Congress passed the Controlled Substances Act, which outlaws the recreational use of marijuana, along with other drugs. If challenged in court, which of the following areas of the Constitution will likely apply? Answers: The Fifth Amendment The Fourteenth Amendment The First Amendment The Supremacy Clause The Takings Clause

The Supremacy Clause

Matt's carpet company just negotiated a contract with April to sell her enough carpet to cover her entire condominium. Matt's company also has a standing offer to install any carpet purchase for 50% off the standard service price. If the carpet installation results in irreparable damage to April's floorboards, which body of contract law will apply to a potential lawsuit? For the purposes of this question, you can assume that the sale of the carpet is the predominant part of the contract since there can be no installation without the carpet. Answers: -The Uniform Commercial Code - Common Law of Contracts

The Uniform Commercial Code

A business' social responsibility expectations should focus. Answers: management employees shareholders the community

The community

A manufacturing franchise agreement is also known as an outsourcing agreement. True or False

True

Adrian sends Rachel a text offering to exchange his basketball season tickets for Rachel's football season tickets. Rachel does not see the text until the following day. She sends a reply text agreeing to the exchange. However, that morning Adrian broke his phone and never received the text. Is there a valid contract? Yes or No

Yes

Which type of trademark is Amazon? answer: Fanciful Arbitrary Suggestive Descriptive

- Arbitrary

Which type of corporations invest a portion of their profits in support of social and environmental causes? Answers: B Corporations C Corporations S Corporations Z Corporations

- B corporation

Which type of trademark is American Airlines? answers: Fanciful Arbitrary Suggestive Descriptive

- descriptive

Which type of trademark is Adidas? answers: Fanciful Arbitrary Suggestive Descriptive

-Fanciful

Match the franchise with the type of franchise agreement it most likely represents: __Brandon Wright Toyota Dealership __Brandon Wright's Dr. Pepper Bottling Company __Papa John's Pizza owned and operated by Brandon Wright LLC __Brandon Wright Canadian Master Franchising Company Answers: Processing plant franchise Subfranchise Distributor franchise Chain-style franchise

1.) Distributor Franchise 2.) Processing Plant Franchise 3.) Chain-Style Franchise 4.) Subfranchise

Match the hypothetical merger with the type of merger it would be. Choose the most likely type. __Southwest Airlines and American Airlines __Metro-Goldwyn-Mayer Studios and AMC Theaters __Boston Beer Company and The Coca-Cola Company __General Electric Company and the Proctor & Gamble Company Answers: Conglomerate merger Market extension merger Horizontal merger Vertical merger

1.) Horizontal Merger 2.) Vertical Merger 3.) Market Extension Merger 4.) Conglomerate Merger

Match each example with the most appropriate type of limit on federal agency powers. __The President appoints a new commissioner to the Federal Communications Commission, but the Senate does not approve the appointment. __Congress passes a law to consolidate the Department of Education and Department of Labor under one executive secretary. __A federal court overturns the decision of the National Labor Relations Board to certify a union election. __A reporter files a FOIA request in order to review the most recent notes of an interpretive decision by the Occupational Safety and Health Administration. Answer: Judicial Statutory Informational Political

1.) Political 2.) Statutory 3.) Judicial 4.) Informational

Match each investor description with the most appropriate type of corporate investment. __Eddy gets paid a standard dividend regardless of how the corporation performs financially. __Freddy's equity in the corporation allow him to exercise his vote at shareholder meetings. __Teddy receives monthly payments from the corporation but retains no ownership in the company at all. __Betty is an employee of the corporation Answers: -Corporate bond -Common stock -No capital investment in the corporation -Preferred stock

1.) Preferred Stock 2.) Common Stock 3.) Corporate Bond 4.) No Capital Investment in the corporation

Order these types of courts from start to potential finish. (??) answers: State trial court State court of appeal State supreme court United States Supreme Court

1.)State trial court 2.)State court of appeal 3.)State supreme court 4.)United States Supreme Court

J.D. Salinger wrote The Catcher in the Rye in 1951. Salinger passed away in 2010. Suppose you owned a book publishing company, and you would like to print copies of The Catcher in the Rye for sale without violating any copyright laws. When is the earliest you could legally do that? Answers: 2021 2045 2071 2080 Never

2080

If the United States wanted to create a new federal cabinet, the Department of Technology, which branch would be responsible for its creation? Answers: Judicial Legislative Executive

Executive

Best Buy offers "open box" sales of returned items, such as TVs, that are marked for sale "as is." This means that the implied warranty of merchantability no longer applies, but the implied warranties of fitness still apply. For the purposes of the question, assume all the open box TVs are being sold for more than $500 each. True or False

False

Cinemark Theatres has decided not to show Netflix original movies in its theaters because Netflix makes its own movies available for streaming within a few weeks. Regal Cinemas has also independently decided not to show Netflix original movies in its theaters. The two companies have violated the Sherman Act. True or False

False

Ethics is the practice of decisions that meet but do not exceed minimum standards set by law. True or False

False

Stock Transfers are required to be registered with the SEC. True or False

False

Last year, President Trump's personal lawyer, former NYC mayor Rudy Giuliani, accused digital election operator Smartmatic of committing election fraud on Fox News television. Smartmatic then filed a $2.7 billion defamation lawsuit against Giuliani, stating that the allegations were false and harmful. Based on these facts, which type of defamation is being alleged in the lawsuit? Answers: -Libel -Slander

Libel

Which area of business contracts is not covered by the Uniform Commercial Code? Answers: -Bank deposits -Leases -Sales -Investment securities -Loans

Loans

Business ethics should derive from a person's or company's own values. True or false

True

Defamation must contain a lie. True or False

True

Punitive damages are used to punish the defendant. True or False

True

Read the following state law: "As to a cause of action arising from any of the acts enumerated in this section, a court may exercise personal jurisdiction over any non-domiciliary, or his executor or administrator, who in person or through an agent: 1. transacts any business within the state or contracts anywhere to supply goods or services in the state; or 2. commits a tortious act within the state, except as to a cause of action for defamation of character arising from the act; or 3. commits a tortious act without the state causing injury to person or property within the state, except as to a cause of action for defamation of character arising from the act, if he (i) regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in the state, or (ii) expects or should reasonably expect the act to have consequences in the state and derives substantial revenue from interstate or international commerce; or 4. owns, uses or possesses any real property situated within the state." What type of law is this? Answers: -A mandatory arbitration statute -A long-arm statute -A statute of limitations -A conflict of law statute -None of the above

- A long-arm Statue

Which Crime?: Stealing money from your employer. Answers: -Forgery -Embezzlement -Money laundering -Wire fraud

- Embezzlement

When a corporation dissolutes, which entity is given the highest priority when the corporation's assets are liquidated? Answers: -Preferred stockholders -Common stockholders -Creditors of the corporation -None of the above

- Creditors of the corporation

Under Texas's food-disparagement law, persons are liable for "damages and any other appropriate relief" if they disseminate information that states or implies that a perishable food product is not safe for public consumption, provided that the information is false and the persons know or should have known that it is false. Which tort most closely aligns with this law? answers: -Invasion of the right to privacy -Defamation -Fraud -Malicious prosecution -None of the above

- Defamation

A car dealership is most likely which kind of franchise? answers: Distributor franchise Processing plant franchise Chain franchise Subfranchise

- Distributor franchise

Margie slips on a patch of ice outside of a Walmart store. She is considering suing Walmart for the injuries she sustained. Such "slip-and-fall" cases normally are litigated under which tort? Answers: -Assault -False imprisonment -Negligence -Intentional infliction of emotional distress -Battery

- Negligence

which type of state will allow any plaintiff to sue for negligence regardless of the plaintiff's amount of fault? answers: Pure contributory state Pure comparative state Modified comparative state South Dakota

- Pure comparative state

Which constitutional provision applies when state laws and federal laws conflict? Answers: - Commerce Clause - Dormant Commerce Clause - Fifth Amendment - Supremacy clause

- Supremacy Clause

Receiving bribes from a bribing foreign officials would violate which law? Answers: -The Anti-Corruption Act -The Foreign Corrupt Practices Act -The Bribery and Defamation Act -The International Agreement on Free Trade

- The foreign corrupt practice act

Juan sued the Discover Computer Company in federal district court for allegedly selling him defective computer equipment. Juan lost his trial, as Discover was found not liable. Which court will Juan need to ask for an immediate appeal of this adverse decision? answers: -State appellate court -The United States Supreme Court -The United State Circuit Courts -Any of the above -Paul cannot appeal his decision because the district court is the court of last resort in this case.

- The united states circuit courts

"I'm Lovin' It" is an example of which type of McDonalds's IP? Answers: Patent Trademark Copyright Trade secret

- Trademark

Which Crime? : A business executive emails marketing material that contains lies about products and services. answers: Wire fraud Forgery Extortion Mail fraud

- Wire Fruad

Which type of trademark is FedEx? answers: Fanciful Arbitrary Suggestive Descriptive

- suggestive

Which law imposes civil and criminal liability on corporate officers and board members? Answers: Revised Model Business Corporation Act Sarbanes-Oxley Act Exon-Florio Amendment Subchapter S Revision Act

-Sarbanes-Oxley Act

Thelma sued Louise for an unpaid debt. After discovery, the parties agreed to all the facts presented before the court. The judge ruled for Thelma. What is this process to avoid a trial called? Answers: -Judgment on the pleadings -Summary judgment -Settlement -All of the above -None of the above

-Summary Judgment

Marty had surgery to repair a broken bone in his leg. A week after the surgery, he was still in pain so he went back to the doctor. A X-ray showed that a piece of metal had been accidentally left in his leg during surgery. For what should Marty most likely sue? Answers: -Contributory negligence -Trespass to person -Negligence per se -Res ipsa loquitur -Assumption of the risk

-Res Ipsa Loquitur

Put these parts of a civil court case in order.(??) answers: Complaint Answer Discovery Trial

1.)Complaint 2.)Answer 3.)Discovery 4.)Trial

Your business is beginning to contract with outside companies in order to increase opportunities. Draft a blanket binding arbitration clause that you can use for your business agreements with other entities. Use the guidelines from your textbook and from the lectures. Craft at least five (5) separate sentences to create a strong arbitration clause. If you need help, locate a good one used by a prominent company for more guidance. Score (10/10)

Any controversy or claim coming out of this Agreement shall be deternined by binding Arbitration Rukes and Mediation Procedures. The award provided by the arbitrators shall be the final and only binding on the parties and may be enforced in any court having jurisdiction. There shall be three arbitrators agreed to by the parties within thirty days of reciepts by responce of the request. If arbitators have no authoruty to reward commerical rules grant any remedy of monetary damage. we faithfully observe this agreement that we will abide by and perform any renderings by the arbitrators and judgment of court if needed.

The decision of an arbitration panel can always be appealed. True or False

False

The plaintiff in a criminal trial is the victim. True or false

False

Wonka Industries, Inc., is under investigation for securities fraud. The Securities Exchange Commission has served the company with a warrant to access its business records and employee emails. Can Wonka assert its right to be free from self-incrimination and not submit to the search? Yes or No

No

The following is an excerpt from a recent news article: "A fan was struck in the head by a foul ball at Dodger Stadium Sunday but was expected to recover. The incident happened in the bottom of the first inning of the team's Major League Baseball game against the Colorado Rockies, when Dodgers first baseman Cody Bellinger was at the plate. The woman was sitting four rows from the field down the first-base line, just beyond protective netting that extends to the end of the visiting dugout, according to ESPN. She was hit by a sharp line drive by Bellinger, who checked on her between innings. She remained in her seat and was given an ice pack, but left 15 minutes later for further attention." Analyze these facts and answer the following questions: For which tort(s) could the injured fan sue? If you were the lawyer for the plaintiff, who would be your potential defendant(s)? What are the elements necessary to prove liability for the tort(s)? In the event of a successful lawsuit, are there any defenses that could be raised to limit liability? What is your opinion on the outcome of the potential lawsuit? (Who wins?) Score : (8./10)

She could only sue for negligence because when attending baseball games the memebrs of the audience are supposed to be aware of the risk while attending that event, they should be aware at all times that an object such as a baseball court potentially hit them. If I were the lawyer of this plantiff my defendant would be the MLB, I was choose them as my defendant because they are aware that all games a injury llike this could occur so they should take extra measures to prevent situations like this to occur. the evidence that would prove liability for negligence would be that the netting was not covering all areas in which could affect a fan at the game, also they could offer sheltered areas for high risk seats such as the one the fan was sitting in. Yes, they could successfully use the assumption of risk defense. I think the fan will lose the lawsuit and the MLB will be considered not guilty.

Carol's employer, a healthcare facility, is committing fraud against the government by filing false Medicare claims. Under which of the following laws might she personally receive a portion of any recovery obtained by the government? Answers: -The False Claims Act -The Racketeer Influenced and Corrupt Organizations Act (RICO) -The Sarbanes-Oxley Act of 2002 -The Medicare Recovery Act -The Healthcare Fraud Act

The False Claim Act

An Employee would be considered a stakeholder in a business. True or False

True

Professor Wright's lecture decks are copyrighted materials. True or False

True

Strict liability holds a defendant liable even in situations where the defendant is not at fault at all. True or False

True

Luke's Lobsters is headquartered in Maine but has filed their articles of incorporation in the state of Delaware, even though Luke's Lobsters has no restaurants in Delaware. Yet, this is a good business strategy because Delaware corporations are afforded a relatively easy and cheap filing process, a low corporate tax rate, and a separate court system dedicated to resolving corporate lawsuits. True or False

True

Myriad Hotels allows customers to reserve its hotel rooms online through affordable and competitive. The FTC is claiming that Myriad is deceiving consumers by advertising such lower prices but then charging added "resort fees" at customer checkout to make up for the reduced rates. These allegations are an example of bait-and-switch advertising. True or False

True

Peter, Paul, and Mary form a limited partnership. Peter and Paul are both general partners while Mary is a limited partner. One of the limited partnership benefits afforded to Mary is that she will not be held personally liable for any torts or contracts on behalf of the limited partnership. True or False

True

Terry installed a pool drain in a swimming pool that did not meet the requirements of the national Pool and Spa Safety Act. Subsequently, the owner of the pool lost a finger that got stuck in the drain. Terry is liable for negligence per se. True or False

True

The Federal Trade Commission protects consumer access to lines of credit such as the approval of an application for a credit card. True or False

True

The civil right settlement in Pigford v. Glickman, one of the largest in history, attempted to remedy past discrimination by the United States Department of Agriculture. True or False

True

The United States Football League ("USFL") was a professional football league that played in the spring. After two sucessful seasons, the USFL decided to move its schedule to the fall, to compete directly with the National Football League ("NFL"). Before playing a single game in the fall, the USFL folded. The defunct league then sued the NFL for operating a monopoly on professional football in America. A jury decided at trial that the NFL was indeed intentionally operating as a monopoly but that the USFL had contributed directly to its own demise by moving its schedule to the fall. Therefore, the jury awarded the USFL damages in the amount of $1. How much was the USFL entitled to under treble damages? Answers: $0 $1 $2 $3 $100

$3.00

Rufus sued Donkey Coffee in the state of Ohio for negligence after he burned himself severely drinking a cup of the defendant's coffee. The jury agreed with Rufus that Donkey's coffee was too hot for normal human consumption; however, the jury found that Rufus was 50% at fault for negligently carrying his coffee by putting it in a pocket holder of his backpack. The jury awarded Rufus $100,000 in compensatory damages to cover the cost of his recovery. The jury decided against awarding punitive damages. How much is Rufus entitled to recover from the defendant? Answers: $0 $10,000 $50,000 $100,000 There is not enough information to answer this question.

$50,000

Jane was injured while at an axe throwing bar. An axe that she threw at the target bounced back and struck her in the leg. She sued the bar for negligence. At trial, evidence was presented that the axe Jane was given had a loose handle. Evidence was also presented that Jane had been drinking heavily prior to throwing the axe. The jury found her 51% at fault and the bar at 49% at fault. Select all of the following types of states where Jane will be able to recover damages for her injury Answers: -A pure contributory negligence state -A pure comparative negligence state -A modified comparative state that bars recovery at 50% -A modified comparative state that bars recovery at 51% -A state where recovery is appropriate only when the defendant engages in gross negligence

- A pure Comparative Negligence state

Carl's Candy store has signed a paid agreement with Katrina, a local college athlete and popular influencer on social media, that will require Katrina to make at least one post on social media each month promoting the stores products and sales. The store will not tell Katrina how or when to make and promote her posts. Which type of authority has Katrina been given as a promotional agent? Answers: -Actual -Implied -Equitable -Inherent

- Actual

Lizzy and Lara have a very cute baby named Larkin. After seeing Larkin's pictures uploaded to a baby modeling site, Lauren believes she can help Lizzy and Lara obtain a modeling contract for Larkin. Under the fiduciary duties as principals, which of the following would not be required by law. answers: -Payment for Lauren's services -Reimbursement of any costs incurred to Lauren while promoting Larkin's pictures -Providing Lauren with more pictures of Larking upon request from a potential partner -All of the above -None of the above

- All of the above

Workers at the Amazon warehouse in Staten Island, NY, recently voted to authorize the formation of a union for warehouse employees. Amazon will be required to collectively bargain with the new union for which subjects under the National Labor Relations Act? Answer: -Subjects affecting worker hours such as vacation time -Subjects affecting worker wages such as performance bonuses -Subjects affecting worker conditions such as employee discipline -All of the above

- All of the above

National Publishing Company plans to file for bankruptcy because the company cannot afford to pay the mortgage on the building that houses its printing press. The board of directors of the company agree to reorganize under Chapter 11. Which of the following are benefits of the National Publishing Company filing for Chapter 1. Answers: -Any legal actions against National Publishing Company regarding its debt will be put on hold. -Any unexpired leases can be rejected by National Publishing Company. -Any unsecured debt by National Publishing Company can be discharged on a prorated basis. -All of the above are benefits of filing for Chapter 11 -None of the above are available benefits when filing for Chapter 11.

- All of the above are benefits of filing for chapter 11.

West Coast Corporation forms West Coast LLC to operate a new business division of the corporation. Which of the following examples would cause West Coast LLC to lose its limited liability protections if true. Answers: -West Coast Corp. is the sole investor in West Coast LLC, and West Coast LLC essentially does the same business as its parent corporation. -West Coast LLC consistently maintains an account balance only with enough money to pay its bills . -West Coast Corp. specifically organized West Coast LLC in order to keep from paying its creditors. -All of the above would pierce the LLC veil -None of the above would pierce the LLC veil

- All of the above would pierce the LLC veil.

Mark's company "Red, White, and True" makes clothing that incorporates the American flag. Mark wants every product to include "Made in the USA" on an individual tag. In order to comply with FTC restrictions, what must Mark guarantee to consumers? Answers: -At least 51% of the products' components and labor of of U.S. origin -100% of the products' components and labor of of U.S. origin -At least 51% of the products' components and labor of of U.S. origin with the other 49% coming from either Canada or Mexico under the North American Free Trade Agreement -All, or virtually all, of the products' components and labor are of U.S. origin

- All, or Virtually, of the products' components and labor are of U.S. Orgin

You agree that any dispute or claim relating in any way to your access or use of the Services as a consumer of our Services, to any advertising or marketing communications regarding the Company or the Services, to any products or services sold or distributed through the Services that you received as a consumer of our Services, or to any aspect of your relationship or transactions with Company as a consumer of our Services will be resolved by binding arbitration, rather than in court, except that (1) you may assert claims in small claims court if your claims qualify, so long as the matter remains in such court and advances only on an individual (non-class, non-representative) basis; and (2) you or the Company may seek equitable relief in court for infringement or other misuse of intellectual property rights (such as trademarks, trade dress, domain names, trade secrets, copyrights, and patents). This Arbitration Agreement shall apply, without limitation, to all claims that arose or were asserted before the Effective Date of this Agreement. To the extent the parties are permitted under this Agreement to initiate litigation in a court, both you and the Company agree that all claims and disputes arising out of or relating to the Agreement will be litigated exclusively in the state or federal courts located in Santa Clara County if you are a California citizen or resident, and in the United States District Court for the District in which you reside if you are not a California citizen or resident. " Select all of the contract clauses that apply below: Answers: -A choice of law clause -A termination clause -A fair use clause -A forum selection clause -An arbitration clause

- An Arbitration Clause -A forum selection clause

Jamal hired Tina to sell his house. Tina finds a pair of buyers over the internet. The buyers do not know that Jamal is the owner of the house, but they want to make the purchase based on the pictures of the home provided by Tina. What type of principal is Jamal? Answer: -A disclosed principal -An undisclosed principal -An unidentified principal -Jamal is not a principle in this example.

- An unidentified principal

Fred was just bequeathed $100,000 from his Uncle James. Fred wants to invest that money in a company. However, Fred wants to avoid the process of double taxation in order to make as much return on his investment as possible by paying as little tax as possible. Which type of company should Fred not consider for his investment? Answers: -S Corporation -C Corporation -Limited liability company -Limited partnership

- C Corporation

wo years ago, Elsa and Anna started a limited liability company selling ice cream at a store they called Frozen. They signed a two-year lease at a location on Arendelle Avenue for $2,000 per month, a total lease of $48,000. After 18 months, Frozen went bankrupt and stopped doing business. The owner of the Arendelle location sued Elsa and Anna for the remaining $12,000 owed on the lease contract. Which of the following is true? Answers: -Elsa and Anna are not personally liable for the remaining $12,000, but the other members of Frozen LLC are. -Elsa and Anna are personally liable for the remaining $12,000, but the other members of Frozen LLC are not. -Elsa, Anna, and the other members of the LLC are all personally liable for the remaining $12,000. -Elsa, Anna, and the other members of the LLC are not personally liable for the remaining $12,000. -There is not enough information to answer the question.

- Elsa, Anna, and the other members of the LLC are not personally liable for the remaining $12,000.

Jerry uses a wheelchair for mobility. If Jerry's employer does not provide reasonable accommodations, such as ramps and elevators at the workplace, who should Jerry contact to sue his employer for employee discrimination under the Americans with Disability Act? Answers: -Equal Employment Opportunity Commission -Department of Labor -National Labor Standards Board -Immigrations and Customs Enforcement

- Equal Employment Opportunity Commission

Shelby hired Jenny, an attorney, to represent her in an employment discrimination case. Which term below best describes Jenny's new relationship to Shelby? Answers: -Trustee -Principal -Fiduciary -Employee

- Fiduciary

Which of the following is an example of a unilateral contract? Answers: -Grant offers to mow Carol's lawn for $15. Carol accepts and agrees to pay Grant $15. -Mike agrees to sell his car to Mary for $4,000. Mary agrees to buy Mike's car for $4,000. -Lisa promises to pain Kathy's house for $2,000. Kathy agrees to pay Lisa $2,000. -If you wash my car, I will pay $20.

- If you wash my car, I will pay $20

Pretend you are sued by a customer in federal court in Ohio for allegations of negligence. If that lawsuit gets to a trial, where would that trial begin? Answers: -At the Sixth Circuit Court of Appeals -At the Ohio State Supreme Court -At the Supreme Court for the United States -In one of Ohio's two federal District courts -In an Ohio state County Court of Common Pleas

- In one of Ohio's two federal District Courts

Brice just finished law school and wants to form a partnership with his fellow graduates, Horace and Joyce. Brice decided against forming a sole proprietorship because he needs the expertise and availability of at least two other lawyers to successfully fulfill his vision for the law firm. That vision will require each lawyer to counsel clients but also manage the day-to-day operations of the firm. However, Brice does not want to be held personally responsible for any malpractice committed by his partners. Which form of partnership would be best for Brice's new business? Answers: -General partnership -None of the above. Brice should not form a partnership. -Limited partnership -Limited liability partnership

- Limited Liability Partnership

Which of the following securities transactions would need to be filed with the Securities Exchange Commission? Answers: -An Ohio corporation that only offers stock to Ohio citizens -Terri sells her shares in Coca-Cola to Mike -Capital raised from a bank -All of the above -None of the above

- None of the Above

What are the four specific types of negotiable instruments? Answers: -Futures contracts, notes, drafts, and checks -Notes, certificates of deposits, drafts, and check -Bilateral contracts, certificates of deposits, notes, and check -Notes, drafts, checks, and novation

- Notes, Certificates of deposit, drafts and checks

Convicted fraud perpetrator and former Theranos CEO Elizabeth Holmes was barred from serving as director or officer for a public corporation for ten years due to her criminal deceptive practices while running Theranos. Which body of law gives the federal government the power to ban individuals from serving as a director or officer for a public corporation? Answers: -Subchapter S Revision Act -Sarbanes-Oxley Act -Model Business Corporation Act -Revised Model Business Corporation Act -Federal statues on criminal fraud

- Sarbanes- Oxley Act

Which of these corporations likely has the most amount of shareholders? Answers: -The Procter & Gamble Company (C Corp.) -Casa Nueva, Inc. (S Corp.) -Boy Scouts of America (Nonprofit corporation) -Patagonia, Inc. (B Corp.)

- The Procter & Gamble Company ( C. Corp)

Sherrita, the founding general partner and the only general partner of Golden Circle LP, just died from a sudden heart attack. The remaining limited partners have decided to wind up the business. Who will get paid first? Answers: -Sherrita's family, as heirs of her business investments -Golden Circle's remaining limited partners -The bank that still is owed $10,000 from a business loan

- The bank that still owed $10,000 fro a business loan

Kroger employees are part of the United Food and Commercial Workers union. The UFCW is governed by which law? Answers: -The Landrum-Griffiths Act -The Wagner Act -The Taft-Hartley Act -The Fair Labor Standards Act

- The landrum-Griffiths act

Select all of the following potential investment items that would likely be considered a security under the Securities Acts of 1933 and 1934. Answers: -The preferred stock of a major, public corporation -The sale of a life insurance policy -An NFT ("non-fungible token") for a picture of a celebrity -Cryptocurrencies that have not used an initial coin offering -A bond from a closely-held, private corporation -A rare painting by Pablo Picasso -The sale of a gold necklace -Cryptocurrencies that used an initial coin offering -An interest in a gas drilling venture -The transfer of common stock from a grandmother to a granddaughter

- The preferred stock of a major, public corporation -A bond from a closely-held, private corporation -Cryptocurrencies that used an initial coin offering -An interest in a gas drilling venture

Which of the following is not a reason why the administrative agencies of the United States are collectively referred to as the "Fourth Branch" of government? Answers: -Most of the laws that affect businesses come from the rules, regulations, and policies made by administrative agencies. -The administrative agencies are by far the largest arm of federal government. -The Constitution specifically includes such agencies as part of the checks and balances of federal power. -The agencies retain legislative, executive, and judicial powers.

-The Constitution specifically includes such agencies as part of the checks and balances of federal power.

In January, Chad bought 1,000 shares of stock in GameStop, Corp., a publicly-traded stock on the New York Stock Exchange. As a new shareholder, which rights to the company does Chad not have? Answers: -The right to inspect GameStop's financial records and books at any time -The right to attend the annual shareholders' meeting every June in Texas in person and the right to vote at that meeting -The right to transfer his stocks to another through a sale or a gift -The right to sue another company on behalf of GameStop if he feels that company has caused harm to GameStop -The right to sue GameStop in the event he feels he has suffered damages due to some action by GameStop's board of directors or company officers

- The right to inspect Gamestop's Financial records and books at any time

The World Wildlife Foundation once sued the World Wrestling Federation over use of the trademark "WWF." Which factor will a court not consider in a trademark infringement case like this? Answers: -Who filed for the trademark first -The quality of the junior mark's products -The degree of similarity between the two marks -Evidence of actual consumer confusion -The proximity of the marks

- Who filed for the trademark first

Which type of agency category best fits the Environmental Protection Agency? Answer: -An executive agency because its leader is a part of the President's cabinet -An independent agency because it is not under directly control by the president -A hybrid agency because its leader serves at the pleasure of the President but is not a part of the President's cabinet

-A hybrid agency because its leader serves at the pleasure of the President but is not a part of the President's cabinet

Amy: "I will transfer you my Apple stock on your 17th birthday or if it ever drops below $200 a share, whichever comes first." Kristen: "That sounds good to me. Deal!" Which of the "four corners" of contract formation are present in this scenario? Select all that apply. Answers: -Agreement -Consideration -Legality -Capacity

-Agreement -Legality

Choose all of the following that apply only to criminal court and not to civil court. -Case must be proven by a preponderance of the evidence -Defendant can be punished with jail or probation -Jury decision must be unanimous -Defendant must enter a plea of guilty, not guilty, or nolo contendere -Case must be proven beyond a reasonable doubt -Defendant can appeal an adverse decision -Defendant can be punished with paying for compensatory damages -Case is initiated by a formal complaint

-Defendant can be punished with jail or probation -Jury decision must be unanimous -Defendant must enter a plea of guilty, not guilty, or nolo contendere -Case must be proven beyond a reasonable doubt

Brian has hired Kelly as an independent contractor to install solar panels on his roof. Which of the following activities would Kelly not be able to legally do as an independent contractor under basic law? answer: -Enter into contracts to buy additional solar panels on Brian's behalf -Install the panels without Brian's direct supervision -Bring her own tools to the job -Install panels for Brian's neighbors

-Enter into contracts to buy additional solar panels on Brian's Behalf

Which of the following is a reason not to file a patent for a new invention? Answers: -Federal patent protection is very weak. -Filing for a patent requires publicizing the details of the invention. -Filing for a patent fails to protect against reverse engineering of the invention. -All of the above are reasons not to file for a patent. -None of the above are reasons not to file for a patent.

-Filing for a patent requires publicizing the details of the invention.

Martin gave his friend Tommy a valuable piece of jewelry for safekeeping at Tommy's jewelry store, which is heavily protected by a high-tech security system. Tommy accidentally sold Martin's jewelry to a customer named Gina. Who can Martin sue under the UCC? Answers: -Tommy -Gina -Tommy and Gina -No One

-Gina

Which of the following is a violation of Section 2 of the Sherman Act? Answers: -McDonald's and Burger King agree to set the minimum price of a hamburger at $9.99. -McDonald's agrees to close all its stores in Florida if Burger King agrees to close all its stores in Illinois. -McDonald's and Burger King promise each other not to buy any potatoes from the Idaho Potato Company. -McDonald's and Burger King agree to a merger in order to price Chick-fil-A out of the fast food market. -None of the above violate Section 2 of the Sherman Act.

-McDonald's and Burger King agree to a merger in order to price Chick-fil-A out of the fast food market.

Janet has come to your law firm asking for your advice about a business opportunity she was recently presented. Her neighbor Donte has asked her to be a limited partner in his new restaurant business. All she needs to do is invest $50,000 in the company and allow Donte to use the empty building she owns for the restaurant at a reduced rate of rent. She likes his business plan, and she believes she can make a great return on her investment. However, she is a little skeptical because Donte has no experience opening a restaurant. She is willing to risk the loss of her $50,000 investment as well as the empty building she has been unable to rent or sale, but she does not want to risk losing any of her other personal or capital assets. Which activity could make Janet personally liable for any torts or contracts involved in Donte's restaurant? Answers: -Investing more money and/or land in Donte's restaurant -Investing less money and/or land Donte's restaurant -Asking for a larger equity share than Donte's other limited partners -Participating in the management of the restaurant along with Donte -Janet has no reason to worry because limited partners cannot ever be held personally liable like general partners are

-Participating in the management of the restaurant along with Donte

Which of the following was the result on appeal in Crawford v. LVNV Funding, LLC, the case in the textbook involving whether the Fair Debt Collection Practices Act disallows the attempt to collect a debt when the claim is time-barred? Answers: -The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act allows the attempt to collect a debt when the claim is time-barred using the "least sophisticated consumer" standard. -The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act disallows the attempt to collect a debt when the claim is time-barred using the "reasonable consumer" standard. -The Eleventh Circuit Court of Appeals dismissed the appeal due to the appeal having not been timely filed. -The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act allows the attempt to collect a debt when the claim is time-barred using the "reasonable consumer" standard. -The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act disallows the attempt to collect a debt when the claim is time-barred using the "least sophisticated consumer" standard.

-The Eleventh Circuit Court of Appeals ruled that the Fair Debt Collection Practices Act disallows the attempt to collect a debt when the claim is time-barred using the "least sophisticated consumer" standard.

Imagine that an administrative law judge presides over a hearing on whether or not federal employee mask mandates can be upheld by the United States Department of Health. If the judge finds for the Department of Health and the employees appeal the decision to a federal district court judge, what is the most likely outcome? Answers: -The decision will be upheld by the federal district court judge. -The decision will be overturned by the federal district court judge. -The appeal will be denied by the federal district court since judicial orders by administrative law judges cannot be appealed.

-The decision will be upheld by the federal district court judge.

Chad has just been hired as the chief financial officer of Unicorn, Inc. Which of the following rights are guaranteed to Chad as an executive officer of a corporation? Answers: -The right to be paid in accordance with his employment contract -The right to dissolve the corporation as he deems necessary -The right to purchase new shares of stock before the general public -The right to participate in board meetings to appoint corporate officers and vote on major business decisions -The right to share in the quarterly profits of the company

-The right to be paid in accordance with his employment contract

Imagine you have just been asked to serve on the board of directors for your cousin's corporation. Which of the following rights would you not be guaranteed if you agree to serve on the board? Answers: -The right to share in the quarterly profits of the company -The right to be reimbursed for any legal fees in the event of a lawsuit against the company that names the board of directors as defendants -The right to be paid for your service to the company -The right to participate in board meetings to appoint corporate officers and vote on major business decisions -The right to inspect the financial books and records of the company

-The right to share in the quarterly profits of the company.

The QuikMart gas station routinely sells gasoline to consumers at a 10 cent discount than its competitors. However, QuikMart requires that its customers purchase a car wash with any gasoline purchase for more than $30. Answers: -This is an example of an illegal horizontal tying arrangement. -This is an example of an illegal vertical tying arrangement. -This is an example of a legal horizontal tying arrangement. -This is an example of a legal vertical tying arrangement.

-This is an example of an illegal horizontal tying arrangement.

Martin was involved an a serious car accident. The medical services that arrived found Martin unconscious. He was rushed to the hospital where doctors decided to induce him into a coma to save his life. Thanks to the work of the staff, Martin survived and eventually was brought out of his coma. He war released from the coma a few weeks after. The hospital eventually sent Martin a hefty bill for their services. Martin's insurance only covered a little more than half the legitimate hospital charges. Is Martin legally responsible for the remaining charges? Answers: -Yes because an express contract was created. -Yes because an implied contract was created. -Yes because a quasi-contract was created. -No because no contract was created. -There is not enough information to answer this question.

-Yes because a quasi-contract was created.

Match the example with the constitutional clause that most likely applies: __The federal government forces Jerry to sell part of his property to the state so that a city can build a public golf course on the land __Congress passes a law that adds a small tax to any online transaction for purchases made from other countries. __Congress passes a law that the Environmental Protection Agency will exclusively regulate exhaust coming from diesel gas-powered trucks so that no state will be able to regulate the area. __The Internal Revenue Service fines a company $1 million without providing the company an opportunity to respond to any charges first. __New Hampshire voters pass a law that out-of-state drivers must apply for a Pennsylvania drivers license before driving a vehicle within its state borders. Answer choices: A) The takings Clause B) The Full Faith and Credit Clause C) The Commerce Clause D) The Supremacy Clause E) Due Process Clause

1. The Takings Clause 2. The commerce clause 3. The supremacy Clause 4. Due Process clause 5. The Full Faith and Credit Clause

Match each law with its most likely source: __The Seventh Amendment's right to a jury in a civil trial __The False Claims Act __The Supreme Court's decision in Hertz Corp. v. Friend __ The Equal Employment Opportunity Commission (EEOC) rules on mediation __North American Free Trade Agreement (NAFTA) __President Trump suspending student loan payments due to the coronavirus Answers: Treaty Constitutional law Statutory law Executive order Administrative law Case law

1.) Constitutional Law 2.) Statutory Law 3.) Case Law 4.) Administrative Law 5.) Treaty 6.) Executive Order

Match the Internal Revenue Service (IRS) legal action with the type of Constitutional power it represents. __The IRS requires a business to turn over its financial records and statements. __The CEO of a company must defend himself in U.S. Tax Court against claims of tax fraud by the IRS. __The IRS changes the amount of the meals and entertainment deductions available for business tax returns. Answers: Executive Judicial Legislative

1.) Executive 2.) Judicial 3.) Legislative

Match the activity with the white-collar crime that most likely applies __Jerry receives a settlement check from Monk's Cafe as part of a lawsuit over a spilled cup of hot coffee. He changes the amount on the check from $100,000 to $1,000,000. __George works for the New York Yankees. The Yankees' CFO authorizes George to use $50,000 to purchase new baseball bats. George purchases $25,000 worth of bats and puts the other $25,000 in his personal bank account in order to book a vacation for himself. __Elaine's boyfriend Puddy runs a car service shop. A local drug dealer approaches Puddy to ask if he can filter some of her illegal profits through creative financing of the shop's revenue. Puddy agrees. __Kramer uses a pay phone to make horse racing bets but has no intention on paying out any of the winnings. Answers: Wire fraud Embezzlement Money laundering Forgery

1.) Forgery 2.) Embezzlement 3.) Money Laundering 4.) Wire fraud

Assume the statements below are untrue. Then match each false statement with the most appropriate tort. __Karen sends this tweet: "@DonkeyCoffee employees pee in the tea. Don't go there!" __Juan stands outside of Chipotle, yelling "The manager of this store beats his wife!" __Joe tells Stacy that Pawpurr's discriminates against their Black employees by paying them less. __The Athens News runs a story alleging that Buffalo Wild Wings uses horse meat in their hamburgers. Answers: Food disparagement Slander per se Libel Slander

1.) Libel 2.) Slander per se 3.) Slander 4.) Food Disparagement

Pair each example of intellectual property with the type of protection the federal government provides. __A table tennis paddle __The brand name Ping Pong __A table tennis commercial advertisement Answer: Copyright Patent Trademark

1.) Patent 2.) Trademark 3.) Copyright

Order the trademarks below from most federal protection to least federal protection. answers: IBM Pepsi Chapstick Dick's Sporting goods Copperstone

1.) Pepsi 2.) IBM 3.) Copperstone 4.) Dick's Sporting goods 5.) Chapstick

Match the illegal business activity with the type of per se violation it represents under Section 1 of the Sherman Act. __Two computer stores agree not to sell laptops at a price lower than $1,000 per unit. __Two competing limousine companies agree not to market their services in a given geographic area that belongs to the other company __Two competing hospitals refuse to do business with an insurance company unless the insurance provider agrees to lower fees. Answers: Price fixing Market sharing Group boycott

1.) Price Fixing 2.) Market Sharing 3.) Group Boycott

Match the example with the type of administrative power it best represents. __ The U.S. Department of Education issues guidelines on how college athletic programs can be in compliance with Title IX. __A lawyer is appointed as an administrative law judge for the Federal Communications Commission. __The Civil Rights office of the U.S. Department of Agriculture investigates claims of racism in farm loans. __The U.S. Bureau of Safety and Environmental Enforcment issues permits for business that drill for oil. Answers: Licensing Judicial authority Executive power Rulemaking power

1.) Rule Making Power 2.) Judicial Authority 3.) Executive Power 4.) Licensing

Match the example with the most appropriate type of business the example represents: __Monica runs her own food truck. __Rachel and Phoebe run their own food truck. __Ross invests in Chandler's and Joey's coffee shop. __Marcel buys stock in a Central Park coffee shop. Answers: General partnership Limited liability company Sole proprietorship Corporation

1.) Sole Proprietorship 2.) General Partnership 3.) Limited Liability Company 4.) Corporation

Match the examples with the appropriate jurisdictional issue. __Ken sues on behalf of Barbie because Barbie does not want to spend the time on a lawsuit __Barbie defrauds Ken in the state of Florida. Ken sues Barbie in California. __Barbie wants to sue Ken in the state of Nevada over a gambling debt. Barbie personally serves a summons for the lawsuit while Ken is vacationing in Las Vegas, far from his home in Kansas. --Ken obtains a favorable judgment over Barbie in the state of New Jersey. The jury awards Ken $250,000. Barbie has refused to pay the amount, so Ken sues Barbie in her home state of South Carolina with the hopes that a court will award Barbie's $250,000 home to Ken to settle the legal debt. Answers: Quasi in rem jurisdiction Venue Standing In personam jurisdiction

1.) Standing 2.) Venue 3.) In personam jurisdiction 4.) Quasi in re jurisdication

National Publishing Company plans to file for bankruptcy because the company cannot afford to pay the mortgage on the building that houses its printing press. The board of directors of the company agree to reorganize under Chapter 11. Which of the following are benefits of the National Publishing Company filing for Chapter 11? Answers: -Any legal actions against National Publishing Company regarding its debt will be put on hold. -Any unexpired leases can be rejected by National Publishing Company. -Any unsecured debt by National Publishing Company can be discharged on a prorated basis. -All of the above are benefits of filing for Chapter 11 -None of the above are available benefits when filing for Chapter 11.

All of the above are benefits of filing for Chapter 11.

Maria has agreed to find a buyer for Jeremiah's car. If Maria finds a buyer but Jeremiah refuses to pay what he owes to Maria, which body of contract law will apply? Answers: -Common Law of Contracts -The Uniform Commercial Code

Common law of contracts

Victoria owns a bed and breakfast gifted to her by her grandparents. Victoria has the right to run the bed and breakfast and make changes as she pleases as long as she never sells alcohol. This is known as what type of estate? Answer: Conditional estate Life estate Fee hold estate Leasehold estate Fee simple absolute

Conditional estate

Suppose Marquita, a scientist, learned how to reverse engineer from a bottle of Coca-Cola. Marquita would be guilty of theft of a trade secret. True or False

False

The Equal Employment Opportunity Commission is charged with prohibiting employment discrimination based on sexual orientation. True or False

False

Under the UCC, a lease is not valid without a negotiated price and length of the lease. True or False

False

Clarence owns his own LLC. Will Clarence automatically be subject to double taxation by the government -- both on his LLC revenue and personal income tax statement? Yes or No

No

Natalia owns a clothing store that sells sports jerseys. Romeo gives Natalia a rare jersey signed by a famous baseball player to hold onto for safekeeping since Natalia has a security system that does a great job of protecting her valuable inventory. Natalia accidentally sells Romeo's jersey to a collector named Quentin. Who can Romeo sue under the UCC? Answer: -Quentin -Natalia -Quentin and Natalia -No one

Quentin

There is an issue with employee parking at the Dr. Smiles orthodontics company, and the company executives must decide how to proceed. The employees want more parking spaces, but adding more spaces will be costly and could infringe upon the surrounding community's homes and businesses. In any ethical business-related decisions, the business should consider the stakeholders in the company. Which of the following would be a stakeholder in the Dr. Smiles company? Answers: -The community only -The shareholders of the company only -The employees of the company -The community and shareholders only -The community, shareholders, and employees

The Community, shareholders, and employees

Recently, former Theranos CEO Elizabeth Holmes was found guilty in federal court in California on charges of criminal fraud and conspiracy to commit criminal fraud. The victims of Elizabeth's alleged fraud claimed that she duped them out of their substantial investments into her company by lying about her the capability of her company's technology. Who was the plaintiff in this criminal trial? Answers: The jury The judge Elizabeth Holmes The investors The United States government

The United States Government

Eminent Domain laws in the United States and Germany are quite similar. True or False

True

Martin was involved an a serious car accident. The medical services that arrived found Martin unconscious. He was rushed to the hospital where doctors decided to induce him into a coma to save his life. Thanks to the work of the staff, Martin survived and eventually was brought out of his coma. He war released from the coma a few weeks after. The hospital eventually sent Martin a hefty bill for their services. Martin's insurance only covered a little more than half the legitimate hospital charges. Is Martin legally responsible for the remaining charges? Answers: -Yes because an express contract was created. -Yes because an implied contract was created. -Yes because a quasi-contract was created. -No because no contract was created. -There is not enough information to answer this question.

Yes, because a quasi-contract was created.


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