BUL 3310 FSU Bailey Exams 1 -4
Under which standard of review would a court hear a case involving government regulation of commercial speech?
Intermediate scrutiny
Anne, a resident of New York, is suing Bill, also a resident of New York, in a contract dispute that is governed by New York state law. This controversy would be classified as an ______ case.
Intrastate
Maya, who lives in Maryland, hired Mark, a contractor who lives and is licensed in Maryland, to renovate her home. The contract is governed by Maryland law. Should a dispute arise over the contract, it would be classified as a(n)---------------case.
Intrastate
Pam and Sam took an overnight flight to Hawaii. Without their knowledge or permission, an agent from Big Ad Agency took a picture of them as they slept and used it in a full-page ad in a national magazine. The agency had superimposed an image of a man in a business suit, working on a laptop, sitting next to them. The caption read "Our Brokers Never Sleep." Pam and Sam could sue Big Ad for? Public nuisance Invasion of the right to privacy Slander Private nuisance
Invasion of the right to privacy
Assume that the resort town of Ocean View passed a law imposing an extra tax on boardwalk food businesses that used plastic cups, plates or utensils. Plastic litter costs the town more to dispose of and it wants to pass this cost on to the merchants. Fran Fries, a boardwalk food vendor, claims that the law is denying her equal protection of the law. Which of the following tests will the court apply in deciding this case?
Is the law rationally related to a legitimate government interest?
Which of the following statements about res judicata is correct?
It binds the parties to the decisions in a lawsuit so that neither can re-litigate the case
Which of the following statements about quantum meruit is correct? It is an equitable remedy for wrongful interference with a contractual relationship. It is an equitable remedy to prevent unjust enrichment when there is no contract. It is a contract remedy used for breaches involving fraud. It is a contract remedy used when the breaching party is insolvent.
It is an equitable remedy to prevent unjust enrichment when there is no contract.
When workers protest a management policy by refusing voluntary overtime and arranging for selected workers to call in sick, they are engaging in a ___ - strike - lock out - job action - boycott
Job Action
The power of the judicial branch to declare that laws are invalid because they violate the Constitution is known as ______.
Judicial Review
The power of a court to hear cases and issue binding decisions is called _________.
Jurisdiction
The term used in law to denote the power of a particular court to hear a case and render a binding decision is
Jurisdiction
The U.S. Senate is composed of _______________ representatives from each state.
2
Which of the following is the kind of contract in which each party offers as consideration a promise to do something? 1.Quasi 2. Bi-lateral 3.Implied in law 4. Unilateral
2
Local hunter went onto Neighbor's land because deer had been seen there. Hunter knew that the land belonged to his neighbor and that it was posted against hunting. If Neighbor sues Hunter: (select all the answer options that are correct) 1. Hunter will be required to share his venison 2. Hunter may have to pay neighbor's court costs and attorney's fees 3. Hunter may be liable for punitive damages. 4. Hunter will be liable for willful trespass to land.
2,3&4
Which law governs the lease of the goods? State common law The Convention on the Lease of Goods The Consumer Credit Act 2A of the Uniform Commercial Code
2A of the Uniform Commercial Code
If a debtor has 12 or more unsecured creditors, at least ___ of these creditors with aggregate claims of $13, 475 must sign the petition to force the debtor into an involuntary bankruptcy 3 6 7 12
3
In door to door sales, customers have a "cooling off period" during which they can cancel their orders. The cooling off period is for ___ days a. 1 b. 3 c. 5 d. 180
3
A minimum of ______ Supreme Court justices must agree to accept a case.
4
An illusory promise is created when 1. The promise is conditional on an event happening first that is outside the promissor's control. 2. The promise cannot be performed within 1 year of the contract date. 3. The promise is conditional on any other event happening first. 4. The promise is conditional on an event happening first that is totally within the promissor's control.
4
Article 2A of the Code governs Leases of goods Consignments Sales of securities Sales of fixtures
Leases of goods
A civil law system is based on ______ and a common law system is based on ______.
Legislative codes?..judicial decisions
Which of the following is not classified as a good under Article 2? Food sold as take out and consumed at home. Food sold and consumed in a restaurant An unborn race horse A 3 month lease on a lakeside cabin.
A 3 month lease on a lakeside cabin.
Which of the following mistakes would result in the rescission of the contract? A unilateral mistake of law A unilateral mistake of value A unilateral mistake of material fact A bilateral mistake of material fact
A bilateral mistake of material fact.
Which of the following is an unliquidated debt? An interest-free loan of $10,000 from Grandfather to Tim. A payment of $2,500 is to be made every June 1st for 4 years. A mortgage for 20 years at 5.02% interest A car loan for 6 years at 2.50% interest A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges.
A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges.
Which of the following is an example of an unliquidated debt? A promissory note for the sum of 10,000 to be repaid in 6 years at 5 interest. An installment sales contract for the purchase of a 5,000 mower with 200 down and the rest financed at 8 for 3 years. A cell phone service contract for 29.99 per month. A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250.
A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250.
Under the Fair Credit Reporting Act, the reports generated by consumer credit reporting agencies may be furnished to any entity that possesses a ___ for the information Legitimate need Interest concern Minimal curiosity Subpoena
Legitimate need
Which of the following employers is NOT subject to Title VII's antidiscrimination provisions? - A business organized as a sole proprietorship - A business that has twelve employees - A U.S. firm doing business in England - A corporation with fewer than fifteen shareholders
A business that has twelve employees
Which of the following is protected by the 5th Amendment prohibition against self-incrimination?
A confession obtained by physical force
Which of the following injuries would justify plaintiff using res ipsa loquitur? A medical malpractice claim against a surgeon who left a sponge in a patient Res ipsa loquitur could be used in all of the above. A head injury sustained in the pool of a waterslide at an amusement park An automobile accident at a city intersection
A medical malpractice claim against a surgeon who left a sponge in a patient.
Mark is suing Al for alienation of affection, claiming that Al stole his fiance, Amy. His state no longer recognizes alienation of affection as an issue that can be litigated. Which motion should Al file in response to this suit?
A motion to dismiss
In a disparate treatment case, the plaintiff can defeat the defendant's claim that the discriminatory employment decision was taken for a "legitimate non-discriminatory reason" by proving that the reason offered was ... - a pretext - a sham - illusory - fraudulent
A pretext
Which of the following forms of slander would not require that plaintiff show special damages? (select all the answer options that are correct) A statement that someone had a sexually transmitted disease A statement that an accountant had stolen money from a client A statement that restaurant served bad tasting food. A statement that a female student was sexually promiscuous
A statement that someone had a sexually transmitted disease A statement that an accountant had stolen money from a client A statement that a female student was sexually promiscuous
Which of the following is not an element of a valid contract? Legal capacity of the parties to the contract Agreement Consideration A written document with notarized signatures
A written document with notarized signatures.
What is the difference between libel and slander? Libel is a written communication, and slander is an oral communication. Libel is also a felony, but slander is not. Libel requires that plaintiff prove malice on the part of the defendant, but slander does not. Businesses can only sue for defamation based on libel, not slander.
Libel is a written communication, and slander is an oral communication.
Which of the following is not required to create a partnership? A. A written agreement between the parties. B. Two or more persons C. An understanding to share profits and losses D. A common interest and intent to conduct business activities together.
A. A written agreement between the two parties
Persons who contract with the owner to furnish labor or material or construct a building are known as _________. A. Contractors. B. Subcontractors. C. Authorized agents. D. Mortgagees.
A. Contractors
What kind of business organization is subject to the most regulation at the state and federal level? A. Corporation B. Partnership C. Limited Partnership D. Professional Association
A. Corporation
Which of the following is recognized as a disadvantage to doing business as an LLC? A. Existing court decisions addressing LLC issues and formation are relatively undeveloped, which may lead to legal uncertainty when making business decisions B. Individual members of the LLC can never bind the LLC in a valid and enforceable contract. C. Compared to other business entities, the LLC is taxed more heavily by the IRS. D. An LLC requires the participation of several owners, which can sometimes complicate day-to-day business decisions.
A. Existing court decisions addressing LLC issues and formation are relatively undeveloped, which may lead to legal uncertainty when making business decisions
A __________ is a party whose promise is not limited to a single transaction or to a single creditor. a. General guarantor. b. Special guarantor. c. Creditor. d. Obligee.
A. general guarantor
A ________ provides security for a creditor without involving an interest in the property, where the security for the creditor is provided by a third person's promise to be responsible for the debtor's obligation. A. Suretyship. B. Artisan's lien. C. Mechanic's lien. D. Foreclosure sale.
A. suretyship
Which of the following statements about administrative crimes is false?
Administrative crimes cannot be punished by imprisonment.
Components of Codes of Ethics often include ____ . Obey the law Be honest and open Treat people with respect All of the above
All of the above
Exceptions to the employment at will doctrine have been created by which of the following? - state statutes - federal statutes - state courts - all of the above
All of the above:
In which pleading would a defendant make a claim of self-defense?
An answer
Which of the following workers is covered by the Fair Labor Standards Act's wage and hour requirements? - A child actor while making a movie - The CEO of Ford Motor Company - An assembly line worker in a Ford Motor Company plant - The sales representative of a pharmaceutical company whose territory covers three states
An assembly line worker in a Ford Motor Company plant
Which of the following is eligible to file for bankruptcy under Chapter 7? An insurance company An individual A railroad A saving and loan association
An individual
A person who is given power of attorney is called an ___ - attorney at law - attorney in fact - factor - general agent
Attorney in fact
What is the limit of shareholders in subchapter S corporations? A. 10 B. 35 C. 100 D. There is no limit
B. 35
The combination of two corporations that results in the dissolution of both corporations and the emergence of a new corporation is a ___ A. Merger B. Consolidation C. Purchase of assets D. Bulk Transfer
B. Consolidation
An employer who prevents employees from coming to work in an effort to accelerate contract negotiations between management and union leadership engages in a ___ - boycott - job action - lockout - strike
Lockout
A summons may be served on a defendant located in another state if the state in which the trial is to take place has an______________statute
Long arm
A shareholder who cannot attend a shareholder meeting may give another person the right to vote her shares in that election. This temporary grant of authority is a ___ A. Warrant 0% B. Proxy C. Assignment D. Delegation
B. Proxy
Acts of a corporation that goes beyond the powers granted to it by the state of in its charter are ___ acts A. Criminal B. Ultra vires C. Preemptive D. Peremptory
B. Ultra Vires
A ___ is the voluntary relinquishment of the right to a mechanic's lien before a notice of lien is filed a. Satisfaction and accord. b. Waiver. c. Collection proceeding. d. Confessed judgment
B. Waiver
A security interest in personal property in favor of one who has performed services on the personal property is an ________. A. Mechanic's lien. B. Artisan's lien. C. Color of title. D. Security Deposit.
B. artisans lein
A lien for the value of material and labor expended in the construction of buildings and other improvements is a _________. a. Artisan's lien. b. Mechanic's lien. c. Suretyship. d. Right of redemption
B. mechanics lien
Bill is in the business of refinishing furniture. When Bill takes a piece of furniture from a customer for refinishing, he has the legal status of a (n) _________. Obligee Assignee Bailee Donee
Bailee
In a criminal case, the burden of proof on the prosecution is
Beyond a reasonable doubt
Big Corporation (BC) is an American business incorporated in the State of Delaware. Its principal place of business is in New Jersey. Franklin lives in New York. For purposes of diversity of citizenship, Big Corporation is a citizen of
Both Delaware and New Jersey
Which of the following section of the Uniform Commercial Code governs the sale of securities A. Article 2 B. Article 2A C. Article 8 D. Article 9
C. Article 8
A Limited Partnership must have ___ A. At least one limited partner who participates in management decisions. B. An equal ratio of limited partners to general partners. C. At least one general partner. D. Equal capital contributions from both limited and general partners.
C. At least one general partner
A Limited Partnership must have ____________. A. At least one limited partner who participates in management decisions. B. An equal ratio of limited partners to general partners. C. At least one general partner. D. Equal capital contributions from both limited and general partners
C. At least one general partner.
Under the "pass through" principle, a business entity A. Delegates duties of the business to a subcontractor B. Assigns assets of the business to a receiver. C. Avoids double taxation D. Conducts high risk activities through a subsidiary.
C. Avoids double taxation
Rod and Todd have joint and several liability as sureties on a loan made to Rod's business by First Bank. Under this agreement, Todd is a ___ A. General guarantor B. Special guarantor C. Co-surety D. Sub-surety
C. Co-surety
Rod and Todd have joint and several liability as sureties on a loan made to Rod's business by First Bank. Under this agreement, Todd is a _________________. A. General guarantor B. Special guarantor C. Co-surety D. Sub-surety
C. Co-surety
Preferred stock whose unpaid dividends accrue and are paid when earnings are available is ___ preferred stock a. Participating b. Non-participating c. Cumulative d. Convertible
C. Cumulative
What is the equitable rule that 1 distributes assets of an insolvent partnership first to creditors of the partnership and 2 does not let partnership creditors reach the assets of individual partners until the partners' personal creditors are satisfied? A. Equitable distribution B. Comity of assets C. Marshaling of assets D. Partnership partition
C. Marshaling of assets
The doctrine of judicial review was first articulated in
Marbury v. Madison
If a judgement for dollar damages is not paid, the judgement creditor may apply for a ___ A. Garnishment B. Co Surety C. Writ of execution D. Notice of lien
C. Writ of Execution
In determining the rights and duties of the parties to an agency relationship, the courts look to Case law The Uniform Commercial Code The National Labor Relations Act Federal common law
Case law
The jurist who presides in a court of equity is called the _____________.
Chancellor
The jurist who presides over an equitable proceeding is called the
Chancellor
The document that the state issues evidencing that a corporation has been duly formed is the corporation's ___
Charter
Al and Ben were clients of Big Brokerage Firm (BBF). They suffered financial losses because of fraudulent securities dealings by BBF. Many other clients were victims as well, with losses that varied depending on the size of the accounts and the dates of certain trades. Al and Ben filed suit against BBF on their own behalf and on behalf of the other clients who suffered losses. This suit is an example of a (n)_____________________suit
Class action
Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. The difference between the cost of the carpet in the contract with Carl and the cost Bill had to pay the new vendor can be recovered from Carl as _________ damages. Consequential Compensatory Nominal Punitive
Compensatory
Which element of a contract is met by a bargained-for exchange? Consideration Legality Agreement Capacity
Consideration
When an employer creates a work environment so hostile and intolerable that a reasonable employee would quit, the employer has created a condition of ___ - emotional distress - constructive discharge - retaliation - disparate impact discrimination
Constructive discharge
The negligence doctrine that most favors the defendant is... Contributory negligence Negligence per se Comparative negligence Res ipsa loquitur
Contributory negligence
The Fair Credit Billing Act provides a mechanism for consumers to remedy errors received on ___ Credit Card Bills Bank Statements Consumer Savings Accounts Consumer Subprime Accounts
Credit Card Bills
A bond holder is a ___ of the corporation; and a shareholder is a ___ of the corporation
Creditor---Owner
The purpose of the automatic stay is to prevent a. Debtors from hiding personal property. b. Creditors from collecting on debts. c. Creditors from filing involuntary bankruptcy petitions d. Creditors from converting a Chapter 11 into a Chapter 7
Creditors from collecting on debts.
The trend is for more and more states to adopt uniform laws governing
Criminal law
Minority shareholders have the best chance of electing directors in a corporation that uses the ___ method of voting
Cumulative
Which of the following is NOT one of the recognized disadvantages of doing business as a corporation? A. A corporation must comply with a great number of state and federal regulations. B. Corporate profits are subject to double taxation. C. A corporation must qualify to do business in each state in which it engages in business activities. D. A corporation can be in existence for a maximum of 99 years.
D. A corporation can be in existence for a maximum of 99 years
Which of the following decisions would require a unanimous vote of the partners? A. Hiring an accountant to prepare the partnership information return for federal taxes. B. Buying materials from a new supplier. C. Having the parking lot repaved and installing new lights. D. Admitting a new partner into the partnership
D. Admitting a new partner into the partnership
Sharing in net profits is not prima facie evidence that a partnership exists if the profits were paid by the partnership ... A. As rent B. For wages C. As an annuity to the spouse of a deceased partner D. All of the above
D. All of the above
An important factor to consider in the creation of a business organization is: A. Liability B. Control C. Taxation D. All of the above
D. All of the above are important factors to consider
Which of the following statements about a joint venture is true? A. It can be the plaintiff in a lawsuit without involving the individuals who form the joint venture. B. It can be the defendant in a lawsuit without subjecting the individuals who form the joint venture to liability. C. It is limited by statute to thirty-five members. D. Individuals form it to conduct a single, or very limited, business activity.
D. Individuals form it to conduct a single, or very limited, business activity
Which of the following would a represent a breach of fiduciary duty by a general to the limited partners in a limited partnership? A. The general partner takes action to personally profit from the business of the partnership. B. The general partner takes action to minimize the risks and debts that are incurred by the partnership. C. The general partner enters into contracts on behalf of the partnership without first consulting the limited partners. D. The general partner uses certain partnership assets to secure a loan for a business venture that is not undertaken in the name of the partnership.
D. The general partner uses certain partnership assets to secure a loan for a business venture that is not undertaken in the name of the partnership.
Which of the following statements about proprietorships is true? A. Proprietorships are taxable entities apart from the owners. B. A business can have up to thirty-five owners and still be a proprietorship. C. A proprietorship cannot generate more than 10 million in proceeds per tax year. D. The owner of a proprietorship is personally liable for all the debts of the proprietorship.
D. The owner of a proprietorship is personally liable for all the debts of the proprietorship
When considering whether a partner has breached his or her fiduciary duties to the partnership, courts are likely to consider all of the following, except: A. Specific language of the Partnership Agreement. B. Applicable state partnership statutes. C. Prior court decisions. D. The partner's personal net worth.
D. The partner's personal net worth
Wendy Witness testified for the plaintiff in a suit against Dan Defendant in which he was charged with fraud. The jury found for Dan. Dan wants to sue Wendy for defamation because the statements she made about him on the witness stand were found to be untrue. What result? Dan can sue Wendy for defamation, but must prove actual malice. Dan can sue Wendy for libel because the transcript reduced the defamation to writing. Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness. Dan can sue Wendy for slander, but must prove actual damages.
Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness.
The Fair Debt Collection Practices Act was enacted by Congress to control the behavior of ___ Creditors Debtors Debt Collectors Politicians
Debt Collectors
The decision issued by a court of equity is called an
Decree
Comments contained in judicial opinions that are not necessary to the decision of the case are called
Dicta
Comments contained in judicial opinions that are not necessary to the decision of the case are called:
Dicta
A principal whose identity is known to a third party is a ___ principal - disclosed - undisclosed - partially disclosed - transparent
Disclosed
Athlete Superstar hired Angie Agent to negotiate a contract for him with a major cereal company. Photos of Athlete Superstar, in various action poses, are to be prominently displayed on every box of GoodForYou cereal for one year. In these circumstances, Athlete Superstar is a (n) ____________ principal. Disclosed Partially undisclosed Undisclosed Special
Disclosed
The only principal who can ratify a contract is a ___ principal A.Disclosed, B.Undisclosed, C.Partially disclosed, D.Both a and c can ratify a contract.
Disclosed
The type of employment discrimination that occurs when employment practices have the effect to disqualify a large portion of a protected class is ___ discrimination - disparate treatment - disparate impact - quid pro quo - malum in se
Disparate impact
The type of employment discrimination that requires a plaintiff to show that the discrimination is intentional is ___ discrimination - disparate treatment - disparate impact - malum in se - malum prohibitum
Disparate treatment
The test of whether the federal government can regulate a business activity under the Commerce Clause is:
Does the activity substantially affect or impact interstate commerce?
Assume that Iowa passes a law requiring that all beverages sold in the state in plastic containers must be bottled in 1 plastic. Assume also that it is the practice in the bottling industry to put beverages in 2 containers. Special bottles will have to be bought for distribution in Iowa and special procedures developed for their handling. If out- of- state bottlers bring suit challenging the constitutionality of Iowa's law, which test will the court apply?
Does the law impose an undue burden on interstate commerce without conferring a substantial benefit on Iowa?
Which of the following statements about the Employee Retirement Income Security Act (ERISA) is true? - ERISA requires that all employers with fifteen or more employees provide an employer pension plan. - ERISA requires that all employers with fifteen or more employees provide a health care plan. - ERISA sets standards for employer sponsored pension plans and requires periodic and detailed disclosures about the pension's funding and inv - A and C only
ERISA sets standards for employer sponsored pension plans and requires periodic and detailed disclosures about the pension's funding and inv
Money awarded to an accident victim to make up for lost wages would be classified as ______________damages. Non-economic Economic Nominal Punitive
Economic
Sam, a sales clerk in a local store, falsified return receipts and pocketed the cash. Because he was acting in a fiduciary capacity (that is, acting for another in a position of trust and confidence) he committed the crime of _____________________.
Embezzlement
Assume that Connecticut took 600 acres of private property to build an overpass over a major state road. This is an exercise of the state's power of _________.
Eminent domain
Huge public construction projects, such as the building of the Hoover and Norris dams, required that the government take land belonging to individuals and businesses, whether the owners wanted to sell or not. This power of the government to take personal property for the good of the public is__________________.
Eminent domain
Which of the following statements about employer-funded pensions and health benefit plans is true? - Employers are required by federal law to provide health insurance for their employees. - Employers are required by federal law to provide pension plans for their employees. - Employer pension plans are subject to numerous federal reporting and disclosure laws. - Both A and B
Employer pension plans are subject to numerous federal reporting and disclosure laws
What is the legal doctrine that allows an employee to quit at any time for any reason and an employer to fire an employee at any time for any reason? - freedom of contract - free market economics - employment at will - caveat emptor
Employment at will
The common law system in the United States has its roots in
England
An act of Congress that forbids creditors from discriminating against potential debtors on the basis of selected attributes is the ___ Equal Credit Opportunity Act Credit Civil Rights Act Credit Discrimination Act Collective Borrowing Act
Equal Credit Opportunity Act
What is the agency, created by Congress, to administer the provisions of Title VII that deals with discrimination in the workplace? - National Labor Relations Board - President's Commission on Workplace Opportunity - Equal Employment Opportunity Commission - Employment and Labor Relations Commission
Equal Employment Opportunity Commission
What is the federal statute that prohibits employers from paying employees of one gender less than employees of another gender for doing substantially equal work? - Bona Fide Qualifications Act - Lanham Act - Equal Pay Act - Gender Equity Act
Equal Pay Act
The primary source of law used to decide cases in courts of equity is
Equitable Maxims
The record date on which a dividend is payable is the ___ date
Ex dividend
Another term for punitive damages is ___________damages. Exculpatory Inculpatory Exemplary Criminal
Exemplary
Compensatory damages would include all of the following except? Lost wages Property damages Exemplary damages Pain and suffering
Exemplary damages
Trader, a business located in Rutland, Vermont, is shipping goods from the Port of Boston to a customer in Oslo, Norway. The contract calls for Trader to deliver the goods and have them safely loaded on the ship, Lodestar. Trader's liability ends when the goods are on the ship. The contract will read? F.A.S.Lodestar, Boston F.A.S.Rutland, Vermont F.O.B.Lodestar, Boston F.O.B.Oslo, Norway
F.O.B.Lodestar, Boston
The federal legislation that prohibits banks from taking money from a customer's checking or savings account to pay a delinquent credit card account with them is the ___ NCUA Act FDIC Act Fair Credit Billing Act Checks and Deposits Act
Fair Credit Billing Act
An Act of Congress that controls the gathering, preservation and reporting of credit-related information is the ___ a. Truth in Lending Act. b. Equal Protection Act. c. Fair Credit Reporting Act d. Equal Credit Opportunity Act
Fair Credit Reporting Act
$1 is never legally adequate consideration in a contract because no one will willingly incur a legal detriment for $1. True False
False
A bankruptcy trustee does not have the power to invest the assets of the bankruptcy estate
False
A business organized as a proprietorship may have up to, but not more than, 35 owners T/F
False
A buyer who discovers that goods bought C.O.D. are defective has no recourse against the seller for the defective goods. True False
False
A common carrier is an insurer of both the goods and the passengers it transports. True False
False
A consumer's liability for an unauthorized electronic transfer of funds is limited to $150 T or F?
False
A corporation need not turn over its internal records in a criminal proceeding because that would violate the corporation's right not to incriminate itself.
False
A creditor can never be required to give the surety notice that the debtor is in default T/F
False
A landowner traditionally owes the same duty of care to anyone who comes onto his property. True False
False
A member of an LLC can never be personally liable for the debts of the LLC. True/False?
False
A multiple listing agreement lists real property with several brokers, but only the selling broker earns a commission on the sale T or F?
False
A partnership cannot have a provision for the continuation of a partnership upon the death of one of the of the partners T/F
False
A partnership is a taxable entity T/F
False
A plaintiff must have minimum contacts with a state in order to file suit there.
False
A principal always has the right to terminate an agency T or F?
False
A principal may terminate the agency of a disloyal agent only if the principal suffered a financial loss because of the agent's disloyalty T or F?
False
A seller who fills a motor with heavy grease to keep it from knocking is engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation. True False
False
A shareholder's right to dissent from a proposed merger and have his shares purchased by the corporation is the right of preemption T/F
False
A unilateral mistake of value is grounds for rescinding the contract. True False
False
Agency agreements must always be in writing T or F?
False
Alan was convicted in a criminal trial of assaulting Ben. Ben cannot now sue Alan in tort for personal injuries because Alan is protected against double jeopardy. True False
False
All debtors who are eligible to file under Chapter 7 will receive a discharge
False
All legal conduct is ethical? True False
False
An agent whose agency appointment has terminated has implied authority to continue to conduct the principal's business until third parties are notified of the termination.
False
An agent whose agency appointment has terminated has the implied authority to continue to conduct the principal's business until third parties are notified of the termination T or F?
False
An appeals court does not have the power to review the findings of law made by the judge during the trial, only the jury's findings of fact. True False
False
An artisan's lien is a special lien that applies exclusively to the liens artists receive on artwork they personally performed T/F
False
An automobile mechanic who has possession of a car while repairing it is the bailor of the car. True False
False
An employer cannot be held liable under respondeat superior for the negligence of a person who is working under the employer's control and direction, but who is not being paid T or F?
False
An employer is responsible for the torts committed by an employee while the employee is on a frolic, but not for those torts committed while the employee is on a detour
False
An employer may have liability for the negligent hiring of a servant, but not for the negligent hiring of an independent contractor.
False
An illusory promise is consideration for a unilateral contract, but not for a bilateral contract. True False
False
An independent contractor may file a complaint under Title VII if he or she was not hired by a customer because of gender discrimination
False
Any law that treats citizens differently based on race, religion or national origin will be reviewed under intermediate scrutiny. True False
False
Arizona cannot have different standards for admitting in-state and out-of-state residents to the practice of medicine because of the Full Faith and Credit Clause. True False
False
Assume that you hire an independent contractor to transport hazardous chemicals for your company. If he negligently causes damages to a third part while carrying out the job, you will not be liable because of his status as an independent contractor.
False
At the end of the trial, the losing party asks the judge to overturn the jury verdict in a motion for a judgment notwithstanding the evidence.
False
Contracts entered into by alcoholics are void. True False
False
Contracts formed by the conduct of the parties, rather than expressed in words, are implied-in-law contracts. True False
False
Course of dealing refers to the practices of a particular industry and may be used by the courts to interpret contracts. True False
False
Courts will allow creditors to pierce the corporate veil of any corporation that has only one shareholder T/F
False
Crimes such as murder and rape, which are recognized as heinous in all civilizations, are examples of malum prohibitum crimes. True False
False
Critical thinking does not require deliberation in analyzing a problem.
False
Damages that involve only a very small monetary award are called liquidated damages. True False
False
Damages that involve only a very small monetary award are called liquidated damages. True False
False
Debt collection agencies may publish in newspapers and on a special Web site "bad debt" lists with consumers' names and addresses T or F?
False
Debtor's intangible property will not become part of the bankruptcy estate T or F?
False
Directors and shareholders may vote by proxy T/F
False
Directors have no personal liability for illegally declared dividends T/F
False
Directors may vote on matters in which they have a personal interest T/F
False
Directors must be compensated for their services T/F
False
During a violent storm, Nelson saved Reggie's boat from being destroyed. Reggie was so grateful that he promised to give Nelson $100. Reggie's promise is unenforceable because it is based on moral obligation. True False
False
ERISA requires that all employers provide both health insurance and pension plans to their employee
False
ERISA requires that all employers with more than fifteen employees provide health insurance for the employees
False
Employees who are covered by the Fair Labor Standards Act must receive double their hourly salary for each hour of overtime they work
False
Ethical conduct never brings about new laws. True False
False
Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to review the merits of the award. True False
False
Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to review the sufficiency of the evidence. True False
False
Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to set aside the award. True False
False
Giving up a legal right is adequate consideration for a contract governed by the Uniform Commercial Code, but not for contracts under common law. True False
False
Grand juries are used in both criminal and civil proceedings.
False
If a bankruptcy trustee assigns a contract to a third party and the third party later breaches the contract, the trustee will be liable for the contract
False
If a consumer places his or her name on the "Do Not Call Registry," telemarketers may only contact that individual during ordinary business hours.
False
If a consumer places his or her name on the "Do Not Call Registry," telemarketers may only contact the individual during ordinary business hours
False
If a contract is silent about payment, payment is due when the goods are identified to the contract. True False
False
If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract. True False
False
If a person claimed that a law was denying him employment opportunities based on gender, the Court would review the law under the rational basis test. True False
False
If a unilateral mistake of fact is apparent to one party, he or she may take advantage of that knowledge and profit from the other party's ignorance. True False
False
If both parties to a contract are uncertain or consciously ignorant of facts about the item to be sold, either party can rescind the contract based on a mutual mistake of fact. True False
False
If goods are sold subject to a bill of lading, title to the goods passes when the goods are in the hands of the buyer. True False
False
If one obeys the law, one is not necessarily acting ethically because ethical standards of conduct and legal standards of conduct are identical. True False
False
If there is a clerical error in a contract, a court will order the equitable remedy of quantum meruit to correct the error. True False
False
If you form an LLC you are required to have a written operating agreement T/F
False
If you form an LLC you are required to have a written operating agreement. True/False?
False
Ignorance of the law is one of the traditional defenses to criminal liability. True False
False
In a Limited Liability Company, the unanimous consent of the members is required to hire a new employee. True/False?
False
In a bilateral contract, each party must gain a legal benefit, but only one party need incur a legal detriment. True False
False
In a limited partnership, a general partner's fiduciary duty is breached when limited partners are not permitted to participate in management. True/False?
False
In a majority of states, a minor can disaffirm a contract only by returning all the property originally purchased. True False
False
In a manager-managed LLC, only the manager-members have access to the LLCs books T/F
False
In a partnership for a term of years, each partner has both the power and the right to withdraw from the partnership at any time T/F
False
In a product liability case, defendant manufacturer can use as a defense the plaintiff's failure to discover the defect in the product. True False
False
In a typical Chapter 13 bankruptcy, one half of the debtors take home pay is allocated to repay debts T or F?
False
In contracts negotiated by an agent acting within the scope of his authority for a disclosed principal, the agent, the principal and the third party are equally liable on the contract.
False
In contracts negotiated by an agent who is acting within the scope of his authority for a disclosed principal, the agent, the principal, and the third party are equally liable on the contract T or F?
False
In contributory fault states, if the plaintiff was responsible for 20 percent of his own injuries, he will still be able to collect the other 80 percent from the negligent defendant. True False
False
In most states, the test of mental competence for entering into a contract is the same as the test for making a valid will. True False
False
Individual members of the LLC can never bind the LLC in a valid and enforceable contract. True/False?
False
Interlocutory decrees are issued by courts of law with limited jurisdiction. True False
False
It is a violation of the separation of powers doctrine for State A to adopt a law identical to one adopted by State B. True False
False
It is the duty of an agent to notify third parties when his agency is terminated.
False
It is the exclusive right of the House of Representatives to approve treaties made by the President.
False
It is the function of a grand jury to determine the guilt or innocence of a defendant in a capital case. True False
False
It is unconstitutional to conduct a trial with a jury of fewer than 12 jurors. True False
False
Jury instructions are entirely within the discretion of the judge; attorneys for the plaintiff and the defendant have no input into the instructions that are given the jury.
False
Knowledge of the law allows one to identify legal risks and completely eliminate liability flowing from those risks. True False
False
LLC combine the limited liability of the partnership and the tax advantages of corporations T/F
False
LLC combine the limited liability of the partnership and the tax advantages of corporations. True/False?
False
Lack of capacity and discharge in bankruptcy are two common defenses that are available to a surety that may be asserted against a creditor T/F
False
Legal actions to collect back child support and alimony are among those subject to the automatic stay
False
Legal reasoning has as its goal persuasion without critical analysis of legal questions.
False
Legal reasoning limits one's ability to see more than one side of a question. True False
False
Legally speaking, there is no significant distinction between puffery and deceptive advertising T or F?
False
Limited partnerships must have one general partner for every seven limited partners T/F
False
Lost profits cannot be used in calculating damages because profits are always uncertain and speculative. True False
False
Minority shareholders have the best chance of electing someone to the board of directors under the straight method of voting T/F
False
Most courts allow plaintiffs to use strict liability to collect damages for economic loss in product liability suits. True False
False
Most of the powers of the federal government enumerated in the Constitution are powers shared with the states. True False
False
Nominal consideration is another term for sham consideration. True False
False
Officers of corporations have unlimited actual authority to sell the real property and intangible assets of the corporation T or F?
False
Once a debtor files a Chapter 7 petition, the debtor cannot request that the case be converted to a Chapter 11 or Chapter 13 proceeding T or F?
False
One defense to the crime of theft is return of the stolen goods.
False
One of the disadvantages of a Limited Liability Partnership is double taxation T/F
False
Only the United States Supreme Court can issue an interlocutory decree.
False
Only the plaintiff may ask the court for a summary judgment. True False
False
Quantum meruit refers to the compensation owed a party under an express contract. True False
False
Quasi-contract is another term for an implied-in-fact contract. True False
False
Receivers have liability on the pre-incorporation contracts of the corporation T/F
False
Sham consideration is sufficient for a unilateral contract, but not for a bilateral contract. True False
False
Shareholders are taxed on the value of the stock they receive in the stock dividend T/F
False
Shareholders have virtually unrestricted access to corporate books and records T/F
False
Sid's Sub Shop hired Ted to manage the shop from January 1, 2007 to December 31, 2007. This is an employment at will contract T or F?
False
Since it is up to the parties to determine the dollar amount in a liquidated damages clause, courts will enforce any amount called for in the contract. True False
False
Stare decisis, the doctrine giving rise to the importance of precedent, is not an example of analogical reasoning.
False
State laws regulating the sale of securities within the state are called red herring laws T/F
False
State statutes control whenever they conflict with federal statutes. True False
False
Stock that is issued and then repurchased by a corporation is watered stock T/F
False
Strict liability is also called "absolute liability" because there are no defenses that a defendant can raise. True False
False
Sue failed to file an answer or respond in any way to a complaint and summons. The court will enter a motion to dismiss against her. True False
False
Tender of delivery occurs when the buyer takes physical possession of the goods. True False
False
The American's With Disabilities Act only protects employees who can perform essential work functions despite their disabilities; the Act does not require employers to take affirmative measures to accommodate employees
False
The Electronic Funds Transfer Act established a national fraud alert system to help consumers whose identities had been stolen
False
The Family and Medical Leave Act guarantees that an employee will be paid one-half his or her salary for up to six months of leave, so long as the leave was for "serious health condition"
False
The Statue of Limitations does not apply to surety contracts T/F
False
The Statute of Limitations does not apply to surety contracts. True/False?
False
The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration. True False
False
The articles of incorporation are drawn up at the first organizational meeting of the corporation T/F
False
The balancing test for an issue reviewed under strict scrutiny is: "Is the law rationally related to a legitimate government interest?"
False
The bankruptcy judge is the person who handles the assets and obligations of the debtor during the bankruptcy proceeding T or F?
False
The crime of larceny consists in the theft of property by force or threat of force. True False
False
The debts of partnerships, limited liability companies, and corporations that go through liquidation proceedings are usually discharged
False
The difference between assault and a battery is that assault results in in more bodily harm. True False
False
The doctrine of res ipsa loquitur applies when a person causes damages while violating a law or ordinance. True False
False
The equitable equivalent of a default judgment is a nolo contendere decree.
False
The equitable equivalent of a default judgment is a nolo contendere decree. True False
False
The function of the grand jury is to decide the guilt or innocence of a criminal defendant. True False
False
The general contractor is eligible for a mechanic's lien on the real property, but the subcontractors on the project are not T/F
False
The government's right to seize private property for public use extends only to real property and not to personal property. True False
False
The innocent party in a contract breach must choose between collecting punitive damages or compensatory damages because a court cannot grant both. True False
False
The party who loses at trial and brings an appeal is called the appellee. True False
False
Title VII does not apply to sole proprietorships, regardless of the number of people a business employs
False
To prove disparate impact discrimination in employment, plaintiffs must show, in their prima facie case, that the selection rate for minorities is less than 50 percent of the selection rate for non-minorities
False
To prove disparate impact discrimination, a plaintiff must show that the practices complained were "designed and intended" to disadvantage him or her
False
Today, scholars argue the role of the corporation is to maximize the return on investment of shareholders. True False
False
Under modern contract law, a contract must be executed under seal to be enforceable. True False
False
Under the Equal Credit Opportunity Act, a creditor is permitted to ask whether an applicant is married when considering the applicants creditworthines T or F?
False
Under the National Labor Relations Act employers must re-hire workers who went on strike for higher wages or increased benefits
False
Under traditional rules of privity, a customer who bought a product that was defectively manufactured could sue either the merchant who sold the product or the manufacturer who created the defect. True False
False
Undisclosed principal's have no liability to third parties for contracts negotiated by their agents T or F?
False
Undisclosed principals have no liability to third parties for contracts negotiated by their agents T or F?
False
Union shops are illegal under the Taft-Hartley Act
False
What constitutes a hostile work environment is a matter of law and does not vary from workplace to workplace
False
When the Supreme Court agrees to hear a case it issues a writ of execution. True False
False
When the U.S. Supreme Court agrees to hear a case it issues a writ of attainder. True False
False
Whether or not a principal has ratified a contract is a question of law to be decided by the judge at trial.
False
Workers Compensation Insurance is a comprehensive program that covers all job related injuries, including those that were intentionally inflicted
False
When a business detains a suspected shoplifter it must be careful not to commit the tort of? False imprisonment Nuisance Disparagement Invasion of privacy
False Imprisonment
In some states, a parent-owner is liable for any damages caused by a family member operating the vehicle. This is the ___ doctrine - durham - family car - in loco parentis - family negligence
Family car
Fat Frank's Pies falsified federally mandated tests on his "all natural no calorie" "Fat Pies" to introduce a new type of weight-loss pie. Which of the following is true with respect to his actions:
Fat Frank behaved unethically Fat Frank can potentially face criminal liability for his actions. Fat Frank can be sued in tort in civil court.
If Federal District Court in Arizona hears a case challenging the constitutionality of the No Child Left Behind Act, which is a federal statute, the court will use __________ procedural law and _________ substantive law to conduct the trial.
Federal---------federal
American government is based on the concept of ____________, which allocates the power to govern between a sovereign federal authority and the sovereign states.
Federalism
The American political system, which divides the power of government between sovereign states and a sovereign federal government, is an example of___________.
Federalism
Customer ordered fried chicken strips at the drive-in window of Famous Burger. One of the "strips" turned out to be an entire chicken head, battered and deep fried. Famous Burger tested the head and found that it was, indeed, cooked in their batter and in their oil. Pictures of Customer with the fried head showed up in newspapers and on the Internet. Famous Burger offered Customer a cash settlement in exchange for Customer's promises not divulge the amount of the settlement, sue Famous Burger over the incident, or ever speak of it in public again. Agreeing not to exercise these three rights in exchange for the settlement is an example of ____________________. An accord and satisfaction Renunciation Forbearance Restitution
Forbearance
Plaintiff sued a National Football League team, alleging that she had been sexually assaulted by several team members in a hotel room after a game. Team offered the plaintiff a cash settlement in exchange for two promises: (1) plaintiff would never discuss publically the suit or the terms of the settlement; and (2) plaintiff would never again sue the team or the individual players on any claim connected with the incident. Agreeing not to exercise these legal rights constitutes ___________________. Accord and satisfaction Forbearance Revocation Contract modification
Forbearance
What are state "right to work" laws designed to do? - Allow workers to opt out of overtime pay protections - Allow workers to sue for invasion of privacy when their employers monitor their private electronic communications - Forbid employers from requiring alcohol and drug testing as a condition of employment - Forbid employers from requiring that workers be members of a union as a condition of employment
Forbid employers from requiring that workers be members of a union as a condition of employment
Under federal bankruptcy law, a ___ is a transfer within two years of the filing of the petition, with the intent to hinder, delay or defraud creditors Usurious lending practice. Fraudulent conveyance. Negligent misrepresentation. Fraud in the inducement.
Fraudulent conveyance
Punitive damages are available for which of the following? Unilateral mistake of fact Innocent misrepresentation Bilateral mistake of fact Fraudulent misrepresentation
Fraudulent misrepresentation
A master will not be liable for the torts committed by a servant if the servant was on a ___ when the tort was committed Lark, Errand, Frolic, Detour
Frolic
State X must enforce the judgment from a court in State Y because of the _________Clause.
Full Faith and Credit
The provision in the Constitution that requires that the courts in each state recognize the validity of contracts and court decisions from other states is the _________Clause.
Full Faith and Credit
The Equal Pay Act prohibits discrimination in pay scales and compensation based on ___ - gender - color - race - national origin
Gender
Willful and wanton misconduct or conscious disregard for the safety of others constitutes ________________negligence. Ordinary Slight Gross Per se
Gross
Courts often use transcripts of the legislative hearings and debates that preceded a law's passage to determine the purpose and reach of a law. This background is called a law's legislative ______ .
History
The merger of two corporations that results in the surviving corporation expanding its products or markets is a ___ merger
Market Extansion
For which of the following purchases would a minor be liable to the seller for the fair value of the goods? (select all answer options that are correct) Car An iPod Medicine Insurance
Medicine
In an adjustment of debts under Chapter 13, the rights of ___ may not be modified Secured creditors Unsecured creditors Mortgagees Judicial lien holders
Mortgagees
Which of the following is NOT a motion that takes place before the trial begins?
Motion for a directed verdict
An important initial step in the legal reasoning process is ____ .
Identifying the general area of the law at issue
For misdemeanors, the government brings charges against the accused in a (n)__________.
Information
Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract based on? Undue influence Innocent misrepresentation Fraudulent misrepresentation Duress
Innocent misrepresentation
Prof. Johnson is a law professor who teaches the existence of a higher authority than the state binding human behavior. She is an adherent of the ____ school of jurisprudence.
Natural Law
____is the theory of jurisprudence which believes there are higher legal and moral authorities than the State and laws should reflect them.
Natural Law
Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. Express liability Negligence Fraud Strict intentional liability Battery
Negligence
Assume that Sussex County has a law requiring that all passenger elevators be inspected every six months. Local Hospital failed to have its passenger elevator inspected when required, and a door that malfunctioned injured a hospital visitor. Visitor's attorney will use the doctrine of ________________to show that Local Hospital breached a duty of care. Contributory negligence Negligence per se Res ipsa loquitur Malpractice
Negligence per se
The final vote in which workers decide whether or not to unionize must be conducted without undue influence from either union or management. The term for these voting conditions is ___ conditions - neutral - equitable - aboratory - transparent
Neutral
Fred, in desperate need of quick money, sold his new Key West boat for less than market value to a good faith purchaser. Does Fred have any basis for rescinding the contract? Yes, bilateral mistake of value No, this was a valid bargained for exchange Yes, undue influence Yes, economic duress
No, this was a valid bargained for exchange
The award of a very small amount of money, such as 1, acknowledges that a wrong has been done, even though there were no monetary losses. This award represents what type of damages? Nominal Liquidated Punitive Special
Nominal
Which of the following statements about nominal consideration is correct? (select all answer options that are correct) Nominal consideration is another term for sham consideration. Nominal consideration will support an enforceable contract. Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration. Nominal consideration is any small amount paid over and above the contract price for document preparation
Nominal consideration will support an enforceable contract. Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration.
Preferred stock that is entitled to receive only the stated preferred dividend and no other is ___ preferred stock
Non-participating
Which of the following is/are not an element of promissory estoppel? (select all answer options that are correct) 1.There must be an underlying enforceable bilateral contract. 2.The promissor must foresee that the promissee would rely on the promise. 3.The promisee suffered damages as a result of reasonably relying on the promise 4.The promissee did in fact reasonably rely on the promise.
None (I don't think)
FTC regulations provide that for mail-order sales, if the merchant cannot meet the stated date of shipping, the customer must be ___ a. refunded b. discounted c. notified d. compensated
Notified
Sam's neighbor has opened a shooting range on his property. This is an entirely legal enterprise, but Sam hears guns shots 10 hours a day, cannot hear his television or talk on the phone. What tort, if any, is neighbor committing? Nuisance Invasion of property Trespass Neighbor is committing no tort conducting a legal enterprise.
Nuisance
Dominant shareholders in closely held corporations who exploit their control of the corporation to benefit themselves at the expense of minority shareholders are guilty of ___
Oppressive conduct
An ___ is entered by the bankruptcy judge when he or she finds that the debtor is entitled to the protection of the bankruptcy law Order of default Notice of removal Order of relief Judgment
Order of relief
Apparent authority is also known as _____________ authority. Ostensible Incidental Express Constructive
Ostensible
Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. This is an example of a n ___________contract. Output Requirements Unilateral Implied in law
Output
National Chip Company has contracts with numerous farmers in which it agrees to buy all the potatoes the farmers harvest and the farmers agree to sell their potatoes only to National Chip Company. The contracts between the farmers and National Chip Company are ________________contracts. Requirements Output Option Farm subsidy
Output
The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is? Roe v Wade Marbury v. Madison Plessey v Fergerson Palsgraph v Long Island Railroad Co.
Palsgraph v Long Island Railroad Co.
Shares that are issued with a face value are ___
Par value shares
When a third party knows that an agent is acting on behalf of a principal, but does not know the identity of the principal, the principal is ___ Disclosed Undisclosed Partially disclosed Transparent
Partially disclosed
The business entity that consists in an association of two or more persons to carry on as co-owners a business for profit is an ___
Partnership
When partners enter into a partnership without stating how long the partnership will last, they have formed a ___
Partnership at will
What is the provision of the tax rule that makes income taxable only for the individuals who receive it, and not for the business entity that produces it?
Pass through
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother's behalf, she owes him a. Only the duty of loyalty. b. Only the duties of loyalty and information. c. Only the duties of loyalty, information and the duty to account d. Peg owes Jim all the duties of an agent to a principal.
Peg Owes Jim all the duties of an agent to a principal
Under Chapter 11, the debtor may file a ___ in an attempt to extricate the business from its financial difficulties and help it to survive Plan of reorganization. Contingency Plan Notice of default Operating Agreement
Plan of reorganization
Sen. Harris, addressing Senators on the subject of protests against surveillance laws, insists these laws be obeyed as written. Sen. Harris is a ____ school adherent.
Positive Law
Much of federal legislation addressing labeling and packaging addresses products that are ___ a. luxury goods b. potentially dangerous c. illegal d.imported from other countries
Potentially dangerous
Pat agreed to purchase 250 shares of Pamco Company five months before the corporation came into existence. This agreement is a ___
Pre-incorporation subscription
A ___ exists where an insolvent debtor pays some creditors a greater percentage of the debts than the creditors in the same class - Priority - Voluntary dissolution - Preference - Malicious prosecution
Preference
In a bankruptcy proceeding, creditors' claims are subject to payment according to the ___ established by the bankruptcy law Discretion Size or amount of the debt Priority Greatest need for payment
Priority
To expand its income tax base, State X passed a law restricting employment in the construction and service industries in State X to citizens of the state. Cindy, a citizen of state Y, wants to challenge the constitutionality of this law. Her best argument is that the law violates the ______________Clause.
Privileges and Immunities
In early product liability cases, a consumer who was injured by a defectively manufactured product could only sue the retailer who sold her the product. The retailer would then sue the distributor, who would sue the manufacturer. This doctrine that makes the immediate seller the only defendant is called_______________. The McNabb rule Warranty restriction Sellers liability Privity
Privity
A state statute requiring that medical malpractice suits be initiated within 3 years of the injury is an example of a(n) ______ law.
Procedural
Which of the following statements about procedural due process is false?
Procedural due process applies only to the taking of private property, not to the curtailment of privileges or benefits.
Rules of the court room are classified as
Procedural law
Allison, who raises horses, promised to give her friend Gil a pony for his daughter. She advised Gil that he would need to enclose a section of his property and recommended a specific type of fencing. Gil bought the recommended materials and had the fence built on his property. Allison now refuses to give Gil the pony. Allison will be liable to Gil for the cost of fencing his property based on the theory of? Contract modification Restitution Promissory estoppel Contract rescission
Promissory estoppel
Promotional statements made by a business about a product or service that are not intended to be taken literally are known as ________. a. Guaranties. b. Material misrepresentations. c. Puffery. d. Deceptive advertising.
Puffery
Which of the following statements about minority racial preference plans under Title VII is false? - Racial preference plans are, without exception, forbidden under Title VII. - Racial preferences can be used for a limited period of time. - Racial preferences can be used to open employment opportunities in traditionally segregated jobs. - Racial preference plans must preserve some protections for white employees.
Racial preference plans are, without exception, forbidden under Title VII
When a principal decides to adopt and be bound on a contract that his agent did NOT have the authority to form, the principal ___ the contract - indemnifies - reforms - ratifies - restores
Ratifies
Which of the following standards of review will a court use to decide the constitutionality of a municipal ordinance that allows push carts selling non-food items to operate on city streets, but not push carts selling food?
Rational basis test
Profit-maximization theory holds ____.
Rational self-interest can lead to economic prosperity
Beth agreed to buy Sam's home for 400,000. After both parties had signed the contract, which was prepared by the real estate agent, it was discovered that the property was listed on the contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. The remedy courts use to correct mistakes like this in contracts is? Rescission Restitution Respondeat superior Reformation
Reformation
Which of the following is NOT a way of getting into Federal District Court?
Requesting a de novo review of a state trial court's decision
If a claim of quid pro quo harassment is proved, the employer is liable based on which theory? - Negligence - Respondeat superior - The complicity rule - The duty to indemnify
Respondeat superior
When an employer punishes an employee for reporting illegal employment practices to the EEOC, the employer engages in ___ - retribution - retaliation - quid pro quo discrimination - disparate impact discrimination
Retaliation
One purpose of the Consumer Product Safety Act is to establish ___ for consumer products Safety standards. Judicial precedent. Recommendations. New ideas.
Safety standards
Debbie, who owns an art gallery, lets regular customers take home prints and large works of art so they can "think about them" before buying. A customer who wants the print sends Debbie a check for the selling price. A customer who decides not to buy the work has 15 days to return it to Debbie. This arrangement is classified as an ____________. Consignment Installment sales contract Sale or return Sale on approval
Sale on approval
Phil saw an oriental rug in CarpetStore that he thought might look good in his foyer. CarpetStore let Phil take the rug home to try. If he liked the rug, he would send CarpetStore a check for the purchase price. If he didn't like the rug, he would return it to the store. This arrangement is classified under the Code as a (n) _________________. Consignment sale Contingent sale Sale or return Sale on approval
Sale on approval
Under the Code, a consignment is treated like a? Sale or return Lease Installment sales contract. Sale on approval
Sale or return
Beth and Nan are college students who share an off-campus apartment. The rent is $800 a month, which they agree to share equally. The lease is in Beth's name. Nan has not paid her half for the past two months and to about to graduate. Beth's best option to get the money Nan owes her is to sue Nan in
Small claims court
A joint case is a voluntary bankruptcy case filed by ___ Spouses Partners in a partnership Members of an LLC All of the above
Spouses
The Garcia family hired Home Improvements, Inc., a local construction company, to put an addition on their home. What type of law governs the contract between the Garcia's and Home Improvement? Federal common law State common law The Uniform Commercial Code The Sarbanes-Oxley Act
State common law
The primacy source of law governing the relationship between the principal and the agent is The Uniform Commercial Code Federal statutes Federal common law State common law case law
State common law case law
A federal law requires that employers with 15 or more employees take steps to "reasonably accommodate" the religious needs and practices of their employees. A law, such as this one, that gives rights and imposes duties is an example of an ______ law
Substantive
Judge Roe rendered a verdict for the defendant before trial. It was a suit for breach of contract, and the judge used the complaint and answer, the contract, and sworn affidavits to determine that there were no facts in dispute to put before a jury. For which of the following did Judge Roe grant a motion?
Summary judgment
Which agency has broad powers to conduct research on the safety of consumer products, set safety standards for products, and recall products that are unsafe? A. The National Transportation and Safety Commission B. The Federal Trade Commission C. The Interstate Commerce Commission D. The Consumer Product Safety Commission
The Consumer Product Safety Commission
Which federal statute requires that employers provide safe working conditions for their employees? - The Landrum-Griffin Act - The Taft-Hartley Act - The Corporate Insurance Compensation Act - The Occupational Safety and Health Act
The Occupational Safety and Health Act
In an accord and satisfaction, the accord is The liquidated portion of a debt. The substitute agreement The performance of the action called for in the substitute agreement. The old agreement
The Substitute Agreement
The power of the courts to declare legislation invalid because it violates the Constitution is the power of Judicial review. This power of the courts originated in
The Supreme Court decision in Marbury v. Madison
The Constitutional basis for the right of privacy is
The Supreme Court's finding that the right of privacy, although not expressly stated, is inherent in a number of Amendments.
When it is unclear whether a piece of federal legislation intends to preclude all state regulation of the same activity, it is the responsibility of ___________ to determine Congress's intent.
The courts
The ex-dividend date is
The date on which a dividend is payable
Which of the following statements about a discharge under Chapter 7 is false? The discharge is available to corporations and partnerships. The discharge covers all the scheduled debts that arose before the order of relief. The discharge operates as an injunction against creditors trying to collect on a debt. The discharge requires that most of the debtor's assets be used to pay the debts.
The discharge is available to corporations and partnerships
If goods are being sold under a negotiable document of title, such as a bill of lading, risk of loss passes to the buyer when? The document is tendered to the buyer The buyer takes possession of the goods The goods are tendered to the buyer The buyer pays for the goods.
The document is tendered to the buyer
Which of the following describes the duty of a landowner to a trespasser under the common law? The duty to warn of obvious dangers The duty not to entrap the trespasser on the premises The duty to make certain that the premises are absolutely safe The duty to warn of hidden dangers
The duty not to entrap the trespasser on the premises.
Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to draw up a sales contract that protects both Sam's interests as the seller and Ed's interests as the buyer. If Larry agrees to this dual agency, which duty would be most risk violating? - the duty of loyalty - the duty not to be negligent - the duty to account - dual agencies pose no particular problems in carrying out agency duties
The duty of loyalty
The major distinction between a servant and an independent contractor is that
The employer has the right to tell a servant how to do the job, while an independent contractor has exclusive control over the manner in which the job is done.
The term F.A.S. in a contract indicates that? The buyer paid the cost of insuring the goods. The goods are being shipped by a merchant vessel The seller is a merchant The buyer is a merchant
The goods are being shipped by a merchant vessel.
Which of the following statements about criminal intent is false?
The intent to commit a crime is the same thing as the motive for committing a crime.
Which of the following statements about a minor's purchase of necessaries is false? The minor may not disaffirm the contract. The minor is liable in quasi contract to the seller. The minor must pay the contract price of the goods or services. The minor must pay the reasonable value of the goods or services.
The minor must pay the contract price of the goods or services.
In an accord and satisfaction, the satisfaction is? The performance of the action called for in the original agreement. The liquidated portion of a debt. The performance of the action called for in the substitute agreement. The payment of accrued interest.
The performance of the action called for in the substitute agreement.
Whether a suit is filed "at law" or "in equity" depends on which of the following?
The remedy the plaintiff is seeking
Under the Code, goods are "tendered" when? Both a and b are necessary for tender of delivery. The buyer pays for the goods The seller makes the goods available to the buyer and gives him notice that they are available. The buyer takes physical possession of them
The seller makes the goods available to the buyer and gives him notice that they are available.
What is the minimum amount of damages a plaintiff must allege to get into Federal District Court based on a federal question? 20 75000 100000 There is no jurisdictional amount when the issue is a federal question.
There is no jurisdictional amount when the issue is a federal question.
A person who breaches a duty that is neither a contractual duty nor a crime commits a ___
Tort
A person who breaches a duty that is neither a contractual duty nor a crime commits a ____________ Tort Misdemeanor Malum in se Malum prohibitum
Tort
The societal belief that "people who injure other persons or their property should compensate them for their loss" is the basis of
Tort law
A partnership whose primary business purpose is the buying and selling of goods is a ___ partnership
Trading
A partner in a trading partnership has the implied power to make warranties on goods sold by the partnership T/F
True
A transfer of property may be fraudulent under either federal or state law
True
A trustee may not assume an executory contract in a bankruptcy preceding that requires the other party to make a loan, deliver equipment or issue a security to the debtor.
True
A trustee may not assume an executory contract in bankruptcy preceding that requires the other party to make a loan, deliver equipment or issue a security to the debtor
True
An agent who is wrongfully terminated may sue the principal for damages T or F?
True
An agent who represents both the buyer and the seller in the purchase of a business is acting as a dual agent T or F?
True
An agent will not be indemnified for injuries caused to third parties if the agent's negligence caused the injury T or F?
True
An agent's knowledge is imputed to the principal T or F?
True
An attorney is not allowed to ask his own witnesses leading questions.
True
An employee cannot be terminated under an employment at will contract for refusing to commit an illegal act T or F?
True
An employee must first file a complaint with the EEOC and get a "right to sue" letter before pursuing a private right of action against his employer for Title VII violations
True
An employer is liable when quid pro quo sexual harassment results in the termination or demotion of an employee T or F?
True
An equitable remedy does not involve monetary damages.
True
An individual's best argument may be fashioned by the application of legal reasoning. True False
True
An intentional misrepresentation of law by a seller who is not a lawyer will be grounds for rescinding the contract. True False
True
Analogical reasoning is different from deductive reasoning. True False
True
Anne bought an antique bracelet from a jeweler. Unfortunately, the bracelet was not part of the jeweler's inventory, but had had been brought in for repairs. Nonetheless, Anne has good title to the goods. True False
True
C.I.F. in a sales contract indicates that the price includes the cost of the goods, insurance and shipping charges. Group of answer choicesTrueFalse
True
Congress has enacted legislation designed to prevent debt collectors from acting in an unconscionable fashion when attempting to collect a debt.
True
Consumers have the right to dispute information that is contained in their credit reports
True
Contractors have a longer period in which to file mechanic's liens that subcontractors or suppliers have. True/False?
True
Corporations may consider the legal, ethical and philanthropic effects of corporate decisions. True False
True
For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise. True False
True
For purposes of the takings clause of the Constitution, "property "includes personal property and intangible property rights as well as real property. True False
True
Fraudulent misrepresentation can be the basis for the injured party to rescind the contract. True False
True
General damages are also called compensatory damages. True False
True
Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract. True False
True
If there is a breach of contract, the breaching party bears the risk of loss of the goods. True False
True
If there is more than one plaintiff in a diversity case, each plaintiff must individually meet the diversity threshold of $75,000 in injury.
True
In a member-managed LLC all members participate in management T/F
True
Intoxication may be used as a defense in specific intent crimes if the impairment was so great that the accused could not form the requisite intent. True False
True
Parties to a contract may not offer as consideration promises to do what they are already legally required to do. True False
True
Partnership must be kept in the firm's place of business and be accessible to all partners T/F
True
Professional corporations are business entities organized under state law T/F
True
Property held in trust for the benefit of the debtor under a spendthrift trust does not become a part of the bankruptcy estate T or F?
True
Property inherited by the debtor within 180 days of the bankruptcy petition date becomes property of the bankruptcy estate T/F
True
Shareholders may dissent from both stock-for-stock mergers and cash-for-stock mergers T/F
True
Shareholders may vote on matters in which they have a personal interest T/F
True
Some states use the alter ego theory to require corporations to assume liability for contracts negotiated on their behalf by the promotors T/F
True
The 50% Rule is associated with comparative fault systems. True False
True
The power to regulate commerce with foreign nations is exclusive to the federal government. True False
True
The powers of the federal government are limited to those enumerated in the Constitution True False
True
Under Chapter 11, a debtor's plan of reorganization must provide a means for its execution T or F?
True
Gaggle Inc. decides to wrongly infringe on Chirp Chirp's patent and establish a similar "knock-off" product because Chirp Chirp is just a small start-up company and they lack the money to litigate in court with Gaggle, Inc. Gaggle, Inc. is:
Unethically exploiting their power and size in the marketplace.
Mary left her iPad at a local restaurant and offered a reward for its return. Mary made an offer to form a (n) _________________contract. Bilateral Unilateral Implied in law Implied in fact
Unilateral
The assembled group of people from which a trial jury will be selected is called the ___________.
Venire
One person, who is without personal fault, is held liable for the criminal conduct of another person, who is at fault, in ___________________________.
Vicarious liability
The general legal doctrine that holds one person responsible for the torts committed by another because of the relationship they have to each other is ___ - respondeat superior - vicarious liability - primary liability - transferred liability
Vicarious liability
Six months after being adjudicated insane, Connie signed a contract for premium cable service. The legal status of this contract is? Void Voidable by Connie or Cable Company Voidable by Connie Valid
Void
The legal status of a contract entered into by someone who has been adjudicated insane is __________. Avoidable only by the person adjudicated insane Valid Void Avoidable by either party to the contract.
Void
Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is? Voidable by Mike Valid Voidable by Mike or Allen Void
Voidable by Mike
Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for value (GFP). Under the Uniform Commercial Code, Buyer took ____________title from Kevin, and transferred _________________title to the GFP. Voidable-------------------------------Good Void-------------------------------------Good Good-----------------------------------Good Voidable-------------------------------Voidable
Voidable-------------------------------Good
The whole process of questioning and selecting jurors is called_____________.
Voir dire
When will a principle not have a duty to reimburse an agent? - when the principal is disclosed - when the principal is undisclosed - when the expenses were the result of the agent's negligence - when the expenses are for food or travel
When the expenses were the result of the agent's negligence
Non violent crimes based on fraud and concealment are classified as what type of crimes?
White collar
Knockoff Shoe Company has started to produce a line of ladies shoes with very high heels and bright red soles. Bright red soles have long been associated with the ladies shoes of Famous French Shoe Maker. In a suit against Knockoff, Famous will likely allege? Invasion of privacy Interference with a prospective advantage. Product disparagement Wrongful appropriation of a goodwill and business value
Wrongful appropriation of a goodwill and business value.
Lenny bought a computer from Computer Store for $1,000. For an additional $100, the store delivered the computer, connected up the various devices, and transferred Lenny's files from his old computer. Would this transaction constitute a sale of goods under Article2? Yes, any transaction in which title to some "good" is transferred" is an Article2 sale. Yes, in this transaction the sale of goods "predominates." No, this is a contract for personal services. No, this is a" work for hire" contract.
Yes, in this transaction the sale of goods "predominates."
An indictment is
a grand jury's finding that there is sufficient evidence to bring someone accused of a crime to trial
An agent is not entitled to indemnification when His own negligence caused the damage for which he is being held responsible He was acting outside the scope of his authority He committed a tort while following the instructions of the principal Both a and b
both A and B
In a bankruptcy proceeding, the ________ is the individual, business organization, municipality or farmer that the bankruptcy proceeding involves. Debtor. Creditor. Interested party. Trustee.
debtor
The function of the grand jury is to
determine if there is sufficient evidence to bring someone accused of a crime to trial.
A commonly cited disadvantage of an LLC is that its members often risk personal liability if the business of the LLC fails. true/false?
false
A creditor can never be required to give the surety notice that the debtor is in default. true/false?
false
A creditor in possession of collateral given to him or her by the principal may return it to the principal without the consent of the surety. true/false?
false
All businesses have a right to liquidation proceedings.
false
In a Limited Liability Company, the unanimous consent of the members is required to hire a new employee.
false
In a limited partnership, a general partner's fiduciary duty is breached when limited partners are not permitted to participate in management.
false
In a limited partnership, each limited partner has an equal right to participate in the management of the business. true/false?
false
In a manager-managed LLC, only the manager-members have access to the LLCs books. true/false?
false
Information about a consumer's bankruptcy may remain in the files of a credit reporting agency for up to 15 years.
false
The Fair Debt Collection Practices Act applies both to third party collectors (like collection agencies) and to the original creditor.
false
The Statute of Limitations does not apply to surety contracts. true/false?
false
The owner may be liable for more than the contract price even if they follow the statutory procedures. true/false?
false
The release of the principal always releases the surety. true/false?
false
The standard of "reasonable accommodations" for disabilities are the same standards as "reasonable accommodations" for religious practices
false
The surety relationship requires good faith, but not fair dealing. true/false?
false
There must be an equal ratio of limited partners to general partners in all limited partnerships. true/false?
false
Under certain circumstances, a consumer may be incarcerated for nonpayment of a debt.
false
The federal agency this is charged with stopping unfair or deceptive advertising is the Federal Trade Commission Interstate Commerce Commission Consumer Products Safety Commission Robinson-Patman Commission
federal trade commission
What is the purpose of bail?
insure that the defendant shows up for trial
The unjustified taking of a human life, which is wrongful in almost all civilizations, is an example of a (n)_________________crime.
malum in se
Each state has at least ______federal district courts for trying cases.
one
Lawyers traditionally have a limited number of opportunities to reject potential jurors without having to give a reason. Jurors, however, cannot be eliminated based on
race, gender
Stare decisis translates as
stand by the decision
A juvenile court could not hear a case involving a contract dispute because it lacks _______ jurisdiction.
subject matter
A creditor can assign a general guarantor's promise to a new creditor for value. True/False?
true
A creditor can assign a general guarantor's promise to a new creditor for value. true/false?
true
A general guarantor's promise is not limited to a single transaction. true/false?
true
A limited partner has liability to the full extent of his or her capital contribution. true/false?
true
A limited partner normally has no liability beyond his or her contribution True/False?
true
A limited partner normally has no liability beyond his or her contribution true/false?
true
A limited partner risks personal liability when he or she actively participates in the management of partnership affairs. true/false?
true
A limited partnership allows limited partners to be only liable for their capital contribution. true/false?
true
A principal who is discharged in bankruptcy is released from his duty to reimburse the surety. true/false?
true
A surety who only guarantees collection is entitled to notice. true/false?
true
A surety's obligation is a generally promise to do what the principal agreed to do. True/false?
true
BOTH perforance bonds and fidelity bonds are sureties. true/false?
true
Contractors have a longer period in which to file mechanic's liens that subcontractors or suppliers have.
true
Contracts of suretyship are legally indistinguishable from contracts of indemnity.
true
LLC are taxed as partnerships unless the owners choose to be taxed as a corporation. true/false?
true
Limited Partnership must have at least one general partner. true/false?
true
Limited partners may lose the full amount their capital contribution if the limited partnership incurs debts that exceed its assets. true/false?
true
Modification of the creditor-principal agreement generally discharges the surety. True/False?
true
Modification of the creditor-principal agreement generally discharges the surety. true/false?
true
Restatement of Security treats contracts of suretyship as interchangeable with guarantor contracts. true/false?
true
State law determines whether or not a mortgage will have priority over a mechanic's lien. true/false?
true
Subrogation means the substitution of one person in place of another. true/false?
true
Surety agreements may also be created by operation of law. true/false?
true
The Poison Product Packaging Act of 1970 requires that certain products have child proof caps and packaging.
true
The manager of a manager-managed Limited Liability Company may be a non-member.
true
Under the Fair Debt Collection Practices Act, debt collectors are prohibited threatening to arrest a debtor for failure to pay a debt.
true
Parker is a dealer in Oriental antiques and rugs. A sign in his store recommends that customers bring in their rugs to him for cleaning and repair. In fact, Parker does none of the cleaning or repair work himself. He sends the rugs to Local Cleaners, for whom he works as an agent making a 20 commission. Due to a mishap at Local's plant, the rug belonging to Parker's customer was damaged. Is Parker liable to the customer for the damage? No, Parker is Local's agent and has no fiduciary duties to third parties. No, Parker has no liability because he was acting within the scope of this authority as Local's agent. No, Parker has no liability because agents are not responsible for the torts of the principal. Yes, Parker is liable because he is the agent of an undisclosed principal.
yes, Parker is liable because he is the agent of an undisclosed principal
In a Limited Partnership, a limited partner risk personal liability for partnership debts when __________. A. The limited partner offers to sell his or her interest in the partnership. B. The limited partner expresses his or her opposition to a decision made by the general partner. C. The limited partner becomes overly involved in partnership affairs. D. The limited partner decides to contribute significant personal assets as capital to the partnership.
C. The limited partner becomes overly involved in partnership affairs.
Which of the following is an illusory promise? "I will buy tickets to the World Series if the Red Sox win the Pennant." "I will drive you to work if your car is still in the repair shop." "I will go with you to the donkey basketball game if I can't think of anything better to do." "I will buy your car if my husband likes it."
"I will go with you to the donkey basketball game if I can't think of anything better to do."
Which of the following is false about the name of a corporation? A. The name must include words like "company" or "corporation" to indicate that the entity has limited liability. B. The name cannot be deceptively similar to any other corporation incorporated in that state. C. The name can never be changed once it is registered with the state. D. States allow corporations to reserve a name for a limited time while the corporation is being formed.
C. The name can never be changed once it is registered with the states
In a suretyship, security for the creditor is provided by A. Granting the creditor an interest in the debtor's real property B. A statutory lien on the debtor's personal property. C. The promise of a third party to perform if the debtor does not perform. D. A pledge by the debtor of personal property.
C. The promise of a third party to perform if the debtor does not perform.
What is the source of the employment at will doctrine? - common law - the uniform commercial code - the convention of international employment - federal statues
Common law
Religious beliefs ____ form the basis for the religious foundation theory of rights/duties ethical systems.
Common to many religions
What is the primary purpose of tort law? Create precedents in the common law Compensate victims for their losses Support society by fining wrongdoers Punish wrongdoers
Compensate victims for their losses.
The triple bottom line model encourages corporations to consider the effect of their decisions on ____ A. Profit B. People C. Planet D. All of the above
D. All of the above
Which of the following would bring about the dissolution of the partnership? A. The time the partnership is to last, as stated in the partnership agreement, has expired B. All of the partners agree to end the partnership C. One of the partners dies D. All of the above
D. All of the above
The first of the pleadings in a civil case is filed by the plaintiff and contains the allegations he is making against the defendant. This document is called the_________.
Complaint
Which legal rule will not impose punitive damages on a master for the torts of his servants unless the master himself took some part in the wrongful action? - vicarious liability rule - durham rule - complicity rule - transferred liability rule
Complicity rule
If the federal and state governments engage in the same activity, such as taxing businesses and individuals, they are said to exercise ______________powers.
Concurrent
In complex litigation involving the laws of several states, the state whose law will be used is determined by reference to
Conflict of laws
Erin, an employee of Bob`s Construction Co., has a non-compete agreement with Bob that prevents her from working for any of his competitors for 3 years after she leaves his employment. Connie, a competitor of Bob`s, is aware of the non-compete agreement between Bob and Erin. Connie offers to pay Erin 25% more than she is currently making with Bob, if she will come to work with her. Erin quits working for Bob. Bob loses several clients as a result of Erin leaving. What tort, if any, has Connie committed? Connie committed the tort of intentional interference with a contract. Connie committed the tort of quiche. Connie breached the non-compete agreement. Connie committed the tort of negligence while hiring Erin.
Connie committed the tort of intentional interference with a contract.
Which of the following is NOT a recognized advantage of doing business as a corporation? a. Investors have extremely limited liability for the debts of the corporation. b. A corporation can have perpetual existence. c. Usury laws do not apply to corporations. d. All of the above
D. All of the above are advantaged of doing business in corporate form
Jay, who is a partner in an accounting firm, is being sued for malpractice by a client. If the jury finds for the client, which of the following parties will have liability on the judgment? A. The partnership as an entity B. Jay individually C. Each of the other partners individually D. All of the above have liability on the judgment.
D. All of the above have liability on judgment
A surety will remain liable when the creditor-principal agreement is modified if the surety consents to the modification ... A. Before the modification takes place B. At the time the modification takes place C. After the modification takes place D. All of the above
D. Any of the above
The formal document that represents the agreement of the parties to form a partnership is the ___ A. Partnership charter B. Partnership certificate C. Uniform Act of Partnership D. Articles of partnership
D. Articles of partnership
Bill is a limited partner in K&L Limited Partnership. Which of the following statements about his partnership interests is false? A. Bill made a capital contribution to K&L B. Bill has a right to share in K&L profits. C. Bill must share in K&L losses up to his capital contribution. D. Bill has a right to make management decisions for K&L.
D. Bill has a right to make management decisions for K&L
Which of the following statements is correct about shareholders' voting rights? A. Shareholders are entitled to notice when a special meeting is called. B. A quorum of shareholders must be present to conduct business. C. A shareholder's vote will be counted only if the shareholder is personally, physically present at the meeting when the vote is take. D. Both a and b are correct.
D. Both A and B are correct
Directors have which of the following fiduciary duties? A. The duty of loyalty B. The duty of due care C. The duty to obey instructions D. Both a and b are duties of directors
D. Both A and B are duties of directors
Which of the following statements about corporate bonds is true? A. Bond holders are creditors of the corporation B. Bond holders have the right to vote for directors C. Bonds pay a stated rate of interest. D. A and C
D. Both A and C
Which of the following statements is true about a partnership name? A. The name is an asset of the partnership that may be sold or assigned B. The name must include the word "company" in it. C. The partnership must comply with the state's assume name provisions. D. Both a and c
D. Both A and C
A partnership that fails to comply with a state's assumed name statute ... A. Will be given a trade name by the attorney general B. Will not be able to use the courts of the state to sue its debtors C. May exposed the partners to criminal liability D. Both b and c
D. Both B and C
In which of the following business organization do the losses as well as the profits pass through to the owners? A. LP B. LLC C. General corporation D. Both a and b
D. Both a and b
When defendants do not respond to claims filed against them in courts of law or courts of equity, an automatic decision against them will result with the complaining party getting whatever remedy he requested. These decisions are called _____________ when at law and _______________ when in equity.
Default judgments, decrees pro confesso
Which of the following is NOT a part of plaintiff's prima facie case for showing disparate treatment? - Plaintiff is a member of a protected class. - Plaintiff was qualified for the position. - Plaintiff was rejected for the position. - Defendant has eliminated the position.
Defendant has eliminated the position
During discovery, defendant's attorney will orally question witnesses that will testify for plaintiff at trial under oath. This discovery procedure is called an ________
Deposition
Once a contract has been ratified, the ratifying party loses the right to ________. Reform the contract. Sue for compensatory damages. Exercise a product warranty protection. Disaffirm the contract.
Disaffirm the contract.
A ___ is an order by the bankruptcy judge that a debtor is relieved of paying specific debts Confessed judgment Discharge Foreclosure Liquidation
Discharge
Any change in the identity of the partners, whether through death, withdrawal, or the adding of a new partner, results in the ___ of the old partnership
Disengagement
Under the Telemarketing and Consumer Fraud and Abuse Protection Act, consumers may avoid telemarketing calls by putting their names on a federally maintained list called the ___ registry a. Consumer opt out b. Nuisance call c.Do not call d.Phone exemption
Do Not Call
Followers of the self-interest theory practice selfless acts because ____ .
Doing so will benefit the individual making the decision
DEF Corporation, which is incorporated in Maryland, is a ___ corporation in Maryland
Domestic
Acme, a Dover, Delaware company, is to send widgets to a customer in Elmira, New York, under a destination contract. The contract will read? F.A.S.Elmira, New York F.O.B.Elmira, New York F.A.S.Dover, Delaware F.O.B.Dover, Delaware
F.O.B.Elmira, New York
Whether or not a principal has, through his actions, ratified a contract is a question of ___ usually decided by a ___ - fact, judge - law, judge - fact, jury - law, jury
Fact ; Jury
Whether or not a servant was acting in the scope of his employment when he injured a third party is a question of ___ to be decided by the ___ - fact, judge - law, judge - fact, jury - law, jury
Fact ; Jury
Mike is a sole proprietor who buys, sells and repairs kilns and other equipment used in pottery making. He has an arrangement with K&M, a large equipment maker, to sell K&M kilns in both his own name and in K&M's name and to receive payments from customers. Mike's relationship with K&M is that of a ___ A.Independent contractor, B.Special agent, C. Broker, D. Factor
Factor
Mike is a sole proprietor who buys, sells and repairs kilns and other equipment used in pottery making. He has an arrangement with K&M, a large equipment maker, to sell K&M's kilns in both his own name and in K&M's name and to receive payments from customers. Mike's relationship with K&M is that of a ________________. Independent contractor Special agent Broker Factor
Factor
Under Chapter 11, a hearing is held on the confirmation of a debtor's proposed reorganization plan, to determine if it is ___ In the best interest of the debtor Fair and equitable. The least restrictive means of reorganization. Subject to liquidation.
Fair and equitable
"Clear and convincing evidence" is the easiest level of proof for a party with the burden of proof to meet. True False
False
A contract for a one year gym membership is a sale of goods under Article 2. True False
False
A creditor must exhaust his or her judicial remedies against the principal before seeking to recover from the surety. True/False?
False
A defendant may be tried in either Federal District Court or in state court when charged with committing a federal crime. True False
False
A defendant who wants to have the trial moved to a different geographic location in the state because of likely jury prejudice would ask for a change of venire and not for a change of venue
False
A director's duty of care under the business judgement rule is a lower standard than that of professional negligence T/F
False
A disadvantage of the Limited Liability Company is that profits are taxed both as income to the corporation and as dividends to the members. True/False?
False
A factor is an agent with the special limited authority of procuring a customer so that the principal can affect a sale or exchange of property T or F?
False
A factor is an agent with the special limited authority of procuring customers so that the principal can affect a sale or exchange of property T or F?
False
A member of an LLC can never be personally liable for the debts of the LLC T/F
False
A minor must pay the contract price for necessaries. True False
False
A motion for a judgment on the pleadings is a post-trial motion made by the losing party. True False
False
A party who enters into a contract with a minor has the same right as the minor to disaffirm the contract. True False
False
A person who uses a logo in an advertisement that is deceptively similar to that of another business commits the tort of false light. True False
False
A plaintiff may be awarded either compensatory damages or consequential damages, but not both. True False
False
A store manager is an example of a special agent T or F?
False
A surety and guarantor have always been treated as the exact same T/F
False
A suretyship provides a lien credit a legal interest in the property of the debtor to secure repayment of the loan T/F
False
A thief can pass good title to a subsequent purchaser, so long as the purchaser bought in good faith, for value, and did not know that the goods were stolen. True False
False
A unilateral mistake of fact is grounds for rescinding the contract. True False
False
Absent an agreement otherwise, each partner is entitled to compensation for his or her services in managing the business T/F
False
An "improvement" to real property necessarily increases the market value of the real property. True/False?
False
An LLC must have at least two members that participate in management in order to lawfully do business T/F
False
An LLC must have at least two members that participate in management in order to lawfully do business. True/False?
False
An agent operating under a written power of attorney is called an attorney-at-law T or F?
False
Under the 2009 Credit Card Accountability, Responsibility and Disclosure Act, credit card companies may not raise interest rates on existing credit card balances unless the borrower is at least ___ days late in making a payment 10 30 60 90
60
In most states, children under the age of __________cannot be held liable for negligence. 18 7 16 14
7
Traditionally in common law, children were presumed to lack sufficient understanding to form the intent necessary to commit a crime if they were under the age of 7 10 14 18
7
A prima facie claim of disparate impact discrimination is established if the selection rate for members in a protected class is less than ___ percent of the selection rate for members in the majority class - 25 - 30 - 50 - 80
80
To determine if a preferential transfer has taken place, the debtor is presumed to be insolvent for a period of ___ days prior to filing the bankruptcy petition 30 60 90 120
90
Which of the following is not a legal detriment? The victim of libel promises not to sue. A 22 year old who lives in a state where the drinking age is 21 promises not to drink alcohol. An 85 year old with a valid driver's license promises that she will not drive on superhighways anymore. A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.
A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.
An employer may be liable under respondeat superior if a customer repeatedly and publicly sexually harasses an employee T or F?
False
Another term for promissory estoppel is restitution. True False
False
Any money recovered in a successful derivative suit belongs to the shareholder who initiated the suit T/F
False
Any person who occupies a position of trust and confidence in relation to another person or his property is a trustee. True False
False
Any profits which a surety makes when called upon to perform the principal's duties belong to the surety. True/False?
False
Any profits which a surety makes when called upon to perform the principal's duties belongs to the surety T/F
False
Article 2 of the Code covers the sale of land and improvements on the land. True False
False
Assume that you hire an independent contractor to transport hazardous chemicals for your company. If he negligently causes damages to a third party while carrying out the job, you will not be liable because of his status as an independent contractor T or F?
False
Assumption of the risk is an element of negligence that must be proved by the plaintiff. True False
False
Which of the following activities is permitted by the Taft-Hartley Act? - A business may require that a worker be a member of a union as a condition for being hired. - A business may require that a worker join a union after he has worked for a certain period of time - Unions may organize secondary boycotts to protest the employment practices of other employers. - Unions may veto management lay offs of workers during slow business periods.
A business may require that a worker join a union after he has worked for a certain period of time
Bob voluntarily surrender's a watch that he repaired back to the owner. Bob had a lien on the property for the value of his labor. Bob later re-acquires the property. Bob has now revived his lien since he was able to re-acquire possession of the property T/F
False
Bonding companies are usually uncompensated sureties T/F
False
Both contributory negligence and comparative negligence can be asserted as defenses in cases brought in strict liability. True False
False
Both the plaintiff and the defendant must have minimum contacts with a state for a court to meet the requirements for personal jurisdiction.
False
Codes of Ethical Conduct adopted by corporations and professional associations have the same legal status as ordinances. True False
False
Commercial speech is given the same level of protection from government interference as political speech. True False
False
Congress has not yet been active in generating laws aimed at labeling and packaging
False
Contract and tort law are examples of public law True False
False
Courts do not enforce output contracts as a matter of public policy. True False
False
Crimes are classified as strict liability crimes when specific intent is required.
False
Criminal law is a subset of private law.
False
Dicta is another term for "controlling precedent." True False
False
Employees who are not covered by the Fair Labor Standards Act are "classified employees" T/F
False
Employers have greater liability for employee torts in states that have adopted the complicity rule than in those states that follow vicarious liability.
False
Ethical conduct is also necessarily legal. True False
False
Ethics concerns how one should behave based upon one's own concept of right and wrong. True False
False
Exemplary damages are also known as compensatory damages. True False
False
Food, shelter, cell phone service and medicine are examples of necessaries. True False
False
For diversity of citizenship jurisdiction, each plaintiff must have suffered over 100,000 in damages.
False
For diversity of citizenship jurisdiction, each plaintiff must have suffered over 100,000 in damages. True False
False
For purposes of diversity of citizenship, a corporation is a citizen in only one state, the state in which it is incorporated.
False
If the contract is silent about delivery terms, a destination contract is assumed.
False
If the laws of several jurisdictions are involved in a case, the doctrine of res judicata will determine which state law will apply. True False
False
In a criminal case, the state has the burden to convince jurors of the defendant's guilt " beyond a shadow of a doubt." True False
False
It is unconstitutional to imprison someone for petty offenses.
False
Minors may only avoid executory, not executed, contracts. True False
False
Modernly, surety and indemnification contracts are the same thing T/F
False
One of the disadvantages of a Limited Liability Partnership is double taxation. True/False?
False
Only liquidated debts can be discharged in an accord and satisfaction True False
False
Participating preferred stock allows holders to trade their preferred shares for common shares when the trading price reaches a specified target T/F
False
Partnerships are required to give notice to creditors when they dissolve, but corporations are not required to give notice of their dissolution T/F
False
Plaintiff's attorney in a personal injury case has a legal duty to tell the jury whether or not the defendant has insurance.
False
Plaintiffs initiate a civil suit by filing an affidavit with the court that contains the allegations he is making against the defendant.
False
Police powers are part of the enumerated powers granted to the federal government. True False
False
Powers not specifically delegated to the federal government or to the states are reserved to the federal government. True False
False
Promissory estoppel is the contract doctrine that requires that accords be in writing. True False
False
State X requires that a party who wants to appeal the decision of a trial court file a notice of appeal within 30 days of the verdict. This is an example of a substantive state law.
False
The Equal Pay Act is the source of the federal requirement that an employer reasonably accommodate the religious practices of its employees
False
The Fair Credit Reporting Act requires the person who is the target of a credit inquiry to consent to the disclosure of his or her credit information T or F?
False
The Supreme Court has ruled that electronic surveillance violates the Fourth Amendment protections against unreasonable searches and seizures. True False
False
The Uniform Commercial Code governs the sale of all commercial services and goods. True False
False
The Uniform Commercial Code is an important federal statute regulating interstate commerce.
False
The legal test to determine whether someone is a general agent or a special agent is whether or not the agent is paid for his services T or F?
False
The number of Supreme Court justices who must agree to accept a case is 5.
False
The owner may be liable for more than the contract price even if they follow the statutory procedures T/F
False
The owner of a limited liability company (LLC) has unlimited personal liability for the debts of the LLC T/F
False
The owner of a limited liability company LLC has unlimited personal liability for the debts of the LLC T/F
False
The police powers of the states refer to their rights to make arrests and try criminals. True False
False
The power of the federal government to completely regulate an activity, to the exclusion of any state regulation, is the power of occlusion. True False
False
The purpose of compensatory damages is to punish the breaching party. True False
False
The reasonable person is a community ideal of reasonable behavior that cannot vary from situation to situation. True False
False
The release of the principal always releases the surety T/F
False
The separation of powers doctrine applies only to the federal government and not to state governments. True False
False
The standard of proof for issuing a search warrant is clear and convincing evidence. True False
False
The surety relationship requires good faith, but not fair dealing T/F
False
The tort of wrongful appropriation of another's goodwill includes reverse engineering another's product. True False
False
There are no defenses available to a defendant manufacturer in market share liability cases True False
False
There is a constitutional right to a trial by jury in criminal cases, but not in civil cases.
False
There is no evidence that information included on labels and packaging influences consumers' purchase decisions
False
Title VII caps the amount of damages a plaintiff may collect from a defendant with 100 or fewer employees at $10,000
False
Title VII prohibitions against gender-based discrimination include adverse employment actions based on sexual orientation
False
Title VII protections against self discrimination based on gender apply only to female employees and not to male employees
False
To be liable for trespass to land a person must know that the property belongs to another. True False
False
To establish a claim for deceptive advertising, it must be proven that actual customers were mislead into purchasing the product
False
Today, scholars argue the role of the corporation is to maximize the return on investment of shareholders. True False
False
Tom took Al's car without Al's permission and used it for two days before returning it. Tom has committed the tort of conversion. True False
False
Tort law is a subset of general criminal law. True False
False
Under Article 2 a consignment is treated like a sale on approval. True False
False
Under Chapter 11, holders of claims or interests in the debtor's property are not permitted to participate in the approval process of a proposed plan of reorganization T or F?
False
Under Section 7 of the National Labor Relations Act, workers who are members of a union retain the right to negotiate individual employment contracts with their employers
False
Under the Electronic Funds Transfer Act, a banking institution has 5 days after determining that an electronic transfer had been erroneously made to a customer's account to correct the error
False
When ratifying a contract, a principal may select which provisions of the contract to accept and which to reject
False
When ratifying a contract, a principal may select which provisions of the contract to accept and which to reject T or F?
False
Whether or not a principal has ratified a contract is a question of law to be decided by the judge, and never a jury at trial T or F?
False
Which of the following would result in punitive as well as contract damages? Unilateral mistake of fact Unilateral mistake of value Fraudulent misrepresentation Negligent misrepresentation
Fraudulent misrepresentation
On Saturday, Bill Buyer paid Furniture World, a furniture retailer, 600 for a table. It was to be buffed and crated so that Bill could transport it home in his truck on Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears the risk of loss? Furniture World, because it is a merchant and Bill had not yet taken possession of the table. Bill, because the table had been identified to the contract. Bill, because he had title to the table at the time it was destroyed. Bill, because he chose to pick up the table and not have it delivered.
Furniture World, because it is a merchant and Bill had not yet taken possession of the table.
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Peg is Jim's______________. Independent contractor Broker General agent Special agent
General agent
In a limited partnership, the ___ partner has unlimited personal liability for the debts of the partnership; the ___ partner is liable only to the extent of his or her capital contribution.
General---Limited
Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." To accept this offer, what should the students do? Wait a statutory three days after the offer, then give Nellie a written promise to move the furniture on Saturday. Give Nellie a written promise to move the furniture on Saturday. Make an oral promise to move the furniture on Saturday. Go to Nellie's house on Saturday and move the furniture.
Go to Nellie's house on Saturday and move the furniture.
If Mike owes a "slight duty of care" for property he is keeping for Doug, Mike would only be liable for damages to the property caused by? Ordinary negligence Slight negligence Acts of God Gross negligence
Gross negligence
Diversity of citizenship gives the defendant the right to
Have a suit filed in state court removed to federal court
Which of the following would NOT be heard in Federal District Court in Baltimore, Maryland? A suit by a Maryland resident against a Maryland restaurant claiming violation of the Civil Rights Act of 1964, which is a federal statute. A suit between a Maryland resident and a Delaware resident over car accident in Baltimore. The amount in question is $75,000. A suit between two Maryland residents over a car accident in Easton, Maryland. The amount in question is $200,000. All of the above cases could be heard in Federal District Court.
A suit between two Maryland residents over a car accident in Easton, Maryland. The amount in question is $200,000.
To whom can a thief pass good title to stolen goods? Any buyer in the ordinary course of business Any good faith purchaser for value A thief can pass good title to no one. Any purchaser or donee that does not have reason to know that the goods are stolen.
A thief can pass good title to no one.
If a judgment for dollar damages is not paid, the judgment creditor may apply for a ______. A. Default judgment. B. Writ of Execution. C. Writ of Habeas Corpus. D. Writ of first refusal.
A. default judgment
Alan is the general manger of a restaurant. Although not mentioned in his employment contract, as part of carrying out his management duties he has the authority to buy supplies, hire employees, put ads on the radio, engage a cleaning service, pay bills, etc. These duties are expressions of his _____________ authority. Actual express Actual implied Actual apparent Constructive implied
Actual implied
An agent incurs personal liability on a contract with a third party when ... - He acts outside the scope of his authority in negotiating the contract - He is an agent for an undisclosed principal - He is an agent for a partially disclosed principal - All of the above would impose personal liability on the agent
All of the above would impose personal liability on the agent
Which of the following would NOT terminate an agency by operation of law? - the death of the principal - the death of the agent - the destruction of the goods that the agent was hired to sell - all of the above would terminate an agency by operation of law
All of the above would terminate an agency by operation of law:
An employer whose termination of an at-will employee violates a public policy is liable to the employee for which of the following? - unpaid back pay and benefits - punitive damages - damages for pain and suffering - all of the above
All of the above:
When does an agent incur personal liability on a contract with a third party? - when he acts outside the scope of his authority in negotiating the contract - when he is an agent for an undisclosed principal - when he is an agent for a partially disclosed principal - all of the above
All of the above:
The theory under which courts pierce the corporate veil or corporations whose shareholders do not treat the corporation like a separate legal identity is the ___ theory
Alter ego
Which of the following statements about the good cause exception to the employment at will doctrine is false? - An employee who wins a suit for wrongful termination under the good cause exception is entitled to back wages, damages for pain and suffer - Thirty years of continuous employment is good evidence that an implied contract to terminate only for good cause has been created. - The good cause exception is created by the conduct of the parties, particularly the conduct of the employer, during the years of employment. - A and B only
An employee who wins a suit for wrongful termination under the good cause exception is entitled to back wages, damages for pain and suffer
Which of the following statements about workers compensation programs is false? - Workers compensation laws are state laws that provide benefits to workers injured on the job. - An injured worker may collect workers compensation and may sue his or her employer for negligence. - If the worker was injured by a defective product used in the workplace, the worker may collect workers compensation and sue the manufacturer - Workers compensation does not cover job injuries that are intentionally caused.
An injured worker may collect workers compensation and may sue his or her employer for negligence
May is one of three limited partners in a limited partnership. Each limited partner made a capital contribution of $50,000. Assume there is a judgment against the partnership for $300,000 and that both the partnership and the general partner are insolvent. What is the maximum amount that May will have to pay on the judgment? A. May is a limited partner so has no liability for the debts of the partnership under any circumstances. B. $50,000: May's capital contribution can be applied to the debt, but she is not personally liable beyond that. C. $100,000: May will be liable for up to 1/3 of the judgment since there are three limited partners. D. $300,000: As a limited partner May has joint and several liability for the debts of the partnership so she could be personally liable for the full amount.
B. $50,000: May's capital contribution can be applied to the debt, but she is not personally liable beyond that
AMJ Partnership has 3 partners: Amy made a 60,000 capital contribution; May made a 20,000 capital contribution; and June made a 10,000 capital contribution. The partnership agreement is silent about how profits will be divided. If the partnership makes 90,000 in profits, how will it be distributed? A. 60,000 to Amy; 20,000 to May; 10,00 to June B. 30,000 each to Amy, May and June C. 45,000 to Amy; 30,000 to May; 15,000 to June The partners will have to determine the distribution by a D. 23 partnership vote
B. 30,000 each to Amy, May and June
Which of the following is not a right of a partner? A. The right to participate in the management of the business. B. The right to draw yearly interest on his or her capital contribution C. The right to inspect the partnership books and records D. The right to sue for an accounting if another partner has taken a secret profit.
B. The right to draw yearly interest on his or her capital contribution
Which of the following statements about LLC's is false? A. LLC's are a relatively new form of business organization. B. There is an extensive body of law based on court decisions governing LLC's. C. Shareholders have no personal liability for the debts of the LLC. D. The LLC is not a taxable entity
B. There is an extensive body of law based on court decisions governing LLC's
All of the following are functions of an LLC's Operating Agreement, except: A. To set forth rules concerning voting rights for members of the LLC. B. To indemnify members of the LLC from liability for any unlawful acts. C. To make rules concerning the transfer of interests in the LLC. D. To address circumstances in which the LLC would dissolve.
B. To indemnify members of the LLC from liability for any unlawful acts.
The merger of a corporation with one of its suppliers is a ___ merger A. Horizontal B. Vertical
B. Vertical
When a ________ is purchased, a bonding company promises to pay an employer any loss, not to exceed a stated amount, caused by the covered employees' embezzlement. A. Performance bond. B. Fidelity bond. C. Security agreement. D. Nonperformance bond.
B. fidelity bond
Before the jury begins its deliberations, the judge tells them the law that applies to the case and the questions of fact they must decide. This process is known as___________________.
Jury instructions
Persons serving on final reviewing courts, such as the United States Supreme Court, are called _______
Justices
Gene is bringing a suit in strict liability for personal injuries caused by a defectively designed hair dryer. Which of the following parties can be defendants in this case? (select all the answer options that are correct) Big Retail Outlet who sold the dryer to Gene Employee that sold it Kamp;L Inc., who manufactured the hair dryer Electronic Designs, who designed the hair dyer
Kamp;L Inc., who manufactured the hair dryer Electronic Designs, who designed the hair dyer
What is the term used to describe the voting conditions necessary for a binding "representation election" in which the workers in a company vote whether or not to unionize? - Court annexed - Laboratory - Equitable - Democratic
Laboratory
Which of the following is a requirement for a valid contract? (select all answer options that are correct) Mutuality of signatures Legal capacity of the parties Offer and acceptance Consideration
Legal capacity of the parties. Offer and acceptance. Consideration.
Jude willfully and maliciously burned down the store of a competitor by spreading gasoline around it and then throwing an incendiary device. Because he committed the crime of arson, Jude necessarily also committed the lesser crime of attempted arson. In this circumstance attempted arson is what type of offense?
Lesser included
What is another term for strict liability? Liability without fault Criminal negligence. Reckless misconduct Gross negligence
Liability without fault
Which business entity has the following characteristics: liability of the owners is limited to their investments; ownership interest is easily transferrable and there are no legal limits to the number of owners; owners elect the managers of the business who operate under duties of loyalty and due care; the entity is organized under state law and may have perpetual existence; profits are subject to double taxation? A. Proprietorship B. General corporation C. Subchapter S corporation D. Limited Liability Company
B. general corporation
In a criminal case, the burden of proof on the state is to prove guilt
Beyond a reasonable doubt.
Bob promised to pave Sue's driveway and Sue promised to pay him $5000 when the work was completed. The contract between Bob and Sue is a __________________contract. Implied in fact Unilateral Bilateral Implied in law
Bilateral
Manny Manufacturer sent an e-mail to its widget supplier with this message: "Please confirm by return e-mail if you will be able to send me an additional ten dozen red widgets for the usual price by the thirtieth of this month." Supplier e-mailed back: "Yes, the additional widgets will be part of our delivery to you on the morning of the thirtieth." This exchange created what type of contract? Implied in law Bilateral Unilateral Adhesionary
Bilateral
Mutuality of consideration is a requirement for a n_________________. Action for promissory estoppel Unilateral contract Bilateral contract Firm offer under the Code
Bilateral contract
Mutuality of consideration is a requirement for an_________________. Action for promissory estoppel Unilateral contract Bilateral contract Firm offer under the Code
Bilateral contract
Vivian offered to buy Ben's violin for $2,000 and Ben accepted. Three days later Vivian gave Ben $2,000 in cash and Ben gave Vivian possession of the violin. Which of the following sets of terms best describes the contract between Vivian and Ben? Bilateral, implied in fact, valid and partially executed Unilateral, implied in fact, avoidable and executory Unilateral, express, avoidable and executed Bilateral, express, valid and executed
Bilateral, express, valid and executed.
The document issued by a common carrier evidencing receipt of goods for shipment is an_________________. Bill of attainder Bill of lading Invoice Bill of particulars
Bill of lading
Bona fide occupational qualification cannot be raised as a defense in cases of employment discrimination based on which of the following? - Race - Color - Religion - Both A and B
Both A and B
Bona fide occupational qualification is a defense narrowly interpreted by the courts, which applies to cases of employment discrimination that are based on which of the following? - Gender - National origin - Both A and B
Both A and B
Employers who dismiss an employee in a public and demeaning way may be liable the employee in tort for which of the following? - Invasion of privacy - Intentional infliction of emotional distress - Wrongful interference with a contractual relationship - Both A abd B
Both A and B
When is the only time that employers are subject to the Age Discrimination in Employment Act? - If they engage in interstate commerce - If they have at least twenty employees - If they have at least 100 employees - Both A and B
Both A and B
An agent has a duty to obey the principal's instructions unless which of the following is true? - the instructions require the agent to perform duties that are not in the agency agreement - the instructions are to perform an illegal act - the instructions are not in the principal's best interest - both A and B
Both A and B:
An agent's actual authority may be ___ - express - implied - ostensible - both a and b
Both A and B:
Bereaved had a dispute with Funeral Home over the costs of services for his father. When he left home the morning of the funeral, he found his father's embalmed body on his front door step. Bereaved has suffered prolonged sleeplessness and depression since then. Bereaved can sue Funeral Home for? Mental distress False imprisonment Invasion of privacy Disparagement
Mental distress
Assume that the defendant in disparate impact case claims, as an affirmative defense, that the employment practice which is complained of is, "job related and consistent with business necessity." What clan Plaintiff show to defeat this defense? - The practice is a pretext for discrimination. - There is another, non-discriminatory employment practice that fills the same function. - The defendant had been investigated by the EEOC at least twice within the last ten years. - Both A and B
Both A and B:
To collect workers compensation, what must an employee do? - Suffer an injury that arose out of his employment - Be included in the category of workers entitled to workers compensation - Not be out of work for more than ten days - Both A and B
Both A and B:
Under the National Labor Relations Act, businesses may NOT do which of the following? - Prevent workers from forming a union - Discriminate against workers for joining a union - Lay off workers in business downturns without the approval of twenty-three of the workers in a shop vote - Both A and B
Both A and B:
Which of the following industries are subject to particular FTC scrutiny? Funeral homes Tanning salons Home insulation providers Both a and c
Both A and C
When would an employer not be liable for sexual harassment of an employee by a supervisor? - If it was quid pro quo harassment - If it was hostile workplace harassment and the employer had exercised reasonable care to establish and enforce anti-harassment policies - If it was hostile workplace harassment and the employee waited too long to report the incident - Both B and C
Both B and C
Nelson and Jack are both avid sailors. When a sailing acquaintance put his older, but still highly desirable, boat up for sale, Nelson and Jack agreed to pool their resources to buy and fix up the boat, then sell it and split the profits. This is an example of a ___ A. general partnership B. limitied partnership C. Joint venture D. proprietorship
C. Joint venture
The right of first refusal refers to the right of LLC members to A. Dissent from a business decision by a non-member manager. B. Vote against admitting another member. C. Purchase the interest of another member in the LLC before it is offered to an outside buyer D. Purchase an asset of the LLC before it is offered for sale to the public.
C. Purchase the interest of another member in the LLC before it is offered to an outside buyer
A partner who participates in the management of the partnership, but whose existence is not known to the public is a ___ partner A. Silent B. Dormant C. Secret D. Senior
C. Secret
The document that is written evidence of an ownership interest in a corporation is a ___ A. Stock warrant B. Charter C. Stock certificate D. Proxy statement
C. Stock certificate
Partners hold title to partnership property as... A. Joint tenants B. Tenants in common C. Tenants in partnership D. Tenants by the entireties
C. Tenants in partnerships
Mary, concerned with antibiotics and chemicals in the food supply, started to raise pigs in the backyard of her suburban home. She now has fourteen pigs that produce a significant amount of solid waste, which attracts insects and smells very bad. There are no town or county ordinances that specifically forbid raising pigs. Her neighbors should challenge her right to engage in this activity based on the tort of? Intentional interference with a prospective business advantage Nuisance Intentional infliction of emotional distress Trespass to land
Nuisance
Injunctions are often sought as remedies in torts of: (select all the answer options that are correct) False imprisonment Nuisance Wrongful appropriation of another's good will Personal injury
Nuisance Wrongful appropriation of another's good will
The person to whom an offer to form a contract is made is called the___________. Donee Obligor Offeree Offeror
Offeree
The person who makes an offer to form a contract is the ______________. Maker Offeree Donor Offeror
Offeror
Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ________________and will not enforce it. Crime Tort Act of extortion Penalty
Penalty
Which of the following is NOT a procedure used in discovery?
Peremptory challenges
A debtor may voluntarily instigate a bankruptcy case by filing a ___ with the bankruptcy court Complaint Claim Declaration Petition
Petition
The party who files a civil suit at law is called the ____________.
Plaintiff
A state Statute of Limitations which requires that suits for breach of contract be filed within 2 years of the date of breach are examples of ______ laws.
Procedural
Detrimental reliance is another term for? Renunciation Promissory estoppel Good faith Forbearance
Promissory estoppel
Creditors are required to file ___ if they are to share in the debtor's estate Proof of their claims Financial statement. Articles of Dissolution. Mechanic's lien
Proof of their claims
Which of the following is false about a renunciation? Renunciations are valid in common law but not under the Code A written renunciation does not require consideration. An oral renunciation does require consideration. The right that is waived in a renunciation is a contract right.
Renunciations are valid in common law but not under the Code.
Dr. Dan accidentally left a scalpel in Paul Patient during Paul's operation, causing Paul much pain and necessitating additional surgery. Paul's lawyer will most likely use the special doctrine of ____________when he sues Dr. Dan for negligence. Res ipsa loquitur Superseding cause Negligence per se Contributory negligence
Res ipsa loquitur
The legal doctrine that holds the master liable for the torts committed by a servant while acting within the scope of this employment is ___ - quid pro quo - respondeat superior - caveat emptor - alter ego liability
Respondeat Superior
Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. In order to get her money back, Betty will have to return the pin to Sally. This is the duty of? Reformation Restitution Compensation Replevin
Restitution
Sue, a resident of Somerset County, Maryland, and David, a resident of Broome County, New York, are fighting over land located in Sussex County, Delaware. Under traditional rules of venue, the trial to determine ownership would take place in
Sussex County
A license of intellectual property is a contract which allows one firm to use the intellectual property of another in return for payment.
True
A limited partner risks personal liability when he or she actively participates in the management of partnership affairs. True/False?
True
A limited partnership must have at least one general partner and one limited partner T/F
True
A major purpose of discovery is to encourage the parties to settle the case without going to trial.
True
A master can normally avoid liability for damages caused by a servant if he can show that the servant misunderstood his instructions T or F?
True
A merchant's duty of "good faith" under the Code includes observing the reasonable commercial standards for fair dealing in his or her trade. True False
True
A minor is held to the same duty of care as an adult when driving a car. True False
True
A minor may act as an agent for an adult principal T or F?
True
A new partner is liable only to the extent of his or her capital contribution for the already existing debts of the partnership T/F
True
A party to a contract who lacks mental capacity, but has not been adjudicated insane, is liable in quasi-contract for necessaries. True False
True
A party who misstates an important fact during contract negotiations has an affirmative duty to correct that misstatement before entering into the contract. True False
True
A party who wishes to appeal a judgment is normally required to post a bond. True False
True
A person is negligent if he or she fails to act as a reasonable and prudent person would act in those circumstances. True False
True
A person who enters into a contract with an independent contractor is called a proprietor T or F?
True
A person who violates a decree from a court of equity can be jailed for contempt of court. True False
True
A petit jury decides the guilt or innocence of a defendant in a criminal trial
True
A plaintiff who sues the employer and the employee in joint and several liability is limited to only one recovery
True
A principal has the duty to notify third parties when an agency terminates T or F?
True
A principal may ratify a contract by accepting the benefits of the contract T or F?
True
A principal who is discharged in bankruptcy is released from his duty to reimburse the surety. True/False?
True
A principal whose identity is known to a third party is a disclosed principal T or F?
True
A promotor has a fiduciary responsibility toward the prospective corporation T/F
True
A proprietor will be liable for the torts of an independent contractor if the duties that the contractor is hired to perform are inherently dangerous to the public T or F?
True
A receiver is an officer of the court who takes possession of property involved in a lawsuit for the benefit of the ultimate owner T/F
True
A renunciation is a written waiver of a right arising out of a contract. True False
True
A seller who knows that his property has a defect not discoverable by the buyer will be liable for fraudulent misrepresentation if he does not disclose the defect. True False
True
A shareholder who holds watered stock is potentially liable to the creditors of the corporation should the corporation become insolvent and unable to meet its obligations T/F
True
A sub-surety becomes liable to the creditor only when another surety fails to perform T/F
True
A sub-surety becomes liable to the creditor only when another surety fails to perform. True/False?
True
A surgeon is held to a higher standard of care in performing an operation than a general practitioner would be in performing the same operation. True False
True
A third party must use reasonable care and diligence to maker sure that an agent is acting within the scope of his or her employment T or F?
True
Absent a special relationship, one person has no legal duty to warn or rescue another. True False
True
Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be amended with the unanimous consent of the members T/F
True
Agents are personally liable to third parties on contracts when the principal was undisclosed T or F?
True
Agents of undisclosed principals are entitled to be indemnified if held personally liable on contracts that were within the scope of their authority T or F?
True
All bankruptcy trustees must post a bond in favor of the United States.
True
All states have juvenile courts with special procedures for crimes involving minors. True False
True
An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering. True False
True
An agency will terminate by operation of law if the principal files for Chapter 7 Bankruptcy T or F?
True
An agent is a fiduciary of the principal.
True
An agent is a fiduciary of the principle T or F?
True
An agent who co-mingles the principal's funds with his or her own violates the duty to account T or F?
True
An employer who fires an at will employee in a public and humiliating manner may be liable to the employee for intentional infliction of emotional distress
True
Another term for consideration is a bargained-for exchange. True False
True
Another term for punitive damages is exemplary damages. True False
True
Article 2 of the Code has special rules that apply only to merchants. True False
True
BOTH performance bonds and fidelity bonds are sureties T/F
True
Boards of directors normally have the power to purchase insurance to indemnify directors who are sued personally for corporation-related actions T/F
True
Both contractors and subcontractors are entitled to a mechanic's lien against the owner for nonpayment of their accounts. True/False?
True
Both physical and mental impairments are included under the Americans with Disabilities Act's definition of a disability
True
Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The construction work has been completely finished, but Hailey has not yet paid Cal. This is an example of a partially executed contract. True False
True
California and New York allow only professional services firms to do business as Limited Liability Partnerships. True/False?
True
Co-sureties share joint and several liability to the creditor T/F
True
Codes of Ethical Conduct adopted by businesses and professions often provide for sanctions against individuals who violate the code. True False
True
Commercial speech has no constitutional protections if it misleads or promotes can illegal activity. True False
True
Congress has enacted legislation aimed at the protection of current and prospective debtors T or F?
True
Courts may look into the adequacy of consideration if there is evidence of fraud or undue influence by one of the parties. True False
True
Courts may use course of performance, course of dealing and usage of trade to override express terms in a contract. True False
True
Creditors must receive as much in a Chapter 11 reorganization plan as they would receive in a Chapter 7 liquidation
True
Creditors who petition a debtor into bankruptcy may be required to post a bond T or F?
True
Criminal and taxing statutes are strictly and narrowly construed True False
True
Customers who want to sue businesses for damaged goods or poor services often choose small claims court.
True
Directors are fiduciaries of the corporation and may have liability in both contract and tort T/F
True
Early cases of strict liability dealt primarily with liability for dangerous animals or abnormally dangerous activities. True False
True
Employees take their ethical cues from the behavior of top management. True False
True
Employers have a duty under Title VII to reasonably accommodate the religious practices of their employees
True
Employers who violate OSHA regulations are subject to fines and, if the violations are willful, imprisonment
True
Ethical behavior often requires a higher standard than merely legal behavior. True False
True
Ethics involves determining how one should act based on a group's determination of right and wrong. True False
True
Evidence gathered under a defective search warrant may still be used at trial if the police had a good faith belief that the warrant was good. True False
True
Excessive punitive damage awards may violate the constitutional protection of due process. True False
True
Excessive punitive damage awards may violate the constitutional protection of due process. True False
True
Exempt bankruptcy is subject to being used even after bankruptcy to pay debts for child support and alimony T or F?
True
Exempt property is subject to being used even after bankruptcy to pay debts for child support and alimony.
True
Failure to obey the order of a court of equity can result in imprisonment. True False
True
Failure to rescind a contract within a reasonable time amounts to an affirmation of the contract. True False
True
Featherbedding is an illegal activity in which unions force employers to hire more employees than necessary
True
Federal District Courts use federal procedural law in the conduct of both civil and criminal trials. True False
True
Federal law prevails if federal and state statutes conflict. True False
True
Federalism is the doctrine that the powers of government are shared between the states and the federal government.
True
Following a complaint to the EEOC, Morgan was denied a promotion for which he was qualified. The denial is an example of retaliation that is prohibited by Title VII
True
For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise. True False
True
Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract. True False
True
If a credit gets a judgement against the creditor, and then the surety pays the creditor, the surety gets to benefit from the judgement that was obtained by the creditor T/F
True
If a director discovers illegal activity he or she must report the activity or problem, and if the officers of the corporation refuse to take action, the director must resign and notify the appropriate authorities T/F
True
If a principal ratifies the unauthorized act of an agent, he releases the agent from any liability for the unauthorized act T or F?
True
If a principal wishes to ratify a contract that an agent was not authorized to negotiate, he must do so before the third party withdraws from the contract T or F?
True
If a taxpayer files suit challenging the budget of the CIA, the court will rule that the taxpayer lacks standing to sue. True False
True
If an agent gets a monthly advance against future commissions, the advances are treated as a minimum salary and need not be returned if the commissions on sales are not earned T or F?
True
If the agent dies, the agency agreement terminates by operation of law T or F?
True
If the formalities of creating a limited partnership are not met, a partnership will be treated by courts as a general partnership. True/False?
True
If the principal dies, the agency agreement terminates by operation of law T or F?
True
In Chapter 7 bankruptcy cases, certain debts of the debtor will not be discharged
True
In a Chapter 13 proceeding, the rights of a bank which holds a home mortgage may not be modified T or F?
True
In a Limited Liability Company, the losses stay with the corporation although the profits pass through to the shareholders T/F
True
In a closely held corporation, shareholders owe each other substantially the same fiduciary duties that partners owe one another T/F
True
In a destination contract, title to the goods passes to the buyer when the goods reach their destination. True False
True
In a discretionary appeal, an appellate court has the right to refuse to hear a case. True False
True
In a diversity case, the federal court will use the substantive law of the state in which it is located. True False
True
In a liquidated debt, the parties agree on the exact amount that is due. True False
True
In a multiple listing agreement, real estate is listed with several brokers who divide the commission on the sale T or F?
True
In a sale on approval, the seller must pay the costs for returning the goods. True False
True
In a typical year, the U.S. Supreme Court will select about 150 cases to hear from approximately 5,000 requests.
True
In an accord and satisfaction, the accord is the new agreement. True False
True
In bilateral contracts, both parties must be bound to the contract or neither party is bound. True False
True
In common law, a child under age seven is presumed to lack the mental capacity to form criminal intent. True False
True
In deciding a case, a court will not use common law if there is a statute that applies to the dispute. True False
True
In deciding a case, statutory law always supersedes common law.
True
In interpreting a particular sales contract, courts rely more on course of performance than on usage of the trade. True False
True
In joint and several liability one party is potentially liable to pay the entire amount of the judgment. True False
True
In joint and several liability, a defendant who pays the entire amount of the judgment may sue the other defendants for their share of the obligation. True False
True
In most states corporations can have perpetual existence T/F
True
In negligence cases, a superseding cause is one that breaks the direct sequence between the act, which is the basis of the negligence claim, and the plaintiff's injury. True False
True
In negligence per se cases, the injury that the plaintiff suffers must be the same type of injury that a statute was intended to prevent. True False
True
In the majority of states an LLC can be both formed and managed by only one member T/F
True
Injunctions are available as remedies in nuisance cases. True False
True
Innocent misrepresentation can be the basis for the injured party to rescind the contract. True False
True
Intentionally touching another in a way that is harmful or offensive constitutes the tort of battery. True False
True
Investors favor using Limited Partnerships to invest in commercial real estate because they can use the depreciation of the property as a tax loss T/F
True
It is good practice to include in a contract which state's law will govern disputes that arise under the contract.
True
It is illegal to retaliate against an employee for filing a complaint with the EEOC
True
It is only within the last eighty years or so that the federal gov't and the states have enacted laws protecting employment rights and workplace safely T or F?
True
It is the function of the jury to decide the facts that are in dispute in a case. True False
True
Judicial review is the power of the courts to declare laws unconstitutional. True False
True
Justices serve on final reviewing courts while judges serve on trial and intermediate level courts.
True
LLC are taxed as partnerships unless the owners choose to be taxed as a corporation T/F
True
Limited Partnership must have at least one general partner T/F
True
Manufacturers may be subject to product liability suits based on negligence if they fail to provide adequate instructions for the use of the product. True False
True
Many areas of law important to businesses are governed by the Uniform Commercial Code. True False
True
Many economists believe personal interest is a basis for a well-functioning economy. True False
True
Masters and servants have only joint liability for torts committed by the servant in the course of his employment.
True
Most states allow employers to require job applicants and employees to undergo alcohol and drug tests
True
Most states will not allow recovery for economic losses in product liability cases based on strict liability. True False
True
Normally a master is not liable for torts committed by a servant while traveling from his home to the workplace T or F?
True
Officers of a corporation are responsible for carrying out the policies set by the board of directors T/F
True
One function of the Constitution is to protect individual rights by limiting the role of government. True False
True
One method for proving that a contract has been rescinded is to tear up the contract. True False
True
One method for proving that a contract has been rescinded is to tear up the contract? True False
True
One of the elements of fraudulent misrepresentation is that the victim's reliance on the false representation was justifiable. True False
True
One recognized advantage to a general partnership is that it allows partners to share in management and profits of the partnership. True/False?
True
One typical example of a closed-end credit transaction is where a purchaser obtains a loan of money from a bank to purchase a car T or F?
True
Partner A defrauded a client of the partnership. Partners B and C are jointly and severally liable with A to the client, even though they were unaware of the fraud T/F
True
Partnerships typically buy life insurance policies on each partner in order to fund the required purchase of the partner's interest in the partnership when the partner dies T/F
True
Paul and several of his friends bought tickets to a Ravens football game and were outraged that they were not allowed to march up and down the sidelines carry signs protesting the repeal of the Don't Ask, Don't Tell law. They will not be able to sue the Ravens' management for violating their First Amendment rights because there was no state action involved.
True
Peremptory challenges or strikes may not be based on race or gender. True False
True
Plaintiff was 10% at fault for a car accident in which he was injured. In a contributory negligence state, plaintiff would recover nothing from the defendant although the defendant was 90% at fault. True False
True
Political speech enjoys the greatest protections under of the First Amendment of any classification of speech. True False
True
Premiums paid by corporations for the health insurance it provides employees are tax-deductible expenses T/F
True
Preponderance of the evidence is the easiest burden of proof to meet. True False
True
Principles of legal reasoning may successfully be applied to solving certain problems related to business strategies.
True
Punitive damages may be awarded to victims of fraudulent misrepresentation. True False
True
Pure comparative negligence is the defense in negligence cases that most favors the plaintiff. True False
True
Questions are used by both plaintiffs and defendants during voir dire to eliminate potentially biased jurors.
True
Relative to corporate and partnership law there is not a comparable amount of case law involving LLCs T/F
True
Respondeat superior is a firm of vicarious liability.
True
Respondeat superior is a form of vicarious liability T or F?
True
Sam Sophomore is suing the school board of Small Town, Iowa for suspending him because he held up a sign at a pep rally denouncing war. He claims that his First Amendment right of free speech was violated. He may file suit in federal district court in Iowa, even though he and the defendant school board members are citizens of Iowa. True False
True
Scienter includes not only actual knowledge that a statement is false, but also reckless disregard for whether the statement is true or false. True False
True
Scooter was indicted for committing a federal crime. He can be tried only in federal district court
True
Selling alcohol to a minor is an example of a strict liability crime. True False
True
Shareholders are entitled to notice when a special meeting is called T/F
True
State law determines whether or not a mortgage will have priority over a mechanic's lien T/F
True
State law determines whether or not a mortgage will have priority over a mechanic's lien. True/False?
True
States decide whether or not debtor residents may use the federal bankruptcy exemptions T or F?
True
States have statutes of limitations limiting the time after the dissolution of a corporation when creditors of the corporation may sue former shareholders on corporate debts T/F
True
Subrogation means the substitution of one person in place of another T/F
True
Subrogation means the substitution of one person in place of another. True/False?
True
Summary judgments cannot be granted if there are any questions of material fact still in dispute by the parties.
True
Surety agreements may also be created by operation of law T/F
True
Systems of ethics, which focus on outcomes to determine the ethics of an act, are also called consequential systems. True False
True
Tamara left her car in a line of other cars waiting to be washed. Tamara expects to pay for the service and the car wash expects to be paid. The contract that exists between Tamara and the car wash is an implied in fact contract. True False
True
The Americans With Disabilities Act applies only to employers who have 15 or more employees
True
The Americans with Disabilities Act prevents employers from requiring that job applicants or employees undergo medical tests as a condition of employment
True
The CFPB has sole jurisdiction to write new regulations on the consumer financial protection laws written by Congress T or F?
True
The FTC is given wide discretion by the courts in determining when advertising is deceptive
True
The FTC regulates deceptive advertising on Web pages as well as on television and in the print media.
True
The First Amendment is interpreted to include political free speech for corporations. True False
True
The Occupational Safety and Health Act imposes on employers both a general duty to provide a safe work place and specific duties that are tailored to the employers' particular industries
True
The Privileges and Immunities Clause insures that a citizen of State X cannot be denied access to employment opportunities in State Y based on his state of residency.
True
The Tax Code does not allow corporations to deduct as expenses excessive or unreasonable compensation to officers and employees T/F
True
The Truth in Lending Act applies only to consumer credit transactions and consumer leasing T or F?
True
The Uniform Commercial Code governs contracts for the sale of goods. True False
True
The Uniform Commercial Code is an important source of contract law for businesses in the United States. True False
True
The admission of a new partner automatically dissolves the partnership T/F
True
The agreement to purchase stock in a future corporation is a pre-incorporation subscription T/F
True
The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury. True False
True
The automatic stay is designed to protect the debtor and the creditor in a bankruptcy proceeding
True
The bankruptcy of a partner will cause the dissolution of the partnership by operation of law T/F
True
The basic purpose of bankruptcy is to allow a debtor in a difficult financial situation a fresh financial start T or F?
True
The basis purpose of bankruptcy is to allow a debtor in a difficult financial situation a fresh financial start
True
The body of law that will be used to determine which state's law will apply in a multi-state transaction is conflict of laws.
True
The bona fide occupational qualification defense may be used in claims arising under the Age Discrimination Employment Act
True
The business judgement rule protects directors who are loyal and careful from liability for business decisions that result in loss to the corporation T/F
True
The buyer attains the right to insure the goods once the goods are identified to the contract. True False
True
The capital contribution of each partner is a liability to the partnership and must be returned to the partner when the partnership ends T/F
True
The conclusion follows from the relationship between the major and minor premises. True False
True
The courts allow sexual harassment claims for both same sex and opposite sex harassment T or F?
True
The director's duty of loyalty continues after the director's resignation T/F
True
The document issued by a common carrier evidencing its receipt of goods for shipment is a bill of lading. True False
True
The dormant commerce clause refers only to laws passed by the states and not to those passed by the federal government. True False
True
The federal government may regulate any activity that "substantially affects interstate commerce" even if that activity takes place entirely within the borders of the state. True False
True
The general manager of a business will have the implied actual authority to perform duties that are not expressly authorized in the employment agreement T or F?
True
The good cause exception to employment at will is based on the conduct of the parties, especially on the conduct of the employer, during the years of employment
True
The greater the risk in a situation, the higher the duty of care. True False
True
The law in many European countries is based on codified statutes, not case precedents. Such law is classified as a civil system.
True
The limited liability partnership is often an attractive option for professional associations such as law firms, accountants and medical doctors. True/False?
True
The majority of tort cases filed in United States courts are based on negligence, not on intentional torts. True False
True
The manager of a manager-managed Limited Liability Company may be a non-member T/F
True
The manager of a manager-managed Limited Liability Company may be a non-member. True/False?
True
The party who wins at trial and must defend his win in an appellate court is called the appellee. True False
True
The primary duty of appellate courts is to determine whether the law was correctly applied at the trial level. True False
True
The principal is a fiduciary of the agent T or F?
True
The provisions of the law AND the partnership agreement govern the operations of the partnership T/F
True
The publication requirement for libel is met if the falsehood is communicated to just one other person. True False
True
The purpose of reformation is to correct the written contract to reflect the actual intentions of the parties. True False
True
The purpose of the doctrine of stare decisis is to give certainty and predictability to the law. True False
True
The purpose of the pretrial conference between the lawyers and the judge is to encourage the parties to settle the suit before trial
True
The secret formula for a soft drink is an example of a trade secret T or F?
True
The standard for issuing a search warrant is probable cause. True False
True
The statute that requires that certain contracts be in writing is the Statute of Frauds. True False
True
The statute that requires that certain contracts be in writing is the Statute of Frauds. True False
True
The victim of negligent misrepresentation may recover contract damages, but not punitive damages. True False
True
The written questions that parties to a suit send each other that are answered in writing under oath are interrogatories. True False
True
Title VII makes it illegal for an employer to sexually harass an employee in the workplace
True
Title VII protections against discrimination in employment do NOT apply to independent contractors
True
To be protected by the public policy exception to employment at will, the public policy that the employee acts to advance must usually be tied to a constitutional, statutory, or administrative law
True
To bring a suit for disparagement, the plaintiff must show specific pecuniary losses attributable to the falsehood. True False
True
To collect state unemployment insurance, a worker must be actively seeking a replacement job that is appropriate for someone with his skills, education and work history
True
To collect workers compensation an employee's injury must have occurred in the workplace or in a work-related situation
True
To hear a case, courts must have subject matter jurisdiction. True False
True
To meet the element of consideration, each party to a contract must gain a legal benefit and incur a legal detriment. True False
True
To ratify a contract, the principal must have been disclosed at the time the contract was formed T or F?
True
Tort law is a subset of private law that seeks to compensate the injured party for the loss caused by the actions of another. True False
True
Under RUPA, a partnership may take title to real life property as a tendency in partnership T/F
True
Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration. True False
True
Under the Equal Credit Opportunity Act, creditors are forbidden from making statements to applicants that would discourage them from applying for credit T or F?
True
Under the Fair Credit and Reporting Act, most information is considered obsolete after 7 years and must be purged from the files of credit reporting agencies T or F?
True
Under the Fair Labor Standards Act, covered workers are entitled to one and a half times their hourly wages for overtime
True
Under the Fair and Accurate Credit Transaction Act, victims of identity theft may file a fraud alter with consumer credit reporting companies, which would appear on their credit report T or F?
True
Under the Pregnancy Discrimination Act, pregnancies must be treated by the employer like any other medical condition that may affect an employee's status
True
Under the Uniform Commercial Code, provisions in a contract will not be enforced if they are so one-sided and unfair that the provisions are unconscionable. True False
True
Under the common law, modifications to existing contracts required new consideration from each party. True False
True
Under the family-car doctrine, any family member becomes an agent of the parent-owner while the family member is using the car T or F?
True
Use of analogical reasoning involves the comparison of the facts of the current case with the facts in previously decided cases.
True
Voluntary surrender of personal property subject to an artisan's lien generally terminates the lien. True/False?
True
When a principal files for Chapter 7 bankruptcy, all agency appointments end when the court grants an order of relief.
True
When dealing with an absolute guarantor, the creditor does not have to first attempt to collect from the debtor prior to proceeding against the guarantor T/F
True
When holders of mechanic's liens are equal in priority, and there are not sufficient funds to satisfy all their claims, they will share the funds that are available on a pro-rata basis T/F
True
When workers strike for higher wages, management may hire replacement workers and refuse to rehire the striking workers when the strike is over
True
Whether or not a doctor acted negligently is a question of fact for a jury to decide. True False
True
In a bankruptcy proceeding, the ___ is the person responsible for managing the debtor's assets and for satisfying the creditor's claims to the extent possible Debtor Creditor Interested party Trustee
Trustee
The ___ imposes duties on creditors who wish to extend credit, primarily in the area of making disclosures to potential debtors a. Sherman Act. b. Truth in Lending Act. c. Clayton Act. d. Fair Trade Act.
Truth in Lending Act
The ________ imposes duties on creditors who wish to extend credit, primarily in the area of making disclosures to potential debtors. a. Sherman Act. b. Truth in Lending Act. c. Clayton Act. d. Fair Trade Act.
Truth in Lending Act.
Deductive reasoning does not allow one to
draw conclusions from similar cased decided in the past
Mary is an Assistant District Attorney prosecuting a 26 year old defendant on drug charges. One of the potential jurors is a college- age person with green hair and multiple body piercings, whom Mary rather not have on the jury. She will use a (n) ______strike to eliminate this potential juror.
peremptory
A surety's obligation is a generally promise to do what the principal agreed to do. true/false?
true
Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be amended with the unanimous consent of the members. True/False?
true
Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be amended with the unanimous consent of the members. true/false?
true
Accurate information on labels and packaging is important because consumers rely on this information when comparing products and making purchasing decisions.
true
Because the LLC is a relatively new type of business entity, there are often fewer published court opinions addressing LLC issues. true/false?
true
Co-sureties share joint and several liability to the creditor true/false?
true
If a credit gets a judgment against the creditor, and then the surety pays the creditor, the surety gets to benefit from the judgement that was obtained by the creditor. True/false?
true
If the formalities of creating a limited partnership are not met, a partnership will be treated by courts as a general partnership. true/false?
true
If the principal does not default, the surety never becomes liable to the creditor. true/false?
true
If there is diversity of citizenship, the plaintiff may file the suit in federal district court.
true
In a manager-membered LLC, an individual or small group has the authority to control and make decisions for the LLC. true/false?
true
In a memeber-managed LLC all members participate in management. true/false?
true
In the majority of states an LLC can be both formed and managed by only one member. true/false?
true
No federal law addresses workplace bullying as a form of discrimination
true
Once bankruptcy proceedings are commenced, creditors are prohibited from attempting to collect their debts.
true
One recognized advantage to a general partnership is that it allows partners to share in management and profits of the partnership.
true
Relative to corporate and partnership law there is not a comparble amount of case law involving LLCs. true/false?
true
The two types of guaranty agreements are general and special. True/False?
true
To create a Limited Liability Corporation, articles of organization must be filed with the state's Secretary of State's office. true/false?
true
Voluntary surrender of personal property subject to an artisan's lien generally terminates the lien.
true
When dealing with and absolute guarantor, the creditor does not have to first attempt to collect from the debtor prior to proceeding against the guarantor. true/false?
true
When holders of mechanic's liens are equal in priority, and there are not sufficient funds to satisfy all their claims, they will share the funds that are available on a pro-rata basis. true/false?
true
Only someone in a supervisory capacity can be liable for quid pro quo sexual harassment
tue
The judiciary has the power to do all of the following except:
Impeach the President of the United States for high crimes
A misdemeanor can be punished by
Imprisonment for up to 1 year in a local facility Imprisonment for more than 1 year in a state penitentiary
Harry has been charged with the federal crime of securities fraud which he committed while working as a stockbroker in New York City. His trial on federal criminal charges can be held
In the Federal District Court in New York
Implied authority is also known as ____________ authority.
Incidental
A principal is obligated to pay any judgements against an agent who incurred liability to a third party while carrying out the principal's orders. This duty to hold the agent "harmless" is the duty to ___ - reimburse - indemnify - compensate - account
Indemnify
The duty of the principal is to hold an agent "harmless", and to pay any judgments for which the agent becomes liable while carrying out the principal's orders, is the duty to ___ Mitigate Indemnify Protect Reimburse
Indemnify
The duty of the principal to hold an agent "harmless," and to pay any judgments for which the agent becomes liable while carrying out the principal's orders, is the duty to_______________. Mitigate Indemnify Protect Reimburse
Indemnify
Bill hired Acme Paving to pave his driveway. Acme is Bill's ___ A.Broker, B. Independent contractor, C. Factor, D. Special agent
Independent contractor
Tucker hired SoClean, a house washing service, to power wash his house and deck. SoClean's status of that of a (n) ________________________. A. Factor B. Special agent C. Independent contractor D. Proprietor
Independent contractor
When a grand jury decides there is sufficient evidence to bring someone accused of a crime to trial it issues a (n)______________.
Indictment
For crimes that are misdemeanors, the government gives the defendant notice of the charges against him in an_________________.
Information
A debtor is presumed to be ___ during the ninety-day period prior to filing the petition Insolvent. Under duress. Incapacitated. Solvent.
Insolvent
For which of the following purchases would a minor have to pay the full contract price? (select all answer options that are correct) An iPod Medicine Insurance Car
Insurance
Big 60s British Rock Star had a contract to perform at Shady Pines Retirement Home, where many of his fans now lived. Sunnydale Retirement Village, a business rival, convinced Rock Star to breach his contract with Shady Pines and perform for them instead on that day. They offered him more money and promised to pay for any liability he might have to Shady Pines. For what could Shady Pines sue Sunnydale? Nuisance Interference with a contractual relationship Breach of contract Conversion
Interference with a contractual relationship
Company A has entered into a contract to acquire Company B. Hearing of this, Company C offers to acquire Company B for more money and to indemnify the directors of Company B for any damages resulting from its breaching its contract with Company A. Company A can sue Company C for the tort of____ Breach of contract Interference with prospective advantage Trespass Interference with contractual relations
Interference with contractual relations
Assume that Big Chicken Grower (BCG) is sued in a court of equity and the court issues a temporary injunction against BCG to prevent it from discharging waste water from its processing plant into the local river. This temporary injunction is an example of a (n)_____________.
Interlocutory decree
Which of the following is not a necessary? Internet service Education Food Medical treatment
Internet service
Len, a local photographer, shot a photo of a family at the beach. Without their knowledge or consent, Len used the photo in all his ads and business cards and featured it prominently on his web page. Len has committed the tort of? Invasion of privacy Trespass to personality Negligence per se Disparagement
Invasion of privacy
A state law will be invalid if it conflicts with a federal law because of the ________Clause.
Supremacy
Which of the following statements is true about contracts in which $1 is offered as consideration? (select all answer options that are correct) $1 is accepted as consideration in contracts that transfer title to deeds. $1 is accepted as consideration if the value of the goods do not exceed $500.00 $1 is accepted in the business community as consideration for a signed option contract. $1 can never support a valid contract because it cannot be an inducement for taking on a legal detriment.
$1 is accepted as consideration in contracts that transfer title to deeds. $1 is accepted in the business community as consideration for a signed option contract.
Goods which are required for maintaining life or health are classified as? Obligatories Necessaries Sustenance Res in chose
Necessaries
Bob's Beer and Booze Barn classfies a clerk as a "managerial assistant" and assigns menial supervisory duties to this employee, that do not meet the department of labor (DOL) standards, to avoid paying overtime wages. Bob "knows" the clerk will not be aware that these new supervisory duties do not meet the requirements of the DOL and does not expect the department of labor will look into the classification if the clerk does not contest their status with the DOL. This practice is:
-Unethical and contrary to the spirit of the employment laws -Unethical and contrary to the letter of the employment laws
Hilary sold Meredith a broach that had belonged to her mother. She told Meredith, in good faith, that it was a genuine cameo from the 1880's. In fact, it was a copy manufactured in the 1980's out of polymers. Meredith can rescind the contract based on 1.Innocent misrepresentation 2.Unilateral mistake of fact 3.Fraudulent misrepresentation 4.Unilateral mistake of value
1
Only employers who have ___ or more employees are subject to the Family and Medical Leave Act - fifty - seventy - 100 - 300
50
Under Regulation Z, when a credit card is lost or stolen, the credit card holders liability for unauthorized charges is limited to ___ 100 25 50 unlimited
50
A consumer who finds an error in a credit card statement has ___ days from the time of discovery to notify the bank 30 60 65 180
60
Al, Bill, Chad and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity initiation event got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay the plaintiff is? 100,000 25,000 75,000 50,000
100,000
Creditors may petition the bankruptcy court to convert a Chapter _________bankruptcy in to a Chapter __________bankruptcy. 7 into 13 11 into 7 11 into 13 13 into 11
11 into 7
To be entitled to the protection of the Family and Medical Leave Act, the employee must have worked for the employer for ___ months and the employer must have ___ employees - 24; 200 - 18; 50 - 12; 50 - 12; 10
12 ; 50
Jack and Jill have a one year contract that calls for Jack to make 4 deliveries of flour a month to Jill's bakery. The pattern of repeated deliveries under this one contract establishes 1.A business condition 2. A course of performance 3.A course of dealing 4. A usage of the trade
2
Local Delivery Service had a one year contract with Supply Co. to make four deliveries a month to Supply's customers who live across the Bay. There is only one bridge spanning the Bay for 200 miles in each direction. Without warning, the state closed the bridge to all traffic for 10 months after an inspection revealed dangerous structural problems. Local now has to travel an extra 400 miles for each of the scheduled deliveries. Local asked Supply Co. for an additional 60 per trip above the contract price and Supply Co. agreed. Under common law, is this an enforceable contract? 1. No, Local has a pre-existing duty under the contract to make the deliveries 2. Yes, the request is made in good faith for an unforeseen difficulty 3. No, Supply Co. will receive no new benefit. 4. No, Local will incur no new duty
2
Mike, a minor, sold his trail bike to Allen, an adult. Assume that Allen sold the bike to Ben Buyer, who paid cash and had no knowledge that Allen had purchased the bike from a minor. What kind of title does Ben have to the bike? 1. Voidable title if Allen exercises his right to avoid the contract with Mike. 2. Good title 3. Voidable title if Mike exercises his right to avoid the contract with Allen 4. Void title
2
Before a binding vote is held in which workers choose to unionize or not unionize, enough workers must sign authorization cards indicating that they are interested in joining the inion. What is the percentage of the work unit who must sign these cards? - ten - thirty - fifty - eighty
30
Assume that Big Drug Company BDC was one of ten drug manufactures who produced and sold in the Cleveland area a drug that was found to cause cancer in women whose mothers had taken the drug while pregnant. Plaintiff cannot find out if the pills her mother took were actually manufactured by BDC, but she does know that BDC controlled 40 percent of the market for that drug in the Cleveland area when her mother was taking it. If a jury finds that plaintiff suffered 100,000 in damages, she will be able to collect 40,000 from BDC if her state follows the doctrine of ________________. (select all the answer options that are correct) 1. Res ipsa loquitur 2.Negligence per se 3.Joint Industry Liability 4.Market share liability
4
The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is 1.Contributory negligence 2.Malpractice 3.Negligence per se 4.Res ipsa loquitur
4
The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is___________. 1.Negligence per se 2.Res ipsa loquitur. 3.Joint and several liability 4.Respondeat superior
4
An employee must be at least ___ years of age to be protected from discrimination under the Age Discrimination in Employment Act 40 62 65 70
40
The Age Discrimination in Employment Act protects employees who are at least ___ years of age from employment discrimination 40 60 65 70
40
Res judicata is best defined as
A controversy that has been litigated and forever settled between the parties
Pat hired Mike to manage his deli, but the agency agreement did not state how much Mike is to be paid. In this situation A. Mike is a gratuitous agent until a salary is negotiated. B. The agreement is voidable by Pat. C. The agreement is voidable by Mike. D. A court will read in a reasonable salary based on comparable positions in the business community.
A court will read in a reasonable salary based on comparable positions in the business community
If an agency agreement does not state how much an agent is to be paid, what happens? - the agency agreement is void - the agency agreement is voidable by the agent, but not by the principal - the agent is assumed to be a gratuitous agent - a court will read in a reasonable amount based on the customary rate in the business community
A court will read in reasonable amount based on the customary rate in the business community
The product defect in a strict liability suit can consist in: (select all the answer options that are correct) Group of answer choices A defective design of the product The use of components imported from a foreign country instead of components manufactured in the United States A lack of adequate instructions for using the product A lack of adequate liabiity insurance
A defective design of the product The use of components imported from a foreign country instead of components manufactured in the United States A lack of adequate instructions for using the product
Apparent authority can only be created by the actions of which of the following - the agent himself - a disclosed principal - a disclosed agent - an undisclosed principal
A disclosed principal
Damages need not be proved in a defamation suit if the defamatory statement claims that: A doctor is unfit to practice medicine A person has a loathsome disease A person holds political views that he in fact does not A person is mean to his neighbors
A doctor is unfit to practice medicine. A person has a loathsome disease.
The Principal and Agent have ___ relationship with each other - an arms length - a statutory - a fiduciary - an equitable
A fiduciary
When a servant completely abandons the master's work to pursue his own interests, the servant is on ___ - a detour - an outing - a trespass - a frolic
A frolic
Consideration in a bilateral contract always involves both? A legal benefit and a legal detriment A legal detriment and a legal impediment A legal waiver and a legal renunciation A legal benefit and a legal waiver
A legal benefit and a legal detriment
Which of the following is NOT an example of a trade secret - a business's marketing plans for the next five years - a list of customers that was published in an ad in a trade journal - the formula for a compound used in a manufacturing process - the responses of a focus group to a company's product that have been gathered and analyzed
A list of customers that was punished in an ad in a trade journal
All of the following are considered advantages to a Limited Liability Partnership, except: A. A limited liability partner is always insulated from personal liability of he or she commits malpractice. B. A limited liability partner can avoid personal liability for partnership debts. C. The limited liability partnership can function much like a general partnership, without the same risks of personal liability as a general partnership. D. Partnership proceeds may "pass through" the partnership for income tax purposes.
A. A limited liability partner is always insulated from personal liability of he or she commits malpractice.
Which of the following statements about promoters is true? A. A promoter is allowed to sell property he owns to the corporation if the sale is approved by the board of directors after full disclosure. B. A promoter is allowed to accept a commission from a third party whose property he sells to the corporation. C. A promoter cannot be held liable on pre-incorporation contracts with third parties. D. A Promoter is an agent of the corporation even before the corporation comes into existence.
A. A promoter is allowed to sell property he owns to the corporation if the sale is approved by the board of directors after full disclosure.
Subchapter S corporation will avoid double taxation if which of the following applies? A. All the shareholders agree to be taxed as in a partnership B. The corporation files Articles of Partnership in the state where it has its principal place of business C. The corporation has no retained earnings D. All of the above
A. All of the shareholders agree to be taxed as in a partnership
A(n) ___ is a legal proceeding accompanying an action in court by which a plaintiff may acquire a lien on a defendant's property as a security for the payment of any judgement that the plaintiff may recover A. Attachment. B. Sheriff's sale. C. Meeting of creditors. D. Discharge in bankruptcy.
A. Attachment
Under the "pass through" principle, a business entity ... A. Avoids double taxation B. Assigns assets of the business to a receiver. C. Delegates duties of the business to a subcontractor D. Conducts high risk activities through a subsidiary.
A. Avoids double taxation
A shareholder who dissents from a merger is entitled to ... A. Be paid the fair value of her stock B. Revoke her dissent within 10 days of the stock appraisal C. Sue the board of the surviving corporation in a derivative suit. D. All of the above are shareholder rights.
A. Be paid the fair value of her stock
State statutes that govern the sale of investment securities within the state are known as ___ laws A. Blue Sky B. Red Herring C. Asset Protection D. Investment Trust
A. Blue sky
The rules that govern the corporation, including the number of directors it will have, the method of electing directors, the time and place of shareholder meetings, etc., are found in the corporation's ___ A. By laws B. Articles of incorporation C. Charter D. State incorporation code
A. By laws
The court order directing that the share of profits due a partner be given to his or her creditor to satisfy a judgement is a ___ order A. Charging B. Marshaling C. Accounting D. Collection
A. Charging
A surety owns a ___ to the principal for any profits obtained after the surety performs A. Duty to Account B. Debt C. Thank you note D. ice cream
A. Duty to Account
A "certificate of limited partnership" is a document that is A. Filed with the state Secretary of State by the limited partnership as part of its application process. B. Issued by the IRS to acknowledge a limited partnership's tax status. C. Issued by the limited partners jointly to the general partner. D. Issued by the general partner to the limited partners.
A. Filed with the state Secretary of State by the limited partnership as part of its application process.
Which of the following usually provides an investor the least protection from personal liability for the debts of the business? A. General Partnership B. Limited Partnership C. LLC D. Corporation
A. General partnership
The merger of two businesses in the same field that reduces the number of competitors is a ___ merger A. Horizontal B. Vertical
A. Horizontal
Three major U.S. banks have launched a service to process online electronic payments, creating in the process a major competitor of PayPal's. If the banks were to buy out PayPal in the future, this would constitute a ___ merger A. Horizontal B. Vertical C. Market product extension D. Conglomerate
A. Horizontal
Which business entity has the following characteristics: an informal association of two or more persons that is formed to accomplish a single business transaction? A. Joint venture B. Limited partnership C. Professional association D. General partnership
A. Joint venture
Which of the following statements about the limited partner in a limited partnership is false? A. Limited partners may participate fully in the management of the partnership. B. There must be at least one limited partner. C. Limited partners must approve any changes to the partnership agreement. D. Limited partnerships that invest in real estate are typically good tax shelters for the limited partners.
A. Limited partners may participate fully in the management of the partnership
An LLC that is managed by one or more of the owners is a ____________________LLC. A. Member-managed B. Manager-managed C. Proprietary D. Subchapter S
A. Member managed
Which of the following is not an advantage of a general partnership? A. Partners have limited liability for the debts of the partnership B. The costs to form a partnership are minimal. C. All partners have equal management rights. D. All of the above are advantages of a general partnership.
A. Partners have limited liability for the debts of the partnership
All of the following could be accurate statements about a general partnership, except: A. Partnership liabilities in a general partnership are limited to the amount of capital contribution. B. Partners can share in management of the partnership. C. Partners can share partnership profits. D. The general partnership allows for quick, easy and immediate control.
A. Partnership liabilities in a general partnership are limited to the amount of capital contribution.
When a corporation dissolves, holders of ___ stock have priority in the distribution of corporation assets A. Preferred B. Common C. Treasury D. Participating
A. Preferred
Why are corporations said to have a burden of "double tax"? A. Profits are taxed at the corporate level as income and again at the shareholder level as dividends B. Corporations are taxed at both the state and federal level. C. Corporations must file federal tax returns twice a year because their taxing period runs for only six months D. Corporations compute their federal tax liability by multiplying their state tax liability by two.
A. Profits are taxed at the corporate level as income and again at the shareholder level as dividends
What happens when a court pierces the corporate veil? A. Shareholders become personally liable for the debts of the corporation. B. The court revokes the corporate charter. C. The promoter becomes liable for the debts of the newly formed corporation D. The court requires that the corporation be more substantially capitalized.
A. Shareholders become personally liable for the debts of the corporation
Which of the following statements about the rights and duties of shareholders is false? A. Shareholders have virtually unrestricted access to corporate books and records B. Majority shareholders may have fiduciary duties to minority shareholders in closely held corporations. C. Shareholders must approve changes to the corporate charter. D. Shareholders are entitled to notice of the annual meeting and all special meetings.
A. Shareholders have virtually unrestricted access to corporate books and records
A partner who does not participate in the management of the partnership is a ___ partner A. Silent B. Dormant C. Secret D. Senior
A. Silent
The certificate issued by a corporation that gives the owner the right to buy a stated number of shares at a stated price is a ___ A. Stock warrant B. Charter C. Stock certificate D. Proxy statement
A. Stock warrant
A ___ provides security for a creditor without involving an interest in the property, where the security for the creditor is provided by a third person's promise to be responsible for the debtor's obligation a. Suretyship. b. Artisan's lien
A. Suretyship
In a successful derivative suit, any money awarded in the judgement will go to ... A. The corporation B. The plaintiff shareholder C. The plaintiff shareholder and the corporation will share the money equally. D. There can be no award of money because only equitable remedies are available in derivative suits.
A. The corporation
Which of the following are not grounds for a state canceling a corporation's charter? A. The corporation has not made a profit in 3 years. B. The corporation did not pay its franchise tax C. The corporation failed to maintain a registered agent in the state. D. The corporation has not performed any corporate functions for a long time.
A. The corporation has not made a profit in 3 years
A document that an LLC must submit to the secretary of state's office prior to doing business is ______. A. The Operating Agreement. B. A Partnership Agreement. C. The Articles of Organization. D. A Security Interest Filing.
A. The operating agreement
Which of the following statements about treasury stock is false? A. Treasury stock can be resold only at par value. B. It is stock that the corporation acquired by gift or by purchasing from shareholders. C. Most states require that corporations purchase treasury shares only with accumulated profits or surpluses. D. Creditors of the corporation or the state itself may block the purchase of treasury stock.
A. Treasury stock can be resold only at par value
The Articles of Incorporation for ABC Corporation specifically forbids the corporation from making personal loans to its officers or directors. Despite this, the board approved a personal loan to the President of the corporation. This action by the board is ___ A. Ultra vires B. Peremptory C. A Malum in se D. A Malum prohibitum
A. Ultra Vires
A(n) _______ is a legal proceeding accompanying an action in court by which a plaintiff may acquire a lien on a defendant's property as a security for the payment of any judgment that the plaintiff may recover. A. Attachment. B. Sheriff's sale. C. Meeting of creditors. D. Discharge in bankruptcy.
A. attachment
Jason has filed suit against Luke claiming $50,000 in damages. While the claim is being litigated, Jason can ask the court for a writ to seize property belonging to Luke which could be used to satisfy a judgment. The seizure prevents Luke from selling or otherwise disposing of the property during the proceedings. The writ Jason will ask for is a writ of________________. A. Attachment B. Attainder C. Execution wrong D. Garnishment wrong
A. attachment
A surety owes a _______ to the principal for any profits obtained after the surety performs. A. Duty to account. B. Debt. C. Duty to discharge. D. Percentage interest.
A. duty to account
A surety has no obligation to the creditor unless the principal _______. A. Fails to perform. B. Fulfills his or her contractual obligations. C. Voids the contract. D. Assigns the contract.
A. fails to perform
An LLC in which non-owners are hired to run the day to day activities of the firm is a ______LLC. A. Member-managed B. Manager-managed C. Proprietary D. Subchapter S
A. member managed
A _______ provides protection against losses that may result from the failure of a contracting party to perform the contract as agreed. A. Performance bond. B. Foreclosure sale. C. Finance agreement. D. Payment schedule.
A. performance bond
Trial witnesses cannot be sued for defamation because the testimony of witnesses in trial is protected by? Immunity Qualified privilege Judicial exception Absolute privilege
Absolute privilege
Under the BAPCPA, Congress instituted a mechanism to reduce the ___ of Chapter 7 bankruptcy filings Legality. Accessibility. Abuse. Cost.
Abuse
The Fair Debt Collection Practices Act prohibits debt collectors from participating in _______ a. all debt collection activities b. Abusive and deceptive behaviors c. Collection of small or insignificant debts. d.Judicial debt collection procedures.
Abusive and deceptive behaviors
The purposes of nominal damages is to? Determine beforehand the damages to be paid if there is a breach of the contract, Punish and make an example of the breaching party. Acknowledge that a right has been violated even though no monetary loss. resulted Compensate the non-breaching party for the loss of the benefit of the bargain.
Acknowledge that a right has been violated even though no monetary loss resulted.
Juries use the "but for" test (i.e. "but for the negligent act of the defendant would the plaintiff have been injured") to decide if the requirement of __________________is met. Probable cause Proximate cause Actual cause Reasonable cause
Actual Cause
Alan is the general manager of a restaurant. Although not mentioned in his employment contract, as part of carrying out his management duties he has the authority to buy supplies, hire employees, put ads on the radio, engage a cleaning service, pay bills, etc. These duties are expressions of his ___ authority A. Actual express, B. Actual implied, C. Actual apparent, D. Constructive implied
Actual implied
Which of the following unsecured creditors has first priority when the assets are distributed in a Chapter 7 bankruptcy? Administrative expenses Wages, salaries and commissions Wrongful death or personal injury awards against the debtor for accidents caused by the debtor's wrongful use of alcohol or drugs. Alimony, child support and other domestic support claims.
Alimony, child support and other domestic support claims
How could a private employer institute a voluntary minority racial preference plan without violating Title VII? - If it is for a limited time - If it opens employment opportunities to racial minorities in jobs from which they were traditionally excluded - If it does not eliminate or unnecessarily restrict the hiring of white candidates - All of the above
All of the above
John, who is employed by a private business, was injured on the job. How will OSHA learn of the job safety violation that caused his injury? - John may report his injury directly to OSHA. - John's employer must report his injury to OSHA. - OSHA may conduct an inspection of John's worksite. - All of the above
All of the above
Rhonda Realtor was hired to find Client an undeveloped lot that met the following requirements: the lot must be in the mountains, on a pristine lake, consist of at least 10 acres, and be available for no more than $500,000. Rhonda found a property that met all these requirements for only $425,000. Enchanted, she bought the property for herself. She did not tell Client about her find and is still diligently seeking another property that meets Client's needs. Which, if any, agency duties has Rhonda violated? - Duty of loyalty - Duty to inform - Duty to obey instructions - all of the above
All of the above
To be eligible for Chapter 13, an individual must ... Have a regular income Have unsecured debts of $336,900 or less Complete the mandatory consumer creditor counseling class all of the above
All of the above
What happens if an agent acts outside the scope of his or her authority when negotiating a contract? a. The agent loses the right to reimbursement b. The agent loses the right to indemnification c. The agent becomes personally liable on the contract to the third party d. All of the above
All of the above
What must a worker do to be eligible for unemployment compensation? - She must have been employed for a specified period of time. - She must be actively looking for another job - She must not have been fired for egregious behavior in the workplace - All of the above
All of the above
Which of the following is not an element of ratification? The principal was fully disclosed at the time the contract was formed. The principal is aware of all of the terms of the agreement The third party has not withdrawn from the contract All of the above are requirements for ratification
All of the above
Which of the following statements about unemployment compensation is true? - An employee must have worked for a minimum amount of time to qualify. - Employees who quit without good cause are ineligible for benefits. - Employees who were fired for cause are ineligible for benefits. - All of the above
All of the above
Which of the following would constitute a "taking" of personal property by the government? A forced sale of land to construct a highway The rezoning of an area so that formerly permitted uses of the property are lost. The fire department burning down a warehouse to create a firebreak to keep a blaze from spreading. All of the above are "takings"
All of the above are "takings"
An important step in the application of the legal reasoning process is ____. Identifying the general area of the law Determining the relevant facts Deciding the specific legal rules applicable to the facts All of the above are important steps in the legal reasoning process
All of the above are important steps in the legal reasoning process
Which of the following statements about white collar crime is true? Businesses are hesitant to prosecute criminal employees because it is bad for the image of the business. Judges don't often impose jail time because the crimes are non-violent. Businesses often think of the losses as a cost of doing business. All of the above are true statements.
All of the above are true statements.
Courts may use which of the following to interpret the meaning and purpose of a piece of federal legislation? Rules of statutory interpretation Minutes of committee hearings The entire legislative history of the act All of the above may be used by the courts.
All of the above may be used by the courts.
Another term for ostensible authority is _______________ authority. a. Apparent b. Incidental c. Express d. Constructive
Apparent
The party who lost at trial and files an appeal is called the ____________.
Appellant
Ethical standards are often the basis for statutes and judicial decisions ____ .
As a reflection of society's views of right and wrong
The filing of the petition by a debtor triggers an ________, which has the effect of suspending almost all actions by creditors against the debtor. a. Voluntary dismissal. b. Automatic stay. c. Express written waiver. d. Notice of default.
Automatic stay
The legal status of a contract entered into by a minor is ___________. Avoidable by either the minor or the other party to the contract Avoidable only by the minor Void Valid
Avoidable only by the minor.
Smith's Inc. is a closely held corporation in which Joe Smith is the President and owns 80% of the corporation's stock. The corporation was undercapitalized when it was formed, and for the past seven years Joe has regularly taken funds from the corporate account to pay his own personal expenses and debts. Should Smith's Inc. not have sufficient funds to pay a creditor, the creditor may hold Joe personally liable for the corporation's debt under the ___ theory A. Ultra vires B. Alter ego C. Oppressive conduct D. Investment trust
B. Alter ego
In a manager-managed LLC ___________. A. No one member of the LLC has authority to make business decisions on behalf of the LLC.?? B. An individual or small group has the authority to control and make decisions for the LLC. C. All members of the LLC participate equally in business decisions. D. The authority of the members of the LLC to make decisions is directly proportionate to the amount their capital contribution.
B. An individual or small group has the authority to control and make decisions for the LLC.
The purpose of a buy and sell agreement is to ... A. Create a trading partnership B. Arrange for the evaluation of the business and the method for financing the purchase of a withdrawing or deceased partner's interest. C. Determine the compensation for partners who manage the business. D. Set guide lines for selling the goodwill of the business.
B. Arrange for the evaluation of the business and the method for financing the purchase of a withdrawing or deceased partner's interest
If a plaintiff shareholder cannot show that a director's decision was made in violation of his duties of loyalty or care, the court will allow the decision to stand under the ___ rule A. Entire fairness B. Business judgement C. Corporate governance 0% D. Unocal
B. Business judgement
The party who loses at trial and brings an appeal is called the appellee. A. True B. False
B. False
Which of the following is not required for a foreign corporation to get a certificate of authority to do business? A. File a copy of its Articles of Incorporation with the secretary of state. B. File a copy of its bylaws with the secretary of state. C. Have a registered agent and registered office for service of process D. All of the above are required.
B. File a copy of its bylaws with the secretary of state
___ is a proceeding by which a plaintiff seeks to reach the assets of the defendant that are in the hands of a third party A. Writ of Execution B. Garnishment C. Notice of lien D. Co surety
B. Garnishment
Which business entity is defined as "an association of two or more owners who carry on as co-owners a business for profit?" A. Proprietorship B. General partnership C. Subchapter S corporation D. Limited Liability
B. General partnership
The usual procedure for a party seeking to perfect a mechanic's lien to file or record a ___ in the office of the county in which deeds to real estate are recorded A. Co-surety B. Notice of lien C. Mechanic's lien D. Writ of Execution
B. Notice of lien
The merger that creates the greatest number of antitrust issues is a ___ merger A. Conglomerate B. Horizontal C. Market extension D. Vertical
B. Horizontal
States give corporations many rights, among them is the right to sue and the right to own property in the corporation's name. What do such legal rights collectively constitute for a corporation? A. Goodwill B. Legal capacity C. Business identity D. Competitive advantage
B. Legal capacity
Partnership agreements often fund the purchase of a deceased partners' partnership interests with... A. Distributions of retained earnings B. Life insurance policies C. Levies on partnership interests D. Partner advances
B. Life insurance policies
All of the following could be recognized as advantages of doing business as a limited partnership, except: A. A limited partnership allows limit partners to be liable only to the extent of their capital contribution. B. Limited partners can actively share in management of the partnership, without incurring the risks of business liabilities. C. Limited partners can invest in a partnership while effectively protecting their personal assets. D. A Limited Partnership is often a convenient and attractive option to investors.
B. Limited partners can actively share in management of the partnership, without incurring the risks of business liabilities.
All of the following are considered advantages of doing business as an LLC, except: A. The LLC insulates its members from personal liabilities for the debts of the business. B. Members of the LLC may lawfully avoid filing personal tax returns with the IRS. C. The LLC can function much like a general partnership, while avoiding many of the risks of a general partnership. D. The LLC can provide its members voting rights that are proportionate to the members' capital contributions.
B. Members of the LLC may lawfully avoid filing personal tax returns with the IRS.
Allfam is a closely held family corporation, many of whose shareholders are employees of the corporation. In an attempt to reduce its taxes, Allfam paid its shareholder-employees enormous salaries and deducted the salaries as a corporate expense. Is Allfam permitted to do this? A. Yes, this is a legitimate way for closely held corporations to reduce their taxes. B. No, the IRS will disallow the deductions for unreasonably high salaries and tax them as dividends. C. No, the shareholder-employees will have do return the excess portion of their salaries to the corporation. D. No, the IRS will disallow the deductions for this year, but will allow the corporation to treat them as carry-forward losses for next year.
B. No, the IRS will disallow the deductions for unreasonably high salaries and tax them as dividends.
Which of the following statements about the taxation of corporations is false? A. Premiums paid for employee health insurance plans are fully deductible. B. Profits retained by the corporation are normally taxable to the shareholders under the corporate pass through rule. C. Salaries paid to employees are deductible expenses for the corporation. D. Most states impose license fees or franchise taxes on corporations doing business in the state.
B. Profits retained by the corporation are normally taxable to the shareholders under the corporate pass through rule
States have the power to cancel or revoke the charters of corporations that engage in illegal activities. These forfeiture hearings are called ___ proceedings A. Divestiture B. Quo warranto C. Ultra vires D. Appraisal
B. Quo warranto
What is the purpose of the pre-trial conference in a civil case?
B. Settle a case without having to go to trial
ABC Corporation has been dissolved. After paying all its creditors, ABC will make a cash distribution to its shareholders. Of the following, which shareholders will have priority in the distribution? A. Shareholders who own un-exercised warrants. B. Shareholders who own preferred stock C. Owners of common stock who had title to the shares 180 days before the last ex-dividend date. D. All current owners of common stock.
B. Shareholders who own preferred stock
A ________ is a party who limits his or her promise to a single transaction or to a single creditor. A. General guarantor. B. Special guarantor. C. Creditor. D. Obligee.
B. Special guarantor
Instead of giving shareholders a cash dividend, ABC Corporation gave each shareholder 2 shares of a new stock issue for each share of stock the shareholder already owned. This is an example of a ___ A. Super Delegate Dividend B. Stock Dividend C. Stock Split D. Stock Subscription
B. Stock Dividend
A partnership need not give public notice of its dissolution if the dissolution was caused by ... A. The death of a partner B. The bankruptcy of a partner C. The wrongful withdrawal of a partner D. The expiration of the partnership's term of years.
B. The bankruptcy of a partner
A _________ is the voluntary relinquishment of the right to a mechanic's lien before a notice of lien is filed. A. Satisfaction and accord. B. Waiver. C. Collection proceeding. D. Confessed judgment.
B. waiver
The ___ consists of all legal or equitable interests of the debtor in property Account receivable. Court registry. Bankruptcy estate. General ledge
Bankruptcy estate
The Fair Packaging and Labeling Act mandates that ___ be included in the labeling and packaging of most products Nutritional information. Basic information. Chemical composition. Cost of production.
Basic Information
To be subject to the Age Discrimination in Employment Act, what must an employer do? - Be engaged in interstate commerce and have at least twenty employees. - Be engaged in interstate commerce and have at least forty employees - Be engaged in either intrastate or interstate commerce and have at least forty employees - Be organized as a corporation or limited liability company and have at least forty employees
Be engaged in interstate commerce and have at least 20 employees
Stock that a corporation buys back from its shareholders is treasury. Most state corporation statutes require that the money to repurchase shares come from ... A. A new issue of preferred shares B. A special stock subscription C. Accumulated profits or surplus D. A new issue of debt instruments
C. Accumulated profits or surplus
Carla was the agent for Newco, a New York company that wanted to relocate its corporate offices to New Jersey. Carla was given the authority to purchase 600 acres of New Jersey farmland, but was not allowed to tell the sellers that she represented Newco. She was only allowed to say that she represented an out-of-state corporation. After the contracts were signed, Newco's board decided not to relocate and wants to rescind the contracts. Which of the following statements is true about the liability of the parties? A. Carla has no personal liability on the contracts because she was acting within the scope of her authority., B. Carla is personally liable on the contracts, but Newco must indemnify her because she was acting within the scope of her authority., C. Newco is liable to the sellers on these contracts because Carla was acting within the scope of her employment., D. Both b and c are true.
Both B and C are true
An employee who commits a tort while acting in the scope of his or her employment .. A. Has no liability to the injured third party because of the doctrine of respondeat superior B. Is entitled to be indemnified by the principal if the tort was committed by following the principal's instructions C. Has joint and several liability with the principal to the injured party D. Both b and c
Both B and C:
Cashing a check marked "paid in full" will create an accord and satisfaction only if: (select all answer options that are correct) Both parties know that the amount of the debt is in dispute. The debt is unliquidated The debt has been sold to collection agencies The original contract is in writing
Both parties know that the amount of the debt is in dispute. The debt is unliquidated.
In the appeals process, the document submitted by each side arguing the points of law that support its claim that the verdict should or should not be overturned is an _____________________.
Brief
Traditionally landowners owe the highest duty of care to? Trespassers Business invitees Invited guests Family members
Business invitees
The legal principle that assumes that directors act with due care and in the good faith belief that their actions are in the best interests of the corporation is the ___ rule
Business judgement
Which of the following is true about goods sold under a sale or return contract? Seller has the risk of loss during the return shipment of the goods. Seller has the risk of loss until the goods are sold by the buyer. Buyer's creditors have a claim to the goods while they in Buyer's possession The goods must be used as consumer goods.
Buyer's creditors have a claim to the goods while they in Buyer's possession
Ben is suing Chad in a tort action for property damages and personal injuries he sustained when Chad negligently ran a red light and crashed into him in a busy intersection. Ben must convince the jury that the light was red and that his injuries were caused by the crash. How convinced must the jurors be that Chad is at fault in order to find him liable?
By a preponderance of the evidence
Delores is suing the CEO of a corporation in a civil suit for securities fraud, which she claims he committed in the initial public offering of his company's stock. What is the burden of proof Delores must meet to prove securities fraud?
By clear and convincing evidence
Phil has a partnership interest in Best Bike. He has been denied access to the books and records and he suspects that one of the partners is engaging in secret business transactions using partnership funds. Phil wants to know the status of the business. Phil should request an ___ A. Charging order B. Marshalling order C. Accounting D. Decree of insolvency
C. Accounting
John was a limited partner in Commercial Properties Limited. When the general partner became ill, John took over all the management duties of Commercial Properties. Ace Office Equipment, a supplier of Commercial Properties, is suing Commercial Properties over several months of unpaid bills. Under modern laws governing the operation of limited partnerships, which of the following statements best describes John's personal liability for Commercial's debt to Ace Office Equipment? A. Ace can hold John personally liable for Commercial's debt because he is a limited partner in the business. B. Ace can hold John personally liable for Commercial's debt because he assumed management of Commercial. C. Ace can hold John personally liable for Commercial's debt only if Ace knew that John had taken over the management duties. D. Under no circumstances can John be liable beyond his capital contribution.
C. Ace can hold John personally liable for Commercial's debt only if Ace knew that John had taken over the management duties
In a _______, a creditor must have made reasonable but unsuccessful attempts to collect from the principal before the guarantor can be held liable. A. Absolute guaranty. B. Unconditional guaranty. C. Conditional guaranty. D. Satisfaction guaranty.
C. Conditional guaranty
A surety is liable to the creditor as soon as the principal ___ a. Enters into the contract. b. Makes an initial payment. c. Defaults. d. Files for bankruptcy.
C. Defaults
Frank is a seller of imported pottery. To induce a new wholesaler to sell him goods on credit, Frank and his brother Ed told the wholesaler that Ed was a partner in the business. In fact, Ed had no partnership interest and Frank was a sole ___ A. The complicity theory B. Vicarious liability C. Estoppel D. Respondeat superior
C. Estoppel
Frank is in the business of selling imported pottery. To induce a new wholesaler to sell him goods on credit, Frank and his brother Ed told the wholesaler that Ed was a partner in the business. In fact, Ed had no partnership interest and Frank was a sole proprietor. Ed now has liability to the wholesaler based on ___ A. The complicity theory B. Vicarious liability C. Estoppel D. Respondeat superior
C. Estoppel
Pearl sued Sam and was awarded a judgment against him for $50,000. Sam has a savings account with First Bank that can be seized in partial satisfaction of the judgment. The writ the court will use ordering First Bank to turn over to it the funds in Sam's account is a writ of____________. A. Attainder B. Attachment C. Garnishment D. Execution
C. Garnishment
In which of the following business forms are profits taxed at both the entity level and the owner level? A. LLC B. Limited Partnership C. General corporation D. LLP
C. General corporation
If a partnership agreement does not say how losses will be shared, they will be shared ... A. Equally among the partners B. Proportionately according to the capital contribution of each partner C. In whatever way the profits are shared. D. Equally among those partners who have not made loans to the partnership
C. In whatever way the profits are shared
Jim and Fred had been equal partners in J and F industries for 20 years. Jim has died and Fred is now in the process of winding up the partnership. Which of the following statements about the winding up process is false? A. Fred is entitled to compensation for winding up the business. B. Jim's estate is entitled to an accounting C. Jim's estate is entitled to participate in the winding up process. D. If there are not enough assets in the partnership to pay off all the debts, Jim's estate will be liable for one half of the losses.
C. Jim's estate is entitled to participate in the winding up process
In an action alleging securities fraud, the burden of proof on the plaintiff is
Clear and convincing evidence
Which of the following abbreviations would NOT be used by a professional corporation as a required part of its name? A. S.C. B. PC C. LLC D. Inc.
C. LLC
Which business entity has the following characteristics: owners are normally professionals engaged in selling their services; owners have both limited liability for the debts of the entity and limited liability for the contracts and torts of the other owner-professionals; the entity is organized under state law; profits are taxed only at the owner level? A. General partnership B. Limited partnership C. Limited Liability Partnership D. Limited liability company
C. Limited Liability Partnership
Megan has joined Alliance Partners, making a 50,000 capital contribution. Alliance has been in business for 10 years and Megan is worried about her liability for pre-existing debts. Which statement best describes her liability for the debts Alliance had when she joined the partnership? A. Megan has unlimited personal liability and her entire capital contribution may be used to satisfy the debts. B. Megan has unlimited personal liability, but her capital contribution cannot be used because it is new money. C. Megan has no personal liability for the debts, but her entire capital contribution may be used to satisfy them. D. Megan has no personal liability for the debts and her capital contribution cannot be used to satisfy old debts.
C. Megan has no personal liability for the debts, but her entire capital contribution may be used to satisfy them
Which of the following statements about the operation of a member-managed LLC is false? A. Articles of organization must be filed with the state as part of the application process. B. The application must state that it is to be a member-managed LLC. C. Only the managing members have access to the books and records of the LLC D. Any member of the LLC may bind the LLC on a contract.
C. Only the managing members have access to the books and records of the LLC
The prerogative of existing shareholders to buy new issues of stock in the same proportion as their current holdings is their ___ right A. Criminal B. Ultra vires C. Preemptive D. Peremptory
C. Preemptive
Bob, Sue and Jim were classmates in medical school who formed a professional corporation to practice medicine. Which of the following statements about their professional corporation is false? A. Their practice will have to include some designation of its status, such as "S.C." or "P.C." in its name. B. They will be eligible for a tax-advantaged pension plan. C. They will be protected from suits for medical malpractice D. Bob, Sue and Jim may have special legal protections against discrimination as shareholder-employees of the professional corporation.
C. They will be protected from suits for medical malpractice
Bob and Sue, who are both attorneys, agreed to share office space and other overhead expenses in order to save money. They did not agree to form a partnership. They do not share profits or losses and neither has a say in the management of the other's business. The sign outside their door, and on their common letterhead, reads: "Bob Smith and Sue Jones, Attorneys at Law." Using this stationary, Bob purchased office equipment from Smart Buy. Sue at no time used the equipment and did not enter into the contract with Smart Buy. Bob did not pay for the equipment and Smart Buy wants to hold Sue liable. Is Sue liable as a partner for this purchase? A. Yes, allowing her name to be used with Bob's in the same letterhead created an express partnership. B. Yes, allowing her name to be used with Bob's in the same letterhead created an implied partnership C. Yes, allowing her name to be used with Bob's in the same letterhead created a partnership by estoppel D. No, there was no sharing of profits or losses or management rights so there was no partnership.
C. Yes, allowing her name to be used with Bob's in the same letterhead created a partnership by estoppel
Paul sued Dan and won a $90,000 judgment against him. Paul has identified property belonging to Dan that would be used to satisfy the judgment. The order the court will give to the sheriff instructing him or her to seize and sell Dan's property is a writ of ________________. A. Attachment B. Garnishment C. Execution D. Expropriation
C. execution
A surety is liable to the creditor as soon as the principal ________. A. Enters into the contract. B. Makes an initial payment. C. Files for bankruptcy D. Defaults
C. files for bankruptcy
Mary is an Assistant District Attorney prosecuting a 26 year old defendant on drug charges. She learns that one of the perspective jurors is a friend and neighbor of the defendant's family. She will use a (n)_____________________strike to eliminate this potential juror.
C. for cause
Any third party who promises a creditor to be liable for a principal's payment is either a surety or _________. A. Obligee. B. Guarantor. C. Principal Debtor D. Obligor.
C. principal debtor
Megan agreed to act as a surety on a personal loan First Bank made to Arthur. When Arthur defaulted on the loan, Megan paid off the loan obligation. Megan now has the right of ________ against Arthur. A. Contribution B. Indemnification" C. Reimbursement D. Subrogation
C. reimbursement
A ________ promises to be liable to the creditor only in the event that the surety refuses to perform and thereby defaults. A. Debtor. B. Co-surety. C. Subsurety. D. Obligee.
C. subsurety
All property other than land is classified as: (select all the answer options that are correct) Res ownership Res personam Chattel General intangibles
Chattel
The legal classification for all property that is not real property is ________________. General intangibles Res in se Contraband Chattel
Chattel
A creditor's right to payment in a bankruptcy case is a ___ Discharge Claim Debt Security interest
Claim
A power unique to the President is to serve as ________________.
Commander-in-Chief
Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. There was a time is of the essence clause in Bill's contract with Famous Restaurant. Bill was to lose 300day for each day after the contract date that he was late in finishing the renovation. The 300 day represented the profit Famous Restaurant would lose each day it was not in operation. Bill told Carl about this clause, impressing on Carl the need for him to deliver the carpet on time. Bill finished the renovation three days after the contract date. The delay was due solely to Carl's failure to deliver the carpet on time. Bill can recover the 900 he lost from Carl as ___________ damages. Liquidated Punitive Nominal Consequential
Consequential
Frank and Joe agree that they will break into and steal money and goods from Local Liquor Store on Sunday at 3:00 a.m. Frank buys some tools to force open the back door. Before they actually break into the store, however, the police catch them. Frank and Joe can be charged with which of the following crimes?
Conspiracy
An employee who quits a job because the employer created an intolerable work environment has a cause of action under Title VII for which of the following? - Disparate impact discrimination - Gross negligence - Constructive discharge - Invasion of privacy
Constructive discharge
In cases involving extensive injuries and a solvent or insured defendant, attorneys will be paid a percentage of the award if the case is successful. Fees structured this way are called _________fees. Shared Deferred Participatory Contingent
Contingent
Under which doctrine will a plaintiff who contributed to his or her own injuries recover nothing from a negligent defendant? Contributory negligence Modified comparative negligence None of the above: an injured plaintiff will recover some amount in any case in which defendant's negligence is proved. Pure comparative negligence
Contributory negligence
Which of the following are affirmative defense in a negligence suit? (select all the answer options that are correct) Contributory negligence Pure comparative negligence Modified comparative negligence Strict negligence
Contributory negligence Pure comparative negligence Modified comparative negligence
Tom took Ann's 125 Economics text from her locker without her knowledge and sold it back to the college bookstore, keeping the profits. Tom has committed the tort of..... Conversion Trespass to chattel Embezzlement Nuisance
Conversion
WireCo manufactures different types of electrical wires used in the building industry, and CopperCo has been one of its major suppliers for over ten years. If a court had to construe a contract between WireCo and CopperCo, it could use this ten year history of business transactions as evidence of? Course of performance Course of dealing Usage of trade Commercial reasonableness.
Course of dealing
Which of the following is not a category of private law?
Criminal law
The belief that the law reflects the biases of a ruling class is a foundation of the ____ school of legal thought.
Critical Legal Studies
Which of the following best describes the "double taxation" on corporate profits? A. The profits of a corporation are taxed at twice the rate of the highest individual tax rate. B. The income an individual gets from dividends is taxed at twice the rate of the income he gets from wages. C. The IRS is twice as likely to audit returns with dividend income as it is to audit returns with income from wages only. D. Corporations pay taxes on the profits they distribute to the shareholders as dividends, and shareholders pay taxes on the same dividends
D. Corporations pay taxes on the profits they distribute to the shareholders as dividends, and shareholders pay taxes on the same dividends as a personal income
Tom was the minority shareholder in a closely held corporation. Despite massive profits, no dividends were ever declared. The corporation did, however, pay extremely large salaries and bonuses to the officers of the corporation, who were also the majority shareholders. The majority shareholders of this corporation are guilty of ___ A. Ultra vires acts B. Quo warranto acts C. Oppressive conduct D. Embezzlement
D. Embezzlement
A person who becomes a partner by estoppel ... A. Has the right to share in the profits earned by the partnership B. Has the right to share in the day to day management of the partnership C. Has the right to veto any decision where unanimous consent is required D. Has no partnership rights, only liability to creditors who believed he was a partner.
D. Has no partnership rights, only liability to creditors who believed he was a partner
Which business entity has the following characteristics: owners are normally professionals engaged in selling their services; owners have both limited liability for the debts of the entity and limited liability for the contracts and torts of the other owner-professionals; the entity is organized under state law; profits are taxed only at the owner level? A. General partnership B. Limited partnership C. Limited Liability Partnership D. Limited Liability Company
D. Limited Liability Company
Which business entity has the following characteristics: owners are normally professionals in selling their services; owners have both limited liability for the debts of the entity and limited liability for the contracts and torts of the owner-professionals; the entity is organized under state law; profits are taxed only at the owner level? A. General partnership B. Limited partnership C. Limited Liability Company D. Limited Liability Partnership
D. Limited Liability Partnership
In which of the following business organizations does an owner risk losing his or her limited liability by actively and publicly managing the business? A. Limited liability corporation B. Limited Liability Partnership C. General corporation D. Limited partnership
D. Limited partnership
A lien for the value of material and labor expended in the construction of buildings and other improvements is a ___ A. General power lien B. Atsy lien C. UCC 9 lien D. Mechanic's lien
D. Mechanic's lien
Jim and Sid are partners in Widget Manufacturing. Jim read a letter from one of Widget's buyers asking for adequate assurances that Widget would be able to meet an upcoming contractual obligation. The demand was proper and, under Article 2, the buyer could treat the contract as breached if Widget did not respond to the demand within 3 months. Jim forgot to tell Sid about the demand and did not respond to it himself. Widget is now being sued by Buyer for 4,000 in damages for breach of contract. Sid contends that the partnership is not liable because only one partner was aware of the demand. Is Sid correct? A. Yes, as an equal owner of the business Sid was entitled to equal notice. B. No, Sid did not receive the notice because of his own negligence in attending to partnership correspondence. C. No, the partnership is liable under the doctrine of respondeat superior D. No, the partnership is liable because notice to one partner is legally notice to all the partners and the partnership.
D. No, the partnership is liable because notice to one partner is legally notice to all the partners and the partnership
A partnership whose primary purpose is to manufacture things or to provide services is a ___ partnership A. Professional B. Entrepreneurial C. Trading D. Non-trading
D. Non-trading
Suits by the state to determine if a corporate charter should be cancelled or forfeited are ___ proceedings A. Divestiture B. Appraisal C. Ultra vires D. Quo warranto
D. Quo warranto
Mike owned 10,000 shares in Texas Equipment that had a par value of 10. As part of a financial reorganization, Texas Equipment now records Mike as having 20,000 shares with a par value of 5. This is an example of a ___ A. Stock dividend B. Stock repurchase C. Ex dividend split D. Stock split
D. Stock Split
Which of the following would not be grounds for dissolving a corporation? A. A quo warranto proceeding B. The shareholders are deadlocked in electing a board of directors. C. Oppressive conduct by a controlling shareholder. D. The corporation has not made a profit or declared dividends in two years.
D. The corporation has not made profit or declared dividends in two years
Which of the following situations would justify piercing the corporate veil? A. The majority shareholder loans money to the corporation B. All the shares of a corporation are held by one person C. All the shares of a corporation are held by another corporation. D. The corporation was formed with the intent of defrauding another party or violating a statute.
D. The corporation was formed with the intent of defrauding another party or violating a statute
Which of the following is not normally included in the Partnership Agreement? A. The name of the partnership. B. The capital contribution of each partner. C. A buy and sell agreement D. The daily work schedule for each partner.
D. The daily work schedule for each partner
Which of the following best describes the role of a general partner in a limited partnership? A. The general partner usually has an insignificant role in the overall business decisions of the limited partnership. B. The general partner defers to the business decisions of the limited partners of the limited partnership, unless those decisions seem economically unreasonable. C. The general partner may participate in the business decisions of the limited partnership, but he or she will never be held personally liable for the debts of the business. D. The general partner manages the partnership and remains responsible for partnership liabilities.
D. The general partner manages the partnership and remains responsible for partnership liabilities.
A member of an LLC risk personal liability for participating in all of the following activities, except: A. In the name of the LLC, the member secretly loans money to a close friend. B. The member knowingly files a false tax return with the IRS. C. The member volunteers to assume personal responsibility for a loan payments made by the LLC. D. The member consistently votes against decisions that are ultimately approved by the majority of other members of the LLC.
D. The member consistently votes against decisions that are ultimately approved by the majority of other members of the LLC
All of the following are rights held by an individual member of an LLC, except: A. The right to request that the LLC be dissolved. B. Access to the LLC's books and records. C. The right to vote against an amendment to the LLC's operating agreement. D. The right to sell one's interest in the LLC without notifying or consulting the other members of the LLC.
D. The right to sell one's interest in the LLC without notifying or consulting the other members of the LLC.
A corporation ceases to exist as a legal entity when ... A. The directors vote unanimously to dissolve the corporation B. The shareholders vote unanimously to dissolve the corporation 0% C. The directors of the corporation notify corporation creditors of the dissolution. D. The state issues a certificate of dissolution
D. The state issues a certificate of dissolution
Which of the following statements about the rights and duties of doctors who practice medicine in a professional corporation is true? A. Doctors have no personal liability for medical malpractice suits. B. Because they are also owners of the corporation, doctors have no protection from discrimination based on age. C. The professional corporation can have no more than ten owner-employee doctors. D. They are eligible to participate in tax advantaged pension plans.
D. They are eligible to participate in tax advantaged pension plans
A surety will remain liable when the creditor-principal agreement is modified if the surety consents to the modification A. Before the modification takes place B. At the time the modification takes place C. After the modification takes place D. Any of the above
D. all of the above
Absent an agreement otherwise, the members of an LLC have a statutory right to A. approve a merger B. dissolve the LLC C. inspect the books and records of the LLC D. all of the above are statutory rights
D. all of the above
Which of the following parties could claim an artisan's lien? A. A common carrier of goods. B. A jeweler who repaired a watch C. The owner of a storage facility D. All of the above are eligible for an artisan's lien.
D. all of the above are eligible for an artisan's lien
A surety will remain liable when the creditor-principal agreement is modified if the surety consents to the modification A. Before the modification takes place B. At the time the modification takes place C. After the modification takes place D. Any of the above
D. any of the above
Jo and Anna, who are mother and daughter, are co-owners of Joanna's Frocks. When the bank loaned money to the business, Jo and Anna agreed to be sureties on the loan. Under the loan agreement, Anna will be liable only if Jo defaults on her obligation as a surety. Anna is a __________ on the loan. A. General guarantor B. Special guarantor C. Co-surety D. Sub-surety
D. subsurety
The earliest application of strict liability in American law was in cases involving which of the following? Tobacco products Medical services Dangerous animals Defective products
Dangerous animals
In a bankruptcy proceeding, the ___ is the individual, business organization, municipality or farmer that the bankruptcy proceeding involves Debtor Creditor Interested party Trustee
Debtor
The purpose of the Telemarketing and Consumer Fraud and Abuse Prevention Act is to prohibit ___ telemarketing practices a. Substantially all. b. Deceptive. c. Time-consuming. d. Aggravating or annoying.
Deceptive
A material misrepresentation or omission likely to mislead a potential customer and would mislead a reasonable consumer is ___ a. puffery b. usury c. fraud in the inducement d. deceptive advertising
Deceptive Advertising
The function of a petit jury is to
Decide whether a civil defendant is liable and whether a criminal defendant is guilty.
Dan Dentist was selling the building in which his office was located so that he could relocate to a larger space. Ron, a very aggressive commercial real estate broker, told Dan that unless he gave Ron an exclusive one year contract to list the property, he would spread word in the community that Dan was selling his building to pay a large malpractice claim and that Dan had been liable in so many malpractice suits that no company would insure him. Dan believed that Ron would carry out this threat and signed the contract. Dan can rescind the contract based on? Duress Undue influence Fraud Fiduciary malfeasance
Duress
The insanity defense that allows someone to avoid criminal liability if the criminal act was the "product of a mental disease or defect" is the _____________rule.
Durham
Cruel and unusual punishment and excessive bail is forbidden by the _________Amendment.
Eighth
To defeat the defense, in a disparate impact case, that the discriminatory practice is "job related and consistent with business necessity," the plaintiff must prove which of the following? - The employment practice is a pretext for discrimination. - Another non-discriminatory practice exists that achieves the same business result. - The employer developed the business practice with the specific intent to discriminate. - Either A or B
Either A or B
Big Corp is a defendant in a disparate treatment case brought by Pam who is charging that she was denied a promotion because of gender discrimination. Big Corp will likely will if it can establish which of the following defenses? - Pam was denied the promotion for legitimate non-discriminatory reasons. - The reason it gave for denying Pam the promotion was a pretext. - The denial of the promotion was based on mixed motives. - Either A or C
Either A or C
The ___ regulates the process banks use to transfer consumer funds through electronic means Super - Fund act Consumer Banking Act Electronic Funds Transfer Ac Banking Transfer Act
Electronic Funds Transfer Act
Ellen has a contract with Sue to buy her riding lawn mower for 200. Ellen has given Sue 200 in cash, and Sue has given Ellen possession of the mower. What is the status of this contract between Sue and Ellen? Adhesionary Executory Executed Illusionary
Executed
A court cannot instruct the jury that it may take the failure of the accused to testify as evidence of guilt. True False
True
Ann is the head of the accounts payable department in a large corporation. She set up a bank account in the name of a fictitious supplier and deposits a check in it every month. She is the owner of the account. Because Ann is an employee entrusted with making out checks for her employer, what crime has she committed?
Embezzlement
Mary and neighbor Beth had a bitter quarrel. Beth, a nurse, called Mary from the hospital in which she worked and told Mary that her husband and son had died in a car accident and their bodies were in the hospital morgue. In anguish, Mary rushed down to the hospital. Beth had made up the entire story because she wanted to cause Mary pain. Beth has committed the tort of? False light Emotional distress Slander Invasion of privacy
Emotional distress
What does the Family and Medical Leave Act require? - Employees receive their normal pay when on medical leave. - Employees are entitled to twelve weeks of medical leave during a twelve month period. - Employees must have worked for an employer for a minimum of thirty-six months to qualify for medical leave. - What constitutes a "serious medical condition" is decided by the employee.
Employees are entitled to twelve weeks of medical leave during a twelve month period
Why do workers compensation laws benefit employers? - Employers can choose to opt in or to opt out of the program. - The insurance premiums that employers pay are very low. - Employees cannot sue their employers for negligence even if the employer's negligence caused the injuries. - Employees cannot sue the employer for intentionally causing the workplace injuries
Employees cannot sue their employers for negligence even if the employer's negligence caused the injuries
Doctors, lawyers, executives, and others who are not covered by laws regulating overtime pay are classified as ___ employees - vital - exempt - statutory - goodwill
Exempt
Ann Agent was hired by Buyer to locate a piece of property suitable for building an office complex. Ann and her cousin jointly owned a piece of property that suited Buyer's needs. Without telling Buyer of her ownership interest, Ann negotiated the purchase on Buyer's behalf. The price for the property was its fair market value. What options are available to Buyer when he learns that Ann was the seller? a. He may rescind the contract because Ann violated her duty of loyalty. b. He must go through with the contract because the price was objectively fair. c. He must go through with the contract because her cousin's participation made this an arm's length deal. d. He must go through with the contract, but does not have to pay Ann her commission.
He may rescind the contract because Ann violated her duty of loyalty
The exemption that allows debtors to exempt a certain portion of the equity in their homes is called the ___ exemption Family purpose Fresh start Homestead Family Protection
Homestead
Which of the following would NOT constitute a disability under the Americans with Disabilities Act? - Homosexuality - Perception by others that one is disabled - A physical impairment that substantially limits one or more life activities - A mental impairment that substantially limits one or more life impairments
Homosexuality
The Executive, Legislative, and Judicial branches of the federal government each have their own unique duties and functions. This arrangement constitutes an__________separation of powers.
Horizontal
Which of the following is not a defense to criminal liability?
Ignorance of the law
The Fair and Accurate Credit Transaction Act attempts to reduce the impact on individuals who are the target of ___ Unfair lending procedures. Deceptive advertising. Identify theft. Interference with business relations
Identity theft
Minimum contacts is used to determine which of the following?
If the defendant has sufficient dealings with a state that it would be fair to require him to defend a suit there
Implied authority is also known as ___ authority - apparent - ostensible - incidental - constructive
Incidental
Juvenile court, probate court and traffic court are examples of courts of ___________.
Limited jurisdiction
When there is a time is of the essence clause in a contract, the parties will normally also include in the contract a dollar amount that will be paid the innocent party each day it takes to complete the work after the contract date. This is an example of a __________________damages clause. Nominal Compensatory Consequential Liquidated
Liquidated
The process of winding up the affairs of a corporation or firm for the purpose of paying its debts and disposing of its assets is known as ________. a. Foreclosure. b. Garnishment. c. Liquidation. d. Dissolution.
Liquidation
Assume that all the owners of the professional sports teams within a league wanted to pressure the players during contract negotiations to make wage and benefit concessions. Assume also that the owners refused to schedule games for the upcoming season, and denied the players access to playbooks, the coaching staff and the training facilitates. These activities by the owners constitute a ___ Job action Boycott Lock out Strike
Lock out
The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___________________. Malpractice Negligence per se Negligence ad hominem Res ipsa loquitur
Malpractice
Acts which are wrongful in themselves and prohibited by almost all civilizations are classified as ______________crimes.
Malum in se
In complex cases in equity, the court may refer the matter to a lawyer who will hear evidence and make findings of fact and law which he reports back to the court for a decision. In this capacity, the attorney is called a (n) ______________.
Master in chancery
A director's duty of care is that of a normally prudent businessperson in the management of his or her own affairs T/F
True
Which of the following is not an element of negligence that must be proved by a plaintiff? (select all the answer options that are correct) Group of answer choices: Proximate cause Minor cause Superseding cause Actual cause
Minor cause Superseding cause
After his trial, Bill was fined $2,500 and sentenced to serve 6 months in the local jail. From the sentence, we know that the crime he committed was a (n)_____________________.
Misdemeanor
Plaintiff's duty to take steps to lessen the damages that result from a defendant's breach of contract is the duty to ______________. Mitigate Subrogate Abrogate Ameliorate
Mitigate
Sam Student transferred to another college and had to leave his apartment with 5 months remaining on the lease. Landlord must try to find a suitable replacement tenant before he can sue Sam for damage because landlord has a duty to _____________damages. Ameliorate Foresee Subrogate Mitigate
Mitigate
Which of the following statements is true about modifying contracts governed by the Code? (select all answer options that are correct) Modifications must be made in good faith No new consideration is required to modify an existing contract. Parties may agree that all modifications to an existing contract must be in writing. The Code only allows modification of contracts that do not exceed $500.00
Modifications must be made in good faith No new consideration is required to modify an existing contract. Parties may agree that all modifications to an existing contract must be in writing.
What is the name of the motion that may be made by either side during a trial asking the judge to decide the case in its favor as a matter of law because no facts have been introduced at trial supporting the claim of the other party?
Motion for a directed verdict
In a negligence suit, plaintiff must prove all of the following except? Motive Actual cause Proximate cause Duty of care
Motive
Which of the following is not a good under Article 2 of the Code? Natural gas extracted from the ground by the buyer A wheat crop that has not yet been planted A farm tractor An unborn horse
Natural gas extracted from the ground by the buyer
Neda, an attorney, has engaged in the following representations this past year. Which one is least likely to violate her duty of loyalty to her clients? Neda represented both the buyer and the seller in the purchase of a business. Neda represented both spouses in their property settlement following the divorce. Neda represented a local restaurant, which she patronizes frequently, in an employment discrimination suit. Neda created a limited partnership with three limited partners; she was one of the limited partners.
Neda represented a local restaurant, which she patronizes frequently, in an employment discrimination suit.
An employer may be liable for a customer's repeated and public sexual harassment of an employee based on which theory? - Respondeat superior - Strict liability - Negligence - Breach of a fiduciary duty
Negligence
An employer may be liable for harassment by a non-supervisory co-worker based which theory? - Respondeat superior - Strict liability - Negligence - Breach of a fiduciary duty
Negligence
Defendant's failure to do what a reasonable and prudent person would do in his circumstances subjects him to liability for...... Defamation Fraud Negligence Strict liability
Negligence
Susan owns a pizza delivery franchise. She decides to make changes to her pizza making process. Her changes decrease the care and quality control of the care of the ingredients that need to be refrigerated. Several of her customers end up getting food poisoning. What does she have the greatest risk of being sued for? A cheesy delivery Negligence Assault Fraud
Negligence
The majority of private law suits filed in the United States are for ______________claims. Negligence Medical malpractice Nuisance Vicarious liability
Negligence
Cal, a resident of New York, and Tomas, a resident of New Jersey had a car accident in New York. Cal is alleging that Thomas failed to obey a New York traffic sign that gave Cal the right of way. The case is being heard in federal district court in New York. In deciding this case, the court will apply ______________substantive law and ________procedural law.
New York, federal
Under common law, modifications to existing contracts require ___________to be enforceable. Restitution under the original contract Forbearance by the injured party An accord and satisfaction New consideration
New consideration
Valerie Vet accidentally left the back door to her pet clinic open and Cuddles, a canine patient, escaped. Cuddles ran around in the road and in an adjacent field until she was found and returned to the clinic half an hour later, completely unharmed. Is Valerie liable to Cuddles' owner for negligence? Yes, allowing a dog to run loose for half an hour constitutes gross negligence. Yes, it is foreseeable that an unleashed dog will run out of an open door. No because Cuddles suffered no injury while she was free. Yes, Valerie Vet breached a duty of care to her patient.
No because Cuddles suffered no injury while she was free.
The board of ABC Corporation approved a new issue of Class B voting stock. The stock has no stated value. This stock is an example of ___ stock
No par
Stock which has no stated value when it is sold is ___ stock
No par value
Raines Realty, a property management firm, hired Al Agent to manage an office complex. One of Al's duties was to collect the rents. Raines fired Al for negligence, but did not notify the tenants before the next rent payment was due. Al collected the rents as usual and left town with the money. Are the tenants required to pay that month's rent again to Raines? Yes, because third parties have a duty to verify that agents are acting within the scope of their authority. Yes, because a payment to Al stopped being a payment to Raines when Al's actual authority to accept payments ended. No, because Al still had implied authority to collect the rents until Raines told the tenants otherwise. No, because Al still had apparent authority to collect the rents until Raines told the tenants otherwise.
No, because Al still had apparent authority to collect the rents until Raines told the tenants otherwise.
Mary saw two boys swimming across a river she knew had a deep and dangerous channel. She did not warn the boys or try to stop them. If one of the boys were injured, could Mary be sued for negligence? Yes, because all adults have a duty of care to all minors No, because Mary had no duty of care to the boys Yes, because she owed them an enforceable moral duty Yes, because the danger to the boys was foreseeable
No, because Mary had no duty of care to the boys.
Kelly received a cookbook in the mail that she had not ordered. The packing slip read: " Return this book to the publisher within 14 days or send a check for 35 to the address below." Kelly did not return the book within the 14 days and she has not sent the money as requested. Is Kelly required to pay for the cookbook? Yes, when Kelly did not return the book, her conduct created an implied-in-fact contract to which she is bound. No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it. Yes, the publisher made an offer for a unilateral contract, which Kelly accepted by not returning the book as instructed. Yes, there is an implied-in-law contract and Kelly must pay for the book to prevent unjust enrichment.
No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it.
Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than 9,000 so she would have to pay an additional 1,000 if she wanted the car. Is Bea liable for the extra 1,000? Yes, Sid has the defense of economic duress. No, this was a unilateral mistake of fact by Sid Yes, this was a unilateral mistake of fact by Sid Yes, this was a bilateral mistake of fact
No, this was a unilateral mistake of fact by Sid
Having lost his job in the recent recession and facing property taxes that were past due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a price that was well below its market value. Ed now regrets this decision and asks if he has any legal basis for rescinding the contract. Please advise Ed. No, this was a valid bargained for exchange with a good faith purchaser for value. Yes, he can rescind the contract based on economic duress Yes, he can rescind the contract based on a unilateral mistake of value. Yes, he van rescind the contract based on innocent misrepresentation
No, this was a valid bargained for exchange with a good faith purchaser for value.
Having lost his job in the recent recession and facing property taxes that were past due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a price that was well below its market value. Ed now regrets this decision and asks if he has any legal basis for rescinding the contract. Please advise Ed. Yes, he can rescind the contract based on economic duress No, this was a valid bargained for exchange with a good faith purchaser for value. Yes, he can rescind the contract based on a unilateral mistake of value. Yes, he van rescind the contract based on innocent misrepresentation
No, this was a valid bargained for exchange with a good faith purchaser for value.
Which of the following categories of workers is NOT covered by the National Labor Relations Act? - Employees of the federal government - Employees of state governments - Independent contractors - None of the above are covered by the NLRA
None of the above are covered by the NLRA
In which of the following situations would an employee avoid liability for torts committed while carrying out his employment obligations? - a corporate officer acting on behalf of the corporation - a servant following the instructions of his master - an agent carrying out the orders of his principal - none of the above; everyone has personal liability for the torts he commits
None of the above; everyone has personal liability for the torts he commits
A duty is a legal obligation imposed by law or voluntarily assumed by promise. True False
True
Under which of the following is a contract voidable? The contract was not executed under seal. One of the parties has the option to set aside the contract. Consideration is missing. Agreement is missing.
One of the parties has the option to set aside the contract.
Sue bought a painting from Neda, who had inherited it and was not in the business of selling art. Sue gave Neda a check and Neda tendered delivery simultaneously. Sue asked if she could pick up the painting later in the day. Through no fault of Neda's, the painting was stolen before Sue returned. The risk of loss in these circumstances. Passed to Sue on Neda's tender of delivery Remained with Neda because Sue had not yet taken possession of the painting. Would not pass to Sue until her check cleared. Remained with Neda because she was the seller.
Passed to Sue on Neda's tender of delivery.
Val bought a freezer from Neighbors who were remodeling their kitchen. Val gave Neighbors a check, and Neighbors told Val that she could take the freezer. Val asked if she could pick up the freezer over the weekend instead, when she could borrow her brother's truck. Neighbors agreed. Before Val could pick up the freezer, however, it was destroyed when faulty wiring caused a fire in Neighbors' kitchen. In these circumstances, the risk of loss? Remained with Neighbors because they were the sellers. Would not pass to Val until her check cleared. Passed to Val when Neighbors tendered delivery. Remained with Neighbors because Val had not yet taken possession of the freezer.
Passed to Val when Neighbors tendered delivery.
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother's behalf she owes him ... A. Only the duty of loyalty., B. Only the duties of loyalty and information., C. Only the duties of loyalty, information and the duty to account, D. Peg owes Jim all the duties of an agent to a principal.
Peg owes Jim all the duties of an agent to a principal
The building code of River City requires that elevators in public buildings be inspected every nine months. Hal did not have the elevators in his seven story office building inspected for two years. He was brought before a city magistrate and fined $10,000. His offense would be classified as a ________________.
Public tort
Beth went to Elegant Cakes to select a cake for her wedding. The owner gave her piece to sample and said: "if you live to be 200, this is the best cake you will ever eat in your whole life." Owner's statement is an example of ___ Puffery An express warranty Deceptive advertising Fraudulent misrepresentation
Puffery
Exemplary damages are also known as _________________ damages. Compensatory Punitive Consequential Nominal
Punitive
Assume that plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his injuries caused by the negligent defendant if the state which hears the case follows the doctrine of____________________. Situs negligence Modified comparative fault negligence Pure comparative fault negligence Contributory negligence
Pure comparative fault negligence
After reaching the age of majority, if a party does nothing to disaffirm a contract entered into while a minor, his silence will _____________the contract. Disaffirm Dissolve Ratify Void
Ratify
The person who is designated to receive notices and services of the process for a corporation is its ___
Registered agent
The important federal regulation that requires all creditors to disclose the annual percentage rate (APR) charged so that debtors can compare credit offers is _________________. a. Regulation D b. Regulation Z c. Subchapter S d. Chapter 7
Regulation Z
Rights/duties ethical systems are may be based on ____.
Religious standards Philosophical principles A theory of social contracts
John was the losing party in a civil suit and a judgment of $100,000 was entered against him. He appealed and the appellate court sent the case back for a new trial. The appellate court has __________________the case.
Remanded
Mary runs a clothing store at a ski resort. She is approached by Sally who has several dozen funky hand knit ski caps she would like Mary to buy to sell in her store. Mary agrees on the condition that Sally take back any unsold hats at the end of the season. This agreement is an __________________. Sale or return An installment sales contract Sale on approval An unenforceable promise
Sale or return
In a fraudulent misrepresentation suit, the plaintiff must prove that the defendant knowingly misrepresented a material fact. The legal term for the defendant's knowing or reckless misrepresentation is __________. Mens rea Scienter Malum prohibitum Malum in se
Scienter
Which of the following elements is present in fraudulent misrepresentation but not in innocent misrepresentation? Economic damage to the innocent party Misrepresentation of a material fact Scienter Reasonable reliance by the innocent party
Scienter
Codes of Ethics do not encourage ____ .
Self-aggrandizement
Codes of Ethics are not based upon ____.
Self-regard
A bankruptcy trustee may do all of the following except File tax returns for the state. Recover property of the debtor that had been conveyed in a fraudulent transfer Invest assets of the estate Sell collateral without adequate protection for the secured creditor
Sell collateral without adequate protection for the secured creditor
Seller, a Chicago business, sent a shipment of tractor parts to Buyer, a Detroit business, under a contract that read: "F.O.B.Chicago, Illinois." The parts were not those specified in the contract and Buyer rejected them. A few hours after Buyer notified Seller of the rejection, the parts were destroyed in a fire at Buyer's place of business. Which of the following best states the rights and duties of Buyer and Seller in this situation? Buyer rightfully rejected the tender, but risk of loss did not pass to Seller again until Seller regained physical possession of the goods. Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss. Seller has the risk of loss because this was a destination contract. Buyer has the risk of loss because this was a shipment contract.
Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss.
Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a nearby air show, crashed into Phil, significantly increasing his injuries. Iris will not be liable for this second set of injuries because the plane crash was a(n)? Foreseeable Legal Proximate Superseding
Superseding
Any creditor who also owes the debtor money may have the right of ___, which allows the creditor to cancel out these obligations Redemption Execution Levy in distress Setoff
Setoff
What is the purpose of the pre-trial conference in a civil case?
Settle a case without having to go to trial
A claim for discrimination cannot be brought under Title VII if the discrimination is based on ___ - race - gender - religion - sexual orientation
Sexual orientation
Title VII does not provide protection from workplace discrimination if the discrimination was based on the employee's ___ - gender - sexual orientation - race - color
Sexual orientation
Brown & Son's of Easton, Maryland, has a contract to sell 250 computers to Community College in Onley, Virginia. The contract reads: "F.O.B.Easton, Maryland. This is a _______________ contract. Destination Concurrent Constructive Shipment
Shipment
A partner who does not participate in the management of the business is a ___ partner; a partner who participates in decisions and advises management, but whose partnership interest is not known to third parties is a ___ partner
Silent---Secret
Timothy believes the law should reflect societal values, which may change over time. He is an adherent of the ____ school.
Sociological
What is another term for consequential damages? Special Punitive Nominal Liquidated
Special
Conan, an outstanding college pitcher, hired Masters to represent him in negotiations with a major league team. Masters may only negotiate a contract for Conan; he has no authority to make investments or purchase property on Conan's behalf. Masters would be classified as a (n) __________. Factor Broker Special agent General agent
Special agent
Conan, an outstanding college pitcher, hired Masters to represent him in negotiations with a major league team. Masters may only negotiate a contract for Conan; he has no authority to make investments or purchase property on Conan's behalf. Masters would be classified as a ___ Factor, Broker, Special agent General agent
Special agent
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim will be out of the country when a piece of land he sold goes to settlement. He wants to give Peg the authority to convey the deed and sign any necessary settlement papers in his name. To do this he should give Peg _______________. Special power of attorney General power of attorney Factors letters of appointment Broker Authority
Special power of attorney
Ruth had a contract to sell a vacation home she owned in North Carolina. Rather than make the trip from Oregon for the closing, she gave her brother Ian, who lived in North Carolina, the authority to represent her at the closing and to sign all the necessary papers. The notarized document that confers this authority on Ian is a (n) __________________; and Ian is a (n) _____________. General power of attorney, Attorney in fact Special power of attorney, Attorney at law Special power of attorney, Attorney in fact General power of attorney, Attorney at law
Special power of attorney--------------------Attorney in fact
The clause in OSHA that details the requirements that different kinds of equipment, such as scaffolding, must meet in various occupations is the ___ clause - employee benefit - exculpatory - general duty - specific duty
Specific duty
The requirement that someone have a personal stake or interest in the outcome of a case in order to be a plaintiff is called _________________ to sue.
Standing
In order to be a plaintiff, a party must have a personal stake or be personally affected by the outcome of the case. This requirement is called ________________.
Standing to sue
Bill sued Ted for libel over statements Ted published in the company newsletter. A jury heard the case and found that no libel had occurred because the statements were true. Bill is very unhappy with this decision, but cannot sue Ted again over these statements because of the doctrine of
Stare decisis
If a private employer denied an employee the right to speak freely about political issues in the workplace, the employee could not claim a First Amendment violation because the element of _____________is missing.
State action
June was hired to be the store manager of Big Kahuna Surf Shop in Ocean City. The law governing this employment contract is? Equitable principles and maxims. The Convention on the International Sale of Goods The Uniform Commercial Code State common law
State common law
Assume that the Vermont legislature passed a bill prohibiting the sale within the state of detergents containing certain chemicals harmful to the environment. Assume further that the governor signed the bill into law. This law has the status of a(n) ______ .
Statute
The Congress of the United States passed the Soldiers' and Sailors' Relief Act of 1940 and President Franklin Roosevelt signed it into law. This Act has the status of an____________.
Statute
Which of the following theories of liability does not involve wrongdoing by the defendant? Duress Intentional torts Strict liability Negligence
Strict Liability
Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. Strict Tort Product Liability Express liability Strict intentional liability Fraud Battery
Strict Tort Product Liability
Famous Felines is a nightclub act featuring trained lions and tigers. After years of successful and highly popular performances, one of the lions suddenly attacked a spectator sitting in the audience. Famous Felines' liability to the injured spectator will be based on___________. Criminal negligence Strict liability Gross negligence Ordinary negligence
Strict liability
Which of the following theories of liability does not involve wrongdoing by the defendant? Negligence Intentional torts Duress Strict liability
Strict liability
Under substantive due process, laws that restrict any fundamental liberty, such as political free speech of interstate travel, will be reviewed under
Strict scrutiny
Another name for a tax option corporation is a ___
Subchapter S corporation
Ted was hired under a one year contract to manage Sue's sub shop. Eight months into the contract, Sue fired Ted in order to hire a new manager who had just graduated with a degree in marketing and had a lot of ideas for increasing sales. Ted had not breached the contract in any way. Which statement best describes Sue's rights in these circumstances? A. Sue had both the right and the power to terminate Ted's contract., B. Sue had neither the right nor the power to terminate Ted's contract., C. Sue had the power, but not the right, to terminate Ted's contract., D. Sue had the right, but not the power, to terminate Ted's contract.
Sue had the power, but not the right to terminate Ted's contract
The document issued by a court directing a defendant to appear in court in response to a suit filed against him is an_______________.
Summons
Which of the following statements about the Uniform Commercial Code is false? (select all answer options that are correct) The Code allows the parties to a contract to require that any modifications to the contract be in writing. The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable. The Code provides for a reasonable price if price is not included in the contract The Code allows only merchants to be bound by firm offers not supported by consideration.
The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable.
Which federal statute sets standards for employee pension and benefits plans? - The Fair Labor Standards Act - The Employee Retirement Income Security Act - The National Labor Relations Act - The Landrum-Griffin Act
The Employee Retirement Income Security Act
What is the federal agency that investigates and enforces anti-discrimination portions of Title VII? - The Equal Employment Opportunities Commission - The National Labor Relations Board - The Special Employment Commission - The Federal Antidiscrimination Administration
The Equal Employment Opportunities Commission
Assume that State University institutes a curfew for the female students who live on campus. To protect both the safety and morals of its female population, State University requires that the female students be in their dorms by 1:00 a.m. every night. There is no curfew for male students because they are less likely to be victims of attacks. If Nellie Nightowl wants to protest, under which standard of review will the court hear this case?
The Equal protection Clause of the 14th Amendment
Assume that State University institutes a curfew for the female students who live on campus. To protect both the safety and morals of its female population, State University requires that the female students be in their dorms by 1:00 a.m. every night. There is no curfew for male students because they are less likely to be victims of attacks. If Nellie Nightowl wants to protest, which provision of the Constitution will she claim is being violated?
The Equal protection Clause of the 14th Amendment
Which federal statute regulates minimum wages, overtime, and the employment of minors?
The Fair Labor Standards Act
What is the federal statute that makes it illegal for unions to organize secondary boycotts, promote featherbedding, and refuse to bargain with employers? - The Consolidated Omnibus Budget Reconciliation Act - The Taft Hartley Act - The Fair Labor Standards Act - The Occupational Safety and Health Act
The Taft Hartley Act
Which of the following statements about the Uniform Commercial Code UCC is correct?
The UCC consists of identical statutes enacted by the states to provide businesses with consistent and predictable laws
John bought a dishwasher from Local Appliance Store. What type of law governs the contract between John and Local? The Sarbanes-Oxley Act State common law The Uniform Commercial Code Federal common law
The Uniform Commercial Code
Todd bought a lawn tractor from LawnToysRus. The law that governs this sales contract is? State common law Federal common law The Convention on the International Sale of Goods The Uniform Commercial Code
The Uniform Commercial Code
Sue hired Harry to sell her prized racing filly, YouGoGirl. Harry's commission was to be 20% of the selling price. Before a buyer could be found, YouGoGirl died of an equine virus. What is the status of the agency agreement between Sue and Harry? a. The agency terminates by operation of law. b. The agency continues unless the principal, Sue, takes a unilateral action to end it. c. The agency continues unless the agent, Harry, takes a unilateral action to end it. d. The agency continues unless is it terminated by the mutual agreement of Sue and Harry.
The agency terminates by operation of law
What is the status of an agency agreement when a principal files for Chapter 7 Bankruptcy - the agency terminates by operation of law when the court grants the order of relief - the agency terminates by operation of law thirty days after the trustee takes over the debtor's assets - the agency terminates by operation of law sixty days after the trustee takes over the debtor's assets - the agency terminates by operation of law ninety days after the trustee takes over the debtor's assets
The agency terminates by operation of law when the court grands the order for relief
Pat hired Mike, a dealer in livestock, to sell his herd of cattle. Mike was to receive 20 percent commission on the sale. Before a buyer could be found, the herd had been destroyed because of an outbreak of mad cow disease. Which statement best describes the status of the agency agreement? - the agency will continue under the same terms when Pat acquires a new herd - the agency was terminated by operation of law - the agency was terminated by a unilateral action - the agency was terminated by mutual agreement
The agency was terminated by operation of law
Pat hired Mike, a dealer in livestock, to sell his herd of cattle. Mike was to receive a 20 commission on the sale. Before a buyer could be found, the herd had to be destroyed because of an outbreak of mad cow disease. Which statement best describes the status of the agency agreement? The agency will continue under the same terms when Pat acquires a new herd. The agency was terminated by operation of law The agency was terminated by a unilateral action The agency was terminated by mutual agreement
The agency was terminated by operation of law
Under which of the following circumstances will cashing a check marked "paid in full" create an accord and satisfaction? The check is for an unliquidated debt and both parties know of the dispute. The check is for a lesser sum that the amount due on a liquidated debt. The check is in payment of a court judgment. The check is for any transaction governed by the Code.
The check is for an unliquidated debt and both parties know of the dispute.
A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration. True False
True
In which of the following circumstances would the remedy of rescission be used? (select all answer options that are correct) The contract term is longer than a year The contract was based on fraud One party to the contract is a minor who wishes to disaffirm the contract. The contract was based on a mistake by the parties
The contract was based on fraud One party to the contract is a minor who wishes to disaffirm the contract. The contract was based on a mistake by the parties
Mary, a resident of California, is outraged that the U.S. Navy allows civilians on board submarines and believes that this practice, along with the captain's negligence, was responsible for the 2001 sinking of a Japanese boat in the waters around Hawaii. She has filed suit in federal district in Hawaii against the captain and the secretary of the navy. Mary is just a concerned citizen and is not related to anyone aboard either the sub or the Japanese boat. What is the most likely result of her suit?
The court will dismiss the case because Mary lacks standing to sue
Which test do courts use to decide if the contract of a person who has not been adjudicated insane can be avoided because of mental incompetence? The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed. The court will use the state's test for commitment to a mental institution. The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time performance is due. The court will use the state's test for testamentary competence.
The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed.
A general guarantor's promise is not limited to a single transaction T/F
True
If goods are being sold under a negotiable document of title, such as a bill of lading, risk of loss passes to the buyer when? The buyer pays for the goods. The document is tendered to the buyer The buyer takes possession of the goods The goods are tendered to the buyer
The document is tendered to the buyer
Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to draw up a sales contract that protects both Sam's interests as the seller and Ed's interests as the buyer. If Larry agrees to this dual agency, which agency duty would he most risk violating? The duty of loyalty The duty not to be negligent The duty to account Dual agencies pose no particular problems in carrying out agency duties.
The duty of loyalty
Which of the following statements about an agent's duty to inform is false? - the duty to inform does not apply to gratuitous agents, only to compensated agents - the principal is assumed to know everything that the agent knows and can be held liable legally for this information - the agent must inform the principal if a credit customer is having financial difficulties - the agent must inform the principal about changes in market conditions
The duty to inform does not apply to gratuitous agents, only to compensated agents
The need to go to different courts for legal and equitable remedies can be traced to
The early English court system
The term F.A.S. in a contract indicates that? The goods are being shipped by a merchant vessel The buyer paid the cost of insuring the goods. The buyer is a merchant The seller is a merchant
The goods are being shipped by a merchant vessel.
A buyer does not have the right to inspect goods before paying for them if? The goods are sent under a shipment contract. None of the above is true: Buyers always have the right to inspect goods before paying for them. The goods are sent under a destination contract. The goods are sent C.O.D.
The goods are sent C.O.D.
Among the following, which party has a fiduciary responsibility? (select all answer options that are correct) The guardian of a minor child The director of a corporation The owners of fee simple estates The executor of a will
The guardian of a minor child The director of a corporation The executor of a will
A join bankruptcy filing concerning a husband and wife requires a filing of only one petition.
True
Which of the following is not a requirement for advertising to be deceptive? a. It must contain a material misrepresentation or omission b. The misrepresentation or omission must be made with the intent to defraud c. The misrepresentation or omission is likely to mislead a customer. d. The misrepresentation or omission would mislead a reasonable customer.
The misrepresentation or omission must be made with the intent to defraud
All of the following are true except: A class-action suit is one in which a person files suit on his/her own behalf and on behalf of all other persons who may have a similar claim. A class-action lawsuit may brought on behalf of all purchasers of a defective product. A class-action lawsuit may be brought on behalf of employees of a particular business. The number of people who comprise a class in a class-action are frequently very small. Class action suits are popular because they often involve matters in which no one member of the class would have a sufficient financial interest to warrant filing suit.
The number of people who comprise a class in a class-action are frequently very small.
Law enforcement officers are normally not allowed to collect reward money offered for the capture and conviction of criminals because: (select all answer options that are correct) The officers have a preexisting legal duty to apprehend criminals. Accepting a reward would violate principles of promissory estoppel. The officers have a preexisting moral duty to apprehend criminals. The officers are able to accept rewards, but the officer would have to deduct their pay from the amount of any reward received
The officers have a preexisting legal duty to apprehend criminals.
A party has an affirmative duty to disclose information in a contract when: (select all answer options that are correct) The party had previously made misleading statements The party is aware of material information that the other party cannot be expected to know There is a fiduciary relationship between the parties The other party is acting in good faith
The party had previously made misleading statements The party is aware of material information that the other party cannot be expected to know. There is a fiduciary relationship between the parties
An offeree is? The person to whom the offer to form a unilateral or bilateral contract is made. The person who makes an offer to form a bilateral contract The defendant in a case based on quantum merit. The person who makes an offer to form a unilateral contract.
The person to whom the offer to form a unilateral or bilateral contract is made.
Which of the following statements about unemployment compensation insurance is true? - The program is funded and administered by the individual states. - The program is a provision of the Family and Medical Leave Act. - The program is a provision of the National Labor Practices Act. - The program is a provision of the Occupational Safety and Health Act.
The program is funded and administered by the individual states
Which of the following statements is true about the use of the reasonable person standard in negligence cases? (select all the answer options that are correct) The reasonable person is presumed to have a minimum level of knowledge and common sense. The reasonable person of the standard takes on the physical characteristics of the defendant. The reasonable person standard is based on adults over 30. The standard of care for the reasonable person would be less stringent in emergency situations.
The reasonable person is presumed to have a minimum level of knowledge and common sense. The reasonable person of the standard takes on the physical characteristics of the defendant. The standard of care for the reasonable person would be less stringent in emergency situations.
Rights/duties ethical systems are not concerned with ____ .
The result of a decision or course of action
Which of the following is NOT a right guaranteed to workers by the National Labor Relations Act of 1935? - The right to organize into unions - The right to collective bargaining - The right to strike - The right to lock out management
The right to lock out management
If goods are destroyed while in the buyer's possession, and the buyer holds the goods under a sale on approval contract, the loss will fall on? The buyer and the seller equally The buyer only Whichever party has insured the goods. The seller only
The seller only
Unless the contract provides otherwise, place of deliver is assumed to be? The common carrier nearest to the seller The seller's place of business. The storage facility nearest to the buyer. The buyer's place of business
The seller's place of business.
A court will order the remedy of specific performance only if: (select all answer options that are correct) The terms of the contract are unclear. The subject matter of the contract is unique and the innocent party cannot be made whole with money damages. One of the parties to the contract is a minor. Money is not involved
The subject matter of the contract is unique and the innocent party cannot be made whole with money damages.
Which of the following could be argued by the defendant in a product liability case based on strict liability to limit the dollar amount of the damages awarded to the plaintiff? (select all the answer options that are correct) Group of answer choices: The product was sold more than one year prior to the injury The user was careless or misused the product. The manufacturer exercised all reasonable care in the manufacture of the product. The product was based on state of the art design.
The user was careless or misused the product. The manufacturer exercised all reasonable care in the manufacture of the product. The product was based on state of the art design.
If goods are sold under a negotiable warehouse receipt, risk of loss passes to the buyer when? The goods are tendered to the buyer. The warehouse receipt is tendered to the buyer The buyer takes possession of the goods The buyer pays for the goods.
The warehouse receipt is tendered to the buyer
One method for determining a fair value of the stock of a shareholder who dissents from a proposed merger is the ___
The weighted average method
Dan Defendant has a 100,000 judgment against him and he wants to appeal the decision. Which of the following statements about the appeals process is false? Dan is the appellant. Dan must file a notice of appeal within a prescribed time. Dan must post a bond to cover the judgment and court costs. There are no wrong answers: a, b, and c are all true.
There are no wrong answers: a, b, and c are all true.
Creditors may not force a debtor into an involuntary Chapter 13 bankruptcy because it would violate the debtor's ___ Amendment right against involuntary servitude First Fifth Thirteenth Twenty-second
Thirteenth
Famous Chef told Shrimp Boat Captain: I will buy your catch if I think the shrimp are large enough." What is the status of this promise? This is a valid promise because size is a quantifiable term. This is an illusory promise for a contract but a valid promise for promissory estoppel. This is a valid promise because the chef must make the decision in good faith. This is an illusory promise because the chef has complete control over whether or not he will keep the promise.
This is a valid promise because the chef must make the decision in good faith.
A judge has the power to render a judgment that differs from the jury's verdict if he/she believes the verdict was against the weight of the evidence. True False
True
Bob's Beer Barn and Booze is in a price war with Lucy Liquor's. Bob has talked to his attorney to find out if he can illegally bring a meritless lawsuit against Lucy that may potentially shut her down. Which of the following best characterizes this scenario.
This type of legal action cannot be ethically or legally justified.
Which of the following is NOT a power of the courts? To declare laws unconstitutional To interpret statutes To create administrative agencies To establish precedents in common law
To create administrative agencies
Seeking to overthrow the government is the crime of
Treason
Stock that a corporation buys back from its shareholders is ___
Treasury
"Good faith" in the code means honesty in fact in the transaction. True False
True
A basic principle of statutory interpretation is that specific provisions in the statute are of greater weight than general provisions. True False
True
A bilateral mistake of fact is grounds for rescinding the contract. True False
True
A bona fide occupational qualification cannot be used as a defense in claims of discrimination based on race or color
True
A buy and sell agreement normally specifies the terms under which a withdrawing or deceased partner's interest will be bought out T/F
True
A buy and sell agreement specifies the terms under which a withdrawing or deceased partner's internet will be bought out T/F
True
A consumer who does not complete the required consumer credit counseling course will not be given a discharge under Chapter 13
True
A contract entered into by a minor is voidable at the option of the minor. True False
True
A corporation is a person for purposes of the due process clauses of the 5th and 14th Amendments T/F
True
A corporation must qualify to do business in each state where it conducts business activities T/F
True
If a third party does not know that he is dealing with an agent and believes that the agent is acting on his own behalf and will perform on the contract, the principal in this situation is ___ - disclosed - undisclosed - partially disclosed - transparent
Undisclosed
Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." This is an offer to form what type of contract? Bilateral Implied in law Adhesionary Unilateral
Unilateral
The general legal principal under which an innocent person can be held liable for the wrongdoing of another is ... - respondeat superior - vicarious liability - primary liability - transferred liability
Vicarious liability
Which legal principal always imposes punitive damages on a master if the wrongful conduct of the servant justifies punitive damages? Vicarious liability rule Complicity rule Transferred liability rule Durham rule
Vicarious liability rule
Which legal principle always imposes punitive damages on a master if the wrongful conduct of the servant in the course of business justifies punitive damages? - vicarious liability rule - complicity rule - transferred liability rule - durham rule
Vicarious liability rule
The doctrine of substantive due process is designed to address
Violations of fundamental rights, such as voting and interstate travel.
The document issued by a storage facility acknowledging that goods have been accepted for storage is a ________________. Trade assignment Bill of lading Commercial acceptance Warehouse receipt
Warehouse receipt
Which of the following is NOT a factor in determining whether a servant was acting within the scope of his employment? - was the servant carrying on the master's business when the tort was committed? - was the servant disobeying the instructions of the master when the tort was committed? - was the instrumentality of the injury furnished by the master? - did the master authorize the servant to use the instrumentality of the injury?
Was the servant disobeying the instructions of the master when the tort was committed?
Which of the following is not a factor in determining if a servant was acting within the scope of his employment? a. Was the servant carrying on the master's business when the tort was committed? b. Was the servant disobeying the instructions of the master when the tort was committed? c. Was the instrumentality of the injury furnished by the master? d. Did the master authorize the servant to use the instrumentality of the injury?
Was the servant disobeying the instructions of the master when the tort was committed?
Promissory estoppel is often used in which of the following business situations? (select all answer options that are correct) When a businessperson reasonably relies on representations that he will get a franchise. When a contractor submits a bid in reliance on the bids of his subcontractors. When employees rely on employer promises about pensions and benefits, When employees are represented by union bosses
When a businessperson reasonably relies on representations that he will get a franchise. When a contractor submits a bid in reliance on the bids of his subcontractors. When employees rely on employer promises about pensions and benefits,
Promissory estoppel is often used in which of the following business situations? (select all answer options that are correct) When a contractor submits a bid in reliance on the bids of his subcontractors. When employees are represented by union bosses When employees rely on employer promises about pensions and benefits, When a businessperson reasonably relies on representations that he will get a franchise.
When a contractor submits a bid in reliance on the bids of his subcontractors. When employees rely on employer promises about pensions and benefits When a businessperson reasonably relies on representations that he will get a franchise.
Bob and Carol are heirs to some farmland located in Wicomico County. Bob lives in Brown County and Carol lives in Chester County. Because of ambiguous language in the will, some issues of title have arisen that need to be resolved in court. Under traditional rule of venue, which county will hear this case?
Wicomico
When a partnership ceases to exist, the process of reducing the firm's assets to cash, paying off the creditors, returning the capital contributions of the partners, and distributing profits is called ___
Winding up
Financial Wizard, whose office was in New York City, scammed billions of dollars from investors in a vast securities fraud scheme. Securities fraud is a federal crime and also a crime in New York State. The U.S. Attorney wants to try Wizard on the federal charges and the New York State Attorney wants to try him on the state charges. What result?
Wizard can be subjected to two trials: he violated two different sets of laws, one on the federal level and one on the state level, so double jeopardy will not attach.
Coca Cola wants to sue Coda Cola for trademark infringement. Coda soda cans have the same colors and ribbon letters as Coca Cola, and the names are very similar. Which of the following is the test used to determine if Coda's packaging is deceptively similar to Coca Cola's packaging? Did Coda act with malice in the choice of its design and logo? All of the above are required elements of the infringement test. Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola? Would supermarkets and retail stores be inconvenienced by having to display such similar products?
Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola?
The last semester of his senior year, Marc had an unpaid internship in the sales department of a local TV station. When Marc left, he took a copy of the station's client list with him, reasoning that it would prove useful in the future when he graduated and got a permanent job at some other company in sales. Has Marc violated any agency duties? A. No, it was an unpaid position so he had no agency duties., B. No, Marc's duties to the TV station ended when his agency relationship ended., C. Yes, Marc violated a duty to protect confidential information, D. Yes, Marc violated a duty not to be negligent
Yes, Marc violated a duty to protect confidential information
Parker is a dealer in Oriental antiques and rugs. A sign in his store recommends that customers bring in their rugs to him for cleaning and repair. In fact, Parker does none of the cleaning or repair work for himself. He sends the rugs to Local Cleaners, for whom he works as an agent making a 20 commission. Due to a mishap at Local's plant, the rug belonging to Parker's customer was damaged. Is Parker liable to the customer for the damage? No, Parker is Local's agent and has no fiduciary duties to third parties. No, Parker has no liability because he was acting within the scope of this authority as Local's agent. No, Parker has no liability because agents are not responsible for the torts of the principal. Yes, Parker is liable because he is the agent of an undisclosed principal.
Yes, Parker is liable because he is the agent of an undisclosed principal
Rita knew that one of her customers regularly subjected an employee to lewd public sexual advances. The employee complained of this to Rita who took no action because the customer placed many large orders with her store. Does Rita have any liability for her customer's behavior? - No, Rita has no control over a customer's conduct and therefore no liability for that conduct. - No, it would put an undue burden on Rita's business to alienate an important customer. - Yes, Rita is liable under respondeat superior. - Yes, Rita is liable in negligence.
Yes, Rita is liable in negligence
Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim received several dividend checks from his stock broker while he was gone. Peg deposited the checks in her own bank account because her funds were low. Several weeks later she made out a personal check for the amount of the dividends and deposited it into Jim's account. Has Peg breached any agency duties? a. No, this is a gratuitous agency and her only duty is the duty of loyalty. b. No, her action made no difference because Jim ended up with the amount due him. c. No, there was no intent to convert Jim's money. d. Yes, she breached her duty to account.
Yes, she breached her duty to account
Beth invited friends for a BBQ and touch football game in her backyard. Roger, one of her guests, broke his ankle when his foot slipped into a hole as he ran out for a pass. Several malfunctioning sprinkler heads have been removed from the lawn for repairs, leaving dangerous, but hidden, holes. In common law, would Beth be liable to Roger for his injuries? Yes, she is liable in strict liability. Yes, she had a duty to warn him of hidden dangers. No, as an adult Roger is presumed to have the legal ability to take care of himself. No, her only duty to Roger was not to entrap him on the property.
Yes, she had a duty to warn him of hidden dangers.
Tim is the delivery person for a small local bakery. Tim often accepts payments from the bakery's customers when making his deliveries. Tim puts the payments that made by check in an envelope. He uses the cash payments to pay for his daily personal expenses. At the end of each week, he makes out a check to the bakery for the amount that he took in as cash payments. Has Tim breached any of his fiduciary duties as an agent? A. Yes, the duty not to be negligent B. Yes, the duty to account C. Yes, the duty of loyalty D. No, so long as he keeps careful accounts and gives the bakery all that it is due.
Yes, the duty to account
British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton to be shipped from India to England on the ship "Peerless, sailing from Bombay." The contract was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless that sailed from Bombay in October; seller expected to ship the cotton on the Peerless that sailed from Bombay in December. By the time the second ship arrived in England, buyer had found another supplier and refused to accept the cotton. Does manufacturer have any defenses to the breach of contract suit brought by Broker? No, the buyer should have double checked the shipping date. Yes, there was a unilateral mistake of material fact Yes, there was economic duress Yes, there was a bilateral mistake of material fact
Yes, there was a bilateral mistake of material fact
A claim of sexual harassment from a sales representative working for your firm creates a potential liability that has ramifications in terms of: lost time working on productive endeavors emotional toll on other employees involved in the investigation financial loss if the claim is proven true all the above are correct
all the above are correct
Which of the following are legal protections available to a business that allow a business to capitalize on the firms intellectual property:
all of the above are legal protections for intellectual property
Assume that Defendant is found guilty and pursues his appeal up to the United States Supreme Court. If the Court agrees to hear his case, it will issue a writ of _________.
certiorari
In a ______ credit transaction, the amount of the loan is set. Revolving. Open-end. Closed-end. Credit card.
closed-end
A commonly cited disadvantage of an LLC is that its members often risk personal liability if the business of the LLC fails. True/False?
false
A creditor must exhaust his or her judicial remedies against the principal before seeking to recover from the surety.
false
A disadvantage of the Limited Liability Company is that profits are taxed both as income to the corporation and as dividends to the members. true/false?
false
A lien for the value of materials and labor used in the construction or improvement of real property is an artisan's lien. true/false?
false
A surety and guarantor have always been treated as the exact same thing. true/false?
false
A suretyship provides a lien credit a legal interest in the property of the debtor to secure repayment of the loan. true/false?
false
An LLC must have at least two members that participate in management in order to lawfully do business.
false
An artisan's lien is a special lien that applies exclusively to the liens artist receive on artwork they personally performed. true/false?
false
An artisan's lien is always assignable. true/false?
false
Any profits which a surety makes when called upon to perform the principal's duties belong to the surety.
false
At a meeting of creditors, the debtor may refuse to answer any questions about property that may have been removed from the list of assts.
false
Bob voluntarily surrender's a watch that he repaird back to the owner. Bob had a lien on the property for the value of his labor. Bob later re-acquires the property. Bob has now revived his lien since he was able to re-acquire possession of the property. true/false?
false
Bonding companies are usually uncompensated sureties. true/false?
false
Compared to other business entities, a general partnership requires filing complex documentation with the secretary of state's office before it is authorized to do business. true/false?
false
Debt collectors may make harmless misleading statements, such as "I am a lawyer", but may not threaten the debtor.
false
Lack of capacity and discharge in bankruptcy are two common defenses that are available to a surety that may be asserted against a creditor. true/false?
false
Limited Liability Companies are one of the oldest forms of business organization true/false?
false
Limited Partnerships offer a convenient way for professional and family-owned enterprises to do business. true/false?
false
Misconduct of the principal that induces a party to become a surety allows that surety to avoid the contract. true/false?
false
Modernly, surety and indemnification contracts are the same thing. true/false?
false
One of the disadvantages of a Limited Liability Partnership is double taxation. true/false?
false
The general contractor is eligible for a mechanic's lien on the real property, but the subcontractors on the project are not. true/false?
false
The majority of states have not yet enacted Limited Liability Partnership enabling statutes. True/False?
false
U. S. District Court in Vermont is hearing a case brought by a citizen of Vermont challenging the constitutionality of one of the provisions of the U.S. Patriot Act, a federal statute. In deciding this case, the court will use _____________ substantive law and _________ procedural law.
federal/federal
State law requires that state chartered banks post bonds to protect the banks from losses caused by embezzlement by bank employees. The bonds posted by banks are __________ bonds.
fidelity
In a jury trial, the judge would decide questions of ______ and the jury would decide questions of ________.
law,fact
____is the theory of jurisprudence which holds the decisions of those charged with administering the law, such as judges and juries, determines what the law is.
legal realism
A supervisor offering an employee a promotion or extra vacation time in exchange for sexual favors is an example of ___ harassment - quid pro quo - hostile workplace - constructive - disparate treatment
quid pro quo
Deductive reasoning requires one to ____.
use major and minor premises to draw logical conclusions
