BUL4310 exam 1 practice questions

Brown v. Board of Education dealt most closely with which amendment to the U.S. Constitution?

14th

How many Amendments are there to the U.S. Constitution?

27

We have, in the United States, constitutional amendments.

27

In Florida, Ted represents Talia in a case involving a slip and fall (tort) in a Publix grocery store. Ted successfully settles in Talia's favor before Publix files an answer to the complaint. The award for Talia is $257,000. What is the maximum amount Ted could have charged in a contingency fee agreement for this scenario?

33.33%

Joe Swanson is a police officer in Quahog, Rhode Island. Joe received a tip from a confidential informant that a local doctor, Dr. Goldman, has been distributing controlled substances from inside his home. Joe wants to conduct a search of Dr. Goldman's home but must first obtain a search warrant from a neutral magistrate. Which Amendment to the United States' Constitution provides Dr. Goldman with protection from an unlawful search of his home?

4th amendment

Talia is accused of arson. She allegedly set a school on fire. Which amendment would give her the protection of the right to a speedy trial?

6th

In which of the following cases would a contingency fee NOT be permitted?

A case in the United States in which you are charged with driving under the influence

Assume that Perry is the President of Poland. President Perry decided it was time for Poland to adopt a new constitution with changes that are supposed to "help" Polish citizens. The new constitution states wonderful things like free speech, due process, and peaceful transitions of power. In reality however, these protections and rights are not actually offered or enforced in Poland. What happened in Poland?

A façade constitution was implemented

Hidalgo has an opportunity to join the Board of Directors for a corporation. Hidalgo has been researching the duties of directors. What will be required of Hidalgo should he decide to take the position?

All of the above are powers of the Board of Directors. Decide whether to declare dividends, Appoint and remove officers, Create bylaws, & Determine stock prices for newly issued shares

Which one of the following statements is true?

All of the above. Agents are fiduciaries, A principal may be liable for an agent's actions, An agent has a duty of loyalty, obedience, and care, & The principal has a right to an accounting.

Choose the True statement:

An agent ordinarily may not act on behalf of the principal in personal matters, such as romance, voting in an election, serving on a jury, and the like.

Which one of the following is less likely to be a disadvantage of the Inquisitorial System than of the other main system?

Attorney advantages - simply having a better lawyer could make the difference

Alonso is Jaina's attorney, representing Jaina in a civil suit against Jaina's neighbor. While Jaina is still his client, Jaina tells Alonso in confidence that her business is failing. After the case is over and Alonso is no longer providing any services to Jaina, Alonso tells a competitor of Jaina that Jaina's business is very likely to fail. Alonso is violating:

Attorney-Client Privilege

Robert and his neighbor were in court over an incident involving two chickens, a brownie, and a wood chip blower. Robert was certain that the facts would support his case. When the judge ruled, she found Robert liable based on the state supreme court's decision in another case also involving two chickens, a brownie, and wood chip blower. Robert was shocked. What principle did the judge follow?

Stare decisis

Agency law is covered under which category of Law?

State Common Law

Steven and William were discussing their beliefs about the purpose of a government. Steven believes that as humans, we give up all our rights to the government in order to be protected from the selfish, innate actions of others. William disagrees and states that the government's job is to protect our freedoms from being taken by others. Whose definitions of law do Steven and William believe, respectively?

Steven - Hobbes; and William - Locke

Larry is a pizza deliveryman for Cheesy Pie. A poor man with no savings or large insurance policies, Larry works from 7 am to 7 pm every day, just to pay his bills. Cheesy Pie has a strict "no phone while on the job" policy, and Larry is usually very good about abiding by this policy. One day, around 2 pm, Larry was driving 42 pizzas to a corporate event. While driving, Larry decided that he wanted to listen to "Shake It Off" by Taylor Swift, so he took out his phone and - while in the process of turning on the song - Larry ran a red light, causing him to crash into Stacy's brand new $500,000 car. Stacy's car is beyond repair and Stacy intends on suing for her loss. What is Stacy's best course of action?

Sue Cheesy Pie using the Doctrine of Respondeat Superior

Larry Lawyer is a lawyer from Jacksonville, FL, that only charges contingency fees to his clients. Larry begins to work on a case for Sue regarding her recent divorce. Larry tells Sue that if he wins custody of her children, Sue will owe him $3000. However, if Larry loses custody of Sue's children, then Sue will only owe him $1000. The case goes all the way through trial, and the judge decides that Sue must split custody with her now ex-husband. How much money does Sue owe Larry?

Sue does not have to pay Larry because it is a violation of the lawyers' Model Rules of Professional Conduct adopted throughout the United States.

Yumi is a shareholder in a Public Corporation. Yumi notices that the corporation is losing revenue, causing shares to drop drastically. Yumi believes this is because of Corporate Negligence and poor business judgment. Yumi wants to take measures into her own hands. What can Yumi do?

Sue the Corporation

Shareholder primacy, a traditional corporate governance theory, places shareholders' interests above others. Which scenario best describes this in practice?

The board of directors of Racket Co. must make a big decision regarding fossil fuels. The company's next project would benefit the owners of the company but comes at the expense of the surrounding town.

One of the major advantages of dispute resolution through the common law is:

The common law can change with the times.

Kitty provides estimates for a local construction company. As part of her duties for the company, Kitty goes to potential clients' houses to meet the clients, learn about the job requested, and gather other information needed for the company to prepare an estimate. Kitty drives her personal car to such visits, but the company reimburses her for all gas mileage at a fixed rate that is periodically adjusted. More senior employees in Kitty's role are given company cars, but Kitty has only been with the company a few months and was paid an hourly rate. After completing such a client visit, Kitty is involved in a car accident caused by her negligence. Kitty was returning to the office when the accident occurred. However, Kitty's return to the office was not a direct one. Instead, Kitty went nearly across town to get gas. Kitty selected this gas station, even though there was one on the most direct route from the client's house because of its proximity to town's best food truck. The accident occurred when pulling out of the food truck's location. Who is liable for the accident?

The company is liable for Kitty's accident. Kitty was returning from a client's house and therefore was acting on behalf of the company. Although, Kitty did not take a direct route back to the office, it is likely that a court will find stopping for lunch to not be a detour sufficient to cause Kitty's actions to be outside the scope of her employment.

Mary is 17 years old. On Friday, July 2nd, Mary & Her Friends throw a dance party after school at her family's farm. On Wednesday, July 6th, Florida makes it illegal for minors to dance. Mary is arrested on July 7th. If the charges are dismissed, it is most likely because of what?

This is an ex post facto law

Lumbo Loveboat is the new President of a small island nation. He is unsure how to rule his country properly, so Pres. Loveboat asks four wise people for advice about how to structure his nation's law.Margo says that Pres. Loveboat should focus his laws on helping the money markets function properly. Richard contends that it does not matter what laws Pres. Loveboat employs as long as the people get what they want.Kyle believes that no laws need to be passed since there are already laws in place via human nature. Elian tells Pres. Loveboat to just use the laws Elian used in his old country of Cuba. Loveboat listens to them all and then decides to follow Hammurabi's Code.Which of these statements is true?

Elian is from the Historical School; Margo is from the Law & Economics School; Kyle is a Natural Lawyer.

Sarah and her husband are going through a divorce. She pays a hefty retainer to hire a well-dressed lawyer who excels in theatrics. Her strategy is to hire the lawyer most likely to sway the jury to her side. When Sarah arrives in court, she realizes that her plan turned out to be a failure as there is only a judge and no jury. What type of system is Sarah in?

Equity

Wilfred is a very successful banker and has a very good reputation. Simbola goes around to businesses and tells each business that he is partners with Wilfred even though he really is not. This gives businesses confidence to allow Simbola to pay them back in the course of business since he is linked to the good reputation of Wilfred. If Wilfred knows that Simbola is doing this and does nothing about it, then what type of partnership is formed to make Wilfred liable for money owed to the businesses?

Estoppel

David is currently in the middle of a civil suit, and his lawyer advises him to ask for a jury trial. The lawyer is very familiar with the judge ruling on this case and knows that in the past the judge has been very reluctant to award the winners of a case any large compensatory damages. The lawyer is willing to take the uncertainty of a jury's decision rather than risk receiving a minimal monetary award from the judge. The lawyer can be said to be a strong proponent of which kind of legal theory?

Legal Realism

Luke enters into a contract with Leia believing that Leia is acting on her own behalf, when in fact, she is acting as an agent for Han on his express directives. If Luke wants to sue in the event of a breach of contract, against whom can he take action?

Leia or Han

Elizabeth owns a small public relations firm that frequently finds itself involved in civil lawsuits. While Elizabeth despises those criminal defense attorneys who use legal loopholes to gain acquittals for their more-than-likely guilty clients, she has no problem using the most vicious lawyers to defend her PR business in court. What practice, which may be analogous to the Thrift Paradox, does Elizabeth exercise?

Gamesmanship theory

What is the best, and thus, least overbroad, definition of common law?

Law developed through court decisions

Which one of the following scenarios does NOT represent a role of a lawyer?

Lawyer Lauren just closed a deal for her client, Tom's Tacos, and charges him three times more than her regular fee because she just had a baby and could use the extra money

Assume Lawyer's services have been retained by Client and Lawyer has begun representation. In which scenario may Lawyer reveal the Client's words to a court which were communicated to Lawyer by Client.

Lawyer may disclose words said by Client where Lawyer reasonably believes that disclosing the words will prevent Client from committing a crime which is likely to result in imminent death or bodily harm. A Client's intention to commit a violent crime is not subject to attorney-client privilege.

Mr. Holmes was drafting the Constitution for his new country, Baskervilles. Tyranny was rampant in the country where Mr. Holmes previously lived, so Mr. Holmes wanted Baskervilles to be a country that supported freedom. Therefore, he decided that the Baskervilles government should have a separation of powers as well as checks and balances in order to help preserve political liberty. Which philosopher would agree with the ideals upon which Mr. Holmes founded Baskervilles?

Montesquieu

Common law is distinct from the Civil Law (Code system - the Roman Law). In judge-made law (the common law system), the law bubbles up from court cases, as decisions are written down and put in yearbooks. The result is that the law increasingly becomes universal, understood, and spread throughout the kingdom. Which of the following is true?

Nowadays, the common law is found principally in English speaking countries.

In a particular European country, the corporation's purpose is not simply to maximize per-share-values like it is for the most part in the Unites States. Workers' councils are given extensive power in running companies and are able to contribute in many ways, including improving working conditions. In which European country is this mainly emphasized, and what is the name of this system?

This system is mainly seen in Germany and its proper name is codetermination

Panem was founded on the idea that law should provide stability, order, and security. The people of Panem agreed to relinquish all of their rights to the state. Panem founders thought people's most basic considerations were inherently selfish and people are NOT naturally social beings. Which philosopher would agree with Panem founders?

Thomas Hobbes

Choose the True statement:

Three aspects of a corporation are (1) perpetual existence, (2) limited liability for shareholders, and (3) easy transferability of ownership.

Examine the following sentence and citation: The court held that the exemption "can be invoked to stop the release of documents not originally created for law enforcement reasons." Jane Dee Agency v. Jane Dee Corp., 123 U.S. 232, 246-47 (1987) (Stevens, J., dissenting). Where in the opinion can the quoted section be found?

Pages 246-247

Which of the following demonstrates an attribute of a corporation?

Paul opens a bank account in Global Inc.'s name.

Choose the False statement:

While some federal laws regulate corporate activities, corporations are generally regulated at the state level.

Imagine you are sitting at home on a Wednesday night ready to watch your favorite television program, Jeopardy. You notice that one of the categories includes answers relating to the competing definitions of law, and you are ecstatic since you are in BUL4310 and will know the answers! The first answer worth $200 is the following: This person believed that the law should provide order, security and stability. The second answer worth $600 is the following: This person published The Spirit of Laws. The final $1,000 answer is: This person's writings were extremely influential during the development of the U.S. Constitution. Which of the following names are in the correct order with respect to the Jeopardy answers (which always come in the form of a question)? NOTE: The first name is the $200 Jeopardy answer, the second name is the $600 answer, and the last name is the $1,000 answer.

Who is Hobbes? Who is Montesquieu? Who is Locke?

Which of the following methods best indicates the elimination of a terminated agent's lingering authority?

Xavier used to be an insurance broker for a local insurance company but has recently been let go due to budget constraints. The local insurance company makes sure to notify current and potential customers that Xavier was no longer part of the company.

Fred owns a bookstore that specializes in rare books. A new shipment of rare books arrives from California and Fred adds them to the "New Arrivals" section of his store. Fred tells Barney, his employee, not to sell the newly arrived first edition print of Great Expectations. Fred goes to a meeting across town. While Fred is gone, Barney sells the first edition print of Great Expectations. Is Fred bound on this sales contract?

Yes, Barney had apparent authority to sell the book

Rusty and Betsy are partners running the general partnership, Ice Cube Enterprises, where they make and sell ice cubes. On behalf of the partnership, Betsy renews the lease on the building where they house the ice cube machines without telling Rusty. Rusty and Betsy fall on hard times, and Ice Cube Enterprises goes bankrupt. Rusty is:

Personally liable because Betsy was acting within the scope of the partnership authority.

Which of the following scenarios does NOT accurately describe a power vested in a corporate shareholder?

Pham is a shareholder of a financial technology company and does not owe and fiduciary duties to his other shareholders.

Milo Inc. holds a substantial debt to creditors, and there has been verified commingling of personal and corporate assets. The use of shareholders' control of Milo Inc. for an improper purpose, harm to the plaintiff and the corporation being as an "alter ego of owners," have all been shown in this case. The court may apply and creditors collect from ______.

Piercing the Corporate Veil; shareholders

Rachel agrees to babysit for Trenton on Friday in exchange for $75. Rachel babysits on Friday, but Trenton refuses to pay her. Rachel sues Trenton for breach of contract. Which category of law does this situation fall under?

Private Law

Lacey, a Florida resident, just established her new business, Colorful Creations, Inc., in Delaware. Her business operates in the state of Florida and manufactures unique home décor and furniture. So far, Lacey is pleased to see that she is making a positive return on her investment. The income seems promising for continued growth, which is excellent news considering Lacey has filed a form with the IRS that should ensure only Lacey, not her business, owes taxes on Colorful Creations, Inc. income. Which of the following best describes Colorful Creations, Inc.'s business form?

Private, foreign, S Corporation

Joel works for the United States Postal Service as a deliveryman and is scheduled to arrive at the Post Office every morning at 7:00 AM to pick up the day's mail. Joel left his house at 6:30 AM and was listening to his favorite podcast when he accidentally rear-ended Leah's car at a stoplight. Leah discovered that Joel worked at the USPS, and she decides to sue both Joel and his employer for negligence. Will Leah's suit against the USPS be successful?

Probably not; an employer cannot be held liable for an employee's negligence while commuting to or from work.

Which of the following is not an example of substantive law?

Procedural law

Bob the Lawyer has tried many cases in the past. On the start of each case he is able to put all his old cases behind him to focus on the current case. However, there are some details he should not disregard. What are these?

Procedure

Which of the following evidently tend to seek the least amount of outside funding and support?

Proprietorship

Which of the following scenarios best describes an inherent disadvantage of the adversarial system?

Reginald is a corporate shareholder of a large business and has adequate assets to fund his defense against Ross, a consumer who is unsure of the legal process and does NOT have great assets for an attorney.

Which is not a benefit of forming a limited liability company?

Reliance on a well-developed body of case law.

Choose the situations that does NOT demonstrate an advantage of "The Rod Ripley sole proprietorship."

Rod was talking about expanding the business with his father, who managed the finances of Sweet Delight. The father, as was his right given his arrangement with Rod, refused to agree to expand.

Arthur Morgan has taken an interest in the oldest and most influential legal system. This legal system is the only law contained in codes and accompanying statutes, including family law, property law, etc. What is this law?

Roman-Germanic legal system

Which of the following scenarios best demonstrates an agent's breach of a fiduciary duty to its principal?

Skylar is a corporate officer for a large technology company. He voted on a proposal that would benefit his interest in shares, but at the detriment of the company's shareholders.

Jeff lives in Gainesville, Florida. His neighbor, Gail, asks if while she is away, Jeff can bring in her mail and watch over her home. Jeff refuses to do so. He says that if he brings in her mail then she'll make him dinner to thank him, for dinner he'll have to invite her to his BBQ, and then she'll invite him to game night. Jeff has no desire to become friends with his neighbors. What type of argument is Jeff using?

Slippery slope

In order for a common law judge to make a decision, what helps him find the law he/she must apply?

Stare Decisis

The most significant potential disadvantage of an adversarial legal system is:

a disparity in financial and legal resources between the parties may affect the outcome of the case

In countries that follow the _______ approach, judges develop law more than they develop facts.

adversarial

The ______ system puts the burden of developing all the facts of the case on those with the most interest in the case.

adversarial

An __________ occurs if a principal approves or accepts the benefits of the actions by an otherwise unauthorized agent.

agency by ratification

Which of the following is the owner of an LLC?

its members

Bethany is a bengoshi. She likely practices law in which of the following countries?

japan

Which of the following has the oldest Constitution that is still in effect today?

massachusetts

What theory of law is based on "higher callings," morality, and/or religion?

natural law

Ricky and Benny are having a debate about the theories of law. Ricky believes that the law should be followed on the basis of what is exactly stated in the law. Benny believes that the law should take into account the connection between the law and how people will interact with the law. Respectively, what theories are Ricky and Benny describing?

positivism, legal realism

Four months ago, Maria Shriver bought 4.5% of the shares of Arnold Schwarzenegger's company, Governator Co. Today, she wrote a letter demanding to see Governator Co.'s corporate books. Maria, Arnold's ex-wife, wants to find out if Arnold is secretly using the company to make payments to his illegitimate children. Her request will most likely...

be denied because she has not owned the stock for more than six months

Ken wants to open a business and wants to use the trademarks of a company that is already established. This is an example of:

franchise

BJ's Toy Store hires Paul to manage its new store in Yeehaw Junction. Their employment agreement says nothing about Paul being able to fire employees to work in the store, but Paul has _________ authority to do so.

implied

When Sara stole an apple from the grocery store, her mother made her return it. Sara complained that it was just one apple and the store would not notice. Her mother explained that if she began stealing apples, she would soon move on to stealing bigger things and start leading a dangerous life. Her mother said she would end up in jail because she would eventually get caught and she would live the rest of her life in a cell. Her mother is using the/a:

slippery slope argument

Steven is 16 years old. On Saturday, May 2nd, Steven drove over to his father's house at 9:30 PM to watch a movie. On Tuesday, May 5th, Florida makes it illegal for a minor to drive after 8:30 PM, unless it is to or from the minor's employment. Steven is arrested on Thursday, May 7th. If the charges are dismissed, it is most likely because of what?

this is an ex post facto law

True or False: Neither self-defense nor insanity were successful defenses for either Dudley or Stephens.

true

Tyler is a judge for an agency case that involves two parties, Jessica and Kelly. Jessica claims that she established an agency relationship with Kelly and is entitled to receive compensation for her misconduct. Kelly believes that there was never an agency relationship between her and Jessica; therefore, Jessica is not entitled to compensation because she is not Kelly's principal. What should Tyler review to see whether there was an agency relationship between Jessica and Kelly?

whether the words and conduct of both Kelly and Jessica, as well as the overall circumstances, would establish an agency relationship.

You and six other people go on a three-hour boat tour. Unexpectedly, you crash on what you believe to be a deserted island. It has been a month and you have not found any food. You and five others decide to eat the healthy first mate, Gilligan. Just after you kill Gilligan and begin to eat Gilligan, a group of indigenous people from a nearby island land ashore and catch you all in the act; they arrest all six of you. All six of you are tried and found guilty of murder. The judge, a staunch positivist, most likely said ___________ when delivering the judgement.

"Murder is murder, and our laws say murder is illegal."

Which of the following quotes best describes the "legal realism" theory of law?

"We believe that one must look to the players, not just the rules themselves. Once should consider people's training and how the law is applied and enforced."

Tim and Brandon decide to rent a warehouse and divide up the space, which will then be leased separately to football teams so they can store their equipment. They both signed the contract, which was a 15-year lease. Tim had the good credit and the funding to pay for the warehouse, but Brandon had the experience needed to run the place. 15 years go by, and their business decision was a great idea as they both made a very big profit in the end. However, now that Brandon has more money, he decides to renegotiate the lease on the warehouse and run the business himself. Which of the following is most correct based on the above situation?

A highly influential 1928 New York case extended the duty of parties to a joint venture (and, by extension, to partners in a partnership) beyond what a contact states, and, based on loyalty, the opportunity to renew belonged to both Tim and brandon

Which of the following does NOT exemplify a potential disadvantage of the inquisitorial process?

A judge works to find out the time and place of death in a murder case with the local police department.

A lawyer has represented a client in the recent past. Though the lawyer has no experience or education with franchises, the client has asked the lawyer to advise the client on entering into a franchise relationship with a franchisor and paid the lawyer $2,500 to do so. The lawyer is overwhelmed by the terms used in the franchise disclosure documents, the franchise agreement, and the operations manual, but undertakes to represent the client, anyway. As a result of inadequate representation, the client is irreparably harmed and suffers economic loss as a result of entering into a "lemon" franchise deal.Which rule of the ethical code of conduct governing lawyers has the lawyer violated?

A lawyer has a duty to only take cases which it can handle competently. Here, the lawyer took a case in which it had no experience nor education. As a result, the lawyer provided incompetent services.

Under the doctrine of stare decisis:

A lower court must uphold decisions reached by higher courts of appeal (from that same jurisdiction and from the Supreme Court).

Axe Capital entered into a contract with Chuck Holdings for the sale of its legal pad manufacturing business. The transaction proved to be ultra vires. Which of the following parties, for the reason stated, may properly assert the ultra vires doctrine?

A shareholder of Axe Capital to enjoin the sale.

Teldar Paper Co. entered into a contract with Anacott Steel Corp. for the sale of its mineral holdings. The transaction is beyond Teldar's powers. Which of the following parties, for the reason stated, may properly assert the lack of powers in order to challenge and try to stop or undo the sale?

A shareholder of Teldar Paper Co.

A federal law has recently been passed. The federal law prevents the disclosure of personal financial information in litigation unless there is a compelling public interest which is served by such disclosure. A state seeks to pass a state law which would further regulate the disclosure of personal financial information in litigation. Which of the following laws could a state pass?

A state seeks to pass a law which extends the privacy protection offered under federal law to require a four-part balancing test to determine whether the disclosure of personal financial information in litigation satisfies a compelling public interest.

Mr. Business is a shareholder for a massive company, LMN Enterprises, Inc. ("LMN"), that is incorporated in Delaware and has extensive manufacturing operations, ships goods worldwide, has hundreds of retail stores in North America (mainly the United States), has a large network of "partner" suppliers and licensees, and employs over 40,000 people. Mr. Business notices that the company's profits are declining, and he wants to "shake up" the company. Which of the following will require shareholder approval before LMN acts?

Acquire stock and therefore combine with a competitor.

Bob Smith used to work as a door-to-door salesman for ABC's Air-Conditioners. However, he was recently fired from the company. In order to make sure that the company was not responsible for Bob's actions now that he was no longer an employee, the company sent a letter to all the clients who had bought an ABC air condition from Bob. Each letter stated, "Mr. Smith is no longer our agent." This is an example of:

Actual Notice

Satchel's construction business was booming. Because Satchel was busy overseeing work projects, he put Adam in charge of purchasing, which included buying lumber from his regular supplier, Ace. Because Satchel always purchased on credit, Satchel informed Ace of Adam's new role as the person in charge of purchasing lumber for Satchel. Six months after Adam was promoted, Satchel caught Adam using company funds to buy personal expenses. Although he wanted to fire Adam, Satchel only demoted him to floor sweeping because Adam was Satchel's brother. Satchel did nothing else except - in a local industry publication - placing a notice that Emiliano, and only Emiliano, was now handling all purchasing for Satchel's business. Angry at his demotion, Adam decided he would use Satchel's account with Ace to buy lumber to build a porch at his residence, which was a much smaller purchase than normal orders. Did Adam have the authority to bind Satchel to the purchase of lumber for Adam's porch?

Adam did have the authority to bind Satchel to the purchase. Adam previously had actual authority to bind Satchel to the purchases of lumber from Ace - which was expressed by Satchel when he called Ace to let Ace know that Adam would be handling all lumber purchases. While Adam no longer is charged with making the lumber purchases, Adam was still employed by Satchel, and Satchel had not given Ace notice that Adam was no longer charged with purchasing lumber.

Choose the false statement.

Adam is a longtime shareholder in McDonalds Corporation, a famous fast food chain. Adam has decided he wants to start a rival fast food chain known as Good Burger. Statement: Adam has the right to check all of McDonalds' books and records, even though he is checking those records with the intent of gaining access to secrets and digging up dirt.

Prof. Emerson is worried about people breaking into his office to steal his lecture notes. To help prevent any break-ins and unauthorized use of his lecture notes and course material, Prof. Emerson contracts with the reputable firm, Newton's Zone, which furnishes an armed guard. Prof. Emerson tells the security guard the times to be in the office guarding it, but other than that the Security Guard is able to decide the manner in which he works. The security guard has received extensive training from Newton's Zone on how to most efficiently guard offices and course materials. The security guard has been on duty, 8 hours a day, five days a week, for two weeks when an incident occurs. Adam, Prof. Emerson's most trusted TA, tries to get into Prof. Emerson's office to retrieve an answer key for a make-up test. The security guard has never met Adam before and thinks it is a student trying to steal lecture notes to sell to other students. The security guard, without warning, shoots Adam in the knee. Adam is a little upset at what happens and is thinking about suing Prof. Emerson. You are Adam's attorney. What would you advise Adam to be the most likely result?

Adam will win though the security guard is an independent contractor having an armed guard is inherently dangerous.

Choose the True statement:

Adversarial lawyers have a personal stake in the case (fees, reputation), more so than controlling inquisitorial magistrates.

Albert and Alberta come up with an idea to start a business renting out boating equipment at Lake Wauburg. They do not formally sign a contract to enter into a partnership or file any paper work with the State, but each buys the resources needed to start the business. Albert buys 60 percent of the materials needed, and Alberta buys 40 percent. If the business does not have the money to pay all its creditors:

Albert and Alberta are both personally at risk because they have entered into a partnership.

Which of the following is not an element of a profession?

All of the above are elements of a profession. It has a system for certifying that individuals have mastered that body of knowledge before they are permitted to practice, It has an accepted body of knowledge, It has an enforceable code of ethics, & It has a commitment to the public good.

After allegations of a series of fraudulent money transfers, Felix Felon is arrested and formally indicted. After making bail, he contacts the office of Dewey, Cheatham and Howe ("DCH"), a successful white-collar professional services firm specializing in tax planning and corporate law. Felix sets up a coffee date at Sucksbucks with Tom Dewey, the firm's senior partner and a personal friend of Felix. Over coffee, Dewey explains that DCH doesn't normally represent criminals, but will make an exception for Felix because of Felix's personal connections with the firm. Also present is Mr. Dewey's paralegal who is taking notes on the conversation and collecting documents to create a file for Felix. "But Felix, tell me honestly, did you, or didn't you?" asks Mr. Dewey. "Tommy, I swear on your life, I'm an innocent man," responds Felix. Later, it appears that Felix's unscrupulous handling of other people's money did not end with his indictment. In fact, he may have stolen the greatest amounts while being represented by Mr. Dewey. Consequently, Dewey and DCH are subpoenaed by the U.S. Attorney for all documents and records associated with their representation of Felix, including the transcribed conversation and the documents exchanged during the meeting at Sucksbucks. Felix invokes the attorney-client privilege. What result as to the Sucksbucks oral and written communications?

Attorney-client privilege applies, but the crime-fraud exception may be present if Dewey's representation of Felix facilitated and furthered Felix's alleged fraudulent conduct.

Mike constantly sees Ben and Jerry working at a coffee store. Mike strikes up a conversation because he is interested in purchasing the property. He is not sure with whom he should negotiate. Mike has a great relationship with Ben, but Mike does not get along with Jerry. Mike did learn from their conversations that Ben owns the property and does not share profits or losses with Jerry or anyone else. Neither Ben nor Jerry has filed any paperwork to operate the business. Jerry manages the day-to-day operations. With whom must Mike negotiate?

Ben, because he owns the property as well as receives the business profits and/or is responsible for its losses

The Copious Company, a real estate development company, decides to build a megamall in Middleburg, Florida, in an area now occupied by a subdivision of single- family homes. Fearful of the negative publicity that would result from its purchase of an entire subdivision, Copious hires an agent, Biff Bild, to secretly purchase the homes for the company. Biff did not tell the homeowners who his true employer is, approaches each homeowner and tells each one that Biff's clients are two people - that is a horse- loving couple from Minnesota, who want to relocate to Leesburg. Within a month, Biff has signed contracts to buy houses with over half of the homeowners in the subdivision. Biff agreed to pay well above fair market value for each home. Before Biff can finalize the rest of the purchases, the local newspaper reports that Copious is planning to expand into Leesburg and may have already begun secretly buying up property. After the news story is printed, Copious's management gets spooked and abandons its plans. Copious tells Biff it will not honor any contracts with him and that he is on his own. The homeowners who agreed to sell become irate and sue Biff and Copious for breach of contract. Who will most likely be held liable for breach of contract?

Biff will be held liable as the undisclosed agent, and Copious will be held liable as the principal.

Choose the true statement:

Boards of directors typically have responsibility for decisions involving whether to authorize issuance of additional stock.

Which of the following is not an example of a situation that does not involve private law?

Bobby owns a tattoo shop. Florida recently enacted a law that places restrictions on a person's ability to get a tattoo. Bobby brings suit and alleges that the law interferes with people's right to expression.

James Bond decides to move to Boston with Solitaire and open their tarot-card reading business. After they had finally opened up their store, Solitaire confesses that she had many ideas that she came up with while working for the previous five months as the tarot-card store manager for Mr. Big, in New York; in now telling what happened, she notes, though, that she never finished discussing the ideas with Big and also never completely carried them out. Bond and Solitaire use the ideas in their store, which instantly becomes a big hit and attracts much of Mr. Big's business. Furious about someone "stealing" his business, Mr. Big decides to take a trip to this new store and sees that it is being run by his former employee, Solitaire, and Mr. Bond. Big also notices that some of the decorations and specials seem awfully familiar for some reason, but cannot remember why at that point. After he leaves, it occurs to Big that those were the ideas Solitaire was telling him about back at his store in New York. Big decides to sue Bond and Solitaire. Which of the following is the most plausible outcome?

Bond and Solitaire would be held accountable because Solitaire had a fiduciary duty to carry out the ideas for Mr. Big as she created them while working for him (and Bond would be liable assuming that he is a partner of Solitaire).

Jarrod was just elected to serve as the treasurer for his food store and restaurant organization. He deals with hundreds of thousands of dollars and is authorized to make purchases under $1000 without obtaining the other board members' consent. He also has access to the organization's hideout, which looks like a great place to throw a party. Jarrod quickly gets power hungry. Which of the following is likely a breach of fiduciary duty?

Borrowing some of the organization's money so that he can build a pool at his house and then use that as another place to meet.

Dave is having some electrical problems in his house, so he calls his friend Bud— an electrician who owns Bud's Lighting Inc.—and asks for an estimate, specifying he wants the sturdiest wires. Bud tells Dave he'll do the job for $2,000 and buy the supplies himself. Bud and Dave sign a contract, and Bud starts working on Dave's house the next day. Bud loves beer. In fact, he loves beer so much he named himself and his company after his favorite beer. Being a longtime friend of Bud, Dave knows how much Bud loves beer and takes him to a nearby bar to celebrate their new contract. Unfortunately for Bud, he begins working the next day with a really bad hangover and shocks his employee, Mike, with a frayed wire. Mike passes out and is rushed to the hospital. Which of the following statements best describes who is responsible for Mike's injury?

Bud and Dave are both responsible because Dave negligently chose Bud to work for him, and Bud is responsible for his own torts

Candy owns a nail and hair salon. She reaches an agreement with Todd, an independent contractor, allowing him to do nails in her salon three days per week. Todd has a sign on his desk informing his customers that he is an independent contractor of the shop. After working for a month, Todd asks Candy if she has been paying appropriate social security taxes for him. He also informs Candy that Phyllis, a customer, is preparing to sue both Todd and Candy based upon a nasty nail fungus she developed after having her nails done by Todd. Which of the following is true regarding legal responsibility to Phyllis, assuming negligence on the part of Todd can be established?

Candy does not owe Phyllis any amounts.

Samantha has recently opened up a business. She started by herself but eventually added employees. Alex is one of the employees and has the ability to make decisions on Samantha's behalf, including entering into a contract. Alex then goes out and makes, on behalf of Samantha, a contract with a third party. Later, the third-party claims that Samantha has breached the contract. For the contract he entered on Samantha's behalf, Alex:

Cannot be liable at all

Chaco and Howard are both general partners at a business firm, Ham, Ham, McGoo (HHM), which is a Limited Partnership (LP). Kim is a limited partner that works for HHM, so she does not participate in day-to-day management decisions or otherwise run the business. Jamie and Everette are both employees who work in the mailroom. In the midst of a financial crisis, HHM was forced to declare bankruptcy. Who will have his/her/their personal assets seized by the creditors of HHM?

Chaco and Howard are both general partners at a business firm, Ham, Ham, McGoo (HHM), which is a Limited Partnership (LP). Kim is a limited partner that works for HHM, so she does not participate in day-to-day management decisions or otherwise run the business. Jamie and Everette are both employees who work in the mailroom. In the midst of a financial crisis, HHM was forced to declare bankruptcy. Who will have his/her/their personal assets seized by the creditors of HHM?

Choose the True Statement:

China's agency and partnership law is more similar to that of the United States than is the agency and partnership law of Mexico.

Which of the following scenarios does NOT illustrate one of the advantages of forming a sole proprietorship?

Chris went to school for nutrition management and decided to start his own business as a nutritionist. He decides to form a sole proprietorship, believing that he would benefit from limited liability in this business format.

Cole is not a fan of a recently passed alw. He believes it is morally wrong and has tried to convince the government to void the statute. His attempts fail, and Cole decides to protest the law by breaking it. This is an example of:

Civil disobedience

Alan and Nick are arguing about the different codes of law. Nick's main argument is that law is not God-given--rulers should also have to obey the law. What code of law serves as the earliest (oldest) basis for Nick's argument?

Code of Solon

A code of law(s) is a:

Collection of statutes.

Jamie was extremely interested in law, and he wanted to travel across the world to see how the legal systems differed, depending on where he went. The first place Jamie went was California, USA, where he saw that the law had roots in English law. He then traveled to Belgium where he noticed that the law relied upon statutes already set in place. Lastly, he traveled to Sudan where he saw law based on religion. Which type of law did Jamie see in the order of his travels?

Common law, Civil Law, Islamic Law

Which of the following is not a reason for overcoming stare decisis?

Contrary moral opinions

In Connecticut, Adam and Peter are fiduciaries for Adam's Bakery and its shareholders. They disclosed a corporate opportunity, without notifying shareholders/the board of directors, to Peter's brother. Since their disclosure was not told ahead of time to disinterested directors, Adam and Peter can be held liable for a breach of ________, but will not be if they can clearly show that _______ .

Corporate Opportunity Doctrine, the exploited opportunity caused no harm to the corporation

A lawyer is required to reveal __________________ to ___________________ ?

Corporate misconduct at his/her corporate client; to senior officers of the corporation

Which statement about corporations is true?

Corporations are subject to double taxation.

Which of the following reasons could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or general partnership?

Corporations generally find it easier to raise capital

The Smith-Kind Corporation filed its articles of incorporation with the state but forgot to include one item of information required by statute. Nevertheless, the state overlooked the omission and issued Smith-Kind a corporate charter. Smith-Kind will be operating as a(n):

De facto corporation

Brock just got out of Business School. He is trying to form a corporation, but he has no idea where to establish the headquarters of the business. He is flexible and can go anywhere in the United States. He comes to you for advice. Which of the following choices is the best place for Brock form his Corporation?

Delaware

Which U.S. state is considered the preeminent corporate authority due to extensive court precedence and a very corporate friendly Court of Chancery?

Delaware

Many corporations incorporate in Delaware because:

Delaware laws ordinarily do not restrict the powers and actions of management

A publicly traded American corporation might choose to be incorporated in Delaware for all the following reasons EXCEPT FOR:

Delaware places more restrictions on selling or mortgaging assets, and weaker restrictions on merging businesses which makes it easier to fight hostile takeover attempts.

Which of the following best describes a formation of a general partnership under the Uniform Partnership Act?

Demi and Toni have a proprietary cosmetic idea that they wish to bring to market. The two come together as joint owners, agreeing to run the company together and to share in the profits and losses.

States have chosen to authorize the limited liability company because:

Depending on the issue, LLCs are treated like either a partnership or like a corporations.

Suppose that many of the shareholders in Jones Corporation feel like those in control of that Corporation and remedy a wrong suffered by Jones Corporation. Therefore, the shareholders can take action in the form of a...

Derivative suit

Choose the False statement:

Dicta, commonly referred to as the "holdings" of cases, are propositions that are decided by a court when it is determining what the rule of law should be.

If the hire appears to be an alter ego for the hirer, then the hiree may be assuming personal liability while executing which fiduciary duty?

Duty to obey instructions

Ned, Catelyn, and Peter decide to start a business. Peter solely wishes to serve as a passive investor. In exchange, Ned and Catelyn will split the losses amongst themselves and Peter will take less than a third of the profits. Ned and Catelyn agree. They file the appropriate paperwork with the State. After a year of profitability, the business begins to fail. Ned and Catelyn quickly learn that Peter opened up a business that was directly competing with theirs. Ned and Catelyn file a claim against Peter. The claim will:

Fail because Peter owed no duty to the business.

Sarah decides to do some modifications to her house. She hires M&L to do some plumbing work for her. M&L assures her it will do quality, and quick, plumbing work. Sarah is unaware that one of the M&L workers has a violent personality. One day, while working at Sarah's house, an M&L employee gets into an altercation with one of Sarah's neighbors. The neighbor is hurt and decides to sue Sarah. True or False: Sarah will be liable for M&L's actions.

False because M&L is an independent contractor.

STATEMENT 1: True or False: It is the attorney who holds the attorney-client privilege, but the client can waive the privilege in the presence of a third party. STATEMENT 2: True or False: A contingency fee is charged only if the case is won. If the case is lost, the client does not have to pay any fees or other costs. STATEMENT 3: True or False: Matthew Hale was denied admission to the Indiana Bar due to the fact that he was an admitted racist.The correct labeling of these statements (1, 2, and 3, in that order) is as follows:

False, False, False

Consider the facts from the previous question on the lemonade stand. Now add this: Timmy's lemonade stand has become a massive success. Monica hires an attorney to create a corporation, LT's Lemons (LT), and Monica is the majority shareholder of the company, which receives a corporate charter from the state. LT opens lemonade stands all across the country. Hugo, a customer, purchases some bad lemonade and becomes ill. Hugo sues LT, and the verdict is more than all of LT's assets. Monica may be personally liable for Hugo's damages.

False, because LT and Monica's finances are separate.

Murdock was a daredevil and loved the adrenaline of stunts, but his neighbors quickly grew tired of his antics. After his last stunt involving fireworks and an explosion in his backyard, his neighbors decided to support a proposed law. The law would, at last, specifically make it illegal to do stunts in residential backyards. The next day, after the law passed, Murdock is served a summons. True or False: Since Murdock violated the newly formed law, he can be found guilty.

False, because it was not illegal at the time he did the stunt.

Shrek, a law student, is doing research about court cases in a faraway land. While online, he finds the case he is looking for, and the following summation is shown: Farquad v. Fiona, 808 N.E. 2d 301 (New York, 2004). As a competent law student, Shrek can assume which of the following:

Fiona, the Defendant (or Appellee), was likely sued by Farquad, the plaintiff (or the appellant, although in some cases Farquad could be the defendant). The decision, in 2004, was by the New York Court of Appeals and published in the 2nd edition of Northeastern Reports.

Which judicial actions best represent stare decisis? The judge decides to:

Follow a higher court's ruling on the legal issue before the court

Jim, Bob, and Sally have agreed to start a business. Jim will be in charge of the day-to-day activities, Bob is a passive investor, and Sally will be the business' attorney and accountant (she is very smart). They agree that they will have an equal vote to make key business decisions. Jim will own 40%, Bob will own 20%, and Sally will own 40%. They will share in both the profits and the losses of the business. They do not file any paperwork with any government agency before opening their business. What type of organization have they created?

General Partnership

In corporation ABC, there are two boards of directors. It is required that one-half of one of the boards consist of union members. In which country would you most likely find this corporation and what are the names of the two separate boards?

Germany; supervisory and lower

Krista currently owns ten shares of stock in Corporation X. This accounts for 10% ownership in Corporation X. Krista has preemptive rights on those shares, which means that if Corporation X decides to sell 100 additional shares, it must do the following:

Give Krista the option to purchase 10 shares

Which of the following best describes an ethical issue regarding an attorney's treatment of a client's legal fees?

Herbert is a struggling solo practitioner that just landed a case with Suzie, who very much needed an attorney. Herbert knew the case would cost more to Suzie than what he communicated to her initially, but kept this information to himself.

Which of the following schools of jurisprudence is most definitely matched wrongly with the observation or idea stated following the school?

Historical School - law as logical series of steps.

Philosopher I was an optimist. He saw Law as an instrument to help people do what they desired. He lived in the Age of Enlightenment, and his writings had a great influence on the founding fathers of the United States. Philosopher II served on the board of directors at a hospital, and when he died reputedly only included the hospital in his will if it would keep him as a "member" of the board? Philosopher III, while mired in the midst of a bloody civil war, said that life is "short, nasty, poor, and brutish." Please identify these three philosophers.

I - John Locke; II - Jeremy Bentham; III - Thomas Hobbes

Which of the following are required to have an official partnership? I. Written contract II. Implied intent, or another form of intent, to form a partnership III. Express intent to form a partnership IV. Two or more persons carrying on a business for profit

II & IV

Which of the following are actions that can be taken by the Board of Directors: I. Full access to the corporate books for a limited amount of time II. Determination of dividend amounts to be given III. The ability to disapprove of a merger or acquisition IV.Altering the corporate bylaws V.Buy, sell, or lease corporate assets

II, III, IV , V

To be eligible to practice law in the United States, one must have: I. Four years of post-bachelor's degree law training II. Board certification in a specialized area of law III. Good character standing IV. Post-bachelor's Master of Law degree

III

In which of the following scenarios is attorney-client privilege present (and thus the attorney could not testify about these attorney-client communications unless the client gave permission for the attorney to do so)?

Igor meets with his attorney and the attorney's investigator in the attorney's office to discuss case strategies.

Jeff, a local Gainesville store owner, hires Jennifer as a sales associate. One day Jennifer decides to place an order for merchandise from a supplier without informing Jeff. Since Jennifer is not authorized to perform this task, Jeff gets very angry with her. However, even though Jeff did not want to place the order, he stocks the merchandise on the shelves just to see if they would sell. Based on Jeff's actions, Jennifer could now be considered an Agent because of the concept of _______________________.

Implied Ratification

Si's Tea Store hires Willie to manage its new store in Gainesville. Their employment agreement says nothing about Willie being able to hire employees to work in the store, but Willie has __________ authority to do so.

Implied authority

Jon was asked by his plaintiff-team to retrieve a Red Fire Truck case that would support the team's argument. Jon had just gotten out of law school three weeks earlier and was unsure what a Red Fire Truck case is. So, he asked his lawyer friend for help telling him what a Red Fire Truck case is. Which of the following explanation would Jon's friend give to Jon (assuming the friend knows what he is talking about)?

In order to prevent the defense from stating that the case used by the plaintiff-team to support its argument did not match the case at hand, a Red Fire Truck case is needed.

Michael Scott hires Dwight Schrute to find him a girlfriend. Dwight has specialized training in this area and will be paid once Michael has been set up on a date. Dwight works from home, not under the supervision of Michael. In this business relationship, Dwight could best be characterized as a(n):

Independent Contractor

David is the incorporator of a new corporation named PASS. In the application, he wrote that the corporate name is PASS and that the corporation would focus its efforts on helping students succeed in business law themed courses. David checked the box that PASS would last forever. Lastly, David filled in addresses and information about the hierarchy. A few days later, David is alerted that his application was incomplete. Which of the following did David likely forget?

Information about its number of stocks and the classes of stock.

Timmy decided to open up a lemonade stand. Timmy's sister, Monica, provided Timmy with the table, lemons, water, ice, and cups. She tells him how long he can sell and then heads inside the house they share. Unfortunately, business is slow. Therefore, Timmy decides to make a sign. The sign reads "Lemonade, Inc." Timmy finally receives a customer, Carly. She asks Timmy if she could use Timmy's logo on her own lemonade stands. Based ONLY on the facts above, which of the following best describes Timmy's form of business?

It is a general partnership because Monica invested and made managerial decisions.

A new law has been enacted by the State of Florida. The law makes it illegal for elephants to be tied to a parking meter without paying the standard parking fee. The punishment for violating the new law is a fine of $500 or up to 30 days in jail. The new law was enacted on January 1, 2021, but is retroactive to six months prior. On November 24, 2020, Kyle had parked his elephant at a parking meter without paying the meter. Kyle is arrested and sentenced to 10 days in jail. What is wrong with this scenario?

It is an ex post facto law.

Which of the following scenarios best describes an advantage of forming a sole proprietorship?

Jennie owned a successful shirt company and made a lot of money this year. She was able to pocket all of her profits and did not have to share with anyone else.

Jerome works as the Director of Human Resources for Big Business Inc. (Big). He is unpaid and never signed an employment contract. One day, he is told by Big's CEO, Olivia, that his employment will end in 30 days. In response, Jerome decides to sell off Big's hiring strategies and leaks Olivia's emails. Big and Olivia file claims against Jerome. A court will most likely find:

Jerome breached his fiduciary duty by exposing Big's secrets.

Tina met with an attorney, Jerry, for the first time to discuss Tina's minor involvement in a worthless check scheme. After the consultation, Tina decides she will not need his services after all. Later that day, Jerry sent an email to a co-worker, another attorney in Jerry's firm, casually discussing Tina's situation. Which of the following is most likely to be true?

Jerry did not breach the attorney-client privilege because he only shared the information with another attorney working in Jerry's firm.

Jesse, after taking a business law class, forms a chemical manufacturing corporation, Chem Co. (Chem). He is the sole shareholder. He does not keep records of any dividends and very little records of the corporation's accounts. One day, one of Chem's products injures a user and Chem is sued. Which of the following ordinarily is a reason for a court to hold Jesse personally liable?

Jesse served as the CEO, CFO (Chief Financial Officer), and CTO (Chief Technology Officer) of the company.

Jill was hired as a sales associate for Kates Cupcakes, an upscale dessert-and-drinks (smoothies, tea, coffee, and almost anything else imaginable). In her third week on the job, Kate, the owner, simply says to Jill, "Hey, Jill, we need a blender - when you get a chance in the next couple days, please buy a blender." Jill goes to Target, sees that there are five different models, all of which are newer and, in some ways, "better" than the older models Kates Cupcakes has been using. Deciding that in the long run it might be most cost-effective and more in keeping with the Kates Cupcakes image, ambiance, and products, Jill buys the most expensive blender that Target sells. When Kate finds out, she is furious and refuses to pay. Kate says that all she wanted was a simple blender. Who would win in court, Jill or Kate, and why?

Jill; she was working as an agent for Kate, the principal.

Scott, Matt, and Jim are brothers. Scott believes that above all, one must follow the law. He does not care about the law's morality. He will still follow it because it is law. On the other hand, Matt believes that a law should be followed if it helps the greatest number of people. He does not care about what the people want; he cares about what will benefit the people the most. Finally, Jim believes people will, if accurately informed, always choose to maximize their efficiency and utility. Which of the following is TRUE?

Jim believes in Law and Economics

Choose the True statement:

John Locke promoted freedom and his ideas were influential in the development of the U.S. Constitution.

Mary wants to remodel her kitchen and, after scanning the local advertisements, she decides to call John the contractor. Before calling John, Mary was sure to read the reviews left by former clients online, and all of John's reviews were positive. While John is working on the house, he gets into an argument with Mary's neighbor Erik about where John parked his truck. The dispute ends with John punching Erik and walking away. Erik intends to sue Mary for John's actions. What is the most likely outcome?

John is held liable, but Mary is not, because John is an independent contractor

Johnny is an investment banker preparing for the merger of two large companies. Once the merger happens, Johnny is sued because one of the companies committed fraud. The plaintiff argues that Johnny did not do enough to prevent the fraud of the company. Is Johnny liable?

Johnny is not liable. Johnny did his due diligence in using the information provided by the companies to conduct the merger.

When two distinct corporate entities enter into a business together to carry out a short-term enterprise, typically for a rather specific (constrained) purpose, the resulting business format is most likely to be a:

Joint Venture

Which of the following examples best demonstrates the fundamental principle that the rule of law must be enforced in order to have meaning?

Judge Huck heard a case concerning a breach of contract issue. The law in his state was that all contractual ambiguities are interpreted against the drafter of the contract. Judge Huck applied this law in coming to his decision on the alleged breach of contract.

Under the commerce clause _________________

Judges could strike down state laws that interfered with the free flow of interstate commerce, even if they did not conflict with an actual federal statute.

What does the doctrine of precedent mean?

Judges must apply the law set out in the relevant decisions of higher courts in the same jurisdiction and sometimes courts of the same standing (level) in the same jurisdiction.

Which of the following scenarios best exemplifies an independent contractor ?

Kennedy was recently hired by an accounting firm to complete an audit. She gets paid at the end of the job.

Chung hires Khan, an intelligent, experienced businessperson, as Chung's agent to negotiate deals. Unfortunately, Khan loses his negotiating touch while talking with a potential buyer, and a possible deal instead ends up in a physical fight between Khan and the person with whom Khan was negotiating, a man named Johnson. This injured person, Johnson, decides to sue. Who may be required to pay for Johnson's damages?

Khan, as one personally responsible for his own torts.

Jamie is an accomplished fencer. His skills are so impressive that he has received a full-ride scholarship to a prestigious school in Romania. Prior to the start of term, Jamie is working with his friend Locke to build a birdhouse. The two boys use a table saw to cut the larger pieces of wood into more manageable pieces, and in a freak accident, Locke cuts off Jamie's hand - effectively ending his fencing career and any chance of him attending the school in Romania. In a fit of rage, Jamie decides to cut off Locke's hand. This is an example of:

Lex Talionis

Josh and Meg are siblings and like to prank each other. One day, Meg puts hair dye in Josh's shampoo. Josh decides to get back at her and places body paint in Meg's soap. This is an example of what?

Lex talionis

Penny and Rachel want to be successful in life, so they decide to start a Limited Liability Company (LLC.) called Dream On. Dream On is found on making young kids become successful by giving them big goals to achieve through their lifetime. Penny and Rachel are thinking of changing Dream On into a General Partnership. Which of the following is not a benefit for Penny and Rachel to keeping Dream On as a Limited Liability Company?

Limited Liability Companies are easier to form and do not require filing with the State to be formed

Fred and Daphne, both of whom despise taxes but do not mind filing papers with government agencies, decide to start a business where they solve various crimes. Fred wants to manage and control all aspects of the business and does not mind being held liable for any given circumstances. However, Daphne does not want to be as involved in the business or as responsible for problems or damages to others; and she only invests a small percentage into the business in exchange for small profits on her investments. Daphne's role can best be described as a(n):

Limited Partner

Tom goes into business with Joe opening a line of pizzerias. Tom only invests money into the business, while Joe runs the day-to-day management. Tom only risks what he puts in, but Tom does not have any control over the business. What term best describes Tom's role?

Limited Partner

Which of the following is LEAST LIKELY to be a situation in which there is implied authority for an agent acting on behalf of a principal?

Making a contract with a new company, for a new type of expensive product the principal's business has never used, but a deal that seems to be "common sense" to the agent

Manny, Moe, and Jack open an automotive store together that becomes very successful. Moe and Jack only made financial contributions to the venture where Manny actually ran the store. A large part of the store's success is due to the excellent location. When their lease is up Manny decides to renew the lease, but only in his name. Which of the following is most accurate?

Manny cannot sign the lease in his name only because he has a duty of loyalty to the venture.

Which of the following scenarios would NOT prevent any lingering authority?

Mecha LLC fired its employee, Ricardo, but Mecha LLC did not inform any past, current, or prospective customers about Ricardo's termination.

Manny Manager is trying to decide whether he should consider Paul to be an independent contractor or an employee for tax purposes. Manny pays Paul a salary, but also occasional commissions, and the two have long had a continuing relationship. In fact, Paul has been working for Manny so long that Manny has allotted him many freedoms, including the ability to determine where, when, and how he wants to work. Even though Paul performs the same type of work as the employees in Manny's business, Paul usually works at home in his pajamas without the supervision of Manny. As long as Paul completes the work on time, Manny has no qualms. However, Manny does require Paul to do all of his work using the laptop provided to him by the company. Given this information, which characteristic concerning independent contractors and servants (employees) is most likely to give Manny the most trouble in terms of Manny's attempt to have Paul classified as an independent contractor?

Nature of Work

A court system in which cases are decided based on the decisions of previous cases would most likely be found in which of the following countries?

New Zealand

Nick works for Mercedes Benz car dealership in Coral Gables, Florida. One of his jobs with Mercedes is to drive to customers' houses throughout Miami and provide customer service support by teaching them how to use their newly bought Mercedes' car. On his way to a client in Miami Beach (about 20-30 minutes from the dealership), Nick decides to take a detour and drive two hours west to Naples to have lunch with a woman he met online. On his way to lunch, Nick crashes the car and injures two people. Which of the following situations correctly states who is liable for the damages of the crash?

Nick was liable because he was engaged in a frolic and detour. Mercedes is not liable

Jake owns 300 shares of State Ranch. Jake is not an officer or a director of State Ranch. Jake hears about a new opportunity with State Ranch's competitor from his brother. Jake acts on the knowledge and buys the stock of State Ranch's competitor and makes a lot of money. Is Jake liable for acting on the tip?

No, because Jake is only a shareholder.

Claudia is walking down the street when she is approached by a man named Arnie (whom she had never met or otherwise dealt with before). Arnie claimed to work for Pure Brush Company. Arnie was recently fired by Pure Brush Company for being drunk on the job. After it fired him, Pure Brush Company put a notice in a national newspaper and in a trade journal for its industry stating that Arnie was no longer an agent of that company. Claudia does not read the newspaper and thus does not learn that Arnie is no longer an employee of Pure Brush Company. Arnie offers to sell Claudia an asthma brush that retails for $499 for only $459 if she pays in cash. After viewing Arnie's Pure Brush Company asthma brush, Claudia agrees to buy two brushes. Arnie charges her $1200 due to a "handling charge," and when Claudia asks for a receipt, the man says that it will come in the mail with the brushes. When Claudia receives her brushes, she finds out that her two brushes are actually just paint brushes, and not the Pure Brush Company asthma brush the salesman showed her. She calls up Pure Brush Company demanding a refund for her fake brushes. Is Pure Brush Company liable?

No, because Pure Brush Company gave constructive notice of Arnie's termination.

Bill and Jessica are in the middle of a divorce. Bill and his lawyer reach an agreement on the legal fees for his divorce case. His lawyer is entitled to a 25% contingency fee of any settlement or award. Is this a legally enforceable fee agreement? Why or why not?

No, because contingency fees are not applicable in family law

Alexis is a public defender and her client, Pete, is accused of multiple murders and kidnapping. While the two were speaking, Pete mentioned that people he kidnapped were no longer alive and that Alexis should not tell anyone. After they finished speaking, a parent of one of the victims, Diane, asked Alexis if her child was still alive. Alexis told Diane that she does not know. After the trial, the public learned that Alexis knew about the status of Diane's children. Diane suffered physical harm because of her distress. In retrospect, when Diane asked her question to Alexis, was Alexis permitted to breach confidentiality?

No, because it was not likely that disclosure would prevent death or bodily harm.

Michael, a Defendant located in jail awaiting his trial, informed his attorney that he kidnapped, Mary, a 14-year-old girl. The Attorney asked questions to Michael, such as "where is the little girl located?" "How long has she been there?" "Why did you take her?" After hearing the answers to these questions, the Attorney is greatly concerned that Mary is still alive but in grave danger. The Attorney failed to inform anyone of this information. Mary's body was found six years later. Should the Attorney get in trouble for failing to reveal Michael's secret? Why?

No, because the Attorney was under no obligation to reveal this information about his client.

Frida sues Miranda in state trial court in Gainesville, Florida. Frida alleges Miranda breached a contract which required Miranda to make 50 unique paintings. Frida had planned to sell the paintings in her new store set to open last week in downtown Gainesville. Frida finds an identical case which was presented to the Georgia Supreme Court; that court ruled in favor of the plaintiff. Must the Florida court rule in Frida's favor because of the Georgia Supreme Court case?

No, because the case is only persuasive; the judge may take this case into consideration, but it is NOT binding.

Leonardo is a creative person that has been an employee for Creations Corp. for less than a year. One day, because of lagging sales, Creations Corp. instructs him to come up with a new revolutionizing product. As a result, Leonardo immediately starts to develop a new engine powered by cold fusion and wants to finish it within a month to help his employer increase sales for the next quarter. However, as time passes by, Leonardo is also distracted by his other creative endeavors, and the new engine does not seem to work properly. So, Leonardo independently decides to take one of the prototypes of the engine to his house to have more time to work on it, but, during one of his tests, the engine's components set fire to his neighbor's house. Can the neighbor sue Creations corp. under the doctrine of respondeat superior?

No, because the conduct did not occur at an authorized place and time of employment.

Angela is the governor of Alabama. Angela recently implemented a new state law on foreign policy applicable exclusively within the Alabama border. Rachel, a resident of Alabama, files a case in Alabama federal court questioning the constitutionality of this new law. Is it constitutional? Why or why not?

No, it is not constitutional. The states do not have jurisdiction over foreign policy.

In the spring of 2019, Squidward, who was married to Sandy, committed adultery, which in that jurisdiction (State J) had not been a crime since the 1800s. State J has a three-year period for the statute of limitations involving all crimes but murder. Sandy filed for and obtained a divorce in August 2019. In December 2019, Sandy married a powerful State J legislator named Patrick. In April 2020, State J enacted a law that made adultery a crime. Consequently, Squidward and several other persons in unrelated cases were convicted of committing adultery and fined a large amount of money. Is this permissible?

No, this would be considered an ex post facto law, which is prohibited under Article I, Section 9 of the U.S. Constitution

Aaron Avarice is a lawyer in Gainesville. He wants to open his own private practice as a personal injury litigator. His first client is Hapless Herb, a law student who tumbled down the stairs of a nearby bar because the handrail was missing. Hapless has already defaulted on his interest payments for his student loans and is in poor financial shape. Aaron assures him he has nothing to worry about: the attorney fees will come directly from what Hapless recovers from the defendant, known as a contingency-fee basis. Hapless mentions that the owner of the bar offered him $3,000 to settle the case and avoid litigation, an offer which Hapless declined. Aaron chortles and tells Hapless he will recover a lot more than that in court. Later, during negotiation, Aaron accepts on behalf of Hapless $24,000 from the defendant. Aaron extracts his 33.33% contingency fee and hands Hapless a check for $16,000. According to the good contingency-fee practice followed by most lawyers, has Hapless gotten what he's due?

No. Since Hapless was offered $3,000 prior to retaining Aaron, Aaron should have extracted only $7,000, 33.33% of the final settlement amount less the initial offer of $3,000.

Teddy is a shareholder of Chests and More, Inc. He has consistently owned 9% of the company, with these shares valued at $65,000 currently; and Teddy has been a shareholder since the company was founded. Recently, Teddy discovered that the board has been making poor business decisions that put the company further and further into debt. Teddy files a derivative suit and in the complaint offers strong proof that a demand would have been futile. Is there any issue with this derivative suit?

No. Teddy followed all the requirements.

Randy, a part-time employee of a large corporation, confides in the corporate attorney, Matt, about his laundering of company funds. Randy tells Matt he is guilty and provides explicit details about the operation. Randy tells Matt that he needs help getting out of the money laundering scheme, so he does not get fired and sent to jail. Matt provides Randy with advice to the best of his ability. Matt in turn alerts the board of directors for the corporation. When Dan, the CFO, learns of Randy's operation, he fires Randy. Did Matt violate the attorney-client privilege?

No. The Sarbanes-Oxley Act (SOX) obliges Matt to alert Dan of Randy's ongoing money laundering scheme

In a limited partnership, which partners are most protected from personal liability?

Non-decision making limited partners

Jeff is a volunteer at a Hospice Thrift Store. Jeff's large nametag clearly states that he is a volunteer. Christian comes into the store and offers Jeff a one-year contract for a food service to be operated out of the store with Hospice getting 20% of the profits and Christian getting 80% of the profits. Jeff is always hungry when he volunteers; so, with a huge laugh and shouting, "Even us volunteers need to eat," Jeff quickly agrees. The manager on duty overhears the exchange, loudly laughs, and does nothing. Hospice refuses to allow Christian to operate a food service in the thrift store. Who is liable for the alleged contract?

None of the above. Hospice, for up to 80% of any losses sustained, Jeff and Hospice, each completely, Hospice only, or The manager on duty only

Theresa was recently in a car accident. The other driver was texting and driving and drove through a stop sign, striking Theresa's vehicle. Theresa was taken to the hospital by ambulance and received treatment to determine whether she had any injuries from the car accident. Fortunately, Theresa did not have any damages, but it took her one trip to the hospital by ambulance, one X-Ray, one MRI scan, and one blood test to figure it out. Now she owes the hospital $3,000 for these tests and fees. A recent court opinion was released holding that a plaintiff in a car accident is entitled to receive compensation for the medical expenses he or she incurs in efforts to determine if there are any injuries from the collision. If Theresa files suit in Florida state trial court, will the court be bound to follow this other recent court holding?

Not if it was from another Florida state trial court

Tom is a large fan of a soft drink called "Snake Juice". He decides to become a shareholder in the manufacturing company, Fang, Inc. (Fang). Tom buys a majority of the shares. Fang experiences a large amount of success. Tom decides to celebrate by providing his friends with cans of Snake Juice. Unfortunately, Tom's neighbors become sick from the soft drink and decide to sue Tom and Fang. Who is liable?

Only Fang because it created the product.

Ten friends get together every Wednesday night to watch movies at one friend's home. They are not a chartered club or any other formally or legally recognized group. They take turns hosting the "Wednesday Movie Club" at their homes and providing snacks for all the members. One night, it is Reeba's turn to host, and all the other nine friends agreed with her post on the group's Facebook page that the movie everyone chose sounds best when on surround sound speakers. Wanting to be a good host, Reeba installs new speakers at her home on Tuesday. On Wednesday night, she hands out bills to all of the members to split the cost of the speakers. Who is legally obliged to pay for the speakers?

Only Reeba; she cannot rightfully bind the entire group.

Amanda and Alena own a general partnership named "The Theatre Boutique," which sells theatre props to theatrical professors. Alena notices that the lease on the building of "The Theatre Boutique" is running out and renews the lease solely in her name, signing it, and declaring the partnership void. Amanda:

Should take Alena to court for violating her fiduciary duty.

Sam invested $10,000 in a limited partnership with Michael and Fiona. Sam was a general partner in the limited partnership. The partnership failed to pay Jesse $30,000 for services on behalf of the partnership. Which of the following statements is generally correct regarding Sam's liability?

Sam is liable for $30,000 because Sam was a general partner

Juana is the chief financial officer of Yanni Inc. Which Congressional act requires officers such as Juana to swear "to the best of her knowledge" that her financial reporting is accurate?

Sarbanes-Oxley Act

Sylvia is the CFO of Soul Cuts, Inc. In her position as CFO, Sylvia decides to underreport her company's profits in order to save money on the tax bill. By not making an accurate financial report "to the best of his knowledge" She is in violation of which Congressional Act?

Sarbanes-Oxley Act

Charles tragically passed away while snorkeling on vacation. He left behind a large multinational corporation, of which he was the CEO and a major stockholder (10% of all the common stock) and several hundred thousand dollars in cash, the source of that cash being entirely unclear - although it may be corporate property. Which of the following parties would not be required to act as a fiduciary in regard to the allotment of the discovered money?

Shareholders of the corporation

Choose the true statement:

Shareholders rarely have any significant managerial powers in their roles as shareholders.

PJ is employed by Terrific Trucking Corporation. His job is to drive and deliver goods around Gainesville, Florida for the corporation. One day on the job, PJ gets very hungry and decides he is going to go through the drive-through at a local fast food restaurant. While going through the drive-through, PJ's large delivery truck damages the restaurant. The restaurant owner decides to sue for damages to the building. Who will most likely be held liable?

Terrific Trucking Corporation will be held liable because PJ is an agent of the corporation and was behaving within the scope of the principal's control.

Which Constitutional Amendment protects citizens from violations of due process?

The 14th Amendment

Tessa scheduled a meeting with a potential entrepreneur who wishes to invest in a corporation. Tessa is on the board of directors for Buffa Bortolotti Corporation, and she also serves as a key employee. While talking with the entrepreneur, Tessa realizes that the entrepreneur would be a great source of capital for her sister's new florist business. Tessa suggests the entrepreneur invest in her sister's new business. After the meeting, Tessa's sister gets a $2,000,000 investment from the entrepreneur. Buffa Bortolotti gets nothing. Tessa violated the:

The Corporate Opportunity Doctrine

In Utah, twelve individuals decided to sponsor several Little League teams and created a league, called The Golden Spike Little League, in which the teams could compete. These sponsors also purchased uniforms and equipment from a sporting goods store racking up a bill of over $4000. The sporting goods store demanded payment while the individual sponsors claimed that they were mere "agents" of the league itself and should not have to pay for the merchandise individually. The Utah Appeals Court rejected the defense made by the sponsors and subsequently forced them to pay for the merchandise individually because

The Golden Spike Little League was considered a voluntarily formed organization with a non-existent principal

Ryan, Kyla, and Jeremy are all general partners in a business. Ryan suddenly and unexpectedly passes away. Assuming there is no partnership provision covering these matters, what happens, under traditional rules, to the partnership?

The Partnership automatically terminates and Kyla and Jeremy must dissolve the business.

Josh and Taylor were having one of their classic political debates when the topic of recreational marijuana came up. Taylor was distinctly in favor of legalizing recreational marijuana, citing its potential economic and medical benefits. On the other hand, Josh believed that the legalization of a gateway drug such as marijuana could open the door for the legalization of other, much more dangerous drugs such as cocaine. Josh expressed a principle or concern that most resembles what?

The Slippery Slope Argument

Choose the True statement:

The United States uses a common law judicial system, where the understanding of the law is developed through a progression of judicial rulings

Tracey is a door-to-door saleswoman for a cooking knife distributor. She speaks to families and businesses in order to make a sale. Tracey also has a tendency to get speeding tickets, which her employer often pays as a business expense. One day, Tracey is on the phone with a buyer while driving through a neighborhood. She crashes into a car pulling out of its driveway. Tracey's employer refuses to pay because Tracey told the employer that she was going to be in the business district. The driver, Harold, is wondering from whom he can recover.

The employer, because Tracey was acting within her authority.

Lizzie the law student reads two conflicting statutes—one state (published in 1950), one federal (published in 1975)—about interstate commerce. Which statute would prevail?

The federal statute, because of the supremacy clause

John, Michael, and Sarah, founders of a worldwide corporation, wanted to change specific provisions in their corporation's charter. What process should they take in order to complete this action?

The incorporators should execute a formal Articles of Incorporation through the state's corporate commission.

Jack and Jill are shareholders in "Ben & Jerry's" corporation. Together Jack and Jill file a shareholder's derivative suit against the directors of "Ben & Jerry's." Jack and Jill win their lawsuit, and a monetary judgment is issued against the corporate directors. Who receives what the directors have to pay?

The judgment is paid directly to the corporation

Ben needs his lawn mowed. He decides to have his lawn cut by a local lawn service he sees advertised in the paper. Afterwards, Ben is very happy with the services work, and Ben decides to use its services permanently on a weekly basis to keep his yard looking pristine. Several months later, upon a usual trim of Ben's grass, the man using the riding lawn mower has had several alcoholic beverages. He drives the mower into the neighbor's flowerbed. When Ben arrives home, he realizes what has happened, and quickly confronts the man. He says the neighbor wants to sue for damages. The most likely outcome will be:

The lawn service is solely responsible

The power to tax was brought into question in NFIB v. Sebelius in 2012. The tax was upheld because:

The penalties were taxes intended to raise money, not serve as punishments

Choose the False statement:

The penumbras of the Constitution allow for the national laws to apply to state cases as well.

Chris, a former Coldstone Creamery ice cream store manager, was recently fired for improper actions that caused the business to be unprofitable. Chris had been a longtime employee and friend of the store's owners (it is a Coldstone franchise - hereinafter referred to as the Coldstone Franchised Store - "CFS"); so the CFS owners just told Chris his services were no longer appreciated and did not bother to notify anyone. Chris, determined to be in the ice cream industry, decides that he is going to open his own ice cream parlor. However, with no backing or contracts with any suppliers, he knows it will be extremely difficult and expensive to purchase ice cream. He decides that he will use the same supplying company he used while at CFS, and just tells that supplying company that he is making the order for CFS when actually it is going to his new store. A few months go by and once again Chris is not making a profit; as a result, he misses a payment on one of his orders from the supplier. The supplier, therefore, sends a bill to the CFS asking for the money; but CFS's owners have no idea what the bill is about - they insist that Chris had been fired a long time ago. Which of the following is most likely to happen?

The supplier has a case against CFS because even though that business fired Chris, CFS never gave any form of notice to anyone, therefore leaving Chris with lingering authority.

According to lectures, it can be argued that the large number of law schools nowadays may find justification for their existence by promoting which of the following?

The utility of studying the law.

Which element is not necessary to form an agency relationship?

There must be some consideration for the services performed.

Will owned the biggest sporting goods store in town. The store sold both sports apparel as well as sports memorabilia such as autographs and title rings sold by now bankrupt athletes. Will employed Tim and Steve to run the store. Will placed Tim in charge of the selection and ordering of the sports apparel because Tim has expertise in that area and has no knowledge of memorabilia. Steve was put in charge of purchasing and selling sports memorabilia because he has knowledge and background in that arena, but does not have knowledge and experience with sports apparel. One day, when only Tim was at the store, a salesman who had sold to the store before - always dealing only with Steve, came in with a football autographed by a Super Bowl MVP and local legend. Tim signed a contract to buy the football, thinking that the store could not miss such an opportunity, but the autograph turned out to be a fake. When Will returned to the store, he threatened to take the cost of the football out of Tim's paycheck. Did Tim have the authority to bind the store to buy the football?

Tim did not have authority to bind the store to purchase the football because the purchase of memorabilia is outside the Tim's area of expertise.

Businesses have attempted to claim hired persons as independent contractors instead of as employees for all of the following reasons except:

To avoid being classified as a corporation.

Choose the True statement:

To distinguish a case and to label language in a judicial decision, as "dicta" are both methods of avoiding an unfavorable precedent.

Steve and Tony form a crime fighting business. During one of their jobs, they caused a lot of damage. They are now worried that the town they damaged will sue them to recover. There is not a lot of value in the business, so the city will likely go after Steve's and Tony's personal assets. Pick the correct conclusion: True or False: Since they organized as a partnership, the city will recover from Steve's and Tony's personal assets.

True because partnerships have unlimited liability

Soto hires Steve, his best friend, as a delivery driver for Soto's business. Unfortunately, Steve has a history of texting and driving and has caused many accidents because of it. Soto does not know about all of Steve's accidents, but he knows several of them. Also, Soto has the right to drive the vehicle that Steve is driving. True or False: If Steve has an accident while delivering, Soto may be directly liable for the damage.

True, because Steve was improperly chosen.

Choose the true statement:

Two key advantages of a corporation are perpetual existence and the limited liability for owners in their role as owners.

Which one of the following is not one of the five elements of the Business Judgment Rule?

UnforeseeableCircumstances

Which of the following acts is most likely to cause a court to pierce the corporate veil?

Using corporate assets for the owner's personal purposes.

"The greatest good for the greatest number of people." To which theory of law would this statement best be attributed?

Utilitarianism

Which of the following is NOT a factor relevant to the inquiry as to whether someone is an employee?

Whether the individual is a citizen of the country in which this duty is being performed

Every Saturday night, Maggie and a group of friends go bowling as part of their activities in Baystate Bowling League LP ("Baystate"), a group of bowling aficionados that have formed a limited partnership dedicated to reviving the sport. Baystate sells T- Shirts, shoes, balls, and other items as well as the services of bowling coaches who instruct paying customers in how to be better bowlers. This Saturday, Maggie, a general partner in Baystate, calls ahead and makes a contract with Bob's Bowling Alley Company ("Bob's Co.") to reserve the use of two bowling lanes for Baystate. Does Bob's Co. have a legal contract with Baystate to pay for the reservation and fees?

Yes, Bob's Co. has a legal contract with Baystate. Regardless of whether Maggie and her friends actually get together every Saturday night to go bowling, Bob's Co. can consider Maggie to be an agent who can bind Baystate.

Kelly owns a produce stand and is running low on apples and bananas. She asks her employee, Sam, who regularly buys various fruits and vegetables for the store, to go to the store and buy some more apples and bananas. Sam notices that Kelly is also running low on grapes, so Sam also buys them at the store. Is Kelly bound by Sam's actions? Choose the best answer.

Yes, Sam had express authority to buy apples and bananas, and implied authority to buy grapes.

Charles Sullivan, a poor man, has been accused of stealing clothes from his local Wal-Mart. When Charles first appears before the court, he is assigned a public defender. Outraged at the judge's presumption that he recognizes the authority of the government, Charles immediately declares that he is a sovereign citizen, does not need to follow the laws of the land, and that he will be representing himself. Charles states that he has studied the United States Constitution and that he knows enough about the foolish laws that our society has implemented to represent himself successfully and have the charges dismissed. May Charles, as a self-proclaimed sovereign citizen, represent himself in a court of law?

Yes, an individual is entitled to act for himself, regardless of his level of knowledge about the law.

Quinn is the sole owner and shareholder of Trucks & More. Brena was browsing the selection of 2021 Ford trucks when Truck's & More's employee hits Brena with a truck. Brena is in the hospital for five days. Brena receives a $200,000 judgment against Trucks & More. Brena learns that none of the vehicles on the lot are owned by Trucks & More and that the business is insolvent. She also learns that when people buy vehicles from the lot all the money is transferred to Quinn and not the business. Also, all the vehicles are being sold as new, but when new vehicles come in that Quinn likes he will drive them until a new vehicle comes he likes and reset the odometer. Brena wants to collect her judgment from Quinn. Will she be successful?

Yes, because Brena can pierce the corporate veil.

Dan is a paralegal for a commercial real estate law firm. He was recently fired after the company learned that he was altering the standard contracts and providing for less commission for the real estate agents and brokers, and more for the firm. After being fired, he continued to work on outstanding deals without informing clients of his termination. He continued to use the altered version of the contract he had stored on his computer with these clients. At closing, one of the deals fell through because of some misunderstandings arising out of his artificial contract. The clients then lost their security deposit to the other party for backing out of the deal. To get back their deposit, they sued the other party, Dan, and the law firm. Was the law firm obligated to notify the clients that dan no longer worked for them?

Yes, because Dan was the assigned paralegal to their deal

Manny Monopoly hired Ms. Tina Thimble to sew his clothes. While Thimble was passing through "Boardwalk," she made a deal on behalf of Monopoly and bought him the property. After being extremely angry with Thimble for a few days, Monopoly changed his mind. He thanked Thimble for exercising good judgment and forwarded the funds for the property. Does Thimble have an agent relationship with Monopoly?

Yes, because Monopoly expressly ratified her actions.

Ronald was recently fired from Burger World. This made him so upset because Ronald was the face of the company and almost everyone who saw him still thought, "Burger World." So Ronald decided to get revenge by making and then handing out authentic-looking but fake coupons for free Burger World food. Ronald wore his Burger World outfit and told people that he was part of Burger World's outreach program. Thousands of customers show up at Burger World outlets with the coupons and demand the free food. Will Burger World be liable for Ronald's actions?

Yes, because Ronald had apparent authority

Warren Buffet is a new stockholder of Wells Fargo & Co, a well-known bank. He has been a stockholder for around seven months and has 4% ownership in the bank, Buffet believes one of the managers is using the company's money for his personal use. He suspects that Jeff, the company manager, bought his private jet with the company's money; so, Buffet writes a written demand to inspect the financial books. Would Buffet be able to gain access to this information or not?

Yes, because he met all the requirements in order to review the financial books.

Professor Emerson tells his TA, Sara, to buy him new costumes because he can never have enough. He tells Sara to go to Spirit Halloween (a shop 20 miles away) and buy him $700 worth of new outfits. He gives her the key to his car so she can go to Spirit Halloween that day. She leaves the office at 11 a.m. and is on her way to buy the costumes when she realizes she is very hungry and drives a few blocks out of the way to get some food. At the small diner she visits for 15 minutes, Sara eats a quick meal (about ten minutes long), and then Sara drives back toward the main road leading to Spirit Halloween. A block after leaving the diner, Sara negligently crashes the car into a parked automobile. Is Professor Emerson responsible under respondeat superior?

Yes, because it was a detour and not a frolic.

Janice is a real estate agent for Coldwell Banker. There was a recent change in the law concerning the maximum legal amount of commission a real estate agent can charge on a closed deal. It is now less than what it used to be. Coldwell Banker sent out an email to all of its agents notifying them of the change, but Janice accidentally overlooked it. At her next closing, Janice charged the former legal amount of commission, thereby overcharging her clients. After the closing, she went through emails and found the email from Coldwell Banker. She notified Coldwell Banker of what she did and asked for advice. Coldwell Banker said not to worry about it since the law just went into effect the week before closing. They also warned her not to do it again. Janice's clients later learned about the new law and sued both Janice and Coldwell Banker. Do they have a claim against Coldwell Banker?

Yes, because of ratification

Zander represented Fred in a car accident case. After the case was over and the defendant wrote a check for the settlement, there was a disagreement between Zander and Fred as to how much of the settlement belonged to Zander and how much to Fred. Discussions broke down, and their dispute ended up going to court to decide how much each of them was to receive. Fred objected to Zander testifying to their discussions about the fee arrangement, claiming attorney-client privilege barred this discussion from being used in court. Can Zander testify?

Yes, because the dispute involves a fee dispute.

Leo, Raphael, and Mike open up a pizza restaurant as a general partnership. The business is operating well. One day, Leo examines the business records and realizes that Mike authorized a loan in the business's name. The loan had not been repaid and the amount of interest had grown quickly. Leo informed Raphael, and Raphael dissociated from the partnership. When the loan holder brought a claim, Raphael was included as a defendant. Is Raphael liable?

Yes, because the loan was taken out while he was a partner.

Tonya is the president of Big Corporation. Big Corporation is looking for land on which to build a new facility. Tonya locates suitable land but purchases it for herself with plans to sell the land at a profit at a later date. Rick, the majority shareholder of Big Corporation, hears about Tonya's purchase and complains to her about it. She tells Rick that she viewed and purchased the land on her own time and that she did not breach any duties owed to the corporation. Rick tells her that she should reconsider and that he plans to discuss the matter with the rest of the board. Did Tonya violate any duties owed to the corporation?

Yes, by buying the land for herself without disclosure to the corporation, she violated the corporate opportunity doctrine.

Paul was the vice president (VP) of sales and research at Bullish Business Inc., where he often makes very large contracts on behalf of the corporation. Paul is fired, and within 15 minutes of the termination Paul - while using his special company-provided Internet account as VP as well as using other company provided electronics that leave a Bullish Business Inc. "signature" for recipients of voice, data, or text - has bought thousands of dollars of merchandise from one of Bullish Business Inc.'s suppliers under the guise of still working for Bullish Business Inc. When the supplier does not receive payment, she sues Bullish Business Inc. Will the supplier likely will win the lawsuit?

Yes, due to apparent authority.

Sylvester is opening up a paintball park. Since it is too much for him to do alone, he decides to hire Mike. He asks Mike to run into town to buy some water for customers but does not mention that he would reimburse Mike. Sylvester also offers to let Mike use the company truck to drive into town. He does not mention the brakes stopped working on it. When Mike leaves, Sylvester starts laughing because he knows Mike is paid minimum wage for work that he would normally have to pay double that. Has Sylvester done anything wrong?

Yes, employers have a duty to warn of dangers they either know about or should know about & Yes, employers must pay expenses incurred to support the business

Lisa is a shareholder of a corporation. She recently learned that her brother, one of the corporation's officers, is not following the corporation's procedures. Can Lisa and her fellow shareholders obtain any relief?

Yes, shareholders can obtain an injunction against the company's doing what Lisa's brother authorized in violation of corporate procedures.

In 2015, Florida's 3rd District Court of Appeal (DCA) determined that pet owners could not sue a veterinarian for negligence. In the same year, Florida's 5th District Court of Appeals determined that pet owners could sue a veterinarian for negligence. In 2016, the Florida Supreme Court determined that pet owners could sue a veterinarian for negligence. Tony lives in an area governed by the rulings of the 3rd DCA and wants to sue his veterinarian for negligence. Based on the precedent, could Tony bring a suit against his veterinarian for negligence?

Yes, the Florida Supreme Court's holdings are binding on all lower Florida courts.

Augustine was Jack's personal lawyer, he helped him with many things including advising him on business contract negotiations. A month ago, Jack passed away. Ronny, one of Jack's children, demanded to know about his father's business negotiations. Does the attorney client privilege still apply?

Yes, the attorney-client privilege extends beyond the death of a client

Yolanda is a director of Smith's Real Estate Sales. The stated purpose of the corporation is the buying and selling of real estate property in Florida. Yolanda enters into a contract for the corporation to buy 50 antique cars. Yolanda thinks the contract will make the corporation a lot of money. A group of shareholders seeks an injunction under the ultra vires doctrine. Is this appropriate?

Yes. A group of shareholders can seek an injunction under the ultra vires doctrine.

Michael was arrested for financial abuse of the elderly. As soon as Michael saw the officer he yelled, "you'll never find the money!" When the police officer was placing him in cuffs the officer said, "you have the right to remain silent. Anything you say may be used as evidence against you. You have the right to speak to an attorney before being questioned and to have an attorney present during questioning. If you cannot afford an attorney, you have the right to have an attorney appointed for you prior to questioning. Do you understand these rights? Understanding these rights, do you wish to answer my questions?" Do the officer's statements satisfy the requirements of Miranda v. Arizona?

Yes. The officer advised Michael of his rights in accordance of Miranda v. Arizona.

Zach is the general partner of "See Ya Later, Alligator," a limited partnership (LP) that sells Florida Gator apparel. Sam and Jim are limited partners that work for the LP but do not participate in day-to-day management decisions or otherwise run the business. If "See Ya Later, Alligator" goes bankrupt, which partner(s) if any, need to worry that he/they could lose his/their personal belongings to creditors of "See Ya Later, Alligator?"

Zach

Choose the true statement:

as a practical matter, the U.S. Constitution changes much more through court interpretation than through actual amendments.

Diane, Wilma, and Leigh form a corporation. They are the only three shareholders and directors of the corporation. If Diane dies, the corporation:

as an entity is generally unaffected

Zeb lends money as a business loan to Ashlee, a sole proprietor whose business name is Pants and Shirts. Who is liable to repay Zeb?

ashlee

Lou, an attorney, is an advocate and an officer of the court. Lou may also be referred to as a(n):

both a guild member and counselor

In United States v. Carolene Products Co., the court upheld a federal statute prohibiting a type of "milk" known as filled milk (skim milk compounded with a fat or oil other than milk fat in order to resemble milk or cream) from being shipped in interstate commerce. However, this case is particularly known for its footnote 4, which established the "rational basis test." The court in Carolene Products Co. stated that the "rational basis test" should not be applied to "discrete and insular minorities." In Graham v. Richardson, a separate case brought years later, the court found that classifications based on people's status as aliens constituted a "discrete and insular" minority. The "rational basis test" created in Carolene Products and interpreted by Graham is an example of which of the following:

case law

Judge Moreno, a state trial court judge in Florida, decides the case that she is hearing by relying upon a recent Florida Supreme Court opinion as the basis for her ruling. This is an example of _________.

case law

Which system of law, developed out of the tradition of Roman Law, is prevalent in most of Western Europe and Latin America?

civil law

After a messy and costly divorce from his wife, Captain Jack Sparrow needs a diversion and decides to go into business with his cousin, One-Eyed Jones, selling swords, eye patches, and other pirate paraphernalia, as well as, of course, rum. The business is managed by other family members, who, amongst themselves, hold all the stock of the company. After a year, however, management decides it must dissolve the business because it has experienced severe losses, mainly due to Jack's consumption of the rum. In order to do this, a court resolution is required. Jack and his family are engaged in which business organization?

close corporation

The Sixth Circuit Court of Appeals just completed hearing arguments and was in the process of writing the opinion for the case. The court relied on established precedents in its circuit to write the opinion and hand down the order. This is an example of the court utilizing what system of law?

common law

Chandler likes Joey's shiny new red car. The next day Chandler punches Joey in the face, takes Joey's keys, and steals the car. While driving away, Chandler is caught going 50 miles over the speed limit and is given a ticket. In what courts of law can Chandler be pursued?

criminal and civil

Judge Mayberry is an extremely well-respected judge for the national courts whose written judicial opinions are considered the law of the land. Judge Mayberry is presiding over a case between Mr. and Ms. Zhang. Mr. Zhang states his case, claiming that Ms. Zhang attempted to strangle him as he was sleeping alone in bed. After hearing Mr. Zhang's case, Judge Mayberry begins questioning Ms. Zhang about what happened. Ms. Zhang states that she saw Mr. Zhang in bed with another woman, screamed, then ran out the door. After hearing Ms. Zhang's story, Judge Mayberry attempts to gather the facts from Mr. Zhang again, starting with, "Since it was dark, how can you be sure that it was not the other woman strangling you?" To which Mr. Zhang replied, "She would never do that. She was still sleeping beside me!" In this outlandish example, the land in which Judge Mayberry practices is likely _________ Law nation using the ____________System.

common; inquisitorial

Frank Stein was caught in the act of breaking into and attempting to steal a new Toyota Corolla. He was later charged with a felony of attempted grand theft auto, among other minor charges. When Frank hired a criminal defense attorney, that attorney could not arrange with Frank (agree with Frank to have) the following fee structure?

contingency fee

Six months ago, Alex Baulstein was caught in the act of breaking into a neighbor's house and attempting to steal a new 63" LED TV. He was later charged with felonies for burglary and attempted grand larceny, among other minor charges. When Alex hired a criminal defense attorney, that attorney could not arrange with Alex (agree with Alex to have) the following fee structure?

contingency fee

Agency is similar (but not identical) to:

contract law

which of the following is subject to double taxation?

corporation

In which of the following roles does a lawyer advise his client and practice preventative law?

counselor

Which of the following areas of law would NOT be considered Private Law?

criminal law

Max, a rather selfish individual, is a firm proponent of maximizing his own benefit instead of considering the impact on all affected people. For example, during an apocalypse, Max chose to store thousands of canned goods for himself instead of saving the starving individuals within his city. Which theory of law does Max's behavior exhibit?

ethical egoism

Once an agent is given __________ authority, he or she also has __________ authority to do whatever is reasonable to complete the task he or she has been instructed to undertake.

express; implied

Barbara, Yijuan, and Omar are starting a candy business. They will specialize in chocolate covered pretzels and strawberries. The business will likely have several locations in both Georgia and Florida. This is the first business for each of these owners/operators, and they would like to limit the paperwork and filing requirements to as little as possible. Since there will be several locations, Barbara, Yijuan, and Omar cannot be everywhere at once; so it is likely that they will hire a manager and staff for each of the locations. They do not like paying taxes and would like to adopt the business format that will result in the best tax situation as possible. What type of business organization would be best?

general partnership

Cosmo Kramer recently started his own sole proprietorship business, Cosmo's Convenience Store. Cosmo owns and operates the business and pays taxes at the individual level. Due to mounting debt, he closes the business. Cosmo...

has to pay all of the debt because he is still personally liable and can even have his personal assets seized to pay the debt.

Tommy has a particular view about the law. He believed that men are motivated by their desire for power and would do almost anything to obtain it. Tommy also thought that people were selfish, and that the role of the law should be to provide stability and order. What view of the law does Tommy represent?

hobbes

Which of the following is an example of liability for an independent contractor's work?

hospital liability for a 20-year physician who commits medical malpractice

Erik, Stan, Kyle, and Kenny are trapped on an island. They have run out of food and water and are going to starve. They decide to draw sticks to decide which of them to kill and eat to survive. They all agree, and they pick their sticks, and Kenny loses. Sadly, Kenny is thus eaten. A day later, Ship Captain Garrison drives by and rescues Erik, Stan, and Kyle. He, however, realizes what has occurred, and Erik, Stan, and Kyle are taken to jail. In his decision about the men's conduct, Judge Mackey pulls from a legal theory that includes his own background and prior experience with cannibalism. What legal theory was used?

legal realism

Tim, Steve, and Danny are trapped in the middle of a swamp. They have run out of edible food and are going to starve. They decide to see who could throw a log the farthest to decide which of them to kill and eat to survive. They all agree, and throw the log, and Danny loses. Danny is thus killed and eaten. A day later, Head Captain Mullen drives by and rescues Tim and Steve. He, however realizes what has occurred, and Tim and Steve are taken straight to jail. In his decision about the men's conduct, Judge Trask pulls from a legal theory that includes his own background and prior experience with cannibalism. What legal theory is used?

legal realism

Sally Springer and Oprah Raphael were involved in an intense verbal dispute while on Jerry Winfrey's famous talk show. Sally became so enraged that she could no longer hold back and slapped Oprah's face. Oprah immediately slapped Sally back and a battle ensued. Oprah's action of slapping Sally back can best be described as which one of the following:

lex talionis

Charlie Sheen and Emilio Estevez run a novelty company, Winning, Inc. Because neither Charlie nor Emilio currently have any other source of income, they approach Martin Sheen for additional funding as they expand. Martin agrees to contribute money in exchange for a special share of the profits but does not want to manage or control the business or risk losing more than his investment. Martin could best be described as a(n):

limited partner

Dwayne and Reggie were interested in starting a fitness club but needed additional capital in order to lease a storefront and purchase gym equipment. The two approach Ace Equipment's Inc. for funding. Ace agree to provide funds in exchange for a share of the company's profits, but did not want to manage or control the fitness club. What term would best describe Ace's role in the company?

limited partner

Michelangelo, Donatello, and Leonardo run a pizza and painting company, It's Pizza Time. Because neither of them have any other source of income, they approach Raphael for additional funding as they expand from Turtle street. Raphael agrees to contribute money in exchange for a special share of It's Pizza Time's profits but does not want to manage or control the business or risk losing more than his investment. Raphael could best be described as a(n):

limited partner

Sarah just became certified to practice dentistry, while her best friend Erica is still in dental school. Erica asks Sarah if she will begin her practice with her. Sarah will only agree if she is in full control legally and administratively. Erica agrees to the premise, and they form the business entity. Erica and Sarah have formed a ________ and Sarah is the ______.

limited partnership, general partner

Administrative, constitutional, criminal, and tax law are all examples of what kind of law?

public

Rights under the 6th amendment include all of the following except the right to:

select the prosecutor

A _____ is a business form in which the owner and the entirety are not legally distinct from each other and taxes are paid at the individual level.

sole proprietorship

On his own and without any particular filing with the state, Alex opens up his own pizza shop. Alex is incredibly successful, and he pockets all the shop's profits. One day, Margaret gets sick from the pizza and sues Alex. What kind of business is Alex's pizza shop?

sole proprietorship

A shareholder of Behemoth Corp. has sued the Behemoth Board of Directors. That Board failed to verify independently (audit) certain corporate financial statements. Those statements turned out to be false. In reliance on the statements, the Board committed large sums of money - borrowed at steep interest rates - in order to expand. Once modified financial statements were finally released, showing that Behemoth's short-term prospects were not very rosy, Behemoth's stock price plummeted. Choose the true statement:

the Board may avoid liability if it acted in good faith and in a reasonable manner

Kant's categorical imperative states that:

the form of an action rather than the intended result determines the ethical worth

Joe, Josh, and Matt were lost on a boat at sea. They had no means of getting back to shore and were not able to get food for themselves since they were so tired. Matt was sick and did not have much longer to live. Joe said to Josh, "Let's eat Matt and maybe we can have the strength to save ourselves and find a way to shore! His single life can save both our lives." Josh said to Joe, "I think help is coming; we should wait! It is not right to eat our friend." If Joe and Josh end up doing what Joe suggested, which theory of law - as expressed by Joe - would they be following?

utilitarianism

Jimmy, Tom, and Caroline were left stranded out in the middle of the ocean. Each had a completely different upbringing and, therefore, each believed in a different legal philosophy. One day out at sea, Jimmy became extremely ill and was taking up valuable supplies they all needed to survive. Tom and Caroline had a debate about what to do with the dying Jimmy. Tom used arguments such as that letting Jimmy die would help more people than if they continued to look after him, while Caroline debated that this was an act of murder and the law states murder is wrong. What legal philosophies could Tom and Caroline believe, respectively?

utilitarianism, positivism

Suzy, Hannah, and John are driving to the supermarket when suddenly pregnant Suzy's water breaks. They are stuck at a red light 30 minutes from the nearest hospital. Hannah screams, "Run the red light John! We have to take the risk of getting a ticket in order to ensure that Suzy and her baby are safe." John argues, "I can't break the law and run the light; we will have to wait our turn." In this scenario, Hannah is a proponent of ________, while John is a proponent of _________.

utilitarianism; positivism