Final Review for Business Law

What is required for federal court jurisdiction over a case?

1. standing of the plaintiff 2. diversity of citizenship 3. amount in controversy exceeds $75,000 (under diversity jurisdiction) 4. bankruptcy, copyright, patent, and maritime law cases

unilateral agreements

accepted and completed by an act

ratification

"affirmation by the principal of an agent's unauthorized action or promise. For the ratification to be effective, the principal must be aware of all material facts;" when an agent acts with express authority on behalf of principal

Duties of a principal include the following:

- Compensation - Cooperation - indemnification

The Fair Labor Standards Act requires various things from employers. Select those items required by the FLSA.

- Minimum wage - Payment of overtime - Restriction of child labor - Recordkeeping by the employer - Notification of the rights of employees

Name the items that Adrian Fontes records for Maricopa County.

- Property Deeds - Deeds of Trust - Disclaimers of interest in property

Duties of agent include the following

- accounting - loyalty - obedience - notification

legislative branch

- approves presidential nominations - overturn regulatory agency rulings

There are several factors that help determine if a worker is an "employee" or an "independent contractor". Select those factors.

1. Control of work schedule 2. Control of the tools or equipment used in the work 3. Control of the dress worn during work time

Name things that must be in an Environmental Impact Statement.

1. Description of the project 2. Any environmental impacts of the project. 3. Any irreversible impacts of the project and mitigation of those impacts 4. Any possible alternative uses for the project

As a shareholder of a corporation, Susan is entitled to

1. Inspect corporate records 2. Her proportionate share of company assets if a liquidation occurs 3. vote on major corporate matters and the Board of Directors

Name the requirements for a valid deed.

1. Names of both parties 2. Description of the property 3. Signature of the grantor 4. Delivery of the deed to the grantee 5. Notarization of the signature(s) on the document

The U.S. Fish and Wildlife Service wishes to make new rules about the desert ground squirrel. This involves a period during which the following actions must occur.

1. Notice of a preliminary rule published in the Federal Register 2. A comment period to allow the public to comment on the rule 3. Publication of the final rule

ways an agency relationship can be created

1. by agreement 2. operation of law 3. estoppel 4. ratification

primary steps in a bankruptcy process

1. credit counseling 2. file petition 3. pay fees 4. file documents 5. meet with creditors 6. liquidation 7. discharge

4 primary risks businesses have when they go international

1. cultural differences 2. political stability 3. IP theft 4. taxes

theory of product liability

1. negligence 2. negligent failure to warn 3. strict liability 4. breach of warranty

4 examples of how Congress has regulated business

1. tax laws 2. import laws 3. environmental laws 4. anti-trust laws

SLO # 3 Source of American laws that affect business include

1. the US Constitution 2. state statutes 3. administrative agency rulings

name the warranties that are automatically given by merchants who sell

1. warranty of merchantability 2. warranty of good title

A says I will sell you 25 bikes for my standard price ( $75 each ) less a 5% discount. B emails him, and says sounds like a good deal. I will do it. Deliver them to Colorado. A emails back and says I will pay half the freight. B does not respond. Who pays the freight?

A and B will split it

Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of

Administrative Law

The doctrine - Negligence per se will help a plaintiff prove which of the following elements of a negligence claim.

Breach of a duty to others Duty

SLO #10 - The primary basis for power of government to regulate business stems from

Commerce Clause

In preparation for a trial between George and ABC Corporation, ABC's attorney places George under oath and asks George questions that are recorded by a court reporter. This is known as

Deposition

Arizona enacted a law prohibiting the manufacture and sale of cement manufactured outside of Arizona that does not carry a label that the cement cannot be used in government-funded or other large projects. The requirement of the label, and the restriction of non-Arizona cement violate the

Dormant Commerce Clause doctrine

The four elements to a negligence action include

Duty Breach Causation Damages

SLO # 1 Global Corporation, much like all other businesses, has duties prescribed to it by:

Ethics and the law

SLO #9 The three generally accepted branches of government include

Executive, Judicial and Legislative Branches

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will probably do this tomorrow. Is this a valid acceptance under the UCC?

False

At common law, an offeror was the "master of his offer". Today, though, because of the UCC and the internet, anyone can accept any open offer anytime.

False

Because the Supreme Court believes that courts can provide the best relief to plaintiffs, it is reluctant to order parties into arbitration.

False

Because the UCC was drafted, and negotiated, between businessmen, banks and corporate lawyers, it is a good recommendation of commercial standards to follow, but the rules are voluntary for business.

False

Bill sees an offer for 5 toys on the internet for $30 each. It says to send an acceptance within 5 days to [email protected], but Bill, sends it to [email protected]. A forwarding order sends the email to [email protected] 10 days later. Bill's acceptance is nonetheless valid, since the email was forwarded to toysbeus. (This is a tough one. I won't do this to you on the test.)

False

Case law decided by the Supreme Court is binding on federal but not state courts.

False

Courts use a subjective standard when interpreting contracts so that they can understand why a party entered into an agreement.

False

Each state and the federal government have laws described as the "Statute of Frauds".

False

Members of the Board of Directors are elected by the officers of a corporation.

False

Regulatory agencies are created by the President to carry out and faithfully execute the laws.

False

Shareholders have a right to require that the Board of Directors pay a dividend if the Company has too much cash in the opinion of the shareholder.

False

Since the EPA was created by Congress, the Administrator of the EPA is selected by Congress and the President.

False

The Constitution and the United States Code with all of its Titles comprise all rules that affect government, business and individuals.

False

The Supreme Court trend on the exercise of personal jurisdiction over out of state defendants is that it is making it easier for plaintiffs to assert jurisdiction over out of state defendants.

False

The parol evidence rule helps people prove that agreements actually exist.

False

The primary source of authority for government regulation of business would be

False

The social responsibility of business consists only of the expectations employees have of their employers.

False

Whether or not a party has a claim against an attorney based on his malpractice in a contract law matter is the same in all states since whether malpractice occurred is a matter of federal, not state, law.

False

While courts decide questions of law, juries may decide the facts and questions of the law when considering a verdict.

False

Charles loses his breach-of-contract case against Micheletta, a California resident, in a Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he files his next appeal with

Federal Courts: 1. (Most) US Supreme Court 2. Court of Appeals for the 9th Circuit 3. (Least) US District Court for the Central District of California California courts in order as well 1. California Supreme Court 2. Court of Appeals - 4th District 3. Orange County Superior Court 4. Harbor District Municipal Court 5. Westminster Justice of the Peace

Pick the two primary objectives of bankruptcy laws

Fresh start for debtors Fair administration of a debtor's net assets

John is a resident of Iowa. While driving through California, he has an accident involving Marisol, a California resident. Marisol files a lawsuit in a California state court. Over John, the California court has

Georgia Supreme Court

Opinion on Practice Questions

Hi Professor! This was incredibly helpful for me because it touched on topics I forgot about and that the comprehensive final study guide didn't. For instance, two of those topics included what was required for a federal court jurisdiction over a case and the order of courts when filing a lawsuit and appealing. It was also really helpful to see some examples of what topics you plan to focus more on since it is a cumulative final and there's a lot to study! I also found that I knew more than I thought I did, which was reassuring! I did take the quizzes a third time! It helped me learn the information better since I needed to input the correct answers back in and trying out other answers helped with the learning process. Surprisingly, these quizzes were more manageable than I thought they would be :)

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. Colorado freight will cost A 40% of the profit he was going to make.Is this a valid contract under the UCC? (Don't worry about whether it should be in writing.)

It is a contract, but A does not have to pay the freight

SLO #6 The important principle set forth in the case of Marbury v. Madison is the the Supreme Court can rule on the constitutional of Congressional laws and Presidential actions. This principle has come to be known as

Judicial Review

According to the text, when making decisions, the first thing a business should evaluate is the __________ implications of each decision

Legal

In the previous question, what provides authority for the jurisdiction over an out of state defendant?

Long arm statute

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. A says I will pay half the freight. What is A doing? Don't worry about whether it should be in writing

Making a proposal to add a term to an existing contract

When making a business decision, merely complying with the law is referred to as the

Moral minimum

The various theories under which a party can show that another is liable for an injury caused a defective product include

Negligence Negligent failure to warn Warranty (Contract) Strict product liability

Which of these are commonly understood to be intellectual property?

Patents Trademarks Copyrights Trade Secrets

Which of these terms must be in an agreement for it to be enforceable under the UCC?

Quantity

primary requirements of 1934 Securities Act

SEC requires "continuous periodic disclosure" of companies so it can continue to regulate trading practices

SLO #5 The practice of deciding new cases with reference to former decisions, or precedents, is known as the rule of

Stare Decisis

Elaine is involved in a car accident where the other driver ran a red light. To determine whether she has a case, her attorney would apply which of the following classifications of law?

Substantive law

The Securities and Exchange Commission enforces the

The Securities Act of 1933 and the Securities Exchange Act of 1934.

When Adrian Fontes records a real estate document where Tenure Track Instructor Judd disclaims an interest in a home so that Wells Fargo Bank will make a loan, who is he notifying of that fact?

The world

A says I will sell you 25 bikes for my standard price less a 5% discount. Is this a valid offer under the UCC?

True

Congress was empowered to pass the Fair Labor Standards Act due to the Commerce Clause in the US Constitution.

True

Glaxo makes a pill that saves thousands from heart attack. It also destroys the liver of .1% of those who take it. Glaxo takes great care to test the drug, and to manufacture it carefully. Glaxo can nevertheless be held liable for a negligent failure to warn about the dangers of the drug.

True

In order to enforce justice and equality, courts are nevertheless not likely to review whether or not a contract is a good deal for both parties prior to making an enforcement decision for either side.

True

One factor in determining if a worker is an employee is whether or not that worker offers his services to several other employers.

True

State law supreme court decisions are binding on ALL of the state courts of the state where the court is located.

True

Subject matter jurisdiction is the power of the court to hear a certain type of case.

True

The parol evidence rule will allow parties to explain ambiguous terms in agreements, but not to contradict those terms with oral testimony.

True

The standards for issuance of a patent are generally that the concept must be novel, non-obvious and unique.

True

Tort and contract law are primarily state law.

True

When the dangers of a product misuse or land area are obvious, the manufacturer or landowner has no duty to warn of those dangers.

True

A says I will sell you 25 bikes for my standard price ( $75 each ) less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. A says I will pay half the freight. Now, worry about whether it should be in writing. Should it be in writing?

Yes, because it is very likely over $500 in total

A says I will sell you 25 bikes for my standard price less a 5% discount. B says sounds like a good deal. I will do it. Deliver them to Colorado. Colorado freight will cost A 40% of the profit he was going to make. Is this a valid contract under the UCC? (Don't worry about whether it should be in writing.)

Yes, but A does not have to deliver them to Colorado

bilateral agreements

accepted and completed by a promise to act in the future

executive branch

appoints heads of regulatory agencies

SLO #2 - The common law began

as a group of legal principles and rules applied by courts in England

strict liability

doesn't matter who was at fault because of the amount of risk and danger involved in the action that causes an individual to be held strictly liable

judicial branch

finds congressional laws unconstitutional

negligence per se

helps prove breach and duty as you don't need to prove that a reasonable person would've acted differently

After an offer is made, the subject matter of the offer is destroyed. However, the offer is considered terminated

immediately

FTC (Federal Trade Commission)

laws relating to advertising and trade

FCC (Federal Communications Commission)

laws relating to communications (phones, internet) and media

CFPB (Consumer Financial Protection Bureau)

laws relating to financial transactions between individuals and large companies

Chapter 7 - usually individuals, some companies

liquidation

Jackson, a homeowner, files a lawsuit against Johnson, his construction contractor. Prior to trial, they meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as

negotiation

Chapter 11 - usually companies

reorganization

Chapter 9 - usually cities and municipalities

reorganization

Securities and Exchange Commission (SEC)

securities laws

SLO # 4 Mary wins her suit against National Manufacturing. National's best ground for appeal is the trial court's interpretation of

the laws the judge used to apply to the case decision

Chapter 13 - usually individuals

wage earner plan

piercing the corporate veil

when shareholders use corporate assets for their own gain, will be held liable they do so

SLO $#8 - Rick and Tom engage in a pretty nasty fight. During the fight, Rick uses racial epithets to curse Tom. When Rick is prosecuted for a hate crime, a question of fact for the judge would be

whether Rick has a First Amendment right to say such things, whether or not in a fight

SLO # 7 - Tom and Rick engage in a pretty nasty fight. During the fight, Rick uses racial epithets to curse Tom. When Rick is prosecuted for a hate crime, a question of fact for the jury would be

whether Rick said the words he is accused of saying