Legal Environment Final

Disparate impact claims under the Age Discrimination in Employment Act do not require that the employer prove a business necessity in order to defend its actions.

True

Facebook users must agree to a Data Use Policy, which states that Facebook may use the information from users for research and testing.

True

Generally, an at-will employee may be fired just because the boss does not like him or her.

True

If an agent is acting within the scope of his or her employment and commits an intentional tort harming a third party, the principal may be liable for the injuries sustained.

True

In the typical business context, ADR is invoked either via contract or by mutual agreement.

True

Jurisprudence is roughly defined as the science and philosophy of law.

True

LaMonte has sued Jarod and received judgment in the amount of $24,000. LaMonte is a judgment creditor.

True

What are the two primary roles of the judiciary in the U.S. system?

Adjudicate cases and perform judicial review

Which of the following courts renders decisions binding only on the parties involved in the dispute?

A U.S. District Court

The origins of recorded law are cited by the textbook as being:

A collection of rules of tribal chieftains to perpetuate their power.

In which of the following situations would a delegation of contractual duties be allowed?

A roofer hired to reroof your home

Arnold offered to sell his zero turn lawnmower to Bambi in consideration of $2,500. Bambi thanked him for the offer, said nothing else, but immediately headed to her bank, withdrew $2,500, and headed to Arnold's house with the money. When she arrived, Arnold told her that he sold the mower 30 minutes after they spoke on the phone to someone else. Is Arnold in breach of contract? Why/why not?

Arnold is not in breach because he revoked the offer by doing an action inconsistent with maintaining it.

Which of the following is an example of the preexisting duty rule?

Aubrey entered into an agreement with Ping in which Aubrey would deliver the computers that Ping made in consideration of $25 per delivery.

Which of the following is a private arbitration?

Billy signed an employment contract with Big Corp. It has an arbitration clause in it.

The fact that the injury would not have occurred except for the breach of duty by the tortfeasor is called the

Cause in fact

Which of the following stands for the proposition that a contract must involve both sides receiving and giving up something of legal value?

Consideration

Which of the following is classified as liquidated damages?

Deb paid her rent late and her landlord said that she would have to pay the additional $25 late fee that was specified in her rental agreement.

Elton has contracted with Bennie to purchase his manufacturing business for $10 million. Bennie represented to Elton that he had the "best manufacturing company in North America." After Elton purchased the business, he lost money on it and realized it was definitely not the best company. He sued to avoid the contract based upon misrepresentation. The expert witnesses at trial agree that Bennie's business was not the best in North America. Assuming Bennie's representations above are the ones at issue in the lawsuit, and that Elton reasonably relied on them, what result?

Elton loses because Bennie's statement was mere puffery.

A business owner's expectation of privacy in commercial property is the same as the privacy interest afforded to a private homeowner.

False

A party who is injured by another's negligence but is found to have committed comparative negligence will recover nothing.

False

A rescission of a contract may occur when one party chooses to end the agreement.

False

Anticipatory repudiation may be used when a party has knowledge that either a complete or a partial breach will occur by the other party.

False

Courts apply a subjective standard when examining the existence of offer and acceptance by the parties when they created an agency relationship.

False

Courts are bound by the Restatement of Torts, once it is published.

False

Ethical problems faced by managers almost always come down to a clear choice, with one option clearly the most ethical choice

False

Lin-Mara's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics.

False

Most contracts require a specific format or ceremony.

False

No formal complaint was filed against Facebook for its psychological testing of users because the issue was an ethical dilemma, not a legal one.

False

One of the principal's duties is to keep an accounting during the agency relationship.

False

Placing conditions on the use of federal money given to states is most often accomplished by interpreting the Commerce Clause.

False

State long-arm statutes are used to establish subject matter jurisdiction over out-of-state defendants.

False

The U.S. system of common law is deep-seated in the French common law established by the Norman kings around 1066.

False

The fundamental underlying concept of corporate social responsibility is that conscience resides in individuals but not in a corporation itself.

False

The most common form of sexual harassment is quid pro quo harassment.

False

The Supremacy Clause holds that

Federal law trumps state law if there is a conflict

n a products liability case, the injured party can pursue a legal remedy against the seller of the product based on all of the following theories except

Immunity

A person who is a customer of Safemart who slips and falls on aisle four is considered a/an

Invitee

What type of restrictions may the government place on political expression?

Reasonable restrictions on time, place and manner

All contracts can be classified in seven ways.

True

The Restatement (Third) of Torts is currently the most recent edition

True

Scott, who is 15-years-old, purchased a laptop computer on a lease plan for $100 a month over 18 months from Laptops-R-Us. Under the law of contracts, this is

a voidable contract

The IRS three-prong test includes which of the following elements?

financial relationship, behavioral aspects, working relationship

While driving his motorcycle to work in the morning at Hugeco, Fritz, a staff attorney, is not paying attention and swerves onto the sidewalk, runs over Annika's foot, causing her injuries. Annika sues Hugeco under respondeat superior theory. If the court does not permit her lawsuit to proceed because Fritz was on his morning commute, this would be an application of the

going and coming rule

The principal difference between in rem and in personam jurisdiction is

in rem jurisdiction involves property, in personam jurisdiction is over the parties to a dispute.

Trial courts create what type of precedent?

no precedent

Sharice was working on a scaffolding 20 feet above the ground when she carelessly tossed her power drill to a co-worker. It fell to the ground and landed on Gardner, a visitor to the construction site, injuring him. What category of tort is this?

negligence

The State of Colorado has a law stating that you may not be in possession of more than four ounces of certain controlled drugs. This is an example of which of the following types of law?

substantive law

When a principal breaches a duty to an agent

the agent generally has the right to recover damages in court.

First Trust Bank had a slogan: "Profits should never come before people." This is an example of which of the following perspectives on corporate social responsibility?

the broad view, or management's hand theory

Corruptco is a large machine shop that fabricates metals. Corruptco maximizes profits and shareholder value by polluting the local river, where fish are often killed off due to the pollution, rather than installing a pollution abatement device. While this is not specifically in violation of the law, it does put burdens on the local community. Which theory of corporate social responsibility is Corruptco exhibiting?

the narrow view, or invisible hand theory

The mandate given to the Equal Employment Opportunity Commission is that the commission is required to pursue any discrimination-based claims made by aggrieved employees.

False

The terms agreement and contract have the same meaning.

False

Under a bilateral contract, there is no contract until the offeree performs the requested act.

False

Under concepts articulated in MacPherson v. Buick, a manufacturer of a defective product is liable only to the purchaser of the product and not to every user.

False

Legal purpose means the contract itself does not violate the law.

True

Not all courts have the authority to hear all cases

True

Obscenity regulation of commercial speech is subject to the same scrutiny as any other government regulation of commercial speech

True

Substantive due process requires that a state statute must be published for public inspection and be clear and specific.

True

The United States has adopted the country of origin principle to determine the application of law in international online disputes.

True

When a party successfully sues for an equitable remedy for a breach of contract, that party will not receive a monetary award

True

The consequences-based approach to ethics is most closely related to _______.

Utilitarianism

Raelynn saw Tawny choking in a restaurant. Raelynn jumped from her seat, beat Tawny on the back in her untrained attempt at Heimlich Maneuver, which she did not know how to perform, and gave Tawny serious back injuries. Raelynn will be liable to Tawny under which of the following doctrines?

assumption of duty

Delaware and New Jersey are separated by the Delaware River. New Jersey has started to build a pier extending well into the river, and Delaware claims that the construction will infringe on Delaware's navigational rights. If a lawsuit is filed, it must be filed in either a Delaware or New Jersey state court.

false

Jada was shocked to receive documents indicating she was being sued by Martin. The litigation process has not advanced beyond this stage. She consulted with an attorney and believes that her employer, Tortco, is the proper party for Martin to sue. Which of the following is an available remedy that Jada may presue under these circumstances?

file a cross claim

The Institute of Economics seeks to create profitable business solutions that also serve environmental and societal concerns. These goals are an expression of what ethicists refer to as the _______.

triple bottom line

The rights of workers to engage in the process of negotiating an agreement on behalf of an entire workforce is known as:

Collective Bargaining

Honest Bill the used car salesman told Fran, a prospective customer, that the car she was considering had only been driven by a little old lady on Sunday and had only 30,000 miles on it. Honest Bill knew this was a lie and that the mileage had been altered, as the car actually had 230,000 miles on it. Which of the following would Honest Bill's actions be if Fran buys the car in reasonable reliance upon his lies and the car breaks down a week after she buys it?

Fraudulent Misrepresentation

Which of the following would be nominal consideration?

Grover entered into a written contract with Oscar to sell him his house in consideration of $10. Oscar never turned over the $10.

Protection of employees through the prevention of workplace injuries is addressed by the

Occupational Safety and Health Act

Jennifer's complaining about a patently unfair employment contract she signed. She wants to be released from the terms of the contract, which states in the fine print that she must "Allow the company President to adopt her first-born child". Which of the following would describe the best course of action to get her out of the contract?

Recission

The United Amusement Worker's Union (UAWU) attempted to organize the workers at a bargaining unit, Seven Flags Over Kentucky, in the first steps of creating a union. Which of the following must occur under federal law for this to happen?

The UAWU must get at least 30% of the members of the bargaining unit to sign authorization cards.

The contract for the lease of a fleet of delivery trucks, which would be considered equipment, to FedEx by Ford Motors would be governed by:

The Uniform Commercial Code (UCC)

The moderate view of corporate social responsibility is best represented by which of the following?

To preserve the air quality, the president of the U.S. set a minimum gas mileage average for all autos sold in the U.S. This was done by executive order. Chen, a auto executive, dutifully complied with the regulations.

A person cannot be guilty of negligence if he or she has no duty owed to the plaintiff.

True

An agent is generally prohibited from using his or her own judgment as a substitute for the principal's judgment unless specifically authorized by the principal

True