BUL4310 Exam 1

130. True or False: Betty, a pharmaceutical representative for WeSellMeds Inc., is driving to a doctor's office for a business meeting to sell a new drug. Betty decides to stop by a nearby post office to mail a personal letter, where she crashes into a car. WeSellMeds Inc. is vicariously liable for the accident because Betty engaged in a frolic.

Answer - False: Lectures. LSB 72.

27. True or False: Common law judges usually have more of a role developing the law than 6 do Civil Law judges, but common law judges usually have less of a role finding and developing the facts in a case.

Answer: True. LSB 40.

73. True or False: Federal trademark protection lasts for 15 years, but protection is renewable indefinitely.

Answer - False: LSB 56 (ten year terms, not 15 years), Barron's page 594.

1.True or False: Mark has recently been having issues with his next-door neighbor trespassing into his backyard. He decides to sue his neighbor in a small claims court. Not knowing much about what goes on in court, Mark decides to do some research by watching several episodes of Judge Judy. He takes notes on the way the judge acts and how the plaintiff and defendant act. This show tends to give a reasonably accurate portrayal of the American legal system, at least with respect to the role of the judge in deciding the law and finding the facts.

Answer - False: Lecture. LSB 41-43.

96. True or False: Copyrights and patents focus on what the inventor or author created, while trademark focuses on what the consumer thinks.

Answer: True. LSB 54.

89. True or False: Stella Student thinks she has created a new machine that will enable her to study her BUL4310 class notes in half the time it normally takes her. If the machinery she has created is new, useful, and non-obvious, then Stella may obtain a utility patent.

Answer: True. LSB 55.

131. Alex, who is an agent of Peter, works as a bartender at the Virgil Hotel. Peter gave Alex the authority to order beer to sell at the bar. However, Peter expressly forbade Alex from buying whiskey to sell at the bar. Despite this, Alex agrees to purchase a discounted case of whiskey from a distiller as part of a marketing promotion by the whiskey distiller. Peter discovers the purchase, but does nothing. True or False: Alex sells the whiskey for a handsome profit. Peter has ratified Alex's act.

Answer: True. LSB 68, Barron's page 288.

137. True or False: In Florida, an employer with fewer than four employees may opt out of workers' compensation laws.

Answer: True. LSB. Barron's page 552.

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

Answer: True. Lecture.

28. True or False: The Code of Hammurabi' was not the first code.

Answer: True. Lecture. LSB 11, Barron's page 6.

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

Answer: True. See LSB 14-15.

207. True or False: China's agency and partnership law is more similar to that of the United States than is the agency and partnership law of Mexico.

Answer: True. Supplemental Information Text.

203. True or False: The top-level management of a large corporation tends to be more representative of the entire population of workers and investors in Germany than in the United States.

Answer: True: LSB 149-150. The Supervisory board of large German Corporations is more representative of workers in terms of union and employee representatives appointing oversight on the management board (investors still also get to select other members on the management board as well).

143. True or False: During an employment interview, the interviewer should not ask the applicant where or when the applicant was born, nor any questions about how a disabled employee became disabled, however, the interviewer can lawfully ask about the applicant's education and job history (if they are relevant to the open position), whether the applicant is age 18 or older (assuming that is the age for lawful employment), and what are the languages in which the applicant is fluent.

Answer: True: Supplemental Information Item, LSB 90-91.

176. One difference between a Limited Liability Company (LLC) and an S Corporation is that: A. An LLC has no restrictions on the number or kinds of owners, while the S corporation does. B. An S Corporation is a newer, more tax-friendly type of LLC (a special form of LLC compared to LLCs generally) C. The S Corporation is such a new form of corporation that the law is sometimes unclear, which works as a disadvantage, this is less of a problem for the LLC D. An LLC must follow more structured rules than does an S Corporation E. Unlike the S Corporation, an LLC can allocate income and losses as partnerships do

Answer—A: LSB 125, Barron's page 349-350.

4. Shrek, a law student, is doing research about court cases in a far away 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: A. Farquad, the Defendant (or Appellee), was likely sued by Fiona, the plaintiff (although in some cases she could be the defendant but also the appellant), in 2004 by the New York State Supreme Court and published in the 300th edition of Northeastern Reports. B. 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. C. Fiona, the Defendant, was likely sued by Farquad, the plaintiff, in 2004. This case was published in the 300th edition of Northeastern Reports. D. Farquad, the Defendant, was likely sued by Fiona, the plaintiff, and a decision was reported in 2004. This case was published in the 2nd edition of Northeastern Reports. E. Shrek can only assume that Farquad sued Fiona in the state of New York.

Answer—B, Lecture and very early LSB.

82. Copyrights can be obtained for which of the following? A. Names B. Common phrases C. Lectures D. Dates in a calendar E. Obscene works

Answer—C, Barron's page 590 LSB 58

31. True or False: Every state in the United States bases its legal system entirely on common law.

Answer: FALSE. Louisiana uses a mixture of part common law and part based on the Spanish and French codes, in Lectures. LSB 13.

115. True or False: Ordinarily, an agency must arise from, and be based on, a contractual relationship.

Answer: False. LSB 62, Lectures, Barron's page 285.

88. True or False: Important intellectual property cases involving cellophane and aspirin are best known for looking at alleged copyrights and/or the alleged infringement of copyrights.

Answer: False. LSB 64-65. Trademarks and genericide.

147. True or False: Unlike Title VII, the ADA is interpreted broadly to include actions involving job applications, hiring, firing, promotion, and all other terms, privileges, condition, and benefits of the employment relationship.

Answer: False. LSB 91 & 111-112 (ADA). Both Acts are interpreted broadly.

202. True or False: Partnerships are called, for tax purposes, S corporations.

Answer: False. S corporations are treated like partnerships for federal income tax purposes, but that does not mean that partnerships are somehow referred to as S corporations. LSB 140, Barron's page 349.

127. True or False: Jake is hired by Bob's Building Company to install electrical wiring on a house that is under construction. He pulls up to the site and brings his toolbox and wire supplies to the house. He works on the wiring for 3 days straight. As soon as he finishes installing the electrical wiring, he sends a bill to Bob's Building Company for the completed project, and does not return to the site. Jake was an employee of Bob and not an independent contractor.

Answer: False. See LSB 78-79 Chart. Jake was an independent contractor. He used his own tools, got paid for a specific project, was paid at the end of the project, and was engaging in a specialized trade.

204. True or False: Shareholders have the power to, via a "super-majority" vote (usually twothirds or three-fourths of the total shareholders), invoke the business judgment rule and thus participate in any management activity authorized by the super-majority shareholder resolution.

Answer: False. Shareholders rarely have any significant power (and this should be no exception). Moreover, the business judgment rule, if it is to be invoked, is a defense against suits claiming corporate directors and/or officers should be liable for some allegedly poor decision. LSB 145.

24. True or False: The inquisitorial system puts the burden of developing all the facts of the case on those with the most interest in the case.

Answer: False. That is the adversarial system, as discussed in LSB 40, and in the lectures. Barron's page 70.

56. True or False: The inquisitorial system is commonly used in common law nations, while the adversarial system is used in civil law nations.

False (is the other way around), at LSB 40, Barron's page 70.

53. True or False: Legal realists believe that most violations of the positive law are morally correct.

False. LSB 34.

102. Paramount Pictures Corporation's use of a posed photo similar to that of actress Demi Moore's pregnant pose on the cover of Vanity Fair - only this new photo, to promote Paramount's movie, "Naked Gun 33 1/3: The Final Insult," features a supposedly pregnant male actor, Leslie Nielsen (the white-haired star of the Naked Gun movies). True or False: If the court holds that the photo is a parody, Paramount will be liable for copyright infringement.

False: Parody is usually upheld as fair use. LSB 61.

116. True or False: 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.

True- The Cyrano de Bergerac example in lecture. LSB - Bottom of page 83 to top of page 84.

54. True or False: Critical Legal Studies has very rarely been espoused in court opinions, and that rarity has thus reinforced a major criticism of Critical Legal Studies: it is, in practice, an inherently impractical approach to actual cases.

True. LSB 35 and in Lectures.

101. True or False: Copyrights are generally easier to obtain than are patents.

True. LSB 51, Barron's page 590.

100. True or False: Copyrights held by individuals last for the life of the creator of the copyrighted work, plus 70 years, while copyrights held by corporations last for 95 years.

True. LSB 58, Barron's page 590.

55. True or False: As demonstrated by laws about slavery, sexual harassment, and drunk driving, ethics influences laws more than laws influence ethics.

True. LSB 9, Barron's page 5.

49. The Uniform Commercial Code (UCC) is an example of what type of law? A. Case law B. Statutory law C. Federal law D. Administrative law E. Intellectual Property law

ANSWER: B LSB 18. 10

48. Administrative, constitutional, criminal, and tax law are all examples of what kind of law? Pick the best Answer. A. Private B. Public C. Civil D. Case E. Code

ANSWER: B, LSB 18, Barron's page 4.

103. Which of the following best describes a knock-off? A. The sale of a watch that looks like a Rolex and packaged like a Rolex, but has the word "Roll Leks" on the watch face and the packaging. B. A Cross pen that looks exactly like a real Cross pen, is labeled as a Cross pen on the pen itself and on the packaging, and is packaged like a Cross pen, but is actually made of inferior materials. C. A new Gucci purse design that looks very similar, but not identical, to a Prada purse from a previous Prada collection. D. A pizza company that advertises the fact that it uses the same ingredients as its competitors but offers a lowers price for pizzas. E. The sale of a new Miller Light beer that is bottled in the same type of bottle used by Budweiser, but is clearly labeled "Miller Light."

ANSWER: B, LSB 52.

199. True or False: Vince and Ari were in a partnership, but they now want to end it. The only ways that the partnership ordinarily can be dissolved are: by Vince's and Ari's agreeing to dissolve the partnership, or by the expiration of the partnership's term of duration.

ANSWER: False, Barron's page 314.

113. Ben needs his lawn mowed. He decides to have his lawn cut but a local lawn service he sees advertised in the paper. Afterwards, he is very happy with their work, and decides to use their 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: A. The lawn service is solely responsible B. The lawn service is an agent of Ben and therefore Ben is reliable C. Both Ben and the lawn service are equally responsible and must split the costs D. It was an accident and the neighbor must replace his own flowers E. The man was under the influence of alcohol and therefore can't be held liable

Answer - A, Barron's pages 286-287.

171. 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 doesn't want to manage or control the business or risk losing more than his investment. Martin could best be described as a(n): A. limited partner B. agent C. independent contractor D. partner by estoppel E. ex post facto partner

Answer - A: LSB 124, Barron's page 328.

83. Jason decides to take on a new business venture of producing dolls. Jason decides to call his dolls "Rugrats" after a popular TV show from when he was a kid. The dolls end up looking a lot like the kids from the "Rugrats" show. According to our lectures, Jason's dolls would be considered: A. A knockoff B. Palming off C. A patent infringement D. Perfectly legal E. None of the above

Answer - A: Lecture, see also LSB 51.

93. In addition to the requirements of novelty and non-obviousness, federal patent law requires all of the following except: A. That a utility patent must be useful B. That all patents must relate to tangible personal property C. That a design patent must demonstrate ornamentality D. That a plant patent must be distinctive E. That a patent application must be filed at the U.S. Patent and Trademark Office, not at a state office .

Answer - B, Barron's pages 588-589, LSB 50-52.

219. James Brown, an angry customer who believes he has been wronged by the Lucky Duck corporation, wishes to gain compensation for the losses he has suffered due to his dealings with the fraudulent company. Due to a slow market for toy ducks, Lucky Duck has fallen on hard times and, as a result, has liabilities that exceed its assets. In order to gain the compensation to which he feels he is entitled, Brown decides to go after the corporation's shareholders, thereby holding them personally liable. This is a process known as... A. The Ultra Vires Doctrine B. Piercing the corporate veil C. Indemnification of Directors D. The Corporate Opportunity Doctrine E. Filing a derivative suit

Answer - B: LSB 157-159, Lectures, Barron's page 344.

219. James Brown, an angry customer who believes he has been wronged by the Lucky Duck corporation, wishes to gain compensation for the losses he has suffered due to his dealings with the fraudulent company. Due to a slow market for toy ducks, Lucky Duck has fallen on hard times and, as a result, has liabilities that exceed its assets. In order to gain the compensation to which he feels he is entitled, Brown decides to go after the corporation's shareholders, thereby holding them personally liable. This is a process known as... A. The Ultra Vires Doctrine B. Piercing the corporate veil C. Indemnification of Directors D. The Corporate Opportunity Doctrine E. Filing a derivative suit

Answer - B: LSB 157-159, Lectures, Barron's page 344.;

78. Peter recently wrote a book concerning the history of the Roman Empire and also made a video documentary about the same subject. Peter can obtain a.... A. Patent for both the book and the documentary B. Copyright for both the book and the documentary C. Trademark for both the book and the documentary D. Copyright for the book and Trademark for the documentary E. Copyright for the book and Patent for the documentary

Answer - B: LSB 59, Barron's pages 589-590.

168. Rusty and Betsy are partners running the general partnership, Ice Cube Enterprises, where they make and sell ice cubes. 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: A. Personally liable for only the debts of the company excluding the lease. B. Personally liable for exactly half the cost of the lease, if Betsy can't pay her half then too bad for the lessor (the landlord). C. Personally liable because Betsy was acting within the scope of the partnership authority. D. Not personally liable because General Partnerships are protected business ventures. E. Not personally liable, Betsy should have disclosed the renewal of the lease before it was made.

Answer - C, LSB 118, Barron's page 315.

170. 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... A. only has to pay whatever debt he can from the proceeds of liquidating the business. 33 B. only has to pay $10,000 or 50%, whichever is less. C. has to pay all of the debt because he is still personally liable and can even have his personal assets seized to pay off the debt. D. is not liable at all because the debt can't be collected from a business that no longer exists. E. only has to pay debts accrued prior to the final 60 days of operations

Answer - C: LSB 117, Barron's page 310.

172. Four months ago, Maria Shriver bought 7.5% of the shares of Arnold Schwarzenegger's company, Governator Co. Today, she wrote a letter demanding to see Governator Co.'s corporate books. Maria wants to find out if Arnold is secretly using the company to make payments to more of his illegitimate children. Her request will most likely... A. be denied because she must own at least 10% of the shares in order to see the books B. be denied because she does not have a proper purpose to see the books C. be denied because she hasn't owned the stock for more than six year D. be granted because she has owned enough stock for long enough and the her reason for wanting to see the books is not relevant E. be granted because any stockholder can view the books at any time, it is one of the privileges of being a stockholder

Answer - C: LSB 146.

111. Businesses have attempted to claim hired persons as independent contractors instead of as employees for all of the following reasons except: A. To avoid taxes. B. To avoid labor laws. C. To avoid being classified as a corporation. D. To avoid federal laws dealing with employee rights. E. To avoid Tort law liability.

Answer - C: LSB 77.

79. As Professor Emerson demonstrated in class following his "Mister Cellophane" performance, genericism is the notion that... A. A copyright can lapse because it becomes a generic term B. A filed copyright request is too generic to be considered legally acceptable C. A trademark can lapse because it becomes a generic term D. A filed trademark request is too generic to be considered legally acceptable E. A generic, common term may be filed as a trademark with proper cause

Answer - C: Lecture, LSB 58, Barron's page 594

177. 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 to the partnership? A. The Partnership automatically continues on with just Kyla and Jeremy B. The Partnership automatically continues on with Kyla, Jeremy, and Ryan's estate all as equal partners. C. The Partnership automatically terminates and Kyla and Jeremy must dissolve the business. D. The Partnership automatically stops until Ryan's interest is sold at auction with half of the proceeds being given to Ryan's estate and the other half to the partnership. E. The Partnership automatically terminates, however, the Partnership automatically reforms itself into an LLC.

Answer - C: Lectures, 1.5 Points given for Answer A, however, C is the best Answer. LSB 118.

181. In a limited partnership, which partners are most protected from personal liability? A. General partners with the least financial investment B. All partners have equal protection C. Non-decision making limited partners D. Decision making shielded partners E. Decision making limited partners

Answer - C: Lectures, LSB 124, Barron's page 328.

114. 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): A. Servant B. Administrator C. Subcontractor D. Independent Contractor E. Principal

Answer - D, LSB 79. Barron's page 286.

173. Jack and Jill are shareholders in "Ben & Jerry's" corporation. Together Jack and Jill file a shareholders 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? A. Jack and Jill split the money equally and each receives 50%. B. Jack receives 30% of the money, and Jill receives 70% because Jill paid 70% of the legal fees. C. The money is donated to charity D. The judgment is paid directly to the corporation E. The judgment is paid directly to the corporation, and the corporation must distribute all of the money equally to each shareholder.

Answer - D, Lectures, LSB 147.

186. Emerson is a very successful banker and has a very good reputation. Kabler goes around to businesses and tells each business that he is partners with Emerson even though he really is not. This gives businesses confidence to allow Kabler to pay them back in the course of business since he is linked with the good reputation of Emerson. If Emerson knows that Kabler is doing this and does nothing about it, then what type of partnership is formed to make Emerson liable for money owed to the businesses? A. Limited B. Express Agreement C. General D. Estoppel E. Emerson is not liable. The businesses should have done more research.

Answer - D: LSB 122, Barron's page 317, discussed in lectures.

184. This is the state of choice for many large businesses. The state's 2009 Annual Reported noted that 63% of all Fortune 500 Companies operate out of this state. A. New York B. Texas C. California D. Delaware E. North Carolina

Answer - D: LSB 136.

185. 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... A. Jurisdictional suit B. Class Action suit C. Shareholder suit D. Derivative suit E. Homestead suit

Answer - D: LSB 147, Barron's page 372.

76. Suppose that the musical artist Chamillionaire decides to sue "Weird Al" Yankovic for the song he released entitled, "White and Nerdy," saying the track was in violation of copyright law relating to his track "Ridin." The song by Weird Al neither mentions the song "Ridin" or its artist Chamillionaire and mimics the tune of "Ridin" but produced differently using various other instruments. Weird Al states that the lyrics about a typical "white and nerdy" lifestyle so obviously different from the rap lyrics in "Ridin" that a reasonable adult would be able to distinguish that the two are not the same. What would be the most likely outcome of this case? A. Chamillionaire will win, and Weird Al would have to pay damages. B. Chamillionaire will win, and Weird Al would be required to stop the distribution of the copyrighted material. C. Weird Al will win, because music is not a form of copyrighted material. D. Weird Al will win, because his song (1) is a parody, and (2) did not explicitly mention Chamillionaire. E. Weird Al will win, because he was using Chamillionaire's work for educational purposes.

Answer - D: LSB 54, Barron's page 589

98. Suppose that the television show, Saturday Night Live, does a skit making fun of people that look surprisingly like the Jonas Brothers, who are currently on tour. Further suppose that these fake Jonas Brothers are seen engaging in ridiculous behavior that is completely opposite of what one would expect from such young, wholesome performers as the Jonas Brothers and that - as the skit goes on - the likelihood that these are really the Jonas Brothers becomes hard for any adult viewer to believe. Further suppose that after that episode aired, the Jonas Brothers' concert ticket sales plummeted. The Jonas Brothers are certain that the Saturday Night Live episode is to blame, so they sue Saturday Night Live. What is the most likely outcome? A. The Jonas Brothers will win, and Saturday Night Live will have to pay for damages. B. The Jonas Brothers will win, and Saturday Night Live will have to publicly retract the harmful statements. C. The Jonas Brothers will not collect any money from Saturday Night Live, but Saturday Night Live will have to pay a fine to the Federal Communication Commission. D. Saturday Night Live will win because the show (1) is allowed to parody, and (2) never said the people in the skit were actually the Jonas Brothers. E. Saturday Night Live will win because the Jonas Brothers are not competitors to Saturday Night Live in the business of performing sketch comedy.

Answer - D: Lectures, LSB 61.

110. True or False: Agency law is best classified as federal law.

Answer - False, Barron's page 285.

75. True or False: Parody, because of its closeness in regards to an original work, is usually considered copyright infringement.

Answer - False: LSB 54. Barron's page 589

166. True or False: Mario and Luigi are both partners of Kingdom Mushrooms, a business registered with the state authorities. Although Mario is an investor and receives a specified share of the profits, he does not have any managerial control of the business. Luigi, unlike Mario, controls the day-to-day operations of the business. Based on this information, Mario is most likely a limited partner and is not held liable for partnership obligations beyond the amount of his investment, and Luigi is a general partner.

Answer - True, LSB 124, Barron's page 328, Lecture.

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

Answer - True, LSB 128, Barron's page 308, Lectures.

72. True or False: David has always wanted to start a company selling baked goods. He starts baking cookies and muffins, packages them, and sells them under the brand Otel Spunkmaster Inc. David could be successfully sued by the owners of the Otis Spunkmeyer brand, as Otis Spunkmeyer is a prominent maker of baked goods.

Answer - True: LSB 43-46 - palming off. Barron's page 588

Intellectual Property 71. True or False: James is an inventor who likes dealing with electronics. Recently, with some inspirational application of ideas associated with various new, cutting-edge technologies, James has invented a multi-functional TV remote control that can turn on his TV, turn on all of the lights in his living room, and turn on his back and foot massager. James appears to have satisfied all three elements needed to obtain a utility patent.

Answer - True: LSB 48 (useful, new, and nonobvious), Barron's page 588.

135. Paul is the owner of a local laundry cleaner. Paul recently hired Laura to work in his business to clean and fold the clothes that come in. Laura turns out to be inexperienced and makes many mistakes. Paul wishes to fire Laura, but is unsure of what the law is. Which of the following is the likely outcome regarding this case? A. Paul would be able to fire Laura because of the concept of Adverse Impact B. Paul would be able to fire Laura because of the employment at will doctrine. C. Paul would not be able to fire Laura because it would violate Title VII. D. Paul would not be able to fire Laura because it would be unlawful retaliation. E. Paul would not be able to fire Laura because it would be considered Abusive Discharge.

Answer -B, Paul would be allowed to fire Laura. Laura's not fulfilling her job role and the firing would not fall under either of the two exceptions: implied contract or abusive discharge. Lecture, LSB 85 under The Employment At-Will Doctrine, Barron's page 555.

32. 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, he found Robert liable based on the state supreme court's decision in another case also involving two chickens, a brownie, and a wood chip blower. Robert was shocked. In this case, what principle did the judge follow? A. Statue (Code) B. Habeas Corpus C. Stare Decisis D. Procedural Law E. Substantive Law

Answer C. Barron's page 8.

99. Intellectual Property rights are least likely to be violated by the following: A. palming off B. using another product's likeness in association with your product C. placing a logo on your product that is similar to a well-known product D. concealing a trade secret E. creating a knockoff

Answer D, LSB 54, Barron's page 596.

149. The Employer's right to terminate an employee without cause may be subject to and restricted by: a. Union Contracts b. Abusive Discharge c. Whistle-Blower Statutes d. All of the above e. Answers b & c

Answer D. Lectures, LSB 85-87 , Barron's page 555.

133. 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? A. Bud is solely responsible for his torts because he owns his own company B. Dave is solely responsible for Mike's injury because he bought Bud beer C. Dave is solely responsible because Bud was engaging in an "ultrahazardous activity" D. Bud and Dave are both responsible because Dave negligently chose Bud to work for him, and Bud is responsible for his own torts E. Bud is solely responsible because he was not under Dave's supervision at the time of the accident

Answer D: Lectures, Barron's page 296.

212. Jack decides to use his fruit expertise to open a business selling edible bouquets made of grapes, strawberries, pineapples, and other delicious fruit. He decides to form a sole proprietorship, but also hires an intern to take care of some small tasks here and there. The intern doesn't know much about fruit, and accidentally sends a customer a bouquet with poison pineapples in it! The customer sues Jack's company. Who is liable? A. Jack, the business owner, is personally liable. B. The intern is personally liable since he is the one that sent out the poison pineapple. C. The business entity, neither Jack nor the intern, is liable. D. Their customer has no basis for the lawsuit, as everyone should know what a poison pineapple looks like. E. Both A and B.

Answer E - Lectures, LSB 116-117, Barron's page 306.

77. Jeff adds wheels onto his lazy boy sofa and applies for a patent for his new invention, the Lazy Wheeler. The patent office will: A. Accept the patent in full B. Suggest he apply for a copyright instead C. Suggest he trademark the Lazy Wheeler D. Deny his application because it is not useful E. Deny his application because it is obvious

Answer E. As discussed in class. LSB 55

145. Assume that an employer intends to hire some employees. Which of the following requirements/policies does Title VII prohibit that employer from adopting, regardless of whether that requirement/policy is allegedly related to on-the-job skills: A. height and weight requirements B. a "speak English only" policy in the workplace rules C. citizenship requirements D. All of these are prohibited by E. None of these is prohibited.

Answer E: Each of these may be a BFOQ. The law prohibits their use, however, if they have an unjustified, adverse impact (e.g., no real relation to the skills actually needed on the job, and an adverse impact on the hiring pool for minorities or some other protected class). LSB 102-103. Barron's pages 558-559.

107. 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: A. Lingering Authority B. Actual Notice C. Constructive Notice D. Implied Notice E. Invasion of Privacy

Answer- B. LSB 68.

179. 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 they do each buy 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: A. Albert is the only one personally at risk because he technically owns more of the company. B. Alberta is the only one personally at risk because she did not invest as much in the beginning. C. Albert and Alberta are both personally at risk because they have entered into a partnership. D. Neither Albert nor Alberta is at risk because they can both just walk away from the business without personally losing anything. E. Alberta would be personally at risk for 60% of the debts, with Albert personally at risk for 40% of the debts (Albert thus "making up" for the fact that she only contributed 40% of the materials to start the business).

Answer- C: Lectures, LSB 120-121, Barron's page 315.

175. Stephanie and Paul own an ice cream shop together. They lease a building together, in both their names (as tenants in partnership), for (1) operating their ice cream shop, and (2) for earning profits from renting out the remaining space in the building to other businesses. Can Stephanie individually renew the lease, on behalf of the two partners, without consulting Paul? A. Yes, Stephanie has common ownership of the building B. Yes, Paul is only a mutual agent C. Yes, Stephanie has apparent authority D. No, Stephanie would violate the fiduciary duty E. No, Stephanie is acting in bad faith

Answer- D: LSB 119-120, Barron's page 320.

169. Robert and Beaulah are partners running a general partnership, Edie's Edibles Enterprises, where they make and sell all sorts of food. The lease on their building runs out and Beaulah renews the lease solely in her name and declares the partnership void. Robert: A. Still owns half the assets of the old partnership but must move the partnership to a new location. B. Should negotiate a lease payment to Beaulah on behalf of their partnership to keep the company going in the same building. C. Moves into sole ownership of the assets but must move them out of Beaulah's building. D. Should take Beaulah to court for violating her fiduciary duty. E. Should seek a buyout from Beaulah, General partnerships typically have unstable business lives and have buyout clauses.

Answer- D: LSB 119. See the case of Meinhard v. Salmon.

174. Krista currently owns 10 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: A. Allow Krista to look over its books and records B. Pay dividends to Krista within the business judgment of the board C. Give Krista 10 shares, as a gift D. Allow Krista to sell her shares below market value E. Give Krista the option to purchase 10 shares

Answer- E: LSB 146, Barron's page 371, Lectures.

167. True or False: Lisa and Alyson are among some of the promoters for a corporation, Widgets R US, which has not yet come into existence. Because individuals are considered a separate entity from the corporation, Lisa and Alyson are always protected from actions they take in regards to Widgets R US, both before and after the corporation is formed.

Answer- False, LSB 143, Lectures.

74. True or False: George W. Bush copyrights his new book, The Right Way To Be A President: By George W. Bush in 2005. When George W. Bush dies in 2020, the copyrights pass on to his estate. In 2095, an anarchist group starts passing out copies that it made at the local Kinko's. Assuming that pertinent copyright laws remain the same from present laws, George W. Bush's estate will win its copyright lawsuit against the anarchists and/or Kinko's. 14

Answer- False, LSB 51 (the Bush copyright would have expired in 2090, seventy years after the death of the author), the copyright has expired.

146. True or False: Concerning composers/musicians and the ADA, deaf Beethoven would be least likely to have the right to accommodation from an employer (compared to blind Mandel or one-armed Paul Wittgenstein.)

Answer- True: His being completely deaf would seem to be a more severe impediment to producing music than would be just having half a set of fingers (just one hand), for pianist Paul Wittgenstein (written for by Maurice Ravel and other composers), and George Friederich Handel, who became blind in his last few years. LSB 112. Baron's page 567-569.

Agency 104. True or False: 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. The supplier likely will win the lawsuit.

Answer- True: LSB 68, apparent authority.

178. 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-today 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?" A. Sam and Jim 35 B. Zach C. Zach and Sam, but not Jim because he only works part-time D. All three people (Jim, Sam, and Zach) because they are all partners. E. None of the partners, because people's business and personal belongings are always, as a legal matter, separate.

Answer-B: Lecture, Tug-of-War Example - Supplemental Information Text, LSB 124.

140. All of the following offer employment protections on the basis of sexual orientation except: A. The federal government B. Some states C. Some municipalities D. Some private companies E. None of the above is an exception. All of the above offer protection on the basis of sexual orientation.

Answer: A - The Federal Government. Lecture and LSB 94-95.

119. 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 ______. A. Implied Ratification B. Actual Authority C. Express Ratification D. Constructive Notice E. Lingering Authority

Answer: A . LSB 68-69.

157. Fawn, a noted animal rights activist, wants to change the way Fancy Feast, Inc. does business. Fancy Feast makes pet and animal food products. However, Fancy Feast performs, and continues to perform, research on animals that Fawn feels is objectionable and is harming the corporation's public image, resulting in steadily decreasing stock prices. Which is the best way for Fawn to accomplish her objective? A. Buy stock in Fancy Feast and file a shareholder's derivative lawsuit. B. Buy stock in Fancy Feast and file a direct suit against the corporation. C. Buy stock in Fancy Feast and sue the board of directors individually for letting the research continue. D. Buy stock in Fancy Feast and sue the researchers who perform the research on the animals. E. Not buy stock in Fancy Feast because that would violate her conscience.

Answer: A, LSB 147-148.

2.Common law is distinct from the Civil Law (Code system - the Roman Law). In judgemade 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? A. Nowadays, the common law is found principally in English speaking countries. B. Under the civil law, courts are subject to stare decisis. C. Opinions from Georgia are binding in Florida. D. When the United States became a nation, law was created from a blank slate. E. None of the above.

Answer: A, LSB 39-40, Barron's Page 7. 2

109. Agency is similar (but not identical) to: A. Contract Law B. Common Law C. Principal Law D. Constitutional Law E. Concrete Law

Answer: A, LSB 62.

69. Which of the following constitutes enough business interaction to merit a lawsuit in Florida courts over actions conducted by a firm based in Oregon? A. A salesperson's very brief trip to conduct business in Tallahassee B. A misdirected mail advertisement opened in Florida C. An Internet site with a "surrounding states only" proximity disclaimer D. Word of mouth advertising E. Unauthorized resale of products to a resident of Florida

Answer: A, Lecture, LSB page 22-23, Barron's page 48-49.

180. 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? A. Shareholders of the corporation B. Directors within the corporation C. Officers within the corporation D. Professionals - e.g., lawyers and accountants - working for the corporation. E. A, B, and C.

Answer: A, Lectures, LSB 148, Barron's page 344.

63. Smiley (a singer) and Billy (her manager) both domiciled in Los Angeles, California, sue Mouse, Inc., incorporated in Delaware with main offices in Orlando, Florida, for a breach of contract claim. The contract was negotiated, signed, and partially performed at Mouse's studios in Florida. Smiley and Billy decide to file the claim in a federal court in the Middle District of Florida, located in the 11th Circuit. What law will the federal judge apply to adjudicate the claim? A. Florida contract law and 11th Circuit procedural law. B. Florida contract law and Florida procedural law. C. 11th Circuit contract law and 11th Circuit procedural law. D. 11th Circuit contract law and Florida procedural law. E. The judge must apply Florida contract law, but she may apply any procedural law she sees fit, as long as it doesn't violate the Constitution's procedural Due Process clause.

Answer: A,: LSB pages 22-24, Barron's page 49.

148. Lisa, an at-will employee, has been working at Burger Joint for three years and is entitled to receive a bonus next month. Unfortunately, Lisa's boss dislikes Lisa after she refused to serve a client a burger that fell on the floor. Lisa's boss fired her two days later. Lisa... A. Can sue the company for wrongful discharge, and will most likely win. B. Cannot sue because she is an at-will employee who can be terminated at any time. C. Cannot sue because she is an at-will employee, but can file for unemployment compensation. D. Can sue the company under Title VII of the Civil Rights Act of 1964, and will most likely win. E. Should look for another job that will give her a contract.

Answer: A- Barron's page 557, Lectures.

14. True or False: The Law and Economics school holds that a person can almost always reduce a case or law to economic analysis.

Answer: A. LSB 28-29.

8.Mary is at the airport waiting to catch her flight. She spots a sign that says: "No Smoking inside the airport terminal. $250 fine if caught." Is this statement on the sign a law? A. Yes. This statement is enforceable and if the person is caught, he/she will be punished. B. Yes. A statement is law as long as it is written down. C. No. Only legal documents are considered law. D. No. Usually, it is only statements regarding public safety that are considered law E. No. In an airport, it is the statements regarding national security, which are considered law.

Answer: A. Lecture, LSB 3-4, Barron's page 93.

30. Jon was asked by his plaintiff-team to retrieve a Red Fire Truck case that would support their 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 that the friend knows what he is talking about)? A. In order to prevent the defense from stating that the case used by the plaintiff-team to support their argument didn't match the case at hand, a Red Fire Truck case is needed. B. The case the plaintiff-team is dealing with involves a Red Fire Truck, another case involving a Red Fire Truck is need to support their argument. C. A Red Fire Truck case refers to a case that is imperative to the final decision given by the judge. Thus Jon is looking for a case that will help the plaintiff win the final judgment. D. Because of Jon's inexperience, the plaintiff-team has given Jon a separate case that isn't relevant to the main case, thus called a Red Fire Truck case. E. None of the above

Answer: A. Lecture.

81. Copycat Toy Company develops a new doll collection called Barbillo, including a female doll named Barbilicious and a male doll named Kenttahottie. Mattel is upset because the Barbillodolls, which look very similar to Mattel's dolls, are competing with the Barbie collection. If Mattel sued Copycat, what would be the most likely outcome? A. Copycat would lose because Copycat's collection is palming off. B. Copycat would win because Mattel's right over Barbie has expired. C. Mattel would win because Copycat violated patent laws. D. Mattel would win because Copycat's Barbay is a knockoff of Barbie. E. Mattel would lose because Copycat did not misappropriate Mattel's trade secrets.

Answer: A: Lecture, Supplemental Information Text, LSB 52-53

35. If you dismiss a juror candidate during voir dire because of her television viewing habits, you probably follow this legal philosophy: A. Egalitarianism B. Cultivation Theory C. CLS D. Law and Economics E. Teleological concepts

Answer: B - Lectures during second week of class, Cultivation Theory, That people - through their culture - acquires certain concepts about the law and legal processes. It is an aspect of legal realism. LSB 33-34.

5.Some laws are codified, while others arise out of the common law. All of the following are examples of public laws, except: A. Tax law B. Contract Law C. Constitutional Law D. Administrative Law E. Criminal Law

Answer: B, Contract law = private law, LSB 18.

196. 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? A. sole proprietorship B. general partnership C. limited liability company D. corporation E. limited partnership

Answer: B, LSB 118, 120, Barron's pages 296-301.

159. 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 ________________. A. Ultra Vires, the exploited opportunity helped the company B. Corporate Opportunity Doctrine, the exploited opportunity caused no harm to the corporation C. Business Judgment Rule, they will be held liable no matter what D. Ultra Vires, they will be held liable no matter what E. Disinterestedness, the exploited opportunity caused no harm to the corporation

Answer: B, LSB 153, Lectures, Barron's page 375.

112. Tom owns a sporting goods store in Gainesville. His employee, Sam, one day orders a shipment of 1,000 soccer balls without authorization from Tom. Ordering merchandise is not one of Sam's required duties and Tom is very mad at her for doing this without clearing it by him at first. Tom decides to try to salvage the situation by having a sale. He publishes ads promoting the sale of buy-one-get-one-free soccer balls. They manage to sell about 700 of the soccer balls, but no one seems to be interested in the remainder. Because of Tom's actions, Sam can now be considered an Agent for purposes of the prior order of 1,000 balls because of the principle of: A. Express Ratification B. Implied Ratification C. Constructive Notice D. Actual Authority E. Implied Authority

Answer: B, LSB 68-69.

61. Susan, a Colorado resident, is suing Michael, a Tennessee resident, for breach of contract. Susan is suing Michael for $70,000. Where should the trial take place? A. In Colorado state court because Colorado has personal jurisdiction over Susan. B. In Tennessee state court because Tennessee has personal jurisdiction over Michael. C. In Tennessee federal court because of diversity jurisdiction. D. In Tennessee federal court because of subject-matter jurisdiction. E. It is Susan's choice because she is the plaintiff.

Answer: B, Lectures, LSB page 24, Barron's p 48-49.

91. Which of the following is an example of a trademark? A. a patented ball bearing system on a new fishing reel B. both "Nike swoosh" and "a Florida gator logo" C. an author's signature D. a Florida gator logo E. nike swoosh

Answer: B. Both the swoosh and the gator logo are distinctive symbols meant to identify particular goods and are trademarks. A trademark is a distinctive symbol, word, letter, number, picture, or combination thereof adopted and used by a merchant or manufacturer to identify his/her goods. Both the Nike and Gator logos are trademarks but, because there are overlaps, could also be considered Copyrights. The logos could count as art work and thus be able to be copyrighted. Artwork could constitute both copyrighted work as well as something which is trademarked. Barron's page 594, LSB 62.

13. True or False: Utilitarians believe that we should criticize institutions, ideas and actions based upon their overall well-being. 4

Answer: B. LSB 27.

51. Enrique Iglesias is walking down the street and suddenly is swarmed by a mob of fans trying to get an autograph. Enrique tries to run away but out of nowhere a crazed fan, in her car, runs over Enrique's foot. Enrique can never use his foot again, stopping him from performing beautiful music for his adoring fans on stage. Angrily, Enrique grabs his car keys, and then he runs over the crazed fan's foot. This is an example of the ________. A. Code of Solomon B. Lex Talionis C. Napoleonic Code D. Code of Justinian E. Code of Emerson

Answer: B. Lectures. LSB 11, Barron's page 3.

62. Dwight, a resident of Florida, believes that he has been wrongfully harmed by Jim in an automobile accident. The accident took place in Dwight's home state, and when he is researching online to see if he has a case to successfully sue Jim, he comes across a similar case that took place in North Carolina. If Dwight sues Jim in Florida and uses this case to prove Jim's wrongdoing, the judge probably would: A. Agree with Dwight that the case in North Carolina establishes precedent, and thus the judge must rule on Dwight's behalf B. Agree with Dwight that the case in North Carolina establishes precedent, and thus the judge will have the case tried in North Carolina C. Use the North Carolina case as guidance, although the judge would be free to establish his/her own decision. D. Use the North Carolina case as guidance and use stare decisis to overturn it E. None of the Above

Answer: C, LSB pages 22-24, Barron's pages 48-49.

106. 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? A. Bond and Solitaire would win the case because those ideas from Solitaire were not put into use while she was working there, so while the intellectual property was created by Solitaire while working there, she did not actually use it there. B. 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). C. Only Solitaire would be held accountable because she did not carry out her fiduciary duty, while Bond would simply argue the appropriate and successful defense that he did not know. D. Mr. Big would lose the case because none of the ideas were actually carried out at his store - so he has no proof as to a breach of fiduciary duty. E. Bond and Solitaire would win the case because Solitaire was simply an agent for Mr. Big - Solitaire did not possess a fiduciary duty to Big since she only worked at Big's store for a limited time.

Answer: B. This question comes from the beginning of the second half of lecture, and is basically the continuation/expansion of the James Bond example discussed in class. Solitaire had the fiduciary duty and failed to carry out her business ideas. LSB 82.

132. If the hiree appears to be an alter ego for the hirer, then the hiree may be assuming personal liability while executing which fiduciary duty? a. Duty to protect confidential information b. Duty to obey instructions c. Duty to avoid conflict of interest d. Duty to act with skill e. Duty to notify

Answer: Barron's page 291. Under the agent's duty to obey instructions, he or she might be carrying out complex duties as the principal's alter ego.

105. Joe is a cable repairman for ROX Cable. During the day he drives from Rox Cable to his first house to repair the cable box and check on the installation. Next, he goes from house to house repairing various fault cable connections. At noon, Jon stopped nearby at The Pizza Shack for lunch. Joe was still hungry after he finished his lunch, so he ordered a pizza to go to eat in his car during his trips from repair to repair. After lunch, as he drove to his next repair, Joe is eating a slice of pizza and some of the sausage falls off the pizza and onto the floor. Not wanting to lose any of his precious food, Joe leans over to pick up the sausage that has fallen on the passenger side floor. As Joe leans over, the car swerves onto the sidewalk and hits Fatima. If Fatima decides to sue ROX for her injuries, she will likely: A. lose since it was Joe's negligence that caused the accident, and the company had no way to control his negligence B. lose since the accident occurred while Joe was returning from a non-company function (lunch), ROX can only be held responsible for activities it authorizes. C. win since Joe was an employee of the company and acting in that capacity at the time of the accident D. win but only if the lunch excursion was authorized by the corporation E. lose because Fatima does not have adequate standing to sue ROX

Answer: C - LSB 72. It is NOT a frolic and detour.

29. Both Prof and Skippy, men in their 40s, are married, also, they have three children each. Gil is a teenager and unmarried. Prof, Skippy, and Gil took a three- hour tour in a motorboat. The weather started getting rough. Because Prof, Skippy, and Gil ran out of gas before they could return home, their boat landed on an uncharted island. Gil was hungry, so he ate the leaves of a plant he found. The plant turned out to be poisonous, and Gil became seriously ill. Prof tried to take care of Gil, but surmised that Gil would not survive long. Meanwhile, Skippy looked all over the island, but could find only a single coconut. Skippy suggested to Prof that they let Gil eat the coconut and drink its milk. Skippy thought that they had a duty to help Gil. Prof thought that he and Skippy should split the coconut since Gil had the least chance of surviving. Which of the following is false? A. Bentham would be more likely to agree with Prof than Rawls would be. B. Kant would agree with Skippy. C. Prof's view is lex talionis against Gil. D. Skippy appeals to natural law. E. Prof's view is utilitarian.

Answer: C - Lex talionis is _ repayment ... in equal measure. LSB 11. There is no indication in the facts that Prof was retaliating against Gil for any wrong. And there's no indication that Prof had an ax to grind with Gil. Prof, after all, tried to keep Gil alive.

117. Which element is not necessary to form an agency relationship? A. The Agent has a duty to act as a fiduciary, primarily, for the Principal's benefit. B. The Agent holds the power to alter the Principal's legal relations. C. There must be some consideration for the services performed. D. The Agent is subject to the Principal's right of control E. All elements are necessary to form an Agency relationship

Answer: C, Barron's page 285, LSB 62.

64. Caleb, a citizen of Colorado is suing James, a citizen of Florida, for breach of contract. Diversity jurisdiction cannot be present unless: A. A federal court requests to hear the case B. The plaintiff requests diversity jurisdiction C. The amount in controversy is more than $75,000 D. Both B and C E. A, B and C

Answer: C, LSB pages 22-23, Barron's page 42.In seeking diversity jurisdiction in this case, the amount in controversy must be more than $75,000, and either the plaintiff or the defendant must request it.

70. Harry's malpractice claim against Sally, his CPA, hinges upon whether Sally caused Harry's company to fail its obligation to pay an enormous sum of back- taxes. The internal revenue tax code was created under the jurisdiction granted to Congress by the U.S. Constitution and Harry's claim involves an in-depth interpretation of a federal statute. Which court has subject-matter jurisdiction to take the claim? A. The state where Harry's company is incorporated B. The state where Harry is domiciled, whether or not Harry lives in the same state as Sally C. The federal court with jurisdiction in the state where Harry would properly file the claim if he were filing it in state court D. Both A and B E. Both A and C

Answer: C, LSB pages 22-24, Barron's page 45. There no doubt is personal jurisdiction over Sally where she is domiciled or where she works. Such personal jurisdiction is not an issue concerning Harry or his company, as those would be plaintiffs willing to sue wherever. More fundamentally, the question asks about subject-matter jurisdiction, not personal, so the focus is on power over the type of case. Clearly, as it entails substantial federal statutory analysis, federal question jurisdiction likely is present.

158. In corporation ABC, there are two boards of directors. It is required that one-half of one of the boards consists of union members. In which country would you most likely find this corporation and what are the names of the two separate boards? A. France, supervisory and lower B. England, supreme and lower C. Germany, supervisory and lower D. France, superior and inferior E. Germany, superior and inferior

Answer: C, Lectures, LSB 149-150.

37. 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. A. I - Thomas Hobbes, II - Oliver Wendell Holmes Jr., III - John Locke B. I - Oliver Cromwell, II - George Bernard Shaw, III - Oliver Wendell Holmes, Jr. C. I - John Locke, II - Jeremy Bentham, III - Thomas Hobbes D. I - Oliver Wendell Holmes, Jr., II - Immanuel Kant, III - Aristotle E. I - Aristotle, II -Thomas Hobbes, Niccolo Machiavelli

Answer: C, Source: Lectures, LSB 4-5.

36. While attending Harvard Law School during your first semester you have a professor who is an aging hippie in his sixties, hails from San Francisco, and is highly critical of the legal system. Your professor most likely supports which school of thought? A. Positivism B. Economics and the Law 8 C. Critical Legal Studies D. Legal Realism E. Cultivation theory

Answer: C. "Crits" are also known as Critical Legal Studies proponents. LSB 35, Lecture.

200. Sally Sprinkles thinks she makes the best cupcakes in town, so she decides to open her own bakery. However, she does not have the capital to start up her new business. Her two best friends, Minnie Morsel and Calli Cake, tell her that they will help fund the venture but don't want to be a part of the day- to-day operations. Which of the following does Sally NOT need to do in order to form this limited partnership? A. File papers with the state to create the LP B. Declare herself as the general partner and Minnie & Calli as the limited partners C. Create a partnership agreement that explicitly states what happens to the partnership if she dies D. Make sure that there is no appearance of Minnie & Calli as anything other than limited partners for the bakery E. Actually, Sally must do ALL of these to form a limited partnership

Answer: C. Create a partnership agreement that explicitly states what happens to the partnership if she dies. LSB 124, Barron's page 324.

22. While waiting for a stop light in beautiful rural Florida, Tom realizes that the traffic light is broken and may never change to green. Tom continues to wait even though no cars are coming. Which is most likely? A. Tom is a Legal Realist B. Tom feels obligated to wait because of the theory of Natural Law C. Tom is a Positivist D. Tom believes in Utilitarianism E. Tom fears an investigation by huissiers.

Answer: C. LSB 30.

9.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 A. the pot calling the kettle black B. over justification C. lex talionis D. petty impartiality E. acquittal

Answer: C. Lecture, LSB 11, Barron's page 6.

16. Each of the following countries practice common law except? A. Canada B. Kenya C. Japan D. New Zealand E. India

Answer: C. Lecture, LSB 23, Barron's page 7.

15. Which of the following is not an example of substantive law? A. The law of Torts B. The law of Contracts C. Procedural Law D. Employment Law E. Corporate Law

Answer: C. Lecture, LSB 25, Barron's page 16-17, Supplemental Information Item about Substantive versus Procedural Law - Track and Field Example.

3. A case decided in 2004 by the Massachusetts Supreme Court and reported by NorthEastern Reports in volume 808 page 301, involved the First Congregational Church of Haverhill (defendant) and Callahan (plaintiff). How would this court case be cited? A. Callahan v. First Congregational Church of Haverhill, Mass. 2004 (301 N.E. 2d 808). B. First Congregational Church of Haverhill v. Callahan, Mass. 2004 (301 N.E. 2d 808). C. Callahan v. First Congregational Church of Haverhill, 808 N.E. 2d 301 (Mass. 2004). D. First Congregational Church of Haverhill v. Callahan, 808 N.E. 2d 301 (Mass. 2004). E. Callahan v. First Congregational Church of Haverhill, 301 N.E. 2d 808 (Mass. 2004).

Answer: C. Lecture.

20. This code of law stated three things: rule should be held by the people, that the law must depend upon the consent of the governed, and that the law is adaptable. A. Code of the Babylonian Ruler, Hammurabi B. Code of the Roman Emperor Justinian C. Code of the Athenian Lawgiver, Solon D. The Napoleonic Code E. The "Magna Carta" of New York

Answer: C. Lecture. LSB 12, Barron's page 6.

42. In 1998, the Alabama legislature amended a statute that prohibited the sale of sex toys in the state. Your friend Sherrie, a Montgomery, Alabama resident, owns a store in Birmingham, Alabama, where she sells sex toys. She tells you, "The Alabama law is unconstitutional because the U.S. Constitution protects the fundamental right to privacy." Sherrie's argument involves: A. Critical Legal Studies B. Utilitarianism C. Positivism D. Natural Law 9 E. Law and Economics

Answer: C. Positivists believe that the law is what the State has posited (what it has stated, put forth). The law is thus the command of a governing authority. LSB 30. Sherrie's argument involves positivism because the argument relies on the protection of the right to privacy that the Supreme Court has read into the U.S. Constitution (the "supreme law of the land") for support.

211. Wilde Life, a noted animal rights activist, decides that her next target is going to be Me Yum S, Inc., a corporation with one million shares outstanding. Me Yum S is the maker of many popular pet and animal food products. Wilde suspects that Me Yum S is funding scientific research on animals that she feels is objectionable and maybe illegal. On February 15, Wilde buys twenty shares of Me Yum S stock. On May 1, Wilde goes to Me Yum S headquarters to demand inspection of the corporate books. An alert Me Yum S security guard recognizes Wilde as she approaches the front gate and blocks Wilde from entering company premises. Wilde hands that guard a hand- written note demanding access to the books and tells the guard to let her in. The guard again refuses. Wilde quietly leaves and sues Me Yum S. Ordinarily, would Wilde have a right to inspect Me Yum S's corporate books? Choose the best Answer. A. Yes, because Wilde has the right to inspect and her hand-written note is sufficient to meet the written-demand requirement. B. Yes, because Wilde meets the ownership requirements and Me Yum S's potential illegal activity makes the purpose of Wilde's demand proper. C. No, because Wilde does not meet the ownership requirement needed to have the right to inspect corporate books. D. No, because Wilde's purpose for wanting to inspect the corporate books is not proper. E. No, because even though Wilde has the right as a shareholder to inspect, a hand- written demand letter does not meet the writing requirement.

Answer: C. See Barron's page 358 and LSB 146. Clearly Wilde does not meet the ownership requirements needed before a shareholder can request to inspect the books. She owns 20 of over 1 million outstanding shares (far below 5% of the company's stock) and has held her stock for less than six months. "Yes, because Wilde has the right to inspect and her hand-written note is sufficient to meet the written-demand requirement." is incorrect because it is just circular reasoning ¯ in effect, saying that Wilde has the right because Wilde has the right. "Yes, because Wilde meets the ownership requirements and Me Yum S's potential illegal activity makes the purpose of Wilde's demand proper," is incorrect because, as explained, Wilde does not meet the ownership requirements. "No, because Wilde's purpose for wanting to inspect the corporate books is not proper." is incorrect because Wilde's purpose for inspecting the books is not necessarily improper. She is looking for evidence of illegal activity, which could definitely have an impact on the stock price and her holdings. Looking for illegal activity is more than "digging up dirt." "No, because even though Wilde has the right as a shareholder to inspect, a hand-written demand letter does not meet the writing requirement." is incorrect because, as previously stated, Wilde does not meet the ownership requirements and doesn't have the right to inspect. Furthermore, there is no indication in the facts of the question as to whether or not her hand-written demand letter does or does not meet any possible legal requirements.

213. Which of the following is not an advantage of a corporation? A. Limited liability for owners B. Ease of ownership transferability C. Perpetual existence D. Easier to raise capital than in other entities E. Less expensive to form than other entities

Answer: E, LSB 128-129, Barron's page 312.

209. Willy Play invents and patents a radical new baseball glove design that includes only a thumb and two finger holes, resulting in people having to put two of their fingers into each finger of the glove. Willy claims that the glove makes for better catching strength, as a result of the wearer's fingers jammed in two per finger hole. After being unable to sell his new design to any sporting goods manufacturer, Willy decides to make the glove himself. Willy, mindful of the potential liability of being a business owner, forms a corporation, Gloves, Inc., and decides to incorporate in Delaware. Willy begins making gloves and sells them to local sporting goods stores in Gainesville. They are a big hit, and Willy is barely able to keep up with demand. Two months later, Willy begins to get calls from customers complaining that they have nerve damage in their fingers from using his glove. A week later, Gloves, Inc. is sued by an Atlanta man who had purchased one of Willy's gloves while driving through Gainesville and now claims nerve damage. Which statement regarding Gloves, Inc. is correct? A. Gloves, Inc. is foreign corporation in Georgia because the company was to be sued by the Atlanta customer in that state. B. Gloves, Inc. would be considered a domestic corporation in Georgia, since that is the residence of the suing customer, Florida, since that is where Gloves, Inc. has its principal place of business, and Delaware, since that is the state of incorporation. C. Gloves, Inc.'s status as a particular type or form of corporation should not affect whether it is liable to the Atlanta man. D. The Georgia man could pierce the corporate veil and sue Willy Play directly, if a court would find that Willy set up the corporation to avoid paying taxes. E. Gloves, Inc. would be considered a close corporation.

Answer: C. The type or form of a corporation (close, S, domestic, foreign) will have no effect on its liability, even though it may affect jurisdictional or other issues. "Gloves, Inc. would be considered a close corporation." is incorrect because there is not enough information about Gloves, Inc. to determine if it had been set up as a close corporation. Just because a corporation has one or a few shareholders it cannot be assumed that it is a close corporation. "Gloves, Inc. would be considered a domestic corporation in Georgia, since that is the residence of the suing customer, Florida, since that is where Gloves, Inc. has its principal place of business, and Delaware, since that is the state of incorporation." is incorrect because Gloves, Inc. would be a domestic corporation in only its state of incorporation (Delaware) and the state where it has its principal (and only) place of business (Florida). The residence of a plaintiff suing a corporation has no effect upon the corporation's domicile. "The Georgia man could pierce the corporate veil and sue Willy Play directly, if a court would find that Willy set up the corporation to avoid paying taxes." is incorrect because one valid reason for incorporating may be for an individual to avoid paying personal income tax on earnings, paying taxes as a corporation instead. In almost all of the rare cases where piercing the corporate veil is successful, fraud is involved. The facts of the question in no way indicate any sort of fraud.

162. 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 on 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. Once a building lease has expired there is no obligation that belongs to either partner that says the partner must let the other person in on the decision. B. Case law in New York and other leading state courts has determined that the duty of partnerships generally ceases to exist simultaneously to when their agreement has expired. Based on this, Tim would likely have no case against Brandon. C. 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. D. Jo v. Jill determined that one's obligation to a partner, based on loyalty, extends past the term of the contractual agreement, which formed the partnership. E. The Revised Union Partnership Act protects partners from breach of loyalty as exhibited in this example, leaving Tim with a case against Brandon.

Answer: C. This example is based on the court case Meinhard v. Salmon as presented in the LSB 119. This case extended the duties of a partnership far beyond what it states, holding in the example that Tim should have had the option to renew the lease with Brandon. Jo v. Jill is the made up case based on this example. And the RUPA does not touch on the subject of what happens after the partnership.

80. The Gatorade recipe is: A. A Trademark B. A Copyright C. A Trade secret D. Filed with the government E. Susceptible to fair use

Answer: C: Lecture, LSB 62, Barron's page 596

156. True or False: In the course of forming the corporation, the promoter may incur costs, make contracts, and do other acts in furtherance of the corporation.

Answer: Corporations. True, LSB 143.

126. Rayelle Agentia is instructed by her principal, Pristina Preemaveera, to contract to buy an antique Model B Ford. Rayelle enters into a contract with Sim Smitten to buy a Model B and signs the contract as "Pristina Preemaveera, by Rayelle Agentia, her agent." Choose the true statement. A. Rayelle is jointly and severally liable B. Rayelle is liable for half of any damages Sim Smitten incurs C. Rayelle may be held liable if Pristina Preemaveera does not pay D. Rayelle cannot be held liable if she did not exceed her authority E. Sim Smitten may hold Rayelle liable without looking to Pristina for payment.

Answer: D - LSB 73, 74b, Barron's page 293.

198. Which of the following evidently tend to seek the least amount of outside funding and support? A. Corporations B. Silent Partnerships C. Hybrid Business D. Proprietorship E. General Partnership

Answer: D, LSB 117, Many partnerships and corporations form for the benefit of having multiple investors.

60. Breanne, a California resident, is going on a work related trip and will be gone for a week. Breanne knows that Allie, a New York resident, will be visiting her parents in California during the time when Breanne is away. Thus, Breanne hires Allie to babysit Breanne's golden retriever for the week. Breanne agrees to pay Allie $1,000 total for her services. However, instead of showing up to work, Allie simply pockets the money and refuses to return Breanne's calls. Amazingly, the dog suffered no harm. However, Breanne decides to sue Allie for breach of contract. In what courts can Breanne sue? A. Breanne must sue in California (either in a California state or federal court). B. Breanne must sue in California state court. C. Breanne must sue in New York (either in a New York state or federal court). D. Breanne must sue in either California state court or New York state court. E. Breanne must sue in either California federal court or New York federal court.

Answer: D, LSB page 22-23, Barron's pages 48-49.

59. Which of the following is false regarding subject matter and personal jurisdiction? A. Subject matter jurisdiction is the one that matters the most. B. Personal jurisdiction can be waived. C. Anyone at any time can raise the question of subject-matter jurisdiction. D. Subject matter jurisdiction can be waived if a judge has personal jurisdiction. E. All of the above are true.

Answer: D, Lecture, LSB page 22, Barron's pages 48-49.

118. Agency law is covered under which category of Law? A. The Uniform Commercial Code B. Federal Law C. Statutory Law D. State Common Law E. Comparative Law

Answer: D, State Common Law - Barron's page 275.

95. Bill Gator, a UF student and son of a Bull Gator, thinks he has invented a new and unique way to keep any beverage cold on a hot Gator Game Day. Bill learned about patents when he took BUL4310 and as soon as he thought up his idea in October 2008 he applied for a patent through the proper channels. Sadly for Bill, Sally Gator had the same exact idea during October of the 2007 season. Sally didn't apply for a patent until after she learned of Bill's application, but Sally did produce a working prototype in 2007. Sally has dozens of witnesses and photographs of her and her invention during the 2007 tailgating season and even sold a few prototypes to friends. Now that both have applied for patents, what should the correct outcome be? A. Bill should get the patent because he applied first. B. Sally and Bill should split the proceeds of the patent, but it should be awarded to Bill since he applied first. C. Sally and Bill should be awarded a joint patent D. Sally should be awarded the patent because she invented it first and was diligent in reducing the invention to practice because she made her working prototypes. E. Bill should be awarded the patent because while Sally did make a working prototype before Bill invented it, she never filed a patent application with the required description of the invention in enough detail to enable someone else to reproduce it. As a result, she was not diligent in reducing the invention to practice.

Answer: D. (LSB 54 - Competing Patent Claims), first person to invent maintains priority if they are diligent in reducing the invention to practice. Reducing the invention to practice can be done through prototype OR through a patent application with the required description.

34. 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? A. Common Law B. Procedural Law C. Substantive Law D. Equity E. Civil Law

Answer: D. Barron's pages 8-9 and also some in LSB.

33. John Rawls spoke of a veil of ignorance in reference to: A. Creating a society whereby everyone fends for himself B. Being unaware of the consequences of your actions C. Being unaware of the consequences of others' actions D. Creating an egalitarian society E. A society where everyone (or almost everyone) does what is morally correct

Answer: D. Creating an egalitarian society - Lectures during second week of class, LSB 32.

11. The Continental European law system can be traced back to its roots in what source of law? A. The Code of Napoleon B. Code of Morse C. Code of Hammurabi D. The Justinian Code E. Code of Solon

Answer: D. LSB 11-12, Barron's page 6.

208. 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? A. partnership B. professional corporation C. limited partnership D. close corporation E. cooperative

Answer: D. LSB 139, Barron's page 349.

12. In order for a common law judge to make a decision, what helps him find the law he/she must apply? A. Lex Talionis B. Lex Civilis C. Ratio decidendi D. Stare Decisis E. Obiter Dicta

Answer: D. LSB 14, Barron's page 8.

214. The officers and directors of Sketchy Corp. have been having trouble paying off personal debts (for example, their monthly apartment rent is over $3500!). To put an end to their financial hardships, they decide to take money from what their shareholders have invested in the corporation and use it to help pay for their posh living spaces. What is the legal term for the wrongful act that the officers and directors have committed and who can obtain an injunction against them for this wrongful act? A. breach of due diligence, both the shareholders and the state B. disinterestedness, the shareholders C. disinterestedness, the state D. ultra vires, both the shareholders and the state E. piercing the corporate veil, both the shareholders and the state

Answer: D. LSB 159, Lectures, Barron's page 357.

10. Jim and Tim were arguing how our government system was established. They finally concluded that our government system was run with a system of checks and balances where the executive, legislative, and judicial branches were separated. Who proposed this idea of how a government should be run? A. Locke B. Hobbes C. Blackburn D. Montesquieu E. Blackstone

Answer: D. LSB 4-5.

17. Which philosopher held the view that law exists to restrain people? A. Charles de Secondant B. John Locke C. Montesquieu D. Thomas Hobbes E. Sir William Blackstone

Answer: D. LSB 4-5.

210. One day, Gary and his roommate Dan are sitting around their house bored, trying to come up with ways to become rich. Gary has an epiphany, and tells Dan that if they can buy cheap salvaged cars, they then can sell them for parts on EBay and make a rather large profit. It is decided that Gary will do all the logistics such as finding buyers, making transactions and handling the EBay page, while Dan simply locates cars from junk yards and take them apart so the parts can be sold. Both Gary and Dan agree to split profits and any liabilities that may occur. In this example, which of the following most correctly explains what has occurred? A. A silent partnership has been created because Gary is the person who is running the EBay store, so no one really knows about Dan. B. A sole proprietorship has been created because Gary is the only person who can be held accountable for the risks of the sales transactions. C. A silent partnership has been created because Gary is the person who is running the EBay store, so in the case of a lawsuit stemming from sales, Gary would be held responsible because he controls that portion of the business. D. A partnership has been created because both Gary and Dan are sharing the risks and rewards even though they are doing different activities. E. An S-Corporation (or perhaps a LLC) has been formed because they created an EBay store, which means that in the event of a lawsuit, the store would be held responsible instead of Gary and Dan.

Answer: D. This question comes from a lecture and is relatively easy. It comes right out of the example where two roommates start to sell stuff and since they are sharing risks and rewards, then they have a partnership. LSB 118, Barron's page 315.

120. Prof. Emerson is worried about people breaking into his office to steal his lecture notes. In help prevent any break-ins and unauthorized use of his lecture notes and course material, Prof. Emerson contracts with the reputable firm of 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 for a couple weeks when an incident occurs. Adam, Prof. Emerson's most trusted TA, who will be returning in the fall, 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 on red paper. 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 advice Adam of the most likely result: A. Adam will win because the Security Guard is Prof. Emerson's agent. B. Adam will lose because the security guard is an independent contractor and Prof. Emerson is not liable for the actions of his independent contractor. C. Adam will lose because the security guard is Prof. Emerson's agent. D. Adam will win because the security guard is an employee of Prof. Emerson. E. Adam will win though the security guard is an independent contractor having an armed guard is inherently dangerous.

Answer: E - LSB 79, normally, a hirer would not be liable for the independent contractor, but there are two instances when he would be liable--public policy and negligent hiring. Prof. Emerson would be liable because he hired an armed security guard, which is inherently dangerous (public policy).

153. Which statement about corporations is true? A. Corporations are a modern legal creation, originating during the industrial revolution of the 1800s. B. Corporate shareholders cannot serve on the board of directors. C. Corporations, when created, must choose between its state of incorporation and the state where it has its principal place of business as its place of domicile. D. Corporations are not protected by the Freedom of Speech Clause of the First Amendment because they are not persons. E. Corporations are subject to double taxation.

Answer: E, LSB 127-131.

65. John brings a breach of contract claim against George, Ringo and their music production company, Bugs Records, Inc., which is incorporated in Delaware. The production company's main office and principle place of business are in Los Angeles, California. For diversity jurisdiction to exist, which of the following must be true? A. John and George are domiciled in Tennessee, Ringo is domiciled in Delaware. B. John is domiciled in California, George is domiciled in Tennessee, Ringo is domiciled in Delaware. C. John is domiciled in California, George and Ringo are domiciled in Georgia. D. John is domiciled in Georgia, Ringo is domiciled in Georgia, George is domiciled in California. E. John is domiciled in Georgia, Ringo and George are domiciled in California.

Answer: E, LSB pages 22-23, Barron's page 45.

161. Which one of the following is not one of the five elements of the Business Judgment Rule? A. No personal Interest (disinterestedness) B. Due Care C. Good Faith D. No Abuse of Discretion E. Unforeseeable Circumstances

Answer: E, Lectures, LSB 156-157, Barron's page 376.

121. 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 long time 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 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? A. The supplier would lose any case against CFS because Chris is no longer a CFS employee and therefore is no longer an agent of that business. B. The supplier has a case against CFS because the account number that was used to order supplies was in fact, for CFS. C. The supplier has a case against CFS, but would end up losing because Chris has been gone from CFS for over a month, which ordinarily is the longest time frame allowed for lingering authority to be present. D. The supplier would have a case against Chris only, because he is the principal acting on his own behalf and he should be responsible for the payments. E. The suppliers have 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.

Answer: E, this is from LSB 68. CFS never gave any type of notice, neither constructive nor actual notice, therefore it left Chris with lingering authority and can be held accountable in this instance to the suppliers.

94. Sam Student is graduating in May and is applying to law school. Ever since his BUL4310 course, Sam has been interested in specializing in Intellectual Property and Sam writes as much in his personal statement during the application process. Which of the following areas will Sam study in depth if he chooses to pursue this specialization? A. Patents B. Copyrights C. Trademarks D. Trade Secrets E. All of the above

Answer: E. All of the above, LSB starting at 50, Barron's page 587.

92. Georgia, a UF Student, takes a trip to New York City with friends for spring break. While in the "big city" Georgia wants to get her 6 year old sister the hottest new toy for her upcoming 7th birthday. Georgia spends a whole day searching for the "Sweet Baby Craig Doll" but finds most stores sold out and the few with the doll in stock charging $500, which is 5 times the retail price. A man approaches Georgia as she leaves a store and offers to sell her a "Sweet Baby Craig Doll" for $25 cash. The man tells Georgia the doll is authentic. The man shows Georgia the doll and it looks identical to the dolls she has been shopping for and even comes in packaging that looks identical to the Dolls in the store. Georgia buys the doll and gives it to her sister, not realizing the doll was actually a very poorly made counterfeit product. Which of the following is least likely to be a cause of action flowing from Georgia's Transaction? A. Fraud B. Breach of Contract C. Intellectual Property Infringement D. Product liability E. All of the above

Answer: E. All of the above. LSB 51-52.

122. Tracy worked as a storage stocker at Trans-Am for 17 years. She was fired after being caught throwing chairs into windows. Unemployed Tracy wanted to get revenge. She wanted to order 4,000,000 rolls of toilet paper and leave the bill with Trans-Am by hacking into the Trans-Am network and using her employer ID number before it expires. If Trans-Am succeeded in issuing a constructive notice to its supplier before Tracy ordered the toilet paper rolls, what type of authority would Trans-Am still have over Tracy? A. Apparent B. Lingering C. Actual D. Implied E. None of the above

Answer: E. LSB 68. By issuing a constructive notice, Trans-Am no longer has any authority over Tracy.

108. Which one of the following statements is true? A. Agents are fiduciaries. B. A principal may be liable for an agent's actions. C. An agent has a duty of loyalty, obedience, and care. D. The principal has a right to an accounting. E. All of the above

Answer: E. LSB 79-83, Barron's page 285.

138. After five years of working at the Gainesville Debonefish restaurant, Aaron decides he wants to apply for the open sushi chef position at the better-paying Lizardfly sushi restaurant downtown. Brian, the owner of Lizardfly, truly believes the customers of his 22-employee restaurant prefer Asian workers handling their food. Aaron, a white male, is not hired. Peeved when he finds out a young Asian that is new to the restaurant industry was hired, Aaron decides to file a Title VII claim. Will it be successful? A. No, customer preference for race is a Bona Fide Occupational Qualification. B. No, Lizardfly has too few employees to be covered by Title VII. C. No, Only current or former employees may file under Title VII. D. No, Caucasians are not a protected class under Title VII. E. Yes, this is an example of racial discrimination under Title VII.

Answer: E. LSB Title VII Section starting on page 95, Barron's page 564.

23. Sabrina is accused of being a witch. In court, Julian testified that Sabrina had used black magic to put a curse on his ability to grow hair. When in court, the judge forces Sabrina to lie on the ground and ties her hands up with a rope. He then begins to question and accuse her of being a witch and begins to torture her whenever she denies the accusations. The reality is that Sabrina is a mortal and is being falsely accused by Julian and the judge. According to lecture, what system of law does this scenario depict? A. Civil law B. Common law C. Criminal law D. Adversarial E. Inquisitorial

Answer: E. Lecture, Story/Example in Class with volunteer as Witch, LSB 40, Barron's page 70.

21. True or False: The common law mainly originated from a long series of decrees by kings and/or other high executive officeholders.

Answer: FALSE. LSB 13. The origins of common law are found in England and the overall accumulation of judicial decisions (precedent). William Blackstone wrote about and commented on the common law in a great work published in 1769, but the common law arose several centuries earlier.

123. A minister had no permission, nor even any apparent authority, to undertake alone significant business decisions for his church. But he went ahead and, in the name of the church, obtained a mortgage for some new real property. The vestry (board of directors) was upset that the minister acted first without consulting it, but at its next meeting the vestry decided that the deal the minister obtained looked fairly good. So it passed a resolution reminding the minister that he had no authority to act as he did, but also agreeing to pay the mortgage. True or False: The church can later successfully argue that it is not bound by the minister's actions.

Answer: False - agency/ratification, at LSB 68-69., Barron's page 289.

142. True or False: Title VII of the Civil Rights Act of 1964 outlawed discrimination in hiring, firing, and compensation because of an individual's race, color, sex, disability, or national origin.

Answer: False [Barron's page 558. Disability was not covered.] LSB 100.

141. True or False: A one-time instance of alleged sexual harassment, even if it is not severe, will usually result in the courts upholding a discrimination claim.

Answer: False [LSB 106-107: There must be a pattern of discrimination, a one-time instance is usually not enough]. Barron's page 562.

165. True or False: Generally, partnerships are subject to double tax because the partnership is taxed at the entity and partner level.

Answer: False, LSB 113-114, Barron's page 313.

164. True or False: Corporations are 60% of all U.S. business entities.

Answer: False, LSB 114 (corporations are only 20% of all entities).

193. True or False: Rob wants to start a company so that he can sell photographic equipment, Rob should choose a sole-proprietorship so he can have exclusive control over any of the investors in his business.

Answer: False, LSB 116.

152. True or False: Sole proprietorships have limited liability, meaning the business assets of the proprietorship and the personal assets of the proprietor are separate.

Answer: False, LSB 117.

205. True or False: Kane and Abel wanted to start a car repair business. Kane is the "go to" guy in car repairs and management. Abel knows nothing about car repairs but has the finance to support the business. To limit Abel's liability, Kane and Abel enter into a limited partnership. As a general partner, Abel will only be liable for the amount he invests in the company.

Answer: False, LSB 124, Barron's page 318. Only limited partners in a limited partnership are not held personally liable for partnership obligation beyond the amount of his/her capital contribution.

197. True or False: 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. 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.

Answer: False, LSB 146.

189. True or False: Shareholders have the power to, via a "super-majority" vote (usually twothirds or three-fourths of the total shareholders), invoke the business judgment rule and thus participate in any management activity authorized by the super-majority shareholder resolution.

Answer: False, LSB 156, Barron's page 344.

192. True or False: James is the CEO of a successful corporation, "Shoez, Inc." James decides that "Shoez, Inc." will be merged with an acquiring company, "iShoes, Inc." James makes this decision rapidly and without any advice from experts. It is likely that James will be protected under the business judgment rule.

Answer: False, LSB 156-157, Barron's page 376, Lectures.

85. True or False: Regular copyrights last the life of the creator, plus 95 years. However, corporate copyrights last for only 70 years after the life of the creator.

Answer: False, LSB 55, Barron's page 590 16

66. True or False: In the United States legal system, counties have sovereignty.

Answer: False, LSB page 21.

68. True or False: In reference to long-arm jurisdiction over a defendant, most state statutes set limits short of the Constitution and do not go as far as the Constitution would permit.

Answer: False, LSB page 22, Barron's page 48

67. True or False: When deciding venue issues, courts tend to look at the Plaintiff, except in cases involving out-of-state defendants and cases involving divorce where the courts tend to allow the defendant to pick the venue.

Answer: False, LSB pages 22-23, Barron's page 49.

194. True or False: Guillermo decides that he is going to set up a corporation for his new business. The corporation pays dividends to Guillermo of $5,000. Since the corporation already paid taxes on this money, Guillermo does not have to treat this $5,000 as income on his personal income tax return (and therefore Guillermo is not subject to taxes on this money).

Answer: False, Lectures on Double Taxation, LSB 131.

183. True or False: Shareholders within a company are ineligible to file suit due to the provisions in the Clayton Act, which explicitly deny such action.

Answer: False, Lectures, Barron's pages 522-523, they can sue the corporation or file a derivative action on behalf of the corporation.

187. True or False: If a shareholder loses a derivative action against a corporation, that shareholder must sell his/her shares in the corporation.

Answer: False, Lectures, LSB 147.

86. True or False: A ten-year-old child's original yet unintelligible and essentially unmarketable drawing on a paper plate cannot be copyrighted.

Answer: False, Lectures, LSB 53, Barron's page 590

128. True or False: In agency law, the agent is not subject to the principal's right of control.

Answer: False, Lectures, LSB 79 Chart and discussed in 78.

46. True or False: "The prophecies of what the courts will do in fact, and nothing more pretentious, are what I mean by the law" is a definition of law that has been attributed to Cicero, St. Thomas Aquinas, and/or John Locke.

Answer: False. LSB 4-5. This is Oliver Wendell Holmes, Jr.'s definition of the law.

90. True or False: To make a "Knockoff" and to "Palm Off" are synonymous terms.

Answer: False. LSB 52-53

Employment Discrimination Law 134. True or False: Jerry, an African American man, goes to apply for a job at a local accounting firm and has an interview with the firm's partner, Tom. On paper, Jerry looks perfect for the job: he has a degree from UF, he has 10 years of Big 4 accounting experience, and he even has great letters of recommendation. However, after his interview with Tom, Jerry is not hired and Tom continues to search for other accountants who Tom feels will "have a personality that better fits with the firm." Disparate treatment has occurred.

Answer: False, Tom had no intent to discriminate based on skin color, sex, or anything else, LSB 100 under Disparate Treatment. Barron's page 560.

84. True or False: Roman, a famous artist, just created a painting known as "The Kernal" and he wants to protect that work. Roman should take that painting to the local patent office to protect copying of the painting.

Answer: False, a copyright protects works of art, a patent protects tangible things. LSB 48-50, 54, Barron's page 588

155. Steven comes to you, his attorney, for a consultation about choosing an appropriate business entity for his new business with Tom. Though Steven and Tom prefer an informal arrangement, they are willing to balance this objective to limit personal liability. In fact, Steven and Tom say that their sole objective is to limit personal liability. True or False: Steven and Tom can achieve this goal with any of the following business entities: general partnership, limited liability company, corporation.

Answer: False, although LLCs and corporations provided limited personal liability, general partners are personally liable for debts of the partnership. Barron's page 308, LSB 120.

195. True or False: In the formation of a sole proprietorship, an agency relationship must be created, so as to carry out the functions of that business.

Answer: False, an agency relationship needs more than one person. LSB 116.

182. True or False: Quincy wants to start a company so that he can sell energy drinks, Quincy should choose a corporation because a corporation is the only entity that provides limited liability for all investors. 36

Answer: False, as discussed in Lectures about limited partnerships, LLCs, and corporations. LSB 125, Barron's page 312.

129. Paul owns a construction company that specializes in housing construction. Adam owns a company that specializes in electrical wiring installation for houses. Paul hires Adam to install electrical wiring in a house Paul is building. Adam brings his own tools to the construction site and installs the wiring over the course of three days. When Adam finishes the installation, Adam leaves the construction site, takes his tools with him, sends Paul a bill for the installation, and does not return to the site. True or False: Based on these facts, Adam was an agent of Paul.

Answer: False, see LSB 78-79 Chart.

97. True or False: Compared to copyrights, patents offer stronger protections, and patents are more likely to be granted.

Answer: False. (LSB 54: Patents do offer stronger protections but are much LESS likely to be granted). Barron's page 588.

41. True or False: The Adversarial Approach is used by most Civil Law nations, in this system, judges develop the law.

Answer: False. . LSB 40, Lectures, Barron's page 70

44. True or False: When trying any case, it is important to understand the differing theories of law, because judges usually adhere to the same theory when considering the law to apply in a case. If you know the differing theories and you know which theory a particular judge has followed in the past, then you can use this information to accurately predict the outcome of your case.

Answer: False. As stated in class and in the LSB, judges may adopt more than one theory to determine the outcome of a case.

125. True or False: Independent contractors are always agents of the person who hired them.

Answer: False. Barron's page 285 (Independent Contractors are not generally agents of their employers).

139. True or False: If sexual harassment occurs at work but is not blatant or direct, it is considered "quid pro quo" and the company will be held liable.

Answer: False. LSB 106, Barron's page 562.

47. True or False: The phrase "an eye for an eye, a tooth for a tooth" best describes the Latin phrase quid pro quo, also known as the law of retaliation.

Answer: False. LSB 11. Lex talionis is the law of retaliation and is described in the Hammurabi Code as "an eye for an eye, a tooth for a tooth." Barron's page 3.

38. True or False: Common law is referred to as "case law" and is based on attempts to establish a body of legal rules in a single systemized code.

Answer: False. LSB 12-15, Barron's page 7.

215. True or False: Absent a written agreement to the contrary, partners in a general partnership enjoy limited liability for the debts of the partnership.

Answer: False. LSB 120 (partners have unlimited liability for the debts of the partnership). Barron's page 315.

216. True or False: One advantage of corporations is that they are not subject to income tax. Instead, the shareholders are taxed on the dividends they receive.

Answer: False. LSB 131 (corporations are subject to double taxation).

26. True or False: According to American legal history, overcoming stare decisis is a common practice by the lower courts.

Answer: False. LSB 14, Barron's page 8.

160. True or False: For every corporation, you must have a state charter, which is granted after you file a constitution with the state. This charter is considered the corporation's birth certificate and is usually constructed narrowly to fit the corporation's needs.

Answer: False. LSB 143, Lectures.

39. True or False: Legal Realism is the idea that members of society should follow the rules because to do otherwise risks anarchy.

Answer: False. LSB 33-34.

18. True or False: Very influential in the development of the U.S. Constitution, Charles de Secondant, known as Montesquieu, wrote Spirit of the Laws, considered the best statement of common law as it existed when the U.S. became an independent nation.

Answer: False. LSB 4-5, 31. Blackstone did that. While Montesquieu published The Spirit of Laws, which "helped spur the writing of constitutions throughout the world, including the U.S. Constitution" this is NOT the same thing as common law.

144. True or False: Ordinarily, for sexual harassment to exist, the harasser must be a boss or some type of superior.

Answer: False. The harasser can be one or more co-workers, not just a boss. So it is false to say that the harasser MUST be a boss or some type of superior (although employers may be vicariously liable for the sexual harassment committed by an employee). LSB 106-107, Barron's page 562.

136. True or False: In 1997 a group of men filed a class-action lawsuit against the Hooters restaurant chain for sexual discrimination. They alleged, among other things, that the company's practice of employing only women as servers was illegal under Title VII. The company used the Bona Fide Occupational Qualification defense and the outcome of the lawsuit was that Hooters was required to pay $3.75 million to reach a settlement, but the court did hold that Hooters' hiring practices qualified under the Bona Fide Occupational Qualification exception and were thus allowed under the law.

Answer: False. There was no such ruling. LSB 104.

40. True or False: How judges apply the law to specific disputes may depend in part on their personal philosophical views. Therefore, a proponent of the Historical School of jurisprudence may decline to move away from past rules because of his/her hesitance to move away from time tested methods, while a proponent of Positivism will follow that theory of law and thus weigh the costs and benefits to all parties involved before rendering a decision. Yet, the decisions each reaches may be the same.

Answer: False. Wrong definition for Positivism (that's really the definition for Utilitarianism). See LSB 29-30, Lectures.

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

Answer: Inquisitorial and adversarial and common law and civil law systems. True. LSB 40-42, Barron's page 70.

19. True or False: John Locke promoted freedom and his ideas were influential in the development of the U.S. Constitution.

Answer: TRUE. LSB 5, Lecture.

6.True or False: Ethics is more likely to influence law rather than vice-versa.

Answer: TRUE. LSB 7-9, Lecture, Barron's page 5.

151. True or False: In a general partnership, the partners are fiduciaries of each other.

Answer: True, LSB 119-120. Barron's page 320.

217. True or False: Corporations are legal entities that are separate from its shareholders, directors, officers, and employees. In addition, the corporation can buy and sell property, enter contracts into contracts in its own name, and sue and be sued.

Answer: True, LSB 127-128. Barron's page 343.

Establishing a Business (corporations, partnerships) 150. True or False: Three aspects of a corporation are (1) perpetual existence, (2) limited liability for shareholders, and (3) easy transferability of ownership.

Answer: True, LSB 128.

154. True or False: While some federal laws regulate corporate activities, corporations are generally regulated at the state level.

Answer: True, LSB 134, Barron's page 348.

57. True or False: A court needs both subject-matter jurisdiction and personal jurisdiction in order to decide a case.

Answer: True, LSB page 22, Barron's pages 45-48.

58. True or False: China, France and Japan have a unitary form of government - centralized with the national government as the true zone of power and where the local authorities have little, if any, power.

Answer: True, LSB page 22.

87. True or False: The day before her class is to discuss a particular poet, Ms. Cohen, a tenth grade English teacher, runs across a scholarly, 300-page copyrighted book from 1995 that deals extensively with that poet and others from his era. She distributes to each student in her class (120 students in five different class periods) three pages copied from that book. Ms. Cohen is not violating intellectual property law.

Answer: True, Lecture with respect to "fair use", LSB 51, Barron's page 591

191. True or False: Partners are fiduciaries for one another, and they also can be held Answerable for another partner's actions.

Answer: True, Lectures, LSB 119, Barron's page 320.

201. True or False: Partnership by estoppel is a form of apparent authority, and it involves - among other things - a third party's reasonable, but erroneous, assumption that two or more people are carrying on a business for profit.

Answer: True, Lectures, LSB 122.

188. True or False: A corporation has the legal capacity to both sue and to be sued in its own name.

Answer: True, Lectures, LSB 128, Barron's page 356.

190. True or False: Shareholders rarely have any significant power (and this should be no exception). Moreover, the business judgment rule, if it is to be invoked, is a defense against suits claiming corporate directors and/or officers should be liable for some allegedly poor decision. There are no formal requirements for a partnership, and it is not required that the partners expressly intend to form a partnership.

Answer: True, Lectures, LSB 145, 156, 120.

124. True or False: Agency is the legal relationship whereby an agent has the authority to act on behalf of a principal.

Answer: True. Barron's chapter 14.

25. True or False: Code is a word, which in common law both is a collection of statutes and refers to a collection of enactments by Congress and/or state legislatures.

Answer: True. Code, in the common law, refers to a collection of statutes enacted by legislative bodies, including Congress and state legislatures. Obviously, in the Civil Law sense it may refer to the Justinian Code and, more generally a national body of laws. Barron's page 3.

45. True or False: The Vikings played a significant part in the origins of the English jury system.

Answer: True. Discussed in class. LSB 13.

206. True or False: All corporations have one or more agents that act on the corporation's behalf.

Answer: True. Discussed in lectures. LSB 128.

7.True or False: Stare decisis binds all of the lower courts of a jurisdiction to determinations rendered by the highest court in that same jurisdiction.

Answer: True. LSB 14, Barron's page 8.

218. Professors Lopez and Srinivas want to from a General Partnership aimed at preparing business students for the GMAT. True or False: Two factors that the professors should address in the Partnership Agreement to guarantee that the partnership is properly formed are Equal Management Rights in the General Partnership and the Sharing of Profits and Losses from the General Partnership.

Correct Answer: True.