Business Law & Ethics Exam 1, Business Law Exam 1, blw 411 1-6, law exam 3, BLW 411 Ch 22 Final Exam, Bus Law 391, BLW Chapter 3 Practice, BLW 411 Ch 16 Final Exam, LEGAL AND SOCIAL ENVIRONMENT OF BUSINESS FINAL

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Chan wants to file a lawsuit. What will be the first stage of litigation for him?

Pleadings

Under the rule of omission, infringement occurs even when the alleged infringing invention lacks an essential element of the patent holder's claims in the patent application.

false

A limited liability corporation (LLC) is formed by

filing articles of organization with a state public official.

As a general rule, judges are _________________ and juries are ____________________.

finders of law, finders of fact

Securities transactions occur in two settings. One is the original and reissuance of securities by a business to raise capital also known as the ____ market.

primary

Cybersquatting describes the practice of

registering multiple domain names and then selling them back to companies at inflated prices.

Corporations are created through a state law filing, and their formation is governed by state statutes.

true

An example of a forum selection clause is

A provision in a contract between Levin and Anna which says that there is a dispute between the parties, it will be in a court within Levin-s state.

The law tends to offer more protection to commercial tenants than to residential tenants.

false

The Foreign Corrupt Practices Act was created to prevent foreign officials from bribing U.S. companies or officials.

false

Which of the following statements about organizational ethical systems is true?

informal value systems standing alone may be too vague and impractical

Two retailers that sell sporting goods conspire to set prices on softballs. Under the Sherman Act, this conspiracy is __________.

A per se violation

Which of the following situations involving infringement is most likely to be protected by a fair use defense?

A professor studies an experiment in a published journal and draws analogies with it during a class lecture.

In order to pursue a copyright infringement claim against an Internet service provider (ISP), the copyright owner must first provide the ISP with all the following except:

A statement by the complaining party that economic loss as a result of the use of the material has occurred.

Which of the following is true of trial courts?

A trial court decision is binding on the parties to the case an no one else.

Which consumer protection applies to loan documents regulated under Truth in Lending Act (TILA)?

Right to cancel the loan contract within 3 business days.

Local zoning ordinances are generally designed to prevent nuisance by segmenting a municipality into zones—industrial, residential, and so forth.

true

Which warranty may be created through advertising?

Express warranty.

The simplest business entity with multiple people is a

partnership.

Credit that is not collateralized is known as

unsecured debt.

Mary Beth has written a novel. Copyright protection regarding her work will be for

70 years after her death.

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

Deputy Kelly

Personal property must be tangible but need not be movable.

false

A _____ agrees to be responsible for a debt, but only if the debtor actually defaults.

guarantor

The principals in an LLC are referred to as ___________.

members

The five members of the Securities and Exchange Commission (SEC) are called

COMMISSIONERS

Negligence may result from either an intentional or unintentional act.

False

Res Ispa Loquitor does not require that the plaintiff prove the exact cause of negligence

False

A trademark can be any of the following except a

formula.

Two manufacturers of active wear conspire to set prices on certain rainproof jackets. Under the Sherman Act, this conspiracy is __________.

A per se violation

1. Chapter 24 Trademarks, Service Marks, and Trade Dress Trademarks, Service Marks, and Trade Dress Businesses often invest significant resources into their trademarks, service marks, and trade dress because these marks generate brand identity and make it easier for their customers to identify, locate, purchase, and recommend their products and services. Distinctive words, symbols, and phrases are protected by trademark law (including the shape or color scheme of a product's packaging, called trade dress). When marks are used to identify services, they are called service marks. These valuable assets require business owners and managers to be vigilant about preserving trademark protection and preventing their own company from infringing on other entities' trademarks.

Arbritrary or fanciful: Starbucks for coffee shops. Suggestive: Roach Motel for insect traps. Descriptive: Park 'N Fly for airport parking lots.

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

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

22.) LaTavian was a midlevel manager for Superco. He saw financial irregularities within Superco and reported them to the federal authorities. The SEC followed up on LaTavian's tip and discovered fraud at Superco which led to an SEC enforcement action and recovery from Superco. Under the Dodd-Frank law, what percentage of the recovery is LaTavian entitled to as a reward for being a whistle-blower? A.) 5 to 10 percent B.) 10 to 30 percent C.) 50 percent D.) LaTavian is entitled to no reward, as Dodd-Frank makes no provision for whistle-blowers.

B.) 10 to 30 percent

15.) Which of the following is least likely to be considered a mitigating circumstance? A.) Age. B.) Sex. C.) Mental illness. D.) Lack of a prior criminal history.

B.) Sex.

Strict liability applies to

C) Abnormally dangerous activities

The common law of torts is primarily intended to

C) Compensate Victims

The three primary categories torts fall into are

D) International Torts, Negligence and strict liability,

Understanding Warranties A warranty is a seller's promise to a buyer regarding the quality and/or functionality of a particular product. Warranties may be given expressly or they may be required by law (UCC implied warranties). Warranty statutes also typically allow sellers to disclaim both express and implied warranties, so long as the disclaimer is done conspicuously and plainly.

Express warranty: must be an actual promise and not puffery Implied Warranty (Merchantability): applies to all sales from merchant to buyer Disclaimer: accomplished through use of the phrase "as is" Implied Warranty (fitness): buyer relies on sellers advice and expertise

Gina hired Frank, an attorney, to handle her divorce. If, during the face-to-face negotiations Frank strikes the opposing attorney, Gina will be liable because Frnak was her agent employee.

False

1. Chapter 23 Understanding Personal and Real Property Rights Understanding Personal and Real Property Rights Personal and real property are an integral part of the legal environment in which business operates. Personal property is defined as property that is both tangible and movable. Real property, also called real estate, is land and any structures built upon it, as well as plant life and vegetation. Ownership rights vary depending on the category of ownership interests.

Fee Simple: Highest level of general rights in real estate Leasehold Estate: Qualified right to use real estate for a limited time Life Estate: Interest that lasts for the lifetime of an individual Easement: Privilege to use real estate owned by another

Which of the following are ways in which state antidiscrimination statutes tend to differ substantially from federal laws?

State statutes tend to cover more employers and more protected classes.

The State of California has passed a law banning the use of poultry meat in restaurants if the chickens were raised in what the legislators defined as "inhumane industrial operations." The law set a fine of $5,000 for restaurants that were in violation and set up an administrative court that would hear appeals from restaurant owners. This law making the use of certain types of poultry illegal is a type of law known as a/an _________________ and the rules that set out the fine and the administrative court are a type of law known as a _________________?

Statute, procedural law

Congress passed a law that permitted government agents to tap the phones of the executives of internet service providers (ISPs) without the probable cause and warrant normally required by the Fourth Amendment. The rationale was that ISPs were involved in frequent violations of citizen's' privacy rights and the taps were needed to uncover evidence of this illegal activity. Allen, the president of an ISP, had his phone tapped. He has challenged the law in federal court. What level of scrutiny will the courts apply to this law?

Strict scrutiny

Which of the following statements accurately describes a feature of the U.N. Convention on Contracts for the International Sale of Goods (CISG)?

The CISG specifically provides that contracts are not subject to requirements as to format.

Which of the following powers does the EEOC have?

The EEOC has the power to sue on behalf of aggrieved employees, to investigate discrimination claims and to make rules.

Which of the following does not have to be shown for copyright protection to be granted?

The work has a present or potential value.

2e. What potential market effect could the copyright... What potential market effect could the copyright holder claim to demonstrate in a copyright infringement suit?

The works are diminished in value because they were made free to nonpaying clients (EEC's sales team).

2c. What was the nature of the protected... What was the nature of the protected works at issue in this scenario?

The works were private and put out by the creators only to paying clients.

The Age Discrimination in Employment Act (ADEA) would most likely apply to which of the following situations?

Theo, a 65-year-old man, was replaced by Prescott, a 50-year-old man.

Which of the following statements is true?

There are no federal common law crimes.

Salena is walking her 6-month-old baby in a stroller. Marlon, a stranger, looks into the stroller and says, "Wow, that's one ugly baby." Salena is furious and sues Marlon for intentional infliction of emotional distress. Salena will likely lose.

True

The centerpiece of a fiduciary obligation is the agents duty to act with due care when performing the responsibilities of the agency.

True

From state to state, LLC statutes

can vary considerably.

Which of the following statement(s) is/are true? a. If Heinrich is driving recklessly and smashes his car into Shanna, Heinrich could be both prosecuted and sued for his actions. b. Procedural law sets out the steps that the state of Iowa must take if it wishes to have its agents break into the office of Benjamin and search his computer for evidence of embezzlement. c. In the United States, breach of contract is classified as civil law, and the laws that give a party the right to sue for breach of contract are known as substantive laws. d. All of the answer choices are correct.

d. all of the answer choices are correct

The City of Draconia has informed Miko that they are going to evict her from her land and auction it off for nonpayment of $100 in taxes. Miko is contesting the tax bill and wants to stop them from evicting her and auctioning off the land. Which of the following would best enable Miko to accomplish this?

injunction

An advantage of a sole proprietorship is

it is not subject to corporate income taxation.

Constitutional law and administrative law are known in the United States as _______________ sources of law.

primary

A warrant is issued based only on

probable cause.

Mikael, a union boss who was angry that his employer reduced benefits and refused to raise wages, organized several employees in his union to occupy the employer's building for the purposes of stopping work. This action is known as a/an

sit-in strike

Danielson opened a business in which she had unlimited liability and could avoid annual filing requirements. Danielson likely ran a business known as a

sole proprietorship.

LaQuisha paid Francis for an original Jean-Michel Basquiat painting, but while he accepted her money, he has not given her the painting. Which of the following equitable remedies would be appropriate for LaQuisha to use in her legal proceeding against Francis to compel him to turn over the painting?

specific performance

Walker, a federal court judge, cited several prior cases in reaching her decision in a case, deciding her case in a manner similar to the cases she cited. This is known in the law as the process of:

stare decisis

Corporations are created under the authority of __________.

state statutes

Ginger declared bankruptcy and Jackie, her trustee, stopped a transfer to Thriftyco, a creditor, because she felt it gave an unfair advantage to Thriftyco over other creditors. This type of transfer that can be stopped by the trustee is known as a

voidable transfer.

The city of Happy Trails passed an ordinance which prohibited women from working for the police department or sheriff's department in a law enforcement position. If Geneva and a group of women who were denied law enforcement jobs challenge the city ordinance in federal court, when considering the city ordinance, the courts will employ

Intermediate scrutiny

The judicial branch of the United Nations charged with settling legal disputes submitted by members is the:

International Court of Justice.

Which of the following statements is true of international arbitration?

International arbitration usually has no connection with the country in which the arbitration is being held.

1. Chapter 16 Overview of the Securities Market Overview of the Securities Market Certain business entities have the option to raise capital for business operations through selling ownership in the venture (equity) to investors who hope to receive a return on their investment based on the profitability of the company. Businesses may also raise capital by issuing debt instruments to public investors that desire a fixed rate of return that is not pegged to profits. The issuance and trading of equities and debt instruments to public investors is highly regulated by securities law.

Investment: Maybe a cash or non cash investment Commonality: Maybe horizontal or vertical Profit Expectations: Opportunity for a return on the investment Efforts of others: Promoters must be primary sources of profits

Trace was from Nebraska and sued the Iowa State Bureau of Investigation (ISBI) based on alleged violations of Trace's civil rights by ISBI agents. Trace sued under the federal Civil Rights Act. His lawsuit was for $70,000. In which of the following courts should Trace file his lawsuit and why?

Iowa federal court because of federal question jurisdiction.

Jake lost his wallet and put an ad in the online student newspaper saying "Lost wallet. Reward $100. Call Jake." Melanie, a classmate of Jake's, saw the ad, and spent two days looking for the wallet, missing three classes. Jake later found his wallet in the student parking lot. When Jake found out about all the work Melanie had done, he thanked her, but didn't give her $100 or anything for her troubles. Which of the following is true of this situation?

Jake offered a unilateral contract, and Melanie is entitled to nothing because she did not perform.

Which of the following would be economic activity that the federal government could regulate under the Commerce Clause?

Jessie drives a diesel truck, but just in two states, Nevada and Arizona, he never crosses other state lines and in fact does 99% of his business in Nevada. Christa has an organic farm in the state of Vermont, selling produce only at a local farmer's market. There are thousands of farms just like Christa's around the country that have a substantial impact on interstate commerce, of which, Christa's farm has only a tiny effect. Marcus has an internet business that ships products to five states in the Southeast, but no employee in his business ever crosses state lines for a business purpose. All of the answer choices involve economic activity that the federal government may regulate under the Commerce Clause.

Kamalla is the CFO of Fraudco. Her boss, Driscoll, recently told her to shred all evidence of the financial statement fraud that Fraudco has been engaged in to hide the evidence from the SEC. The SEC had been conducting an investigation of Fraudco but had released no findings yet.

Kamalla could be imprisoned for up to 20 years if she shreds the documents.

Emily went to court to get the court to stop Laura, her neighbor, from driving her car across Emily's property. Laura had been driving across the property for 10 years, and Emily had finally had enough. What defense might Laura have against Emily's claim?

Laches

2. Chapter 15 Corporate Formation Corporate Formation Although the corporate form of business entity provides significant liability protection for its principals, it also typically has the most formal filing and compliance requirements compared to other entities. Principals that wish to form a corporation do so under the authority of state statutes. Each state has a specific corporate formation statute, and requirements vary to some degree from state to state. Preincorporation obligations of a business venture may trigger personal liability for one or more of the principals. Therefore, a working knowledge of the stages and sequence of corporate formation helps business owners and managers limit risk and reduce liability. Step 2 - Determine which action of CVI's principals fits into which stage of corporate formation. Then drag the action to the applicable stage of formation.

1. Preformation: Johann's preliminary activities for CVI 2. Legal Formation: Principals hire counsel to file articles 3. Postformation: Wolfgang and Christian elected as directors 4. Commence Business Operations: Johann begins to make sales calls for CVI 5. Corporate Formalities: Christian files annual report with state agency

Which of the following best represents arbitration?

Laila is hearing and will be deciding a matter in which an attorney will represent their corporate clients. The parties will be able to present limited evidence before Laila.

Which of the following activities would management be permitted to do under federal law?

Launch a marketing campaign against unionizing efforts.

Judicial review is best represented by which of the following hypotheticals?

Laura, a federal appellate court judge, is researching the language of a statute to determine if it is unconstitutional.

Which of the following is correct about the law in the United States?

Law is prescribed by controlling authority

Which of the following is correct about the law in the United States?

Law is prescribed by controlling authority.

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

A U.S. District Court. (Only appellate courts make precedent. Each of the choices is an appellate court except the U.S. District Court, which is a federal trial court.)

In the city of Allegram, Congress has passed a new enabling statute. In response to this statute, the Public Emergency Management Agency (PEMA) must devise procedures to ensure the safe evacuation of persons with physical disabilities in shopping centers during emergency situations. These procedures must be put in place within a year of the date of the law's passage. Which of the following citizen suits against the PEMA is most likely to be considered valid by a court?

A claim made by an activist group that the PEMA failed to provide regulations detailing such procedures within the one-year statutory period.

Which of the following would not be a possible obstuction of justice charge?

A defendant takes the 5th Amendment when questioned by investigators.

Carlton was a director of Rich Financial, Incorporated. Which of the following are duties that Carlton owes to Rich Financial?

A duty of care and a duty of loyalty.

Which of the following represents a utilitarian approach to ethics?

A government policy that takes money from a small number of wealthy people and distributes it to a large number of poor people, thus creating more positive, good feelings for a large number of people receiving the money than negative, harmful feelings for the small number of people from whom it was taken.

Garbo purchased a riding lawnmower from Thrifty mowers for $5,000. It was their standard, top-selling model. Garbo paid in cash and scheduled a delivery for the next day to her house. If Thrifty does not deliver the mower, then refuses to pay back her money, what is the best remedy for Garbo to seek?

A legal remedy for the $5,000.

Which of the following is a secondary source of law?

A model law passed as a guide to states in crafting their statutes on healthcare

Which of the following disputes could be filed with the World International Property Organization (WIPO)?

A patent dispute between a resident of Italy and a company in the Unites States

Two companies that operate social networking websites conspire to set advertising rates at a certain price. Under the Sherman Act, this conspiracy is _______.

A per se violation

Big Manufacturing was interviewing Blondell for a position as a production line manager. He had excellent references for working hard and competence, but one of his references told the hiring supervisor that Blondell had a temper and seemed like he was always "ready to explode." Since Big Manufacturing needed a manager fast, they took their chances and offered Blondell a job. Within a month after being hired, Blondell screamed at a group of tourists visiting the factory and punched Craig, a man who shouted back at him. Craig sued Big Manufacturing for his injuries. What result?

A) Craig wins under the doctrine of negligent retention

Which of the following is a function of the administrative agency known as the Federal Communications Commission?

Licensing television and radio stations.

Under Article 9 of the UCC, which of the following could be used as collateral?

Light fixtures attached to a commercial building

20.) In U.S. v. DeCoster, the defendants' company suffered from an extremely serious salmonella contamination that affected up to 56,000 victums. Peter and Jack DeCoster, defended, saying they had adopted all of the recommendations and precautions but it failed to eradicate salmonella, therefore they were not culpable. Which of the following was the result? A.) The DeCosters were found guilty because they knew or should have known of the risk presented to the public. B.) DeCosters were found not guilty because they recognized the problem and instructed employees to control the problem by doing what was done at another plant. C.) DeCosters were found not guilty because they attempted to correct the problem, thus making senior management not liable. D.) DeCosters were found guilty because the court recognized that when 56,000 people are injured, the corporate officers will always be responsible.

A.) The DeCosters were found guilty because they knew or should have known of the risk presented to the public.

13.) Mike raped Kathy in the parking lot of Tom's Pub. The attorney general/district attorney's office prosecuted Mike on rape charges. Subsequently, Kathy filed a lawsuit against Mike for money damages. Classify each legal action. A.) The attorney general/district attorney's case was a criminal case; Jane's lawsuit was a civil case. B.) The attorney general/district attorney's case was a civil case; Jane's lawsuit was a criminal case. C.) Both cases are criminal. D.) Both cases are civil.

A.) The attorney general/district attorney's case was a criminal case; Jane's lawsuit was a civil case.

32.) Murder is the killing of a human being with malice aforethought. Malice aforethought is the premeditation and planning of the crime. Malice aforethought shows that one considered the consequences of the action and knowingly committed the crime. The killing would be the A.) actus reus. B.) mens rea. C.) voir dire. D.) indictment.

A.) actus reus.

9.) Washington was the CEO of Shadyco, a company that sold vegetables wholesale to restaurants. He was in charge of ensuring that the operations ran smoothly and that the products were kept in a safe condition. Washington paid little attention to the day-to-day operations of his company's five warehouses and as a result, the food became contaminated and several people got food-borne illnesses. However, Washington had no knowledge of the unsafe condition of the food and no intent to contaminate anyone. Under these circumstances, Washington may A.) be convicted of a crime based on the responsible corporate officer doctrine. B.) be convicted of a crime based on malice theory. C.) not be convicted of a crime as he lacked the required negligence. D.) not be convicted of a crime as he lacked the required intent.

A.) be convicted of a crime based on the responsible corporate officer doctrine.

1.) Dixon is on trial for embezzlement, a crime. For her to be proven guilty, her guilt must be proved A.) beyond a reasonable doubt. B.) beyond a preponderance of the evidence. C.) by a preponderance of the evidence. D.) by a reasonable preponderance of the evidence.

A.) beyond a reasonable doubt.

26.) A grand jury will issue a[n] ________ if its investigation indicates that a defendant should be held over for trial. A.) indictment B.) information C.) warrant D.) summons

A.) indictment

15.) The bespeaks caution doctrine focuses on the duty that a/an A.) issuer of stock has to include disclosures in the stock prospectus about cautions that an investor should take; it provides a defense to the issuer if the disclosures are specific and narrowly tailored. B.) issuer of stock has to include disclosures in the stock prospectus about cautions that an investor should take; it provides a defense to the issuer if the disclosures are broad and general. C.) broker of stock has to inform clients about all possible dangers with investing in the markets and to provide limited assurance that the investment will be profitable. D.) broker of stock has to inform clients about all possible dangers with investing in the markets and to provide absolute assurance that the investment will be profitable.

A.) issuer of stock has to include disclosures in the stock prospectus about cautions that an investor should take; it provides a defense to the issuer if the disclosures are specific and narrowly tailored.

2.) Renate purchased common stock in XYZ Corporation, this gives her the right to A.) payments in dividends based on the current profitability of the company. B.) payments in dividends regardless of the current profitability of the company. C.) a position on XYZ's board of directors. D.) a position in XYZ's management.

A.) payments in dividends based on the current profitability of the company.

14.) With regard to the sale of securities, the Securities Litigation Uniform Standards Act of 1998 is intended to A.) prevent private parties from instituting lawsuits against corporations in federal or state court based on state laws that punish misrepresentations or omissions of material facts. B.) compel the SEC to assume an oversight position over institutions that pose a global risk to financial markets. C.) approve or disapprove executive compensation packages, including bonuses, regarding companies deemed too big to fail. D.) criminally prosecute officers and board members of companies that are found to have committed fraud and that have harmed the public or the national economy.

A.) prevent private parties from instituting lawsuits against corporations in federal or state court based on state laws that punish misrepresentations or omissions of material facts.

12.) Charles set up a fraud scheme in which he promised investors huge returns that other investments could not match, but actually paid returns to investors from money paid by subsequent investors and pocketed the rest. Charles is A.) running a Ponzi scheme. B.) running an insider trading scam. C.) engaged in a conspiracy. D.) skimming.

A.) running a Ponzi scheme.

27.) The adjudicative phase of the criminal justice process includes each of the following components except A.) setting bail. B.) entry of plea by the defendant. C.) the filing of an indictment or information. D.) sentencing.

A.) setting bail.

Which of the following would likely be considered a covered disability under the Americans with Disabilities Act?

AIDS

In a bankruptcy, a(n) _____ protects the debtor by prohibiting creditors' initiation or continuation of any debt collection action against the debtor or her property.

AUTOMATIC STAY

The Immigration and Naturalization Service, a federal agency involved in immigration security, has applied a rule stating that prior to deportation, an individual must be allowed a due process hearing at which they can make a case against their deportation. This would be which of the following types of laws?

Administrative laws

Which of the following is true of EEOC claims?

After 180 days have elapsed from the time of a complaint, a plaintiff may demand that the EEOC issue a right-to-sue letter.

Akira, a hip hop star, was sitting in a hotel lobby when she was approached by Lucy, a record company executive. Lucy offered Akira $5 million for a three-year contract to record three albums for her company, which was the fair market value for a star of Akira's fame. Akira had no desire to record for Lucy's company, but after discussing the matter with Lucy for about half an hour, she signed a contract written on the back of a receipt from the hotel restaurant that Lucy wrote up on the spot. Akira thought it was a joke and had no subjective intentions of entering into the agreement. Which of the following is true of this situation?

Akira's actions made her appear serious; therefore, she is bound by the contract despite what she was inwardly thinking.

Which of the following statements is true of the taxation of limited liability partnerships (LLPs)?

All income or losses are reported on the partners individual tax returns

Donovan works for a corporation as general legal counsel. Which of the following would be typical of the duties that a person in his position would perform in the U.S. legal system?

All of the answer choices are correct

Which of the following is true of the Social Security Act?

All of the answer choices are correct.

A long-arm statute would be triggered when

All of the answer choices involve situations where a long-arm statute would be triggered. (Long-arm statutes are triggered when an out-of-state defendant transacts business within a state's borders, commits a negligent act in the state that results in a loss to another party, or owns property within the state.)

A long-arm statute would be triggered when

All of the answer choices involved situations where a long-arm statute would be triggered

Audie is signing a contract. He doesn't mind the idea of alternative dispute resolution (ADR) but wants to preserve his right to later have any dispute that arises under the matter heard in court. Which of the following would provide him with the right to have his case heard in court after ADR?

All of the answer choices would provide Aude the right to later have his case heard in court.

In which of the following situations would jurisdiction over an out-of-state defendant be likely to be exercised by a court?

All of the situations are ones in which jurisdiction over an out-of-state defendant would be likely. (Jurisdiction over an out-of-state defendant will typically be likely if a party is engaged in behavior that has an injurious effect in a jurisdiction that is reasonably foreseeable. Each of the scenarios meet this criterion.)

The _____ provides that its International Arbitration Rules apply only in the absence of any designated rules.

American Arbitration Association (AAA)

Secured creditors require ______ (property, assets, or land) to secure the debt of a borrower.

An attorney representing a medical practice sending a letter to a patient to collect a debt.

Which of the following actions are governed by the Fair Debt Collection Practices Act?

An attorney representing a medical practice sending a letter to a patient to collect a debt.

Walter filed for bankruptcy. Which of the following is true immediately after he files?

An automatic stay is granted and debtors may not collect any debts from Walter.

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

Alex has been charged with manslaughter and the charge is being reviewed by grand jurors. The grand jurors have determined that probable cause exists to hold Alex over for trial. Alex has been notified that he is held over for trial through an indictment. Which of the following steps will most likely occur immediately after the indictment?

Arraignment

Jordan has just fired Donnie, who was his agent in his stock brokerage firm, Wolfco. Jordan placed an ad in the Wall Street Journal stating: "Donnie no longer works for Wolfco or represents Wolfco in any way, shape or form." Jordan placed this ad to eliminate any possible liability resulting from

B) Apparent Authority

Shelby is a pizza delivery driver for Quick-E-Pizza. One day Shelby negligently failed to close her delivery truck's passenger door while stacking up six pizzas for delivery in the passenger seat. When she took a corner a little too fast, the pizzas flew out the door, tumbling into a busy intersection. A pizza splatted on Manuel's front window and he swerved out of control and crashed into a food truck, causing thousands in damages and physical injuries. Which of the following is correct of liability for the damages?

B) Both Shelby and QUick E Pizza are liable

Dirk is the delivery driver for Papa Pepperoni's Pizza. On a delivery he spotted Marvin, his main competition for the affections of his girlfriend Jolene. He accelerated his truck and hit Marvin, breaking both his legs. Under these circumstances, this is

B) Intentional Tort

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

B) Negligence

CompAmerica (CA), an internet service provider, provided the online platform for thousands of customers to publish their online content. CA did not edit, review or reformulate content posted by customers. One of those customers was a rumor website named Scandalcity, which published several false and defamatory statements about Roger, a high school principal. These included lies that he had stolen money from his high school and was selling drugs to students. Roger was fired and sued CA for providing the platform for these defamatory statements, under the theory that CA was a publisher. What should be the result of Roger's lawsuit?

B) Roger should win because this is trade libel, as it involves Rogers professions and CA was the publisher

30.) Which of the following would not be a possible obstuction of justice charge? A.) A defendant attempts to cover up information by lying to investigators. B.) A defendant takes the 5th Amendment when questioned by investigators. C.) A defendant alters, shreds, or conceals documents during an investigation. D.) A defendant induces his employees to lie or refuse to cooperate with authories.

B.) A defendant takes the 5th Amendment when questioned by investigators.

5.) Failsafe Securities Incorporated has filed bankruptcy. Among the investors in Failsafe, who will be paid first? A.) All investors, regardless of the type of securities they hold, are equal in priority and will be paid their fair share simultaneously. B.) Bondholders C.) Common stockholders D.) Preferred stockholders

B.) Bondholders

4.) The Securities Act of 1934 would focus on A.) John, a purchaser of common stock from DEF Corporation, the issuer, in an initial public offering. B.) Luke, a purchaser of common stock on a public exchange from another investor. C.) Mark, a purchaser of preferred stock from GHI Corporation, the issuer, in an initial public offering. D.) Matthew, a purchaser of bonds on a public exchange from Laura, another investor.

B.) Luke, a purchaser of common stock on a public exchange from another investor.

28.) Mitigating circumstances A.) if proved, may excuse a defendant from an alleged crime. B.) if proved, may be applied to reduce a defendant's punishment. C.) are the elements of a crime that must be proved at trial. D.) refer to the procedures that must be followed during the investigation of a crime.

B.) if proved, may be applied to reduce a defendant's punishment.

17.0 Murder is the killing of a human being with malice aforethought. Malice aforethought is the premeditation and planning of the crime. Malice aforethought shows that one considered the consequence of the action and knowingly committed the crime. The malice aforethought would be the __________________. A.) actus reus B.) mens rea C.) voir dire D.) indictment

B.) mens rea

6.) LaStarla was competing in a beauty pageant and was offended when Tracee, a fellow competitor, told her that she looked like a blimp in her evening gown. LaStarla flew into a rage and smashed her crown on top of Tracee's head, unfortunately killing her. The state of mind LaStarla had at the time of the killing is known as the A.) actus reus. B.) mens rea. C.) voir dire. D.) strict liability.

B.) mens rea.

10.) Isadora was the chief financial officer of Big Band Incorporated (BBI), a publicly traded corporation. She knew that BBI was about to announce record earnings for the year, a fact not yet made public, so she purchased 1,000 shares of BBI stock before the earnings were made public. One week later when the earnings were made public, BBI stock increased in value $10 per share and Isadora immediately sold her newly purchased shares and made $10,000. Isadora has committed A.) misappropriation. B.) traditional insider trading. C.) wrongful disclosure. D.) no crime, as corporate insiders are encouraged to buy and sell their own stock for profit.

B.) traditional insider trading.

Which of the following is a private arbitration?

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

Garp signed a contract with Tech Corp that had a binding arbitration clause. A dispute arose between Garp and Tech Corp and the matter was heard by an arbitrator. The arbitrator awarded Tech Corp $50,000. Under which of the following circumstances may a court judge set aside the award of the arbitrator in the hearing?

Both an arbitrator's refusal to hear relevant evidence that prejudices a party's rights and bias against one's gender are grounds for setting aside an arbitrator's award.

Both an arbitrator's refusal to hear relevant evidence that prejudices a party's rights and bias against one's gender are grounds for setting aside an arbitrator's awards.

The Securities Act of 1934 would focus on

Luke, a purchaser of common stock on a public exchange from another investor.

Donovan works for a corporation as general legal counsel. Which of the following would be typical of the duties that a person in his position would perform in the U.S. legal system?

Managing one or more associate attorneys Selecting and supervising lawyers from outside law firms Being a corporate officer of the company, called a secretary

Mandita, who lives in Los Angeles, California, suffered burns from a blow drier she'd purchased from Chang Manufacturing U.S.A.. In which of the following situations would Mandita be least likely to have personal jurisdiction in a California court over Chang, which is headquartered in New York?

Mandita exchanged some emails and phone calls with a representative from Chang who was based in Chang's New York office

Shirley owned a lion which she kept on a thick chain in her backyard. She took several precautions to protect people in the neighborhood, including building a high fence around her yard and putting up several signs that said "Beware of Lion. No trespassing". In spite of the precautions she took Darby managed to climb the fence ignored the signs and jumped into her backyard. Darby was mauled by the lion and managed to escape with serious injuries. Darby sued Shirley for his injuries. What is the likely result?

C) Darby wins because Shirley is strictly liable for her abnormally dangerous activity of keeping a wild animal.

Who of the following is a gratuitous agent

C) Greta asks her roommate Dorian to pick her up laundry from the dry cleaners as a favor

Rachel ran a food truck business. Willow told several of Rachel's customers that in her opinion, Rachel was the "biggest jerk" she knows. As a result, some of Rachel's customers stopped buying food from her truck. Rachel is considering a lawsuit against Willow for defamation. Assuming you are Rachel's legal counsel, what is the best and most accurate legal advice?

C) Rachel does not have a good case defamation because willows statement is pure opinion

Mandita exchanged some emails and phone calls with a representative from Chang who was based in Chang's New York office (E-mail exchanges and phone calls by themselves, that are not part of an ongoing business relationship, are the least likely of the scenarios to establish personal jurisdiction.)

Mandita exchanged some emails and phone calls with a representative from Chang who was based in Chang's New York office.

19.) Roger is the CFO of a corporation and had a business dinner with some of the company's largest shareholders. Roger knowingly and intentionally started drinking a variety of alcoholic drinks and even excused himself to secretly snort cocaine in the men's room. By the end of the evening, he obviously intoxicated. His dinner companions kept buying more rounds of drinks, and Roger needed no urging to continue drinking. By dessert, he was obviously extremely intoxicated. At that point, his companions asked him to sign a variety of documents, which he did not read due to his condition. The documents turned out to be falsified financial statements, which were then supplied to the accountants who were auditing the company. Is Roger guilty of criminal fraud? A.) Roger's act of signing the documents is enough for him to be guilty of criminal fraud. B.) Because Roger was voluntarily intoxicated, he has no defense against a charge of criminal fraud. C.) Because Roger was so intoxicated, he likely could not have formed the required mens rea and would not be guilty of criminal fraud. D.) Roger is not guilty of criminal fraud because his signature did not look professional due to his intoxication.

C.) Because Roger was so intoxicated, he likely could not have formed the required mens rea and would not be guilty of criminal fraud.

9.) Teddy holds a bond issued by XYZ Corporation that has matured. What has happened to his bond? A.) It has expired and he may no longer collect interest payments on it. B.) It has reached a face value that is equivalent to the price of the company's stock. C.) The face value of the bond is due to be paid to him. D.) The face value of the bond no longer is owing to him, he may only collect interest on it.

C.) The face value of the bond is due to be paid to him.

16.)) Michelle is driving at night when a policeman pulls her over for a blown taillight. When he approaches the car, he shines his flashlight into the car and sees a bag of white powder on the back seat. The officer orders Michelle out of the car and then reaches in to seize the bag. A quick examination leads him to believe that the bag contains cocaine. He arrests Michelle and takes her to the station. Was the officer's search legal? A.) The officer conducted an illegal search because he did not obtain a warrant. B.) The officer conducted an illegal search because he may look into the car but may not use mechanical devices to aid his search without a warrant, so the use of the flashlight made the search illegal. C.) The officer conducted a legal search of areas which were openly visible because he may look into the car and may use simple mechanical devices, such as a flashlight, to aid his search without a warrant. D.) The officer conducted a legal search because he found drugs and the ends justify the means.

C.) The officer conducted a legal search of areas which were openly visible because he may look into the car and may use simple mechanical devices, such as a flashlight, to aid his search without a warrant.

7.) Which of the following statements is true? A.) All U.S. states have adopted the Model Penal Code in whole or in part. B.) State and federal criminal law may not coexist due to federal preemption limitations. C.) There are no federal common law crimes. D.) State criminal statutes and federal criminal statutes may not outlaw identical or substantially identical conduct.

C.) There are no federal common law crimes.

33.) An ex post facto law is A.) a criminal law that takes effect at some specified time in the future. B.) a state criminal law that conflicts with a federal criminal law and is overruled by the federal law. C.) a law that criminalizes an act that occurred before the law was enacted. D.) a criminal law that is based on federal common law.

C.) a law that criminalizes an act that occurred before the law was enacted.

5.) Shirley, a policeman, was walking down a public sidewalk at night with her flashlight. She passed a parked car and shined her flashlight into it. In the back seat, she saw a bong and a baggie that obviously contained marijuana. From this, she obtained a search warrant to check the car more thoroughly and the owner was later arrested. Shirley's actions were A.) illegal because she did not obtain a warrant before looking in the car. B.) illegal because she may look into the car but may not use mechanical devices to aid the search without a warrant, so the use of the flashlight made the search illegal. C.) legal because it was a search of an area that was openly visible and authorities may use simple mechanical devices to aid searches without a warrant, and what she saw would support a subsequent warrant. D.) legal because her search resulted in a valid arrest and this removes any unlawful taint.

C.) legal because it was a search of an area that was openly visible and authorities may use simple mechanical devices to aid searches without a warrant, and what she saw would support a subsequent warrant.

11.) Shelly was vice president of international sales for Techco, a private U.S. corporation. She was on a sales trip to Zimbabwe to land a contract to provide computers to the Zimbabwean government. While there, she gave a bribe of $50,000 to Anesu, a sales representative for Afritech, a private corporation, in exchange for Anesu withdrawing her bid on the contract so that Shelly could win. With respect to the Foreign Corrupt Practices Act (FCPA), under these circumstances, Shelly is A.) in violation of the FCPA. B.) not in violation of the FCPA because the bribe was made in a foreign country. C.) not in violation of the FCPA because the bribe was not to a government official. D.) not in violation of the FCPA because the bribe was not high enough to qualify as a bribe under the act.

C.) not in violation of the FCPA because the bribe was not to a government official.

19.) Philene was an investor in Safe Harbor Corporation (SHC) through an initial public offering. She believed she has been defrauded by false statements made by SHC's executives about the company's financial health and wants to file a lawsuit against SHC because she lost money by investing in them based on their alleged misrepresentations. Her attorney told her that to win her case, she needed to prove that the executives knew they were lying. This element is known as A.) negligence. B.) a personal guarantee. C.) scienter. D.) due diligence.

C.) scienter.

8.) Fran was walking down the sidewalk when she was approached by Sherm, who held a gun to her head and threatened to shoot her if she did not break into a car and steal a computer he saw inside. Fran did so and was arrested when her fingerprints were later found on the car. Under these circumstances, Fran has A.) the defense of a lack of actus reus. B.) the defense of self-defense. C.) the defense of duress. D.) no defense, as she committed the crime, but the circumstances will be considered in sentencing under her state's sentencing guidelines.

C.) the defense of duress.

11.) Each of the following is a part of the Howey test for determining whether something is defined as a security except A.) the investment must be a cash or noncash instrument for which the investing party receives only speculative promises of a return. B.) there must be either horizontal or vertical commonality in the expectation of profit in the investment. C.) the expectation of a return must not be the primary reason for the investment. D.) the efforts of the promoters or their agents must be the primary sources of profits.

C.) the expectation of a return must not be the primary reason for the investment.

At an event on the White House lawn, the President declared that the second Tuesday of April would be "National Be Kind to Lawyers Day." Which of the following is this declaration?

Ceremonial proclamation

Enrique owns Enrique's Investigation Agency (EIA). He has been getting behind on bills because some clients have failed to pay on time. If he wants to receive temporary protection for EIA from creditors so that he can continue operating his business while devising a plan to pay them, which type of bankruptcy protection should Enrique pursue?

Chapter 11

The most extreme form of bankruptcy is ___________, primarily because the debtor is required to liquidate all of their property in order to pay creditors.

Chapter 7

1. Chapter 25 Understanding International Dispute Resolution Understanding International Dispute Resolution Parties to an international dispute are typically corporations or government entities rather than private individuals. Many countries, recognizing that different considerations apply to international disputes, have agreed to a separate legal regime to govern international disputes. Resolving disputes through international courts or other dispute resolution systems involves dealing with uncertainty. Understanding the various international courts, legal systems of other nations, and methods of dispute resolution helps businesses engaged in global commerce to limit risk and increase commercial reliability and fairness.

Civil Law System: Relies heavily on written legal codes Common Law System: Strongly favors use of case law for decisions Religious-based System: Doctrines directly based on tenets of faith Mixed-legal System: Also called a hybrid or composite legal system

Bart was angry at his neighbor Homer, who had been playing loud hip hop music after midnight every night. In retaliation, Bart had been throwing eggs at Homer's house. Bart has pursued the equitable remedy of an injunction against Homer. What is Homer's best defense to Bart's equitable action under these circumstances?

Clean hands

Alexis, a lawyer, entered into a contract to perform consulting work with Technology Associates, a software development corporation. This agreement is governed by what source of law?

Common law.

2. Chapter 17 Limits on Administrative Agencies Limits on Administrative Agencies Although administrative agencies have broad powers to implement and enforce regulations, their powers are limited in various ways by the three-part system of government. The executive, legislative, and judicial branches all have a range of measures at their disposal for limiting an agency's power and, in some cases, for invalidating agency rules or actions. One of the most important limits is accomplished through judicial review. Although courts are highly deferential to administrative agency actions, any action outside the scope or the agency's authority, or actions taken that are arbitrary and capricious can be invalidated by a court.

Congressional Overruling Resolution: authority to cancel final rule Judicial Review: applies the arbitrary and capricious standard Private Citizens Suit: can't attack the substance of a rule Executive Power: Derived from the appointments clause

Which of the following employees would be covered under the Fair Labor Standards Act?

Conner, a warehouse worker

Marcus is CEO of Marc-Tech, a high-tech startup company that develops software out of New York. He designed a website to gain name recognition for his company and promote sales. While customers cannot purchase Marc-Tech's products directly over the internet, the website does allow customers to interact by exchanging information, such as their personal contact data and the contact information of Marc-Tech's regional sales managers, which a customer can email to order products. Under these circumstances, under the Zippo sliding-scale test, what will a court do to determine whether a customer from California whose network was allegedly crashed by Marc-Tech software may sue Marc-Tech in their home state of California?

Consider the nature and level of information exchange to determine if minimum contacts with the customer forum were established

Consider the nature and level of the information exchange to determine if minimum contacts with the customer forum were established.

Elise, a sales executive, was fired by her employer, Mobile Manufacturing. Elise had not made her sales quota for two straight quarters, which was contractual grounds for termination. She wanted to continue her health care coverage after being fired, paying all insurance premiums and administrative fees. Which of the following laws requires that Mobile Manufacturing permit her to do this?

Consolidated Omnibus Budget Reconciliation Act

Tashawna wants to open a modeling agency, be the principal thereof, and have no personal liability for debts. Which of the following organizations would best suit her needs?

Corporation

_______ consists of a body of law which, for purposes of preventing harm to society, defines what conduct constitutes criminal behavior.

Criminal law

Which of the following statements accurately differentiates between criminal law and criminal procedure?

Criminal law defines the boundaries of behavior and sanctions for violating those boundaries; criminal procedure refers to the legal processes and safeguards afforded to individuals during criminal investigations.

Sharma was a trial attorney representing a defendant in a lawsuit. She was asking a series of questions of a witness for the opposing party in a lawsuit. These questions came after the plaintiff's attorney had asked questions of the witness. What is this form of questioning called?

Cross examination

Rite defaulted on the loan of her motorhome. She had borrowed the money to purchase the motorhome from Thrifty Bank. Thrifty hired Roger the repo man to repossess the motorhome for a fee of 1,000$. Roger was told to find the motorhome and take it in whatever manner he thought best so as long as he did not break the law. Roger would be classified as

D) An Independent Contractor

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

D) Fraudulent misrepresentation

The state of montana legislature a law requiring that all visitors to factories wear safety glasses. Carl Cutcorner a supervisor at Shrik Machines told a visiting group of Teachers there were not enough safety glasses for all of them so several went without while on the facility. Penny a teacher suffered an eye injury when a metal shaving flew off a machine and hit her in the unprotected eye. If penny flies suit against shirk machines and cutcorner and the court rules that shirk and cutcorner breached their duty. The negligence analysis without requiring Penny to delve into the reasonable person analysis or prove negligence is an application of

D) Strict Liability (Chegg mentioned C. Neglience per se)

Big Bob worked for Transfer Trucking (TT) as a driver and was an agent of TT. Big Bob drove a regular route, making deliveries along the way. One day Big Bob drove 60 miles out of his way and off the normal route to see the launch of a space ship. While driving to see the launch, Big Bob was distracted and negligently smashed his truck into a car driven by Austin, injuring him. Austin is now suing both Big Bob and TT for personal injuries. Under the circumstances

D) TT is not liable because Big Bob was on a frolic of his own`

31.) Brenda is the CEO of a large corporation. While presenting a proposal to a commercial bank for a corporate loan, she offered the bank's commercial loan manager a $10,000 "gift" for favorable treatment. Is Brenda guilty of bribery? A.) Brenda is guilty of bribery whether the manager accepts or not because the offer constitutes the crime. B.) Brenda is guilty of bribery only if the manager accepts because the crime has not occurred without acceptance by the other party. C.) Brenda is guilty of bribery because she is dealing with a commercial bank in the normal course of business. D.) Brenda is not guilty of bribery.

D.) Brenda is not guilty of bribery.

2.) Baker stole $5,000 from Mindy, his ex-girlfriend. He was sued in court for the theft by Mindy. What is the classification of this case and what will be the standard of proof that will apply? A.) It is a criminal case and the standard of proof is beyond a reasonable doubt. B.) It is a criminal case and the standard of proof is preponderance of the evidence. C.) It is a civil case and the standard of proof is beyond a reasonable doubt. D.) It is a civil case and the standard of proof is preponderance of the evidence.

D.) It is a civil case and the standard of proof is preponderance of the evidence.

20.) Kamalla is the CFO of Fraudco. Her boss, Driscoll, recently told her to shred all evidence of the financial statement fraud that Fraudco has been engaged in to hide the evidence from the SEC. The SEC had been conducting an investigation of Fraudco but had released no findings yet. A.) Since Sarbanes-Oxley does not have a whistle-blower provision, Kamalla has no recourse if she wants to keep her job. B.) Since Kamalla didn't actually participate in the fraud and since she is only following orders, she will have no liability. C.) Since the investigation is ongoing and no charges have been brought, shredding the documents is not a punishable offense yet. D.) Kamalla could be imprisoned for up to 20 years if she shreds the documents.

D.) Kamalla could be imprisoned for up to 20 years if she shreds the documents.

18.) In Miranda v. Arizona, Miranda's voluntary confession was suppressed because A.) Miranda asked for an attorney but was questioned before the attorney arrived. B.) Miranda spoke such poor English that he did not fully understand his rights as told to him and an interpreter was not provided. C.) Miranda spoke English but did not read English, so he did not understand that the document he signed was a confession. D.) Miranda was questioned in a police interrogation room and the Court deemed the setting too coercive, particularly since he did not know his rights, and even though he was not forced to talk by the police, his confession was therefore not truly voluntary.

D.) Miranda was questioned in a police interrogation room and the Court deemed the setting too coercive, particularly since he did not know his rights, and even though he was not forced to talk by the police, his confession was therefore not truly voluntary.

Marcus was offered a job as a senior manager by Super Corp. The offer, which was made over the phone, was for a three-year contract for $120,000 salary per year. Marcus orally accepted, there was no writing. The state in which Marcus was offered the job requires that such contracts be in writing. Marcus quit his current job, which paid $75,000 a year, and headed to the state where Super Corp was headquartered. When he arrived, the director at Super Corp who had originally offered him the job said that they were revoking and that there was no contract, as Marcus never signed an employment agreement. If Marcus sues Super Corp, what is the likely result?

Marcus is owed something by Super Corp because he relied reasonably and to his detriment on Super Corp's offer

10.) Deputy Aldana stopped Lori, a college student, because he'd had experience with many college students in the past who had been in possession of drugs. After performing a pat down search of Lori, he found cocaine in her pocket. Deputy Aldana then used the drugs to justify obtaining a warrant to search Lori's dorm for more drugs, where he found a large quantity of marijuana with scales and other paraphernalia. Lori is now being tried for drug trafficking. What evidence, if any, would be admissible at trial? A.) The cocaine in Lori's pocket would be excluded from evidence but the marijuana and cocaine found in her dorm are admissible because they were supported by a warrant. B.) Both the marijuana from her pocket and the marijuana in her dorm would be admissible at trial. C.) The cocaine in her pocket would be admissible at trial but not the marijuana in her dorm. D.) Neither the marijuana nor the cocaine would be admissible at trial.

D.) Neither the marijuana nor the cocaine would be admissible at trial.

21.) Officer Tom stops Kathy because she looks like a criminal to him, and after a pat down finds marijuana in her pocket. He then uses the drugs to justify obtaining a warrant to search her home for more drugs. The search uncovers 8 kilos of cocaine. What evidence, if any, would be admissible at trial? A.) The marijuana in her pocket would be excluded from evidence; however, the 8 kilos were found pursuant to a warrant, so they are admissible evidence at trial. B.) Both the marijuana from her pocket and the 8 kilos of cocaine would be admissible evidence at trial. C.) The marijuana would be admissible at trial but not the cocaine because marijuana and cocaine are so different. D.) Neither the marijuana nor the cocaine would be admissible at trial.

D.) Neither the marijuana nor the cocaine would be admissible at trial.

16.) Which of the following is an application of the emergency escrow provisions created by the Sarbanes-Oxley Act? A.) The SEC required that the $100,000 paid by an investor to a broker to purchase stock in a corporation be held in escrow pending an investigation into the corporation. B.) The State Department required that all assets held by a major corporation be held in escrow until investigators could determine if they were illegal bribes. C.) The PCAOB required that corporate payouts be placed into a government-controlled emergency escrow fund after the PCAOB investigation has uncovered wrongdoing by the corporation. D.) The SEC required that a multi-million dollar payout to a fired corporate executive be held in escrow prior to formal allegations of wrongdoing.

D.) The SEC required that a multi-million dollar payout to a fired corporate executive be held in escrow prior to formal allegations of wrongdoing.

14.) Jennifer and Angela are both broke. They have sold most of their possessions, and neither can find a job. One evening they decide to rob a bank. They agree that Jennifer will enter the bank pretending to have a bomb strapped to her chest and Angela will drive the getaway car. The next morning they drive to the bank, and while they are waiting for it to open, they see a church next door. Hoping for divine help while committing the robbery, they step into the church to pray. Suddenly realizing the error of their ways, they abandon their plans and sign up to become nuns. A.) They have not committed a crime because the conspiracy requires three or more people. B.) They are guilty of attempted robbery by driving to the bank. C.) They are guilty of a crime only if the bomb was real and not a threat. D.) They are guilty of conspiracy.

D.) They are guilty of conspiracy.

3.) Kenny and Gene planned to steal Dave's custom car. The came up with a strategy to trick Dave into loaning them his keys while pretending to be valets at the restaurant Dave was planning to eat at. They put on fake valet uniforms and arrived at the restaurant, but just before carrying out their plans, Kenny and Gene change their minds and left Dave and his car alone. What crime, if any, have Kenny and Gene committed? A.) They have not committed a crime because the conspiracy requires three or more people. B.) They are guilty of attempted theft. C.) They are guilty of attempted theft by deception. D.) They are guilty of conspiracy.

D.) They are guilty of conspiracy.

25.) Ben is the manager of a branch of a large bank. He has regularly taken money from customers' accounts for his own use and changed the bank records to cover his actions. Ben is guilty of A.) a conspiracy. B.) a Ponzi scheme. C.) racketeering. D.) embezzlement.

D.) embezzlement.

3.) The SEC's powers include all of the following except the power to A.) investigate potential violations of securities laws. B.) issue a cease and desist order. C.) initiate criminal charges against a company that has violated securities laws. D.) establish new federal agencies for the prosecution of securities law violations.

D.) establish new federal agencies for the prosecution of securities law violations.

22.) Under the exclusionary rule A.) judges who have handled previous cases involving the defendant currently before them at trial must excuse themselves due to possible preformed biases. B.) potential jurors who show an obvious bias may not serve on a jury in order to make sure trials are as fair as possible. C.) a sole proprietor's business records may not be seized even if pursuant to a warrant if they are considered personal papers. D.) illegally obtained evidence may not be introduced at trial.

D.) illegally obtained evidence may not be introduced at trial.

6.) Juan is a corporate director for Thorough Manufacturing, Incorporated (TMI) and owns 12 percent of the stock of TMI. Juan is classified by federal law as a/an A.) influencer. B.) enhancer. C.) majority owner. D.) insider.

D.) insider.

21.) Securities that are exempt from full registration requirements include all of the following except A.) securities of charitable organizations. B.) government-issued securities like municipal bonds. C.) annuities of insurance companies. D.) large public offerings to unsophisticated investors.

D.) large public offerings to unsophisticated investors.

24.) Stan is an investment manager. He has received money from various investors and given them a promise of very high returns on their investments. The invested money is not supplying enough capital to pay the returns promised, so he has started using new investors' money to pay older investors. By advertising and by word of mouth, people are anxious to invest with Stan because of the money being paid, and with the influx of new investors, he is able to continue operating. Stan is A.) operating an insider-trading operation. B.) racketeering. C.) guilty of conspiracy to defraud. D.) operating a Ponzi scheme.

D.) operating a Ponzi scheme.

1.) Landers purchased stock in Monster Truck Corporation. His stock had quasi-debt features and gave him preference rights for receiving dividends from Monster. Landers likely has __________ stock. A.) common B.) undiluted C.) debenture D.) preferred

D.) preferred

18.) Brittney is the CFO of Wealthy Manufacturing, Incorporated (WMI). She made $100,000 by buying 20,000 shares of WMI's stock at $30 a share in November of 2020 and selling them for $35 a share in February of 2021. These profits would be called A.) short-term profits. B.) short-range profits. C.) short-spell profits. D.) short-swing profits.

D.) short-swing profits.

8.) Garth is best friends with Wayne, the CEO of Great Pharma, Incorporated (GPI), a publicly traded corporation. GPI had just made an important discovery: the cure for cancer. The information has been kept secret by GPI. Before the news was made public in a press conference, Wayne told Garth about it on May 1 and that day Garth bought 10,000 shares of GPI stock. The press conference was on May 2 and after the announcement, GPI stock went up $50 a share. Garth immediately sold his stock and made $500,000. Garth is known in the law of insider trading as a/an A.) secondary insider. B.) outside trader. C.) instigator. D.) tippee.

D.) tippee.

Equity payments made to common stock owners based on the profitability of the company they own stock in are called

DIVIDENDS

A long-arm statute would be triggered when

Darcy, a resident of Kentucky, is suing Elizabeth, a resident of West Virginia, in Kentucky based on an accident in Kentucky in which Darcy is alleging Elizabeth's negligence. Wickham, a resident of Maryland, owns a vacation home in the state of Washington. Bingley, a person who rented Wickham's vacation home, was injured when a mirror in the home broke. Bingley is suing Wickham in Washington. Georgiana, a resident of Arkansas, is suing Lydia in Arkansas, who has a Nebraska-based business making jewelry. Georgiana purchased the jewelry from Lydia, which caused a severe allergic reaction, while Lydia was selling products from a booth at a street fair in Eureka Springs, Arkansas. All of the answer choices involve situations where a long-arm statute would be triggered.

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

Deputy Kelly entered into a written agreement with Babe in which Kelly agreed to find the person who stole Babe's skateboard in consideration of $100.

Turner brought a lawsuit against her employer Discrimco. Turner had signed an employment contract with Discrimco which contained a clause stating that all disputes between the parties were to be heard by an arbitrator in a binding hearing. Turner's lawsuit is based on sexual and racial discrimination and she is pursuing it under the federal Civil Rights Act. Discrimco has made a motion to dismiss the case on grounds that the matter is subject to binding arbitration. Which of the following is correct?

Discrimco is correct, Turner's lawsuit should be dismissed and she must undergo binding arbitration.

Discrimco is correct, Turner's lawsuit shoulld be dismissed and she must undergo binding arbitration.

Which of the following statements is true?

Dispute resolution requires a cost-benefit analysis

Which of the following statements is true?

Dispute resolution requires a cost-benefit analysis.

The equitable maxim "substance over form" would best be described by which of the following examples?

Dugan worked for ABC Corp, which treated him exactly like an employee but called him an outside contractor and did not pay him benefits. The court ruled that Dugan was entitled to benefits and ordered ABC to classify Dugan as an employee.

William is a director of National Cars, Incorporated. He understands that he should act in good faith and behave as a reasonably prudent person would under the circumstances in his dealings related to his position with National Cars. Which duty does this encompass?

Duty of due care

GoTech Corporation built a factory to manufacture their new electric scooter. The scooter had great sales at first, but then competition in the scooter market increased, GoTech lost market share, and now Ginger, the CEO, has decided to close the factory. Which of the following is most likely to be a secondary stakeholder of GoTech?

Edie Doyle, a nearby restaurant owner who sells hamburgers to factory workers during their lunch breaks

The U.S. Department of Labor is authorized to oversee pension and retirement savings plans that corporations set up under the

Employee Retirement Income Security Act.

Administrative agencies are often granted broad powers for policymaking and enforcement by Congress through what?

Enabling statute

Which of the following is important because it is the source of an administrative agency's authority and establishes the agency's scope and jurisdiction over certain matters?

Enabling statute

The National Environmental Policy Act (NEPA) classification that is appropriate for actions that may have a significant environmental impact is:

Environmental Impact Statement (EIS).

Federal environmental laws are primarily administered, implemented, and enforced by the _____________.

Environmental Protection Agency

The administrative agency charged with carrying out federal workplace antidiscrimination laws is the

Equal Employment Opportunity Commission.

Bilston has shoplifted at a local store, stealing three mobile phones. The theft is not detected until store camera videos are examined later that afternoon. Store management has the right to go to Bilson's home and detain him until police arrive.

False

Ms. Bobbin, your ethics teacher, is a first year professor just out of school and she is very tough and demanding. You've done poorly on the first two tests and you think its her fault. Someone tells you that she has a criminal past, and without verification you spread this allegation. IN fact Ms. Bobbin has been a model citizen and never broken the law, As a result of your actions she is out on probation and pending an investigation. She cannot sue for defamation because she is a professor she is a public figure and your conduct was intentional but not a careless disregard of the truth or an act done with malice.

False

Micah goes to his local bike shop to buy a cyclometer (which measures speed, distance, etc.). He tells the salesperson that he wants the best cyclometer on the market, and she shows him a cyclometer and states that particular brand and model was actually used by some participants in the Tour de France bicycle race and is the best Micah can buy. Micah buys the cyclometer. As it turns out, 8 of the 189 Tour riders indeed used the brand and model bought by Micah, with the other 181 using various other brands and models. In actuality, there is no acknowledged top brand and model, and use is subject to personal tastes. The salesperson has committed a fraudulent misrepresentation by stating that the brand and model sold to Micah was the best.

False (Chegg says true)

High Flite Airways had a system in place to deter, prevent, report and correct sexual harassment. Any employee caught sexually harassing another would be subject to immediate termination. High Flite also has an anonymous tip line system set up for the reporting of harassment. Wendy was harassed repeatedly by Elroy, but always outside of the presence of other employees. Wendy filed a lawsuit against High Flite based on the harassment. If High Flite can prove that Wendy never used the anonymous tip line system or any other means provided by them to report the harassment, they can likely assert the __________ defense.

Faragher/Ellerth

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

File a cross-claim

Selina has been served with a summons and complaint. Which of the following options does she have?

File a motion to dismiss

Graphic Games, a video game developer, had its latest game "Mega Zombie Kill" banned for sale in Iowa to children under the age of 18 pursuant to a new Iowa law restricting the sales of games featuring extreme violence. Graphic Games challenged this action in court on grounds that it was unconstitutional. Which of the following would be the best constitutional theory for Graphic Games to pursue?

First Amendment Free Speech

Which of the following is not an example of a trademark lost, or in danger of losing protection, due to its becoming a generic term?

Ford

Which of the following situations will create diversity jurisdiction?

Forrest, a resident of Georgia, is suing Bubba, a resident of Alabama, for $150,000 for injuries Forrest alleges Bubba caused him when he ran over Forrest's foot with his truck

Which of the following situations will create diversity jurisdiction?

Forrest, a resident of Georgia, is suing Bubba, a resident of Alabama, for $150,000 for injuries Forrest alleges Bubba caused him when he ran over Forrest's foot with his truck.

Tyrell Corporation, headquartered in Indiana, and Blender Corporation, headquartered in Michigan, entered into a contract with a provision stipulating that any legal disputes will be conducted using Michigan law. This agreement is called a

Forum selections clause

The amendment requiring that an arrest warrant may not be issued without probable cause is the

Fourth Amendment.

The amendment that requires probable cause to conduct searches and seizures is the

Fourth Amendment.

Which of the following does not require a duty of care or good faith to other principals?

Gary owns a shoe repair business as a sole proprietorship and serves dozens of regular customers.

Porter and Dolly are in a business to sell Porter's locally famous chili. Dolly agrees to handle the sales and marketing and Porter agrees to oversee making the chili. They do not enter into a formal agreement, written or otherwise. Which of the following business types is this?

General partnership type known as an implied partnership.

LaShonda is a resident of Wisconsin. While visiting Six Flags Over Georgia in Atlanta, she was criminally assaulted by Hans, a Minnesota resident. Ordinarily, venue in this criminal case would originally be in

Georgia

Georgia.

Georgia. (Ordinarily, venue in criminal cases is in the state where the crime is committed.)

Alexander was a brilliant inventor who worked for GiantCo. Alexander received a salary of $90,000 a year, but also invented several products for GiantCo which made them in excess of $10 billion in profits in the five years he had worked for them. Alexander was dissatisfied with his salary and wanted a bonus based on the massive amount of money he made GiantCo, but they turned down his request and paid him only one dollar more than his base salary because he had signed an employment contract which called for him to give up "all rights to inventions in consideration of $1." Bill thinks this is unfair and has sued. What will be the likely court result?

GiantCo wins because this was a bargained-for exchange and consideration need not be of equal value

GiantCo wins because this was a bargained-for exchange and consideration need not be of equal value.

In Metro-Goldwyn-Mayer Studios v. Grokster, Ltd., Grokster claimed a fair use exception to the copyright infringement claim because its process was such that it was impossible for Grokster to know if the users of its device were infringing or not. Which of the following was the outcome?

Grokster was denied the fair use exception because the majority of its business model was dedicated to appealing to former Napster customers and the model showed intent to infringe on copyrights.

Which of the following would be nominal consideration?

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

1. Chapter 19 Antitrust Antitrust The Sherman Act is divided into two parts: first, the act provides prohibitions against restraint of trade; and second, it covers monopolization. To understand the distinction between the sections, consider the difference between single-firm conduct (only one business engaged in a certain transaction or behavior) and multifirm conduct (more than one business engaged in a certain transaction or behavior). There are also certain actions or transactions deemed as a per se violation of the Sherman Act. Certain per se violations are through the use of horizontal restraints and vertical restraints. The following exercise requires you match the appropriate agreement to the correct Sherman Act category.

HORIZONTAL RESTRAINTS: PRICE FIXING AMONG COMPETITORS; MARKET ALLOCATION; BOYCOTT VERTICAL RESTRAINTS: EXCLUSIVE SELLING OR TERRITORY AGREEMENTS; TYING AGREEMENTS; PRICE FIXING BETWEEN BUYER AND SELLER

Which of the following is an accurate statement of the concept of stare decisis and precedent under the U.S. legal system?

Hani, a law professor, told her class that precedent established in New York will have no bearing on cases in neighboring New Jersey.

Casey is considering loaning money to Dorrine by a written and dated agreement. She wants to increase the likelihood that she will be high in priority for receiving money as repayment should Dorrine ever declare bankruptcy. Which of the following should Casey do?

Have Dorrine put up some property as collateral under the agreement and take possession of it.

TechnoPlus, a corporation that sold high end digital printer/copiers, entered into a written contract with Wesley, a lawyer, which included a payment of $500 per month for the printer/copier itself and $200 a month for a service agreement. The sales representative and Wesley negotiated the price of this contract in a serious of email and personal exchanges. Which of the following describes this type of contract?

Hybrid and express

Which of the following constitutes a "government official" under the Foreign Corrupt Practices Act? I. A candidate for political office in Spain. II. The secretary to the Minister of Agriculture in Costa Rica. III. The Chief Financial Officer of Venezuelan Oil, a company controlled by the government of Venezuela.

I. A candidate for political office in Spain. II. The secretary to the Minister of Agriculture in Costa Rica. III. The Chief Financial Officer of Venezuelan Oil, a company controlled by the government of Venezuela.

Which of the following is an example of a bailment relationship? I. A customer leaving her watch for repair with the local jeweler. II. A tenant living in an apartment owned by the landlord. III. A restaurant patron using a coat check service. IV. The owner of a car parked in a self-check parking lot.

I. A customer leaving her watch for repair with the local jeweler. III. A restaurant patron using a coat check service.

Which of the following are NOT considered equity instruments? I. Bonds. II. Common stock. III. Preferred stock. IV. Promissory notes.

I. Bonds. IV. Promissory notes.

Which of the following are necessary for Congress to override a final rule by an administrative agency? I. Both houses must agree. II. An overruling resolution must be presented to the president. III. There must be a two-thirds majority to approve. IV. There must be an agreement of the executive branch.

I. Both houses must agree. II. An overruling resolution must be presented to the president.

When certain competing business entities are contemplating a merger involving a certain dollar amount, they are required by the Hart-Scott-Rodino Act to give advance notice of their intention to the: I. Federal Trade Commission. II. Federal Antitrust Bureau. III. Department of Justice. IV. Secretary of Commerce.

I. Federal Trade Commission. III. Department of Justice.

Which of the following are examples of words used in criminal statutes used to express the guilty mind requirement? I. Intentionally II. Carelessly III. Wantonly IV. Negligently

I. Intentionally III. Wantonly

Which of the following are true about the LLC form of entity? I. It is formed by filing articles (or certificates) of organization. II. Its principals are referred to as shareholders. III. It is frequently governed by an operating agreement. IV. It does not limit the personal liability of its principals.

I. It is formed by filing articles (or certificates) of organization. II. Its principals are referred to as shareholders.

Which of the following are true about the LLC form of entity? I. It is formed by filing articles (or certificates) of organization. II. It does not require a formal filing. III. It is frequently governed by an operating agreement. IV. It limits the liability of its principals.

I. It is formed by filing articles (or certificates) of organization. III. It is frequently governed by an operating agreement. IV. It limits the liability of its principals.

Which of the following are not true about U.N. Convention on Contracts for the International Sale of Goods (UNCISG)? I. Its coverage is based on the citizenship of a company's majority shareholder. II. It governs only international contracts where both parties are merchants. III. It requires all transactions over $500 to be in writing to be enforceable. IV. It provides a remedy for the seller to cure even if the time for performance is past due.

I. Its coverage is based on the citizenship of a company's majority shareholder. III. It requires all transactions over $500 to be in writing to be enforceable.

Which of the following are violations of the Computer Fraud and Abuse Act? I. Launching a Trojan Horse. II. Use of a computer to distribute adult pornography. III. Unauthorized access of another party's information stored on a computer. IV. Employer monitoring of an employee's use of office computers to visit unauthorized websites.

I. Launching a Trojan Horse. III. Unauthorized access of another party's information stored on a computer.

Marcus is owed something by Super Corp because he relied reasonably and to his detriment on Super Corp's offer.

1. Chapter 18 Major Environmental Laws Major Environmental Laws Environmental law impacts not only large companies that use smokestacks, but also small and midsized businesses in a variety of ways. As the public continues to become aware of environmental dangers, Congress and state legislatures have expanded coverage, increased standards, and imposed more liability. Small-business owners that use regulated chemicals or materials are subject to registration, reporting, and care requirements. Laws imposing liability for environmental cleanup is another concern for business owners who own or wish to purchase land.

NATIONAL ENVIRONMENT POLICY ACT- STUDY OF ENVIRONMENTAL IMPACT REQUIRED CLEAN AIR ACT- MOBILE AND STATIONARY SOURCES RESOURCE CONSERVATION AND RECOVERY ACT- CRADLE TO GRAVE PROCEDURE ESTABLISHED CERCLA (SUPERFUND)- HAZARDOUS SUBSTANCE CLEAN UP

2. Chapter 24 Copyright Law and Fair Use Copyright Law and Fair Use The Copyright Act of 1976 is a federal law that protects the creators of original works. This includes literary works, musical works, dramatic works, and any other work that is original, requires creativity, and is fixed in a durable medium. However, copyright owners do not enjoy unlimited rights to their work. Through the doctrine of fair use, U.S. copyright law balances the public interest with the property rights of copyright owners. Because copyright infringement triggers substantial penalties, business owners and managers may limit risk for their company by understanding the basics of copyright law and the fair use defense. Read the following hypothetical case study and answer the follow-up questions to formulate the correct strategy. Burns, the vice president for marketing at Extreme Equipment Corporation (EEC), attends a seminar by a well-known corporate training firm called Millionaire Sales Methods. The seminar was a two-day event in which the facilitators introduced cutting-edge techniques for achieving high sales volume in the industry. As part of the seminar, Burns received an instruction manual, a DVD, and a flash drive with several slide-show presentations. Burns was so impressed with the seminar that he brought the ideas back to his own sales team at EEC. His preliminary plan is to make copies of the seminar materials and distribute them to his sales force. rev: 03_24_2018_QC_CS-121676 2a. What elements of the seminar... What elements of the seminar are covered by the Copyright Act? I. The slide shows. II. The DVD. III. The instruction manual.

I. The slide shows. II. The DVD. III. The instruction manual.

Which of the following factors are used by courts when applying the arbitrary and capricious standard? I. Whether the agency relied on factors that Congress had not intended it to consider. II. Whether the agency failed to consider an important aspect of the problem. III. Whether the final rule is a logical outgrowth of the enacting statute. IV. Whether the agency offered an explanation that ran counter to the evidence before it.

I. Whether the agency relied on factors that Congress had not intended it to consider. II. Whether the agency failed to consider an important aspect of the problem. IV. Whether the agency offered an explanation that ran counter to the evidence before it.

Which of the following is not an example of a bailment relationship? I. A customer leaving her watch for repair with the local jeweler. II. A tenant living in an apartment owned by the landlord. III. A restaurant patron using a coat check service. IV. The owner of a car parked in a self-check parking lot.

II. A tenant living in an apartment owned by the landlord. IV. The owner of a car parked in a self-check parking lot.

Which of the following are not true about the LLC form of entity? I. It is formed by filing articles (or certificates) of organization. II. Its principals are referred to as shareholders. III. It is frequently governed by an operating agreement. IV. It does not limit the personal liability of its principals.

II. Its principals are referred to as shareholders. IV. It does not limit the personal liability of its principals.

Which of the following factors are not used by courts when applying the arbitrary and capricious standard? I. If the agency relied on factors that Congress had not intended it to consider. II. The amount of time that the agency spent during the rulemaking process. III. Whether the final rule is a logical outgrowth of the enacting statute. IV. Whether the agency is independent or not.

II. The amount of time that the agency spent during the rulemaking process. III. Whether the final rule is a logical outgrowth of the enacting statute. IV. Whether the agency is independent or not.

Which of the following does not constitute a "government official" under the Foreign Corrupt Practices Act? I. A candidate for political office in Spain. II. The secretary to the Attorney General of Florida. III. The Chief Financial Officer of Venezuelan Oil, a company controlled by the government of Venezuela. IV. A candidate for Congress of the United States.

II. The secretary to the Attorney General of Florida. IV. A candidate for Congress of the United States.

Which instruments do not provide the investor with a return based on profitability of the company? I. Preferred stock. II. Common stock. III. Bonds. IV. Debentures.

III. Bonds. IV. Debentures.

Which of the following are prominent international arbitration forums? I. North American Arbitration Commission. II. International Board of Arbiters. III. London Court of International Arbitration. IV. International Court of Arbitration.

III. London Court of International Arbitration. IV. International Court of Arbitration.

Which of the following are not requirements for qualification as a Subchapter S corporation? I. Unanimous consent of all shareholders. II. No more than 100 shareholders. III. No more than three classes of stock. IV. No more than $1 million in annual revenue.

III. No more than three classes of stock. IV. No more than $1 million in annual revenue.

Which of the following is/are not statutory defenses to Superfund PRP liability? I. Prospective purchases under the Small Business Liability Relief Act. II. Secured creditor. III. Short-term ownership. IV. Innocent landowner.

III. Short-term ownership.

Which of the following is not true of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

IT SIGNIFICANTLY LIMITS THE JURISDICTION OF THE SEC

Jeremy is a vice president and loan officer for Small Town Credit Union. He has an opportunity to make a loan to a customer that he suspects will be used to fund the customer's illegal gambling operations. However, Jeremy will make a substantial bonus from making the loan, which he will use to buy his elderly mother a motorized wheelchair. He has defined the ethical dilemma. According to the manager's paradigm of ethical decision making, what would be Jeremy's next logical step after defining the dilemma?

Identifying the impact of the decision on primary and secondary stakeholders

Which of the following statement(s) is/are true?

If Heinrich is driving recklessly and smashes his car into Shanna, Heinrich could be both prosecuted and sued for his actions. Procedural law sets out the steps that the state of Iowa must take if it wishes to have its agents break into the office of Benjamin and search his computer for evidence of embezzlement. In the United States, breach of contract is classified as civil law, and the laws that give a party the right to sue for breach of contract are known as substantive laws.

Which of the following is true of taxation of a C corporation?

In a C Corporation, both the entity and the shareholders pay tax through a system of double taxation.

Which of the following statements is true of a limited liability company (LLC)?

In a member managed LLC, it is similar to a partnership.

Which of the following is true of a property sublease?

In a sublease, a tenant transfers her interests to a subleasee for a term that is less than the remaining term of the original lease.

According to the textbook, which of the following statements about lawyers is/are true?

In larger organizations, corporate counsel are often part of the management or executive team

Which of the following is not generally a rationale for piercing the corporate veil?

Inadequate capitalization, failure to follow corporate formalities and fraud or wrongdoing by corporate directors are all considered rationales for piercing the corporate veil.

Which of the following is the last step in the Administrative Procedure Act's (APA's) rulemaking process?

Individual parties may challenge the rule in court under certain circumstances.

Which of the following statements about organizational ethical systems is true?

Informal value systems standing alone may be too vague and impractical

Which of the following statements about organizational ethical systems is true?

Informal value systems standing alone may be too vague and impractical.

Aunt Betsey is sick and tired of neighbors who walk their dogs across her front yards. She is considering going to district court to stop the trespassers. What type of remedy should she pursue?

Injunction

Unions were originally permitted to use economic weapons in the collective bargaining process under the

National Labor Relations Act.

Golding Corporation is based in North Carolina and manufactures bicycles. Venus bought a bicycle from a Golding dealer while on Spring Break in Florida and brought it back home with her to her residence in Savannah, Georgia. Golding has no offices in Georgia and sells bicycles through dealers only in North Carolina and Florida. If Venus is injured when her bicycle's frame breaks and then wishes to sue in the state of Georgia, under the Zippo test, may she do so if she discovers that Golding has a non-interactive banner ad on the bikelover.com website that anyone can access?

No, because a non-interactive internet presence standing alone is insufficient to establish minimum contacts.

The state of South Carolina passed a law charging an extra fee for out-of-state poultry processors and demanding that their poultry be inspected before it could be sold retail in South Carolina. There was not a similar requirement for in-state poultry. This is justified on grounds that it protects the health and welfare of state residents. Is this law likely to be upheld by a federal court if challenged on constitutional grounds by Braxton Poultry, a Georgia poultry processor?

No, the law will likely be struck down on grounds that a state may not discriminate against or place undue burdens on interstate commerce under the Dormant Commerce Clause.

Audie is signing a contract. He doesn't mind the idea of alternative dispute resolution (ADR) but wants to preserve his right to later have any d

Nonbinding arbitration Mini-trial Mediation All of the answer choices would provide Aude the right to later have his case heard in court.

3. Chapter 24 Fundamentals of Patent Law Fundamentals of Patent Law Patents are a form of intellectual property protection affording inventors an exclusive legal right to make, use, license, or sell their invention for a limited period of time. However, not all inventions are eligible for patent protection. The invention/process must meet certain criteria set out in federal statutes in order to obtain protection. A fundamental understanding of patent law helps business owners and managers to limit the company's risk because both the enforcement of a patent and infringement of the patent may have severe consequences for the patent holder and infringer.

Novelty: Three prong test Nonobviousness: Minimal improvements not eligible for patent Subject Matter: Laws of nature and abstract ideas

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

Occupational Safety and Health Act

Which of the following statements is the best example of puffery in advertising, assuming that the product fails to meet the claims specified?

Our desserts, made of the richest cocoa, will make you want more.

Katelyn was suspended from State University after a professor suspected her of cheating on an economics exam. The determination of whether the state government acted properly and gave her an opportunity to present her evidence at a fair and neutral hearing is an analysis of

Procedural due process

1. Chapter 22 White-Collar Crime White-Collar Crime One way that the government regulates business practices is through criminal laws. White-collar crimes are typically thought of as committed by business principals, entities, or employees in the course of their employment or occupational duties. These crimes are typically set out in state and federal statutes and include fraud, bribery, theft, insider trading, obstruction of justice, and conspiracy.

RICO: Includes forfeiture laws Conspiracy: Agreeing to commit crime Fraud: Profit through deceit Ponzi scheme: Fake investment plot Insider Trading: Manipulating stock Foreign Corrupt Practices Act: Payoff foreign govt. Obstruction of justice: Cover up of wrongdoing Bribery: Payoff local official

Administrative agencies are frequently charged by Congress to study potential solutions to a problem and then to exercise a legislative function by creating administrative regulations. This function is best known as _____.

RULEMAKING

The federal government imposed a tax on all oil companies to fund a federal agency devoted to researching alternatives to fossil fuels. If Big Oil Incorporated challenges this tax in federal court, what level of scrutiny will the court apply?

Rational basis scrutiny

According to the landlord-tenant agreement, Ray's monthly rent includes his electricity and water bills. Daniel, the landlord, failed to pay the bills for almost four months and, as a result, the supply of water and electricity has been stopped in Ray's apartment. Ray reminded his landlord to pay the bills several times. In this case, which of the following is true?

Ray's right to habitability has been violated.

2. Chapter 21 Regulation of Credit Transactions Regulation of Credit Transactions Credit transactions are an integral part of the business environment and are regulated through an array of federal and state laws primarily designed to afford consumers certain protections. Credit transactions take place primarily in the context of the use of loans (e.g., home equity loan) and credit cards. Merchants also act as creditors and offering credit to consumers is subject to federal statutory requirements. A credit transaction takes place between a borrower and a creditor.

Reg Z: uniform reporting of APR and finance charges Fair and Accurate Credit transactions act: protections of victims on identity theft Credit card accountability responsibility disclosure act: restrictions on credit to 18-21 year olds. Truth in Lending Act: scope limited to non commercial credit

Julio is suing Sanchez for breach of contract. He wants to get some documents from Sanchez which he believes will help him prepare his case. What is the term for this procedure?

Request for production

Which environmental law is intended to regulate active and future facilities that produce solid waste and/or hazardous materials?

Resource Conservation and Recovery Act

The standards for internal governance rules of a corporation are set out in the __________________, a model law that has been adopted by more than half of the states.

Revised Model Business Corporation Act

Which of the following would not be a legitimate exercise of judicial power in the U.S. system?

Rhonda, a federal trial court judge, establishes precedent through her court decision.

In which of the following cases would diversity of citizenship jurisdiction be exercised?

Rutger, a private party from Massachusetts, is suing Benjamin, a private

In which of the following cases would diversity of citizenship jurisdiction be exercised?

Rutger, a private party from Massachusetts, is suing Benjamin, a private party from Pennsylvania, in Pennsylvania federal court for $90,000.

Three doctors, Brent, Tori and Shawnee, formed a limited liability partnership for their medical practice, with all being equal partners. Shawnee was negligent in her treatment of a patient and was sued for malpractice. Whom of the following will have personal liability for the judgment if the patient wins their lawsuit?

Shawnee will have personal liability for the judgment.

Shawna sued her former employer for wrongful termination. The state in which she lives has a law requiring that she arbitrate the case. If Shawna is not satisfied with the decision of the arbitrator, what are her options?

She has an automatic right to appeal to a trial court

She has an automatic right to appeal to a trial court.

Stare decisis is a Latin phrase that means ____________________________.

Similar cases with similar facts and issues should have similar judicial outcomes.

Specific performance

Walker, a federal court judge, cited several prior cases in reaching her decision in a case, deciding her case in a manner similar to the cases she cited. This is known in the law as the process of:

Stare decisis

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

Substantive Law

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

Substantive law

A surgeon accidently severed a nerve in Miranda's back during surgery so she now has numbness in her left leg. Miranda sued to get compensation for her pain and suffering and additional medical expenses as a result of alleged malpractice. The malpractice statute in her state gave her two years from the time she "knew or should have known of the injury" to file a lawsuit. What type of law is the malpractice statute that gives her the right to sue and what type of law is the statute that determines that she has two years to file her claim?

Substantive law, Procedural law

Enrique advertised his custom-made airplane for sale. Wallace offered him $100,000 by email. Enrique told Wallace that he accepted his offer, but that he would have to bring a cashier's check to his house for $100,000 the next day. Wallace said he'd arrive with the check the next day after work. Wallace arrived at 6 p.m. and when he did, Enrique told him he'd just gotten an offer for $110,000 and that Wallace would have to pay that amount to get the plane. If Wallace sues Enrique, what course of action will best provide him the results he desies?

Sue for breach of contract and seek a decree of specific performance.

Sue for breach of contract and seek a degree of specific performance.

Asmita, a judge, is hearing a matter in which a full day trial is conducted before a jury. The lawyers present no live expert testimony and primarily conduct the proceeding through oral argument. At the end, Asmita will issue a nonbinding opinion. What is the term or name for this proceeding?

Summary jury trial

Once the EPA has determined the principally responsible parties, it begins to negotiate a settlement for the cleanup of a site. If the negotiations fail, the EPA files a _____________ to collect cleanup costs from responsible parties.

Superfund lawsuit

Which statute is designed to take into consideration the impact of a proposed rule on small business?

THE REGULATORY FLEXIBILITY ACT (RFA)

Which of the following is an application of the emergency escrow provisions created by the Sarbanes-Oxley Act?

The SEC required that a multi-million dollar payout to a fired corporate executive be held in escrow prior to formal allegations of wrongdoing.

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

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

The Equal Protection Clause of the Fourteenth Amendment would prohibit

The University of Delaware, a public school, from charging $500 per credit hour for students from West Virginia, a lower income state, while charging $700 per credit hour for students from Connecticut, a higher income state

Excel Manufacturing, a corporation, hired a private investigator to conduct surveillance of DeJuan, the Chief Financial Officer, because he was suspected of committing corporate espionage. Without DeJuan's consent, the private investigator approached DeJuan and demanded to be allowed to search him and his cell phone without either a warrant or probable cause. Which of the following does this action violate?

The action violates no constitutional amendment.

Mike raped Kathy in the parking lot of Tom's Pub. The attorney general/district attorney's office prosecuted Mike on rape charges. Subsequently, Kathy filed a lawsuit against Mike for money damages. Classify each legal action.

The attorney general/district attorney's case was a criminal case; Jane's lawsuit was a civil case.

Corrigan was the sole proprietor of Tastee Burgers, a restaurant. In 2018, Bergdahl allegedly suffered from food poisoning after eating lunch at Tastee Burgers. In 2019, Corrigan died and left everything, including Tastee Burgers, by will to his niece, Layla. Layla then reorganized Tastee Burgers as a limited liability corporation with her best friend Horowitz. In 2020, Bergdahl filed a lawsuit for $500,000 against Tastee Burgers for long term health effects from the food poisoning. Layla and Horowitz have denied responsibility for the injuries and seek a dismissal of the lawsuit. What should the court decide?

The court should grant a dismissal, as sole proprietorships terminate upon the death of the sole proprietor.

Darnell, a professor, entered into a contract with Felicity, a 22-year-old graduate student, for Felicity to proofread and correct the grammar in his new textbook. Felicity dropped off a contract at Darnell's office, but she made a mistake and accidentally wrote 15 cents an hour rather than 15 dollars an hour for her services, then signed the contract. Darnell noticed the error, signed the contract also, and now is trying to hold Felicity to the 15 cent amount. What would be the likely result and why if Felicity goes to court to get out of the agreement?

The court will allow her to cancel the agreement on grounds of unilateral mistake.

Hanlon Hedley has decided to cut costs and pay dance instructors less at her dance studio. Hanlon will also spend less time and money developing choreography and not offer free videos of shows to patrons of the studio. Which of the following groups is most likely to be a primary stakeholder of the Hanlon Hedley Dance Studio?

The dance instructors.

Congress attached spending conditions to federal funds granted to states to maintain interstate highways. The conditions stated that a state would have federal highway repair funds cut back by 10 percent if a state raised its speed limit on public roads higher than 70 miles per hour on grounds that safer highways would promote the federal welfare. The state of Wyoming raised their speed limit to 80, had their funds reduced, and challenged the congressional conditions in federal court. What is the likely result of their challenge?

The federal conditions will be upheld as constitutional, as a constitutional exercise of Congress's spending authority.

Which of the following sociological movements forced the federal government to legislate protections for employee working conditions?

The labor movement

Mike has written a novel. When, if ever, would Mike's novel be copyright protected?

The novel is copyrighted automatically after completion.

Which of the following statements is correct?

The obligations of a corporation are distinct from the obligations of its principals.

Billy offered Shane $500 if he would run around the football stadium three times wearing a duck outfit during the playoff game. Which of the following is true?

The offer is for a unilateral contract.

Which of the following is an attribute of privately held corporations?

They are not limited in terms of revenue.

Which of the following is true of general partnerships?

They involve two or more principals.

Kameron, Candice and Leo were members of an LLC, Printing Unlimited, LLC (PU). They leased a digital printing press for their company. Press Sales, Incorporated (PSI), the company that manufactured and leased the printing press to them, required personal guarantees from each of them as a requisite leasing the press. What will be required of Kameron, Candice and Leo?

They must pledge personal assets to guarantee the payment obligations of PU.

This action violates no constitutional amendment

Freddie was approached by Byron, a police officer, who asked him if he could search Freddie's backpack. Freddie gave Byron permission to conduct the search. Byron had no warrant and no probable cause to believe that Freddie was involved in criminal activity. Byron found an illegal switchblade in Freddie's backpack and arrested him. Is this a legal search? Why/why not?

This is a legal search because it was consensual, Freddie gave Byron permission

This is a legal search because it was consensual, Freddie gave Byron permission.

Flick entered into an oral agreement with Ralphie where he agreed to sneak out at night and spray paint graffiti on the walls of Warren G. Harding Elementary School in consideration of $25. The two negotiated over the price and Flick finally agreed to do it when Ralphie "double dog dared" him. With respect to the laws of contracts, which type of contract is this?

This is an express, bilateral and void contract.

Annias offers to sell her house to Tobias in consideration of $220,000. Tobias says he will pay $219,000. What is the status of this exchange of promises at this time?

This is an offer and a counteroffer that terminates Tobias's power of acceptance of the original offer.

Billy offered Shane $500 if he would run around the football stadium three times wearing a duck outfit during the playoff game. Which of the following is true?

This offer is for a unilateral contract

What is the first assessment conducted by an environmental services consulting firm hired by a buyer in a real estate purchase that helps shield the buyer from Superfund liability?

Transaction screen

Which of the following is an example of the moral minimum theory for corporations?

Trendy Coffee Shop bought all their coffee beans from tiny family farms in poor countries, which helped the farmers out, but resulted in higher costs and slightly lower profits.

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

True

The model statute used by most state legislatures to govern limited liability companies is the

Uniform Limited Liability Company Act.

2b. What was the purpose and nature... What was the purpose and nature of Burns's use of the seminar materials for his own sales team?

Use for a commercial reason.

Rick was speaking at the corporate annual meeting discussing the new drug they are rolling-out. He states that although the medication is only effective for 80% of patients, about 5% of the patients that take it will suffer serious issues that would fall within the companies acceptable goals. Which ethical philosophy is Rick advocating?

Utilitarianism

Rocket Corporation's slogan was "Treat customers and the world with respect." This principle informs Rocket's strategies and plans and guides employees. According to the text, this is an example of:

Values management

Which of the following circumstances involves a remand?

Vashti, a state appeals court judge, reverses a trial court case and sends it back to the trial court with instructions that a different rule should be followed

Which of the following circumstances involves a remand?

Vashti, a state appeals court judge, reverses a trial court case and sends it back to the trial court with instructions that a different rule should be followed.

Which of the following circumstances involves a remand?

Vashti, a state appeals court judge, reverses a trial court case and sends it back to the trial court with instructions that a different rule should be followed. (A remand is where an appellate court sends a case back to the lower court from which it came for further action consistent with the opinion and instructions of the higher court.)

Bambi wants to have an initial public offering (IPO). Under what circumstances would an IPO make sense for Bambi's organization?

When she wants to turn her privately held corporation into a publicly held corporation.

According to the textbook, which of the following statements are true about the typical relationships between corporations and attorneys in the United States?

Working closely with a business attorney results in opportunities and reduced business costs.

What is the name for the petition to the U.S. Supreme Court to request that the court review a case, and roughly what percentage of cases does the Supreme Court agree to hear each year?

Writ of certiorani, 1 percent

What is the name for the petition to the U.S. Supreme Court to request that the court review a case, and roughly what percentage of cases does the Supreme Court agree to hear each year?

Writ of certiorari, 1 percent

What is the name for the petition to the U.S. Supreme Court to request that the court review a case, and roughly what percentage of cases does the Supreme Court agree to hear each year?

Writ of certiorari, 1 percent (A writ of certiorari is the document used by an aggrieved party to petition to the U.S. Supreme Court. Only about 1 percent of cases are reviewed by the court a year.)

On June 1, Farnsworth, the CEO of Thriftyco, sent a letter to Bainbridge, the regional sales manager of Technopress Corp. The letter stated: "We offer you the job of national sales manager for Thriftyco in consideration of $200,000 a year and 2% of gross sales revenues. Acceptance must be by regular mail." On June 3, Farnsworth had second thoughts and sent an mail to Bainbridge saying "The offer is revoked, we are going in another direction." On June 4, Bainbridge sent a letter accepting the offer. On June 5, Farnsworth's revocation arrived at Bainbridge's house. Was a contract formed in this case? Why/why not?

Yes, a contract was formed because Bainbridge accepted the offer before receiving Farnsworth's revocation.

Billy's Barbecue was a small business with 20 employees in Tinyville, a town that seldom had visitors from other states. Billy refused to serve people of Middle Eastern descent. Billy's only contact with other states was purchasing some of his beef from a butcher in a neighboring state. May Congress regulate Billy's activity under the Civil Rights Act? Why/why not?

Yes, because Billy's is engaged in interstate commerce under the Commerce Clause.

Carnie is a plaintiff in a lawsuit based on an auto accident in which she alleges she received whiplash when Richard hit her car. She wants to get information about what Penelope, a witness saw, before the trial starts. Which of the following legal procedures could Carnie use to get this information from Penelope?

a deposition

Leticia was in a conference room being questioned by an attorney. The only other person in the room was a person from the court making a written record. Which of the following is this?

a deposition

John owns Tech Gamers Enterprises (TGE), a sole proprietorship. A typical way for him to raise capital would be by

a private or commercial loan.

An example of a forum selection clause is

a provision in a contract between Levin and Anna which says that if there is a dispute between the parties, it will be in a court within Levin's state (Forum selection clauses are agreed to voluntarily by the parties and written into the original contract, they obligate the parties to litigate any dispute arising out of the contract in a particular court named in the clause.)

Which of the following is a private arbitration? a. Billy signed an employment contract with Big Corp. It has an arbitration clause in it. b. The state of Virginia has a law which demands that all parties to a lawsuit must first submit their dispute to a court-appointed person who would attempt to help them resolve the dispute, the court-appointed person has no power to grant an award. c. The state of Colorado has a law that states that all parties to a lawsuit must first submit their dispute to a court-appointed person who has the power to view the evidence of each side and grant an award to one or the other. d. All of the answer choices are private arbitration.

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

administrative laws

An involuntary bankruptcy petition is filed

against a debtor by a group of three or more creditors with an unsecured aggregate claim of at least $15,775.

An involuntary bankruptcy petition is filed

against a debtor by three or more creditors with aggregate unsecured claims of at least $11,625.

Donovan works for a corporation as general legal counsel. Which of the following would be typical of the duties that a person in his position would perform in the U.S. legal system?

all of the answer choices are correct.

Which of the following would be economic activity that the federal government could regulate under the Commerce Clause?

all of the answer choices involve economic activity that the federal government may regulate under the commerce clause

all of the answer choices would provide Aude the right to later have his case heard in court

Piercing the corporate veil is the process of

allowing parties to reach the personal assets of shareholders of a corporation.

A Difference between a C corporation and an S corporation is

an S corporation's earnings are taxed only when income is distributed to shareholders, a C corporation taxes at the corporate level and when income is distributed to shareholders.

The relationship between ethics and law is that:

an action can be legal but not ethical. an action can be ethical but not legal. an action can be both legal and ethical. All of the answer choices are correct.

Which of the following is eligible for immediate trademark protection?

arbitrary trademarks

Pass-through entities are those that

are not subject to tax, income is taxed only when distributed to partners.

Jasmine, the president of Highroads Motor Homes Corp, has developed two codes for Highroads: a code of ethics and a code of conduct. Each of the following would likely be included in its code of ethics except

avoidance of conflicts of interest.

Which of the following is a secondary source of law? a. A regulation passed by a federal agency b. A model law passed as a guide to states in crafting their statutes on healthcare c. A constitutional interpretation of a statute by a federal court of appeals d. All of the answer choices are secondary sources of law.

b. a model law passed as a guide to states in crafting their statues on healthcare

Stephanie is a U.S. bankruptcy court judge in the state of Illinois. Blair is a resident of Illinois and is filing for Chapter 7 bankruptcy in Illinois. Stephane's court serves Blair's county. It would be accurate to say that in Blair's case, Stephanie's court has jurisdiction that is

based on subject matter, personal and original.

based on subject matter, personal, and original.

Janet was tried and convicted of reckless driving. The sentence will be imposed

based on the discretion of the judge, subject to sentencing guidelines.

Dmitri was a judge in the state of Delaware. He presided over a trial in which the plaintiff and defendant had agreed to have him act as both finder of fact and law. This is known as a/an

bench trial

One primary difference between civil and criminal cases is that in a criminal case, the burden of proof is _______________.

beyond a reasonable doubt

For investors wanting to earn a fixed rate of return rather than a return based on profitability, companies may raise capital by issuing _____.

bonds

The ________ insulates directors from breach of fiduciary duty liability, so long as they acted in good faith and followed a reasoned decision-making process.

business judgement rule

Which of the following is true? a. Dispute resolution is a purely technical and legal matter that should best be left to the sole discretion of attorneys. b. The options available to business owners in the dispute resolution process have diminished significantly in recent years. c. Dispute resolution requires a cost-benefit analysis. d. All of the answer choices are correct.

c. Dispute resolution requires a cost-benefit analysis

Which of the following would be nominal consideration? a. Jorge entered into an agreement with Drake to sell him his motorcycle for $10,000. The motorcycle was worth $20,000. b. Frazier entered into a written contract to train Foreman for a boxing match in consideration of $5,000. c. Grover entered into a written contract with Oscar to sell him his house in consideration of $10. Oscar never turned over the $10. d. Belinda pulled April out of a burning car, saving her life. April then offered Belinda $1,000 in consideration of her heroism.

c. Grover entered into a written contract with Oscar to sell him his house in consideration of $10.

Which of the following is correct about the law in the United States? a. To be defined as law, something must have been codified by a legislature. b. Law creates duties and obligations, but not rights, as these are exclusively created by constitutions. c. Law is prescribed by controlling authority. d. All of the answer choices are correct.

c. Law is prescribed by controlling authority

Destinee, Teronne, and Ahmed had a limited liability partnership (LLP) that called for additional contributions from them to fund the LLP when necessary. This provision is known as a/an

capital call.

Delroy joined with hundreds of other people in a legal action where together they sued Implantco for producing a hernia mesh device that was implanted in them during surgery and later caused complications such as swelling and infections. What is the name for this legal action?

class action

Gerald was the national sales manager of the Intergalactic Space Corporation (ISC), a publicly traded company. ISC was involved in financial report fraud, but Gerald was not involved in it and had no knowledge of it. Under Sarbanes Oxley (SOX), Gerald was forced to forfeit several years of executive bonuses that were tied to the financial reports that he had received from ISC. Under SOX, this is known as a/an

clawback provision

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

collective bargaining.

Alexis, a lawyer, entered into a contract to perform consulting work with Technology Associates, a software development corporation. This agreement is governed by what source of law?

common law

Which of the following breaches a director's duty of loyalty?

conflict between personal interests and corporate interests.

The No Electronic Theft Act primarily addressed protection regarding

copyrights.

If criminal actions were committed for some _______, courts have held that corporations and their managers can be convicted of the crime.

corporate benefit

Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. What type of business entity do they wish to form?

corporation

Luke declared a Chapter 11 bankruptcy for his business, Lukeco. There were ten creditors to whom he owed money and seven of them accepted the reorganization plan and three rejected it. Luke wants the court to force all creditors to accept the plan. This is known as the

cram-down provision.

For a copyright to be created, it requires that the work must be

creative, original and fixed in a durable medium.

A copyright protects the rights of

creators of original works for a defined period of time.

The most common form of unsecured credit is a ______.

credit card

_____ consists of a body of law that, for the purposes of preventing harm to society, declares what conduct is unlawful and prescribes the punishment to be imposed for such conduct.

criminal law

cross examination

The primary methods of capitalizing LLCs are

debt through private lenders or commercial lenders or through a sale of ownership equity.

Janis declared Chapter 11 bankruptcy for her business, the Holding Company, Incorporated (HCI). The bankruptcy court appointed Grace as a trustee to oversee the management of HCI and report back to the judge. This process is known as a

debtor in possession.

Ian was a shareholder of National Corporation (NC), a publicly traded corporation. He brought a lawsuit against Tenielle, the president of NC, in the name of NC itself. Ian is alleging that Tenielle breached her duty of loyalty to NC. This is known as a/an

derivative action.

When the distinctive quality of a particular mark is identified with goods that are not alike, there is a strong indication of ________________.

dilution

Members of an LLC who wish to withdraw from participation and liability of an LLC have the right of ___________.

disassociation

Sellers have the option to ______ implied and express warranties, so long as they do so in a conspicuous writing.

disclaim

All of the following are steps in forming a union under federal law except

division of responsibilities.

Although it may vary due to the nature of the case, generally a delay of more than ________ is presumptively an unconstitutional violation of a defendant's right to a speedy trial.

eight months

When a corporation is converted from privately held to publicly held, it is likely to have done so by

engaging in an initial public offering (ipo)

The SEC's powers include all of the following except the power to

establish new federal agencies for the prosecution of securities law violations.

Which of the following is not included in the revised LLC statute (RULLCA)?

establishes a mandated structure for the LLCs management

A patent is a statutorily created monopoly right that allows the inventor the

exclusive right to make, use, license and sell the invention for a limited period of time.

Discovery of protected information through independent research or reverse engineering is misappropriation.

false

Fines and penalties are fixed under the Clean Water Act and the Oil Pollution Act if an oil spill occurs. A company is not subject to increased fines or penalties even if found reckless.

false

If a copyrighted work is used for a commercial or profitable purpose, the unauthorized user cannot assert that the work was used under the fair use defense.

false

Violators of antitrust laws are subject to civil penalties, not to criminal penalties.

false

When a jury finds a defendant guilty of a criminal offense, it is called an acquittal.

false

When real estate is used as collateral for a debt, the rules of Article 9 of the Uniform Commercial Code (UCC) govern the transaction.

false

Laws that provide patent protection to inventors are found in _____________.

federal statutes

The managers of a limited liability corporation owe __________ duties to the other members of an LLC.

fiduciary

Jones and Hagen want to form a limited partnership. To do so, it is required that they

file a certificate of limited partnership with their state government.

Selina has been served with a summons and complaint. Which of the following options does she have?

file a motion to dismiss

Theo and Vincent had a general partnership and wanted to form a limited liability partnership (LLP) for protection from personal liability. To form this, they must

file a statement of qualification with the appropriate public official.

Because it is not a taxable entity, an LLP

files an information tax return.

Without a warrant, government agents use a telephoto lens to take overhead photographs of a fenced-in plant from a public bridge. They observe evidence of possible criminal activity. The evidence ________________.

fits the plain view doctrine

Trade secrets are protectable

for as long as the company desires.

Agreeing to provide the same level of protection to _____ copyright owners as they provide to their own citizens is a key component of signing the treaty on international protection of copyrights.

foreign

An important aspect of being a signatory country to the international treaty for protection of copyrights is an agreement to provide the same level of protection to _____ copyright owners as they provide to their own citizens.

foreign

forum selection clause

forum selection clause.

forum selection clause. (Voluntary agreements regarding the law to be used should litigation occur are called forum selection clauses.)

Stevie owns a business and wishes to distribute products to a broad market without having to hire additional employees or deal with the overhead costs of retail space. Stevie should set up a

franchise.

The choice of establishing a member-managed or manager-managed limited liability corporation (LLC) is

generally made on a public filing and available for third parties to view.

Ahmed wanted to get a loan, but since he was starting up a new business and considered a credit risk due to inexperience, the bank required that he get a cosigner on the loan. He convinced his friend Aaida, who had excellent credit, to cosign on the loan. Under the terms of the agreement, Aaida will only owe on the loan if Ahmed stops paying and defaults. Aaida is known as a

guarantor.

identifying the impact of the decision on primary and secondary stakeholders.

Which warranty arises when the buyer relied on the seller's advice and recommendation regarding a specific use of the product?

implied warranty of fitness for a particular purpose.

According to the textbook, which of the following statements about lawyers is/are true?

in larger organizations, corporate counsel are often part of the management executive team

From least to most serious, crimes are classified as follows

infractions/misdemeanors/felonies.

Juan is a corporate director for Thorough Manufacturing, Incorporated (TMI) and owns 12 percent of the stock of TMI. Juan is classified by federal law as a/an

insider.

Secure Financial Advisors (SFA) was a firm that bought and sold securities on behalf of their clients. SFA is known as a/an

intermediary.

Act Now!, an organization devoted to voting rights, applied for a permit to protest the closing of polling places in poor neighborhoods. Genevieve, the head of the organization, wanted the protest to be on the lawn of the county courthouse. The county denied the permit on grounds that it would prevent people from accessing the courthouse. If Act Now! challenges this action in court, it will be reviewed by the judge using

intermediate scrutiny

intermediate scrutiny.

The state of Massachusetts passed a law requiring all commercial trucks driving on Massachusetts highways to install special pollution scrubbers on their exhausts. These devices cost $1,500 per truck and any truck entering the state must have the scrubber installed or the driver is subject to a large fine. Massachusetts has justified this regulation on grounds of air quality health for residents and alleviation of global warming. This Massachusetts law

is invalid because, although on its face it's an intrastate law, this statute will have a significant economic effect on interstate commerce, causing an undue burden.

The bespeaks caution doctrine focuses on the duty that a/an

issuer of stock has to include disclosures in the stock prospectus about cautions that an investor should take; it provides a defense to the issuer if the disclosures are specific and narrowly tailored.

Rodriguez, an attorney, is planning to file a class action lawsuit on behalf of 500 people against two corporations: Cheatco, a company that sold an allegedly defective bicycle to the 500 customers, and Failco, a company that allegedly provided defective metal to make the frames of the bicycles. All 500 people suffered similar head injuries as a result of the alleged defects. Rodriguez is alleging the injuries were caused by both Cheatco and Failco. Which of the following is true of this planned class action?

it is a valid mass tort action

Aaron has entered into a contract with Wilson, a man who is elderly and suffers from dementia and was unable to understand the nature of the contract he was signing. Wilson had not been legally declared to be incompetent at the time the contract was signed. It was an agreement for Aaron to mow Wilson's lawn each week in consideration of $50, which is a fair price for the service. Aaron was not aware that Wilson had dementia. What is the legal status of this agreement?

it is a voidable contract

Which of the following is true of arbitration?

it is similar to a trial that the arbitrator functions much like a judge.

High Sierras, LLC is incorpated in Nevada, but is headquatered near Squaw Valley in Nothern California. High Sierra could be sued in Nevada for it's alleged defective product if:

it maintains a sales agent with a small satellite office in Carson City, Nevada.

Karin is a federal court judge looking at a bill passed by Congress and signed by the president into law. A case challenging this law on constitutional grounds is before her appellate court and she has determined the law to be unconstitutional. What is the name for this judicial action?

judicial review

Securities that are exempt from full registration requirements include all of the following except

large public offerings to unsophisticated investors.

A court is most likely to pierce the corporate veil when the

liability claim involves some sort of tort by the corporations employees.

Weston and Noble wanted to form a music production business. They wanted to share profits and losses and have heightened protection from debts and liabilities. Which of the following business entities would be most appropriate for them?

limited liability partnership

The Computer Software Copyright Act defined computer software programs as

literary works.

Sean, Gertie and Manfred formed a limited liability corporation (LLC). All three had the power to bind the LLC. This form is known as a/an

member-managed LLC.

Murder is the killing of a human being with malice aforethought. Malice aforethought is the premeditation and planning of the crime. Malice aforethought shows that one considered the consequence of the action and knowingly committed the crime. The malice aforethought would be the __________________.

mens rea

LaStarla was competing in a beauty pageant and was offended when Tracee, a fellow competitor, told her that she looked like a blimp in her evening gown. LaStarla flew into a rage and smashed her crown on top of Tracee's head, unfortunately killing her. The state of mind LaStarla had at the time of the killing is known as the

mens rea.

The U.S. Supreme Court defines __________ as the willful acquisition or maintenance of power in a relevant market as opposed to growth as a consequence of superior product, business acumen, or historical accident.

monopolization

The willful acquisition or maintenance of power in a relevant market, as opposed to growth as a consequence of superior product, business acumen, or historical accident is the definition of __________.

monopolization

The use of limited liability partnerships has become

more widespread as some family businesses now use this form.

Irving is a creditor who has taken interest in real estate to collateralize a loan. Irving is known as a

mortgagee.

Acme Corporation attempted to register a trademark that was generic and not fanciful, arbitrary, suggestive or descriptive with a secondary meaning. Under these circumstances, Acme has

no case for registration of the trademark because a trademark must be fanciful, arbitrary or suggestive to be capable of being copyrighted.

Wally purchased a Gucci purse from Luxury Products-R-Us for his wife that cost $2,000 on April 1. He purchased this under a contract where he promised to pay off the $2,000 to Luxury Products-R-Us within 180 days. On May 30, Wally filed a petition for bankruptcy. Under the Bankruptcy Code, the debt is known as

nondischargeable.

The broadcast news test advises corporate executives to _______.

only do those things in secret that you would not mind becoming public, that is, showing up in the broadcast news

The broadcast news test advises corporate executives to _______.

only do those things in secret that you would not mind becoming public, that is, showing up in the broadcast news.

A shareholder is a/an __________ of a corporation.

owner

LLCs are not taxed at the entity level, but principals pay tax on any distribution by the LLC. This is called ___________.

pass through taxation

Some principals find that an LLC is an attractive form of entity because of its _______.

pass through taxation

Geoff and Matilda formed an LLC. Their LLC will be most likely be treated as a __________ for tax purposes.

pass-through entity

Renate purchased common stock in XYZ Corporation, this gives her the right to

payments in dividends based on the current profitability of the company.

A secured creditor must ______ their security interest in the collateral in order to be fully protected under UCC Article 9.

perfect

The first step in the patent process is for a patent seeker to

perform a database search to ensure a similar invention is not protected.

Which of the following is not an attribute of a sole proprietorship?

perpetual existence for the company.

Marcelino set up a business in which he was the primary shareholder, Boxing Stars, Incorporated (BSI), to market boxing gear and clothing. The company that leased Marcelino the retail space for BSI to do business demanded that Marcelino sign a document agreeing to pay them out of his personal assets if BSI defaults on the retail lease. The document that Marcelino signed is known as a

personal guarantee.

For small and mid-sized business ventures, a creditor will typically require a(n) ___________ from the principals of the business in order to help secure a business loan.

personal guaranty

When extending a loan to a small or mid-sized business, a(n) __________ from the principals is typically required by the creditor to help secure the loan.

personal guaranty

Chan wants to file a lawsuit. What will be the first stage of litigation for him?

pleadings

Limited liability partnerships (LLPs) are created by states in large part to deal with the

potential liability for acts of other general partners or the debts of the partnership itself.

Landers purchased stock in Monster Truck Corporation. His stock had quasi-debt features and gave him preference rights for receiving dividends from Monster. Landers likely has __________ stock.

preferred

Once a suspect has been charged with a criminal violation, the prosecutor may decide to prosecute the defendant on that original charge. The next step in the criminal justice process is the defendant's right to a(n) _____.

preliminary adjudication During a criminal investigation, the suspect, once charged, is referred to as the defendant and is formally read the charges by a magistrate. The prosecutor decides whether to (1) proceed with prosecuting the defendant on the original charge, (2) amend the charges as necessary, or (3) drop the charges altogether due to lack of evidence. If the prosecutor elects to proceed with the charges, the defendant is entitled to a preliminary adjudication.

In a case where Davey sues Rockridge Corporation for selling him defective software that crashed his network, the standard used to decide the case will be _______, in a case where Davey is prosecuted for being a minor in possession of alcohol, the standard used to decide the case will be _______.

preponderance of the evidence, beyond a reasonable doubt

With regard to the sale of securities, the Securities Litigation Uniform Standards Act of 1998 is intended to

prevent private parties from instituting lawsuits against corporations in federal or state court based on state laws that punish misrepresentations or omissions of material facts.

The management of Secure Securities, Incorporated decided to go public and issued stock on the New York Stock Exchange. This is known as the

primary market.

Which of the following statements about ethics is true?

primary stakeholders are those directly impacted by a decision a corporation makes

Darryl believed that right and wrong were established by his religious beliefs and followed the tenets of his religion in his dealings with others. This is known as a:

principles-based approach

After the prosecutor presents evidence during a preliminary adjudication, the decision maker determines whether ______ exists to hold the defendant over for trial.

probable cause

procedural due process

procedural due process.

Stan signed a contract in which he promised to pay back the party that loaned him money to purchase his house over the course of 15 years. This contract accompanied his mortgage. It is known as a

promissory note.

Tom started a business selling footballs. Before filing articles of incorporation, he arranged for a bank loan and hired three people to run his store. Tom is known in corporate law as a/an

promoter.

The type of corporation that generally has the highest number of shareholders is the

publicly held corporation.

rational basis scrutiny

rational basis scrutiny.

Under the Americans with Disabilities Act, employers must make __________ accommodations for a disabled employee in the workplace.

reasonable

Which of the following bankruptcy plans is limited to individuals who have a substantial debt, and it cannot be used to cover any business debt (even as a sole proprietor)?

repayment plan

Julio is suing Sanchez for breach of contract. He wants to get some documents from Sanchez which he believes will help him prepare his case. What is the term for this procedure?

request for production

Which of the following describes a literal patent infringement where the infringed device does more than is described in the patent application of the protected invention?

rule of addition

Rulemaking, an important function of an administrative agency, involves all of the following except that

rulemaking is a simple process set forth in each agency's enabling statute.

Charles set up a fraud scheme in which he promised investors huge returns that other investments could not match, but actually paid returns to investors from money paid by subsequent investors and pocketed the rest. Charles is

running a Ponzi scheme.

Philene was an investor in Safe Harbor Corporation (SHC) through an initial public offering. She believed she has been defrauded by false statements made by SHC's executives about the company's financial health and wants to file a lawsuit against SHC because she lost money by investing in them based on their alleged misrepresentations. Her attorney told her that to win her case, she needed to prove that the executives knew they were lying. This element is known as

scienter.

Ignatio ordered his stockbroker to purchase 1,000 shares of National Motors stock on the New York Stock Exchange. The broker purchased the shares from a large institutional investor. This is a purchase on the __________ market.

secondary

_____ of a corporation have the power to elect and remove directors at their annual meetings.

shareholders

Eva is one of the directors of Purple-On Corp. Tim works as a reporting officer in the corporation. In which of the following situations will a court most likely find Eva to have breached her duty of care?

she suspects his intentions and still allows him to make reporting decisions

Brittney is the CFO of Wealthy Manufacturing, Incorporated (WMI). She made $100,000 by buying 20,000 shares of WMI's stock at $30 a share in November of 2020 and selling them for $35 a share in February of 2021. These profits would be called

short-swing profits.

Stare decisis is a Latin phrase that means ____________________________.

similar cases with similar facts and issues should have similar judicial outcomes

Gargantuan Corporation is negotiating with Drumph Commercial Properties to purchase a skyscraper to house their world headquarters in New York City. Which of the following would govern the sale of this building?

state common law

Butler was shopping at Grocerymart and slipped and broke his tailbone because an employee had dropped a gallon of milk in the aisle. This was on October 25, 2019. The state law that requires Butler to file his lawsuit by October 25, 2022, is known as a/an

statue of limitations

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

substantive law

summary jury trial

Violet signed a contract agreeing to be primarily liable to pay off Jamilla's loan. Violet is known as a

surety.

Intellectual property (such as patents and trademarks) and ____ property (such as real estate or goods) are the two categories of the law of property.

tangible

The law of property recognizes two distinct categories: intellectual property (such as patents and trademarks), and____ property (such as real estate or goods).

tangible

The two distinct categories that are recognized as forms of legal property are: intellectual (such as patents and trademarks), and ____ (such as real estate or goods).

tangible

The Equal Protection Clause of the Fourteenth Amendment would prohibit

the University of Delaware, a public school, from charging $500 per credit hour for students from West Virginia, a lower income state, while charging $700 per credit hour for students from Connecticut, a higher income state

Stephanie owned Goodco, a company in which all after tax profits were donated to a local battered woman's shelter. This is an example of which of the following views of corporate social responsibility?

the broad view

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

the broad view, or management's hand theory

the court will allow her to cancel the agreement on grounds of unilateral mistake

Hardcore Brewery featured photos of young people giving gestures considered obscene by many people on their beer cans and beer bottle labels. The state of Oregon banned the sale of Hardcore Brewery beer in their state based on a law forbidding obscene speech. If Hardcore Brewery challenges this law in federal court, which of the following standards will the court apply to the Oregon law?

the court will ask whether Oregon has a substantial government interest in regulating the speech

the dance instructors

Under disparate impact theory, a plaintiff must prove that

the evaluation methods used by an employer to hire employees resulted in statistically significant differences that adversely impacted members of a protected class.

Each of the following is a part of the Howey test for determining whether something is defined as a security except

the expectation of a return must not be the primary reason for the investment.

The country of origin principle states that

the law applied to a lawsuit against Deutsch Manufacturing, a Berlin, Germany-based corporation, would be German law if Deutsch Manufacturing's servers were located in Berlin.

Failco had several small debts but no realistic means of paying them off. Reggie, the owner of Failco, had not personally guaranteed any of the loans and owned no personal assets. He wants to simply shut down Failco and stop doing business and not pay off his creditors. This method is known as

the lights-out option.

The proper mode of acceptance of an offer up and until the offer has been accepted is established by

the offeror.

Which of the following is true of dissociation in a limited liability company (LLC)?

the remaining members have a choice to continue or trigger dissolution.

Bennie's goal in life, as CEO of Nature's Finest Organic Foods, was to provide eco-friendly food products imported from third world farmers. His company motto, which was printed on every label of his products, was: "Do the most good and the least harm for the world." Which of the following approaches does Bennie's corporate slogan best represent?

the utilitarian approach to ethics

The business judgment rule provides corporate officers and directors protection when

they set up a committee to establish a procedure for making decisions that are in the best interests of the corporation

this is an express, bilateral, and void contract

Valentino patented a new and unique manufacturing process that his corporation used. This is known as a

utility patent.

Bev knew that when she was dealing with Kirsten that Kirsten was representing another party in a land purchase, but she did not know whom. This type of agency is a/an

B) Partially disclosed Agency

Which of the following are considered debt instruments? I. Bonds. II. Common stock. III. Preferred stock. IV. Promissory notes.

I. Bonds. IV. Promissory notes.

2d. What was the amount and substantiality... What was the amount and substantiality of material used under Burns' plan?

Complete use of the entire work.

Which of the following is not true of the establishment of a principal-agent relationship.

D) Courts use an objective standard for agency relationships in determining the relationship between parties

When a borrower pledges collateral in order to obtain a loan, the lender is known as an unsecured creditor.

FALSE

Because there is no general duty to act or assist others, a store is not liable if, after washing a floor, it fails to notify the public of the slippery condition and someone is injured. Stores give such notification as a convenience to customers but not because of a legal duty.

False

When Ford runs a commercial stating that Fords are better than Chevrolets and that "you'll be happier if you buy a Ford," Ford is committing trade libel.

False

Mediation and conciliation are growing in popularity as international dispute resolution procedures. Both involve an adjudicative process, always without the involvement of a neutral third party.

False both involve a consensual process., often with the involvment of a third party neutral.

Which of the following is true of the International Court of Justice?

It gives advisory opinions on legal questions submitted to it by duly authorized international organs.

Allie, a 24-year-old graduate accounting student, entered into a written agreement with her father to give up drinking until she completed her master's degree. Her father agreed to pay her $100,000 if she did so. Does Allie have a right to collect if she lives up to her end of the bargain?

Yes, because this is a bargained-for exchange and has adequate consideration.

Misty and Kate opened a coffee shop in their home state, Massachusetts. They incorporated their shop, Misty Kate's Coffee Adventure, Inc., in the state of Massachusetts. In Massachusetts, Misty Kate's would best be characterized as

a domestic corporation.

In a member-managed limited liability corporation (LLC), the management is similar to

a general partnership.

An ex post facto law is

a law that criminalizes an act that occurred before the law was enacted.

a legal remedy for the $5,000

A dissolution of a limited liability corporation (LLC) is

a liquidation process that may be triggered by an event specified in the operating agreement.

An example of a forum selection clause is

a provision in a contract between Levin and Anna which says that if there is a dispute between the parties, it will be in a court within Levin's state.

Abli is a grocery store chain incorporated in Germany. If Abli opens up several stores and conducts business in several states in the United States, Abli, Incorporated would be characterized as

an alien corporation.

Stelissa was driving her 25-year-old rusty car through a rich neighborhood. Glenn, a police officer, pulled her over because he didn't like the looks of a junky car in a fancy area. Glenn demanded that she step out of the car for a pat-down search. Glenn had no suspicion that Stelissa was committing a crime at the time of the stop. Glenn found a tiny bag of cocaine on Stelissa. Under these circumstances, this is

an illegal search under the Fourth Amendment.

Dalvosta, Georgia has passed a law banning the building of apartment complexes higher than 100 feet. This law would be defined as:

an ordinance

Dalvosta, Georgia has passed a law banning the building of apartment complexes higher than 100 feet. This law would be defined as:

an ordinance.

The centerpiece of the Foreign Corrupt Practices Act (FCPA) is its __________ provision.

antibribery

Dmitri was a judge in the state of Delaware. He presided over a trial in which the plaintiff and defendant had agreed to have him act as both finder of fact and law. This is known as a/an _______.

bench trial

In a criminal case, the government must prove its case ________________.

beyond a reasonable doubt

Corporations raise capital by issuing ____ to investors wanting to earn a fixed rate of return.

bonds

Precious, at a private party, agreed to sell LaStarshae her new Gucci purse for $2,000. LaStarshae asked Precious if she would hold the price open until the end of the month when LaStarshae received a quarterly bonus from her job. Precious agreed to do it for her as a favor. At the end of the month, LaStarshae approached Precious with $2,000 in hand, but Precious said "Sorry, LaStarshae, I just sold it to Celine, you're too late." What will be the result if LaStarshae sues for breach of contract?

Precious wins as there was no exchange of consideration.

Constitutional law and administrative law are known in the United States as _______________ sources of law.

Primary

Which of the following statements about ethics is true?

Primary stakeholders are those directly impacted by a decision a corporation makes.

Which of the following statements about ethics is true?

Primary stakeholders are those directly impacted by a decision corporation makes.

Modern day antitrust enforcement is primarily concerned with protecting the _______, rather than protecting individual competitor companies.

competitive process

Eminent domain is traditionally invoked using a(n) _____.

condemnation proceeding Explanation Eminent domain is traditionally invoked using a condemnation proceeding. Once a government has decided that certain real estate is necessary for public use, the government typically begins to negotiate sales agreements with the private property owners of the area(s) to be taken.

Which of the following is least likely to be considered a mitigating circumstance?

Sex.

The partnership agreement typically establishes a limited liability partnership's (LLP) management and operational structure.

TRUE

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

Rescission

According to the textbook, which of the following statements about corporate strategy with legal counsel is/are true?

Research indicates that management working cooperatively with attorneys will add value to the business.

_____ occurs when an individual member of a limited liability company (LLC) decides to exercise the right to withdraw from the partnership.

dissassociation

A unanimous consent resolution is a/an.

document signed by each principal to dispose of necessary tasks such as electing directors or issuing stock

With regard to liability, the Revised Uniform Limited Liability Company Act

does not allow managers and other members of an LLC to avoid personal liability if they have acted in bad faith.

The primary purpose of a family limited partnership is to

enable wealthy members of one generation to distribute assets to heirs using a method that allows the distributing generation to claim a much lower market value than the actual market value of the gift.

During and immediately after a discrimination investigation, the EEOC is required by statute to

engage in conciliation negotiations.

The bylaws of a corporation

establish its internal rules.

The employment-at-will doctrine

exists in some form in every U.S. jurisdiction.

A merchant that regularly engages in extending credit terms to its customers is not considered a creditor and the transaction is not a consumer credit transaction.

false

According to the patentable subject matter standard, materials common to nature, such as penicillin, are patentable.

false

Antitrust laws provide for government enforcement of antitrust statutes, but do not permit an aggrieved party to file a private enforcement action against an alleged antitrust violator.

false

If a seller makes no specific representation about a product, the buyer may not be protected by an express or implied warranty.

false

In a civil case, the plaintiff needs to prove beyond a reasonable doubt that the defendant committed a civil wrong.

false

While acquiring rights for trademark protection, a mark holder may use the symbol TM to indicate that the

holder considers the mark distinctive enough even though it is not yet registered with the USPTO.

Which of the following was a provision of the Labor Management Relations Act of 1947?

The authorization to the president of the United States to suspend a strike in times of national emergency.

A trademark is a word, symbol, or phrase used to ______ a particular seller's products and distinguish them from other products.

identify

The primary distinctive for Chapter 11 bankruptcy is it

is a reorganization.

A misdemeanor is punishable by

one year or less of incarceration.

Merv is a bulldozer operator. He was hired by Carla to fill in a swampland on her property and they signed a contract for him to do it on March 1st. On February 28th, Merv is informed by a city official that the swampland Carla wanted filled in is protected wetlands and it would violate environmental law to do the job. If Merv then calls Carla telling her the deal is off and Carla threatens to sue for breach of contract, what result?

the contract is void, carla loses

Both Lloyd and Harry are claiming patent protection for the same invention that each independently created. The rights to protection will be awarded to

the first to file an application for the patent.

Which of the following sentences best describes the term "quorum" as it relates to the election of a corporation's board of directors?

the minimum number of shareholders that must be present to hold a vote

Properties owned by individuals for business purposes are not eligible for relief under the Mortgage Forgiveness Debt Relief Act.

true

Felonies generally are punishable by

twelve months or more of incarceration.

Which of the following is an example of vertical restraints?

tying restraints

Francis was upset at Greg, who just threw a paper bag that had the unwanted remains of his cheeseburger and fries into a ditch. Francis said: "What would the world be like if everyone littered like that, Greg?" This is known as the

universalization approach

A seller's promise to a buyer about the quality/functionality of a product is called a _______.

warranty

The invisible hand theory as applied to corporate ethics and social responsibility means that:

when corporate executives make decisions to maximize profits, the invisible hand of the market will end up producing maximum benefits to society.

A tort is

B) A civil wrong where one party had acted or failed in a wat that causes loss to be suffered by another.

13.) Ignatio ordered his stockbroker to purchase 1,000 shares of National Motors stock on the New York Stock Exchange. The broker purchased the shares from a large institutional investor. This is a purchase on the __________ market. A.) primary B.) secondary C.) tertiary D.) common

B.) secondary

Failsafe Securities Incorporated has filed bankruptcy. Among the investors in Failsafe, who will be paid first?

Bondholders

Which of the following is protected under the Copyright Act?

Choreographic works

Luke hit a golf ball from his front yard into a parking lot. The ball smashed the window of Abigail's car. The type of law that gives Abigail the right to be compensated monetarily for Luke's conduct is which of the following?

It is civil and substantive

Professor Smith announces to his dean that the students in his noon class are the worst students that he has ever had and that they should never have been admitted to the school. The students are actually as qualified as any other students admitted to the school. The students may sue Professor Smith for slander.

False

The principal maty be an individual or entity (such as a corporation), but the agent must be an individual

False

Which instruments provide the investor with a return based on profitability of the company? I. Preferred stock. II. Common stock. III. Profit stock. IV. Performance stock.

I. Preferred stock. II. Common stock.

Which of the following are defenses to Superfund PRP liability? I. Prospective purchaser under the Small Business Liability Relief Act. II. Secured creditor. III. Owned parcel more than 50 years ago. IV. Innocent landowner.

I. Prospective purchaser under the Small Business Liability Relief Act. II. Secured creditor. IV. Innocent landowner.

Which of the following are secured creditors? I. Credit card companies. II. Mortgagees. III. Mortgagors. IV. Bank with interest in a business's inventory.

II. Mortgagees. IV. Bank with interest in a business's inventory.

The debtor is NOT afforded protection from creditors via an automatic stay in which of the following options? I. Chapter 7. II. Chapter 11. III. Accord and satisfaction. IV. Lights out.

III. Accord and satisfaction. IV. Lights out.

Which of the following is true of sovereign immunity?

It exempts nations from jurisdiction by other nations' courts.

The Equal Pay Act requires that

women receive the same pay as men for substantially equal work.

According to the textbook, which of the following statements are true about the typical relationships between corporations and attorneys in the United States?

working closely with a business attorney results in opportunities and reduced business costs.

Meredith owns Meredith's Boutique and has fallen behind on her payments to creditors. She wants to turn around her business and settle past debts. This is known as a

workout.

What is the name for the petition to the U.S. Supreme Court to request that the court review a case, and roughly what percentage of cases does the Supreme Court agree to hear each year?

writ of certiorari, 1 percent

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

A U.S. District Court.

A court of limited authority would best be described as:

A state bankruptcy court that can only resolve bankruptcies within the state

Which of the following is true of trial courts?

A trial court decision is binding on the parties to the case an no one else. (A trial court decision does not establish precedent and only binds the parties to the case itself.)

Which of the following is true of trial courts?

A trial court decision is binding on the parties to the case and no one else

Which of the following is true of trial courts?

A trial court decision is binding on the parties to the case and no one else.

7.) The management of Secure Securities, Incorporated decided to go public and issued stock on the New York Stock Exchange. This is known as the A.) primary market. B.) secondary market. C.) preferred market. D.) common market.

A.) primary market.

The broad view

LeBaron was a corporate executive for ABC Solutions, Incorporated (ABC). He made a decision while managing ABC that turned out very badly and resulted in significant losses for ABC shareholders, even though it appeared reasonable at the time he made it. Which of the following would protect LeBaron from lawsuits against him filed by shareholders?

The business judgment rule

Jason lived on a block where people raised money to pave the alley. Once Jason figured out his neighbors had contributed enough to get the paving done without his help, he refused to contribute, and Jason, the lone holdout, got a paved alley for free. His brother, Hoyt, chided him: "That was wrong, Jason! The world would be a much worse place if everyone did what you did." Hoyt is arguing from which of the following perspectives?

The categorical imperative

Which of the following laws involves a quasi-suspect classification under the Fourteenth Amendment?

The city of Discrimville prohibits people who were born to unwed mothers from working in government run daycare facilities.

If an agent suffers losses while acting for the principal, the principal has a duty to identify the agent for those losses.

True

Vince is a general contractor who hires Brad to install plumbing in a government building under construction. That morning Brad is beginning work, Vince discovers that Brad has lost his plumbing license and is no longer eligible to do work on gov. buildings. When brad shows up ready to work, Vince informs him that he cannot use his services and sends him away. The agency relationship terminated due to operation of the law.

True

Which of the following is true of the U.S. court system?

U.S. Supreme Court appellate review is discretionary

Which of the following is true of the U.S. court system?

U.S. Supreme Court appellate review is discretionary. (U.S. Supreme Court review is discretionary, litigants have no automatic right to a review of their matter on appeal)

Which of the following is true of the U.S. court system?

U.S. Supreme Court is discretionary.

Which of the following is not a theory of discrimination under the Civil Rights Act?

Unclear opportunity

Which of the following would create a case with concurrent jurisdiction?

Myron, a resident of Missouri, is suing Zandra, a resident of Maryland, for $100,000 because Zandra accidentally dropped a sledgehammer on Myron's big toe.

Which of the following laws prohibits contracts, combinations, and conspiracies in restraint of trade or monopolization?

Sherman Antitrust Act

The most important multilateral agreement on international protection of patents is called the _____________ agreement.

Paris Convention

Which of the following best describes how an LLC is taxed?

Pass through taxation

In U.S. v. DeCoster, the defendants' company suffered from an extremely serious salmonella contamination that affected up to 56,000 victums. Peter and Jack DeCoster, defended, saying they had adopted all of the recommendations and precautions but it failed to eradicate salmonella, therefore they were not culpable. Which of the following was the result?

The DeCosters were found guilty because they knew or should have known of the risk presented to the public.

Which of the following statutes was driven primarily by the civil rights movement of the late 1960s and 1970s to prevent what was then a relatively common practice of considering gender or race in credit decisions?

The Equal Credit Opportunity Act.

Which of the following acts establishes a national fraud alert system so that consumers have a timely way to guard themselves once they suspect an identity fraud has occurred?

The Fair and Accurate Credit Transactions Act.

Which of the following statements is accurate regarding the formation of limited liability companies (LLCs) versus limited liability partnerships (LLPs)?

An LLC articles of organization are filed LLp is a statement of qualification

The original works of authors are protected by _______ statutes.

hybrid and express

Doke is manager of an apartment building and notices the parking lot has numerous potholes. Residents are complaining and threatening to not renew their leases. Without contacting Kimba, the owner of the apartment building, Doke calls a paving service, signs a contract, and has them repave at a cost of $50,000. Doke has no authority to make such expensive repairs. When Kimba returns from a vacation and sees the parking lot, she thanks Doke for his initiative and approves of the repairs. This is an example of a/an

A) Ratification of agency

A grand jury will issue a[n] ________ if its investigation indicates that a defendant should be held over for trial.

indictment

Losses incurred by a limited liability partnership (LLP) are reported on the partners'

individual returns and are deductible.

The U.S. Supreme Court has recognized that the president has _____ power over administrative agencies by virtue of the Appointments Clause of the Constitution.

inherent

A company goes "public" through the use of a(n) _____________, when it sells its voting common shares for the first time to outside investors.

initial public offering

Aunt Betsey is sick and tired of neighbors who walk their dogs across her front yards. She is considering going to district court to stop the trespassers. What type of remedy should she pursue?

injunction

Debtco no longer has enough assets to pay the usual business bills that arise. Debtco is considered

insolvent.

Which of the following is a true distinction between employee agents and independent contractors.

A) The agent is classified based on the level of direction and control that the principal has over the agent.

intermediate scrutiny.

iowa federal court because of federal question jurisdiction

it is civil and substantive

The three most common formal methods of ADR are:

mediation, arbitration, and expert evaluation

Those that have an ownership interest as principals in an LLC are called ___________.

members

Carla worked for Schmuckco and was fired. In retaliation, she downloaded several hundred pages of secret Schmuckco marketing plans for the upcoming year and sold them to HiTech, Inc., a competitor of Schmuckco. Carla has engaged in

misappropriation.

A pass-through entity is one in which

profits are taxed after they are distributed to individual partners.

Julio is suing Sanchez for breach of contract. He wants to get some documents from Sanchez which he believes will help him prepare his case. What is the term for this procedure? Multiple Choice

request for production

17.) Adrienne, Rocky, Paulie and several other investors have a common expectation of profit in Mickey, Incorporated. Assuming all other requirements to classify this as a security are in evidence, the commonality of this transaction would be described as a A.) horizontal commonality. B.) parallel commonality. C.) vertical commonality. D.) common commonality.

A.) horizontal commonality.

The adjudicative phase of the criminal justice process includes each of the following components except

setting bail.

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

the narrow view, or invisible hand theory

Crimeco senior executives were involved in a massive fraud scheme to misrepresent their financial health. Faroq was employed by Crimeco as a regional manager and reported to state authorities about the fraud. Faroq is known in employment law as a/an

whistle-blower.

Goss led a large group of employees in his union to go on a strike for one day, but without the permission of his union. This is known as a/an

wildcat strike.

Which of the following is one of the rights of the landlord in a landlord-tenant agreement?

A landlord may begin the process of evicting a tenant by first filing a lawsuit of eviction in a local court.

Jessica was caught shoplifting at a department store both by employees who witness... the store's management may hold her as long as it takes to her to confess

False

Under federal law, what must an employee who is alleging employment discrimination do first?

File a complaint against the employer with the local EEOC office within 180 days of the adverse job action.

First amendment free speech

The broadcast news test advises corporate executives to _______.

Only do those things in secret that you would not mind becoming public, that is, showing up in the broadcast newsCorrect

Which of the following is true of Subchapter S corporations?

They receive flow-through tax treatment.

The contract is void, Carla loses.

The court will ask whether Oregon has a substantial government interest in regulating the speech.

The dance instructors

What was the court's ruling in the Goodrich Corp. v. Town of Middlebury case?

The district court must give "some deference" to the special master's findings but not be bound by them.

ABC Corporation substantially copied a patent of XYZ Corporation. ABC did not precisely copy XYZ's patent as there was one element of ABC's device that performed substantially the same function but was not exactly the same as XYZ's patent. If XYZ sued for infringement, what doctrine would support XYZ's theory?

The doctrine of equivalence

Teddy holds a bond issued by XYZ Corporation that has matured. What has happened to his bond?

The face value of the bond is due to be paid to him.

Courts have given agencies broad latitude in publishing a revised final rule without an additional comment period under what condition?

The revisions were a logical-outgrowth of the original proposal.

Dirk and Benedict agreed to form a limited liability company (LLC). However, they did not execute an operating agreement. What will be the result?

The state LLC statute will set out the default rules.

The utilitarian approach to ethics

An S corporation

has the ability to distribute earnings without double taxation

Adrienne, Rocky, Paulie and several other investors have a common expectation of profit in Mickey, Incorporated. Assuming all other requirements to classify this as a security are in evidence, the commonality of this transaction would be described as a

horizontal commonality.

In an agency relationship, one party agrees to act as an agent for another party.

True

Inducing someone to break a contract with a third party is a tortious conduct.

True

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

a voidable contract

One who has experience, business savvy, and knowledge of a market to the extent that the law imputes a certain cognizance of investment risk and the ability to protect his or her own interests is referred to as a(n)

accredited investor.

Murder is the killing of a human being with malice aforethought. Malice aforethought is the premeditation and planning of the crime. Malice aforethought shows that one considered the consequences of the action and knowingly committed the crime. The killing would be the

actus reus.

The relationship between ethics and law is that:

all of the answer choices are correct

A limited liability company (LLC) is formed by filing _____ with the state public filing official in the secretary of state's corporation bureau.

articles of organization

In a trademark infringement claim, it is not necessary to provide evidence of consumer confusion in order for the mark holder to prevent another from using the holder's mark.

false

In the case of unsecured debts, a creditor is allowed to use a judicially created procedure to seize a borrower's primary residence.

false

One of the primary weaknesses of a limited liability company (LLC) is that it fails to provide its members flexibility in terms of the rights and responsibilities of each member.

false

Punishment as an underlying tenet to criminal law is based on the concept that punishment, not rehabilitation, is an effective part of the criminal justice system.

false

The term dissociation describes the

separation of a partner from a partnership.

statute of limitations

Annias offers to sell her house to Tobias in consideration of $220,000. Tobias says he will pay $219,000. What is the status of this exchange of promises at this time?

this is an offer and a counteroffer that terminates Tobias's power of acceptance of the original offer

The color or shape of an item, if distinctive, is

trade dress.

When a seller refuses to sell a certain product unless the buyer also purchases a different product from the seller, this is classified as a __________.

tying agreement

All of the following are types of partnerships except

uniform liability partnerships.

universalization approach

Wilhelm has taken out a private loan from Community Home Bank (CHB). Credit was extended to him based on the fact that he had paid his loans off in the past, made a high income and was considered a good credit risk. CHB required no collateral. CHB is known as a/an

unsecured creditor.

Rocket Corporation's slogan was "Treat customers and the world with respect." This principle informs Rocket's strategies and plans and guides employees. According to the text, this is an example of:

values management

12.) Gerald was the national sales manager of the Intergalactic Space Corporation (ISC), a publicly traded company. ISC was involved in financial report fraud, but Gerald was not involved in it and had no knowledge of it. Under Sarbanes Oxley (SOX), Gerald was forced to forfeit several years of executive bonuses that were tied to the financial reports that he had received from ISC. Under SOX, this is known as a/an A.) clawback provision B.) fraud penalty clause C.) executive forfeiture D.) troubled assets relief provision

A.) clawback provision

23.) Arthur has attached a device to a local ATM machine that records customers' bank account numbers and PINs. He then sells these account numbers and PINs to nefarious individuals who use the information to steal money from the customers' accounts. Arthur is A.) guilty of a crime under the Computer Fraud and Abuse Act as amended by the Patriot Act. B.) guilty of a crime under the Mail Fraud Act. C.) not guilty of a crime because he was not the one stealing the money. D.) guilty of the crime of embezzlement.

A.) guilty of a crime under the Computer Fraud and Abuse Act as amended by the Patriot Act.

In which of the following situations would jurisdiction over an out-of-state defendant be likely to be exercised by a court?

All of the situations are ones in which jurisdiction over an out-of-state defendant would be likely

In which of the following situations would jurisdiction over an out-of-state defendant be likely to be exercised by a court?

All of the situations are ones in which jurisdiction over an out-of-state defendant would be likely.

Which of the following is correct of legally mandated arbitration?

it is nonbinding and gives the losing party the automatic right to appeal

Dissolution of a limited liability corporation (LLC) is a

liquidation process triggered by an event specified in the operating agreement.

Janie is trying to work out the differences between the parties to a dispute and help them resolve it within one week, but if she cannot, she then has the power to render a decision in the dispute. Which of the following forms of alternative dispute resolution (ADR) does this most closely resemble?

med-arb

Bennie was appointed by the state to act as a go-between, helping two parties to a lawsuit to resolve their dispute. Bennie's job did not allow him to make a final decision in the matter. Bennie is known as a/an: ______________________.

mediator

Aaron and Noah formed a corporation for the purpose of raising money for their church charity. This is known as a/an

nonprofit corporation.

The out of existence option is a

nonstatutory option.

The most common category of corporation is a __________ corporation.

privately held

29.) Maria is the CFO of a company being investigated by the SEC for various alleged violations. Each of the following would constitute an obstruction of justice except A.) ordering her secretary to lie if she is questioned. B.) refusing to answer questions and invoking the Fifth Amendment. C.) shredding her personal calendar and appointment book. D.) changing some figures on documents used to support filed financial statements.

B.) refusing to answer questions and invoking the Fifth Amendment.

23.) Secure Financial Advisors (SFA) was a firm that bought and sold securities on behalf of their clients. SFA is known as a/an A.) issuer. B.) adviser. C.) intermediary. D.) investor.

C.) intermediary.

Class action

The debtor is afforded protection from creditors via an automatic stay in which of the following options? I. Chapter 7. II. Chapter 11. III. Chapter 15. IV. Automatic Stay Act.

I. Chapter 7. II. Chapter 11.

Which of the following are controls on mobile sources required by the Clean Air Act (CAA)? I. Corporate Average Fuel Economy (CAFE) standards. II. Operating permits. III. Requirement for state-of-the-art technology for new projects. IV. Tailpipe emissions standards.

I. Corporate Average Fuel Economy (CAFE) standards. IV. Tailpipe emissions standards.

Which of the following are not rules used by courts for determining whether literal patent infringement has taken place? I. Exclusion II. Exactness III. Addition IV. Attention

I. Exclusion IV. Attention

Which of the following are among the requirements to acquire ownership of real estate via adverse possession? I. Open, notorious, and visible possession. II. Continuous possession for a statutory period of time. III. Prescription or express grant of land. IV. Exclusive and actual possession.

I. Open, notorious, and visible possession. II. Continuous possession for a statutory period of time. IV. Exclusive and actual possession.

Which of the following are required for Congress to override a final rule by an administrative agency? I. Overruling resolution must be passed within 60 days. II. An overruling resolution must be presented to the president. III. There must be a two-thirds majority to approve. IV. Both houses must agree to the overruling resolution.

I. Overruling resolution must be passed within 60 days. II. An overruling resolution must be presented to the president. IV. Both houses must agree to the overruling resolution.

Which of the following are considered fundamental tenant rights? I. Possession. II. Quiet enjoyment. III. Habitability. IV. Access and occupancy.

I. Possession. II. Quiet enjoyment. III. Habitability.

Intermediate scrutiny

Which of the following is true of the Fair Debt Collection Practices Act (FDCPA)?

It does not regulate a creditor collecting her own debt.

The Federal Unemployment Tax Act accomplished which of the following?

It established a state-administered fund to provide payments to workers with sudden job loss.

Which of the following is not true about the Magnuson-Moss Act?

It imposes an implied warranty on every product sale.

It is a valid mass tort action.

Which of the following is correct of legally mandated arbitration?

It is nonbinding and gives the losing party the automatic right to appeal

Judicial review

Julio is a general partner and Farrah is a limited partner in a limited partnership. Julio and Farrah are the only partners and each invested $50,000 in the partnership. This $100,000 represents the total assets in the partnership. There is a substantial lawsuit against the partnership and the plaintiff is awarded a judgment for $200,000. The plaintiff collects the $100,000 of partnership assets and is attempting to collect the remaining $100,000. Which of the following is a correct statement of the additional liabilities that are still owed by Julio and Farrah?

Julio will have a liability of $100,000 and Farrah will have a liability of $0.

2. Chapter 20 Alternatives for Insolvent Borrowers Alternatives for Insolvent Borrowers Insolvent businesses are those that cannot pay their bills as they become due in the usual course of business. In addition to filing for protection under the bankruptcy code, insolvent business owners have several other alternatives. A company's course of action is largely dependent on the type of financial crisis that caused the insolvency.

Out of existence: Nonstatutory option Accord and satisfaction: settlement Chapter 7: Liquidation Chapter 11: Reorganization

Which of the following laws provides a remedy against those that attempt to monopolize an industry?

Sherman Act

Which of the following is true of the U.S. court system?

U.S. Supreme Court appellate review is discretionary.

Dixon is on trial for embezzlement, a crime. For her to be proven guilty, her guilt must be proved

beyond a reasonable doubt.

Cellupro, a company that designed and manufactured cell phones, had a unique design to their products and a particular color for their phones and packaging. This design and color is known as

trade dress

Isadora was the chief financial officer of Big Band Incorporated (BBI), a publicly traded corporation. She knew that BBI was about to announce record earnings for the year, a fact not yet made public, so she purchased 1,000 shares of BBI stock before the earnings were made public. One week later when the earnings were made public, BBI stock increased in value $10 per share and Isadora immediately sold her newly purchased shares and made $10,000. Isadora has committed

traditional insider trading.

The three primary sources of international law are

treaties, customs, and judicial decisions.

All federal statutes create liability for owners of contaminated property, but only if the owners have contributed in some way to the contamination.

true

Which of the following statements about alternative dispute resolution (ADR) is true?

A common formal ADR method is mediation.

A person who is a customer of safemart who slips and falls on aisle four is considered

A) Invitee

Which of the following statement(s) is/are true?

All of the answer choices are correct.

A long-arm statute would be triggered when

All of the answer choices involve situations where a long-arm statute would be triggered.

Congress is drafting a piece of legislation that legalizes marijuana. It has not yet passed both Houses of Congress by a majority vote or been signed by the president. This is known as a:

Bill

Which of the following is true of the different categories of patents?

All patents must meet the novelty standard to be protected.

Med-arb

The three most common formal methods of ADR are:

Mediation, arbitration and expert evaluation

The narrow view of corporate social responsibility would be represented by which of the following statements?

Melanie, a stockbroker with a Wall Street firm, told a fellow broker: "You know, we do what's best for the country when we maximize profits for shareholders. These do-gooders who say the government should regulate this and that, these nutjobs who say we ought to look out for the little people, they're the ones really holding the economy back and hurting everybody."

Which of the following will not create minimum contacts in a state sufficient to find personal jurisdiction on an out-of-state defendant?

Modern Pharmaceuticals maintains a website that provides customers information about its products, as well as email addresses and phone numbers for regional sales representatives from whom customers can purchase products.

Which of the following is included as a consumer protection under Regulation Z?

Requires a uniform method for disclosing APR and the finance charge on loan documents.

It is a voidable contract.Correct

Which of the following is correct of legally mandated arbitration?

It is nonbinding and gives the losing party the automatic right to appeal.

Which of the following is true of arbitration?

It is similar to a trial in that the arbitrator functions much like a judge

Which of the following is true of arbitration?

It is similar to a trial in that the arbitrator functions much like a judge.

High Sierras, LLC is incorpated in Nevada, but is headquatered near Squaw Valley in Nothern California. High Sierra could be sued in Nevada for it's alleged defective product if:

It maintains a sales agent with a small satellite office in Carson City, Nevada.

The broadcast news test is most accurately represented by which of the following?

Jaelynn, a VP of sales, told her regional sales managers to ask themselves whether they would like their sales strategies and ethics showing up on the news the next day.

Which of the following unsecured creditors has first priority?

Janice, an attorney who handled the bankruptcy and has unpaid legal fees.

The National Labor Relations Act requires which of the following?

Labor and management to negotiate in good faith.

Bunny is not allowed to file for Chapter 7 bankruptcy in her state. Which of the following would be a reason for this under bankruptcy law?

She makes too much money to pass the means test.

State common law.

Tamelin was a shareholder of Low Country Incorporated, a corporation. Which of the following is a right that Tamelin has?

To elect and remove directors if she has consent of the majority of shareholders.

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

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

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

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

Which of the following is not covered under the Resource Conservation and Recovery Act (RCRA)?

Toxic Chemical Compounds.

Yes, because this is a bargained-for exchange and has adequate consideration

Which of the following statements about alternative dispute resolution (ADR) is true?

a common formal ADR method is mediation

Demetrius offers to sell his car to Ivana for $20,000 Ivana tells him she will pay him $15,000. Ivana's response is

a counteroffer

Demetrius offers to sell his car to Ivana for $20,000 Ivana tells him she will pay him $15,000. Ivana's response is

a counteroffer.

A court of limited authority would best be described as:

a state bankruptcy court that can only resolve bankruptcies within the state

The three stripes on Adidas clothing represent

a trademark.

Pete has met with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros. The professional investors focus exclusively on funding technology companies in the legal field and are demanding substantial control over Techlaw Pros through sitting on the board of directors. Pete is seeking money from

a venture capital firm.

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

a voidable contract.

The legal process and safeguards given to individuals in the U.S. during criminal investigations, arrests, trials, and sentencing is known as

criminal procedure.

Oversight and management of a corporation's general course of direction is the responsibility of its ________.

directors

Evidence obtained from an illegal search may not be used against the defendant. This is called

fruit of the poisonous tree.

Wilder wants a loan for his small business. He approaches Ingalls, a banker, who agrees to give him the loan on condition that Wilder sign a personal guaranty. Under these circumstances, Wilder's

personal assets will be liable in the event he defaults on the loan.

The Lanham Act allows the U.S. Patent and Trademark Office to reject a copyright if it is

immoral, deceptive, or scandalous matter.

Haley and Gina were partners in a limited liability corporation (LLC). The LLC became insolvent, it was unable to pay off its debts. There was $100,000 left in the LLC in cash assets and Haley and Gina immediately transferred $50,000 each to their husbands. This is known as a/an

improper distribution.

4.) Janet was tried and convicted of reckless driving. The sentence will be imposed A.) based on the discretion of the jury, subject to sentencing guidelines. B.) based on the discretion of the judge, subject to sentencing guidelines. C.) by the judicial sentencing board. D.) by an independent due process sentencing tribunal.

B.) based on the discretion of the judge, subject to sentencing guidelines.

Which international legal systems use written law as their highest source of law?

civil law systems

In a franchise arrangement, the _____________ is the business entity which sells the ______________ the right to use its trade secrets, trademarks and products to operate a business.

franchisor, franchisee

Fiduciary duties are the duties that

general partners owe to ensure they are acting in the best interest of the partnership.

According to the textbook, which of the following statements about corporate strategy with legal counsel is/are true?

research indicates that management working cooperatively with attorneys will add value to the business

The Clean Air Act improves outdoor air quality. The law focuses on pollution from both __________ sources and __________ sources.

stationary; mobile

strict scrutiny

Registration of a trademark is

subject to an approval process through the U.S. Patent and Trademark Office.

Suppose that a landlord leases a refrigerated warehouse to Cold Storage for a period of 10 years. After two years, Cold Storage leases 50 percent of the warehouse to Polar Industries for a period of one year. The agreement between Cold Storage and Polar Industries is a(n) ________________.

sublease

Although both common stockholders and preferred stockholders share in the profits, common stockholders are _____ to preferred stockholders.

subordinate

Mitigating circumstances

if proved, may be applied to reduce a defendant's punishment.

The legal term for ownership rights in property is _______.

title

Which of the following legal systems is typically used by former colonies or protectorates of Great Britain?

Common law

The amendment that guarantees a speedy public trial is the

Sixth Amendment.

Jan is on trial for arson. For Jan to be found guilty, her guilt must be proved

beyond a reasonable doubt.

Trade secret protections are provided through

state statutes and common law.

Only those who trade on insider information for their own benefit are guilty of a criminal violation involving that insider information.

FALSE

Which of the following are exempt assets in a Chapter 7 bankruptcy?

Jessie declares personal bankruptcy and owns a diamond ring appraised at $1,500.

The proper mode of acceptance of an offer up and until the offer has been accepted is established by

the offeror

A utility or business method patent will last for

20 years from the date of the filing of the application with the U.S. Patent and Trademark Office.

A study published in the Harvard Business Review in January 2000 found that intellectual property represents approximately ________ of an average firm's value.

70 percent

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

A U.S. District Court

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

a U.S. district court

The relationship between ethics and law is that:

all of the choices are correct

Huge Corporation sought to raise money by issuing bonds. This is an example of ______________ financing.

debt

LaTavian was a midlevel manager for Superco. He saw financial irregularities within Superco and reported them to the federal authorities. The SEC followed up on LaTavian's tip and discovered fraud at Superco which led to an SEC enforcement action and recovery from Superco. Under the Dodd-Frank law, what percentage of the recovery is LaTavian entitled to as a reward for being a whistle-blower?

10 to 30 percent

1. Chapter 17 Rulemaking Rulemaking One of the most important duties of administrative agencies is to generate regulations pursuant to objectives set by Congress. This is normally done through a process called rulemaking. These rules are designed to facilitate the federal government's administration of the law and programs as set down in federal statutes. Rulemaking involves following a procedure set down in the Administrative Procedures Act (APA) that is centered on a deliberate decision-making process with adequate opportunity for public comment.

1. Enabling Statute: Fruit Standards Control Act 2. Agency Study: FDA researches issue 3. Proposed rule published: Preliminary version of standard A published 4. Public Comment: Growers object to standard A 5. Rule revised (if necessary): Slight changes to standard A 6. Final Rule Published: Standard A has force of law 7. Judicial challenges: Growers file lawsuit

1. Chapter 15 Piercing the Corporate Veil Piercing the Corporate Veil Although a major advantage of the corporate form of entity is the liability protection for its principals, there are some cases where a court will disregard the corporate entity and allow a creditor or judgment holder to reach through the corporation to the personal assets of its principals. This is called piercing the corporate veil and may result in significant liability for the corporation's principals. Ultimately, the law provides a fairness standard for when the corporate veil should be pierced. Business owners and managers can limit liability and control risk by understanding the circumstances under which a court will pierce the corporate veil.

1. Inadequate capitalization: Shell Corporation with no assets 2. Nature of claims: Involuntary Creditor 3. Fraud: Lying on a loan application 4. Corporate Formalities: Failure to file required forms.

2. Chapter 22 The Criminal Justice Process The Criminal Justice Process The criminal justice system is typically thought of as two separate processes. The system begins with the investigative phase. This involves investigation by authorities that may lead to arrest, filing of formal charges against a defendant, and the setting of bail by the local magistrate. The adjudication process begins with a preliminary adjudication, such as grand jury or local magistrate, and provides a system to bring the defendant through the process either by plea or by trial.

1. Investigate possible crime 2. Interview witnesses and suspects 3. Obtain search warrants 4. Arrest (or issue citation of minor infraction) 5. Formal charges filed against defendant 6. Local judicial authority sets bail

A design patent will last for

14 years from the date of the filing of the application with the U.S. Patent and Trademark Office.

A primary market is one in which investors buy and sell issued securities among themselves.

FALSE

Securities laws are designed to protect the investor by providing insurance for losses, and punishment for the venture's principals if the business does not earn a profit.

FALSE

Which of the following is true of implied warranties under the Uniform Commercial Code (UCC)?

They are applicable to sales made by one merchant to another merchant.

Which of the following is correct of federal powers in the U.S. system?

They are limited and granted

Which of the following is correct of federal powers in the U.S. system?

They are limited and granted.

The Sarbanes-Oxley (SOX) Act is federal legislation intended to protect publicly held companies from frivolous litigation. The Act makes it more difficult to pursue litigation under the securities laws that is based solely on commentary by company executives.

FALSE

According to the National Environmental Policy Act (NEPA), actions that have little or no potential for significant environmental impact are classified into the category of _____.

_____ requires the government to prove that a defendant's actions objectively satisfied the elements of a particular offense.

Actus reus

Garth is best friends with Wayne, the CEO of Great Pharma, Incorporated (GPI), a publicly traded corporation. GPI had just made an important discovery: the cure for cancer. The information has been kept secret by GPI. Before the news was made public in a press conference, Wayne told Garth about it on May 1 and that day Garth bought 10,000 shares of GPI stock. The press conference was on May 2 and after the announcement, GPI stock went up $50 a share. Garth immediately sold his stock and made $500,000. Garth is known in the law of insider trading as a/an

tippee.

When a hazardous substance spill occurs, the Environmental Protection Agency (EPA) and the principally responsible party (PRP) begin negotiations regarding liability and cleanup. If the negotiations result in a settlement being reached before cleanup efforts begin or are complete, the EPA and PRP will

to prevent punish and deter

Before shareholders of a corporation can file a derivative action lawsuit, they must first make a formal demand on the board of directors to take corrective action and must allow sufficient time for correction.

true

Courts are reluctant to allow fair use as a defense if a copyright holder demonstrates that the value of a copyrighted work will be diminished by allowing its use.

true

The managers of a limited liability company (LLC) owe the fiduciary duties of care and loyalty to the LLC's other members.

true

The parties to an international dispute are typically corporations or government entities, while domestic dispute resolution can involve relatively small claims by individuals.

true

The term "property" in a legal sense is defined broadly as a person's set of legal rights over others to use his or her property exclusively.

true

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Business Law & Ethics Exam 1, Business Law Exam 1, blw 411 1-6, law exam 3, BLW 411 Ch 22 Final Exam, Bus Law 391, BLW Chapter 3 Practice, BLW 411 Ch 16 Final Exam, LEGAL AND SOCIAL ENVIRONMENT OF BUSINESS FINAL

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