Business Law & Ethics Exam 1
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.
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
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
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
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.
Selina has been served with a summons and complaint. Which of the following options does she have?
file a motion to dismiss
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
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 courts renders decisions binding only on the parties involved in the dispute?
a U.S. district court
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
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 relationship between ethics and law is that:
all of the choices are correct
Which of the following statements about ethics is true?
primary stakeholders are those directly impacted by a decision a corporation makes
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
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
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
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
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
Which of the following is an example of the preexisting duty rule?
Deputy Kelly
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
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
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
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
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
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
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 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.
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
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 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.
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
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.
Which of the following is correct of federal powers in the U.S. system?
They are limited and granted.
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
Which of the following is true of the U.S. court system?
U.S. Supreme Court is discretionary.
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.
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.
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
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
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
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
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
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
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
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
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?
This action violates no constitutional amendment
Which of the following is true of arbitration?
it is similar to a trial that the arbitrator functions much like a judge.
Constitutional law and administrative law are known in the United States as _______________ sources of law.
primary
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 shoulld be dismissed and she must undergo binding arbitration.
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.
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 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.
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.
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.
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
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.
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
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
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 degree of specific performance.
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.
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.
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
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
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
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
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.
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.
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
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
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
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.
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
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
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
The three most common formal methods of ADR are:
mediation, arbitration, and expert evaluation
Chan wants to file a lawsuit. What will be the first stage of litigation for him?
pleadings
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
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
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
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
Stare decisis is a Latin phrase that means ____________________________.
similar cases with similar facts and issues should have similar judicial outcomes
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
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
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
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
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
Corruptco is a large machine shop that fabricates metals. Corruptco maximizes profits and shareholder value by polluting the local river, where fish are often killed off due to the pollution, rather than installing a pollution abatement device. While this is not specifically in violation of the law, it does put burdens on the local community. Which theory of corporate social responsibility is Corruptco exhibiting?
the narrow view, or invisible hand theory
The proper mode of acceptance of an offer up and until the offer has been accepted is established by
the offeror
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
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
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
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 statements about alternative dispute resolution (ADR) is true?
A common formal ADR method is mediation.
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.
A long-arm statute would be triggered when
All of the answer choices involve situations where a long-arm statute would be triggered.
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.
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.
In which of the following cases would diversity of citizenship jurisdiction be exercised?
Rutger, a private party from Massachusetts, is suing Benjamin, a private
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.
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
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
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
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
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
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
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
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
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
As a general rule, judges are _________________ and juries are ____________________.
finders of law, finders of fact
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 selection clause
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 statements about organizational ethical systems is true?
informal value systems standing alone may be too vague and impractical
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
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
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
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
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
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 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
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
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
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.
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.
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.
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.
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.
