BLAW FINAL EXAM REVIEW

Molly had surgery in California to remove a cancerous eye. The doctor removed the wrong eye leaving Molly permanently blind. She sued the doctor in Superior Court in California for medical malpractice. The jury awarded her $2,500,000 in special damages and the maximum allowable in general damages. Her total jury award was

$2,750,000

Section 10(b) violations may result in fines up to $25 million and/or prison for up to

25 years

All forms of business organizations limit the liability of their owners.

False

Mrs. Palsgraf sued the Long Island Railroad for injuries she sustained while standing on a railroad platform. At some distance away on the other end of the platform, an explosion occurred when a man being helped onto a moving train by railroad conductors dropped a package that contained fireworks. This resulted in an explosion that caused a scale to fall onto Mrs. Palsgraf. The court denied her claim on the grounds that the occurrence was

Not foreseeable

A corporation is recognized under U.S. law as a person.

True

As a partnership, a limited liability company may pay no taxes-profits can be passed through to the members, who pay personal taxes on the profits.

True

Because state corporate laws differ, persons wishing to incorporate may look for the state that offers the advantageous tax or other provisions

True

Dude, a recent college graduate, applies for a job with an accounting firm in Long Beach, CA. His prospective employer can require Dude to submit to a drug test as part of the application process.

True

To make informed decisions and supervise corporate officers and employees, the directions need an unrestricted right to inspect corporate books and records

True

When a shareholder commingles personal and corporate interests so that the firm has no separate identity, the shareholder may be held liable for the firm's debt.

True

When deciding which form of business organization to choose, businesspersons normally take into tax considerations.

True

Bill and Maria each own an undivided interest in a house that will pass to the survivor when either Bill or Maria dies. This is

a joint tenancy

Joe moves into an abandoned house in the middle of a suburban tract in Lob Beach, CA with his family. They park cars in the driveway, waive to the neighbors, play touch football in the front yard, do not pay rent, but pay property taxes. After 5 years Joe can take ownership of the property by

adverse possession

The chief executive officers of the major U.S. steel makers would most likely be prosecuted under the antitrust laws if they

agreed to work together to control the piece of domestic steel

A non-possessory interest in land which allows ingress and egress on another's property is called

an easement

Global Enterprises Inc. competes in many product, service, and geographic markets. Global's board .. of a large number of directors. The firm faces myriad complex business issues. To avoid its governance becoming unwieldy, the company can delegate some of its functions to

an executive committee

A legal entity that develops, registers and sells securities for the purpose of financing its operations is

an issuer

Jeffrey, the CEO of a B.I.G. Corportation, tell his wife, Jennifer, that his corporation is in secret talks to merge with another corporation. The merger will drive the value of B.I.G.'s stock sky high. While Jeffrey is asleep, Jennifer calls her brother Biff, ands tell him to buy B.I.G. stock in anticipation of the merger a. no crime has been committed b. this is insider trading c. Jennifer and Biff may go to jal d. b and c

b and c

Kay and Leo from Metro Delivery Inc. Responsibility for all policymaking decisions necessary to the management of corporate affairs rests with Metro's

board of directors

The body of law developed from judicial decisions is

common law

Seizure of private property in a foreign country by the government of that country for a proper public purpose and with just compensation is

condemnation

The right of the U.S. government to acquire possession of real property in the public interest is the right of

eminent domain

Corporations can be criminally liable for

having knowledge of a criminal act of an employee failing to perform specific duties imposed by law crimes committed by employees in the course and scope of their employment all of their answers

Title VII of the Civil Rights Act prohibits employment discrimination on the basis of

height disability race, sex, color, religion and national origin all the answers- correct

Before a security is offered to the public, the SEC requires the filing of a

registration statement

Before a security is offered to the public, the SEC requires the filing of a a. registration statement b. perfect tender c. K-1 d. complaint

registration statement

The purpose of state workers compensation laws is to establish an administrative process for compensating

retirement, disability, death, and hospitalization insurance periods of unemployment , subject to eligibility requirements injuries that arise in the course of employment, regardless of fault. all of the choices - correct

A corporation's board of directors is responsible for ensuring that the corporate officers are acting in best interest of the

shareholders

Contracts for the sale of goods are governed by

the Uniform Commercial Code

The Sarbanes-Oxley Act requires chief corporate executives to take responsibility for

the accuracy of financial statements