BUL 3310 FSU Bailey Exams 1 -4

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Under which standard of review would a court hear a case involving government regulation of commercial speech?

Intermediate scrutiny

Anne, a resident of New York, is suing Bill, also a resident of New York, in a contract dispute that is governed by New York state law. This controversy would be classified as an ______ case.

Intrastate

Maya, who lives in Maryland, hired Mark, a contractor who lives and is licensed in Maryland, to renovate her home. The contract is governed by Maryland law. Should a dispute arise over the contract, it would be classified as a(n)---------------case.

Intrastate

Pam and Sam took an overnight flight to Hawaii. Without their knowledge or permission, an agent from Big Ad Agency took a picture of them as they slept and used it in a full-page ad in a national magazine. The agency had superimposed an image of a man in a business suit, working on a laptop, sitting next to them. The caption read "Our Brokers Never Sleep." Pam and Sam could sue Big Ad for? Public nuisance Invasion of the right to privacy Slander Private nuisance

Invasion of the right to privacy

Assume that the resort town of Ocean View passed a law imposing an extra tax on boardwalk food businesses that used plastic cups, plates or utensils. Plastic litter costs the town more to dispose of and it wants to pass this cost on to the merchants. Fran Fries, a boardwalk food vendor, claims that the law is denying her equal protection of the law. Which of the following tests will the court apply in deciding this case?

Is the law rationally related to a legitimate government interest?

Which of the following statements about res judicata is correct?

It binds the parties to the decisions in a lawsuit so that neither can re-litigate the case

Which of the following statements about quantum meruit is correct? It is an equitable remedy for wrongful interference with a contractual relationship. It is an equitable remedy to prevent unjust enrichment when there is no contract. It is a contract remedy used for breaches involving fraud. It is a contract remedy used when the breaching party is insolvent.

It is an equitable remedy to prevent unjust enrichment when there is no contract.

When workers protest a management policy by refusing voluntary overtime and arranging for selected workers to call in sick, they are engaging in a ___ - strike - lock out - job action - boycott

Job Action

The power of the judicial branch to declare that laws are invalid because they violate the Constitution is known as ______.

Judicial Review

The power of a court to hear cases and issue binding decisions is called _________.

Jurisdiction

The term used in law to denote the power of a particular court to hear a case and render a binding decision is

Jurisdiction

The U.S. Senate is composed of _______________ representatives from each state.

2

Which of the following is the kind of contract in which each party offers as consideration a promise to do something? 1.Quasi 2. Bi-lateral 3.Implied in law 4. Unilateral

2

Local hunter went onto Neighbor's land because deer had been seen there. Hunter knew that the land belonged to his neighbor and that it was posted against hunting. If Neighbor sues Hunter: (select all the answer options that are correct) 1. Hunter will be required to share his venison 2. Hunter may have to pay neighbor's court costs and attorney's fees 3. Hunter may be liable for punitive damages. 4. Hunter will be liable for willful trespass to land.

2,3&4

Which law governs the lease of the goods? State common law The Convention on the Lease of Goods The Consumer Credit Act 2A of the Uniform Commercial Code

2A of the Uniform Commercial Code

If a debtor has 12 or more unsecured creditors, at least ___ of these creditors with aggregate claims of $13, 475 must sign the petition to force the debtor into an involuntary bankruptcy 3 6 7 12

3

In door to door sales, customers have a "cooling off period" during which they can cancel their orders. The cooling off period is for ___ days a. 1 b. 3 c. 5 d. 180

3

A minimum of ______ Supreme Court justices must agree to accept a case.

4

An illusory promise is created when 1. The promise is conditional on an event happening first that is outside the promissor's control. 2. The promise cannot be performed within 1 year of the contract date. 3. The promise is conditional on any other event happening first. 4. The promise is conditional on an event happening first that is totally within the promissor's control.

4

Article 2A of the Code governs Leases of goods Consignments Sales of securities Sales of fixtures

Leases of goods

A civil law system is based on ______ and a common law system is based on ______.

Legislative codes?..judicial decisions

Which of the following is not classified as a good under Article 2? Food sold as take out and consumed at home. Food sold and consumed in a restaurant An unborn race horse A 3 month lease on a lakeside cabin.

A 3 month lease on a lakeside cabin.

Which of the following mistakes would result in the rescission of the contract? A unilateral mistake of law A unilateral mistake of value A unilateral mistake of material fact A bilateral mistake of material fact

A bilateral mistake of material fact.

Which of the following is an unliquidated debt? An interest-free loan of $10,000 from Grandfather to Tim. A payment of $2,500 is to be made every June 1st for 4 years. A mortgage for 20 years at 5.02% interest A car loan for 6 years at 2.50% interest A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges.

A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges.

Which of the following is an example of an unliquidated debt? A promissory note for the sum of 10,000 to be repaid in 6 years at 5 interest. An installment sales contract for the purchase of a 5,000 mower with 200 down and the rest financed at 8 for 3 years. A cell phone service contract for 29.99 per month. A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250.

A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250.

Under the Fair Credit Reporting Act, the reports generated by consumer credit reporting agencies may be furnished to any entity that possesses a ___ for the information Legitimate need Interest concern Minimal curiosity Subpoena

Legitimate need

Which of the following employers is NOT subject to Title VII's antidiscrimination provisions? - A business organized as a sole proprietorship - A business that has twelve employees - A U.S. firm doing business in England - A corporation with fewer than fifteen shareholders

A business that has twelve employees

Which of the following is protected by the 5th Amendment prohibition against self-incrimination?

A confession obtained by physical force

Which of the following injuries would justify plaintiff using res ipsa loquitur? A medical malpractice claim against a surgeon who left a sponge in a patient Res ipsa loquitur could be used in all of the above. A head injury sustained in the pool of a waterslide at an amusement park An automobile accident at a city intersection

A medical malpractice claim against a surgeon who left a sponge in a patient.

Mark is suing Al for alienation of affection, claiming that Al stole his fiance, Amy. His state no longer recognizes alienation of affection as an issue that can be litigated. Which motion should Al file in response to this suit?

A motion to dismiss

In a disparate treatment case, the plaintiff can defeat the defendant's claim that the discriminatory employment decision was taken for a "legitimate non-discriminatory reason" by proving that the reason offered was ... - a pretext - a sham - illusory - fraudulent

A pretext

Which of the following forms of slander would not require that plaintiff show special damages? (select all the answer options that are correct) A statement that someone had a sexually transmitted disease A statement that an accountant had stolen money from a client A statement that restaurant served bad tasting food. A statement that a female student was sexually promiscuous

A statement that someone had a sexually transmitted disease A statement that an accountant had stolen money from a client A statement that a female student was sexually promiscuous

Which of the following is not an element of a valid contract? Legal capacity of the parties to the contract Agreement Consideration A written document with notarized signatures

A written document with notarized signatures.

What is the difference between libel and slander? Libel is a written communication, and slander is an oral communication. Libel is also a felony, but slander is not. Libel requires that plaintiff prove malice on the part of the defendant, but slander does not. Businesses can only sue for defamation based on libel, not slander.

Libel is a written communication, and slander is an oral communication.

Which of the following is not required to create a partnership? A. A written agreement between the parties. B. Two or more persons C. An understanding to share profits and losses D. A common interest and intent to conduct business activities together.

A. A written agreement between the two parties

Persons who contract with the owner to furnish labor or material or construct a building are known as _________. A. Contractors. B. Subcontractors. C. Authorized agents. D. Mortgagees.

A. Contractors

What kind of business organization is subject to the most regulation at the state and federal level? A. Corporation B. Partnership C. Limited Partnership D. Professional Association

A. Corporation

Which of the following is recognized as a disadvantage to doing business as an LLC? A. Existing court decisions addressing LLC issues and formation are relatively undeveloped, which may lead to legal uncertainty when making business decisions B. Individual members of the LLC can never bind the LLC in a valid and enforceable contract. C. Compared to other business entities, the LLC is taxed more heavily by the IRS. D. An LLC requires the participation of several owners, which can sometimes complicate day-to-day business decisions.

A. Existing court decisions addressing LLC issues and formation are relatively undeveloped, which may lead to legal uncertainty when making business decisions

A __________ is a party whose promise is not limited to a single transaction or to a single creditor. a. General guarantor. b. Special guarantor. c. Creditor. d. Obligee.

A. general guarantor

A ________ provides security for a creditor without involving an interest in the property, where the security for the creditor is provided by a third person's promise to be responsible for the debtor's obligation. A. Suretyship. B. Artisan's lien. C. Mechanic's lien. D. Foreclosure sale.

A. suretyship

Which of the following statements about administrative crimes is false?

Administrative crimes cannot be punished by imprisonment.

Components of Codes of Ethics often include ____ . Obey the law Be honest and open Treat people with respect All of the above

All of the above

Exceptions to the employment at will doctrine have been created by which of the following? - state statutes - federal statutes - state courts - all of the above

All of the above:

In which pleading would a defendant make a claim of self-defense?

An answer

Which of the following workers is covered by the Fair Labor Standards Act's wage and hour requirements? - A child actor while making a movie - The CEO of Ford Motor Company - An assembly line worker in a Ford Motor Company plant - The sales representative of a pharmaceutical company whose territory covers three states

An assembly line worker in a Ford Motor Company plant

Which of the following is eligible to file for bankruptcy under Chapter 7? An insurance company An individual A railroad A saving and loan association

An individual

A person who is given power of attorney is called an ___ - attorney at law - attorney in fact - factor - general agent

Attorney in fact

What is the limit of shareholders in subchapter S corporations? A. 10 B. 35 C. 100 D. There is no limit

B. 35

The combination of two corporations that results in the dissolution of both corporations and the emergence of a new corporation is a ___ A. Merger B. Consolidation C. Purchase of assets D. Bulk Transfer

B. Consolidation

An employer who prevents employees from coming to work in an effort to accelerate contract negotiations between management and union leadership engages in a ___ - boycott - job action - lockout - strike

Lockout

A summons may be served on a defendant located in another state if the state in which the trial is to take place has an______________statute

Long arm

A shareholder who cannot attend a shareholder meeting may give another person the right to vote her shares in that election. This temporary grant of authority is a ___ A. Warrant 0% B. Proxy C. Assignment D. Delegation

B. Proxy

Acts of a corporation that goes beyond the powers granted to it by the state of in its charter are ___ acts A. Criminal B. Ultra vires C. Preemptive D. Peremptory

B. Ultra Vires

A ___ is the voluntary relinquishment of the right to a mechanic's lien before a notice of lien is filed a. Satisfaction and accord. b. Waiver. c. Collection proceeding. d. Confessed judgment

B. Waiver

A security interest in personal property in favor of one who has performed services on the personal property is an ________. A. Mechanic's lien. B. Artisan's lien. C. Color of title. D. Security Deposit.

B. artisans lein

A lien for the value of material and labor expended in the construction of buildings and other improvements is a _________. a. Artisan's lien. b. Mechanic's lien. c. Suretyship. d. Right of redemption

B. mechanics lien

Bill is in the business of refinishing furniture. When Bill takes a piece of furniture from a customer for refinishing, he has the legal status of a (n) _________. Obligee Assignee Bailee Donee

Bailee

In a criminal case, the burden of proof on the prosecution is

Beyond a reasonable doubt

Big Corporation (BC) is an American business incorporated in the State of Delaware. Its principal place of business is in New Jersey. Franklin lives in New York. For purposes of diversity of citizenship, Big Corporation is a citizen of

Both Delaware and New Jersey

Which of the following section of the Uniform Commercial Code governs the sale of securities A. Article 2 B. Article 2A C. Article 8 D. Article 9

C. Article 8

A Limited Partnership must have ___ A. At least one limited partner who participates in management decisions. B. An equal ratio of limited partners to general partners. C. At least one general partner. D. Equal capital contributions from both limited and general partners.

C. At least one general partner

A Limited Partnership must have ____________. A. At least one limited partner who participates in management decisions. B. An equal ratio of limited partners to general partners. C. At least one general partner. D. Equal capital contributions from both limited and general partners

C. At least one general partner.

Under the "pass through" principle, a business entity A. Delegates duties of the business to a subcontractor B. Assigns assets of the business to a receiver. C. Avoids double taxation D. Conducts high risk activities through a subsidiary.

C. Avoids double taxation

Rod and Todd have joint and several liability as sureties on a loan made to Rod's business by First Bank. Under this agreement, Todd is a ___ A. General guarantor B. Special guarantor C. Co-surety D. Sub-surety

C. Co-surety

Rod and Todd have joint and several liability as sureties on a loan made to Rod's business by First Bank. Under this agreement, Todd is a _________________. A. General guarantor B. Special guarantor C. Co-surety D. Sub-surety

C. Co-surety

Preferred stock whose unpaid dividends accrue and are paid when earnings are available is ___ preferred stock a. Participating b. Non-participating c. Cumulative d. Convertible

C. Cumulative

What is the equitable rule that 1 distributes assets of an insolvent partnership first to creditors of the partnership and 2 does not let partnership creditors reach the assets of individual partners until the partners' personal creditors are satisfied? A. Equitable distribution B. Comity of assets C. Marshaling of assets D. Partnership partition

C. Marshaling of assets

The doctrine of judicial review was first articulated in

Marbury v. Madison

If a judgement for dollar damages is not paid, the judgement creditor may apply for a ___ A. Garnishment B. Co Surety C. Writ of execution D. Notice of lien

C. Writ of Execution

In determining the rights and duties of the parties to an agency relationship, the courts look to Case law The Uniform Commercial Code The National Labor Relations Act Federal common law

Case law

The jurist who presides in a court of equity is called the _____________.

Chancellor

The jurist who presides over an equitable proceeding is called the

Chancellor

The document that the state issues evidencing that a corporation has been duly formed is the corporation's ___

Charter

Al and Ben were clients of Big Brokerage Firm (BBF). They suffered financial losses because of fraudulent securities dealings by BBF. Many other clients were victims as well, with losses that varied depending on the size of the accounts and the dates of certain trades. Al and Ben filed suit against BBF on their own behalf and on behalf of the other clients who suffered losses. This suit is an example of a (n)_____________________suit

Class action

Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. The difference between the cost of the carpet in the contract with Carl and the cost Bill had to pay the new vendor can be recovered from Carl as _________ damages. Consequential Compensatory Nominal Punitive

Compensatory

Which element of a contract is met by a bargained-for exchange? Consideration Legality Agreement Capacity

Consideration

When an employer creates a work environment so hostile and intolerable that a reasonable employee would quit, the employer has created a condition of ___ - emotional distress - constructive discharge - retaliation - disparate impact discrimination

Constructive discharge

The negligence doctrine that most favors the defendant is... Contributory negligence Negligence per se Comparative negligence Res ipsa loquitur

Contributory negligence

The Fair Credit Billing Act provides a mechanism for consumers to remedy errors received on ___ Credit Card Bills Bank Statements Consumer Savings Accounts Consumer Subprime Accounts

Credit Card Bills

A bond holder is a ___ of the corporation; and a shareholder is a ___ of the corporation

Creditor---Owner

The purpose of the automatic stay is to prevent a. Debtors from hiding personal property. b. Creditors from collecting on debts. c. Creditors from filing involuntary bankruptcy petitions d. Creditors from converting a Chapter 11 into a Chapter 7

Creditors from collecting on debts.

The trend is for more and more states to adopt uniform laws governing

Criminal law

Minority shareholders have the best chance of electing directors in a corporation that uses the ___ method of voting

Cumulative

Which of the following is NOT one of the recognized disadvantages of doing business as a corporation? A. A corporation must comply with a great number of state and federal regulations. B. Corporate profits are subject to double taxation. C. A corporation must qualify to do business in each state in which it engages in business activities. D. A corporation can be in existence for a maximum of 99 years.

D. A corporation can be in existence for a maximum of 99 years

Which of the following decisions would require a unanimous vote of the partners? A. Hiring an accountant to prepare the partnership information return for federal taxes. B. Buying materials from a new supplier. C. Having the parking lot repaved and installing new lights. D. Admitting a new partner into the partnership

D. Admitting a new partner into the partnership

Sharing in net profits is not prima facie evidence that a partnership exists if the profits were paid by the partnership ... A. As rent B. For wages C. As an annuity to the spouse of a deceased partner D. All of the above

D. All of the above

An important factor to consider in the creation of a business organization is: A. Liability B. Control C. Taxation D. All of the above

D. All of the above are important factors to consider

Which of the following statements about a joint venture is true? A. It can be the plaintiff in a lawsuit without involving the individuals who form the joint venture. B. It can be the defendant in a lawsuit without subjecting the individuals who form the joint venture to liability. C. It is limited by statute to thirty-five members. D. Individuals form it to conduct a single, or very limited, business activity.

D. Individuals form it to conduct a single, or very limited, business activity

Which of the following would a represent a breach of fiduciary duty by a general to the limited partners in a limited partnership? A. The general partner takes action to personally profit from the business of the partnership. B. The general partner takes action to minimize the risks and debts that are incurred by the partnership. C. The general partner enters into contracts on behalf of the partnership without first consulting the limited partners. D. The general partner uses certain partnership assets to secure a loan for a business venture that is not undertaken in the name of the partnership.

D. The general partner uses certain partnership assets to secure a loan for a business venture that is not undertaken in the name of the partnership.

Which of the following statements about proprietorships is true? A. Proprietorships are taxable entities apart from the owners. B. A business can have up to thirty-five owners and still be a proprietorship. C. A proprietorship cannot generate more than 10 million in proceeds per tax year. D. The owner of a proprietorship is personally liable for all the debts of the proprietorship.

D. The owner of a proprietorship is personally liable for all the debts of the proprietorship

When considering whether a partner has breached his or her fiduciary duties to the partnership, courts are likely to consider all of the following, except: A. Specific language of the Partnership Agreement. B. Applicable state partnership statutes. C. Prior court decisions. D. The partner's personal net worth.

D. The partner's personal net worth

Wendy Witness testified for the plaintiff in a suit against Dan Defendant in which he was charged with fraud. The jury found for Dan. Dan wants to sue Wendy for defamation because the statements she made about him on the witness stand were found to be untrue. What result? Dan can sue Wendy for defamation, but must prove actual malice. Dan can sue Wendy for libel because the transcript reduced the defamation to writing. Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness. Dan can sue Wendy for slander, but must prove actual damages.

Dan cannot sue Wendy for defamation because she has an absolute privilege as a trial witness.

The Fair Debt Collection Practices Act was enacted by Congress to control the behavior of ___ Creditors Debtors Debt Collectors Politicians

Debt Collectors

The decision issued by a court of equity is called an

Decree

Comments contained in judicial opinions that are not necessary to the decision of the case are called

Dicta

Comments contained in judicial opinions that are not necessary to the decision of the case are called:

Dicta

A principal whose identity is known to a third party is a ___ principal - disclosed - undisclosed - partially disclosed - transparent

Disclosed

Athlete Superstar hired Angie Agent to negotiate a contract for him with a major cereal company. Photos of Athlete Superstar, in various action poses, are to be prominently displayed on every box of GoodForYou cereal for one year. In these circumstances, Athlete Superstar is a (n) ____________ principal. Disclosed Partially undisclosed Undisclosed Special

Disclosed

The only principal who can ratify a contract is a ___ principal A.Disclosed, B.Undisclosed, C.Partially disclosed, D.Both a and c can ratify a contract.

Disclosed

The type of employment discrimination that occurs when employment practices have the effect to disqualify a large portion of a protected class is ___ discrimination - disparate treatment - disparate impact - quid pro quo - malum in se

Disparate impact

The type of employment discrimination that requires a plaintiff to show that the discrimination is intentional is ___ discrimination - disparate treatment - disparate impact - malum in se - malum prohibitum

Disparate treatment

The test of whether the federal government can regulate a business activity under the Commerce Clause is:

Does the activity substantially affect or impact interstate commerce?

Assume that Iowa passes a law requiring that all beverages sold in the state in plastic containers must be bottled in 1 plastic. Assume also that it is the practice in the bottling industry to put beverages in 2 containers. Special bottles will have to be bought for distribution in Iowa and special procedures developed for their handling. If out- of- state bottlers bring suit challenging the constitutionality of Iowa's law, which test will the court apply?

Does the law impose an undue burden on interstate commerce without conferring a substantial benefit on Iowa?

Which of the following statements about the Employee Retirement Income Security Act (ERISA) is true? - ERISA requires that all employers with fifteen or more employees provide an employer pension plan. - ERISA requires that all employers with fifteen or more employees provide a health care plan. - ERISA sets standards for employer sponsored pension plans and requires periodic and detailed disclosures about the pension's funding and inv - A and C only

ERISA sets standards for employer sponsored pension plans and requires periodic and detailed disclosures about the pension's funding and inv

Money awarded to an accident victim to make up for lost wages would be classified as ______________damages. Non-economic Economic Nominal Punitive

Economic

Sam, a sales clerk in a local store, falsified return receipts and pocketed the cash. Because he was acting in a fiduciary capacity (that is, acting for another in a position of trust and confidence) he committed the crime of _____________________.

Embezzlement

Assume that Connecticut took 600 acres of private property to build an overpass over a major state road. This is an exercise of the state's power of _________.

Eminent domain

Huge public construction projects, such as the building of the Hoover and Norris dams, required that the government take land belonging to individuals and businesses, whether the owners wanted to sell or not. This power of the government to take personal property for the good of the public is__________________.

Eminent domain

Which of the following statements about employer-funded pensions and health benefit plans is true? - Employers are required by federal law to provide health insurance for their employees. - Employers are required by federal law to provide pension plans for their employees. - Employer pension plans are subject to numerous federal reporting and disclosure laws. - Both A and B

Employer pension plans are subject to numerous federal reporting and disclosure laws

What is the legal doctrine that allows an employee to quit at any time for any reason and an employer to fire an employee at any time for any reason? - freedom of contract - free market economics - employment at will - caveat emptor

Employment at will

The common law system in the United States has its roots in

England

An act of Congress that forbids creditors from discriminating against potential debtors on the basis of selected attributes is the ___ Equal Credit Opportunity Act Credit Civil Rights Act Credit Discrimination Act Collective Borrowing Act

Equal Credit Opportunity Act

What is the agency, created by Congress, to administer the provisions of Title VII that deals with discrimination in the workplace? - National Labor Relations Board - President's Commission on Workplace Opportunity - Equal Employment Opportunity Commission - Employment and Labor Relations Commission

Equal Employment Opportunity Commission

What is the federal statute that prohibits employers from paying employees of one gender less than employees of another gender for doing substantially equal work? - Bona Fide Qualifications Act - Lanham Act - Equal Pay Act - Gender Equity Act

Equal Pay Act

The primary source of law used to decide cases in courts of equity is

Equitable Maxims

The record date on which a dividend is payable is the ___ date

Ex dividend

Another term for punitive damages is ___________damages. Exculpatory Inculpatory Exemplary Criminal

Exemplary

Compensatory damages would include all of the following except? Lost wages Property damages Exemplary damages Pain and suffering

Exemplary damages

Trader, a business located in Rutland, Vermont, is shipping goods from the Port of Boston to a customer in Oslo, Norway. The contract calls for Trader to deliver the goods and have them safely loaded on the ship, Lodestar. Trader's liability ends when the goods are on the ship. The contract will read? F.A.S.Lodestar, Boston F.A.S.Rutland, Vermont F.O.B.Lodestar, Boston F.O.B.Oslo, Norway

F.O.B.Lodestar, Boston

The federal legislation that prohibits banks from taking money from a customer's checking or savings account to pay a delinquent credit card account with them is the ___ NCUA Act FDIC Act Fair Credit Billing Act Checks and Deposits Act

Fair Credit Billing Act

An Act of Congress that controls the gathering, preservation and reporting of credit-related information is the ___ a. Truth in Lending Act. b. Equal Protection Act. c. Fair Credit Reporting Act d. Equal Credit Opportunity Act

Fair Credit Reporting Act

$1 is never legally adequate consideration in a contract because no one will willingly incur a legal detriment for $1. True False

False

A bankruptcy trustee does not have the power to invest the assets of the bankruptcy estate

False

A business organized as a proprietorship may have up to, but not more than, 35 owners T/F

False

A buyer who discovers that goods bought C.O.D. are defective has no recourse against the seller for the defective goods. True False

False

A common carrier is an insurer of both the goods and the passengers it transports. True False

False

A consumer's liability for an unauthorized electronic transfer of funds is limited to $150 T or F?

False

A corporation need not turn over its internal records in a criminal proceeding because that would violate the corporation's right not to incriminate itself.

False

A creditor can never be required to give the surety notice that the debtor is in default T/F

False

A landowner traditionally owes the same duty of care to anyone who comes onto his property. True False

False

A member of an LLC can never be personally liable for the debts of the LLC. True/False?

False

A multiple listing agreement lists real property with several brokers, but only the selling broker earns a commission on the sale T or F?

False

A partnership cannot have a provision for the continuation of a partnership upon the death of one of the of the partners T/F

False

A partnership is a taxable entity T/F

False

A plaintiff must have minimum contacts with a state in order to file suit there.

False

A principal always has the right to terminate an agency T or F?

False

A principal may terminate the agency of a disloyal agent only if the principal suffered a financial loss because of the agent's disloyalty T or F?

False

A seller who fills a motor with heavy grease to keep it from knocking is engaged in mere "sales dressing" and is not liable for fraudulent misrepresentation. True False

False

A shareholder's right to dissent from a proposed merger and have his shares purchased by the corporation is the right of preemption T/F

False

A unilateral mistake of value is grounds for rescinding the contract. True False

False

Agency agreements must always be in writing T or F?

False

Alan was convicted in a criminal trial of assaulting Ben. Ben cannot now sue Alan in tort for personal injuries because Alan is protected against double jeopardy. True False

False

All debtors who are eligible to file under Chapter 7 will receive a discharge

False

All legal conduct is ethical? True False

False

An agent whose agency appointment has terminated has implied authority to continue to conduct the principal's business until third parties are notified of the termination.

False

An agent whose agency appointment has terminated has the implied authority to continue to conduct the principal's business until third parties are notified of the termination T or F?

False

An appeals court does not have the power to review the findings of law made by the judge during the trial, only the jury's findings of fact. True False

False

An artisan's lien is a special lien that applies exclusively to the liens artists receive on artwork they personally performed T/F

False

An automobile mechanic who has possession of a car while repairing it is the bailor of the car. True False

False

An employer cannot be held liable under respondeat superior for the negligence of a person who is working under the employer's control and direction, but who is not being paid T or F?

False

An employer is responsible for the torts committed by an employee while the employee is on a frolic, but not for those torts committed while the employee is on a detour

False

An employer may have liability for the negligent hiring of a servant, but not for the negligent hiring of an independent contractor.

False

An illusory promise is consideration for a unilateral contract, but not for a bilateral contract. True False

False

An independent contractor may file a complaint under Title VII if he or she was not hired by a customer because of gender discrimination

False

Any law that treats citizens differently based on race, religion or national origin will be reviewed under intermediate scrutiny. True False

False

Arizona cannot have different standards for admitting in-state and out-of-state residents to the practice of medicine because of the Full Faith and Credit Clause. True False

False

Assume that you hire an independent contractor to transport hazardous chemicals for your company. If he negligently causes damages to a third part while carrying out the job, you will not be liable because of his status as an independent contractor.

False

At the end of the trial, the losing party asks the judge to overturn the jury verdict in a motion for a judgment notwithstanding the evidence.

False

Contracts entered into by alcoholics are void. True False

False

Contracts formed by the conduct of the parties, rather than expressed in words, are implied-in-law contracts. True False

False

Course of dealing refers to the practices of a particular industry and may be used by the courts to interpret contracts. True False

False

Courts will allow creditors to pierce the corporate veil of any corporation that has only one shareholder T/F

False

Crimes such as murder and rape, which are recognized as heinous in all civilizations, are examples of malum prohibitum crimes. True False

False

Critical thinking does not require deliberation in analyzing a problem.

False

Damages that involve only a very small monetary award are called liquidated damages. True False

False

Damages that involve only a very small monetary award are called liquidated damages. True False

False

Debt collection agencies may publish in newspapers and on a special Web site "bad debt" lists with consumers' names and addresses T or F?

False

Debtor's intangible property will not become part of the bankruptcy estate T or F?

False

Directors and shareholders may vote by proxy T/F

False

Directors have no personal liability for illegally declared dividends T/F

False

Directors may vote on matters in which they have a personal interest T/F

False

Directors must be compensated for their services T/F

False

During a violent storm, Nelson saved Reggie's boat from being destroyed. Reggie was so grateful that he promised to give Nelson $100. Reggie's promise is unenforceable because it is based on moral obligation. True False

False

ERISA requires that all employers provide both health insurance and pension plans to their employee

False

ERISA requires that all employers with more than fifteen employees provide health insurance for the employees

False

Employees who are covered by the Fair Labor Standards Act must receive double their hourly salary for each hour of overtime they work

False

Ethical conduct never brings about new laws. True False

False

Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to review the merits of the award. True False

False

Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to review the sufficiency of the evidence. True False

False

Gaggle, Inc., and Chirp Chirp, Inc., have their dispute resolved in arbitration. The arbitrator makes an erroneous finding of fact. This is a ground for a court to set aside the award. True False

False

Giving up a legal right is adequate consideration for a contract governed by the Uniform Commercial Code, but not for contracts under common law. True False

False

Grand juries are used in both criminal and civil proceedings.

False

If a bankruptcy trustee assigns a contract to a third party and the third party later breaches the contract, the trustee will be liable for the contract

False

If a consumer places his or her name on the "Do Not Call Registry," telemarketers may only contact that individual during ordinary business hours.

False

If a consumer places his or her name on the "Do Not Call Registry," telemarketers may only contact the individual during ordinary business hours

False

If a contract is silent about payment, payment is due when the goods are identified to the contract. True False

False

If a minor ratifies a contract before the age of majority, he gives up the right to avoid the contract. True False

False

If a person claimed that a law was denying him employment opportunities based on gender, the Court would review the law under the rational basis test. True False

False

If a unilateral mistake of fact is apparent to one party, he or she may take advantage of that knowledge and profit from the other party's ignorance. True False

False

If both parties to a contract are uncertain or consciously ignorant of facts about the item to be sold, either party can rescind the contract based on a mutual mistake of fact. True False

False

If goods are sold subject to a bill of lading, title to the goods passes when the goods are in the hands of the buyer. True False

False

If one obeys the law, one is not necessarily acting ethically because ethical standards of conduct and legal standards of conduct are identical. True False

False

If there is a clerical error in a contract, a court will order the equitable remedy of quantum meruit to correct the error. True False

False

If you form an LLC you are required to have a written operating agreement T/F

False

If you form an LLC you are required to have a written operating agreement. True/False?

False

Ignorance of the law is one of the traditional defenses to criminal liability. True False

False

In a Limited Liability Company, the unanimous consent of the members is required to hire a new employee. True/False?

False

In a bilateral contract, each party must gain a legal benefit, but only one party need incur a legal detriment. True False

False

In a limited partnership, a general partner's fiduciary duty is breached when limited partners are not permitted to participate in management. True/False?

False

In a majority of states, a minor can disaffirm a contract only by returning all the property originally purchased. True False

False

In a manager-managed LLC, only the manager-members have access to the LLCs books T/F

False

In a partnership for a term of years, each partner has both the power and the right to withdraw from the partnership at any time T/F

False

In a product liability case, defendant manufacturer can use as a defense the plaintiff's failure to discover the defect in the product. True False

False

In a typical Chapter 13 bankruptcy, one half of the debtors take home pay is allocated to repay debts T or F?

False

In contracts negotiated by an agent acting within the scope of his authority for a disclosed principal, the agent, the principal and the third party are equally liable on the contract.

False

In contracts negotiated by an agent who is acting within the scope of his authority for a disclosed principal, the agent, the principal, and the third party are equally liable on the contract T or F?

False

In contributory fault states, if the plaintiff was responsible for 20 percent of his own injuries, he will still be able to collect the other 80 percent from the negligent defendant. True False

False

In most states, the test of mental competence for entering into a contract is the same as the test for making a valid will. True False

False

Individual members of the LLC can never bind the LLC in a valid and enforceable contract. True/False?

False

Interlocutory decrees are issued by courts of law with limited jurisdiction. True False

False

It is a violation of the separation of powers doctrine for State A to adopt a law identical to one adopted by State B. True False

False

It is the duty of an agent to notify third parties when his agency is terminated.

False

It is the exclusive right of the House of Representatives to approve treaties made by the President.

False

It is the function of a grand jury to determine the guilt or innocence of a defendant in a capital case. True False

False

It is unconstitutional to conduct a trial with a jury of fewer than 12 jurors. True False

False

Jury instructions are entirely within the discretion of the judge; attorneys for the plaintiff and the defendant have no input into the instructions that are given the jury.

False

Knowledge of the law allows one to identify legal risks and completely eliminate liability flowing from those risks. True False

False

LLC combine the limited liability of the partnership and the tax advantages of corporations T/F

False

LLC combine the limited liability of the partnership and the tax advantages of corporations. True/False?

False

Lack of capacity and discharge in bankruptcy are two common defenses that are available to a surety that may be asserted against a creditor T/F

False

Legal actions to collect back child support and alimony are among those subject to the automatic stay

False

Legal reasoning has as its goal persuasion without critical analysis of legal questions.

False

Legal reasoning limits one's ability to see more than one side of a question. True False

False

Legally speaking, there is no significant distinction between puffery and deceptive advertising T or F?

False

Limited partnerships must have one general partner for every seven limited partners T/F

False

Lost profits cannot be used in calculating damages because profits are always uncertain and speculative. True False

False

Minority shareholders have the best chance of electing someone to the board of directors under the straight method of voting T/F

False

Most courts allow plaintiffs to use strict liability to collect damages for economic loss in product liability suits. True False

False

Most of the powers of the federal government enumerated in the Constitution are powers shared with the states. True False

False

Nominal consideration is another term for sham consideration. True False

False

Officers of corporations have unlimited actual authority to sell the real property and intangible assets of the corporation T or F?

False

Once a debtor files a Chapter 7 petition, the debtor cannot request that the case be converted to a Chapter 11 or Chapter 13 proceeding T or F?

False

One defense to the crime of theft is return of the stolen goods.

False

One of the disadvantages of a Limited Liability Partnership is double taxation T/F

False

Only the United States Supreme Court can issue an interlocutory decree.

False

Only the plaintiff may ask the court for a summary judgment. True False

False

Quantum meruit refers to the compensation owed a party under an express contract. True False

False

Quasi-contract is another term for an implied-in-fact contract. True False

False

Receivers have liability on the pre-incorporation contracts of the corporation T/F

False

Sham consideration is sufficient for a unilateral contract, but not for a bilateral contract. True False

False

Shareholders are taxed on the value of the stock they receive in the stock dividend T/F

False

Shareholders have virtually unrestricted access to corporate books and records T/F

False

Sid's Sub Shop hired Ted to manage the shop from January 1, 2007 to December 31, 2007. This is an employment at will contract T or F?

False

Since it is up to the parties to determine the dollar amount in a liquidated damages clause, courts will enforce any amount called for in the contract. True False

False

Stare decisis, the doctrine giving rise to the importance of precedent, is not an example of analogical reasoning.

False

State laws regulating the sale of securities within the state are called red herring laws T/F

False

State statutes control whenever they conflict with federal statutes. True False

False

Stock that is issued and then repurchased by a corporation is watered stock T/F

False

Strict liability is also called "absolute liability" because there are no defenses that a defendant can raise. True False

False

Sue failed to file an answer or respond in any way to a complaint and summons. The court will enter a motion to dismiss against her. True False

False

Tender of delivery occurs when the buyer takes physical possession of the goods. True False

False

The American's With Disabilities Act only protects employees who can perform essential work functions despite their disabilities; the Act does not require employers to take affirmative measures to accommodate employees

False

The Electronic Funds Transfer Act established a national fraud alert system to help consumers whose identities had been stolen

False

The Family and Medical Leave Act guarantees that an employee will be paid one-half his or her salary for up to six months of leave, so long as the leave was for "serious health condition"

False

The Statue of Limitations does not apply to surety contracts T/F

False

The Statute of Limitations does not apply to surety contracts. True/False?

False

The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration. True False

False

The articles of incorporation are drawn up at the first organizational meeting of the corporation T/F

False

The balancing test for an issue reviewed under strict scrutiny is: "Is the law rationally related to a legitimate government interest?"

False

The bankruptcy judge is the person who handles the assets and obligations of the debtor during the bankruptcy proceeding T or F?

False

The crime of larceny consists in the theft of property by force or threat of force. True False

False

The debts of partnerships, limited liability companies, and corporations that go through liquidation proceedings are usually discharged

False

The difference between assault and a battery is that assault results in in more bodily harm. True False

False

The doctrine of res ipsa loquitur applies when a person causes damages while violating a law or ordinance. True False

False

The equitable equivalent of a default judgment is a nolo contendere decree.

False

The equitable equivalent of a default judgment is a nolo contendere decree. True False

False

The function of the grand jury is to decide the guilt or innocence of a criminal defendant. True False

False

The general contractor is eligible for a mechanic's lien on the real property, but the subcontractors on the project are not T/F

False

The government's right to seize private property for public use extends only to real property and not to personal property. True False

False

The innocent party in a contract breach must choose between collecting punitive damages or compensatory damages because a court cannot grant both. True False

False

The party who loses at trial and brings an appeal is called the appellee. True False

False

Title VII does not apply to sole proprietorships, regardless of the number of people a business employs

False

To prove disparate impact discrimination in employment, plaintiffs must show, in their prima facie case, that the selection rate for minorities is less than 50 percent of the selection rate for non-minorities

False

To prove disparate impact discrimination, a plaintiff must show that the practices complained were "designed and intended" to disadvantage him or her

False

Today, scholars argue the role of the corporation is to maximize the return on investment of shareholders. True False

False

Under modern contract law, a contract must be executed under seal to be enforceable. True False

False

Under the Equal Credit Opportunity Act, a creditor is permitted to ask whether an applicant is married when considering the applicants creditworthines T or F?

False

Under the National Labor Relations Act employers must re-hire workers who went on strike for higher wages or increased benefits

False

Under traditional rules of privity, a customer who bought a product that was defectively manufactured could sue either the merchant who sold the product or the manufacturer who created the defect. True False

False

Undisclosed principal's have no liability to third parties for contracts negotiated by their agents T or F?

False

Undisclosed principals have no liability to third parties for contracts negotiated by their agents T or F?

False

Union shops are illegal under the Taft-Hartley Act

False

What constitutes a hostile work environment is a matter of law and does not vary from workplace to workplace

False

When the Supreme Court agrees to hear a case it issues a writ of execution. True False

False

When the U.S. Supreme Court agrees to hear a case it issues a writ of attainder. True False

False

Whether or not a principal has ratified a contract is a question of law to be decided by the judge at trial.

False

Workers Compensation Insurance is a comprehensive program that covers all job related injuries, including those that were intentionally inflicted

False

When a business detains a suspected shoplifter it must be careful not to commit the tort of? False imprisonment Nuisance Disparagement Invasion of privacy

False Imprisonment

In some states, a parent-owner is liable for any damages caused by a family member operating the vehicle. This is the ___ doctrine - durham - family car - in loco parentis - family negligence

Family car

Fat Frank's Pies falsified federally mandated tests on his "all natural no calorie" "Fat Pies" to introduce a new type of weight-loss pie. Which of the following is true with respect to his actions:

Fat Frank behaved unethically Fat Frank can potentially face criminal liability for his actions. Fat Frank can be sued in tort in civil court.

If Federal District Court in Arizona hears a case challenging the constitutionality of the No Child Left Behind Act, which is a federal statute, the court will use __________ procedural law and _________ substantive law to conduct the trial.

Federal---------federal

American government is based on the concept of ____________, which allocates the power to govern between a sovereign federal authority and the sovereign states.

Federalism

The American political system, which divides the power of government between sovereign states and a sovereign federal government, is an example of___________.

Federalism

Customer ordered fried chicken strips at the drive-in window of Famous Burger. One of the "strips" turned out to be an entire chicken head, battered and deep fried. Famous Burger tested the head and found that it was, indeed, cooked in their batter and in their oil. Pictures of Customer with the fried head showed up in newspapers and on the Internet. Famous Burger offered Customer a cash settlement in exchange for Customer's promises not divulge the amount of the settlement, sue Famous Burger over the incident, or ever speak of it in public again. Agreeing not to exercise these three rights in exchange for the settlement is an example of ____________________. An accord and satisfaction Renunciation Forbearance Restitution

Forbearance

Plaintiff sued a National Football League team, alleging that she had been sexually assaulted by several team members in a hotel room after a game. Team offered the plaintiff a cash settlement in exchange for two promises: (1) plaintiff would never discuss publically the suit or the terms of the settlement; and (2) plaintiff would never again sue the team or the individual players on any claim connected with the incident. Agreeing not to exercise these legal rights constitutes ___________________. Accord and satisfaction Forbearance Revocation Contract modification

Forbearance

What are state "right to work" laws designed to do? - Allow workers to opt out of overtime pay protections - Allow workers to sue for invasion of privacy when their employers monitor their private electronic communications - Forbid employers from requiring alcohol and drug testing as a condition of employment - Forbid employers from requiring that workers be members of a union as a condition of employment

Forbid employers from requiring that workers be members of a union as a condition of employment

Under federal bankruptcy law, a ___ is a transfer within two years of the filing of the petition, with the intent to hinder, delay or defraud creditors Usurious lending practice. Fraudulent conveyance. Negligent misrepresentation. Fraud in the inducement.

Fraudulent conveyance

Punitive damages are available for which of the following? Unilateral mistake of fact Innocent misrepresentation Bilateral mistake of fact Fraudulent misrepresentation

Fraudulent misrepresentation

A master will not be liable for the torts committed by a servant if the servant was on a ___ when the tort was committed Lark, Errand, Frolic, Detour

Frolic

State X must enforce the judgment from a court in State Y because of the _________Clause.

Full Faith and Credit

The provision in the Constitution that requires that the courts in each state recognize the validity of contracts and court decisions from other states is the _________Clause.

Full Faith and Credit

The Equal Pay Act prohibits discrimination in pay scales and compensation based on ___ - gender - color - race - national origin

Gender

Willful and wanton misconduct or conscious disregard for the safety of others constitutes ________________negligence. Ordinary Slight Gross Per se

Gross

Courts often use transcripts of the legislative hearings and debates that preceded a law's passage to determine the purpose and reach of a law. This background is called a law's legislative ______ .

History

The merger of two corporations that results in the surviving corporation expanding its products or markets is a ___ merger

Market Extansion

For which of the following purchases would a minor be liable to the seller for the fair value of the goods? (select all answer options that are correct) Car An iPod Medicine Insurance

Medicine

In an adjustment of debts under Chapter 13, the rights of ___ may not be modified Secured creditors Unsecured creditors Mortgagees Judicial lien holders

Mortgagees

Which of the following is NOT a motion that takes place before the trial begins?

Motion for a directed verdict

An important initial step in the legal reasoning process is ____ .

Identifying the general area of the law at issue

For misdemeanors, the government brings charges against the accused in a (n)__________.

Information

Sue, who was the executor of her uncle's estate, sold Ann a riding mower that had belonged to her uncle. Sue told Ann that she thought the mower was about 3 years old. When getting parts for the mower, Ann learned that the mower was in fact 7 years old. Ann can rescind the contract based on? Undue influence Innocent misrepresentation Fraudulent misrepresentation Duress

Innocent misrepresentation

Prof. Johnson is a law professor who teaches the existence of a higher authority than the state binding human behavior. She is an adherent of the ____ school of jurisprudence.

Natural Law

____is the theory of jurisprudence which believes there are higher legal and moral authorities than the State and laws should reflect them.

Natural Law

Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. Express liability Negligence Fraud Strict intentional liability Battery

Negligence

Assume that Sussex County has a law requiring that all passenger elevators be inspected every six months. Local Hospital failed to have its passenger elevator inspected when required, and a door that malfunctioned injured a hospital visitor. Visitor's attorney will use the doctrine of ________________to show that Local Hospital breached a duty of care. Contributory negligence Negligence per se Res ipsa loquitur Malpractice

Negligence per se

The final vote in which workers decide whether or not to unionize must be conducted without undue influence from either union or management. The term for these voting conditions is ___ conditions - neutral - equitable - aboratory - transparent

Neutral

Fred, in desperate need of quick money, sold his new Key West boat for less than market value to a good faith purchaser. Does Fred have any basis for rescinding the contract? Yes, bilateral mistake of value No, this was a valid bargained for exchange Yes, undue influence Yes, economic duress

No, this was a valid bargained for exchange

The award of a very small amount of money, such as 1, acknowledges that a wrong has been done, even though there were no monetary losses. This award represents what type of damages? Nominal Liquidated Punitive Special

Nominal

Which of the following statements about nominal consideration is correct? (select all answer options that are correct) Nominal consideration is another term for sham consideration. Nominal consideration will support an enforceable contract. Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration. Nominal consideration is any small amount paid over and above the contract price for document preparation

Nominal consideration will support an enforceable contract. Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration.

Preferred stock that is entitled to receive only the stated preferred dividend and no other is ___ preferred stock

Non-participating

Which of the following is/are not an element of promissory estoppel? (select all answer options that are correct) 1.There must be an underlying enforceable bilateral contract. 2.The promissor must foresee that the promissee would rely on the promise. 3.The promisee suffered damages as a result of reasonably relying on the promise 4.The promissee did in fact reasonably rely on the promise.

None (I don't think)

FTC regulations provide that for mail-order sales, if the merchant cannot meet the stated date of shipping, the customer must be ___ a. refunded b. discounted c. notified d. compensated

Notified

Sam's neighbor has opened a shooting range on his property. This is an entirely legal enterprise, but Sam hears guns shots 10 hours a day, cannot hear his television or talk on the phone. What tort, if any, is neighbor committing? Nuisance Invasion of property Trespass Neighbor is committing no tort conducting a legal enterprise.

Nuisance

Dominant shareholders in closely held corporations who exploit their control of the corporation to benefit themselves at the expense of minority shareholders are guilty of ___

Oppressive conduct

An ___ is entered by the bankruptcy judge when he or she finds that the debtor is entitled to the protection of the bankruptcy law Order of default Notice of removal Order of relief Judgment

Order of relief

Apparent authority is also known as _____________ authority. Ostensible Incidental Express Constructive

Ostensible

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. This is an example of a n ___________contract. Output Requirements Unilateral Implied in law

Output

National Chip Company has contracts with numerous farmers in which it agrees to buy all the potatoes the farmers harvest and the farmers agree to sell their potatoes only to National Chip Company. The contracts between the farmers and National Chip Company are ________________contracts. Requirements Output Option Farm subsidy

Output

The famous American case that established that a defendant can be liable in negligence only for those damages that are foreseeable is? Roe v Wade Marbury v. Madison Plessey v Fergerson Palsgraph v Long Island Railroad Co.

Palsgraph v Long Island Railroad Co.

Shares that are issued with a face value are ___

Par value shares

When a third party knows that an agent is acting on behalf of a principal, but does not know the identity of the principal, the principal is ___ Disclosed Undisclosed Partially disclosed Transparent

Partially disclosed

The business entity that consists in an association of two or more persons to carry on as co-owners a business for profit is an ___

Partnership

When partners enter into a partnership without stating how long the partnership will last, they have formed a ___

Partnership at will

What is the provision of the tax rule that makes income taxable only for the individuals who receive it, and not for the business entity that produces it?

Pass through

Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother's behalf, she owes him a. Only the duty of loyalty. b. Only the duties of loyalty and information. c. Only the duties of loyalty, information and the duty to account d. Peg owes Jim all the duties of an agent to a principal.

Peg Owes Jim all the duties of an agent to a principal

Under Chapter 11, the debtor may file a ___ in an attempt to extricate the business from its financial difficulties and help it to survive Plan of reorganization. Contingency Plan Notice of default Operating Agreement

Plan of reorganization

Sen. Harris, addressing Senators on the subject of protests against surveillance laws, insists these laws be obeyed as written. Sen. Harris is a ____ school adherent.

Positive Law

Much of federal legislation addressing labeling and packaging addresses products that are ___ a. luxury goods b. potentially dangerous c. illegal d.imported from other countries

Potentially dangerous

Pat agreed to purchase 250 shares of Pamco Company five months before the corporation came into existence. This agreement is a ___

Pre-incorporation subscription

A ___ exists where an insolvent debtor pays some creditors a greater percentage of the debts than the creditors in the same class - Priority - Voluntary dissolution - Preference - Malicious prosecution

Preference

In a bankruptcy proceeding, creditors' claims are subject to payment according to the ___ established by the bankruptcy law Discretion Size or amount of the debt Priority Greatest need for payment

Priority

To expand its income tax base, State X passed a law restricting employment in the construction and service industries in State X to citizens of the state. Cindy, a citizen of state Y, wants to challenge the constitutionality of this law. Her best argument is that the law violates the ______________Clause.

Privileges and Immunities

In early product liability cases, a consumer who was injured by a defectively manufactured product could only sue the retailer who sold her the product. The retailer would then sue the distributor, who would sue the manufacturer. This doctrine that makes the immediate seller the only defendant is called_______________. The McNabb rule Warranty restriction Sellers liability Privity

Privity

A state statute requiring that medical malpractice suits be initiated within 3 years of the injury is an example of a(n) ______ law.

Procedural

Which of the following statements about procedural due process is false?

Procedural due process applies only to the taking of private property, not to the curtailment of privileges or benefits.

Rules of the court room are classified as

Procedural law

Allison, who raises horses, promised to give her friend Gil a pony for his daughter. She advised Gil that he would need to enclose a section of his property and recommended a specific type of fencing. Gil bought the recommended materials and had the fence built on his property. Allison now refuses to give Gil the pony. Allison will be liable to Gil for the cost of fencing his property based on the theory of? Contract modification Restitution Promissory estoppel Contract rescission

Promissory estoppel

Promotional statements made by a business about a product or service that are not intended to be taken literally are known as ________. a. Guaranties. b. Material misrepresentations. c. Puffery. d. Deceptive advertising.

Puffery

Which of the following statements about minority racial preference plans under Title VII is false? - Racial preference plans are, without exception, forbidden under Title VII. - Racial preferences can be used for a limited period of time. - Racial preferences can be used to open employment opportunities in traditionally segregated jobs. - Racial preference plans must preserve some protections for white employees.

Racial preference plans are, without exception, forbidden under Title VII

When a principal decides to adopt and be bound on a contract that his agent did NOT have the authority to form, the principal ___ the contract - indemnifies - reforms - ratifies - restores

Ratifies

Which of the following standards of review will a court use to decide the constitutionality of a municipal ordinance that allows push carts selling non-food items to operate on city streets, but not push carts selling food?

Rational basis test

Profit-maximization theory holds ____.

Rational self-interest can lead to economic prosperity

Beth agreed to buy Sam's home for 400,000. After both parties had signed the contract, which was prepared by the real estate agent, it was discovered that the property was listed on the contract as 1200 Elm Street instead of 200 Elm Street, the actual house number. The remedy courts use to correct mistakes like this in contracts is? Rescission Restitution Respondeat superior Reformation

Reformation

Which of the following is NOT a way of getting into Federal District Court?

Requesting a de novo review of a state trial court's decision

If a claim of quid pro quo harassment is proved, the employer is liable based on which theory? - Negligence - Respondeat superior - The complicity rule - The duty to indemnify

Respondeat superior

When an employer punishes an employee for reporting illegal employment practices to the EEOC, the employer engages in ___ - retribution - retaliation - quid pro quo discrimination - disparate impact discrimination

Retaliation

One purpose of the Consumer Product Safety Act is to establish ___ for consumer products Safety standards. Judicial precedent. Recommendations. New ideas.

Safety standards

Debbie, who owns an art gallery, lets regular customers take home prints and large works of art so they can "think about them" before buying. A customer who wants the print sends Debbie a check for the selling price. A customer who decides not to buy the work has 15 days to return it to Debbie. This arrangement is classified as an ____________. Consignment Installment sales contract Sale or return Sale on approval

Sale on approval

Phil saw an oriental rug in CarpetStore that he thought might look good in his foyer. CarpetStore let Phil take the rug home to try. If he liked the rug, he would send CarpetStore a check for the purchase price. If he didn't like the rug, he would return it to the store. This arrangement is classified under the Code as a (n) _________________. Consignment sale Contingent sale Sale or return Sale on approval

Sale on approval

Under the Code, a consignment is treated like a? Sale or return Lease Installment sales contract. Sale on approval

Sale or return

Beth and Nan are college students who share an off-campus apartment. The rent is $800 a month, which they agree to share equally. The lease is in Beth's name. Nan has not paid her half for the past two months and to about to graduate. Beth's best option to get the money Nan owes her is to sue Nan in

Small claims court

A joint case is a voluntary bankruptcy case filed by ___ Spouses Partners in a partnership Members of an LLC All of the above

Spouses

The Garcia family hired Home Improvements, Inc., a local construction company, to put an addition on their home. What type of law governs the contract between the Garcia's and Home Improvement? Federal common law State common law The Uniform Commercial Code The Sarbanes-Oxley Act

State common law

The primacy source of law governing the relationship between the principal and the agent is The Uniform Commercial Code Federal statutes Federal common law State common law case law

State common law case law

A federal law requires that employers with 15 or more employees take steps to "reasonably accommodate" the religious needs and practices of their employees. A law, such as this one, that gives rights and imposes duties is an example of an ______ law

Substantive

Judge Roe rendered a verdict for the defendant before trial. It was a suit for breach of contract, and the judge used the complaint and answer, the contract, and sworn affidavits to determine that there were no facts in dispute to put before a jury. For which of the following did Judge Roe grant a motion?

Summary judgment

Which agency has broad powers to conduct research on the safety of consumer products, set safety standards for products, and recall products that are unsafe? A. The National Transportation and Safety Commission B. The Federal Trade Commission C. The Interstate Commerce Commission D. The Consumer Product Safety Commission

The Consumer Product Safety Commission

Which federal statute requires that employers provide safe working conditions for their employees? - The Landrum-Griffin Act - The Taft-Hartley Act - The Corporate Insurance Compensation Act - The Occupational Safety and Health Act

The Occupational Safety and Health Act

In an accord and satisfaction, the accord is The liquidated portion of a debt. The substitute agreement The performance of the action called for in the substitute agreement. The old agreement

The Substitute Agreement

The power of the courts to declare legislation invalid because it violates the Constitution is the power of Judicial review. This power of the courts originated in

The Supreme Court decision in Marbury v. Madison

The Constitutional basis for the right of privacy is

The Supreme Court's finding that the right of privacy, although not expressly stated, is inherent in a number of Amendments.

When it is unclear whether a piece of federal legislation intends to preclude all state regulation of the same activity, it is the responsibility of ___________ to determine Congress's intent.

The courts

The ex-dividend date is

The date on which a dividend is payable

Which of the following statements about a discharge under Chapter 7 is false? The discharge is available to corporations and partnerships. The discharge covers all the scheduled debts that arose before the order of relief. The discharge operates as an injunction against creditors trying to collect on a debt. The discharge requires that most of the debtor's assets be used to pay the debts.

The discharge is available to corporations and partnerships

If goods are being sold under a negotiable document of title, such as a bill of lading, risk of loss passes to the buyer when? The document is tendered to the buyer The buyer takes possession of the goods The goods are tendered to the buyer The buyer pays for the goods.

The document is tendered to the buyer

Which of the following describes the duty of a landowner to a trespasser under the common law? The duty to warn of obvious dangers The duty not to entrap the trespasser on the premises The duty to make certain that the premises are absolutely safe The duty to warn of hidden dangers

The duty not to entrap the trespasser on the premises.

Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to draw up a sales contract that protects both Sam's interests as the seller and Ed's interests as the buyer. If Larry agrees to this dual agency, which duty would be most risk violating? - the duty of loyalty - the duty not to be negligent - the duty to account - dual agencies pose no particular problems in carrying out agency duties

The duty of loyalty

The major distinction between a servant and an independent contractor is that

The employer has the right to tell a servant how to do the job, while an independent contractor has exclusive control over the manner in which the job is done.

The term F.A.S. in a contract indicates that? The buyer paid the cost of insuring the goods. The goods are being shipped by a merchant vessel The seller is a merchant The buyer is a merchant

The goods are being shipped by a merchant vessel.

Which of the following statements about criminal intent is false?

The intent to commit a crime is the same thing as the motive for committing a crime.

Which of the following statements about a minor's purchase of necessaries is false? The minor may not disaffirm the contract. The minor is liable in quasi contract to the seller. The minor must pay the contract price of the goods or services. The minor must pay the reasonable value of the goods or services.

The minor must pay the contract price of the goods or services.

In an accord and satisfaction, the satisfaction is? The performance of the action called for in the original agreement. The liquidated portion of a debt. The performance of the action called for in the substitute agreement. The payment of accrued interest.

The performance of the action called for in the substitute agreement.

Whether a suit is filed "at law" or "in equity" depends on which of the following?

The remedy the plaintiff is seeking

Under the Code, goods are "tendered" when? Both a and b are necessary for tender of delivery. The buyer pays for the goods The seller makes the goods available to the buyer and gives him notice that they are available. The buyer takes physical possession of them

The seller makes the goods available to the buyer and gives him notice that they are available.

What is the minimum amount of damages a plaintiff must allege to get into Federal District Court based on a federal question? 20 75000 100000 There is no jurisdictional amount when the issue is a federal question.

There is no jurisdictional amount when the issue is a federal question.

A person who breaches a duty that is neither a contractual duty nor a crime commits a ___

Tort

A person who breaches a duty that is neither a contractual duty nor a crime commits a ____________ Tort Misdemeanor Malum in se Malum prohibitum

Tort

The societal belief that "people who injure other persons or their property should compensate them for their loss" is the basis of

Tort law

A partnership whose primary business purpose is the buying and selling of goods is a ___ partnership

Trading

A partner in a trading partnership has the implied power to make warranties on goods sold by the partnership T/F

True

A transfer of property may be fraudulent under either federal or state law

True

A trustee may not assume an executory contract in a bankruptcy preceding that requires the other party to make a loan, deliver equipment or issue a security to the debtor.

True

A trustee may not assume an executory contract in bankruptcy preceding that requires the other party to make a loan, deliver equipment or issue a security to the debtor

True

An agent who is wrongfully terminated may sue the principal for damages T or F?

True

An agent who represents both the buyer and the seller in the purchase of a business is acting as a dual agent T or F?

True

An agent will not be indemnified for injuries caused to third parties if the agent's negligence caused the injury T or F?

True

An agent's knowledge is imputed to the principal T or F?

True

An attorney is not allowed to ask his own witnesses leading questions.

True

An employee cannot be terminated under an employment at will contract for refusing to commit an illegal act T or F?

True

An employee must first file a complaint with the EEOC and get a "right to sue" letter before pursuing a private right of action against his employer for Title VII violations

True

An employer is liable when quid pro quo sexual harassment results in the termination or demotion of an employee T or F?

True

An equitable remedy does not involve monetary damages.

True

An individual's best argument may be fashioned by the application of legal reasoning. True False

True

An intentional misrepresentation of law by a seller who is not a lawyer will be grounds for rescinding the contract. True False

True

Analogical reasoning is different from deductive reasoning. True False

True

Anne bought an antique bracelet from a jeweler. Unfortunately, the bracelet was not part of the jeweler's inventory, but had had been brought in for repairs. Nonetheless, Anne has good title to the goods. True False

True

C.I.F. in a sales contract indicates that the price includes the cost of the goods, insurance and shipping charges. Group of answer choicesTrueFalse

True

Congress has enacted legislation designed to prevent debt collectors from acting in an unconscionable fashion when attempting to collect a debt.

True

Consumers have the right to dispute information that is contained in their credit reports

True

Contractors have a longer period in which to file mechanic's liens that subcontractors or suppliers have. True/False?

True

Corporations may consider the legal, ethical and philanthropic effects of corporate decisions. True False

True

For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise. True False

True

For purposes of the takings clause of the Constitution, "property "includes personal property and intangible property rights as well as real property. True False

True

Fraudulent misrepresentation can be the basis for the injured party to rescind the contract. True False

True

General damages are also called compensatory damages. True False

True

Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract. True False

True

If there is a breach of contract, the breaching party bears the risk of loss of the goods. True False

True

If there is more than one plaintiff in a diversity case, each plaintiff must individually meet the diversity threshold of $75,000 in injury.

True

In a member-managed LLC all members participate in management T/F

True

Intoxication may be used as a defense in specific intent crimes if the impairment was so great that the accused could not form the requisite intent. True False

True

Parties to a contract may not offer as consideration promises to do what they are already legally required to do. True False

True

Partnership must be kept in the firm's place of business and be accessible to all partners T/F

True

Professional corporations are business entities organized under state law T/F

True

Property held in trust for the benefit of the debtor under a spendthrift trust does not become a part of the bankruptcy estate T or F?

True

Property inherited by the debtor within 180 days of the bankruptcy petition date becomes property of the bankruptcy estate T/F

True

Shareholders may dissent from both stock-for-stock mergers and cash-for-stock mergers T/F

True

Shareholders may vote on matters in which they have a personal interest T/F

True

Some states use the alter ego theory to require corporations to assume liability for contracts negotiated on their behalf by the promotors T/F

True

The 50% Rule is associated with comparative fault systems. True False

True

The power to regulate commerce with foreign nations is exclusive to the federal government. True False

True

The powers of the federal government are limited to those enumerated in the Constitution True False

True

Under Chapter 11, a debtor's plan of reorganization must provide a means for its execution T or F?

True

Gaggle Inc. decides to wrongly infringe on Chirp Chirp's patent and establish a similar "knock-off" product because Chirp Chirp is just a small start-up company and they lack the money to litigate in court with Gaggle, Inc. Gaggle, Inc. is:

Unethically exploiting their power and size in the marketplace.

Mary left her iPad at a local restaurant and offered a reward for its return. Mary made an offer to form a (n) _________________contract. Bilateral Unilateral Implied in law Implied in fact

Unilateral

The assembled group of people from which a trial jury will be selected is called the ___________.

Venire

One person, who is without personal fault, is held liable for the criminal conduct of another person, who is at fault, in ___________________________.

Vicarious liability

The general legal doctrine that holds one person responsible for the torts committed by another because of the relationship they have to each other is ___ - respondeat superior - vicarious liability - primary liability - transferred liability

Vicarious liability

Six months after being adjudicated insane, Connie signed a contract for premium cable service. The legal status of this contract is? Void Voidable by Connie or Cable Company Voidable by Connie Valid

Void

The legal status of a contract entered into by someone who has been adjudicated insane is __________. Avoidable only by the person adjudicated insane Valid Void Avoidable by either party to the contract.

Void

Mike, a minor, sold his trail bike to Allen, an adult. The status of this contract is? Voidable by Mike Valid Voidable by Mike or Allen Void

Voidable by Mike

Kevin, a minor, sold his home gym to Buyer, who in turn sold it to a good faith purchaser for value (GFP). Under the Uniform Commercial Code, Buyer took ____________title from Kevin, and transferred _________________title to the GFP. Voidable-------------------------------Good Void-------------------------------------Good Good-----------------------------------Good Voidable-------------------------------Voidable

Voidable-------------------------------Good

The whole process of questioning and selecting jurors is called_____________.

Voir dire

When will a principle not have a duty to reimburse an agent? - when the principal is disclosed - when the principal is undisclosed - when the expenses were the result of the agent's negligence - when the expenses are for food or travel

When the expenses were the result of the agent's negligence

Non violent crimes based on fraud and concealment are classified as what type of crimes?

White collar

Knockoff Shoe Company has started to produce a line of ladies shoes with very high heels and bright red soles. Bright red soles have long been associated with the ladies shoes of Famous French Shoe Maker. In a suit against Knockoff, Famous will likely allege? Invasion of privacy Interference with a prospective advantage. Product disparagement Wrongful appropriation of a goodwill and business value

Wrongful appropriation of a goodwill and business value.

Lenny bought a computer from Computer Store for $1,000. For an additional $100, the store delivered the computer, connected up the various devices, and transferred Lenny's files from his old computer. Would this transaction constitute a sale of goods under Article2? Yes, any transaction in which title to some "good" is transferred" is an Article2 sale. Yes, in this transaction the sale of goods "predominates." No, this is a contract for personal services. No, this is a" work for hire" contract.

Yes, in this transaction the sale of goods "predominates."

An indictment is

a grand jury's finding that there is sufficient evidence to bring someone accused of a crime to trial

An agent is not entitled to indemnification when His own negligence caused the damage for which he is being held responsible He was acting outside the scope of his authority He committed a tort while following the instructions of the principal Both a and b

both A and B

In a bankruptcy proceeding, the ________ is the individual, business organization, municipality or farmer that the bankruptcy proceeding involves. Debtor. Creditor. Interested party. Trustee.

debtor

The function of the grand jury is to

determine if there is sufficient evidence to bring someone accused of a crime to trial.

A commonly cited disadvantage of an LLC is that its members often risk personal liability if the business of the LLC fails. true/false?

false

A creditor can never be required to give the surety notice that the debtor is in default. true/false?

false

A creditor in possession of collateral given to him or her by the principal may return it to the principal without the consent of the surety. true/false?

false

All businesses have a right to liquidation proceedings.

false

In a Limited Liability Company, the unanimous consent of the members is required to hire a new employee.

false

In a limited partnership, a general partner's fiduciary duty is breached when limited partners are not permitted to participate in management.

false

In a limited partnership, each limited partner has an equal right to participate in the management of the business. true/false?

false

In a manager-managed LLC, only the manager-members have access to the LLCs books. true/false?

false

Information about a consumer's bankruptcy may remain in the files of a credit reporting agency for up to 15 years.

false

The Fair Debt Collection Practices Act applies both to third party collectors (like collection agencies) and to the original creditor.

false

The Statute of Limitations does not apply to surety contracts. true/false?

false

The owner may be liable for more than the contract price even if they follow the statutory procedures. true/false?

false

The release of the principal always releases the surety. true/false?

false

The standard of "reasonable accommodations" for disabilities are the same standards as "reasonable accommodations" for religious practices

false

The surety relationship requires good faith, but not fair dealing. true/false?

false

There must be an equal ratio of limited partners to general partners in all limited partnerships. true/false?

false

Under certain circumstances, a consumer may be incarcerated for nonpayment of a debt.

false

The federal agency this is charged with stopping unfair or deceptive advertising is the Federal Trade Commission Interstate Commerce Commission Consumer Products Safety Commission Robinson-Patman Commission

federal trade commission

What is the purpose of bail?

insure that the defendant shows up for trial

The unjustified taking of a human life, which is wrongful in almost all civilizations, is an example of a (n)_________________crime.

malum in se

Each state has at least ______federal district courts for trying cases.

one

Lawyers traditionally have a limited number of opportunities to reject potential jurors without having to give a reason. Jurors, however, cannot be eliminated based on

race, gender

Stare decisis translates as

stand by the decision

A juvenile court could not hear a case involving a contract dispute because it lacks _______ jurisdiction.

subject matter

A creditor can assign a general guarantor's promise to a new creditor for value. True/False?

true

A creditor can assign a general guarantor's promise to a new creditor for value. true/false?

true

A general guarantor's promise is not limited to a single transaction. true/false?

true

A limited partner has liability to the full extent of his or her capital contribution. true/false?

true

A limited partner normally has no liability beyond his or her contribution True/False?

true

A limited partner normally has no liability beyond his or her contribution true/false?

true

A limited partner risks personal liability when he or she actively participates in the management of partnership affairs. true/false?

true

A limited partnership allows limited partners to be only liable for their capital contribution. true/false?

true

A principal who is discharged in bankruptcy is released from his duty to reimburse the surety. true/false?

true

A surety who only guarantees collection is entitled to notice. true/false?

true

A surety's obligation is a generally promise to do what the principal agreed to do. True/false?

true

BOTH perforance bonds and fidelity bonds are sureties. true/false?

true

Contractors have a longer period in which to file mechanic's liens that subcontractors or suppliers have.

true

Contracts of suretyship are legally indistinguishable from contracts of indemnity.

true

LLC are taxed as partnerships unless the owners choose to be taxed as a corporation. true/false?

true

Limited Partnership must have at least one general partner. true/false?

true

Limited partners may lose the full amount their capital contribution if the limited partnership incurs debts that exceed its assets. true/false?

true

Modification of the creditor-principal agreement generally discharges the surety. True/False?

true

Modification of the creditor-principal agreement generally discharges the surety. true/false?

true

Restatement of Security treats contracts of suretyship as interchangeable with guarantor contracts. true/false?

true

State law determines whether or not a mortgage will have priority over a mechanic's lien. true/false?

true

Subrogation means the substitution of one person in place of another. true/false?

true

Surety agreements may also be created by operation of law. true/false?

true

The Poison Product Packaging Act of 1970 requires that certain products have child proof caps and packaging.

true

The manager of a manager-managed Limited Liability Company may be a non-member.

true

Under the Fair Debt Collection Practices Act, debt collectors are prohibited threatening to arrest a debtor for failure to pay a debt.

true

Parker is a dealer in Oriental antiques and rugs. A sign in his store recommends that customers bring in their rugs to him for cleaning and repair. In fact, Parker does none of the cleaning or repair work himself. He sends the rugs to Local Cleaners, for whom he works as an agent making a 20 commission. Due to a mishap at Local's plant, the rug belonging to Parker's customer was damaged. Is Parker liable to the customer for the damage? No, Parker is Local's agent and has no fiduciary duties to third parties. No, Parker has no liability because he was acting within the scope of this authority as Local's agent. No, Parker has no liability because agents are not responsible for the torts of the principal. Yes, Parker is liable because he is the agent of an undisclosed principal.

yes, Parker is liable because he is the agent of an undisclosed principal

In a Limited Partnership, a limited partner risk personal liability for partnership debts when __________. A. The limited partner offers to sell his or her interest in the partnership. B. The limited partner expresses his or her opposition to a decision made by the general partner. C. The limited partner becomes overly involved in partnership affairs. D. The limited partner decides to contribute significant personal assets as capital to the partnership.

C. The limited partner becomes overly involved in partnership affairs.

Which of the following is an illusory promise? "I will buy tickets to the World Series if the Red Sox win the Pennant." "I will drive you to work if your car is still in the repair shop." "I will go with you to the donkey basketball game if I can't think of anything better to do." "I will buy your car if my husband likes it."

"I will go with you to the donkey basketball game if I can't think of anything better to do."

Which of the following is false about the name of a corporation? A. The name must include words like "company" or "corporation" to indicate that the entity has limited liability. B. The name cannot be deceptively similar to any other corporation incorporated in that state. C. The name can never be changed once it is registered with the state. D. States allow corporations to reserve a name for a limited time while the corporation is being formed.

C. The name can never be changed once it is registered with the states

In a suretyship, security for the creditor is provided by A. Granting the creditor an interest in the debtor's real property B. A statutory lien on the debtor's personal property. C. The promise of a third party to perform if the debtor does not perform. D. A pledge by the debtor of personal property.

C. The promise of a third party to perform if the debtor does not perform.

What is the source of the employment at will doctrine? - common law - the uniform commercial code - the convention of international employment - federal statues

Common law

Religious beliefs ____ form the basis for the religious foundation theory of rights/duties ethical systems.

Common to many religions

What is the primary purpose of tort law? Create precedents in the common law Compensate victims for their losses Support society by fining wrongdoers Punish wrongdoers

Compensate victims for their losses.

The triple bottom line model encourages corporations to consider the effect of their decisions on ____ A. Profit B. People C. Planet D. All of the above

D. All of the above

Which of the following would bring about the dissolution of the partnership? A. The time the partnership is to last, as stated in the partnership agreement, has expired B. All of the partners agree to end the partnership C. One of the partners dies D. All of the above

D. All of the above

The first of the pleadings in a civil case is filed by the plaintiff and contains the allegations he is making against the defendant. This document is called the_________.

Complaint

Which legal rule will not impose punitive damages on a master for the torts of his servants unless the master himself took some part in the wrongful action? - vicarious liability rule - durham rule - complicity rule - transferred liability rule

Complicity rule

If the federal and state governments engage in the same activity, such as taxing businesses and individuals, they are said to exercise ______________powers.

Concurrent

In complex litigation involving the laws of several states, the state whose law will be used is determined by reference to

Conflict of laws

Erin, an employee of Bob`s Construction Co., has a non-compete agreement with Bob that prevents her from working for any of his competitors for 3 years after she leaves his employment. Connie, a competitor of Bob`s, is aware of the non-compete agreement between Bob and Erin. Connie offers to pay Erin 25% more than she is currently making with Bob, if she will come to work with her. Erin quits working for Bob. Bob loses several clients as a result of Erin leaving. What tort, if any, has Connie committed? Connie committed the tort of intentional interference with a contract. Connie committed the tort of quiche. Connie breached the non-compete agreement. Connie committed the tort of negligence while hiring Erin.

Connie committed the tort of intentional interference with a contract.

Which of the following is NOT a recognized advantage of doing business as a corporation? a. Investors have extremely limited liability for the debts of the corporation. b. A corporation can have perpetual existence. c. Usury laws do not apply to corporations. d. All of the above

D. All of the above are advantaged of doing business in corporate form

Jay, who is a partner in an accounting firm, is being sued for malpractice by a client. If the jury finds for the client, which of the following parties will have liability on the judgment? A. The partnership as an entity B. Jay individually C. Each of the other partners individually D. All of the above have liability on the judgment.

D. All of the above have liability on judgment

A surety will remain liable when the creditor-principal agreement is modified if the surety consents to the modification ... A. Before the modification takes place B. At the time the modification takes place C. After the modification takes place D. All of the above

D. Any of the above

The formal document that represents the agreement of the parties to form a partnership is the ___ A. Partnership charter B. Partnership certificate C. Uniform Act of Partnership D. Articles of partnership

D. Articles of partnership

Bill is a limited partner in K&L Limited Partnership. Which of the following statements about his partnership interests is false? A. Bill made a capital contribution to K&L B. Bill has a right to share in K&L profits. C. Bill must share in K&L losses up to his capital contribution. D. Bill has a right to make management decisions for K&L.

D. Bill has a right to make management decisions for K&L

Which of the following statements is correct about shareholders' voting rights? A. Shareholders are entitled to notice when a special meeting is called. B. A quorum of shareholders must be present to conduct business. C. A shareholder's vote will be counted only if the shareholder is personally, physically present at the meeting when the vote is take. D. Both a and b are correct.

D. Both A and B are correct

Directors have which of the following fiduciary duties? A. The duty of loyalty B. The duty of due care C. The duty to obey instructions D. Both a and b are duties of directors

D. Both A and B are duties of directors

Which of the following statements about corporate bonds is true? A. Bond holders are creditors of the corporation B. Bond holders have the right to vote for directors C. Bonds pay a stated rate of interest. D. A and C

D. Both A and C

Which of the following statements is true about a partnership name? A. The name is an asset of the partnership that may be sold or assigned B. The name must include the word "company" in it. C. The partnership must comply with the state's assume name provisions. D. Both a and c

D. Both A and C

A partnership that fails to comply with a state's assumed name statute ... A. Will be given a trade name by the attorney general B. Will not be able to use the courts of the state to sue its debtors C. May exposed the partners to criminal liability D. Both b and c

D. Both B and C

In which of the following business organization do the losses as well as the profits pass through to the owners? A. LP B. LLC C. General corporation D. Both a and b

D. Both a and b

When defendants do not respond to claims filed against them in courts of law or courts of equity, an automatic decision against them will result with the complaining party getting whatever remedy he requested. These decisions are called _____________ when at law and _______________ when in equity.

Default judgments, decrees pro confesso

Which of the following is NOT a part of plaintiff's prima facie case for showing disparate treatment? - Plaintiff is a member of a protected class. - Plaintiff was qualified for the position. - Plaintiff was rejected for the position. - Defendant has eliminated the position.

Defendant has eliminated the position

During discovery, defendant's attorney will orally question witnesses that will testify for plaintiff at trial under oath. This discovery procedure is called an ________

Deposition

Once a contract has been ratified, the ratifying party loses the right to ________. Reform the contract. Sue for compensatory damages. Exercise a product warranty protection. Disaffirm the contract.

Disaffirm the contract.

A ___ is an order by the bankruptcy judge that a debtor is relieved of paying specific debts Confessed judgment Discharge Foreclosure Liquidation

Discharge

Any change in the identity of the partners, whether through death, withdrawal, or the adding of a new partner, results in the ___ of the old partnership

Disengagement

Under the Telemarketing and Consumer Fraud and Abuse Protection Act, consumers may avoid telemarketing calls by putting their names on a federally maintained list called the ___ registry a. Consumer opt out b. Nuisance call c.Do not call d.Phone exemption

Do Not Call

Followers of the self-interest theory practice selfless acts because ____ .

Doing so will benefit the individual making the decision

DEF Corporation, which is incorporated in Maryland, is a ___ corporation in Maryland

Domestic

Acme, a Dover, Delaware company, is to send widgets to a customer in Elmira, New York, under a destination contract. The contract will read? F.A.S.Elmira, New York F.O.B.Elmira, New York F.A.S.Dover, Delaware F.O.B.Dover, Delaware

F.O.B.Elmira, New York

Whether or not a principal has, through his actions, ratified a contract is a question of ___ usually decided by a ___ - fact, judge - law, judge - fact, jury - law, jury

Fact ; Jury

Whether or not a servant was acting in the scope of his employment when he injured a third party is a question of ___ to be decided by the ___ - fact, judge - law, judge - fact, jury - law, jury

Fact ; Jury

Mike is a sole proprietor who buys, sells and repairs kilns and other equipment used in pottery making. He has an arrangement with K&M, a large equipment maker, to sell K&M kilns in both his own name and in K&M's name and to receive payments from customers. Mike's relationship with K&M is that of a ___ A.Independent contractor, B.Special agent, C. Broker, D. Factor

Factor

Mike is a sole proprietor who buys, sells and repairs kilns and other equipment used in pottery making. He has an arrangement with K&M, a large equipment maker, to sell K&M's kilns in both his own name and in K&M's name and to receive payments from customers. Mike's relationship with K&M is that of a ________________. Independent contractor Special agent Broker Factor

Factor

Under Chapter 11, a hearing is held on the confirmation of a debtor's proposed reorganization plan, to determine if it is ___ In the best interest of the debtor Fair and equitable. The least restrictive means of reorganization. Subject to liquidation.

Fair and equitable

"Clear and convincing evidence" is the easiest level of proof for a party with the burden of proof to meet. True False

False

A contract for a one year gym membership is a sale of goods under Article 2. True False

False

A creditor must exhaust his or her judicial remedies against the principal before seeking to recover from the surety. True/False?

False

A defendant may be tried in either Federal District Court or in state court when charged with committing a federal crime. True False

False

A defendant who wants to have the trial moved to a different geographic location in the state because of likely jury prejudice would ask for a change of venire and not for a change of venue

False

A director's duty of care under the business judgement rule is a lower standard than that of professional negligence T/F

False

A disadvantage of the Limited Liability Company is that profits are taxed both as income to the corporation and as dividends to the members. True/False?

False

A factor is an agent with the special limited authority of procuring a customer so that the principal can affect a sale or exchange of property T or F?

False

A factor is an agent with the special limited authority of procuring customers so that the principal can affect a sale or exchange of property T or F?

False

A member of an LLC can never be personally liable for the debts of the LLC T/F

False

A minor must pay the contract price for necessaries. True False

False

A motion for a judgment on the pleadings is a post-trial motion made by the losing party. True False

False

A party who enters into a contract with a minor has the same right as the minor to disaffirm the contract. True False

False

A person who uses a logo in an advertisement that is deceptively similar to that of another business commits the tort of false light. True False

False

A plaintiff may be awarded either compensatory damages or consequential damages, but not both. True False

False

A store manager is an example of a special agent T or F?

False

A surety and guarantor have always been treated as the exact same T/F

False

A suretyship provides a lien credit a legal interest in the property of the debtor to secure repayment of the loan T/F

False

A thief can pass good title to a subsequent purchaser, so long as the purchaser bought in good faith, for value, and did not know that the goods were stolen. True False

False

A unilateral mistake of fact is grounds for rescinding the contract. True False

False

Absent an agreement otherwise, each partner is entitled to compensation for his or her services in managing the business T/F

False

An "improvement" to real property necessarily increases the market value of the real property. True/False?

False

An LLC must have at least two members that participate in management in order to lawfully do business T/F

False

An LLC must have at least two members that participate in management in order to lawfully do business. True/False?

False

An agent operating under a written power of attorney is called an attorney-at-law T or F?

False

Under the 2009 Credit Card Accountability, Responsibility and Disclosure Act, credit card companies may not raise interest rates on existing credit card balances unless the borrower is at least ___ days late in making a payment 10 30 60 90

60

In most states, children under the age of __________cannot be held liable for negligence. 18 7 16 14

7

Traditionally in common law, children were presumed to lack sufficient understanding to form the intent necessary to commit a crime if they were under the age of 7 10 14 18

7

A prima facie claim of disparate impact discrimination is established if the selection rate for members in a protected class is less than ___ percent of the selection rate for members in the majority class - 25 - 30 - 50 - 80

80

To determine if a preferential transfer has taken place, the debtor is presumed to be insolvent for a period of ___ days prior to filing the bankruptcy petition 30 60 90 120

90

Which of the following is not a legal detriment? The victim of libel promises not to sue. A 22 year old who lives in a state where the drinking age is 21 promises not to drink alcohol. An 85 year old with a valid driver's license promises that she will not drive on superhighways anymore. A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.

A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.

An employer may be liable under respondeat superior if a customer repeatedly and publicly sexually harasses an employee T or F?

False

Another term for promissory estoppel is restitution. True False

False

Any money recovered in a successful derivative suit belongs to the shareholder who initiated the suit T/F

False

Any person who occupies a position of trust and confidence in relation to another person or his property is a trustee. True False

False

Any profits which a surety makes when called upon to perform the principal's duties belong to the surety. True/False?

False

Any profits which a surety makes when called upon to perform the principal's duties belongs to the surety T/F

False

Article 2 of the Code covers the sale of land and improvements on the land. True False

False

Assume that you hire an independent contractor to transport hazardous chemicals for your company. If he negligently causes damages to a third party while carrying out the job, you will not be liable because of his status as an independent contractor T or F?

False

Assumption of the risk is an element of negligence that must be proved by the plaintiff. True False

False

Which of the following activities is permitted by the Taft-Hartley Act? - A business may require that a worker be a member of a union as a condition for being hired. - A business may require that a worker join a union after he has worked for a certain period of time - Unions may organize secondary boycotts to protest the employment practices of other employers. - Unions may veto management lay offs of workers during slow business periods.

A business may require that a worker join a union after he has worked for a certain period of time

Bob voluntarily surrender's a watch that he repaired back to the owner. Bob had a lien on the property for the value of his labor. Bob later re-acquires the property. Bob has now revived his lien since he was able to re-acquire possession of the property T/F

False

Bonding companies are usually uncompensated sureties T/F

False

Both contributory negligence and comparative negligence can be asserted as defenses in cases brought in strict liability. True False

False

Both the plaintiff and the defendant must have minimum contacts with a state for a court to meet the requirements for personal jurisdiction.

False

Codes of Ethical Conduct adopted by corporations and professional associations have the same legal status as ordinances. True False

False

Commercial speech is given the same level of protection from government interference as political speech. True False

False

Congress has not yet been active in generating laws aimed at labeling and packaging

False

Contract and tort law are examples of public law True False

False

Courts do not enforce output contracts as a matter of public policy. True False

False

Crimes are classified as strict liability crimes when specific intent is required.

False

Criminal law is a subset of private law.

False

Dicta is another term for "controlling precedent." True False

False

Employees who are not covered by the Fair Labor Standards Act are "classified employees" T/F

False

Employers have greater liability for employee torts in states that have adopted the complicity rule than in those states that follow vicarious liability.

False

Ethical conduct is also necessarily legal. True False

False

Ethics concerns how one should behave based upon one's own concept of right and wrong. True False

False

Exemplary damages are also known as compensatory damages. True False

False

Food, shelter, cell phone service and medicine are examples of necessaries. True False

False

For diversity of citizenship jurisdiction, each plaintiff must have suffered over 100,000 in damages.

False

For diversity of citizenship jurisdiction, each plaintiff must have suffered over 100,000 in damages. True False

False

For purposes of diversity of citizenship, a corporation is a citizen in only one state, the state in which it is incorporated.

False

If the contract is silent about delivery terms, a destination contract is assumed.

False

If the laws of several jurisdictions are involved in a case, the doctrine of res judicata will determine which state law will apply. True False

False

In a criminal case, the state has the burden to convince jurors of the defendant's guilt " beyond a shadow of a doubt." True False

False

It is unconstitutional to imprison someone for petty offenses.

False

Minors may only avoid executory, not executed, contracts. True False

False

Modernly, surety and indemnification contracts are the same thing T/F

False

One of the disadvantages of a Limited Liability Partnership is double taxation. True/False?

False

Only liquidated debts can be discharged in an accord and satisfaction True False

False

Participating preferred stock allows holders to trade their preferred shares for common shares when the trading price reaches a specified target T/F

False

Partnerships are required to give notice to creditors when they dissolve, but corporations are not required to give notice of their dissolution T/F

False

Plaintiff's attorney in a personal injury case has a legal duty to tell the jury whether or not the defendant has insurance.

False

Plaintiffs initiate a civil suit by filing an affidavit with the court that contains the allegations he is making against the defendant.

False

Police powers are part of the enumerated powers granted to the federal government. True False

False

Powers not specifically delegated to the federal government or to the states are reserved to the federal government. True False

False

Promissory estoppel is the contract doctrine that requires that accords be in writing. True False

False

State X requires that a party who wants to appeal the decision of a trial court file a notice of appeal within 30 days of the verdict. This is an example of a substantive state law.

False

The Equal Pay Act is the source of the federal requirement that an employer reasonably accommodate the religious practices of its employees

False

The Fair Credit Reporting Act requires the person who is the target of a credit inquiry to consent to the disclosure of his or her credit information T or F?

False

The Supreme Court has ruled that electronic surveillance violates the Fourth Amendment protections against unreasonable searches and seizures. True False

False

The Uniform Commercial Code governs the sale of all commercial services and goods. True False

False

The Uniform Commercial Code is an important federal statute regulating interstate commerce.

False

The legal test to determine whether someone is a general agent or a special agent is whether or not the agent is paid for his services T or F?

False

The number of Supreme Court justices who must agree to accept a case is 5.

False

The owner may be liable for more than the contract price even if they follow the statutory procedures T/F

False

The owner of a limited liability company (LLC) has unlimited personal liability for the debts of the LLC T/F

False

The owner of a limited liability company LLC has unlimited personal liability for the debts of the LLC T/F

False

The police powers of the states refer to their rights to make arrests and try criminals. True False

False

The power of the federal government to completely regulate an activity, to the exclusion of any state regulation, is the power of occlusion. True False

False

The purpose of compensatory damages is to punish the breaching party. True False

False

The reasonable person is a community ideal of reasonable behavior that cannot vary from situation to situation. True False

False

The release of the principal always releases the surety T/F

False

The separation of powers doctrine applies only to the federal government and not to state governments. True False

False

The standard of proof for issuing a search warrant is clear and convincing evidence. True False

False

The surety relationship requires good faith, but not fair dealing T/F

False

The tort of wrongful appropriation of another's goodwill includes reverse engineering another's product. True False

False

There are no defenses available to a defendant manufacturer in market share liability cases True False

False

There is a constitutional right to a trial by jury in criminal cases, but not in civil cases.

False

There is no evidence that information included on labels and packaging influences consumers' purchase decisions

False

Title VII caps the amount of damages a plaintiff may collect from a defendant with 100 or fewer employees at $10,000

False

Title VII prohibitions against gender-based discrimination include adverse employment actions based on sexual orientation

False

Title VII protections against self discrimination based on gender apply only to female employees and not to male employees

False

To be liable for trespass to land a person must know that the property belongs to another. True False

False

To establish a claim for deceptive advertising, it must be proven that actual customers were mislead into purchasing the product

False

Today, scholars argue the role of the corporation is to maximize the return on investment of shareholders. True False

False

Tom took Al's car without Al's permission and used it for two days before returning it. Tom has committed the tort of conversion. True False

False

Tort law is a subset of general criminal law. True False

False

Under Article 2 a consignment is treated like a sale on approval. True False

False

Under Chapter 11, holders of claims or interests in the debtor's property are not permitted to participate in the approval process of a proposed plan of reorganization T or F?

False

Under Section 7 of the National Labor Relations Act, workers who are members of a union retain the right to negotiate individual employment contracts with their employers

False

Under the Electronic Funds Transfer Act, a banking institution has 5 days after determining that an electronic transfer had been erroneously made to a customer's account to correct the error

False

When ratifying a contract, a principal may select which provisions of the contract to accept and which to reject

False

When ratifying a contract, a principal may select which provisions of the contract to accept and which to reject T or F?

False

Whether or not a principal has ratified a contract is a question of law to be decided by the judge, and never a jury at trial T or F?

False

Which of the following would result in punitive as well as contract damages? Unilateral mistake of fact Unilateral mistake of value Fraudulent misrepresentation Negligent misrepresentation

Fraudulent misrepresentation

On Saturday, Bill Buyer paid Furniture World, a furniture retailer, 600 for a table. It was to be buffed and crated so that Bill could transport it home in his truck on Tuesday. On Monday the table was destroyed in a fire at Furniture World. Who bears the risk of loss? Furniture World, because it is a merchant and Bill had not yet taken possession of the table. Bill, because the table had been identified to the contract. Bill, because he had title to the table at the time it was destroyed. Bill, because he chose to pick up the table and not have it delivered.

Furniture World, because it is a merchant and Bill had not yet taken possession of the table.

Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Peg is Jim's______________. Independent contractor Broker General agent Special agent

General agent

In a limited partnership, the ___ partner has unlimited personal liability for the debts of the partnership; the ___ partner is liable only to the extent of his or her capital contribution.

General---Limited

Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." To accept this offer, what should the students do? Wait a statutory three days after the offer, then give Nellie a written promise to move the furniture on Saturday. Give Nellie a written promise to move the furniture on Saturday. Make an oral promise to move the furniture on Saturday. Go to Nellie's house on Saturday and move the furniture.

Go to Nellie's house on Saturday and move the furniture.

If Mike owes a "slight duty of care" for property he is keeping for Doug, Mike would only be liable for damages to the property caused by? Ordinary negligence Slight negligence Acts of God Gross negligence

Gross negligence

Diversity of citizenship gives the defendant the right to

Have a suit filed in state court removed to federal court

Which of the following would NOT be heard in Federal District Court in Baltimore, Maryland? A suit by a Maryland resident against a Maryland restaurant claiming violation of the Civil Rights Act of 1964, which is a federal statute. A suit between a Maryland resident and a Delaware resident over car accident in Baltimore. The amount in question is $75,000. A suit between two Maryland residents over a car accident in Easton, Maryland. The amount in question is $200,000. All of the above cases could be heard in Federal District Court.

A suit between two Maryland residents over a car accident in Easton, Maryland. The amount in question is $200,000.

To whom can a thief pass good title to stolen goods? Any buyer in the ordinary course of business Any good faith purchaser for value A thief can pass good title to no one. Any purchaser or donee that does not have reason to know that the goods are stolen.

A thief can pass good title to no one.

If a judgment for dollar damages is not paid, the judgment creditor may apply for a ______. A. Default judgment. B. Writ of Execution. C. Writ of Habeas Corpus. D. Writ of first refusal.

A. default judgment

Alan is the general manger of a restaurant. Although not mentioned in his employment contract, as part of carrying out his management duties he has the authority to buy supplies, hire employees, put ads on the radio, engage a cleaning service, pay bills, etc. These duties are expressions of his _____________ authority. Actual express Actual implied Actual apparent Constructive implied

Actual implied

An agent incurs personal liability on a contract with a third party when ... - He acts outside the scope of his authority in negotiating the contract - He is an agent for an undisclosed principal - He is an agent for a partially disclosed principal - All of the above would impose personal liability on the agent

All of the above would impose personal liability on the agent

Which of the following would NOT terminate an agency by operation of law? - the death of the principal - the death of the agent - the destruction of the goods that the agent was hired to sell - all of the above would terminate an agency by operation of law

All of the above would terminate an agency by operation of law:

An employer whose termination of an at-will employee violates a public policy is liable to the employee for which of the following? - unpaid back pay and benefits - punitive damages - damages for pain and suffering - all of the above

All of the above:

When does an agent incur personal liability on a contract with a third party? - when he acts outside the scope of his authority in negotiating the contract - when he is an agent for an undisclosed principal - when he is an agent for a partially disclosed principal - all of the above

All of the above:

The theory under which courts pierce the corporate veil or corporations whose shareholders do not treat the corporation like a separate legal identity is the ___ theory

Alter ego

Which of the following statements about the good cause exception to the employment at will doctrine is false? - An employee who wins a suit for wrongful termination under the good cause exception is entitled to back wages, damages for pain and suffer - Thirty years of continuous employment is good evidence that an implied contract to terminate only for good cause has been created. - The good cause exception is created by the conduct of the parties, particularly the conduct of the employer, during the years of employment. - A and B only

An employee who wins a suit for wrongful termination under the good cause exception is entitled to back wages, damages for pain and suffer

Which of the following statements about workers compensation programs is false? - Workers compensation laws are state laws that provide benefits to workers injured on the job. - An injured worker may collect workers compensation and may sue his or her employer for negligence. - If the worker was injured by a defective product used in the workplace, the worker may collect workers compensation and sue the manufacturer - Workers compensation does not cover job injuries that are intentionally caused.

An injured worker may collect workers compensation and may sue his or her employer for negligence

May is one of three limited partners in a limited partnership. Each limited partner made a capital contribution of $50,000. Assume there is a judgment against the partnership for $300,000 and that both the partnership and the general partner are insolvent. What is the maximum amount that May will have to pay on the judgment? A. May is a limited partner so has no liability for the debts of the partnership under any circumstances. B. $50,000: May's capital contribution can be applied to the debt, but she is not personally liable beyond that. C. $100,000: May will be liable for up to 1/3 of the judgment since there are three limited partners. D. $300,000: As a limited partner May has joint and several liability for the debts of the partnership so she could be personally liable for the full amount.

B. $50,000: May's capital contribution can be applied to the debt, but she is not personally liable beyond that

AMJ Partnership has 3 partners: Amy made a 60,000 capital contribution; May made a 20,000 capital contribution; and June made a 10,000 capital contribution. The partnership agreement is silent about how profits will be divided. If the partnership makes 90,000 in profits, how will it be distributed? A. 60,000 to Amy; 20,000 to May; 10,00 to June B. 30,000 each to Amy, May and June C. 45,000 to Amy; 30,000 to May; 15,000 to June The partners will have to determine the distribution by a D. 23 partnership vote

B. 30,000 each to Amy, May and June

Which of the following is not a right of a partner? A. The right to participate in the management of the business. B. The right to draw yearly interest on his or her capital contribution C. The right to inspect the partnership books and records D. The right to sue for an accounting if another partner has taken a secret profit.

B. The right to draw yearly interest on his or her capital contribution

Which of the following statements about LLC's is false? A. LLC's are a relatively new form of business organization. B. There is an extensive body of law based on court decisions governing LLC's. C. Shareholders have no personal liability for the debts of the LLC. D. The LLC is not a taxable entity

B. There is an extensive body of law based on court decisions governing LLC's

All of the following are functions of an LLC's Operating Agreement, except: A. To set forth rules concerning voting rights for members of the LLC. B. To indemnify members of the LLC from liability for any unlawful acts. C. To make rules concerning the transfer of interests in the LLC. D. To address circumstances in which the LLC would dissolve.

B. To indemnify members of the LLC from liability for any unlawful acts.

The merger of a corporation with one of its suppliers is a ___ merger A. Horizontal B. Vertical

B. Vertical

When a ________ is purchased, a bonding company promises to pay an employer any loss, not to exceed a stated amount, caused by the covered employees' embezzlement. A. Performance bond. B. Fidelity bond. C. Security agreement. D. Nonperformance bond.

B. fidelity bond

Before the jury begins its deliberations, the judge tells them the law that applies to the case and the questions of fact they must decide. This process is known as___________________.

Jury instructions

Persons serving on final reviewing courts, such as the United States Supreme Court, are called _______

Justices

Gene is bringing a suit in strict liability for personal injuries caused by a defectively designed hair dryer. Which of the following parties can be defendants in this case? (select all the answer options that are correct) Big Retail Outlet who sold the dryer to Gene Employee that sold it Kamp;L Inc., who manufactured the hair dryer Electronic Designs, who designed the hair dyer

Kamp;L Inc., who manufactured the hair dryer Electronic Designs, who designed the hair dyer

What is the term used to describe the voting conditions necessary for a binding "representation election" in which the workers in a company vote whether or not to unionize? - Court annexed - Laboratory - Equitable - Democratic

Laboratory

Which of the following is a requirement for a valid contract? (select all answer options that are correct) Mutuality of signatures Legal capacity of the parties Offer and acceptance Consideration

Legal capacity of the parties. Offer and acceptance. Consideration.

Jude willfully and maliciously burned down the store of a competitor by spreading gasoline around it and then throwing an incendiary device. Because he committed the crime of arson, Jude necessarily also committed the lesser crime of attempted arson. In this circumstance attempted arson is what type of offense?

Lesser included

What is another term for strict liability? Liability without fault Criminal negligence. Reckless misconduct Gross negligence

Liability without fault

Which business entity has the following characteristics: liability of the owners is limited to their investments; ownership interest is easily transferrable and there are no legal limits to the number of owners; owners elect the managers of the business who operate under duties of loyalty and due care; the entity is organized under state law and may have perpetual existence; profits are subject to double taxation? A. Proprietorship B. General corporation C. Subchapter S corporation D. Limited Liability Company

B. general corporation

In a criminal case, the burden of proof on the state is to prove guilt

Beyond a reasonable doubt.

Bob promised to pave Sue's driveway and Sue promised to pay him $5000 when the work was completed. The contract between Bob and Sue is a __________________contract. Implied in fact Unilateral Bilateral Implied in law

Bilateral

Manny Manufacturer sent an e-mail to its widget supplier with this message: "Please confirm by return e-mail if you will be able to send me an additional ten dozen red widgets for the usual price by the thirtieth of this month." Supplier e-mailed back: "Yes, the additional widgets will be part of our delivery to you on the morning of the thirtieth." This exchange created what type of contract? Implied in law Bilateral Unilateral Adhesionary

Bilateral

Mutuality of consideration is a requirement for a n_________________. Action for promissory estoppel Unilateral contract Bilateral contract Firm offer under the Code

Bilateral contract

Mutuality of consideration is a requirement for an_________________. Action for promissory estoppel Unilateral contract Bilateral contract Firm offer under the Code

Bilateral contract

Vivian offered to buy Ben's violin for $2,000 and Ben accepted. Three days later Vivian gave Ben $2,000 in cash and Ben gave Vivian possession of the violin. Which of the following sets of terms best describes the contract between Vivian and Ben? Bilateral, implied in fact, valid and partially executed Unilateral, implied in fact, avoidable and executory Unilateral, express, avoidable and executed Bilateral, express, valid and executed

Bilateral, express, valid and executed.

The document issued by a common carrier evidencing receipt of goods for shipment is an_________________. Bill of attainder Bill of lading Invoice Bill of particulars

Bill of lading

Bona fide occupational qualification cannot be raised as a defense in cases of employment discrimination based on which of the following? - Race - Color - Religion - Both A and B

Both A and B

Bona fide occupational qualification is a defense narrowly interpreted by the courts, which applies to cases of employment discrimination that are based on which of the following? - Gender - National origin - Both A and B

Both A and B

Employers who dismiss an employee in a public and demeaning way may be liable the employee in tort for which of the following? - Invasion of privacy - Intentional infliction of emotional distress - Wrongful interference with a contractual relationship - Both A abd B

Both A and B

When is the only time that employers are subject to the Age Discrimination in Employment Act? - If they engage in interstate commerce - If they have at least twenty employees - If they have at least 100 employees - Both A and B

Both A and B

An agent has a duty to obey the principal's instructions unless which of the following is true? - the instructions require the agent to perform duties that are not in the agency agreement - the instructions are to perform an illegal act - the instructions are not in the principal's best interest - both A and B

Both A and B:

An agent's actual authority may be ___ - express - implied - ostensible - both a and b

Both A and B:

Bereaved had a dispute with Funeral Home over the costs of services for his father. When he left home the morning of the funeral, he found his father's embalmed body on his front door step. Bereaved has suffered prolonged sleeplessness and depression since then. Bereaved can sue Funeral Home for? Mental distress False imprisonment Invasion of privacy Disparagement

Mental distress

Assume that the defendant in disparate impact case claims, as an affirmative defense, that the employment practice which is complained of is, "job related and consistent with business necessity." What clan Plaintiff show to defeat this defense? - The practice is a pretext for discrimination. - There is another, non-discriminatory employment practice that fills the same function. - The defendant had been investigated by the EEOC at least twice within the last ten years. - Both A and B

Both A and B:

To collect workers compensation, what must an employee do? - Suffer an injury that arose out of his employment - Be included in the category of workers entitled to workers compensation - Not be out of work for more than ten days - Both A and B

Both A and B:

Under the National Labor Relations Act, businesses may NOT do which of the following? - Prevent workers from forming a union - Discriminate against workers for joining a union - Lay off workers in business downturns without the approval of twenty-three of the workers in a shop vote - Both A and B

Both A and B:

Which of the following industries are subject to particular FTC scrutiny? Funeral homes Tanning salons Home insulation providers Both a and c

Both A and C

When would an employer not be liable for sexual harassment of an employee by a supervisor? - If it was quid pro quo harassment - If it was hostile workplace harassment and the employer had exercised reasonable care to establish and enforce anti-harassment policies - If it was hostile workplace harassment and the employee waited too long to report the incident - Both B and C

Both B and C

Nelson and Jack are both avid sailors. When a sailing acquaintance put his older, but still highly desirable, boat up for sale, Nelson and Jack agreed to pool their resources to buy and fix up the boat, then sell it and split the profits. This is an example of a ___ A. general partnership B. limitied partnership C. Joint venture D. proprietorship

C. Joint venture

The right of first refusal refers to the right of LLC members to A. Dissent from a business decision by a non-member manager. B. Vote against admitting another member. C. Purchase the interest of another member in the LLC before it is offered to an outside buyer D. Purchase an asset of the LLC before it is offered for sale to the public.

C. Purchase the interest of another member in the LLC before it is offered to an outside buyer

A partner who participates in the management of the partnership, but whose existence is not known to the public is a ___ partner A. Silent B. Dormant C. Secret D. Senior

C. Secret

The document that is written evidence of an ownership interest in a corporation is a ___ A. Stock warrant B. Charter C. Stock certificate D. Proxy statement

C. Stock certificate

Partners hold title to partnership property as... A. Joint tenants B. Tenants in common C. Tenants in partnership D. Tenants by the entireties

C. Tenants in partnerships

Mary, concerned with antibiotics and chemicals in the food supply, started to raise pigs in the backyard of her suburban home. She now has fourteen pigs that produce a significant amount of solid waste, which attracts insects and smells very bad. There are no town or county ordinances that specifically forbid raising pigs. Her neighbors should challenge her right to engage in this activity based on the tort of? Intentional interference with a prospective business advantage Nuisance Intentional infliction of emotional distress Trespass to land

Nuisance

Injunctions are often sought as remedies in torts of: (select all the answer options that are correct) False imprisonment Nuisance Wrongful appropriation of another's good will Personal injury

Nuisance Wrongful appropriation of another's good will

The person to whom an offer to form a contract is made is called the___________. Donee Obligor Offeree Offeror

Offeree

The person who makes an offer to form a contract is the ______________. Maker Offeree Donor Offeror

Offeror

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ________________and will not enforce it. Crime Tort Act of extortion Penalty

Penalty

Which of the following is NOT a procedure used in discovery?

Peremptory challenges

A debtor may voluntarily instigate a bankruptcy case by filing a ___ with the bankruptcy court Complaint Claim Declaration Petition

Petition

The party who files a civil suit at law is called the ____________.

Plaintiff

A state Statute of Limitations which requires that suits for breach of contract be filed within 2 years of the date of breach are examples of ______ laws.

Procedural

Detrimental reliance is another term for? Renunciation Promissory estoppel Good faith Forbearance

Promissory estoppel

Creditors are required to file ___ if they are to share in the debtor's estate Proof of their claims Financial statement. Articles of Dissolution. Mechanic's lien

Proof of their claims

Which of the following is false about a renunciation? Renunciations are valid in common law but not under the Code A written renunciation does not require consideration. An oral renunciation does require consideration. The right that is waived in a renunciation is a contract right.

Renunciations are valid in common law but not under the Code.

Dr. Dan accidentally left a scalpel in Paul Patient during Paul's operation, causing Paul much pain and necessitating additional surgery. Paul's lawyer will most likely use the special doctrine of ____________when he sues Dr. Dan for negligence. Res ipsa loquitur Superseding cause Negligence per se Contributory negligence

Res ipsa loquitur

The legal doctrine that holds the master liable for the torts committed by a servant while acting within the scope of this employment is ___ - quid pro quo - respondeat superior - caveat emptor - alter ego liability

Respondeat Superior

Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. In order to get her money back, Betty will have to return the pin to Sally. This is the duty of? Reformation Restitution Compensation Replevin

Restitution

Sue, a resident of Somerset County, Maryland, and David, a resident of Broome County, New York, are fighting over land located in Sussex County, Delaware. Under traditional rules of venue, the trial to determine ownership would take place in

Sussex County

A license of intellectual property is a contract which allows one firm to use the intellectual property of another in return for payment.

True

A limited partner risks personal liability when he or she actively participates in the management of partnership affairs. True/False?

True

A limited partnership must have at least one general partner and one limited partner T/F

True

A major purpose of discovery is to encourage the parties to settle the case without going to trial.

True

A master can normally avoid liability for damages caused by a servant if he can show that the servant misunderstood his instructions T or F?

True

A merchant's duty of "good faith" under the Code includes observing the reasonable commercial standards for fair dealing in his or her trade. True False

True

A minor is held to the same duty of care as an adult when driving a car. True False

True

A minor may act as an agent for an adult principal T or F?

True

A new partner is liable only to the extent of his or her capital contribution for the already existing debts of the partnership T/F

True

A party to a contract who lacks mental capacity, but has not been adjudicated insane, is liable in quasi-contract for necessaries. True False

True

A party who misstates an important fact during contract negotiations has an affirmative duty to correct that misstatement before entering into the contract. True False

True

A party who wishes to appeal a judgment is normally required to post a bond. True False

True

A person is negligent if he or she fails to act as a reasonable and prudent person would act in those circumstances. True False

True

A person who enters into a contract with an independent contractor is called a proprietor T or F?

True

A person who violates a decree from a court of equity can be jailed for contempt of court. True False

True

A petit jury decides the guilt or innocence of a defendant in a criminal trial

True

A plaintiff who sues the employer and the employee in joint and several liability is limited to only one recovery

True

A principal has the duty to notify third parties when an agency terminates T or F?

True

A principal may ratify a contract by accepting the benefits of the contract T or F?

True

A principal who is discharged in bankruptcy is released from his duty to reimburse the surety. True/False?

True

A principal whose identity is known to a third party is a disclosed principal T or F?

True

A promotor has a fiduciary responsibility toward the prospective corporation T/F

True

A proprietor will be liable for the torts of an independent contractor if the duties that the contractor is hired to perform are inherently dangerous to the public T or F?

True

A receiver is an officer of the court who takes possession of property involved in a lawsuit for the benefit of the ultimate owner T/F

True

A renunciation is a written waiver of a right arising out of a contract. True False

True

A seller who knows that his property has a defect not discoverable by the buyer will be liable for fraudulent misrepresentation if he does not disclose the defect. True False

True

A shareholder who holds watered stock is potentially liable to the creditors of the corporation should the corporation become insolvent and unable to meet its obligations T/F

True

A sub-surety becomes liable to the creditor only when another surety fails to perform T/F

True

A sub-surety becomes liable to the creditor only when another surety fails to perform. True/False?

True

A surgeon is held to a higher standard of care in performing an operation than a general practitioner would be in performing the same operation. True False

True

A third party must use reasonable care and diligence to maker sure that an agent is acting within the scope of his or her employment T or F?

True

Absent a special relationship, one person has no legal duty to warn or rescue another. True False

True

Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be amended with the unanimous consent of the members T/F

True

Agents are personally liable to third parties on contracts when the principal was undisclosed T or F?

True

Agents of undisclosed principals are entitled to be indemnified if held personally liable on contracts that were within the scope of their authority T or F?

True

All bankruptcy trustees must post a bond in favor of the United States.

True

All states have juvenile courts with special procedures for crimes involving minors. True False

True

An action for mental distress normally requires the plaintiff to exhibit some physical symptoms of emotional suffering. True False

True

An agency will terminate by operation of law if the principal files for Chapter 7 Bankruptcy T or F?

True

An agent is a fiduciary of the principal.

True

An agent is a fiduciary of the principle T or F?

True

An agent who co-mingles the principal's funds with his or her own violates the duty to account T or F?

True

An employer who fires an at will employee in a public and humiliating manner may be liable to the employee for intentional infliction of emotional distress

True

Another term for consideration is a bargained-for exchange. True False

True

Another term for punitive damages is exemplary damages. True False

True

Article 2 of the Code has special rules that apply only to merchants. True False

True

BOTH performance bonds and fidelity bonds are sureties T/F

True

Boards of directors normally have the power to purchase insurance to indemnify directors who are sued personally for corporation-related actions T/F

True

Both contractors and subcontractors are entitled to a mechanic's lien against the owner for nonpayment of their accounts. True/False?

True

Both physical and mental impairments are included under the Americans with Disabilities Act's definition of a disability

True

Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The construction work has been completely finished, but Hailey has not yet paid Cal. This is an example of a partially executed contract. True False

True

California and New York allow only professional services firms to do business as Limited Liability Partnerships. True/False?

True

Co-sureties share joint and several liability to the creditor T/F

True

Codes of Ethical Conduct adopted by businesses and professions often provide for sanctions against individuals who violate the code. True False

True

Commercial speech has no constitutional protections if it misleads or promotes can illegal activity. True False

True

Congress has enacted legislation aimed at the protection of current and prospective debtors T or F?

True

Courts may look into the adequacy of consideration if there is evidence of fraud or undue influence by one of the parties. True False

True

Courts may use course of performance, course of dealing and usage of trade to override express terms in a contract. True False

True

Creditors must receive as much in a Chapter 11 reorganization plan as they would receive in a Chapter 7 liquidation

True

Creditors who petition a debtor into bankruptcy may be required to post a bond T or F?

True

Criminal and taxing statutes are strictly and narrowly construed True False

True

Customers who want to sue businesses for damaged goods or poor services often choose small claims court.

True

Directors are fiduciaries of the corporation and may have liability in both contract and tort T/F

True

Early cases of strict liability dealt primarily with liability for dangerous animals or abnormally dangerous activities. True False

True

Employees take their ethical cues from the behavior of top management. True False

True

Employers have a duty under Title VII to reasonably accommodate the religious practices of their employees

True

Employers who violate OSHA regulations are subject to fines and, if the violations are willful, imprisonment

True

Ethical behavior often requires a higher standard than merely legal behavior. True False

True

Ethics involves determining how one should act based on a group's determination of right and wrong. True False

True

Evidence gathered under a defective search warrant may still be used at trial if the police had a good faith belief that the warrant was good. True False

True

Excessive punitive damage awards may violate the constitutional protection of due process. True False

True

Excessive punitive damage awards may violate the constitutional protection of due process. True False

True

Exempt bankruptcy is subject to being used even after bankruptcy to pay debts for child support and alimony T or F?

True

Exempt property is subject to being used even after bankruptcy to pay debts for child support and alimony.

True

Failure to obey the order of a court of equity can result in imprisonment. True False

True

Failure to rescind a contract within a reasonable time amounts to an affirmation of the contract. True False

True

Featherbedding is an illegal activity in which unions force employers to hire more employees than necessary

True

Federal District Courts use federal procedural law in the conduct of both civil and criminal trials. True False

True

Federal law prevails if federal and state statutes conflict. True False

True

Federalism is the doctrine that the powers of government are shared between the states and the federal government.

True

Following a complaint to the EEOC, Morgan was denied a promotion for which he was qualified. The denial is an example of retaliation that is prohibited by Title VII

True

For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise. True False

True

Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract. True False

True

If a credit gets a judgement against the creditor, and then the surety pays the creditor, the surety gets to benefit from the judgement that was obtained by the creditor T/F

True

If a director discovers illegal activity he or she must report the activity or problem, and if the officers of the corporation refuse to take action, the director must resign and notify the appropriate authorities T/F

True

If a principal ratifies the unauthorized act of an agent, he releases the agent from any liability for the unauthorized act T or F?

True

If a principal wishes to ratify a contract that an agent was not authorized to negotiate, he must do so before the third party withdraws from the contract T or F?

True

If a taxpayer files suit challenging the budget of the CIA, the court will rule that the taxpayer lacks standing to sue. True False

True

If an agent gets a monthly advance against future commissions, the advances are treated as a minimum salary and need not be returned if the commissions on sales are not earned T or F?

True

If the agent dies, the agency agreement terminates by operation of law T or F?

True

If the formalities of creating a limited partnership are not met, a partnership will be treated by courts as a general partnership. True/False?

True

If the principal dies, the agency agreement terminates by operation of law T or F?

True

In Chapter 7 bankruptcy cases, certain debts of the debtor will not be discharged

True

In a Chapter 13 proceeding, the rights of a bank which holds a home mortgage may not be modified T or F?

True

In a Limited Liability Company, the losses stay with the corporation although the profits pass through to the shareholders T/F

True

In a closely held corporation, shareholders owe each other substantially the same fiduciary duties that partners owe one another T/F

True

In a destination contract, title to the goods passes to the buyer when the goods reach their destination. True False

True

In a discretionary appeal, an appellate court has the right to refuse to hear a case. True False

True

In a diversity case, the federal court will use the substantive law of the state in which it is located. True False

True

In a liquidated debt, the parties agree on the exact amount that is due. True False

True

In a multiple listing agreement, real estate is listed with several brokers who divide the commission on the sale T or F?

True

In a sale on approval, the seller must pay the costs for returning the goods. True False

True

In a typical year, the U.S. Supreme Court will select about 150 cases to hear from approximately 5,000 requests.

True

In an accord and satisfaction, the accord is the new agreement. True False

True

In bilateral contracts, both parties must be bound to the contract or neither party is bound. True False

True

In common law, a child under age seven is presumed to lack the mental capacity to form criminal intent. True False

True

In deciding a case, a court will not use common law if there is a statute that applies to the dispute. True False

True

In deciding a case, statutory law always supersedes common law.

True

In interpreting a particular sales contract, courts rely more on course of performance than on usage of the trade. True False

True

In joint and several liability one party is potentially liable to pay the entire amount of the judgment. True False

True

In joint and several liability, a defendant who pays the entire amount of the judgment may sue the other defendants for their share of the obligation. True False

True

In most states corporations can have perpetual existence T/F

True

In negligence cases, a superseding cause is one that breaks the direct sequence between the act, which is the basis of the negligence claim, and the plaintiff's injury. True False

True

In negligence per se cases, the injury that the plaintiff suffers must be the same type of injury that a statute was intended to prevent. True False

True

In the majority of states an LLC can be both formed and managed by only one member T/F

True

Injunctions are available as remedies in nuisance cases. True False

True

Innocent misrepresentation can be the basis for the injured party to rescind the contract. True False

True

Intentionally touching another in a way that is harmful or offensive constitutes the tort of battery. True False

True

Investors favor using Limited Partnerships to invest in commercial real estate because they can use the depreciation of the property as a tax loss T/F

True

It is good practice to include in a contract which state's law will govern disputes that arise under the contract.

True

It is illegal to retaliate against an employee for filing a complaint with the EEOC

True

It is only within the last eighty years or so that the federal gov't and the states have enacted laws protecting employment rights and workplace safely T or F?

True

It is the function of the jury to decide the facts that are in dispute in a case. True False

True

Judicial review is the power of the courts to declare laws unconstitutional. True False

True

Justices serve on final reviewing courts while judges serve on trial and intermediate level courts.

True

LLC are taxed as partnerships unless the owners choose to be taxed as a corporation T/F

True

Limited Partnership must have at least one general partner T/F

True

Manufacturers may be subject to product liability suits based on negligence if they fail to provide adequate instructions for the use of the product. True False

True

Many areas of law important to businesses are governed by the Uniform Commercial Code. True False

True

Many economists believe personal interest is a basis for a well-functioning economy. True False

True

Masters and servants have only joint liability for torts committed by the servant in the course of his employment.

True

Most states allow employers to require job applicants and employees to undergo alcohol and drug tests

True

Most states will not allow recovery for economic losses in product liability cases based on strict liability. True False

True

Normally a master is not liable for torts committed by a servant while traveling from his home to the workplace T or F?

True

Officers of a corporation are responsible for carrying out the policies set by the board of directors T/F

True

One function of the Constitution is to protect individual rights by limiting the role of government. True False

True

One method for proving that a contract has been rescinded is to tear up the contract. True False

True

One method for proving that a contract has been rescinded is to tear up the contract? True False

True

One of the elements of fraudulent misrepresentation is that the victim's reliance on the false representation was justifiable. True False

True

One recognized advantage to a general partnership is that it allows partners to share in management and profits of the partnership. True/False?

True

One typical example of a closed-end credit transaction is where a purchaser obtains a loan of money from a bank to purchase a car T or F?

True

Partner A defrauded a client of the partnership. Partners B and C are jointly and severally liable with A to the client, even though they were unaware of the fraud T/F

True

Partnerships typically buy life insurance policies on each partner in order to fund the required purchase of the partner's interest in the partnership when the partner dies T/F

True

Paul and several of his friends bought tickets to a Ravens football game and were outraged that they were not allowed to march up and down the sidelines carry signs protesting the repeal of the Don't Ask, Don't Tell law. They will not be able to sue the Ravens' management for violating their First Amendment rights because there was no state action involved.

True

Peremptory challenges or strikes may not be based on race or gender. True False

True

Plaintiff was 10% at fault for a car accident in which he was injured. In a contributory negligence state, plaintiff would recover nothing from the defendant although the defendant was 90% at fault. True False

True

Political speech enjoys the greatest protections under of the First Amendment of any classification of speech. True False

True

Premiums paid by corporations for the health insurance it provides employees are tax-deductible expenses T/F

True

Preponderance of the evidence is the easiest burden of proof to meet. True False

True

Principles of legal reasoning may successfully be applied to solving certain problems related to business strategies.

True

Punitive damages may be awarded to victims of fraudulent misrepresentation. True False

True

Pure comparative negligence is the defense in negligence cases that most favors the plaintiff. True False

True

Questions are used by both plaintiffs and defendants during voir dire to eliminate potentially biased jurors.

True

Relative to corporate and partnership law there is not a comparable amount of case law involving LLCs T/F

True

Respondeat superior is a firm of vicarious liability.

True

Respondeat superior is a form of vicarious liability T or F?

True

Sam Sophomore is suing the school board of Small Town, Iowa for suspending him because he held up a sign at a pep rally denouncing war. He claims that his First Amendment right of free speech was violated. He may file suit in federal district court in Iowa, even though he and the defendant school board members are citizens of Iowa. True False

True

Scienter includes not only actual knowledge that a statement is false, but also reckless disregard for whether the statement is true or false. True False

True

Scooter was indicted for committing a federal crime. He can be tried only in federal district court

True

Selling alcohol to a minor is an example of a strict liability crime. True False

True

Shareholders are entitled to notice when a special meeting is called T/F

True

State law determines whether or not a mortgage will have priority over a mechanic's lien T/F

True

State law determines whether or not a mortgage will have priority over a mechanic's lien. True/False?

True

States decide whether or not debtor residents may use the federal bankruptcy exemptions T or F?

True

States have statutes of limitations limiting the time after the dissolution of a corporation when creditors of the corporation may sue former shareholders on corporate debts T/F

True

Subrogation means the substitution of one person in place of another T/F

True

Subrogation means the substitution of one person in place of another. True/False?

True

Summary judgments cannot be granted if there are any questions of material fact still in dispute by the parties.

True

Surety agreements may also be created by operation of law T/F

True

Systems of ethics, which focus on outcomes to determine the ethics of an act, are also called consequential systems. True False

True

Tamara left her car in a line of other cars waiting to be washed. Tamara expects to pay for the service and the car wash expects to be paid. The contract that exists between Tamara and the car wash is an implied in fact contract. True False

True

The Americans With Disabilities Act applies only to employers who have 15 or more employees

True

The Americans with Disabilities Act prevents employers from requiring that job applicants or employees undergo medical tests as a condition of employment

True

The CFPB has sole jurisdiction to write new regulations on the consumer financial protection laws written by Congress T or F?

True

The FTC is given wide discretion by the courts in determining when advertising is deceptive

True

The FTC regulates deceptive advertising on Web pages as well as on television and in the print media.

True

The First Amendment is interpreted to include political free speech for corporations. True False

True

The Occupational Safety and Health Act imposes on employers both a general duty to provide a safe work place and specific duties that are tailored to the employers' particular industries

True

The Privileges and Immunities Clause insures that a citizen of State X cannot be denied access to employment opportunities in State Y based on his state of residency.

True

The Tax Code does not allow corporations to deduct as expenses excessive or unreasonable compensation to officers and employees T/F

True

The Truth in Lending Act applies only to consumer credit transactions and consumer leasing T or F?

True

The Uniform Commercial Code governs contracts for the sale of goods. True False

True

The Uniform Commercial Code is an important source of contract law for businesses in the United States. True False

True

The admission of a new partner automatically dissolves the partnership T/F

True

The agreement to purchase stock in a future corporation is a pre-incorporation subscription T/F

True

The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury. True False

True

The automatic stay is designed to protect the debtor and the creditor in a bankruptcy proceeding

True

The bankruptcy of a partner will cause the dissolution of the partnership by operation of law T/F

True

The basic purpose of bankruptcy is to allow a debtor in a difficult financial situation a fresh financial start T or F?

True

The basis purpose of bankruptcy is to allow a debtor in a difficult financial situation a fresh financial start

True

The body of law that will be used to determine which state's law will apply in a multi-state transaction is conflict of laws.

True

The bona fide occupational qualification defense may be used in claims arising under the Age Discrimination Employment Act

True

The business judgement rule protects directors who are loyal and careful from liability for business decisions that result in loss to the corporation T/F

True

The buyer attains the right to insure the goods once the goods are identified to the contract. True False

True

The capital contribution of each partner is a liability to the partnership and must be returned to the partner when the partnership ends T/F

True

The conclusion follows from the relationship between the major and minor premises. True False

True

The courts allow sexual harassment claims for both same sex and opposite sex harassment T or F?

True

The director's duty of loyalty continues after the director's resignation T/F

True

The document issued by a common carrier evidencing its receipt of goods for shipment is a bill of lading. True False

True

The dormant commerce clause refers only to laws passed by the states and not to those passed by the federal government. True False

True

The federal government may regulate any activity that "substantially affects interstate commerce" even if that activity takes place entirely within the borders of the state. True False

True

The general manager of a business will have the implied actual authority to perform duties that are not expressly authorized in the employment agreement T or F?

True

The good cause exception to employment at will is based on the conduct of the parties, especially on the conduct of the employer, during the years of employment

True

The greater the risk in a situation, the higher the duty of care. True False

True

The law in many European countries is based on codified statutes, not case precedents. Such law is classified as a civil system.

True

The limited liability partnership is often an attractive option for professional associations such as law firms, accountants and medical doctors. True/False?

True

The majority of tort cases filed in United States courts are based on negligence, not on intentional torts. True False

True

The manager of a manager-managed Limited Liability Company may be a non-member T/F

True

The manager of a manager-managed Limited Liability Company may be a non-member. True/False?

True

The party who wins at trial and must defend his win in an appellate court is called the appellee. True False

True

The primary duty of appellate courts is to determine whether the law was correctly applied at the trial level. True False

True

The principal is a fiduciary of the agent T or F?

True

The provisions of the law AND the partnership agreement govern the operations of the partnership T/F

True

The publication requirement for libel is met if the falsehood is communicated to just one other person. True False

True

The purpose of reformation is to correct the written contract to reflect the actual intentions of the parties. True False

True

The purpose of the doctrine of stare decisis is to give certainty and predictability to the law. True False

True

The purpose of the pretrial conference between the lawyers and the judge is to encourage the parties to settle the suit before trial

True

The secret formula for a soft drink is an example of a trade secret T or F?

True

The standard for issuing a search warrant is probable cause. True False

True

The statute that requires that certain contracts be in writing is the Statute of Frauds. True False

True

The statute that requires that certain contracts be in writing is the Statute of Frauds. True False

True

The victim of negligent misrepresentation may recover contract damages, but not punitive damages. True False

True

The written questions that parties to a suit send each other that are answered in writing under oath are interrogatories. True False

True

Title VII makes it illegal for an employer to sexually harass an employee in the workplace

True

Title VII protections against discrimination in employment do NOT apply to independent contractors

True

To be protected by the public policy exception to employment at will, the public policy that the employee acts to advance must usually be tied to a constitutional, statutory, or administrative law

True

To bring a suit for disparagement, the plaintiff must show specific pecuniary losses attributable to the falsehood. True False

True

To collect state unemployment insurance, a worker must be actively seeking a replacement job that is appropriate for someone with his skills, education and work history

True

To collect workers compensation an employee's injury must have occurred in the workplace or in a work-related situation

True

To hear a case, courts must have subject matter jurisdiction. True False

True

To meet the element of consideration, each party to a contract must gain a legal benefit and incur a legal detriment. True False

True

To ratify a contract, the principal must have been disclosed at the time the contract was formed T or F?

True

Tort law is a subset of private law that seeks to compensate the injured party for the loss caused by the actions of another. True False

True

Under RUPA, a partnership may take title to real life property as a tendency in partnership T/F

True

Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration. True False

True

Under the Equal Credit Opportunity Act, creditors are forbidden from making statements to applicants that would discourage them from applying for credit T or F?

True

Under the Fair Credit and Reporting Act, most information is considered obsolete after 7 years and must be purged from the files of credit reporting agencies T or F?

True

Under the Fair Labor Standards Act, covered workers are entitled to one and a half times their hourly wages for overtime

True

Under the Fair and Accurate Credit Transaction Act, victims of identity theft may file a fraud alter with consumer credit reporting companies, which would appear on their credit report T or F?

True

Under the Pregnancy Discrimination Act, pregnancies must be treated by the employer like any other medical condition that may affect an employee's status

True

Under the Uniform Commercial Code, provisions in a contract will not be enforced if they are so one-sided and unfair that the provisions are unconscionable. True False

True

Under the common law, modifications to existing contracts required new consideration from each party. True False

True

Under the family-car doctrine, any family member becomes an agent of the parent-owner while the family member is using the car T or F?

True

Use of analogical reasoning involves the comparison of the facts of the current case with the facts in previously decided cases.

True

Voluntary surrender of personal property subject to an artisan's lien generally terminates the lien. True/False?

True

When a principal files for Chapter 7 bankruptcy, all agency appointments end when the court grants an order of relief.

True

When dealing with an absolute guarantor, the creditor does not have to first attempt to collect from the debtor prior to proceeding against the guarantor T/F

True

When holders of mechanic's liens are equal in priority, and there are not sufficient funds to satisfy all their claims, they will share the funds that are available on a pro-rata basis T/F

True

When workers strike for higher wages, management may hire replacement workers and refuse to rehire the striking workers when the strike is over

True

Whether or not a doctor acted negligently is a question of fact for a jury to decide. True False

True

In a bankruptcy proceeding, the ___ is the person responsible for managing the debtor's assets and for satisfying the creditor's claims to the extent possible Debtor Creditor Interested party Trustee

Trustee

The ___ imposes duties on creditors who wish to extend credit, primarily in the area of making disclosures to potential debtors a. Sherman Act. b. Truth in Lending Act. c. Clayton Act. d. Fair Trade Act.

Truth in Lending Act

The ________ imposes duties on creditors who wish to extend credit, primarily in the area of making disclosures to potential debtors. a. Sherman Act. b. Truth in Lending Act. c. Clayton Act. d. Fair Trade Act.

Truth in Lending Act.

Deductive reasoning does not allow one to

draw conclusions from similar cased decided in the past

Mary is an Assistant District Attorney prosecuting a 26 year old defendant on drug charges. One of the potential jurors is a college- age person with green hair and multiple body piercings, whom Mary rather not have on the jury. She will use a (n) ______strike to eliminate this potential juror.

peremptory

A surety's obligation is a generally promise to do what the principal agreed to do. true/false?

true

Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be amended with the unanimous consent of the members. True/False?

true

Absent an agreement otherwise, a Limited Liability Company's operating agreement can only be amended with the unanimous consent of the members. true/false?

true

Accurate information on labels and packaging is important because consumers rely on this information when comparing products and making purchasing decisions.

true

Because the LLC is a relatively new type of business entity, there are often fewer published court opinions addressing LLC issues. true/false?

true

Co-sureties share joint and several liability to the creditor true/false?

true

If a credit gets a judgment against the creditor, and then the surety pays the creditor, the surety gets to benefit from the judgement that was obtained by the creditor. True/false?

true

If the formalities of creating a limited partnership are not met, a partnership will be treated by courts as a general partnership. true/false?

true

If the principal does not default, the surety never becomes liable to the creditor. true/false?

true

If there is diversity of citizenship, the plaintiff may file the suit in federal district court.

true

In a manager-membered LLC, an individual or small group has the authority to control and make decisions for the LLC. true/false?

true

In a memeber-managed LLC all members participate in management. true/false?

true

In the majority of states an LLC can be both formed and managed by only one member. true/false?

true

No federal law addresses workplace bullying as a form of discrimination

true

Once bankruptcy proceedings are commenced, creditors are prohibited from attempting to collect their debts.

true

One recognized advantage to a general partnership is that it allows partners to share in management and profits of the partnership.

true

Relative to corporate and partnership law there is not a comparble amount of case law involving LLCs. true/false?

true

The two types of guaranty agreements are general and special. True/False?

true

To create a Limited Liability Corporation, articles of organization must be filed with the state's Secretary of State's office. true/false?

true

Voluntary surrender of personal property subject to an artisan's lien generally terminates the lien.

true

When dealing with and absolute guarantor, the creditor does not have to first attempt to collect from the debtor prior to proceeding against the guarantor. true/false?

true

When holders of mechanic's liens are equal in priority, and there are not sufficient funds to satisfy all their claims, they will share the funds that are available on a pro-rata basis. true/false?

true

Only someone in a supervisory capacity can be liable for quid pro quo sexual harassment

tue

The judiciary has the power to do all of the following except:

Impeach the President of the United States for high crimes

A misdemeanor can be punished by

Imprisonment for up to 1 year in a local facility Imprisonment for more than 1 year in a state penitentiary

Harry has been charged with the federal crime of securities fraud which he committed while working as a stockbroker in New York City. His trial on federal criminal charges can be held

In the Federal District Court in New York

Implied authority is also known as ____________ authority.

Incidental

A principal is obligated to pay any judgements against an agent who incurred liability to a third party while carrying out the principal's orders. This duty to hold the agent "harmless" is the duty to ___ - reimburse - indemnify - compensate - account

Indemnify

The duty of the principal is to hold an agent "harmless", and to pay any judgments for which the agent becomes liable while carrying out the principal's orders, is the duty to ___ Mitigate Indemnify Protect Reimburse

Indemnify

The duty of the principal to hold an agent "harmless," and to pay any judgments for which the agent becomes liable while carrying out the principal's orders, is the duty to_______________. Mitigate Indemnify Protect Reimburse

Indemnify

Bill hired Acme Paving to pave his driveway. Acme is Bill's ___ A.Broker, B. Independent contractor, C. Factor, D. Special agent

Independent contractor

Tucker hired SoClean, a house washing service, to power wash his house and deck. SoClean's status of that of a (n) ________________________. A. Factor B. Special agent C. Independent contractor D. Proprietor

Independent contractor

When a grand jury decides there is sufficient evidence to bring someone accused of a crime to trial it issues a (n)______________.

Indictment

For crimes that are misdemeanors, the government gives the defendant notice of the charges against him in an_________________.

Information

A debtor is presumed to be ___ during the ninety-day period prior to filing the petition Insolvent. Under duress. Incapacitated. Solvent.

Insolvent

For which of the following purchases would a minor have to pay the full contract price? (select all answer options that are correct) An iPod Medicine Insurance Car

Insurance

Big 60s British Rock Star had a contract to perform at Shady Pines Retirement Home, where many of his fans now lived. Sunnydale Retirement Village, a business rival, convinced Rock Star to breach his contract with Shady Pines and perform for them instead on that day. They offered him more money and promised to pay for any liability he might have to Shady Pines. For what could Shady Pines sue Sunnydale? Nuisance Interference with a contractual relationship Breach of contract Conversion

Interference with a contractual relationship

Company A has entered into a contract to acquire Company B. Hearing of this, Company C offers to acquire Company B for more money and to indemnify the directors of Company B for any damages resulting from its breaching its contract with Company A. Company A can sue Company C for the tort of____ Breach of contract Interference with prospective advantage Trespass Interference with contractual relations

Interference with contractual relations

Assume that Big Chicken Grower (BCG) is sued in a court of equity and the court issues a temporary injunction against BCG to prevent it from discharging waste water from its processing plant into the local river. This temporary injunction is an example of a (n)_____________.

Interlocutory decree

Which of the following is not a necessary? Internet service Education Food Medical treatment

Internet service

Len, a local photographer, shot a photo of a family at the beach. Without their knowledge or consent, Len used the photo in all his ads and business cards and featured it prominently on his web page. Len has committed the tort of? Invasion of privacy Trespass to personality Negligence per se Disparagement

Invasion of privacy

A state law will be invalid if it conflicts with a federal law because of the ________Clause.

Supremacy

Which of the following statements is true about contracts in which $1 is offered as consideration? (select all answer options that are correct) $1 is accepted as consideration in contracts that transfer title to deeds. $1 is accepted as consideration if the value of the goods do not exceed $500.00 $1 is accepted in the business community as consideration for a signed option contract. $1 can never support a valid contract because it cannot be an inducement for taking on a legal detriment.

$1 is accepted as consideration in contracts that transfer title to deeds. $1 is accepted in the business community as consideration for a signed option contract.

Goods which are required for maintaining life or health are classified as? Obligatories Necessaries Sustenance Res in chose

Necessaries

Bob's Beer and Booze Barn classfies a clerk as a "managerial assistant" and assigns menial supervisory duties to this employee, that do not meet the department of labor (DOL) standards, to avoid paying overtime wages. Bob "knows" the clerk will not be aware that these new supervisory duties do not meet the requirements of the DOL and does not expect the department of labor will look into the classification if the clerk does not contest their status with the DOL. This practice is:

-Unethical and contrary to the spirit of the employment laws -Unethical and contrary to the letter of the employment laws

Hilary sold Meredith a broach that had belonged to her mother. She told Meredith, in good faith, that it was a genuine cameo from the 1880's. In fact, it was a copy manufactured in the 1980's out of polymers. Meredith can rescind the contract based on 1.Innocent misrepresentation 2.Unilateral mistake of fact 3.Fraudulent misrepresentation 4.Unilateral mistake of value

1

Only employers who have ___ or more employees are subject to the Family and Medical Leave Act - fifty - seventy - 100 - 300

50

Under Regulation Z, when a credit card is lost or stolen, the credit card holders liability for unauthorized charges is limited to ___ 100 25 50 unlimited

50

A consumer who finds an error in a credit card statement has ___ days from the time of discovery to notify the bank 30 60 65 180

60

Al, Bill, Chad and Dan were found jointly and severally liable for 100,000 of property damages caused when a fraternity initiation event got out of hand. Al, Bill, and Chad do not have the money to pay for their share of the damages. The only solvent defendant is Dan. The most that Dan will have to pay the plaintiff is? 100,000 25,000 75,000 50,000

100,000

Creditors may petition the bankruptcy court to convert a Chapter _________bankruptcy in to a Chapter __________bankruptcy. 7 into 13 11 into 7 11 into 13 13 into 11

11 into 7

To be entitled to the protection of the Family and Medical Leave Act, the employee must have worked for the employer for ___ months and the employer must have ___ employees - 24; 200 - 18; 50 - 12; 50 - 12; 10

12 ; 50

Jack and Jill have a one year contract that calls for Jack to make 4 deliveries of flour a month to Jill's bakery. The pattern of repeated deliveries under this one contract establishes 1.A business condition 2. A course of performance 3.A course of dealing 4. A usage of the trade

2

Local Delivery Service had a one year contract with Supply Co. to make four deliveries a month to Supply's customers who live across the Bay. There is only one bridge spanning the Bay for 200 miles in each direction. Without warning, the state closed the bridge to all traffic for 10 months after an inspection revealed dangerous structural problems. Local now has to travel an extra 400 miles for each of the scheduled deliveries. Local asked Supply Co. for an additional 60 per trip above the contract price and Supply Co. agreed. Under common law, is this an enforceable contract? 1. No, Local has a pre-existing duty under the contract to make the deliveries 2. Yes, the request is made in good faith for an unforeseen difficulty 3. No, Supply Co. will receive no new benefit. 4. No, Local will incur no new duty

2

Mike, a minor, sold his trail bike to Allen, an adult. Assume that Allen sold the bike to Ben Buyer, who paid cash and had no knowledge that Allen had purchased the bike from a minor. What kind of title does Ben have to the bike? 1. Voidable title if Allen exercises his right to avoid the contract with Mike. 2. Good title 3. Voidable title if Mike exercises his right to avoid the contract with Allen 4. Void title

2

Before a binding vote is held in which workers choose to unionize or not unionize, enough workers must sign authorization cards indicating that they are interested in joining the inion. What is the percentage of the work unit who must sign these cards? - ten - thirty - fifty - eighty

30

Assume that Big Drug Company BDC was one of ten drug manufactures who produced and sold in the Cleveland area a drug that was found to cause cancer in women whose mothers had taken the drug while pregnant. Plaintiff cannot find out if the pills her mother took were actually manufactured by BDC, but she does know that BDC controlled 40 percent of the market for that drug in the Cleveland area when her mother was taking it. If a jury finds that plaintiff suffered 100,000 in damages, she will be able to collect 40,000 from BDC if her state follows the doctrine of ________________. (select all the answer options that are correct) 1. Res ipsa loquitur 2.Negligence per se 3.Joint Industry Liability 4.Market share liability

4

The doctrine that creates a rebuttable presumption that a defendant was negligent based on the nature and circumstances of the injury is 1.Contributory negligence 2.Malpractice 3.Negligence per se 4.Res ipsa loquitur

4

The doctrine under which employers are liable for torts committed by employees while they are acting within the scope of their employment is___________. 1.Negligence per se 2.Res ipsa loquitur. 3.Joint and several liability 4.Respondeat superior

4

An employee must be at least ___ years of age to be protected from discrimination under the Age Discrimination in Employment Act 40 62 65 70

40

The Age Discrimination in Employment Act protects employees who are at least ___ years of age from employment discrimination 40 60 65 70

40

Res judicata is best defined as

A controversy that has been litigated and forever settled between the parties

Pat hired Mike to manage his deli, but the agency agreement did not state how much Mike is to be paid. In this situation A. Mike is a gratuitous agent until a salary is negotiated. B. The agreement is voidable by Pat. C. The agreement is voidable by Mike. D. A court will read in a reasonable salary based on comparable positions in the business community.

A court will read in a reasonable salary based on comparable positions in the business community

If an agency agreement does not state how much an agent is to be paid, what happens? - the agency agreement is void - the agency agreement is voidable by the agent, but not by the principal - the agent is assumed to be a gratuitous agent - a court will read in a reasonable amount based on the customary rate in the business community

A court will read in reasonable amount based on the customary rate in the business community

The product defect in a strict liability suit can consist in: (select all the answer options that are correct) Group of answer choices A defective design of the product The use of components imported from a foreign country instead of components manufactured in the United States A lack of adequate instructions for using the product A lack of adequate liabiity insurance

A defective design of the product The use of components imported from a foreign country instead of components manufactured in the United States A lack of adequate instructions for using the product

Apparent authority can only be created by the actions of which of the following - the agent himself - a disclosed principal - a disclosed agent - an undisclosed principal

A disclosed principal

Damages need not be proved in a defamation suit if the defamatory statement claims that: A doctor is unfit to practice medicine A person has a loathsome disease A person holds political views that he in fact does not A person is mean to his neighbors

A doctor is unfit to practice medicine. A person has a loathsome disease.

The Principal and Agent have ___ relationship with each other - an arms length - a statutory - a fiduciary - an equitable

A fiduciary

When a servant completely abandons the master's work to pursue his own interests, the servant is on ___ - a detour - an outing - a trespass - a frolic

A frolic

Consideration in a bilateral contract always involves both? A legal benefit and a legal detriment A legal detriment and a legal impediment A legal waiver and a legal renunciation A legal benefit and a legal waiver

A legal benefit and a legal detriment

Which of the following is NOT an example of a trade secret - a business's marketing plans for the next five years - a list of customers that was published in an ad in a trade journal - the formula for a compound used in a manufacturing process - the responses of a focus group to a company's product that have been gathered and analyzed

A list of customers that was punished in an ad in a trade journal

All of the following are considered advantages to a Limited Liability Partnership, except: A. A limited liability partner is always insulated from personal liability of he or she commits malpractice. B. A limited liability partner can avoid personal liability for partnership debts. C. The limited liability partnership can function much like a general partnership, without the same risks of personal liability as a general partnership. D. Partnership proceeds may "pass through" the partnership for income tax purposes.

A. A limited liability partner is always insulated from personal liability of he or she commits malpractice.

Which of the following statements about promoters is true? A. A promoter is allowed to sell property he owns to the corporation if the sale is approved by the board of directors after full disclosure. B. A promoter is allowed to accept a commission from a third party whose property he sells to the corporation. C. A promoter cannot be held liable on pre-incorporation contracts with third parties. D. A Promoter is an agent of the corporation even before the corporation comes into existence.

A. A promoter is allowed to sell property he owns to the corporation if the sale is approved by the board of directors after full disclosure.

Subchapter S corporation will avoid double taxation if which of the following applies? A. All the shareholders agree to be taxed as in a partnership B. The corporation files Articles of Partnership in the state where it has its principal place of business C. The corporation has no retained earnings D. All of the above

A. All of the shareholders agree to be taxed as in a partnership

A(n) ___ is a legal proceeding accompanying an action in court by which a plaintiff may acquire a lien on a defendant's property as a security for the payment of any judgement that the plaintiff may recover A. Attachment. B. Sheriff's sale. C. Meeting of creditors. D. Discharge in bankruptcy.

A. Attachment

Under the "pass through" principle, a business entity ... A. Avoids double taxation B. Assigns assets of the business to a receiver. C. Delegates duties of the business to a subcontractor D. Conducts high risk activities through a subsidiary.

A. Avoids double taxation

A shareholder who dissents from a merger is entitled to ... A. Be paid the fair value of her stock B. Revoke her dissent within 10 days of the stock appraisal C. Sue the board of the surviving corporation in a derivative suit. D. All of the above are shareholder rights.

A. Be paid the fair value of her stock

State statutes that govern the sale of investment securities within the state are known as ___ laws A. Blue Sky B. Red Herring C. Asset Protection D. Investment Trust

A. Blue sky

The rules that govern the corporation, including the number of directors it will have, the method of electing directors, the time and place of shareholder meetings, etc., are found in the corporation's ___ A. By laws B. Articles of incorporation C. Charter D. State incorporation code

A. By laws

The court order directing that the share of profits due a partner be given to his or her creditor to satisfy a judgement is a ___ order A. Charging B. Marshaling C. Accounting D. Collection

A. Charging

A surety owns a ___ to the principal for any profits obtained after the surety performs A. Duty to Account B. Debt C. Thank you note D. ice cream

A. Duty to Account

A "certificate of limited partnership" is a document that is A. Filed with the state Secretary of State by the limited partnership as part of its application process. B. Issued by the IRS to acknowledge a limited partnership's tax status. C. Issued by the limited partners jointly to the general partner. D. Issued by the general partner to the limited partners.

A. Filed with the state Secretary of State by the limited partnership as part of its application process.

Which of the following usually provides an investor the least protection from personal liability for the debts of the business? A. General Partnership B. Limited Partnership C. LLC D. Corporation

A. General partnership

The merger of two businesses in the same field that reduces the number of competitors is a ___ merger A. Horizontal B. Vertical

A. Horizontal

Three major U.S. banks have launched a service to process online electronic payments, creating in the process a major competitor of PayPal's. If the banks were to buy out PayPal in the future, this would constitute a ___ merger A. Horizontal B. Vertical C. Market product extension D. Conglomerate

A. Horizontal

Which business entity has the following characteristics: an informal association of two or more persons that is formed to accomplish a single business transaction? A. Joint venture B. Limited partnership C. Professional association D. General partnership

A. Joint venture

Which of the following statements about the limited partner in a limited partnership is false? A. Limited partners may participate fully in the management of the partnership. B. There must be at least one limited partner. C. Limited partners must approve any changes to the partnership agreement. D. Limited partnerships that invest in real estate are typically good tax shelters for the limited partners.

A. Limited partners may participate fully in the management of the partnership

An LLC that is managed by one or more of the owners is a ____________________LLC. A. Member-managed B. Manager-managed C. Proprietary D. Subchapter S

A. Member managed

Which of the following is not an advantage of a general partnership? A. Partners have limited liability for the debts of the partnership B. The costs to form a partnership are minimal. C. All partners have equal management rights. D. All of the above are advantages of a general partnership.

A. Partners have limited liability for the debts of the partnership

All of the following could be accurate statements about a general partnership, except: A. Partnership liabilities in a general partnership are limited to the amount of capital contribution. B. Partners can share in management of the partnership. C. Partners can share partnership profits. D. The general partnership allows for quick, easy and immediate control.

A. Partnership liabilities in a general partnership are limited to the amount of capital contribution.

When a corporation dissolves, holders of ___ stock have priority in the distribution of corporation assets A. Preferred B. Common C. Treasury D. Participating

A. Preferred

Why are corporations said to have a burden of "double tax"? A. Profits are taxed at the corporate level as income and again at the shareholder level as dividends B. Corporations are taxed at both the state and federal level. C. Corporations must file federal tax returns twice a year because their taxing period runs for only six months D. Corporations compute their federal tax liability by multiplying their state tax liability by two.

A. Profits are taxed at the corporate level as income and again at the shareholder level as dividends

What happens when a court pierces the corporate veil? A. Shareholders become personally liable for the debts of the corporation. B. The court revokes the corporate charter. C. The promoter becomes liable for the debts of the newly formed corporation D. The court requires that the corporation be more substantially capitalized.

A. Shareholders become personally liable for the debts of the corporation

Which of the following statements about the rights and duties of shareholders is false? A. Shareholders have virtually unrestricted access to corporate books and records B. Majority shareholders may have fiduciary duties to minority shareholders in closely held corporations. C. Shareholders must approve changes to the corporate charter. D. Shareholders are entitled to notice of the annual meeting and all special meetings.

A. Shareholders have virtually unrestricted access to corporate books and records

A partner who does not participate in the management of the partnership is a ___ partner A. Silent B. Dormant C. Secret D. Senior

A. Silent

The certificate issued by a corporation that gives the owner the right to buy a stated number of shares at a stated price is a ___ A. Stock warrant B. Charter C. Stock certificate D. Proxy statement

A. Stock warrant

A ___ provides security for a creditor without involving an interest in the property, where the security for the creditor is provided by a third person's promise to be responsible for the debtor's obligation a. Suretyship. b. Artisan's lien

A. Suretyship

In a successful derivative suit, any money awarded in the judgement will go to ... A. The corporation B. The plaintiff shareholder C. The plaintiff shareholder and the corporation will share the money equally. D. There can be no award of money because only equitable remedies are available in derivative suits.

A. The corporation

Which of the following are not grounds for a state canceling a corporation's charter? A. The corporation has not made a profit in 3 years. B. The corporation did not pay its franchise tax C. The corporation failed to maintain a registered agent in the state. D. The corporation has not performed any corporate functions for a long time.

A. The corporation has not made a profit in 3 years

A document that an LLC must submit to the secretary of state's office prior to doing business is ______. A. The Operating Agreement. B. A Partnership Agreement. C. The Articles of Organization. D. A Security Interest Filing.

A. The operating agreement

Which of the following statements about treasury stock is false? A. Treasury stock can be resold only at par value. B. It is stock that the corporation acquired by gift or by purchasing from shareholders. C. Most states require that corporations purchase treasury shares only with accumulated profits or surpluses. D. Creditors of the corporation or the state itself may block the purchase of treasury stock.

A. Treasury stock can be resold only at par value

The Articles of Incorporation for ABC Corporation specifically forbids the corporation from making personal loans to its officers or directors. Despite this, the board approved a personal loan to the President of the corporation. This action by the board is ___ A. Ultra vires B. Peremptory C. A Malum in se D. A Malum prohibitum

A. Ultra Vires

A(n) _______ is a legal proceeding accompanying an action in court by which a plaintiff may acquire a lien on a defendant's property as a security for the payment of any judgment that the plaintiff may recover. A. Attachment. B. Sheriff's sale. C. Meeting of creditors. D. Discharge in bankruptcy.

A. attachment

Jason has filed suit against Luke claiming $50,000 in damages. While the claim is being litigated, Jason can ask the court for a writ to seize property belonging to Luke which could be used to satisfy a judgment. The seizure prevents Luke from selling or otherwise disposing of the property during the proceedings. The writ Jason will ask for is a writ of________________. A. Attachment B. Attainder C. Execution wrong D. Garnishment wrong

A. attachment

A surety owes a _______ to the principal for any profits obtained after the surety performs. A. Duty to account. B. Debt. C. Duty to discharge. D. Percentage interest.

A. duty to account

A surety has no obligation to the creditor unless the principal _______. A. Fails to perform. B. Fulfills his or her contractual obligations. C. Voids the contract. D. Assigns the contract.

A. fails to perform

An LLC in which non-owners are hired to run the day to day activities of the firm is a ______LLC. A. Member-managed B. Manager-managed C. Proprietary D. Subchapter S

A. member managed

A _______ provides protection against losses that may result from the failure of a contracting party to perform the contract as agreed. A. Performance bond. B. Foreclosure sale. C. Finance agreement. D. Payment schedule.

A. performance bond

Trial witnesses cannot be sued for defamation because the testimony of witnesses in trial is protected by? Immunity Qualified privilege Judicial exception Absolute privilege

Absolute privilege

Under the BAPCPA, Congress instituted a mechanism to reduce the ___ of Chapter 7 bankruptcy filings Legality. Accessibility. Abuse. Cost.

Abuse

The Fair Debt Collection Practices Act prohibits debt collectors from participating in _______ a. all debt collection activities b. Abusive and deceptive behaviors c. Collection of small or insignificant debts. d.Judicial debt collection procedures.

Abusive and deceptive behaviors

The purposes of nominal damages is to? Determine beforehand the damages to be paid if there is a breach of the contract, Punish and make an example of the breaching party. Acknowledge that a right has been violated even though no monetary loss. resulted Compensate the non-breaching party for the loss of the benefit of the bargain.

Acknowledge that a right has been violated even though no monetary loss resulted.

Juries use the "but for" test (i.e. "but for the negligent act of the defendant would the plaintiff have been injured") to decide if the requirement of __________________is met. Probable cause Proximate cause Actual cause Reasonable cause

Actual Cause

Alan is the general manager of a restaurant. Although not mentioned in his employment contract, as part of carrying out his management duties he has the authority to buy supplies, hire employees, put ads on the radio, engage a cleaning service, pay bills, etc. These duties are expressions of his ___ authority A. Actual express, B. Actual implied, C. Actual apparent, D. Constructive implied

Actual implied

Which of the following unsecured creditors has first priority when the assets are distributed in a Chapter 7 bankruptcy? Administrative expenses Wages, salaries and commissions Wrongful death or personal injury awards against the debtor for accidents caused by the debtor's wrongful use of alcohol or drugs. Alimony, child support and other domestic support claims.

Alimony, child support and other domestic support claims

How could a private employer institute a voluntary minority racial preference plan without violating Title VII? - If it is for a limited time - If it opens employment opportunities to racial minorities in jobs from which they were traditionally excluded - If it does not eliminate or unnecessarily restrict the hiring of white candidates - All of the above

All of the above

John, who is employed by a private business, was injured on the job. How will OSHA learn of the job safety violation that caused his injury? - John may report his injury directly to OSHA. - John's employer must report his injury to OSHA. - OSHA may conduct an inspection of John's worksite. - All of the above

All of the above

Rhonda Realtor was hired to find Client an undeveloped lot that met the following requirements: the lot must be in the mountains, on a pristine lake, consist of at least 10 acres, and be available for no more than $500,000. Rhonda found a property that met all these requirements for only $425,000. Enchanted, she bought the property for herself. She did not tell Client about her find and is still diligently seeking another property that meets Client's needs. Which, if any, agency duties has Rhonda violated? - Duty of loyalty - Duty to inform - Duty to obey instructions - all of the above

All of the above

To be eligible for Chapter 13, an individual must ... Have a regular income Have unsecured debts of $336,900 or less Complete the mandatory consumer creditor counseling class all of the above

All of the above

What happens if an agent acts outside the scope of his or her authority when negotiating a contract? a. The agent loses the right to reimbursement b. The agent loses the right to indemnification c. The agent becomes personally liable on the contract to the third party d. All of the above

All of the above

What must a worker do to be eligible for unemployment compensation? - She must have been employed for a specified period of time. - She must be actively looking for another job - She must not have been fired for egregious behavior in the workplace - All of the above

All of the above

Which of the following is not an element of ratification? The principal was fully disclosed at the time the contract was formed. The principal is aware of all of the terms of the agreement The third party has not withdrawn from the contract All of the above are requirements for ratification

All of the above

Which of the following statements about unemployment compensation is true? - An employee must have worked for a minimum amount of time to qualify. - Employees who quit without good cause are ineligible for benefits. - Employees who were fired for cause are ineligible for benefits. - All of the above

All of the above

Which of the following would constitute a "taking" of personal property by the government? A forced sale of land to construct a highway The rezoning of an area so that formerly permitted uses of the property are lost. The fire department burning down a warehouse to create a firebreak to keep a blaze from spreading. All of the above are "takings"

All of the above are "takings"

An important step in the application of the legal reasoning process is ____. Identifying the general area of the law Determining the relevant facts Deciding the specific legal rules applicable to the facts All of the above are important steps in the legal reasoning process

All of the above are important steps in the legal reasoning process

Which of the following statements about white collar crime is true? Businesses are hesitant to prosecute criminal employees because it is bad for the image of the business. Judges don't often impose jail time because the crimes are non-violent. Businesses often think of the losses as a cost of doing business. All of the above are true statements.

All of the above are true statements.

Courts may use which of the following to interpret the meaning and purpose of a piece of federal legislation? Rules of statutory interpretation Minutes of committee hearings The entire legislative history of the act All of the above may be used by the courts.

All of the above may be used by the courts.

Another term for ostensible authority is _______________ authority. a. Apparent b. Incidental c. Express d. Constructive

Apparent

The party who lost at trial and files an appeal is called the ____________.

Appellant

Ethical standards are often the basis for statutes and judicial decisions ____ .

As a reflection of society's views of right and wrong

The filing of the petition by a debtor triggers an ________, which has the effect of suspending almost all actions by creditors against the debtor. a. Voluntary dismissal. b. Automatic stay. c. Express written waiver. d. Notice of default.

Automatic stay

The legal status of a contract entered into by a minor is ___________. Avoidable by either the minor or the other party to the contract Avoidable only by the minor Void Valid

Avoidable only by the minor.

Smith's Inc. is a closely held corporation in which Joe Smith is the President and owns 80% of the corporation's stock. The corporation was undercapitalized when it was formed, and for the past seven years Joe has regularly taken funds from the corporate account to pay his own personal expenses and debts. Should Smith's Inc. not have sufficient funds to pay a creditor, the creditor may hold Joe personally liable for the corporation's debt under the ___ theory A. Ultra vires B. Alter ego C. Oppressive conduct D. Investment trust

B. Alter ego

In a manager-managed LLC ___________. A. No one member of the LLC has authority to make business decisions on behalf of the LLC.?? B. An individual or small group has the authority to control and make decisions for the LLC. C. All members of the LLC participate equally in business decisions. D. The authority of the members of the LLC to make decisions is directly proportionate to the amount their capital contribution.

B. An individual or small group has the authority to control and make decisions for the LLC.

The purpose of a buy and sell agreement is to ... A. Create a trading partnership B. Arrange for the evaluation of the business and the method for financing the purchase of a withdrawing or deceased partner's interest. C. Determine the compensation for partners who manage the business. D. Set guide lines for selling the goodwill of the business.

B. Arrange for the evaluation of the business and the method for financing the purchase of a withdrawing or deceased partner's interest

If a plaintiff shareholder cannot show that a director's decision was made in violation of his duties of loyalty or care, the court will allow the decision to stand under the ___ rule A. Entire fairness B. Business judgement C. Corporate governance 0% D. Unocal

B. Business judgement

The party who loses at trial and brings an appeal is called the appellee. A. True B. False

B. False

Which of the following is not required for a foreign corporation to get a certificate of authority to do business? A. File a copy of its Articles of Incorporation with the secretary of state. B. File a copy of its bylaws with the secretary of state. C. Have a registered agent and registered office for service of process D. All of the above are required.

B. File a copy of its bylaws with the secretary of state

___ is a proceeding by which a plaintiff seeks to reach the assets of the defendant that are in the hands of a third party A. Writ of Execution B. Garnishment C. Notice of lien D. Co surety

B. Garnishment

Which business entity is defined as "an association of two or more owners who carry on as co-owners a business for profit?" A. Proprietorship B. General partnership C. Subchapter S corporation D. Limited Liability

B. General partnership

The usual procedure for a party seeking to perfect a mechanic's lien to file or record a ___ in the office of the county in which deeds to real estate are recorded A. Co-surety B. Notice of lien C. Mechanic's lien D. Writ of Execution

B. Notice of lien

The merger that creates the greatest number of antitrust issues is a ___ merger A. Conglomerate B. Horizontal C. Market extension D. Vertical

B. Horizontal

States give corporations many rights, among them is the right to sue and the right to own property in the corporation's name. What do such legal rights collectively constitute for a corporation? A. Goodwill B. Legal capacity C. Business identity D. Competitive advantage

B. Legal capacity

Partnership agreements often fund the purchase of a deceased partners' partnership interests with... A. Distributions of retained earnings B. Life insurance policies C. Levies on partnership interests D. Partner advances

B. Life insurance policies

All of the following could be recognized as advantages of doing business as a limited partnership, except: A. A limited partnership allows limit partners to be liable only to the extent of their capital contribution. B. Limited partners can actively share in management of the partnership, without incurring the risks of business liabilities. C. Limited partners can invest in a partnership while effectively protecting their personal assets. D. A Limited Partnership is often a convenient and attractive option to investors.

B. Limited partners can actively share in management of the partnership, without incurring the risks of business liabilities.

All of the following are considered advantages of doing business as an LLC, except: A. The LLC insulates its members from personal liabilities for the debts of the business. B. Members of the LLC may lawfully avoid filing personal tax returns with the IRS. C. The LLC can function much like a general partnership, while avoiding many of the risks of a general partnership. D. The LLC can provide its members voting rights that are proportionate to the members' capital contributions.

B. Members of the LLC may lawfully avoid filing personal tax returns with the IRS.

Allfam is a closely held family corporation, many of whose shareholders are employees of the corporation. In an attempt to reduce its taxes, Allfam paid its shareholder-employees enormous salaries and deducted the salaries as a corporate expense. Is Allfam permitted to do this? A. Yes, this is a legitimate way for closely held corporations to reduce their taxes. B. No, the IRS will disallow the deductions for unreasonably high salaries and tax them as dividends. C. No, the shareholder-employees will have do return the excess portion of their salaries to the corporation. D. No, the IRS will disallow the deductions for this year, but will allow the corporation to treat them as carry-forward losses for next year.

B. No, the IRS will disallow the deductions for unreasonably high salaries and tax them as dividends.

Which of the following statements about the taxation of corporations is false? A. Premiums paid for employee health insurance plans are fully deductible. B. Profits retained by the corporation are normally taxable to the shareholders under the corporate pass through rule. C. Salaries paid to employees are deductible expenses for the corporation. D. Most states impose license fees or franchise taxes on corporations doing business in the state.

B. Profits retained by the corporation are normally taxable to the shareholders under the corporate pass through rule

States have the power to cancel or revoke the charters of corporations that engage in illegal activities. These forfeiture hearings are called ___ proceedings A. Divestiture B. Quo warranto C. Ultra vires D. Appraisal

B. Quo warranto

What is the purpose of the pre-trial conference in a civil case?

B. Settle a case without having to go to trial

ABC Corporation has been dissolved. After paying all its creditors, ABC will make a cash distribution to its shareholders. Of the following, which shareholders will have priority in the distribution? A. Shareholders who own un-exercised warrants. B. Shareholders who own preferred stock C. Owners of common stock who had title to the shares 180 days before the last ex-dividend date. D. All current owners of common stock.

B. Shareholders who own preferred stock

A ________ is a party who limits his or her promise to a single transaction or to a single creditor. A. General guarantor. B. Special guarantor. C. Creditor. D. Obligee.

B. Special guarantor

Instead of giving shareholders a cash dividend, ABC Corporation gave each shareholder 2 shares of a new stock issue for each share of stock the shareholder already owned. This is an example of a ___ A. Super Delegate Dividend B. Stock Dividend C. Stock Split D. Stock Subscription

B. Stock Dividend

A partnership need not give public notice of its dissolution if the dissolution was caused by ... A. The death of a partner B. The bankruptcy of a partner C. The wrongful withdrawal of a partner D. The expiration of the partnership's term of years.

B. The bankruptcy of a partner

A _________ is the voluntary relinquishment of the right to a mechanic's lien before a notice of lien is filed. A. Satisfaction and accord. B. Waiver. C. Collection proceeding. D. Confessed judgment.

B. waiver

The ___ consists of all legal or equitable interests of the debtor in property Account receivable. Court registry. Bankruptcy estate. General ledge

Bankruptcy estate

The Fair Packaging and Labeling Act mandates that ___ be included in the labeling and packaging of most products Nutritional information. Basic information. Chemical composition. Cost of production.

Basic Information

To be subject to the Age Discrimination in Employment Act, what must an employer do? - Be engaged in interstate commerce and have at least twenty employees. - Be engaged in interstate commerce and have at least forty employees - Be engaged in either intrastate or interstate commerce and have at least forty employees - Be organized as a corporation or limited liability company and have at least forty employees

Be engaged in interstate commerce and have at least 20 employees

Stock that a corporation buys back from its shareholders is treasury. Most state corporation statutes require that the money to repurchase shares come from ... A. A new issue of preferred shares B. A special stock subscription C. Accumulated profits or surplus D. A new issue of debt instruments

C. Accumulated profits or surplus

Carla was the agent for Newco, a New York company that wanted to relocate its corporate offices to New Jersey. Carla was given the authority to purchase 600 acres of New Jersey farmland, but was not allowed to tell the sellers that she represented Newco. She was only allowed to say that she represented an out-of-state corporation. After the contracts were signed, Newco's board decided not to relocate and wants to rescind the contracts. Which of the following statements is true about the liability of the parties? A. Carla has no personal liability on the contracts because she was acting within the scope of her authority., B. Carla is personally liable on the contracts, but Newco must indemnify her because she was acting within the scope of her authority., C. Newco is liable to the sellers on these contracts because Carla was acting within the scope of her employment., D. Both b and c are true.

Both B and C are true

An employee who commits a tort while acting in the scope of his or her employment .. A. Has no liability to the injured third party because of the doctrine of respondeat superior B. Is entitled to be indemnified by the principal if the tort was committed by following the principal's instructions C. Has joint and several liability with the principal to the injured party D. Both b and c

Both B and C:

Cashing a check marked "paid in full" will create an accord and satisfaction only if: (select all answer options that are correct) Both parties know that the amount of the debt is in dispute. The debt is unliquidated The debt has been sold to collection agencies The original contract is in writing

Both parties know that the amount of the debt is in dispute. The debt is unliquidated.

In the appeals process, the document submitted by each side arguing the points of law that support its claim that the verdict should or should not be overturned is an _____________________.

Brief

Traditionally landowners owe the highest duty of care to? Trespassers Business invitees Invited guests Family members

Business invitees

The legal principle that assumes that directors act with due care and in the good faith belief that their actions are in the best interests of the corporation is the ___ rule

Business judgement

Which of the following is true about goods sold under a sale or return contract? Seller has the risk of loss during the return shipment of the goods. Seller has the risk of loss until the goods are sold by the buyer. Buyer's creditors have a claim to the goods while they in Buyer's possession The goods must be used as consumer goods.

Buyer's creditors have a claim to the goods while they in Buyer's possession

Ben is suing Chad in a tort action for property damages and personal injuries he sustained when Chad negligently ran a red light and crashed into him in a busy intersection. Ben must convince the jury that the light was red and that his injuries were caused by the crash. How convinced must the jurors be that Chad is at fault in order to find him liable?

By a preponderance of the evidence

Delores is suing the CEO of a corporation in a civil suit for securities fraud, which she claims he committed in the initial public offering of his company's stock. What is the burden of proof Delores must meet to prove securities fraud?

By clear and convincing evidence

Phil has a partnership interest in Best Bike. He has been denied access to the books and records and he suspects that one of the partners is engaging in secret business transactions using partnership funds. Phil wants to know the status of the business. Phil should request an ___ A. Charging order B. Marshalling order C. Accounting D. Decree of insolvency

C. Accounting

John was a limited partner in Commercial Properties Limited. When the general partner became ill, John took over all the management duties of Commercial Properties. Ace Office Equipment, a supplier of Commercial Properties, is suing Commercial Properties over several months of unpaid bills. Under modern laws governing the operation of limited partnerships, which of the following statements best describes John's personal liability for Commercial's debt to Ace Office Equipment? A. Ace can hold John personally liable for Commercial's debt because he is a limited partner in the business. B. Ace can hold John personally liable for Commercial's debt because he assumed management of Commercial. C. Ace can hold John personally liable for Commercial's debt only if Ace knew that John had taken over the management duties. D. Under no circumstances can John be liable beyond his capital contribution.

C. Ace can hold John personally liable for Commercial's debt only if Ace knew that John had taken over the management duties

In a _______, a creditor must have made reasonable but unsuccessful attempts to collect from the principal before the guarantor can be held liable. A. Absolute guaranty. B. Unconditional guaranty. C. Conditional guaranty. D. Satisfaction guaranty.

C. Conditional guaranty

A surety is liable to the creditor as soon as the principal ___ a. Enters into the contract. b. Makes an initial payment. c. Defaults. d. Files for bankruptcy.

C. Defaults

Frank is a seller of imported pottery. To induce a new wholesaler to sell him goods on credit, Frank and his brother Ed told the wholesaler that Ed was a partner in the business. In fact, Ed had no partnership interest and Frank was a sole ___ A. The complicity theory B. Vicarious liability C. Estoppel D. Respondeat superior

C. Estoppel

Frank is in the business of selling imported pottery. To induce a new wholesaler to sell him goods on credit, Frank and his brother Ed told the wholesaler that Ed was a partner in the business. In fact, Ed had no partnership interest and Frank was a sole proprietor. Ed now has liability to the wholesaler based on ___ A. The complicity theory B. Vicarious liability C. Estoppel D. Respondeat superior

C. Estoppel

Pearl sued Sam and was awarded a judgment against him for $50,000. Sam has a savings account with First Bank that can be seized in partial satisfaction of the judgment. The writ the court will use ordering First Bank to turn over to it the funds in Sam's account is a writ of____________. A. Attainder B. Attachment C. Garnishment D. Execution

C. Garnishment

In which of the following business forms are profits taxed at both the entity level and the owner level? A. LLC B. Limited Partnership C. General corporation D. LLP

C. General corporation

If a partnership agreement does not say how losses will be shared, they will be shared ... A. Equally among the partners B. Proportionately according to the capital contribution of each partner C. In whatever way the profits are shared. D. Equally among those partners who have not made loans to the partnership

C. In whatever way the profits are shared

Jim and Fred had been equal partners in J and F industries for 20 years. Jim has died and Fred is now in the process of winding up the partnership. Which of the following statements about the winding up process is false? A. Fred is entitled to compensation for winding up the business. B. Jim's estate is entitled to an accounting C. Jim's estate is entitled to participate in the winding up process. D. If there are not enough assets in the partnership to pay off all the debts, Jim's estate will be liable for one half of the losses.

C. Jim's estate is entitled to participate in the winding up process

In an action alleging securities fraud, the burden of proof on the plaintiff is

Clear and convincing evidence

Which of the following abbreviations would NOT be used by a professional corporation as a required part of its name? A. S.C. B. PC C. LLC D. Inc.

C. LLC

Which business entity has the following characteristics: owners are normally professionals engaged in selling their services; owners have both limited liability for the debts of the entity and limited liability for the contracts and torts of the other owner-professionals; the entity is organized under state law; profits are taxed only at the owner level? A. General partnership B. Limited partnership C. Limited Liability Partnership D. Limited liability company

C. Limited Liability Partnership

Megan has joined Alliance Partners, making a 50,000 capital contribution. Alliance has been in business for 10 years and Megan is worried about her liability for pre-existing debts. Which statement best describes her liability for the debts Alliance had when she joined the partnership? A. Megan has unlimited personal liability and her entire capital contribution may be used to satisfy the debts. B. Megan has unlimited personal liability, but her capital contribution cannot be used because it is new money. C. Megan has no personal liability for the debts, but her entire capital contribution may be used to satisfy them. D. Megan has no personal liability for the debts and her capital contribution cannot be used to satisfy old debts.

C. Megan has no personal liability for the debts, but her entire capital contribution may be used to satisfy them

Which of the following statements about the operation of a member-managed LLC is false? A. Articles of organization must be filed with the state as part of the application process. B. The application must state that it is to be a member-managed LLC. C. Only the managing members have access to the books and records of the LLC D. Any member of the LLC may bind the LLC on a contract.

C. Only the managing members have access to the books and records of the LLC

The prerogative of existing shareholders to buy new issues of stock in the same proportion as their current holdings is their ___ right A. Criminal B. Ultra vires C. Preemptive D. Peremptory

C. Preemptive

Bob, Sue and Jim were classmates in medical school who formed a professional corporation to practice medicine. Which of the following statements about their professional corporation is false? A. Their practice will have to include some designation of its status, such as "S.C." or "P.C." in its name. B. They will be eligible for a tax-advantaged pension plan. C. They will be protected from suits for medical malpractice D. Bob, Sue and Jim may have special legal protections against discrimination as shareholder-employees of the professional corporation.

C. They will be protected from suits for medical malpractice

Bob and Sue, who are both attorneys, agreed to share office space and other overhead expenses in order to save money. They did not agree to form a partnership. They do not share profits or losses and neither has a say in the management of the other's business. The sign outside their door, and on their common letterhead, reads: "Bob Smith and Sue Jones, Attorneys at Law." Using this stationary, Bob purchased office equipment from Smart Buy. Sue at no time used the equipment and did not enter into the contract with Smart Buy. Bob did not pay for the equipment and Smart Buy wants to hold Sue liable. Is Sue liable as a partner for this purchase? A. Yes, allowing her name to be used with Bob's in the same letterhead created an express partnership. B. Yes, allowing her name to be used with Bob's in the same letterhead created an implied partnership C. Yes, allowing her name to be used with Bob's in the same letterhead created a partnership by estoppel D. No, there was no sharing of profits or losses or management rights so there was no partnership.

C. Yes, allowing her name to be used with Bob's in the same letterhead created a partnership by estoppel

Paul sued Dan and won a $90,000 judgment against him. Paul has identified property belonging to Dan that would be used to satisfy the judgment. The order the court will give to the sheriff instructing him or her to seize and sell Dan's property is a writ of ________________. A. Attachment B. Garnishment C. Execution D. Expropriation

C. execution

A surety is liable to the creditor as soon as the principal ________. A. Enters into the contract. B. Makes an initial payment. C. Files for bankruptcy D. Defaults

C. files for bankruptcy

Mary is an Assistant District Attorney prosecuting a 26 year old defendant on drug charges. She learns that one of the perspective jurors is a friend and neighbor of the defendant's family. She will use a (n)_____________________strike to eliminate this potential juror.

C. for cause

Any third party who promises a creditor to be liable for a principal's payment is either a surety or _________. A. Obligee. B. Guarantor. C. Principal Debtor D. Obligor.

C. principal debtor

Megan agreed to act as a surety on a personal loan First Bank made to Arthur. When Arthur defaulted on the loan, Megan paid off the loan obligation. Megan now has the right of ________ against Arthur. A. Contribution B. Indemnification" C. Reimbursement D. Subrogation

C. reimbursement

A ________ promises to be liable to the creditor only in the event that the surety refuses to perform and thereby defaults. A. Debtor. B. Co-surety. C. Subsurety. D. Obligee.

C. subsurety

All property other than land is classified as: (select all the answer options that are correct) Res ownership Res personam Chattel General intangibles

Chattel

The legal classification for all property that is not real property is ________________. General intangibles Res in se Contraband Chattel

Chattel

A creditor's right to payment in a bankruptcy case is a ___ Discharge Claim Debt Security interest

Claim

A power unique to the President is to serve as ________________.

Commander-in-Chief

Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. There was a time is of the essence clause in Bill's contract with Famous Restaurant. Bill was to lose 300day for each day after the contract date that he was late in finishing the renovation. The 300 day represented the profit Famous Restaurant would lose each day it was not in operation. Bill told Carl about this clause, impressing on Carl the need for him to deliver the carpet on time. Bill finished the renovation three days after the contract date. The delay was due solely to Carl's failure to deliver the carpet on time. Bill can recover the 900 he lost from Carl as ___________ damages. Liquidated Punitive Nominal Consequential

Consequential

Frank and Joe agree that they will break into and steal money and goods from Local Liquor Store on Sunday at 3:00 a.m. Frank buys some tools to force open the back door. Before they actually break into the store, however, the police catch them. Frank and Joe can be charged with which of the following crimes?

Conspiracy

An employee who quits a job because the employer created an intolerable work environment has a cause of action under Title VII for which of the following? - Disparate impact discrimination - Gross negligence - Constructive discharge - Invasion of privacy

Constructive discharge

In cases involving extensive injuries and a solvent or insured defendant, attorneys will be paid a percentage of the award if the case is successful. Fees structured this way are called _________fees. Shared Deferred Participatory Contingent

Contingent

Under which doctrine will a plaintiff who contributed to his or her own injuries recover nothing from a negligent defendant? Contributory negligence Modified comparative negligence None of the above: an injured plaintiff will recover some amount in any case in which defendant's negligence is proved. Pure comparative negligence

Contributory negligence

Which of the following are affirmative defense in a negligence suit? (select all the answer options that are correct) Contributory negligence Pure comparative negligence Modified comparative negligence Strict negligence

Contributory negligence Pure comparative negligence Modified comparative negligence

Tom took Ann's 125 Economics text from her locker without her knowledge and sold it back to the college bookstore, keeping the profits. Tom has committed the tort of..... Conversion Trespass to chattel Embezzlement Nuisance

Conversion

WireCo manufactures different types of electrical wires used in the building industry, and CopperCo has been one of its major suppliers for over ten years. If a court had to construe a contract between WireCo and CopperCo, it could use this ten year history of business transactions as evidence of? Course of performance Course of dealing Usage of trade Commercial reasonableness.

Course of dealing

Which of the following is not a category of private law?

Criminal law

The belief that the law reflects the biases of a ruling class is a foundation of the ____ school of legal thought.

Critical Legal Studies

Which of the following best describes the "double taxation" on corporate profits? A. The profits of a corporation are taxed at twice the rate of the highest individual tax rate. B. The income an individual gets from dividends is taxed at twice the rate of the income he gets from wages. C. The IRS is twice as likely to audit returns with dividend income as it is to audit returns with income from wages only. D. Corporations pay taxes on the profits they distribute to the shareholders as dividends, and shareholders pay taxes on the same dividends

D. Corporations pay taxes on the profits they distribute to the shareholders as dividends, and shareholders pay taxes on the same dividends as a personal income

Tom was the minority shareholder in a closely held corporation. Despite massive profits, no dividends were ever declared. The corporation did, however, pay extremely large salaries and bonuses to the officers of the corporation, who were also the majority shareholders. The majority shareholders of this corporation are guilty of ___ A. Ultra vires acts B. Quo warranto acts C. Oppressive conduct D. Embezzlement

D. Embezzlement

A person who becomes a partner by estoppel ... A. Has the right to share in the profits earned by the partnership B. Has the right to share in the day to day management of the partnership C. Has the right to veto any decision where unanimous consent is required D. Has no partnership rights, only liability to creditors who believed he was a partner.

D. Has no partnership rights, only liability to creditors who believed he was a partner

Which business entity has the following characteristics: owners are normally professionals engaged in selling their services; owners have both limited liability for the debts of the entity and limited liability for the contracts and torts of the other owner-professionals; the entity is organized under state law; profits are taxed only at the owner level? A. General partnership B. Limited partnership C. Limited Liability Partnership D. Limited Liability Company

D. Limited Liability Company

Which business entity has the following characteristics: owners are normally professionals in selling their services; owners have both limited liability for the debts of the entity and limited liability for the contracts and torts of the owner-professionals; the entity is organized under state law; profits are taxed only at the owner level? A. General partnership B. Limited partnership C. Limited Liability Company D. Limited Liability Partnership

D. Limited Liability Partnership

In which of the following business organizations does an owner risk losing his or her limited liability by actively and publicly managing the business? A. Limited liability corporation B. Limited Liability Partnership C. General corporation D. Limited partnership

D. Limited partnership

A lien for the value of material and labor expended in the construction of buildings and other improvements is a ___ A. General power lien B. Atsy lien C. UCC 9 lien D. Mechanic's lien

D. Mechanic's lien

Jim and Sid are partners in Widget Manufacturing. Jim read a letter from one of Widget's buyers asking for adequate assurances that Widget would be able to meet an upcoming contractual obligation. The demand was proper and, under Article 2, the buyer could treat the contract as breached if Widget did not respond to the demand within 3 months. Jim forgot to tell Sid about the demand and did not respond to it himself. Widget is now being sued by Buyer for 4,000 in damages for breach of contract. Sid contends that the partnership is not liable because only one partner was aware of the demand. Is Sid correct? A. Yes, as an equal owner of the business Sid was entitled to equal notice. B. No, Sid did not receive the notice because of his own negligence in attending to partnership correspondence. C. No, the partnership is liable under the doctrine of respondeat superior D. No, the partnership is liable because notice to one partner is legally notice to all the partners and the partnership.

D. No, the partnership is liable because notice to one partner is legally notice to all the partners and the partnership

A partnership whose primary purpose is to manufacture things or to provide services is a ___ partnership A. Professional B. Entrepreneurial C. Trading D. Non-trading

D. Non-trading

Suits by the state to determine if a corporate charter should be cancelled or forfeited are ___ proceedings A. Divestiture B. Appraisal C. Ultra vires D. Quo warranto

D. Quo warranto

Mike owned 10,000 shares in Texas Equipment that had a par value of 10. As part of a financial reorganization, Texas Equipment now records Mike as having 20,000 shares with a par value of 5. This is an example of a ___ A. Stock dividend B. Stock repurchase C. Ex dividend split D. Stock split

D. Stock Split

Which of the following would not be grounds for dissolving a corporation? A. A quo warranto proceeding B. The shareholders are deadlocked in electing a board of directors. C. Oppressive conduct by a controlling shareholder. D. The corporation has not made a profit or declared dividends in two years.

D. The corporation has not made profit or declared dividends in two years

Which of the following situations would justify piercing the corporate veil? A. The majority shareholder loans money to the corporation B. All the shares of a corporation are held by one person C. All the shares of a corporation are held by another corporation. D. The corporation was formed with the intent of defrauding another party or violating a statute.

D. The corporation was formed with the intent of defrauding another party or violating a statute

Which of the following is not normally included in the Partnership Agreement? A. The name of the partnership. B. The capital contribution of each partner. C. A buy and sell agreement D. The daily work schedule for each partner.

D. The daily work schedule for each partner

Which of the following best describes the role of a general partner in a limited partnership? A. The general partner usually has an insignificant role in the overall business decisions of the limited partnership. B. The general partner defers to the business decisions of the limited partners of the limited partnership, unless those decisions seem economically unreasonable. C. The general partner may participate in the business decisions of the limited partnership, but he or she will never be held personally liable for the debts of the business. D. The general partner manages the partnership and remains responsible for partnership liabilities.

D. The general partner manages the partnership and remains responsible for partnership liabilities.

A member of an LLC risk personal liability for participating in all of the following activities, except: A. In the name of the LLC, the member secretly loans money to a close friend. B. The member knowingly files a false tax return with the IRS. C. The member volunteers to assume personal responsibility for a loan payments made by the LLC. D. The member consistently votes against decisions that are ultimately approved by the majority of other members of the LLC.

D. The member consistently votes against decisions that are ultimately approved by the majority of other members of the LLC

All of the following are rights held by an individual member of an LLC, except: A. The right to request that the LLC be dissolved. B. Access to the LLC's books and records. C. The right to vote against an amendment to the LLC's operating agreement. D. The right to sell one's interest in the LLC without notifying or consulting the other members of the LLC.

D. The right to sell one's interest in the LLC without notifying or consulting the other members of the LLC.

A corporation ceases to exist as a legal entity when ... A. The directors vote unanimously to dissolve the corporation B. The shareholders vote unanimously to dissolve the corporation 0% C. The directors of the corporation notify corporation creditors of the dissolution. D. The state issues a certificate of dissolution

D. The state issues a certificate of dissolution

Which of the following statements about the rights and duties of doctors who practice medicine in a professional corporation is true? A. Doctors have no personal liability for medical malpractice suits. B. Because they are also owners of the corporation, doctors have no protection from discrimination based on age. C. The professional corporation can have no more than ten owner-employee doctors. D. They are eligible to participate in tax advantaged pension plans.

D. They are eligible to participate in tax advantaged pension plans

A surety will remain liable when the creditor-principal agreement is modified if the surety consents to the modification A. Before the modification takes place B. At the time the modification takes place C. After the modification takes place D. Any of the above

D. all of the above

Absent an agreement otherwise, the members of an LLC have a statutory right to A. approve a merger B. dissolve the LLC C. inspect the books and records of the LLC D. all of the above are statutory rights

D. all of the above

Which of the following parties could claim an artisan's lien? A. A common carrier of goods. B. A jeweler who repaired a watch C. The owner of a storage facility D. All of the above are eligible for an artisan's lien.

D. all of the above are eligible for an artisan's lien

A surety will remain liable when the creditor-principal agreement is modified if the surety consents to the modification A. Before the modification takes place B. At the time the modification takes place C. After the modification takes place D. Any of the above

D. any of the above

Jo and Anna, who are mother and daughter, are co-owners of Joanna's Frocks. When the bank loaned money to the business, Jo and Anna agreed to be sureties on the loan. Under the loan agreement, Anna will be liable only if Jo defaults on her obligation as a surety. Anna is a __________ on the loan. A. General guarantor B. Special guarantor C. Co-surety D. Sub-surety

D. subsurety

The earliest application of strict liability in American law was in cases involving which of the following? Tobacco products Medical services Dangerous animals Defective products

Dangerous animals

In a bankruptcy proceeding, the ___ is the individual, business organization, municipality or farmer that the bankruptcy proceeding involves Debtor Creditor Interested party Trustee

Debtor

The purpose of the Telemarketing and Consumer Fraud and Abuse Prevention Act is to prohibit ___ telemarketing practices a. Substantially all. b. Deceptive. c. Time-consuming. d. Aggravating or annoying.

Deceptive

A material misrepresentation or omission likely to mislead a potential customer and would mislead a reasonable consumer is ___ a. puffery b. usury c. fraud in the inducement d. deceptive advertising

Deceptive Advertising

The function of a petit jury is to

Decide whether a civil defendant is liable and whether a criminal defendant is guilty.

Dan Dentist was selling the building in which his office was located so that he could relocate to a larger space. Ron, a very aggressive commercial real estate broker, told Dan that unless he gave Ron an exclusive one year contract to list the property, he would spread word in the community that Dan was selling his building to pay a large malpractice claim and that Dan had been liable in so many malpractice suits that no company would insure him. Dan believed that Ron would carry out this threat and signed the contract. Dan can rescind the contract based on? Duress Undue influence Fraud Fiduciary malfeasance

Duress

The insanity defense that allows someone to avoid criminal liability if the criminal act was the "product of a mental disease or defect" is the _____________rule.

Durham

Cruel and unusual punishment and excessive bail is forbidden by the _________Amendment.

Eighth

To defeat the defense, in a disparate impact case, that the discriminatory practice is "job related and consistent with business necessity," the plaintiff must prove which of the following? - The employment practice is a pretext for discrimination. - Another non-discriminatory practice exists that achieves the same business result. - The employer developed the business practice with the specific intent to discriminate. - Either A or B

Either A or B

Big Corp is a defendant in a disparate treatment case brought by Pam who is charging that she was denied a promotion because of gender discrimination. Big Corp will likely will if it can establish which of the following defenses? - Pam was denied the promotion for legitimate non-discriminatory reasons. - The reason it gave for denying Pam the promotion was a pretext. - The denial of the promotion was based on mixed motives. - Either A or C

Either A or C

The ___ regulates the process banks use to transfer consumer funds through electronic means Super - Fund act Consumer Banking Act Electronic Funds Transfer Ac Banking Transfer Act

Electronic Funds Transfer Act

Ellen has a contract with Sue to buy her riding lawn mower for 200. Ellen has given Sue 200 in cash, and Sue has given Ellen possession of the mower. What is the status of this contract between Sue and Ellen? Adhesionary Executory Executed Illusionary

Executed

A court cannot instruct the jury that it may take the failure of the accused to testify as evidence of guilt. True False

True

Ann is the head of the accounts payable department in a large corporation. She set up a bank account in the name of a fictitious supplier and deposits a check in it every month. She is the owner of the account. Because Ann is an employee entrusted with making out checks for her employer, what crime has she committed?

Embezzlement

Mary and neighbor Beth had a bitter quarrel. Beth, a nurse, called Mary from the hospital in which she worked and told Mary that her husband and son had died in a car accident and their bodies were in the hospital morgue. In anguish, Mary rushed down to the hospital. Beth had made up the entire story because she wanted to cause Mary pain. Beth has committed the tort of? False light Emotional distress Slander Invasion of privacy

Emotional distress

What does the Family and Medical Leave Act require? - Employees receive their normal pay when on medical leave. - Employees are entitled to twelve weeks of medical leave during a twelve month period. - Employees must have worked for an employer for a minimum of thirty-six months to qualify for medical leave. - What constitutes a "serious medical condition" is decided by the employee.

Employees are entitled to twelve weeks of medical leave during a twelve month period

Why do workers compensation laws benefit employers? - Employers can choose to opt in or to opt out of the program. - The insurance premiums that employers pay are very low. - Employees cannot sue their employers for negligence even if the employer's negligence caused the injuries. - Employees cannot sue the employer for intentionally causing the workplace injuries

Employees cannot sue their employers for negligence even if the employer's negligence caused the injuries

Doctors, lawyers, executives, and others who are not covered by laws regulating overtime pay are classified as ___ employees - vital - exempt - statutory - goodwill

Exempt

Ann Agent was hired by Buyer to locate a piece of property suitable for building an office complex. Ann and her cousin jointly owned a piece of property that suited Buyer's needs. Without telling Buyer of her ownership interest, Ann negotiated the purchase on Buyer's behalf. The price for the property was its fair market value. What options are available to Buyer when he learns that Ann was the seller? a. He may rescind the contract because Ann violated her duty of loyalty. b. He must go through with the contract because the price was objectively fair. c. He must go through with the contract because her cousin's participation made this an arm's length deal. d. He must go through with the contract, but does not have to pay Ann her commission.

He may rescind the contract because Ann violated her duty of loyalty

The exemption that allows debtors to exempt a certain portion of the equity in their homes is called the ___ exemption Family purpose Fresh start Homestead Family Protection

Homestead

Which of the following would NOT constitute a disability under the Americans with Disabilities Act? - Homosexuality - Perception by others that one is disabled - A physical impairment that substantially limits one or more life activities - A mental impairment that substantially limits one or more life impairments

Homosexuality

The Executive, Legislative, and Judicial branches of the federal government each have their own unique duties and functions. This arrangement constitutes an__________separation of powers.

Horizontal

Which of the following is not a defense to criminal liability?

Ignorance of the law

The Fair and Accurate Credit Transaction Act attempts to reduce the impact on individuals who are the target of ___ Unfair lending procedures. Deceptive advertising. Identify theft. Interference with business relations

Identity theft

Minimum contacts is used to determine which of the following?

If the defendant has sufficient dealings with a state that it would be fair to require him to defend a suit there

Implied authority is also known as ___ authority - apparent - ostensible - incidental - constructive

Incidental

Juvenile court, probate court and traffic court are examples of courts of ___________.

Limited jurisdiction

When there is a time is of the essence clause in a contract, the parties will normally also include in the contract a dollar amount that will be paid the innocent party each day it takes to complete the work after the contract date. This is an example of a __________________damages clause. Nominal Compensatory Consequential Liquidated

Liquidated

The process of winding up the affairs of a corporation or firm for the purpose of paying its debts and disposing of its assets is known as ________. a. Foreclosure. b. Garnishment. c. Liquidation. d. Dissolution.

Liquidation

Assume that all the owners of the professional sports teams within a league wanted to pressure the players during contract negotiations to make wage and benefit concessions. Assume also that the owners refused to schedule games for the upcoming season, and denied the players access to playbooks, the coaching staff and the training facilitates. These activities by the owners constitute a ___ Job action Boycott Lock out Strike

Lock out

The negligence committed by a professional, such as a doctor or a lawyer, in the conduct of his profession is ___________________. Malpractice Negligence per se Negligence ad hominem Res ipsa loquitur

Malpractice

Acts which are wrongful in themselves and prohibited by almost all civilizations are classified as ______________crimes.

Malum in se

In complex cases in equity, the court may refer the matter to a lawyer who will hear evidence and make findings of fact and law which he reports back to the court for a decision. In this capacity, the attorney is called a (n) ______________.

Master in chancery

A director's duty of care is that of a normally prudent businessperson in the management of his or her own affairs T/F

True

Which of the following is not an element of negligence that must be proved by a plaintiff? (select all the answer options that are correct) Group of answer choices: Proximate cause Minor cause Superseding cause Actual cause

Minor cause Superseding cause

After his trial, Bill was fined $2,500 and sentenced to serve 6 months in the local jail. From the sentence, we know that the crime he committed was a (n)_____________________.

Misdemeanor

Plaintiff's duty to take steps to lessen the damages that result from a defendant's breach of contract is the duty to ______________. Mitigate Subrogate Abrogate Ameliorate

Mitigate

Sam Student transferred to another college and had to leave his apartment with 5 months remaining on the lease. Landlord must try to find a suitable replacement tenant before he can sue Sam for damage because landlord has a duty to _____________damages. Ameliorate Foresee Subrogate Mitigate

Mitigate

Which of the following statements is true about modifying contracts governed by the Code? (select all answer options that are correct) Modifications must be made in good faith No new consideration is required to modify an existing contract. Parties may agree that all modifications to an existing contract must be in writing. The Code only allows modification of contracts that do not exceed $500.00

Modifications must be made in good faith No new consideration is required to modify an existing contract. Parties may agree that all modifications to an existing contract must be in writing.

What is the name of the motion that may be made by either side during a trial asking the judge to decide the case in its favor as a matter of law because no facts have been introduced at trial supporting the claim of the other party?

Motion for a directed verdict

In a negligence suit, plaintiff must prove all of the following except? Motive Actual cause Proximate cause Duty of care

Motive

Which of the following is not a good under Article 2 of the Code? Natural gas extracted from the ground by the buyer A wheat crop that has not yet been planted A farm tractor An unborn horse

Natural gas extracted from the ground by the buyer

Neda, an attorney, has engaged in the following representations this past year. Which one is least likely to violate her duty of loyalty to her clients? Neda represented both the buyer and the seller in the purchase of a business. Neda represented both spouses in their property settlement following the divorce. Neda represented a local restaurant, which she patronizes frequently, in an employment discrimination suit. Neda created a limited partnership with three limited partners; she was one of the limited partners.

Neda represented a local restaurant, which she patronizes frequently, in an employment discrimination suit.

An employer may be liable for a customer's repeated and public sexual harassment of an employee based on which theory? - Respondeat superior - Strict liability - Negligence - Breach of a fiduciary duty

Negligence

An employer may be liable for harassment by a non-supervisory co-worker based which theory? - Respondeat superior - Strict liability - Negligence - Breach of a fiduciary duty

Negligence

Defendant's failure to do what a reasonable and prudent person would do in his circumstances subjects him to liability for...... Defamation Fraud Negligence Strict liability

Negligence

Susan owns a pizza delivery franchise. She decides to make changes to her pizza making process. Her changes decrease the care and quality control of the care of the ingredients that need to be refrigerated. Several of her customers end up getting food poisoning. What does she have the greatest risk of being sued for? A cheesy delivery Negligence Assault Fraud

Negligence

The majority of private law suits filed in the United States are for ______________claims. Negligence Medical malpractice Nuisance Vicarious liability

Negligence

Cal, a resident of New York, and Tomas, a resident of New Jersey had a car accident in New York. Cal is alleging that Thomas failed to obey a New York traffic sign that gave Cal the right of way. The case is being heard in federal district court in New York. In deciding this case, the court will apply ______________substantive law and ________procedural law.

New York, federal

Under common law, modifications to existing contracts require ___________to be enforceable. Restitution under the original contract Forbearance by the injured party An accord and satisfaction New consideration

New consideration

Valerie Vet accidentally left the back door to her pet clinic open and Cuddles, a canine patient, escaped. Cuddles ran around in the road and in an adjacent field until she was found and returned to the clinic half an hour later, completely unharmed. Is Valerie liable to Cuddles' owner for negligence? Yes, allowing a dog to run loose for half an hour constitutes gross negligence. Yes, it is foreseeable that an unleashed dog will run out of an open door. No because Cuddles suffered no injury while she was free. Yes, Valerie Vet breached a duty of care to her patient.

No because Cuddles suffered no injury while she was free.

The board of ABC Corporation approved a new issue of Class B voting stock. The stock has no stated value. This stock is an example of ___ stock

No par

Stock which has no stated value when it is sold is ___ stock

No par value

Raines Realty, a property management firm, hired Al Agent to manage an office complex. One of Al's duties was to collect the rents. Raines fired Al for negligence, but did not notify the tenants before the next rent payment was due. Al collected the rents as usual and left town with the money. Are the tenants required to pay that month's rent again to Raines? Yes, because third parties have a duty to verify that agents are acting within the scope of their authority. Yes, because a payment to Al stopped being a payment to Raines when Al's actual authority to accept payments ended. No, because Al still had implied authority to collect the rents until Raines told the tenants otherwise. No, because Al still had apparent authority to collect the rents until Raines told the tenants otherwise.

No, because Al still had apparent authority to collect the rents until Raines told the tenants otherwise.

Mary saw two boys swimming across a river she knew had a deep and dangerous channel. She did not warn the boys or try to stop them. If one of the boys were injured, could Mary be sued for negligence? Yes, because all adults have a duty of care to all minors No, because Mary had no duty of care to the boys Yes, because she owed them an enforceable moral duty Yes, because the danger to the boys was foreseeable

No, because Mary had no duty of care to the boys.

Kelly received a cookbook in the mail that she had not ordered. The packing slip read: " Return this book to the publisher within 14 days or send a check for 35 to the address below." Kelly did not return the book within the 14 days and she has not sent the money as requested. Is Kelly required to pay for the cookbook? Yes, when Kelly did not return the book, her conduct created an implied-in-fact contract to which she is bound. No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it. Yes, the publisher made an offer for a unilateral contract, which Kelly accepted by not returning the book as instructed. Yes, there is an implied-in-law contract and Kelly must pay for the book to prevent unjust enrichment.

No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it.

Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the contract was signed, Sid called Bea to say that he had forgotten that the dealership would not let that Camry go for less than 9,000 so she would have to pay an additional 1,000 if she wanted the car. Is Bea liable for the extra 1,000? Yes, Sid has the defense of economic duress. No, this was a unilateral mistake of fact by Sid Yes, this was a unilateral mistake of fact by Sid Yes, this was a bilateral mistake of fact

No, this was a unilateral mistake of fact by Sid

Having lost his job in the recent recession and facing property taxes that were past due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a price that was well below its market value. Ed now regrets this decision and asks if he has any legal basis for rescinding the contract. Please advise Ed. No, this was a valid bargained for exchange with a good faith purchaser for value. Yes, he can rescind the contract based on economic duress Yes, he can rescind the contract based on a unilateral mistake of value. Yes, he van rescind the contract based on innocent misrepresentation

No, this was a valid bargained for exchange with a good faith purchaser for value.

Having lost his job in the recent recession and facing property taxes that were past due, Ed was desperate for cash. He sold his prized 1969 Mustang to a good faith purchaser for value at a price that was well below its market value. Ed now regrets this decision and asks if he has any legal basis for rescinding the contract. Please advise Ed. Yes, he can rescind the contract based on economic duress No, this was a valid bargained for exchange with a good faith purchaser for value. Yes, he can rescind the contract based on a unilateral mistake of value. Yes, he van rescind the contract based on innocent misrepresentation

No, this was a valid bargained for exchange with a good faith purchaser for value.

Which of the following categories of workers is NOT covered by the National Labor Relations Act? - Employees of the federal government - Employees of state governments - Independent contractors - None of the above are covered by the NLRA

None of the above are covered by the NLRA

In which of the following situations would an employee avoid liability for torts committed while carrying out his employment obligations? - a corporate officer acting on behalf of the corporation - a servant following the instructions of his master - an agent carrying out the orders of his principal - none of the above; everyone has personal liability for the torts he commits

None of the above; everyone has personal liability for the torts he commits

A duty is a legal obligation imposed by law or voluntarily assumed by promise. True False

True

Under which of the following is a contract voidable? The contract was not executed under seal. One of the parties has the option to set aside the contract. Consideration is missing. Agreement is missing.

One of the parties has the option to set aside the contract.

Sue bought a painting from Neda, who had inherited it and was not in the business of selling art. Sue gave Neda a check and Neda tendered delivery simultaneously. Sue asked if she could pick up the painting later in the day. Through no fault of Neda's, the painting was stolen before Sue returned. The risk of loss in these circumstances. Passed to Sue on Neda's tender of delivery Remained with Neda because Sue had not yet taken possession of the painting. Would not pass to Sue until her check cleared. Remained with Neda because she was the seller.

Passed to Sue on Neda's tender of delivery.

Val bought a freezer from Neighbors who were remodeling their kitchen. Val gave Neighbors a check, and Neighbors told Val that she could take the freezer. Val asked if she could pick up the freezer over the weekend instead, when she could borrow her brother's truck. Neighbors agreed. Before Val could pick up the freezer, however, it was destroyed when faulty wiring caused a fire in Neighbors' kitchen. In these circumstances, the risk of loss? Remained with Neighbors because they were the sellers. Would not pass to Val until her check cleared. Passed to Val when Neighbors tendered delivery. Remained with Neighbors because Val had not yet taken possession of the freezer.

Passed to Val when Neighbors tendered delivery.

Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Because Peg is not compensated for the activities she is performing on her brother's behalf she owes him ... A. Only the duty of loyalty., B. Only the duties of loyalty and information., C. Only the duties of loyalty, information and the duty to account, D. Peg owes Jim all the duties of an agent to a principal.

Peg owes Jim all the duties of an agent to a principal

The building code of River City requires that elevators in public buildings be inspected every nine months. Hal did not have the elevators in his seven story office building inspected for two years. He was brought before a city magistrate and fined $10,000. His offense would be classified as a ________________.

Public tort

Beth went to Elegant Cakes to select a cake for her wedding. The owner gave her piece to sample and said: "if you live to be 200, this is the best cake you will ever eat in your whole life." Owner's statement is an example of ___ Puffery An express warranty Deceptive advertising Fraudulent misrepresentation

Puffery

Exemplary damages are also known as _________________ damages. Compensatory Punitive Consequential Nominal

Punitive

Assume that plaintiff was 60 percent responsible for his own injuries. He would be able to recover the 40 percent of his injuries caused by the negligent defendant if the state which hears the case follows the doctrine of____________________. Situs negligence Modified comparative fault negligence Pure comparative fault negligence Contributory negligence

Pure comparative fault negligence

After reaching the age of majority, if a party does nothing to disaffirm a contract entered into while a minor, his silence will _____________the contract. Disaffirm Dissolve Ratify Void

Ratify

The person who is designated to receive notices and services of the process for a corporation is its ___

Registered agent

The important federal regulation that requires all creditors to disclose the annual percentage rate (APR) charged so that debtors can compare credit offers is _________________. a. Regulation D b. Regulation Z c. Subchapter S d. Chapter 7

Regulation Z

Rights/duties ethical systems are may be based on ____.

Religious standards Philosophical principles A theory of social contracts

John was the losing party in a civil suit and a judgment of $100,000 was entered against him. He appealed and the appellate court sent the case back for a new trial. The appellate court has __________________the case.

Remanded

Mary runs a clothing store at a ski resort. She is approached by Sally who has several dozen funky hand knit ski caps she would like Mary to buy to sell in her store. Mary agrees on the condition that Sally take back any unsold hats at the end of the season. This agreement is an __________________. Sale or return An installment sales contract Sale on approval An unenforceable promise

Sale or return

In a fraudulent misrepresentation suit, the plaintiff must prove that the defendant knowingly misrepresented a material fact. The legal term for the defendant's knowing or reckless misrepresentation is __________. Mens rea Scienter Malum prohibitum Malum in se

Scienter

Which of the following elements is present in fraudulent misrepresentation but not in innocent misrepresentation? Economic damage to the innocent party Misrepresentation of a material fact Scienter Reasonable reliance by the innocent party

Scienter

Codes of Ethics do not encourage ____ .

Self-aggrandizement

Codes of Ethics are not based upon ____.

Self-regard

A bankruptcy trustee may do all of the following except File tax returns for the state. Recover property of the debtor that had been conveyed in a fraudulent transfer Invest assets of the estate Sell collateral without adequate protection for the secured creditor

Sell collateral without adequate protection for the secured creditor

Seller, a Chicago business, sent a shipment of tractor parts to Buyer, a Detroit business, under a contract that read: "F.O.B.Chicago, Illinois." The parts were not those specified in the contract and Buyer rejected them. A few hours after Buyer notified Seller of the rejection, the parts were destroyed in a fire at Buyer's place of business. Which of the following best states the rights and duties of Buyer and Seller in this situation? Buyer rightfully rejected the tender, but risk of loss did not pass to Seller again until Seller regained physical possession of the goods. Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss. Seller has the risk of loss because this was a destination contract. Buyer has the risk of loss because this was a shipment contract.

Seller has the risk of loss because the tender was non-conforming, but only to the extent that Buyer's insurance does not cover the loss.

Iris was at fault in a car crash in which Phil was injured. As they waited for the EMT's to arrive, a plane, which was part of a nearby air show, crashed into Phil, significantly increasing his injuries. Iris will not be liable for this second set of injuries because the plane crash was a(n)? Foreseeable Legal Proximate Superseding

Superseding

Any creditor who also owes the debtor money may have the right of ___, which allows the creditor to cancel out these obligations Redemption Execution Levy in distress Setoff

Setoff

What is the purpose of the pre-trial conference in a civil case?

Settle a case without having to go to trial

A claim for discrimination cannot be brought under Title VII if the discrimination is based on ___ - race - gender - religion - sexual orientation

Sexual orientation

Title VII does not provide protection from workplace discrimination if the discrimination was based on the employee's ___ - gender - sexual orientation - race - color

Sexual orientation

Brown & Son's of Easton, Maryland, has a contract to sell 250 computers to Community College in Onley, Virginia. The contract reads: "F.O.B.Easton, Maryland. This is a _______________ contract. Destination Concurrent Constructive Shipment

Shipment

A partner who does not participate in the management of the business is a ___ partner; a partner who participates in decisions and advises management, but whose partnership interest is not known to third parties is a ___ partner

Silent---Secret

Timothy believes the law should reflect societal values, which may change over time. He is an adherent of the ____ school.

Sociological

What is another term for consequential damages? Special Punitive Nominal Liquidated

Special

Conan, an outstanding college pitcher, hired Masters to represent him in negotiations with a major league team. Masters may only negotiate a contract for Conan; he has no authority to make investments or purchase property on Conan's behalf. Masters would be classified as a (n) __________. Factor Broker Special agent General agent

Special agent

Conan, an outstanding college pitcher, hired Masters to represent him in negotiations with a major league team. Masters may only negotiate a contract for Conan; he has no authority to make investments or purchase property on Conan's behalf. Masters would be classified as a ___ Factor, Broker, Special agent General agent

Special agent

Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim will be out of the country when a piece of land he sold goes to settlement. He wants to give Peg the authority to convey the deed and sign any necessary settlement papers in his name. To do this he should give Peg _______________. Special power of attorney General power of attorney Factors letters of appointment Broker Authority

Special power of attorney

Ruth had a contract to sell a vacation home she owned in North Carolina. Rather than make the trip from Oregon for the closing, she gave her brother Ian, who lived in North Carolina, the authority to represent her at the closing and to sign all the necessary papers. The notarized document that confers this authority on Ian is a (n) __________________; and Ian is a (n) _____________. General power of attorney, Attorney in fact Special power of attorney, Attorney at law Special power of attorney, Attorney in fact General power of attorney, Attorney at law

Special power of attorney--------------------Attorney in fact

The clause in OSHA that details the requirements that different kinds of equipment, such as scaffolding, must meet in various occupations is the ___ clause - employee benefit - exculpatory - general duty - specific duty

Specific duty

The requirement that someone have a personal stake or interest in the outcome of a case in order to be a plaintiff is called _________________ to sue.

Standing

In order to be a plaintiff, a party must have a personal stake or be personally affected by the outcome of the case. This requirement is called ________________.

Standing to sue

Bill sued Ted for libel over statements Ted published in the company newsletter. A jury heard the case and found that no libel had occurred because the statements were true. Bill is very unhappy with this decision, but cannot sue Ted again over these statements because of the doctrine of

Stare decisis

If a private employer denied an employee the right to speak freely about political issues in the workplace, the employee could not claim a First Amendment violation because the element of _____________is missing.

State action

June was hired to be the store manager of Big Kahuna Surf Shop in Ocean City. The law governing this employment contract is? Equitable principles and maxims. The Convention on the International Sale of Goods The Uniform Commercial Code State common law

State common law

Assume that the Vermont legislature passed a bill prohibiting the sale within the state of detergents containing certain chemicals harmful to the environment. Assume further that the governor signed the bill into law. This law has the status of a(n) ______ .

Statute

The Congress of the United States passed the Soldiers' and Sailors' Relief Act of 1940 and President Franklin Roosevelt signed it into law. This Act has the status of an____________.

Statute

Which of the following theories of liability does not involve wrongdoing by the defendant? Duress Intentional torts Strict liability Negligence

Strict Liability

Vidal So-SueME makes hair shampoo and sells it through retailers. One of its plant managers increases the production of the shampoo by cutting back on the standard quality control checks in the industry. Unfortunately, a significant number of their bottles of shampoo has too much "scalp chemical" and is causing people to go bald. Under what legal theory is Vidal most at risk. Strict Tort Product Liability Express liability Strict intentional liability Fraud Battery

Strict Tort Product Liability

Famous Felines is a nightclub act featuring trained lions and tigers. After years of successful and highly popular performances, one of the lions suddenly attacked a spectator sitting in the audience. Famous Felines' liability to the injured spectator will be based on___________. Criminal negligence Strict liability Gross negligence Ordinary negligence

Strict liability

Which of the following theories of liability does not involve wrongdoing by the defendant? Negligence Intentional torts Duress Strict liability

Strict liability

Under substantive due process, laws that restrict any fundamental liberty, such as political free speech of interstate travel, will be reviewed under

Strict scrutiny

Another name for a tax option corporation is a ___

Subchapter S corporation

Ted was hired under a one year contract to manage Sue's sub shop. Eight months into the contract, Sue fired Ted in order to hire a new manager who had just graduated with a degree in marketing and had a lot of ideas for increasing sales. Ted had not breached the contract in any way. Which statement best describes Sue's rights in these circumstances? A. Sue had both the right and the power to terminate Ted's contract., B. Sue had neither the right nor the power to terminate Ted's contract., C. Sue had the power, but not the right, to terminate Ted's contract., D. Sue had the right, but not the power, to terminate Ted's contract.

Sue had the power, but not the right to terminate Ted's contract

The document issued by a court directing a defendant to appear in court in response to a suit filed against him is an_______________.

Summons

Which of the following statements about the Uniform Commercial Code is false? (select all answer options that are correct) The Code allows the parties to a contract to require that any modifications to the contract be in writing. The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable. The Code provides for a reasonable price if price is not included in the contract The Code allows only merchants to be bound by firm offers not supported by consideration.

The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable.

Which federal statute sets standards for employee pension and benefits plans? - The Fair Labor Standards Act - The Employee Retirement Income Security Act - The National Labor Relations Act - The Landrum-Griffin Act

The Employee Retirement Income Security Act

What is the federal agency that investigates and enforces anti-discrimination portions of Title VII? - The Equal Employment Opportunities Commission - The National Labor Relations Board - The Special Employment Commission - The Federal Antidiscrimination Administration

The Equal Employment Opportunities Commission

Assume that State University institutes a curfew for the female students who live on campus. To protect both the safety and morals of its female population, State University requires that the female students be in their dorms by 1:00 a.m. every night. There is no curfew for male students because they are less likely to be victims of attacks. If Nellie Nightowl wants to protest, under which standard of review will the court hear this case?

The Equal protection Clause of the 14th Amendment

Assume that State University institutes a curfew for the female students who live on campus. To protect both the safety and morals of its female population, State University requires that the female students be in their dorms by 1:00 a.m. every night. There is no curfew for male students because they are less likely to be victims of attacks. If Nellie Nightowl wants to protest, which provision of the Constitution will she claim is being violated?

The Equal protection Clause of the 14th Amendment

Which federal statute regulates minimum wages, overtime, and the employment of minors?

The Fair Labor Standards Act

What is the federal statute that makes it illegal for unions to organize secondary boycotts, promote featherbedding, and refuse to bargain with employers? - The Consolidated Omnibus Budget Reconciliation Act - The Taft Hartley Act - The Fair Labor Standards Act - The Occupational Safety and Health Act

The Taft Hartley Act

Which of the following statements about the Uniform Commercial Code UCC is correct?

The UCC consists of identical statutes enacted by the states to provide businesses with consistent and predictable laws

John bought a dishwasher from Local Appliance Store. What type of law governs the contract between John and Local? The Sarbanes-Oxley Act State common law The Uniform Commercial Code Federal common law

The Uniform Commercial Code

Todd bought a lawn tractor from LawnToysRus. The law that governs this sales contract is? State common law Federal common law The Convention on the International Sale of Goods The Uniform Commercial Code

The Uniform Commercial Code

Sue hired Harry to sell her prized racing filly, YouGoGirl. Harry's commission was to be 20% of the selling price. Before a buyer could be found, YouGoGirl died of an equine virus. What is the status of the agency agreement between Sue and Harry? a. The agency terminates by operation of law. b. The agency continues unless the principal, Sue, takes a unilateral action to end it. c. The agency continues unless the agent, Harry, takes a unilateral action to end it. d. The agency continues unless is it terminated by the mutual agreement of Sue and Harry.

The agency terminates by operation of law

What is the status of an agency agreement when a principal files for Chapter 7 Bankruptcy - the agency terminates by operation of law when the court grants the order of relief - the agency terminates by operation of law thirty days after the trustee takes over the debtor's assets - the agency terminates by operation of law sixty days after the trustee takes over the debtor's assets - the agency terminates by operation of law ninety days after the trustee takes over the debtor's assets

The agency terminates by operation of law when the court grands the order for relief

Pat hired Mike, a dealer in livestock, to sell his herd of cattle. Mike was to receive 20 percent commission on the sale. Before a buyer could be found, the herd had been destroyed because of an outbreak of mad cow disease. Which statement best describes the status of the agency agreement? - the agency will continue under the same terms when Pat acquires a new herd - the agency was terminated by operation of law - the agency was terminated by a unilateral action - the agency was terminated by mutual agreement

The agency was terminated by operation of law

Pat hired Mike, a dealer in livestock, to sell his herd of cattle. Mike was to receive a 20 commission on the sale. Before a buyer could be found, the herd had to be destroyed because of an outbreak of mad cow disease. Which statement best describes the status of the agency agreement? The agency will continue under the same terms when Pat acquires a new herd. The agency was terminated by operation of law The agency was terminated by a unilateral action The agency was terminated by mutual agreement

The agency was terminated by operation of law

Under which of the following circumstances will cashing a check marked "paid in full" create an accord and satisfaction? The check is for an unliquidated debt and both parties know of the dispute. The check is for a lesser sum that the amount due on a liquidated debt. The check is in payment of a court judgment. The check is for any transaction governed by the Code.

The check is for an unliquidated debt and both parties know of the dispute.

A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration. True False

True

In which of the following circumstances would the remedy of rescission be used? (select all answer options that are correct) The contract term is longer than a year The contract was based on fraud One party to the contract is a minor who wishes to disaffirm the contract. The contract was based on a mistake by the parties

The contract was based on fraud One party to the contract is a minor who wishes to disaffirm the contract. The contract was based on a mistake by the parties

Mary, a resident of California, is outraged that the U.S. Navy allows civilians on board submarines and believes that this practice, along with the captain's negligence, was responsible for the 2001 sinking of a Japanese boat in the waters around Hawaii. She has filed suit in federal district in Hawaii against the captain and the secretary of the navy. Mary is just a concerned citizen and is not related to anyone aboard either the sub or the Japanese boat. What is the most likely result of her suit?

The court will dismiss the case because Mary lacks standing to sue

Which test do courts use to decide if the contract of a person who has not been adjudicated insane can be avoided because of mental incompetence? The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed. The court will use the state's test for commitment to a mental institution. The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time performance is due. The court will use the state's test for testamentary competence.

The court will look to see if the party understood the nature, purpose and consequences of entering into a contract at the time the contract was formed.

A general guarantor's promise is not limited to a single transaction T/F

True

If goods are being sold under a negotiable document of title, such as a bill of lading, risk of loss passes to the buyer when? The buyer pays for the goods. The document is tendered to the buyer The buyer takes possession of the goods The goods are tendered to the buyer

The document is tendered to the buyer

Sam is retiring and selling his business to Ed, an employee. They want Larry Lawyer to draw up a sales contract that protects both Sam's interests as the seller and Ed's interests as the buyer. If Larry agrees to this dual agency, which agency duty would he most risk violating? The duty of loyalty The duty not to be negligent The duty to account Dual agencies pose no particular problems in carrying out agency duties.

The duty of loyalty

Which of the following statements about an agent's duty to inform is false? - the duty to inform does not apply to gratuitous agents, only to compensated agents - the principal is assumed to know everything that the agent knows and can be held liable legally for this information - the agent must inform the principal if a credit customer is having financial difficulties - the agent must inform the principal about changes in market conditions

The duty to inform does not apply to gratuitous agents, only to compensated agents

The need to go to different courts for legal and equitable remedies can be traced to

The early English court system

The term F.A.S. in a contract indicates that? The goods are being shipped by a merchant vessel The buyer paid the cost of insuring the goods. The buyer is a merchant The seller is a merchant

The goods are being shipped by a merchant vessel.

A buyer does not have the right to inspect goods before paying for them if? The goods are sent under a shipment contract. None of the above is true: Buyers always have the right to inspect goods before paying for them. The goods are sent under a destination contract. The goods are sent C.O.D.

The goods are sent C.O.D.

Among the following, which party has a fiduciary responsibility? (select all answer options that are correct) The guardian of a minor child The director of a corporation The owners of fee simple estates The executor of a will

The guardian of a minor child The director of a corporation The executor of a will

A join bankruptcy filing concerning a husband and wife requires a filing of only one petition.

True

Which of the following is not a requirement for advertising to be deceptive? a. It must contain a material misrepresentation or omission b. The misrepresentation or omission must be made with the intent to defraud c. The misrepresentation or omission is likely to mislead a customer. d. The misrepresentation or omission would mislead a reasonable customer.

The misrepresentation or omission must be made with the intent to defraud

All of the following are true except: A class-action suit is one in which a person files suit on his/her own behalf and on behalf of all other persons who may have a similar claim. A class-action lawsuit may brought on behalf of all purchasers of a defective product. A class-action lawsuit may be brought on behalf of employees of a particular business. The number of people who comprise a class in a class-action are frequently very small. Class action suits are popular because they often involve matters in which no one member of the class would have a sufficient financial interest to warrant filing suit.

The number of people who comprise a class in a class-action are frequently very small.

Law enforcement officers are normally not allowed to collect reward money offered for the capture and conviction of criminals because: (select all answer options that are correct) The officers have a preexisting legal duty to apprehend criminals. Accepting a reward would violate principles of promissory estoppel. The officers have a preexisting moral duty to apprehend criminals. The officers are able to accept rewards, but the officer would have to deduct their pay from the amount of any reward received

The officers have a preexisting legal duty to apprehend criminals.

A party has an affirmative duty to disclose information in a contract when: (select all answer options that are correct) The party had previously made misleading statements The party is aware of material information that the other party cannot be expected to know There is a fiduciary relationship between the parties The other party is acting in good faith

The party had previously made misleading statements The party is aware of material information that the other party cannot be expected to know. There is a fiduciary relationship between the parties

An offeree is? The person to whom the offer to form a unilateral or bilateral contract is made. The person who makes an offer to form a bilateral contract The defendant in a case based on quantum merit. The person who makes an offer to form a unilateral contract.

The person to whom the offer to form a unilateral or bilateral contract is made.

Which of the following statements about unemployment compensation insurance is true? - The program is funded and administered by the individual states. - The program is a provision of the Family and Medical Leave Act. - The program is a provision of the National Labor Practices Act. - The program is a provision of the Occupational Safety and Health Act.

The program is funded and administered by the individual states

Which of the following statements is true about the use of the reasonable person standard in negligence cases? (select all the answer options that are correct) The reasonable person is presumed to have a minimum level of knowledge and common sense. The reasonable person of the standard takes on the physical characteristics of the defendant. The reasonable person standard is based on adults over 30. The standard of care for the reasonable person would be less stringent in emergency situations.

The reasonable person is presumed to have a minimum level of knowledge and common sense. The reasonable person of the standard takes on the physical characteristics of the defendant. The standard of care for the reasonable person would be less stringent in emergency situations.

Rights/duties ethical systems are not concerned with ____ .

The result of a decision or course of action

Which of the following is NOT a right guaranteed to workers by the National Labor Relations Act of 1935? - The right to organize into unions - The right to collective bargaining - The right to strike - The right to lock out management

The right to lock out management

If goods are destroyed while in the buyer's possession, and the buyer holds the goods under a sale on approval contract, the loss will fall on? The buyer and the seller equally The buyer only Whichever party has insured the goods. The seller only

The seller only

Unless the contract provides otherwise, place of deliver is assumed to be? The common carrier nearest to the seller The seller's place of business. The storage facility nearest to the buyer. The buyer's place of business

The seller's place of business.

A court will order the remedy of specific performance only if: (select all answer options that are correct) The terms of the contract are unclear. The subject matter of the contract is unique and the innocent party cannot be made whole with money damages. One of the parties to the contract is a minor. Money is not involved

The subject matter of the contract is unique and the innocent party cannot be made whole with money damages.

Which of the following could be argued by the defendant in a product liability case based on strict liability to limit the dollar amount of the damages awarded to the plaintiff? (select all the answer options that are correct) Group of answer choices: The product was sold more than one year prior to the injury The user was careless or misused the product. The manufacturer exercised all reasonable care in the manufacture of the product. The product was based on state of the art design.

The user was careless or misused the product. The manufacturer exercised all reasonable care in the manufacture of the product. The product was based on state of the art design.

If goods are sold under a negotiable warehouse receipt, risk of loss passes to the buyer when? The goods are tendered to the buyer. The warehouse receipt is tendered to the buyer The buyer takes possession of the goods The buyer pays for the goods.

The warehouse receipt is tendered to the buyer

One method for determining a fair value of the stock of a shareholder who dissents from a proposed merger is the ___

The weighted average method

Dan Defendant has a 100,000 judgment against him and he wants to appeal the decision. Which of the following statements about the appeals process is false? Dan is the appellant. Dan must file a notice of appeal within a prescribed time. Dan must post a bond to cover the judgment and court costs. There are no wrong answers: a, b, and c are all true.

There are no wrong answers: a, b, and c are all true.

Creditors may not force a debtor into an involuntary Chapter 13 bankruptcy because it would violate the debtor's ___ Amendment right against involuntary servitude First Fifth Thirteenth Twenty-second

Thirteenth

Famous Chef told Shrimp Boat Captain: I will buy your catch if I think the shrimp are large enough." What is the status of this promise? This is a valid promise because size is a quantifiable term. This is an illusory promise for a contract but a valid promise for promissory estoppel. This is a valid promise because the chef must make the decision in good faith. This is an illusory promise because the chef has complete control over whether or not he will keep the promise.

This is a valid promise because the chef must make the decision in good faith.

A judge has the power to render a judgment that differs from the jury's verdict if he/she believes the verdict was against the weight of the evidence. True False

True

Bob's Beer Barn and Booze is in a price war with Lucy Liquor's. Bob has talked to his attorney to find out if he can illegally bring a meritless lawsuit against Lucy that may potentially shut her down. Which of the following best characterizes this scenario.

This type of legal action cannot be ethically or legally justified.

Which of the following is NOT a power of the courts? To declare laws unconstitutional To interpret statutes To create administrative agencies To establish precedents in common law

To create administrative agencies

Seeking to overthrow the government is the crime of

Treason

Stock that a corporation buys back from its shareholders is ___

Treasury

"Good faith" in the code means honesty in fact in the transaction. True False

True

A basic principle of statutory interpretation is that specific provisions in the statute are of greater weight than general provisions. True False

True

A bilateral mistake of fact is grounds for rescinding the contract. True False

True

A bona fide occupational qualification cannot be used as a defense in claims of discrimination based on race or color

True

A buy and sell agreement normally specifies the terms under which a withdrawing or deceased partner's interest will be bought out T/F

True

A buy and sell agreement specifies the terms under which a withdrawing or deceased partner's internet will be bought out T/F

True

A consumer who does not complete the required consumer credit counseling course will not be given a discharge under Chapter 13

True

A contract entered into by a minor is voidable at the option of the minor. True False

True

A corporation is a person for purposes of the due process clauses of the 5th and 14th Amendments T/F

True

A corporation must qualify to do business in each state where it conducts business activities T/F

True

If a third party does not know that he is dealing with an agent and believes that the agent is acting on his own behalf and will perform on the contract, the principal in this situation is ___ - disclosed - undisclosed - partially disclosed - transparent

Undisclosed

Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." This is an offer to form what type of contract? Bilateral Implied in law Adhesionary Unilateral

Unilateral

The general legal principal under which an innocent person can be held liable for the wrongdoing of another is ... - respondeat superior - vicarious liability - primary liability - transferred liability

Vicarious liability

Which legal principal always imposes punitive damages on a master if the wrongful conduct of the servant justifies punitive damages? Vicarious liability rule Complicity rule Transferred liability rule Durham rule

Vicarious liability rule

Which legal principle always imposes punitive damages on a master if the wrongful conduct of the servant in the course of business justifies punitive damages? - vicarious liability rule - complicity rule - transferred liability rule - durham rule

Vicarious liability rule

The doctrine of substantive due process is designed to address

Violations of fundamental rights, such as voting and interstate travel.

The document issued by a storage facility acknowledging that goods have been accepted for storage is a ________________. Trade assignment Bill of lading Commercial acceptance Warehouse receipt

Warehouse receipt

Which of the following is NOT a factor in determining whether a servant was acting within the scope of his employment? - was the servant carrying on the master's business when the tort was committed? - was the servant disobeying the instructions of the master when the tort was committed? - was the instrumentality of the injury furnished by the master? - did the master authorize the servant to use the instrumentality of the injury?

Was the servant disobeying the instructions of the master when the tort was committed?

Which of the following is not a factor in determining if a servant was acting within the scope of his employment? a. Was the servant carrying on the master's business when the tort was committed? b. Was the servant disobeying the instructions of the master when the tort was committed? c. Was the instrumentality of the injury furnished by the master? d. Did the master authorize the servant to use the instrumentality of the injury?

Was the servant disobeying the instructions of the master when the tort was committed?

Promissory estoppel is often used in which of the following business situations? (select all answer options that are correct) When a businessperson reasonably relies on representations that he will get a franchise. When a contractor submits a bid in reliance on the bids of his subcontractors. When employees rely on employer promises about pensions and benefits, When employees are represented by union bosses

When a businessperson reasonably relies on representations that he will get a franchise. When a contractor submits a bid in reliance on the bids of his subcontractors. When employees rely on employer promises about pensions and benefits,

Promissory estoppel is often used in which of the following business situations? (select all answer options that are correct) When a contractor submits a bid in reliance on the bids of his subcontractors. When employees are represented by union bosses When employees rely on employer promises about pensions and benefits, When a businessperson reasonably relies on representations that he will get a franchise.

When a contractor submits a bid in reliance on the bids of his subcontractors. When employees rely on employer promises about pensions and benefits When a businessperson reasonably relies on representations that he will get a franchise.

Bob and Carol are heirs to some farmland located in Wicomico County. Bob lives in Brown County and Carol lives in Chester County. Because of ambiguous language in the will, some issues of title have arisen that need to be resolved in court. Under traditional rule of venue, which county will hear this case?

Wicomico

When a partnership ceases to exist, the process of reducing the firm's assets to cash, paying off the creditors, returning the capital contributions of the partners, and distributing profits is called ___

Winding up

Financial Wizard, whose office was in New York City, scammed billions of dollars from investors in a vast securities fraud scheme. Securities fraud is a federal crime and also a crime in New York State. The U.S. Attorney wants to try Wizard on the federal charges and the New York State Attorney wants to try him on the state charges. What result?

Wizard can be subjected to two trials: he violated two different sets of laws, one on the federal level and one on the state level, so double jeopardy will not attach.

Coca Cola wants to sue Coda Cola for trademark infringement. Coda soda cans have the same colors and ribbon letters as Coca Cola, and the names are very similar. Which of the following is the test used to determine if Coda's packaging is deceptively similar to Coca Cola's packaging? Did Coda act with malice in the choice of its design and logo? All of the above are required elements of the infringement test. Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola? Would supermarkets and retail stores be inconvenienced by having to display such similar products?

Would a casual observer or buyer be deceived into buying Coda instead of Coca Cola?

The last semester of his senior year, Marc had an unpaid internship in the sales department of a local TV station. When Marc left, he took a copy of the station's client list with him, reasoning that it would prove useful in the future when he graduated and got a permanent job at some other company in sales. Has Marc violated any agency duties? A. No, it was an unpaid position so he had no agency duties., B. No, Marc's duties to the TV station ended when his agency relationship ended., C. Yes, Marc violated a duty to protect confidential information, D. Yes, Marc violated a duty not to be negligent

Yes, Marc violated a duty to protect confidential information

Parker is a dealer in Oriental antiques and rugs. A sign in his store recommends that customers bring in their rugs to him for cleaning and repair. In fact, Parker does none of the cleaning or repair work for himself. He sends the rugs to Local Cleaners, for whom he works as an agent making a 20 commission. Due to a mishap at Local's plant, the rug belonging to Parker's customer was damaged. Is Parker liable to the customer for the damage? No, Parker is Local's agent and has no fiduciary duties to third parties. No, Parker has no liability because he was acting within the scope of this authority as Local's agent. No, Parker has no liability because agents are not responsible for the torts of the principal. Yes, Parker is liable because he is the agent of an undisclosed principal.

Yes, Parker is liable because he is the agent of an undisclosed principal

Rita knew that one of her customers regularly subjected an employee to lewd public sexual advances. The employee complained of this to Rita who took no action because the customer placed many large orders with her store. Does Rita have any liability for her customer's behavior? - No, Rita has no control over a customer's conduct and therefore no liability for that conduct. - No, it would put an undue burden on Rita's business to alienate an important customer. - Yes, Rita is liable under respondeat superior. - Yes, Rita is liable in negligence.

Yes, Rita is liable in negligence

Jim was called to active duty in the military. Knowing that he would be out of the country for a year or more, he gave his sister Peg authority to pay bills in his name, access his bank accounts, buy and sell stock in his brokerage accounts, and incur expenses to maintain his house and car and boat. Jim received several dividend checks from his stock broker while he was gone. Peg deposited the checks in her own bank account because her funds were low. Several weeks later she made out a personal check for the amount of the dividends and deposited it into Jim's account. Has Peg breached any agency duties? a. No, this is a gratuitous agency and her only duty is the duty of loyalty. b. No, her action made no difference because Jim ended up with the amount due him. c. No, there was no intent to convert Jim's money. d. Yes, she breached her duty to account.

Yes, she breached her duty to account

Beth invited friends for a BBQ and touch football game in her backyard. Roger, one of her guests, broke his ankle when his foot slipped into a hole as he ran out for a pass. Several malfunctioning sprinkler heads have been removed from the lawn for repairs, leaving dangerous, but hidden, holes. In common law, would Beth be liable to Roger for his injuries? Yes, she is liable in strict liability. Yes, she had a duty to warn him of hidden dangers. No, as an adult Roger is presumed to have the legal ability to take care of himself. No, her only duty to Roger was not to entrap him on the property.

Yes, she had a duty to warn him of hidden dangers.

Tim is the delivery person for a small local bakery. Tim often accepts payments from the bakery's customers when making his deliveries. Tim puts the payments that made by check in an envelope. He uses the cash payments to pay for his daily personal expenses. At the end of each week, he makes out a check to the bakery for the amount that he took in as cash payments. Has Tim breached any of his fiduciary duties as an agent? A. Yes, the duty not to be negligent B. Yes, the duty to account C. Yes, the duty of loyalty D. No, so long as he keeps careful accounts and gives the bakery all that it is due.

Yes, the duty to account

British Textile Manufacturer entered into a contract with Cotton Broker for 2,000 bales of cotton to be shipped from India to England on the ship "Peerless, sailing from Bombay." The contract was silent about the shipping date. Buyer expected the cotton to be shipped on the Peerless that sailed from Bombay in October; seller expected to ship the cotton on the Peerless that sailed from Bombay in December. By the time the second ship arrived in England, buyer had found another supplier and refused to accept the cotton. Does manufacturer have any defenses to the breach of contract suit brought by Broker? No, the buyer should have double checked the shipping date. Yes, there was a unilateral mistake of material fact Yes, there was economic duress Yes, there was a bilateral mistake of material fact

Yes, there was a bilateral mistake of material fact

A claim of sexual harassment from a sales representative working for your firm creates a potential liability that has ramifications in terms of: lost time working on productive endeavors emotional toll on other employees involved in the investigation financial loss if the claim is proven true all the above are correct

all the above are correct

Which of the following are legal protections available to a business that allow a business to capitalize on the firms intellectual property:

all of the above are legal protections for intellectual property

Assume that Defendant is found guilty and pursues his appeal up to the United States Supreme Court. If the Court agrees to hear his case, it will issue a writ of _________.

certiorari

In a ______ credit transaction, the amount of the loan is set. Revolving. Open-end. Closed-end. Credit card.

closed-end

A commonly cited disadvantage of an LLC is that its members often risk personal liability if the business of the LLC fails. True/False?

false

A creditor must exhaust his or her judicial remedies against the principal before seeking to recover from the surety.

false

A disadvantage of the Limited Liability Company is that profits are taxed both as income to the corporation and as dividends to the members. true/false?

false

A lien for the value of materials and labor used in the construction or improvement of real property is an artisan's lien. true/false?

false

A surety and guarantor have always been treated as the exact same thing. true/false?

false

A suretyship provides a lien credit a legal interest in the property of the debtor to secure repayment of the loan. true/false?

false

An LLC must have at least two members that participate in management in order to lawfully do business.

false

An artisan's lien is a special lien that applies exclusively to the liens artist receive on artwork they personally performed. true/false?

false

An artisan's lien is always assignable. true/false?

false

Any profits which a surety makes when called upon to perform the principal's duties belong to the surety.

false

At a meeting of creditors, the debtor may refuse to answer any questions about property that may have been removed from the list of assts.

false

Bob voluntarily surrender's a watch that he repaird back to the owner. Bob had a lien on the property for the value of his labor. Bob later re-acquires the property. Bob has now revived his lien since he was able to re-acquire possession of the property. true/false?

false

Bonding companies are usually uncompensated sureties. true/false?

false

Compared to other business entities, a general partnership requires filing complex documentation with the secretary of state's office before it is authorized to do business. true/false?

false

Debt collectors may make harmless misleading statements, such as "I am a lawyer", but may not threaten the debtor.

false

Lack of capacity and discharge in bankruptcy are two common defenses that are available to a surety that may be asserted against a creditor. true/false?

false

Limited Liability Companies are one of the oldest forms of business organization true/false?

false

Limited Partnerships offer a convenient way for professional and family-owned enterprises to do business. true/false?

false

Misconduct of the principal that induces a party to become a surety allows that surety to avoid the contract. true/false?

false

Modernly, surety and indemnification contracts are the same thing. true/false?

false

One of the disadvantages of a Limited Liability Partnership is double taxation. true/false?

false

The general contractor is eligible for a mechanic's lien on the real property, but the subcontractors on the project are not. true/false?

false

The majority of states have not yet enacted Limited Liability Partnership enabling statutes. True/False?

false

U. S. District Court in Vermont is hearing a case brought by a citizen of Vermont challenging the constitutionality of one of the provisions of the U.S. Patriot Act, a federal statute. In deciding this case, the court will use _____________ substantive law and _________ procedural law.

federal/federal

State law requires that state chartered banks post bonds to protect the banks from losses caused by embezzlement by bank employees. The bonds posted by banks are __________ bonds.

fidelity

In a jury trial, the judge would decide questions of ______ and the jury would decide questions of ________.

law,fact

____is the theory of jurisprudence which holds the decisions of those charged with administering the law, such as judges and juries, determines what the law is.

legal realism

A supervisor offering an employee a promotion or extra vacation time in exchange for sexual favors is an example of ___ harassment - quid pro quo - hostile workplace - constructive - disparate treatment

quid pro quo

Deductive reasoning requires one to ____.

use major and minor premises to draw logical conclusions


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