C713 - Business Law

What is the Restatement of Contracts?

- "A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty". - Completed in 1932

How long does copyright last?

- 70 years after the death of the author. If there is more than one author, the copyright expires 70 years after the death of the last surviving author. - If a company, such as a publisher, owns a copyrighted work, the copyright expires 95 years from the date of publication, or 120 years from the date of creation, whichever comes first.

What is the difference between a C corp and an S corp?

- A C Corp will have double taxation - Have no limit to the number of shareholders they are allowed - Medical reimbursement plans can go through C corps unlike S corps - An S Corp will have single taxation or flow through taxes - Cannot have more than 100 shareholders, all of whom must be U.S. citizens or resident aliens; they can have only one class of stock, and they cannot be members of an affiliated group of companies.

What are some of the key differences between C corps and S corps?

- A C Corp will have double taxation - An S Corp will have single taxation or flow through taxes

What is copyright?

- A bundle of intangible rights granted by statute to the author or originator of certain literacy or artistic productions, whereby, for a limited period, the exclusive privilege is given to that person to make copies of the same for publication and sale - Today, copyright extends to any form of creative expression, including digital forms

What is the difference between a tort and a crime?

- A crime is an act against the people as a whole. - Tort law holds individuals legally accountable for the consequences of their actions

What is the difference among a disclosed, undisclosed, and partially disclosed principal?

- A disclosed principal is known - An undisclosed principal is a secret principal, or: - the agent may tell the other person that he or she is acting as an agent but not disclose the principal's name, in which event the principal is "partially disclosed

What are some of the advantages and disadvantages of a general partnership (including taxation and liability)? Of a limited partnership?

- A general partnership is taxed just like a sole proprietorship. The partnership is considered a disregarded entity for tax purposes so income "flows through" the business to the partners, who then pay ordinary income tax on the business income. Tax planning opportunities are limited for general partners. - General partnerships are not taxable entities, and continuity in either may be disrupted by a life event. General partnerships have unlimited liability, whereas limited partnerships have limited liability. General partnerships have a right to manage, but limited partners have no right to manage. Partners share proportion on profit distribution based on interest, where as limited partners hare proportion based on interest but receive their share first.

What is specific performance?

- A judicial order to the promisor that he or she undertake the performance to which the promisor was obligated in a contract. - Alternative remedy to damages and may be issued at the discretion of the court, subject to a number of exceptions.

How would you describe Flow-Through (Pass-Through) entities?

- A legal business entity that passes income on to the owners and/or investors. Flow-through entities are a common device used to limit taxation by avoiding double taxation. - Only the investors and owners are taxed on revenues - Included sole proprietorships, partnerships, and S corps

What is the difference between a general partnership and a limited partnership?

- A limited partnership is a relationship where one or more partners are not involved in the day-to-day management of the business. ... - A general partner may invest money into the company. However, a general partner may also be personally liable for the debts of the company, while the limited partner is not. - Limited partners are only liable up to the amount of their capital contribution, provided the surname of the limited partner does not appear in the partnership (unless the name is coincidentally the same as that of the general partners whose name does appear) and provided the limited partner does not participate in control of the firm.

How is a sole proprietorship formed? How is it terminated?

- A person simply starts doing business, charging money and providing goods and services - To terminate: - Contact local Small Business Administration and determine if forms/paperwork are needed to close the business - Inform employees, post a closing message on the business website, remove product ordering pages, and fulfill all orders and service. - Provide termination notices to landlords and notify debtors and creditors - Pay an outstanding bills, and cancel business bank accounts/credit cards - Liquidate assets through sales/donations and set aside money for income taxes and potential creditor claims - Keep complete records of all transactions and file income tax forms

What is a principal's liability for the agent's criminal acts?

- A principal will not be held liable for an agent's unauthorized criminal acts if the crimes are those requiring specific intent. (i.e., department store proprietor who tells the chief buyer to get the "best deal possible" on next fall's fashions is not liable if the buyer steals clothes from the manufacturer (provided that the principal did not direct, approve or participate in the crime).

What is a design defect?

- A problem with how the product was designed - i.e. managers making a decision to save money by gluing parts together rather than welding them

What is restitution?

- A restoring to one party of what he or she gave to the other; i.e., money paid as a down payment may need to be restored to the purchaser if the seller does not follow through on the sale - Restoring the party to its original position - Restitution is awarded in contract matters involving voidable contracts - Infancy - Misrepresentation - Fraud - Mistake - Mutual - Unilateral

What are consequential damages?

- A subset of compensatory damages - Damages that flow as a foreseeable consequence of the breach

How would you describe product liability?

- A type of strict liability where the law seeks to protect consumers from faulty design or manufacturing of products. - There are two types of negligence: Negligent design and negligent manufacturing.

How would you describe the mirror image rule?

- Acceptance of an offer must match the offer in all its particulars or assent, then the acceptance is valid

What are some of the advantages and disadvantages of a sole proprietorship (including taxation and liability)?

- Advantages: Easy to create, no creation cost or time, entrepreneur in charge of the business simply starts doing business, charging money and providing goods or services - Disadvantages: Can only have one owner, impossible to bring in others to the business, no partner; unlimited liability

What is a subagent?

- Agents of the principal if the general agent had the express or implied authority of the principal to hire them - they are agents of both the principal and the principal's general agent, and both are liable for the subagent's conduct, although normally the general agent agrees to be primarily liable.

How are "brands" different from "trademarks"?

- All brands are trademarks - Not all trademarks are brands

How would you describe the doctrine of transferred intent?

- Allows the intent required by one intentional tort claim to be satisfied by showing the defendant's intent to commit a different intentional tort. - Example: A defendant intends to hit Bart with a baseball, but errantly throws wide left so that the ball whizzes right by Ashanti's head. The tortious intent to inflict a battery on Bart can be "transferred" to Ashanti for an assault claim. In this case, the intent transfers both from battery to assault and from Bart to Ashanti.

What is the Occupational Safety and Health Act (OSHA)?

- An agency within the department of labor that was created to assure so far as possible every working man and woman in the Nation safe and healthful working conditions - The act imposes on each employer a general duty to furnish a place of employment free from recognized hazards likely to cause death or serious physical harm to employees - Has the authority to inspect workplaces covered by the act whenever it receives complaints from employees or reports about fatal or multiple injuries - Requirements for employers: - Provide fall protection - Prevent trenching cave-ins - Prevent exposure to some infectious diseases - Ensure the safety of workers who enter confined spaces - Prevent exposure to harmful chemicals - Put guards on dangerous machines - Provide respirators or other safety equipment - Provide training for certain dangerous jobs in a language and vocabulary workers can understand

What is an agent's personal liability for torts and contracts entered into on behalf of the principal?

- An agent is personally liable for his or her wrongful acts and must reimburse the principal for any damages the principal was forced to pay, if the principal did not authorize the wrongful conduct. The agent directed to commit a tort remains liable for his or her own conduct but is not obliged to repay the principal.

What is the difference between an employee and an independent contractor?

- An employee works directly for the employer. Employer must withold income taxes, pay SS, Medicare taxes and unemployment tax on wages. - Employers do not have to withhold or pay any taxes on payments to independent contractors

What is the difference between an express contract and an implied contract?

- An express contract is one in which the terms are spelled out directly; parties are conscious that they are making an enforceable agreement - An implied contract is one that is inferred from the actions of the parties, i.e., a customer who asks for a turkey sandwich to go at a deli is obligated to pay when the sandwich is made. By ordering the food, the patron is implicitly agreeing to the price, whether posted or no.

What is the difference between a servant and an independent contractor?

- An independent contractor is a person who contracts with another to do something for him but who is not controlled (as a servant would be) by the other nor subject to the other's right to control with respect to his physical conduct in the performance of the undertaking.

How would you describe the "Shops Rights" doctrine?

- An invention "developed and perfected in [a company's] plant with its time, materials, and appliances, and wholly at its expense" may be used by the company without payment of royalties - because the servant uses his master's time, facilities and materials to attain a concrete result, the employer is entitled to use that which embodies his own property and to duplicate it as often as he may find occasion to employ similar appliances in his business.

What is a sole proprietorship?

- An unincorporated business with a single owner who pays personal income tax on profits earned from the business

What are some of the categories of strict liability?

- Animals - Ultrahazardous or abnormally dangerous activities - Product liability

What is a trademark?

- Any kind of name, logo, motto, slogan, device, sound, color or look that identifies the origin of a particular good or service - Anything distinguishing you as a good or a source of a product - Right to prevent others from using a company's product name, slogan or identifying design

What are the defenses to trademark infringement?

- Arguing that no infringement has occurred because the two marks are sufficiently different that consumers will not be misled - Fair use - Comparative advertising - Free speech

What is the difference between a unilateral contract and a bilateral contract?

- Bilateral contract - Each party pledges to do something and each is the recipient of such a pledge, each is both promisor and promisee - Unilateral contract - In which only one party makes a promise, are equally valid but depend on performance of the promise to be binding; i.e., if someone says, I will pay you $5 to wash my car, you wash the car, then that person is obligated to pay you for the work done.

How long does a trademark last?

- Can last forever and are not subject to the Constitution's "limited time" restriction

What is the National Labor Relations Act of 1935 (Wagner Act)?

- Comprehensive labor statute and named after its sponsor, Senator Robert F. Wagner, which declared in Section 7 that workers in interstate commerce "have the right to self-organization to form, join or assist labor orgs, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection.

How would you describe the differences between contributory negligence and comparative negligence?

- Contributory: Under old common-law rule, even if plaintiff was only mildly negligent, most of the fault being chargeable to the defendant, the court would dismiss the suit if the plaintiff's conduct contributed to his or her injury. - Comparative: Under this rule, damages are apportioned according to the defendant's degree of culpability. I.E. if the plaintiff has sustained a $100K injury and is 20% responsible, then the def. will be liable for $80K in damages.

How would you describe promissory estoppel?

- Courts will stop the promisor from claiming that there was no consideration. - Invoked when four conditions are met: - There is a promise on which a claim is based - Foreseeable reliance by the promisor - Actual reliance by the promisee - Injustice without enforcement

How are agencies created?

- Created by the legislature. - At the federal level, they are created by Congress - At the state level, they are created through the state legislative bodies - May be thought of as a delegation of congressional authority to area experts in particular fields - Created by enabling legislation, which sets forth the agencies jurisdictional boundaries, rule=making procedures and other information relating to agencies' scopes of power.

What is an express warranty?

- Created whenever the seller affirms that the product will perform in a certain manner - Formal words such as "warrant" or "guarantee" are not necessary. - 3 parts - (1) an affirmation of a fact or promise relating to the goods, (2) a description of the goods, or (3) a sample or model

What are punitive damages?

- Damages that are awarded for the purpose of punishing a defendant in a civil action, in which criminal sanctions may be unavailable - They are not part of the compensation for the loss suffered; they are proper in cases in which the defendant has acted willfully and maliciously and are thought to deter others from acting similarly.

What are compensatory damages?

- Damages that are awarded to make the non-breaching party whole

What are punitive damages?

- Damages that are awarded to the plaintiff by the defendant for punishment (punitive - purpose is to punish the defendant's actions) - Sometimes called exemplary damages - The law in most states permits recovery of punitive damages only when the defendant has deliberately committed a wrong with malicious intent or has otherwise done something outrageous.

How would you describe "genericide"?

- If the mark refers to a class of goods instead of the company's mark, the trademark can no longer exist. - Many words today once started as trademarks: furnace, aspirin, escalator, thermos, asphalt, zipper, soft-soap, colophon, lite beer, Q-tip, and yo-yo are all examples of trademarks that are now generic and have therefore lost legal protection.

What is a bonafide occupational qualification (BFOQ)?

- The law allows discrimination on the basis of religion, sex, and national origin if there is a BFOQ reasonably necessary for normal business ops. (i.e., a Jewish synagogue may restrict hiring of rabbis to Jewish people only, and a Catholic church can restrict hiring priests to Catholic men only.

What are the four interests associated with a person's right to privacy?

- The right to control the appropriation of your name and picture for commercial purposes - The right to be free of intrusion on your "personal space" or seclusion" - Freedom from public disclosure of embarrassing and intimate facts of your personal life - The right not to be presented in a "false light"

What is the Age Discrimination in Employment Act of 1967, and who is covered?

- This act makes it illegal to discriminate against workers over the age of 40. - People are covered in a workplace with more than 20 workers and employees/candidates over the age of 40.

What types of employer conduct violates this law?

- Threatening employees with loss of jobs or benefits if they join or vote for a union or engage in protected concerted activity - Threatening to close the plant if employees select a union to represent them - Questioning employees about their union sympathies or activities in circumstances that tend to interfere with, restrain, or coerce employees in the exercise of their rights under the act - Promising benefits to employees to discourage their union support - Transferring, laying off, terminating, assigning employees more difficult work tasks, or otherwise punishing employees because they engaged in union or protected concerted activity - Transferring, laying off, terminating, assigning employees more difficult work tasks, or otherwise punishing employees because they filed unfair labor practice charges or participated in an investigation conducted by NLRB

What is the function of the EEOC with respect to a Title VII claim?

- Title VII created the EEOC to enforce civil rights in the workplace. - It publishes guidelines and interpretations for the private sector to assist businesses in deciding what employment practices are lawful or unlawful. - EEOC also investigates complaints filed by workers who believe they are victims of unlawful discrimination. - Employees must file Title VII charges with the EEOC first before going to court.

What is the purpose and coverage of the Title VII of the Civil Rights act of 1964?

- To prohibit employers (with 15 or more employees) from discriminating against employees on the basis of sex, race, color, national origin and religion. - Title VII also prohibits the acts of retaliation against anyone who complains about, or participates in, any employment discrimination complaint.

What is a trespasser? Licensee? Invitee?

- Trespasser is one who intentionally enters upon someone else's land without permission (express or implied) or some other privilege to do so - Licensee is someone who comes onto land with the owner's consent as a social guest - Invitee is someone who comes on the premises with a business purpose - Could be someone simply shopping in a mall

Describe negotiation as a method of ADR

- Two parties try to settle a dispute themselves )or through their attorneys) - Helps to preserve relationship - Most simple form - Least formal process ***No third party is involved in the negotiating process.****

Describe arbitration as a method of ADR.

- Two parties try to settle a dispute with the help of a 3rd party (arbitrator) - Arbitrator will hear arguments, weigh evidence and make a decision on the outcome of the dispute - Decision may be binding on the parties ( no right to appeal)

Describe mediation as a method of ADR.

- Two parties try to settle a dispute with the help of a neutral 3rd party (mediator) - Neutral, impartial, does not represent either parties' interests - Helps to guide the parties to a resolution - Helps to preserve relationship - Does not make a decision for the parties nor determine the outcome

What are the different classes of corporate shareholders?

- U.S. corp law allows for the creation of different types, or classes of shareholders. Shareholders in different classes may be given preferential treatment when it comes to corp actions such as paying dividends or voting at shareholder meetings. (i.e., Founders of a corp may reserve a special class of stock for themselves with preemptive rights. These rights give the shareholders the right of first refusal if the company decides to issue more stock in the future, so that the shareholders maintain the same percentage ownership of the company and thus prevent dilution of their stock.

What are the three different types of patents?

- Utility patents: Most common and may be granted for machines, processes, articles of manufacture, compositions of matter or for improvements to any of these items. - Design patents: May be granted for ornamentally designs for articles of manufacture ( manufactured items). - Plant patents: Cover inventions or discoveries of asexually reproduced plants (i.e., plants produced through methods such as grafting

How would you describe the difference between a void contract and a voidable contract?

- When an agreement lacks one of the legal elements of a contract, it is said to be void - that is, not a contract at all. - A voidable contract is one that is unenforceable by one party but enforceable by another. I.E., a minor may "avoid" a contract with an adult; the adult may not enforce the contract against the minor, if the minor refuses to carry out the bargain.

What is the Americans with Disabilities Act of 1990 (ADA)?

- Who is covered? - qualified individual with disability - meets the legitimate skill, experience , education or other requirements for the position and can perform the "essential functions" of the job with reasonable accommodations - A disabled person is someone with a physical or mental impairment that substantially limits

What types of things can be trademarked?

- Words can be trademarks, but invented words are the best type of trademark - Phrases, logos, mottos, slogans, devices, sounds, color or a look

When would mediation be used in business?

- Workplace conditions - Wrongful discharge - Advancement grievances - Contract disputes - Medical malpractice cases or healthcare disputes

What is a "derivative litigation"?

- a lawsuit brought by a shareholder on behalf of a corp. This often happens when the defendant in the suit is someone close to the company such as a director or a corporate officer

How would you describe an agency coupled with interest?

- an agent whose reimbursement depends on continuing to have authority to act as an agent

How is an agency

- by agreement (expressly) or by operation of law (constructively or impliedly)

What is an implied warranty merchantability?

- guarantees that a product will work as expected - An unwritten and unspoken guarantee to the buyer that goods purchased conform to ordinary standards of care

What is the difference between an implied agency and an apparent agency?

- implied: Children's needs - Apparent: There appears to still be an agency, so the agency holds

What is "consideration"?

- something given or received for something else - quid pro quo between the contracting parties in the absence of which the law will not enforce the promise or promises made - Consideration substitute

What is a warranty?

- the guarantee that a particular product will perform in a specific way or up to a specific standard - A representation that something is true and will remain true until some point in time

What is litigation

- the process of bringing a lawsuit into court to settle a dispute, whether criminal or civil - Litigator is an attorney who spends a lot of time in the courtroom and specializes in the trial process

How would you describe "self defense"?

-Entitles a person to use reasonable force, as apparently necessary, to prevent an imminent and unconsented-to touching that is harmful or offensive or with confinement. (You can defend yourself with reasonable force where there is an immediate threat of battery or false imprisonment.)

Which rule is not automatically discriminatory but may be discriminatory in practice because it excludes too many people in a protected group? Disparate impact Prima facie discrimination Unbalanced treatment Disparate treatment

A - Disparate impact occurs when an employer's action that appears neutral on its face indirectly discriminates against members of a protected class

Federal jurisdiction based upon a "federal question" includes cases based on all of the following EXCEPT: Diversity A federal treaty The U.S. Constitution A federal statute

A - Diversity

Which function does the third party serve in this situation? Mediator Arbitrator Sole negotiator Intermediary agent

A - Mediator

Eva, a minor, buys a guitar for $1,000. She plays the guitar for three months until her 18th birthday, paying each month. Before the next month's payment is due, she decides she does not want to play the guitar anymore. What can she do? Give the guitar back and gain release from the contract. Nothing since she is no longer a minor and cannot void the contract. Nothing, since paying each month ratified the contract. Give the guitar back; she continues to be responsible for the remaining payments.

A - Minors can void contracts within a reasonable time after reaching adulthood.

Joe and Jan operate competing business and enter into an agreement to form a partnership. Joe insists that all disputes be resolved peacefully, between just the two parties and their respective attorneys. Which form of ADR would be most appropriate here? Negotiation Mediation Arbitration Litigation

A - Negotiation

Where does the burden of proof lie in a civil? The plaintiff must produce a preponderance of evidence The defendant must produce a preponderance of evidence The defense must prove all elements beyond a reasonable doubt The prosecution must prove all elements beyond a reasonable doubt

A - Plaintiff must produce a preponderance of evidence

If in 1900, the Minnesota Supreme Court ruled that a minor can void a contract at any time during minority, and, in 2014, the courts in Minnesota still follow this ruling, what is this an example of? Precedent Statutory law Enabling legislation The bystander rule

A - Precedent is formed by a policy called stare decisis, or "let the decision stand." Cases use the same rule of law generated from already-decided cases regarding the same legal issue.

Which option would be eligible for protection under trademark law? The magenta color of T-Mobile The product name "Leather Shoez" (describing shoes that are not made of leather) A photo taken by a professional photographer The product name "Inkjet Printers"

A - Sounds, shapes, symbols, and even colors can be trademarks. Do not confuse the term of trademark with ownership of color though. Trademarking a color simply allows a company to use a particular combination and shade of color in its own industry.

Which kind of law is enacted by state or federal legislatures? Statutory law Common law Constitutional law Administrative law

A - Statutory law is enacted by state or federal legislatures

Which courts are the federal court system's trial courts of general jurisdiction? The U.S. district courts The U.S. courts of federal claims The U.S. tax courts The U.S. courts of appeals

A - The U.S. District courts

Jack is employed by Jaunty Coffee Co. to drive a delivery truck. He always stops for lunch at the diner around 11:30 am. When he is driving to the diner, he hits another car, injuring the driver. What must the plaintiff prove for Jaunty Coffee Co. to be held liable? Jack was within the zone of risk Jack was not acting within the scope of employment Jack had apparent authority Jack was on a frolic and detour

A - The employer will be held liable if the employee is where he should be, and his negligence put the plaintiff in immediate harm.

Daniel enters a contract with Anika for Anika to design and furnish Daniel's basement, starting in one month. One week after the contract is finalized, Daniel's basement floods and needs several repairs. Under which theory will this contract be discharged? Discharge by operation of law Discharge by agreement Discharge by performance

A - The law recognizes the impossibility of completing the contract as valid grounds for discharging a contract.

Why are large/public corps good for the economy? Choose 2. Decrease the price of some goods Lead to branding Pay dividends to officers Increase income to insurance companies and pension

A and D

How can a contract be discharged?

- Can occur by agreement of the parties involved in the contract - Mutual rescission Novation - When both of the parties to a contract agree to substitute a third party for one of the original parties. - Settlement Agreement or compromise - occurs when a legitimate dispute over obligations under an existing contract will be recognized at law - Accord and satisfaction - Accord is a contract to perform some act to satisfy an existing contractual duty that is not yet discharged

How would you describe false imprisonment?

- Can occur if a person is restrained in a room or a car or even if a person's movements are restricted while walking down the street - Takes place when someone intentionally confines or restrains another person's movement or activities without justification - People have a right to be free to go as they please, and anyone who without cause deprives another of personal freedom has committed a tort

How would you describe "assumption of risk"?

A common rule of exculpation is assumption of risk. This doctine comes up in three ways: - Plaintiff may have forally agreed with the defendant before entering a risky situation that the plaintiff will relieve the defendant of liability should injury occur. ("you can borrow my car if you agree not so sue me if the brakes fail, they are worn." - Plaintiff may have entered into a relationship with the defendant knowing that the defendant is not in a position to protect the plaintiff from known riss (the fan who is hit by a line drive in a ballpark). 0 Plaintiff may act in the face of a risky situration known in advance to have been created by the defendant's negligence (failure to leave while there was an opportunity to do so, such as getting into an automobile when the driver is known to be drunk.)

What are the advantages and disadvantages of mediation

Advantages: - Expediency of reaching a resolution - Reduced costs as compared to litigation - Ability for parties that are unable to communicate with each other to resolve their dispute using non-adversarial process, the imposition of rules on the process by the mediator to keep parties "within bounds" of the process, confidentiality and the voluntary nature of participation Disadvantages: - If participants are unwilling to cooperate, mediation won't work - Mediation may fail - Resolution may have to be postponed until another form of ADR is used or until the parties litigate their case in court

What are the advantages and disadvantages of arbitration?

Advantages: - Faster and less expensive - Avoid the uncertainty of a jury trial - Businesses may not want to set precedent by going to court (keep it out of the headlines) - It is confidential Disadvantages: - May lose right to appeal decision - No public record of case - Case not docketed for easy follow-up - Give up right to discovery process (formal process of gathering evidence to support case)

What are some of the advantages and disadvantages of an LLC (including taxation and liability)?

Advantages: - Personal liability is limited because it is legally separate from the owner, i.e. personal assets such as the member's home and bank accounts are protected. - LLC is responsible for its own debt and obligations - Less paperwork - No shareholder meetings,annual reports or annual feeds Disadvantages: - Members must take care to interact with LLCs at arm's length because the risk of piercing the corp veil exists with LLCs as much as it does with corps - Fundraising for an LLC can be as difficult as it is for a sole proprietorship, especially in the early stages - Most lenders require LLC members to personally guarantee any loans the LLC may take out - LLCs are not the right form for taking a company public and selling stock

How would you describe "fraud"?

Allows a cause of action in certain circumstances that are called, in the ordinary vernacular, "getting ripped off". - A fraud claim requires that the defendant made a misrepresentation to the plaintiff, that the plaintiff relied on it, and that this ended up making the plaintiff worse off.

Which of the following is an accurate statement regarding alternative dispute resolution(ADR)?

ADR helps settle disputes without resorting to trial

How would you describe "attractive nuisance"?

Anything on one's property that poses harm: - Pool - Abandoned cars - Refrigerators left out for collection - Trampolines - Anything that might poe danger to children that they cannot understand or appreciate

A hockey team is being sued by a spectator who has been injured by a puck hit into the stands. The team may claim _________ as a defense.

Assumption of the risk - A spectator knew of risks when attending the hockey game and should assume a puck could hit him or her while attending the game.

A branch of tort law that imposed a much higher level of liability when harm results from ultrahazardous acts or defective products is referred to as? Res ipsa loquitor Strict liability Heightened liability Strict negligence

B

A real estate agent is an example of which type of agent? General agent Special agent Agency coupled with interest Subagent

B

A sports fan attending a baseball game, injured when a baseball is hit into the stands, would be subject to which defense? Ultrahazardous activity Assumption of risk Res ipsa loquitor Strict liability

B

Carla loaned her favorite umbrella to Tara when it began to rain. Tara decided to keep the umbrella in her car for future inclement weather later in the week but was going to return it to Carla. Unfortunately, Tara's dog chewed the umbrella, and it was no longer usable. What cause of action will Carla assert? Theft Conversion Trespass to Chattels None of the above

B

Eva works for the cash register at a mechanic's shop. The mechanics post pictures of scantily-clothed women at their work stations. They regularly discuss activities at work and often tell "dirty" jokes. Eva feels very uncomfortable and sued for sexual harassment. What is Eva's argument? Disparate treatment Hostile work environment Disparate impact Quid pro quo

B

Fred is a 2nd year lawyer in a law firm. He has to bill 2200 hours a year. He works 16 hour days for 6 months and has a nervous breakdown. He files a claim under workers' comp for the extreme stress. What is the result? He will lose because mental illness is not a recognized disability He may win because mental illness is a recognized disability He may lose because their lawyers in his position did not have the same reaction to the same workload He may win if he can prove the employer knew or should have known the potential outcome of that billing requirement

B

How is a limited partnership different from a general partnership? A limited partnership does not have general partners, while a general partnership does Limited partners are liable only up to their contribution, while general partners are personally liable without limits A limited partnership does not have flow-through taxes A limited partnership must file a statement of qualification, and a general partnership does not have to

B

Leilani purchases a donut from a local bakery. In the first bite, Leilani breaks a tooth because of a piece of metal is in the donut. Leilani has to see a dentist to fix her broken tooth. Which warranty was breached? Implied warranty of fitness Implied warranty of merchantability Express warranty

B

Maggie contracts with Andrew, a minor, to sell her car. When Andrew turned 17 he disaffirmed the contract and stated that he no longer wants the car. Is the contract voidable by Andrew? No, because once in a contract it is not voidable Yes, because Andrew was a minor when he disaffirmed No, because this will be unfair to Maggie Yes, because Andrew changed his mind

B

Omar is a limited partner in Bullzai Limited Partnership (LP) and does not participate in management. Daniel is the general partner. Who is liable for Bullzai's debts? Omar and Daniel are equally liable for all the LP's debts Omar is liable for the LP's debts up to his capital contribution, but Daniel is liable for all debts Omar is not liable for the LP's debts, but Daniel is liable for all debts Omar is liable for 30% of the LP's debts, and Daniel is liable for 70% of the LP's debts

B

Doris owns 200 acres of land and told her daughter, Julie, that she could build a house on the property. Julie used the proceeds of a personal injury settlement to finance the house. Julie then asked Doris for a deed to the property so that she could obtain a mortgage, but Doris refused. Will Julie prevail in her suit against Doris? Yes, because Julie is entitled as Doris's daughter Yes, because Julie actually relied on Doris's promise No, because Doris has a right to change her mind No, because Doris did not foresee that Julie would actually use her settlement money to finance the house

B - Yes, this is based on all four factors: - Doris promised Julie that she could build a house on her 200 acres - Doris had foreseeable reliance that Julie would actually build the house since Julie used the personal injury settlement to finance her house - Julie actually relied on Doris's promise and used the settlement money to finance the house. - If the court does not agree with Julie, then there would be injustice due to not enforcing Doris's promise to Julie.

Daniel recently got hired by Jess and they entered into a contract that specifies how much money Daniel will make for the job. The contract also specifies how and when the job should be performed. Which type of authority has been formed in this relationship? Implied Express Traditional Apparent

B - Express authority is the authority that the principal has expressly given to the agent whether orally or in writing.

Which cases arise under the U.S. Constitution, treaties and federal statutes and regulations? Copyright and trademark cases Federal question cases Federal crime cases Diversity of citizenship cases

B - Federal Question Cases

After attending a sales conference where the message was to do whatever it takes to increase profits, a sales rep for a custom clothing company overcharges a customer for his purchases and adds purchases to the customer's orders that the customer has not approved. Is the custom clothing company responsible to the customer for the sales rep's actions? No, the sales rep acted intentionally, therefore the company is not responsible. Yes, liability for the intentional torts is transferred to the principal if the agent is acting to further the principal's business. The company and sales rep are both responsible. Yes, the company directed the sales rep to behave in a way that resulted in criminal acts.

B - In the agency relationship, the principal has a duty to indemnify the agent against any claims and liabilities that stem from discharging duties assigned by the principal.

A landlord is receiving constant complains about a tenant's loud music. He does not want to lose the tenant, and he would like to resolve the issue. The landlord wants to hire a neutral third party to help reach an agreement. Which method would be best to accomplish this? Arbitration Mediation Litigation Mock trial

B - Mediation

How would you describe "duty of care"?

Businesses owe a duty to exercise a reasonable degree of care to protect the public from foreseeable risks that the owner knew or should have known about. I.E. Stores need to prevent customers from being injured in retail stores, from falling objects improperly placed on high shelves, to light fixtures exploding or falling due to improper installation, to customers being injured by forklifts in so-called warehouse stores.

"Just Do It" is a famous tagline used by the Nike Corp. Which of the following types of intellectual property would this tagline come under? Patent Trade secret Trademark Copyright

C

A _______________ is a product formula, pattern, design, compilation of data, customer list, or other covert business information. Copyright Patent Trade secret Trademark

C

A ________________ is a patent that protects the functionality of a patent. Method patent Design patent Utility patent Process patent

C

A general partnership does not want to dissolve when a partner transfers its partnership interest. What can the partnership do to prevent this? Create an operating agreement Nothing because the law says that dissolution will occur in this instance Create articles of partnership with a buy-sell agreement Nothing because partnership agreements are created by statute

C

A real estate agent representing the buyer tells the seller that the buyer would be willing to pay much more than the asking price. Which duty did the agent owe the principal in this situation? Duty of skill and care Duty to indemnify Duty of loyalty Duty to compensate

C

A soft drink manufacturer protects a closely guarded formula for a recipe. What is the recipe an example of? Patent Trademark Trade secret Copyright

C

An employee of a flower shop has been purchasing buckets of flowers for the shop from a farmer's market weekly for almost six months. What type of authority does the flower shop employee have at the market? Express Implied Apparent Limited

C

Which of the following defines the Statute of Frauds? Any statute that lists the elements of fraud A statute that requires certain contracts to be in writing and signed by the parties A statute that says fraudulent contracts are void A statute that says fraudulent contracts are voidable

B - Statute of Frauds is a law that requires that certain contracts be in writing, and that those contracts be signed by the parties who are to be bound by the contract.

Sophia is a real estate agent who contracts with Maria to sell Maria's house. Sophia secretly represents a buyer who makes a bid for the house. How is Sophia's agency terminated? Impossibility Implied termination Operation of law Acts of the parties

B - The agent was disloyal in secretly representing a buyer, creating the conditions for an implied termination.

Which scenario would not result in a valid agency relationship? A son takes over his mother's estate after her death and in absence of will but with court approval. The truck driver uses his company vehicle to pick up his daughter from a school activity. A home owner enters into a verbal agreement with the contractor to make repairs, and the contractor then hires a painter. The owner of a salon hires a part-time nail technician.

B - The company vehicle is only authorized to do work for the company. Excursions with the vehicle outside of the scope of employment are not covered or part of the agency relationship.

Which group represents a landowner's lowest liability? Trespassing children Trespassing adults Invitees Licensees

B - The duty of care to adults is less than to children, and trespassing adults are not owed a duty of care beyond the landowner not willfully injuring them.

The owner of a retail store hires a manager to supervise inventory. The manager makes the decision to purchase two orders of widgets. When they arrive, the owner refuses delivery, stating that the order was not authorized and the store did not need them. The widget company sues the owner and the manager individually for breach of contract. Which duty did the manager owe the owner in this situation? Duty to act only as authorized Duty to obey Duty to provide information Duty of good conduct

C

Tina had surgery two years ago and is now experiencing abdominal pain. An X-ray revealed a scalpel still inside Tina's abdomen. The surgeon denies liability. Does ipsa loquitur apply here? No, because the statute of limitations has run out. No, because Tina should have filed a complaint two years ago. Yes, because the instrument was in the surgeon's control. Yes, because there were other people in the operating room

C

Under Constitutional law, which amendment provides fundamental guarantees in cases regarding life , liberty, or property of U.S. citizens? First Amendment Second Amendment Fourteenth Amendment Eighth Amendment

C

What is a work considered once copyright has expired? Minimized rights Fair use Public domain Creative commons

C

What is the term for when copyrighted material is used in a satire or parody? Piracy Copyright sharing Application of fair use doctrine Copyright infringement

C

Which circumstance would allow the continuation of an agency relationsip? The agent the company was in a relationship of an agency relationship? The principal has gone bankrupt The company hires a new manager of the agent's division The company the agent represented dissolved

C

Which of the following acts resulting in injury would be negligence per se? Joe sold fireworks from his Indiana store (legal) to Steve, an Illinois resident (a state that has made owning fireworks illegal). June, while driving the speed limit, sideswiped the car next to her. A retailer sold glue containing benzene to a 14-year-old boy in violation of state law. Tammy accidentally dropped a heavy carton on Sara's foot at work

C

Which type of business is easy to start, has an owner who is his or her own boss, and has an owner who keeps all the profits? Partnership Franchise Sole proprietorship Corporation

C

Which situation is an example of a void contract? A contract entered into by someone voluntarily drunk A contract for the sale of alcohol to a competent adult A contract entered into by a person judged to be insane A contract for the sale of land to a competent adult

C - A contract is void when any of the parties to the contract is not "competent" to enter into a legal agreement.

Which type of contract is created in cases where someone would be unjustly enriched unless he or she were held liable for the benefits received? A void contract An implied contract A quasi contract An executory contract

C - A quasi contract is a contract that exists by order of a court, not by agreement of the parties. Courts create quasi contracts to avoid the unjust enrichment of a party in a dispute over payment for a good or service.

Which type of law is used when the FCC publishes a regulation on cigarette advertising on television? Statutory law Criminal law Administrative law Constitutional law

C - Administrative Law

What is a reasonable accommodation for a disabled worker? Assigning a shadow employee to work with the employee Creating a new job for the disabled worker Providing a part-time schedule Modifying a job description and job dutiesAllowing a disabled employee to work part-time is a reasonable accommodation that would not result in an undue hardship for the company

C - Allowing a disabled employee to work part-time is a reasonable accommodation that would not result in an undue hardship for the company

Which court hears appeals directly from trial courts A court of record The highest state court An intermediate appellate court An inferior trial court

C - An intermediate appellate court

Bob buys a Ferrari from Carson's Cars. The motor fell out of the Ferrari on the drive home and Carson refuses to address the problem. Bob threatened to sue Carson, and Carson laughed. Bob did not read his sales contract carefully and did not realize that it contained the following provision: "Buyer agrees to submit all disputes to a 3rd party who will decide the final outcome of the case." Which process is being described in this situation? Negotiation Mediation Arbitration Litigation

C - Arbitration

Maya mistakenly parked her car in the maintenance area of her apartment complex owned by Michael. The following morning, Michael found that he could not pull his maintenance van out of the garage. Michael knocked on Maya's apartment door for an hour, but she never answered. Which tortious activity occurred? False imprisonment Invasion of privacy Trespass Conversion

C - Because Maya parked in the maintenance are of the apartment complex, she is guilty of trespass to land, which occurs when someone enters onto, above, or below the surface of land owned by someone else without the owner's permission.

Adam decided to play a practical joke on Linda, a co-worker. As Linda was leaving the office one night, Adam, wearing a mask, stepped out from behind some bushes. He pointed a handgun made out of licorice at her and demanded her purse. He then pushed the candy gun to her head and told her if she told anybody he'd kill her. Linda was very scared during the whole incident. She did not think it was funny when Adam pulled the mask off and took a bit out of the gun as he gave her the purse back. Which statement is correct? Adam committed an assault but not a battery Adam committed a battery but not an assault Adam committed an assault and a battery Adam committed neither an assault nor a battery since he used a candy gun and was playing a joke on Linda.

C - Because he threatened her (fear of harm) and battery when he touched her by putting a gun to her head.

Statutory law is to legislative bodies as common law is to: Agencies Administrative regulations Courts Rulemaking

C - Common law arises through judicial decisions made in courts

Which of the following defines consideration in contract law? Legality of the subject matter of a contract Ability of a party to enter into a legal contract Promises or something else of value Genuine consent of both parties

C - Consideration is the concept of legal value in connection with contracts. It is anything of value promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from future action, and much more.

A mark that indicates that a person has met the standards set by an org is a member of that org is known as a(n) _______.

Collective - earned by those individuals who have met service standards set by an org.

How would you describe "conversion"?

Conversion is a property tort. - An intentional act by a defendant causing the destruction of or a serious and substantial interference with the plaintiff's personal property - Conversion = Plaintiff may immediately pursue damages - Theft = Plaintiff has to wait on criminal prosecution

What are some of the advantages and disadvantages of a corporation (including taxation and liability)? Of an S corp?

Corps are responsible for filing tax returns and can be audited by the IRS. - Two types for Corps for Tax Purposes: - C Corporation - Must "zero" out the books annually, or the company will fax double taxation - Shareholders will have to take a salary if all other efforts are exhausted to clear the books, and they will have to pay SS and Medicare tax. - Negative of a C corp is that the corp itself, as a separate legal entity, must pay taxes on net profits and the corporate level. Then the shareholders must pay taxes on the on the remaining net profits distributed to them. - C Corps pay taxes at the corp level and the owner level, while S corps pay taxes only at the owner level. - S Corporation (for small businesses) - Because an S corp makes an election to be treated favorably by the IRS, the corp does not have to pay taxes, but the shareholders pay taxes on the net profits. So it is said that the money "flows through" the corp to the shareholders for tax purposes. This results in overall lower taxes for S corps. - S Corps do not have to pay SS and Medicare tax on dividend income

A customer has a contract to buy a new fridge that costs $750 from a store and makes a deposit of $200. The store sells out of refrigerators, so the customer buys one from a different store for $800. What are the customer's damages? The contract price The buyer's new cost The amount of the original deposit The difference between the contract prices

D

A trainer agrees to fly to another state to train a new group of employees. Her flight home is delayed due to a major storm and she must pay to stay in a hotel for two nights. What duty does the company who requested the training owe the trainer? Duty to compensate Duty to indemnify Duty co cooperate Duty to reimburse

D

An individual is starting a business with another company. They want to be able to decide each year how to be taxed. Which type of business model should this individual choose? Nonprofit Limited partnership General partnership Limited liability company

D

Angela sued Tom for battery. Angela was awarded $30,000 for future medical expenses. Five years after the award, Angela realizes that her medical expenses will far exceed $30,000. Under the single recovery principle: Angela will be able to submit the additional medical bills to the court for payment Tom will have to pay the additional medical bills Tom will have a qualified privilege and only have to pay a portion of the additional medical expenses Angela will have no recourse against Tom or the court for the medical expenses as long as the original award was reasonable

D

Enacted in 1932, the _____________ is a federal statute which stipulates that it is legal for employees to organize. National labor relations act Labor management relations act Taft-Hartley Act Norris-La Guardia Act

D

Endothon Company drilled an oil well on property it owned in a residential neighborhood in South Beach. Bill lived next door. Although the company followed standard operating procedures and obeyed all relevant regulations, the oil well "blew" spring mud and oil on Bill's property. What best describes the company's liability to Bill? Your liability is based on the foreseeability of the harm You are liable for the harms you cause only if the other party was negligent You are liable for the harms you cause regardless of your fault Your liability is based on your intent to harm someone

D

How long can a trademark be protected under federal law? 20 years 10 years 14 years Indefinitely

D

In a negligence case, the plaintiff must establish: Duty, strict liability, causation and injury Mens rea, breach, foreseeable harm and causation Duty, actus reus, foreseeable harm and causation Duty of due care, breach, causation, foreseeable harm and damages

D

In addition to phrases, symbols, and designs, which of the following can also be trademarked? Concepts Ideas Proposal Words

D

Kamal and Sara own a camping gear company. Kamal had the idea to make a new, bear-resistant tent. Sara and Kamal make a prototype together. Kamal and Sara separately file for a patent, but Kamal submits his application first. Who will end up with patent rights to the tent? Kamal, because it was his original idea Sara, because she contributed to making the prototype Kamal and Sar, because they invented the tent together Kamal, because he was the first to file

D

Li is an independent contractor who has been hired to create a sculpture for Bulzai, Inc. While heading to the company to install the sculpture, he is in a car accident and injures another driver. Is the employer liable? No, because Li is only covered under workers compensation Yes, because Li hurt someone on the job Yes, because Li is an independent contractor No, because Li is an independent contractor

D

One reason for the legal protection of intellectual property is to promote ___________. Commercialism Legacies Monopolies Innovation

D

What is defamation?

Defamation is injury to a person's good name or reputation. In general, if the harm is done through the spoken word-on person to another, by telephone, by radio or on television-it is called slander.

What is common law?

Developed by medieval England, judge-based law, continues to this day. - Judge-made law; made up of all the decisions made by appellate court judges. - A law made when judges decide cases and follow those decisions in later cases - Most new law is statutory. - Common law predominates in tort, contract and agency law; it is important in property and employment law. - Based on stare decisis, "let the decision stand" (previous decisions are generally upheld in similar cases) - Precedence

What are 4 types of illegal activities under Title VII?

Disparate treatment Disparate impact Hostile environment Retaliation

Talia's car is hit by William's truck after Talia has driven from her home in New York to North Carolina. Talia is transported to a hospital in North Carolina. Her medical and other bills total over $100K. Tala wants to sue in federal court. On which type of jurisdiction will Talia bas her claim?

Diversity

A company's policy requiring a specific number of younger workers be promoted to management positions, regardless of other factors, ultimately caused a different type of discrimination. T or F

F This is an example of disparate impact, or unintentional discrimination, that occurs when policies, practices, rules or other systems that appear to be neutral result in a disproportionate impact on a protected group. Disparate treatment is intentional unequal treatment of someone because of a protected characteristic.

Strict Liability is used only for product liability cases. T or F

False

What are the 3 categories of courts in the federal and state court system and what are their names.

Federal: - District Court - Court of Appeals - Supreme Court

A paper company agrees to share profits with every employee for every paper order sold. However, when it comes time for the company to pay out the profit share, it fails to do so. Which duty is the paper company failing to perform in this situation? Duty to indemnify Duty to reimburse Duty to compensate Duty to cooperate

C - Correlative with the fiduciary duties of an agent to a principal, the principal's primary duty to the agent is to compensate the agent as agreed.

What do administrative agency rules consist of? Executive and independent rules Promulgated and un-promulgated rules Legislative and interpretive rules Informal and "notice and comment" rules

C - Executive and independent refer to types of agencies; executive agencies, such as the DoE, are created by the president, whereas independent agencies such as the EPA, are created by Congress.

What are the three branches of government in the U.S. The admin, exec, and statutory Admin, legis and international Exec, legis, and judicial Exec, legis and admin

C - Executive, legislative and judicial

What is a requirement for a work to be copyrighted? It must be widely marketed It must be in the public domain It must be in a fixed medium It must be tangible, like a book

C - In order for a work to be copyrighted it must be original, fixed in a medium and contain some creativity (not obvious).

Which statement defines substantive due process? It limits the right of the federal and state governments to enact any laws It exists in some state constitutions but is not a federal constitutional right It limits the right of the federal and state governments to enact laws that interfere with life, property, or liberty. It is expressly defined in the U.S. Constitution.

C - It limits the right of the federal and state governments to enact laws that interfere with life, property or liberty

During school lunch, Loto decided to pull another prank. As Maria was attempting to sit down with a tray of food, Loto pulled Maria's chair from beneath her. Maria fell to the floor. Which tort is most applicable under these facts? Negligent infliction of emotional distress Intentional infliction of emotional distress Battery Assault

C - Lot's actions constitute an act of battery against Maria because his actions were harmful by the offensive contract.

A contract cannot be discharged by which of the following? Mutual rescission Accord and satisfaction Mutual mistake Impossibility of performance

C - Mutual mistake will void the contract; it is as if it never existed.

In which type of business entity is there double taxation? Sole proprietorship S corp C corp Limited partnership

C - Profits are taxed first, as the income of the corp (except S corps) and again as personal income when the dividends are distributed to stockholders.

How would you describe the "fitness for a particular purpose warranty"?

I go to a store and asked for a paint that will dry within 24 hours for a specific purpose, and they sell me an oil-based paint that takes 2 days to dry, the store has breached an implied warranty of fitness for a particular purpose.

An _____________ is one created by law.

Implied warranty - circumstances alone, not specific language, compel reading into the sale.

Name three kinds of torts.

Intentional torts - Personal Tortfeasor intended the consequences of his or her act or knew with substantial certainty that certain consequences would result from the act. A person may intend to commit an act, but may not intend for the act to cause harm Negligent torts Strict liability torts

What are the three branches of government, and what is each responsible for?

Judicial Branch - Court System - Responsible for interpreting laws, including statutes, codes, ordinances, federal and state constitutions Legislative Branch - Congress - Resp. for creating statutory laws and Federal legislative - enacts all federal statutes Executive Branch - President - Resp. for enforcing the statutes enacted by the leg branch. These three were set up to provide checks and balances so that no one group would be able to run the government autonomously.

What is alternative dispute resolution? (ADR)

Refers to the process of settling your dispute outside of the courtroom. - May be court-ordered (mandatory), stipulated by contract provision or simply agreed to by the two parties. Most common forms of ADR: - Negotiation - Mediation - Arbitration

What do we call laws that are created by administrative agencies

Rules and regulations

What is the difference between slander and libel?

Slander is spoken defamation Libel is written defamation

Which court has ultimate authority in interpreting the Constitution?

Supreme Court

What is statutory law?

Term used to define written laws - Criminalize certain actions - Spell out penalties for violation Legislation passed by either a state legislature or the Congress of the U.S. - Citizens who vote have some control over statutory law. - We elect the state congressional reps and the US State Senators and Representatives

How would you explain "diversity jurisdiction"?

Occurs when cases arise between citizens of different states. - Citizens must be from two different states - The amount of the controversy must exceed $75K.

When does trespass to land occur?

Occurs whenever someone enters onto, above or below the surface of land owned by someone else without the owner's permission.

How would you describe an intentional tort?

The tortfeasor intended to commit the act. - "I set our to hurt you, and beca use of what I did, you got hurt".

To determine negligence, the court compares the conduct of the defendant with the conduct of a _________________.

reasonable person

Ankia is an agent of Autojor, a technology company that sells subscriptions to its cloud-based software. Anika has the general title of manager but has no express authority in her employment agreement. Anika routinely negotiates sales agreements with large companies that are clients of Autojor. Anika enters into an agreement with Pruhart Tech that is far larger than any deal Anika previously negotiated. The agreement is very poorly negotiated and will cause a huge loss for Autojor. T or F?

True

At Kamal Kalani's church, the members fast and spend the entire day in prayer on Fridays. He works as a pharmacist and many times he is the only pharmacist scheduled to work on Fridays. Based on his religious beliefs, he tells his employer that he will refuse to work on Fridays. Kamal's employer must make a reasonable accommodation for his religious beliefs.

True

The federal government has set a minimum wage for all workers, but State A has enacted legislation making the minimum wage in that state lower. Is the State A preempted by federal law. Yes No

Yes

What is the Uniform Commercial Code?

a set of codes states may voluntarily adopt in order to reduce interstate differences in judicial opinions

What is a patent?

an exclusive right granted for an invention, which is a product or process that provides, in general, a new way of doing something, or offers a new technical solution to a problem

What is the difference between the tort of "assault" and the tort of "battery"?

Tort of assault: - Does not require a touching - The intentional creation of an immediate apprehension of a harmful or offensive touching Tort of battery: - Unauthorized and harmful or offensive physical contact with another person that causes injury

When does a patent enter the public domain?

when the patent term period has expired

What is the Bill of Rights?

- The first 10 Amendments - The Amendments are designed to protect us from our government

What is the difference between direct liability and vicarious liability?

- Direct: If the principal directed the agent to commit a tort or knew that the consequences of the agent's carrying out his instructions would bring harm to someone, the principal is liable. Comes into play when the principal fails to supervise employees adequately, gives faulty directions or hires incompetent or unsuitable people for a job. Principal is directly liable. - Vicarious: The principal of liability for one's agent is much broader, extending to acts which the principal had no knowledge, that he had no intention to commit nor involvement in, and that he may in fact have expressly prohibited the agent from engaging in.

How would you describe what is meant by the term "disparate impact"?

- Disparate Impact is when an employer applies a neutral rule that treats everyone equally in form, but has a disadvantageous effect on some people of a protected characteristic compared to others. If a victim is unable to find proof of disparate treatment, he or she may use this theory, where the discrimination is un intentional. - Most Title VII cases fall into this category because it is so rare to find proof of the intentional discrimination required in disparate treatment cases. - Business policies that raise suspicions for disparate impact include educational qualifications, written tests, intelligence or aptitude tests, height and weight requirements, credit checks, nepotism in hiring, and subjective procedures such as interviews.

What is strict liability?

- Does not require intent or carelessness - If strict liability applies, it doesn't matter how carelessly or how carefully, the defendant acted. - If someone is harmed in a situation where strict liability applies, then the defendant is liable.

What are the elements of negligence?

- Duty of care that the defendant had - Breach of the duty of due care - Connection between cause and injury - Actual damage or loss - All four of these = Negligence

What are a principal's duties to the agent?

- Duty to compensate, reimburse, indemnify (release of liability in conducting business with third parties), to cooperate (assist agent in responsibilities), and ensure safe working conditions

What is FMLA (Family and Medical Leave Act)?

- Entitles eligible employees of covered employers to take unpaid, job-protected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. - Employers covered: - Public agencies, including local, State and Federal employers, and local education agencies (schools) - Private sector employers who employ 50 or more employees for at least 20 workweeks in the current or preceding calendar year.

How can an agency relationship be terminated?

- Expiration of a fixed time period - May terminate on the accompishment of a specified act or following a specific event - Mutual consent - Principal may revoke the agency or the agent may renounce it - Unspecified events or changes in business conditions - Circumstantial - Death or a principal or agent - If it becomes illegal

An __________ is an oral or written statement, promise, or other representation about the quality of a product.

- Express warranty - 3 parts - (1) an affirmation of a fact or promise relating to the goods, (2) a description of the goods, or (3) a sample or model

What is the difference between express authority and implied authority?

- Express: Written contract outlines specific authority to do certain things - Implied: Not written or put out to the world; employee's title president of operations can do anything related to the title

How would you describe the "commerce clause"?

- Federal Government can only pass laws that have a connection with interstate and foreign commerce -Note: The states actually have much broader authority to pass laws that the Federal Gov't - Clause gives Congress the exclusive power to make laws relating to foreign trade and commerce and to interstate commerce.

What is administrative law?

- Federal agencies - such as the FAA and the FTC - have the power to make regulations. - Agencies were created to fulfill a specific need. - An agency is created when Congress passes enabling legislation, which describes a problem and defines the agency's powers. - Agencies have considerable power in the areas of specialty

What are an agents duties to his principal?

- Fiduciary duty/duty of loyalty, duty to avoid self-dealing, duty to preserve confidential info, duty of skill/care, duty of good conduct, duty to keep/render accounts, duty to act only as authorized, duty not to attempt the impossible, duty to obey, duty to provide info

What is the purpose of the Norris-Laguardia Act?

- First labor law of the Great Drepression and dealt with the propensity of federal courts to issue preliminary injuctions, ofen ex parte against union activities. - Forbids federal courts from temporarily or permanently prohibiting certain union activities, such as peaceful picketing and strikes

How is a partnership formed? How is it terminated?

- Formation: You can create a partnership based on an oral agreement, but it's much smarter to put it in writing. A partnership is a business form created automatically when two or more persons engage in a business enterprise for profit. ... In fact, partnerships are the only business entities that can be formed by oral agreement. - Termination: Once the agreement ends, the partnership ends. In a general partnership, with more than two persons, the remaining partners can reconstitute the partnership if they wish, without the withdrawing partner.

What are the common forms of business organizations?

- Franchises - Sole proprietorship - Limited partnership - C Corporation - S corporation - Limited Liability Company (LLC)

How would you explain the "supremacy clause"?

- General Rule: Federal law wins out over State law - Exception: When State law is consistent with Federal law - Note: When applying the Supremacy Clause, there is sometimes a Dormant Commerce Clause issue to look at as well

What is the difference between general agent and a special agent?

- General agent can perform any and all acts required for a job or business. - A special agent can only perform a specific job or duty for a client

What is "fair use"?

- Includes copying a work for purposes of commentary, criticism, news reporting, teaching or just research. - The law provides four factors that courts must consider in determining whether the use is fair. - First, the court must consider the purpose and character of the use. Is it for educational purpose or for making a profit? - Second, the court must consider the nature of the copyrighted work. Is the work part of the "core" of the intended protection that copyright provides? - Third, the court must consider the amount and substantiality of the portion used. This is an important factor—it is one thing for your professor to copy an excerpt from a journal or book for distribution in class (probably fair) and another to copy the entire journal or book (probably infringing). - Finally, the court must consider the effect of the use on the potential market for the copyrighted work. If the use is considered fair, what would it do to the market for the copyrighted work? For example, if copying an entire textbook is fair, it would probably eliminate the market for new textbooks.

How would you describe "negligence"?

- Is the cental cause of action in torts - If you are to blame, through your carelessness, for an injury to the person or property of another, you will be liable for the damage.

What is the purpose of the National Labor Relations Board?

- It investigates allegations of unfair labor practices and provides remedies in appropriate cases - It decides contested cases which union should serve as the exclusive bargaining agent for a particular group of employees

What is an LLC?

- It is a popular type of business structure due to its flexibility and simplicity - One of the best ways to establish credibility and protect your assets - Act as a legal entity separate from its owners, creating what is known as a 'corporate veil'. This protection keeps the owner's personal assets secure in the event of a lawsuit or upaind business debt. - Have pass-through taxation - owner's only pay tax on the revenue once. - Record keeping is streamlined - Do not have to be U.S. residents or permanent residents

How would you describe the term "wrongful discharge"?

- It means to fire a worker for a bad reason like discharging an employee: - for refusing to violate a law - for exercising a legal right - for performing a legal duty - in a way that violates public policy

What is the statute of frauds?

- It's purpose is to prevent the fraud that occurs when one party attempts to impose upon another contract that did not in fact exist

What purpose does the law serve in our society?

- Keep the peace, -Maintain status quo, - Preserve Individual rights, - Protect minorities against majorities, - Promote social justice, - Provide for orderly social change

What is res ipsa loquitur?

- Latin for "the thing speaks for itself". The best evidence is always the best evidence. - Permits the jury to infer (presume) that the defendant breached his or her duty of care (was careless), by adducing (offering as proof) evidence of such breach of duty

What are the elements of a legal contract?

- Legal capacity - Legality - Agreement - Consideration

What is apparent authority?

- Manifestation of authority communicated to the third person; it runs from principal to third party, not to the agent

How can genetically modified agricultural products be patented?

- Must be useful, new and non-obvious

How would you describe the Workers' Compensation system?

- No-faut system - Employee gives up the right to sue the employer and receives, in exchange, predetermined compensation for a job-related injury, regardless of who cause it. - All medical costs and a portion of employee's salary will be paid - and paid promptly, in the event that employee is hurt on job - Employer must pay for all injuries, even those for which it is blameless, but in return it avoids the risk of losing a big lawsuit

What is the difference between nominal damages and incidental damages?

- Nominal Damages - If there is no loss, the plaintiff is still entitled to a minor sum, perhaps $1.00; i.e., a buy could purchase the same commodity at the same price as that contracted for, without spending extra time or money, there can be no real damages in the event of breach. - Incidental Damages - Can include additional costs incurred by the non-breaching party after the breach in a reasonable attempt to avoid further loss, even if the attempt is unsuccessful.

How would you describe a quasi contract?

- Not a contact at all; it is a fiction that the courts created to prevent injustice; i.e., a carpenter mistakenly believes you have hired him to repair your porch, when in fact, it was your neighbor who hired him. He shows up on Saturday, and you let him do the work and figure you will get it for free since there was no contract, but the law implies a contract for the value of the work.

How would you describe copyright infringement?

- Occurs when someone uses a copyrighted work without permission, infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work or to make derivative works. - I.E. If a classmate takes your class notes without your permission and makes photocopies of them, the classmate has infringed on your copyright. It is also copyright infringement if you take someone else's work and simply repackage it as your own. - Also occurs when you assist someone in violating a copyright or create or create a device that assist in violating copyright.

What is trademark infringement?

- Occurs when someone uses someone else's mark, either completely or to a substantial degree, when marketing goods or services, without the permission of the mark's owner. - Elements: 1. Strength of a trademark 2. Proximity of the goods or services 3. Similarity of the marketing channels 4. Evidence of actual confusion 5. Degree of care from purchasers 6. Intent of the defendant 7. Likelihood of expansion in product lines

What are copyright licenses?

- Owner of a copyright may allow members of the public to view or use a copyrighted work for free or for a fee.

How can suits for patent infringement arise?

- Patent holder may seek damages and an injuction against the infringer in federal court, requesting damages for royalties and lost profits - Accused party may take patent holder to court under the federal Declaratory Judgement Act, seeking a court declaration that the patent is invalid - Patent holder may sue a licensee for royalties claimed to be due, and the licensee may counterclaim that the patent is invalid

What are the procedures for obtaining a patent?

- Patent right will be granted to the first person to file for a patent - If not filed immediately, person should keep detailed research notes or other evidence that would document the date of invention - An inventor who fails to apply within a year of that date would forfeit the rights granted to an inventor who had published details of the invention or offered it for sale - An inventor needs the services of a patent attorney - Attorney will help develop the required specification, a description of th einvention that gives enough detail so that one skilled in the art will be able to make and use the invention. - After receiving app, a USPTO examiner will search the records and accept or reject the claim. - Attorney will negotiate with the examiner and will rewrite and refine the app until it is accepted

What does it mean to lack the capacity to enter into a contract?

- Person lacks sound mind to understand what he or she is assenting to, and it is unreasonable to hold the individual to the consequences of his or her actions

What is an agent?

- Person who acts in the name of and on behalf of another, having been given and assumed some degree of authority to do so. - Partnerships and other business orgs rely extensively on agents to conduct their business.

What types of things are not patentable?

- Physical phenomena - Laws of nature - Abstract ideas - Artistic works - Something that is not useful - Something that "doesn't do something" - Something that isn't unique

What is the "single recovery" doctrine?

- Principle that a plaintiff is entitled to only one recovery for a particular harm. If the jury has awarded more than one remedy, the plaintiff should elect a single remedy. - You get one chance to sue, that's it.

What are some defenses to strict liability?

- Product misuses - person uses a product in an unexpected or unusual way - Knowledgeable user defense - a person cannot blame McDonald's for getting fat/unhealthy from eating their food which is known to have high levels of cholesterol, fat, salt and sugar - Assumption of risk - Contributory/Comparative Negligence - Product Misuse

What are special duties of professionals?

- Professionals are held to a standard of care that is dictated by the custom or standard of practice that prevails in the relevant community of professionals.

How would you describe the Uniform Trade Secrets Act?

- Provides a legal framework for improved trade secret protection

What is an agency created by operation of law?

- Recognized by courts - i.e., family relationships, emergency situations--in the absence of any formal agreement, confirmation or act or omission by the principal that implied the agent's auhtority. Usually deals with necessities.

How would you describe compensatory damages?

- Replacement of property destroyed - Compensation for lost wages - Reimbursement for medical expenses - Dollars that are supposed to approximate the pain that is suffered

What is a manufacturing defect?

- Results when something goes wrong in the manufacturing process causing a product to differ from its intended design. - i.e. a bad weld or a missing bolt.

How would you describe "shop right"?

- Right created by state courts on equitable grounds giving employers a nonexclusive, royalty-free license to use any invention made by an employee on company time and with company materials - Comes into play only when a company has no express or implied understanding with its employees

What are trade secrets?

- Secret information, like the secret recipe for Dr. Pepper - Can last forever - May include a process, formula, pattern, program, device, method, technique, customer list or compilation

How would you describe sexual harassment, including quid pro quo and hostile work environment?

- Sexual Harassment - unwelcome sexual advances, requests for sexual favors, and other verbal or physical harassment of a sexual nature. (Severe, pervasive and interfere with an employee's ability to work). - Quid pro quo is when a manager or other authority figure offers or merely hints that he or she will give the employee something (raise or promotion) in return for that employee's satisfaction of a sexual demand. - Hostile work environment - when one's behavior within a workplace creates an environment that is difficult or uncomfortable for another person to work due to discrimination

How would you describe the concept of double-taxation as it applies to corporations?

- Since corps are are separate legal entities, taxing authorities consider them as taxable members, just like human beings. A corp does not have to have an SSN, but does have an EIN, which serves the same purpose of identifying the company to tax authorities. - As a separate legal entity, corps must pay federal, state and local tax on net income. That same pile or profit is then subject to tax again, in the form of a dividend tax, when it is returned to shareholders as a dividend.

Describe a special agent

- Special agent has authority to act only in a specifically designated instance or in a specifically designated set of transactions. A real estate broker is usually an SA hired to find a buyer for the principal's land

How would you explain the "dormant clause"?

- The Dormant Commerce Clause: The states can generally pass laws that have an impact on interstate commerce as long as the state's law is: 1. Not unduly burdensome and 2. Does not discriminate against out-of-state businesses

What is "ratification"?

- The employer approves what the agent has already done in contracting with a third party (like buying something with good intent for the employer's profit); sometimes the employer will amend the agent's contract with a third party, (i.e. the agent buys a $21.99 unlimited car company car wash and the employer asks the third party to amend the future transaction to the $11.99 unlimited wash with no harm held against the agent.

What is the purpose of the "zone of risk" test?

- The employer will be within the zone of risk for vicarious liability if the employee is where she is supposed to be, doing - more or less- what she is supposed to be doing, and the incident arose from the employee's pursuit of the employer's interest. That is, the employer is within the zone of risk if the servant is in the place within which, if the master were to send out a search party to find a missing employee, it would be reasonable to look.

How would you describe the rules that govern collective bargaining, including good faith?

-Good faith: The duty to bargain in good faith is an obligation to participate actively in the deliberations so as to indicate a present intention to find a basis for agreement. This implies both an open mind and a sincere desire to reach an agreement as well as a sincere effort to reach a common ground. - Collective bargaining: After employees choose a union as a bargaining representative, the employer and union are required to meet at reasonable times to bargain in good faith about wages, hours, vacation time, insurance, safety practices, and other mandatory subjects. Some managerial decisions such as subcontracting, relocation, and other operational changes may not be mandatory subjects of bargaining, but the employer must bargain about the decision's effects on unit employees.

Who is the plaintiff in a lawsuit?

-Plaintiff is the party that carries the burden of proof in the case in a civil trial - The defendant is the alleged wrongdoer in a criminal trial

Charlotte wants to sue her employer under Title VII for sexual harassment. What is her first step? Notify the EEOC and wait for a "right to sue" letter Notify the EEOC, then sue if the EEOC fails to prosecute File a complaint in state court File a complaint in federal court

A

Does FMLA apply to professionals like lawyers and CPAs? Yes if they work for a company that has 50 or more employees Yes, but only if they are paid hourly No, but the professional firm must provide adequate time off. No, unless the employer specifically provides coverage

A

For the defendant to be liable in a negligence case, it must be proven that the type of harm caused by the defendant must have been reasonably foreseeable. This is referred to as Proximate cause Duty of due care Factual cause Breach

A

Greg purchases a dishwasher from a store in the mall. The seller states at the time of the purchase that the dishwasher will complete the wash cycle within 20 minutes. After installation, Greg discovers that the dishwasher takes almost 40 minutes to complete the wash cycle. Which type of warranty may have been breached? Express Implied Infringement Merchantability

A

Harry is an at-will employee who is having financial difficulties. His boss, George, asked Harry to sign over his company stock for less than the market value, otherwise Harry will be fired. Is the contract voidable? Yes, because Harry was under duress No, because Harry could have chosen to say no Yes, because of misrepresentation No, because George may have been joking

A

In a comparative negligence state, if the plaintiff in a negligence lawsuit is found to be 30% negligent, the plaintiff would recover: 70% of the damages All of the damages None of the damages 30% of the damages

A

Jimmy is walking on a sidewalk. A chair falls from a hotel window and lands on him. May Jimmy win against the owner based on a res ipsa loquitur claim? Yes, because it is more likely than not that the owner's negligence caused the injury Yes, because the chair fell from the hotel window. No, because it's not clear why Jimmy was walking on the sidewalk. No, because had Jimmy been running he would not have been hit by the chair

A

Johnny borrowed Margaret's laptop to take his test. During the test, Johnny became frustrated and slammed the laptop to close it, thus cracking the screen. Was this a conversion? Yes No

A

A bounty hunter has been trying to locate 70-year-old Logan, who is wanted for police questioning. The agent called Logan's mother pretending to be a hospital employee and stating that Logan's spouse had been in a car accident. Logan's mother told the agent where to find him. Logan suffered a heart attack after rushing to the hospital to locate his wife. Does Logan have a claim for IIED? Yes because the bounty hunter's actions were extreme and outrageous Yes, because Logan suffered a heart attack No, because Logan has no rights No, because Logan was wanted for police questioning

A

A flower shop owner has a home garage sale. Kamal purchases a radio at the sale and is told the radio is five years old; nothing is said about its quality. Once home, Kamal finds the radio is unusable. Kamal tries to obtain a refund, but the seller refuses. Will Kamal win in a breach of warranty claim? No, because the owner was not a merchant with respect to radio goods and there was no express warranty. Yes, because the owner breached the implied warranty of merchantability and the radio is unfit for its ordinary purpose. Yes, because the UCC includes an express warranty that goods sold are to be undamaged. No because the UCC states that the garage sales are exempt from warranty provisions.

A

A salesclerk at Sparkle Jewelry Store observed a customer remove a ring from a display case and put it in his pocket. In most states, Sparkle Can reasonably detain the customer for suspicion of shoplifting Cannot detain the customer but can call the police Cannot detain the customer but once the customer leaves the store, the salesclerk can make a citizen's arrest Cannot detain the customer but can sue for conversion

A

A water utility discovers that there is water being consumed at an address that has no account and no record of a meter. The last record of an account at the address was 10 years ago. There is currently a person living at the address using the water. The water utility sues the current owner and wins. What was the water utility's cause of action? Quasi contract Bilateral contract Illegal contract Unilateral contract

A

A woman who sells cigarettes in a state that has legalized marijuana use disagrees with legalizing marijuana. She knows that federal government still considers marijuana illegal. Which action might the woman take? The woman may challenge the state law on the basis that it is preempted by federal law The woman must abide by the state law, because that is the state from which she operates. The woman must abide by the state law, because the fed gov't does not have jurisdiction over the state gov't. The woman may challenge the state law on the basis that the law discriminates against the woman's business.

A

Lucas lost both is legs in combat in Vietnam. He has applied for a job with Smartistry in the company's quality control lab. The job requires inspectors to randomly check products coming off the assembly line for defects. Historically, all inspectors have stood for two-hour shifts. Lucas proposed to sit in his wheelchair. The company refuses to hire him, because he will be less efficient. Lucas's previous employment record shows him to be a diligent, serious worker. Does Lucas have a legal right to be hired? Yes, as long as there is a reasonable accommodation that will enable Lucas to do the job despite the disability No, because there are no accommodations that could be made in this instance No, because it would require a complete change to the job description of inspectors and how they perform the tasks and duties assigned Yes, because the ADA requires employers to hire individuals with a disability

A

Maria and her family own a dairy farm and wish to open a retail store selling their goods. The capital for the store will be provided solely by Maria and her family, and a small number of shareholders. They want a pass-through income structure. Which business entity is appropriate for this situation? S corp C corp General partnership Limited partnership

A

Oliver owns Quality Apple Farms. He has a 2-year contract with Whole Pin, Inc., to deliver mulch monthly to his farm. After 16 months of obliging this contract, Whole Pin, Inc., ceases to deliver the mulch. Oliver must drive to the garden store and spend $560 in transportation in mulch. Oliver sues Whole Pine, Inc. Incidental Compensatory Nominal Punitive

A

Once a strike begins, the employer may continue operations by __________ to take the place of the striking employees. Hiring replacement workers Temporarily demoting supervisors Acquiring crossover workers Acquiring wildcat strikers

A

Two friends equally contribute to start a construction business with pass-through tax status. After several months of good business, a third friend wants to invest in the company but does not want to manage any aspects of operations. Which type of business model should these individuals choose? Limited partnership General partnership Sole proprietorship C corp

A

What can shareholders vote on? Electing the BoD Electing officers Determining whether the company can make a capital expenditure, such as buying new equipment to replace equipment that is worn out Filing Articles of incorporation

A

What does a person need to file to form an LLC? Articles of organization Operating agreement Statement of qualification Articles of incorporation

A

What does it mean to "undo" a contract and put the parties where they were before they made the agreement? Rescission Restitution Reliance Remediation

A

What is a form of due process that holds that certain rights are so fundamental that the government may not eliminate them? Substantive due process Procedural due process Eminent domain Judicial restraint

A

What is a right of a shareholder? Elect directors Appoint managers Elect officers Appoint subsidiaries

A

What is an advantage of an LLC over a general partnership? An LLC has limited liability An LLC has a board of directors An LLC terminates if a member leaves An LLC has flow-through taxes.

A

What is the legal right that gives the author of qualifying subject matter if the author meets other requirements established by law, the exclusive right to publish, produce sell, license and distribute the work? Copyright Trademark Trade secret Patent

A

Which forms of business org has two or more owners who share the risks and the profits? Partnership Sole proprietorship Nonprofit Corporation

A

Which of the following category is NOT protected under the Title VII? Education Race Sex National origin

A

Which statement about torts is correct? A tortious act may also be a criminal act. A criminal act is always a tortious act A tortious act is always a criminal act A tortious act is the same as a contract dispute

A

Which statement is not true about FMLA? It applies to private companies with 25 or more employees It is unpaid leave After your leave, you may not return to the same exact position within your company In order to take FMLA, you had to have worked full time for your company for at least a year

A

How does a C corp differ from an S corp? A C corp and its shareholders are both taxed An S corp is a good choice to sell stock A C corp can have up to 100 shareholders A C corp has liability protection

A - A This "double taxation" results from the corporation being taxed and that same money being taxed again if dividends are sent to shareholders.

A local lawn service has been mowing the lawn for a homeowner for many years. Every year, the homeowner pays the lawn service at the end of the summer. At the end of the most recent summer season, the lawn service asks the homeowner for payment. The homeowner insists this service was unwanted and refuses to pay. The lawn service seeks the advice of an attorney, who believes payment should still be required. Under which type of authority does the attorney believe payment is required? Implied Legitimate Apparent Express

A - An implied contract is a legal substitute for a contract. An implied contract is an agreement created by actions of the parties involved, but it is not written or spoken. Here, based on past actions between the parties, an implied contract for the lawn services was created.

Which of the following must be included to make an agreement to a contract valid? Offer Physical sample of the goods for sale Fair bargain Fair price

A - An offer is a promise in exchange for performance by another party

What is the geographical name for the area served by each U.S. court of appeals? Circuit District Range County

A - Circuit

Which of the following is the general remedy for breach of contract? Compensatory damages Punitive damages Specific performance Incidental damages

A - Compensatory damages are the general category of damages. Compensatory damages involve money.

Describe how a bill becomes a law

Any member of congress (Senator or Rep) can intiate a bill, or proposed law. - A bill is debated in a committee in the house where it was introduced - From the committee, it goes to the full house for a vote - If it passes both houses this way, it goes to the President for his signature A President's signature turns a bill into law.

Patrick installed a new window shade. He used his brand-new Bullzai cordless, electric drill and followed the directions that came with the window shade. Unfortunately, Patrick struck a piece of metal in the ceiling which caused the electronic drill to bounce back and jerk out of his hand. Even though Patrick released the button that activated the drill, the drill did not stop but fell on his arm and cut him badly. Federal safety regulations require that all electric drills stop when the activating buttons are released. The Bullzai electric drill was designed to stop when its activating button was released, but Patrick's drill did not conform to Bullzai's specs. Patrick seeks to sue Bullzai for his injuries. Based on these facts, what is the best prediction? A. Patrick will likely recover damages from Bullzai because the electric drill model failed to conform to federal safety regulations B. Patrick will likely recover damages from Bullzai because the electric drill failed to conform to Bullzai's manufacturing or assembly specifications C. Patrick will recover damages from Bullzai if he can prove that Bullzai's lack of adequate warnings made the drill reasonable safe D. Patrick will likely recover damages from Bullza if he can prove that Bullzai was negligent when it made this particular drill

B

Ren has developed a new model of car that looks significantly different from other cars on the market; however, it works in the same way. What type of patent should Ren apply for? Utility patent Design patent Plant patent Non-obvious patent

B

The action of strikers walking in front of an employer's premises, carrying signs announcing their strike is known as ________________.

B

Thomas and Martin started working the same job at Company A at the same time and have the same performance levels. This job has a labor union. Thomas joins the union, but Martin does not. The union officials ask that Thomas get a raise, but that Martin does not. Has the union engaged in unlawful activity? No, it is not unlawful because Martin had the option to join the union Yes it is unlawful to discriminate against employees who have chosen not to join the union No, because Martin is not included in collective bargaining Yes, it is unlawful because unions do not have the power to negotiate for compensation

B

What is an advantage of corporations? One owner Limited liability Minimal government regulation Short life span

B

Which of the following employees cannot receive overtime wages? Hourly workers Professional staff Children All of the above individuals can receive overtime

B

Which of the following employer accommodations would be the least reasonable for employees for religious beliefs? Reassigning employees within the company Closing the business on Sundays Flexible scheduling Allowing employees to switch work schedules

B

Which of the following intellectual properties is protected by the Lanham Act? Copyright Trademark Trade secret Patent

B

Which of the following is not a subject of mandatory bargaining? Rate of pay per hour New products to manufacture Safety equipment Length of the workweek

B

Which of the following is not an acceptable reason to utilize FMLA? Your wife has a baby You sprained your ankle To care for a parent with Alzheimer's Disease All are acceptable reasons to utilize FMLA

B

Which of the following is suitable for copyrighting? Buildings Musical compositions Business methods Product logos

B

Which type of business entity is easiest to form? Limited liability company Sole proprietorship S corp General partnership

B

Who is responsible for running the daily operations of a corporation? Board of directors Officers Shareholders Managers

B

Which of the following is a defense to product liability? Self-defense Assumption of risk Bona fide occupational qualification Justifiable ignorance of the facts

B - (A of R occurs when a person enters voluntarily into a situation knowing that it could be dangerous)

The FDA prohibits Drug A from being marketed in the US. What is this an example of? Legal negativism Agency regulation Executive order Private law

B - Administrative agencies are created to oversee a specific industry and have the power to regulate it by way of regulations

Which option would not result in the termination of an agency relationship? The agent dies unexpectedly The agent has been doing business for a principal for over a year The principal desires the agent to buy a second home, but the principal's company goes bankrupt The agent competes with the principal

B - An agreement creating an agency relationship may be express or implied, and both the agent and principal may either be an individual or an entity, such as a corporation or partnership. This agreement can continue as long as the two parties agree.

Company A and Company B agree to the use of an independent third party to resolve a contract dispute. The third party decides in favor of Company B. Which type of alternative dispute resolution is this an example of? Reconciliation Arbitration Negotiation Mediation

B - Arbritration

Paula is shopping at the mall. While in a shop, she slips and falls on a wet spot on the floor. What is Paula's status? Trespasser Invitee Licensee Owner

B - Because the mall is open to the public.

What kind of law is made when an appellate court endorses a rule to be used in deciding court cases? Statutory law Common law Constitutional law Administrative law

B - Common law is made when an appellate court endorses a rule to be used in deciding court cases

Which clause in the Constitution collectively prohibits states from enacting laws that unduly discriminate in favor of their residents? Privileges and immunities Due process Equal protection Establishment

B - Due process

Ahmed works for Endothon Co. He signs a contract on behalf of Endothon Co. to purchase 100 flags from Quiet Flag Industries. Ahmed tells Quiet Flag Industries that he is signing on behalf of another party, but he does not disclose the name of that party. Endothon Co. is liable but Ahmed is not liable Endothon Co. is liable, and Ahmed is liable. Endothon Co. is not liable, but Ahmed is liable Endothon Co. is not liable, and Ahmed is not liable.

B - Even in partially disclosed agencies, both the principal and agent are liable on contracts to third parties.

How would you describe intentional infliction of emotional distress?

Behavior toward another that is extreme or outrageous and causes physical or emotional distress.

An individual looks at several cell phones at a cellular kiosk. The individual chooses one and tests it. While doing so, the individual finds the camera has 7-mp capacity. The individual purchases the same type of phone that was tested. Once home, the individual finds that the cell phone is the identical make and model of the one that was tested, but it has only 4.5-mp capacity. Is the buyer likely to win a suit for breach of warranty? No, because the buyer never told the salesperson the phone needed to come with a 7-mp camera. No because the salesperson made no statements about the cell phone's fitness. Yes, because the sample model constitutes that the actual goods bought will be as good as the sample. Yes, because the 4.5 mp capacity makes the cell phone unmerchantable.

C

Fred falls off a ladder at work. He breaks his pelvis and collar bone. He files a claim under worker's comp. What is the result? He will win if he can prove the employer was negligent He will lose if the employer can prove that Fred caused the fall due to unsafe actions. He will win because he doesn't have to prove anything He will win, but he will only get medical expenses paid

C

If you are found to be strictly liable by a court, this means_____________. Your liability is based on the foreseeability of the harm You are liable for the harms you cause only if the other party was negligent You are liable for the harms you cause regardless of your fault Your liability is based on your intent to harm someone

C

Improper misappropriation occurs when you obtain which protected item by using improper means? Copyrighted works Patent designs Trade secrets Trademark symbols

C

In which type of business entity may all profits, liability, and losses be shared equally? Sole proprietorship Limited partnership General partnership C corp

C

Jack has a contract with Mei to repair Jack's steering column on his car. Mei works on Jack's car and returns it to him. A few days later, Jack is driving to the store and his steering will not work, causing him to crash into a street sign. Which remedy is available to Jack? Incidental damages Specific performance Consequential damages Nominal damages

C

Loto and Nora are at an art auction. Nora wants to buy a painting, but she does not have the money to purchase it. Loto tells Nora he will give her $5K next week. Nora purchases the painting on credit. When she sees Loto the following week, he tells Nora he changes his mind; he will not give her the money. Nora sues Loto for the money. Who will win and why? Nora will win because there was a valid consideration. Loto will win because it was an illusory promise. Norta will win because she relied on Loto's promise to her detriment. Loto will win because there is no contract.

C

Lulu has invented a piece of machinery that automatically wraps gifts. It is the first of its kind. What type of patent should Lulu apply for? Design patent Novel patent Utility patent Plant patent

C

Michal is a statistician. He works from home on a company-provided computer and has set hours. He is paid by Company A, which determines his pay rate and withholds federal taxes from his paycheck. Is Michael an employee or an independent contractor? Independent contractor, because he works from home Employee, because the company sets his pay rate Employee, because Company A withholds taxes Independent contractor, because he is given equipment to use at home.

C

Rainbow Airlines is a new air carrier headquartered in Chicago. The company extensively studied the psychology of passengers and determined that more than more than 93 percent of its passengers felt most comfortable with female flight attendants between the age of 21 and 34. To increase its profitability, the company issued a policy of hiring only such people for jobs in the air but opened all ground jobs to anyone who could otherwise qualify. The policy made no racial distinction and, in fact, nearly 30 percent of the flight attendants hired were black. What violations of federal law has Rainbow committed, if any? Rainbow Airlines has only violated the Age Discrimination in Employment Act. Rainbow Airlines has only violated Title VII of the Civil Rights Act. Rainbow Airlines has violated Title VII of the Civil Rights Act and the Age Discrimination in Employment Act Rainbow Airlines has violated the NRLA and the Age Discrimination in Employment Act

C

Ron and several fellow workers of Vic, Inc., a small manufacturing company, wished to organize a union. When Vic learned of this activity, it issued a bulletin to all workers stating that a union will only hurt the company and that "we are a family that can solve any problems ourselves == we do not need union activists from outside our company trying to tell us what to do!" Which statement is correct concerning the bulletin issued by Vic? Vic has committed an unfair labor practice. Vic must remain neutral during the organizing drive Vic has committed an unfair labor practice. The bulletin constitutes outrageous interference with the union organizing campaign Vic has not committed an unfair labor practice. An employer may vigorously present anti-union views to its employees. Whether Vic has committed an unfair labor practice depends on whether the bulletin was approved by the NLRB

C

Sara and Omar have been keeping a lion in their backyard. They found it as an abandoned cub that had somehow escaped from its cage at a local zoo. The couple decided to sneak the lion home and raise it. Sara and Omar were very careful to keep the lion within their strong fence, but as a full-grown lion it escapes and bites a neighborhood child. Can Sara and Omar be sued for strict liability? Yes, because they did not follow a local ordinance that required at least two fences for lion pets. No. The zoo is held liable because the lion was from the zoo. Yes. Even though they were careful they are still liable for the injury. No because they were so careful with the lion; it was simply an unfortunate accident.

C

Sheila was driving her car, mindful of the 30 mph speed limit. The driver behind her was frustrated and sped around her screaming profanity at her before speeding off. Does Sheila have a valid claim for IIED? Yes, because the driver's use of profanity was extreme Yes because this hurt Sheila's feelings No, because the use of bad language does not amount to extreme and outrageous conduct No, because the driver thought Sheila was someone else.

C

The act of negotiating contract terms between an employer and the members of a union is known as _______________. Mediation Arbitration Collective bargaining Enterprise bargaining

C

The money intended to restore a plaintiff to the position he was in before the injury is referred to as Punitive damages Tortious payments Compensatory damages Conversion payments

C

Charlotte enters into a contract with Daniel to build his house. She builds the entire house, but she forgets to tile the bathroom floor. Daniel is furious and refuses to pay Charlotte. Who will win the case and why? Daniel will win based on quasi contract Daniel will win because Charlotte materially breached the contract. Charlotte will win based on substantial performance Charlotte will win based on duress

C - Substantial performance means most of the work has been completed satisfactorily, and the plaintiff can recover for the cost to have the rest of the contract completed.

Which court's main function is to be the final arbiter of all federal laws created by Congress? State Federal Supreme Circuit

C - Supreme

To determine a party's intent in a contract case, a court will apply which theory of contracts? The consideration theory of contracts The alternate-party theory of contracts The objective theory of contracts The subjective theory of contracts

C - The objective theory of contracts is a doctrine that states that a contract is not an agreement in the sense of a subjective meeting of the minds. A contract is instead a series of external acts giving the objective semblance of agreement.

Jerry is playing ball with his son at a neighborhood park when the ball rolls into Dolly's front yard. Jerry runs to Dolly's yard to retrieve the ball and picks up the ball from her flower bed. What is Jerry's status? Licensee Invitee Trespasser Child trespasser

C - This is because Jerry intended to walk onto Dolly's front lawn and flower bed to retrieve the ball. It doesn't matter how innocent.

What is the requirement for a federal court to hear a diversity of citizenship case? Two different sates Two different countries Two different sates and the suit exceeds $75,000 Two different sates and a federal law must be involved

C - Two different states and the suit exceeds $75K

A fair use includes copying a work for purposes of commentary, criticism, news reporting, teaching, or research. What is the purpose of fair use? To allow a short excerpt to be copied that attributes to the author To allow any amount of material to be copied To allow material used for educational purposes to be copied To allow anything under 300 words to be copied

C - Under the fair-use defense, other authors may make limited use of the original author's work without asking permission. The Copyright Act of 1976 took note of the new copier technology, listing "teaching (including multiple copies for classroom use)" as one application of fair use.

Ren was standing on a ladder to reach a box of supplies. He lost his footing and fell off the ladder, injuring his knee. Ren files for workers' comp. What will be the outcome of the claim? The employer must pay 100% of the cost of Ren's hospitalization and medical care related to the injury, but not the cost of wages Ren will receive workers' comp only if he proves that his employer was negligent Ren will receive full pay while out on workers' comp claim The employer must pay for all of Ren's injuries, even those for which it is blameless

D

Strict product liability is imposed by law as a matter of public policy. On which assumption does the policy rest? Defense lawyers need more work Plaintiffs' attorneys had sufficient basis for bringing claims against manufacturers Manufacturers would be put out of business by forcing them to bear the risk of injuries Consumers should be protected from unsafe products

D

What is a grant by the federal government to the inventor of an invention for the exclusive right to use, sell and license the invention for a limited amount of time Trademark Trade secret Copyright Patent

D

What is intellectual property an example of? Real property Tangible property Movable property Intangible property

D

Which duties does a principal owe an agent? Duty of loyalty, duty to indemnify and duty to compensate Duty of due care, duty to compensate and duty to cooperate Duty of confidentiality, duty to cooperate and duty to ensure safe work environment Duty to reimburse, duty to indemnify and duty to cooperate

D

Which of the following jobs can children under 14 years old hold? Babysitting Television actor Newspaper delivery person All of the above

D

To reiterate, copyright is a bundle of intangible rights granted by statute to the author or originator of certain literary or artistic productions, whereby, for a limited period, the exclusive privilege is given to that person (or to any party to whom he or she transfers ownership to make copies of the same for publication and sale. What does a copyright give the creator the sole legal right to? Promote or trade on the words Represent or market the conventional ideas Retain or transfer the application of the ideas Publish and sell the original work

D - A copyright is a legal device that gives the creator of a literary, artistic, musical or other creative work the sole right to publish and sell that work.

Michael made the following offer to Malik: "I will pay you $500 if you agree to paint my house." Malik replied that he would. At this point, how can the contract be described? Executed, unilateral, and express Executed, bilateral and express Executory, bilateral, and implied-in-law Executory, bilateral and express

D - A valid bilateral (promise for promise) contract not completed is executory, and here the parties have expressed the terms.

Which kind of law is based on the interpretation of law? Constitutional law Administrative law Statutory law Common law

D - Common law is based on the judicial interpretation of existing laws

What is it called when an individual takes or uses someone's personal property without consent? Negligence Fraud Trespassing Conversion

D - Conversion is the tort of interfering with the rightful possession and/or ownership of chattel (property), usually after initially taking possession legally.

What do shareholders have a right to get from the corporation? Dividends A share of the corp's assets Tax returns of the directors None of the above

D - Dividends are at the discretion of the Board of Directors. The shareholders might get a share of the corp's assets in a liquidation only of the BoD determines that's appropriate. They can never get the tax returns of the individual directors.

Which warranty provides that the goods will be useable for the ordinary purposes for which they are used? Disclaimer Fitness for a particular purpose Title Merchantability

D - Goods sold by a merchant are warranted to be useable for their intended purpose, (i.e., a dishwasher washes dishes)

What is a primary function of sate supreme courts? Hearing testimony of witnesses and determining the credibility of their statements Conducting trials related to misdemeanor criminal law Conducting trials related to felonies and civil disputes Hearing appeals from intermediate appellate state courts

D - Hearing appeals from intermediate appellate state courts

Which example is not a key advantage of a corporation? Corps may issue stock to raise money Corps offer limited personal liability to owners Corps can exist indefinitely, so they do not cease to exist when an owner dies or leaves Corps are not expensive to start and have few government regulations

D - It is expensive to start a corp due to paperwork. Corps are required to follow government regulations

Jim told his manager, Lana, that a co-worker, Diane had been in prison for theft. Lana checked into the matter and when she learned that Diane had served time in prison for theft, she fired her. Jim is liable to Diane for defamation Jim is liable to Diane for defamation unless he can show a legitimate reason for having to tell Lana about Diana's prison history Jim is liable to Dian for defamation only if she is a public figure Jim is not liable to Diane for defamation

D - Jim is not liable because what he said was true.

What does it mean to "pierce the corporate veil"? The corp will dissolve The corp will now have flow-through taxes Creditors can get the corp's assets Creditors can get the owner's assets

D - Piercing the corp veil means the shield of liability protecting owners has been legally invalidated.

What is a primary advantage of alternative dispute resolution (ADR)? It's not always final It can be done out of court It prevents appeals It saves time and money

D - Saves time and money

Omar substantially performed his obligations under a service contract. What is Omar entitled to receive? The full contract price Substantially nothing The fair market value of his performance The full contract price minus the value of the defects

D - Since he did not fully perform his obligations, he would not be entitled to the full contract amount.

Eva, Diego and Lucas are in business together in the U.S. making toys. Lucas invents a new type of toy, and both Diego and Lucas files for patents within 12 months. However, Diego is the first to file the patent. Lucas sues Diego for patent infringement. Legally who holds the patent rights to the toy? Eva, Diego and Lucas, because they have equal patent rights Lucas and Diego, because they would have joint patent rights Diego, because he was the first to file the patent Lucas, because he invented the toy and filed within 12 months

D - The first to file the patent has priority in the app process, but the actual inventor has a 12-month grace period in which to file before a patent will be issued to anyone else.

In comparative negligence state, if the plaintiff in a negligence lawsuit is found to be 30 percent negligent, what would the plaintiff recover? 30% of the damages All of the damages None of the damages 70% of the damages

D - The percentage of negligence contributed by each party is compared, and the plaintiff receives the amount contributed by the defendant.

An unauthorized user of an automotive glass and claims management company purchases $260K worth of glass from a wholesale glass distributor. If the glass and claims management company does not pay the wholesale glass distributor, is the agent who facilitated the purchase liable? Yes, agents are always liable for the transactions they make with third parties No, the company is always liable for transactions its agents make with third parties Yes, the agent becomes liable after one year of the purchase if the company fails to pay. Yes, agents will be liable for purchases made if they did not have the authority to make the purchases

D - The principal may authorize the agent to perform a variety of tasks or may restrict the agent to specific functions, but if an agent exceeds that authority, liability will not transfer to the principal and, thus, the agent will be held responsible for any damages.

A union and a company have opened negotiations for a new collective bargaining agreement. The company presents its list of demands at the first meeting. At all subsequent negotiation meetings, the company merely asserts that the original list is its final offer. Has the company committed an unfair labor practice? Yes, the company is required to negotiate until a new agreement is reached No, the company is not required to change the demands once they are presented No, the company has no duty to bargain with the union Yes, the company has a duty to bargain in good faith with the union

D - Unfair labor practices are actions taken by employers or unions that are illegal under the National Labor Relations Act (NLRA) and other labor laws. The NLRA requires employers to engage in good faith negotiations.

Which of the following is the ultimate authority in interpreting the Constitution as it applies to both federal and state law? Congress State supreme court President United Sates Supreme Court

D - United States Supreme Court

How would you explain the difference between actual cause and proximate cause?

In tort theory, there are two kinds of causes that a plaintiff must prove: actual cause and proximate cause. - Actual cause: can be found if the connection between the defendant's act and the plaintiff's injuries passes the "but for" test: if an injury would not have occurred "but for the defendant's conduct, then the defendant is the cause of the injury. Injuries must also be foreseeable, nor not too remote. - Proximate cause: a cause that is not too remote or unforeseeable.

Copyrights are protected by the Copyright Act, patents are protected by the Patent Act, and trademarks are protected by the ______________.

Lanham Act - This act was enacted by Congress in 1946 based on the power granted to it by the commerce clause. It protects the owner of a federally registered mark against the use of similar marks if such use is likely to result in consumer confusion. Or if the dilution of a famous mark is likely to occur

How is a corporation formed?

To form a corp, you have to file articles of incorporation with the state. However, many corps, especially those who intend to grow very large, will incorporate in Delaware because the law is well-developed regarding corps, and they do not have a jury trail for corps. These are advantages over many other states. Corps are treated under the law like a person. - Termination - Must wrap up all of the affairs of the corp, including the payment of all obligations, debts and loans to shareholders - Must notify creditors - Must distribute assets to shareholders - Tax paperwork must be filed with the state, reporting

How is an LLC formed? How is it terminated?

To form an LLC: - Select a State - Name your LLC - Choose a Registered Agent - File the Articles of Organization - Create an Operating Agreement LLC will dissolve upon: - Death - Resignation - Retirement - Bankruptcy - Incompetency - Agreement of members

Diego Sousa, an employee at an online service provider, is called for jury duty in Wayne County Michigan. His immediate supervisor, Oliver Turay, lets him know that he "must" avoid jury duty at all costs. Sousa tells the judge of his circumstances and his need to be at work, but the judge refuses to let Sousa avoid jury duty. Sousa spends the next two weeks at trial. He sends regular emails and texts to Turay during this time, but on the fourth day gets a text message from Turay that says, "Don't bother to come back." When he does return, Turay tells him that he's fired. Sousa has a cause of action for the tort of wrongful discharge.

True

Employee A works at a local bank with 20 employees. Employee A attends the same church as her supervisor. Employee A is significantly less qualified for a promotion than Employee B, who practices a different religion. Employee A receives the promotion over Employee B. Employee B is protected under Title VII of the Civil Rights Act of 1964. T or F?

True

Res ipsa loquitur can be applied in cases of negligence where the evidence of causation is inaccessible to the plaintiff. T or F

True - Res ipsa loquitur is a rule of circumstantial evidence that permits the jury to draw an inference of negligence.