Exam 3
Trademark protection in the United States is for: Multiple Choice forever 10 years 30 years 20 years
10 years
Which of the following employees are covered by the Employee Polygraph Protection Act? Multiple Choice local government federal government state government private
private
Which of the following would have an argument for being exempt from using materials that were copyrighted? Multiple Choice A business owner attempting to make money off the materials A consumer attempting to avoid paying for the material c An author who copies the materials to make money without permission
???
Which of the following is an example of an unsecured debt? Multiple Choice A farmer sells fruits and vegetables to a grocery store that promises to for them within 30 days after receipt. A person gives her jewelry to a pawn shop as collateral for a short-term loan. An employee provides babysitting services to a customer for a fee that the customer's father agrees in writing to pay if the customer does not pay. A car dealer sells a car to a student whose father co-signs the loan.
A farmer sells fruits and vegetables to a grocery store that promises to for them within 30 days after receipt.
Which of the following is most likely to be considered a sale of goods to which the Uniform Commercial Code applies? Multiple Choice A gas station sells a new battery for a car. A dentist places a crown over a patient's tooth. A hairstylist uses a crème rinse in styling a client's hair. A spinal readjustment from a chiropractor.
A gas station sells a new battery for a car.
Which of the following scenarios most likely constitutes a violation of Section 1 of the Sherman Act? Multiple Choice A manufacturer unilaterally suggests a retail price to its dealers for its products A manufacturer limits the dealerships it grants in a particular geographic area A manufacturer causes its dealers to agree not to sell outside their dealership territories A manufacturer unilaterally assigns exclusive territories to its dealers
A manufacturer causes its dealers to agree not to sell outside their dealership territories
Which of the following would not be an example of negligent failure to warn? Multiple Choice A drug with side effects that are not listed on the container. A computer that overheats when plugged in for more than two hours. A drug that can be lethal when taken with Aspirin, but which is not stated on the bottle. A mousetrap with a metal catch mechanism.
A mousetrap with a metal catch mechanism.
Which of the following is not an exception to the general rule that a buyer cannot get better title to goods than his seller had? Multiple Choice A person who bus goods in the ordinary course of a dealer's business takes free of any claim of a person who entrusted those goods to the dealer. A person who buys goods that he has reason to know are stolen. A person who buys goods in the regular course of a retailer's business takes free of any interests in the goods that the retailer has given to others. A person who has a voidable title to goods can pass good title to a bona fide purchaser for value.
A person who buys goods that he has reason to know are stolen.
In which scenario is a company least likely to be able to assert ownership of intellectual property? Multiple Choice A company's advertising department creates a series of magazine advertisements for its products. A sales executive for the company develops a confidential strategy for marketing its products to customers. A web designer creates a new method for ordering products online as part of a website that the company paid the designer to develop. A worker is wearing a trademarked product in a picture on her social media website. The company contracts to buy another business, including the goodwill associated with the business and the right to use the business's name.
A worker is wearing a trademarked product in a picture on her social media website.
Which of the following situations does not violate the Age Discrimination in Employment Act if the decision in question is based on age and the employer in question has more than 20 employees and is in an industry affecting interstate commerce? Multiple Choice Sandra, who is 41 years old, is not given a pay raise. Ron, a 45 year old, is not given a promotion, instead Geraldine, a 32 year old, is. Beryl, a 21 year old, is not hired, instead John, a 70 year old, is. Cleo, a 65 year old, is terminated due to downsizing, while Alvina, a 50 year old, retains her job. Forty-five-year-old Clinton and 33-year-old Eliza both apply for a job, and Eliza is selected.
Beryl, a 21 year old, is not hired, instead John, a 70 year old, is.
Which security instrument requires a creditor to file a separate lawsuit for the sole purpose of recovering a deficiency from a defaulting debtor? Multiple Choice Land contract "Strict foreclosure" of a mortgage Deed of trust All of these security instruments require a creditor to file a separate lawsuit to recover a deficiency.
Deed of trust
Which of the following is also termed slander of title or a trade libel? Multiple Choice Copyright infringement Defamation Plagiarism Injurious falsehood
Injurious falsehood
Which of the following antitrust activities can be challenged only under state law? Multiple Choice Intrastate deceptive and unfair practices Interstate deceptive and unfair practices Interstate agreements in restraint of trade Intrastate agreements in restraint of trade
Intrastate agreements in restraint of trade
Although the __________ Act is the federal trademark statute, section 43(a) of the statute may be invoked in various situations that do not involve trademark rights. Multiple Choice Demers Hartlett Geneva Lanham
Lanham
Which of the following business forms is an especially good form of business for professionals such as consultants and auditors in states where they cannot be organized as a limited liability company, allowing them management flexibility while insulating them mostly from personal liability? Multiple Choice Corporation. Sole proprietorship. S Corporation. Benefit corporation. Limited liability partnership.
Limited liability partnership.
Assume Will signed a guaranty for rent that Jack owes to Karen. Which of the following gives Will the ability to require Jack to pay the rent if Jack is able to do so and does not have a valid defense against paying the rent? Multiple Choice Right of subrogation Right to redeem/equity of redemption Right to reimbursement Right to contribution Right of exoneration
Right of exoneration
Assume Will and Grace sign an agreement making them equal sureties for rent that Jack owes to Karen. If Will is forced to pay the entire rent as surety for Jack, which of the following gives Will the ability to require Grace to pay him for her share of the rent as co-surety? Multiple Choice Right of exoneration Right to contribution Right to reimbursement Right of subrogation
Right to contribution
This business form is unique from many other business forms because ownership and management are completely separate: Multiple Choice Partnership. Benefit corporation. Corporation. Sole proprietorship. Limited partnership.
Corporation.
The sale of a partner's transferable interest in a business entitles the buyer to which of the following rights? Multiple Choice Distributions, like profit, to which the selling partner was entitled The right to inspect the partnership's accounting books The right to represent the partnership in a legal proceeding The right to manage the partnership
Distributions, like profit, to which the selling partner was entitled
In which of the following business forms are all of the partners liable for the torts that are committed in the course of business by their partners? Multiple Choice Benefit corporation. Limited liability partnership. Limited liability company. S Corporation. Partnership.
Partnership.
Which of the following business forms includes unlimited liability, allows for the partners to be taxed individually, and can be formed automatically when there are people acting in concert and do not select an alternative business form? Multiple Choice Limited liability company. Partnership. Limited liability partnership. S Corporation. Benefit corporation.
Partnership.
According to the Revised Uniform Partnership Act's (RUPA's) rules that determine when property is acquired by a partnership, which of the following is correct? Multiple Choice Property belongs to the partnership if the property is transferred to the partnership in its name. Property belongs to the partnership if the property is transferred to any partner acting as a partner by a transfer document that names the partnership. Property belongs to the partnership if the property is transferred to any partner by a transfer document indicating the partner's status as a partner or that a partnership exists. Property belongs to the partnership if the property is purchased with a partner's funds.
Property belongs to the partnership if the property is purchased with a partner's funds.
If a foreign corporation has to qualify to do business in a specific state, all of the following except which of these is required? Multiple Choice Reincorporate in that state Apply for a certificate of authority from the secretary of state and pay an application fee Maintain a registered office and a registered agent in the state Pay an annual fee File an annual report with the secretary of state
Reincorporate in that state
Wood You Like Toys, Incorporated, headquartered in Vermont, specializes in manufacturing non-toxic wooden toys in its two (2) mechanized units in Vermont and New Hampshire. Its flagship store is in Philadelphia, Pennsylvania. It will be considered a(n) __________ corporation in Pennsylvania. Multiple Choice domestic domicile foreign alien
foreign
Which of the following documents is required for a foreign corporation to do intrastate business in a state? Multiple Choice A certificate of domicile A certificate of reciprocity A certificate of due diligence A certificate of authority
A certificate of authority
Which of the following most likely constitutes a violation of Section 2 of the Sherman Act? Multiple Choice Misdirected monopolization The intent to monopolize Attempted monopolization A conspiracy to monopolize
A conspiracy to monopolize
Which of the following constitutes a necessary part of a larger joint undertaking serving procompetitive ends? Multiple Choice Naked horizontal restraints Ancillary horizontal restraints Ancillary vertical restraints Naked vertical restraints
Ancillary horizontal restraints
Which Article of the Uniform Commercial Code specifically addresses and governs leases of goods? Multiple Choice Article 4 Article 2 Article 3 Article 2A
Article 2A
Which of the following is not required for a good to be considered to be merchantable? Multiple Choice Be fit for the ordinary purposes for which such goods are used. Be adequately contained, packaged, and labeled. Be of even kind, quality, and quantity within each unit. Pass without objection in the trade. Pass without objection in the trade. Be of the highest possible quality.
Be of the highest possible quality.
According to the United States Supreme Court, a foreign corporation may be brought into a state's court in connection with its activities within the state, provided that the state does not violate the corporation's due process rights under the Fourteenth Amendment of the United States Constitution and its rights under the __________ Clause. Multiple Choice Supremacy Commerce Equal Protection Privilege and Immunities
Commerce
Which tort would be appropriate for a plaintiff-businessperson to sue under if the defendant made a statement that impugns the plaintiff-businessperson's character or conduct? Multiple Choice Misappropriation Defamation Injurious falsehood Fraudulent misrepresentation
Defamation
The bankruptcy of which of the following parties would result in termination of an agency relationship (assuming the bankruptcy affects the overall mission or duties of the agent)? Multiple Choice The principal The agent The subagent Either the principal or the agent
Either the principal or the agent?
Identify the type of employers covered by Title VII of the Civil Rights Act of 1964. Multiple Choice Employers with three (3) or more employees and engaged in an industry affecting intrastate commerce Employers with thirty (30) or more employees and engaged in an industry affecting intrastate commerce All employers engaged in industries affecting interstate commerce Employers with fifteen (15) or more employees and engaged in an industry affecting interstate commerce
Employers with fifteen (15) or more employees and engaged in an industry affecting interstate commerce
Which of the following statements about recording certain security interests with the appropriate government office is correct? Multiple Choice If it is not recorded, the security interest is valid only against subsequent purchasers of the property. If it is not recorded, the security interest is not legally valid and enforceable between the debtor and creditor. If it is not recorded, the security interest will not be effective against subsequent purchasers or creditors who have no notice of the security interest. If it is not recorded, the security interest can only be enforced by filing a lawsuit in court.
If it is not recorded, the security interest will not be effective against subsequent purchasers or creditors who have no notice of the security interest.
After buying the Model X, John finally sets out on his cross-country road trip. He starts driving from San Francisco, with the goal of getting to the first recharging station in Battle Mountain, Nevada, some 450 miles away. Despite prominent labels on the car itself, it only makes it to Reno, Nevada, which is only 240 miles from San Francisco. Frustrated, John decides to sue Electric. Under which of the following claims would he likely have the most success? [Assume that the salesman was walking away and did not know about John's cross-country road trip plans.] Multiple Choice Implied warranty of fitness for a particular purpose. Implied warranty of merchantability. Negligent inspection. Negligent design. Negligent failure to warn.
Implied warranty of merchantability.
Suppose that Indiana Power and Light (IPL) has been running two nuclear power plants in Northern Indiana for several years. Michigan Power and Illinois Electric also run power plants in the area. A river becomes contaminated with nuclear waste, and it is impossible to say for sure which nuclear power plant is to blame. Which is the best theory of liability that would allow plaintiffs to recover? Multiple Choice Unavoidably protected. Avoidably protected. Breach of express warranty. Breach of implied warranty. Industrywide liability.
Industrywide liability.
Which of the following is NOT part of the test to determine whether an employee is acting within the scope of employment? Multiple Choice It occurred substantially within the authorized time period. It was of the kind that the employee was employed to perform. It involved a third party with knowledge of the agency. It was motivated at least in part by the purpose of serving the employer.
It involved a third party with knowledge of the agency.
If Janet and Joan, a buyer and seller of a used car, fail to specify when title for the car is to pass, UCC gap fillers provides that title will pass when: Multiple Choice The contract is created. The car is delivered to Janet's home. Joan, the seller, completes her obligation with respect to physical delivery of the goods. The title is registered at the BMV.
Joan, the seller, completes her obligation with respect to physical delivery of the goods.
Murray, an accountant, sells his motorcycle to Emily, a rock star. Has an implied warranty of merchantability been created? Multiple Choice Yes, because a motorcycle is a "good" under the UCC. Yes, because Murray is a merchant. No, because Murray is not a merchant. Yes, because merchantability is part of every transaction.
No, because Murray is not a merchant.
Which of the following involves a plea where the defendant technically has not admitted guilt, but the sentencing court can still impose the same penalty as if the defendant pleaded guilty or was convicted at trial? Multiple Choice Corpus delecti Esse quam videri Nolle prosequi Nolo contendere
Nolo contendere
Assume Linares wants to obtain a patent for his manufacturing process. What requirement for obtaining a U.S. patent requires that Linares' invention must be something that would not have been readily apparent to a person who is skilled in the existing technology ("prior art") in the same or related fields? Multiple Choice Utility Drawing Non-Obviousness Disclosure Novelty
Non-Obviousness
Which of the following activities is classified as doing business for the purpose of intrastate business qualification? Multiple Choice Selling products or services through independent contractors Soliciting orders by mail that require acceptance outside the state Owning or using real estate for general corporate purposes Conducting an isolated transaction that is completed within thirty (30) days
Owning or using real estate for general corporate purposes
Smith Co. is accused of attempted monopolization. If charged, Smith will likely be charged with a violation of the _______ Act. Multiple Choice Dodd-Frank Rumsfeld-Biden Sarbanes-Oxley Sherman Marston
Sherman
The three federal antitrust statutes are the Clayton Act, the Robinson-Patman Act, and the ____________. Multiple Choice Sarbanes-Oxley Act Marston Act Sherman Act Dodd-Frank Act Rumsfeld-Biden Act
Sherman Act
Which Act deals with monopolies and restraints on trade? Multiple Choice No such legislation has been enacted Sarbanes-Oxley Act Dodd-Frank Act Werner-Harris Act Sherman Act
Sherman Act
Which of the following is not a major life activity under the Americans with Disabilities Act? Multiple Choice Lifting Sleeping Eating Standing Speaking a foreign language
Speaking a foreign language
The limited liability partnership is a business form that was created first in the state of __, in __. Multiple Choice New York, 1891 Illinois, 1951 Massachusetts, 1921 California, 1971 Texas, 1991
Texas, 1991
Which of the following outlaws monopolization, attempted monopolization, and agreements in restraint of trade? Multiple Choice The Sherman Act Federal Trade Commission Act The Commerce Clause of the United States Constitution The Clayton Act
The Sherman Act
Unemployment compensation is administered by which of the following? Multiple Choice The United States Social Security System The U.S. Secretary of Labor The individual states The National Labor Relations Board (NLRB)
The individual states
Which of the following was not a characteristic of 19th century product liability law? Multiple Choice Goods tended not to be simple, so buyers could not easily inspect them. Strict liability was not commonplace. The seller should beware. Caveat emptor.
The seller should beware.
Jonny, a high school history teacher, sells his car to Doris, a friend. This sale is governed by: Multiple Choice UCC Article 3B. Common law. UCC Article 2A. It depends on the cost of the car. UCC Article 2.
UCC Article 2.
Which of the following is NOT a claim or doctrine sounding in contract? Multiple Choice Violations of sections of employee handbooks. Implied covenant of good faith and fair dealing Wrongful discharge in violation of public policy Implied contract Promissory estoppel
Wrongful discharge in violation of public policy
To remove all ambiguity regarding ownership of property used by a partnership, the partners should come to a mutual understanding regarding property ownership and put such an understanding in __________. Multiple Choice articles of incorporation a partnership agreement articles of organization an exculpatory clause
a partnership agreement
The usual Title VII of the 1964 Civil Rights Act claim is filed by __________. Multiple Choice the United States Department of Labor the United States Department of Justice the Equal Employment Opportunity Commission a private party
a private party
Suppose Deb's mother agreed in writing that, without getting paid, she would be "jointly and severally liable" for Deb's debt. Multiple Choice lienholder accommodation surety compensated surety guarantor mortgagor
accommodation surety
Some courts say that shareholder domination makes the corporation the __________ of the shareholders. Multiple Choice principal superego alter ego third party beneficiary
alter ego
A __________ takes goods free of any security interest in the goods that their seller may have given to a third party. Multiple Choice bona fide purchaser good-faith purchaser purchaser for value buyer in the ordinary course of business
buyer in the ordinary course of business
According to the Chicago School viewpoint, the traditional antitrust focus on the structure of industry has improperly emphasized protecting __________ instead of protecting __________. Multiple Choice competitors; consumers competitors; competition consumers; competitors competition; consumers
competitors; competition
Dr. Evil, the CEO of Evil Enterprises, Inc., convinces all of the company's competitors to merge with Evil Enterprises, Inc. He tells them that they will be able to "charge customers as much as they want, and become large enough to run any dissenting company out of business." In this situation, Dr. Evil is trying to engage in _____________. Multiple Choice a legal joint venture conspiracy to monopolize anticoncentration horizontal price fixing vertical price fixing
conspiracy to monopolize
Foreign firms that are __________ in United States domestic commerce are subject to federal antitrust jurisdiction. Multiple Choice continuously engaged engaged even once occasionally engaged even rarely engaged
continuously engaged
A _________________________________, is known as a pseudo-foreign corporation. Multiple Choice corporation that conducts most of its business in a state other than the one in which it is incorporated foreign business that qualifies to do business as an LLC in a state other than where it is registered corporation that claims it does business in another state, but actually doesn't corporation that does not have to qualify to do business outside the state in which it is incorporated corporation listed on a major stock exchange
corporation that conducts most of its business in a state other than the one in which it is incorporated
Julie gives her agent improper or unclear instructions, and fails to make and enforce appropriate regulations to govern her agent's conduct. Julie likely will be held to be liable for actions undertaken by her agent under __________ Multiple Choice implied warranty of authority. respondeat superior. ratification theory. direct liability.
direct liability.
Julie gives her agent improper or unclear instructions, and fails to make and enforce appropriate regulations to govern her agent's conduct. Julie likely will be held to be liable for actions undertaken by her agent under __________ Multiple Choice ratification theory. implied warranty of authority. direct liability. respondeat superior.
direct liability.
If an agent is joining the principal as an obligor on the contract, the agent is __________ Multiple Choice avoiding liability on the contract. creating an implied warranty to the contract. expressly binding herself to the contract. ratifying the contract.
expressly binding herself to the contract.
If an agent is joining the principal as an obligor on the contract, the agent is __________ Multiple Choice avoiding liability on the contract. ratifying the contract. creating an implied warranty to the contract. expressly binding herself to the contract.
expressly binding herself to the contract.
A mining partner's interest is __________. Multiple Choice partially transferable nontransferable freely transferable nonliquid
freely transferable
Firms that develop monopoly power by acquiring ownership or control of their competitors are likely to be held to have ____________________. Multiple Choice a tying agreement an exclusive dealing contract bad faith intent to monopolize a legitimate competitive advantage
intent to monopolize
Purposeful acquisition or maintenance of monopoly power is evidence that a defendant had ___________________. Multiple Choice bad faith a tying agreement intent to monopolize an exclusive dealing contract a legitimate competitive advantage
intent to monopolize
Smith Co. is accused of monopolization. To prove this, it must be shown that Smith Co. had both monopoly power and ___________________. Multiple Choice a reciprocal dealing agreement increased profits an illegal joint venture intent to monopolize an exclusive dealing agreement
intent to monopolize
As demonstrated in the case in the text, Kibler v. Hall, most of the court's attention in trademark infringement cases is concerned with the: Multiple Choice dispute over profits made by the defendants. generic nature of the disputed trademark time period of the trademark rights. likelihood of confusion over the trademark.
likelihood of confusion over the trademark.
Proof of monopoly power standing alone is __________ sufficient to prove a violation of Section 2 of the Sherman Act. Multiple Choice rarely never always usually
never
Another term for an independent contractor is a __________ Multiple Choice special agent. nonemployee agent. general agent. subagent.
nonemployee agent.
Today's market structure in many important industries is __________, meaning that a few dominant firms account for the bulk of production. Multiple Choice monopolistic monopolistically competitive anticompetitive oligopolistic
oligopolistic
The act of pricing below the appropriate cost for the purpose of eliminating competitors in the short run and reducing competition in the long run is known as ______________. Multiple Choice vertically restraining the market predatory pricing vendor boycotting horizontal dividing of markets price fixing
predatory pricing
The damages recoverable in a patent infringement case cannot be less than: Multiple Choice three times the damages actually suffered, and to be decided by the court. reasonable royalty for the invention by the creator. court costs and interests. reasonable royalty for the use of the invention by the infringer.
reasonable royalty for the use of the invention by the infringer
Termination of the agency relationship at the option of the agent is known as __________. Multiple Choice revocation liquidation renunciation falsification
renunciation
The patent application must include a(n) __________ describing the invention with sufficient detail and clarity to enable a person skilled in the relevant field to make and use the invention. Multiple Choice drawing idea proposal specification
specification
Trade secret protections are provided through: Multiple Choice the Uniform Trade Secrets Act. state statutes and common law. federal statutes. the U.S. Constitution.
state statutes and common law.
Who may pursue a criminal case if the copyright infringement was willful and for purposes of commercial advantage or private financial gain? Multiple Choice the patent police the county clerk the trademark officer the federal government
the federal government
When an agency relationship is formed, but third parties lack knowledge of the principal's existence and identity, the principal is __________ Multiple Choice nonexistent. unidentified. disclosed. undisclosed.
undisclosed.
When an agency relationship is formed, but third parties lack knowledge of the principal's existence and identity, the principal is __________ Multiple Choice unidentified. nonexistent. disclosed. undisclosed.
undisclosed.
The failure of a foreign nonprofit corporation to qualify to do intrastate business in a state prevents it from __________. Multiple Choice using any state-related grants or programs advertising in that state collecting taxes from its sales using the state's courts to bring lawsuits
using the state's courts to bring lawsuits
A seller who has a __________ has the power to pass good title to a good faith purchaser for value. Multiple Choice lease title lease deed good faith title voidable title
voidable title
Which of the following is an example of actual notification of termination of an agency to third parties? Multiple Choice Displaying notice of termination of the agency on the company website A writing delivered to the third party's place of business Advertising the agency's termination in a newspaper of general circulation Posting notice of termination of the agency in a public place
A writing delivered to the third party's place of business
Generally, an agency relationship is terminated by operation of law in all of the following situations except: Multiple Choice A serious breach of the agent's duty of loyalty. The agent's bankruptcy. An agent's illness. Impossibility of performance by the agent.
An agent's illness.
Which of the following statements about "sale on approval" is false? Multiple Choice The buyer's creditors cannot reach goods held on approval. The return of the goods is at the seller's risk and expense. Any use of the goods constitutes acceptance. Title to the goods does not pass to the buyer until the buyer accepts.
Any use of the goods constitutes acceptance.
Suppose that European Airlines is contracting with Wright Bros. Airplanes to test a new type of airplane that Wright has developed, the 797 Starliner. The 797 is delivered to European Airlines and begins making regular flights with it, but never formally accepts the contract. Under this scenario: Multiple Choice European Airlines would likely not be deemed to have accepted the 797 under the sale on approval doctrine. European Airlines has breached its contract with Wright. European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine. European Airlines would likely have to return the 797 to Wright. European Airlines could keep the 797 under the Sale or Return doctrine.
European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine.
In the case in the text, Lewis-Gale Medical Center, LLC v. Alldredge, the court held that the trial court erred because: Multiple Choice Tyson's statements, such as her use of the term "organizational terrorist" to describe Dr. Alldredge, were independently tortious and therefore rose to improper methods. Lewis-Gale's actions fell so far outside the accepted practice of that "rough-and tumble" world as to constitute improper methods. Lewis-Gale's actions were improper in that it used intimidation, duress, and undue influence based upon Lewis-Gale's ability to bring "financial ruin" on SWEP by canceling its contract to provide emergency room services to Lewis-Gale, which was SWEP's principal source of revenue. Lewis-Gale's actions did not demonstrate tortious interference with contract.
Lewis-Gale's actions did not demonstrate tortious interference with contract.
Which of the following is correct regarding a subagent's duties to a principal? Multiple Choice A subagent owes the original principal for duties arising solely from the original principal's contract with the agent. The agent who appoints the subagent is not liable to the original principal when he is harmed by the subagent's conduct. A subagent who knows of the original principal's existence also owes that principal all the duties agents owe their principals. A subagent does not owe the agent any of the duties that agents owe their principals.
A subagent who knows of the original principal's existence also owes that principal all the duties agents owe their principals.
Which of the following forms of business is limited to one hundred (100) shareholders? Multiple Choice A general partnership A limited partnership An S corporation A C corporation
An S corporation
Which of the following security instruments, if any, does not allow the debtor the right of redemption upon default? Multiple Choice "Strict foreclosure" of mortgage Mortgage foreclosure by "action and sale" Debtors have a right to redeem property under all of these security instruments. Mortgage foreclosure by "power of sale"
Debtors have a right to redeem property under all of these security instruments.
An authority which is created by principal's own words is called Multiple Choice Indirect authority. Express authority. Implied authority. Apparent authority. Direct authority.
Express authority.
What was the court's CONCLUSION (holding, decision) in the CBS Corp v FCC case? Affirmed for FCC. Jackson and Timberlake were employees rather than independent contractors and respondeat superior does not apply on these facts. Reversed for CBS. Jackson and Timberlake were independent contractors rather than employees and respondeat superior does not apply on these facts. Affirmed for CBS. Jackson and Timberlake were employees rather than independent contractors and respondeat superior does not apply on these facts. Reversed for CBS. Jackson and Timberlake were employees rather than independent contractors and respondeat superior does not apply on these facts.
Reversed for CBS. Jackson and Timberlake were independent contractors rather than employees and respondeat superior does not apply on these facts.
A business form owned by shareholders who elect a board of directors to manage the business, but enjoy tax status similar to that of a partnership is called a(n): Multiple Choice Corporation. Limited liability partnership. Sole proprietorship. Limited partnership. S Corporation.
S Corporation.
When conducting the principal's business, an agent __________ engage in __________. Multiple Choice may not; the exercise of express authority may; conflicts of interest may not; self-dealing may; self-dealing
may not; self-dealing
Which of the following is most likely to be classified as an independent contractor rather than an employee? Multiple Choice A professor at a large public university. A lawyer who works as in-house counsel for a corporation. The president of a corporation. An assembly line worker. An autonomous franchisee of a fast food fried chicken chain.
An autonomous franchisee of a fast food fried chicken chain.
Which of the following would not constitute oppressive child labor according to the Fair Labor Standards Act (FLSA)? Multiple Choice Most employment of children below the age of fourteen (14) Employment of children under the age of eighteen (18) in any occupation approved by the United States Department of Labor Employment of children aged 14-15 in an occupation not approved by the U.S. Department of Labor Employment of children aged 16-17 who work in occupations declared particularly hazardous by the U.S. Department of Labor
Employment of children under the age of eighteen (18) in any occupation approved by the United States Department of Labo
Which of the following is not a recognized element of the "substantially equal work requirement" of the Equal Pay Act? Multiple Choice Equal responsibility Equal effort Equal length of employment Equal skill
Equal length of employment
Which of the following theories might allow a third party to recover when the third party has justifiably changed their position in reliance on an agent's assertions, but the agent lacks actual or apparent authority? Multiple Choice Implied Estoppel Rescission Respondeat superior
Estoppel
Which of the following is least likely to make an employer liable for unjust dismissal or wrongful discharge under the public policy exception to the employment at will doctrine? Multiple Choice Firing an employee for his refusal to commit perjury in a $1,000,000 product liability suit against the firm Firing an employee for his refusal to work on a contract to manufacture weapons because of his religious convictions Firing an employee for filing a workers' compensation claim against the employer Firing a middle-level manager for refusing to violate Title VII of the Civil Rights Act of 1964 by denying a promotion to a Black subordinate
Firing an employee for his refusal to work on a contract to manufacture weapons because of his religious convictions
Bill has a mortgage on a rental property and he defaulted on his payments. Which of the following statements is correct if the bank were to pursue foreclosure by an action and sale of Bill's mortgage? Multiple Choice If the property is sold for less than Bill owes, the bank has no right to recover the deficiency. If the property is sold for less than Bill owes, the bank must file a separate lawsuit to recover the deficiency. If the property is sold for more than Bill owes, Bill must file a separate lawsuit to recover the surplus. If the property is sold for less than Bill owes, the court will enter a deficiency judgment for the bank.
If the property is sold for less than Bill owes, the court will enter a deficiency judgment for the bank.
Which of the following is not an example of puffery? Multiple Choice "This car is a good buy." "This car is the best buy." "This is the best car in its class." "This car gets 30 mpg," stated in the sales contract.
"This car gets 30 mpg," stated in the sales contract.
Which of the following is an example of puffery? Multiple Choice "This car gets 40 mpg," stated in the sales contract. "This computer has 1 terabyte of memory." "This house has two bathrooms." "This car has a 200 horse power engine." "This car's an antique."
"This car's an antique."
Ryan enters into a contract with Dave, the neighborhood grocer, to supply fresh vegetables daily. After four months, the grocery store expands its business considerably and attracts customers from the neighboring areas as well. As a result, Dave demands that Ryan triple his supply as he cannot keep up with the demand. Which of the following will apply in determining the amount that can be supplied in such circumstances? Multiple Choice Rule of requirements Rule of good faith Rule of reasonable price Rule of needs
Rule of good faith
Which of the following is not a breach of the implied warranty of merchantability? Multiple Choice A can of Coke that was accidentally not carbonated and sold with a case of regular Coke cans. A car that was sold as a sports car capable of high speeds but still adequately runs. A high-protein shake that contained no protein. A used car sold without a working engine.
A car that was sold as a sports car capable of high speeds but still adequately runs.
The following characteristic(s) distinguish(es) an S Corporation from other corporations: Multiple Choice An S Corporation may have no more than 100 shareholders. An S Corporation may only be owned by individuals and trusts. All of the above. An S Corporation may have only one class of shares. An S Corporation must elect S Corporation status under the Internal Revenue Code.
All of the above.
Which of the following is least likely to be an independent contractor? Multiple Choice A boxer. An assembly line worker. A day laborer hired to help build a wall. A mason.
An assembly line worker.
Which of the following is an example of an unsecured debt? Multiple Choice A bar sells alcohol to a customer on credit (a tab) that the customer's brother agrees in writing to pay if the customer does not. An employee provides babysitting services for a daycare service that promises to pay her at the end of each week. A car rental service rents a car to a deliveryman on a credit account that the deliveryman's boss promises in writing to pay if the deliveryman does not pay. A person gives his television to a pawnbroker as collateral for a short-term loan.
An employee provides babysitting services for a daycare service that promises to pay her at the end of each week.
Suppose that Chemicals 'R Us is contracting with several international suppliers to provide chemicals for their operations. Part of their contract requires that Chemicals 'R Us insure the goods. This provision is called: Multiple Choice C&F FAB TOB J&D CIF
CIF
All states except which of the following permit professionals to organize as limited liability companies (LLCs)? Multiple Choice Oregon Rhode Island California Delaware
California
Assume Linares chose the name "Apollo" because Apollo is the god of light and sun in Greek mythology and Linares wants people to think of Apollo diamonds as giving off dazzling, sparkling light like the sun. If so, "Apollo" for the diamonds would mostly likely fall into which category of distinctiveness for trademarks? Multiple Choice Generic Arbitrary Descriptive Suggestive Fanciful
Suggestive
Susan Mills, a sole proprietor, operates her bakery under the name Susan's Sweets. If she were sued by a creditor, the creditor would address his complaint to __________. Multiple Choice Susan Mills or Susan's Sweets Susan Mills, doing business as Susan's Sweets Susan Mills Susan's Sweets
Susan Mills, doing business as Susan's Sweets
A third party cannot hold an agent liable on contracts made for an undisclosed principal. Group startsTrue or False
False
Under Article 2 of the Uniform Commercial Code, why does it matter whether a party to a contract is a merchant? Multiple Choice It is the test for applying Article 2 of the UCC. Merchants are treated held to different standards than non-merchants. All contracts in which one or both parties are merchants are handled under Article 2A of the UCC. Article 2 does not concern itself with cases regarding the transactions of goods.
Merchants are treated held to different standards than non-merchants.
What requirement for obtaining a U.S. patent requires that the applicant must be the first person to have invented the process? Multiple Choice Non-Obviousness Utility Disclosure Novelty Drawing
Novelty
A liability inherent in a sole proprietorship is that the sole proprietor is: Multiple Choice Able to share liability with partners for costs associated with poor business decisions. Liable to limited partners, but not general partners, for costs associated with poor business decisions. Personally liable for costs associated with poor business decisions. Liable to the board of directors for costs associated with poor business decisions. Liable to shareholders for costs associated with poor business decisions.
Personally liable for costs associated with poor business decisions.
Assume Will, acting as surety for Jack, pays Jack's debts to Karen. Which of the following gives Will all of the rights that Karen had against Jack? Multiple Choice Right of exoneration Right of subrogation Right to redeem/equity of redemption Right to contribution
Right of subrogation
Which of the following is not a major life activity under the Americans with Disabilities Act? Multiple Choice Seeing Playing basketball Concentrating Speaking Reading
Playing basketball
A principal is directly liable for misrepresentations made by her agent during authorized transactions if she intended that the agent make the misrepresentations. Group starts True or False
True
When two or more business entities work together to monopolize a relevant market, they may be guilty of _____________. Multiple Choice conspiracy to monopolize efficient breach a legal joint venture economic fraud anticoncentration
conspiracy to monopolize
Modern corporation law has emerged in the last __________ years. Multiple Choice fifty (50) two hundred (200) hundred (100) twenty-five (25)
two hundred (200)
An employee must typically show three (3) things to present a prima facie case of wrongful termination in contravention of public policy. Which of the following is the employee not required to show? Multiple Choice That the plaintiff's conduct supports the public policy That the termination would discourage the plaintiff's conduct and thereby jeopardize the public policy That the employer's act of termination demonstrated malice That the state has a clear and substantial public policy related to the plaintiff's conduct
That the employer's act of termination demonstrated malice
Which of the following is a tort claim for wrongful discharge or unjust dismissal? Multiple Choice Implied contract Employment at will Implied covenant of good faith and fair dealing Promissory estoppel Wrongful discharge in violation of public policy
Wrongful discharge in violation of public policy
An S corporation election requires the consent of __________ of its shareholders. Multiple Choice the majority two-thirds all none
all
When two (2) or more persons or business entities join for the purpose of restraining trade, a(n) __________ occurs. Multiple Choice oligopoly conspiracy acquisition monopoly
conspiracy
Chicago School advocates view __________ as the primary, if not sole, goal of antitrust enforcement. Multiple Choice intraindustry competition anticoncentration of economic power anticoncentration of political power economic efficiency
economic efficiency?
Partnership capital is the __________ of the business. Multiple Choice amortization gross profit equity net profit
equity
An agent hired to manage a business can make contracts that are reasonably necessary for conducting the business or that are customary in the business. This refers to __________ Multiple Choice apparent authority. express authority. implied authority. fixed authority.
implied authority.
When an agent contracts for a legally existing and competent principal while lacking authority to do so, he or she is bound to the contract on the theory of __________ Multiple Choice express binding. implied warranty direct liability. exculpatory clause.
implied warranty
When an agent contracts for a legally existing and competent principal while lacking authority to do so, he or she is bound to the contract on the theory of __________ Multiple Choice express binding. implied warranty. direct liability. exculpatory clause.
implied warranty.
An agent who makes misrepresentations to a third party based on information provided by the principal __________ Multiple Choice is liable under the theory of apparent authority. is liable in tort even if he or she either knew or had reason to know their falsity. is not liable unless the principal indemnifies the agent. is not involved a third party with knowledge of the agency.
is not involved a third party with knowledge of the agency.
Windows Inc. has a _____ in the windows installed in Deb's house. Multiple Choice possessory lien materialman's lien mortgage deed of trust mechanic's lien
materialman's lien
An LLC is owned by __________. Multiple Choice owners members partners shareholders
members
Which of the following is the reason why the Uniform Commercial Code distinguishes between merchants and nonmerchants? Multiple Choice Nonmerchants can protect themselves better than merchants. Compared to nonmerchants, merchants are typically insured and can bear the cost of liability. Merchants tend to have more bargaining power and can take advantage of buyers. Buyers tend to place more reliance on professional sellers because they are generally more knowledgeable and better able to protect themselves than nonprofessionals.
Buyers tend to place more reliance on professional sellers because they are generally more knowledgeable and better able to protect themselves than nonprofessionals.
The only difference between C & F and CIF shipping contracts is: Multiple Choice C & F shipping contracts do not require the seller to insure the goods. CIF shipping contracts do not include the cost of shipping. C & F shipping contracts do not include the cost of shipping. CIF shipping contracts do not require the seller to insure the goods.
C & F shipping contracts do not require the seller to insure the goods.
Suppose that Chemicals 'R Us is contracting with several international suppliers to provide chemicals for their operations. The contract calls for Chemicals R' Us to load the goods and bear the cost of shipping as part of the price charged. They are not however required to insure the shipment. This provision is called: Multiple Choice CIF FAB Ex-ship J&D C&F
C&F
Suppose that Indiana College is contracting with several local farms to provide food for the residence halls. Part of their contract requires that the farms insure the goods. This provision is called: Multiple Choice FAS FOB CIF C&F
CIF
In a contract for the sale of goods between two merchants, if a term is omitted the UCC Article 2: Multiple Choice Can fill in the contract if both parties offer additional consideration. Provides an opportunity for both parties to get out of the contract. Declares the contract null and void. Does not apply. Can use gap fillers to fill in the blank.
Can use gap fillers to fill in the blank.
Bob Jones, a gardener, wants to get a haircut. This transaction is governed by: Multiple Choice Common law. It depends on the cost of the haircut. UCC Article 5. UCC Article 2.
Common law.
Which of the following is correct regarding subagents? Multiple Choice Subagents do not have the authority to bind a principal, but they can bind the agent. They are agents of the agent, but not of the principal himself. They must be appointed by the principal, although they report to the agent. For a sub-agency to exist, an agent must have the authority to make the subagent his agent.
For a sub-agency to exist, an agent must have the authority to make the subagent his agent.
Which of the following is correct regarding a partnership? Multiple Choice Business losses are deductible based on the limit on a partner's individual tax return. It does not have a life apart from its owners. Partners of a partnership do not assume personal liability for obligations of the business. It is not a tax-paying entity for federal income tax purposes.
It is not a tax-paying entity for federal income tax purposes.
Which of the following is correct regarding an agency coupled with an interest? Multiple Choice It is terminated by the agent's death It is not terminated by the agent's loss of capacity. It is terminated by the principal's death. It is terminated by the principal's revocation.
It is terminated by the agent's death
A business form designed to combine the nontax advantages of corporations with the favorable tax treatment of partnerships is a(n): Multiple Choice Limited liability partnership. Sole proprietorship. C Corporation. Limited liability company. Limited partnership.
Limited liability company.
Which of the following statements about the Defend Trade Secrets Act (DTSA) is false? Multiple Choice Those whose trade secrets have been violated can seek redress under either the DTSA or the applicable state law. The DTSA was the first federal statute to recognize a cause of action for misappropriation of trade secrets .The DTSA defines trade secrets and the elements of a misappropriation claim. The DTSA preempts state trade secrets law.
The DTSA preempts state trade secrets law.
Which of the following controls whether the partnership or an individual owns the property? Multiple Choice Invoices, sales orders, sales receipts, and any other evidence documenting the property's purchase Whether the property is commonly used for the type of business The intent of the partners The function of the property
The intent of the partners
Assume Apollo markets its diamonds exclusively to jewelry stores. Which of the following marks, if later used by another company, is most likely to be considered an infringement of Apollo's rights in the trademark APOLLO for diamonds sold in jewelry stores? Multiple Choice The mark APOLLÓ used for emeralds sold in jewelry stores The mark POLLO for gold necklaces sold in jewelry stores The mark APOLLO used for motor oil sold in auto parts stores The mark PALACE used for diamonds sold door-to-door The mark APPALL used for watches sold in department stores
The mark APOLLÓ used for emeralds sold in jewelry stores
Assume Apollo markets its diamonds exclusively in jewelry stores. Which of the following marks, if later used by another company, is least likely to be considered an infringement of rights in the trademark APOLLO for diamonds sold in jewelry stores? Multiple Choice The mark POLLO for gold necklaces sold in jewelry stores The mark APOLLÓ used for emeralds sold in jewelry stores The mark APPALL used for motor oil sold in auto parts stores The mark OPAL used for diamonds sold in jewelry stores The mark APOLLO used for watches sold in department stores
The mark APPALL used for motor oil sold in auto parts stores
What was the court's ANALYSIS (legal reasoning) in the Coleman v Retina Consultants PC case? (Choose TWO correct answers) The non-compete clause at issue is valid because it contains a reasonable limitation regarding duration. The non-compete clause at issue is unenforceable as a matter of law because it has no geographical limitation. The non-compete clause at issue is invalid where it contains no limitation regarding duration. The non-compete clause at issue is enforceable as a matter of law because it has a reasonable geographical limitation.
The non-compete clause at issue is unenforceable as a matter of law because it has no geographical limitation. The non-compete clause at issue is invalid where it contains no limitation regarding duration.
What requirement for obtaining a U.S. patent requires that the invention must work and must be capable of having some useful application or serving some useful purpose? Multiple Choice Disclosure Novelty Non-Obviousness Drawing Utility
Utility
When is proof of joint action required for violation of Section 1 of Sherman Act? Multiple Choice Charges of monopolization do not require any proof of joint action When more than one firm is charged with a conspiracy to monopolize When a firm possesses not only monopoly power but also intent to monopolize When a firm enters into an exclusive dealing agreement with a supplier
When more than one firm is charged with a conspiracy to monopolize
A(n) __________ agent is continuously employed to conduct a series of transactions. Multiple Choice apparent special general fiduciary
general
An agent can bind his principal on a contract or other matter only when the agent has the __________ to do so. Multiple Choice remunerative capacity authority specific intent general intent
authority
Suppose Deb and Creed agree that Creed will buy the house, Deb will move in and make a series of monthly payments to buy the house, and Creed will give Deb title to the house when Deb makes the last monthly payment. If so, the money Deb borrowed from Creed to purchase her house is secured by a _____. Multiple Choice materialman's lien mortgage land contract deed of trust mechanic's lien
land contract
In agency law, an "independent contractor" is also known as a(n) __________. Multiple Choice member employee third party beneficiary nonemployee agent
nonemployee agent
Another term for an independent contractor is a __________ Multiple Choice special agent. general agent. subagent. nonemployee agent.
nonemployee agent.
Upholstery Inc. has a _____ in Deb's now-cleaned furniture stored in its warehouse. Multiple Choice right of subrogation deed of trust materialman's lien possessory lien mortgage
possessory lien
Risk of loss for international transactions is addressed by the Uniform Commercial Code and: Multiple Choice the World Trade Organization. the common law. the Convention on Contracts for International Sale of Goods. free trade agreements.
the Convention on Contracts for International Sale of Goods.
A principal need not compensate her agent if __________. Multiple Choice there is no market price for the agent's services there was no agreement regarding the amount of compensation the agent was to receive the agent is a special agent the agent has committed a serious breach of his fiduciary duty
the agent has committed a serious breach of his fiduciary duty
A principal's power to ratify is cut off when __________ Multiple Choice it is equitable to bind the third party. the third party withdraws from the contract. the agent dies or loses capacity after signing the contract. the principal remains silent about the matter.
the third party withdraws from the contract.
When a third party knows or has reason to know that the agent is acting for a principal but lacks knowledge or reason to know the principal's identity, the principal is __________ Multiple Choice undisclosed. unidentified. nonexistent. disclosed.
unidentified.
Which of the following regulates child labor? Multiple Choice Wagner Act Family and Medical Leave Act Age Discrimination in Employment Act Employee Retirement Income Security Act Fair Labor Standards Act
Fair Labor Standards Act
Implied authority is actual authority that the principal has specified in very specific or detailed language. Group startsTrue or False
False
Which of the following is not likely to be considered a trade secret? Multiple Choice Computer software Famous cookbook recipes Detailed customer lists Chemical formulas
Famous cookbook recipes
Assume that Apollo began selling a diamond using the made-up word "Zizazozu" because it wanted its product to have a completely original name. If so, "Zizazozu" for the diamond would mostly likely fall into which category of distinctiveness for trademarks? Multiple Choice Fanciful Arbitrary Generic Descriptive Subjective
Fanciful
Which of the following describes the type of relationship that exists between an agent and a principal? Multiple Choice Fiduciary Laissez-faire Independent contractor Equitable
Fiduciary
For a business to be covered under the Family and Medical Leave Act (FMLA), how many employees must the business employ? Multiple Choice Fifty (50) or more Five (5) or more Two (2) or more Seventy-five (75) or more
Fifty (50) or more
Which security instrument requires a creditor to file a separate lawsuit solely for the purpose of recovering a deficiency from a defaulting debtor? Multiple Choice All of these security instruments require a creditor to file a separate lawsuit solely to recover a deficiency "Strict foreclosure" of a mortgage Land contract Foreclosure of a mortgage by "power of sale" Foreclosure of a mortgage by "action and sale"
Foreclosure of a mortgage by "power of sale"
Which constitutional amendment requires public employers to be careful when implementing drug testing programs to ensure that they do so only when there is a reasonable basis for suspecting that an employee is using drugs or alcohol, or that they only test employees whose drug or alcohol use would threaten the public interest of public safety? Multiple Choice First Seventh Second Fourth Fifth
Fourth
Which of the following does the Uniform Commercial Code define as "honesty in fact in the conduct or transaction concerned?" Multiple Choice Value Bona fide Pure Good faith
Good faith
Market shares in excess of ___ percent have historically justified an inference of monopoly power. Multiple Choice 90 80 70 65 51
70
According to the Sonny Bono Copyright Term Extension Act (CTEA), the protection period for pre-1978 works is: Multiple Choice 75 years. 65 years. 95 years. 50 years.
95 years.
In the famous Du Pont cellophane antitrust case, the United States Supreme Court ruled that even though Du Pont had a seventy-five (75) percent market share in cellophane, it did not have monopoly power in cellophane because __________. Multiple Choice an inference of monopoly power requires that the defendant hold a market share in excess of eighty (80) percent Du Pont had not acquired its market power through improper means cellophane is not a significant product in interstate commerce other functionally equivalent products were available in the market
???
Which of the following is an example of an unsecured debt? Multiple Choice A bank makes a car loan to a person that includes the right to repossess the car if the person fails to make the payments. A musician gives his guitar to a pawn shop as collateral for a short-term loan. A landlord rents an apartment to a student whose mother co-signs the lease. A bar sells alcohol to a customer on credit (a "tab") that the customer promises to pay off at the end of each month.
A bar sells alcohol to a customer on credit (a "tab") that the customer promises to pay off at the end of each month.
Which of the following is most likely to be considered a sale of goods to which the UCC applies? Multiple Choice A barber uses foam during a hair cut. An optometrist gives a contact case to a patient. A department store sells a car battery. A lawyer gives a legal pad to a client.
A department store sells a car battery.
Which of the following types of items would not be covered by the Magnuson-Moss Act? Multiple Choice A factory lighting system costing $1,500. A lawn tractor costing $1,000. Lotion costing $12. Detergent costing $15.
A factory lighting system costing $1,500.
Which of the following is correct regarding general agents and special agents? Multiple Choice General agents have the power to bind the principal by their actions, while special agents do not. Special agents are gratuitous agents; in other words, they are not paid by the principal, while general agents receive consideration for their services. A general agent is employed to conduct a series of transactions, while a special agent is employed to conduct a small, simple group of transactions. General agents can appoint subagents to carry out the principal's tasks, while special agents cannot.
A general agent is employed to conduct a series of transactions, while a special agent is employed to conduct a small, simple group of transactions.
In which scenario is a company least likely to be able to assert ownership of intellectual property? Multiple Choice The company contracts with a songwriter to write a "jingle" for the company's advertising campaign. A janitor for the company invents a new type of floor polish while experimenting with his own materials in his basement at home. Marketing specialists for the company collect confidential information about the purchasing preferences of the company's customers. A scientist in the company's research and development department invents a new product. The company contracts with stores to sell the company's products using the company's brand name.
A janitor for the company invents a new type of floor polish while experimenting with his own materials in his basement at home.
Which of the following entities does Title VII of the Civil Rights Act of 1964 cover? Multiple Choice A labor union with twenty (20) members A private college with twelve (12) employees An individual who employs five (5) peopleA corporation employing ten (10) people
A labor union with twenty (20) members
Actual authority is created by: Multiple Choice Actions. Direct oral communication. All of these. Written words.
All of these.
In which scenario is a company least likely to be able to assert ownership of intellectual property? Multiple Choice A movie star is wearing one of their products in a movie. A scientist working in the company's research and development department invents a new type of product. A graphic designer employed by the company prepares a model of the company's new product packaging. A salesperson develops a confidential list of contact and marketing information for the company's clients. The company contracts with a web designer to develop an online payment system for the company's website.
A movie star is wearing one of their products in a movie.
Which of the following is incorrect regarding the public policy exception to the employment-at-will rule? Multiple Choice A plaintiff bringing a wrongful termination suit in contravention of public policy must show that the state has a clear and substantial public policy related to the plaintiff's conduct. It has been recognized by over four-fifths of the states. It is the most common basis for a wrongful discharge suit. A plaintiff that satisfies all the required elements will prevail in court, regardless of whether the employer was justified in terminating the plaintiff based on legitimate business reasons.
A plaintiff that satisfies all the required elements will prevail in court, regardless of whether the employer was justified in terminating the plaintiff based on legitimate business reasons.
Which of the following statements regarding when a person with voidable title sells a good to a good-faith purchase is false? Multiple Choice A seller who has a voidable title cannot pass good title to a good-faith purchaser. The rightful owners of goods have the opportunity to protect themselves. Good-faith purchasers can do nothing to avoid injury. The rightful owners of goods bear the burden of collecting from fraudulent buyers.
A seller who has a voidable title cannot pass good title to a good-faith purchaser.
Which of the following is true of a deed of trust? Multiple Choice The debtor buys and takes title to property on credit, and makes periodic payments on the debt to the creditor. A trustee holds title to the property until the debtor pays off the creditor, and can sell the property if the debtor defaults. The debtor makes periodic payments of the purchase price to the creditor, and the creditor does not convey title to the debtor until the full purchase price is paid. Any person who provides services to improve the property obtains a deed of trust on the property. Any person who supplies materials to improve the property obtains a deed of trust on the property.
A trustee holds title to the property until the debtor pays off the creditor, and can sell the property if the debtor defaults
Which of the following is most likely considered to be a good under the UCC? Multiple Choice Tires for a car that is being dropped off at an auto center for routine maintenance. Battery that your mechanic puts in while you were there for an oil change. A used computer worth $200. Hair cut.
A used computer worth $200.
Which of the following relieves an employee of the trouble of separately filing charges under Title VII of the Civil Rights Act of 1964 with the Equal Employment Opportunity Commission (EEOC) and with a state agency? Multiple Choice A work-sharing agreement between the EEOC and the state agency A "right-to-mediation" letter issued by the EEOC A "right-to-sue" letter issued by the EEOC A "right-to-arbitration" letter issued by the EEOC
A work-sharing agreement between the EEOC and the state agency
In which scenario is a company least likely to be able to assert ownership of intellectual property? Multiple Choice A web designer creates a new method for ordering products online as part of a website that the company paid the designer to develop. A company's advertising department creates a series of magazine advertisements for its products. A sales executive for the company develops a confidential strategy for marketing its products to customers. A worker is wearing a trademarked product in a picture on her social media website The company contracts to buy another business, including the goodwill associated with the business and the right to use the business's name.
A worker is wearing a trademarked product in a picture on her social media website
Generally, an agency relationship is terminated by operation of law in all of the following situations except for (the): Principal's incapacity. Agent's renunciation of the agency. Agent's death. Changes in the value of the agency property or subject matter. Principal's death.
Agent's renunciation of the agency.
Which of the following is least likely to be considered a sale of goods to which the UCC applies? Multiple Choice A lawyer orders legal pads from OfficePro. An optometrist gives a contact case to a patient. A customer buys a prescription drug at Pharma Mart. A customer buys a backpack at Sporting Goods 'R Us, a sports department store. A customer buys a battery at Home Hardware.
An optometrist gives a contact case to a patient.
Which of the following is an injunctive power used by the courts to remedy civil antitrust violations in extreme cases? Multiple Choice An order requiring the convicted defendant to divest itself of the stock or assets of acquired companies An order requiring the convicted defendant to cancel existing contracts An order requiring the convicted defendant to divorce itself from a function level of its operations An order in the form of a dissolution degree that requires the defendant to liquidate its assets and cease business operations
An order in the form of a dissolution degree that requires the defendant to liquidate its assets and cease business operations
After an agency relationship is terminated, which of the following types of authority generally still in exists? Multiple Choice Implied. Apparent. Actual. Express. All types of authority.
Apparent.
__________ of the Uniform Commercial Code deals exclusively with leases of goods. Multiple Choice Article 2A Article 9A Article 3A Article 5A
Article 2A
Which of the following is a similarity between Title VII of the Civil Rights Act of 1964 (Title VII) and Section 1981 of the United States Code (Section 1981)? Multiple Choice Both Title VII and Section 1981 apply to sex discrimination. Both Title VII and Section 1981 apply to racial discrimination. Both Title VII and Section 1981 impose limits on covered employees. Both Title VII and Section 1981 impose limits on compensatory damages.
Both Title VII and Section 1981 apply to racial discrimination
Which of the following is true of contracts made by subagents? Multiple Choice The principal is not bound to a subagent's contract in any case. The subagent contracting within the principal's authority does not bind the agent. Both the principal and the agent probably can ratify the contracts of subagents. Only the principal is bound by the contracts made the subagent.
Both the principal and the agent probably can ratify the contracts of subagents.
Which of the following is true of contracts made by subagents? Multiple Choice The subagent contracting within the principal's authority does not bind the agent. The principal is not bound to a subagent's contract in any case. Both the principal and the agent probably can ratify the contracts of subagents. Only the principal is bound by the contracts made the subagent.
Both the principal and the agent probably can ratify the contracts of subagents.
Which of the following are the two (2) general ways in which an agency can terminate? Multiple Choice By inaction of the parties; by invocation of equity By act of the parties; by invocation of equity By inaction of the parties; by alternative dispute resolution By act of the parties; by operation of law
By act of the parties; by operation of law
Which of the following terms in a contract for the sale of goods requires the seller to insure the goods? Multiple Choice FOB CIF C & FFAS
CIF
ineteenth century product liability law is best characterized by which of the following phrases: Multiple Choice No liability without fault. Negligence for all. Caveat venditor. Caveat emptor
Caveat emptor
Assume that Apollo began selling a diamond under the name "Sparkle" because it wants to convey to consumers that the diamond sparkles in the sunlight. If so, "Sparkle" for the diamond would mostly likely fall into which category of distinctiveness for trademarks? Multiple Choice Fanciful Arbitrary Generic Descriptive Suggestive
Descriptive
Under the __________, Congress addressed selected copyright issues as to which special rules seemed appropriate, in view of recent years' technological advances and explosion in Internet usage. Multiple Choice Digital Millennium Trademark Act Technological Millennium Copyright Act Digital Copyright Act Digital Millennium Copyright Act
Digital Millennium Copyright Act
Suppose consumers don't confuse Nike's shirts and the students' shirts, but they do think of Nike's famous slogan "Just Do It" when they see the students' slogan "Just Done It" and, as a result, Nike's slogan becomes less distinctive and unique. If so, what type of legal claim should Nike assert against the students? Multiple Choice Trademark infringement Misappropriation of trade secrets Dilution by tarnishment Dilution by blurring Copyright infringement
Dilution by blurring
Suppose consumers are likely to associate the "Just Done It" slogan with Nike's "Just Do It" slogan and, as a result of the low quality of the students' shirts, are likely to think less of Nike's shirts. If so, what type of legal claim should Nike assert against the students? Multiple Choice Dilution by tarnishment Dilution by blurring Trademark infringement Copyright infringement Misappropriation of trade secrets
Dilution by tarnishment
Cleanify Corp., a corporate housekeeping and janitorial services company, requires all applicants to take a rather challenging English language vocabulary test. Any applicant who fails the vocabulary test—whether or not English is that applicant's native language—is not considered for employment at Cleanify. Cleanify has 200 employees. Housekeeping is an industry affecting interstate commerce. Cleanify is located in New Hanoi, a small Midwestern town where 50% of the population consists of recent Vietnamese immigrants. While roughly half of Cleanify's applicants are Vietnamese immigrants or of Vietnamese ancestry, only about 10% of its workforce is Vietnamese. Cleanify's managers and owners actually have had uniformly positive experiences with their employees who are from the local Vietnamese community and would be happy to hire more of them but for the difficulty a majority of the Vietnamese applicants seem to have with the English language vocabulary test. Hao is a Vietnamese immigrant who fails the English test. He wants to sue Cleanify for national origin discrimination under Title VII of the Civil Rights Act of 1964. What theory would Hao most likely use to support his Title VII claim on these facts? Multiple Choice Disparate treatment Direct evidence Disparate impact Bona fide occupational qualification McDonnell Douglas burden shifting analysis
Disparate impact
Ima Restauranteur owns Burrito Bodega, a fast food Mexican restaurant. Ima has a rule—due to the physical layout of the restaurant, including the relatively low level of the stove and of the countertops and prep areas on which the cooking occurs—that she only hires cooks who are shorter than six feet tall (to avoid requiring the cooks to spend too much time being bent over). Ima is willing to hire anyone who is shorter than six feet tall and who is otherwise qualified for the job. Burr Nowt, an applicant for a cook position at Burrito Bodega, is six feet and two inches tall, so he does not get the job. Burr believes he is a victim of sex discrimination as prohibited by Title VII of the Civil Rights Act of 1964 (assume that Burrito Bodega is a covered entity under Title VII). What theory would Burr most likely use to support his Title VII claim on these facts? Multiple Choice Direct evidence Bona fide occupational qualification McDonnell Douglas burden shifting analysis Disparate impact
Disparate impact
Petite Enterprises has a maximum weight requirement for all of its employees. No one can be hired if he or she is over 135 pounds; however, anyone who is 135 pounds or less is considered for hiring regardless of that person's race, color, sex, national origin, religion, age, or disability status. Nevertheless, the weight limit results in far fewer male applicants being hired than female applicants. In fact, while males and females apply to Petite Enterprises in roughly equal numbers, Petite Enterprises employs three times as many females as males. Ernie applies to Petite Enterprises, but is not hired because he weighs 170 pounds. If Ernie sues Petite Enterprises for sex discrimination under Title VII, what mode of proof best suits Ernie's case? Multiple Choice Disparate impact McDonnell Douglas burden shifting analysis Disparate treatment Bona fide occupational qualification
Disparate impact
The Ocala Police Department (OPD) has fifty-five (55) police officers and thirty (30) support personnel. The OPD has just adopted new hiring standards for new officers. These include a minimum height of 5'8" and a minimum weight of 160 pounds. Susan is a recent graduate with a bachelor's degree in police science. She wants to get a job as a police officer in Ocala; however, Susan is only 5'5" and weighs 130 pounds. If Susan brings a legal challenge to OPD's new hiring standards, what legal basis does she have for the lawsuit? Multiple Choice Disparate impact Irrational standards Irrational policy Disparate treatment
Disparate impact
Andrea works for a parking garage, taking tickets and collecting money. Andrea forgot to keep track of the number of people who paid for parking and the number who had tickets but left without paying. Andrea likely violated: Multiple Choice Duty to compensate. Duty to account. Duty to please. Duty to indemnify. Duty to reimburse.
Duty to account.
Suppose that an NBA franchise owner orders that a player take a fall during a game. The player refuses, and the franchise owner brings suit. What type of fiduciary duty is in play, and how will the case likely turn out? Multiple Choice Duty to obey reasonable instructions; for the owner. Duty of loyalty; for the player. Duty of loyalty; for the owner. Duty to obey reasonable instructions; for the player.
Duty to obey reasonable instructions; for the player.
John is working hard for his employer, Big Corp. He goes on a sales trip for Big, and while on the trip purchases food and lodging, which was impliedly authorized by Big. Which of the following identifies Big's fiduciary duty to pay John? Multiple Choice Duty of loyalty. Duty to compensate. Duty to reimburse. Duty to indemnify. Duty to account.
Duty to reimburse.
John gets a call that the car has arrived at the Electric dealership, but when he arrives to pick it up he finds out that the car takes two hours to charge fully, and upon closer examination finds that the motor does not conform with the schematics that he was shown. Assume that the car still merchantable. Under this scenario: Multiple Choice Electric has not breached their express warranty. Electric has breached their implied warranty of merchantability. Electric has breached their express warranty. John must still purchase the vehicle. Electric was negligent.
Electric has breached their express warranty.
Suppose that the salesman told John that, even if he wasn't happy with the car, "You'd probably be able to resell it at any point for more than the purchase price of $19,900." John attempts to resell the car, but cannot get more than $18,000. Under this scenario: Multiple Choice Electric did make an express warranty that was breached. Electric likely did not make an express warranty about resell value because this is a statement of value. Electric likely did not make an express warranty about resell value because this is merely puffery. Electric did not make an implied warranty of merchantability. Electric did make an implied warranty of merchantability that was breached.
Electric likely did not make an express warranty about resell value because this is a statement of value.
Jackson is a pension fund manager for several large corporation's pension funds. Which of the following imposes certain fiduciary duties on Jackson regarding the pensions funds? Multiple Choice Employee Retirement Income Security Act Age Discrimination in Employment Act Family and Medical Leave Act Fair Labor Standards Act Wagner Act
Employee Retirement Income Security Act
Which of the following is incorrect regarding nineteenth-century law and employee injuries? Multiple Choice Employees rarely had problems prevailing in a negligence case against their employer. The fellow-servant rule excused an employer from liability when an employee's injury resulted from the negligence of a co-employee. Employers had an implied assumption of risk defense under which an employee assumed all the normal and customary risks of his employment simply by taking the job. A slight degree of contributory negligence on part of the employee would provide the employer with a complete defense.
Employees rarely had problems prevailing in a negligence case against their employer.
Which of the following is one (1) of the four (4) material elements required for meeting the substantially-equal-work condition for application of the Equal Pay Act? Multiple Choice Equal remuneration Equal bonus structure Equal responsibility Equal training opportunities
Equal responsibility
Which of the following theories might allow a third party to recover when the third party has justifiably changed their position in reliance on an agent's assertions, but the agent lacks actual or apparent authority? Multiple Choice Rescission Implied Respondeat superior Estoppel
Estoppel
Suppose that European Airlines is contracting with Wright Bros. Airplanes to test a new type of airplane that Wright has developed, the 797 Starliner. The 797 is delivered to European Airlines, which decides to return the aircraft but never informs Wright of this decision. Under this scenario: Multiple Choice American Airlines could keep the 797 under the Sale or Return doctrine. European Airlines has breached its contract with Wright. European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine. European Airlines would likely not be deemed to have accepted the 797 under the sale on approval doctrine. European Airlines would likely have to return the 797 to Wright.
European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine.
Suppose that European Airlines is contracting with Wright Bros. to test a new type of airplane that Wright has developed, the 797 Starliner. The 797 is delivered to European Airlines, which decides to return the aircraft but never informs Wright of this decision and instead uses it in regularly scheduled flights. Under this scenario: Multiple Choice European Airlines would likely have to return the 797 to Wright. European Airlines would likely not be deemed to have accepted the 797 under the sale on approval doctrine. European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine. European Airlines could keep the 797 under the Sale or Return doctrine. European Airlines has breached its contract with Wright.
European Airlines would likely be deemed to have accepted the 797 under the sale on approval doctrine.
Which of the following situations is most likely to trigger liability for a vertical boycott under Section 1 of the Sherman Act? Multiple Choice Evidence indicates that a manufacturer and its nonterminated dealers were engaged in an unlawful vertical price-fixing conspiracy Evidence indicates that a manufacturer has terminated a discounting distributor after receiving complaints from its other distributors Evidence indicates that a conspiracy existed between a manufacturer and its nonterminated dealers to terminate a price-cutter Evidence indicates that a manufacturer unilaterally refused to deal with a price-cutter who failed to follow the manufacturer's suggested resale prices
Evidence indicates that a manufacturer and its nonterminated dealers were engaged in an unlawful vertical price-fixing conspiracy
The two types of actual authority are Multiple Choice Implied and direct. Express and implied. Implied and apparent. Express and explicit. Express and apparent.
Express and implied.
Susan is hired to manage a business that manufactures basketballs. This means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. After not doing so for two months, Susan's boss directly told her to purchase these supplies. The boss's statement is called: Multiple Choice Express authority. Implied authority. Indirect authority. Direct authority. Apparent authority.
Express authority.
The ______________________ regulates wages and hours of certain covered employees by specifying a minimum wage and setting the 40-hour work week. Multiple Choice Family and Medical Leave Act Fair Labor Standards Act Age Discrimination in Employment Act Employee Retirement Income Security Act Wagner Act
Fair Labor Standards Act
Throgmartin works as a clerical employee at Cheapskate Industries. He is paid only $1.50/hour. Which of the following federal laws provides him with a remedy for being paid less than a mandatory nationwide minimum wage? Multiple Choice Wagner Act Family and Medical Leave Act Fair Labor Standards Act Age Discrimination in Employment Act
Fair Labor Standards Act
Suppose that while John was initially speaking with the salesman about the car, the salesman made a number of claims about how revolutionary the Model X will be. For example, he told John not only about the mileage per charge, but that it would go from 0 to 60mph in 3.7 seconds. When John went home to think about the purchase, the salesman gave him some technical literature, which stated that it takes 4.5 seconds for the Model X to go from 0 to 60mph. If John buys the car, and finds that the car does in fact take 4.5 seconds to go from 0 to 60mph, then: Multiple Choice He will likely not be able to sue because there was a conflict of express warranties. He will likely be able to sue because there was a conflict of express warranties. He will be able to sue for breach of an express warranty because descriptive language defeats technical specifications. He will not be able to sue for breach of an express warranty because technical specifications defeats descriptive language. More information is needed to make a final determination.
He will not be able to sue for breach of an express warranty because technical specifications defeats descriptive language.
If Deb's debt is a mortgage and Creed pursues strict foreclosure when Deb defaults on it, which of the following is true? Multiple Choice If Deb owes $75,000 and the house is worth $50,000, Creed is entitled to recover the $25,000 difference, without the necessity of filing a lawsuit. If Deb owes $75,000 and the house is worth $100,000, Deb must file a lawsuit to recover the $25,000 difference. If Deb owes $75,000 and the house is worth $100,000, Deb does not have a right to recover the $25,000 difference. If Deb owes $75,000 and the house is worth $100,000, Deb is entitled to recover the $25,000 difference, without the necessity of filing a lawsuit. If Deb owes $75,000 and the house is worth $50,000, Creed must file a lawsuit to recover the $25,000 difference.
If Deb owes $75,000 and the house is worth $100,000, Deb does not have a right to recover the $25,000 difference.
Ojay Corporation, A-C, Incorporated, and Kato Company are competitors in the production and sale of knives. A year ago, the three firms agreed to share pricing information with each other on a periodic basis. As a result of this agreed sharing of information, the three companies regularly charge the same prices, including a minimum price that none of the three goes below and a maximum price that none of the three goes above. A fourth producer of knives, Bronco Company, is the plaintiff in a Sherman Act Section 1 lawsuit against Ojay, A-C, and Kato. Bronco claims that the foregoing facts constituted price-fixing and that Bronco suffered direct antitrust injury as a result. Assuming that Bronco is a proper plaintiff, which of the following is an accurate analysis under current antitrust law? Multiple Choice If the court believes that the evidence demonstrates an agreement to fix prices, it will hold the defendants liable under Section 1 of the Sherman Act regardless of the business justifications for their agreement Even if the defendants were involved only in conscious parallelism concerning pricing policies, they will be held liable under Section 1 of the Sherman Act because their behavior caused harm to the plaintiff. The defendants cannot be held liable under Section 1 of the Sherman Act, since the facts indicate that they agreed to share pricing information without agreeing to fix prices or making any agreement to that effect. The defendants should succeed with an argument that they are not liable for any fixing of maximum prices, because any such price-fixing would have finally benefited consumers.
If the court believes that the evidence demonstrates an agreement to fix prices, it will hold the defendants liable under Section 1 of the Sherman Act regardless of the business justifications for their agreement
Bill has a mortgage on a rental property and he defaulted on his payments. Which of the following statements is correct if the bank were to pursue foreclosure by power of sale on Bill's mortgage? Multiple Choice If the property is sold for more than Bill owes, Bill has no right to recover the surplus. If the property is sold for more than Bill owes, Bill must file a lawsuit to recover the surplus. If the property is sold for less than Bill owes, the bank has no right to recover the deficiency. If the property is sold for less than Bill owes, the bank must file a lawsuit to recover the deficiency.
If the property is sold for less than Bill owes, the bank must file a lawsuit to recover the deficiency.
Suppose Capital Bank pursues strict foreclosure of Bill's mortgage on a rental property. Which of the following is true? Multiple Choice If the property is worth less than Bill owes, the bank can file a lawsuit to recover the deficiency. If the property is worth more than Bill owes, Bill has a right to recover the surplus. If the property is worth less than Bill owes, the court will enter a deficiency judgment for the bank. If the property is worth less than Bill owes, the bank has no right to recover the deficiency.
If the property is worth less than Bill owes, the bank has no right to recover the deficiency.
Susan is hired to manage a business that manufactures basketballs. This means that she has the authority to make contracts that are reasonably necessary for conducting the business, such as purchasing supplies. This type of authority is called: Multiple Choice Implied authority. Indirect authority. Express authority. Apparent authority.
Implied authority.
If Deb's debt is a mortgage and Creed pursues foreclosure and sale of the property when Deb defaults on the mortgage, which of the following is true? Multiple Choice In all states, Deb will not have a right to redeem the property after default after the property is sold at a foreclosure sale. In all states, Deb will have a right to redeem the property even after the property is sold at a foreclosure sale. In some states, Deb will not have a right to redeem the property after she defaults on the mortgage. In all states, Deb will have a right to redeem the property after default during a period that, depending on the state, may run before or after the foreclosure and sale of the property. In all states, Deb will have a right to redeem the property after default, but not after the property is sold at a foreclosure sale.
In all states, Deb will have a right to redeem the property after default during a period that, depending on the state, may run before or after the foreclosure and sale of the property.
Several chemical manufacturers are selling a harmful fertilizer. It's impossible to prove which firm produced the fertilizer. Which type of liability arises under these circumstances? Multiple Choice Avoidably protected. Industrywide liability. Breach of express warranty. Breach of implied warranty. Unavoidably protected.
Industrywide liability.
Apollo is least likely to obtain copyright protection when using the Internet to market its diamonds for which of these? Multiple Choice The artwork on an Internet website The prices listed for products on an Internet website The layout of an Internet website The photographs on an Internet website The computer code for an Internet website
The prices listed for products on an Internet website
Which of the following is correct regarding apparent authority? Multiple Choice It requires that the agent receive consideration from the principal, i.e., the agent is not a gratuitous agent. It arises when the principal leads a third party to believe that an agent is authorized. It requires express authorization, in words or writing, from the principal. It arises when an agent falsely claims to be acting under the authority of a principal.
It arises when the principal leads a third party to believe that an agent is authorized.
Which of the following is NOT part of the test to determine whether an employee is acting within the scope of employment? Multiple Choice It was motivated at least in part by the purpose of serving the employer. It was of the kind that the employee was employed to perform. It occurred substantially within the authorized time period. It involved a third party with knowledge of the agency.
It involved a third party with knowledge of the agency.
Suppose that, in the Wal-Mart case mentioned by the students, the people used Wal-Mart's copyrighted materials as part of a parody intended as a criticism of Wal-Mart's labor practices. If so, what would be the people's best defense if Wal-Mart sued them for copyright infringement? Multiple Choice There is no likelihood of confusion The mark and logo are publicly displayed There is no substantial similarity It is a fair use They made no false statement
It is a fair use
Suppose that Local, a small town bookseller, contacts Kangaroo Press, a publisher, requesting Kangaroo to send 1,000 copies of the new thriller, "White Out," to three of its stores in Indianapolis, Indiana with the understanding that unsold copies could be returned to the publisher. The books arrive, but severe thunderstorms are forecast and Local decides to shut down and ship its books back to avoid liability. Local requests that Kangaroo pay the price of the return. It refuses. Under this scenario, which company is correct, and under what doctrine? Multiple Choice Local; Sale or Return. Local; Sale on Approval. Kangaroo; Sale or Return. Kangaroo; Sale on Approval. Neither company, since no one can predict thunderstorms.
Kangaroo; Sale or Return.
John is a construction contractor. Based on Kevin's advanced skill and training as a plumber, John hires Kevin to install plumbing in ten houses that he is building. Jon does not pay payroll taxes or provide employee benefits to Kevin. Kevin provides his own tools and equipment to complete the job. Which of the following is a court most likely to find? Multiple Choice Kevin is an employee of John. John is Kevin's employee. Kevin is John's principal. John's customers are subagents of Kevin. Kevin is an independent contractor of John.
Kevin is an independent contractor of John.
Wei was an employee at private company, LMNOP, Inc. He was terminated from his job because he refused to submit to a polygraph test. LMNOP was losing inventory due to theft (often referred to as "shrinkage") and began a polygraph program in which employees working in the relevant sections were all tested. When Wei said the test was stupid and refused to take it, he was terminated. Which of the following is true? Multiple Choice If Wei is not responsible for the thefts, then LMNOP has violated his public policy rights. Only government employers are prohibited from using polygraph tests, so LMNOP is fine. LMNOP can never use a polygraph test in a situation like this. LMNOP may use the polygraph test in this situation only if it meets an exception for theft investigations in the Employee Polygraph Protection Act.
LMNOP may use the polygraph test in this situation only if it meets an exception for theft investigations in the Employee Polygraph Protection Act.
Which of the following types of items would be covered by the Magnuson-Moss Act? Multiple Choice Liquid soap costing $12.99. An injection molding machine for a jet-ski factory costing $300,000. Lotion costing $5.99 A new assembly line for a cell phone factory costing $800,000. Kitchen plates costing $9.99.
Liquid soap costing $12.99.
Suppose that Local, a small town bookseller, contacts Kangaroo Press, a publisher, requesting Kangaroo to send 1,000 copies of the new thriller, "White Out," to three of its stores in Indianapolis, Indiana with the understanding that unsold copies could be returned to the publisher. The books arrive, but a freak tornado destroys the bookstores. Under this scenario, which company bore the risk of loss, and under what doctrine? Multiple Choice Kangaroo; Sale on Approval. Neither company, since this was an intervening act of God. Local; Sale or Return. Kangaroo; Sale or Return.
Local; Sale or Return.
Suppose that Local, a small town bookseller, contacts Kangaroo Press, a publisher, requesting Kangaroo to send 1,000 copies of the new thriller, "White Out," to three of its stores in Indianapolis, Indiana with the understanding that unsold copies could be returned to the publisher. The books arrive, but severe thunderstorms are forecast and Local decides to shut down and ship its books back to avoid liability. Local request that Kangaroo pay the price of return. Finally, Local pays, but the books are destroyed in transit. Under this scenario, which company is liable, and under what doctrine? Multiple Choice Local; Sale on Approval. Neither company, since this was an intervening act of God. Kangaroo; Sale or Return. Local; Sale or Return. Kangaroo; Sale on Approval.
Local; Sale or Return.
Which of the following statements about the Anticybersquatting Consumer Protection Act (ACPA) is true? Multiple Choice The World Intellectual Property Organization is a leading provider of litigators for actions under the ACPA. The ACPA authorizes a criminal action in favor of the trademark owner. Under the ACPA, the trademark owner's only remedy is to recover his/her actual damages. Many cases in which a trademark owner complains about another party's registration of a domain name have been submitted to arbitration, rather than to a court, in recent years
Many cases in which a trademark owner complains about another party's registration of a domain name have been submitted to arbitration, rather than to a court, in recent years
Suppose the students disclose their secret business strategy to Nike, but only after Nike signs a noncompetition agreement. If Nike then uses the students' idea without their permission, what legal claim should the students assert against Nike? Multiple Choice Misappropriation of trade secrets Interference with contractual relations False advertising Patent infringement Injurious falsehood
Misappropriation of trade secrets
Which of the following has no other purpose or effect except to restrain competition? Multiple Choice Ancillary horizontal restraints Ancillary vertical restraints Naked horizontal restraints Naked vertical restraints
Naked horizontal restraints
A manufacturer is developing a new type of baby carriage. It puts a warning label on the baby carriages, but does not include a warning to lock the wheels when the carriage is standing still. Several babies are injured because of the carriages rolling on very small inclines. The parents of these babies sue the manufacturer. Their best cause of action would be: Multiple Choice Negligent manufacture. Negligent failure to warn. Strict liability. Negligent design. Negligent inspection.
Negligent failure to warn.
Constructor Co., a commercial construction company, must comply with which of the following to provide its employees with a workplace and jobs free from recognized hazards that may cause death or serious physical harm? Multiple Choice Occupational Safety and Health Act Family and Medical Leave Act Safe Workplace and Employee Protection Act Workers' compensation Norris-LaGuardia Act of 1932
Occupational Safety and Health Act
Which type of claims involve false representations that are likely to induce third parties to believe that the defendant's goods or services are those of the plaintiff? Multiple Choice Passing-off claims False advertising claims Commercial appropriation of name Trade dress infringement claims
Passing-off claims
Maple Interiors, located in Boston, contracted to sell and ship sofas to Peach Furniture, located in Atlanta. The contract stated that the goods were to be shipped "F.O.B. Boston, via XYZ railroad." Maple delivered the sofas to XYZ railroad. They were shipped from Boston but never seen again. Both Peach and Maple assumed that the other party had the risk of loss, so neither had obtained insurance. Who must bear this loss? Multiple Choice Maple must bear the loss because in any sale by a merchant, risk does not pass until the actual delivery of the goods to the buyer. Peach must bear the loss because the risk passed to it after the sofas were delivered to XYZ railroad. Maple must bear the loss because the goods were never tendered to Peach. Peach must bear the loss because the risk passed to it after the sofas were placed on the loading dock at Maple's warehouse.
Peach must bear the loss because the risk passed to it after the sofas were delivered to XYZ railroad.
If Sammy the salesman is trying to sell a new tractor to Michael, and Sammy tells Michael "this tractor is a really good buy." This is an example of: Multiple Choice An implied warranty of merchantability. An express warranty. Negligent inspection. An implied warranty of fitness for a particular purpose. Puffery.
Puffery.
A local chemical company should be punished for polluting the town reservoir. What types of damages would be awarded by a jury specifically to punish the chemical company? Multiple Choice Equitable. Liquidated. Punitive. Compensatory.
Punitive.
__________ binds the principal as if the agent had possessed authority at the time of entering a contract. Multiple Choice Indemnification Ratification Notification Warranty
Ratification
__________ binds the principal as if the agent had possessed authority at the time of entering a contract. Multiple Choice Indemnification Ratification Warranty Notification
Ratification
Ralph is claiming that he has a disability under the Americans with Disabilities Act. Which of the following is not a major life activity that Ralph may claim is restricted by his disability? Multiple Choice Performing manual tasks Caring for oneself Thinking Running a marathon Breathing
Running a marathon
Which of the following is protected by copyright laws in computer programs? Multiple Choice Source code Structure Organization Presentation of information
Source code
Which of the following is not a remedy for misappropriation of a trade secret? Multiple Choice Injunctive relief Recovery based on the defendant's unjust enrichment Specific performance Recovery of the plaintiff's actual losses
Specific performance
Cleanify is located in New Hanoi, a small Midwestern town where 50% of the population consists of recent Vietnamese immigrants. While roughly half of Cleanify's applicants are Vietnamese immigrants or of Vietnamese ancestry, only about 10% of its workforce is Vietnamese. Cleanify's managers and owners actually have had uniformly positive experiences with their employees who are from the local Vietnamese community and would be happy to hire more of them but for the difficulty a majority of the Vietnamese applicants seem to have with the English language vocabulary test. Hao is a Vietnamese immigrant who fails the English test. He wants to sue Cleanify for national origin discrimination under Title VII of the Civil Rights Act of 1964. What would Cleanify have to prove to avoid liability if Hao sues for national origin discrimination under Title VII? Multiple Choice That there is no specific public policy of the state that prohibits an English language vocabulary test. That Cleanify Corp. cannot accommodate Hao without posing an undue hardship on its business. That Hao is not an authorized worker under the Immigration Reform and Control Act. That English language vocabulary test is job related and consistent with business necessity.
That English language vocabulary test is job related and consistent with business necessity.
Katie Kuric is the only shareholder, director, and officer of two corporations, Multimedia Corporation and Kuric Network Television Corporation (KNT). Multimedia produces television shows and movies. KNT broadcasts television programming on cable. KNT purchases much of its television programs and movies from Multimedia. KNT often pays Multimedia for the television shows and movies more than a year after payment is due, without being required to pay interest or a late payment penalty. What risk is Katie taking by allowing KNT to pay Multimedia late? Multiple Choice That KNT's veil will be pierced because KNT is evading an obligation to Multimedia None, because only Multimedia is harmed by this arrangement, and Katie owns both corporations That KNT's veil will be pierced because Multimedia's creditors are being defrauded None, because KNT and Multimedia are separate and distinct legal entities
That KNT's veil will be pierced because Multimedia's creditors are being defrauded
Agnes, a waitress at a restaurant, suffers severe anxiety attacks when business gets really busy at her job. She is a very ineffective waitress when the restaurant is crowded. For this reason, she is fired. Perhaps her employer could have assigned Agnes to shifts when the restaurant is not busy, but this would have irritated the other waitresses, caused significant scheduling difficulties, and appreciably increased expenses. If Agnes sues the restaurant for violation of the Americans with Disabilities Act (ADA), which of the following would be the restaurant's best argument? Multiple Choice That the ability to handle stress is a bona fide occupational qualification (BFOQ) for being a waitress That the ADA does not require employers to accommodate such disabilities That accommodating Agnes would cause the restaurant undue hardship That Agnes's anxiety attacks are not a disability under the ADA
That accommodating Agnes would cause the restaurant undue hardship
Ima Restauranteur owns Burrito Bodega, a fast food Mexican restaurant. Ima has a rule—due to the physical layout of the restaurant, including the relatively low level of the stove and of the countertops and prep areas on which the cooking occurs—that she only hires cooks who are shorter than six feet tall (to avoid requiring the cooks to spend too much time being bent over). Ima is willing to hire anyone who is shorter than six feet tall and who is otherwise qualified for the job. Burr Nowt, an applicant for a cook position at Burrito Bodega, is six feet and two inches tall, so he does not get the job. Burr believes he is a victim of sex discrimination as prohibited by Title VII of the Civil Rights Act of 1964 (assume that Burrito Bodega is a covered entity under Title VII). What would Burrito Bodega have to prove to avoid liability if Burr sues for sex discrimination under Title VII? Multiple Choice That Title VII only protects minorities and women from employment discrimination, not men. That Burrito Chime cannot accommodate without posing an undue hardship on its business. That Burr would not be doing substantially equal work as the women employed by Burrito Chime. That the maximum height requirement is job related and consistent with business necessity.
That the maximum height requirement is job related and consistent with business necessity.
Which of the following terminates an agency relationship through operation of law? Multiple Choice The principal dies and the agent is notified of the death There is mutual agreement between principal and agent to terminate the relationship The principal revokes the agency A specified result has been accomplished
The principal dies and the agent is notified of the death
Suppose that Acme is contracting with Office Paper to order printing paper. The contract omits a quantity term. But should a dispute arise, the _____ code supplies _____ to still create an enforceable contract. Multiple Choice common law; quantity fillers UCC; gap fillers common law; gap fillers UCC; title fillers
UCC; gap fillers
Petite Enterprises has a maximum weight requirement for all of its employees. No one can be hired if he or she is over 135 pounds; however, anyone who is 135 pounds or less is considered for hiring regardless of that person's race, color, sex, national origin, religion, age, or disability status. Nevertheless, the weight limit results in far fewer male applicants being hired than female applicants. In fact, while males and females apply to Petite Enterprises in roughly equal numbers, Petite Enterprises employs three times as many females as males. Ernie applies to Petite Enterprises, but is not hired because he weighs 170 pounds. What would Petite Enterprises have to prove to avoid liability if Ernie sues for sex discrimination under Title VII? Multiple Choice That Ernie would not be doing substantially equal work as the women employed by Petite Enterprises. That Title VII only protects minorities and women from employment discrimination, not men. That the maximum weight requirement is job related and consistent with business necessity. That Petite Enterprises cannot accommodate Ernie without posing an undue hardship on its business That there is no specific public policy of the state that prohibits a maximum weight requirement.
That the maximum weight requirement is job related and consistent with business necessity.
Which of the following applies federal antitrust laws to only behavior having some significant impact on interstate or foreign business? Multiple Choice The Clayton Act Federal Trade Commission Act The Commerce Clause of the United States Constitution The Sherman Act
The Commerce Clause of the United States Constitution
Which of the following is NOT true of a private employer's drug testing program? Multiple Choice Defense Department rules require certain government contractors to establish such programs. A poorly implemented program could create tort liability for invasion of privacy or infliction of emotional distress. The Fourth Amendment is not applicable. The Fourth Amendment limits such programs to when an employee's drug use is reasonably suspected. The U.S. Department of Transportation requires testing of some employees in safety-sensitive positions.
The Fourth Amendment limits such programs to when an employee's drug use is reasonably suspected.
The Employee Polygraph Protection Act is enforced by which of the following? Multiple Choice The Department of Homeland Security The individual states The Equal Employment Opportunity Commission (EEOC) The United States Department of Labor
The United States Department of Labor
Which of the following enforce(s) the Polygraph Protection Act? Multiple Choice State employment agencies The United States Department of Labor The National Labor Relations Board (NLRB)The American Federation of Labor (AFL) and the Congress of Industrial Organizations (CIO)
The United States Department of Labor
Which of the following is most important in determining who bears the risk of loss in a sale of goods contract? Multiple Choice The shipping terms Incorrect One who has title to the goods The agreement of the parties One who has possession of the goods
The agreement of the parties
Which of the following characterizes an output contract? Multiple Choice The buyer must accept any amount that is reasonably proportionate to any stated estimate in the contract. The buyer must accept whatever amount the seller produces, no matter how large. The buyer must accept a reasonable amount from the seller, but no more. The buyer must accept a conscionable amount from the seller, but no more.
The buyer must accept any amount that is reasonably proportionate to any stated estimate in the contract.
Which of the following was a characteristic of 19th century product liability law? Multiple Choice Goods tended not to be simple, so buyers could not easily inspect them. Strict liability was commonplace. Plaintiffs could easily recover from manufacturers of poorly designed products in most circumstances. The buyer should beware.
The buyer should beware.
Which of the following, if true, is most likely to prevent a company from asserting trade secret rights in a secret formula or manufacturing process? Multiple Choice The company uses most available measures to keep the information secret, but not extremely costly measures. The information was developed by a scientist employed by the company to develop the information using materials and/or equipment at the company's facility. A competitor obtains the information by hacking into the company's computers. As a result of the company's use of the information, the price of its products decreases. The company informs employees that the information is valuable, but does not take any measures to keep the information secret.
The company informs employees that the information is valuable, but does not take any measures to keep the information secret.
Which of the following is true of a mortgage? Multiple Choice The debtor buys and takes title to property on credit, and makes periodic payments on the debt to the creditor. Any person who provides services to improve the property obtains a mortgage on the property. A trustee holds title to the property until the debtor pays off the creditor, and can sell the property if the debtor defaults. The debtor makes periodic payments of the purchase price to the creditor, and the creditor does not convey title to the debtor until the full purchase price is paid.
The debtor buys and takes title to property on credit, and makes periodic payments on the debt to the creditor.
Sandra Love, a tennis pro, enters into a contract to sell her tennis racket. This sale is governed by: Multiple Choice UCC Article 2. UCC Article 5. Common law. It depends on the cost of the tractor.
UCC Article 2.
Which of the following is true of a land contract? Multiple Choice A trustee holds title to the property until the debtor pays off the creditor, and can sell the property if the debtor defaults. Any person who provides services to improve the property obtains a land contract on the property. The debtor buys and takes title to property on credit, and makes periodic payments on the debt to the creditor. Any person who supplies materials to improve the property obtains a land contract on the property. The debtor makes periodic payments of the purchase price to the creditor, and the creditor retains title to the property and does not convey it to the debtor until the full purchase price is paid.
The debtor makes periodic payments of the purchase price to the creditor, and the creditor retains title to the property and does not convey it to the debtor until the full purchase price is paid.
Samwise works as a diamond buyer for Frodo, owner of the jewelry store Rings, Etc. Without Frodo's knowledge or consent, Samwise has also been working as a diamond sales agent for Sauron Mines. On several occasions he has sold Sauron Mines's diamonds to Frodo for inflated prices and then pocketed the difference. Also, because of his position with Sauron Mines, Samwise has become aware that a supposedly impending strike by diamond workers in Sauron Mines, which has been driving up diamond prices, has been avoided. This information would be relevant to Frodo and material to decisions Frodo will be making about Rings, Etc. Samwise does not tell Frodo that the strike has been averted. Which of the following fiduciary duties to Frodo has Samwise not breached in this situation? Multiple Choice The duty not to disclose confidential information. The duty not to act as a dual agent. The duty to notify the principal. The duty of compensation. The duty to account.
The duty not to disclose confidential information.
Which of the following requires an agent to subordinate his personal concerns? Multiple Choice The duty of loyalty The duty of segregation The duty of confidentiality The duty of indemnity
The duty of loyalty
Which of the following is not an example of a duty owed in an agency relationship? Multiple Choice An agent's duty to notify the principal of material information. An agent's duty not to self-deal. The duty of principals to train agents to become principals. A principal's duty to indemnify their agent.
The duty of principals to train agents to become principals.
Which of the following is least likely to be covered for work leave under the Family and Medical Leave Act (FMLA)? Multiple Choice The employee has a child and needs to care for the child The employee has a serious health condition The employee adopts a child The employee needs to care for a grandparent with a serious health condition
The employee needs to care for a grandparent with a serious health condition
Bony Corporation (Bony), the leader in the digital video disc (DVD) recorder market, requires retailers and wholesalers that purchase Bony's $200 DVD recorders to also purchase $20 of blank Bony DVDs with each DVD recorder. Which of the following is correct in this scenario? Multiple Choice The competitive harm in this case would be to Bony's competitors in the sale of DVD recorders. Evidence that almost all Bony's DVD recorders sold last year were part of the tying arrangement would be helpful to Bony if it were sued under Section 1 of the Sherman Act. Bony's tying arrangement will be deemed legal by the courts because it provides a great value for consumers. The fact that Bony is the market leader in the DVD recorder market is a relevant factor regarding the legality of Bony's tying arrangement.
The fact that Bony is the market leader in the DVD recorder market is a relevant factor regarding the legality of Bony's tying arrangement.
Which of the following, if true, is least likely to prevent a company from asserting trade secret rights in a secret formula or manufacturing process? Multiple Choice The formula or process was developed by a scientist using his own materials and equipment in his basement before he was hired by the company. A competitor sees the information posted on the wall while taking a public tour of the company's facility. The formula or process has been used for more than 20 years. New consumer protection laws make it illegal for the company to use the information to make and sell products. A competitor discovers the information through reverse engineering and makes it publicly available.
The formula or process has been used for more than 20 years.
Which of the following factors would not be considered by the courts in a negligent failure to warn case? Multiple Choice The ease or difficulty of providing an appropriate warning. The magnitude and severity of the harm. Often not having to warn for open and obvious risks. The importance of the product to society.
The importance of the product to society.
Which of the following is correct regarding an employer who intentionally injures an employee? Multiple Choice The injured employee's sole remedy is to file a workers' compensation claim. The injured employee can usually sue the employer outside of workers' compensation. The injured employee's remedy is to file a workers' compensation claim and prosecute the employer in criminal court. The injured employee's sole remedy is to prosecute the employer in criminal court.
The injured employee can usually sue the employer outside of workers' compensation.
Assume Apollo markets its diamonds exclusively to microchip manufacturers for use in making computer microchips. Which of the following marks, if later used by another company, is most likely to be considered an infringement of rights in the trademark APOLLO for diamonds used in computer microchips? Multiple Choice The mark LEAP for diamonds used in computer microchips The mark APOLO for diamonds used in computer monitors The mark APOOLO for computer keyboards The mark APOLLO for shoes The mark APPALL for radios
The mark APOLO for diamonds used in computer monitors
Which of the following is not a recognized reason for taking leave under the Family and Medical Leave Act (FMLA)? Multiple Choice The adoption of a child and the need to care for the child The need to care for a grandparent with a serious health condition The birth of a child and the need to care for the child The employer's own serious health condition
The need to care for a grandparent with a serious health condition
Assume Apollo uses marketing brochures to market its diamonds. Which of the following would be least likely to qualify for copyright protection? Multiple Choice The written product descriptions in a company's marketing brochures The prices and weights of a company's products The photographs in a company's marketing brochures The layout of a company's marketing brochures The artwork in a company's marketing brochures
The prices and weights of a company's products
Which of the following is correct regarding a principal's duty of indemnity? Multiple Choice The principal does not have to indemnify the agent for authorized payments made on the principal's behalf as the payments were undertaken during the agent's work. The principal is required to indemnify an agent even for losses resulting from the agent's negligence. The principal must indemnify the agent for tort damages resulting from authorized conduct that the agent did not believe was tortious. The principal is required to indemnify an agent for losses resulting from unauthorized acts so long as the principal did not benefit from such behavior.
The principal must indemnify the agent for tort damages resulting from authorized conduct that the agent did not believe was tortious.
Whose instructions is the agent required to follow? Multiple Choice The stakeholder's The principal's The incidental beneficiary's The subagent's
The principal's
Which of the following is not a legal formality required for a mortgage? Multiple Choice The legal description of the property The terms and conditions of the security interest in the property The signature of the purchaser-mortgagor of the property The name of the secured party The signature of the creditor-mortgagee
The signature of the creditor-mortgagee
An agent's apparent authority ends when which of the following occurs? Multiple Choice The third party receives notice of termination of the agency The principal revokes the agent's authority The agent's actual authority (both express and implied) ends The principal loses capacity or dies
The third party receives notice of termination of the agency
A pastor of a church (a nonprofit corporation) believes that his salary is too small to cover his meager expenses. When repeated requests to superiors do not result in a salary increase, he starts supplementing his salary with church donations. What risk is he running? Multiple Choice The veil between the pastor and the church will be pierced because the pastor's act is defrauding church members None, since the pastor's meager salary justifies his action The veil between the pastor and the church will be pierced because the pastor's act is immoral None, since the pastor and the church are separate and distinct legal entities
The veil between the pastor and the church will be pierced because the pastor's act is defrauding church members
Which type of intellectual property law is most likely to protect the use of logos such as the upside-down swoosh stripe when attached to a product? Multiple Choice Trademark Law Trade Secret Law Injurious Falsehood Law Copyright Law Patent Law
Trademark Law
Which type of intellectual property is likely to protect the use of the design on the front of the shirt (i.e., the swoosh logo and the "Just Done It!" slogan in stylized font)? Multiple Choice Patent and copyright Trademark and copyright Patent and trade secret Trademark and patent Copyright and trade secret
Trademark and copyright
Which of the following sometimes serves as an alternative to claims of trademark infringement? Multiple Choice Trademark disparagement Trademark protection Trademark dilution Trademark abandonment
Trademark dilution
Suppose consumers are likely to confuse the two slogans, and—as a result—to buy the students' shirts under the mistaken belief that they are made by Nike. If so, what type of legal claim should Nike assert against the students? Multiple Choice Dilution by tarnishment Copyright infringement Trademark infringement Dilution by blurring Misappropriation of trade secrets
Trademark infringement
What type of marks would the slogan and swoosh mark be if they are used to market and sell shirts? Multiple Choice Service marks Collective marks Trademarks Certification marks Design marks
Trademarks
A principal is directly liable for misrepresentations made by her agent during authorized transactions if she intended that the agent make the misrepresentations. Group startsTrue or False
True
In which of the following cases does apparent authority arise? Multiple Choice When a principal causes a third party to reasonably believe that the agent is authorized to act in a certain way. When an agent reasonably believes that the principal wants him to act in a certain way. When a person falsely represents himself as an agent of a principal to a third party. When a principal's manifest consent is communicated directly to the agent.
When a principal causes a third party to reasonably believe that the agent is authorized to act in a certain way.
___________________________ is not a factor used to determine if a man and a woman are performing substantially equal work for purposes of the equal pay act. Multiple Choice Whether they perform their jobs under similar working conditions Whether their jobs require equal responsibility Whether their jobs require equal effort Whether their job descriptions are substantially similar Whether their jobs require equal skill
Whether their job descriptions are substantially similar
Julia has filed a lawsuit against her employer claiming a violation of the Equal Pay Act. She based her suit on a claim that she and Mike, her co-worker, were performing substantially equal work even though Mike was paid significantly more than her. Which of the following will the court NOT consider in evaluating the case? Multiple Choice Whether their job descriptions are substantially similar. Whether they perform their jobs under similar working conditions. Whether their jobs require equal skill. Whether their jobs require equal effort. Whether their jobs require equal responsibility.
Whether their job descriptions are substantially similar.
Under Title VII of the Civil Rights Act of 1964, when can a private plaintiff file a lawsuit? Multiple Choice Within 120 days of filing a charge with the EEOC Within ninety (90) days of receiving the "right-to-sue" letter Within 120 days of receiving the "right-to-sue" letter Within ninety (90) days of filing a charge with the Equal Employment Opportunity Commission (EEOC)
Within ninety (90) days of receiving the "right-to-sue" letter
Noncompetition agreements that strike the court as too __________ may be ruled unenforceable. Multiple Choice narrow nominal independent broad
broad
If the Uniform Commercial Code recognizes the fact that parties to sales contracts frequently omit terms from their agreements or state ambiguous terms, then the Code: Multiple Choice declares such a transaction as a void one. has no power to fill in the blanks. penalizes both parties for such lacunae can fill in the blanks with reference to common trade practices.
can fill in the blanks with reference to common trade practices.
Jack has been Will's personal assistant for 10 years. Jack's duties have always included arranging for one room in Will's house to be re-decorated every year while Will is on his annual vacation in Greece. For the last five years, Jack has hired Grace as the interior designer in charge of the re-decoration project. This year, two weeks before Will left for Greece, he and Jack had a major disagreement about how to decorate the spare bedroom. Will wanted to go with a French-toille inspired theme. Jack insisted on a Hello Kitty theme. The snit escalated into an all-out fight and Will abruptly fired Jack. Without Will's knowledge, Jack went ahead and hired Grace to decorate the spare bedroom in a Hello Kitty theme. He paid Grace's usual 50% up-front fee with Will's credit card, which Will forgot to take away from Jack. When Will returns from Greece he is livid. He refuses to pay Grace for the balance of the bill, because he claims that Jack acted without authority. Is Will liable to Grace for the balance of the bill? Multiple Choice No, because Will revoked the agency, thereby terminating Jack's authority to make contracts on his behalf. Yes, because, even though the agency was terminated, Jack retained apparent authority to bind Will to contracts with Grace until Will actually notified Grace of the termination. No, because there was both actual and constructive notice of the termination. No, because Will was no longer a disclosed principal after the termination. Yes, because Jack was impliedly authorized to enter the contract in Will's absence.
Yes, because, even though the agency was terminated, Jack retained apparent authority to bind Will to contracts with Grace until Will actually notified Grace of the termination.
The document of title or a __________ serves as the contract between the seller and the shipper as well as identifies who has title and control of the goods. Multiple Choice a negotiable bill of lading a negotiable possessor's certificate a negotiable title trading a negotiable bill of contracts
a negotiable bill of lading
Anne worked as Amanda's assistant. Amanda told Anne to buy Amanda coffee every morning (using Anne's own money) and to buy Amanda the latest fashion accessory (scarf, purse, hat, watch, etc.) from Nordstrom on Friday of each week (using Amanda's store account with Nordstrom). Anne has done so for the past year. This past Friday, Anne bought Amanda coffee using Anne's own money, and bought a scarf for Amanda and a purse for herself from Nordstrom (both of which she charged to Amanda's store account). A court is most likely to find that Anne had _______ authority to buy the coffee and scarf; that Anne had _______ authority to buy the purse; and that Amanda has a duty to _______ Anne for the coffee. Multiple Choice actual; apparent; compensate actual; implied; reimburse apparent; actual; reimburse actual; apparent; reimburse apparent; actual; compensate
actual; apparent; reimburse
For third parties who have previously dealt with the agent or who have begun to deal with the agent, __________ notification is necessary to end the agent's apparent authority. For all other parties, __________ notification suffices. Multiple Choice no; actual no; constructive symbolic; constructive actual; constructive
actual; constructive
The Benson Bearing Company sells Textron, Incorporated a quantity of baseball bats that were stored in an independent warehouse at the time of the sale. The contract says that Textron is to pick up the bats at the warehouse. The risk of loss passes to Textron: Multiple Choice at the time of the contract.at the time it receives a negotiable warehouse receipt for the bats. at the time it picks up the bats.at the time it pays for the bats.
at the time of the contract.at the time it receives a negotiable warehouse receipt for the bats.
Traditional antitrust thinkers argue which of the following? Multiple Choice antitrust regulations should protect competition instead of competitors concentration within a particular industry does not preclude interindustry competition domestic concentration might be necessary for effective international market competition concentrated economic power may lead to antidemocratic concentrations of political power
concentrated economic power may lead to antidemocratic concentrations of political power
A copyright comes into existence upon the: Multiple Choice creation of a message. creation of an idea. creation of a protected work. creation and fixing of a protected work.
creation and fixing of a protected work.
Suppose Deb and Creed agree that Creed will lend Deb the money to buy the house and the title to the house will be held by a third party, who will have the right to foreclose or sell the house for Creed's benefit if Deb fails to make payments on the loan. If so, Creed's loan to Deb will be secured by a _____. Multiple Choice mortgage materialman's lien land contract deed of trust mechanic's lien
deed of trust
If a firm conducting interstate commercial activities is found to have monopolized or attempted to monopolize, it will be guilty of a(n) ___________. Multiple Choice embezzlement white collar fraud felony misdemeanor infraction
felony
The Immigration Reform and Control Act (IRCA) prohibits employers with __________ or more employees from refusing to hire or terminating an employee based on national origin or citizenship. Multiple Choice three (3) one (1) two (2) four (4)
four (4)
Suppose Deb's mother agreed in writing that she would make the payments on the debt in the event that Deb failed to make the payments. If so, Deb's mother would be a(n) _____ for Deb's debt. Multiple Choice accommodation surety guarantor lienholder mortgagor compensated surety
guarantor
An agent hired to manage a business can make contracts that are reasonably necessary for conducting the business or that are customary in the business. This refers to __________ Multiple Choice apparent authority. fixed authority. express authority. implied authority.
implied authority.
A nonemployee agent is also known as a(n) __________. Multiple Choice independent contractor symbolic agent constructive agent virtual employee
independent contractor
The bona fide occupational qualification defense under Title VII: Multiple Choice is quite expansive and easily proved by employers. is available for cases of sex, religious, and national origin discrimination, but not for race or color cases. is available for cases of sex, race, color, and national origin discrimination, but not for religion cases. is often successful based on long-held prejudices about certain groups. is available for cases of religious, national origin, race, and color discrimination, but not for cases based on sex.
is available for cases of sex, religious, and national origin discrimination, but not for race or color cases.
Methods of antitrust analysis are commonly called Chicago School theories because many of their major premises were advanced by scholars affiliated with __________. Multiple Choice the University of Illinois at Chicago the University of Chicago Loyola University Chicago State University
the University of Chicago
Respondeat superior __________ Multiple Choice makes a principal liable for the actions of his or her employee. means let the employee answer.is a form of direct liability.is an implied warranty.
makes a principal liable for the actions of his or her employee.
Respondeat superior __________ Multiple Choice means let the employee answer.is a form of direct liability. makes a principal liable for the actions of his or her employee. is an implied warranty.
makes a principal liable for the actions of his or her employee.
Stavros has a _____ in the windows he installed in Deb's house. Multiple Choice deed of trust materialman's lien mortgage mechanic's lien possessory lien
mechanic's lien
Acton Supply Company has the power to fix prices and exclude competitors in its market area. This power is known as _________________. Multiple Choice market elimination monopoly power vertical price fixing reciprocal dealing horizontal price fixing
monopoly power
When a firm has captured a predominant share of the relevant market, it is said to have acquired ____________. Multiple Choice reciprocal dealing power horizontal power tying power price fixing power monopoly power
monopoly power
Suppose that the Electric dealership had been warned by the factory a year before that because of an earthquake, they had been having problems with some of their battery output. As a result, they should be sure to double check the drive train in the cars that they are selling for latent defects, which takes over fifteen hours per car. The dealership disregards the factory's warnings because of high demand, and so far has not had a problem. Under this scenario, John would most likely sue for ______________, and the claim will likely ________ Multiple Choice negligent manufacture; fail. negligent manufacture; succeed. negligent inspection; succeed. negligent failure to warn; succeed. negligent inspection; fail.
negligent inspection; fail.
An agent who is authorized to make a certain transaction on behalf of a principal may __________. Multiple Choice only act on behalf of the other party to the transaction if the other party agrees to indemnify the agent for violating his duty of loyalty to the principal not act on behalf of the other party to the transaction unless the principal knowingly consents not act on behalf of the other party to the transaction even if the principal knowingly consents, since this would constitute a conflict of interest only act on behalf of the other party to the transaction if the principal implicitly consents
not act on behalf of the other party to the transaction unless the principal knowingly consents
If a particular behavior falls under the __________ heading, it is conclusively presumed to violate Section 1 of the Sherman Act. Multiple Choice proof beyond the preponderance of the evidence per se rule of reason quick-look
per se
Under the one-year window exception to the before-application test for patents, an inventor who makes a __________ of the invention has one year from the making of the disclosure to file a patent application. Multiple Choice private disclosure public disclosure statement to their lawyer notable effort to notify
public disclosure
The U.S. Transportation Department: Multiple Choice requires random drug testing of employees occupying certain safety-sensitive or security-related positions. requires every employee who drives a company car to submit to yearly drug and alcohol testing. prohibits polygraph testing of drug users. requires every employee in a transportation-related industry to undergo weekly drug testing. prohibits random drug testing of all employees in the aviation, trucking, railroad, and mass transit industries.
requires random drug testing of employees occupying certain safety-sensitive or security-related positions.
A power of __________ is a(n) __________ loan agreement authorizing a lender (the __________) to sell property used as security if the borrower (the __________) defaults. Multiple Choice sale; secured; agent; principal recognizance; unsecured; agent; principal recognizance; secured; principal; agent sale; unsecured; principal; agent
sale; secured; agent; principal
Market shares in excess of __________ percent have historically justified an inference of monopoly power. Multiple Choice ninety (90) sixty (60) seventy (70) eighty (80)
seventy (70)
A manufacturer may lawfully state a __________ retail price for its products—an action that is __________ and therefore not a violation of Section 1 of the Sherman Act. Multiple Choice mandatory; unilateral suggested; unilateral mandatory; unilateral suggested; bilateral
suggested; unilateral
Goods are being sold by Anne in Seattle and shipped by ABC Railroad to Brian in Portland, Oregon. In this situation, the term "FOB Seattle" means that the risk of loss passes from the seller to the buyer when: Multiple Choice the goods are placed at the seller's warehouse loading dock in Seattle. the goods are identified in Seattle. the goods are delivered to ABC Railroad in Seattle. the goods leave the city limits of Seattle.
the goods are delivered to ABC Railroad in Seattle.
In Coleman v. Retina Consultants, P.C., the case in the text, the court held that: Multiple Choice the noncompetition clause in the Software Agreement was enforceable as a matter of law. the software was not a trade secret because it's coding was available to the public. Retina could only prohibit Coleman from marketing the program with a noncompetition agreement. the plain language of the injunction exceeded the scope required of Coleman pursuant to the terms of the Software Agreement.
the plain language of the injunction exceeded the scope required of Coleman pursuant to the terms of the Software Agreement.
For antitrust purposes, monopoly power is usually described as _________________. Multiple Choice immunity from government regulation the power to fix prices or exclude competitors from a given market the ability to make decisions without consulting the board of directors or shareholders the power to exclusively promote free trade the power to share information with larger competitors
the power to fix prices or exclude competitors from a given market
An exception to the general rule on a buyer receiving better title than a seller is that if goods are entrusted to a merchant who deals in goods of that kind, the merchant has: Multiple Choice the power to deprive the entruster from any benefit so caused by the transaction. the power to transfer all rights of the entruster to a buyer in the ordinary course of business. no power to sell the goods without the physical presence of the entruster. the power to keep rights to the goods, even if the goods are sold to a buyer.
the power to transfer all rights of the entruster to a buyer in the ordinary course of business.
Apparent authority arises when __________ Multiple Choice an agent assumes that the principal wants him to do whatever is reasonable, in light of the principal's manifestations to the agent. the principal has specified the authority of the agent in very detailed language. the principal grants express authority. the principal's manifestations cause a third party to form a reasonable belief that the agent is authorized to act in a certain way.
the principal's manifestations cause a third party to form a reasonable belief that the agent is authorized to act in a certain way.
Apparent authority arises when __________ Multiple Choice the principal grants express authority. the principal has specified the authority of the agent in very detailed language. the principal's manifestations cause a third party to form a reasonable belief that the agent is authorized to act in a certain way. an agent assumes that the principal wants him to do whatever is reasonable, in light of the principal's manifestations to the agent.
the principal's manifestations cause a third party to form a reasonable belief that the agent is authorized to act in a certain way.
All states require attorneys who wish to incorporate to incorporate under __________. Multiple Choice the professional corporation acts state common law special professional articles of organization the Uniform Commercial Code (UCC)
the professional corporation acts
A principal's power to ratify is cut off when __________ Multiple Choice it is equitable to bind the third party. the third party withdraws from the contract. the principal remains silent about the matter. the agent dies or loses capacity after signing the contract.
the third party withdraws from the contract.
Under the Uniform Commercial Code, __________ passes to the buyer when the seller has physically delivered the goods. Multiple Choice title good faith None of the choices are correct possession
title
To comply with the commerce clause, a state tax that is applied to a foreign corporation must do all of the following, except: Multiple Choice be fairly apportioned. not discriminate against interstate commerce. apply to an activity with substantial connection with the taxing state. treat intrastate transactions more favorably than interstate transactions. be fairly related to the services provided by the state.
treat intrastate transactions more favorably than interstate transactions.
In a lawsuit for intentional interference with contractual relations, the existing contract includes: Multiple Choice unenforceable contracts. void bargains. illegal contracts contracts to marry.
unenforceable contracts.
When a third party knows or has reason to know that the agent is acting for a principal but lacks knowledge or reason to know the principal's identity, the principal is __________ Multiple Choice nonexistent. unidentified. undisclosed. disclosed.
unidentified.
Gabriella is starting a shoe company. She wants to make a profit and to be run by board of directors, but also wants the company to have a public benefit of giving free shoes to poor kids. Which of the following business forms should Gabriella use? Multiple Choice A partnership. A limited partnership. A sole proprietorship. A benefit corporation. A limited liability partnership.
A benefit corporation.
Which of the following business forms considers not only the shareholder value or the bottom line, but also considers the business's general public benefit. Multiple Choice A sole proprietorship. A benefit corporation. A partnership. A limited liability partnership. A limited partnership.
A benefit corporation.
Which of the following is correct regarding a corporation? Multiple Choice A corporation does not have a life separate from its owners and its managers. A corporation is owned by partners who have founded the business and have the right to manage it. A corporation is not a tax-paying entity for federal income tax purposes. A corporation has the ability to attract capital, more than the limited partnership (LP).
A corporation has the ability to attract capital, more than the limited partnership (LP).
Which of the following has one (1) or more general partners and one (1) or more limited partners? Multiple Choice A limited liability company (LLC) A limited liability partnership (LLP) A professional corporation (PC) A limited partnership (LP)
A limited partnership (LP)
Which of the following is correct regarding a limited partnership? Multiple Choice Limited partners are liable for the obligations of the limited partnership after making their capital contributions. A limited partnership has difficulties raising large amounts of capital. A limited partnership can be created only by complying with a state statute permitting limited partnerships A limited partnership cannot be transferred to another person.
A limited partnership can be created only by complying with a state statute permitting limited partnerships
Which of the following classes of corporations may not distribute surplus revenue from its operations to its members? Multiple Choice A not-for-profit corporation A publicly held corporation A for-profit corporation An S corporation
A not-for-profit corporation
What is the Court's CONCLUSION (holding, decision) in the Star Athletica v. Varsity Brands case? Affirmed Sixth Circuit. Varsity Brands' products are copyright protected and Star Athletica infringed on VB's copyrights. Reversed Sixth Circuit. Star Athletica products are copyright protected and Varsity Brands infringed on its copyrights. Affirmed Sixth Circuit. Star Athletica products are copyright protected and Varsity Brands infringed on its copyrights. Reversed Sixth Circuit. Varsity Brands' products are copyright protected and Star Athletica infringed on VB's copyrights.
Affirmed Sixth Circuit. Varsity Brands' products are copyright protected and Star Athletica infringed on VB's copyrights.
What is the CONCLUSION (holding, decision) in the ZUP LLC v Nash Manufacturing case? Reversed. ZUP's patent is invalid as a matter of law. Affirmed. ZUP's patent is invalid as a matter of law. Reversed. Nash's patent is invalid as a matter of law. Affirmed. Nash's patent is invalid as a matter of law.
Affirmed. ZUP's patent is invalid as a matter of law.
What was the CONCLUSION (holding, decision) in the Alice Corporation Ltd v CLS Bank International case? Against Alice. The claims are non-patentable abstract ideas of intermediated settlement using some unspecified, generic computer. For Alice. The claims are patentable process instructions to apply intermediated settlements using a computer. For CLS Bank. The claims are patentable process instructions to apply intermediated settlements using a computer. Against CLS Bank. The claims are non-patentable instructions for intermediated settlement using an unspecified, generic computer.
Against Alice. The claims are non-patentable abstract ideas of intermediated settlement using some unspecified, generic computer.
Quality Time, Incorporated is incorporated in Alabama, has offices in Nebraska, has a manufacturing plant in Delaware, and conducts most of its sales from Virginia. Regulation of its internal affairs will be exercised only by __________. Multiple Choice Delaware Virginia Nebraska Alabama
Alabama
In a traditional partnership, the partners Multiple Choice May deduct any business losses on their individual tax returns. Have the right to make all the management decisions for the business. All of the above. Assume personal liability for all obligations of the business. Share all the profits of the business equally unless there is an agreement otherwise.
All of the above.
What is/are the advantage(s) of a manager-managed limited liability company? Multiple Choice The LLC and its members may elect to receive federal tax treatment similar to the S Corporation and its shareholders. The LLC has no limit on the number of owners it may have. The LLC has no restrictions on the type of owners it may have. All of the above. Limited liability.
All of the above.
What was the court's ANALYSIS (legal reasoning) in the Lewis-Gale Medical Center v. Alldredge case? (Check ALL that apply) Alldredge provided insufficient evidence to permit the jury to find that Lewis-Gale's dealings with SWEP used improper methods Alldredge was required to prove Lewis-Gale intentionally interfered with her contract relationship with SWEP and did so with "improper methods." The at-will nature of the contract required SWEP be continually sensitive to the possibility of termination by Lewis-Gale for any reason or no reason Alldredge provided substantial evidence that would permit the jury to find that Lewis-Gale's dealings with SWEP used improper methods
Alldredge provided insufficient evidence to permit the jury to find that Lewis-Gale's dealings with SWEP used improper methods Alldredge was required to prove Lewis-Gale intentionally interfered with her contract relationship with SWEP and did so with "improper methods." The at-will nature of the contract required SWEP be continually sensitive to the possibility of termination by Lewis-Gale for any reason or no reason
What was the Court's ANALYSIS (legal reasoning) in the Star Athletica v. Varsity Brands case? (Choose TWO correct answers) The feature of the cheerleading uniform eligible for a copyright is the utilitarian art that is in Star Athletica's application An artistic feature of the design of a useful article is eligible for copyright protection if it is separate and protectable graphic An artistic design feature of a useful article is eligible for copyright protection if it serves some utilitarian purpose The feature of the cheerleading uniform eligible for a copyright is the two-dimensional work of art fixed in the tangible medium of the uniform
An artistic feature of the design of a useful article is eligible for copyright protection if it is separate and protectable graphic The feature of the cheerleading uniform eligible for a copyright is the two-dimensional work of art fixed in the tangible medium of the uniform
A benefit of the sole proprietorship form of business is that Multiple Choice The sole proprietorship can be legally transferred to any interested buyer. All profits are shared equally with other partners. Shareholders contribute capital to help keep the business running. As the only owner, the sole proprietor makes all decisions and keeps all profits. The proprietor has no personal liability for the obligations or debts of the business.
As the only owner, the sole proprietor makes all decisions and keeps all profits.
In the International Shoe case, the United States Supreme Court held that a foreign corporation must have certain "minimum contacts" with the state such that asserting jurisdiction over the corporation does not offend "traditional notions of fair play and substantial justice." Which of the following did the U.S. Supreme Court use to justify its holding? Multiple Choice Public policy Benefit theory Exchange theory Corporate social responsibility
Benefit theory
All states, except ___, permit professionals to organize as a limited liability company: Multiple Choice Massachusetts California Texas New York Illinois
California
Under the __________ Clause of the United States Constitution, the power to regulate interstate trade is given to the federal government. Multiple Choice Commerce Due Process Equal Protection Privileges and Immunities
Commerce
What RULE (law) did the Court use in the Star Athletica v. Varsity Brands case? (Choose TWO correct answers) Congress has provided copyright protection for original works of art, but not for industrial designs. The Copyright Act provides copyright protection for original works of art and only 3-dimensional for industrial designs The Copyright Act provides copyright protection for both original works of art and for industrial designs. The line between art and industrial design is difficult to draw when an industrial design incorporates artistic elements
Congress has provided copyright protection for original works of art, but not for industrial designs. The line between art and industrial design is difficult to draw when an industrial design incorporates artistic elements
What RULE (law) did the court use in the Coleman v Retina Consultants PC case? A restrictive covenant contained in an employment contract will be upheld if the restraint imposed: _______. (Check THREE correct answers) Contains a time limitation Is founded on a valuable consideration Contains a geographical limitation Does not interfere with other contractual obligations
Contains a time limitation Is founded on a valuable consideration Contains a geographical limitation
Which of the following is NOT an improper use of a dominated corporation, which can lead to the corporate veil being pierced? Multiple Choice Thin capitalization of a corporation Looting the corporate property Engaging in isolated transactions outside the state of incorporation Organizing the corporation in a way that is intended to circumvent a statutory duty Organizing or reorganizing a corporation for the purpose of evading an existing obligation
Engaging in isolated transactions outside the state of incorporation
Which of the following is generally correct regarding sexual harassment suits under Title VII of the Civil Rights Act of 1964? Multiple Choice All courts agree that same-sex sexual harassment violates Title VII. In all sexual harassment cases the alleged harassment must be unwelcome, or the employee will not recover The employee must establish a tangible job detriment such as a firing tor the denial of a promotion, or she will lose the case. The employee must prove actual physical contact, or she will lose the case.
In all sexual harassment cases the alleged harassment must be unwelcome, or the employee will not recover
Which of the following is NOT a requirement for a state tax on foreign corporations to comply with the Commerce Clause? Multiple Choice It must not discriminate against interstate commerce. It must be fairly apportioned. It must apply to an activity with substantial connection with the taxing state. It must treat intrastate transactions more favorably than interstate transactions. It must be fairly related to the services provided by the state.
It must treat intrastate transactions more favorably than interstate transactions.
What was the court's ANALYSIS (legal reasoning) in the CBS Corp v FCC case? (Choose TWO correct answers) Jackson and Timberlake were 'temporary' salaried employees who were paid weekly during the 4 weeks leading up to the Superbowl. There was substantial evidence that Jackson, Timberlake, and CBS considered their contractual relationships to be those between employer-employee. Jackson and Timberlake were compensated by one-time, lump-sum contractual payments and "promotional considerations" rather than by salaries. There is no evidence that Jackson, Timberlake, or CBS considered their contractual relationships to be those of employer-employee.
Jackson and Timberlake were compensated by one-time, lump-sum contractual payments and "promotional considerations" rather than by salaries. There is no evidence that Jackson, Timberlake, or CBS considered their contractual relationships to be those of employer-employee.
A business form that is managed by partners who all share the same rights and liabilities, limits partners' liability to only their individual torts, and is formed by agreement of the owners in compliance with the relevant statute is a(n): Multiple Choice Sole proprietorship. Limited liability partnership. S Corporation. Benefit corporation. Limited liability company.
Limited liability partnership.
For a business needing millions of dollars of capital, wanting only a few owners to manage the business, and expecting to lose money in its early years, what business form would be particularly attractive? Multiple Choice Limited partnership. S Corporation. Partnership. Corporation. Sole proprietorship.
Limited partnership.
Chestnut Electronics, Inc. transfers many of its major assets to its shareholders for far less than the fair market value. Chestnut is engaged in _______, which can lead to corporate veil piercing because it _______. Multiple Choice Thin capitalization; circumvents a statutory duty Alter ego; creates a significant domination Looting; evades an existing obligation Looting; defrauds creditors of the corporation Thin capitalization; defrauds creditors of the corporation
Looting; defrauds creditors of the corporation
What is the main RULE (law) in the ZUP LLC v Nash Manufacturingcase? (Choose two correct answers) Obviousness is a legal determination based on the scope and content of the prior art; the differences between the claims and the prior art. Obviousness is a legal determination based on the level of ordinary skill in the pertinent art; any secondary considerations of non-obviousness. Obviousness is a legal determination based on the level of reasonable skill in the general art; any secondary considerations of non-obviousness. Obviousness is a legal determination based on the scope and content of any future art; the differences between the claims and the prior art.
Obviousness is a legal determination based on the scope and content of the prior art; the differences between the claims and the prior art. Obviousness is a legal determination based on the level of ordinary skill in the pertinent art; any secondary considerations of non-obviousness.
What is the court's CONCLUSION (decision, holding) in the Lewis-Gale Medical Center v. Alldredge case? Affirmed for Lewis-Gale. Alldredge failed to prove Lewis-Gale's purposeful interference in her contract relationship with SWEP used improper methods Reversed, for Alldredge who failed to prove Lewis-Gale's purposeful interference in her contract relationship with SWEP used improper methods Reversed, for Lewis-Gale. Alldredge failed to prove Lewis-Gale's purposeful interference in her contract relationship with SWEP used improper methods Affirmed for Alldredge who proved Lewis-Gale's purposeful interference in her contract relationship with SWEP used improper methods
Reversed, for Lewis-Gale. Alldredge failed to prove Lewis-Gale's purposeful interference in her contract relationship with SWEP used improper methods
Which of the following is not a major classification of corporations? Multiple Choice Not for profit Sole proprietorship Government-owned For profit
Sole proprietorship
A business form in which there is only one owner is called a Multiple Choice Limited Liability Company. Benefit corporation. Sole proprietorship. Limited Partnership. Limited Liability Partnership.
Sole proprietorship.
Which of the following is incorrect regarding limited liability partnerships (LLPs)? Multiple Choice The formation of an LLP requires paying an annual fee. The formation of an LLP requires filing a form with the secretary of state. The partners of an LLP must expressly agree to create an LLP by complying with an LLP statute. The LLP's name must end with the acronym "RLLP."
The LLP's name must end with the acronym "RLLP."
Which of the following is incorrect regarding a partner's partnership interest? Multiple Choice A partner's partnership interest includes the partner's transferable interest. Partners have the right to use partnership property for partnership purposes. The Revised Uniform Partnership Act (RUPA) gives ownership of partnership property to the partners. A partner has no individual ownership rights in partnership property.
The Revised Uniform Partnership Act (RUPA) gives ownership of partnership property to the partners.
What RULE (law) did the court apply in the CBS Corp v FCC case? (Choose TWO correct answers) The respondeat superior doctrine provides employer liability for torts committed by contractors acting within the scope of their agency The respondeat superior doctrine provides employer liability for torts committed by employees acting within the scope of their employment. Application of respondeat superior requires selecting applicable legal standards for differentiating "employees" from an "independent contractors" Application of respondeat superior requires a legal standard that distinguishes between a detour and a frolic.
The respondeat superior doctrine provides employer liability for torts committed by employees acting within the scope of their employment. Application of respondeat superior requires selecting applicable legal standards for differentiating "employees" from an "independent contractors"
The liability of a purported partner is based on which of the following? Multiple Choice The substantial, detrimental reliance on the appearance of a partnership The subjectively reasonable reliance on the appearance of a partnership The fairness of the representation The objectively reasonable reliance on the appearance of a partnership
The substantial, detrimental reliance on the appearance of a partnership
Abe and Carlos want to form a general partnership. What must they do in order to create this legal form of business? Multiple Choice They can start a partnership without any formalities. They must get a partnership license from the secretary of state. They must first orally agree to become partners and then formulate a contract. They must sign a written agreement and file it with the secretary of state.
They can start a partnership without any formalities.
Which of the following is correct regarding not-for-profit corporations? Multiple Choice They must distribute all of their excess revenues to charities. Incorrect They issue stock to their incorporators. They provide services to their members. They must distribute all of their surplus revenues to their shareholders.
They provide services to their members.
________________, which results from providing insufficient contributions of money and other property in relation to the nature and risks of the business, can lead to corporate veil piercing because it _______________________________. Multiple Choice Thin capitalization; defrauds creditors of the corporation Looting; evades an existing obligation Looting; defrauds creditors of the corporation Thin capitalization; circumvents a statutory duty Alter ego; creates a significant domination
Thin capitalization; defrauds creditors of the corporation
What was the main ISSUE (legal question) the court asked in the CBS Corp v FCC case? (Choose TWO correct answers) Were Jackson and Timberlake independent contractors of CBS during the Super Bowl half-time show? Were Jackson and Timberlake employees of CBS during the Super Bowl half-time show? Did Janet Jackson's exposed breast violate CBS's moral code resulting in a large number of viewer complaints to the FCC? Was the song "Rock Your Body" a copyrighted song that was played with the author's permission?
Was the song "Rock Your Body" a copyrighted song that was played with the author's permission?
What was the main ISSUE (legal question) in theAlice Corporation Ltd v CLS Bank International case? Whether CLS Bank's claims are patent-eligible or are instead drawn to a patent-ineligible abstract idea. Whether Alice's patent claims are patent-eligible or merely patent-ineligible abstract ideas. Whether the contract between Alice and CLS represents only abstract ideas or tangible inventions Whether CLS Bank is an FDIC registered financial institution
Whether Alice's patent claims are patent-eligible or merely patent-ineligible abstract ideas.
What is the main ISSUE (legal question) in the Lewis-Gale Medical Center v. Alldredge case? Whether Alldredge presented enough evidence to permit a jury to find Lewis-Gale employed improper methods to induce SWEP to terminate her employment Whether Alldredge's jury award was excessive under Virginia's Due Process clause. Whether SWEP presented enough evidence to permit a judge to dismiss Alldredges motion for summary judgment Whether SWEP presented enough evidence to permit a jury to find Lewis-Gale employed improper methods to induce to terminate its employment
Whether Alldredge presented enough evidence to permit a jury to find Lewis-Gale employed improper methods to induce SWEP to terminate her employment
What is the main ISSUE (legal question) in the Star Athletica v. Varsity Brands case? Whether Star Athletica's products are original works protected by Copyright Law, or industrial designs not afforded legal protection. Whether Star Athletica's products are derivative works not protected by Copyright Law, or industrial designs protected by Copyright Law Whether Star Athletica infringed on Varsity Brands products or whether they are industrial designs with no legal protection. Whether Varsity's products are derivative works not protected by Copyright Law, or industrial designs protected by Copyright Law
Whether Star Athletica infringed on Varsity Brands products or whether they are industrial designs with no legal protection.
What is the main ISSUE (legal question) in the ZUP LLC v Nash Manufacturing case? Whether the Court's alternative wakeboard design was obvious in light of prior wakeboard designs? Whether Nash's alternative wakeboard design was nonobvious in light of prior wakeboard designs? Whether ZUP's wakeboard design allowing a user to pull herself up using foot bindings and handles was obvious in light of prior wakeboard designs? Whether the Court's alternative wakeboard design was nonobvious in light of prior wakeboard designs?
Whether ZUP's wakeboard design allowing a user to pull herself up using foot bindings and handles was obvious in light of prior wakeboard designs?
What is the main ISSUE (legal question) in the Coleman v Retina Consultants PC case? Whether the noncompete contained valuable consideration for the mutual contractual promises? Whether Coleman was properly licensed as a software programmer? Whether TREC's doctors were properly licensed as health care providers? Whether the noncompete clause without a duration was enforceable?
Whether the noncompete clause without a duration was enforceable?
Which of the following is not a consideration when determining whether a state law regulating the activities of a foreign corporation places an undue burden on interstate commerce? Multiple Choice Whether the law serves a legitimate state interest Whether the state's law is the most economical solution to the problem Whether the state has chosen the least burdensome means Whether the state's reasoning outweighs the statute's burden on interstate commerce
Whether the state's law is the most economical solution to the problem
What is the main ANALYSIS (legal application) in the ZUP LLC v Nash Manufacturing case? Nash contends a person of skill in the art would achieved rider stability in a predetermined riding position, but the evidence contradicts this assertion. ZUP contends a person of skill in the art would achieved rider stability in a predetermined riding position, but evidence contradicts this assertion. The prior art accomplished the goal of helping riders maneuver between positions by focusing on rider stability. Nash admits achieving rider stability is an age-old motivation in this field. Prior art accomplished the goal of helping riders maneuver between positions by focusing on rider stability. ZUP even admits that achieving rider stability is an "age-old motivation in this field."
ZUP contends a person of skill in the art would achieved rider stability in a predetermined riding position, but evidence contradicts this assertion. Prior art accomplished the goal of helping riders maneuver between positions by focusing on rider stability. ZUP even admits that achieving rider stability is an "age-old motivation in this field."
If required to qualify to do intrastate business in a state, a foreign corporation must file _______________________. Multiple Choice a certificate of authority a new articles of incorporation in that state an affidavit of authenticity a complaint against the secretary of state in one of the federal district courts in that state a copy of the birth certificate of each member of the board of directors
a certificate of authority
What RULE (law) did the court use in the Lewis-Gale Medical Center v. Alldredge case? The prima facie elements for intentional interference with performance of an at-will contract by a third party are: _________. (Choose TWO correct answers) the existence of a valid contractual relationship or business expectancy, and knowledge of the relationship a negligent interference by defendant using business methods which caused the termination of the relationship the existence of a quasi-contract and knowledge of at least one promise that was made an intentional interference by defendant using improper methods which caused the termination of the relationship
an intentional interference by defendant using improper methods which caused the termination of the relationship
Partners of a partnership __________. Multiple Choice are not liable for all of the partnership's obligations can create a partnership only by complying with a statute are not permitted to deduct partnership losses on their individual federal income tax returns are entitled to income of the partnership, which must be reported on their individual federal income tax returns
are entitled to income of the partnership, which must be reported on their individual federal income tax returns
Government-owned corporations: Multiple Choice are generally close corporations. are owned by governments and perform governmental and business functions. issue no stock and expect no profit, but rather provide services to their members without a profit motive. pay income tax only on income over one million dollars. issue stock to their shareholders, who invest in the corporation with the expectation that they will earn a profit.
are owned by governments and perform governmental and business functions.
As demonstrated in the Finch v. Raymer case, there is a very strong presumption that property purchased with partnership funds __________. Multiple Choice and used in the partnership belongs to the partner that initiated the transaction and used in the partnership belongs to the partnership if the property is titled to the partnership belongs to the partners on a pro rata basis and used in the partnership belongs to the partnership
belongs to the partners on a pro rata basis and used in the partnership belongs to the partnership
Ice Blue Dressmakers, Inc. owns 70 retail outlets throughout the United States. To limit liability, Ice Blue Dressmakers operates as a holding company and owns each of the retail outlets as separate subsidiary corporations. Each of the subsidiaries owns and conducts the business of a separate retail outlet. As the parent corporation, Ice Blue Dressmakers wholly owns each subsidiary. To prevent piercing of the corporate veils between the subsidiaries and/or between the parent company and its subsidiaries, the companies should do all the following except: Multiple Choice collect subsidiaries' profits in an account held by the parent, which is used to timely pay the subsidiaries' debts. record all transactions between the affiliated companies on the books of both companies. hold separate meetings for each corporation's board of directors and each corporation's shareholders. make sure all transactions between the affiliated companies are priced at fair value. have separate boards of directors for each corporation.
collect subsidiaries' profits in an account held by the parent, which is used to timely pay the subsidiaries' debts.
The law of piercing the corporate veil is an example of a __________ law protecting the creditors of corporations. Multiple Choice statutory bankruptcy constitutional common
common
A pseudo-foreign corporation is a: Multiple Choice corporation listed on a major stock exchange. foreign business that qualifies to do business as an LLC in a state other than where it is registered. corporation that does not have to qualify to do business outside the state in which it is incorporated. corporation that claims it does business in another state, but actually doesn't. corporation that conducts most of its business in a state other than the one in which it is incorporated.
corporation that conducts most of its business in a state other than the one in which it is incorporated.
One of the two (2) most important factors in establishing co-ownership of a business is __________. Multiple Choice sharing management of the business encouraging voluntary relationships making revenue creating joint ventures
creating joint ventures
Most of the common law of corporations deals with __________. Multiple Choice promoter and manager rights creditor and shareholder rights the incorporation of sole proprietorships the incorporation of not-for-profit organizations
creditor and shareholder rights
The corporate form of business has facilitated the rapid growth of development by allowing businesses to attain economies of scale compared to other forms of businesses by __________. Multiple Choice imposing unlimited management responsibilities on the owners maximizing the owners' liabilities giving businesses a greater capacity to raise capital granting the persons who control a corporation limited flexibility in operating it
giving businesses a greater capacity to raise capital
In a limited partnership, the general partners __________. Multiple Choice cannot transfer their ownership interest are not liable for the firm's debts are nonparticipating investors have the right to manage the business
have the right to manage the business
Not-for-profit corporations: Multiple Choice are generally publicly held corporations. issue stock to their shareholders, who invest in the corporation with the expectation that they will earn a profit. pay income tax only on income over one million dollars. issue no stock and expect no profit, but rather provide services to their members without a profit motive. are owned by governments and perform governmental and business functions.
issue no stock and expect no profit, but rather provide services to their members without a profit motive.
For-profit corporations: Multiple Choice are owned by governments and perform governmental and business functions. pay no income tax. cannot be publicly held corporations. issue stock to their shareholders, who invest in the corporation with the expectation that they will earn a profit. issue no stock and expect no profit, but rather provide services to their members without a profit motive.
issue stock to their shareholders, who invest in the corporation with the expectation that they will earn a profit.
A limited partnership (LP) __________. Multiple Choice dissolves when a limited partner dies may be taxed either as a partnership or as a corporation may not have a corporation as a general partner may be created by default
may be taxed either as a partnership or as a corporation
A partner has __________ individual ownership rights in partnership property. Multiple Choice equitable unlimited no fractional
no
A Subchapter S corporation is typically treated like a __________ for federal income tax purposes. Multiple Choice publicly held corporation for-profit corporation partnership not-for-profit corporation
partnership
According to the Revised Uniform Partnership Act (RUPA), __________. Multiple Choice partnerships have continuity of existence a partnership cannot sue or be sued in its own name a partnership does not have a life apart from its owners partners have no liability for the obligations of the partnership
partnerships have continuity of existence
Alaphant Corporation is incorporated in Alabama; however, it is running ninety (90) percent of its operations from Indiana. Such a type of corporation is called a(n) __________ corporation in Indiana. Multiple Choice foreign pseudo-foreign alien domestic
pseudo-foreign
A corporation that conducts most of its business in a state other than the one in which it is incorporated is called a(n) _______________________________ in the state in which it conducts most of its business. Multiple Choice pseudo-domestic corporation alien corporation pseudo-foreign corporation intrastate corporation long-arm corporation
pseudo-foreign corporation
As early as 1248 in France, privileges of incorporation were given to mercantile ventures to encourage investment for the benefit of __________. Multiple Choice society the individual entrepreneur the government charitable causes
society
A state law regulating the activities of a foreign corporation does not unduly burden interstate commerce if the __________. Multiple Choice foreign corporation enters interstate commerce primarily to conduct business within the state that has imposed the regulation the law serves both the state's and the foreign corporation's legitimate interest legitimate state interest outweighs the statute's burden on interstate commerce state has chosen the least burdensome means of promoting a legitimate state interest, and that interest outweighs the statute's burden on interstate commerce
state has chosen the least burdensome means of promoting a legitimate state interest, and that interest outweighs the statute's burden on interstate commerce
