LA245 Final Exam Review

You are employed as a receptionist at an upscale restaurant with a large base of regular customers. One of your male co-workers recently announced he is transitioning to female and will soon begin to dress and present as a woman. Your co-worker has earned praise from your boss and outstanding performance reviews. Your employer is concerned, however, that customers will be uncomfortable by the transition and will find other places to enjoy a meal. As a result, your employer terminates your coworker from his job. Your coworker is offended and angry and wants to take action to get the job back. Can the employer legally terminate employees on the ground they are transgender? A. Yes, termination decisions are at the sole discretion of the employer B. No, employers cannot terminate workers unless they fail to adequately perform job responsibilities C. No, transgender employees are protected by the Equal Protection Clause and the Civil Rights Act of 1964 D. Yes, if a worker's gender identity will make customers uncomfortable

C. No, transgender employees are protected by the Equal Protection Clause and the Civil Rights Act of 1964

You play drums in a band that is very popular on your campus. In addition to playing other groups' hit songs, your band plays music that you write. One of your songs has gone viral and has over five million "likes" on Facebook. Your band copyrighted this song and is selling the single via iTunes. You learn that someone in Spain is selling downloads of the song without your permission. You want to stop the unauthorized sales. You are aware of the Berne Convention, an international treaty that would require Spain to recognize your copyright and enable you to enforce your rights in that country. You are thrilled that this treaty exists and you wonder how it came into existence. How are international agreements like the Berne Convention adopted? A. The president and a majority vote in the Senate can ratify a treaty B. The president is authorized to sign treaties, and when he or she does, the United States is bound C. Treaties must be approved by the supreme power of each nation. In the United States, approval by both the president and the Senate is required. The treaty must pass in the Senate by a minimum vote of two-thirds D. The Chairman of the Senate Foreign Relations Committee is authorized to sign treaties on behalf of the United States

C. Treaties must be approved by the supreme power of each nation. In the United States, approval by both the president and the Senate is required. The treaty must pass in the Senate by a minimum vote of two-thirds

You own a lawn care service. A new customer calls and asks that you mow and weed eat her lawn. You tell her the price will be $150 and she agrees. You show up while she is at work and get the lawn mowed and the weed eating done by the time she gets home. Unfortunately, when she gets home, you discover that you have serviced the lawn of your customer's next-door neighbor instead of hers! Do you think you have any chance of getting any money from the neighbor for the services you have provided? A. No, because you did not have a contract with the neighbor B. No, but you can collect the money from your new customer C. Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work D. Yes, the neighbor will have to pay you the contract price because you performed the work

C. Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work

You are studying to be an accountant. During school breaks, you work part-time at a large company that sells its stock on the stock exchange. To help you understand how investments work, you bought 100 shares of stock in this company. While doing the bookkeeping, you discover the company just had a very bad financial quarter. You anticipate the price for the company stock will fall substantially once that information is made public. You decide to sell your shares immediately to avoid a significant loss. You direct your stockbroker to sell your stocks and are able to complete the transaction before this news gets out. Have you done anything illegal by selling your stock when you did? A. No, you are entitled to utilize all information available when deciding whether to buy or sell stock B. No, shareholders can sell or buy stock anytime they wish C. Yes, you will be liable for insider trading based on the misappropriation theory D. Yes, it is illegal for an employee of a company to buy or sell company stock

C. Yes, you will be liable for insider trading based on the misappropriation theory

You are an accounting student at a university and also a talented guitar player. During summer vacation, you are hired full time to do bookkeeping for a computer store. You work during normal business hours at the computer store. Your work there is supervised by the office manager, and you are paid an hourly wage. On Saturday nights, you play guitar at a pub. You bring your own instrument and you decide what music to play. You are paid a set price for this gig. A question arises at both the store and the pub as to whether you are an employee or an independent contractor. This question is important because employers have certain obligations to employees that do not apply to independent contractors. For example, employers are liable for the wrongful acts of employees but generally not for the acts of independent contractors. Likewise, employers must withhold payroll taxes for employees but not for independent contractors. Are you an employee or an independent contractor at the store and at the pub? A. You are an independent contractor of the computer store and an employee of the pub B. You are an employee of both the computer store and the pub C. You are an employee of the computer store and an independent contractor of the pub D. You are an independent contractor of both the computer store and the pub

C. You are an employee of the computer store and an independent contractor of the pub

You own a German Shepherd named Max who you love and adore. You are aware that Max is sometimes aggressive with new people. Because of that, you are usually very careful to prevent Max from running out of the house unleashed. One day, as you open the door to bring in the mail, Max escapes out of the door and attacks a woman walking in the vicinity of your home. The woman suffers significant injuries on her right arm, some of which she claims will leave permanent scars. You feel very bad about this. The woman is now suing you for $18,000 to cover her alleged medical bills, missed time at work, and pain and suffering. To prepare for the trial, you would like to review the woman's medical records, medical bills, work schedule, and salary. Additionally, you would like to have a doctor of your choosing examine her arm and assess the true extent of the injuries. What is the procedure a defendant uses to learn more about a plaintiff's claim before trial? A. voir dire B. pretrial conference C. discovery D. motion for a directed verdict

C. discovery

You live with your parents in a house they own. You are planning an outside barbecue and have invited numerous people. Three days before the event, the local power company begins work to replace underground pipelines in your front yard. The workers have dug up part of the ground. You are unhappy not only because the yard looks ugly, but also because the portion of the yard you intended to use for the party is now unusable. What interest does the power company have in your parents' property that allows the company to work on the pipes? A. constructive eviction B. life estate C. quitclaim D. easement

D. easement

After class one day, you are in a hurry to meet a friend and accidentally leave your textbook in the classroom. You soon realize you do not have your book and return to the classroom to get it. Unfortunately, the book is gone. You go to lost and found, but no one has returned it. Later, you find out that someone took your book and sold it. What crime was committed by the person who took your book? A. burglary B. robbery C. embezzlement D. larceny

D. larceny

As you begin studying business law, you become overwhelmed by the sheer volume of laws that can affect business. You dive in and begin the process of understanding where these laws come from; the first step in understanding how these laws apply to each other and how they apply to your business. You're looking at statutes that set out the penalties for forgery and learn that each state is free to make its own criminal laws that apply just to that state. Which branch of government do you think creates statutes? A. the judiciary B. the attorney general C. administrative agencies D. the legislature

D. the legislature

You are an experienced server and have worked at many restaurants. An English pub is opening in town and is seeking waiters and waitresses. You are interested in applying, but the job description states, "Seeking people of British nationality only." Even though you are not British, you apply for the job. You are invited to an interview. While there, the restaurant manager thanks you for your interest, but says she will not hire you because you are not British. The manager explains she wants to hire British servers because, in her opinion, they will best portray the theme of the restaurant as an authentic English pub. Has the restaurant violated any anti-discrimination laws? A. Yes, the restaurant has discriminated on the basis of national origin B. No, a restaurant can refuse to hire on any grounds C. No, the restaurant has the defense of bona fide occupational qualification D. Yes, the restaurant must hire the first applicant with experience as a server

A. Yes, the restaurant has discriminated on the basis of national origin

How long will protection for your book (intellectual property) last? A. thirty years B. as long as you live, plus seventy years C. as long as you live D. twenty years

B. As long as you live, plus seventy years

You have a small business supply store. You order fifty boxes of paper from Hammerhill Paper Supply and tell them you need the paper delivered within four days, and Hammerhill agrees to provide the paper within four days. Neither you nor Hammerhill mentions the price of the paper, though. How do you think the price of the paper will be determined if you get into a legal dispute with Hammerhill about it? A. The price of the paper doesn't really matter because you have no contract after all B. The court will determine a reasonable price at the time of delivery C. You get to decide the price of the paper D. Hammerhill will get to decide the price of the paper

B. The court will determine a reasonable price at the time of delivery

You participate in Black Lives Matter protests and have begun studying the issues raised about police officers. Your local protest group believes the budget of the local police department should be made public as well as the training manuals used to prepare recruits for the job. You and the group want this information to help assess the effectiveness of the police department. For example, is the money well spent? Is training appropriate? What law enables citizens to obtain information from the government about a subject of interest when a written request is made? A. Privacy Act B. Enabling Legislation C. The Administrative Procedure Act D. Freedom of Information Act

D. Freedom of Information Act

You have had a grudge against the owner of a local barbeque restaurant for years. You went to high school together, and he is always acting like he is better than you because even though you both own barbeque restaurants, his business seems to be more popular than yours. You come up with a plan to get back at him by spreading false rumors that his barbeque made a lot of people sick. That'll teach him! What do you think might happen if you go through with your plan? A. The owner of the restaurant could sue you and you might have to apologize to him B. Nothing would happen, other than extreme satisfaction for you C. The restaurant owner might try to sue you, but he would not be successful D. The owner of the restaurant could sue you, and you may have to pay him money

D. The owner of the restaurant could sue you, and you may have to pay him money

You have a brilliant idea for a new company. For children's birthday parties, you plan to provide a traveling children's show, complete with petting zoo and clowns, and take it wherever the party occurs. Two friends agree to help you with your venture, so you decide you probably need to incorporate, just so you look "official." Do you think there might be any drawbacks to incorporating? A. Yes, you may be liable for any bad acts committed by your friends B. Yes, you may have to pay more taxes C. No, there are no drawbacks to incorporating D. While there may be some drawbacks to incorporating, you are more interested in the tax benefits you will receive from incorporating

B. Yes, you may have to pay more taxes

After eating at a local restaurant, in which you had a heated disagreement with the owner, you decide to go online and post a review. Your review states that not only would you never eat their again due to their unprofessionalism, but that your food was bad and the restaurant was so unclean that it should be inspected by the health department, because you "saw a rat run across the floor of the kitchen." If your review is posted anonymously, does the restaurant owner have any legal recourse so they may find out who you are and possibly sue you for defamation? A. Yes, any business can find out who posts any statements about their business whether defamatory or not B. Yes, the business may have the right to uncover your identity in order to bring a suit against you C. No, the first amendment protects all freedom of speech, even online D. No, because you posted anonymously, you are protected

B. Yes, the business may have the right to uncover your identity in order to bring a suit against you

You haven't used your professional camera in a while, so you offer to sell it to your friend who just started photography classes at the local college. Later in the day, you start having second thoughts. You call your friend and tell her that you changed your mind, and the camera is not for sale after all. What do you think would happen if your friend tried to enforce your offer and make you sell her the camera? A. Your friend cannot force you to sell the camera whether she had already accepted the offer or not B. Your friend cannot force you to sell her the camera because you let her know you changed your mind before she accepted the offer C. Your friend can force you to sell her the camera only if your offer to sell was in writing D. Your friend can force you to sell her the camera because you made a valid offer to her

B. Your friend cannot force you to sell her the camera because you let her know you changed your mind before she accepted the offer

You are the manager of a sandwich shop called Buns-R-Us, which has twelve employees. The corporate office has a very robust ethical code of conduct for employee behavior and has trained each employee on it. On a personal level, you disagree with some of the rules. And, because you are the manager, you choose not to follow them. When your employees see that you, as the manager, do not follow the rules, what's the likely consequence? A. They will likely follow the rules because it's the right thing to do B. It will have no effect on the employees C. They will likely not follow the rules either D. They will likely follow the rules to keep their jobs

C. They will likely not follow the rules either

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle? A. Yes, he can, even though you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew you were intoxicated B. Yes, he can, even though you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated C. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew that you were intoxicated D. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated

D. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated

You've spent the last eighteen months writing a how-to book for entrepreneurs who want to establish their own business. As you put the final editing touches on the book, you start thinking about how you can protect your book, and how you can make sure you receive the profit from it. What do you think you should do to make sure only you can profit from your work? A. You can apply for a trademark to protect your work B. You can apply for a patent to protect your work C. You can register a copyright with the United States Copyright Office D. Nothing; copyright protection happens automatically once the work is in tangible form

D. Nothing; copyright protection happens automatically once the work is in tangible form

You are thinking about buying a restaurant with some of your buddies from college. One of the first things you need to discuss is what kind of business entity you want to create. You want to make sure that you are liable for only what you do, not what any of your buddies do. However, you're also concerned about getting the best tax deal. Do you think there is a way to organize your business so that you are not liable for your buddies' actions or debts without risking paying more taxes? A. Yes, you could organize your business as a sole proprietorship B. Yes, you could organize your business as a corporation C. Yes, you could organize your business as a partnership D. Yes, you could organize your business as a limited liability company

D. Yes, you could organize your business as a limited liability company