MGMT 271 FINAL

10. The Sarbanes-Oxley Act (SOX) is addressed to issues involving a. environmental law b. labor-union and labor management law c. securities regulation d. anti-discrimination in employment e. administrative law

C

20. Why are limited liability companies now the "entity of choice" for most people starting small businesses? i. unlike corporations, they require no state filing. ii. they are taxed like a partnership, once only. iii. the owners are insulated from personal liability beyond their contributions. iv. the a "ease of alienation" is greater than with partnerships. v. they provide a mechanism to raise large amounts of capital a. i and iv. b. ii and v. c. ii and iii. d. iv only. e. v only.

C

22. When a company wants to raise a significant amount of money to start doing business, it is most likely affected by: a. strict liability b. common-law fraud c. Securities Act of 1933 d. Securities Exchange Act of 1934 e. Price-Waterhouse Act of 1994

C

28. Why does the Constitution grant federal courts jurisdiction in "controversies... between citizens of different states"? a. to promote the development in inter-state civil cases of a uniform, federal, body of law. b. to allow the federal courts power to dictate to state courts on issues of law affecting out-of-state citizens. c. to provide a disinterested judiciary so that parties feel any resolution was procedurally fair. d. two of these e. none of these

C

34. Which of these is a disfavored defense? a. negligence b. comparative negligence c. assumption of the risk d. condition precedent e. discharge

C

41. The point of our interest in "Maslow's Hierarchy of Needs" is to explain a. the fundamentals of business governance in a large firm. b. basic requirements for a successful "triple bottom line" analysis. c. why people engage in "group think" (i.e., mob psychology). d. what motivates people to work and achieve wealth and influence. e. the requirements for a person--and society--to be well-adjusted and productive

C

59. Modern "stakeholder theory" adds "environment" and "future generations" to the list of more traditional stakeholders. Why have these been added? a. Government reporting now requires it b. It is recognized as being good for the firm's profitability c. Economic and population growth have noticeably eroded quality of life d. "greens" have become influential in business policy debates e. Modern business is expected now to defer to these new stakeholders' interests

C

7. Which kind of warranty is created when Seller sells Buyer a chainsaw after Buyer says this to Seller: "I need a saw that will cut down trees about 5" in diameter"? a. express warranty. b. implied warranty of merchantability. c. implied warranty of fitness for a particular purpose. d. implied warranty of satisfactory performance. e. none of these.

C

23. The general rule is that the promise to make a gift is not a legally enforceable. What is an exception to this rule: a. past consideration b. the doctrine of foreseeability c. the mail box rule d. the mirror image rule e. promissory estoppel with detrimental reliance

E

3. Which is specifically provided for in the U.S. Constitu¬tion? a. the right of privacy. b. the right of the Supreme Court to declare acts of Congress unconsti¬tutional. c. the right of states to afford greater constitutional protec¬tions than the federal constitution does. d. that defamation is not protected by the Constitu¬tion. e. none of these are specifically provided for.

E

1. Betty Baker is spray-painting her house in a careless way; she gets paint on and damages the finish on Dubious' car. Which is correct: a. Dubious is entitled to recover from Baker in a civil suit. b. Dubious may sue Baker in equity for the injuries to his car. c. The state would bring a criminal action against Baker. d. Dubious may be awarded punitive damages. e. Two of the above..

A

11. Which is true: a. Punitive damages are more likely in tort than contract. b. "Passing off" (a type of competitive tort) always involves selling inferior goods. c. Partnerships can only be formed voluntarily. d. Equitable remedies are not available in tort. e. Even an intentional tort may be found to be been committed "in the scope of employment."

A

13. Betty Baker contracted with Rufus to have a new roof put on her house for $10,000. Rufus did a bad job; the roof leaked; the interior of her house was damaged in the amount of $1000. Betty hired another roofer to do the job right, and was charged $3000 for this. Betty wants Rufus to re-imburse her for the $3000. This is called: a. compensatory damages. b. consequential damages. c. liquidated damages. d. comparative damages e. punitive damages

A

16. Dubious told his employee Shady not to work under automobiles without safety stands, and Dubious periodically inspected the shop floor to see that employees were abiding by safety regulations. One day, notwithstanding Dubious' directions, Shady got under a car without a safety jack. The car slipped off the jacks and Shady was injured. He applied for workers' comp, but Dubious asserted he (Dubious, the employer) should not be liable. Who wins: a. Shady b. Dubious

A

17. The source for the preemption doctrine—that federal law prevails over conflicting state law-- is: a. the supremacy clause of the U. S. Constitution b. the supremacy clause of the United Nations Charter c. the sovereignty clause of the U. S. Constitution d. the Fourth Amendment of the Bill of Rights e. none of the above

A

19. Can Lasertoy legally restrict the number of retail outlets that sell its products? a. yes b. no

A

38. Which is true about the employment-at-will doctrine: a. it is a development of common (as opposed to statutory) law. b. it is almost never considered valid under modern law. c. it is so firmly established that it has almost no exceptions. d. it applies only to salaried (as opposed to hourly) employees. e. two are true.

A

40. Can Lasertoy legally restrict the number of retail outlets that sell its products? a. yes, this would be ok as legitimate territorial division b. no, this is impermissible territorial restriction in violation of the Sherman Act

A

9. Dubious bought some canned ham at Megastore and made deviled ham sandwiches which he took to a potluck party. At the party Dudette ate two such tasty tidbits and got sick because the ham was tainted. Under which theory is Dudette least likely to recover for her hospital expenses: a. breach of warranty. b. negligence. c. strict liability d. all three are good causes of action for Dudette.

A

33. Dubious, involved in a car wreck, was taken unconscious to a hospital by Acme Ambulance. Later Dubious refused to pay the ambulance bill because, he said, he wouldn't have used that ambulance service were he conscious, he would have used the service he owned. Does he have to pay the ambulance bill since he never agreed to having Acme transport him to the hospital? a. No, there was no reality of consent. b. No, he was unable to accept any offer therefore never contracted. c. Yes, promissory estoppel creates a contract. d. Yes, because the ambulance service is probably a charitable corporation. e. None of these.

E

39. Lasertoy develops a video game that plays in three dimensions (actually the player is shrunk down to about 2 inches and steps into the screen); this marvelous device depends upon Lasertoys special magneto reduction ray. Sally Silicon is required to sign this agreement when she takes a job as Lasertoy's director of sales; "I promise not to manufacture any devices which rely upon magneto reducto rays based on Lasertoy's design for three years after I leave its employment." Disregarding patent laws, what law is this contract in violation of? a. Sherman b. Clayton c. FICA d. Robinson-Patman e. None

E

43. Which legal theory is based on the idea that the law exists to support the interests of the party or social class that forms it, so that the new law becomes merely a collection of beliefs and prejudices that legitimize the injustices of society? a. natural law theory b. sociological law theory c. positive law theory d. recondite law theory e. critical legal studies theory

E

46. Which is true? i. The Constitution specifically provides that the Supreme Court "shall have the power to declare acts of Congress unconstitutional" ii. Bill Clinton v. New York City held that the president could not withhold evidence from a court of law. iii. If the Bill of Rights prohibits Congress from taking certain action, that prohibition cannot be subject to exceptions iv. The Supreme Court has held that the words "In God We Trust" on our coins our a violation of the First Amendment's Establishment Clause v. If the police take evidence in violation of the Fourth Amendment, the aggrieved party's only recourse is to sue the police

E

49. A "summary judgment" is appropriate when a. There is no law on the subject at hand - a case of "first impression" b. The parties have settled the case and want a court to confirm the settlement c. A case is returned to the trial court with remand instructions from the appeals court d. There are arguments about whether the trial court applied the right law e. There is no dispute about the facts, only about the law to be applied

E

14. Which of the answers just above is the correct for the damages awarded to pay for the $1000 damages to the interior of the house? a b c d e

B

25. Which implied warranty is automatically made by a merchant seller (unless disclaimed)? a. of fitness for a particular use b. of merchantability c. of limitation d. of discharge e. none of these

B

32. One of Dubious' salesmen, Shady, entertained clients at Rebecca's Restau¬rant, an expensive place. Dubious told Shady not to go there anymore, and--if he did--he would be personally liable for the bill. Dubious also called Rebecca and told her. Rebecca, however, forgot to inform her staff. Shady came in a week later for a business lunch and charged it to Dubious' ac¬count. Who will ultimately have to pay for (or bear the cost of) the meal? a. Dubious. b. Shady. c. Rebecca.

B

36. Rodney Thermal took his 2002 Muscle Mark VII Turboturgid to Dubious' shop for brake work. Dubious' employee Shady didn't do the job properly. When At a busy intersection Rodney's brakes failed and the car crashed into Mrs. Ace's car. Mrs. Ace--slightly injured--was hurrying home to tend to her prize-winning mare, just in the process of foaling (giving birth to a baby horse). The foal died due to complications that would have been avoided had Mrs. Ace been in the foaling barn. She sues Dubious for all the damages. Will she recover damages for the death of the foal? a. yes b. no

B

37. Dubious wanted to expand his used car lot and applied for a rezone. He was required to have an EIS prepared. The EIS indicated that significant damage would be done to a wetland on the property if the car lot were approved. The city council still voted to allow the rezone. Concerned neighbors contemplated suing. Has the city council misused the EIS and its associate law (SEPA)? a. yes. b. no.

B

4. Of the following federal constitutional rights, which is/are afforded to private persons and not to business, or only limitedly to businesses? i. freedom of speech and press. ii. privilege against self-incrimination. iii. freedom from unwarranted searches and seizures. iv. compensation for the taking of property (eminent domain). v. procedural due process. a. i and iii. b. i, ii, and iii. c. ii, iv, and v. d. iii only. e. iv and v

B

44. Which of the following is, effectively, the international equivalent of common law? a. treaties b. international custom c. resolutions adopted by the United Nations d. teachings of legal scholars e. judgments of the International Criminal Court

B

45. Law made by the local legislature (city council) is called what? a. a statute b. an ordinance c. a case d. a regulation e. an administrative order

B

50. Administrative agencies often have quasi-judicial divisions with the authority to levy fines for violation of administrative regulation. If the defendant requests, must the agency use juries in determining whether a violation has occurred? a. Yes b. No

B

51. If a case is "remanded" by a court of appeals that means a. The trial court applied the wrong law b. The trial court found facts incorrectly c. The decision of the trial court is determined to be "an allowable choice." d. It has been determined that the first effort resulted in a mistrial e. None of these

B

52. Dubious' salesman, Shady, regularly entertained clients at Rudy's Restaurant, an expensive place. Dubious told him, "Don't go there anymore, if you do, you'll pay the bill yourself." Dubious made a note to himself to call Rudy and tell him this, but forgot. Shady lunched at Rudy's Restaurant a week later on a business deal and charged it to Dubious' account. Which is the best answer: a. Dubious must pay the bill b. Dubious must pay, but Shady must reimburse him c. Rudy's restaurant will have to suffer a loss on this one d. Shady must pay, Dubious is not liable e. No one is liable

B

55. The key characteristic of a "servant" (employee) is that a. She is paid an hourly rate as contrasted with payment of a salary b. Her physical conduct is controlled or subject to control by the employer c. She is precluded from making contracts for her employer d. She lacks apparent authority to bind the employer e. None

B

57. The "employment-at-will doctrine" is no longer a valid theory in the United States. T F

B

6. Which is/are true: i. arbitration effectively forces a decision upon the parties to the dispute. ii. only corporations or corporate-like entities (limited liability companies, limited partnerships, etc.) can issue securities. iii. if the high court of the relevant jurisdiction interprets a statute in a way contrary to the intentions of the legislature, the legislature cannot amend the statute. iv. the criminal equivalent of the "complaint" is the "indictment." v. the defendant in a criminal case must rebut the prosecutor=s case to prevail. a. i only b. i. and iv. c. ii, iii, and v. d. iv and v. e. iv only.

B

12. Which is/are true: i. A partnership is only effective after the state has issued the certificate of partnership following filing and paying an application fee. ii. As a general rule, only managing partners have a right to participate in the management of the partnership business. iii. It is possible that a non partner could be treated by the courts as though he were a partner. iv. The primary disadvantage to the partnership form is the inconvenience of creating it. v. The Statute of Frauds defines what contracts must be in writing to be enforceable. a. ii and iii are true b. i, ii, and iii are true c. ii and v are true d. iii and v are true. e. all of them are true

D

15. Which area of tort law is not based on fault? a. intentional tort b. negligence c. contributory negligence d. strict liability e. comparative negligence

D

21. The purpose of the EIS is to provide full disclosure about the environmental effects and risks of development. The purpose of the __________________________ is to provide full disclosure about the investment effects and risks of a security offering. a. investment impact statement b. APR disclosure c. Truth in Lending Act d. prospectus e. Fair Labeling Act

D

31. Administrative agencies almost always end up serving the very interests they were intended to protect the public against (and then the pendulum swings back again). This is called: a. expert redelivery b. the revolving door c. unethical behavior d. capture e. "Murphy's Law" regarding adminstrations

D

42. Which type of law has the highest burden of proof? a. administrative b. civil c. constitutional d. criminal e. substantive

D

47. The mechanism by which the Bill of Rights has been effectively "incorporated against the states" by the US Supreme Court is: a. The Supremacy Clause b. The Full Faith and Credit Clause c. The doctrine of comity d. The 14th Amendment's due process clause e. The affidavit effect

D

48. Which statement best describes how regulatory agencies are restricted in the adoption of specific regulations? a. Regulations must be approved by the executive b. Agencies must demonstrate that the benefit of the regulation exceed its costs c. Businesses subject to the regulation must be given 1 year notice before the regulation becomes effective d. Regulations must be consistent with the standards established in the enabling statute e. None of these

D

53. Which of the following is not most typically a remedy for breach of contract? a. Rescission b. Injunction c. Compensatory damages d. Punitive damages e. Consequential damages

D

56. Acme contracted to repair, by June 1, a machine used by Dubious in his automobile repair business. Acme was aware that delay would require Dubious to close down a significant part of the business. Acme failed to complete the repairs until June 18 and Dubious suffered a loss of $1,500 in business profits because of the shutdown. Dubious is entitled to: i. Specific performance ii. Punitive damages iii. Consequential damages iv. Rescission v. Compensatory damages a. i b. i and ii c. iii and iv d. iii and v e. iv

D

58. To observe that the common law provides no "prophylactic effect" is to say common law a. Originally provided no non-monetary remedies b. Does not deal with anything other than contracts affecting real estate and services c. Has no mechanism to force a person to stop doing what she should not do d. Cannot provide relief for a plaintiff until after the harm has been suffered and damage done e. In some cases denies a person a right to appeal from an adverse lower court decision

D

60. When we speak of firms' "externalizing the costs of production," what does that mean? a. Management gets the costs of production accurately assessed so the price can be set right b. Costs of production are set by outside forces - usually competition c. The government has regulated more or less of the firm's expenses d. Costs of production are thrust upon the public for it to bear, and profits are taken in as such e. The firm pays out dividends in excess of its immediate profit, drawing upon reserve cash

D

8. Insider trading is regulated by which law? a. the UCC b. the Federal Trade Commission Act c. the Truth in Lending Act d. the Securities and Exchange Act e. none of these

D

26. If the high court of the relevant jurisdiction interprets a statute in a way contrary to the intentions of the legislature, the legislature cannot amend the statute. T F

FALSE

27. Discovery is the term used to describe a party's request that the court compel a witness to attend a trial. T F

FALSE

30. The Commerce Clause prohibits the states from imposing burdens on interstate commerce. T F

FALSE

5. States may not adopt laws that burden interstate commerce. T F

FALSE

54. If a corporation is created to insulate its owners from person liability beyond their contributions, a court will "pierce the corporate veil" and hold these people personally liable for obligations to their creditors because what they have done is considered a fraud on creditors. T F

FALSE

61. Shady, an employee of Dubious', was horsing around on the job, doing something Dubious had told him not to do, and Shady got hurt. Dubious is not liable. T F

FALSE

24. An employer's policy of hiring only U.S. citizens is not a violation of the '64 Civil Rights Act as discrimination based on national origin. T F

TRUE

29. A criminal not guilty verdict requires a unanimous vote by the jury. T F

TRUE

35. "Contract law" is primarily judge-made (common law). T F

TRUE

2. The common law consists, among other things, of the extant body of judicial decisions that interpret the meaning of legislation. T F

True

18. Lasertoy developed a video game that played in three dimensions (actually the player was shrunk down to about 2 inches and stepped into the screen); this marvelous device depended upon Lasertoy's special magneto reduction ray. Sally Silicon was required to sign this agreement when she took a job as Lasertoy's director of sales; "I promise not to manufacture any devices that rely upon magneto reducto rays based on Lasertoy's design for three years after I leave its employment." Which is most relevant to this problem? a. the Rule of Reason b. per-se illegal

the person just put a ? so idk