Bus Law Final

question

Cordial Drinks Inc. markets alcoholic beverages. A federal regulation bans the disclosure of the alcohol content of liquor on Cordial’s labels and those of other marketers. A court would likely hold this regulation to be a) justified by the need to protect individual rights b) constitutional under the first amendment c) an unconstitutional restriction of speech d) necessary to protect national interests
answer

c) an unconstitutional restriction of speech
question

In Restful Motel’s suit against Sleepy Hotels, the jury returns a verdict in Restful’s favor. Sleepy files a motion stating that even if the evidence is viewed in the light most favorable to Restful, a reasonable jury should not have found in its favor. This is a motion for a) a judgment on the pleadings b) a judgment in accordance with the verdict c) a new trial d) judgment n.o.v
answer

d) judgment n.o.v
question

Jeri is indicted. Before she is arrested, she confesses to the crime in a conversation with Kelly, the arresting officer. Kelly then arrests Jeri and advises her of the right to counsel. Later, Jeri claims that her statement should be excluded as evidence from her trial. The statement will most likely be a) admitted because Jeri made it before being advised of her rights. b) excluded because it was elicited before Jeri was advised of her rights c) excluded because a confession is not admissible in a criminal trial d) admitted because Jeri knew she did the crime and confessed
answer

b) excluded because it was elicited before Jeri was advised of her rights
question

In studying the legal environment of business, Professor Dooley’s students also review ethics in a business context. Ethics includes the study of what constitutes a) financially rewarding behavior b) legal behavior c) fair or just behavior d) religious behavior
answer

c) fair or just behavior
question

The Securities Exchange Commission is an administrative agency. The chief purpose of such agencies is to a) impose uniform laws on the states b) act as liaisons between federal and state governments c) perform specific government functions d) standardize laws for the executive and judicial branches
answer

c) perform specific government functions
question

Edie files a suit against Frank. If this suit is like most cases, t will be a) dismissed during a trial b) resolved only after a trial c) dismissed or settled before trial d) settled at trial
answer

c) dismissed or settled before trial
question

Ross emails Super Snowboard Company’s marketing campaign to Winter Sports Corporation. Super’s competitor, without its permission. This is a) patent infringement b) copyright infringement c) a theft of trade secrets d) trademark infringement
answer

c) theft of trade secrets
question

Mariah takes off her ring and places it on her desk while she works. Without her knowledge or consent, her coworker Nita picks up the ring, puts it on, and walks away. Nita has likely committed a) forgery b) no crime c) burglary d) larceny
answer

d) larceny
question

Copy Products Inc uses, in its ads, a trademark similar, but not identical, to the famous registered mark of Imitated Goods Inc. Copy’s unauthorized use of the mark constitutes trademark dilution provided a) Copy’s use of reduces the value of Imitated’s mark b) Copy’s use is international c) Copy and Imitated are competitors d) consumers are confused
answer

a) Copy’s use reduces the value of Imitated’s mark
question

To prepare for a trial between Large Lots Development Corporation and MiniMansion Construction Company, MMCC’s attorney places LLDC’s president under oath. A court reporter makes a record of the attorney’s questions and the officer’s answers. This is a) a deposition b) an imposition c) a cross-examination d) an interrogatory
answer

a) a deposition
question

A common ethical dilemma faced by the management of General Holdings Corporation involves the effect that its decision will have on a) the firm’s competitors b) the government c) the US Chamber of Commerce d) one group as opposed to another
answer

c) one group as opposed to another
question

Ric designs a new computer hard drive, which he names “Sci Phi”. He also writes the operating manual to be included with each final product. Rick could obtain patent protection for a) the operating manual b) the name c) the hard drive d) the “newness” of the hard drive
answer

c) the hard drive
question

In Sales Distribution Corp vs. Consumer Products Co, the court decides that a precedent is incorrect or inapplicable. The court a) must ask a higher court to rule on the case b) must apply the precedent c) must refuse to decide the case d) may rule contrary to the precedent
answer

d) may rule contrary to the precedent
question

Mae is granted immunity after she agrees to testify about a crime. Mae has an absolute privilege against self-incrimination and a) cannot be prosecuted for any crime b) can be prosecuted only for a crime about which she agreed to testify c) cannot refuse to testify on Fifth Amendment grounds d) can refuse to testify on Fifth Amendment grounds
answer

c) cannot refuse to testify on Fifth Amendment grounds
question

Modern Clothing and National Denim Corp use the mark “Made by Menbers of the US Textile Workers Union” on the tags of their products to indicate the participation of the union in the manufacture. Modern and National are not in business together and do not own this mark. This mark is a) a certification mark b) a service mark c) a collective mark d) trade dress
answer

c) a collective mark
question

Flexo Trucking Company transports hazardous waste. Gary is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water source, forcing the residents to move away. Glaxo acted unethically liable because a) Garn exceeded the federal time limit b) harm was caused by an unfortunate incident c) Hill City should have better protected its water source d) Flexo showed reckless disregard for Hill City’s residents and others
answer

d) Flexo showed reckless disregard for Hill City’s residents and others
question

Liz trespasses on Mega Corporation’s property. Through the use of reasonable force, Mega’s security guard Ned detains Liz until the police arrive. Mega is liable for a) intentional infliction of emotional distress. b) false imprisonment c) assault and battery d) none of these
answer

d) none of these
question

Frank slips and falls on Guy’s Harbor Tour Boat and is injured. Frank files a suit against Guy’s for $500,000. If Frank is 20% at fault and Guy’s is 80% at fault, under the “50% Rule” comparative negligence principles, Frank would recover a) $250,000 b) $500,000 c) $0 d) $400,000
answer

d) $400,000
question

National Consumer Goods Corporation and Paula Purchaser agree to resolve their dispute in arbitration. The arbitrator’s decision is called a) a conclusion of law b) a verdict c) an award d) finding of fact
answer

c) an award
question

Cathy uses, on her new recording Drive By, the exact note-for-note melody of a song written by Earl without his permission. This is a) a theft of trade secrets b) copyright infringement c) patent infringement d) trademark infringement
answer

b) copyright infringement
question

MaxiMart is a discount retailer. MaxiMart’s customer service employees are on strike. Sixty of the workers block the entrances to one of MaxiMart’s stores. To get them away from the doors, MaxiMart should seek a) an injunction b) damages c) specific performance d) recission
answer

a) an injunction
question

Bailey, the president of Carmichael Commodities Company, claims that certain actions by the federal government and by the State of Delaware infringe on rights guaranteed by the Bill of Rights. All of these rights limit a) Delaware only b) neither Delaware nor the federal government c) Delaware and the federal government d) the federal government only
answer

d) the federal government only
question

The process behind the production of “Fast Pace”, a racecar video game, is protected by a) copyright law b) trademark law c) trade secrets law d) patent law
answer

c) trade secrets law
question

The graphics used in “Go!”, a handheld video game featuring race cars, are protected by a) trademark law b) copyright law c) patent law d) trade secrets law
answer

b) copyright law
question

Standard Corporation cannot claim a trademark the phrase “Quality is Standard” if the phrase a) has a secondary meaning b) is generic c) is descriptive d) means nothing
answer

b) is generic
question

Jo files a suit against Lara in a Missouri state court. Lara’s only connection to Missouri is an ad on the web originating in Nebraska. For Missouri to exercise jurisdiction, the issue is whether Lara, through her ad, has a) commercial cyber presence in Missouri b) conducted substantial business with Missouri residents c) solicited virtual business in Missouri d) general maximum contact with Missouri
answer

b) conducted substantial business with Missouri residents
question

Quality Products Inc. files a suit against Retail Sales Corporation. Sid is a witness for Quality. Tod is a witness for Retail. Quality may direct interrogatories to a) Retail, Sid, or Tod b) Sid or Tod only c) Sid only d) Retail only
answer

d) Retail only
question

Trek Transport Company uses a mark associated with its name to distinguish its serves from those of other trucking firms. This mark is a) certification mark b) collective mark c) service mark d) trade dress
answer

c) service mark
question

Ike pushes Joan, who falls and breaks her arm. Ike is liable for the injury a) only if Ike had a bad motive for pushing Joan b) only if Ike intended to break Joan’s arm c) only if Ike did not intend to break Joan’s arm d) if Ike intended to push Joan
answer

d) if Ike intended to push Joan
question

Bruno is a businessperson with investments in legal an illegal operations. Bruno may be subject to penalties under RICO a) only in a case involving organized crime b) for making an unprofitable, but legal, investment c) for the commission of any business fraud d) only in a case involving a racket
answer

c) for the commission of any business fraud
question

Whether contact is offensive or not is determined by the ______________ person standard. _____________ is any _______________ or action intended to make another person fearful of _________________ physical harm; a reasonably believable threat. Battery is unprivileged, intentional _____________ of another.
answer

reasonable, assault, word, immediate, touching
question

Five methods of alternative dispute resolution
answer

negotiation mediation arbitration summary jury trials mini trial
question

Jurisdiction is the power to hear and decide a case. Before a court can hear a case, it must have jurisdiction over in personal or in rem and the ____________ matter of the case. Power over the _____________ is referred to as in personal jurisdiction; power over _______________ is referred to as in rem jurisdiction. When both state and federal courts have the power to hear a case, ______________ jurisdiction exists. When a case can be heard only in federal courts or only in state courts, _________________ jurisdiction exists.
answer

subject, person, property, concurrent, exclusive
question

The trial begins with the attorneys’ _____________ statements. These statements concern ____________ that they expect to prove during the trial. Because the plaintiff has the burden of proving his or her case, the plaintiff’s attorney calls and examines the first witness. This is called direct examination. The defendant’s attorney then cross-examines the same witness, after which there is an opportunity for redirect and recross-examinations. In a jury trial, after the plaintiff’s case has been presented, the defendant can move for a ________________ verdict, which the judge grants if he or she believes that the jury could not find for the plaintiff. If this motion is ____________, the defendant’s attorney presents the dependent’s case in a rebuttal, ad the defendant’s attorney can meet that evidence in a rejoinder. After both sides have rested, the attorneys present their ________________ arguments, the jury is instructed in the law that applies to the case, and the jury retires to consider a verdict.
answer

opening, facts, directed, denied, closing
question

Three friends are bored in their apartment on eight. John and Tom decide to arm wrestle and Tom hurts his arm quite badly. While Tom is nursing his hurt arm and John is gloating, Ned (the third roommate) has decided to build a loft and comes into the room with a six foot long board and without knowing it and while Tom is looking the other way hits Tom in the head with the board. John is now laughing to the point of crying and then he recovers he yells at the top of his lungs what a “wimp” Tom is. Tom is rubbing his head with his injured arm and calls you on his cell phone. Tom wants to discuss suing John and Ned for assault, battery, and negligence and suing John for libel. Thoroughly discuss with Tom what elements are missing, if any, for each and what defenses may be raised by John and Ned and other possibilities for resolution Tom may have.
answer

John and Tom reached an agreement to arm wrestle, meaning both parties assumed the risk involved. Because both parties knowingly agreed, the case for assault or battery. When Ned hit Tom with a board, he did so unintentionally and Tom wasn’t looking. There was no assault because Tom was unaware the board would hit him. There was no battery because it was unintentional. While Tom may have an argument for negligence, it is weak at best because there was no real injury. Libel is only an option if it was written or recorded. Tom’s case would be for slander and as that comment was John’s opinion, he has no case. Tom would be able to use negotiation, arbitration, mediation, or other forms of ADR if he wants to move forward.
question

Your friend Matt has received some bad legal advice about product he has invented. Here is what his lawyer told him: “Matt, if you patent your invention with a utility patent then that means that you have right to make that product for the next 20 years from date of filing, but you can wait to file for a couple of years. Of course, you may just want to copyright your written expression of your idea, but it is really expensive to register your copyright and it only lasts until you die. Once you want to sell your product we must file a trademark or you won’t have any protection. I suggest that you pick a name and some artwork that is as close to a famous mark as you can, that way people will by your product by mistake. The main point of a trademark is to increase your sales. These are all your choices in intellectual property.”
answer

Patents do last for twenty years, but they allow you to sell your product. Trademarks are not specifically designed for that purpose. Copyright laws are not expensive to register and they last for the life of the inventor plus seventy years. Do not wait a couple of years to file patent because the America Invents Act has a first to file rule. If someone files the patent before you, they get the patent. Do not choose a trademark to a famous one. That can lead to trademark dilution and customer confusion.
question

Avatar Inc. and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling’s promise to pay. Avatar delivers. The contract is a) executory b) executed c) executive d) voidable
answer

a) executory
question

Craft Engineering contracts for a sale of technical instruments to Detail Design. Before the date on which performance is due, Craft notifies Detail that it will not perform. This is a) perfect tender b) anticipatory repudiation c) rejection of performance d) revocation of acceptance
answer

b) anticipatory repudiation
question

Eli obtains a consumer loan from First State Bank at an interest rate that exceeds the state’s maximum. First State has a) engaged in a restraint of trade b) calculated the optimum rate that the market will bear c) underestimate the risk of the loan’s nonpayment d) violated the usury laws
answer

d) violated the usury laws
question

Earl holds 1,000 lbs of perishable fruit in storage for Fresh Food Corp. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers. This sale represents a) specific performance b) a mitigation of damages c) recession and restitution d) breach of contract
answer

mitigation of damages
question

BBQ Inc makes and sells grills to Grill Mart, a retailer, which sells one of the grills to Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on consequential damages for personal injuries arising from a breach of warranty. This prima facie unconscionable with respect to a) all of these parties b) BBQ and Grill Mart but not Hope c) Hope only d) none of these
answer

c) Hope only
question

Hillside Homes and Ideal Builders enter into a construction contract that includes six pages of detailed calculations. Later Hillside, whose project manager compiled the figures, discovers that some numbers were multiplied incorrectly, but Ideal refuses to make changes. A court would most likely a) allow the parties to rescind the contract b) enforce the contract without requiring changes c) award damages to Hillside for the mistakes d) award damages to Ideal for the mistakes
answer

a) allow the parties to rescind the contract
question

Ralph offers to sell Sophie, who is seventeen years of age, a car about which Ralph intentionally misrepresents several material facts. In reliance on the misrepresentations, Sophie buys the car. To prove fraud in this transaction, Sophie would have to show that a) Sophie is under eighteen years of age b) Sophie does not know anything about cars c) Ralph made statements that were obviously exaggerated d) Ralph intentionally deceived Sophie
answer

d) Ralph intentionally deceived Sophie
question

Moore Properties offers in writing to sell to Lawn Acres Development Coporation a certain half-acre of land for $112,000. After Lawn Acres signs the offer in acceptance and returns it, Moore discovers that the price should have bene stated as $121,000. The effect of Moore’s misstatement of the price will most likely fall on
answer

d) Moore only
question

GR8 Marketing Company and Hot Tunes sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8 and Hot have a) an executed contract b) a quasi contract c) an implied-in-fact contract d) express contract
answer

d) express contract
question

Citrus Groves contracts with four food companies to sell its entire crop of oranges. When half of the crop is lost to an unexpected insect infestation, Citrus must a) breach some of its contracts b) substitute other fruit for the oranges c) buy elsewhere as many oranges as needed to satisfy its contracts d) apportion its surviving crop fairly among its customers
answer

d) apportion its surviving crop fairly among its customers
question

Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bushels of apples. When ba weather destroys arden Orchard’s apple crop, Haruko’s obligation to deliver apples to Fresh Produce is a) not affected b) breached c) suspended d) discharged
answer

d) discharged
question

Pharma Company, Oral Meds Corporation, and Narco are drug makers. Medico Company and Lab Source are drug distributors. Ina suit against all of these parties in which market-share liability is imposed, most likely to be liable are a) neither distributors or manufacturers b) distributors and the manufacturers c) manufacturers only d) distributors only
answer

b) distributors or manufacturers
question

Uri sells 100 cases of vitamins to Wanda, but before she takes physical possession, the cases are lost. Under the UCC, the parties’ rights and obligations with respect to the loss depend on the concept of a) risk of loss b) physical possession c) product liability d) title
answer

a) risk of loss
question

A specific grade of corn that fills BioFuel Cooperative’s silo is fungible. This means that the corn is a) alike naturally or by agreement or trade usage b) fundamentally different c) perishable d) fundamentally edible
answer

a) alike naturally or by agreement or trade usage
question

Mikayla enters into a contract with Logan to provide surface material for Mikayla’s tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is a) intended to quickly provide cash to the non breaching party b) a reasonable estimate of the loss on a breach c) designed to penalize the breaching party d) an excessive estimate of the loss on a breach
answer

b) a reasonable estimate of the loss on a breach
question

International Gem Corporation agrees to sell Jewel Outlets, fifty new diamonds, but the contract does not specify a place of delivery. JOI is expected to pick up the goods. The place of delivery is a) the Annual Gems and Jewels Convention b) the US Postal Service office nearest to JOI’s place of business c) International’s place of business d) JOI’s place of business
answer

c) International’s place of business
question

Diners Cafe orders five gallons of trans fat free cooking oil from Restaurant Supply. The seller mistakenly ships the wrong oil, which the buyer keeps, despite the nonconformity. The oil is destroyed in a kitchen fire. The loss is suffered by a) Restaurant Supply only b) Diners only c) Diners and Restaurant Supply, but not Diners customers d) Diners, Restaurant Supply, and Diners customers
answer

b) Diners only
question

VuTech company agrees to sell digital video equipment to Home an dBusiness Stores for Home and Business to market to its customers. Their contract will not be enforceable unless it includes a) the requirements of Home and Business’s customers b) the duration of the deal c) the quantity of the goods d) the price of the goods
answer

c) quantity of the goods
question

Cheesy Pizza Company contracts to sell 1000 cases of frozen pizzas to Roller Rinks but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rink’s right to recover the goods from Cheesy is the right of a) cure b) replevin c) cover d) specific performance
answer

b) replevin
question

Alaskan salmon that fill the hold of Bill and Carla’s fishing boat are fungible if the salmon are a) alike naturally or by agreement or trade usage b) fun, good, edible c) liable to deteriorate over time d) fundamentally different
answer

a) alike naturally or by agreement or trade usage
question

Cold Stuf Inc makes snowboards, which it sells to Deep Freeze Sports. DFS sells Cold Stuf boards to consumers, including Ed. Ed is injured while using the board. In a product liability suit based on strict liability, Ed may recover from a) DFS only b) no one c) Cold Stuf only d) Cold Stuf or DFS
answer

d) Cold Stuf or DFS
question

Webzine Retail Sales Inc promises its salaried employees a bonus at the end of the year if management thinks it is warranted. This promise is a) unenforceable because the employees are paid salaries b) enforceable c) unenforceable because it is not supported by consideration d) unenforceable because the dollar amount is missing
answer

c) unenforceable because it is not supported by consideration
question

Over the course of a year, Retail Marketers sells goods from its inventory and one of its warehouses. In exchange, Retail receives checks and other items that substitute for cash, which Retail uses to repay a loan from Savings Bank. Article 2 of the UCC governs a) repayment of the loan b) sale of the goods c) sale of the buildings d) the checks
answer

b) sale of the goods
question

Cole drives into Dino’s Service Station and asks Erin, the attendant, to fill the tank in Cole’s hybrid vehicle. After Erin fils the tank, but before Cole pays for the gas, any contract between Cole and Dino’s is a) executed b) executory c) unenforceable d) quasi
answer

b) executory
question

Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent but in fact they are not. Grover is still willing to sell the land but under these circumstances the deal would adversely affect Hank. Because of the parties’ belief about the adjacency of the property, their contract is a) unenforceable b) voidable c) unavoidable d) unconscionable
answer

b) voidable
question

Vehicle Leasing Agency and Wander Trucking Company enter in to a contract for a lease of eight cargo vans. VLA delivers eight vans, but they are not cargo sized. Wander a) can reject the entire shipment b) must accept the entire shipment C) cannot reject the entire shipment d) must reject the entire shipment
answer

a) can reject the entire shipment
question

Ira orally agrees to buy a unique collection of sports memorabilia for $1000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship to Ira the collection. Ira should seek a) recession b) specific performance c) damages d) reformation
answer

b) specific performance
question

Business Rental Corp and Cartage Trucking enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that a) substantially conform to the contract in most details b) approximately conform to all of the details of the contract c) entirely conform to the contract except in one or two details d) exactly conform to the contract in every detail
answer

d) exactly conform to the contract in every detail
question

Compensatory Damages: Damages that compensate the non-breaching party for the injuries or _____________ actually sustained as a result of the breach. Incidental damages: expenses or costs that are caused by the breach of contract, such as the costs incurred in obtaining _________ from another source. Consequential damages: damages resulting __________ from breach, which are reasonable foreseeable to the breaching party at the time the breach occurred. Punitive damages: damages designed to punish a wrongdoer and deter similar conduct in the future. such damages are generally ______ recoverable in a breach of contract action unless the breaching party actions give rise to a separate tort claim. Nominal damages; damages awarded to the non-breaching party when only _________ injury occurred resulting in no actual damages
answer

losses, ______, indirectly, not, _______
question

If the seller refuses to deliver the goods to the buyer, the buyer may a) cancel the contract b) if she has made partial or full payment for ___________ goods in the possession of an insolvent seller, obtain the goods by tendering to the seller ay remaining balance c) if the good are unique and any legal remedy will be inadequate, require the seller to ____________ perform the contract by tendering the identified goods to the buyer. d) in good faith and without unreasonable delay, purchase or lease __________ goods from a third party and sue to recover from the seller any difference between the contract price and the price of the replacement goods, plus any incidental and consequential damages, less any costs saved by the breach. e) if the buyer can show the the is unable after reasonable effort to obtain cover for the goods, __________ goods subject to the contact or f) sue to recover the difference between the contract price and the __________ market price of the goods (at the time the the buyer learned of the breach) plus incidental and consequential damages, less any cost saved
answer

identified, specifically, substitute, replevy, fair
question

According to your textbook the strict liability requirements for product liability are a) defendant must sell the product in a ________ condition b) defendant must normally be engaged int the ________ of selling that product c) product must be __________ dangerous to the consumer because of its defective condition d) the plaintiff must incur ________ harm to self or property by use or consumption of the product e) the defective condition must be _______ cause of the injury or damage f) the goods must not have been substantially changed form the time the product was sold to the time the injury was sustained
answer

defective, business, unreasonably, physical, _________
question

According to your book, the four requirements of a contract are ______________ ______________ ______________ capacity ______________ Even if all of these elements exist, a contract may be unenforceable if the following requirements are not met: ____________ consent Form
answer

agreement consideration contractual capacity legality
question

Janine was hospitalized with severe abdominal pain and placed in an intensive care unit. Her doctor told the hospital personnel to order around the clock nursing care for Janine. At the hospital’s request, nursing services firm, Nursing Services Unlimited, provided two weeks of in-hospital care and after Janine was sent home, an additional two weeks of at home care. During the at home period of care, Janine was fully aware that she was receiving the benefit of the nursing services. Nursing Service later billed Janine $4000 for services, but Janine refused to pay saying she never contracted for the services, orally or in writing. In view of the fact that no express contract was formed, can Nursing Services recover $4000 from Janine? If so, what legal theories?
answer

Nursing Services could recover the $400 from Janine because she was fully aware she was receiving the benefit of the services and never refused them, creating an implied contract. Quasi contract Nursing services could also seek to recover form the hospital because they ordered the care without Janine’s signature or oral consent.
question

Jason Clark, an experienced hunter, bought a paintball gun. Clark practiced with the gun and knew how to use it. Although Clark was aware that the could purchase protective eyewear, he chose not to. Clark had also taken gun safety courses and understood that it was common sense not to shoot anyone in the face. Clark’s friend, Chris, also owned a paintball gun and was familiar with the gun’s use and risks. Clark, Chris, and their friends played a game that involved shooting paintballs at cars whose occupants also had the guns. One night, while Clark and Chris were cruising with their guns, Chris shot Clark’s car but hit Clark in the eye. Clark filed a product liability lawsuit against the manufacturer of Wright’s paintball gun to recover for the injury. Clark claimed that the gun was defectively designed. During the trial, Chris testified that his gun never malfunctioned. In whose favor should the court rule? why? what is the public policy argument for holding a manufacturer liable for strict product liability?
answer

The court should rule in favor of the manufacturer. Clark and Chris were both knowledgable users who assumed the risk of not wearing safety protection and new that it was common sense to wear it. The paintball gun was not defective when sold and did not malfunction, as stated by Chris. It was not unreasonably dangerous and therefore not the cause of the injury. The public policy argument for holding the manufacturer liable is that they are directly responsible to the quality of the good when sold and are therefore liable for any defects it contains and subsequent injuries sustained.
question

Tom draws a check, on his account in State Bank in New York, payable to Digital Media in San Francisco. Digital deposits the check in its account at First National Bank First National deposits the check in the Federal Reserve Bank of San Francisco, which transfers it to the Federal Reserve Bank of New York. That Federal Reserve Bank sends the check to State Bank. When Digital’s bank received the check, it was required to pass it on a) before midnight of the next banking day b) within five business days c) before noon of the next banking day d) before midnight of the next day, even if it was not a “banking” day
answer

a) before midnight of the next banking day
question

GR8 Products warrants its goods to be free of defects. If Heck issues an instrument to obtain goods from GR8 that prove defective, Heck can avoid paying on the instrument a) under no circumstances b) whether it is a check or note c) only if it is a note d) only if it is a check
answer

b) whether it is a check or note
question

As the beneficiary of a business trust, Kevin’s liability for trust debts and obligations is a) unlimited b) limited to his personal assets c) nothing d) limited to his capitol investment in the trust
answer

c) nothing
question

Hu believes that he is a victim of a form of employment discrimination that falls under Title VII of the Civil Rights Act. Compliance with this statute is monitored by a) employers and businesses, not an administrative agency b) the EEOC c) employees and job applicants, not an administrative agency d) the courts and Congress, not an administrative agency
answer

b) the EEOC
question

QuizBooks LLC is a limited liability company. Like any other LLC, unless QuizBooks chooses otherwise, the firm will be taxed as a) sole proprietorship b) corporation c) partnership d) joint venture
answer

c) partnership
question

Bud approves on behalf of Cody – but without authorization – a contract with Dik to build a new silo. Cody does not ratify the contract. Later, Dik tries to enforce the deal. This attempt will be a) totally successful b) partly unsuccessful c) partly successful d) totally unsuccessful
answer

d) totally unsuccessful
question

Oscar is a Precise Service Company’s chief executive officer. On Precise’s behalf, Oscar solicits business, hires and fires workers, and handles the finances. Precise pays Oscar varying amounts, depending on his “needs”. Oscar is most likely a) an employer b) an employee c) a principal d) an independent contractor
answer

b) an employee
question

Mike loses his National Bank access card. He realizes his loss the next day but waits a week to call National. Meanwhile, Opal finds and uses Mike’s card to withdraw $3000 from Mike’s account. When Mike receives his National statement, he demands that the bank investigate the matter and reaccredit his account. The bank a) has no duty to investigate b) must investigate but need not reaccredit Mike’s account. c) must investigate and immediately reaccredit Mike’s account (at least until the dispute is resolved) d) must investigate and, if the dispute is not resolved within ten days, reaccredit Mike’s account (at least until the dispute is resolved)
answer

d) must investigate and, if the dispute is not resolved within ten days, reaccredit Mike’s account (at least until the dispute is resolved)
question

Riki files an employment, gender based discrimination suit against Superior Corporation under Title VII, on a disparate-impact theory. To succeed, Riki must show that Superior hires fewer women than the percentage of a) women in Superior’s state b) women who apply to Imperial for work c) qualified women in the local labor market d) qualified women in the United States
answer

c) qualified women in the local labor market
question

Loni delivers her Mazda to be repaired at Nile’s Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is a) an artisan’s lien b) a judicial lien c) a violation of most state’s laws d) a mechanic’s lien
answer

a) an artisan’s lien
question

China Bank is a foreign entity – a firm owned and operated by investors in a foreign country. With respect to an LLC in the US, China Bank can a) act as a creditor but cannot invest or participate b) not become a member but otherwise participate c) become a member d) not become a member but participate in operations
answer

c) become a member
question

Kit, manager of Long Term Care Company’s office in Metro City, decides to replace the office’s male employees with females. Mia, an assistant manager transferred from a different Long Term Care office, refuses to cooperate. Kit retaliates against Nia, who quits. Within a year, the male employees also quit. Kit’s conduct is most likely a violation of a) Title VII of the Civil Rights Act b) no law c) the Americans with Disabilities Act d) the Age Discrimination in Employment Act
answer

a) Title VII of the Civil Rights Act
question

Kit, manager of Long Term Care Company’s office in Metro City, decides to replace the office’s male employees with females. Mia, an assistant manager transferred from a different Long Term Care office, refuses to cooperate. Kit retaliates against Nia, who quits. Within a year, the male employees also quit. Liability for Kit’s conduct most likely rests with a) Long Term Care, which should have known, and Kit, who acted b) Long Term Care male employees, who should have acted themselves c) Nia, who did not cooperate d) no one, because no law was violated
answer

a) Long Term Care, which should have known, and Kit, who acted
question

USA Oil signs an instrument that states it is being executed “in accord with a contract for the purchase of 4,000 barrels of oil dated May 1. This instrument is a) negotiable b) nonnegotiable because the terms of the sale are not clear c) nonnegotiable because the information about the sale must be obtained from another source d) nonnegotiable because it states an express condition to payment
answer

a) negotiable
question

EZ Credit Company signs an instrument payable to the order of Flem that states, “The maker of this note at the date of maturity, May 1, 2013, can extend the time of payment, but for no more than a reasonable time.” This instrument is a) nonnegotiable, because it is payable to a specific payee b) nonnegotiable because it is not payable within a definite time c) nonnegotiable because it includes na extension clause d) negotiable
answer

a) nonnegotiable because it is payable to a specific payee
question

Jay is a surety for Karen’s loan from Little Bank. Jay’s right to be repaid by Karen after having paid her debt is the right of a) subrogation b) redemption c) contribution d) reimbursement
answer

d) reimbursement
question

Computer World, after repossessing a multimedia system from Dave, a consumer, decides to keep the system instead of reselling it. CW sends written notice to Dave. CW can now keep the system a) unless Dave objects b) only after attempting an unsuccessful public sale of the system c) under any circumstances d) only after notifying any other appropriate secured party
answer

a) unless Dave objects
question

Pat, the manager of Quik Mart, deposits the store’s receipts in its account at Regional Bank. As to the receipts, the relationship between Quik Mart and the bank is a) attorney and client b) creditor and debtor c) trustee and beneficiary d) guardian and ward
answer

b) creditor and debtor
question

Elmo files a petition in bankruptcy. If the court concludes that there are grounds for a finding of “substantial abuse” the court will most likely a) discharge Elmo’s debts b) dismiss Elmo’s petition c) distribute Elmo’s property to Elmo’s creditors d) issue an automatic stay against any actions by Elmo’s creditors
answer

b) dismiss Elmo’s petition
question

Hal’s Hardware store defaults on a debt to Intrastate Bank, which takes possession of the collateral securing the debt. Intrastate sells the collateral. The proceeds form the sale are applied first to a) Intrastate’s fees to the sale b) payments Hal’s made on the debt to Intrastate c) Hal’s debts to other creditors d) Hal’s debt to Intrastate
answer

a) Intrastate’s fees for the sale
question

United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is a) constructive discharge b) a business necessity c) a bona fide occupational practice d) reverse discrimination
answer

d) reverse discrimination
question

Pricey Auto Corporation gives notice to Quint that Pricey is terminating their franchise agreement. Winding up the business requires a) returning Pricey’s property b) Quint’s death, disability, or insolvency c) nothing more than closing immediately d) a new franchise agreement
answer

a) returning Pricey’s property
question

Based on Nan’s conduct Odel reasonably believes that Poppy has the authority to act on Nan’s behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has a) express authority b) no authority c) apparent authority d) implied authority
answer

c) apparent authority
question

Jen makes a gift of a check to Kilroy who takes it in good faith and without notice of any claim, defense, or defect. With respect to this check, Kilroy is a) an ordinary holder b) an ordinary check passer c) an extraordinary holder in due course d) an ordinary holder in due course
answer

a) an ordinary holder
question

Unity Production Company is suspected of employing illegal immigrants. The government conducts random compliance audits and other enforcement measures against those who might violate immigration laws through a) the H1B b) the ICE c) the NLRB d) the CIS
answer

b) the ICE
question

To finance the purchase of a car form Giant Auto Sales, Hoppy signs an instrument promising to pay to Ideal Credit Union $18,000 with interest in installments with the final payment due May 15, 2014. To be negotiable, this instrument must include on its face a) any conditions not the sale of the car b) any conditions to the repayment of the loan c) any conditions to the disbursement of the funds d) no conditions
answer

d) no conditions
question

Lita replaces Manny in his job at Neighborly Business Corporation. Manny believes that he has been discriminated against on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply a) all parties must be forty years of age or younger b) Manny must be forty years of age or older c) NBC must have been in existence for at least forty years d) Lita must be forty years of age or older
answer

b) Manny must be forty years of age or older
question

Kip writes a check for $1000 drawn on Local Bank and presents it to Mira. Mira presents the check for payment to Local Bank, which dishonors it. The party most likely liable to Mira is a) neither Kip nor Local Bank b) Kip in a criminal prosecution c) Local Bank in an administrative proceeding d) Kip in a civil suit
answer

d) Kip in a civil suit
question

Seafood Canning Corporation keeps a file of I9 verification forms. To inspect this file, the appropriate government officer should obtain a) not a subpoena, warrant, or the employer consent b) a subpoena, warrant, not both c) employer’s consent d) subpoena and a warrant
answer

a) not subpoena, warrant, or employers consent
question

Money Mortgage Mart makes a short term loan to Natalie to allow her to make a down payment on a new home before selling her current home. This is a) bridge loan b) home equity loan c) equitable loan of redemption d) violation of federal law
answer

a) bridge loan
question

The following criteria are used by the courts to decide whether a worker is categorized as an employee or an independent contractor: a) how much __________ can the employer exercise over the details of the work b) is the worker engaged in an occupation or business __________ from that of the employer c) is the work usually done under the employer’s ___________ or by a specialist without supervision d) does the employer supply the ___________ at the place of work e) for how long is the person employed f) what is the method of payment by time period or at the completion of the job g) what degree of ______ is required of the worker
answer

control, distinct, direction tools, skill
question

Agency relationship may be terminated by an act of the parties or by operation of law. Fill in the missing words for termination by action of the parties a) lapse of ______ b) ______ achieved c) mutual _______ d) ____________ of specified event e) _________ by one party
answer

time, purpose, agreement, occurrence, termination
question

Agency Formation: a) agency by agreement: agency relationship based on express or ___________ agreement that the agent will act for the principal. b) Agency by __________: confirmation by the principal of an actor or contract performed or entered into on her behalf by another, who assumed, without authority, to act as her agent c) agency by ______: if a principal holds out to a third party that another is authorized to act on the principals behalf, and the third party deals with the other person accordingly, the principal may not later deny that the other was the principals agent for purposes of dealing with that third party d) agency by operation of law: agencies recognized by courts – eg, _________ relationships, ____________ situations – in the absence of any formal agreement, confirmation, or act or omission by the principal that implied the agents authority
answer

implied, ratification, estoppel, family, emergency
question

HDC is a holder who by meeting certain acquisition requirements takes the instrument free of most ________ and claims to which the transferor was subject. To be an HDC, a holder just must take the instrument a) for __________ b) in good _________ c) without notice : i – that the instrument is ____________ ii – the instrument has been __________ iii – there is an uncured default iv – the instrument contains an unauthorized signature v – there is a defense against the instrument vi – the instrument is so irregular or incomplete as to call question to its authenticity
answer

defenses, value, faith, overdue, dishonored
question

Muriel Evans writes the following note on the back of an envelope: “I, Muriel Evans, promise to pay Karen Marvin or bearer $100 on demand.” Is this a negotiable instrument? Discuss fully and be sure to address all the requirements for an instrument to be negotiable. What are the primary functions of negotiable instruments?
answer

This is a negotiable instrument. Even though there are no signatures, the terms are clearly stated. For an instrument to be negotiable, it must be in writing, have a signature, have a date, have an amount of money, and be paid to the order of someone. Draw a check. Negotiable instruments are used to take the place of money or credit in a transaction. They can be an order to pay or a promise to pay.
question

Your friend Joe has built up a $25,000 credit card debt along with $20,000 of student loans and just bought a new truck for $23,000. Joe doesn’t have children and lives in a small home while working for a local computer company. Joe says that he isn’t worried about debt; he feels he can just claim bankruptcy and tell his creditors to “stick it”. A personal friend of mine filed for Chapter 11 bankruptcy a few years ago and his debt is now gone, and I’m going to do the same thing! Joe tells you. Let Joe know about what is wrong with his statement and what will likely happen to each of his debts if he files for bankruptcy.
answer

I would tell Joe not to file for Chapter 11 bankruptcy because it’s for corporations and he is filing as an individual. He would file for Chapter 7, but he has job and therefore a steady income, so his means test would show abuse. Joe should file for Chapter 13 bankruptcy because he has a job. His new truck would be sold to pay off his credit card bills. His student loans are non-discharge.

Get instant access to
all materials

Become a Member