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Business law concepts such as Partnership, Arbitration etc.

1. Discovery is part of:
A. Substantive Law
B. General Law
C. Motion Practice
D. Procedural Law

2 "res ipsa loquitor" means"
A. The thing speaks for itself.
B. Assumption of risk.
C. Reasonable person
D. Location of the tort.

3. Bankruptcy matters are only heard in Federal courts.
A. True
B. False

4. Which of the following is not an intentional tort:
A. Libel
B. Trespass
C. Product Liability
D. False Imprisonment

5. The application of a law to someone's actions which were committed before that law came into effect refers to:
A. ex post facto
B. de novo
C. res ipsa loquitor
D. en banc

6. A consumer purchasing an item in reliance on the expertise of someone who regularly deals in the product concerns:
A. Implied warranty of fitness for a particular purpose
B. Implied warrant of merchantability
C. Express warranty
D. Limited warranty

7. The warranty that an item will do what it is supposed to do concerns:
A. Implied warranty of fitness for a particular purpose
B. Implied warrant of merchantability
C. Express warranty
D. Limited warranty

8. A promise made by a seller and on which the buyer bases his decision to buy concerns:
A. Implied warranty of fitness for a particular purpose
B. Implied warrant of merchantability
C. Express warranty
D. Limited warranty

9. The standard for reaching a judgment in a civil matter is:
A. Preponderance of the evidence
B. Majority of the evidence
C. Beyond the shadow of a doubt
D. Beyond a reasonable doubt.

10. All except which of the following can be included in discovery:
A. Production Request.
B. Pleading
C. Deposition
D. Interrogatories

11. A principal may ratify the acts of an agent but not be liable for them
A. True
B. False

12. A contract which will be performed in the future is a:
A. Unilateral contract
B. Executory contract
C. Express contract
D. Quasi contract

13. A contact formed by the court is a:
A. Unilateral contract
B. Executory contract
C. Express contract
D. Quasi contract

14. Negligence requires proof of:
A. The defendant had a duty to behave in a certain manner.
B. The defendant's actions were the proximate cause of damage.
C. Defendant failed to act in the required manner
D. Defendant knew or should have known that his/her actions would cause harm
E. A, B and C.
F. A, C and D
G. B, C and D
H. A, B, C and D
I. A, B and D.

15. The Statute of Frauds concern all except which of the following:
A. Contracts fraudulent on their face.
B. Contracts for the sale of real estate
C. Contracts which cannot be completed within one year
D. Contracts to pay someone else's debt.

16. The Parol Evidence Rule concerns evidence used in a criminal proceeding.
A. True
B. False

17. A principal can use an agent to enter into an agreement which the principal could not legally enter into.
A. True
B. False

18. The protected group as far as age discrimination in employment is concerned starts at the age of:
A. 65
B. 60
C. 50
D. 40

19. "Piercing the corporate veil" refers to:
A. Flow through of taxes.
B. The difference between active and passive investors
C. The listing of a company's offices and directors.
D. Looking to the personal assets of officers for a corporation's debts.

20. "Jurisdiction" refers to:
A. Whether a judge or jury hears the case.
B. Which law applies to a case.
C. Where a case is heard.
D. Cultural differences.

21. Explain the concept of "fiduciary duty" and provide an example of it.

22. Explain the difference between mediation and arbitration.

23. Define "employment at will".

24. Explain the difference between a partnership and a limited partnership.

Solution Preview

1-B
2-A
3-B
4-C
5-A
6-A
7-B
8-C
9-B
10-B
11-B
12-B
13-C
14-E
15-B
16-A
17-B
18-D
19-D
20-C

1. Explain the concept of "fiduciary duty" and provide an example of it.

A fiduciary is a person who occupies a position of trust in relation to someone else such that he is required to act for the latter's benefit within the scope of that relationship. In business or law, it generally means someone with specific duties, such as those that attend a particular profession or role, e.g., investment advisor or trustee.
A fiduciary relationship must also have a dramatic difference in power between the two parties. This differential is often brought about by one party having a great deal more expertise. A fiduciary owes a duty of "utmost good faith".
A fiduciary duty is said to arise "where, as a result of one person's relationship to another, the former is bound to exercise rights and powers in good faith and for the benefit of the latter. A fiduciary relationship has been held to exist in relationships such as a bank and its clients, a lawyer and his or her clients, a doctor and a patient, a trustee and beneficiary, and a director and his or her company.
Generally, the law recognizes three major fiduciary duties:

1. Duty of loyalty, i.e. a fiduciary that voluntarily relinquishes his own self-interest and acts for the benefit of the other party;
2. Duty of care, i.e. a fiduciary must exercise an amount of care appropriate to manage the beneficiary's interest; and
3. Duty of disclosure, i.e. a fiduciary must disclose certain information to the beneficiary.

One can imagine a number of other fiduciary positions that arise from particular kinds of relationships, for example, the relationship between employers and employees, investment managers and investors, parents and children, teachers and students, and so forth.
In each case, there the person who is the fiduciary acts for the benefit of people who have a reasonable basis of placing their trust in them based on the scope of the relationship and the explicit or implicit agreement between the parties as to the terms that govern the relationship.

22. Explain the difference between mediation and arbitration.
Legal disputes can often be resolved without going to court. ...

Solution Summary

This discusses the important business law concepts such as Piercing the corporate veil, Fiduciary duty, Mediation, Arbitration, Employment at will, partnership, limited partnership

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