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Business Law practice exam

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1. Which of the following statements are true?

I. The US Constitution contains many prohibitions against government regulation, and many of these are contained in the Bill of Rights, which consists of the first 10 Amendment to the Constitution.
II. The US Constitution is the highest source of law in the United States.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

2. All of the following statements are true, EXCEPT:

a. Any lawsuit may be filed in state or federal court, regardless of the issues presented or the amount in controversy.
b. Alternative dispute resolution (ADR) mechanisms share many advantages over trials: they are generally quicker, cheaper, less complicated procedurally, and receive les publicity, for example.
c. A voluntary alternative dispute mechanism sometimes used when negotiation seems to be failing is mediation. Here, the parties to the dispute choose a third party to assist them in settling it.
d. After a case goes to trial, a party may appeal the case to an appellate court. Generally, appellate courts don't hear witnesses or determine facts. Their job is to review the proceedings in the trial court, and correct any legal errors made by the trial judge.

3. Which of the following statements are true?

I. The Commerce Clause of the US Constitution gives the federal government the power to regulate commerce with foreign nations and among the several states.
II. State governments have inherent powers, so they can enact laws that directly discriminate against interstate commerce, and they can enact laws that unduly burden interstate commerce, regardless of the Commerce Clause.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

4. All of the following statements are true, EXCEPT:

a. A "tort" is generally described as a civil legal wrong, other than a breach of contract.
b. There are torts that stem from intentional conduct, and those that stem from unintentional conduct.
c. All intentional torts require some sort of improper physical contact.
d. Battery occurs when one person intentionally touches another in some way that is harmful or offensive, and where there was no valid consent to the touching.

5. Which of the following statements is true?

a. For there to be a case of assault under tort law, there must be both the apprehension of physical contact, and the actual contact.
b. There can be no assault without there also being a battery.
c. Due to the qualified privileged of conducting one's business affairs, there cannot be false imprisonment if a store owner improperly detains a suspected shoplifter and prevents the suspect from leaving a back room in the store.
d. Many states have passed statutes giving immunity to store owners, under certain circumstances, from civil actions for false imprisonment following their detention of suspected shoplifters.

6. Which of the following statements are true?

I. Defamation consists of the publication of statements injuring another person's reputation or character regardless of whether the statements are true.
II. Spoken defamation is termed "slander," but defamation communicated by the mass media, whether spoken or written, is properly termed "libel."

a. I only
b. II only
c. Both I and II
d. Neither I nor II

7. All of the following statements are true, EXCEPT:

a. There are certain privileges under the law that may provide valid defenses to lawsuits for defamation.
b. The media is given additional protection from defamation lawsuits when public figures or public officials are involved.
c. There is a conditional privilege of truth that can be presented as a defense in an action for defamation. If an otherwise defamatory statement is true, the person making it cannot be held liable for defamation, but only if she made the statement in good faith, not knowing whether it was true or false.
d. For a public official or public figured to prevail against the media in a defamation action, he or she must show the allegedly defamatory statement was made with actual malice.

8. Which of the following statements is true?

a. If someone attends a matter of public interest, like a trial of a famous person, and a newspaper publishes a picture that person watching the trial, without that person's authorization, the newspaper will be legally liable for the tort of invasion of privacy.
b. There are no tort actions for invasion of property rights. If someone improperly enters your land or takes your personal property they can be prosecuted under the criminal law, but the property owner doesn't have any action against them under tort law.
c. It is possible, under certain circumstances, to have a tort cause of action against someone else based on invasion of privacy, even if the facts published were true.
d. Tort law provides remedies only for injuries to one's person?not for injuries to one's reputation, or property.

9. Which of the following statements are true?

I. To establish a cause of action for negligence, one must show there was an intentional breach of a legal duty that causes injury or damage to someone else.
II. All persons owe others the duty of reasonable care, which is a different, and higher, legal standard than the duty of ordinary care.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

10. All of the following statements are true, EXCEPT:

a. Legal duties can be created by statutes.
b. In order to satisfy the "reasonable person" standard of conduct, one must comply with legal duties arising from statutes and from the common law.
c. If one establishes the breach of a legal duty by another person, one has established all the elements necessary to prevail in a cause of action for negligence against that person.
d. The violation of a legal duty created by a statute can constitute negligence by itself under the legal doctrine of negligence per se.

11. Which of the following statements is true?

a. Under the law of most states, if a party bringing a negligence lawsuit is himself negligent in any respect, his cause of action is barred under the doctrine of contributory negligence.
b. Under the law of most states, whichever party to an accident had the last clear chance to avoid the accident is solely legally responsible for damage that results form the accident.
c. A party must be shown to have been negligent for her to be legally liable to another party. Under no circumstances can a party be found strictly liable to another for engaging in certain activities that result in injury or damage.
d. Under the doctrine of assumption of the risk, one's recovery from another in negligence is barred if one is found to have assumed the ordinary risks attendant in the activity giving rise to the lawsuit.

12. Which of the following statements are true?

I. A plaintiff injured by a product may bring an action based in negligence, strict liability or breach of warranty.
II. One may bring an action in strict products liability only if there was a manufacturing defect causing the product to be unreasonably dangerous, but not if the product was defectively designed or was defective because of inadequate instructions or warnings.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

13. Which of the following statements is true?

a. If you have an offer and an acceptance you have a contract. No additional elements need be demonstrated.
b. Society carefully regulates contracts to prevent there from being freedom of contract.
c. A voidable contract is one that can be cancelled by either or both parties to the contract because of the failure to satisfy some applicable legal requirement.
d. Contracts involve the exchange of one promise for another. You can't have a contract where a promise is exchanged for the performance of another party.

14. Which of the following statements are true?

I. An offer is the manifestation of a willingness to enter into a bargain. What the person making the offer might be thinking is not what determines whether there is an offer, or what constitute its terms.
II. To constitute an offer, a communication must be sufficiently definite so it demonstrates a willingness to enter into a binding contract.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

15. All of the following statements are true, EXCEPT:

a. In many cases, an advertisement will be viewed as an invitation to make an offer, not as an offer to enter into a binding contract.
b. The offeror can generally invite acceptance of the offer in any means she specifies, as long as the means of acceptance aren't illegal or in violation of public policy.
c. Once someone makes an offer to enter into a contract, the offer must be held open for the time specified in the offer, or for a reasonable time, and revoking the offer before this will constitute breach of contract.
d. Once rejected, an offer to enter into a contract can't be accepted thereafter.

16. Which of the following statements is true?

a. If one tries to accept an offer to enter into a contract by altering its terms, in many cases this will not constitute an acceptance, and will constitute a rejection of the offer.
b. A party making an offer to enter into a contract generally can bind another party to a contract by requiring them to speak or else be bound under the contract. Remaining silent when in receipt of an offer generally constitutes acceptance of the offer.
c. If one party promises to do something for another, and the other party agrees, there's a contract even if the other party has no obligation whatsoever under the contract.
d. If I promise to perform a certain service for you in 10 days, and you promise to pay me $500 for this, but I later say I won't perform this service unless you pay me $1,000, and you agree to do so, we have a valid, enforceable contract for me to perform the service for you for $1,000.

17. Which of the following statements are true?

I. All lawsuits begin in state courts, but can thereafter be appealed to federal courts.
II. All citizens are entitled to have their cases ultimately heard in the U.S. Supreme Court, once they have gone through all the lower state and federal appeals courts.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

18. Which of the following statements is true?

a. The "common law" is that created by legislation passed by Congress and state legislators.
b. If a state legislature disagrees with a provision in the constitution, it can enact a statute that declares the federal constitutional provision is null and void in that state, and if it does so, the constitutional provision must give way to the state statute.
c. Congress can enact laws that override conflicting state laws, as long as the laws don't violate the United States Constitution.
d. The courts may be called upon to declare state or federal laws unconstitutional, but the courts will not interpret laws and determine their meaning in cases brought before the courts.

19. Which of the following statements are true?

I. Any case may be begun in either state or federal court.
II. For a case to be brought in federal court, there must be some question of federal law, or under the U.S. constitution, that is presented by the case.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

20. All of the following statements are true, EXCEPT:

a. For a court to hear a case, it must have both subject matter jurisdiction, and personal jurisdiction, or in personam jurisdiction, over the parties.
b. To bring a case before a court, a party must establish he is entitled to have the court to decide it, i.e. he has standing to sue.
c. Personal jurisdiction over a defendant is obtained by the service of a summons, which is a notice to appear in court.
d. State long-arm statutes?those that allow service of process on out-of-state defendants?have been declared unconstitutional by the Supreme Court.

21. All of the following statements are true, EXCEPT:

a. The discovery process involves the pre-trial exchange of information among the parties to the lawsuit.
b. Among the purposes of discovery are to narrow the issues at trial, and to facilitate settlement of lawsuits.
c. The discovery process involves the exchange of documents, but not the questioning of any of the parties to the lawsuit.
d. Interrogatories are written question submitted to a party to a lawsuit before trial.

22. Which of the following statements are true?

I. If a party is unsuccessful in a lawsuit, that party may re-file the same lawsuit in the attempt to get a more favorable result.
II. When a case is appealed to an appellate court, normally appellate courts will only rule on errors of law, and they will not re-try the facts of an individual lawsuit.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

23. Which of the following statements is true?

a. If one tries to accept an offer to enter into a contract by altering its terms, in many cases this will not constitute an acceptance, and will constitute a rejection of the offer.
b. A party making an offer to enter into a contract generally can bind another party to a contract by requiring them to speak or else be bound under the contract. Remaining silent when in receipt of an offer generally constitutes acceptance of the offer.
c. If one party promises to do something for another, and the other party agrees, there's a contract even if the other party has no obligation whatsoever under the contract.
d. If I promise to perform a certain service for you in 10 days, and you promise to pay me $500 for this, but I later say I won't perform this service unless you pay me $1,000, and you agree to do so, we have a valid, enforceable contract for me to perform the service for you for $1,000.

24. Which of the following statements is true?

a. All contracts must be in writing to be enforceable.
b. Contracts for the transfer of an interest in land do not have to be evidenced by a writing to be enforceable.
c. For a contract for the sale of goods over $500 to be enforceable, all of its terms must be set out in writing.
d. If a contract is fully performed, it doesn't have to be in writing to be enforced, if all the other elements of a valid contract are demonstrated.

25. Which of the following statements is true?

a. The failure to timely reject an offer to enter into a contract generally constitutes acceptance of the offer.
b. One can generally accept an offer to enter into a contract by changing its terms, and making a counteroffer.
c. Usually, unless the offer to enter into a contract specifies otherwise, an acceptance becomes effective when sent?not when received.
d. As long as there is an offer to enter into a contract, and an acceptance of the offer, there is a valid, legally-enforceable contract.

© BrainMass Inc. brainmass.com October 24, 2018, 7:55 pm ad1c9bdddf
https://brainmass.com/business/business-law/business-law-practice-exam-82999

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1. Which of the following statements are true?

I. The US Constitution contains many prohibitions against government regulation, and many of these are contained in the Bill of Rights, which consists of the first 10 Amendment to the Constitution.
II. The US Constitution is the highest source of law in the United States.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

c. Both I and II
2. All of the following statements are true, EXCEPT:

a. Any lawsuit may be filed in state or federal court, regardless of the issues presented or the amount in controversy.
b. Alternative dispute resolution (ADR) mechanisms share many advantages over trials: they are generally quicker, cheaper, less complicated procedurally, and receive les publicity, for example.
c. A voluntary alternative dispute mechanism sometimes used when negotiation seems to be failing is mediation. Here, the parties to the dispute choose a third party to assist them in settling it.
d. After a case goes to trial, a party may appeal the case to an appellate court. Generally, appellate courts don't hear witnesses or determine facts. Their job is to review the proceedings in the trial court, and correct any legal errors made by the trial judge.

a. Any lawsuit may be filed in state or federal court, regardless of the issues presented or the amount in controversy.
3. Which of the following statements are true?

I. The Commerce Clause of the US Constitution gives the federal government the power to regulate commerce with foreign nations and among the several states.
II. State governments have inherent powers, so they can enact laws that directly discriminate against interstate commerce, and they can enact laws that unduly burden interstate commerce, regardless of the Commerce Clause.

a. I only
b. II only
c. Both I and II
d. Neither I nor II

a. I only

4. All of the following statements are true, EXCEPT:

a. A "tort" is generally described as a civil legal wrong, other than a breach of contract.
b. There are torts that stem from intentional conduct, and those that stem from unintentional conduct.
c. All intentional torts require some sort of improper physical contact.
d. Battery occurs when one person intentionally touches another in some way that is harmful or offensive, and where there was no valid consent to the touching.
c. All intentional torts require some sort of improper physical contact.

5. Which of the following statements is true?

a. For there to be a case of assault under tort law, there must be both the apprehension of physical contact, and the actual contact.
b. There can be no assault without there also being a battery.
c. Due to the qualified privileged of conducting one's business affairs, there cannot be false imprisonment if a store owner improperly detains a suspected shoplifter and prevents the suspect from leaving a back room in the store.
d. Many states have passed statutes giving immunity to store owners, under certain circumstances, from civil actions for false imprisonment following their detention of suspected shoplifters.

d. Many states have passed statutes giving immunity to store owners, under certain circumstances, from civil actions for false imprisonment following their detention of suspected shoplifters.
6. Which of the following statements are true?

I. Defamation consists of the publication of statements injuring another person's reputation or character regardless of whether the statements are true.
II. Spoken defamation is termed "slander," but defamation communicated by the mass media, whether spoken or written, is properly termed "libel."

a. I only
b. II only
c. Both I and II
d. Neither I nor II

b. II only

7. All of the following statements are true, EXCEPT:

a. There are certain privileges under the law that may provide valid defenses to lawsuits for defamation.
b. The media is given additional protection from defamation lawsuits when public figures or public officials are involved.
c. There is a conditional privilege of truth that can be presented as a defense in an action for defamation. If an otherwise defamatory statement is true, the person making it cannot be held liable for defamation, but only if she made the statement in good faith, not knowing whether it was true or false.
d. For a public official or public figured to prevail against the media in a defamation action, he or she must show the allegedly defamatory statement was made with actual malice.

c. THERE IS a conditional privilege of truth that can be presented as a defense in an action for defamation. If an otherwise defamatory statement is true, the person making it cannot be held liable for defamation, but only if she made the statement in good faith, not knowing whether it was true or false.
Conditional privilege of truth applies to the media, allowing them to report on privileged situations or from public records. Such reports cannot be the basis of a defamation action, even if they are false, ...

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Business Law II questions - Business Policy & Strategy

1. Concrete Construction, Inc. (CCI), uses its cement-mixing equipment as collateral for a loan from First State Bank. The bank files a financing statement with the secretary of state in the state in which CCI was chartered. CCI is hired to do some work in another state and moves its equipment there to do the work. To continue the effectiveness of its
original filing, First State Bank must

a. file a continuation statement after the expiration of the original filing.
b. file a continuation statement before the expiration of the original filing.
c. file a new financing statement in the state in which CCI is working.
d. repossess CCI's equipment.

2. Ed repays his debt, incurred to buy consumer goods, to First City Bank and immediately files a written request for a termination statement. First City

a. must comply within one month of receipt of the letter.
b. must comply within twenty days of receipt of the letter.
c. must refund $500 to Ed.
d. need not comply.

3. Mike owes $12,000 to Nora, $6,000 to Owen, and $6,000 to Pat. The three creditors enter into an agreement with Mike to discharge the debts on payment of a sum of $12,000 to them, to be divided proportionately. This is

a. a composition agreement.
b. a guaranty agreement.
c. a judicial lien.
d. a suretyship agreement.

4. Adam's home is in a state that has a $15,000 homestead exemption. Adam defaults on a $30,000 debt that he owes to Beth. Adam's home is sold at auction for $40,000. Adam will receive

a. $15,000.
b. $25,000.
c. $30,000.
d. nothing.

5. Janet and Julie work at ABC Interiors. Janet is a designer who works with clients of ABC on interior design projects. ABC closely supervises all of its designers, and dictates their work schedules. Julie works part-time in the evenings cleaning the offices. Julie is ABC's

a. agent but not employee.
b. employee and agent.
c. independent contractor.
d. employee or independent contractor, depending on whether ABC controls the details of her physical performance.

6. Tri-State Trucking Company employs Warren as a delivery agent. While making a delivery within the scope of employment, Warren causes an accident in which Yvonne is injured. Yvonne can recover from

a. Tri-State Trucking only.
b. Warren only.
c. Tri-State Trucking or Warren.
d. none of the above.

7. Don starts up E-Designs, a Web site design service, in a building owned by Earl. Their lease agreement provides that Don will pay Earl a base monthly rental of $250, plus 30 percent of the month's profits. The term of the lease is two years. Don and Earl are

a. partners in a partnership for the term of the lease.
b. not partners, because Earl does not have an ownership interest or management rights in Don's business.
c. not partners, because of the lease requirement that Don must pay a "base rental" in addition to a share of the profits.
d. not partners, because the term of the lease is only two years.

8. Hans, Werner, and Erwin are partners in a computer peripherals company. Werner decides that he will no longer participate in the business. Hans signed a contract with a supplier prior to Werner's decision. That contract is binding on

a. Hans and Erwin.
b. the partnership.
c. Hans only.
d. none of the above.

9. Solid Appliances, Inc., is a private, for-profit corporation that (1) was formed for the purpose of manufacturing and distributing a newly patented kitchen appliance, (2) is owned by five shareholders, (3) is subject to double taxation, and (4) has made no public offering of its shares. Solid Appliances is

a. an S corporation.
b. a close corporation.
c. a nonprofit corporation.
d. a professional corporation.

10. Pete and Rob hold the first organizational meeting of Coastal Resorts Corporation (CRC). Probably the most important function of this meeting is
a. adopting CRC's bylaws.
b. chartering CRC.
c. drafting CRC's articles of incorporation.
d. specifying CRC nature and purpose in the articles of incorporation.

11. Eve and Fred are holders of common stock in Green Grocers, Inc. (GGI). Like other holders of common stock, they may be said to have a residual position in the overall financial structure of GGI, because they...

a. are entitled to a dividend not received by other classes of shareholders.
b. are the last to receive payment for their investment.
c. have first priority to any assets of the company if it becomes insolvent.
d. none of the above.

12. Owen and Paula are two of ten authorized directors of Quality Investments Company. The minimum number of directors that can declare a dividend on Quality stock is

a. two.
b. six.
c. ten.
d. none of the above.

13. Frosty Drinks Corporation distributes soft drinks. Frosty's board of directors can delegate some of its functions to the firm's
a. incorporators.
b. officers.
c. shareholders.
d. none of the above.

14. Nora, a shareholder of Alpha Corporation, receives a stock warrant. This is

a. a certificate served on Nora by government officials authorizing them to inspect the records of Alpha.
b. a stock certificate.
c. a transferable option to acquire a given number of shares from Alpha at a stated price.
d. Nora's right to request that a stock certificate be issued in her name.

15. First State Bank merges with Community Bank. Only First State Bank remains. Community Bank held certain rights in certain financial assets. After the merger, First State Bank

a. acquired all of the rights automatically.
b. acquired all of the rights only after completing certain statutory procedures.
c. did not acquire all of the rights unless this was part of the merger.
d. none of the above.

16. First National Bank decides to consolidate its operations with Overseas Bank to create a new firm called International Bank. Overseas Bank had certain rights in assets. After the consolidation, International Bank

a. acquired all of the rights automatically.
b. acquired all of the rights only after completing certain statutory procedures.
c. did not acquire all of the rights unless this was part of the consolidation.
d. none of the above.

17. Mega Corporation wants to gain control of MiniCo, Inc. The companies negotiate for several months, without coming to terms. Mega decides to pursue a takeover attempt. MiniCo decides to resist. MiniCo amends its bylaws to require that 80 percent of the shareholders approve a merger. This is a

a. crown jewel defense.
b. shark repellent defense.
c. poison pill defense.
d. scorched earth tactic.

18. Acme Enterprises, Inc., a corporation traded on a national stock exchange, wants to offer bonds for sale to the public. All-Rite Insurance Company, a state-regulated insurance company, wants to offer annuity contracts for sale to the public. Before any sale, registration must be made with the SEC for

a. Acme's bonds only.
b. All-Rite's annuity contracts only.
c. Acme's bonds and All-Rite's annuity contracts.
d. none of the above.

19. Jill, an accountant for U.S. Digital, Inc. (USD), learns of undisclosed company plans to market a revolutionary new desktop computer. Jill buys 1,000 shares of USD stock. She reveals the company plans to Ken, who buys 500 USD shares. Ken tells Laura, who buys 100 shares. Laura knows that Ken got his information from Jill. When USD publicly
announces its new desktop, they all sell their stock for large profits. If Ken is subject to liability, it would be because the information on which he based his purchase of USD stock was

a. about USD's future plans.
b. not material.
c. not public.
d. none of the above.

20. Mike, a director of National Foods Corporation, learns that the company has developed a new fat-free food. Mike buys 1,000 shares of National stock. One week later, the new product is announced, the price of the stock increases, and Mike sells his shares for a profit. Under SEC Rule l0b-5, Mike would not be liable if he had waited

a. a reasonable time after the product was announced to buy the stock.
b. a reasonable time after the purchase of the stock to sell it.
c. thirty days after he learned of the product to buy the stock.
d. thirty days after the purchase of the stock to sell it.

21. Interstate Trucking, LLC, is a limited liability company. Jack, an Interstate driver, is in an accident in New Jersey with Owen, a citizen of New York. Owen files a suit against Interstate in a federal district court. For purposes of federal court jurisdiction, the citizenship of Interstate is the same as the citizenship of

a. Interstate Trucking's members.
b. Jack.
c. the state of Interstate Trucking's formation.
d. none of the above.

22. Don and Elaine are limited partners in Fine Stores, a limited partnership. In terms of the firm's books, Don and Elaine are entitled to

a. access in proportion to their participation in the management of the firm.
b. access to those parts that directly relate to their capital contributions.
c. no access.
d. total access.

23. Alpha Footwear, LP, is a limited partnership. Beth, a limited partner, participates in the firm's management. Crafted Soles Corporation (CSC), is one of the firm's creditors. Based on Beth's conduct, CSC believes that she is a general partner. In terms of her liability for the firm's obligations to CSC, Beth has, in relation to the general partners,

a. some, but less, liability.
b. more liability.
c. no liability.
d. the same liability.

24. Downwind Properties Corporation and Eastern Investments Company transfer their property to Financial Management, Inc., which manages the property and distributes the profits to Downwind and Eastern. This is

a. a business trust.
b. a joint stock company.
c. a joint venture.
d. a syndicate.

25. Resource Development Company and Western Mining Corporation form a joint stock company. Like most joint stock companies, it is managed by

a. directors and officers.
b. general partners.
c. managing members.
d. trustees.

26. To enable Bob, a potential franchisee, to make an informed decision concerning the purchase of a Great Store franchise, regulations requiring Great Stores to disclose material facts were issued by

a. the Federal Trade Commission.
b. the National Conference of Commissioners on Uniform State Laws.
c. the U.S. Franchise Agency.
d. none of the above.

27. Three farm-equipment distributors control 90 percent of the market for their products in a certain geographic area. The firms agree to sell their products for the same prices. This is

a. a resale price maintenance agreement.
b. a tying arrangement.
c. price fixing.
d. none of the above.

28. USA Computer Corporation requires all distributors of its products to sell the products at specified minimum prices. This resale price maintenance agreement is

a. a per se violation of the Sherman Act.
b. a violation of the Clayton Act.
c. subject to evaluation under the rule of reason.
d. not subject to antitrust law.

29. Macro Corporation conditions the sale of its operating software on the buyer's agreement to purchase another Macro product, an Internet browser. This is

a. an exclusive-dealing contract.
b. an interlocking directorate.
c. price discrimination.
d. a tying arrangement.

30. Sue buys a car from her neighbor, Tim, for $5,000 and agrees to make monthly payments of $500 until the price is paid. This transaction is subject to

a. the Fair Credit Reporting Act.
b. the FTC's used-car dealers' "Buyer's Guide" rule.
c. the Truth-in-Lending Act.
d. none of the above.

31. Ace Payments Agency harasses Beth in an attempt to collect payment for a shipment of CDs that she returned to Central Music Company four months earlier. This is a violation of

a. the Fair Credit Reporting Act.
b. the Fair Debt Collection Practices Act.
c. the Truth-in-Lending Act.
d. none of the above.

32. General Construction Corporation wants to develop land that includes an area of wetlands, as the term is defined by the Environmental Protection Agency. To fill or dredge this area requires

a. a contribution to the Natural Resources Defense Fund.
b. a permit from the Army Corps of Engineers.
c. both a and b.
d. none of the above.

33. Alpha Telecommunications Corporation employs seven thousand workers in three states. A third of the employees are member of the National Telecommunications Workers Union. Under the Labor-Management Relations Act, the union can

a. demand that Alpha be a closed shop.
b. insist that Alpha hire more employees than necessary.
c. refuse to bargain with Alpha.
d. none of the above.

34. Beth, an employee of Midstates Manufacturing Corporation, is injured on the job and accepts workers' compensation. Beth can successfully sue Midstates

a. if the injury was caused by the employer's negligence.
b. if the injury was caused by the employer intentionally.
c. regardless of the employer's fault.
d. none of the above.

35. Mike works as an employee for International Services, Inc. To protect Mike and other employees from arbitrary discharge, courts have created exceptions to the employment-at-will doctrine based on

a. an implied contract theory only.
b. a public policy theory only.
c. implied contract and public policy theories.
d. none of the above.

36. Jane works for Butler Warehouse Company. Jane is the only woman on her work crew. The male crew often tell jokes and play minor pranks on each other. When Jane attempts a prank, the supervisor fires her, saying that "we don't tolerate horseplay at Butler." Assuming that Jane can establish the ground for a lawsuit against Butler, Butler can defend itself by showing that

a. Jane is the member of a protected class and she was qualified for the job.
b. the misconduct Jane engaged in was nearly identical to that engaged
in by an employee who is not a member of the protected class and who was not fired.
c. there was a legitimate, nondiscriminatory reason for the discharge.
d. both a and b.

37. Paul believes that American Equipment Corporation, his employer, subjected him to discrimination on the basis of his age. For the Age Discrimination in Employment Act of 1967 to apply

a. the age discrimination must have been intentional.
b. American must have at least thirty employees.
c. Paul must be forty years of age or older.
d. all of the above.

38. Dana, who has a disability, is an employee of Hersch & Company. After the installation of new entry doors, Dana finds it nearly impossible to get into and out of the Hersch building. For repeatedly failing to be on time, Hersch discharges Dana. Dana is replaced by Gert, who does not have a disability. Dana files a claim against Hersch under the Americans with Disabilities Act of 1990. To successfully defend against Dana's claim, Hersch will have to show that

a. Dana consistently failed to meet the essential requirements of her job.
b. Gert is qualified for Dana's position.
c. Hersch cannot reasonably accommodate Dana without undue hardship.
d. all of the above.

39. Ira is declared mentally incompetent. Jay, Ira's son, is named his guardian. At Jay's insistence, Ira transfers his assets to Jay "for safekeeping." A court might conclude that this gift is not effective on the ground that there was no

a. acceptance.
b. delivery.
c. donative intent.
d. donor's acknowledgment.

40. Sara, a famous pianist, is told that she will have to undergo brain surgery that could result in partial paralysis of her right arm and leg. Before she enters the hospital, Sara gives her concert piano to a good friend who is also a pianist and has the piano transported to the friend's home. The surgery is successful, and Sara suffers no postsurgical paralysis of any kind. Sara can

a. revoke her gift because it was a gift causa mortis.
b. not revoke her gift because it was a gift causa mortis.
c. revoke her gift because it was a gift inter vivos.
d. not revoke her gift because it was a gift inter vivos.

41. Jerome agrees to let Kenny store his boat behind Jerome's garage for $20 a month while Kenny is in Europe. One day, a few weeks after Kenny's departure, Jerome notices that the canvas tarp covering the boat is so cracked and worn that rainwater is collecting in the boat. Jerome replaces the tarp at a cost of $35. Given these facts a. Jerome does not have a right to collect $35 from Kenny because this was

a gratuitous bailment.
b. Jerome probably has a right to be compensated for the $35 on Kenny's return.
c. Kenny does not have to pay Jerome $35 because he did not authorize Jerome to purchase a new tarp.
d. Kenny does not have to pay Jerome $35 because no bailment existed, just a friendly arrangement.

42. Eve possesses a city block. Eve has the right to use the property, as she sees fit, subject to local zoning laws. She can lease the property, or dispose of it by selling or giving it away or letting it pass on her death to her heirs. This ownership interest is

a. a fee simple absolute.
b. a future interest.
c. a leasehold estate.
d. a life estate.

43. Irma owns land in Iowa. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses. Irma deeds her land to Jake. The deed states, "To Jake, for life, then to Kim." Irma has given Kim

a. a fee simple absolute.
b. a fee simple defeasible.
c. a life estate.
d. a remainder.

44. Ben, a football fan, transfers land, by deed, to Alpha University. The deed states, "To Alpha University, as long as the football team wins every game, then to Kappa College." Alpha's interest in the land is

a. a fee simple defeasible.
b. an executory interest.
c. a remainder.
d. a reversionary interest.

45. Earl applies for, and obtains, a life insurance policy from Federated Insurance Corporation that contains an incontestability clause. This clause provides that Federated cannot contest statements made in the application

a. after the policy has been effect for a specified period of time.
b. as soon as the policy is issued.
c. under any circumstances.
d. none of the above.

46. In her will, Jill makes a gift of stock to Kent. At the time of Jill's death, she owes $10,000 to Local Mortgage Company. The residuum of her estate consists of assets that

a. exist before taxes, expenses, and the debt to Local Mortgage are paid.
b. pay estate taxes, expenses, and debts.
c. remain after the debt to Local Mortgage is paid and the gift to Kent is made.
d. remain after taxes, expenses, and the debt to Local Mortgage is paid, but before the gift is made to Kent

47. Sophia executes a will in 1990 naming her nephew Porter as the sole beneficiary. In 1999, she executes another will, changing the beneficiary to her niece Allison, but she does not state in the 1999 will that she is revoking the earlier will. On Sophia's death

a. Porter will be the sole heir, as the 1990 will was first in time and was never effectively revoked.
b. Allison will be the sole heir because a second will automatically revokes an earlier will even if a declaration of revocation is missing from the second will.
c. Allison will be the sole heir because even when a declaration of revocation is missing from a second (later) will, if the second will is inconsistent with an earlier will, the second will controls.
d. neither Porter nor Allison will inherit because when a second will is inconsistent with an earlier will and the earlier will is not specifically revoked in the second will, the testator's property escheats to the state.

48. Egypt hires a British advertising agency to promote tourism from Europe but fails to pay for the agency's services. If the agency attempts to sue Egypt in a U.S. court, Egypt will likely be exempt from the court's jurisdiction under
a. the act of state doctrine.
b. the Convention on Contracts for the International Sale of Goods.
c. the doctrine of sovereign immunity.
d. the principle of comity.

49. New World Products, Inc., a U.S. firm, contracts with Fong, Ltd., a Hong Kong firm, allowing the foreign firm to use and profit from its patented products. This is
a. importing.
b. exporting.
c. exclusive distributing.
d. technology licensing.

50. The United States taxes each barrel of imported oil at a flat rate. This is

a. an antidumping duty.
b. a dumping duty.
c. a quota.
d. a tariff.

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