Adam is a Legal Positivist. Adam believes thatAnswer

a.

the law should be applied the same in all cases in all circumstances.

b.

the law should reflect universal principles that are part of human nature

c.

the law should not follow decisions made in past cases.

d.the written law of a society at a particular time is the most significant standard of morality.

In a suit between Fine Manufacturing Company and Great Goods, Inc., the court orders a rescission. This is

Answer

a.

an action to cancel a contract and return the parties to the positions they held before the contract's formation.

b.

an award of damages.

c.

an order to do or refrain from doing a particular act.

d.

an order to perform what was promised.

The U.S. Constitution takes precedence overAnswer

a.

a provision in a state constitution or statute only.

b.

a state supreme court decision only.

c.

a state constitution, statute, and court decision.

d.

none of the above.

Central Business Corporation was incorporated in Delaware, has its main office in New Jersey, and does business in New York. Central is subject to the jurisdiction ofAnswer

a.

Delaware, New Jersey, or New York.

b.

Delaware or New Jersey only.

c.

Delaware or New York only.

d.

New Jersey or New York only.

Carol files a suit against Don. Before going to trial, the parties meet with their attorneys to represent them, to try to resolve the dispute without involving a third party. This isAnswer

a.

arbitration.

b.

litigation.

c.

mediation.

d.

negotiation.

Eagle Company, which is based in Florida, owns commercial real property in Georgia. A dispute arises over the ownership of the property with Holly, a resident of Alabama. Holly files a suit against Eagle in Georgia. In this suit, Georgia hasAnswer

a.

diversity jurisdiction.

b.

in personam jurisdiction.

c.

in rem jurisdiction.

d.

no jurisdiction.

In Doug's suit against Eve, Eve may file a motion to dismissAnswer

a.

only if the court lacks jurisdiction.

b.

only if the complaint does not state a claim for which relief can be granted.

c.

if the court lacks jurisdiction or if the complaint does not state a claim for which relief can be granted.

d.

under no circumstances.

Ace Manufacturing, Inc., loses its suit against Best Products, Inc., and files an appeal. The appellate court is most likely to review the trial court'sAnswer

a.

application of the law.

b consideration of the creditability of the

. evidence.c.

findings of fact.

d.

interpretation of the conduct of the witnesses.

  Of the three branches of the federal government provided by the Constitution, the branch that makes the laws isAnswer

a.

the administrative branch.

b.

the executive branch.

c.

the judicial branch.

d.

the legislative branch.

Eagle Shipping Company challenges a Georgia state statute, claiming that it unlawfully interferes with interstate commerce. A court will likelyAnswer

a.

balance Georgia's interest in regulating the matter against the burden on interstate commerce.

b.

balance the burden on Georgia against the merit and purpose of interstate commerce and its relation to the global economy.

c.

strike the statute.

d.

uphold the statute.

Procedures used in South Dakota and other states in making decisions to take life, liberty, or property are the focus of constitutional provisions coveringAnswer

a.

equal protection.

b.

procedural due process.

c.

substantive due process.

d.

the right to privacy.

If Montana enacts a statute that directly conflicts with a federal law

Answer

a.

both laws are invalid.

b.

both laws govern concurrently.

c.

Montana's statute takes precedence since states existed before the federal government.

d.

the federal law takes precedence.

Eve, an employee of First Federal Bank, takes an outcome-based or consequences approach to ethics. Eve believes that she mustAnswer

a.

achieve the greatest good for the most people.

b.

avoid unethical behavior regardless of the consequences.

c.

conform to society's standards.

d.

place her employer's interest first.

Kantian ethical standards would most likely be considered to have been violated if Acme Services, Inc., represents to Best Production Company that certain services will be performed for a stated fee, but it is apparent at the time of the representation that

Answer

a.

Acme cannot perform the services alone.

b the actual charge will be

. substantially higher.

c.

the actual charge will be substantially lower.

d.

the fee is a competitive bid.

Alan, the owner of Beta Computer Store, detains Cathy, a customer, whom Alan suspects of shoplifting. This is false imprisonment ifAnswer

a.

Alan detains Cathy for an unreasonably long time.

b.

Cathy did not shoplift.

c.

Cathy has probable cause to suspect Alan of deceit.

d.

Cathy protests her innocence.

Gil sends a letter to Holly in which he falsely accuses her of embezzling. This is defamation only if the letter is read byAnswer

a.

a public figure.

b.

any third person.

c.

Holly.

d.

Holly's employer.

Fred drives across Gail's land. This is a trespass to land only ifAnswer

a.

Fred damages the land.

b.

Fred does not have Gail's permission to drive on her land.

c.

Fred makes disparaging remarks about Gail's land.

d.

Gail is aware of Fred's driving on her land.

Ann, a wholesale dairy products salesperson, follows Brad, another wholesale dairy products salesperson, as he contacts his customers. Ann then solicits each of Brad's customers. Ann is likely liable for

Answer

a.

appropriation.

b.

assault.

c.

conversion.

d.

wrongful interference with a business relationship.

Lee, a salesperson for Midsize Corporation, causes a car accident while on business. Lee and Midsize are liable toAnswer

a.

all those who were injured.*notes*

b.

only those who were uninsured.

c.

only those whose injuries could have been reasonably foreseen.

d.

only those with whom Lee was doing business.

Data Corporation created and sells "Economix", financial computer software. Data's copyright in Economix is �best protected underAnswer

a.

the Berne Convention.

b.

the Paris Convention.

c.

the TRIPS Agreement.

d.

none of the above.

Jay is charged with the commission of a crime. For a conviction, the standard to find Jay guilty isAnswer

a.

beyond all doubt.

b.

beyond a reasonable doubt.

c.

clear and convincing evidence.

d.

a preponderance of the evidence.

Dan, a doctor, renders aid to Eve, who is injured. Dan can recover the cost from EveAnswer

a.

even if Eve was not aware of Dan's help.

b.

only if Eve was aware of Dan's help.

c.

only if Eve was not aware of Dan's help.

d.

under no circumstances.

Rita calls Sam on the phone and agrees to buy his laptop computer for $400. This isAnswer

a.

an express contract.* oral/ written

b.

an implied-in-fact contract.

c.

an implied-in-law contract.pg.225

d.

a quasi contract.

Before opening her new sports merchandise store, Kay places an ad in the newspaper showing cross-training shoes at certain prices. Within hours of opening for business, the store is sold out of some of the shoes. In this situationAnswer

a.

Kay has made an offer to the people reading the ad.

b.

Kay has made a contract with the people reading the ad.

c.

Kay has made an invitation seeking offers.

d.

Any customer who demands goods advertised and tenders the money is entitled to them.

Beth offers to buy from Chris a used computer, with a monitor and printer, for $400. Chris says, "OK, but $200 more for the monitor and printer." Chris hasAnswer

a.

accepted the offer.

b.

made a counteroffer without rejecting the offer.

c.

rejected the offer and made a counteroffer.

d.

rejected the offer without making a counteroffer.

Jill offers to sell her car to Kelly, stating that the offer will stay open for thirty days. Jill may revoke the offerAnswer

a.

before Kelly accepts the offer.

b.

before thirty days have expired, whether or not Kelly has accepted the offer.

c.

only after Kelly accepts the offer.

d.

only after thirty days.

Dave offers to buy a book owned by Lee for $40. Lee accepts and hands the book to Dave. The transfer and delivery of the book constitute performance. Is this performance consideration for Dave's promise?Answer

a.

Yes, because performance always constitutes consideration.

b.

Yes, because Dave sought it in exchange for his promise, and Lee gave it in exchange for that promise.

c.

No, because performance never constitutes consideration.

d.

No, because Lee already had a duty to hand the book to Dave.

Best Office Company promises to pay Carl $1,000 to repair the roof on Best's building. Carl fixes the roof. The act of fixing the roofAnswer

a.

imposes a moral obligation on Best to pay Carl.

b.

imposes no obligation on Best unless it is personally satisfied with the job.

c.

is not sufficient consideration because it is not goods or money.

d.

is the consideration that creates Best's obligation to pay Carl.

Mike promises to pay Nora to work for him. Nora agrees and quits her job, but Mike does not hire her. Mike is liable to Nora based onAnswer

a.

the concept of accord and satisfaction.

b.

the doctrine of promissory estoppel.

c.

the preexisting duty rule.

d.

the principle of rescission.

Eve, a sixteen-year-old minor, buys a car from Fine Autos and wrecks it. To disaffirm the contract, Eve must as a general ruleAnswer

a.

neither return the car nor pay for the damage.

b.

only return the car.

c.

only pay for the damages.

d.

return the car and pay for the damages.

Jill sells her business to Kyle and, as part of the agreement, promises not to engage in a business of the same kind within three miles for one year. This promise is generallyAnswer

a.

an unreasonable restraint of trade.

b.

unreasonable in terms of geographic area and time.

c.

unreasonable in terms of Kyle's "goodwill" and "reputation."

d.

valid and enforceable?

Ann contracts with Bob, a financial planner who is required by the state to have a license. Bob does not have a license. Their contract is enforceable ifAnswer

a.

Ann does not know that Bob is required to have a license.

b.

Bob does not know that he is required to have a license.

c.

the purpose of the statute is to protect the public from unlicensed practitioners.

d.

the purpose of the statute is to raise government revenue.

Adam persuades Beth to contract for his company's services by telling her that his employees are the "best and the brightest." Adam's statement is�Answer

a.

duress.

b.

fraud.

c.

puffery or sales talk.

d.

undue influence.

Ken, a teacher, sells Larry a parcel of land, claiming that it is "perfect" for commercial development. Larry later learns that it is not zoned for commercial uses. Larry may rescind the contractAnswer

a.

only if Ken knew about the zoning law *

b.

only if Larry did not know about the zoning law.

c.

only if the zoning law was not common knowledge.

d.

under no circumstances.

Lou and Paula enter into a contract. Lou later tells Paula that if she does not perform her part of the deal, he will sue her. Paula canAnswer

a.

avoid the contract on the basis of duress.

b.

avoid the contract on the basis of fraudulent misrepresentation.

c.

avoid the contract on the basis undue influence.

d.

not avoid the contract.

Standard Business Company agrees to hire Tim as a sales representative for six months. Their contract is oral. This contract is enforceable byAnswer

a.

neither Standard nor Tim.

b.

Standard only.

c.

Standard or Tim.

d.

Tim only.

ABC, Inc., orally contracts for a lease of its storage facilities to DEF Company. DEF pays part of the price, takes possession, and makes permanent improvements to the property. The contract is most likely enforceable againstAnswer

a.

ABC and DEF.

b.

ABC only.

c.

DEF only.

d.

neither ABC nor DEF.

Ed borrows $1,000 from First State Bank. Fran, a good friend, orally promises the bank that she will repay the debt if Ed does not. The promise is enforceable byAnswer

a.

Ed only.

b.

Ed or First State Bank.

c.

First State Bank only.

d.

neither Ed nor First State Bank.

Greg enters into a contract with Holly that indirectly benefits Ira, although neither Greg nor Holly intended the result. Ira isAnswer

a.

a delegatee. Look up def

b.

an assignee.

c.

an incidental beneficiary.

d.

an intended beneficiary.

Jill insures her warehouse under a policy with Kappa Insurance Company. Jill assigns the policy to Lyle, who also owns a warehouse. Kappa's best argument against the assignment of the policy is thatAnswer

a.

Kappa did not consent to the assignment.

b.

Kappa was not paid for the assignment.

c.

the assignment will materially alter Kappa's risk.

d.

this is a personal service contract.

Dan assigns to Evan a contract to buy a used car from Fran. To be valid, the assignment mustAnswer

a.

be in writing and be signed to Dan.

b.

be supported by adequate consideration from Evan.

c.

not be revocable by Dan.

d.

not materially increase Fran's risk or duty.

Ron contracts to repair Stu's building for $30,000. Payment is to be made "on the satisfaction of Tina, Stu's architect." Stu tells Tina not to approve the repairs. Ron sues Stu for $30,000. Ron willAnswer

a.

win, because Stu is not acting reasonably in good faith.

b.

win, because Tina is Stu's architect.

c.

lose, because Ron is not acting reasonably, honestly, and in good faith.

d.

lose, because Tina has not expressed satisfaction with the work.

Jim and Gail contract for the sale of 500 computers. The agreement states, "The obligations of the parties are conditional on Gail obtaining financing from First Bank by August 1." This clause isAnswer

a.

a condition precedent.

b.

a condition subsequent.

c.

a concurrent condition.

d.

not a condition.

Sue contracts to deliver Tom's products to his customers for $1,500, payable in advance. Tom pays the money, but Sue fails to perform. Tom canAnswer

a.

rescind the contract only.

b.

obtain restitution of the $1,500 but not rescind the contract

c.

rescind the contract and obtain restitution of the $1,500.

d.

recover nothing nor rescind the contract.

General Construction contracts to build a store for Home Stores for $1 million. In mid-project, Home repudiates the contract, and General stops working. General incurred costs of $600,000 and would have made a profit of $100,000. General's measure of damages isAnswer

a.

$1 million.

b.

$700,000.

c.

$100,000.

d nothing.

.

Beta, Inc., includes a shrink-wrap agreement with its products. A court would likely enforce this agreement if a buyer used the productAnswer

a.

after having had an opportunity to read the agreement.

b.

before having had an opportunity to read the agreement.

c.

only after actually reading the agreement.

d.

none of the above.

American Sales Company and B2C Corporation enter into a contract over the Internet. The contract says nothing about the UETA. The UETA applies toAnswer

a.

none of the contract.

b.

only the part of the contract that does not involve computer information.

c.

only the part of the contract that involves computer information.

d.

the entire contract.

Mountain Boots, Inc., and National Shoe Company orally agree to a sale of 100 pair of hiking boots for $5,000. National gives Mountain a check for $500 as a down payment. At this point, the contract isAnswer

a.

enforceable to at least the extent of $500.

b.

fully enforceable because it is for specially made goods.

c.

fully enforceable because it is oral.

d.

unenforceable.

Stan buys a CD player from Tom, his neighbor, who agrees to keep the player until Stan picks it up. Before Stan can get it, the player is stolen. The loss is suffered byAnswer

a.

Stan only.

b.

Tom only.

c.

Stan and Tom.

d.

none of the above.

Standard Goods, Inc., ships fifty defective hard drives to Top Business Corporation (TBC). Top rejects the drives and ships them back to Standard, via United Transport, Inc. The drives are lost in transit. The loss is suffered by

Answer

a.

Standard.

b.

Top.

c.

United.

d.

none of the above.

Delta Grocers, Inc., agrees to buy 10,000 potatoes from Eagle Farms. Only half of the shipment conforms to the contract, but conforming potatoes are in short supply in the market. Delta's best course is toAnswer

a.

accept the entire shipment.

b.

accept the conforming goods and sue for the difference between the contract price and the cost of cover.

c.

reject the entire shipment and sue for specific performance.

d.

suspend payment and wait to see if Eagle will tender conforming goods.

Digital Products Company agrees to sell to Eagle Manufacturing, Inc., a customized software system. If Eagle materially breaches the contract, the remedies available to Digital include the rightAnswer

a.

to cancel the contract only.

b.

to recover damages only.

c.

to cancel the contract and recover damages.

d.

none of the above.

Eagle Skis, Inc., makes and sells skis. In deciding whether the skis are merchantable, a court would consider whetherAnswer

a.

Eagle violated any government regulations.

b.

the skis are a quality product.

c.

the skis are fit for the ordinary purpose for which such goods are used.

d.

the skis are made in an efficient manner.

Superb Auto Sales sells cars, trucks, and other motor vehicles. A Superb salesperson tells potential customers, "This is the finest car ever made." This statement isAnswer

a.

an express warranty.

b.

an implied warranty.

c.

a warranty of title.

d.

puffing.

Kitchen Products, Inc. (KPI), makes knifes and other utensils. Jay is injured while using a KPI knife, and sues the maker for product liability based on negligence. KPI could best successfully defend against the suit by showing thatAnswer

a.

Jay's injury resulted from a commonly known risk in using a knife.

b.

Jay misused the knife in a foreseeable way.

c.

KPI did not sell the knife to Jay.

d.

the knife was not altered after KPI sold it.

Fran is in Green's Grocery Store when a bottle of Hi Cola on a nearby shelf explodes, injuring her. She can recover from the manufacturer of Hi Cola only if she can show thatAnswer

a.

she did not assume the risk of the explosive bottle of Hi Cola.

b.

she intended to buy the explosive bottle of Hi Cola.

c.

she was injured due to a defect in the product.

d.

the manufacturer failed to use due care in making the bottle of Hi Cola.

Carol is a salesperson who works for Delta Products, Inc. In determining whether Carol is Delta's employee or an independent contractor, the most important factor isAnswer

a.

the degree of control that Delta exercises over Carol. Pg 317

b.

the distinction between Delta's business and Carol's occupation.

c.

the length of the working relationship between Delta and Carol.

d.

the method of payment.

Ann gives Bill the distinct impression that Carol is Ann's agent, when in fact she is not. Bill deals with Carol as Ann's agent. Regarding any agency relationship, AnnAnswer

a.

can deny it.

b.

can deny it to the extent of any injury suffered by Bill.

c.

can deny it to the extent of any liability that might be imposed on Ann.

d.

cannot deny it.

Java Company hires Ken to manage one of its stores. Although their employment agreement says nothing about Ken being able to hire employees to work in the store, Ken has the authority. This isAnswer

a.

apparent authority.

b.

express authority.

c.

imagined authority.

d.

implied authority.pg323

Kay acts within the scope of her authority to enter into a con¬tract with First National Bank on behalf of Kay's undisclosed principal, Digital Engineering, Inc. Digital isAnswer

a.

liable on the contract only if Digital ratifies the contract.

b.

liable on the contract only if Digital's identity is later disclosed.

c.

liable on the contract under the stated circumstances.

d.

not liable on the contract.

Eve, an employee of First Bank, is injured. For Eve to receive workers' compensation, the injury must beAnswer

a.

accidental and arise out of a preexisting disease or condition.

b.

accidental and occur on the job or in the course of employment.

c.

intentional and arise out of a preexising disease or condition.

d.

intentional and occur on the job or in the course of employment.

Bob and Carol work for Delta Company. Bob is Carol's supervisor. During work, Bob touches Carol in ways that she perceives as sexually offensive. Carol resists the advances. Bob cuts her pay. Delta isAnswer

a.

liable, because Bob's conduct constituted sexual harassment.

b.

liable, because Carol resisted Bob's advances.

c.

not liable, because Bob's conduct was not job-related.

d.

not liable, because Carol resisted Bob's advances.

Omega Sales, Inc., promotes employees on the basis of color. Employees with darker skin color are passed over in favor of those with lighter skin color, regardless of their race. This is prohibited byAnswer

a.

the Americans with Disabilities Act of 1990.

b.

the Equal Pay Act of 1963.

c.

Title VII of the Civil Rights Act of 1964.

d.

none of the above.

Donna applies to Eagle Corporation for an administrative assistant's job, which requires certain typing skills. Donna cannot type but tells Eagle that she is willing to learn. Eagle does not hire Donna, who later sues. To successfully defend against the suit under Title VII, Eagle must show thatAnswer

a.

being a member of the majority is a BFOQ.

b.

Donna was not willing to learn to type.

c.

Eagle has a valid business necessity defense.

d.

Eagle's work force reflects the same percentage of members of a protected class that characterizes qualified individuals in the local labor

market.

National Company requires job applicants to pass certain physical tests. Only a few female applicants can pass the tests, but if they pass, they are hired. To successfully defend against a suit on this basis under Title VII, National must show thatAnswer

a.

any discrimination is not intentional.

b.

being a male is a BFOQ.

c.

passing the tests is a business necessity.

d.

some men cannot pass the tests.

Adam invests in a franchise with Best Gas Stations, Inc. Best requires Adam to exclusively buy Best products for every phase of the operation. Adam's best argument to challenge this requirement is that it violatesAnswer

a.

an implied covenant of good faith and fair dealing.

b.

antitrust laws.

c.

the Federal Trade Commission's Franchise Disclosure Rule.

d.

the U.S. Franchise Agency's Purchase and Sale Regulations.

Carl holds himself out as a partner of Delta Associates, a partnership, even though he has no connection to the firm. Carl obtains a loan based on the misrepresentation. Carl's default on the loan results inAnswer

a.

Carl and Delta's joint liability for the amount.

b.

Carl's sole liability for the amount.

c.

Delta's sole liability for the amount.

d.

neither Carl's nor Delta's liability.

Kate is admitted to an existing partnership. A partnership debt incurred before the date of her admission comes due. Kate isAnswer

a.

not liable for the debt.

b.

only liable for the debt to the amount of her capital contribution.

c.

personally liable only to the extent that the other partners do not pay the debt.

d.

personally liable to the full extent of the debt.

Owen and Pat are partners in Quality Investments, a partnership. Owen convinces Roy, a customer to invest in a nonexistent gold mine. Owen absconds with Roy's money. If Roy sues Pat, Roy will:Answer

a.

lose, because partners are not jointly and severally liable.

b.

lose, because only partnership assets are available to pay the judgment

c.

win, because partners are jointly and severally liable

d.

win, because partnership assets are available to pay the judgment

Adam and Beth form A&B, LLC, a limited liability company (LLC). One advantage of an LLC is that it may be taxed asAnswer

a.

a corporation.

b.

a partnership.

c.

a non-profit entity.

d.

a syndicate.

Ron and Sara form Top Goods, LLC, a limited liability company (LLC). A disadvantage of an LLC is thatAnswer

a.

its income is double taxed.

b.

its members are subject to personal liability for the firmâ s debts.

c.

its members cannot participate in its management.

d.

state laws concerning limited liability companies are not yet uniform.

Standard Interstate, LLC, is a limited liability company. Its members hire outside managers to operate the firm. These managers owe Standard Interstate and its membersAnswer

a.

a duty of care only.

b.

a duty of loyalty only.

c.

duties of care and loyalty.

d.

neither a duty of care nor a duty loyalty.

Great Goods, Inc. is a consumer products firm. As a source of authority for its organization and functions, its articles of incorporation areAnswer

a.

a primary source.

b.

a secondary source.

c.

a source of final resort.

d.

not a reliable source.

Ken is a shareholder of Local Delivery, Inc. A court might "pierce the corporate veil" and hold him personally liable for Local's debtsAnswer

a.

if Ken's personal interests are commingled with Local's interests to the extent that Local has no separate identity.

b.

if Local calls too many shareholders' meetings.

c.

if Local is overcapitalized.

d.

under no circumstances.

Jill is a shareholder of Kappa Company. As a shareholder, Jill does not have a right toAnswer

a.

compensation.

b.

dividends.

c.

inspect corporate books and records.

d.

transfer shares.

Jiffy Corporation uses cumulative voting in its elections of directors. Kay owns 3,000 Jiffy shares. At an annual meeting at which three directors are to be elected, Mary may cast for any one candidate

Answer

a.

1,000 votes.

b.

3,000 votes.

c.

9,000 votes.

d.

27,000 votes.

Micro Company makes and sells computer chips. Like most corporations, Micro's officers typically are hired by the company'sAnswer

a.

directors.

b.

incorporators.

c.

officers.

d.

shareholders.

Pat is a director of Quik Buy, Inc. Without informing Quik Buy, Pat goes into business with Fast Sales, Inc., to compete with Quik Buy. This violatesAnswer

a.

the business judgment rule.

b.

the duty of care.

c.

the duty of loyalty.

d.

none of the above.

Digital Equipment, Inc., sells computer products. Which of the following may Digital's board of directors do without shareholder approval?Answer

a.

Amend the articles of incorporation.

b.

Buy substantially all of the assets of another corporation.

c.

Dissolve the corporation.

d.

Sell substantially all of the assets of Digital.

Central Brokerage Associates sells securities. The definition of a security does not include, as an element,Answer

a.

an investment

b.

a common enterprise

c.

a reasonable expectation of profits

d.

profits derived entirely from the efforts of the investors

Frank, an officer of Gamma, Inc. learns that Gamma has developed a new source of energy. Frank tells Gail, an outsider. They each buy Gamma stock. When the development is announced, the stock price increases and they each immediately sell their stock. Subject to liability for insider trading is:Answer

a.

Frank and Gail.

b.

Frank only.

c.

Gail only.

d.

neither Frank nor Gail.

Dave and Earl decide to open a restaurant and operate the business as a corporation. At the directors' initial meeting, the directors mayAnswer

a.

adopt articles of incorporation only.

b.

adopt bylaws only.

c.

choose a corporate name only.

d.

adopt articles of incorporation and bylaws and choose a corporate name.

The four shareholders of Delta, Inc., want to prevent each other from selling the shares to third parties without first being given the opportunity to buy them. The shareholders can provide for this inAnswer

a. a buy-sell agreement that includes a "take-along" clause.

b. a buy-sell agreement that includes a right of first refusal.

c. a key-person clause that specifies who can sell what to whom.

d. none of the above.

The U.S. Fish and Wildlife Service orders Ed to stop using a certain type of fishing net from his boat. To appeal this order to a court, Ed mustAnswer

a.

appeal simultaneously to the agency and the court.

b.

bypass all administrative remedies and appeal directly to the court.

c.

exhaust all administrative remedies.

d.

ignore the agency and continue using the net.

Mary is an administrative law judge (ALJ) for the National Labor Relations Board. In hearing a case, Mary has the authority to makeAnswer

a.

decisions binding on the federal courts.

b.

determinations of fact.

c.

new statutory laws.

d.

new rules and regulations.

Best Toy Company begins marketing a new toy that is highly flammable. The Consumer Product Safety Commission mayAnswer

a.

ban the toy's future manufacture and sale, and order that the toy be removed from the market.

b.

ban the toy's future manufacture and sale only.

c.

do nothing until there is an injury or damage on which to base an action.

d.

order that the toy be removed from the market only.

Gamma Company owns a hazardous waste disposal site that it sells to Omega Properties, Inc. Later, the EPA discovers a leak at the site and cleans it up. The EPA can recover the cost fromAnswer

a.

Gamma only.

b.

Gamma or Omega.

c.

neither Gamma nor Omega.

d.

Omega only.

Tech, Inc., sells its brand-name computer equipment directly to its franchised retailers. Depending on how existing franchisees do, Tech may limit the number of franchisees in a given area to reduce intrabrand competition. Tech's restriction on the number of dealers isAnswer

a.

a per se violation of the Sherman Act.

b.

exempt from the antitrust laws.

c.

subject to continuing review by the appropriate federal agency.

d.

subject to the rule of reason.

Handy Tools, Inc., charges Irma's Home Store five cents per item and Jack's Hardware ten cents per item for the same product. The two stores are competitors. If this substantially lessens competition, it constitutesAnswer

a.

a market division.

b.

an exclusionary practice.

c.

a trying arrangement.

d.

price discrimination.

Nan sells her boat to Owen and Pat, who are not married. The contract of sale says that the buyers each have a right to survivorship in the boat. Owen and Pat likely own the boat asAnswer

a.

community property.

b.

joint tenants.

c.

tenants by the entirety.

d.

tenants in common.

To acquire the ownership of a strip of waterfront property by adverse possession, Glen must occupy the property exclusively, continuously, and peaceable for a specified period of timeAnswer

a.

in an open, hostile, and adverse manner.

b.

until the owner files suit.

c.

without the owner's knowledge.

d.

with the state's permission.

The United States has a common law legal system. Common law systems are based primarily onAnswer

a.

administrative rules and regulations.

b.

case law.

c.

detailed codified law.

d.

executive pronouncements.

Nora is a judge in the United States. As a U.S. judge, Nora normallyAnswer

a.

very actively participates in a trial.

b.

does not actively participate in a trial.

c.

is expected to question witnesses in a trial.

d.

is influence by politics.

Someone who believes that moral decisions should be made such that the greatest number of people receive the greatest amount of good out of the actions, believes in which moral theory?Answer

a.

Ethical relativism.

b.

Utilitarianism.

c.

Ethical fundamentalism.

d.

Kantian ethics.

The moral theory of ethical relativism can best be characterized by:Answer

a.

The consultation of an outside source, such as a book or person, for guidance.

b.

The belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society.

c.

The belief that a person must decide what course of action is proper based on what a society believes is proper and right.

d.

Determining which course of action produces the greatest amount of good for the greatest number of people.

A major criticism of utilitarianism is:

Answer

a.

Moral and ethical rules are too rigid and fixed over time.

b.

Some persons would take actions which they believe to be moral, but which most persons in a society believe to be immoral.

c.

Decisions require the weighing measurement of qualities and consequences which are not subject to precise measurements.

d.

Decisions are not allowed to take into account a particular person's station or place in society.

The Foreign Corrupt Practices Act prevents each of the following except:Answer

a.

Bribes to foreign officials.

b.

Bribes to foreign political party officials.

c.

Bribes to candidates for office in foreign nations.

d.

Bribes to foreign officials if the payment is legal under the written laws of the nation in which it was made.

Under the employment at will doctrine as a general rule:Answer

a.

Either party may terminate the employment relationship at any time and for any reason.

b.

Neither party may terminate the employment relationship at any time and for any reason.

c.

Only the employee may terminate the employment relationship at any time and for any reason.

d.

Only the employer may terminate the employment relationship at any time and for any reason.

Some consumers misuse the products of Midwest Manufacturing, Inc., and are injured. In terms of responsibility for consequences, Midwest may haveAnswer

a.

An ethical duty only

b.

A legal duty only

c.

An ethical and legal duty

d.

Neither an ethical nor a legal duty.

Payments by representatives of Western Technology, Inc. to foreign government officials in exchange for favorable business contracts in foreign countries areAnswer

a.

Always illegal under the U.S. Foreign Corrupt Practices Act since bribery is a serious legal wrong

b.

Legal if they are "facilitating and expediting" payments

c.

Always immoral since bribery is a serious ethical wrong.

d.

Legal if the foreign government official tells the company representatives that the payment is legal under the official's country's laws.