Academic help online
• Which of the following powers do administrative agencies typically have?
o Statute interpretation, law enforcement, and mediation
o Law enforcement, statute interpretation, and dispute resolution
o Rulemaking, statute interpretation, and dispute adjudication
o Dispute adjudication, mediation, and rulemaking
• The Sarbanes-Oxley Act prohibits publicly traded companies from making personal loans to whom?
o Its majority shareholders
o Its certified public accountants
o Its executive officers or directors
o Its legal counsel
In 1970, Congress established an administrative agency to enforce statutes enacted to protect the air and water of this country. What is the name of this agency?
o Army Corps of Engineers Agency
o National Ambient Air Quality Standards Agency
o Air Quality Control Agency
o Environmental Protection Agency
• If a corporate officer or director acts in a manner to make use of an advantage that he or she knows will only benefit himself or herself and deprives the corporation of that advantage, what breach of fiduciary duty has been committed?
o Duty of obedience by competing with the corporation
o Duty of care by violation of the business judgment rule
o Duty of loyalty by self-dealing
o Duty of loyalty by usurping a corporate opportunity
• The Sarbanes-Oxley Act is intended to increase the confidence of the public and investors through increasing which of the following?
o Separation of powers
o Director complacency
o Corporate veil
o Corporate governance
• Which of the following is likely to be a breach of a corporate officer’s or director’s duty of care?
o Failing to predict the startup of a new competitor
o Failing to react appropriately to a severe rise in the prime interest rate
o Failing to anticipate a drop in the consumer demand of the company’s product
o Failing to predict a raw materials shortage resulting from a natural disaster
• In order to prevent and clear hazardous wastes that increase mortality or serious illness, the federal government established a specific method to finance the cleaning of polluted areas by enacting what statute?
o The Superfree Act
o The Insecticide, Fungicide, and Rodenticide Act
o The Toxic Substances and Control Act
o The Comprehensive Environmental Response, Compensation, and Liability Act
• Under what system of corporate voting by shareholders can a minority shareholder achieve success in electing someone to the board of directors?
o Cumulative voting
o Proxy voting
o Straight voting
o Absentee voting
• Which of the following is true of the Federal Trade Commission?
o It is a federal agency created by Congress
o It is a branch of the U.S. Supreme Court
o It is a corporation subsidized by the federal government
o It is a temporary commission created by executive order that has become permanent
• In order to protect wildlife that may be subject to scarcity, which Executive Branch cabinet member designates which species of wildlife may be endangered or threatened?
o Secretary of the Interior
o Secretary of Health and Human Services
o Secretary of Homeland Security
o Secretary of Commerce
• Unless otherwise stated in the articles of incorporation, a quorum to hold a meeting of the shareholders is generally defined as which of the following?
o A committee of directors selected to vote on a corporation action
o The number of registered shareholders eligible to vote at a given time
o The number of shareholder votes necessary to pass an action
o A majority of shareholders required to be present to vote on a corporate action
• If a corporate officer in the position of secretary intentionally takes over the powers provided to the treasurer in the corporate documents, what fiduciary duty does that corporate secretary breach?
o Duty of care
o Duty of good faith and fair dealing
o Duty of obedience
o Duty of loyalty
• Officers of a corporation typically can have which types of agency authority to bind the corporation?
o Express, transparent, and applied
o Express, transparent, and implied
o Express, applied, and apparent
o Express, implied, and apparent
• According to the provisions set forth by the Sarbanes-Oxley Act, which federal government agency may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company?
o Federal Communications Commission
o Securities and Exchange Commission
o Federal Reserve System
o United States International Trade Commission
• Tuff-Steele Constructions, Inc. has not been adhering to appropriate worker safety rules. As a result, there have been an increased number of on-site accidents and several construction workers have sustained serious injuries. Which of the following powers will allow an administrative agency to bring agency proceedings against Tuff-Steele Constructions?
o Rulemaking
o Judicial authority
o Licensing
o Executive power
1 Which of the following examples is a bilateral contract?
Mary pays Bob for Bob’s promise to paint her house on Saturday.
Bob paints Mary’s house and Mary promises to pay Bob on Saturday.
Mary pays Bob for painting her house.
Mary promises to pay Bob if Bob promises to paint her house.
2 Parties enter into a contract for services and one party commits a breach. The party who breached wants to continue with the contract but wants the terms revised. What is his best method of dispute resolution?
Arbitration
Negotiation
Mediation
Med-Arb
3 To create an enforceable contract, which of the following are needed?
Agreement, consideration, contractual capacity, and a lawful object
Offerer, offeree, agreement, and capacity
Agreement, consideration, objectives, and contractual capacity
Offerer, acceptance, agreement, and consideration
• 4 Which of the following is true when someone mistakenly makes an improvement to the personal property of another?
The property owner automatically gets to keep all of the improvement and is not required to pay for it.
The party who made the improvement can remove it if this is possible; otherwise, the owner of the property must keep the improvement and must pay the party who improved it the reasonable value of the improvement.
The party who made the improvement must remove all easily removable improvements, paying any damages from the removal, otherwise the owner of the property gets to keep the improvement and is not required to pay for it.
The property owner gets to keep the improvement in all cases, but must pay the party who improved it the reasonable value of the improvement.
5 An individual who finds the personal property of another, acquires legal title to that property against the entire world, only if it is what type of personal property?
Stolen property
Mislaid property
Lost property
Abandoned property
6 Wildboards Company introduces a product called a “Rollerboard” for which it is granted a registered trademark. The Rollerboard is a snowboard with a removable row of wheels along the center of the underside. With the wheels attached, the user can attain extremely high speed in hard-packed snow conditions. In addition, many users have found that they can use their snowboards on streets with the wheels attached. This new use of snowboards becomes very popular and many competing snowboard makers introduce similar products. The sport becomes known generally as rollerboarding and most people refer to all such wheeled snowboards as rollerboards. What is the consequence of this scenario?
Wildboards can no longer use the name Rollerboard on its boards.
Competitors must pay royalties to Wildboards for using the term “rollerboard”.
Competitors must put a disclaimer on their boards that they are not the original Rollerboard.
Wildboards cannot stop competitors from using the term “rollerboard” for their products.
7 Consideration, which is required in a contract, consists of which two elements?
Legal value is appropriate and the value is paid.
Money must be received and a promise fulfilled
Legal value must be given and there must be a bargained-for exchange
Money must be paid and funds received.
o
Incorrect
• 8
Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1,000 for shoveling the snow from his driveway throughout the winter. Jenson, who was paid before work commenced, breached the contract on the very first day. He should refund $1,000 to Johnson as
liquidated damages
consequential damages
compensatory damages
restitution
9 A(n) ________ is an agreement that is stated orally or in written words.
implied-in-fact contract
quasi-contract
implied-in-law contract
express contract
10 Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no actual conract exists?
The doctrine of implied-in-law contract
The doctrine of formal contracts
The doctrine of Quantum meruit
The express contract doctrine
• 11 Apart from recovering damages, and recovering profits made by the offender, successful plaintiffs in a misappropriation of a trade secret case can also
ask to acquire the offender’s trade secrets as payoff
obtain an injunction prohibiting the offender from divulging the trade secret
obtain the offender’s trademarks or brand name as payoff
ask for transfer of any of the offender’s patents to the plaintiff
12 What federal statute governs the legal use of electronic contracts?
Uniform Commercial Code
Federal Enforcement Act
Uniform Computer Information Transactions Act
Federal Banking Act of 2010
13 Some trees were cut down and made into lumber, and the lumber was used to build a house. What type of property were the trees while they were growing, when they were lumber, and when they became part of the house, respectively?
Real, personal, real
Real, real, personal
Personal, personal, real
Personal, real, real
14 Oral agreements may be legally enforceable contracts with the exception of some types of contracts specified in which law?
Statute of Frauds
Statute of Limitations
Common Law Statute
Statute of Verbal Contracts
15 Contracts are discussed primarily in Sections 2 and 2A of the Uniform Commercial Code pertaining to which of the following transactions?
Financing of consumer goods
Sale of real property
Sale of commercial goods
Sale of goods and lease of goods
16 Which of the following is true about the public use doctrine?
A patent will not be granted if the invention was already in public use for one year before filing application
The invention will come into the public domain once its term period has expired
An invention cannot be used in the public domain prior to it being granted a patent
The inventor has to test his invention in the public domain, to measure its validity, before being granted a patent
17 Which of the following is the best definition for the legal term promissory estoppels?
A promise made in a contract must be an express promise in order to be valid
A party to a contract cannot promise to provide illegal consideration
A party to a contract cannot withdraw a promise if the other party to the contract relied upon the promise to his or her detriment
A gift promise made in an estate is valid and legal
18 Which of the two parties are involved in every contract?
A breaching party and a nonbreaching party
An offeror and offeree
An initiator and a responder
A buyer and seller
19 In order for a response to be considered a legal acceptance to an offer, and not a counter offer, what rule must apply?
The voluntary performance rule
The public law rule
The lapse of time rule
The mirror image rule
20 Which of the following types of real property rights can be sold separately from the land?
Building fixtures on the land
Improvements under the land
Minerals in the subsurface
Buildings and improvements on the land
21 Both the Statute of Frauds and the Uniform Commercial Code require a valid, enforceable contract to be signed by whom?
All parties to the contract
None of the parties to the contract
Party enforcing the contract
Party against whom the contract enforcement is sought
22 If a contract ends in a dispute, and the parties want to have the matter resolved without going to court, which is the most common method for them to pursue?
Discovery
Minitrial
Arbitration
Mediation
23 What is the highest type of ownership estate in real property?
Freehold estate
Fee simple absolute estate
Leasehold estate
Life estate
24 Which of the following examples is a unilateral contract?
Debbie pays Larry for Larry’s promise to paint her house on Saturday.
Debbie pays Larry for painting her house.
Debbie promises to pay Larry when Larry paints her house.
Larry promises to paint Debbie’s house if Debbie promises to pay him.
25 Under Section 2 of the Uniform Commercial Code (UCC), a contract for the sale of goods must be written if that contract is for what monetary value?
$100 or more
$250 or more
$1,000 or more
$500 or more
• 25 Contracts are discussed primarily in Sections 2 and 2A of the Uniform Commercial Code pertaining to which of the following transactions?
Sale of goods and lease of goods
Financing of consumer goods
Sale of commercial goods
Sale of real property
• Which of the following is true of a corporation?
o A corporation is a separate legal entity.
o Corporation owners are only taxed once on earnings.
o Corporation shareholders are subject to unlimited personal liability.
o A corporation terminates upon the death of an owner.
• Fred and Ginger are general partners in a business. They decide to purchase a building for the partnership. Ginger will put up the money for the building, and Fred will complete the remodeling. While inspecting the building, Fred is informed that the building is packed full of asbestos. He fails to tell Ginger of the presence of the substance. They buy the building and go into business. During the remodeling of the building, people from the neighborhood begin complaining about the dust from the building. Some of them even threaten to sue. Who is liable?
o Fred is liable because he was put on notice of the presence of the substance. Ginger is not liable because she did not have actual knowledge.
o Neither Ginger nor Fred are liable personally, nor is the partnership, as they did not put the substance in the building.
o Both Ginger and Fred are liable, regardless of the circumstances, by virtue of the fact that they are partners.
o Ginger is liable because she is the one who purchased the building. Fred is not liable, even though he had actual knowledge, because he did not purchase the building.
• Which type of business formation is typically reserved for professionals such as accountants, lawyers, and doctors?
o S-Corporation
o Franchise
o Limited Liability Company (LLC)
o Limited Liability Partnership (LLP)
• Which of the following is one of the major purposes of a settlement conference?
o To facilitate the settlement of a case
o To structure a settlement payment schedule
o To contest the local court rules
o To conduct discovery for a case
• When parties agree in advance to adhere to an arbitrator’s decision and award, it is known as
o binding arbitration
o mediation
o appealable
o arbitrator discretion
• Which of the following is true about the choice of business entity for an entrepreneur?
o The choice is determined solely by whether the primary business is services or goods.
o The choice is determined by the Internal Revenue Service based on all the facts and circumstances.
o The choice takes into account many factors, including finding an option that has all the characteristics desired.
o The choice is determined solely by the amount of capital invested.
• Which of the following is true in the creation of a general partnership?
o The name selected cannot indicate that it is a corporation.
o The business name cannot be a fictitious name.
o The business name must have the names of all the partners.
o The business cannot operate under a trade name.
• George has served Mary with a complaint alleging breach of contract. Mary has never been sued before and as such, she seeks your advice on what to do with the complaint. You advise that she
o answer George’s complaint but do not provide any affirmative defenses that George can use against her
o write a letter to the judge saying that George is mistaken
o should not respond to George’s complaint as an answer implies an admission
o answer George’s complaint by admitting or denying the allegations George has asserted against her
• There are two general partners, each of whom contributes $5,000 in capital to a limited partnership. There are two limited partners, each of whom contributes $20,000. The total amount of capital contributed is $50,000. The limited partnership agreement does not stipulate how profits and losses are to be allocated. Assume that the limited partnership makes $300,000 in profits. Under the Revised Uniform Limited Partnership Act (RULPA), how much would each partner receive?
o Each general partner would receive $50,000, and each limited partner would receive $100,000.
o Each general partner would receive $120,000, and each limited partner would receive $30,000.
o All partners would receive $75,000, regardless of whether he or she is a general or limited partner.
o Each general partner would receive $30,000, and each limited partner would receive $120,000.
• What is the effect of having a corporation as the general partner of a limited partnership?
o The liability of the corporate general partner will be limited to the amount of its assets.
o Each shareholder of the corporation will be treated as a general partner of the limited partnership.
o The limited liability of the corporation will result in the limited partners having greater liability than they would otherwise.
o Each shareholder of the corporation will be treated as a limited partner of the limited partnership
• Which of the following is true regarding mediation?
o Was created by the Federal Mediation Act of 1925.
o A settlement agreement is never reached with a mediator.
o If a settlement agreement is not reached in mediation, then the parties hire a new mediator.
o A mediator does not make a decision or an award.
• Which of the following is true of arbitration?
o A resolution may or may not be reached.
o A judicial referee makes recommendations to the parties.
o Parties can introduce evidence to support their case.
o One party usually drops the case.
• Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute?
o Arbitration
o Mediation
o Minitrial
o Conciliation
• The Black Squirrel limited partnership has been in operation for many years, but has recently fallen on hard times. The partners have decided to dissolve, although there are few assets remaining in the partnership. Shortly after the partnership filed its certificate of limited partnership, the partners had the foresight to incorporate into their partnership agreement a provision that, in the event of dissolution, the assets would be distributed in payment of claims first to limited partners, then to general partners, then to creditors. Hilda is a limited partner and feels relieved that she will receive at least a portion of her capital. Henry, one of the general partners, said that this provision is void and unenforceable. Which of the following best describes this situation?
o The distribution of assets in the event of dissolution is one of the few provisions where the Revised Uniform Limited Partnership Act does not allow modification.
o The distribution, as called for in the agreement, would be enforceable if it had been included in any filings related to the limited partnership.
o The provision placing the partners ahead of creditors is not enforceable, but the priority of limited partners over general partners is enforceable.
o The provision placing limited partners ahead of general partners is unenforceable, thus all partners would be on an equal footing and ahead of creditors.
• Martha started a flower shop as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?
o Martha is personally liable for the additional $75,000 owed to business creditors.
o Martha’s business creditors can collect only the $50,000 of business assets.
o Martha’s business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.
o Once Martha terminates the sole proprietorship, she is no longer liable for the $50,000.
• Which of the following is true of The Federal Arbitration Act?
o It permits an appeal for all arbitration awards.
o It applies only to breach of contract disputes.
o It governs all types of alternative dispute resolution.
o It provides that arbitration agreements are valid, irrevocable, and enforceable.
• Assuming that statutory requirements have been met, what is protected under merchant protection statutes?
o Merchants are protected from false imprisonment claims of persons detained on suspicion of shoplifting.
o Merchants are protected from product disparagement claims of their competitors.
o Merchants are protected from negligence claims on their business premises.
o Merchants are protected from the intentional torts of their customers.
• Which of the statements below best describes the concept of Enterprise Risk Management?
o Management of a single function of an organization that, upon implementation and testing, is then processed entity wide
o An approach that capitalizes on human intervention as processed through real change leaders
o People, systems, and processes working together across the organizations to systematically thin about and manage a wide range of risks that could impede achieving organizational objectives/opportunity
o A process affected by an entity’s leaders, management, and other personnel that is designed to identify potential events that may affect the entity, and to manage risk
• Diane bought an action figure for her son David from Terrence’s Toy Shop. The packaging did not mention that the toy contained small detachable parts. David accidentally swallowed and choked on one of the detachable parts and had to be taken to the hospital. On which of the following product liability charges can Diane sue Terrence’s Toy Shop for damages?
o Nuisance
o Fraud
o Misrepresentation
o Negligence
• Dorothy purchases a chair that was made by Woode Designs, Inc. While making the chair, the legs were not fixed properly to the base. When Dorothy sits on the chair, it breaks and she is injured. In a strict liability lawsuit, which of the following can Dorothy cite as a defect in the chair?
o Failure to warn
o Failure to provide adequate instructions
o Defect in design
o Defect in manufacture
• The failure to design an automobile that will properly protect the occupants from a person’s body striking something inside their automobile is known as the
o defective design doctrine
o failure to design doctrine
o crashworthiness doctrine
o quality control doctrine
• Mary was getting a ride home in John’s new car. On the way, a malfunctioning brake caused an accident and both Mary and John were injured. Which of the following statements is true of this situation?
o Mary can file a strict liability lawsuit against John.
o Mary can recover damages for her injury under a theory of strict liability against the manufacturer of John’s car.
o John can file a negligence lawsuit against the dealership from which he bought the car.
o Mary can file a negligence lawsuit against the dealership that sold John his car.
• According to the doctrine of ________, the plaintiff is not required to prove that the defendant breached a duty of care.
o assumption of risk
o contributive negligence
o comparative negligence
o strict liability
• Making false statements about a competitor’s products, services, property, or business reputation could make a company liable for
o misappropriation of the right to publicity
o intentional misrepresentation
o disparagement
o tort of appropriation
• Which of the following is a key element of successful Enterprise Risk Management?
o Nondisclosure agreements
o Legal counsel
o Strong investment strategies
o Management commitment
• Which of the following is the best statement of the test applied in determining if a defendant’s actions were the proximate cause of the plaintiff’s injuries?
o Was the injury foreseeable to the plaintiff prior to the injury’s occurrence?
o Was it foreseeable that the defendant’s conduct would lead to the kind of injury that the plaintiff suffered?
o Was it foreseeable to the plaintiff that the defendant would engage in this conduct?
o Was it foreseeable that the defendant was the cause of the plaintiff’s injuries given the nature of those injuries?
• Bartie’s, Inc. sells watercolors and pastels that are marketed as safe for use by children. However, several accounts of lead poisoning were reported in children who used the products. An investigation revealed that the company was knowingly manufacturing colors that contained toxic amounts of the heavy metal. Which of the following torts has Bartie’s, Inc. committed?
o Intentional misrepresentation
o Assault
o Professional malpractice
o Disparagement
• George, Jerry, and Harry are passengers on a flight from Chicago to New York. They injure their legs when their seatbelts do not fasten during takeoff. The airline is sued by all three together for injuries caused and the airline is found to be negligent and is directed by the court to pay damages to the injured parties. Which of the following parties is entitled to recover maximum damages?
o All the men recover the same amount of damages, irrespective of their income or profession
o Jerry, a professional football player who earns $2 million a year
o George, a retired professor who gets a pension of $50,000 a year
o Harry, a chartered accountant who earns $200,000 a year
• How does product disparagement differ from defamation of a nonpublic figure?
o Publication to a third party is required in the defamation case, but not in the disparagement case
o Publication to a third party is required in the disparagement case, but not in the defamation case
o Malicious intent is required for the defamation case, but not in the disparagement case
o Malicious intent is required for a disparagement case, but is not required in the defamation case
• John Harley was on his way home when an assailant stopped his car and threatened to physically harm him if he ever saw him drive on that street again. John can sue the assailant to recover damages for
o battery
o assault
o disparagement
o libel
• A plaintiff wants to sue a defendant under the tort theory of negligence for his injuries, but the plaintiff knows he was partially at fault for his own injuries. Which of the following is true?
o The plaintiff will have to elect whether to sue under comparative or contributory negligence.
o A state whose law applies contributory negligence will not allow the plaintiff to recover if the plaintiff has any fault for his injuries
o Because the plaintiff is partly at fault, he will not be able to recover under either comparative or contributory negligence.
o If the plaintiff’s fault is only 5 percent, his recovery will be the same under either pure or partial comparative negligence.
• Select the option which best completes this statement: Enterprise Risk Management is most effective when it is a(n) _________ process.
o ongoing
o one-time
o informal
o static
• In order to recover in a products liability case based on strict liability, the plaintiff must prove that the product had a defect that
o made the product unreasonably dangerous
o affected the value of the product
o the defendant was aware of
o was caused by the defendant
• Which best describes assumption of the risk in a negligence case?
o The plaintiff was involved in an abnormally dangerous activity.
o The defendant gave advance warning to the plaintiff that an injury would occur.
o The plaintiff is more at fault than the defendant in causing the accident.
o The plaintiff knowingly and willingly subjected herself to a risky activity.
• Gary Govetty is a famous movie star. A tabloid published an interview with his ex-girlfriend in which she falsely claimed that Gary was completely bald and had been wearing a wig for several years. Gary can sue his ex-girlfriend for
o libel
o disparagement
o invasion of privacy
o slander
• Which of the following is a defect in manufacture?
o Failure to properly design the product
o Failure to properly package the product
o Failure to include adequate instructions for the product
o Failure to properly test the product
3
Academic help online