Business LAW 531 Week 6 Final Exam UOP HomeWork Tutorial
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<strong>LAW</strong> <strong>531</strong> <strong>Week</strong> 6 <strong>Final</strong> <strong>Exam</strong><br />
1. Ann is troubled with the noise from an old generator set up by her neighbor Jose at his<br />
residence. The noise the generator makes is unbearable. Ann sues Jose for nuisance.<br />
Will she succeed?<br />
a) Yes, because the noise is interfering with Ann’s use and enjoyment of the land.<br />
b) No, because the generator is not on her property.<br />
c) No, because she cannot interfere with Jose’s personal matters.<br />
d) No, because it is a reasonable noise.<br />
2. Which of the following is likely to be forbidden by Title VII?<br />
a) Discrimination against a woman solely because she is a lesbian.<br />
b) Discrimination against a man solely because of his gender.<br />
c) Discrimination against a black woman solely because of her religion.<br />
d) Discrimination against a person of French ancestry because he “talks like an<br />
Englishman.”
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3. Gath Meat Packing Company is a meat processing business. To reduce costs and<br />
increase profits, the president and CEO of Gath orders Gath’s employees to violate<br />
federal criminal meat processing laws. The United States Department of Justice<br />
prosecutes Gath for criminal violations of the meat processing law. Has Gath committed<br />
criminal violations?<br />
a) Yes, because the president and CEO, a high-level administrator of Gath, authorized the<br />
commission of the crimes.<br />
b) No, because the board of directors did not authorize the president and CEO or the other<br />
employees to violate federal law.<br />
c) No, because a corporation is not liable for most crimes committed by its agents.<br />
d) Yes, because a corporation is always liable for the crimes committed by its agents.<br />
4. For which of the following would a shareholder derivative action be appropriate?<br />
a) The shareholder alleges that the corporation has violated the shareholder’s preemptive<br />
right.<br />
b) The shareholder alleges that the board of directors has imprudently managed the<br />
corporation.<br />
c) The shareholder has refused a request that his/her accountant be permitted to look at<br />
the corporate accounting records.<br />
d) The shareholder alleges that the corporation has been paying dividends to a previous<br />
shareholder from whom the shareholder purchased his/her shares.<br />
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5. To prove his or her due diligence defense under the Securities Act Section 11 with regard<br />
to audited financial statements, an officer of the issuer must prove which of the<br />
following?<br />
a) The officer had no intent to misstate or omit a material fact in the audited financial<br />
statements.<br />
b) The officer had no reason to believe the financial statements omitted or misstated a<br />
material fact.
c) The officer made a reasonable investigation into the accuracy of the audited financial<br />
statements.<br />
d) The officer believed the financial statements did not omit or misstate a material fact.<br />
6. _________ is the plaintiff’s voluntary consent to a known danger.<br />
a) Negligence per se<br />
b) Comparative negligence<br />
c) Assumption of risk<br />
d) Contributory negligence<br />
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7. Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to<br />
take place in 10 days. The contract between Calvin and Sara is now _____.<br />
a) bilateral, executory, and implied<br />
b) bilateral, executed, and voidable<br />
c) unilateral, executory, and valid<br />
d) bilateral, executory, and express<br />
8. Which of the following is true about a sole proprietorship?<br />
a) A sole proprietorship is a legal entity.<br />
b) A sole proprietorship cannot sue or be sued.<br />
c) A sole proprietorship as a form of business can be transferred to someone else.<br />
d) A sole proprietorship has a life of its own apart from its owner.<br />
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9. _____________ means the accused failed to perceive a substantial risk of harm that a<br />
reasonable person would have perceived.<br />
a) Exculpation<br />
b) Recklessness<br />
c) Duress<br />
d) Negligence
10. The board of directors of Filex Corporation, at a regular meeting of the board, entered<br />
into a contract with Ginger Grant, one of the directors. This contract called for Filex to<br />
purchase 120 acres of land from Ginger. Of the ten members on the board, eight were<br />
present at the meeting. One of the directors present was Ginger. All the other directors<br />
were disinterested in the transaction and not related to Ginger. After a lengthy<br />
discussion, six directors voted in favor of the contract and two voted against it. Ginger<br />
voted for the contract. Which of the following is true?<br />
a) The contract is valid since it was approved by a majority of a quorum of the board.<br />
b) The contract becomes void if the corporation proves that the contract was unfair to it.<br />
c) The contract is voidable unless Ginger proves that the contract is fair to the corporation.<br />
d) The contract between Ginger and the corporation is illegal and invalid.<br />
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11. A limited partnership:<br />
a) May not have a corporation as a general partner.<br />
b) May be taxed either as a partnership or as a corporation.<br />
c) May be created by default.<br />
d) Dissolves when a partner dies.<br />
12. A method of alternative dispute resolution in which a neutral third party helps the parties<br />
reach a resolution of the dispute by facilitating communication, clarifying areas of<br />
agreement, helping see each other’s viewpoints, suggesting settlement options, but who<br />
cannot make decisions that bind the parties, is called _______.<br />
a) minitrial<br />
b) conciliations<br />
c) arbitration<br />
d) mediation<br />
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13. Jacobs put an old typewriter in the trash. The trash collector, Land, took the typewriter,<br />
fixed it up, and sold it to Jones for $750. Jacobs contends that he is entitled to some or<br />
all of the $750 that Land received from Jones. Based on these facts:<br />
a) Jacobs is entitled to recover the typewriter from Jones.<br />
b) Land is entitled to keep the full $750 because Jacobs had abandoned the typewriter.<br />
c) Jacobs is entitled to the $750 because Land paid Jacobs no consideration for the<br />
typewriter.<br />
d) Land is entitled to the value of the improvements he made, but Jacobs is entitled to the<br />
difference between the $750 Land received and the value of the improvements Land<br />
made.<br />
14. Which of the following is true regarding the principle of separation of powers?<br />
a) The President can allow the Supreme Court to overturn very broad delegation of power<br />
to administrative agencies.<br />
b) The Constitution seeks to ensure that governmental powers remain accountable to the<br />
public will.<br />
c) Congress is allowed to create an administrative agency only if Congress, rather than the<br />
President, will appoint the commissioners or board members of the agency.<br />
d) The congressional delegation of legislative power to an agency in its enabling legislation<br />
may never be challenged.<br />
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15. In which of the following cases does apparent authority arise?<br />
a) When a principal causes a third party to believe that the agent is authorized to act in a<br />
certain way.<br />
b) When a principal’s manifest consent is communicated directly to the agent.<br />
c) When an agent reasonably believes that the principal wants him to act in a certain way.<br />
d) When a person falsely represents himself as an agent of a principal to a third party.<br />
16. According to the law, crimes are statutory offenses; this essentially means that:<br />
a) The prevention of crime should include deterrence and rehabilitation.<br />
b) Courts may assess punitive damages in order to punish the wrongdoer.
c) It must be proved that the crime is dangerous or detrimental to society.<br />
d) A behavior is not a crime unless a state legislature has criminalized it.<br />
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17. Ted is the president of Soprano Corporation (SC). Ted decided to have SC manufacture<br />
large, gas-guzzling SUV automobiles just before gasoline prices rose dramatically. As a<br />
result, SC lost billions of dollars. The shareholders of SC want to sue Ted for this bad<br />
decision that cost them billions. However, Ted had made a reasonable investigation<br />
before making this decision, he had a rational basis for it, and he had no conflicts of<br />
interest regarding this decision. What would be the probable outcome if the shareholders<br />
file a suit?<br />
a) Ted is liable under the ultra vires rule.<br />
b) Ted is liable under the various liability rule.<br />
c) Ted is not liable under the corporate protection rule.<br />
d) Ted is not liable under the business judgment rule.<br />
18. Which of the following is also called “judgemade” law?<br />
a) Statutes<br />
b) Equity<br />
c) Uniform acts<br />
d) Common law<br />
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19. Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy’s booth<br />
where she was selling paintings of vineyards. Reggie admired a painting of vineyards<br />
that did not appear to be for sale. Reggie said to Tracy, “I will give you $200 for that<br />
painting right now.” Tracy said nothing in response but she gave Reggie the painting,<br />
and Reggie gave her $200 in cash. This is an example of a contract that is now _____.<br />
a) unilateral and executory<br />
b) bilateral and executory
c) bilateral and executed<br />
d) unilateral and executed<br />
20. Under the doctrine of federal jurisdiction, a corporation is:<br />
a) A citizen of only the place where it has been incorporated.<br />
b) A citizen of only the state where it has its principal place of business.<br />
c) A citizen of that state which has enacted a “long arm” statute and thus has jurisdiction.<br />
d) A citizen of both its place of incorporation and the state where it has its principal place of<br />
business.<br />
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21. Which of the following is true about cases regarding the intentional infliction of<br />
emotional distress?<br />
a) The plaintiff must be emotionally susceptible in order to recover.<br />
b) All courts require that the plaintiff’s emotional distress have physical manifestations.<br />
c) The defendant should exhibit sufficiently unreasonable behavior for liability.<br />
d) The plaintiff’s emotional distress must be severe.<br />
22. Which of the following statements is true of copyright?<br />
a) Copyrights for work-for-hire last for 50 years.<br />
b) Copyrights and patents last forever.<br />
c) Congress enacts copyright rules under the WIPO.<br />
d) There are different copyright rules for pre- and post-1978 works.<br />
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23. A plaintiff will succeed against her employer in a disparate treatment case under Title VII<br />
if she can prove that _____.<br />
a) her employer rarely approves of her requests for leave of absence<br />
b) her employer discriminates against her on the basis of race<br />
c) her employer does not pay her well
d) her workload is very high<br />
24. The damages recoverable in a patent infringement case cannot be less than:<br />
a) three times the damages actually suffered, and to be decided by the court.<br />
b) court costs and interest.<br />
c) reasonable royalty for the invention by the creator.<br />
d) reasonable royalty for the use of the invention by the infringer.<br />
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25. A contract in which one or more parties have the legal right to cancel their obligations<br />
under the contract is called a(n):<br />
a) valid contract<br />
b) void contract<br />
c) unenforceable contract<br />
d) voidable contract<br />
26. An essential element of a tort is that the alleged defamatory statement must be “of and<br />
concerning” the plaintiff. Why?<br />
a) It is extremely difficult to prove.<br />
b) It aims to protect reputation.<br />
c) It concerns public figures.<br />
d) It places the burden on the defendant.<br />
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27. Which of the following is an accurate statement about powers delegated to and<br />
possessed by administrative agencies?<br />
a) Most administrative agencies are given restricted powers to comply with the<br />
constitutional principle of separation of powers.<br />
b) An agency’s rulemaking power would be classified as discretionary power rather than<br />
ministerial.
c) The most important administrative agencies typically possess rulemaking powers but<br />
lack adjudicatory powers.<br />
d) Modern courts tend not to uphold the validity of broad delegations of power by Congress<br />
to administrative agencies.<br />
28. Which of the following is true of a person’s capacity to be a principal or an agent?<br />
a) To be an agent, a person must have the capacity to perform non-delegable obligations<br />
for the principal.<br />
b) To be an agent, a person must have the ability to make his own contracts, independent<br />
of the principal.<br />
c) A principal must have the capacity to do the acts for which the agent has been retained.<br />
d) Any duty that a principal has the capacity to perform can be delegated to an authorized<br />
agent.<br />
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29. The typical dissolution of a corporation requires approval of the _____.<br />
a) creditors of the company<br />
b) merger company<br />
c) shareholders<br />
d) board of directors<br />
30. A “long arm” statute allows:<br />
a) Criminal courts jurisdiction over civil cases<br />
b) State courts more power than federal ones<br />
c) Appellate courts to hear new cases<br />
d) Courts jurisdiction over out-of-state defendants.<br />
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