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Business Law 633
SUMMER 2016
Name #1 :____________________________________
Note there are two multiple choice answer pages this answer page is for the first set of MC questions
Instructions: Part One: Below are multiple choice questions please write the ANSWER of the letter on the answer sheet pages printed directly below these instructions. READ the questions carefully. Type the letter of your answer on the line 1.____B_____
1._____________ 16.____________ 31._______________46._______________ 61._______________
2._____________ 17._____________ 32._______________ 47._______________ 62._______________
3._____________ 18.____________ 33._____________ 48._______________ 63.________________
4.______________ 19._____________ 34._____________ 49.________________ 64.________________
5.______________ 20._____________ 35.______________ 50._________________ 65.________________
6.______________ 21.______________36.________________51.______________ 66._________________
7.______________ 22.______________37.________________52._______________
8.______________ 23.______________38.________________53.________________
9.______________ 24.______________39.________________ 54._______________
10.______________25.______________40.________________ 55._________________
11.______________26._______________41.________________ 56._______________
12.______________27.____________ 42._______________ 57.________________
13.________________28._____________ 43.________________ 58._________________
14.________________29._____________44.________________ 59.______________
15._____________ 30._____________ 45.________________60_____________
NAME #2_____________________________
This answer sheet is for the second set of MC questions
YOU MUST WRITE THE LETTER FOR ALL ANSWERS ON THIS SHEET
TO GET CREDIT FOR YOUR ANSWERS.
1.__________ 18.______________
2.__________ 19.______________
3.__________ 20.______________
4.__________ 21._______________
5.__________ 22._______________
6.__________ 23.______________
7.__________ 24._______________
8.__________ 25._______________
9.__________ 26.________________
10.___________ 27._________________
11._____________ 28._________________
12.____________ 29._________________
13.______________ 30.__________________
14._______________ 31.________________
15._______________ 32.________________
16._______________ 33.__________________
17.______________ 34._________________
35.__________________
36._________________
Remember to write your name on the exam
PAGE BREAK FOR ESSAYS
Label Essays and add more pages as Necessary
MC Questions SET #1 to go on Answer Sheet #1
1. Jennifer is talking to Brion and verbally agrees to sell him her house and land for $125,000. Brion Agrees because he thinks the house is worth $200,000. The following week Brion gets a written contract from Jennifer but the sale price in the written contract is now $250,000. Brion wishes to enforce the original agreed upon price of $125,000. To be legally correct, you should tell Brion
a.) That the $125,000 price that was agreed to previously is not enforceable under the Statute of Frauds
b.) That Brion can enforce the $125,000 price by taking Jennifer to court
c.) That Brion must first pay the $250,000 but can sue Jennifer for the difference in price (125,000).
d.) That Brion can require specific performance, the sale of the house, because it is a unique item
2. To be a valid mutually enforceable contract four basic requirements must be met, those are:
A. Assent, Benefit, Control, Capacity
B. Writing, Waiver, Signing, Savior
C. Delivery, Determination, Accord , Satisfaction
D. Offer, Acceptance, Consideration, No Defenses
3. In the Indiana Gazette a Reward is written that says… Lost dog named “Peek-a-chew”, miniature poodle, wearing dog tag with owner name and phone number 555-5555, reward $100. With no prior knowledge of the Ad, “Fred” almost hits a dog on his way home… He pulls over and finds the dog Peek-a-Chew as described. He calls the number and returns the dog to the house. The owner says thank you, but does not offer the reward. Feeling as though he did a good deed, Fred returns home and reads his newspaper, and for the first time, sees the reward Ad. What can Fred legally do now about the situation?
a) Run over the Dog
b) Run over the Owner
c) Sue the owner for the reward
d) nothing
4. Brion is dating a girl named “Julia”. Julia really doesn’t like Brion and is using him for free meals and presents. She cheats on him all the time and really doesn’t even think they are “going out”. Over the course of six 6 weeks since they have met, Brion has paid $500 for meals, $300 in concert tickets, $250 for a crystal music box that plays Phantom of the Opera, $800 for airline tickets in her name, and a whopping $1000 to buy her a new plasma TV. Why… Just because he wanted to make her happy… Sometimes she would “hint”… Gee I would really like to see that concert… Or I wish I had a TV. One week after the plasma TV, she tells Brion she is getting married to her fiancée who she was dating/sleeping with during this entire time. Brion always wondered why she was out of town every other week… and the presence of male deodorant and cologne in her bathroom… and the bizarre phone calls and the time some other guy sent flowers… Ok, anyway…In terms of this situation Brion can legally recover from Julia:
a) $250 Music Box, $1000 TV
b) $250 Music Box, $1000 TV, $800 Airline tickets
c) The value of everything he spent
d) Nothing
e) A little self respect are you kidding me…Go to the post office get a change of address form and put her address in the moving from box and an address in Botswana in the moving To Address…
5. A voidable contract is voidable by:
a) either party
b) only the party who is suffering from the disability (excuse)
c) Only the party who is not suffering from the disability (excuse)
6. Brion gets a credit card offer in the mail. Like most such offers, he doesn't open it up and simply puts it in the trash. Three months later when he gets a $25.00 bill from the credit card company that says he must pay an annual fee as part of his acceptance of the credit card. Brion calls the company to question them and a representative says, “didn't you read the offer we sent you...” He says, no I always throw away offers from your company. Well the lady says, "big mistake". Our offer says "the afore-mentioned addressee who this letter was sent to automatically affirms and accepts all terms and conditions contained in this offer, unless they notify the company within 48 hours of receipt that they do not wish to be a part of this offer." In terms of this situation
a) Brion must pay the $25.00
b) Brion doesn't have to pay the $25.00
7. Brion is studying for the bar exam and there is a special one week bar preparation course that is 100% lecture and costs $1000 dollars. Brion does not have $1000, so he sneaks in the back of the room and merely listens to the lectures. On the 5th day, the lecturer calls on him to answer a question and Brion says, "Oh, I’m just listening". Afterwards, the lecturer checks the registered attendees and not seeing Brion's name sends him a bill for $1000 which is the cost of attending the review course. In terms of this situation:
a) Brion will not have to pay because he never accepted the contract to attend the preparation course
b) Brion will not have to pay because of the statute of frauds
c) Brion will have to pay because attending was acceptance and performance
d) Brion will have to pay because of the parole evidence rule
8. Brion and Dan are talking about their cars when Brion mentions he is thinking about selling his car, a 1996 Ford Explorer for $2500. Dan seems interested and says well I'll think it over. That night Brion decides to sell his car to his best friend for only $2000 and the deal is executed. The next day Dan calls Brion and says, I accept your offer. With respect to this situation which is the best answer?
a) Brion's statement was an illusory offer thus there was no offer to which Dan could accept.
b) Brion's selling of the Explorer to his best friend acted as a revocation of the alleged offer.
c) all of the above
d) none of the above
9. After watching “Fear Factor” Alana challenges her friend Andrea to eat 20 live crawling roaches in return for $100 dollars. Andrea picks up the first roach by the silvery black of its crawling shell and brings the roach tentatively towards her lips. As the antennae tickle her throat and the legs dance on her tongue she bites down and hears the gritty crunch of Roach death followed by a bitter acid like taste that resonates through her mouth and body. Andrea chokes down a swallow and hears Alana through bursts of laughter say, I just made you eat a roach, I revoke my offer. With respect to this situation.
a) Alana can revoke because of a lack of adequate consideration
b) Alana can revoke the offer because Andrea did not substantially perform
c) Alana cannot revoke the offer because the contract was executed
d) Alana cannot revoke the offer because Andrea has started performance and must be given a reasonable time to perform
10. Eddie’s store publishes exactly the following advertisement in the Silver City Morning News on Monday March 12, 1996
Sale March 17th, Brand New Gold plated bowling balls, selling for $80.00 each
7 Mexican ruby necklaces worth $12,500 now selling for $10,000. First come, First serve, limited quantities.
On March 17th, Bob was the first customer in line the minute the store opened and he was the first to arrive at the store and demanded a Mexican ruby necklace. The store clerk told him that it was store policy to offer the merchandise to employees first and one of the employees had already purchased all the Mexican ruby necklaces on March 16th.
If Bob brings suit against Eddie’s store for their refusal to sell him the necklace, Bob will
a) lose since the advertisement was not an offer
b) lose since Bob did not notify the store in writing that he intended to accept the offer
c) win, because the advertisement should be construed as a binding offer
d) win, because of the Statute of Frauds
11. Brion owns The Tennis Racket of Andre Agassi that he used when he first won Wimbledon. Brion is desperate for money and sells the racket on e-Bay to Monica for $1000. When it comes time to Deliver the racket, Brion sends a more advanced and better racket to Monica but one that was never owned by Andre Agassi. In terms of this situation:
a. Monica has no damages because the replacement good was actually better than the contracted goods
b. Monica must send the racket back to Brion, and go out and buy a replacement racket so that she mitigates her damages and she can collect from Brion the difference between what she spent on the racket and the contract price.
c. Monica can get a court order requiring specific performance and delivery of the Andre Agassi Racket.
d. Monica gets nothings because Brion substantially preformed the contract.
12. Tim who has just been injured in a car accident signs up with a law firm run by a famous and well known local attorney William Mattar... "Hurt in a car, call William Mattar". Tim is pleased because William Mattar assured him that his years of trial practice and his personal representation and expertise will help win the case. William Mattar takes payment from Tim but delegates his duty of performance of representation to another lawyer Brion. In terms of this situation:
a) Tim can force performance by William Mattar because duties cannot be delegated under these circumstances
b) Mattar has properly delegated his duties under the contract
c) Does it really matter, A lawyer... is a Lawyer.... is A Lawyer.... is a rat,
d) Brion is an intended third party beneficiary of the contract and can enforce his rights under the contract thus preventing Tim from mandating that Mattar represent him.
13. Brion has a valid written contract to buy 100 soccer balls from Sam for $1000. Payment is to be made upon receipt of the soccer balls. Delivery of the balls is supposed to take place one week from the day they signed the contract. However, the next day, Sam says he is not going to send the soccer balls. Upon Notification, Brion immediately goes out and purchases replacement soccer balls at a total cost of $1200. Brion wishes to sue Sam for breach of contract. What is the court most likely to hold as Brion's remedy.
a. $1000
b. $1200
c. $200
d. Specific Performance
e. Liquidated Damages of $800
14. When an accountant sells their "uncollectible" accounts receivable (i.e. customers that owe the company money who might not pay), to a debt collection company for 10% of the value of the receivables. They are in essence...
A.) Assigning their rights to collect the debt
B.) Delegating their duties to collect the debt
C.) Making the customer a third party beneficiary to the contract
D.) Doing something illegal
15. The clause represented below is probably best described as:
No Party shall be liable for any failure to perform its obligations where such failure is as a result of Acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (whether war is declared or not), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, labor dispute, strike, lockout or interruption or failure of electricity or [telephone service], and no other Party will have a right to terminate this Agreement under Clause 19 (Termination) in such circumstances
a) Assignment of Third Party Rights
b) Declaration of Delegation of Duties
c) Force majeure clause
d) A Corli Raff Contract Amendment
16. “Deon” has a contractor build a house and he requests that the house have double pane windows. The contractor builds his house and installs single pane windows. With respect to this situation
A.) The contractor has committed a material breach and Deon can rescind the contract and get all his money back
B.) Deon can destroy the house and charge the contractor for its destruction
C.) The contractor has substantially performed and Deon must mitigate his damages by fixing the problem and charging the Contractor for the extra cost.
D.) None of the above
17. Dactor is a software company that has been hired to install an ordering and customer service interface for a Corporation “Xerox”. In discussions Dactor has promised that the interface will allow customers of Xerox to order all Xerox supplies and copiers in a seem-less fashion and will link to Xerox inventory and keep track of incoming and outgoing inventory. Xerox signed a valid written five year agreement with Dactor for such services and software. However, after six months, and before the system went live to customers it is apparent that Dactor lied about what its product would do and that there would be no ability to link inventory and there are many problems with the customer service interface. Given this situation what claim would provide Xerox the best chance of getting out of the contract?
a) Statute of Frauds
b) Parole Evidence
c) Fraud
d) Unconscionability
18. Ford has a contract with the US Government to build 500 HumVee Vehicles. In the contract the specifications call for the use of Dunlop brand tires. Ford and the US Government sign the contract. However, the following month the US Government tries to back out of the deal because the war in Iraq has ended and their might not be a need for the HumVee’s anymore. Ford has agreed to let the US Government back out of the deal, but Dunlop refuses to allow the contract to be canceled. With respect to this situation.
a) As long as the two “people” who signed the contract agree to cancel it (Ford and US Government), it will be canceled
b) Ford can agree to cancel the contract because Dunlop is an incidental beneficiary to the contract
c) Ford cannot agree to cancel the contract because Dunlop is a third party intended beneficiary to the contract
d) Ford cannot agree to cancel the contract because Dunlop is a fundamental rights contracting party
e) Dunlop has no right to disagree because they did not sign the contract
19. In the contract cases such as those involving the Happy Days actors an important lesson is who is primary responsible for monitoring the performance of a contract?
a) The courts
b) The Police
c) The parties that signed the contract
d) None of the above
20. Mary just turned 16 years old yesterday and decides to spend all her birthday money. She goes to a rental agency and signs a six month rental agreement for a 48 inch color television. She pays $600 upfront, to cover the rental rate of $100 per month for six months. She fills out all the paperwork truthfully including her name, date of birth, and social security number. After three months, she goes back to the rental store, gives them the TV back and says she wants a refund of all her money. The store asks if there is anything wrong with the TV and Mary says, no I just don’t feel like watching TV anymore. The store refuses to give her any money back claiming she breached her written, signed contract. What is the likely result of this situation?
a) Mary will owe the whole $600
b) Mary will owe $300 for the three months she used the TV
c) Mary will owe nothing, she gets the $600 back
d) Mary ratified the contract by using the TV and she will owe $600
21. After this exam, Stefany goes out and gets absolutely “plastered” and does an “all around the world tour of the bar”. A total of 23 Shot concoctions from every country, Tequila, Vodka, and some neon green South American drink called “Anti-freeze”. In her grossly inebriated state, Stefany agrees to sell her brand new 2003 Dodge Viper to Jane, if Jane can Balance a full beer glass on her head while doing the Hokey-Pokey (dance). Jane successfully does the deed and gets the keys to the car. The next morning, Stefany wakes up on the floor of the bar (after all she had no car) and immediately calls Jane to get her car back. With respect to this scenario
a) Jane can keep the car, there was a valid binding contract
b) Jane must give the car back, there was a voidable contract
c) There never was any kind of contract (it was void)
d) There never was a contract because there was no consideration.
e) JANE…. Is LONG…. GONE…. With the Car….
22. Michelle is fascinated with the heavy metal “big hair” bands of the 80’s and decides to form a band called the “Manic Michelle Mashers” (3M for short) and they will perform an all 80’s revival tour. On March 23, 2003, she contacts her friend Kristin who owns a bar called, “Bleached Jeans” and asks to perform at the bar. Kristin says sure, but the first date available to come in would be April 30, 2004. During the conversation, Michelle and her band agree to play at the bar and verbally terms are set for a payment after the performance of $1000 with a concert starting from 11pm-3am. Which of the following is true about this scenario
a) A valid contract exists
b) A valid contract does not exist
23. When a “starving Artist”, with little power such as Billy Joel, first starts their career and is convinced to sign a recording contract that allows them to keep only 2% of the money made from selling albums and concerts, the "starving artist" could best get out of the contract by:
A.) Saying the contract was void as illegal
B.) Saying the contract terms were a unilateral mistake
C.) Saying it is an Unconscionable Contract
D.) Saying that there was a mistake of value because Billy Joel didn’t know at the time of the contract that his songs would sell millions of albums.
24. Luke contracts with Matt to ship 10,000 cases of Red Ripe Tomatoes to his summer home in Florida. The contract states, shipment will be provided by the steamer train. Unfortunately, Matt thought this meant a “steamer” train, a train that is operated by steam power, and Luke thought it meant the very fast “STEAMER” train, a super-sonic high speed electro-magnetic train. The tomatoes are sent by the slower steam powered train and arrive rotten. Luke doesn’t wish to pay. In terms of this situation
a) There is no contract because there is no meeting of the minds
b) This is a mistake of value and thus cannot be rescinded
c) This is a unilateral mistake and cannot be rescinded
d) This is a Fraud and can be rescinded
25. Brion goes to a yard sale at Dan's house and he finds a painting that he hates but likes the frame. Brion buys the painting for $25.00 and takes it home. At home, Brion rips out the painting from the frame and discovers a love letter written between George Washington and Martha Washington. The letter is valued at $3700. Dan finds out about this letter and demands that the purchase be rescinded and the letter be returned because it was a mistake. In terms of this situation:
a) There is no contract because there is no meeting of the minds
b) This is a mistake of value and thus cannot be rescinded
c) This is a unilateral mistake and can be rescinded
d) This is an unconscionable contract and can be rescinded
26. Stefany, 22, graduated from I.U.P. but her family in Vermont misses her and they say to Stefany move back to Vermont and work here and we will provide you with $20,000 to start a new life. With a deal like that Stefany would be a fool to refuse. Stefany says goodbye to her friends here in Indiana, PA and goes back to Vermont. She obtains employment and at first stays with her parents. After six months, she starts asking where her promised 20,000 dollars is. Her parents say, well..here is thing Stefany. Its not going to happen, we cannot afford it. What are Stefany's legal options at this point?
a) None, the cash was a gift and not supported by legal consideration
b) Stefany could sue her parents for breach of contract
c) None, since Stefany's parents had no legal obligation to support Stefany
d) Stefany could sue her parents but her parents could counter sue Stefany for the housing, food and clothes they provided her for the first 18 years of her life.
e) None, Children are prohibited from suing their parents under the Parental Alienation Training and Rehabilitation In Overt Thinking Act
27. Brion goes to The Buffalo Chop House and orders a steak well done for $35.23. Fifteen minutes later the Chef ,while the steak is still cooking, comes out and says the Price is going to be $38.13 because the steak was a little thicker, which is not an abnormal occurrence, and is taking a little longer to cook. If Brion did not want to pay the increase in price his best argument would be
a. The parole evidence rule
b. The Statute of Frauds
c. Preexisting Duty
d. Promissory Estoppel
28. Mike, a Professor, is doing premiere research getting rid of Toe Nail fungus that turns toe nails yellow (ewww) and is actively searching out people with such aliments. While at the gym, Mike discovers someone that has that fungus and says hey, would you like to be a part of my study. The guys says sure I guess. The next day the locker room guy with yellow toe nails goes to Mike, takes the medicine and is cured. The following week Mike sends the guy a bill for $313.23 for the treatment and cure of his toe-nails. With respect to this situation:
a) A valid contract exists because it was performed
b) A valid contract exists because it was for medical services
c) A valid contract does not exist because it was not a "bargained for exchange"
d) A valid contract does not exist because of the parole evidence rule
29. After Brion purchases a new Computer, he also sends in a manufactures rebate coupon for $50.00. Unfortunately, his decimal looks like a comma and they company sends him a check for $5000. Brion cashes the check and spends the money. Later the company asks Brion to pay them for a refund of $4950. Brion asserts a defense that a valid contract exists and it is not his responsibility to ensure the company accurately records the rebates. In terms of this situation
a. Brion will win
b. Brion will lose
30. Questions 30-33 are based on the following fact situation:
Marty Golby was accepted by Nixon School of Law for the fall term of 1991. Several generations of Marty’s family had attended the prestigious law school. On August 14th, at a party to celebrate Marty’s acceptance, his father, Dick Golby, announced to Marty, in the presence of the party attendees, “Son, it’s your obligation to uphold the family tradition of excellence at Nixon. In this regard, if you promise to study a minimum of 5 hours per day, then I shall pay you $1000 for each “A” you achieve during your first; $2500 for each “A” you achieve during your second year and $5000 for each “A” you achieve during your third year. Moreover, I will buy you a baby blue Corvette (car) at the end of the first semester if you promise not to smoke crack cocaine while in law school. Marty replied, “Dad, not only shall I study five hours a day, buy you can order the car today because I promise not to smoke crack as you requested.”
After the first semester, Marty returned home on December 24th and showed his Dad his grade report that indicated that Marty received “A” in three courses. His dad wrote Marty a check for $3000. Mr. Golby (the father), then asked in the presence of Marty’s uncle Homer, “Did you abide by your promise not to smoke crack?”. Marty replied, “yes, father.”. Marty’s father then told Marty that he had already ordered the car and that it would be available for delivery within one month. Uncle Homer then said to Marty, “Marty, I want you to know if anything ever happens to your father, that I will continue to pay you as per your father’s promise, for your any “A” earned at Nixon.
When Marty returned to Nixon the following week, he received tragic news that his father had died suddenly. At Mr. Golby’s funeral, the executor of his estate told Marty that he was not going to give Marty the car. In addition, Uncle Homer approached Marty and told him that he did not believe he would be obligated to pay Marty for any A’s which Marty may receive in the future.
30. The most accurate statement concerning Mr. Golby’s promise to reward Marty for achieving A’s at law school would be that
a.) The promise constituted an unenforceable conditional gift
b.) The promise would not be legally binding, since it was illusory
c.) The promise would be enforceable if a bargained for exchange was so intended
d.) The promise constituted a voidable promise
31. In a law suit against the executor of Mr. Golby’s estate to recover the New car (Corvette) for breach of his father’s oral agreement, Marty will
a.) Succeed (get the car), since Marty gave up something of legal value as consideration
b.) Not succeed, since Mr. Golby’s promise was not reduced to writing
c.) Not succeed, since Mr. Golby’s promise was only a conditional gift
d.) Not succeed, because Marty was not giving up something of legal value as consideration.
32. Uncle Homer’s December 24th, promise to Marty with respect to achieving A’s at Nixon would constitute
a.) An enforceable, promise binding uncle Homer as a surety
b.) An unenforceable promise because Marty’s father had a pre-existing duty to pay Marty
c.) A voidable promise as violating the Statue of Frauds
d.) A void promise
33. Assume for this question only, that during Marty’s first semester at Nixon law school, Marty’s romantic involvement with his girlfriend Louise, resulted in her pregnancy. Louise demanded that Marty furnish child support for the baby. As a result Marty agreed to assign to Louise his right to payment for all “A” which he might receive during his three years at Nixon law school. Marty studied diligently and received four A’s during his first semester. Marty sought payment for the grades from his father (who is alive in this question), and told him that he assigned his right to receive payment to Louise. When Marty’s father refused to honor the assignment, Louise brought suit against Mr. Golby for breach of contract. The court should enter judgment for
a.) Mr. Golby
b.) Louise
34 . With respect to the OJ Simpson Trial (Civil and criminal), all of the following are true except:
a) The civil trial had a different standard of proof than the criminal
b) The civil trial was “double jeopardy”
c) The Civil trial was to compensate the Brown Family
d) The Criminal trial was all about “punishment” from the state
35. In PA, the Supreme Court of P.A. has made a decision that You can shoot people in your home without retreating from the home as a form of self defense, if the PA Court of Common Pleas in a case makes a decision that You have to retreat from the home before defending yourself which of the following is true:
a) The PA Supreme Court must follow the Court of Common Pleas holding because this is an example of Stare Decisis
b) The PA Court of Common Pleas must follow the PA Supreme Court holding because this is an example of Stare Decisis
c) This is really a federal question and should be moved to the federal courts
d) It depends on diversity jurisdiction
36. New York passed a law requiring employers to provide employees with a maximum of six weeks unpaid leave for the birth of a child. Subsequently, U.S.Congress passed a law requiring 12 weeks of unpaid leave for the birth of a child. Which statement is correct?
a) The New York law has priority because it was in place prior to the federal law
b) The New York law has priority because the state has exclusive authority to regulate family matters
c) The federal law takes precedence over the New York law
d) Both laws are null and void because of the conflict
37. If I.U.P., a state university, has a practice that immediately before each College Football Games on the PA system, after the Pledge to the Flag is given, a short 20 second prayer is given which says, “May God give us the strength to persevere, and the courage to fight, Amen”. Which statement is most likely true
a) The prayer is a violation of the separation of Church and State
b) The prayer is in violation of the freedom speech as “Fighting words”
c) The prayer is in violation of the 14th Amendment
d) The prayer is allowed under the freedom of religion clause of the first amendment
38. Adarand Construction is a white-owned construction firm that had bid on a sub-contract to supply guardrails to a federal highway project in Colorado. Adarand Construction had the lowest bid, but the general government contractor took a bid from a minority owned firm because the government Contractor thought it was a good idea to give a chance to minority owned businesses. According to this scenario, the courts would find this constitutional
a) If the government can prove that there is any rational reason and for a legitimate government purpose
b) If the government can show a compelling government interest and a necessity that this is the only way of achieving the compelling government purpose of promoting minorities in business where they have been underrepresented.
c) If the government can show an important government interest and a strong relation to achieving the purpose.
d) None of the above, under the 13,14,15 Amendments to the Constitutions race based distinctions are unconstitutional.
e)
39. If I am a P.A State Police Officer, and my Employer asks me to “turn in my gun and badge” because they think I embezzled drug funds, the employer must also provide a “hearing” to determine whether the accusations are true. They must do this because of
A. Substantive Due Process
B. Procedural Due Process
C. Because of the second Amendment (Right to bear arms)
D. Employment at will doctrine
E. They do not have to do this
40. In order to encourage residents to stay in PA, PA passed a law that allowed residents free access to the PA State Thruway, but would charge non-residents twice as much for using the roads. This law
A. Is Constitutional under the State’s Police Powers
B. Is Unconstitutional because it violates Substantive Due Process
C. Is Unconstitutional because it violates the privileges and immunities clause
D. Is Constitutional because of the Commerce Clause or dormant commerce clause.
41. New York has decided they are tired of imported Canadian Beer… Who drinks Molson Anyway… So New York has imposed a $2.00 per bottle tariff (Tax) on imported Canadian Beer entering New York. With respect to this tariff (tax):
a) New York is authorized under the commerce clause to impose taxes because of the tax and spending powers of the United States Constitution
b) New York is not authorized to invoke this tax because the commerce clause of the US Constitution gives the federal government the exclusive power to regulate commerce with foreign nations.
c) New York is allowed to pass this tax so long as it does not burden interstate commerce
d) New York is not authorized to pass this tax because it is an ex-post facto law.
42. Bobby and his Wife Judy strictly follow the religion of “guzhara” where extreme temperatures of heat and cold are used on the human body to put one into a transcendental state and, by such, be able to commune with the creator. Bobby and his wife also have a 13 year old son named Kevin. Bobby and Judy have been doing this practice for over 25 years and are considered experts at the practice and have even frequently involved Kevin in the practice . On numerous occasions, Bobby, Judy and Kevin’s have subjected their bodies to life threatening 130 degree heat for 2 hours and then dangerously plunged into an ice bath of 33 degrees. The shock it provided to their system, due to the near death experience, clarified their religious thoughts. On November 1st 2008, Bobby, Judy and Kevin participated in this same kind of religious “guzhara” event. Unfortunately Kevin, went into shock when he was transferred from the high heat to the bitter cold and he later died. At the subsequent trial for the death of Kevin
a) Bobby and Judy should escape the charges because they were known experts in their field
b) Bobby and Judy should escape the charges because they were practicing their religious freedom guaranteed under the first amendment
c) Bobby and Judy should escape the charges because Kevin knew or should have known of the dangers of things that are hot and cold.
d) Bobby and Judy will not escape the charges
43. In the video we watched about the Serbian basketball player Kovacevic who nearly killed a college student in a fight in a bar what problem did the US courts have after he fled the United States to Serbia :
a) Subject matter jurisdiction
b) In Persona Jurisdiction
c) Long Arm Jurisdiction
d) Religious Freedom
44. According to the United States Constitution, what kind of government does the United States Guarantee to all of its citizens.
a) Democracy
b) Republic
c) anarcho-syndicalist commune
d) Fundamentalist
45. Casey Anthony (aka TOT MOM) was recently acquitted of the murder of her child Caylee. Lets just say Casey writes a book (assuming she is literate) entitled, “You idiots, this is how I killed my child”. In which she explains the exact way she killed her child Caylee. Given this new evidence the Prosecution requests that a judge reopen the case and try Casey Anthony again for the murder of her child. The judge upon hearing such a request should:
a) Decline to hear the case
b) Accept the case if it can be shown that a mistake of fact was made that would have found the person guilty
c) Accept the case if it can be shown that new facts, such as an admission, to the crime or DNA evidence showing that she in fact did commit the murder.
d) A higher court like the Supreme Court should hold a trial of its own to decide the case.
46._ According to the video debate between Supreme Court Justices Scalia and Breyer. Justice Scalia’s (one with glasses) viewpoint was :
A. That one should interpret the Constitution in a way that takes into account current society and that society’s needs, that the constitution can and should change as public opinion changes
B. That the Constitution should be as closely interpreted to the original meaning that the drafters of the constitution wanted.
C. That Judges should be given the power to determine the meaning of the Constitution
D. That the President should be given the power to determine the meaning of the constitution.
47. According to the video debate between Supreme Court Justices Scalia and Breyer, Justice Breyer
Sees the role of the Supreme court as
A. A sort of frontier patrol that guards the boundaries of the constitution and what the words mean.
B. As a writer of the Constitution
C. As a servant of Congress
D. As a servant of the President
48. Microsoooft based in P.A, hires as an employee, Larry, in P.A, as an electrical engineer. Microsoooft and P.A. have worker’s compensation. While on the job, Larry is injured because Microsoooft negligently (not intentionally) installed wiring without the proper insulation. This was not an intentional act by the employer or under the law. What is true:
a) Larry has a right to sue his employer for negligence
b) Larry has a right to collect Worker’s Compensation for his injuries
c) Both A & B
d) Neither A & B
49. Betty is employed at United Health care as a nurse. Everyday she is subjected to male doctors who touch her inappropriately and say rude and sexual remarks to her. After a year of such behavior, she has had enough and contacted the EEOC and filed a lawsuit in federal court under Title VII. United Health Care has a strict no toleration policy for sexual discrimination, states this policy in the handbook Betty was given when she became an employee and the employee handbook tells Betty how to report the conduct to the human resource department and that they would investigate. At trial, it comes out that Betty did not report any of the alleged harassment to the human resource department prior to suing in court. At the end of the case who most likely wins?
a. Betty
b. United Health Care
50. In class, we discussed the cases of the Pittsburgh strippers… In the BLANK for this question write down some evidence a court could use to prove the strippers might be employees and not independent contractors.
51. In regards to the Hooters news clip involving the man who was suing Hooters because they told him he could not be a Hooter’s girl. Under what law was this man suing?
a.) Fair Labor Standards Act
b.)Age Discrimination in Employment Act
c.)American with Disabilities Act
d.)Title VII
52. In regards to the case of the woman who is suing based on the fact that Hooters fired her because she was too fat. Why was she suing under state law rather than federal law?
A.) Federal law generally does not count being overweight as a protected class
and her state does
B.) State law provides for punitive damages (for money)
C.) She had to sue in state court because that is the only court Hooters could be sued in
D.) There were no federal courts in her State
53. Jennifer is an at will employee at Culpeper’s. She is a bar tender. Culpeper’s has a requirement that wait staff be well groomed and look their personal best every single day. For men that means having short hair, clean shaven, no facial injuries or injuries to the hands. For women it means they must wear makeup and have their hair properly styled. Jennifer refuses to wear lipstick and she is fired for that reason. In terms of this situation it can best be said that?
A.) Culpeper’s has violated Jennifer’s rights under Title VII
B.) Culpeper’s has violated Jennifer’s rights under The fair labor Standards Act
C.) Culpeper’s has committed the act of disparate treatment discrimination
D.) Culpeper’s has done nothing legally wrong
54. A job advertisement for a police officer states that applicants must be at least 5 foot 7 inches tall. In terms of this policy it can best be said that
a.) The police agency likely will have committed disparate treatment discrimination
b.) The police agency will have likely committed disparate impact discrimination
c.) The police agency will not have done anything wrong so long as they hire someone shorter than 5 foot 7
d.) The police agency has done nothing wrong
55. During an interview an employer asks a female applicant “Holly” if she is married, how old she is and whether she wants to have children. The woman answers Im married, 24, and I expect to have children in the next year. The employer does not hire her. If Holly wishes to sue under what law would she have the best claim?
a) Age discrimination in employment Act
b) American with Disability Act
c) Title VII
d) None of the above, nothing the employer asked is capable of raising the presumption of possible discrimination.
56. Brion follows the recognized religion of Judaism and Yom Kippur is a religious holiday for his religion. This year it falls on a Saturday which is the busiest day of the week for the bar where Brion works as a bar tender. Far in advance, Brion tells his boss that he can’t work on the Yom Kippur holiday. The Boss tells Brion he must work. Brion does not show up to work that day. On Monday he shows up to work and they fire him for not being at work on Saturday. In terms of this situation Brion’s employer most likely
a. Has done nothing wrong, he was fired for not showing up to work
b. Has violated the provisions of Title VII
c. Has violated the Taft Hartley Act
d. Has violated the Dram Shop Act
57. Jessica is hired as an “at will” Marine Midland Bank Manager. Her job consists of typical management duties like hiring, firing and assigning work schedules. She enjoys her new job and is paid a healthy sum of $900 per week. She also enjoys bankers’ hours working a standard 40 hour work week. Last week she had to fill in for an employee that was on sick leave and she worked 50 hours. The following week she picked up her paycheck and it read gross payment before deductions and taxes: $900.00. Jessica could legally
a) Report the error immediately to human resources under the Fair Labor Standards Act
b) Report the error to human resources because of a violation in Title VII.
c) Begin a grass roots effort to unionize people in her position at the bank
d) None of the above
58. Bob is the CFO for Intel and he tells the human resource manager Frank that they need to cut 113 million dollars from the personnel budget by November 14 2011. Frank determines that older people generally make more money so he fires everyone over 50. With respect to this situation it can best be said that
a. Frank’s decision may violate the Gerwig-Hempstead Act
b. Frank’s decision may violate the Fair Labor Standards Act
c. Frank’s decision may violate the A.D.E.A.
d. Frank’s decision may violate the Equal Pay Act
e. None of the above, Frank’s Decision is legal and cant violate any of the laws above
59. The protected classes under Federal Title VII include all the following except:
a) Color
b) Religion
c) Sex
d) Marital Status
e) National Origin
60. Tejash operates a restaurant called “Hot Tamales”. The single location establishment employs 13 people. This restaurant is being offered as a male counter-part to “Hooters” and hires only burly chested, hairy legged, men with muscles. In fact, they have an application form that even states that. According to Federal Title VII, This restaurant
a. Has violated Title VII
b. Has committed Disparate Impact Discrimination
c. Has Committed Disparate Treatment Discrimination
d. Both A & C
e. Has done nothing wrong
61. If an employee of I.U.P. sent around various emails with half dressed males and females to the rest of the faculty, and if the college did not handle the situation the college might be charged with :
a) Quid Pro Quo sexual harassment
b) Hostile work environment sexual harassment
c) Violation of the US Constitution
d) Equal pay discrimination
62. You decide to work for Loomsden and McCormick an accounting firm. Because of the recent accounting scandals and a desire by Loomsden to hire only ethically sound individuals to protect the long term interests of the firm, they implement a policy of giving a polygraph test to all new hires. If you are asked to submit to a test:
a. you can legally refuse such a test
b. you can not refuse a test because of changes made under the Sarbanes-Oxley Act
c. You can say, "I always tell the truth.. followed by "I'm Lying" and wait for the machine to blow up.
d. What is this Robert Denerio in Meet the Parents
63. Homer Simpson is a 25 pound over-weight employee (really, tell me something I don't know). He wants his employer to install an 7 million dollar elevator to lift him from the first floor to the second floor because he claims his weight is a disability. In terms of this situation under federal disability law, the employer
a. must accommodate Homer
b. Need not do anything
64. Upon termination of employment, for any reason, an employer must do the following:
a) Provide a severance package
b) Pay you for unused vacation and sick days
c) Offer you the ability, at your cost, to continue in the employers group health plan
d) Help you look for another job
65. An advertisement at a local college says,
“JOB OPEN IMMEDIATELY.
NEEDED A FEMALE JANITOR.” Apply within.
Frank, a male, applied for the job and is told he does not qualify because he is a male and they needed a female to clean the female restroom along with other typical janitor duties. With respect to this situation it can best be said that:
a) The local college should escape liability because it is a bona-fide occupational qualification that to clean a female restroom you must be female.
b) Frank could sue the local college because the policy discriminated against him because of his gender
c) The local college should escape liability by showing Frank that they didn’t discriminate against him as an individual because they denied all male applicants the job.
d) None of the above
66. With respect to the below job advertisement... its real you can Google it
The POO Crew, LLC Denver's only all inclusive pet services company is currently accepting applications for 2 positions in our pet waste removal department. If you are an animal lover, dependable, detail oriented, love walking and like working outdoors, then this is a great opportunity to join our team and grow with our company.
Job Description
Residential duties/requirements include but not limited to: The removal of all pet waste from clients yards, Leaving door hangers at each house, Being kind and courteous to all dogs if they are in the yard with you, Clean and orderly appearance as you will be going to multiple people’s houses, Driving in an orderly fashion as you will be in a marked company truck, Able to lift more than 50 lbs., Able to work alone everyday (Personal time management is a must). Commercial requirements are all of the above including being able to work around others and lift 50 lbs continuously while walking.
With respect to this job advertisement it can best be said that it:
a) Violates the American with Disabilities Act
b) Violates Title VII
c) Violates the decency standard for printed material
d) Is legal
e) Makes you feel better about the job you have
SECOND SET OF MULTIPLE CHOICE QUESTIONS
1. You run a red light in Indiana, PA and injure a Pedestrian as the result of that. You have pled guilty in criminal court to running the red light. The law that you must stop at a red light was specifically designed to prevent injury to pedestrians. The Pedestrian (Plaintiff) sues you (Defendant) in civil court and produces a law in Indiana PA that says no car shall go through any intersection when the light is red. As a result of producing that law, the Pedestrian in the law suit must now only prove:
a) Duty
b) Duty, Breach, Causation, Damages
c) Causation
d) Damages
2. Rachel invites Lisa over to her place for a “girls night” sleep-over. Rachel knows she has a shower whose hot and cold faucets are labeled incorrectly (Hot says cold and cold says hot). Lisa wishes to use the shower. With respect to the shower condition Rachel has what if any duty
A. Owes no duty to Warn Lisa
B. Owes a duty to warn Lisa
C. Owes the same duty to Lisa that a store like Wal-Mart would owe to its customers
D. Owes a duty to record her screams when she steps into the shower
3. You have been injured by a defectively designed tractor. You purchased the tractor from a yard sale by your next door neighbor. The tractor was purchased by the neighbor last year from a Garden and Tractor store. The Garden and Tractor store purchased it from a large tractor wholesaler called Clean Cut and finally the tractor was manufactured by Suzuki. In Strict Product Liability the list of people you can sue include all of the following:
A. Your neighbor, Garden and Tractor store, Clean Cut, Suzuki
B. Garden and Tractor store, Clean Cut, Suzuki
C. Your neighbor, Clean Cut, Suzuki
D. Suzuki
4. Aarika has purchased a “q-tip” a thin stick with a cotton swab on both ends. On the box of q-tips it says, not for use in cleaning the ears, to be used only on the outside of the body and not inserted into body opening. However, the company is aware that a majority of users often misuse the product in direct violation of that warning by cleaning their ears. Aarika inserts the swab into her ear and ruptures her ear drum. She sues the Q-tip manufacturer for product liability. The manufacturer ‘s defense says a q-tip is to be used only on the outside of the body. In terms of this defense the court should
A. Accept the manufacturer’s defense (ie company will never be liable)
B. Reject the manufacturer’s defense
5. The local I.U.P College Bully, “Devin”, meets “Kevin” outside of his business law class and says, “Kevin if you come to class next week, then after that class I am going to take a tire iron (club) to your head.” The most serious crime Devin could be found guilty of is:
A. Assault
B. Battery
C. Slander
D. No crime
6. Next Week Kevin shows up to the Business Law class, but Devin reconsiders his dramatic “tire iron” threat and instead decides to play a practical joke on Kevin. He has tied a string on Kevin’s chair and as Kevin begins to sit down (not seeing Devin or the String) Devin pulls the string and the chair moves and Kevin falls and suffers a fracture of the hip, a broken Tibia, a broken ankle, and a broken pelvis. What crime(s) can Devin be charged with?
A. Battery
B. Assault
C. Both A & B
D. None of the above (no crime)
7. In the question above lets say Kevin sues Devin for the injuries He sustains and let's further assume that Devin can prove that Kevin suffers from hemo-marrow encephalitis a bone disorder that causes leeching of calcium from the bones making them prone to fractures. Devin can prove in court that had Kevin been a "normal" person without this disease the injures he would have suffered would have been no worse than a small black and blue. With all the injuries Kevin suffered the damages are $4532, what “normal” people would suffer are $104. Based on these facts the jury should award Kevin
a. $104
b. $4532
c. $2340 (aprox half)
d. $0
8. You are attending the funeral of your Business Law Professor (Did he meet Devin in some back Alley?). Most of his students stand up and give some short statement on what a noble and gracious human being he was… That is… Until… … Nadia…. Nadia stands up and lies to all in attendance that “Brion” was a despicable human being, who had committed numerous crimes including murder and rape and goes on to berate him for being a horrible and unfair professor and finally commits the outrageous act of going to “the bathroom” in the open casket. This act makes Brion’s parents vomit and pass out. After this outrage, Brion’s parents, as administrators of his estate, wish to sue. What can Nadia be sued for?
a. Slander
b. Libel
c. Intentional Infliction of emotional distress
d. Both A & C
e. No crime
9. The total list of elements of negligence are:
a. Duty, Breach of Duty, Causation, Damages
b. Duty, Standard of Care, Causation and Damages
c. Duty, Breach of Duty, Strict Liability, Damages
d. Duty, Breach of Duty, Damages
10. “Kelly” & “Jilliane”, two college friends, are walking near a swimming pool joking and laughing. Kelly turns to Jilliane and says, “You are looking so amazing today… and Jilliane says, “Yes, I am hot.” At this point Kelly says, “I can fix that” and pushes Jilliane into the pool. The push causes Jilliane to break three teeth, and Jilliane can not swim and calls for help.
Luckily “Sarah”(hero theme (dunt tad a da) is nearby and plunges into the pool to rescue Jilliane. Sarah accidentally bangs her arm on the side of the pool when she dives in and fractures her arm. Sarah then also acts negligently in the rescue because she drags Jilliane out of the water by her neck which causes Jilliane to fracture her third vertebrae paralyzing the woman from the neck down.
Jilliane is rushed to the hospital where doctor (Dion) does emergency surgery. The doctor negligently leaves a sponge in Jilliane and Jilliane dies as a result.
On her way home after the pool incident, with a broken arm, Sarah is hit and killed by a drunk driver who ran a red light and smashed into her car.
What are all the legal liabilities of Kelly?
a. Kelly can be held liable for: Jillane’s broken teeth, Sara’s broken arm, Jilliane’s broken vertebrae, Jilliane’s death, Sara’s Death.
b. Kelly can be held liable for: Jillane’s broken teeth, Jilliane’s broken vertebrae, Jilliane’s death,
c. Kelly can be held liable for: Jillane’s broken teeth, Sara’s broken arm, Jilliane’s death,
d. Kelly can be held liable for: Jillane’s broken teeth, Sara’s broken arm, Jilliane’s broken vertebrae, Jilliane’s death
e. Nothing Kelly owed no duty to Jilliane
11. In class we watched the video depiction of the jet airliner from Colgan Air that crashed outside of Buffalo New York. If we did not then the story and links are available in the additional reading folder. The families of the deceased are suing the airline for negligence. What duty did the airline violate in terms of this situation?
a. The duty to provide proper seatbelts
b. The duty to provide on time arrival
c. The duty to provide proper pilot training
d. The duty to provide airline wheels that don’t rupture
12. In class (or available on d2l) we watched the video of the “don’t date him girl” website operator as well as the Pittsburgh lawyer who is suing her and the website. In terms of this situation what is the legal cause of action (legal reason or theory) that the lawyer is suing under
A. Slander
B. Libel
C. Negligent infliction of emotional distress
D. Intentional Infliction of Emotional Distress
13. Colleen and Jordan are boyfriend and girlfriend. They are in Jordan’s car and Jordan is driving. Colleen asks Jordan to pull over for a second. Jordan does so and Colleen says, Jordan we have to talk… (Why is it nothing good ever comes after this)…Colleen continues, You are very special to me, but I just don’t see this relationship going anywhere, I think we should see other people. (which really means I’m already seeing other people). Jordan is stunned he didn’t expect this to happen. They had plans, he bought tickets to a concert, they were in love. He starts crying and says, Colleen please, don’t… don’t do this. Colleen says sorry that is the way I feel and I want to leave you and this car right now. Jordan then locks the doors and speeds off onto the highway at 65MPH with Colleen in the car and says until you say you will go back out with me, I am not pulling over. In this situation it can best be said that:
a.) Colleen can be sued for Intentional Infliction of emotional distress to Jordan
b.) Colleen can sue Jordan for False Imprisonment
c.) Colleen can be sued for conversion of property of Jordan
d.) No one has committed anything that would rise to a legal liability it’s a break up that’s all
e.) Time for Jordan to take a Prozac
14. When someone uses your photograph without permission for commercial gain what legal issue can occur?
A. Misappropriation of the right to publicity
B. Libel
C. Negligence
D. Strict Liability
15. In regards to the product liability claims of Four Loko if there was a law suit which one of the following product liability categories would be best to use for the Plaintiffs. :
a) Defective Packaging
b) Defective Manufacture
c) Defective Design
d) Negligence
16. One day you are crossing one of the Pittsburgh bridges…usually the one you didn’t want to cross anyway. There on the edge of the bridge you witness someone (you have never met) try and commit suicide by jumping off the bridge. You run over and look over the side of the bridge and see him waving his arms in the water going I’m ok, “help, help”… You are a well qualified swimmer and could rescue him without any harm to yourself. However, you simply watch as the man drowns. The whole situation was also caught on news video and was shown on the six o’clock news. The family of the drowned victim identified you and has sued you for failure to rescue. In terms of this situation it can best be said that:
a) You will not be able to be sued because you owed no duty to rescue a stranger
b) You could lose the law suit if it is discovered you had the training and skill to rescue and could have saved the drowning man
c) You will lose the law suit because of the Good Samaritan Statute
d) You will win the law suit because of the good Samaritan Statute
17. According to the Exclusionary Rule:
a) Evidence obtained from an unreasonable search and seizure can be prohibited from introduction at a trial.
b) An attorney is excluded from testifying against his client
c) Criminals have the right to an appeal
d) All of the above
18. “William” is arrested for drunk driving and the officer puts him in the back of the car, on the way to police station William blurts out, “Im not drunk I only had 7 shots of Peppermint Schnapps”. While the officer never asked William any questions, the officer did not read William his Miranda rights. William takes the case to trial and the prosecution wishes to introduce evidence of Williams statement about the Schnapps. In this situation the court should rule:
a) The evidence is not admissible because the police did not read William his Miranda warnings and he had a right to remain silent.
b) The evidence is not admissible because William was drunk and may not have realized what he was saying
c) The evidence is admissible as an admission
d) The evidence is admissible because of the exclusionary rule.
19. In the statute below the mens rea and the actus reus are respectively :
§ 3503. Criminal trespass
(a) BUILDINGS AND OCCUPIED STRUCTURES. --
(1) A person commits an offense if, knowing that he is not licensed or
privileged to do so, he:
(i) enters, gains entry by subterfuge or surreptitiously remains in
any building or occupied structure or separately secured or occupied
portion thereof; or
(ii) breaks into any building or occupied structure or separately
secured or occupied portion thereof.
(2) An offense under paragraph (1)(i) is a felony of the third degree,
and an offense under subparagraph (1)(ii) is a felony of the second
degree.
A.) (Mens Rea) knowing and Actus (enters/breaks into)
B.)(Mens rea) Enters/breaks into and (Actus) not licensed
C.) (Mens Rea) Felony and (Actus) third degree
D.) (Mens Rea) Subterfuge and (Actus) secured
E.) None of the above
20. Harry Potter was published recently both in film and in book version with a valid copyright dated 2001. In December of 2010 Brion creates a skit for Saturday Night Live that satirizes the Harry Potter book by using political figures like Obama and Bush as the good and bad guys. He uses the exact wording from the books in his skit. In June of 2011, he publishes the skit in a book of short stories. In terms of this situation it can best be said that:
a) Brion has violated the copyright only in terms of the skit he published.
b) Brion has not violated the copyright in either situation because his use falls within an exception to the copyright law.
c) Brion has violated Harry Potter’s copyright because he published his book using the characters in 2011 which is within the 70 years of protection offered to copyright holders.
d) Brion has committed the tort of libel against Obama and Bush because they never said the lines in the Harry Potter books.
21. Adam is a Harvard student and he likes the music of Lady Gaga (did I spell that right?). One day on the internet he finds a file sharing web site where for no charge a user can download music. Another user has posted a library of Lady “GAGA” music. The library contains 30 of her “best” songs and he decides to download the library of 30 songs to his computer. He keeps them on his computer and for 5 of the songs he downloads them to his I-pod and listens to them while exercising. He does not sell them to anyone or give the songs to anyone. In terms of Adams Actions it can best be said that:
a) Adam has not violated the copyright law because he is covered under the safe harbor provision which allows users to download for personal use without paying as many as 100 songs per year.
b.) Adam has not violated the copyright law because he has not sold the songs or given them to anyone else.
c.) Adam has only violated the copyright law for the songs he downloaded to his I-pod
d.) Adam has violated the copyright law for all 30 songs.
22. Daniel and Troy have invented a new cologne for men that makes women go absolutely crazy. One day they are walking down the street and are shocked to smell their fragrance coming from a store. When they go in, they find that Paris Hilton has come up with a perfume that smells exactly like theirs. In this situation it can best be said that:
a.) Smelling like Paris Hilton, that is similar to what?... Alcohol and Pot
b.) Paris has violated patent law because she has created a fragrance that smells like the one Daniel and Troy created
c.) Paris has not violated patent law
d.) Paris has violated the patent law because patents are good for 20 years and Daniel and Troy’s perfume was created within that time frame
23. 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. The consequence of this is that:
A) Wildboards cannot stop competitors from using the term "rollerboard" for their products.
B) Competitors must pay royalties to Wildboards for using the term "rollerboard."
C) Wildboards can no longer use the name Rollerboard on its boards.
D) Competitors must put a disclaimer on their boards that they are not the original Rollerboard
24. Danny is suspected of operating an illegal drug growing operation in his home. The police have hacked into Danny’s computer and remotely taken control of his web camera that is on his computer. With that camera they get pictures of a large amount of pot and cocaine in the home. With the video evidence they get a search warrant and search the home, seize the pot and cocaine and arrest Danny. At Danny’s trial the defense asks the Judge to exclude all evidence seized from the home as part of the search warrant. The judge should rule
a. That the evidence will be allowed because of the search warrant
b. That the evidence will be excluded because of the 4th amendment
c. That the evidence will be allowed under the warrantless search provisions
d. That the evidence will be excluded because of the second amendment
25. Adam consults his lawyer, Brion, to help out with a seatbelt ticket. While in Brion’s office, Adam tells Brion that he has stolen $5000 from his employer, but that the police and the employer don’t know about it yet and asks for Brion’s advice about what to do. Brion should
a. Stop the conversation as soon as possible because a lawyer cannot be consulted regarding a crime that the police don’t know about yet
b. Inform Adam that according to the rules of attorney conduct he must report the activity directly to the police
c. Inform Adam that anything about past uncharged crimes will be their little secret and he won’t tell anyone about them
d. Inform Adam’s employer about the $5000 and let them investigate
e. Inform Adam that his billable hour rate just went to $5000 per hour. ;-)
26. Mary works as an accounts receivable accounting clerk at General Motors. Within the context of her job, she notices that there is an unusually high number of buyers of cars this month and the net revenue numbers are going to be fantastic. This comes as a shock to her since she recently saw on a financial show that the market is expecting a loss this quarter. Mary then goes out and buys stock. In this situation it can best be said that:
a) Mary has violated Rule 10b5 of the Securities Act of 1934
b) Mary did nothing wrong
c) Mary has violated the Phillips Act
d) Mary has violated her duty of due care
27. Luke decides he has had enough of this partnership crap and left LMR several years ago. He has set out on his own. His business is auditing financial statements. He has secured Kraft Foods as a client. Earlier this year (2006) Kraft asked him to calculate the accounting affects of a possible merger of Kraft Foods with Tyson Foods. The merger was supposed to take place next year (2007). At an IUP College Reunion in October of 2006, Luke overhears a conversation between Kristin and Tony about how great Tyson prepackaged hotdogs are. Luke, in his first communication before or since, to Kristin says only, if Kraft merges with Tyson the hot dogs will improve. Luke then leaves the reunion. After the event, Kristin invests in Tyson Foods and makes $25,000 in profits when the companies merge. In this situation;
a) Luke is not liable for the profits made by Kristin
b) Kristin is liable for the profits she made
c) Luke is the tippee
d) They should get out of the business and stick with bologna because Oscar Myer has a way with b-o-l-o-g-n-a.
28. Which statement is true:
a) When a Corporation issues a two year corporate bond it could be a security regulated by the SEC.
b) The Securities and Exchange Act of 1933 governs the trading of securities
c) The Securities and Exchange Act of 1934 governs the Issuance of securities
d) You can operate a firm that buys and sells securities and invests other people’s money without any license requirement
29. If in Facebook’s initial public offering and its stock registration materials Face-Book has materially falsified or misrepresented material in this registration statement what can be true:
a) They have violated the Securities Act of 1933
b) If the mistake was made because of negligence of the accountant in preparing the documents the accountant can be liable for losses
c) If it is determined that the Facebook CEO willfully lied on the registration statement he could face a criminal charge
d) Individual investors who relied on the registrations statement/prospectus can sue for damages
e) All of the above.
30. Questions 30-32 refer to the following fact pattern.
Lee owns and operates a drug store. In 1997 he modernized the store and, among other things, installed a new front door. The door was made entirely of transparent glass framed by a very narrow metal strip. The handle is flat, 3 inch by 4 inch pedal, which one pushes by hand to enter the store and which is mounted below chest height, on a small metal device set in the glass next to the latch. There are no signs marking or warnings on the glass itself.
Ariste, the architect in charge of the modernization, specified that the door be constructed of tempered glass. However, before beginning construction, Lee Talked to Glass the president of Glass services Company, a manufacturer and supplier of all types of glass, who told Lee that one half inch thick plate glass is half the price of tempered glass and that the great majority of residential and small businesses use plate glass for such doors. Futhermore, Mr Glass told Lee that plate glass was super safe and could withstand considerable pressure.
Thereafter, Lee instructed Ariste to install the front door using plate glass rather than tempered glass. Ariste agreed but warned Lee that tempered glass is five times stronger than plate glass; is more difficult to scratch; can withstand a blow from a hammer; and even breaks into pieces with rounded edges if broken.
None the less, Ariste followed Lee instruction and purchased the plate glass from Glass Services Company. Ariste then went ahead and hired Culver, an independent contractor, who installed the new plate glass front door. Several months later Mrs. Shopper and her nine year old son, Victor, went to Lee’s Drug store to purchase some merchandise. As they approached the store, Victor was skipping ahead of his mother. Until he was within a few steps of the door he thought it was open; when he realized it in fact was closed, he slowed down and, while still going faster than walking pushed his hand against the pedal like handle to push open the door. His hand slid off the pedal and at the same time there was a “kind of exploding noise” The plate glass shattered and broke, cutting Victor’s hand and wrist.
30. If Mrs Shopper, on behalf of her son, asserts a claim against, Glass Services Company based on strict liability, the plaintiff will?
a) Prevail, if the plate glass was defective
b) Prevail, because Mr. Glass represented that the [plate glass is super safe
c) Not prevail, if culver negligently installed the plate glass door
d) Not prevail, because there was no warning on the door
31. If Mrs. Shopper, on behalf of her son, asserts a claim against Culver based on strict liability, the plaintiff will
a) Prevail, if the plate glass was defective when installed
b) Prevail, unless Victor was negligent when he pushed open the door
c) Not prevail, because Culver was not engaged in the sale of the plate glass
d) Not prevail, because Culver had no contractual relationship with the plaintiffs.
32. If Mrs Shopper on behalf of her son, asserts a claim against Lee based on Negligence and establishes negligent manufacture of the plate glass by the galss services company, the plaintiff will?
a) Prevail, because Lee is liable for its suppliers negligence
b) Prevail, because Lee instructed its architect to install plate glass rather than the more durable tempered glass
c) Not prevail, unless Lee could have reasonably been expected to discover the defect prior to installation.
d) Not prevail, if Lee introduces evidence that the door had never broken before.
33. Ross is cleaning out his house in PA. He decides to throw out his Recliner chair and puts it on the curbside to be picked up by the garbage people. He peeks out the window and he sees Matt loading the chair onto his pick-up truck. The next day Ross sees Matt in class and says, I own that chair and I want it back. In terms of this situation?
a) Ross can get the chair back from Matt because it is lost property
b) Ross can get the chair back from Matt because it is mislaid property
c) Ross can only get the chair back from Matt if he proves that he is the true owner
d) Ross cannot get the chair back from Matt
34. “Matt” needs to study for his Business Law exam and it is two hours before the exam. He asks “Sara” to borrow her book, (you mean there is a book for this class). Sara says sure. Matt leaves the book in his car with the window open and it rains and ruins a number of pages in the book. In terms of this situation:
a) Matt has violated his duty of care as a bailee to Sara because he is liable for gross negligence
b) Matt has violated his duty of care as a bailee to Sara because he is liable for ordinary negligence
c) Matt has violated his duty of care as a bailee to Sara because he is liable for slight negligence
d) Matt has not violated his duty of care
35. When you pay at a place to park where they do not take your keys. What duty of care is owed by the bailee.
a) Slight
b) Great
c) Ordinary
d) None this is not a bailment.
36. Brion is asked by his girlfriend (Jennifer) to hold her purse while she tries on dresses. Brion feels a little ridiculous so he asks a woman (a stranger) to hold his wife’s purse while he goes to the bathroom. In terms of this situation
a) Brion has violated his duty of care as a bailee to Jennifer because he is liable for gross negligence
b) Brion has violated his duty of care as a bailee to Jennifer because he is liable for ordinary negligence
c) Brion has violated his duty of care as a bailee to Jennifer because he is liable for slight negligence
d) Brion has not violated his duty of care in this circumstance