Midterm Assessment, Summer 2015 1. Presidents claim the

Midterm Assessment, Summer 2015
1.
Presidents claim the power to issue executiveorders on the basis of their Article II, Section 1, constitutional power to“take care that the laws be faithfully executed.”TrueFalse
2.
Consequentialism provides a rigid set of rulesto follow regardless of the situation.TrueFalse
3.
Which of the following would constitute theprivacy tort of false light?Defaming a public figure for personal gain.Attributing characteristics or beliefs to a person that heor she does not possess.Disclosing private facts about a person in order to obtain somesort of personal gain.Defaming a public figure.Defaming a person with actual malice.
“ChocolateChips.” Molly makes great chocolate chip cookies and sells them in her cafécalled “Molly’s Famous Chocolate Chips.” Some of her friends expressinterest in selling her cookies. They want to use her name and identify thecookies as “Molly’s Famous Chocolate Chips.” Seeing a businessopportunity, Molly agrees to bake the cookies and provide them in a frozenstate to her friends who will open other cafés under her café’s name. Mollystrictly controls all packaging and sales. She also frequently inspectskitchens used by the sellers pursuant to her agreements with them. Suzette, oneof Molly’s friends who entered into an agreement with Molly to open a café andsell the cookies, was not being sufficiently careful and negligently put aharmful ingredient into the cookie dough resulting in a customer, Fred,becoming ill. Fred threatens to sue both Suzette and Molly. Molly is soexasperated that she cancels all the franchise contracts on the basis ofaggravation. Although the franchise agreements provide that so long asrequirements are met, the franchise agreements are good for a period of twoyears, Molly takes the position that the cookies involve a personal serviceusing a trade secret and that she cannot be held liable for discontinuation.4.
Required information
Which of the following is true regardingMolly’s inspections of kitchens?Franchise law prohibits such inspections because a franchisee isseen as a separate partnership.Franchise law prohibits such inspections because a franchisee isseen as a separate corporation.Molly had the right to inspect the kitchens.Molly had the right to do so only if workers’ compensationclaims had been filed against the franchisees involved.Molly had the right to do so only if she can establish theexistence of customer complaints.
“Wrong Deck.”Penny hires Jackson to paint her back deck. She agrees to pay him $200 for thejob, and he accepts sight unseen. They enter into the agreement on Tuesday, andhe is to paint the deck on Saturday. When Jackson arrives, neither Penny norher neighbor is at home. He mistakenly paints the neighbor’s deck. Penny callshim the next day and asks him why he did not paint her deck. He informs herthat he did paint the deck. It is then discovered that he mistakenly paintedthe neighbor’s deck. Penny tells him not to worry because the neighbor will berequired to pay him. Jackson says that if the neighbor does not pay, then heexpects all of his funds from Penny, because the contract is executed.5.
Required information
Which of the following is true regardingJackson’s assertion that Penny must pay him at this point if the neighbor failsto do so?He is correct because an implied contract existed, and he madean honest mistake for which Penny must accept the risk.He is correct because a valid contract existed; and, after hisperformance, it is considered executed.He is incorrect unless he can somehow establish that Pennygave him poor directions or was otherwise at fault in informing him which deckto paint, and the contract remains executory.He is correct because an express contract existed, and he madean honest mistake for which Penny must accept the risk.He is correct because an implied-in-law contract existed.
6.
How was the process of judicial reviewestablished under which courts review legislative and executive actions todetermine whether they are constitutional?By executive proclamationBy early common lawBy vote of the U.S. House of RepresentativesBy vote of the U.S. SenateBy vote of both the U.S. Senate and the U.S. House ofRepresentatives
7.
Which of the following isfalseregarding limited liability partnerships in Japan?Japan’s limited liability partnership law limits the liabilityof its members by their capital contribution.When members are establishing the rules of the limited liabilitypartnership, Japan requires either the agreement of all members or a majorityof at least two-thirds of the members.Japan’s limited liability partnership law puts restrictions onthe distribution of partnership assets.In regard to profits, the Japan’s limited liability partnershiplaw requires that the members manage the business and negotiate among eachother to determine how profits and losses should be distributed amongindividual members.The limited liabilitypartnership has been recognized in Japan since the 1950s.
8.
What did the U.S. Supreme Court rule in thecase ofRobert Gilmer v.Interstate/Johnson Lane Corporationinvolving whether a claim under the federal Age Discriminationin Employment Act was subject to arbitration?That arbitration was an inadequate remedy because arbitratorsmay not fashion equitable remedies.That the text of the federal Age Discrimination in EmploymentAct prohibited arbitration.That the agreement bywhich the plaintiff agreed to arbitrate all employment disputes as a conditionof his employment was valid.That the EEOC would be bound by the employee’s agreement toarbitrate all employment disputes and that, therefore, requiring arbitrationwould be improper.That compulsory arbitration improperly deprived the plaintiff ofa public forum through which to prove his claims.
9.
Juries decide questions of law.TrueFalse
“Contraceptive Injuries.” Drugcompany ABC Drugs came out with a new birth control pill guaranteed to preventpregnancy for one year after the consumption of one pill. The FDA approvedwarnings of the drug’s side effects including nausea and headache to beprovided with the pill. After it was initially put on the market, the companybecame aware of some risks of dizziness from taking the drug. The company,however, did not warn of that risk because the company was concerned thatindividuals might not buy the pill, and federal law did not specificallyrequire a warning regarding dizziness. Belinda thought the pill was a greatidea and obtained a prescription for it at a date after the company becameaware of the issues involving dizziness. She took one and felt fine for a fewdays. Then, however, she began feeling dizzy. Her dizziness caused her to fallbreaking her leg on some steps. She later discovered that the birth controlpill likely made her dizzy. Belinda decided to sue under a state law claim forfailure to warn, however, she waited a number of years before bringing heraction. The drug company claimed that it had no duty to list dizziness as arisk because its warning complied with all FDA requirements. The drug companyalso claimed that the time in which it could be sued had expired both becauseBelinda waited too long after she was injured and also too long from the dateof product purchase.
10.
Required information
What is the most likely result regarding thecompany’s position that it had no duty to warn of the risk of dizziness becauseit complied with FDA requirements?That absent clear evidence that the FDA would not have approveda change in the warning to include dizziness, a state law cause of action basedon failure to warn would be allowed.That while the plaintiff could go forward with a federal claimin relation to the lack of a warning regarding dizziness, a state law cause ofaction would be barred because of the company’s compliance with FDAregulations.That no warning regarding dizziness could be required inaddition to FDA approved warnings because dizziness is not a serious conditioncausing a “black box” type of warning involving risk of seriousinjury death.That a state law cause of action would be allowed to go forwardonly upon the submission of clear evidence that a regulatory agency of thestate had requested that the warning label be revised to warn of dizziness.That the Federal Food,Drug, and Cosmetic Act (FDCA) establishes both a floor and a ceiling for drugregulation and that no additional warning requirements regarding dizzinesscould be imposed.11.
Required information
The defense that Belinda waited too long afterthe product was purchased in which to sue is a defense based upon which of thefollowing?The statute of limitations.The statute of perpetuity.The statute of time.The statute of repose.The statute of dates.
“Green Gold.”Martin owned a factory in which he manufactured furniture. Martin had someextra space in the factory and decided to use heat lamps to grow marijuana. Hesmuggled the marijuana into the hands of dealers by hollowing out the furnitureand placing the marijuana inside and by putting the marijuana in drawers, etc.Law enforcement became suspicious and unexpectedly burst into the buildingwithout a warrant, discovering the marijuana. Martin asked the agent in chargeabout the lack of a warrant. The agent told him that Fourth Amendmentprotections did not extend to businesses. Martin was charged with growingmarijuana. Martin refused to testify at trial. At his trial, however, the judgeexcluded any evidence obtained from the search, and Martin was declared notguilty because there was no evidence against him. The agent was very angry andarrested Martin immediately for the same offense as he was walking down thecourthouse steps from the first trial. The agent tells Martin that he should betried again because the judge was incorrect. Martin is placed in a holding celland immediately calls his attorney in an attempt to get out of jail free.12.
Required information
Upon which of the following defenses wouldMartin’s lawyer rely upon in regards to the second charge after Martin wasfound not guilty?The Eighth AmendmentThe Sixth AmendmentThe defense of double jeopardyThe Fifth defenseThe Single Trial defense
13.
Which of the following is true regardingrights of the citizens of Belarus?The constitution limits the workweek to 30 hours.Citizens accused of crimes are presumed innocent untilproven guilty.The constitution restricts movement outside of the country.Citizens have the right to profess any religion, but they mustprofess some religion.The defendant in a criminal case has no protection fromproviding evidence against himself or herself.
14.
Which of the following refers to the extent towhich, as a matter of policy, a defendant may be held liable for theconsequences of his actions?Proximate cause.Cause in fact.Actual cause.Significant cause.Legal cause.
“MiracleFace.” Tara developed a great new type of face cream guaranteed to providetotal sun protection, remove wrinkles, and result in anyone looking at leastten years younger. Her product, Miracle Face, became extremely popular in theU.S., where she has several shops, and also in other countries to which it wasshipped. Tara has a number of individuals in other countries seeking to teamwith her in selling Miracle Face. Sam, a citizen of Mexico, asks that she granthim permission to use her name and any associated trademarks, and allow him tosell Miracle Face in Mexico. Tara has an offer, however, from another Mexicancitizen, Maria. Maria proposes that she and Tara associate together, open abusiness to sell Miracle Face, and share profits and managementresponsibilities. Tara has also thought about opening her own business inMexico in conformity with Mexican laws. She would then, hire employees inMexico to sell the product. Another matter Tara has considered is simplyarranging for her products to be shipped to Mexico for sale, and she isinterested in the effect of any trade agreements in effect between the U.S. andMexico.15.
Required information
If Tara ships Miracle Face to Mexico for sale,she would be involved in the _____ of goods.franchisingexportimportlicensingaffiliating16.
Harry and Frank are in agreement that Harrywill pay Frank $2,000 for a used car. At what point is there a bindingcontract?When the money is paid.When the agreement is made.Ten days after the car is delivered and approved.When the car is delivered.Twenty days after the car is delivered and approved.
17.
Which of the following is a partnershipagreement in which company members hold transferable shares, while all thegoods of the company are held in the names of the partners?A joint partnershipA collusive partnershipA joint corporationA joint stock companyA collusive corporation
18.
A majority of citizens in a democracy canagree to permit certain authorities to make and enforce rules describing whatbehavior is permitted and encouraged in their community. These rules are whatwe refer to as the ______.Stare decisisLawDemocratic validationElectoral collegeCommunity standard
19.
Which of the following is true regarding thefederal appellate court system’s use of ADR?By law ADR is outlawed atthe federal appellate court level.While ADR is popular at the district court level, few federalappellate courts use it.All federal appellate courts use early neutral case evaluationbut none use mediation.Almost all federal circuit courts of appeal have mediationprograms underway.All federal courts use arbitration but few have mediationprograms.
20.
Which of the following is an example of theimposition of strict liability?A minor shoplifts in a department store.An adult shoplifts in a department store.A business sells cigarettes to a minor.A burglar breaks into a home to steal jewelry.A robber pulls a gun to rob a bank teller.
21.
Which of the following is true regarding thelaw of negligence in Germany?It is the same as the law of negligence in the United States.It focuses only on conscious negligence.It focuses only on unconscious negligence.Both mental and physical capabilities are taken into account indetermining whether a defendant is negligent.Courts distinguish between conscious and unconsciousnegligence with defendants who have engaged in only conscious negligence beingfound not guilty.
22.
A person who has the legal right to bring anaction in court has standing.TrueFalse
“To theDogs.” Alice loves all animals and is starting a new grooming business forthem. She believes that animals are very important and plans to exceed anyapplicable regulations regarding cleanliness and health standards. Alicethinks, however, some local regulations make no sense. For example, there is alocal ordinance that all dogs must be kept on a leash at all times when not inan inside area. Although Alice is placing her business on a large lot with afenced outside area allowing plenty of room for dogs to run free, she plans toobey the leash regulation and all others. She is aware, however, that somemembers of the community have had success in changing local regulations bypetitioning city council. Alice plans to proceed in that manner to attempt achange in the leash law.23.
Required information
Alice’s plan to obey all laws and regulationseven if she does not agree with them is rooted in which of the following?Cost-benefit analysisThe historical schoolLegal positivismNatural lawLegal realism
24.
Contract law is said to be based on a[n]___________ theory, meaning that the existence and interpretation of thecontract is based on the outward manifestations of intent by the parties.InterpretiveObjectiveSubjectiveUnilateralAppearing
25.
____ is the type of alternative disputeresolution procedure wherein disputes are submitted for resolution to private,nonofficial persons selected in a manner provided by law or the agreement ofthe parties.Multi-cultural evaluationInternational evaluationArbitrationNeutral evaluationMediation
26.
Which of the following contains summaries ofcommon law rules in a particular area of the law?State Administrative CodesRestatements of the LawExecutive ProclamationsCase ReportersU.S. Code
27.
What was the result at the U.S. Supreme Courtlevel inGoodyear Dunlop TiresOperations, S.A. v. Brown,involving whether a court in North Carolina could exercise jurisdiction overthe defendant tire manufacturer and its subsidiaries who were based in Turkeyand France? (The underlying lawsuit involved the deaths of North Carolinaresidents in France when a bus in which they were riding allegedly overturneddue to problems with its tires.)The Court ruled that based on the stream of commerce theory, theNorth Carolina court could exercise specific jurisdiction over the foreigndefendants.The court ruled that the North Carolina court could not exercisejurisdiction over the defendants.The Court ruled that based on the general contacts theory, theNorth Carolina court could exercise specific jurisdiction over the foreigndefendants but not general jurisdiction.The Court ruled thatbased on the stream of commerce theory, the North Carolina court could exercisegeneral jurisdiction over the foreign defendants.The Court ruled that based on the general contacts theory, theNorth Carolina court could exercise general jurisdiction over the foreigndefendants but not specific jurisdiction.
28.
A company that sends its products to a foreignmarketplace for sale has engaged in ______.ExportationSubsidizationForeign transactionImportationForeign distributing
29.
What was the result at the U.S. Supreme Courtlevel in the Case Opener involving the constitutionality of the“individual mandate” contained within the Affordable Care Actrequiring that most Americans obtain minimum essential health insurance containedwithin the Affordable Care Act?The Supreme Court upheld the “individual mandate” ofthe Affordable Care Act on the basis that it was a valid exercise ofcongressional power under the taxing clause and also under the Commerce Clause.The Supreme Court upheld the “individual mandate” ofthe Affordable Care Act on the basis that it was a valid exercise ofcongressional power under the taxing clause.The Supreme Court struckthe “individual mandate” from the Affordable Care Act as a violationof the Commerce Clause but allowed the remainder of the law to remain.The Supreme Court struck the “individual mandate” fromthe Affordable Care Act as a violation of the taxing clause but allowed theremainder of the law to remain.The Supreme Court upheld the “individual mandate of theAffordable Care Act on the basis that it was a valid exercise of congressionalpower” under the commerce clause.
30.
Which of the following is true regarding proofof design defect?State law across the country is generally uniform regarding howto establish a design defect.State law is irrelevant because federal law dictates how toestablish a design defect.States are not in agreement as to how to establish a designdefect.Each local county in each state determines how a design defectwill be established.Because of the amount of international trade, there areinternational treaties establishing for each U.S. state how design defects willbe established.
31.
A local Chamber of Commerce plans a seminar on“the social responsibility of business in our community.” What doesthat term reference?The expectations of employees regarding wage rates.The expectations that the community imposes on firms doingbusiness inside its borders.The responsibility of business to make profit for shareholders.The responsibility of business to have annual meetings.The expectations of management in regard to adequate utilityresources.
32.
According to the text, which of the followingare criticisms of arbitration?That arbitration actions are less private than judicial actions.That it is too easy to get an arbitration award reversed by ajudge.That arbitration is more expensive than court litigation.That parties have less control through the arbitration processthan through a judicial action.That companies can more easily hide misdoing.
“Refusal toPay.” Business law teacher Debby needed some yard work done. She told herclass that she would give $50 to the first person who mowed her yard. She alsoentered into an agreement with Betty who agreed to trim some shrubbery for $40.Max went to mow Debby’s yard. Unfortunately, just as he finished mowing, aneighborhood dog bit him, and he had to go to the emergency room for a coupleof stitches. Debby refused to pay Max because she said that he had angered theneighbors and their dog, and that he was more trouble than he was worth.Secretly, Debby was glad about the dog bite because she felt it gave her anexcuse not to pay. Max refused to pay the emergency room because he said thatthey did not have a binding, bilateral contract. Betty refused to trim theshrubbery because she got a better offer and claimed that she was not bound onthe contract until she started to perform.33.
Required information
Which of the following is an appropriatecharacterization of the agreement between Debby and Max?They had a bilateral and unilateral agreement.They had a unilateral, express agreement.They had a unilateral, implied agreement.They had a bilateral, implied agreement.They had a bilateral,express agreement.34.
Which of the following was the result onappeal inJohn Coomer v. KansasCity Royals Baseball Team,the case in the text in which the plaintiff sued after being hit in the eye bya hotdog thrown into the stands by a team mascot during the “HotdogLaunch,” a customary activity during games?The court dismissed the case on the basis that injuries at baseballgames are an inherent part of the sport whether by baseball or by hotdog.The court dismissed the case on the basis that through a clickagreement the plaintiff expressly agreed not to sue for any injuries whenordering the tickets through the Internet.The court affirmed a jury verdict in favor of the defense on thebasis that the plaintiff assumed the risk of injury by hotdog because thetossing of the hotdogs was a customary event of which the plaintiff was orshould have been aware before attending the game.The court affirmed a jury verdict finding for the defense on thebasis that the plaintiff did not immediately report injuries to stadiumofficials.The court found that the jury was improperly instructed onthe assumption of the risk defense and that the plaintiff did not assume therisk of injury by hotdog by attending the game.
35.
A false statement of a material fact regardingownership of business property that results in a loss of sales is referred toas _______.Slander of titleTrade libelLibel of saleSlander of qualityLibel of title36.
Under the Sarbanes-Oxley Act, it is now afelony to willfully fail to maintain proper records of audits and work papersfor at least ______ years.65243
37.
What was the result in the Case Opener inwhich an employee of Hooters complaining of sexual harassment attempted toavoid a signed arbitration agreement?The court fully enforcedthe arbitration agreement as it was written.The court itself rewrote the arbitration agreement, and it wasthen enforced.The court required that Hooters rewrite the arbitrationagreement, and it was then enforced.The court enforced the arbitration agreement in part, butrequired, contrary to the agreement, that Hooters provide the employee thespecifics of its defenses at least 5 days before the commencement of thearbitration.The arbitration agreement was not enforced by the court.
38.
Which of the following is a business thatexists because of an arrangement between the owner of a trade name or trademarkand a person who sells goods or services under the trade name or trademark?FranchiseConsensual sellerJoint partnershipApproved arrangementJoint venture
“Book Sale.”Beverly offered to sell Rick a used business law book for $50. She told himthat he could use it in his upcoming business law class the next semester. Infact, there was a problem with the book; it was several editions old. Rick wasnot aware of that fact, and neither was Beverly. When Rick took the book toclass and realized the problem, he went back to Beverly requesting a refund.Beverly refused to return his money. She claimed that subjectively she thoughtthat the book was correct, that she did not commit fraud, and that a bindingcontract existed. The book, however, is outdated and cannot be appropriatelyused in the class.39.
Required information
Which of the following would be the correctanalysis of the effect of the discovery that Rick has a book that is notappropriate for the class?Because the parties had a mutual misunderstanding, theparties did not come to a meeting of the minds, and there is no contract.Because both parties were mistaken, at Rick’s option he mayreturn the book; but only half of the purchase price would be required as arefund from Beverly because she is not guilty of fraud.Rick is stuck with the book because Beverly subjectively thoughtit was the correct book, and Rick did not openly disagree before the contractwas executed.Rick is stuck with the book because he objectively agreed topurchase it.Rick is stuck with thebook because Beverly did not commit fraud.“Junk Food.”Mary Dogood, a member of the school board in ABC County, is appalled at the amountof junk food in the schools. She convinces the state legislature to pass anordinance that no stores may sell any unhealthy junk food within 500 feet ofany school or day care center. A teacher of political science raises the issueof whether the regulation is valid and is told that it is a valid exercise ofthe jurisdiction’s police power to protect its citizens. Convenience storesbalk at the regulation and challenge it in court claiming that the lawimpermissibly affects interstate commerce.40.
Required information
Restrictions on states’ authority to pass lawsthat substantially affect interstate commerce are referenced by which of thefollowing?The superior commerce clauseThe state authority clauseThe dormant commerce clauseThe interstate trafficking commerce clauseThe tracking clause
41.
Which of the following isfalseregarding franchises?The franchisor can set sales quotas and record-keepingrequirements.If a franchisor exercises too much authority in the day-to-dayaffairs of the franchisee’s business, the franchisor could be held liable forthe torts of the franchisee’s employees.A franchise is a contractual relationship between the franchisorand the franchisee.The UCC does not apply in the realm of disputes betweenfranchisors and franchisees.The franchisor has the legal authority to ensure that thefranchisee maintains the quality of goods and services associated with thefranchise.
42.
What is the basis of consequentialism?Categorical imperativesDisregard of consequencesInquiry into the consequencesAct utilitarianismDeontology
43.
Which of the following is true regarding therelationship between ethical relativism and situational ethics?Like ethical relativism, situational ethics requires that weevaluate the morality of an action by imagining ourselves in the position ofthe person facing the ethical dilemma; but unlike ethical relativism,situational ethics allows us to judge other people’s actions.Like ethical relativism, situational ethics requires thatwe evaluate the morality of an action by imagining ourselves in the position ofthe person facing the ethical dilemma and also like ethical relativism,situational ethics allows us to judge the actions of others.There is no relationship between ethical relativism andsituational ethics because the theories are fundamentally opposed to eachother.Ethical relativism and situational ethics are the same theory.While the two theories are similar, ethical relativism upholdsthe existence of objective moral standards whereas situational ethics refusesto recognize the existence of objective moral standards.
44.
What was the ruling of the court in the caseofWelgev. Planters Lifesavers Co., the case in which the plaintiff injured his hand when a jarcontaining peanuts broke?That the case would be dismissed because the plaintiff could notestablish that the jar was maintained in a pristine condition after its purchase.That the plaintiff was unable to recover because he was not theactual purchaser of the jar of peanuts.That the plaintiff would be allowed to proceed with thelawsuit because of a lack of evidence that the jar had been damaged after itspurchase.That the plaintiff was unable to recover because negligence inmanufacture of the jar could not be established.That the plaintiff would be allowed to proceed becausenegligence was established.
45.
What did the court rule in regard to theplaintiff’s claim of intentional infliction of emotional distress inOlson v. CenturyLink, the case in the text in which the plaintiffalleged that representatives of the defendant, a provider of telephoneservices, wrongly failed to process his application, disconnected his telephoneservice, and hung up on him during telephone conversations?That the plaintiff’s complaint regarding representatives hangingup on him were sufficient to support a claim of intentional infliction ofemotional distress but that the plaintiff’s other allegations were insufficientto support an award based on the tort of the intentional infliction ofemotional distress.That the plaintiff’s complaint regarding the disconnection ofhis telephone service was sufficient to support a claim of intentionalinfliction of emotional distress but that the plaintiff’s other allegationswere insufficient to support an award based on the tort of the intentionalinfliction of emotional distress.That the plaintiff’s complaint regarding the refusal to processhis application was sufficient to support a claim of intentional infliction ofemotional distress but that the plaintiff’s other allegations were insufficientto support an award based on the tort of the intentional infliction ofemotional distress.That the conduct complained of by the plaintiff failed tomeet the level of conduct required for a finding of the intentional inflictionof emotional distress.That the plaintiff would be allowed to proceed as to allallegations because they were all adequate to support a verdict based on theintentional infliction of emotional distress.
46.
Mike gets angry because Ben made a bettergrade on a test than he did. They get into an argument, and Mike takes a swingat Ben intending to hit him. Ben shoves Mike in order to avoid the blow. Whichof the following is true regarding Ben’s actions?Ben cannot rely upon self-defense because his life was not indanger.Ben cannot rely on sel