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328 terms

Business Law Final

STUDY
PLAY
A1. Great Plains Bank provides a loan to enable Helene to buy real property. This loan is
b. a mortgage.
A2. Jaime buys a home by paying part of the purchase price up front in cash and borrowing the rest of the funds from Valley Credit Union. The part of the price paid up front in cash is
a. a down payment.
A3. Ridgeline Bank provides Stanley with a mortgage to buy a home. The rate of interest is fixed for three years and then adjusts annually. This is
b. an adjustable-rate mortgage.
A4. Consumer Mortgage Loans provides Demi with a mortgage to buy a home. Under the terms, Demi can choose to pay only the interest portion of the monthly payments and forgo paying of the principal for five years. This is
c. an interest-only mortgage.
A5. Rita borrows $30,000 from South State Credit Union. South State accepts Rita's equity in her home as collateral, which can be seized if the loan is not repaid on time. This is
a. a home equity loan.
A6. Milo borrows $125,000 from North State Bank to buy a home. To comply with the Statute of Frauds, the mortgage must be
d. in writing.
A7. Hubert borrows $100,000 from Integrity Mortgage Mart to buy a home. Soon after obtaining the mortgage, Integrity convinces Hubert to refinance. This is
c. loan flipping.
A8. Lorna borrows $175,000 from Mountainside Credit Union to buy a home. Among the terms that must be disclosed under federal law is the annual percentage rate. This is
a. the actual cost of the loan on a yearly basis.
A9. Kenton borrows $150,000 from Liberty Home Finance Corporation to buy a home. Federal law concerns primarily
d. what must be disclosed with respect to a mortgage.
A10. Main Street Lenders, Inc., attempts to coerce Nolan—who specializes in determining the value of real and personal property—into misstating the value of a property on which a loan is to be issued. This is
d. a violation of the law.
A11. Ruth owns a home on which she has two mortgages provided by Security Bank. Town Refinance Inc. tells Ruth that it can refinance the loans to reduce her payments. Town Refinance provides all of the required documents, which accurately state the payments under the new loan as higher. Ruth does not read the documents. Town Refinance is most likely liable for
d. nothing.
24-Hour Credit Corporation issues high-cost and high-fee mortgage products to people, including Benny, who could not easily obtain credit under other loan programs. (Fact Pattern 16-1A)
...
A12. Refer to Fact Pattern 16-1A. Under federal law, if 24-Hour Credit fails to provide certain material disclosures with respect to the loan, Benny's right to rescind the loan
c. is extended for up to three years.
A13. Refer to Fact Pattern 16-1A. Under federal law, disclosures with respect to one of 24-Hour Credit's loans must be provided
b. a certain number of days before the loan is finalized.
A14. Property Financial Corporation makes loans that qualify, under a Federal Reserve Board amendment to Regulation Z, as Higher-Priced Mortgage Loans (HPMLs). Quinn applies to Property Financial for an HPML. To make the loan, the lender must
d. verify the borrower's ability to repay the loan.
A15. Money Mortgage Mart makes a short-term loan to Natalie to allow her to make a down payment on a new home before selling her current home. This is
a. a bridge loan
A16. Velma borrows $110,000 from Watershed Bank to buy a home. If she fails to make payments on the mortgage, the bank has the right to repossess and auction off the property securing the loan. This is
c. foreclosure.
A17. Harbor Bay Bank has made mortgage loans to consumers that qualify for the Home Affordable Modification Program (HAMP), which offers incentives to lenders to change the terms of certain loans. The purpose of HAMP is to
c. reduce monthly payments to levels that homeowners can pay.
A18. Darwin borrows $200,000 from Evermore Bank to buy a home. Less than six months into the term, Darwin stops making payments on the loan. To initiate the process to repossess and auction off the property securing the loan, Evermore must
c. record a notice of default with the appropriate county office.
A19. Reed borrows $150,000 from Suburban Credit Union to buy a home, which secures the loan. Three years later, Reed stops making payments on the loan. After Suburban Credit repossesses and auctions off the property to Tyler, equity remains. This amount most likely belongs to
a. Reed.
A20. Seymour borrows $350,000 from Reliable Bank to buy a home. Seymour stops making payments on the loan ten months later. After the bank repossesses the property securing the loan but before it is sold, Seymour wants to buy it. This is
d. the right of redemption.
B1. Abner borrows funds from Boomtown Credit Union (BCU) to buy real property. Abner signs a written instrument that gives BCU an interest in the property as security for the debt's payment. This instrument is
a. a mortgage.
B2. Liberty Bank provides Michelle with a standard mortgage with an unchanging rate of interest to buy a home. Payments on the loan remain the same for the duration of the mortgage. This is
a. a fixed-rate mortgage.
B3. Franz asks Gateway Mortgage Credit for a loan to pay for the purchase of a home. With a poor credit score and a high current debt-to-income ratio, Franz does not qualify for a standard mortgage. Gateway is most likely to provide
c. a subprime mortgage.
B4. Community Trust Bank provides Devlin with a mortgage to buy a home. The rate of interest is fixed for seven years. At the end of that period, a large payment for the entire balance of the mortgage loan is due. This is
a. a balloon mortgage.
B5. Tracy borrows $30,000 from Secure State Bank. The lender accepts Tracy's equity in her home as collateral, which can be seized if the loan is not repaid on time. With respect to any proceeding that occurs if Tracy fails to make the payments, this loan is subordinated. This means that it
b. takes a lower priority.
B6. Laurel borrows $150,000 from Marketplace Mortgage Loans to buy a home. The financing documents require Laurel to maintain the property, obtain homeowners' insurance, and pay all property taxes and other assessments through the lender. With respect to these terms, a court is most likely to
a. enforce them.
B7. Duran applies to EZ Credit Mortgage Company for $100,000 to buy a home. EZ Credit steers Duran toward an adjustable-rate mortgage even though he qualifies for a fixed-rate mortgage. This is
d. steering and targeting.
B8. Dahlia borrows $125,000 from Clearview Credit Union to buy a home. The interest rate and other terms that are required to be disclosed under federal law must be
a. based on uniform formulas of calculation.
B9. Virgil borrows $175,000 from United Finance Bank to buy a home. Federal law regulates primarily
a. mortgage terms that must be disclosed in writing.
Northeast Bank makes mortgage loans to consumers, including Mai, to buy homes. (Fact Pattern 16-B)
...
B10. Refer to Fact Pattern 16-1B. Under federal law, disclosures with respect to one of Northeast's loans must be provided
b. a certain number of days before the loan is finalized.\
B11. Refer to Fact Pattern 16-1B. For Mai's loan, Northeast provides all required disclosures. Mai has a right to rescind the mortgage
c. within three business days.
B12. Riverview Bank makes a mortgage loan of $95,000 to Pomeroy to buy a home. Under federal law, if Riverview fails to provide certain material disclosures with respect to the loan, Pomeroy's right to rescind the loan
c. is extended for up to three years.
B13. Shade Tree Lending Corporation advertises loans as fixed-rate loans but, in fact, their rates or payment amounts will change. This is
d. a violation of the law.
B14. Violet negotiates with Urban Credit Corporation to obtain a loan for $85,000 to buy a home. During the negotiations, Urban Credit orally misrepresents the terms, but provides the required documents, which accurately state the terms. Violet does not read the documents. The party or parties most likely liable for a violation of the law is
a. neither party.
B15. Hill & Dale Credit Corporation makes mortgage loans to consumers secured by their principal homes. For a Hill & Dale loan to qualify as a Higher-Priced Mortgage Loan (HPML), its annual percentage rate must exceed, by a certain amount,
a. the average prime offer rate for a comparable transaction.
B16. Denise borrows $90,000 from Clear Lake Credit Union to buy a home. Denise loses her job and fails to make payments on the mortgage, but assures Clear Lake Credit that she will soon secure a new job. The lender agrees to postpone the payments. This is
b. forbearance.
B17. Erin and Dooley, a married couple, borrow $120,000 from Capital & Credit Bank to buy a home. When Erin and Dooley divorce, they are unable to make payments on the mortgage. The market value of the home has declined to less than the balance of the loan. Capital & Credit agrees to a sale of the property for this amount. This is
d. a short sale.
B18. Agnes borrows $110,000 from Bay Harbor Bank to buy a home under a mortgage with an acceleration clause. After eighteen payments, Agnes stops making payments on the mortgage. Bay Harbor
a. can foreclose once on the entire amount of the loan.
B19. Upton borrows $150,000 from Valley Credit Union to buy a home, which secures the loan. Three years into the term, Upton stops making payments on it. Valley Credit repossesses and auctions off the property to Wesley. The sale proceeds are not enough to cover the unpaid amount of the loan. In most states, Valley Credit can ask a court for
a. a deficiency judgment.
B20. Gena borrows $350,000 from Fish Island Bank to buy a home, which secures the mortgage. In the seventh year of the loan, Gena stops making payments. After the bank repossesses the property but before it is sold, Gena may buy it by paying
d. the full amount of the debt, plus any interest and costs.
A1. Hermione starts up, and assumes the financial risk of, Graphic Ads, a new enterprise. Hermione is
d. a sole proprietor.
A2. Carl sells Direct Marketing Enterprises, a sole proprietorship, to Eve. This is a transfer of
d. the ownership of the business.
A3. Jody owns KuppaJava Kiosks, a sole proprietorship. Jody's liability is
d. unlimited.
A4. Real Events Promotion Corporation licenses trademarks to Stadium Souvenirs, Inc., to use in selling caps, sweatshirts, and similar goods. This is
a. a franchise.
A5. Leo buys an exclusive territory in which he is authorized to set up a plant to make Midwest Dairy, Inc., products. After receiving the formula, Leo begins making Nice Ice-brand ice cream and other Midwest prod¬ucts. This is
c. a manufacturing franchise.
A6. In-Home Maid Service Company uses a Web site to provide downloadable in-formation to prospective franchises. This online information is the equivalent of an offer that must comply with
c. the Federal Trade Commission's Franchise Rule.
A7. Echo enters into an agreement with Deep Pan Pies, Inc., to operate a franchise in Centre City. Later, Deep grants franchises to others within the city. Echo files a suit to close them. If the court rules in Echo's favor it will most likely be on the ground that
b. Deep violated the implied covenant of good faith and fair dealing.
A8. Dominique buys a franchise from Cheyenne Artisans, Inc. This provides Cheyenne with an outlet for the firm's goods, some of which Dominique is required to buy at an established price. In their agree¬ment, Cheyenne may also specify
b. the franchise's business organizational form.
A9. Flip Gymnastics & Karate, Inc., grants a franchise to Gibby to operate a Flip gym. Flip may require Gibby to pay the franchisor a percentage of his
a. annual sales or volume of business
A10. Sweet Styles, Inc., a franchisor of clothing stores, wishes to standardize the pricing practices of its franchisees that have engaged in price-cutting to increase their respective shares of the market. The most pru¬dent action might be for Sweet to
b. suggest the prices at which its franchisees sell their products.
A11. Inger is a franchisee of Honey Bear Restaurants, LLC Their contract gives Honey Bear the right to control virtually all aspects of Inger's op¬eration, including the hiring of employees. One of the employees, Joris commits a tort against Kiley, one of Inger's customers. Kiley files a suit against Honey Bear. Honey Bear is most likely
a. liable because Honey Bear exercises control over Inger's operation.
A12. Noah and Orin do business as Personnel Partners. In most states, for purposes of suing and being sued, Personnel Partners would be treated as
c. an entity.
Desi starts up eSites, an Internet service, and leases office space in a building owned by Fred. The lease requires Desi to pay Fred a base rental of $1,250, plus 10 percent of eSites' profits, each month. The term is two years. Desi hires Gwen to work at eSites' tech support desk at an hourly wage of $12.50, plus a commis¬sion of 10 percent of the prof¬its. The term is also two years. (Fact Pattern 17-1A)
....
A13. Refer to Fact Pattern 17-1A. Desi and Fred are
a. not partners, because Fred does not have an ownership interest or manage¬ment rights in eSites.
A14. Refer to Fact Pattern 17-1A. Desi and Gwen are
a. not partners, because Gwen does not have an ownership interest or manage¬ment rights in eSites.
A15. Savannah and Rex agree while talking on the phone to form a partner¬ship to deal in sales of natural gas. Their partnership agreement is le¬gally binding
b. only if the agreement is reduced to writing.
A16. Corbin, a partner in Doctors Medical Clinic, applies for a loan with Evermore Bank allegedly on Doctors' behalf but without the authoriza¬tion of the other partners. Evermore knows that Corbin is not authorized to take out the loan. Corbin defaults on the loan. Liability for its unpaid amount is imposed on
b. Corbin only.
Luann and Mace are partners in Networx, a computer peripherals firm. (Fact Patter 17-2A)
...
A17. Refer to Fact Pattern 17-2A. Luann signs a contract with Oleo Chips, a retail component supplier, apparently on Networx's behalf. The contract is binding on
a. Luann, Mace, and Networx.
A18. Refer to Fact Pattern 17-2A. Mace dissociates from Networx. Luann signs a con¬tract with Physik Drives, a wholesale component supplier, apparently on Networx's behalf. Physik does not know of Mace's dissociation. The contract is binding on
a. Luann, Mace, and Networx.
A19. Hud and Iggy form Jerry-Bilt Construction to enter into a contract to build one bridge. Under their partnership agreement, Jerry-Bilt is to dissolve when the bridge is built. Iggy signs a contract for the firm to build a second bridge. Jerry-Bilt
a. dissolves as soon as the first bridge is built.
A20. Jim and Kyle are partners in J&K Sales, which exports technical equip¬ment under a three-year partnership agreement. The U.S. gov¬ernment declares that the equipment can no longer be ex¬ported. J&K
c. dissolves immediately unless the partners change its business.
B1. Leigh wants to go into the business of construction contracting. Among the reasons that would probably convince Leigh to set up his business as a sole proprietorship would be
a. its greater organizational flexibility.
B2. Kelly, the owner of Llama Farms, a sole proprietorship, wants to obtain additional busi¬ness capital but to maintain control. This can best be accomplished by
a. borrowing funds.
B3. Hometown Realtors, Inc., sells a franchise to Group Sales Company. Group Sales is
a. a franchisee.
B4. Mello Coffee Shops, Inc., sells a franchise to Noah's Arch, a café. Mello is
b. a franchisor.
B5. Sylvester buys a franchise from Resistance Athletic Shoes Inc. This relationship, like all other franchise relationships, is governed by
a. contract law.
B6. Nicole is interested in buying a franchise from Oz Oysters Inc. For Nicole to make an informed decision concerning this purchase, Oz must disclose in writing or online
b. material facts such as the basis of projected earnings figures.
B7. Vim+Vigor Fitness Corporation uses a Web site to provide downloadable information to prospective franchises. This online information is the equivalent of an offer that must comply with
c. the Federal Trade Commission's Franchise Rule.
B8. Dingo Bangles Company wants to present information in "disclosure documents" via the Internet to prospective franchisees. Among other legal requirements with which Dingo must comply, prospective franchisees must
b. be able to download or save all electronic documents.
B9. Cluckee Chick'n Corporation provides its prospective franchisees with projected earnings figures based on actual data. Cluckee Chick'n must also disclose
a. the number and percentage of franchisees that achieved the figures.
B10. A franchise agreement between Software2 Company and Games3, Inc., is silent on a time for termination of the franchise. Software2 may
c. terminate on reasonable notice.
B11. Gage buys from Fishing Guide Corporation the exclusive right to sell Fishing Guide rods and reels in a certain area. Their franchise agreement requires Gage to pay certain administrative expenses. Their agreement may also require Gage to pay a percentage of the franchisor's
a. advertising costs.
B12. Tawny buys a Super Grill franchise. Super Grill requires that its fran¬chi¬sees buy its products for every phase of their op¬erations. Be¬cause Tawny wishes to buy less expensive products, she challenges the re¬quirement. Her best argument is probably that the re¬quirement violates
c. the federal antitrust laws.
B13. Pronto Tacos LLC grants a franchise to Omar to open and operate a Pronto Tacos restaurant. Pronto will likely charge Omar
a. an initial fee or lump sum price for the franchise license.
B14. Ben, who runs a livestock breeding business, owes the Circle C Ranch $40,000. Ben agrees to pay the Circle C a percentage of his profits each month until the debt is paid. Because of this agreement, the Circle C is
b. Ben's creditor only.
B15. Hollister and Gladys do business as partners in Frothy Confections. For federal income tax purposes, Frothy Confections would be treated as
a. a pass-through entity.
B16. Parker and Oscar sign a partnership agreement to do business as "Parker's Plumbing" without specifying a duration. This partnership is terminable
a. at any time by either partner.
B17. Ryder and Sergei are partners in Timberline Gear, which sells mountain- and rock-climbing equipment. Ryder manages the business. Unless the partnership agreement states otherwise, Ryder is
d. not entitled to compensation.
B18. Trina and Uri do business as Value Gems. In acting on the firm's behalf in a deal with World Diamond Exchange, Trina recklessly exceeds what Value Gems can afford to pay, causing damage to the firm. Trina is
a. liable for breach of the duty of care.
B19. Cody is a partner in Derivative Investment Service (DIS). Cody can inspect
a. all of DIS's books and records.
B20. Mead, Nero, and Olen do business as Pipe & Plumbing Services, a partnership. After Mead's relationship to the firm ends, Nero and Olen agree to discontinue the business. This is
b. dissolution.
A1. Sustainable Café LLC is a limited liability company. Like any other LLC, unless Sustainable Café chooses otherwise, the firm will be taxed as
c. a partnership.
A2. Esteban and Florian want to form a limited liability company (LLC) to manage their business, Gordian Nuts. LLC statutes have been adopted in
a. all states.
A3. Bee Hive Honey, LLC's members include Chad. For purposes of suing and being sued, Bee Hive Honey is
c. a legal entity apart from the owners.
A4. Greta is a member of Hovercraft LLC. As a member, Greta is
c. an owner.
A5. Coco is considering forms of business organization for her concessions business—Coco's Cupcakes. Most states require that a limited liability company have at least
b. at least one member.
A6. Location! Realty LLC is a limited liability company. Like other LLCs, for federal jurisdictional purposes, Location! Realty is most likely a citizen of
b. every state in which its members are citizens.
A7. Vijay is a member of Watchit, LLC, a limited liability company. Vijay is li-able for Watchit's debts
b. to the extent of his capital contribution.
A8. Lui is considering forms of business organization for a chain of Magic Trix novelty stores. One advantage of the limited liability company form, with respect to tax options, is its
a. flexibility.
A9. CPA Accounting, LLC, is a limited liability company. If the law in CPA's state is like the law in most states, unless the members have agreed other-wise, participants in the firm's management will be considered to include
a. all members.
A10. B2B, LLC, is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is gov¬erned by
a. the applicable state LLC statute.
A11. Cecilia's Day Spa, LLC, is a member-managed limited liability company. If the law in Cecilia's state is like the law in most states, unless the members have agreed otherwise, voting rights are apportioned according to
a. capital contributions.
A12. Flip is a member of Great States Trucking LLC. Flip's relationship to Great States ends, but the firm continues to do business. This is
a. dissociation.
A13. Vasili is considering forms of business organization for Vasili's Designs, an ar¬chitectural firm. An advantage of a limited liability partnership is that partners may be able to avoid personal liability for
a. any partnership obligation.
A14. Jack and Kyra are partners in Law Firm, LLP, a limited liability partnership. Jack supervises Kyra, who negligently fails to appear in court on behalf of Milo, a client. Liability to Milo rests with
a. Jack and Kyra.
A15. Fern and Gray want to form a limited partnership to manage two restaurants: Café Latte and Deli Delite. In most states, a limited partnership will be created when
a. a certificate of limited partnership is filed.
A16. Maury, Neil, and Ogden want to form a limited partnership to manage their Picture This photo studio. Their firm must have
a. at least one general partner and one limited partner.
A17. Lucy is a limited partner in Metro Contractors, a limited partnership, which cannot pay its debts. Lucy is personally liable for the debts
c. to the extent of her capital contribution.
A18. Venture Capital, LP, is a limited partnership. Its limited partners include more than 150 sophisticated investors and investment professionals. A Venture limited partner loses his or her limited liability if he or she
a. acts as the firm's manager.
A19. Stu is a limited partner and Tia is a general partner in S&T, a limited part-nership. Between Stu and Tia, on S&T's dissolution its assets will first be distributed to pay
a. either partner's unpaid distribution of partnership assets.
A20. Energy Unlimited, LP, is a limited partnership to which its partners, in-cluding Fink, have contributed capital. Energy's creditors include Graves Engineering, Inc. On Energy's dissolution, its assets will be distributed to pay
c. Graves first.
A1. Sustainable Café LLC is a limited liability company. Like any other LLC, unless Sustainable Café chooses otherwise, the firm will be taxed as
c. a partnership.
A2. Esteban and Florian want to form a limited liability company (LLC) to manage their business, Gordian Nuts. LLC statutes have been adopted in
a. all states.
A3. Bee Hive Honey, LLC's members include Chad. For purposes of suing and being sued, Bee Hive Honey is
c. a legal entity apart from the owners.
A4. Greta is a member of Hovercraft LLC. As a member, Greta is
c. an owner.
A5. Coco is considering forms of business organization for her concessions business—Coco's Cupcakes. Most states require that a limited liability company have at least
b. at least one member.
A6. Location! Realty LLC is a limited liability company. Like other LLCs, for federal jurisdictional purposes, Location! Realty is most likely a citizen of
b. every state in which its members are citizens.
A7. Vijay is a member of Watchit, LLC, a limited liability company. Vijay is li-able for Watchit's debts
b. to the extent of his capital contribution.
A8. Lui is considering forms of business organization for a chain of Magic Trix novelty stores. One advantage of the limited liability company form, with respect to tax options, is its
a. flexibility.
A9. CPA Accounting, LLC, is a limited liability company. If the law in CPA's state is like the law in most states, unless the members have agreed other-wise, participants in the firm's management will be considered to include
a. all members.
A10. B2B, LLC, is a limited liability company. Among its members, a dispute arises that the operating agreement does not cover. The dispute is gov¬erned by
a. the applicable state LLC statute.
A11. Cecilia's Day Spa, LLC, is a member-managed limited liability company. If the law in Cecilia's state is like the law in most states, unless the members have agreed otherwise, voting rights are apportioned according to
a. capital contributions.
A12. Flip is a member of Great States Trucking LLC. Flip's relationship to Great States ends, but the firm continues to do business. This is
a. dissociation.
A13. Vasili is considering forms of business organization for Vasili's Designs, an ar¬chitectural firm. An advantage of a limited liability partnership is that partners may be able to avoid personal liability for
a. any partnership obligation.
A14. Jack and Kyra are partners in Law Firm, LLP, a limited liability partnership. Jack supervises Kyra, who negligently fails to appear in court on behalf of Milo, a client. Liability to Milo rests with
a. Jack and Kyra.
A15. Fern and Gray want to form a limited partnership to manage two restaurants: Café Latte and Deli Delite. In most states, a limited partnership will be created when
a. a certificate of limited partnership is filed.
A16. Maury, Neil, and Ogden want to form a limited partnership to manage their Picture This photo studio. Their firm must have
a. at least one general partner and one limited partner.
A17. Lucy is a limited partner in Metro Contractors, a limited partnership, which cannot pay its debts. Lucy is personally liable for the debts
c. to the extent of her capital contribution.
A18. Venture Capital, LP, is a limited partnership. Its limited partners include more than 150 sophisticated investors and investment professionals. A Venture limited partner loses his or her limited liability if he or she
a. acts as the firm's manager.
A19. Stu is a limited partner and Tia is a general partner in S&T, a limited part-nership. Between Stu and Tia, on S&T's dissolution its assets will first be distributed to pay
a. either partner's unpaid distribution of partnership assets.
A20. Energy Unlimited, LP, is a limited partnership to which its partners, in-cluding Fink, have contributed capital. Energy's creditors include Graves Engineering, Inc. On Energy's dissolution, its assets will be distributed to pay
c. Graves first.
B1. Felicity and Gideon want to form and do business as Home Healthcare Corporation. A corporation is
c. an artificial person.
B2. Gelato Ice, Inc., is incorporated in the state of New Jersey and is doing busi-ness in the state of New York. In New York, Gelato is properly re¬ferred to as
b. a foreign corporation.
B3. The shares of Capital Corporation are publicly traded in securities mar¬kets. Capital Corporation is
d. a publicly held corporation.
B4. Bertram, Claudia, and Dynah form Eat Local, Inc., a closely held corpo-ration, and agree to restrict the transfer of its stock to anyone else. A reasonable purpose for a stock transfer re¬striction in a closely held cor-poration, like the agreement between Bertram, Claudia, and Dynah, is
a. a desire to limit the participation of outsiders in the firm.
B5. Frida and Gregor want to market a new line of fishing gear. To avoid in¬come taxes at the corporate level, they should form
c. an S corporation.
B6. The abbreviation "P.A." in the name "Painless Dental, P.A." means that this organization is
b. a professional association.
B7. Caffeine Café, Inc., files its articles of incorporation with the appropriate government agency. Least likely to appear in the articles is the name of
b. each of the corporation's shareholders.
B8. Like the bylaws of other corporations, the bylaws of Farmland Equipment, Inc.,
c. were adopted at its first organizational meeting.
B9. Rapid Pest Control itself out to others as being a corporation but makes no attempt to incorporate. Ponce signs a contract with Rapid Pest Control that is not performed. Ponce files a suit against the firm. The court will likely hold that Rapid Pest Control is
a. a corporation by estoppel.
B10. Niki owns O.K. Oil Corporation. Niki uses O.K.'s funds to pay her per¬sonal expenses, creates Pure Fuel Corporation to engage in the same business as O.K., transfers O.K.'s assets to Pure Fuel, and petitions O.K. into bankruptcy. This most likely warrants
c. a pierce of O.K.'s corporate veil.
B11. Sophie and Tiny incorporate their beverage-container business as U-Twist Products, Inc. The first board of directors may be appointed by the firm's
b. incorporators.
B12. Whit is a director of Vids Corporation. With respect to policymaking de-cisions necessary to the management of corporate affairs, Whit and the other Vids directors have responsibility for
a. all of the decisions.
B13. Raul is chairman of the board of Swif-Vac Corporation. Pinky, a con¬sumer, is injured while using a Swif-Vac product. Pinky sues Swif-Vac, and Raul individu¬ally. Swif-Vac may pay Raul's legal fees under
c. the director's right to indemnification.
B14. Viola is a director of Water Pure Corporation. With respect to Water Pure, Viola's most important right is the right of
c. participation.
B15. Sylvia is an officer of Triad Hotel Company. As an officer, with respect to the corporation, Sylvia is
a. a fiduciary.
B16. Rocco is a director of Spa Lids & Tubs, Inc. Under the standard of due care owed by directors of a corporation, Rocco's decisions
c.
c. informed and reasonable.
B17. Genna is a director of Fab Stuff Corporation. Without informing Fab, Genna starts up Evertrendy, Inc., to compete with Fab. Genna is li¬able for breach of
c. the duty of loyalty.
B18. Naomi and Ogden are shareholders of MediCare Residences, Inc. As shareholders, they must approve
a. conducting a merger.
B19. Zero Sum Games Corporation has forty-three shareholders. The mini¬mum number that must be present at a meeting for a shareholders' vote is
b. a quorum.
B20. Orin is a shareholder of Pinkwater Corporation. In some states, Orin might in¬cur personal liability for Pinkwater obligations if he
b. buys stock for less than its fair-market value.
A1. Ivy and Justin want to form and do business as Kayak Adventures Corporation. A corporation can be owned by
c. artificial or natural persons.
A2. Skyla and Terry want to form and do business as Unbound Games Corporation. Most statutes governing the formation and use of corporations are guided by
d. the Revised Model Business Corporation Act.
A3. Mountaintop Clearview Corporation authorizes Niles, its employee, to oversee its timber operation. In the course of his employment, Niles disposes of the operation's waste illegally. Orson is a Mountaintop shareholder. Liability for this crime most likely rests with Orson to
c. the amount of Orson's investment in the firm.
A4. Boutique Corporation would like to change its corporate status to avoid in-come taxes at the corporate level. To qualify, the shareholders must not be
d. partnerships.
A5. Convenience Mart, Inc., is a closely held corporation. Convenience Mart is
c. generally allowed to restrict the transfer of its stock.
A6. Sullivan and Taylor want to form a corporation to provide catering services. The first step in the incorporation procedure is to
d. select a state in which to incorporate.
A7. Hailey and Ike hold the first organizational meeting of Java Drive-In Corporation. Probably the most important function of this meeting is
a. adopting Java's bylaws.
A8. Start-Up Corporation substantially complies with all conditions prece¬dent to incorpo¬ration. Start-Up has
c. de jure existence.
A9. Wild & Scenic River Tours, Inc., is a corporation. Wild & Scenic has the implied power to
d. perform all acts reasonably appropriate and necessary to accom¬plish its corporate purposes.
A10. Bret and Courtney form Delite Day Care, Inc. Ultimate responsibility for pol¬icy decisions necessary to the management of corporate affairs rests with Delite's
a. board of directors.
A11. Rhea is a director of Spex Corporation, which makes and sells sunglasses and other eyewear. As a Spex director, Rhea sits on the board, which
a. governs Spex.
A12. Reba is a director of Quantum Mechanix Corporation. Reba's rights, as a di-rector, do not include a right to
d. self-dealing.
A13. VeriVisual Company makes HD 3D film and video equipment. VeriVisual is like most cor¬porations in that its officers are hired by the firm's
a. board of directors.
A14. Odell is a director of Price Rite, Inc. As a director, with respect to the corporation, Odell is
a. a fiduciary.
A15. Gladys is a shareholder of Frozen Yogurt, Inc. As a shareholder, Gladys must approve
a. amending the bylaws.
A16. Heidi and Ian are directors and shareholders of Globe Software, Inc. Heidi's written authorization to Ian to vote Heidi's shares at a Globe shareholders' meeting is
c. a proxy.
A17. Fiona owns one share of stock in GR8 Boards Corporation, as evidenced by a stock certificate. Fiona loses the certificate. Her ownership of the stock is
d. not affected.
A18. Bev is a shareholder of All-Terrain Vehicle Company. As a share¬holder, Bev does not have
a. a right to compensation.
A19. Clark is a shareholder of Bedrest Mattress Company. Clark will be deemed to have a fiduci¬ary duty to Bedrest and its minority share¬holders if he has
c. a sufficient number of shares to exercise de facto control.
A20. Ruben is a shareholder of Speed Bikes Company (SBC). When the direc¬tors fail to undertake an action to redress a wrong suffered by SBC, Ruben files a suit on the firm's behalf. Any damages recovered by Ruben's suit will normally go to
b. SBC.
A1. Myron is an employee of Nero. Either party can terminate the employ¬ment relationship at any time for any reason without liability. With re¬spect to the employment-at-will doctrine, this is
a. an example of the doctrine.
A2. Nita works as an employee for Optimal Sales Corporation. To protect Nita and other employees from arbitrary discharge, courts have created excep-tions to the employment-at-will doctrine based on
b. a public policy theory.
A3. Richard is an employee of Stealth Security Company. Stealth discharges Richard for refusing to infiltrate a competitor's organization to learn its trade secrets. With respect to the employment-at-will doctrine, this is
c. an exception based on public policy.
A4. Lena offers Miguel a job, representing falsely that it will be long term. In reliance, Miguel takes the job but is laid off shortly thereafter and suc-cessfully sues Lena for fraud. With respect to the employment-at-will doctrine, this is
d. an exception based on tort theory.
A5. Uri is an employee of Verity Security Services. For Uri to obtain the benefits of federal wage-hour requirements, Verity must be engaged in
d.interstate commerce.
A6. Emma, Frick, Glenda, and Huey are employees of different-sized employ¬ers in different industries. Under the Fair Labor Standards Act, a mini¬mum wage must be paid to employees in
b. covered industries only.
A7. Rich works as a forklift operator for Storage Warehouse Company. Assuming that Rich meets other requirements, the maximum number of hours that he can work per week without over¬time pay is
b. forty.
A8. Jenna is fifteen years old. Under the Fair Labor Standards Act, Jenna cannot work
b. in a hazardous occupation.
A9. Delicious Fruit-of-the-Month Company currently employs five hundred full-time workers and two hundred part-time seasonal workers. Because business has declined, Delicious plans to close a plant that employs more than fifty full-time workers. Advance notice of the layoff must be sent to
a. affected workers or their union representative.
A10. Miley takes temporary medical leave from her job at Lumber Mill Inc. to care for a parent with a serious health condition. When she attempts to return to work, Lumber Mill refuses to reinstate her. Under the Family and Medical Leave Act, Miley may obtain
c. double damages, job reinstatement, a promotion, and more.
A11. Chuck works for Deepwater Drilling Corporation. While operating a Deepwater drill, Chuck suffers an injury. Under state workers' compen¬sation laws, Chuck will be compensated only if
c. his injury was accidental.
A12. Lucretia retires from her job as a project manager for Medico Pharma, Inc. Federal law provides for
a. timely and uninterrupted payment of private pension benefits.
A13. Alex is an employee of Bigg Corporation. To help pay for employees' loss of income on retirement, contributions are required by law to be paid by
a. Alex and Bigg.
A14. Ewa is a current employee of Financial Accounting, Inc. Gomer, a former Financial employee who is currently unemployed, collects unemploy¬ment compensa¬tion. This is provided by a tax on
c. Financial only.
A15. Machine Operations, Inc. (MO), employs four hundred workers at three locations in three states. Workers who do not have a right to continue group health benefits provided by MO for a limited time after the loss of their jobs include those who
a. are fired for gross misconduct.
A16. Interstate Distribution, Inc. (IDI), provides its employees with an e-mail system. IDI notifies them that it will monitor their communications over the system. Some employees file a suit against IDI, claiming a violation of privacy. The court is most likely to hold that, with respect to commu¬nications over the e-mail system,
a. the employees did not have a reasonable expectation of privacy.
A17. First National Bank may subject its employees to lie-detector tests when investigating
b. losses attributable to theft.
A19. Lee works as an employee for Maximum Industries, Inc., a private em¬ployer. Maximum announces that it will start random drug testing of its employees. If Lee resists this policy, he may look for protection under
b. a state constitution or statute.
A20. Home Healthcare Services wants to its employees and applicants to undergo genetic testing. Home may
c. test its employees for a genetic predisposition to disease.
B1. Thalia is an employee of Universal Insurance Company. Universal's em-ployee manual states that workers will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is
b. an exception based on contract theory.
B2. Fresh Food Packaging Company employs workers, including Gregor, at six locations in two states. Fresh Food's discharge of Gregor outside the terms of an employment contract may result in
a. Fresh Food's liability for damages.
B3. Lena offers Miguel a job, representing falsely that it will be long term. In reliance, Miguel takes the job but is laid off shortly thereafter and suc-cessfully sues Lena for fraud. With respect to the employment-at-will doctrine, this is
d. an exception based on tort theory.
B4. Frida is an employee of Green Recycled Products Company. A state stat¬ute protects Frida from Green's retaliation if Frida reports to state offi¬cials, or others, that Green is involved in unsafe or illegal activity. With respect to the employment-at-will doctrine, this is
c. an exception based on public policy.
B5. Bunky is seventeen years old. Under the Fair Labor Standards Act, Bunky cannot work
b. in a hazardous occupation.
B6. Cash is an employee of Drowsy Resort, Inc., covered by federal overtime provisions, which apply only after an employee has worked more than
b. forty hours in a week.
B7. Ilsa works as a clerk for Java Café at minimum wage. The federal mini¬mum-wage rate is revised
c. periodically by Congress.
B8. Backwater Heavy Equipment Corporation currently employs three hun¬dred full-time workers. Because business has declined, Backwater plans to lay off one hundred workers. If Backwater does not send advance no¬tice of the layoff to the appropriate parties, the employer may be subject to
b. a cease-and-desist order or other injunction but no economic liability.
B9. Cupcake Creations, Inc., employs one hundred workers at three loca¬tions in two states. Under federal law, Cupcake must pro¬vide its employees, during any twelve-month period, family or medi¬cal leave of up to
b. twelve weeks.
B10. Hauser takes temporary family leave from his job at Gelato Confectionary Corporation to care for a new baby. On Hauser's return from the leave, Gelato must
a. restore Hauser to his original position.
B11. Eduardo is an employee of Free-Flo Plumbing Corporation. With respect to the workplace, under federal health and safety statutes, Free-Flo has
a. a general duty to keep it safe and to meet specific standards.
B12. Hoppy, who works as an employee for Imperial Power Corporation, suf¬fers an injury in an accident. Hoppy will be compen¬sated under state work¬ers' compensation laws
c. only if the injury occurred on the job.
B13. Cy, an employee of Dockyard Shipping Corporation, is in¬jured on the job and accepts workers' compensation. Cy can success¬fully sue
a.
a. only if the injury was caused by Dockyard intentionally
B14. Jay works as an employee for Kitchen Appliances, Inc. (KAI), which is subject to the Occupational Safety and Health Act. Jay is killed in a work-related accident. To avoid a fine, KAI must notify
d. the U.S. Department of Labor.
B15. Leah is an employee of Mega Corporation. To help pay for Leah's medical costs on retirement, contributions are required by law to be paid by
a. Leah and Mega.
B16. Pam is an administrative employee of Quality Assurance Company. Contributions to help pay for Social Security benefits that will partially make up for Pam's loss of income on re¬tirement are required to be made by
b. Pam and Quality Assurance.
B17. Luke is a maintenance employee for Natural Products Company. Under the Employee Retirement Income Security Act, Luke's contributions to his pension plan vest
d. immediately.
B18. Community Recycling, Inc., plans to lay off fifty of its five hundred work¬ers, including Bev. Bev has a right to continued health-care coverage under Community's group plan unless
b Community completely cancels its plan.
B19. Chemco Sales, Corporation wants to monitor its employees' electronic com-munications. To avoid liability under laws related to employee moni¬tor¬ing, Chemco should notify
b. the employees.
B20. Petro Oil Company wants to conduct genetic testing of its workers to identify those who might develop significant health problems in the fu¬ture. Under federal law, Petro may use genetic information to
d. none of the choices.
A1. Origami Paper Products Corporation meets all of the requirements to be subject to the federal employment discrimination laws. These laws re¬strict the ability of employers to discriminate against workers on the basis of
b. gender.
A2. Nina is a Jew and Odell is a college student. Based on this information, members of protected classes include
c. Nina only.
A3. Dakota believes that Credit Services Corporation (CSC) has dis¬crimi¬nated against her on the basis of gender. She files a suit against CSC under the Civil Rights Act of 1964. To es¬tablish a prima facie case of em¬ployment discrimi¬nation, Dakota must show that
a. she is a member of a protected class.
A4. Olivia applies for a job with Petro Company. Petro does not hire Olivia because of her ethnicity, or national origin. This is
c. disparate-treatment discrimination.
Erasmus applies for a job at Drain-Pro Plumbing & Repair LLC for which he is well quali¬fied. He passes a test to determine which applicants are eligible for hiring, but the employer discards the results, and Erasmus is rejected. Drain-Pro continues to seek applicants. (Fact Pattern 22-1A)
...
A5. Refer to Fact Pattern 22-1A. Erasmus files a suit against Drain-Pro un¬der the Civil Rights Act of 1964, claiming reverse discrimination. To support this claim, Erasmus must show that he is a member of
b. a majority group.
A6. Refer to Fact Pattern 22-1A. To successfully defend itself against Erasmus's suit, Drain-Pro must articulate
a. a legitimate, nondiscriminatory reason for its action.
A7. Conrad and Delilah are employees of AgriBio Feed & Seed Corporation. Under the Equal Pay Act of 1963, AgriBio can legitimately pay different wages on the basis of
a. seniority.
A8. Greta is the only female employee in the maintenance department of Hydro Hydraulics Inc. Greta's supervisor and co-workers tease and play tricks on her so relentlessly that she feels compelled to quit. This is
a. a constructive discharge on the basis of gender discrimination.
A9. Ruth is a supervisor for Subs & Suds, a restaurant. Tim is a Subs em¬ployee. The owner announces that some em¬ployees will be discharged. Ruth tells Tim that if he has sex with her, he can keep his job. This is
c. quid pro quo harassment.
A10. Fix-It Repair Shop does not take any action to prevent sexual harass¬ment of its employees. Fix-It Repair may be liable for such harassment by
b. a customer or a co-worker.
A11. Cora, a female, and Dom, a male, are employees of Equipment Leasing Corporation. Cora regularly e-mails sexually explicit images to Dom via Equipment Leasing's computer network. Dom finds this offensive. This is
a. hostile-environment harassment.
A12. Mona files an employment discrimination suit against Nationwide Distribution Corporation (NDC) under the Civil Rights Act of 1964. If Mona shows that NDC acted with malice or reckless indifference, she may recover
b. a limited amount of compensatory and punitive damages.
A13. Pikabo files an employment discrimination suit against Quantitative Analysis, Inc., under the Civil Rights Act of 1964, based on its discharge of Pikabo. Possible relief includes
b. reinstatement.
A14. United Company replaces Vera, a forty-five-year-old employee, with Wendy. Vera files a suit against United under the Age Discrimination in Employment Act of 1967. To establish a prima facie case, Vera must show, among other things, that she is
d. qualified for the position.
A15. Eton files a suit in a federal district court against Florida, alleging em-ployment discrimina¬tion under the Age Discrimination in Employment Act of 1967. The state asks the court to dismiss the suit. The court is most likely to rule that
a. the state is immune from the suit.
A16. Paolo has cerebral palsy, Quincy has kleptomania, and both work for Reality Insurance Company. Considered disabled under the Americans with Disabilities Act
b. is Paolo only.
Beth, who has a disability, is an employee of Corporate Office Company (COC). After the installation of new doors on COC's building, Beth finds it nearly im-possible to get in and out. For repeatedly failing to be on time, COC replaces Beth with Dian, who does not have a disability. (Fact Pattern A17-A18)
...
A17. Refer to Fact Pattern 22-2A. To succeed with a claim against COC under the Americans with Disabilities Act, Beth will have to show that
b. COC refused to make reasonable accommodation for Beth.
A18. Refer to Fact Pattern 22-2A. To successfully defend against Beth's claim, COC will have to show that
b. COC cannot make changes to the doors without undue hardship.
A19. Vincenzo is a pilot for Wayfarer Airlines. Wayfarer's policy is to restrict Vincenzo and its other pilots from flight responsibilities after a certain age. This is most likely
a. a legitimate bona fide occupational qualification.
A20. Jason and Katrina work on the loading dock for Longhaul Transport Company. Jason has a disability. Katrina has seniority. Jason asks for a transfer, which would represent an accommodation for his disability. Longhaul gives the transfer to Katrina on the basis of her seniority. Jason files a suit against Longhaul for discrimination on the basis of his disability. The court is most likely to rule that
a. Katrina's seniority is a good defense.
B1. Hu believes that he is a victim of a form of employment discrimination that falls under the Civil Rights Act of 1964. Compliance with this stat¬ute is monitored by
d. the Equal Employment Opportunities Commission.
B2. Lew, a member of a protected class, applies for a job with Mit-E Construction Company, but fails Mit-E's employment test and is not hired. Lew believes that the test has an unintentionally discriminatory effect. If so, this is
b. disparate-impact discrimination.
B3. Riki files a suit against Stevedore Shipping Corporation under the Civil Rights Act of 1964, alleging employment discrimination on the basis of gender on a disparate-impact theory. To succeed, Riki must show that Stevedore hires fewer women than the per¬centage of
a. qualified women in the local labor market.
B4. Truman applies for a job at Skylight Canopy Corporation for which he is well quali¬fied, but for which he is rejected. Skylight continues to seek applicants and eventually fills the posi¬tion with a person who is not a member of a mi¬nority. Truman is most likely to succeed in a suit against Skylight for discrimination if he is a member of
a. a protected class.
B5. United Industrial Corporation gives preferential treatment in hiring and promotion to the members of all protected classes. This treatment results in discrimination against members of the majority. This is
d. reverse discrimination.
B6. Research Statistics Corporation uses a merit system to pay its employees according to their job performance. Suki, a female, and Troy, a male, are Research employees with comparable jobs. Due to superior performance, Suki is paid more than Troy. This is
c. not discrimination.
B7. Rona is Stu's administrative assistant and both work for TriCounty Labor Inc. Stu tells Rona that for sexual favors, he will give her an excel¬lent performance review and recommend a raise. This is
d. quid pro quo harassment.
B8. Marie, an employee of Nickel Tool Company, files a sexual-harassment suit against Owen, her supervisor. Marie wins. Nickel may also be liable if it had effective harassment policies and complaint procedures, and
b. Marie followed them.
Kit, manager of Long-Term Care Company's office in Metro City, de¬cides to re¬place the office's male employees with females. Nia, an assis¬tant manager transferred from a different Long-Term Care office, refuses to cooperate. Kit re¬tali¬ates against Nia, who quits. Within a year, the male employees also quit. (Fact Pattern 22-1B)
...
B9. Refer to Fact Pattern 22-1B. Kit's action against Nia is most likely
b. discrimination on the basis of gender.
B10. Refer to Fact Pattern 22-1B. Liability for Kit's conduct most likely rests with
b. Long-Term Care, which should have known, and Kit, who acted.
B11. Mold & Dye Corporation is a private employer in¬volved in an employ¬ment discrimination suit under the Civil Rights Act of 1964. Punitive damages may be recovered against Mold & Dye only if the employer
a. acted with malice or reckless indifference.
B12. Svetlana, a fifty-five-year-old member of a racial minority with a disabil¬ity, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on
a. age.
Ida replaces Hector in his job at Grocers Market Corporation (GMC). (Fact Pattern 22-2B)
...
B13. Refer to Fact Pattern 22-2B. Hector believes that he has been discrimi¬nated against on the basis of his age. For the Age Dis¬crimination in Employment Act of 1967 to apply
c. Hector must be forty years of age or older.
B14. Refer to Fact Pattern 22-2B. To succeed with an age-discrimination claim against GMC, Hector will have to show that
b. Hector is qualified for his job.
B15. Paula, a disabled person, applies for a job at Quantity Corporation for which she is well quali¬fied, but for which she is rejected. Quantity con¬tinues to seek applicants and eventually fills the posi¬tion with a person who is not disabled. Paula is most likely to succeed in a suit against Quantity for discrimination under the Americans with Disabilities Act of 1990 if she can show that
a. she was not hired solely because of her disabil¬ity.
B16. Dan has AIDS, Eve is blind, and both work for First National Bank. Con-sidered disabled under the Americans with Disabilities Act
a. are Dan and Eve.
B17. Flynn is a drug addict who has completed a supervised drug-rehabilitation program. Gert used drugs casually in the past. Both work for Home Credit Company. Considered to have a disability under the Americans with Disabilities Act of 1990
b. is Flynn only.
B18. Dick works for First City Bank. When his spouse Elin is diagnosed with Lou Gehrig's disease, Dick asks to take temporary leave to care for her. First City discharges him. He files a suit against the bank under the Americans with Disabilities Act of 1990. Most likely, Dick can
d. not recover.
B19. Paolo has cerebral palsy, Quincy has kleptomania, and both work for Reality Insurance Company. Considered disabled under the Americans with Disabilities Act
b. is Paolo only.
B20. Marvel Machine Corporation requires its employees to have a high school diploma, claiming a definite connection between a high school edu¬ca¬tion and job performance. In a suit against Marvel under the Civil Rights Act of 1964, this requirement is shown to have a discriminatory effect. Marvel has
c. a business necessity defense.
A1. Nan, Oto, and Pablo immigrated to the United States from Sierra Leone, Turkey, and Uruguay. The most important laws regulating immigration are
a. federal statutes.
A2. David's family came to the United States from Ukraine in 1895. Eva's family came to this country from Venezuela in 1995. Fiona's family came from Mexico in 2005. Current immigration laws are based on
c. a system of sanctions against employers who hire illegal immigrants.
A3. Southwestern Foods Corporation operates a packaging plant near the border between the United States and Mexico. Due to the location, it would be easier for Southwestern to employ noncitizens. It is legal for a U.S. employer to
d. none of the choices.
A4. Hu, Ivan, and Juana apply to work for King Meatpacking Company. These individuals' identities and eligibility to work must be verified by
a. the employer.
A5. Sol believes that he has suffered as a result of Tom Turkey Processing, Inc.'s hiring of illegal immigrants. Sol has a direct cause of action against Tom Turkey under
a. no current law.
A6. Seafood Canning Corporation keeps a file of I-9 verifications forms. To inspect this file, the appropriate government officer must obtain
c. not a subpoena, a warrant, or the employer's consent.
A7. Detailed Designs Company, an architectural firm, wants to hire Eduardo, a noncitizen. A temporary work visa is most likely to be set aside for a noncitizen who is
b. a "person of extraordinary ability."
A8. Fedro is an employee of Earth & Sea Mining Company. Under federal law, Fedro and other employees have the right to
a. bargain collectively with Earth & Sea through their representative.
A9. Assembly Workers Union believes that Beveled Products Corporation has violated a federal labor law. The appropriate step is for the union to
b. file an unfair labor practice complaint with the National Labor Relations Board.
A10. Bonny works for ChemCoat Corporation. ChemCoat refuses to pay Bonny and its other employees for time spent exclusively on union ac¬tivities. This violates
d. no federal labor law.
A11. During a union election campaign at Western Hydraulics Company, the union can cam¬paign on Western's property in
d. non-work areas during non-work time.
A12. During a union election campaign, Autowerks Repair, Inc., prohibits on-site, work-hour solicitations by any party, including Mechanics Union, which is seeking the workers' unionization. This violates
d. no federal law.
A13. During a union election campaign at Skyscraper Construction Corporation, the employer threatens the employees with a layoff. This is an unfair labor practice
c. under all circumstances.
A14. During a union election campaign at Builders & Pavers Corporation, the employer asks the employees to publicly state their personal views on unionization. This is an unfair labor practice
c. under all circumstances.
A15. Machine Operators Union is engaged in collective bargaining with Natural Coffee Roasters, Inc. (NCR). The employer must bargain over
d. the price of food in NCR's employees' cafeteria.
A16. Hotel Employees Union is engaged in collective bargaining with International Lodging, Inc. The employer would show bad faith by
b. constantly shifting positions on disputed contract terms.
A17. Ted, a worker who is dissatisfied with slow negotiations between his union, United Factory Workers (UFW), and his employer, Variety Manufacturing, Inc., convinces 10 percent of the UFW employees to call their own strike. This is
b. an illegal strike.
A18. Detroit Auto Company (DAC) agrees with its employees' union not to buy any nonunion-produced component parts from other firms for use in DAC products. This is
b. prohibited secondary boycott.
A19. Boz, a clerk for a Cheezy Burger, Inc., restaurant goes out on strike with the other employees. After the strike, Boz must be given his job back if there is still work at the restaurant and the strike was
a. a lawful economic strike.
A20. Clerical Workers Union demands that Miracle Medical Research Company hire unnecessary workers. This most likely violates
a. federal labor law.
B1. Garth's family came to the United States from Scotland in 1640. Hermann's family came to this country from Germany in 1800. Ivy's family came from Ireland in 1870. The United States did not have any laws restricting immigration until
b. the late nineteenth century.
B2. Fruits & Vegetables, Inc., employs hundreds of seasonal and permanent workers, both skilled and unskilled, in seven states. Fruits & Vegetables can hire illegal immigrants
d. under no circumstances.
B3. Precision Auto Parts, Inc., operates a machining plant near the border between the United States and Canada. Due to the location, it would be easy for Precision to employ noncitizens. It is legal for a U.S. employer to
d. none of the choices.
B4. Mineral Mining Corporation is a U.S. employer. Mineral, and other U.S. employers, must perform I-9 verifications for new hires who work under the employer's direct supervision
d. including contractors and day workers.
B5. Socrates Software Corporation wants to hire Tomas, a noncitizen of "ex-traordinary ability." To hire Tomas, Socrates must petition
a. U.S. Citizenship and Immigration Services.
B6. General Assembly Corporation, a U.S. employer, may hire Hilo, a non¬citizen, if Hilo is
a. a lawful permanent resident of the United States.
B7. Doctors Hospital Corporation employs seven thousand workers in seven locations. These employees have the right to
c. organize.
B8. During a dispute with Musicale Productions Inc., National Stagehands Union asks the National Labor Relations Board (NLRB) for a ruling. The NLRB rules against Musicale. The employer may appeal the decision to
b. the appropriate U.S. court of appeals.
B9. Hiway Trucking Company believes that International Truckers Union (ITU) has violated a federal labor law. The appropriate step is for Hiway to
a. file an unfair labor practice complaint with the National Labor Relations Board.
B10. Employees at Resource Industries, Inc., want to form into a single union. To constitute an appropriate bargaining unit, a group of workers must have
b. at least one member of management willing to join the union.
B11. During a union election campaign, Sapphire Blue Finance Company prohibits on-site, work-hour solicitations by Credit Workers Union, which is seeking the workers' unionization, while permitting charities to solicit the same workers on-site and during work hours. This violates
a. federal labor law.
B12. During a union election campaign at Retro Industry, Inc., the em¬ployer can
d. do none of the choices.
B13. Communication Workers Union is certified as the bargaining represen¬tative for workers at Gulf Wi-Fi Company. Terms that result from bar¬gaining with Gulf apply to
a. all workers in the bargaining unit.
B14. Finance Professionals Union represents the workers of Business & Commerce Banking Corporation. The management of the firm refuses to bargain with the union over the economic consequences to the employees of management's decision to shut down some facilities. This most likely violates
a. federal labor law.
B15. Delite Dairy Products Company operates four plants. One plant is union¬ized. Delite can close this plant if
d. the plant's equipment is outmoded.
B16. After extensive collective bargaining, Rubber Workers Union and Super-Valu Tire Company cannot agree on terms. The union may
a. call a strike.
B17. Musicians & Performers Union represents the employees of Poignant Legerdemain, Inc. During negotiations over conditions of employment, each side rejects the other's proposal without offering a counterproposal. This indicates
a. bad faith.
B18. After extensive collective bargaining, Union of Warehouse Workers (UWW) and Volatile Products Company cannot agree on terms. Volatile may
c. lock out the UWW employees.
B19. Pip, a clerk for a Quik Burger, Inc., restaurant goes out on strike with the other employees. After the strike, Pip must be given his job back if there is still work at the restaurant, and the strike was
a. a lawful, unfair labor practice strike.
B20. Oil Workers Union (OWU) represents the employees of Petro Refinery, Inc. (PRI). The union commits an unlawful labor practice if it
a. demands that PRI hire only OWU-affiliated workers.
A1. Kailin owns a farm near Manhattan, Kansas, with a farmhouse, barn, and other structures permanently attached. Kailin grows soybeans on the property. A pond lies within the boundaries. Land includes
a. the pond, the soil, and the structures.
A2. Luke owns a farm near Marshalltown, Iowa, with stands of trees serving as windbreaks. Luke grows corn on the property. When Luke sells the farm to Nina, if the contract does not specify otherwise, the sale includes
b. the crops and the trees.
Nikita owns land in Ohio. Her ownership rights include the right to sell or give away the property without restriction, and the right to commit waste, if she chooses. (Fact Pattern 26-1A)
...
A3. Refer to Fact Pattern 26-1A. Nikita's ownership interest is
a. a fee simple absolute.
A4. Refer to Fact Pattern 26-1A. Nikita conveys some of her land to Reggie with the right to possess and use the property for a certain period of time. Nikita has given Reggie
b. a leasehold estate.
A5. Klondike and Leola own 10,000 shares of stock in My-T Gro Corporation. On the death of ether owner, that owner's interest in the stock passes to the surviving owner. This is
a. a joint tenancy.
A6. Buster conveys one square block in Center City "to Diana for life, then to Center City." For Diana, this creates
c. a life estate.
A7. Quito and Raul own a condo near San Francisco Bay as joint tenants. Raul sells his ownership rights in the condo to Timor. Quito and Timor own the condo as
d. tenants in common.
A8. LaDonna signs a one-year lease with Mae to occupy an apartment in Ames, Iowa, near the University of Iowa. LaDonna needs the apartment only for two semesters and may have to sublet it for the rest of the term. LaDonna's tenancy is
d. a fixed-term tenancy.
A9. Glen, the owner of Harvest Farm, and Ima, the tenant of the farmhouse on the property, may create a fixed-term tenancy by
b. express contract.
A10. Uberto and Vicki are married and own a mountain cabin in Wyoming in such a way that neither may transfer separately his or her interest during his or her lifetime. Uberto and Vicki own the lodge as
c. tenants by the entirety.
A11. Cow Country Corporation (CCC) sells half of its land to the Double R Ranch. On the land is a reservoir. In the deed, CCC retains the right to remove a lim¬ited amount of water per day from the res¬ervoir. This right is
d. a profit.
A12. Mix-It Concrete Company has the right to enter Nim's land and remove the rock from Nim's quarry. This is
d. a profit.
A13. Region Construction Company has a right to drive its trucks across Stable Business, Inc.'s property, which is adjacent to Region's office. This right is
c. an easement.
A14. Tyro has the right to drive across Ula's land, which is next to Tyro's prop-erty, to reach an access road. Tyro's right is
a. an easement appurtenant.
A15. Elsa, the owner of Fertile Farm, sells Gina a right to camp on Fertile land overnight. Gina's right is
b. a license.
A16. Moby leases from National Theater Corporation a theater in which to stage a series of concerts. Ollie buys a ticket to the series. What distin¬guishes Moby, a tenant, from Ollie, a licensee, is
a. the exclusivity of possession.
A17. Mello Farms, Inc., wants to add a covenant to run with the land to its conveyance of some of its property to New Commodities, Inc. To be en-forceable, this covenant must
b. include a burden that has a connection to the property.
A18. Quik Development Corporation wants to convert farmland on the out¬skirts of River City into residential and commercial property. The state restricts the conversion of farmland by subjecting development plans to the approval of State Development Agency. This is an exercise of the state's
a. police power.
A19. County Zoning Commission classifies Dale's vacant land as single-family residential. This is not in accord with the general plan, which des¬ignates the area commercial. Surrounding parcels are zoned com¬mer¬cial. Under the equal protection of the Fourteenth Amendment, this is
d. discriminatory.
A20. Metro City Zoning Board limits the number of residential building permits in an area otherwise zoned for the use, precluding Nan, whose proposed structure complies with all other requirements, from constructing a residence on her property within the area. This is
a. a growth-management ordinance.
B1. Lucky owns Mud Flats Ranch, which is situated on certain Nevada acreage. The exterior boundaries of the land extend
d to the center of the earth and up to the farthest reaches of the atmosphere.
B2. Orin owns Pilot's Landing Office Park. His ownership rights include the right to sell or give away the property without restriction, as well as the right to com¬mit waste, if she chooses. Orin's ownership interest is
a. a fee simple absolute.
B3. Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, in¬cluding extracting silver from an existing mine, for life. Patsy also has the right to lease the land for a period not to exceed her life. This ownership interest is
c. a life estate.
B4. Edna and Flavia buy a boat that they dock in a marina near Gulfport, Mississippi. On the death of either owner, that owner's interest in the boat passes to her heirs. This is
c. a tenancy in common.
B5. Ian and Jackie take title to a drive-through Koffee Kiosk in such a way that if one dies, the other will be the sole owner. Ian and Jackie own the kiosk as
b. joint tenants.
B6. Jody and Kent each own one-half of Local Motion, a club, as a tenant in common. Kent sells his interest to Meri, who now owns
d. the firm with Jody as tenants in common.
B7. Jamal signs a lease with Kelvin to occupy a house on Leech Lake in Minnesota for the summer. Jamal's tenancy is
a. a fixed-term tenancy.
B8. Cornucopia Farms LLC possesses farmland. Cornucopia has the right to use the property, including harvesting the crops, for ten years. Cornucopia does not have the right to extract the coal under the land. This is
b. a leasehold estate.
B9. Utility Power Company has the right to run its power lines across Velma's land. This is
b. an easement.
B10. With respect to Egor's land, Fig has an easement, Gabe has a profit, and Huck has a license. A right to possess the land is owned by
a. Egor.
B11. Rolling Stock Company has used a strip of Storage Warehouse Corporation's land, which adjoins its property, as a right-of-way for years. The use has been apparent, without Storage's per¬mission, for a period time equal to the applicable statute of limitations. Rolling's use has created
a. an easement.
B12. Mineral Products Corporation, which owns no land, has a right to mine the copper from Natural Resource Company's land. Mineral's right is
d. a profit.
B13. Opal conveys three acres of wetlands to Pristine Places, Inc., with a deed that warrants only that Opal held good title during her ownership of the property. This deed is
c. a special warranty deed.
B14. To acquire the ownership of a vacant lot by ad¬verse possession, Durwood must occupy the lot exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
B15. To acquire the ownership of a mountain cabin by ad¬verse possession, Cody must occupy the cabin exclusively, continuously, and peaceably for a specified period of time
a. in an, open, hostile, and adverse manner.
B16. Sunny City wants to acquire undeveloped land within the city limits to con-vert into a public park. Sunny City brings a judicial proceeding to obtain ti-tle to the land. This is an exercise of
a. eminent domain.
B17. To widen a highway, the state of Ohio obtains, through a judicial pro¬ceed¬ing, title to the individual lots in a residential neighborhood. A sub¬se¬quent proceeding will determine
a. how much the former owners should be paid for their property.
B18. Birch Woods Development, Inc., includes, on the map of a twenty-lot devel¬op-ment, a restriction that limits construction on each lot to one single-family house. Birch files the map in the appropriate public office. In each lot's deed is a reference to the map and a provision that each buyer "and his or her successors, heirs, or assigns" are bound to it. Cub buys one of the lots and later sells it to Dag. With respect to the restriction, Dag is
a. bound.
B19. County Zoning Commission demands that Double Qwik Development, Inc., the private developer of Eden Park Homes, allocate space for a school within the development. This is
b. a subdivision regulation.
B20. Homes Construction Corporation wants to obtain a zoning variance for a part of its property. The variance must not
d. substantially alter the essential character of the property.