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LEB final mc questions

Terms in this set (116)

In 1890, Congress passed the Sherman Antitrust Act. In 2008 Congress passed the Genetics Information Nondiscrimination Act. Which of these is/are a statute?

A The Sherman Antitrust Act
B The Genetic Information Nondiscrimination Act
C Both A and B
D None of the Above
C (Both A and B The sherman antitrust act and the genetic information nondiscrimination act) Written laws passed by legislative bodies like congress are statutes
Paul plaintiff sues donna defendant inn a tort case. He accuses her of running a stop sign and hitting his car and seeks damages to compensate him for his losses. Pauls case will be a ____________ lawsuit. In the case, pauls burden of proof will be to prove his case __________________

A Civil; by preponderance of evidence
B Civil; beyond reasonable doubt
C criminal; by preponderance of evidence
D criminal; beyond a reasonable doubt
A (civil; by preponderance of evidence) - Private cases between private people or companies are civil lawsuits. In such cases, plaintiffs must present enough evidence to prove their claims true by a preponderance of evidence.
Ron loses his discrimination claim in federal district court. If he wishes he can appeal his case to a ________ court. If he loses there, he can seek to have his case reviewed by _____________

A A general trial court; his state's supreme court
B A General trial court; the US supreme court
C A US court of Appeals; his states supreme court
D A US court of Appeals; the US supreme court
D (A US court of appeals; the US supreme court) Appeals from a federal district court would proceed to a federal appellate court, and eventually perhaps to the US supreme court, although supreme court grants only a relatively small percentage of requests for Writs of Certiorari
Consider Abner v Doubleday a case that will be heard by a US court of appeals. Which of the following can you say is definitely true

A Abner was the plaintiff in the original lawsuit brought to district court
B Abner is bringing the appeal to the US court of Appeals
C Abner was the defendant in the original lawsuit brought to district court
D Both A and B are definitely true
E None of the above are definitely true
B (Abner is bringing the appeal to the US court of appeal) Abner might have been either the plaintiff or defendant originally. But since abner is listed first for the appellate case, Abner is definitely the side bringing the appeal
Adam sues brenda and claims that brenda's dog bit his leg. Brenda receives a copy of adams complaint, and in her answer, she alleges that her dog bit adam when he was trespassing in her yard late at night, that he destroyed her fence when he ran away from the dog, and that he should pay $500 to compensate her for the fence repairs. Characterize the components of brendas answer

A It contains a denial
B It contains a defense
C It contains a counterclaim
D A and C
E B and C
E (B and C It contains a defense and it contains a counterclaim) She does not denny that adam's claim of a dog bite is true. She asserts instead that there exists a legal justification for the bite. So, she raises a defense and does not make a denial and by asking for money to repair the fence, she raises a counter claim
Sam sues AlphaCo, his former employer. In his case he alleges that alphaco illegally discriminated against him. During discovery, sams lawyer asks alphaco for its employment records over the last 10 years. The lawyer also wants to talk to sams former supervisor under oath and ask him about sams termination.
The demand for employment records is a ________________. The lawyer would like to talk to the former supervisor as part of a ____________________.

A Interrogatory; interrogatory
B Interrogatory; deposition
C Request for production of documents; interrogatory
D Request for production of documents; deposition
D (Request for production of documents; deposition) The demand for business records is a request for production of documents. The questioning of the supervisor will be a deposition because the lawyer will be talking to him in person, and ont by submitting a written request for information, which would be interrogatory
Max sues the Houston police department after he is arrested during a protest. He claims his free speech rights under the US constitution have been violated. Jack sues MegaCorp over crop losses after megacorp dumps toxic chemicals into a river that eventually runs across his farm. He sues based on the federal clean water act and also under Texas Tort Law. Which of the two plaintiffs could bring their case to federal court.

A Max
B Jack
C Both A and B
D none of the above
C (both A and B Max and Jack) Max's case is based on the federal constitution, so its in. and although jacks lawsuit is based on both state and federal law, since one of his claims raises a federal question a federal court would also have subject matter jurisdiction over his case.
Max, a resident of texas, sues the houston police department after he is arrested during a protest. He claims his free speech rights under the US constitution have been violated. He seeks 50,000. Can he bring his claim to federal court

A Yes
B No
A (Yes) Don't be distracted by the above or below 75,000 issue. The number of dollars involved is relevant only in a diversity of citizenship situation. Max can sue no matter how much he is seeking because his case is based on federal law and jurisdiction is based on a federal question. Had max's suit been a claim based on state law, he could successfully file into federal court only if he and the defendant were citizens of different states and more than 75,000 was at stake.
Paul plaintiff a resident of texas files a lawsuit in texas against don defendant, a resident of california. Don receives notice of the lawsuit and tells his lawyer "I don't want to travel to texas to be sued by this guy" Lawyer says "maybe you don't have to. the lawyer argues that the court does not have personal jurisdiction andn that the case should not proceed. He does not say anything else about the case in the filing.
Don's lawyer has filed a ______________. This action _____________ give the texas court personal jurisdiction over don

A Appearance; does
B Appearance; does not
C Special Appearance; does
D Special appearance; does not
D ( Special appearance; does) Don's lawyer has limited his claim to a lack of jurisdiction and so it counts only as a special appearance and is not considered a "formal step to defend a lawsuit"
Paul plaintiff a resident of texas files a lawsuit in texas against don defendant, a resident of california. Don receives notice of the lawsuit and tells his lawyer "I don't want to travel to texas to be sued by this guy" Lawyer says "maybe you don't have to. the lawyer argues that the court does not have personal jurisdiction over Don.
Six months before don travelled to texas, signed a contract with paul while he was there, and returned to california. He has made no other trips to texas, and has had no other interactions with the state.
In pauls lawsuit, he alleges that don has breached the contract. Which of the following types of personal jurisdiction does the Texas court have over Don

A General personal jurisdiction
B Specific personal jurisdiction
C Both A and B
D None of the above
B (Specific Personal jurisdiction) Don engaged in a specific act (signing the contract) in the forum state (texas) and the lawsuit arises out of that specific act. Don has no long term presence in texas or regular texas activities so there is no general personal jurisdiction
Fred is a prospective juror in a case in which Al attorney will be asking for 10,000,000 in damages. During vior dire questioning, al gets the feeling that fred will be unlikely to award such a large sum. He does not have a good argument that fred will be biased or will fail to be impartial, but he would still like to keep him off the jury. To do so, al will probably have to use which kind of challenge.

A Challenge for cause
B Peremptory Challenge
C Neither would be effective for keeping fred off the jury
B (Peremptory challenge) Judges will grant challenges for cause only if a prospective juror seems likely to biased. But Peremptory challenges can be used for most reasons as log as they are not used in a discriminatory way
Jack loses a huge sum in a lawsuit with Pat plaintiff, and he does not pay Pat for a long time. Pat's lawyer goes back to court and seeks the court's help in collecting what is owed
The court issues a document that empowers a sheriff to seize Jack's car and sell it at auction to raise part of the money. The court issues a second document that order's jacks bank to deliver some of jack's deposits into the custody of the court. The first document is a writ of ___________ and the second document is a writ of ___________________________

A Execution; execution
B execution; garnishment
C Garnishment; execution
D Garnishment; Garnishment
B (Execution; garnishment) Writs of execution empower law enforcement officers as described, and writs of garnishment order third parties to turn over assets belonging to another to the court.
Zena signs an arbitration agreement on her first day at a new job in which she agrees that if she has any disputes with the company in the future she will not sue and will only pursue a remedy in arbitration
A year later Zena has a car accident with barry. Afterwards they sign an agreement that they will arbitrate the dispute
A month after that Zena does not get an expected promotion at work, and she thinks it is because her supervisor dislikes her personally and not because of the quality of her work
Now zena is upset at both her employer and barry and she would like to "have her day in court" with both of them. That is to say, she wants to sue both, and not go through with arbitration can she do so?

A she can sue her company only
B she can sue barry only
C she can sue both her company and barry
D No, she must arbitrate both disputes
D (She must arbitrate both disputes) Whether signed before or after an event that leads to a dispute, arbitration is generally binding
Tina has a dispute with her next-door neighbor. The neighbor's tree fell over onto her garage roof and caused significant damage. The neighbor has been slow to agree to pay for the damage. Tina says "I'd like to work this out quickly, and I hope that I can still be friends with my neighbor later - it would be awkward to live next door to someone who is angry with me" Based on tinas comments she should start with which of the following?

A a Trial
B An Arbitration
C A Mediation
C ( A mediation) A mediation will help her meet her desires for a faster resolution that is more likely to allow the parties to move past the dispute and coexist peacefully
Guy gets food poisoning at restaurant in Texas He is suing roger and trying to sue in florida, Rogger says "he can't do that, I don't know why he got sick but it wasn't our fault and he sure can't make us go to florida... or can he?
Can the former customer from Florida force Roger to defend the case in Florida?

A Probably so
B Probably Not
B (probably not) The plaintiff likely has selected a court that lacks personal jurisdiction over Roger.
"We don't operate in florida and we dont send any orders that way. Our website exists in florida I guess but we don't sell anything online"
"That's good I'll run it by lawyer dave when I get back just to be sure but sounds good. Let's sit on this lawsuit for now"
Is it okay for Roger to wait 3 weeks before acting, or would that create a specific problem that makes you believe he should call his lawyer now?

A Ok to wait
B Should call his lawyer
B (Should call his lawyer) If he does nothing, he risks a default judgment being entered against him
Florida case is dismissed, Plaintiff files again under Texas court a month later. The lawyer cannot make it go away this time, Roger says "I dont know why this guy thinks he can win. This isnt like a robbery or something where there's a guy on surveillance camera and a lawyer can show the jury that it's the same guy whos at the restaurant. He got really sick but he cant say for sure that our food made him sick. Maybe it did maybe it didn't, but he can't prove that right?

How good does that plaintiffs evidence need to be for him to have a chance to wi the case

A Excellent, airtight proof is required
B Reasonably good evidence gives the plaintiff a chance to win
B (reasonably good evidence gives the plaintiff a chance to win) The plaintiff will have to prove his case by a preponderance of evidence, proving a case beyond a reasonable doubt is only required in criminal cases.
What method of alternative dispute resolution might best accomplish Roger's wishes and lead to a binding conclusion to the case outside of a courtroom.

A Arbitration
B Mediation
A (Arbitration) Mediation is not a binding process. If a settlement is not reached, the plaintiff can still file a traditional lawsuit. Arbitration results are normally final and binding
When congress passes a statute, it exercises _______________ power. If someone challenges the law in court and argues that the new law violates a part of the Constitution, the courts will use their power of __________ to evaluate the law

A Executive; judicial review
B Executive; separation of powers
C legislative; judicial review
D legislative; separation of powers
C (Legislative; judicial review) The power to create new laws is legislative power, and the power to assess the constitutionality of the new laws is judicial review
Under the supreme court's modern interpretation of the Commerce Clause, the most important factor in determining whether a business' activities count as interstate commerce is whether.....

A any customers reside in states other than the business' home state
B any physical items (goods) cross from one state to another
C the activities have any appreciable effect on interstate commerce
D the transaction are substantial in number or involve a substantial sum of money
E None of the above
C (the activities have any appreciable effect on interstate commerce) Before the 1930's the court paid more attention to whether items crossed state lines or used interstate rivers or railroads. Today, the court is most concerned with whether the activities have an effect on interstate commerce. Most business activities do, and so most business activities can be regulated by the federal government
Carol and Debby bring separate lawsuits under their 14th Amendment right to Equal Protection. Carol challenges a law that she claims makes distinctions based on gender. Debby challenges a law that she says makes distinctions based on the income level of residents of her state. If the government wishes to keep the challenged laws in place, it will have to convince the court the law is necessary to further a(n) ______________ state interest in Carol's lawsuit and a(n) ______________ state interest in Debby's lawsuit.
A. rational; rational
B. rational; important
C. important; rational
D. important; important
E. compelling; important
C (important; rational) Most social and economic regulations are subjected to the rational basis test. Laws or government policies that make distinctions based o gender must be justified as furthering important government interests when challenged in court on 14th amendment grounds.
Carl challenges a statute under his 14th Amendment right to equal protection. He argues that the law makes distinctions based upon race, and that it must be struck down. The court will apply ______________ scrutiny to the claim. If it wishes to keep the law in place, the government will have to convince the court that it is necessary to further a(n) ______________ state interest.
A. strict; compelling
B. strict; important
C. intermediate; compelling
D. intermediate; important
A (strict; compelling) When a law makes distinctions based on race, courts will apply strict scrutiny. That standard requires that the states demonstrate a compelling interest if they wish to seek to have the challenged law remain in place.
Ann, Bob, and Carol are involved in a pro-life organization. Ann and Bob often carry signs in a picket line in a park near an abortion clinic. Ann's condemns abortions in a general way. Bob's claims that a doctor who works at the clinic across the street does not have a medical license, and the claim is untrue. Carol hands out pro-life leaflets to coworkers at a corporation where she works, but her boss asks her to stop. Which of the three have engaged in protected free speech?
A. Ann
B. Bob
C. Carol
D. Ann and Bob
E. Ann and Carol
A (ann) Ann has the right to voice her opinion. Bob, by engaging in defamation, is not protected. Carol is not protected in her situation because she is working at a private company, not for the government.
Alpha Company would like to give $10,000 to be used to fund ads that will seek to help elect Senator Smith. Alpha also runs many kinds of advertisements on TV and the internet, and hopes to be allowed to continue to do so without restriction. The ___________________ is/are protected as free speech.
A. political donation
B. advertisements
C. political donation and advertisements
C (political donation and advertisements) Political speech by corporations and truthful commercial speech by corporations each receive first amendment protection
Rex tries to make decisions in such a way as to benefit as many people as possible. Sam tries to treat everyone as he would wish to be treated. Rex takes a _________________ approach to decision making, and Sam follows a ______________ approach.
A. utilitarian; utilitarian
B. utilitarian; deontological
C. deontological; utilitarian
D. deontological; deontological
B (Utilitarian; deontological) Doing the greatest good for the greatest number is the goal of utilitarianism, Following moral rules, such as the golden rule, is the hallmark of deontological ethics
The general standards that constitute the smallest amount of ethical conduct necessary for the functioning of civilization are referred to as _______________________. These standards _______________ require defense or justification.

A The moral minimum; do
B The moral minimum; do not
C Virtue Ethics; do
D Virtue Ethics; do not
B (The moral minimum; do not) If people do not comply with these standards, they help diminish the social and economic relationships that cause a society to function effectively. As such, these principles do not require defense or justification
If a child says "all my friends are allowed to text as late as they want to" and parents reply "If everybody else jumped off a cliff would you jump too" The child is forming their belief about acceptable conduct through a filter of

A Obedience to authority
B Conformity bias
C Groupthink
D Overconfidence bias
B (Conformity bias) The conformity bias tells us that people tend to take their cues as to proper behavior in most social contexts from the actions of others
A recent study found that people who are in the center of social networks, who act as brokers of information for others in the network, are more likely to believe that these others share their moral judgements than are other members of the network. This finding indicates that people at the center of social networks are especially susceptible to the phenomenon of

A Obedience to authority
B Conformity bias
C groupthink
D overconfidence bias
D (Overconfidence bias) This effect is the tendency to believe that other people think the same way that we do. Because of it, honest people often believe that, if they are honest themselves, then others will be honest as well
Milton friedman argued that corporations are agents of ________________ He _______________ argue that corporations should be socially responsive

A Capital; would
B Capital; would not
C society; would
D society; would not
B (Capital; would not) Friedman was leading advocate of the idea that companies do not owe duties to society, and that corporate leaders should make decisions in such a way as maximize shareholder wealth
The idea of a social contract supports the view that corporations are agents of _______________. The concept of group dynamics as it applies in corporate settings supports the view that corporations are agents of ______________.

A Capital; capital
B Capital; society
C Society; capital
D Society; society
D (Society; society) both ideas support an anti-friedman view that corporations are moral agents and do owe a obligation to help meet social needs
In the 1990s leaders at sears auto centers set aggressive goals that caused many sears employees to widely overcharge for work and to perform unnecessary repairs. Other similar examples involved Washington mutual and Wells Fargo. The problem at the heart of the companies troubles was.....

A Failure to adopt a code of ethics
B Improperly structured compensation
C A lack of effective ethics training
D None of the above
B (improperly structured compensation) Each company put compensation structures in place that incentivized wrongful behavior by employees.
Which of the following tend to increase the chances that employees will act ethically

A Hiring ethical people
B Treating employees well
C adopting a code of ethics
D conducting effective ethics training
E All of the above
E (all of the above) All four tend to make it more likely that employees will behave ethically.
"We have an obligation to treat others as we would wish to be treated" What type of argument is this

A Utilitarian
B Deontological
B (Deontological)
Which philosophers championed deontological, or rule-based, ethical reasoning

A John Stuart Mill
B Immanuel Kant
C Jeremy bentham
D Aristotle
B (Immanuel Kant)
"It seems like the benefit doesn't outweigh the downside"
What type of argument is this

A utilitarian
B Deontological
A (utilitarian) doing greatest good for greater number of people
Utilitarianism is an example of a consequentialist theory

A True
B False
A (True)
"Company isnt me it isnt anybody, its just a thing. A Paperwork creation. I'm a charitable guy, but thats when I'm on my own time. The company doesn't have to be a good citizen. It's not a person"
Who among the following would likely agree with roger's point of view?

A John Ladd
B Former chief justice John Marshall
C Milton Friedman
D All of the above
D (All of the above)
"Companies don't exist in a vacuum Roger. They're a part of society, without a strong and stable society, companies can't succeed. We should try to leave things better than we find them. We are in a position to do the right thing here and have a moral obligation to do that" ANGELA
"I disagree with that" says roger "we have shareholders now, and they expect a good return on their investment. I work for them, they expect me to run the company legally and make as much money as possible. End of story. And if they want to take some of their return and put it toward good causes, then thats fantastic, but i wont do it for them." ROGER
Who takes the view that corporations are "Agents of capital"

A Roger
B Angela
A (Roger)
According to a large survey cited in the text, a majority of managers in every nation agree with Roger that only legitimate purpose of a corporation is to make profit.

A True
B False
B (false)
Ron punches Tommy twice for no good reason. After the second punch, tommy tackles ron to the ground and in doing so breaks ron's arm. Tommy ggets up Ron stays down, almost motionless. Tommy is so angry he kicks ron in the ribs before leaving. Which of Tommys actions probably amount to self-defense

A The tackle
B The kick
C Both A and B
D None of the above
A (The tackle) the tackle seems likely to be deemed reasonable under the circumstances since, at the time, tommy was under attack. But if ron is down and no longer fighting continuing to inflict damage is unlikely to count as a reasonable action
Mcdonalds ads sometimes featured a dopey character called the "hamburgler". Assume the hamburgglar approaches ronald mcdonald on the sidewalk, pulls out a knife and demands ronalds wallet. Ronald is no clown, so ronald hands over the wallet.
Does the Hamburgler have an appropriate name in this scenario (is he a burgler)

A Yes he has committed burglary
B No in this case, he should be called the hamrobber
C No in this case, he should be called hamlarcener
D No in this case, he should be called Hamembezzler
B (He should be called the hamrobber) Hamrobber this time because he took the wallet by threat of force, and so committed the crime of robbery.
Alice is distracted by her navigation system and strikes al's car with her car. Brenda is driving 50 MPH over the posted speed limit while drunk when she strikes bill's car.
Which of them has likely committed an intentional tort

A Alice
B Brenda
C Both A and B
D None of the above
B (Brenda) Simple carelessness like Alice leads to negligence lawsuits. Deliberate actions, and reckless actions like Brenda's lead to intentional tort cases
Ann sues Bill in a negligence lawsuit. What type(s) of damages can she seek?

A. compensatory damages
B. punitive damages
C. both A and B
D. None of the above
A (compensatory damages) Only in intentional tort cases can a plaintiff seek punitive damages
Roger shows up at his friend Fred's house. Fred did not invite him over, but Fred is glad to see him, and the two sit down to watch a baseball game. Later, Roger uses a bathroom at Fred's house, and he receives an electrical shock from a light switch. Fred knew that the switch was badly wired, because his cousin received a shock from the same switch last week.

Did Fred have a legal duty to warn Roger about the faulty switch?

A. Yes
B. No
A (Yes) Roger is a license. As such fred is obligated to warn roger about hidden dangers on his property if fred has actual knowledge of them
Lauren is distracted by a bee in her car, and while paying attention to the bee, she fails to notice Ron's car until it is too late to avoid a collision. Has Lauren been negligent per se?
A. Yes
B. No
B (no) lauren has not violated a law, like a posted speed limit. She may be held liable for causing the accident, but she has not been negligent per se
Imagine that Peter, who works for Pepsi, puts 200 cans of Pepsi into an empty vending machine on Monday morning. Later that day, Karl Klutz buys a Pepsi from the same machine and takes it out onto a second floor balcony. Karl sees Vince Victim down below, waves to him, and fumbles the Pepsi. The can describes a perfect arc and conks Vince on the head, knocking him unconscious. When he comes to, Vince feels like filing a lawsuit.
Whose actions are causes in fact of this injury?
A. Peter
B. Karl
C. Both A and B
D. None of the above
C (Both Karl and Peter) Both Karl and Peters actions are causes in fact. If you eliminate either's actions, the accident doesn't happen. But it is very unlikely that peter will be held responsible for Vince's injuries
Imagine that Peter, who works for Pepsi, puts 200 cans of Pepsi into an empty vending machine on Monday morning. Later that day, Karl Klutz buys a Pepsi from the same machine and takes it out onto a second floor balcony. Karl sees Vince Victim down below, waves to him, and fumbles the Pepsi. The can describes a perfect arc and conks Vince on the head, knocking him unconscious. When he comes to, Vince feels like filing a lawsuit.
Whose actions are a proximate cause of this injury?
A. Peter
B. Karl
C. Both A and B
D. None of the above
B (Karl) only karl's action is a proximate cause. Peter is sort of involved in all of this, had he not restocked the empty machine, this accident might not have happened. But he would not be considered a proximate cause because the jury would not say "ah you should have known better - you should've foreseen that this kind of thing would happen if you did your job and put cans in the machine" Karls actions would be a proximate cause, because a jury would say that he should have foreseen that if he dropped the can from a high place he might injure someone, and that he should have been more careful to hold onto it
After a long day of creating online course materials, Prentice and Bredeson have a fender bender in the parking lot, they consider fighting but decide to sue each other.
At the trial evidence shows that at the time of the accident Prentice was behind the wheel eating a cheeseburger and fiddling with his radio and that bredeson was talking on two cell phones. The jury concludes that the wreck was 60% bredeson fault and 40% Prentice fault.
Bredeson would recover 40% of his losses in which type of system

A Pure comparative negligence
B Modified comparative negligence
C Both A and B
D None of the above
A (Pure comparative negligence) Bredeson gets nothing in either type of modified system, because he is over half at fault. Bredeson can recover 40% of his losses in a pure comparative system. He end up with that amount because his award will be reduced by 60% of the blame that falls on him
Ann lives in a state that has a 2-year statute of limitations and a 10-year statute of repose on negligence cases. Two bad things happen to her in 2018. First, she is involved in a car accident that is entirely the fault of Donny Driver. Immediately after the wreck, she is operated on by Sally Surgeon. Sally does a careless job of reconstructing Ann's elbow, but it is done in a way that causes no initial pain and that Ann does not even notice until 2020.

Now it is 2021. Ann is frustrated by her elbow pain, and decides that she wants to sue both Donny and Sally. Can her lawsuit proceed if the defendants raise the defenses described in this section?

A. Yes, against Donny and Sally.
B. Yes, against Donny only.
C. Yes, against Sally only,
D. No.
C (Yes, against sally only) because she was not able to detect the botched surgery until 2020, the 2 year statute of limitations was tolled and did not begin to run until 2020, so the lawsuit against sally can proceed. It is too late to sue Donny in 2021 because it has been more than 2 years since the accident
Sue rents a Segway scooter. While riding around downtown, she spots her arch enemy Archie, who is standing on a sidewalk facing away from her and looking at his phone. Sue grimaces, sets her shoulders, and accelerates to the Segway's top speed of 5 miles per hour. With a look of pure rage, she zeroes in on Archie, who is still looking at his phone and scrolling through an endless stream of nothing in particular.
Eventually, Sue reaches Archie and runs into him from behind, knocking him down to the sidewalk. Archie never saw it coming. In the fall, he breaks his wrist.
What torts has Sue committed?
A. Assault
B. Battery
C. Both A and B
D. None of the above
B (battery) Since archie was never afraid, sue has not committed assault. But, since she deliberately acted and caused a harmful bodily contact, she has committed battery
Bill says, "I hate Steve!" Steve's boss hears the exclamation, and later fires Steve because he no longer trusts him. Steve has to go into business for himself.
Tom says, "Steve stole $1000 from me when I hired him to do my taxes!" This is not true. Steve's largest client fires him.
Bill has committed __________________, and Tom has committed _______________.
A. no type of defamation; slander per se
B. no type of defamation; libel
C. slander; slander per se
D. slander; libel
A (No type of defamation; slander per se) Bill has given his opinion, and has not stated something that is verifiably false, so there is no defamation even though steve has suffered a negative consequence. Tom has lied to another person about steve, and because it involves steve's professional reputation, it amounts to slander per se and not just ordinary slander
Roger throws a disc to ned, when ned puts up a hand to catch it, he misses and the frisbee smacks him in the mouth and chips a tooth. Roger says sorry and turns to Angela and asks "He can't sue me can he"
Could Ned bring a successful lawsuit against roger for negligence?

A Probably so
B Probably not
B (probably not)
Roger gives Ned a sizzling hot burger and Ned places his bun on top, takes a huge bite and screams about how hot it is. Ned burns his tongue and Roger turns to angela and asks if now he may sue him
Now could ned bring a successful negligence lawsuit against roger

A Probably so
B Probably not
B (probably not)
Someone screams spicey startling a squirrel nearby causing it to drop its nut and the cat is awaken from squirrel dropping nut on its head, the cat leaps and lands on neds face, the cat jumps off leaving tons of scratch marks. Roger asks angela if now he can sue.
Could Ned successfully sue for negligence now?

A Probably
B Probably not
B (Probably not)
Ned and Roger are playing football, Roger drags ned to the ground and falls on him awkwardly, neds hand folds up underneath him and he thinks Roger has broken one of his fingers. Roger apolagizes, but ned seems hesitant to accept it.
Can ned win a battery lawsuit against roger?

A Probably
B Probably not
B (Probably not)
Ned upset, leaves rogers on the way out Roger tells ned not to use the gate because its not stable Ned pulls the gate open anyways and the gate breaks away from its hinges, wobbles, and falls toward ned. Ned falls to the ground and several gate boards fall on top of him.
Now can ned successfully sue for negligence?

A Probably so
B probably not
B (Probably not)
Ned comes at roger with a board of the fence with a nail in it and swings a couple times, roger tells ned to calm down, Ned responds with a third swing and the nail whistles by an inch from rogers face Roger yells to stop, ned ignores and winds up for another swing, a scared roger steps forward and delivers a neat punch to neds nose. Ned hits the ground and rolls around in the grass
Can ned now win a battery lawsuit against roger?

A Probably so
B Probably not
B (Probably not) self defense
Walter makes watches. No smart watches, digital watches, or even battery powered watches for him - he works with tiny gears and makes old fashioned mechanical watches. One summer, he invents a new configuration of gears that allows for a watch to keep track of multiple time zones in an entirely new way. He calls the new watch the "Neptune", and plans to start selling it in his shop.
Which of the following can Walter probably trademark?

A. The design for his new kind of gear movement
B. The name of his new kind of watch: "Neptune"
C. Both A and B
B (The name of his new kind of watch: Neptune) Product names are often trademarked. Designs and inventions are usually protected as trade secrets with patents
Walter makes watches. No smart watches, digital watches, or even battery powered watches for him - he works with tiny gears and makes old fashioned mechanical watches. One summer, he invents a new configuration of gears that allows for a watch to keep track of multiple time zones in an entirely new way. He calls the new watch the "Neptune", and plans to start selling it in his shop.
What type of mark is "Neptune"

A. Generic
B Descriptive
C Suggestive
D Arbitrary
D (Arbitrary) The name "neptune" as applied to the watch has no relationship to the planet neptune or the mythical figure neptune. As such it is an arbitrary mark like apple for electronic devices
Watkins Fuel Co. sued competitor Carroll Independent Fuel Co. for trademark infringement. Carroll registered the domain names of Watkins-fuel.com, watkinsfuel.net, watkinsfuel.org, and similar marks. Both firms sell heating oil, kerosene, and diesel oil. Watkins has long been the leader in these markets in Washington and Oregon, the states where it operates. Carroll also operates there, selling to the same high-end customers that Watkins targets. Plaintiff's name (Watkins Fuel Co.) is trademarked with the USPTO.
Watkin's president found out about all of this when customers began asking him if his company had been purchased by Carroll. They wondered, because when they were on the Internet, the web address watkinsfuel.com (and others) landed them at Carroll's website. Watkins sued. Which of the following is true?

A. Watkins will probably win on a trademark infringement theory
B. Watkins will probably win on a trademark dilution theory.
C. Watkins will probably lose on both theories
A (Watkins will probably win on trademark infringement theory) It is fairly clear that carrol has created a strong likelihood of consumer confusion and infringed on watkins trademark. However it is not probable that Watkins mark meets the required definition of "Famous" and therefore it is likely ineligible for protection under anti-dilution statutes.
Walter makes watches. One summer, he invents a new configuration of gears that allows for a watch to keep track of multiple time zones in an entirely new way. He works alone for countless hours, and does not share his work with anyone. The new configuration was very difficult to dream up, and required a significant amount of expertise and imagination. He calls the new watch the "Neptune", and plans to start selling it in his shop. It starts selling very well very quickly.
Is Walter's design the kind of thing that can be protected as a trade secret?

A. Yes
B. No
A (Yes) The watch design is information not known outside the company, easy or difficult for someone else to independently develop the information or acquire it properly, it's valuable information to the company, and took a lot of time and money to create.
DuPont was constructing a large refining plant designed to enable the use of its new, secret process for producing methanol. Someone who knows a great deal about such refining processes could figure out how DuPont's new process worked by seeing and studying the facility under construction, and so DuPont put security measures in place as the plant was under construction, including a privacy fence around the construction site, restricted access with locked gates, ID checks, and guards who patrolled the perimeter.
But, a competitor rented a small airplane, flew over the construction site, and took aerial photographs. (In more modern times, drones would make this kind of thing much, much easier.) DuPont sued. The defendant competitor claimed that the plant design should not count as a trade secret because DuPont did not take reasonable steps to protect the design.
Will the plant design be determined to be a trade secret?

A No, because it is not the kind of thing that can be a trade secret
B No, because DuPont did not take reasonable measures to protect the design
C Yes
C (Yes) the plant clearly gives DuPont an advantage and is the kind of thing that can be protected as a trade secret. Although they did not have perfect security, it took a significant number of measures to keep prying eyes away from the construction site. Extreme measures are not required to meet the four-part reasonable security standard
Tom discovers a new type of tree while exploring deep in a forest on a remote island. No one appears to have used it for anything before, and Tom would like exclusive rights to sell the wood.
Sarah creates a new wood-like product in her lab. It is substantially stronger than any known natural wood.
Can Tom and Sarah obtain patents that will cover their respective discoveries?

A. Tom can receive a patent
B. Sarah can receive a patent
C. Both Tom and Sarah can receive a patent
D. Neither Tom nor Sarah will receive a patent
B (Sarah can receive a patent) Newly created substances are patentable, but naturally occurring substances are not
Roger copies 6 of the 7 elements of Barbara's patent, but does not have anything that is the substantial equivalent of the 7th element in the patent. Which of the following is true?

A. Roger has literally infringed on Barbara's patent.
B. Roger has violated Barbara's patent under the doctrine of equivalents.
C. Both A and B.
D. None of the above
D (none of the above) All elements must be copied for literal infringement to have occurred. And since at least one element is not substituted with a substantial equivalent, roger has not committed a doctrine of equivalents type of infringement
In january of 2020, Ron is hired by a television network to write a screenplay as a work for hire for an upcoming episode of one of their popular programs. He delivers the work and the episode is filmed and airs later in the year.
Also in 2020 Ron writes and publishes a science fiction novel, Ron passes away in 2040
Will the copyright on screenplay or novel expire first

A Screenplay
B Novel
C expire at the same time
B (The novel) The copyright on the novel will expire 70 years after rons death or in 2110. The copyright on the screenplay will expire in 95 years because it is a work for hire so it expires in 2115
Alice buys a copy the game Elf War on CD-Rom. She makes a single backup copy and gives the copy to her sister. Has Alice violated the game's copyright?

A. No, because consumers are allowed to make a single backup copy.
B. No, because of the fair use defense.
C. No, for reasons A and B.
D. Yes
D (Yes) A backup copy is allowed, but it cannot be given to another person, including a family member. Since she copied the entire game and reduced the market for new copies (Now her sister doesn't have to buy a copy) Alice has not made a fair use of the software.
Roger wants to protect the name of his new energy drink company
Whichever name he selects, what kind of intellectual property protection can he use to cover the name of his product?

A Trademark
B Trade Secret
C Patent
D Copyright
A (Trademark)
What kind of term is "Smiths Energy drink"

A Generic
B Descriptive
C Suggestive
D Arbitrary
B (Descriptive)
"Either way I want the old man logo to be on every bottle. I should trademark that. And the recipe. I don't want anybody copying it. I'll trademark that too.
Which of these things cannot be trademarked?

A The old man logo
B The recipe for the energy drink
C Neither of them can be trademarked
B (The recipe for the energy drink)
For potentially longest lasting protection against "secret recipe theft" Roger should rely on

A Patent
B Trade Secret
B (Trade Secret)
To qualify as a trade secret, a company must take ____________ security measures to keep the information secret

A Absolute
B Comparative
C Reasonable
D Minimal
C (Reasonable)
Fred logs into his TD Ameritrade account and buys one share of Apple Stock. He is delighted that he now owns 1/4,330,000,000th of the company. Freds share of apple stock is.....

A A debt security
B An equity security
C Impossible to tell from the information given
B (An equity security) Fred has purchased (a very small) ownership interest in apple, therefore has acquired an eqity security
Ellen Engineer works for AlphaCo. She is not an officer in the company. She reviews a report on land the company owns in west texas. The report expresses confidence that there is a significant amount of previously-undiscovered oil under the surface of the land, and that the company stands to make tens of millions from the resource.
Ellen buys thousands of shares in AlphaCo stock. When the news about the oil field breaks later that month, Ellens shares double in value. Ellen is liable for insider trading as a(n)

A Corporate insider
B Temporary insider
C Misappropriator
D Tippee
E None of the above
A (Corporate insider) Ellen is a corproate insider - there is no requirement she be at the top levels of her corporation. She has a duty to disclose or abstain, and has engaged in insider trading.
Jed promises to move his neighbor's furniture to a new apartment next Saturday, and the neighbor agrees to pay $300 for Jed's work. What kind of contract does Jed have with the neighbor?
A. unilateral
B. bilateral
B (Bilateral) The two parties have exchanged promises, and so like most contracts, this one is bilateral. The parties intend to be bound at the time they exchange the promises
Billy, age 10, walks into a baseball card shop and tells the owner that he has an Aaron Judge rookie card. The owner offers to pay Billy $25 for the card if he brings it by tomorrow. Billy says, "It's a deal," shakes the owner's hand, and leaves. Select the correct descriptive terms from the pairs below that apply to this deal.
unilateral -or- bilateral
valid -or- voidable -or- void
express -or- implied
executed -or- executory
governed by common law principles -or- governed by UCC principles
This is a Bilateral(promise for promise), Voidable(billy is a minor), express (stated), Executory (unfinished) contract governed by UCC principles (because baseball card is a good)
Bill says proudly to his friend Dean, "Look! I just got the new iPhone!" Holding it side- by-side with his old iPhone, he says, with great enthusiasm, "It's so much better! Look what it can do! Wow!"
Dean thinks that the phones look about the same as Bill rambles on and on. Dean gets really, really bored for a while. But, his attention returns when Bill says, "I need to get rid of this old one. I guess it's not worth much now, not with all these upgrades on the new one!"
"Hmm...can you make calls and check baseball scores on the old one?" Dean asks. "Sure, but oh baby, not like you can on the new one! I mean, the pixel count alone..." "How much would you want for it?" Dean asks.
"Oh. Ah...I'll sell it to you for $50."
"I'll take it," Dean says.
"Oh, ah...OK," Bill says. "But, you know, I didn't really want to sell it. I, ah...I really never meant to, you know, make a real contract or anything. I was just, ah, just talking."
Has Bill made an offer?

A. Yes, because his objective intent was to make an offer.
B. No, because his subjective intent was to not make an offer.
C. No, because he did not use the word "offer" in the statement underlined above. D. No, because he did not write his offer down.
A (Yes because his objective intent was to make an offer) The statement "I'll sell it to you for $50" would seem like a proposal to make a specific deal. Bills secret "in his own mind" intent may be different, but subjective intent is not relevant. He does not need to use the word offer or put his proposal in writing to make an offer
Zehmer is a farmer who owns the Ferguson farm. Lucy is a neighbor who has attempted to buy that farm before. Lucy sees Zehmer in a restaurant and tells him: "I bet you wouldn't take $50,000 for that farm." Zehmer replies: "Yes, I would, too. You wouldn't give fifty." The parties then talked about a potential deal for 40 minutes, writing up one version and then amending it when it dawned on them that Zehmer's wife needed to agree. The document the Zehmers signed said: "We hereby agree to sell to W.O. Lucy the Ferguson Farm complete for $50,000, title satisfactory to the buyer." The parties were drinking alcohol during this time, but were not so drunk as to not understand what they were doing. Later, when Lucy tried to pay, the Zehmers claimed that they were only kidding—it was all a big joke. Lucy sued to enforce the deal. Does a contract exist?

A. No, because Zehmer lacked the required subjective intent to sell.
B. No, because the offer was not sufficiently definite.
C. Yes.
C (Yes) Objective intent is the key to whether an offer exists, not subjunctive (in your own mind) intent. The court held that a reasonable party in Lucy's shoes would not have known that Zehmer was joking. The price was fair, the parties negotiated for 40 minutes, and they put the deal in writing and signed it. While the offer could have been more specific, there is enough information in the offer for a court to determine what each side is promising the other.
I say to you, "I'll sell you this pen for one dollar."
"How about 50 cents?" you ask.
"Well, I don't really know much about rap," I reply.
"No," you say, shaking your head. "For the pen. I'll pay you 50 cents for the pen."
"Ah," I say. "No, that's not enough."
"OK, OK, I'll buy it for $1," you say.
Do we have an accepted offer?
A. Yes
B. No
B (No) You have rejected my original offer ($1) and replaced it with a counter offer ($.5) which I have rejected. It is too late for you to accept my original offer, because one terminated, an offer cannot be accepted. No Deal
June 1—Y receives an offer in the mail from X.
June 2—X mails letter of revocation.
June 3—Y mails acceptance at 5 p.m.
June 4—Y receives the revocation.
June 5—X receives Y's acceptance.
Do X and Y have a contract?
A. Yes, as of June 3.
B. Yes, as of June 5
C. No.
A (Yes, as of june 3rd) A contract was formed at 5PM on june 3. Since a revocation is usually not effective until it is received, the letter that X mailed on June 2 had no effect until June 4, when Y received it. And by that time a contract had already been formed, because the acceptance counted as soon as it was sent.
EMAIL WORK AS EFFECTIVE WHEN IT ARRIVES IN EMAIL SERVER
A wife attacks her husband with an ax, knocking him down. As she is about to decapitate him, a bystander intervenes, catching the ax on its downward flight. The bystander's hand is badly mutilated. The husband jumps up and promises to pay the bystander $1,000 for saving his life. When he later does not pay, the bystander sues the husband.
Is consideration present that supports the promise to pay the $1000?
A. Yes
B. No, because the bystander did not suffer a detriment
C. No, because the promise to pay did not induce the detriment
D. No, because the wife caused the detriment to the bystander, and she is not a party to the lawsuit.
C (No because the promise to pay did not induce the detriment) The plaintiff has clearly suffered a detriment in that she did something that she didnt have to do, and it is exactly what the husband bargained for. However the promise did not induce the detriment. Because the husband made his promise after the bystander acted, we cannot say that his promise caused the life saving intervention. Thus most courts would not enforce this promise.
Al contracts to sell land in Montana to Bob for $60,000. Bob later discovers - after signing the contract but before paying for the land, that the actual value of the land is only $30,000. Even though Al did not mislead Bob in any way, Bob refuses to pay, and Al sues. Can Al enforce the contract?
A. No, because of the preexisting obligation rule.
B. No, because of the peppercorn rule
C. Yes
C (Yes) Bob is liable on his promise to pay 60,000 even though what he received was worth much less. Al incurred a detriment when he promised to convey the land - surrender of his right to retain the property. The presence of this detriment constituted a consideration sufficient to support bob's promise to pay; and bobs claim of inadequacy is therefore of no relevance
Rick, when he was 16 years old, bought a used car from Car World for $5,000. He drove the car for a year and put 15,000 miles on the odometer. He was also involved in a minor accident.
At age 17, Rick wants to disaffirm the contract with Car World and get a full $5,000 refund. Car World objects. Its owner says, "Look, the car has higher miles that it did last year, and even if it wasn't damaged from the wreck, I could only sell it for $4,000. And with the damage on top of the higher miles, I can't sell it for more than $3,000. And besides, I sold this car more than a year ago - I shouldn't have to issue any refund at all."
What refund should Rick receive if a court applies the rule that is applicable in most states?
A. $5,000
B. $4,000
C. $3,000
D. $0
A ($5000) In most states the minor is entitled to the full amount that he or she paid without any deduction for damage or depreciation, even if a contract is fully executed.
Consider the following people, and whether each has the ability to disaffirm a contract
-Al is insane in fact. He signed a agreement, and he understood its nature and effect
-Bob has consumed five beers. He signed an agreement and he understood its nature and effect.
Which of these people can disaffirm their contract?

A Al
B Bob
C Both Al and Bob
D Neither Al or Bob
D (Neither Al or Bob) It is not enough to be insane in fact or intoxicated. In addition, one must be unable to understand the nature and effect of the agreement made to be able to disaffirm.
Paul owns two properties outside Woodsfield, Ohio. Gary, after viewing both acreages, makes Paul a written offer to purchase one for $18,000. Paul accepts the offer. It later develops that Gary had one property in mind while Paul, after reading the description contained in Gary's offer, honestly and reasonably believed that Gary was referring to the other property.
Who can rescind the agreement?
A. Paul
B. Gary
C. Both can rescind the agreement
D. Neither can rescind the agreement
C (Both can rescind the agreement) Either party can rescind the agreement, because there was a mutual mistake about the identity of the contracts subject matter
Cobb purchases a gemstone from Drury for $25 and leaves Drury's house. At the time of contracting, both parties believe the stone is a topaz. In fact, it turns out to be an uncut diamond worth $700. Drury sues.
This scenario is an example of a _______________ mistake, and Drury ____________ be able to rescind the contract.
A. unilateral; will
B. unilateral; will not
C. bilateral; will
D. bilateral; will not
C (Bilateral; will) Since both parties were mistaken about the true character of the contract's subject matter, it is a bilateral mistake. Drury can have the contract rescinded, thereby recovering the stone
Picture a Rolex. Oyster Perpetual. Self-winding. Certified Chronometer. Nice.
But this Rolex has a problem. Because Seller Sam once dropped it, its second hand and the shaft that turns it is bent ever so slightly. No one would really notice. But every so often, the flaw causes the movement to get stuck, and the watch stops keeping accurate time.
To avoid committing fraud, does Seller Sam have an obligation to disclose this defect to Ben Buyer?
A. Yes, but only if Sam is a watch expert or in the business of selling watches.
B. Yes, whether or not Sam is a watch expert or in the business of selling watches.
C. No, because if he does not make a false statement, he can't commit fraud.
B (Yes, whether or not same is a watch expert or in the business of selling watches) Generally sellers have an obligation to disclose latent, or hidden, defects
Jack and Jill each own a Chewbacca action figure. Jill's is even still in its original box. Their toys, like most of the figures from the same production run have a problem - the feet fall off at the slightest touch. The few figures in the world that have sturdy feet are worth fifty times what the flawed figures are worth.
Carl Collector talks to Jack over the phone. "Does the Chewie you are selling have the 'feet fall off' thing?" he asks. Jack glances at his footless action figure. "Nope," he replies. Carl agrees to buy it.
Carl next calls Jill and asks her the same question. Jill doesn't know one way or the other, since her action figure is still in the box. She could find out if she looked, but she is not about to check too closely. "No way," she says. "The feet are sturdy." Carl agrees to buy it.
Jack has committed ________________, and Jill has committed __________________.
A. fraud; fraud
B. fraud; innocent misrepresentation
C. innocent misrepresentation; fraud
D. innocent misrepresentation; innocent misrepresentation
A (fraud;fraud) Both have committed fraud, Jill recklessly made a false statement, and jack did so intentionally
Ronny sells his successful seafood restaurant to Ken. Initially, Ronny plans to retire. But in the weeks after handing the restaurant over to the new owner, many of Ronny's customers reach out to him and tell him how much they miss having him around. Ronny decides to open a brand new seafood restaurant a few blocks away from the old one.
This infuriates Ken, who points out that Ronny agreed to a noncompete clause in the contract that transferred ownership of the old restaurant to Ken. In it, Ronny promised not to open a competing restaurant for one year in the same town.
"It's a free country," Ronny says. "It's a new business under a new name. You only bought the old one. Leave me alone."
The noncompete clause _______________ the ancillary requirement. If Ken sues to enforce it, a court probably ____________ issue an injunction ordering Ronny not to open a new restaurant for a year.
A. meets; will
B. meets; will not
C. fails to meet; will
D. fails to meet; will not
A (meets; will) The noncompete is part of a larger agreement, so it meets the ancillary requirement. It is also limited in geographic area and for a reasonable amount of time, and as such, it is enforceable against ronny
Vince goes to a baseball game. The back of his ticket says, "team is not liable for injuries in the stands."
Vince has a few beers, and taunts the shortstop throughout the game. Late in the game, Vince says something very unpleasant about the shortstop's mother. The shortstop drops his glove, charges into the stands, and beats Vince senseless.
When Vince gets out of the hospital, he sues the team. The team wants to escape liability, and points out that their exculpatory clause on the back of Vince's ticket covers this kind of thing. Will a court likely enforce the exculpatory clause and prevent Vince from seeking
damages?
A. Yes
B. No
B (No) Even though this is a recreational activity, exculpatory clauses only cover negligence, and not intentional wrongful acts. Vince can go ahead with his lawsuit
A promises on June 1, 2020 to perform for two hours at a wedding reception on august 21, 2021. Does this contract need to be in writing to satisfy statute of frauds.

A Yes
B No
A (Yes) this contract must be in writing to be enforceable. Even though the performance itself will take only two hours, by the contract's terms that the performance must occur more than one year after the contract was made.
June does not qualify for a car loan. She calls her aunt from the car dealership, and the aunt decides to help out her favorite niece. Over the phone, the aunt tells the general manager of the finance department, "Go ahead and loan her the money, and if she misses the payments, I'll make them."
The aunt's promise ____________ contain the elements of a guaranty contract. If the car dealer makes June the loan, and if June fails to make payments, the aunt's promise ______________ be enforceable.
A. does; will
B. does; will not
C. does not; will
D. does not; will not
B (Does; will not) This is a guaranty arrangement, but because it is not put into writing, it will not be enforceable against the aunt under the statute of frauds
A fast food restaurant in a college town would benefit from a contract between a construction firm and the university calling for construction of a four-level parking facility on campus property just across the street from the restaurant.
The builder breaches the contract with the university by refusing to go ahead with the project and the university looks like it may scrap the plans for the parking garage altogether. Can the owner of the restaurant sue to enforce the construction contract.

A Yes, because it is a creditor beneficiary
B Yes, because it is a donee beneficiary
C No, because it is an incidental beneficiary
D No, because a third party that has not signed an agreement never has rights to enforce the contract
C (No because it is an incidental beneficiary) The restaurant owner cannot recover damages from the builder as an unintended, incidental beneficiary. The university and construction firm did not ennter into this contract with a view to benefitting the fast food restaurant. But, intended creditor and donee beneficiaries are third party "outsiders" who do have rights
Sidney signs a contract to sell her vacation house. Tom makes an agreement to work as an engineer for a local tech company. Veronica makes a deal in which she will sell her collection of rare books.
Which of these contracts would be covered by Article 2 of the Uniform Commercial Code?
A. Sidney's only
B. Tom's only
C. Veronica's only
D. A and B
E. B and C
C (Veronica's only) Sidney is selling non-movable real estate, and Tom is selling his labor, or services. Veronica is selling tangible, movable property or goods.
Fred places a verbal order at a store for a new Tag Heuer watch. He pays the full price - $1000 - at the time of the order. The clerk says the watch will arrive in about a week.
The next morning. Fred changes his mind about the watch. He goes to the store and argues that he should be able to cancel the order and get his money back. The store refuses, and Fred sues, citing the statute of frauds.
Does Fred have a valid argument that the statute of frauds should allow him to escape this deal?
A. Yes, because the watch costs more than $500.
B. Yes, because the watch has not yet been delivered.
C. Yes, because he is purchasing the watch from a merchant.
D. No.
D (No) The watch is a good, and as such the fact that it costs at least $500 would often be relevant. But UCC calls for the enforcement of verbal contracts, even when goods do not cost at least $500, in some circumstances, one of which is when the goods have been paid for and the payment accepted.
"I Rodger smith, offer to sell my restaurant 'Rogers' and the 1.25 acre adjacent parking lot, to Ben Johnson for 775,000. I agree to not open a competing restaurant in town for the next three years. Ben Johnson indicates his acceptance by signing below"
Which of the following elements of a contract is not present in the deal as presented so far

A Offer
B Acceptance
C consideration
D None of the above
D (None of the above)
Johnson is claiming he drank too much during their negotiation. Rodger says he had two beers, no way more than three, he can't back out of the agreement just because he had a couple of beers can he?
Does the buyers alcohol consumption create a capacity problem?

A Yes
B No
B (No)
Johnson is claiming Rodger lied to him, saying he measured the Parking lot and it was 1.24 acres and that he committed fraud against him. He never measured the land exactly, and bought it 10 years ago from the realtor who said it was one-and-a-quarter acres"
Based on the incorrect description of the size of the parking lot, can Buyer back out of the deal?

A Yes because rodger committed fraud
B Yes, because rodger made an innocent misrepresentation
C No
C (No)
"He said if even if I didn't lie to him, that we were both 'mistaken' about the size of the parking lot, and that meant he had the option to cancel the agreement.
Has there been a mutual mistake that allows the buyer to back out of the deal?

A Yes
B No
B (No)
"He said I forced him to sign the deal"
"When we met last week over lunch, I told him he'd better act fast if he wanted to buy the place, because I was going to talk to another buyer on Thursday if we didn't have a deal then" "He said that made him feel pressure, and that he signed the contract under duress"
Can he back out of this deal on the grounds of duress?

A Yes
B No
B (No)
If buyer does go through with the agreement, Can Rodger open a competing restaurant across the street?

A Yes, because no competes are never legal
B Yes, because the no compete with ben fails the ancillary requirement
C Yes, because the no compete in his agreement with ben is unreasonable
D No
D (No)
-Ann was fired in 1960 because of her religious faith
-Ben was fired in 2020 for objectively poor work performance
-Carl was fired in 2020 because of his religious faith
Which of them would have been in a good position to sue under the Civil Rights Act and win their case?

A Ann only
B Ben only
C Carl only
D A and C
E B and C
C (Carl only) Ann's firing happened before the civil rights act existed. Bens firing was not related to anything prohibited by the Civil rights act, and so under the employment at will doctrine his firing is acceptable. Carl has a valid claim
-Church requires that employees i its youth ministry be Christians
-Large computer manufacturer requires that its employees be christians
-Small dry cleaners that employs 10 people requires that its employees be christians
Which could be successfully sued under the Civil Rights Act

A The church
B The computer manufacturer
C The dry Cleaners
D B and C
E A, B, and C
B (The computer manufacturer) The church, as a religious organization, can discriminate in favor of members of its own faith. Dry cleaning business is too small - fewer than 15 employees it is exempt. The computer manufacturer is acting illegally
Sid works at a day care. Most of his coworkers are women. By all accounts, he does a good job caring for the children in his care.
One night, the owner of the day care runs into Sid outside a movie theater. Sid is smoking. The owner fires Sid on the spot, citing a strict no smoking policy that is part of Sid's employment contract. "We can't have smokers around the children," she says.
The next day, the owner hires a woman to take over Sid's duties.
Sid sues. He argues that lots of his coworkers, men and women, smoke when off-duty. He presents evidence that 3 men have been caught smoking in the last few years, and 5 women. The men were all fired, and none of the women were fired.
Which of the following is probably true?
A. Sid has established a prima facie case of disparate treatment discrimination.
B. The employer will be able to rebut the prima facie case by arguing a legitimate business reason for the firing (the violation of the no smoking policy)
C. Sid will be able to argue that the rebuttal is a mere pretext for his firing.
D. A and B
E. A, B, and C.
E (Established prima facie, employer can rebut prima facie, sid can argue the rebuttal is pretext for firing) Sid probably has plenty of evidence to survive an attempt to have the case dismissed. The owner, because sid violated a term of his employment contract, can probably rebut the initial claim. But if true that men who break the rule are fired and women are not, Sid can probably successfully assert that the owner's stated reason for firing him is a mere pretext for the intentional discrimination based on gender
Ted is Jane's boss. Almost every week for the last two years, he has started the Monday morning meeting with a dirty joke. Most of them are about sex. Jane has had enough.
Which of the following types of sexual harassment has Ted probably committed? Assume that the company does not have any particular sexual harassment policy.
A. quid pro quo
B. hostile work environment
C. both A and B
D. none of the above
B (hostile work environment) Although bosses are the usual perpetrators of quid pro quo harassment, no sexual advance or demands for sexual contact were made here. But persistent dirty jokes likely meet the severe and pervasive requirement, and Ted has very likely created a hostile working environment
Gary is 50 years old, and is addicted to opioids. One morning, he takes a massive dose of Oxycontin, and when he arrives at work, he crashes his car into his boss' SUV. "That's it - you're fired!" yells the boss.
Which of the following laws can Gary use to get his job back? Assume that Gary's company has 40 employees.
A. The ADA
B. The ADEA
C. The Civil Rights Act
D. None of the above
D (none of the above) Gary has not been fired over a covered disability, so the ADA is out. Addiction can be covered, but the "current use of drugs" by definition is not covered. Gary is over 40, which is the minimum age for ADEA coverage, but nothing in the question indicates that his age is the reasoning for firing. The civil rights act will not work, because Gary has not been fired do to any factor covered by that statute.
Angela is nearly nine months pregnant. She has worked for her current employer on a full time basis for the last 12 months, and her company has 16 employees. She would like to take the next nine weeks off from work. Evaluating only under the Family Medical Leave Act, what problems do you see with her expectations?
A. The FMLA allows leaves only for illnesses and not for childbirth.
B. Angela has not worked for her employer long enough to demand leave.
C. Angela's company is not large enough to be required to comply with the FMLA
D. Angela can claim up to six weeks of leave, but not the nine she desires.
E. All of the above are true statements.
C (Aneglas company is not large enough to be required to comply with the FMLA) On employment law questions, always pay attention to the size of the company - most statutes in this area have minimum size rules. For FMLA to apply, a company must have at least 50 employees, so angela's company is not covered
Vince proposes to hire Donny to mow his lawn once a week over the summer for $40 per week. The two sign an agreement to that effect. Vince is the _____________ in this relationship, and Vince __________ need to have capacity for the arrangement to be valid.
A. principal; does
B. principal; does not
C. agent; does
D. agent; does not
A (Principal; does) As the employer Vince is the principal, and as such he must have capacity. Donny, who would work on Vince's behalf, is the agent.
Ann Agent works for Pete Principal. Pete tells her, "Drive the company truck up to Dallas, pick up a shipment of widgets from Alpha Co, and bring them back to Austin." As Ann is driving the company truck up to Dallas, it runs low on gas. Ann fills up the tank. Is Pete obligated to pay for the gas?

A. Yes, because Ann has express authority to buy the gas.
B. Yes, because Ann had implied authority to buy the gas.
C. Yes, because Ann has apparent authority to buy the gas.
D. No.
B (Yes, because ann had implied authority to buy the gas) Pete did not directly say anything about buying gas, but refilling the tank was reasonably necessary to carry out anns assigned task
While at UT, she has regular teaching and committee assignments. She reports to a department chair and a Dean, and she is paid a regular salary. While working for UT, she is an ___________
When writing books she is commonly paid a flate rate per project "X amount of dollars to write a 300 pg textbook on business ethics by june 1" the publisher might say. The publishers typically do not set specific hours and she does not typically have the writingg managged while it is being done. While writing books Ann is a ___________

A Employee; employee
B Employee; independent contractor
C Independent contractor; employee
D Independent contractor; independent contractor
B (Employee; independent contractor) The teaching work meets all three of the main criteria for employees, and the writing meets all three for contract workers
Lenny hires Richard to demolish a small office building on a property that he has acquired. Richard will used controlled explosions to bring the old building down. When he does the job, Richard uses too much dynamite. A chunk of the old building is blasted across the street and destroys Pam's parked car.
Can Pam sue Lenny for Richard's action?
A. Yes, if Richard is an employee of Lenny's.
B. Yes, if Richard is an independent contractor.
C. Yes, absolutely, whether Richard is an employee or an independent contractor.
D. No, absolutely not.
C (Yes absolutely whether richard is an employee or independent contractor) because richard is involved in an untrahazardous activity, Lenny is liable whether richard is an employee or independent contractor
Miles sells his house and land to Keisha. He has the following items of interest in his back yard; a lemon tree, a large swingset, and several large chairs. To install the swing set, miles dug 24 inch holes for each support pole and poured concrete around the poles after they had been lowered into the holes.
Which of the items in the yard amounts to real property, and therefore passes to Keisha

A the lemon tree
B the swing set
C the chairs
D A and B
E A,B,C
D (A and B the tree and swing set) The tree as natural vegetation, is considered real property. And because the swing set is more or less permanently attached to the land, it also counts as real property. The chairs, even if large, can be moved and are not attached to the land or any fixture.
Tom and Jim, a couple married in 2016, have four significant Assets
-50,000 in a bank account into which they have both deposited paychecks since 2016
-200,000 home tom paid off in 2014
-30,000 car they bought in 2018
-20,000 car Jim inherited from his grandmother in 2019
What is the total value of tom and jims community property if they lived in a community property state

A 30,000
B 80,000
C 100,000
D 280,000
E 300,000
B (80,000) since tom owned the house before marriage, it is his separate property. And because it was inherited, the 20,000 car is Jim's separate property. The other car and bank account are community property
Consider three promises made by uncle will to three nephews

Promise to AL - when you turn 21 next year, I am going to give you my truck
Promise to Ben - you can drive my truck to school whenever you need to
Promise to Cam - you're my favorite nephew. I'm giving you my truck to for your own. Ill bring it to you - assume he has not yet delivered the truck
Which of these promises currently amounts to a gift and transfers ownership of the truck?

A Promise to AL
B Promise to Ben
C Promise to Cam
D none of the above
D (none of the above) The promise to Al does not show present intent. The promise to ben is for him to be able to use, but not own the truck. The promise to Cam would amount to a gift if the truck had been delivered, but until it is delviered, there is no transfer of ownership
Jeff discovers a shopping bag left on a counter next to a sink in the restroom at Macys. Inside is a new leather jacket. There is a receipt showing that an unidentified person paid $400 cash for the jacket. If this happens in a state that follows common law rules, which of the following statements is true?

A Jeff is now the owner of the Jacket
B Jeff has a right to possess the jacket until and unless the owner is found
C Macy's has a right to possess the jacket until and unless the true owner is found
D None of the above
C (macys has a right to possess the jacket until and unless the true owner is found) Because the bag on the counter, it is probably a mislaid item and not a lost item. Lost items are found in random locations that indicate they have been dropped or otherwise unintentionally placed. The most logical assumption in this example is the owner voluntarily placed the bag on the counter and forgot to take it when they washed their hands. As a mislaid item Jeff never acquires ownership or the right to possess - that goes to the owner of the property where the discovery was made, in this case macys
Rhonda dies in 2020. Her will divides her wealth up as follows
12.58 million to my Husband
12.58 million to my daughter
12.58 million to UT
How much of Rhondas estate is subject to taxation under estate tax

A 25.06 million
B 12.58 million
C 11.58 million
D 1 million
D (1 million) The gift to hank (spouse) and UT(non profit org) are not taxable. Even if they were 10 or 100x as large they would generate no tax liability. The first 11.58 million going to debby is exempt but the last 1 million is beyond the 11.58 million allowance and so is taxable
Sidney makes the following gifts
10,000 to her brother bill for his birthday
20,000 to her sister sue for college tuition
30,000 to red cross
Assume payment for sue's tuition is made directly to university
What amount is subject to the gift tax

A 0
B 5,000
C 20,000
D 45,000
A (0) The gift to bill is under the 15,000 limit. Because sue's gift for tuition and payment is made directly to university, there is no limit. The last gift also has no applicable limit because it is to a charitable donation.
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