Business Finance Final Exam

Question 1
1.	Jiffy Corporation uses cumulative voting in its elections of directors. Kay owns 3,000 Jiffy shares. At an annual meeting at which three directors are to be elected, Mary may cast for any one candidate
 
	1,000 votes.
 
	3,000 votes.
 
	9,000 votes.
 
	27,000 votes.
0.5 points   
Question 2
1.	Snookie, a Jersey Shore Girl, wants to work at Disney's African-themed resort in the African village as a salesperson selling "native" artifacts to the tourists. Disney, however, says that in order to work in a customer-contact position at this park, you MUST be from Africa. Snookie feels she is being discriminated against and wants to sue. The likely result of such a lawsuit would be:
 
	Snookie would prevail since she is being discriminated against because of her national origin.
 
	Snookie would prevail since this Africa-only policy has a disparate impact on non-Africans.
 
	Disney would prevail if it received an exemption from the United Nations allowing it to have such a policy.
 
	Disney would prevail if its policy rose to the level of a Bona Fide Occupational Qualification for the position.
0.5 points   
Question 3
1.	Eric, a supervisor at X Corporation, sexually harasses a subordinate employee by constantly asking her for dates, when she repeatedly and firmly has said "no." The supervisor also makes jokes of a sexual nature around this employee. She becomes so stressed out one day that she had to "clock out" early and go home to compose herself, thereby losing four hours of work. X Corporation learns of the misconduct, and promptly fires the supervisor for violating its sexual harassment policies, and then the company also apologizes to the employee; but she sues the company for sexual harassment nonetheless. Assuming sufficient evidence, the likely result of such a lawsuit would be:
 
	The employer would not be liable since it has policies to combat sexual harassment which it enforced by firing the supervisor.
 
	The employer would be liable but only if the employee could demonstrate that the employer knew or should have known that its supervisor was sexually harassing employees.
 
	The employer would be absolutely liable for the sexual harassment regardless of knowledge or intent.
 
	The employer would not be liable since workplace romance is common in the office today, and the employee was probably too sensitive about it.
0.5 points   
Question 4
1.	Data Corporation created and sells "Economix," financial computer software. Data's copyright in Economix is best protected under
 
	the Berne Convention.
 
	the Paris Convention.
 
	the TRIPS Agreement.
 
	none of the above.
0.5 points   
Question 5
1.	Eagle Manufacturing, Inc., contracted with Digital Repair Services to maintain Eagle's computers. A "Liquidated Damages Clause" provides that Digital will pay Eagle $500 for each day that Digital is late in responding to a service request. If Digital is three days late in responding, and Eagle sues to en¬force this clause, Eagle will
 
	lose, because liquidated damages clauses violate public policy.
 
	lose, unless the liquidated damages clause is determined to be a penalty.
 
	win, because liquidated damages clauses are always enforceable.
 
	win, unless the liquidated damages clause is determined to be a penalty.
0.5 points   
Question 6
1.	Driving a car negligently, Adam crashes into a phone pole. The pole falls, smashing through the roof of a house, killing Beth. But for Adam's negligence, Beth would not have died. Regarding the death, the crash is the
 
	cause in fact.
 
	intervening cause.
 
	unforeseeable cause.
 
	superseding cause.
0.5 points   
Question 7
1.	Security Guns & Ammo, Inc. tells its salespersons not to load a gun during a sale. Bert, a salesperson, loads a gun during a sale. The gun fires, negligently injuring Kathy, who is in the store. Security is
 
	not liable, because Bert was not acting within the scope of employment.
 
	not liable, because employers are not responsible for their employees' torts.
 
	liable under the doctrine of respondeat superior.
 
	liable under the doctrine of res ipsa loquitur.
0.5 points   
Question 8
1.	Donna applies to Eagle Corporation for an administrative assistant's job, which requires certain typing skills. Donna cannot type but tells Eagle that she is willing to learn. Eagle does not hire Donna, who later sues. To successfully defend against the suit under Title VII, it would be best for Eagle to show that
 
	being a member of the majority is a BFOQ.
 
	Donna was not willing to learn to type.
 
	Eagle has a valid business necessity defense.
 
	Eagle's work force reflects the same percentage of mem¬bers of a protected class that characterizes qualified individuals in the local labor market.
0.5 points   
Question 9
1.	Great Goods, Inc. is a consumer products firm. As a source of authority for its organization and functions, its articles of incorporation are
 
	a primary source.
 
	a secondary source.
 
	a source of final resort.
 
	not a reliable source.
0.5 points   
Question 10
1.	Frankie attempts to incorporate his company as Frankie's Pizza Co., Inc. However, when he sends the articles of incorporation to the state for approval, he carelessly forgets to list the name and address of the registered agent for the corporation, which is a statutory requirement to incorporation. The articles of incorporation otherwise is fine, but the state rejects the document due to the missing information, and tells Frankie to submit the document again. However, in the meantime, Frankie, mistakenly thinking that he had a corporation formed, had been doing business as Frankie's Pizza Co., Inc, and, unfortunately, one of Frankie's delivery persons, while making a pizza delivery, negligently caused an automobile accident, injuring a third party. The third party sues Frankie personally for damages for the injuries sustained in the accident, contending that his corporation does not exist. Frankie's best defense to such a lawsuit in most states would be:
 
a.	The "piercing the corporate veil" doctrine
 
b.	The de facto corporation doctrine
 
c.	The de jure corporation doctrine
 
d.	The corporation by estoppel doctrine.
0.5 points   
Question 11
1.	Micro Company makes and sells computer chips. Like most corporations, Micro's officers typically are hired by the company's
 
	directors.
 
	incorporators.
 
	officers.
 
	shareholders.
0.5 points   
Question 12
1.	Java Company hires Ken to manage one of its stores. Although their employment agreement says nothing about Ken being able to hire employees to work in the store, Ken has the authority. This is
 
	apparent authority.
 
	express authority.
 
	imagined authority.
 
	implied authority.
0.5 points   
Question 13
1.	Assume that there is a provision in the Colorado state constitution that conflicts with a federal statute passed by the U.S. Congress and enacted into law. Which is TRUE?
 
a.	The Colorado constitutional provision will prevail since states existed before the national government; and thus the federal law is invalid.
 
b.	The federal statute will control due to the Supremacy Clause in the U.S. Constitution and thus will make the state constitutional law provision invalid.
 
c.	In Colorado, the state constitutional provision will prevail; but the federal statute will apply in the other 49 states.
 
d.	Whichever was passed first will control over the other in Colorado.
0.5 points   
Question 14
1.	Pursuant to the commercial speech doctrine under U.S. constitutional law:
 
	commercial speech is not constitutionally protected since the motive is for business to make money
 
	commercial speech is given the same degree of protection as political speech since it is speech
 
	commercial speech is not constitutionally protected since most commercials on television, especially around dinner-time, are loud, annoying, and gross
 
	the advertising and marketing of adult, vice-like products and services, such as tobacco, liquor, and gambling, can be constitutionally protected.
0.5 points   
Question 15
1.	Ed borrows $1,000 from First State Bank. Fran, a good friend, orally promises the bank that she will repay the debt if Ed does not. The promise generally is enforceable by
 
	Ed only.
 
	Ed or First State Bank.
 
	First State Bank only.
 
	neither Ed nor First State Bank.
0.5 points   
Question 16
1.	Carl holds himself out as a partner of Delta Associates, a partnership, even though he has no connec¬tion to the firm. Carl obtains a loan based on the misrepresentation. Carl's default on the loan results in
 
	Carl and Delta's joint liability for the amount.
 
	Carl's sole liability for the amount.
 
	Delta's sole liability for the amount.
 
	neither Carl's nor Delta's liability.
0.5 points   
Question 17
1.	Local Delivery Company and Regional Trucking, Inc., attempt to enter into a contract in electronic form. Under the Electronic Signatures in Global and National Commerce Act (E¬SIGN Act), because this contract is in electronic form, it
 
	may be denied legal effect.
 
	may not be denied legal effect.
 
	will be limited to certain terms.
 
	will not be enforced.
0.5 points   
Question 18
1.	Gamma Company agrees to sell software to Holly from Gamma's Web site. To complete the deal, Holly clicks on a button that, with reference to certain stated terms, states, "I agree." The parties have
 
	a binding contract that does not include the terms.
 
	a binding contract that includes only the terms to which Holly later agrees.
 
	a binding contract that includes the terms.
 
	no contract.
0.5 points   
Question 19
1.	In the tort of negligence, the doctrine of proximate cause:
 
	refers to the jury approximating degrees of fault among culpable parties
 
	protects careless defendants from the foreseeable consequences of their actions
 
	refers to the jury approximating the extent of emotional distress damages suffered by an aggrieved party
 
	protects careless defendants from the unforeseeable consequences of their actions.
0.5 points   
Question 20
1.	Rowan, a basketball star, signs a two year contract to play basketball for the Bullets for $200,000 per game. Right before a "big game," Rowan goes to the owner of the team and says that he will not play at all unless the owner pays him and additional $10,000 per game. The owner, being desperate, reluctantly agrees and promises to pay Rowan more. Now that the season is over, Rowan demands his additional compensation of $10,000 per game; but the owner of the Bullets refuses to pay. Rowan sues the owner for breach of contract. The most likely result of the lawsuit is that:
 
a.	Rowan wins since this is a valid modification of a pre-existing earlier contract.
 
b.	Owner wins since a contract can never be modified whatsoever, even if the parties agree to the modification.
 
c.	Rowan wins since this is a valid modification of a contract pursuant to the Uniform Commercial Code, which needs no new consideration to be enforceable.
 
d.	Owner wins since Rowan was under a prior duty to play basketball, so the owner's new promise to pay more money for the same act was not detriment on Rowan's part, and consequently was not supported by consideration on Rowan's part, and thus the owner's promise is not enforceable.