PART 1 of final exam

Chose correct answer for each one it is multiple choice.

Martha started a flower shop as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true:

    Martha- business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.

    Once Martha terminates the sole proprietorship, the business creditors cannot even get the $50,000.

    Martha is personally liable for the additional $75,000.

    Martha- business creditors can collect only the $50,000 of business assets.

2,Which of the following is likely to be a breach of a corporate officer-/director- duty of care?

    Failing to foresee a severe rise in the interest rate.

    Failing to anticipate a drop in consumer demand of the company- product.

    Failing to predict the startup of a new competitor.

    Failing to make a reasonable investigation of relevant facts.

3. If a judge rules that a party lost its case because of the Statute of Frauds, the judge has essentially stated which of the following?

    The losing party purposely deceived the other party about a material fact.

    The losing party will not be allowed to introduce evidence to contradict a written agreement.

    The losing party was found by the court to have lied, and therefore will lose the case.

    The losing party cannot enforce an oral contract that should have been in writing.

4. The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring:

    That certain activities are classified as per se violations.

    That mergers be allowed if United States competitiveness in world markets is improved.

    That failing companies are rescued through mergers whenever possible.

    That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms.

5. ________ is a form of alternative dispute resolution that is often used when the parties involved do not want to face one another.

    Conciliation

    Mini-trial

    Negotiation

    Fact-finding

6.Paul purchased a deluxe motorhome from Wide Open Spaces Motorhomes. In a product liability suit against Wide Open Spaces Motorhome Corporation, Paul must show which of the following in order to recover:

    Wide Open Spaces was the manufacturer of the motor home and not just a dealer.

    A defect made the motorhome unreasonably dangerous, leading to an injury.

    The negligence of Wide Open Spaces led to Paul- injury

    Paul was not misusing the motorhome when the injury occurred.

7. A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as;

    The bar to patents doctrine

    The public service doctrine

    The fair use doctrine

    The public use doctrine

8. In a guaranty arragement, the guarantor:

    Promises to pay the debt of another contingent up the happening of some external event.

    Promises to pay the debt of another if that person does not pay.

    Promises to assume responsibility for the quality of goods.

    Promises to pay the debt of another in any circumstance

9. Which of the following is true about the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) as they related to health insurance?

    Upon termination of employment, a health insurance provider must allow the employee to participate in the same health insurance coverage program that the employee participated in while working for the employer, although the employee must pay for it.

    Certain companies are required to provide group health insurance coverage to their employees.

    Employers must make the same group health insurance available to all employees.

    Upon termination of employment, an employer is required to pay, for a limited time, for the former employee- health insurance coverage under the same terms that it had been paying for it while the employee worked for the employer.

10. This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case.

    Conciliation

    Mini-trial

    Fact-finding

    Judicial referee

11. What are sellers responsible to provide for regarding the assembly of products they sell?

    Rebates

    Adequate instructions for safe assembly

    Adequate instructions for use of the product

    Adequate instructions for safe assembly and use of the product.

12. Sam sells property to Betty and delivers Betty a deed that says "This property is conveyed to Betty so long as she never operates a bar on the premises.” If she operates a bar on the premises, Sam Seller may take possession of the property. The type of interest that Betty Buyer has acquired is a:

    Fee simple remainder

    Fee simple defeasible

    Fee simple absolute

    Fee simple limited

13. Under the Anti-Cybersquatting Consumer Protection Act, which of the following is true?

    A plaintiff must show that the defendant acted in bad faith in order to recover.

    Penalties are imposed for obtaining any domain name that infringes on a valid trademark.

    Domain names are granted only after ensuring that they do not infringe on a valid existing trademark.

    Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity- name.

14. The landlord has the right to enter the leased premises:

    To inspect for waste

    Only if specifically provided in the lease

    To inspect for illegal use

    To make necessary repairs

15. Under the Uniform Computer Information Transactions Act, tender of performance is:

    A party- unequivocal indication of intent to perform.

    The offer to complete the performance of contractual duties made by a party who is willing and able to perform.

    A party- agreement to perform

    The actual completion of a party- obligations under the contract.

16. Which is true about the two kinds of discrimination that are actionable under Title VII?

    Disparate impact and disparate treatment are both based on how the employer treats a specific individual.

    Disparate treatment refers to individuals and disparate impact refers to protected classes.

    Disparate impact and disparate treatment are both based on how the employer treats a protected class.

    Disparate impact refers to individuals and disparte treatment refers to protected classes.

17. George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer, MNO Inc. recover as damages?

    Only amounts paid to the employee for which the employee has not yet done the work.

    Nothing, because courts do not order anyone to perform a job against his or her will.

    All amounts already paid to the employee under the contract.

    The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.

18. Which for of real property ownership includes the greatest degree of ownership?

    Absolute life estate

    Fee simple absolute

    Fee simple defeasible

    Fee simple limitless

19. The legal effect of the presence of a superseding event is that:

    The burden of proof shifts from the plaintiff to the defendant

    Intent must be proven in addition to elements of negligence

    The plaintiff and defendant will share liability

    The defendant is not liable even if the plaintiff has proved all the elements of negligence.

20. Which of the following is a distinguishing feature of a common law legal system?

    The making of law by the judges and the following of precedent

    An appeal process

    Requiring guilt be proven beyond a reasonable doubt

    The sole source of law is a comprehensive civil code