Business Law

I.Multiple Choice: Circle the letter of the answer that most correctly completes the sentence or answers the question.

1.The Fair Labor Standards Act requires

a.wages to be paid at or above minimum wage

b.overtime for all hours over 40 in a given week

c.limited hours for employees under the age of 16

d.a and b

e.all of the above

2.You own a mobile veterinary business, "Vet to You." You design a logo for your business cards, car door magnet, invoices, website and other marketing materials. The logo includes freehand drawing you created (of your favorite animal, a baby pygmy goat) as well as the words "Vet to You" in a specific font and color scheme. You will use the drawing both together with the words "Vet to You" and alone in your business materials. Which of the following should you do?

a.trade mark the logo

b.service mark the logo

c.copyright the drawing

d.a and c

e. b and c

f.all of the above

3. An employee is protected under the ADEA if

a. female

b.male

c.disabled

d.over age 40

e. c and d

4.An agency relationship can be end at any time unless

a.the agent has substantially performed

b.the agency is coupled with an still-current interest

c.the principal doesn't agree to the agent's request to terminate the agency

d.all of the above

5.If a work is copyrighted, which of the following are true?

a.the owner of the copyright has the exclusive right to use and profit from the work

b. schools and news media can engage in "fair use" of the work without violating

copyright laws

c.any use other than "fair use" requires a license

d. all of the above

6.Which of the following can be trademarked?

a.the color red

b.the smell of a yankee candle

c.the pink and fuchsia stripe pattern on a Victoria's Secret package/bag

d.the phrase "you've got mail" (associated with AOL email service)

e.b, c, and d

f.c and d

g.all of the above

7.The Uniform Commercial Code would apply in which of the following circumstances:

a.you purchase a bicycle from the local bike shop

b.you arrange with the bicycle shop to teach you how to change the tires on your new bike

c.you buy a house

d. you hire an HVAC company to install central air conditioning in the house

e.a and c

f.all of the above

8.Which of the following is not expressly within a class protected against discrimination under federal law?

a.being female

b.being Jewish

c.being homosexual

d.being 45

e.none; all of the above are expressly included within protected classes

9.If you own a business and you want the business to survive the death or bankruptcy of yourself, what should you do?

a.incorporate

b. add another owner

c.become the general partner

d.be a sole proprietorship

e.a and b

f.b and c

g.any of the above

10.ADA might require, as an accommodation for a qualified employee with a disability,

a. temporary light duty

b.purchase of certain devices for the person to use at work

c.unpaid leave

d.b and c

e.all of the above

11. Title to property can be acquired in which of the following ways?

a.descent

b.exchange for consideration

c.delivery without consideration but with intent (by giver) and acceptance (by recipient)

d.growth/increase in value

e. possession

f. all of the above

12.Which of the following is a bailment?

a. leaving clothing with the dry cleaner

b.leaving your car and keys with the valet

c. loaning your stump grinder to your neighbor

d. renting your beach house weekly over the summer months

e.a, b and c

f. all of the above

13.In a deed, my father grants to my mother a life estate in the home I grew up in. He does not specify what happens upon her death (at the end of the life estate). Who owns the property at her death, and what is the type of interest that person held during her life?

a. my father's children, owned a freehold during her life

b. my father's children, owned a remainder during her life

c. my father, owned a remainder during her life

d. my father, owned a reversion during her life

EXTRA CREDIT: Under the fact pattern above, what if my father dies before my mother, who owns what interest at my mother's death?

14. You enter a lease for an apartment for one year. It has a provision by which it automatically renews if neither party gives notice at least 30 days before the end date. Neither party gives notice. What happens when you do not vacate at the end of the term?

a. you get stay for another year as long as you pay rent

b. the landlord can kick you out at any point

c. the landlord can only kick you out if you breach the lease (e.g., fail to pay rent, damage the premises, etc)

d.you get to stay for only 30 more days

e.a and c

15.Which of the following is an easement that will be recognized by law/enforced?

a. there is a deed from the owner to the electric company that permits construction and maintenance of lines along the property in a specific location

b.there is a deed that restricts owners in the subdivision from maintaining "livestock," which is defined as including pigs, chickens, cows and horses, on their property

c.Mr. A subdivides 20 acres into two 10 acres parcels, both of which have frontage on a public road

d.Mr. A subdivides his 20 acres into 4 5 acre parcels, only two of which have frontage on a publicroad

e.your neighbor built a fence 20 years ago in the wrong location; you realize the mistake when you bought the property 15 years ago and have been asking him to rebuilt it in the correct location for years, but he has not

f. a, c, and e

g.b, c, and d

h.all of the above

II.True/False:Circle "T" for True or "F" for False.

EXTRA CREDIT (1 pt each) if you correct any false statements to make them true (except no credit if you just insert the word "not.")

1.TF"At will" employment means the employee can be terminated at any time

for any reason, provided the termination does not violate any laws.

2.T FAn employee's only entitlement to leave for a medical condition is the 12

weeks allowed under the FMLA.

3.TFOSHA provides benefits (in the form of compensation) to

employees who are injured on the job.

4.TFThe creator of a literary, artistic, musical or dramatic work always owns

the copyright on that work.

5. TFIf you are pregnant, you are protected against discrimination in the

workplace under the Americans with Disabilities Act.

6.TFOnce incorporated, the corporation can transact business in any state.

7.TFThe Equal Pay Act prohibits discrimination in pay on the basis of race,

color, gender, religion or national origin against discrimination in pay.

8.TFBoth the principal and the agent must have legal capacity in order for an

agency to be formed.

9. TFStates are bound by the federal constitution, laws and regulations, and

cannot create laws that expand the benefits and rights provided under the federal regime.

10.TFAll trademarks, copyrights and patents must be registered with the

appropriate federal agency in order to be protected.

11.T FCourts will use "course of dealing" to interpret agreements, which means

courts will evaluate the practice or method of dealing that has been regularly observed or followed in the overall location or trade.

12.TFImplied warranties exist as a matter of law.

EXTRA CREDIT: Identify both implied warranties that exist under the UCC.

III.Fill in the Blank:Place in the blank the word that most correctly completes the sentence.Each word will be used only once, if at all.

cease and desistdiscriminationgarnishment

ultra viresinfringementEEOC

exculpationstayrecover

Dept. of LaboraccommodationOSHA

mitigationcollectionharassment

risk of lossbailmentcover

leasetenancy in commonjoint tenancy

tenancy by the entiretyeasementrestrictive covenant

1.Employment action taken because of a "protected class," such as refusal to interview, failure to hire, failure to promote, denial of equal benefits, and termination, is ____________.

2.An employee's wages can be taken by court order to pay a judgment debt. This process is called _________________.

3.If an agent acts beyond the scope of his or her agency, that act is ________________.

4. The __________________ is the primary federal agency that creates and enforces regulations about harassment and discrimination

5.__________________ is the unauthorized use of a trademark or copyright.

6.An order requiring someone to stop doing a specific act is a _________________.

7.An employer may be required to provide ___________________ to persons who have a disability.

8.The _______________ is the federal agency that creates and enforces regulations about safety in the workplace.

9.________________ occurs when an employee is subjected to severe and pervasive ridicule, off-color jokes, unwanted touching and other unwelcome and objectively offensive misconduct in the workplace because of the employee's membership in a protected class.

10.Under the UCC, when a buyer in good faith obtains substitute goods because the seller has breached, that action is ______________.

11.Temporary transfer of possession, without transfer of title, of personal property is a ______________.

12. Temporary transfer of possession, without transfer of title, of real property is a ____________.

13. Holding property in a _______________ permits any two or more individuals to hold property so that the survivor(s) retains title to the whole upon the passing of the other(s).

14. Holding property in a _____________ does not allow one tenant to retain possession of the whole upon the death of the other.

15. Holding property in a _________________ includes the right of survivorship but is reserved for two people who are married.

16.If a deed includes a restriction on the type of surface you use to construct your driveway, that is considered a/an _______________.

EXTRA CREDIT (potential 3 pts): In question 10, if the buyer has to pay more for the substitute goods, can the buyer require the seller to pay the difference? Yes or No.

Can the buyer recover other additional damages? Yes or No. If yes, what types?

What if the buyer gets the goods cheaper than the contracted price with the seller?

IV.Essays:

Choose three (3) of the five (5) questions.Write logical, well-organized and legible response to each question you select. Be specific and thorough.

EXTRA CREDIT: If you correctly answer more than 3 questions, credit will be given for any correct responses in excess of 3. Be specific and thorough even in your Extra Credit answers!

1.An employee of Glide the World is burned by spilling airplane fuel while fueling a plane, because safety stops and covers are not installed properly on your fuel lines. What legal concerns do you have? What remedies, if any, does the employee have?

2.Three years into your successful operation of Glide the World (in Waynesboro), you receive a cease and desist letter from an attorney who represents Glide the World, which is a small company in northern California that manufactures wooden "glider" rocking chairs. The attorney provides documentation that the rocking chair company has trademarked "Glide the World." Do you cease and desist? Why/why not? Would the rocking chair company prevail in an infringement case against you? Why/why not?

3.You decide that you will start requiring vision tests of your employees, and adopt a policy that you will either not hire or terminate anyone who does not have 20-20 vision uncorrected (that is, vision is not 20-20 without glasses). This is a legal problem. Is the test a problem? Why? Is the policy a problem? Why?

4.Bob has been an at-will employee of Glide the World for some time. For years, he drinks a lot at night and often has been late (and hung over) when he arrives to work. However, he has recently joined AA and has asked you to shift his schedule slightly so he can make the meetings. His attendance and attention at work have improved. However, his unmarried son recently returned home from active military duty with a fairly acute injury. Bob is widowed and has been missing work to care for his son and to carry him to bi-weekly appointments.

Your HR manager has reached her wits end with Bob. She recommends that you fire him for the schedule change and the absences. Do you? Why? What are the legal risks if you do?

5.You do not fire Bob. However, three months later, the bookkeeper comes to you claiming that Bob has been patting her on the behind and attempting to hug her in the office when you are not present. The bookkeeper quits her job when she finishes telling you about the inappropriate touching. You are in disbelief at this report, because you had no idea and never suspected Bob would behave in such a manner. However, when you confront Bob, he admits he has just been lonely and, though he now realizes it was very bad judgment on his part, he did touch the bookkeeper, though not as often as she claims and based on her reactions, he always thought she didn't mind (because she never said "stop that!").

Now do you fire Bob? If you keep Bob, what is your potential liability? Do you have any potential liability to the bookkeeper? Why or why not?