EXAM 1 LEGAL ENVIRONMENT OF BUSINESS

TRUE/FALSE

1.Personal jurisdiction over an out of state defendant is based on a sliding scale standard.

2.Only a jury, not a judge, can rule on a question of law.

3.The Constitution created a confederate form of government as opposed to a federal form of government.

4.Preemption means that a valid federal statute overrides a competing state statute.

5.Speech that harms the good reputation of another is considered unprotected speech.

6.A civil law system is based on stare decisis.

7.Expropriation is government seizure for compensation while confiscation is government seizure without compensation.

8.Wrongs and compensation are the basis of all torts.

9.Conversion is not the civil side of theft crimes.

10.Negligence torts require duty, breach, causation, and damages.

11.The law imposes strict product liability as a matter of civil defense.

12.According to Section 402A of the Restatement of Torts(second), strict liability is applied to sellers of goods, including but not limited to manufacturers.

13.Independent contractors are employees because the work is done by a specialist without supervision.

14.In determining employment status, the IRS considers degree of control of the business over the worker to be paramount.

15.Agency, though not in writing, can be established by ratification.

16.Offline, but not online ads, must be truthful and not misleading.

17.In Paduano v. American Honda, the court of appeals determined that by stating the owner need not do anything special to achieve fuel economy, Honda subjected itself to state based deceptive advertising laws.

18.All restaurant chains are required to post caloric content of menu items.

19.The Sherman Anti-Trust Act protects against restraint of trade and monopolies.

20.Both the DOJ and FTC can criminally prosecute violations of the Sherman Act.

21.A sole proprietorship is the simplest form of business.

22.A partnership by estoppel creates partnership rights but avoids liability.

23.Fiduciary duties consist of care and loyalty.

24.If a corporation is deemed to be merely an alter ego of the share holder, the court may pierce the corporate veil.

25.The most significant use of Family limited liability partnership is in agriculture.

MULTIPLE CHOICE

26.Federal jurisdiction based on diversity of citizenship requires that the plaintiff and defendant be residents of different states and the amount in controversy must exceed:

A.25,000

B. 50,000

C. 75,000

D. 100,000

27.What are the three elements of standing to sue?

A.Harm, factual analysis and remedy

B.Harm, causation and remedy

C.Factual analysis, causation and remedy

D.Harm, factual analysis and causation

28.What is the formal term for requesting that the Supreme Court hear a case?

A.writ of mandamus

B.voire dire

C.habeus corpus

D.writ of certiorari

29.The Supreme Court ruling that if interstate trade is being pinched, it doesn't matter if the squeeze is local, is grounded in what Constitutional clause?

A.commerce clause

B.checks and balance clause

C.federalism clause

D.supremacy clause

30.Both the 5th and 14th Amendments contain?

A.strict scrutiny clause

B.due process clause

C.preemption clause

D.establishment clause

31.Three main sources of international law are international customs, treaties and agreements, and .

A.international organizations

B.international forums

C.intercontinental codifications

D.none of the above

32.The principle of refers to legal reciprocity.

A.preemption

B.controversy

C.comity

D.comedy

33.What are three types of export control?

A.export quotas, restrictions on technology exports, and incentives/subsidies

B.import quotas, restrictions of technology imports, and incentives/subsidies

C.export quotas, restrictions on technology imports, and incentives/subsidies

D.import quotas, restrictions of technology exports, and incentives/subsidies

34.The three elements of the business tort of wrongful interference with a contractual relationship are a valid contract, third party must know of the contract and .

A.third party committed negligent inducement

B.first party committed negligent inducement

C.third party committed intentional inducement

D.both A and B

35.Who wrote the opinion in Palsgraf v. Long Island Railroad Co.?

A.Oliver Wendell Holmes

B.Benjamin Cardozo

C.Antonin Scalia

D.Thurgood Marshall

36.Activities such as blasting, storing explosives, and the keeping of are all examples of activities that are subject to strict liability.

A.bees

B.heavy equipment

C.wild animals

D.beef cattle

37.According to Justice Scalia in Bruesewitz v. Wyeth, LLC., compliance with immunized the manufacturer of a vaccine from liability.

A.regulatory requirements

B.arbitration clause

C.warning label standards

D.action committee mandates

38.Which of the following represent defenses to products liability?

A.preemption

B.assumption of risk

C.product misuse

D.all of the above

39.An agent's authority can be?

A.actual (express or implied)

B.apparent

C.neither A nor B

D.Both A and B

40.According to Joel v. Morrison, a from the master's business will result in responsibility, but a will not hold the master liable.

A.diversion/detour

B.frolic/detour

C.detour/frolic

D.diversion/frolic

41.The Truth in Lending Act provides for disclosure requirements, credit card rules, and

.

A.equal credit opportunity

B.safety standards

C.tainted foods regulations

D.both B and C

42.In Jerman v. Carlisle, et al., the Supreme Court relied upon which of the following legal maxims?

A.caveat emptor

B.respondeot superior

C.to the victor goes the spoil

D.ignorance of the law is no excuse

43.According to Justice Kennedy in Leegin v. PSKS, what can stimulate inter brand competition rather than being viewed as an antitrust violation?

A.maximum wholesale pricing

B.minimum resale pricing

C.maximum resale pricing

D.minimum wholesale pricing

44.What doctrine do the courts use in determining restraints of trade that are not considered per se violations?

A.market power

B.horizontal restraint

C.group boycott

D.rule of reason

45.In Carrier v. Outokumpu Oyj, it was determined that U.S. federal courts have jurisdiction over for violations of the Sherman Act.

A.foreign cartel

B.nonprofit organization

C.bankruptcy trustee

D.none of the above

46.If both partners must be sued, the court follows?

A.joint and several liability

B.dissociation

C.joint liability

D.indemnification

47.Distributorships and chain style are examples of .

A.partnership

B.limited liability corporation

C.franchise

D.nonpartner agents

48.According to Venture Sales v. Perkins, judicial dissolution may be granted if the business of the entity cannot be conducted in a manner.

A.reasonably practicable

B.defined term of time

C.winding up

D.six month time frame

49.What is a hybrid form of business designed mostly for professionals?

A.FLLP

B.LLP

C.LLLP

D.A but not C

50.A limited partnership has a limited partner(s) and at least one partner.

A.general

B.silent

C.financial

D.representative