Multiple Choice: Read the following questions carefully and choose the letter that best describes the answer.

1.Steve owns a house. He wants to allow his brother to live in the house for the rest of his brother's life and then have it convey to his (Steve's) children.What type of interest should Steve convey to his brother?

a. Fee Simple

b.Joint Tenancy

c. Tenancy for Years

d. Life Estate

2.John and Steve own an apartment building as joint tenants.John sells his share to his friend Mary and then John and Mary die.What happens to the interest John sold to Mary?

a. Conveys to Steve

b.Conveys to John's wife

c. The joint tenancy is dissolved and the property is sold

d.Conveys through Mary's estate

3.Steve rents an apartment for 1 year.When the year is over, he does not move out. Steve is:

a. A tenant at will

b.A period tenant

c.A tenant at sufferance

d.A renewal tenant

4.Steve and Mary verbally form a general partnership to open a pizza shop.Steve contributes $100,000 in cash. Mary contributes equipment worth $50,000. At the end of the first year of operations, the shop made a $75,000 profit. The parties will divide the profits.How much will Mary get?

a.$25,000

b.$37,500

c. $0

d. $50,000

5.Steve and Mary form an LLC. Absent a choice that they make in the LLC agreement, how will the LLC be taxed by the IRS?

a.As a corporation

b.As a partnership

c.Members of an LLC are tax exempt

d.None of the above

6.Profits passed by a corporation to its shareholders are called:

a. Retained earnings

b.Payments-in-kind

c. Dividends

d. Compensatory shares

7. A corporation, the shares of which are held by a small number of people, typically a family, is called:

a.LLC

b.LLP

c.Close corporation

d. Public accommodation

8.Which Federal statute governs the initial sale of stock by a business?

a.'34 Act

b.Hart-Scott-Rodin Act

c.'33 Act

d. Sherman Act

9.Which SEC Rule governs Insider Trading?

a.Rule 10(b)-3

b. Rule 144

c. Rule 10(b)-5

d. Rule 16(a)(3)

10.Bill is the CEO of Newco.Bill tells his wife Mary about a major acquisition before the news is public and tells her to buy stock.She does.Who has committed a crime?

a. Bill

b. Mary

c. Bill and Mary

d. Neither Bill or Mary

11.What law governs bargaining with labor unions?

a.National Labor Bargaining Act

b.Fair Labor Standards Act

c.National Labor Relations Act

d.Occupational Health and Safety Act

12.Mary starts a new job with Newco, a small business with 10 employees. After working two weeks, her child becomes ill and Mary requests time off to care for her child. Newco refuses and fires Mary when she doesn't come to work. What law has Newco violated?

a.Fair Labor Standards Act

b.None

c.Family Medical Leave Act

d.OSHA

13.Mary owns a pizza shop and wants to hire men only. She makes a rule that all cashiers must be able to lift 100 lbs. over their heads to qualify for a job. Susan applies and fails the test.She sues Mary. Her claim will be for:

a.Disparate Impact

b.Disparate Treatment

c.Quid Pro Quo

d.Hostile Work Environment

14.What is the name of the Affirmative Defense that an employer can advance against sexual harassment claims?

a.Cruz/Manuel Defense

b.Pratt Whitney Defense

c.Ellerth/Faragher Defense

d.None of the above

15.What does ERISA govern?

a.Immigration

b.Overtime

c.Pensions

d.Worker Safety

16.John is an independent contractor hired by Mary to paint her house.While at the house, Mary's dog, which Mary forgot to leash, bites John causing him to incur doctor's bills and time off from work.John can bring what type of claim again Mary?

a.Intentional Tort

b.Worker's Compensation

c.Suit for negligence

d.Breach of contract

17.Jim is Mary's friend and goes to a car dealer without her knowledge and negotiates for Mary to buy a car to be delivered to Mary.When the dealer delivers the car, Mary accepts the keys and uses the car for a week until she returns it claiming Jim was not her authorized agent.The dealer sues Mary.What is the dealer's best argument?

a.Apparent authority

b.Express agency

c.Ratification

d.Implied authority

18.What is the principle by which one nation defers and gives effect to the laws and judicial decrees of another nation?

a.The Act of State Doctrine

b.Sovereign Immunity

c.Comity

d.Law of Treaty

19.In a tort case, damages for medical bills are called:

a.General Damages

b.Special Damages

c.Punitive Damages

d.Ancillary Damages

20.The case, discussed in depth in the materials and in class, that established the rules about Proximate Cause, is:

a.Chevron

b.Palsgraf

c.Batson

d.Connelley

21.Steve writes a letter to the Washington Post claiming Mary is a thief. She is not. Steve has committed:

a.Libel

b.Slander

c.Assault

d.Battery

22.Mary dislikes Steve and charges at him to hit him with a baseball bat.She swings and barely misses Steve's head.Steve can sue for?

a.Battery

b.Attempted murder

c.Assault

d.Negligence

23.What duties does an agent owe its principal?

a.Notification

b.Accounting

c.Loyalty

d.All of the above

24.Which Federal agency regulates private spaceports?

a.Department of Defense

b.Federal Aviation Administration

c.Central Intelligence Agency

d.National Security Agency

25.The document that new employees in US business must complete to demonstrate an ability work legally from an immigration perspective is called?

a.W-2

b.I-9

c.W-4

d.Form 1099

SHORT ANSWER: You may write in narrative form or use bullet points, where appropriate.Use of examples is encouraged.

1.John is lifting weights at the gym and negligently drops the barbell. The force causes vibration in the walls that causes a painting down the hall to fall off the wall and injure Mary.She sues John.How will the court determine John's liability from a "Proximate Cause" standpoint?What case from the reading best sets out how proximate cause will be judged?

2.John and Mary are in a car accident.John is 75% at fault.How will the suit result differ between comparative and contributory negligence states?

3.Explain the difference between an employee and an independent contractor.

4.John is a truck driver who makes $20/hour.He has worked 38 hours during the week but his boss asks him to work Saturday because one of the regular Saturday drivers is sick.John works 4 hours Saturday.How much pay will John get for Saturday under the FLSA?

5.Explain the difference between Insider Trading based upon a tipper/tippee theory and a misappropriation theory and give one example of each.

6.Explain the legal concept of a bailment and give one example of a bailment using proper terminology.

7.What is the special type of property ownership reserved for married couples?If property is owned in this manner and one spouse dies, what happens to the property?What is necessary for one spouse to sell their interest during the ownership?

8.If I take a temporary job in New York City that will last for two years, after which I will return to my home in Bethesda and I want to rent an apartment for my time in New York, what is the best type of tenancy for me to take and why?List two other types of tenancies that are not as effective and why.

9.A consumer buys a television made by XYZ company from Town Electronics.The consumer hosts a party to watch a football game.The TV explodes, injuries the consumer (who becomes paralyzed from the neck down), guests and damages the house.The consumer's wife is not injured.Describe what tort suits may be brought, by whom, on what theories and the damages that may be sought and from whom?

10.John is a 41 year old white male who works for NewCo.His female boss, a 38 year-old female Vice President named Mary, has tried to seduce John several times, but John has rebuffed her advances.Although everyone in the company gets a 3 percent raise, Mary gives John only a 1 percent raise, telling him that "you know what you need to do to get a bigger raise."John complains to the President of NewCo, who tells John to "don't be an old fart, do what you need to do to get ahead in this company."John says he will not, and the next day, he is fired and is replaced by a 38 year old man who John later learns slept with Mary and got a raise the next day.What claims does John have against NewCo?Please make reference to the appropriate statutes by name.