Question 11

A fiduciary duty is owed by whom?

Group of answer choices

A principle to his or her agent

A director to his or her shareholders

A manager to the employee

All the above

A shareholder to his or her family members

Question 12

Paul has outstanding debts but owns investments that are profitable. Paul needs help keeping his debts from overwhelming him but he wants to make sure he keeps his investments and his current assets. He agrees to set up a payment plan with the bankruptcy court and creditors for the next five years to pay off his debts. This is an example of?

Group of answer choices

Chapter 13 Bankruptcy

Chapter 15 Bankruptcy

Chapter 11 Bankruptcy

Chapter 7 Bankruptcy

Chapter 12 Bankruptcy

Question 13

Hector is a manager at XLY, Inc. a company that deals with oil contracts. On May, Hector notices that a recent oil company, Center Pacific Oil, is offering a new contract that would generate millions of dollars in revenue. Hector's cousin, John, recently started working at Center Pacific Oil. Hector, knowing that he has the insights of the new company he quickly realizes that he can acquire the contract for himself. If he acquired the contract for himself, he can make millions and start his own company while competing against XLY. If Hector decides to pursue the contract he would violate?

Group of answer choices

Duty of Care

No rule at all

Duty of Loyalty

Business Judgement Rule

Respondeat Superior

Question 14

What is it called when a business offers the ability to protect an owner from any possible liabilities/lawsuits and when the income/losses go directly to the owners of the company?

Group of answer choices

Piercing the Corporate Veil and Double Tax

Piercing the Corporate Veil and Tax Formalities

Limited Liability and Flow-Through Tax

Unlimited Liability and Formalities

None of the Choices

Question 15

Bob, a man who takes pride in his vehicle, decided to buy a brand new car lift. Bob wanted to lift his 5,000lb, 1975 Mustang, so that he can work on the car's bottom side. On the box of the car lift it states that it can easily lift up to 10,000lbs. The second day of using the car lift, the lift malfunctioned and the car fell on top of Bob. Bob has rushed to the hospital and spend months recovering from physical damages. In the middle of discovery, it was discovered that when designing the car lift the company decided to cut cost by using weaker metal instead of the high grade metal used by all the other companies. If Bob sues the company, what would be the easiest theory of torts to use?

Group of answer choices

Breach of Contract while arguing Reasonably Useful and Safe

Product Liability while arguing Manufacturing Defect

Strict Liability Tort while arguing Explosives

Negligence while arguing Negligence Per Se

Strict Product Liability while arguing Design Defect

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Question 16

John goes to AutoZone to buy a special motor cylinder for his Honda. The store clerk asked him what was the year, maker, and model of the vehicle. John said it was a 2010 Honda Accord with four doors. The clerk searched in his computer and then went to the back to get the cylinder. The clerk guaranteed to John that the was the right cylinder for his vehicle. This is an example of?

Group of answer choices

Reasonable Prudent Person Under the Circumstances - Objective Standard

Failure-to-Warn Defect

Implied Warranty of Fitness for Particular Purpose

Express Warranty

Manufacturing Defect

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Question 17

Bob invited his friend over for a neighborhood BBQ. During the BBQ the friend fell on a broken stair and broke his leg. If the friend sues Bob, what is the standard of care that Bob had to uphold?

Group of answer choices

No Bobby Trap

Warn and Fix

None of the Above

Warn or Fix

Reasonable Person Standard

Question 18

Which doctrine states that an employer is at fault for his employee's actions while in the scope of employment?

Group of answer choices

None of the Choices

Promissory Estoppel

Negligence Per Se

Res Ipsa Loquitor

Respondeat Superior

Question 19

To prove negligence, all of the below are needed except:

Group of answer choices

Causation

Duty

Breach of Duty

Intent to harm

Injury

Question 20

Which of the following represents an unintentional tort?

Group of answer choices

Fraud

Battery

Assault

Defamation

Negligence

Question 21

When there is an intentional or recklessly made misrepresentation of an existing important fact, _____ has been committed.

Group of answer choices

Nuisance

Fraud

Negligence

Conversion

Trespass to Land

Question 22

________ is the mental element of a crime; and _______ is the physical element of a crime.

Group of answer choices

Mens Reus; Actus Reus

Actual Causation; Proximate Causation

None of the Choices

Private nuisance; Public Nuisance

Res Ipsa Loquitor; Negligence Per Se

Question 23

Which of the following is not a crime?

Group of answer choices

Transferring unauthorized funds from a corporation into your personal account.

Thinking about killing your neighbor.

Creating a plan to commit a crime with another individual.

Paying a company's employee to give you the company's proprietary secrets

Creating a plan and buy a gun to kill your neighbor

Question 24

_________________ is a corporation that went bankrupt because of the ethical violations its management made. Some of the company's executive board was charged with fraud, because they cooked the books, bribed accounting and law firms, and also commited insider trading.

Group of answer choices

Enron

Blockbuster

Arthur Anderson

Kodak

None of the Choices

Question 25

Which business entity has a double-tax and is considered to have the most liability protection?

Group of answer choices

Sole Proprietorship

Partnership

None of the Choices

S-Corp

C-Corp

Question 26

John runs a local zoo. He does not have all the proper safety equipment and is wondering what would happen if someone got hurt. Would he be liable?

Group of answer choices

None of the Choices

No, a customer would not meet the standards under negligence

Yes, he would be liable under the theory of strict liability tort

Yes, he would be liable under strict product liability tort

No, a customer is considered a licensee and a warning was sufficient

Question 27

The main difference between embezzlement and larceny is?

Group of answer choices

Embezzlement is lower crime of larceny and only considered a misdemeanor

Embezzlement requires the defendant to have the right to the property to begin with while in larceny the defendant never had the right to the property

None of the Choices

Embezzlement is only when the individual is an accountant while larceny applies to everyone else

Embezzlement is considered a tort while larceny is considered a crime

Question 28

When looking at duty of care under negligence, what dictates whether the defendant had a duty to protect the plaintiff?

Group of answer choices

None of the Choices

Did the defendant personally know the plaintiff

Does the defendant operate a business

Defendants are always required to protect plaintiffs

Did the defendant have control over the location

Question 29

The difference between assault and battery is:

Group of answer choices

Battery is actually committing the harmful act

Assault is when a person is in fear of a harmful act

Both are crimes as well as torts

All of the Choices

Question 30

In the legal world a tort is?

Group of answer choices

A delicious pastry

None of the Choices

Liability Protection through business entities

A civil wrong

Punishable by prison time