LAW 531 Final

finalll.docx

Which of the following actions taken by a company with monopoly power would give rise to a cause of action for monopolization or attempt to monopolize?

Being engaged in a natural monopoly in a small market

Getting a patent on a new invention

Buying the entire market of a raw material to prevent competitors from acquiring any

An innocent acquisition of a monopoly

A minor can be obligated to pay the reasonable value for the purchase contract of which of the following?

Insurance

Computer

Life necessaries

Cell phone

Which of the following statements is true of NAFTA?

It disallows any special protection being extended to specific industries.

It disallows NAFTA members from trading with other countries unless a unanimous permission is obtained.

It allows a member country to reimpose tariffs if imports are hurting that country’s economy or its workers.

It has been hailed by economists to be a perfect example of a free trade pact.

Which of the following policies helps a corporate officer from being sued for honest mistakes made on behalf of a corporation?

Business judgment rule

Duty of care

Self-dealing

Duty of loyalty

Armex, a large power plant, has been in the news for a potential defect in the construction of its inner chambers that caused radioactive fumes to escape from the plant to the surrounding areas. This has endangered the lives of the employees at the plant and those staying in nearby areas. What entity is likely to take up this safety violation for corrective action, such as closure of the plant?

U.S. Army Corps of Engineers

Nuclear Waste Policy Commission

Nuclear Regulatory Commission

Federal Nuclear Agency

A(n) ________ is a clause that can be included in the articles of incorporation that permits the corporation to engage in any activity permitted by law.

limited-purpose clause

supremacy clause

ultra vires clause

general-purpose clause

What is the definition of illegal consideration?

Consideration that is a promise to refrain from doing an illegal act

Consideration that violates state usury laws regarding the maximum amount of interest charged

Consideration that is acquired by a party to a contract without fulfilling his or her promise

Consideration that consists of illegally acquired funds

What are the two categories of government regulations that pertain to businesses?

Public law regulations and private law regulations

General government regulations and specific government regulations

Civil government regulations and criminal government regulations

Statutory law regulations and common law regulations

Which of the following doctrines allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice?

Part performance

Undue performance

Promissory estoppel

Equitable performance

Which of the following is true about supramajority voting requirements?

The owners of a determined amount equaling more than one-half of all issued shares must vote for approval of an action.

The owners of at least one-half of all issued shares must vote for approval of an action

Shareholders are entitled to multiply the number of shares they have by the number of directors and cast that total number of votes

A super quorum of shareholders owning at least one-half of all issued shares must vote for approval of an action.

The federal Privacy Act provides that federal administrative agencies can

maintain only information about an individual that is relevant and necessary to accomplish a legitimate agency purpose

maintain any information about an individual

maintain information about an individual for matters concerning any agency purpose

maintain any information about an individual, as long as it is disclosed to the individual

George, Jerry, and Harry are passengers on a flight from Chicago to New York. They injure their legs when their seatbelts do not fasten during takeoff. The airline is sued by all three together for injuries caused and the airline is found to be negligent and is directed by the court to pay damages to the injured parties. Which of the following parties is entitled to recover maximum damages?

George, a retired professor who gets a pension of $50,000 a year

Jerry, a professional football player who earns $2 million a year

Harry, a chartered accountant who earns $200,000 a year

All the men recover the same amount of damages, irrespective of their income or profession

Which of the following statements best represents the distinction between binding and nonbinding arbitration?

Unlike nonbinding arbitration, binding arbitration takes place at a court, in the presence of a judge.

A nonbinding arbitration takes place at a court, in the presence of the jury.

If the arbitration is nonbinding, the decision and award of the arbitrator can be appealed to the courts.

A nonbinding arbitration implies that the arbitrator’s decision must be reinforced by the courts.

In which type of franchise does the franchisor give the franchisee a license to make and sell its products from a retail outlet for an exclusive geographical territory?

Chain-style franchise

Distributorship franchise

Area franchise

Processing plant franchise

John is a country music songwriter who composes a song entitled “Busted, Rusted Heart” in which the melody is similar to that of the 1990s hit by Billy Ray Cyrus, “Achy Breaky Heart.” The words also parallel and make fun of the words in the original song. Does John commit copyright infringement if he performs his song and sells copies of it?

He can neither play the song in any circumstance nor sell it.

John’s song is probably a valid parody and acceptable within the fair use doctrine.

He can play the song in private performances but cannot sell it.

John owns the copyright to his song, so he can sell the song.

Which of the following is true of an arbitration clause?

The clause is mandatory for all client contracts

The clause requires disputes arising from the contract to be submitted to arbitration

The clause requires both parties to sign a settlement agreement

The clause requires the selection of a specific arbitrator

What legal article or theory allows a teacher in a public school to use the copyrighted materials of another person without that creator’s permission?

Fair use doctrine

Creative Assertion Doctrine

Landham Act

Byrne Convention

An entity’s achievement of strategic and operational objectives is subject to

internal events not always within an entity’s control

the discretion of the board of directors

external events and internal events

external events not always within an entity’s control

Allenby Spares, Inc. is a shop that sells spare automotive parts from various manufacturers. A customer buys a faulty brake manufactured by TurboDiezel, Inc. from Allenby Spares and is involved in an accident due to the use of the faulty brake in his vehicle. Which of the following is true of this situation?

Neither Allenby nor TurboDiezel can be held strictly liable for the faulty brake.

Allenby Spares cannot be held strictly liable because the brake was manufactured by TurboDiezel.

Allenby Spares can be held strictly liable for the faulty brake as it is part of the distribution chain.

TurboDiezel cannot be held strictly liable as the company is not the seller in this case.

________ is a rule which states that judges of one country cannot question the validity of an act committed by another country within that other country’s borders.

Noerr doctrine

Colgate doctrine

Doctrine of sovereign immunity

Act of state doctrine

In a survey of the nonattainment areas in the state, the agency found Helmont to be the district that exceeded the ozone standard by the largest margin. Helmont is most likely to be categorized as a(n) ________ nonattainment area.

extreme

major

marginal

acute

Generally, the action committed by a corporate officer or director in his or her violation of the fiduciary duty of care is what type of action?

Intentional

Disloyal

Negligence

Omission

The tort of defamation of character requires a plaintiff to prove that the defendant

published an untrue statement of fact about the plaintiff to a third party

made one or more financial deals with the plaintiff under a false identity

publicly insulted people closely related to the plaintiff, such as family or friends

publicized a private fact about the plaintiff to a third party

A sales contract has been breached whereby only 75% of the money has been received for the delivered goods because that is what he believes the fair value to be. The party subject to the breach wants to collect the remainder of the money owed. What is the best legal course of action for him to pursue?

Negotiation

Mediation

Arbitration

Litigation

Who first drafted the Uniform Commercial Code and when was it drafted?

Conference of Federal Contract Commission in 1995

Restatement of Contracts in 1973

American Law Institute in 1932

National Conference of Commissioners on Uniform State Laws in 1952

Which of the following is true of a Limited Liability Company (LLC)?

Members have unlimited liability

It has a limited number of memberships available

It has flow-through taxation

Members have one class of interest

Bartie’s, Inc. sells watercolors and pastels that are marketed as safe for use by children. However, several accounts of lead poisoning were reported in children who used the products. An investigation revealed that the company was knowingly manufacturing colors that contained toxic amounts of the heavy metal. Which of the following torts has Bartie’s, Inc. committed?

Disparagement

Intentional misrepresentation

Professional malpractice

Assault

A bona fide occupational qualification is required to be

job related and cost effective

job related and a business necessity

rationally based and evenly applied

job related and nondiscriminatory

The Sarbanes-Oxley Act requires the chief executive officer and the chief financial officer of a public company to personally certify that the financial reports of the company do not contain any false or materially misleading statements as to the operation and financial condition of the company. A violation of the act can result in which of the following penalties?

Twenty years in prison and a monetary fine

Fifteen years in prison and a monetary fine

Ten years in prison and a monetary fine

Five years in prison and a monetary fine

Spring Stream sells bottled water that it claims contain vital minerals and salts not found in rival brands. The company also does not use tamperproof seals because they claim that tamperproof seals minimize the health benefits of the water. As a result, many establishments refill these water bottles with contaminated water and sell them again. People who drink the water suffer from various waterborne diseases. Which of the following forms the grounds on which affected customers can bring a strict liability lawsuit against Spring Stream?

There was a defect in the packaging of the bottled water

There was a defect in the design of the water bottles.

The company failed to provide warnings about the dangers of contaminated water

There was a defect in the manufacture of the bottled water