LAW 531 Final Exam Guide
1) Which of the following is a distinguishing feature of a common law legal system?
A. Requiring guilt be proven beyond a reasonable doubtB. The sole source of law is a comprehensive civil codeC. An appeal processD. The making of law by the judges and the following of precedent2) Which best describes the types of agency authority held by officers of a corporation?
A. Vicarious authorityB. Express and obvious authorityC. Implied and apparent authority onlyD. Express, implied, and apparent authority3) If an LLC fails to follow formalities such as keeping minutes of meetings, which of the following is true?
A. Only the managers of a manager-managed LLC will lose limited liability.B. All members will lose their limited liability.C. This failure will not result in imposing personal liability on any member.D. Only the parties responsible for the failure will lose limited liability.4) Martha started a flower shop as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true?
A. Martha is personally liable for the additional $75,000.B. Martha’s business creditors can collect only the $50,000 of business assets.C. Martha’s business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.D. Once Martha terminates the sole proprietorship, the business creditors cannot even get the $50,000.5) Partners of a general partnership
A. are protected from litigation against the partnership by statuteB. are liable for the obligations of the partnership only to the extent of their capital contributionsC. do not have to pay taxes on the profits of the partnership that are distributed to themD. are liable for all the obligations of their partnership6) Which of the following forms of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case through the presentation of evidence?
A. Negotiated settlementB. MinitrialC. MediationD. Conciliation7) A ___________ is a court-appointed party who conducts a private trial and renders a judgment.
A. fact-finderB. arbitratorC. judicial refereeD. negotiator8) What is a form of alternative dispute resolution that is often used when the parties involved do not want to face one another?
A. ArbitrationB. Fact-findingC. MinitrialD. Conciliation9) Which of the following is true regarding mediation?
A. A mediator often meets with both parties at the same time.B. A settlement agreement is never reached with a mediator.C. A mediator does not make a decision or award.D. If a settlement agreement is not reached in mediation, then the parties hire a new mediator.10) There are no accountants on the board of the Oriole Corporation, a privately held corporation. The board routinely relies on a Certified Public Accountant (CPA) to explain the financial situation of the corporation. The board does not do an independent analysis of the CPA’s report. In these circumstances, the board is
A. violating a duty of loyaltyB. violating a duty to exercise due careC. violating the business judgment ruleD. not violating any duty
11) Self-dealing by a director of a corporation can best be described as
A. A breach of a director’s duty of notificationB. A breach of a director’s duty of careC. A breach of the Business Judgment RuleD. There was no breach of duty12) Which of the following is likely to be a breach of a corporate officer’s or director’s duty of care?
A. Failing to anticipate a precipitous drop in consumer demand of the company’s productB. Failing to make a reasonable investigation of relevant factsC. Failing to predict the unexpected startup of a new competitorD. Failing to foresee a sudden rise in the interest rate13) In what ways may officers and directors be protected by the corporation from liability for actions taken as an officer or director?
A. The officer or director must purchase personal liability insurance to cover such losses.B. Have the corporation purchase liability insurance and indemnify the officers and directors.C. Officers and directors cannot be protected from liability.D. Officers and directors are automatically protected from liability by virtue of corporate.14) If a plaintiff voluntarily participates in a risky activity that results in injury, what is the most likely defense to a claim that the plaintiff assumed the risk?
A. Contributory negligenceB. Defendant was negligent per seC. Defendant assumed the risk under the “danger invites rescue” doctrineD. Comparative negligence15) Mark is the treasurer of Sky-Hi Tech Corporation and, as such, he is responsible for protecting the assets of the corporation. One of Mark’s subordinates, Jill, is in charge of reconciling the monthly corporate bank statements. Over a period of several months, Jill embezzled a large amount of money from Sky-Hi Tech, covering up the theft using her bank reconciliations. If Mark had adequately supervised Jill, she could not have embezzled this money. Mark’s actions (or inactions) constitute a breach of his duty of
A. due careB. obedienceC. loyaltyD. good business judgment16) Barry buys a new sports car. The car sits low to the ground and because of the styling, visibility to the rear is limited. About a month after Barry buys the car, he backs over his pet poodle as he is leaving for work. In his strict liability suit against the car manufacturer, Barry will
A. win because driving a sports car is an inherently dangerous activityB. win on the basis of design defectC. win on the basis of packaging defect because the car could have been packaged in a differently styled bodyD. lose because he assumed the risk of backing up in a car when he could not see to the rear17) If a judge rules that a party lost its case because of the Statute of Frauds, the judge has essentially stated which of the following?
A. The losing party purposely deceived the other party about a material fact.B. The losing party will not be allowed to introduce evidence to contradict a written agreement.C. The losing party cannot enforce an oral contract that should have been in writing.D. The losing party was found by the court to have lied, and therefore will lose the case.18) What does the parol evidence rule do?
A. It limits the ability of parties to written contracts from introducing certain evidence related to the contract.B. It sets the rules for admissibility of evidence relating to releasing a criminal from a prison term.C. It sets the general rules for the admissibility of evidence in criminal actions.D. It determines which contracts are required to be in writing.19) ABC LLC and XYZ Corp. entered into a contract whereby ABC is to supply XYZ with widgets. After receiving the first shipment of widgets, XYZ finds that the widgets, while meeting the physical standards specified in the contract, do not perform as XYZ anticipated. The contract is silent as to performance specifications, but XYZ suspects that ABC knew that it was manufacturing and supplying widgets that would not perform according to industry standard. XYZ initiates a lawsuit against ABC, alleging that ABC knowingly supplied defective widgets. What process will XYZ use to help it develop its case against ABC?
A. PleadingsB. Motion for summary judgmentC. DiscoveryD. Trial20) Under the Employee Retirement Income Security Act (ERISA), an employee’s benefits must vest
A. within 10 yearsB. by the time of the employee’s retirementC. in total within 5 years or gradually within 7 yearsD. only as provided in the pension plan21) Which of the following statutes provides that it is legal for employees to organize a union?
A. The Norris-LaGuardia ActB. The National Labor Relations ActC. The Labor-Management Relations ActD. The Worker Adjustment and Retraining Notification Act22) William was a factory worker at the Spruce Industries plant. When management found out that William is gay, he was fired. The plant’s action is
A. not prohibited under federal lawB. a violation of Title VIIC. a violation of the Equal Pay ActD. a violation of the Americans with Disabilities Act23) Janet is manager of a bank. She has all the qualifications to be promoted to bank manager. In fact, she is better qualified than any of the men being considered for the position. However, the owner of the bank believes that bank customers will not accept a woman as bank manager, so the owner promotes one of the males. The owner’s actions would best be described as what?
A. Quid pro quoB. Hostile work environmentC. Gender discriminationD. Pregnancy discrimination24) Which one of the following statutes allows a prevailing party to recover attorney’s fees in an action against the government for an action of an agency?
A. The Freedom of Information ActB. The Government Compensation ActC. The Administrative Procedure ActD. The Equal Access to Justice Act25) Which of the following would prevent someone from acquiring land by adverse possession?
A. The person never had to fight the original owner to remain on the land.B. The person lived on the land secretly so that the original owner would not find out he or she was there.C. The person lived on the land without the original owner’s permission.D. The person was the only person who lived on the land in question.26) Which of the following would be classified as tangible personal property, as opposed to other property categories, such as fixtures or intangible property?
A. A freestanding deskB. Built-in cabinets in an officeC. A copyright to a literary workD. A field of corn27) As the CEO of a high tech company, you become aware that your chief competitor is working on a new computer program that will revolutionize your industry. You know that if you can find out several key functions about the new product, your own programmers will be able to duplicate the function of the program without actually copying its code. Which of the following actions can you ethically take?
A. Paying the garbage company to deliver the competitor’s garbage to youB. Hiring a former employee of the competitor and paying her a bonus to tell you the competitor’s secretsC. Hiring a researcher to review all available information about the competitor, including patents, types and names of employees hired, reports by the competitor, including all SEC filingsD. Hacking into the competitor’s computer systems to find out what you need28) From a practical perspective, what are some of the elements of Sarbanes-Oxley?
A. Ensuring transparency, accountability and internal controlsB. Ensuring companies are profitableC. Ensuring that CEOs do not make more than 10 times the lowest paid employeeD. Ensuring that large shareholders do not have board representation29) Under Title IX of the Sarbanes-Oxley Act, the penalty for someone who certifies “any statements as set forth in subsections (a) and (b) of this section knowing that the periodic report accompanying the statement does not comport . . .” is
A. no more than $1,000,000.00 or imprisoned no more than 10 years, or bothB. no more than $500,000.00 or imprisoned no more than 6 months, or bothC. no more than $2,000,000.00 or imprisoned no more than 3 years, or bothD. no more than $5,000,000.00 or imprisoned no more than 20 years, or both30) Which is prohibited under the Sarbanes-Oxley Act?
A. High salaries for corporate executivesB. Using an independent accounting firm for audit purposesC. Public companies making personal loans to their directors and executivesD. Directors and executives attending board meetings on a regular basis


"Is this question part of your assignment? We Can Help!"

Essay Writing Service