Blaw Final

Front 1

Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of

Back 1

administrative law.

Front 2

Richard is a state appeals court judge. In making judicial decisions, Richard issues rulings that are consistent with precedents established in similar cases within his jurisdiction. Richard is following the principle of

Back 2

stare decisis

Front 3

A case comes before a Wisconsin state trial court on the subject of free speech on the Internet. It is a case of first impression, meaning that no case involving the same issue has been decided by the Wisconsin courts. In deciding such a case, it would not be considered proper for the judge to consider

Back 3

equitable maxims.

Front 4

Tyler believes that some laws passed by his state's legislature are bad, and he refuses to comply with them. He believes that there is a universal law above all others that grants rights to all people and that it is above all other laws. Tyler subscribes to what school of jurisprudential thought?

Back 4

The natural law school

Front 5

Most appellate court judges write opinions in which they give the reasons for their decisions. These opinions are collected and published in volumes of books known as

Back 5

reporters.

Front 6

Monroe is reviewing an appellate case for class and must correctly identify the parties to the case. The party appealing the case is known as the

Back 6

appellant.

Front 7

Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations?

Back 7

No, because legal compliance is regarded as the moral minimum.

Front 8

Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted's best defense is that

Back 8

he acted in good faith.

Front 9

Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant's categorical imperative at work. This means that the employees should

Back 9

consider their actions in light of the consequences if everyone in society acted the same way.

Front 10

The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider

Back 10

the costs and benefits of retaining a nonproductive employee.

Front 11

Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of

Back 11

Acme's shareholders.

Front 12

The state of Michigan was in an economic crisis. The governor and legislature asked Congress to exempt Michigan’s citizens from their federal tax burden for two years. Does Congress have the authority to make the exemption?

Back 12

No, the taxing and spending clause requires that taxes be imposed uniformly throughout the United States.

Front 13

Garrett was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett’s state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was

Back 13

unconstitutional under the supremacy clause.

Front 14

A state legislature passes a statute prohibiting businesses from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will the law be upheld?

Back 14

No, because the law is an unconstitutional restriction on free speech.

Front 15

The Iowa legislature passed a law banning trucks 65 feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Consolidated Freightways (CF) drove big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The court most likely found that the Iowa statute was

Back 15

unconstitutional under the "dormant" commerce clause.

Front 16

A city ordinance allows only two hot dog stands to operate in the city’s downtown area. If someone who would like to add another hot dog stand challenges this ordinance under the equal protection clause, the rule will be subject to

Back 16

the rational basis test.

Front 17

The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. Keller mounted a speaker on a truck. Through the speaker, he played music and spoke on a microphone while driving on city streets. Keller was convicted and fined $50. He appealed, arguing that the ordinance violated his rights of free speech and free assembly. The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly, and did not prohibit or unduly restrict any particular speech. The court probably found that the ordinance was

Back 17

constitutional as a reasonable restriction on fundamental rights

Front 18

AT&T wants to obtain additional rights to operate within the 700 MHz spectrum in the U.S. The Federal Communications Commission (FCC) has rules and regulations that govern wireless spectrum auction. The FCC is

Back 18

an administrative agency

Front 19

Congress passed the Securities Exchange Act of 1934, which created the Securities Exchange Commission. This legislation, which created an independent regulator agency, is known as

Back 19

enabling legislation

Front 20

The EPA passes a proposed a rule change to the Clean Air Act related to the discharge of emissions by factories. The EPA’s action would be considered arbitrary and capricious for all of the following reasons except:

Back 20

it failed to provided the required time for notice and comment.

Front 21

UsAgainstThem, a nonprofit environmental group, is contesting the EPA’s interpretation of a rule that has allowed a refinery to offset an increase in emissions relating to one part of the refinery by reducing emissions in another part of the refinery. In challenging the EPA’s interpretation, a court will likely

Back 21

defer to the agency’s interpretation

Front 22

William wants to obtain information from the Securities and Exchange Commission regarding the number of active cases related to insider trading. To request this information, he would need to fill which of the following with the SEC:

Back 22

a Freedom of Information Act request.

Front 23

Starla was killed when her car struck one of a group of horses that were roaming on the highway. The Sea Horse Ranch owned the horses, which were property of the corporation that owned the ranch. The horses frequently escaped through poorly maintained fences surrounding the ranch. Shipley, the ranch’s owner and president of the corporation, had been cited by the police and the humane society for allowing his horses to run free on the highway. The state sought to prosecute both the Sea Horse Ranch and Shipley for involuntary manslaughter. Can the Sea Horse Ranch corporation be held liable for the crime?

Back 23

Yes, because a corporation can be held liable for the criminal actions of its officers

Front 24

Rama advertises on the radio that she is selling a cream guaranteed to grow hair. Rama knows that the cream will not do what she claims it will. Rama may be tried

Back 24

for the federal crime of wire fraud.

Front 25

Gavin runs an illegal gambling operation out of the back of a store that he owns. The store shows increasing profits because Gavin reports the profits of his gambling operation as legitimate store income on his tax returns. Gavin is engaged in

Back 25

money laundering

Front 26

Justin is the accountant for a trucking company. A driver, Andrew, holds a gun to Justin’s head and forces him to steal from the company. Justin falsifies records, obtains cash, and gives it to Andrew. If criminal charges are brought against Justin, he can assert the defense of

Back 26

duress

Front 27

The Department of Justice wants access to the telephone records of a major newspaper. The requirement for a search warrant, an order from a judge authorizing the search of the records, would be required under the

Back 27

Fourth Amendment.

Front 28

Vince relies on his computer skills to have enough money to attend college. He breaks into computer systems to transfer funds to his own accounts. He occasionally gets paid by other students for breaking into the university’s computers to alter their grades. Vince is what is commonly referred to as a

Back 28

hacker

Front 29

Glen is a dairy farmer who owns 500 milk cows. His fences are in poor repair, and his cows are often found eating the grass on Hank’s land. Hank believes that Glen is responsible for damages to Hank’s land on a theory of strict liability. The court will most likely find that Glen is

Back 29

none of the other choices are correct.

Front 30

Exxon owned a gasoline station in Virginia that it used for years. The station had five underground gasoline storage tanks that were not properly maintained. The property was sold to AFA, which discovered gasoline contamination of the soil. AFA filed a lawsuit in Virginia state court contending that Exxon should be held strictly liable for the cost of cleaning up the property. The court most likely found that Exxon was

Back 30

not liable, because gasoline storage is not an abnormally dangerous activity.

Front 31

Martha is walking from her office building to her car in a torrential downpour with an umbrella manufactured by Umbrellas USA, Inc. She is struck by lightening, and files suit claiming the manufacturer failed to include a warning. A court would likely find that

Back 31

there is no duty to warn about risks that are obvious or commonly known, such as the risk of lightening occurring during a rainstorm.

Front 32

David’s family purchased a trampoline in 2000. They sold the trampoline at a garage sale in 2010 to Zac’s family. In 2012, Zac’s son is injury while jumping on the trampoline when it collapses. If they sue the trampoline manufacturer in 2013, their lawsuit will likely be dismissed based on the

Back 32

statute of repose.

Front 33

Harvey is driving while intoxicated in his new truck when his tire blows out. He loses control of the truck and crashes into a tree causing injury to himself and to his vehicle. The tire is determined to be defective. Which of the following defenses would be the most viable to be raised by the tire manufacturer in a product liability cause of action?

Back 33

Comparative negligence.

Front 34

Whitney works at home making unique children’s clothes. Liam buys Whitney’s clothes to sell in his store. With respect to Whitney’s legal relationship to Liam, she is probably

Back 34

an independent contractor

Front 35

Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation, and says nothing. Jamal wants to buy a bicycle like Marisol’s, so he agrees with Charlie to buy Marisol’s bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol is

Back 35

bound by the contract, under a theory of agency by estoppel

Front 36

Sarah has to move from the East Coast to the West Coast for her job. Elmo agrees to act as Sarah’s agent to sell her New York condo. As her agent, Elmo owes Sarah all of the following duties except

Back 36

payment.

Front 37

Robert attempts to avoid paying Andrew a commission check on the sale of his house to a buyer procured by Andrew by waiting until after the listing agreement has expired. Andrew finds out about this after Robert sells his house. Andrew can

Back 37

sue Robert for breach of contract.

Front 38

Sarah asks Sergio to mow her law. Sergio, who is overloaded with work, contracts with Dan to do the work for him as an independent contractor. As Dan is mowing, Sarah walks out of her house and the lawnmower throws a rock and hits Sarah, causing serious injuries. In this situation, Sergio is

Back 38

probably not liable for Sarah’s injuries

Front 39

Sally registers the domain name thedallascowboys.com before the NLF football team is able to do so, with the title of her web site called The Dallas Cowboys, a nightclub in Austin, Texas. Sally’s use of the domain name and the name of her bar is

Back 39

trademark dilution

Front 40

Sean is researching federal law to determine if there are civil or criminal penalties associated with the circumvention of the encryption software on a DVD. He should find the

Back 40

Digital Millennium Copy Right Act.

Front 41

Ben has consulted with an attorney regarding his employer having reviewed his personal communications at work. Be would have a viable claim for a violation of the Electronic Communications Privacy Act for which of the following actions?

Back 41

Accessing Ben’s private Facebook page by guessing his password

Front 42

Unobtainium Venture Capital, a new venture capital start-up, wants to create a place for employees to communicate and share files, but wants to minimize its potential risk to competitors by protecting its trade secrets that the shared data may contain. UVC should utilize

Back 42

an internal social network.

Front 43

Lily developed a blog and relays rumors and gossip she hears in her hometown. She should be concerned about

Back 43

online defamation

Front 44

Jennifer has filed a privacy complaint against Google. The federal agency to conduct an investigation by consumer complaints is the

Back 44

FTC

Front 45

Marsha is a sole proprietor of a small quilting shop. She has considered changing her business structure, but she cannot find an alternative structure that would give her the main advantage she enjoys as a sole owner. The major advantage is that she

Back 45

receives all the profits

Front 46

Rubina convinced Mariah to start a business with her in a partnership rather than a sole proprietorship. The disadvantage of a sole proprietorship that Rubina wants to avoid is

Back 46

bearing the burden of all losses and liabilities.

Front 47

Roy, Andy and Tim are partners in a general partnership, and have all been sued individually based on a breach of contract relating to the partnership. The judge dismisses the lawsuit on the basis that the plaintiff should have filed a lawsuit only against the partnership under the UPA as an

Back 47

entity

Front 48

Chance, Justina, and Rich have been operating a chain of self-service laundries as a general partnership for three years. At the beginning of the fourth year, Justina declares bankruptcy. Under the version of the Uniform Partnership Act (UPA) that is in effect in most states, Justina's bankruptcy will

Back 48

cause Justina's dissociation from the partnership.

Front 49

Anna and Jennifer start a new business as a partnership, and agree from the beginning that if one of the partners wants to leave the partnership at a later date, that the other partner will purchase the leaving partner’s ownership interest at book and amortized over a five-year term. This type of agreement is referred to as a

Back 49

buy-sell agreement

Front 50

Tina designed a new type of handbag that has proven to be very popular. She begins manufacturing these handbags on a large scale and considers her options for setting up a business to market the bags nationwide. She opts for a distributorship franchise under which she will

Back 50

license distributors to sell her handbags.

Front 51

Mack is an oil executive. He wants to start a new company with different partners to explore some drilling opportunities. His attorney advises him about the various business forms. When discussing the LLC form, his attorney mentions that one of the biggest disadvantages of the LLC form is that

Back 51

there is no uniform law governing LLCs in the United States.

Front 52

Xavier consults with an attorney and some business acquaintances from the Chamber of Commerce about the management of his LLC. He is told that management may take one of two forms, a member-managed LLC or a manager-managed LLC. In the second form

Back 52

the managers may be members, nonmembers, or a combination of both

Front 53

Matt and Chad for an LLC, and Matt later decides to withdraw as a member. They do not have a provision in their operating agreement regarding withdrawal of a member, but they do live in a state that has adopted the ULLCA, which means that

Back 53

the LLC must purchase Chad’s interest at fair value within 120 days

Front 54

Doug, Frank and Sarah want to form an entity for their new accounting firm, and want to ensure that each avoids personal liability for the malpractice of the other partners, so they should form

Back 54

a limited liability partnership.

Front 55

Henry and Ryan each invest $10,000 in a limited partnership as a limited partners, so that each has a 50% interest. Tracey sues the limited partnership and obtains a $100,000 judgment. Henry’s liability is

Back 55

$10,000.

Front 56

Jazmine is an officer of New Stage, a theater production company. Without telling any other officers or the board of directors, she decides that New Stage should try to sell gardening tools over the Internet. She makes contracts with suppliers and a Web-based remote order-fulfillment company. The only action that may NOT be taken is

Back 56

she can file a lawsuit against the corporation if it refuses to reimburse the expenses she incurred to make the contracts.

Front 57

Elliot is suing Acme, Inc. for a breach of contract, but because it has very little in assets, he asking the court to pierce the corporate veil and hold the officers personally liable. In which of the following situations would the court likely approve Elliot’s request?

Back 57

The corporation was under-capitalized from the beginning, and never had sufficient assets to operate as a viable business.

Front 58

Wendy is a member of the board of directors and the chief financial officer of The Shoe Fits, Inc. Under the duty of due care that she owes the corporation, Wendy does NOT need to

Back 58

oversee every aspect of the business, including such things as ordering merchandise and arranging for janitorial services.

Front 59

Buck is a director of Bromley Corp. Buck owns a printing company, and Bromley needs to have a book printed. If Buck contracts with Bromley to print the book, he must

Back 59

Fully disclose his interest to the other board members and abstain from voting on the matter

Front 60

The directors and officers of Sports Color, Inc., vote to refuse to declare a dividend. The shareholders can

Back 60

file an action in equity to require the directors to declare a dividend.

Front 61

Don, Keith, Jack and Diane are shareholders in a close corporation. Don and Keith, as majority shareholders owe which of the following duty to Jack and Diane as minority shareholders:

Back 61

a fiduciary duty to minority shareholders

Front 62

Jasmine's General Store advertises cans of X-brand tomatoes for $.33 per can, although she does not have any in stock. When customers arrive to buy the tomatoes, Jasmine tells them that her stock of tomatoes has been sold and that she cannot get more at the lower price. She tells customers she has Y-brand tomatoes in stock for $.55 per can, and that the Y-brand tomatoes are far superior to the X-brand. Jasmine is

Back 62

engaging in bait-and-switch advertising.

Front 63

Cowland, Inc. manufactures a low-cost generic cheese alternative. It adds a filler to the meat that it does not list on its label. Cowland's actions violate federal requirements relating to the labeling of food products. These requirements are enforced by

Back 63

the U.S. Food and Drug Administration and the U.S. Department of Agriculture

Front 64

A door-to-door salesperson convinces David and his wife, Sonia, to buy a vacuum cleaner. The next day, they learn that the same vacuum cleaner is available at a local discount store for one-third the price that they paid for it. In most states, David and Sonia

Back 64

three days to cancel the transaction.

Front 65

The Consumer Product Safety Commission (CPSC) determines that a Barbie Jeep, a toy jeep in which children ride, is unsafe. The CPSC has the power to

Back 65

remove the jeeps from the market

Front 66

Rico's Grill, Inc. is solely owned by Rico Vito. Rico's Grill borrows $10,000 from a local bank to finance the purchase of a new range. The payments are to be made monthly over a two-year period. The bank

Back 66

need not make any special disclosures

Front 67

Jackson, a homeowner, files a lawsuit against Johnson, his construction contractor. Prior to trial, they meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as

Back 67

negotiation

Front 68

Transpac Corp. and Alliance, Inc., agree to a contract that includes an arbitration clause. After a dispute arises, the case goes to arbitration. The arbitrator finds in Transpac's favor. Alliance files a lawsuit, alleging that the award should not be enforced because the arbitrator made an error in her findings of fact. The court will likely

Back 68

do nothing

Front 69

Miller signed an employment contract containing an arbitration clause stating that "any dispute" arising during employment must be resolved by binding arbitration. Two years later, after she was injured on the job and took leave to recover, she was fired. She filed a complaint for disability discrimination with the Equal Employment Opportunity Commission, which gave her a "right to sue" letter. She then filed suit in federal court against her employer for disability discrimination. The court

Back 69

dismissed the suit because of the arbitration agreement.

Front 70

Don and Robert are partners in a general partnership, and have sued each other over a number of issues relating to the partnership, with Don filing the lawsuit and Robert filing a counter-suit. Aside from their differences with the partnership they quickly decide that they do not want to spend a lot of money or time in reaching a settlement. Therefore, they should seek

Back 70

court-related mediation.

Front 71

Marshall is working on a contract with a U.S. company involving the manufacturing of goods in China, and wants to ensure that U.S. law applies in the event of a dispute. He should include which of the following clauses in the contract.

Back 71

Choice of law clause