LAW 531 Final Exam

LAW 531 Final Exam

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

2. 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.

3. 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?

4. The federal Privacy Act provides that federal administrative
agencies can

5. 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?

6. 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?

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

8. 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?

9. A bona fide occupational qualification is required to be

10. ________ 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.

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

12. 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?

13. 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?

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

15. 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?

16. Which of the following is true of an arbitration clause?

17. 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?

18. 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?

19. 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.

20. 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?

21. 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?

22.
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?

23. Which of the following statements is true of NAFTA?

24. What is the definition of illegal consideration?

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

26. Which of the following is true about supramajority voting
requirements?

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

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

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

30. 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?