LAW 531 Final Exam

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LAW 531 Final Exam
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• 1. What defense can an employer use to a charge
  of sexual harassment?
• The harassed employee was not made aware of the
  company's antiharassment policies.
• The harassed employee took advantage of the
  preventive measures provided by the company but
  still could not avoid being harassed.
• The employer does not have any complaint
  mechanisms for employees who are harassed.
  
• The employer used reasonable care to prevent and
  correct the sexually harassing behavior.
• 2. Choose the correct statement about the
  Environmental Protection Agency (EPA).
• It is exclusively created to regulate air
  pollution standards.
• It has the power to initiate judicial trials in
  case of violation of environmental laws.
  
• It does not enforce environmental laws related to
  the protection of wetlands.
• It can enforce federal environmental regulations
  but cannot make regulations on its own.

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• 3. What is "riba" in the context of Islamic law?
  
• It is a compilation of decisions of the prophet.
  
• It refers to the making of unearned profits.
  
• It is the doctrine of proper behavior.
• It refers to independent reasoning.
• 4. The state of Oriel, Selenasia, enacts a law
  that imposes a 40 percent tax on automobiles that
  are made outside of Selenasia and sold in the
  state. However, Oriel does not impose this tax on
  Selenasian-made automobiles that are sold in
  Oriel. This scenario resembles a violation of
  which clause of the U.S. Constitution?
• The Multilateral Treaty Clause
• The Bilateral Treaty Clause
• The Foreign Commerce Clause
• The Treaty Clause

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• 5. Teledor Inc. and Comunika Inc. are two
  competing cellphone manufacturers. Jane, a
  customer at Teledor, is told by an employee that
  Comunika phones have weak battery back-up and are
  very prone to damage. The employee makes these
  remarks even though he knows that they are
  completely false. Jane, who has been
  contemplating between Teledor and Comunika, is
  influenced by what she hears and purchases a
  Teledor phone. What kind of intentional tort
  should be used against Teledor in this scenario?
  
• Malicious prosecution
• Disparagement
• Battery
• Appropriation
• 6. Identify an accurate statement about res ipsa
  loquitur, a special negligence doctrine.
• It applies to cases in which injuries that
  occurred were not foreseeable.
• It applies to cases in which the plaintiff also
  contributed to the negligence.
• It applies to cases in which it can be assumed
  that the defendant was in control of the
  situation in which the injuries occurred.
• It requires the plaintiff to demonstrate how
  exactly the situation arose out of the negligence
  of the plaintiff.

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• 7. Identify an accurate statement about the
  doctrine of comparative negligence.
• A person who is partially responsible for causing
  his or her own injuries cannot file a suit
  against the other party who partly caused the
  injuries.
• A plaintiff who is partially responsible for
  causing his or her own injuries cannot recover
  damages from the defendant.
• A plaintiff who is partially responsible for
  causing his or her own injuries can recover a
  proportion of the damages from the defendant.
  
• A plaintiff who is partially responsible for
  causing his or her own injuries can recover all
  the damages from the defendant.
• 8. What is true about the applicability of strict
  liability?
• It cannot be applied to products that are
  defectively manufactured.
• It can be applied to sellers who fail to warn of
  generally known dangers.
• It can be applied to products that are
  defectively packaged.
• It cannot be applied to products that were not
  supported by sufficient instructions.

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• 9. Which statement best describes an injunction
  as an equitable remedy?
• It requires a breaching party to pay damages to
  the injured party for both actual and foreseeable
  losses.
• It orders a breaching party to perform the acts
  promised in a contract.
• It prohibits a party from performing a particular
  act that may cause injury to another party.
  
• It allows a court to change the terms of a
  contract to make them true to the parties'
  intentions.
• 10. Identify the true statement in the context of
  a franchise arrangement.
• The franchisee can sell the franchisor's products
  but can never manufacture them.
• The franchisor licenses the franchisee to use the
  former's trademarks.
• The franchisee can manufacture the franchisor's
  products but can never distribute them directly
  to consumers.
• The franchisor is essentially the owner of the
  franchisee.

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• 11. Identify an accurate statement about
  distributional interest in the context of limited
  liability companies (LLCs).
• A transferee of a distributional interest
  receives all distributions from the LLC to which
  the transferor belonged.
• A member's distributional interest can be
  transferred completely, or partly.
• A transferee of a distributional interest
  automatically becomes a member of the LLC.
• A member who transfers his or her distributional
  interest will no longer be liable for the debts
  and obligations of the LLC.
• 12. What is true about consideration in the
  context of contracts?
• It also encompasses performances and services.
  
• It is exclusively in the form of tangible
  payments such as money or property.
• It is typically included in gift promises.
• It is an optional component of a written contract
  that parties can choose to omit.

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• 13. What does a current plaintiff need to prove
  to succeed in a malicious prosecution lawsuit?
  
• The original plaintiff did not initiate the
  original lawsuit.
• The original lawsuit had probable cause.
  
• The original lawsuit was initiated without
  malice.
• The current plaintiff suffered injury because of
  the original lawsuit.
• 14. In which case will a limited partner in a
  limited partnership have liability that extends
  beyond the contributions made by him or her?
  
• When the limited partner provides personal
  guarantee for a loan taken by the partnership
  
• When one of the general partners withdraws from
  the limited partnership
• When the limited partnership is involved in a
  tort and needs to pay compensation as ordered by
  the court
• When the limited partnership incurs severe losses

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• 15. Identify a difference between publicly held
  and closely held corporations.
• Shareholders of publicly held corporations
  participate in management activities
  shareholders of closely held corporations do not.
  
• Closely held corporations are large publicly
  held corporations are comparatively smaller.
  
• Publicly held corporations have many
  shareholders closely held corporations have
  fewer shareholders.
• Closely held corporations trade their shares on
  organized security markets publicly held
  corporations do not.
• 16. Identify a difference between treasury shares
  and outstanding shares in a corporation.
  
• Outstanding shares are the ones that are
  repurchased by the corporation treasury shares
  are not.
• Outstanding shares have the right to vote
  treasury shares do not.
• Treasury shares are issued by the corporation
  outstanding shares are not.
• Treasury shares cannot be reissued outstanding
  shares can be.

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• 17. What is true about the scope of Good
  Samaritan laws in the context of special
  negligence doctrines?
• They apply to professionals like lawyers and
  architects.
• They protect professionals from liability for
  their ordinary and gross negligence.
• They apply to medical health professionals.
• They protect manufacturers and distributors from
  product liability.
• 18. Quenchers Inc., a heath drink manufacturer,
  launches a new product called Sprint. The
  packaging of this drink also includes a statement
  that says "Fifty times healthier than Green."
  Green is a product of Booster Inc., another
  health drink manufacturer. Quenchers has no
  research data to back this claim. What type of
  unfair business practice is illustrated in the
  scenario?
• Deceptive advertising
• Copyright infringement
• Bait and switch
• Restraint of trade

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• 19. What statement is true about the powers of
  the Food and Drug Administration (FDA) in the
  context of drug regulation?
• The FDA can only regulate the manufacture of
  prescription drugs.
• The FDA's powers are restricted to the regulation
  of the sale of drugs.
• The FDA is not authorized to revoke licenses of
  drugs that are in use.
• The FDA has the authority to license new drugs.
• 20. Choose the correct statement about limited
  liability partnerships (LLPs).
• They should have one or more general partners
  personally liable for the debts and obligations
  of the partnerships.
• They do not get flow-through tax benefits.
  
• They cannot have partners who are professionals
  such as doctors or lawyers.
• They are created by state and not federal laws.

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• 21. Identify an accurate statement about the
  Treaty Clause in the context of the United States
  and foreign affairs.
• It states that a treaty can be formed when
  one-third of Senate members agree to it.
• It states that state governments can pass laws
  that contradict treaties signed by the federal
  government.
• It states that the U.S. president is the agent of
  the United States in dealing with foreign
  nations.
• It states that local state governments can also
  enter into treaties with foreign nations.
• 22. What is true of the Economic Espionage Act?
  
• It criminalizes the theft of trade secrets
  through the use of the Internet.
• It criminalizes the discovery of trade secrets
  through reverse engineering.
• It provides federal protection exclusively to
  trademarks and service marks.
• It relieves business owners of the obligation to
  protect their intellectual property.

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• 23. What is true of the necessary elements of an
  environmental impact statement (EIS) according to
  the National Environmental Policy Act (NEPA)?
  
• It must mention the environmentalist parties that
  challenged the proposed action in court.
  
• It must contain a cost-benefit analysis of the
  proposed federal action and alternative actions.
  
• It must not refer to the expert opinions of
  engineers, geologists, or other professionals.
• It must not mention or describe any alternate
  actions to the proposed federal action.
• 24. Which statement is true about the different
  types of agency relationships?
• An employer-employee relationship involves
  complete transfer of authority to the employee.
  
• A principal-agent relationship involves hiring an
  employee to enter into contracts on behalf of the
  principal.
• A principal-agent relationship involves assigning
  an employee a specific physical task to perform.
  
• An employer-employee relationship involves hiring
  an employee to act as an agent of the employer.

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• 25. Identify an accurate statement about the
  Equal Pay Act.
• The act states that the employer can lower the
  wages of employees to remedy a wage disparity.
  
• The act states that wages may differ when shift
  differences are involved.
• The act exclusively covers federal workers.
  
• The act does not encompass private-sector
  employees.
• 26. What is true of a vertical merger?
• It combines the operations of two manufacturers
  in the same market.
• It creates increased market share.
• It combines the businesses of a supplier and a
  customer.
• It combines the operations of suppliers in the
  same market.
• 27. Tanya and Amit, married for five years, have
  filed for divorce. They are being assisted by
  Rebecca in reaching a settlement. Rebecca is a
  retired judge, who meets with them together, and
  individually, to discuss the strengths and
  weaknesses of each of their cases. Which
  alternative dispute resolution method does this
  scenario best exemplify?
• Mini-trial
• Judicial referee
• Mediation
• Arbitration

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• 28. What is true about Jewish law?
• It is based on the teachings in the Vedas.
  
• It is not followed anymore in Jewish home
  countries.
• It includes rules for religious and political
  aspects of life.
• It excludes doctrines related to marriage and
  inheritance.
• 29. How does the Marine Protection, Research and
  Sanctuaries Act, enacted in 1972, extend
  environmental protection to the oceans?
• By requiring the Environmental Protection Agency
  (EPA) to create a list of toxic air pollutants
  
• By removing marine sanctuaries in ocean waters
  
• By requiring industries to obtain a permit for
  dumping wastes into ocean waters
• By requiring industries to incur the clean up
  costs for contaminations caused by them
• 30. Which statement about personal property is
  true?
• It exclusively refers to tangible property.
• It can be owned only by one person.
• It refers to property that is movable.
• It exclusively encompasses real estate property.

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• 31. What is the primary function of the
  International Monetary Fund (IMF)?
• To create free trade zones for member countries
  and thereby bring them together
• To provide long-term loans to developing
  countries
• To ensure smooth and free trade flow among member
  countries by settling disputes
• To promote international fiscal stability by
  providing temporary monetary assistance to member
  countries
• 32. What is a disadvantage of a sole
  proprietorship?
• The owner has to take up legal responsibility for
  any torts committed in the business.
• The process of forming a sole proprietorship
  involves many costs.
• The sole proprietorship is difficult to dissolve
  as many shareholders are involved.
• The owner is required to present several legal
  documents to obtain federal approval to start the
  business.

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• 33. What must a complainant prove in a case of
  disparate-treatment discrimination?
• The employer cited behavioral reasons for
  rejecting the complainant.
• The employer rejected the complainant despite the
  latter having the required qualifications.
  
• The employer sought applications from people with
  qualifications better than the complainant's.
  
• The employer rejected others with the same
  qualifications.
• 34. What is true about Title VII of the Civil
  Rights Act of 1964 in the context of gender
  discrimination?
• It covers discrimination based on sexual
  orientation.
• It does not prohibit discrimination based on
  pregnancy-related medical conditions.
• It covers only women.
• It excludes sexual harassment.
• 35. What is a gift causa mortis?
• A gift that is made in anticipation of theft.
  
• A gift that cannot be revoked.
• A gift that is made in anticipation of death.
  
• A gift that is made involuntarily.

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• 36. Identify a difference between tenancy by the
  entirety and community property as forms of
  concurrent ownership.
• Tenancy by the entirety allows a spouse to
  transfer his or her interest without the other
  spouse's consent community property does not.
  
• Tenancy by the entirety does not grant the rights
  of survivorship community property does.
  
• Tenancy by the entirety passes the deceased
  person's complete property to the survivor
  community property passes only one-half of the
  property to the survivor.
• Tenancy by the entirety applies to married
  couples community property does not apply to
  married couples.
• 37. Waves, Shimmer, and Mist are manufacturers
  and sellers of beauty products. Each of these
  companies independently decides not to sell its
  products to Redefine, a cosmetic retailer. Which
  form of vertical restraint does this scenario
  best exemplify?
• Group parallelism
• Conscious parallelism
• Malicious boycott
• Product boycott

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• 38. Identify the true statement about the rights
  and duties of partners in a general partnership.
  
• A partner in a general partnership has the right
  to have the transactions of another partner
  reviewed by a court.
• A partner in a general partnership has the right
  to compete with the partnership by opening
  another business by himself or herself.
• A partner in a general partnership has the right
  to sue the partnership or another partner at law.
  
• A partner in a general partnership has the right
  to use the facilities of the business for
  personal use.
• 39. Which statement about strict liability is
  true?
• It does not protect bystanders and other
  individuals who were affected by defective
  products.
• It does not require a contract to be present
  between the plaintiff and the defendant.
• It places liability only on manufacturers and not
  sellers.
• It holds the defendant liable only to the
  purchaser of a defective product.

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• 40. What is the scope of coverage of Title VII of
  the Civil Rights Act of 1964?
• It applies to state and local governments.
  
• It applies to labor unions with five or more
  members.
• It applies to employers with five or more
  employees.
• It applies to Native American tribes.
• 41. Identify an accurate statement about Hindu
  Law.
• It is based on the teachings of the Torah.
  
• It currently encompasses doctrines related to
  marriage.
• It includes teachings of rabbis.
• It is currently a combination of classical Hindu
  law and common law.
• 42. Felicia Carter, a famous singer, finds her
  poster on a billboard of a music academy. Felicia
  sues the academy because it did not inform her or
  seek permission to use her poster. What kind of
  intentional tort does this scenario best
  exemplify?
• Disparagement
• Appropriation
• Invasion of the right to privacy
• Defamation of character

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• 43. Identify a difference between the
  International Monetary Fund (IMF) and the World
  Bank.
• The IMF is funded by contributions of developed
  countries the World Bank is funded by developing
  countries.
• The IMF has its headquarters in Washington, DC
  the World Bank in The Hague, the Netherlands.
• The IMF has more than 180 member countries the
  World Bank has 60 member countries.
• The IMF grants short-term loans to member
  countries the World Bank grants long-term loans
  to developing countries.
• 44. Tracy goes to a shopping mall, and she
  unknowingly drops her identity card. After a
  while, she realizes that the card is missing and
  starts looking for it. The card is found by Ben
  who is also at the mall. Ben decides to contact
  Tracy and return her identity card. In this
  scenario, what kind of property would Tracy's
  identity card be?
• Abandoned property
• Real property
• Mislaid property
• Lost property

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• 45. Which scenario best exemplifies race
  discrimination?
• Sarah and Sandeep apply for the same post at
  Diadem Inc. The recruiter selects Sandeep because
  he has more work experience than Sarah.
• Sarah and Sandeep apply for the same post at
  Diadem Inc. The recruiter selects Sarah because
  she has better qualifications and her resume is
  more impressive.
• Sarah and Sandeep apply for the same post at
  Diadem Inc. The recruiter selects Sarah because
  Sarah is of the same ethnic group as the
  recruiter.
• Sarah and Sandeep apply for the same post at
  Diadem Inc. The recruiter selects Sandeep because
  he believes that a man would suit the job role
  better.

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