LAW 531 FINAL EXAM 2

LAW 531 FINAL EXAM 2 1. What are the two categories of government regulations that pertain to businesses? a). General government regulations & specific government regulations b). Statutory law regulations & common law regulations c). Civil government regulations & criminal government regulations d). Public law regulations & private law regulations 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. a). acute b). marginal c). Extreme d). major 3. In which type of franchise does the franchisor give the franchisee a license to make & sell its products from a retail outlet for an exclusive geographical territory? a). Area franchise b). Distributorship franchise c). Chain-style franchise d). Processing plant franchise 4. The federal Privacy Act provides that federal administrative agencies can a). maintain any information about an individual, as long as it is disclosed to the individual b). maintain any information about an individual c). maintain only information about an individual that is relevant & necessary to accomplish a legitimate agency purpose d). maintain information about an individual for matters concerning any agency purpose 5. George, Jerry, & 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 & the airline is found to be negligent & is directed by the court to pay damages to the injured parties. Which of the following parties is entitled to recover maximum damages? a). George, a retired professor who gets a pension of $50,000 a year b). Jerry, a professional football player who earns $2 million a year c). All the men recover the same amount of damages, irrespective of their income or profession d). Harry, a chartered accountant who earns $200,000 a year 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 & performance is necessary to avoid injustice? a). Undue performance b). Part performance c). Promissory estoppel d). Equitable performance 7. Which of the following policies helps a corporate officer from being sued for honest mistakes made on behalf of a corporation? a). Duty of loyalty b). Self-dealing c). Duty of care d). Business judgment rule 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? a). Omission b). Disloyal c). Intentional d). Negligence 9. A bona fide occupational qualification is required to be a). job related & a business necessity b). job related & cost effective c). job related & nondiscriminatory d). rationally based & evenly applied 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. a). Doctrine of sovereign immunity b). Act of state doctrine c). Noerr doctrine d). Colgate doctrine 11. A minor can be obligated to pay the reasonable value for the purchase contract of which of the following? a). Life necessaries b). Computer c). Insurance d). Cell phone 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? a). Buying the entire market of a raw material to prevent competitors from acquiring any b). Being engaged in a natural monopoly in a small market c). Getting a patent on a new invention d). An innocent acquisition of a monopoly 13. The Sarbanes-Oxley Act requires the chief executive officer & 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 & financial condition of the company. A violation of the act can result in which of the following penalties? a). Ten years in prison & a monetary fine b). Fifteen years in prison & a monetary fine c). Five years in prison & a monetary fine d). Twenty years in prison & a monetary fine 14. Which of the following is true of a Limited Liability Company (LLC)? a). Members have unlimited liability b). Members have one class of interest c). It has flow-through taxation d). It has a limited number of memberships available 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? a). Landham Act b). Byrne Convention c). Creative Assertion Doctrine d). Fair use doctrine 16. Which of the following is true of an arbitration clause? a). The clause requires the selection of a specific arbitrator b). The clause requires disputes arising from the contract to be submitted to arbitration c). The clause is mandatory for all client contracts d). The clause requires both parties to sign a settlement agreement 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? a). Arbitration b). Mediation it could be