BUL 3320 USF Exam 3 UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
The principal-agent relationship is a fiduciary relationship - CORRECT ANSWER True
If the principal is undisclosed, an agent can have no apparent authority - CORRECT ANSWER
True
The Labor-Management Relations Act (Taft-Hartley Act) prohibits the closed shop (i.e. requiring an
employer to hire only union members), but permits the union shop (i.e. permitting an employer to hire
non-union members but requiring the hired employee to become a union member within a specified
time after gaining employment and to remain a member in good standing as a condition of
employment) in a state unless a union shop is prohibited by a right to work law in that state -
CORRECT ANSWER True
Northern Airlines would like to hire all male cabin attendants for its airline in order to serve the
growing number of female executives who travel. Sex is a legal BFOQ under these facts - CORRECT
ANSWER False
Which of the following acts may terminate an agency?
A) Lapse of time
B) Revocation of authority
C) Renunciation by the agent
D) All of the above are correct - CORRECT ANSWER D) All of the above are correct
Which of the following allowed claims will be paid first to the debtor's estate in a Chapter 7
bankruptcy?
A) A gap creditor with a claim of $2,000.
B) A state claiming $5,000 in back taxes.
C) The trustee's expenses of $3,000.
,D) Employees claiming unpaid wages of $4,000 for wages earned within 90 days of the bankruptcy
filing. - CORRECT ANSWER C) The trustee's expenses of $3,000.
Pat wishes to raise some money to begin mass producing their prize winning jellies and jams. Pat
offers their neighbors apiece of their profits if they will stake their at $2,000 a piece. Is the investment
a security?
A) Yes, since Pat will do all of the work.
B) Yes, because Pat's neighbors will have a security interest in the jelly.
C) No, since Pat's neighbors are putting no effort into it.
D) No, because Pat is not issuing stock certificates - CORRECT ANSWER A) Yes, since Pat
will do all of the work.
Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The Seller and Buyer
agreed that time was of the essence and delivery is due on October 1. Due to unanticipated delays,
Seller is unable to get the widgets to Buyer until October 2. Buyer is not harmed by the delay but sues
Seller anyway because Buyer is angry at Seller.
Even if Seller's failure to deliver the widgets on October1 would not have been a material breach
under the common law, it would be a violation of the perfect tender rule under the Uniform
Commercial Code. - CORRECT ANSWER True
Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The Seller and Buyer
agreed that time was of the essence and delivery is due on October 1. Due to unanticipated delays,
Seller is unable to get the widgets to Buyer until October 2. Buyer is not harmed by the delay but sues
Seller anyway because Buyer is angry at Seller.
If Buyer cannot establish any financial damages as a result of Seller's breach, Buyer will still be able
to obtain a judgment for nominal damages against Seller. - CORRECT ANSWER True
Foster Co. and Rice executed a written contract by which Foster Co. was to sell 5 acres of land to
Rice for $270,000. The contract required Rice to pay the entire $270,000 at the closing. Foster Co. has
refused to close the sale of the land to Rice although Rice is ready, able and willing to close. Rice
would be entitled to the remedy of specific performance of the contract with Foster Co. - CORRECT
ANSWER True
, About 10% of trade secrets that are misappropriated or taken are by employees and departing
employees or business partners and the rest are taken by outside hackers.
T/F - CORRECT ANSWER False
About 80% of trade secrets that are misappropriated are taken by employees and taken by party
employees.
T/F - CORRECT ANSWER True
Federal statute that preempts existing state trade secret laws.
T/F - CORRECT ANSWER False
Federal statute don't preempt existing state trade secret laws.
T/F - CORRECT ANSWER True
Federal patent law is exclusive, there are no state patent laws.
T/F - CORRECT ANSWER True
Suit must be brought in a state where the defendant resides.
T/F - CORRECT ANSWER False
Federal copyright law is not exclusive.
T/F - CORRECT ANSWER False
A copyright is granted only upon registration with the US copyright office in D.C.
ACTUAL QUESTIONS AND CORRECT
ANSWERS
The principal-agent relationship is a fiduciary relationship - CORRECT ANSWER True
If the principal is undisclosed, an agent can have no apparent authority - CORRECT ANSWER
True
The Labor-Management Relations Act (Taft-Hartley Act) prohibits the closed shop (i.e. requiring an
employer to hire only union members), but permits the union shop (i.e. permitting an employer to hire
non-union members but requiring the hired employee to become a union member within a specified
time after gaining employment and to remain a member in good standing as a condition of
employment) in a state unless a union shop is prohibited by a right to work law in that state -
CORRECT ANSWER True
Northern Airlines would like to hire all male cabin attendants for its airline in order to serve the
growing number of female executives who travel. Sex is a legal BFOQ under these facts - CORRECT
ANSWER False
Which of the following acts may terminate an agency?
A) Lapse of time
B) Revocation of authority
C) Renunciation by the agent
D) All of the above are correct - CORRECT ANSWER D) All of the above are correct
Which of the following allowed claims will be paid first to the debtor's estate in a Chapter 7
bankruptcy?
A) A gap creditor with a claim of $2,000.
B) A state claiming $5,000 in back taxes.
C) The trustee's expenses of $3,000.
,D) Employees claiming unpaid wages of $4,000 for wages earned within 90 days of the bankruptcy
filing. - CORRECT ANSWER C) The trustee's expenses of $3,000.
Pat wishes to raise some money to begin mass producing their prize winning jellies and jams. Pat
offers their neighbors apiece of their profits if they will stake their at $2,000 a piece. Is the investment
a security?
A) Yes, since Pat will do all of the work.
B) Yes, because Pat's neighbors will have a security interest in the jelly.
C) No, since Pat's neighbors are putting no effort into it.
D) No, because Pat is not issuing stock certificates - CORRECT ANSWER A) Yes, since Pat
will do all of the work.
Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The Seller and Buyer
agreed that time was of the essence and delivery is due on October 1. Due to unanticipated delays,
Seller is unable to get the widgets to Buyer until October 2. Buyer is not harmed by the delay but sues
Seller anyway because Buyer is angry at Seller.
Even if Seller's failure to deliver the widgets on October1 would not have been a material breach
under the common law, it would be a violation of the perfect tender rule under the Uniform
Commercial Code. - CORRECT ANSWER True
Seller has a contract to provide 100 widgets to Buyer at a price of $10 a widget. The Seller and Buyer
agreed that time was of the essence and delivery is due on October 1. Due to unanticipated delays,
Seller is unable to get the widgets to Buyer until October 2. Buyer is not harmed by the delay but sues
Seller anyway because Buyer is angry at Seller.
If Buyer cannot establish any financial damages as a result of Seller's breach, Buyer will still be able
to obtain a judgment for nominal damages against Seller. - CORRECT ANSWER True
Foster Co. and Rice executed a written contract by which Foster Co. was to sell 5 acres of land to
Rice for $270,000. The contract required Rice to pay the entire $270,000 at the closing. Foster Co. has
refused to close the sale of the land to Rice although Rice is ready, able and willing to close. Rice
would be entitled to the remedy of specific performance of the contract with Foster Co. - CORRECT
ANSWER True
, About 10% of trade secrets that are misappropriated or taken are by employees and departing
employees or business partners and the rest are taken by outside hackers.
T/F - CORRECT ANSWER False
About 80% of trade secrets that are misappropriated are taken by employees and taken by party
employees.
T/F - CORRECT ANSWER True
Federal statute that preempts existing state trade secret laws.
T/F - CORRECT ANSWER False
Federal statute don't preempt existing state trade secret laws.
T/F - CORRECT ANSWER True
Federal patent law is exclusive, there are no state patent laws.
T/F - CORRECT ANSWER True
Suit must be brought in a state where the defendant resides.
T/F - CORRECT ANSWER False
Federal copyright law is not exclusive.
T/F - CORRECT ANSWER False
A copyright is granted only upon registration with the US copyright office in D.C.
