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Winterim 2007 - Business and Commercial Law - Exam 1

Multiple Choice - worth 1 point each (total 40 points).
Identify the letter of the choice that best completes the statement or answers the question.

____    1. Administrative law consists of
           a. all law that affects a business’s operation.
           b. rules, orders, and decisions of government agencies.
           c. ordinances enacted by local legislative bodies.
           d. statutes enacted by state legislatures.
____    2. Owen is a federal judge whose judicial decisions are part of case law, which includes
           interpretations of
           a. administrative regulations only.
           b. constitutional provisions only.
           c. statutes only.
           d. administrative regulations, constitutional provisions, and statutes.
____    3. Georgia enacts a state law that violates the U.S. Constitution. This law
           a. can be enforced by Georgia only.
           b. can be enforced by the federal government only.
           c. can be enforced by the United States Supreme Court only.
           d. cannot be enforced.
____    4. Gary is a state court judge. In his court, as in most state courts, he may grant
           a. equitable remedies only.
           b. legal remedies only.
           c. equitable and legal remedies.
           d. none of the above.
____    5. Common law rules develop from
           a. statutes enacted by Congress and the state legislatures.
           b. regulations issued by administrative agencies.
           c. decisions of the courts in legal disputes.
           d. uniform laws drafted by legal scholars.
____    6. The term substantive law refers to laws that
           a. create legal rights and obligations.
           b. establish the methods of enforcing rights.
           c. focus on major, as opposed to minor, issues.
           d. prohibit substandard acts.
____    7. The citation of a case does not include
           a. the names of the parties.
           b. the name(s) of the judge(s) who decided it.
           c. the year in which it was decided.
           d. the volume and page number of the applicable reporter where the opinion may be found.




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____    8. A state supreme court decides the case of Standard Co. v. United, Inc. Of nine justices, five
           believe that the judgment should be in Standard’s favor. Justice Terry, one of the five, writes a
           separate opinion. This opinion is
           a. a concurring opinion.
           b. a dissenting opinion.
           c. a minority opinion.
           d. a unanimous opinion.
____    9. The Ohio state legislature passes a law to regulate local delivery services. The final authority
           regarding the constitutionality of this law is
           a. the courts.
           b. the president of the United States.
           c. the governor of Ohio.
           d. the U.S. Congress.
____   10. Consumer Goods Corporation sells products that are poorly made. Tina, who has never bought a
           Consumer Goods product, files a suit against the firm, alleging that its products are defective. The
           firm could ask for dismissal of the suit on the basis that Tina does not have
           a. jurisdiction.
           b. standing.
           c. sufficient minimum contacts.
           d. venue.
____   11. Kay files a suit against Jack. The document that sets out the ground for the court’s jurisdiction,
           the basis of Kay’s case, and the relief that Kay seeks is
           a. the answer.
           b. the complaint.
           c. the service of process.
           d. the summons.
____   12. Sam files a suit against Laura. The document that informs Laura that she is required to respond is
           a. the answer.
           b. the complaint.
           c. the service of process.
           d. the summons.
____   13. Linda files a suit against Kate. Kate denies Linda’s charges and sets forth her own claim that
           Linda breached their contract and owes Kate money for the breach. This is
           a. an affirmative defense.
           b. a counterclaim.
           c. a crossclaim.
           d. an irrelevant response.
____   14. Ira and Jill are involved in a lawsuit that meets the requirements for a jury trial in their state. As
           in most states, if neither party requests a jury
           a. the amount of damages will be reduced below $1,000.
           b. the amount of damages will be reduced below $20.
           c. the court will seat a jury on its own motion.
           d. there will be no jury trial.
____   15. Irma files a civil suit against Jim. To succeed, Irma must prove her case
           a. beyond a reasonable doubt.
           b. by a preponderance of the evidence.
           c. by indisputable proof.
           d. within an iota of the truth.




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____ 16. Mark intentionally pushes Don. Don falls to the ground and breaks his arm. Mark is liable for the
         injury
         a. only if Mark did not intend to break Don’s arm.
         b. only if Mark had a bad motive for pushing Don.
         c. only if Mark intended to break Don’s arm.
         d. if Mark intended to push Don.
____ 17. Kate believes that George is about to hit her. To prevent harmful contact in dangerous situations,
         a person may use
         a. any force.
         b. any force, except force that is likely to cause death.
         c. whatever force is reasonably necessary.
         d. no force.
____ 18. Alan writes Beth a private letter falsely accusing her of stealing office supplies from their
         employer, Consolidated Industries, Inc. This is
         a. defamation, but not libel or slander.
         b. libel.
         c. slander.
         d. none of the above.
____ 19. Todd files a suit against United Media Corporation for defamation. Actual malice must be
         demonstrated for recovery of damages if Todd is
         a. a corporate officer.
         b. a non-citizen.
         c. a private individual.
         d. a public figure.
____ 20. Excel Dry-Cleaning advertises so effectively that Next Day Cleaners’s regular customers
         patronize Excel instead of Next Day. Excel has committed
         a. appropriation.
         b. wrongful interference with a business relationship.
         c. wrongful interference with a contractual relationship.
         d. none of the above.
____ 21. Phil invites Quinn onto his land. Quinn commits trespass if
         a. Phil asks Quinn to leave and Quinn refuses.
         b. Quinn enters the property in the evening.
         c. Quinn makes disparaging remarks about Phil to third parties.
         d. the property is damaged during the visit.
____ 22. Steve, a television news reporter, knowingly broadcasts an untrue story claiming that Medi-
         Drugs, Inc., markets, for children, a medicine that contains highly addictive drugs. Steve is liable
         for
         a. slander of quality.
         b. slander of title.
         c. wrongful interference with a business relationship.
         d. none of the above.
____ 23. City Times, a newspaper, knowingly publishes an article falsely stating that the inventory of
         Walco, a discount store, consists of stolen goods. City Times is liable for
         a. defamatory mischief.
         b. malicious mischief.
         c. slander of quality.
         d. slander of title.




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____ 24. Dependable Appliances, a retail store, must use reasonable care on its premises to warn its
         patrons of
         a. all risks.
         b. hidden risks.
         c. obvious risks.
         d. no risks.
____ 25. Sam, an engineer, supervises the construction of a new bridge. When the bridge collapses due to
         faulty construction, Sam is sued by those injured in the collapse. As a professional, Sam is held to
         the same standard of care as
         a. ordinary persons.
         b. other engineers.
         c. other professionals, including doctors, dentists, and lawyers.
         d. those injured in the collapse of the bridge.
____ 26. John carelessly bumps into Sally, knocking her to the ground. John has committed the tort of
         negligence
         a. only if Sally is injured.
         b. only if Sally is not injured.
         c. whether or not Sally is injured.
         d. under no circumstances.
____ 27. Ron, a driver for American Trucking Company, causes a five-car accident on an interstate
         highway. Ron and American Trucking are liable to
         a. all those who are injured.
         b. only those whose injuries could reasonably have been foreseen.
         c. only those whose cars were immediately ahead and behind Ron’s vehicle.
         d. no one.
____ 28. Bob is injured in a car accident and files a suit against Mary, whom Bob alleges was driving
         negligently. Mary claims that Bob was driving more carelessly than she was. Comparative
         negligence in tort cases may reduce a plaintiff’s recovery
         a. only if the plaintiff was more at fault than the defendant.
         b. only if the plaintiff and defendant were equally at fault.
         c. only if the plaintiff was less at fault than the defendant.
         d. even if the plaintiff was only a small fraction at fault.
____ 29. Martha owns a demolition company. If a passerby is injured during a demolition by Martha’s
         crew, under the theory of strict liability Martha must pay for the injury
         a. only if the crew intended to injure the passerby.
         b. only if the crew knew of the normal consequences of its actions.
         c. only if the injury was reasonably foreseeable.
         d. whether or not the crew was at fault.
____ 30. Allrite Products, Inc., manufactures microwave ovens. Jill discovers that her Allrite oven is
         defective. Jill sues the manufacturer for product liability based on negligence. To win, Jill must
         show that
         a. Allrite sold the oven to Jill.
         b. the “defect” was a commonly known danger.
         c. Jill knew and appreciated the risk caused by the defect.
         d. Jill suffered an injury caused by the defect.




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____ 31. Cold Products, Inc., manufactures snowboards, which it sells to Sporting Goods Outlet. Sporting
         Goods Outlet sells Cold boards to consumers, including Mike. Mike is injured while using the
         board. In a product liability suit based on strict liability, Mike may recover from
         a. no one.
         b. Cold Products or Sporting Goods.
         c. Cold Products only.
         d. Sporting Goods only.
____ 32. Ann is shopping in Beth’s Food Store when a bottle of Carbonated Cola explodes, injuring Ann.
         She files a suit against the bottler, from whom she can recover only if she can show that she
         a. did not assume the risk of the exploding bottle.
         b. intended to buy the exploding bottle.
         c. used due care in shopping in the store.
         d. was injured due to a defect in the product.
____ 33. Mixing Equipment, Inc. (MEI), makes paint-mixing equipment. Pat is injured by a defective MEI
         mixer. A statute restricts the time within which, after Pat is injured, he may file a product liability
         suit. This is a statute of
         a. limitations.
         b. preemption.
         c. repose.
         d. suspension.
____ 34. Bert is charged with a crime. To find criminal liability, most crimes require
         a. a specified state of mind or intent only.
         b. the performance of a prohibited act only.
         c. a specified state of mind and the performance of a prohibited act.
         d. none of the above.
____ 35. Albert wrongfully takes an unopened carton from a City Warehouse loading dock, puts the carton
         in his car, and drives away. Any person who wrongfully or fraudulently takes and carries away
         another person’s personal property is guilty of
         a. embezzlement.
         b. forgery.
         c. larceny.
         d. robbery.
____ 36. Kay, an engineer who works for Data, Inc., may be liable for larceny if she steals
         a. a competitor’s trade secrets.
         b. company computer time.
         c. the use of Data’s telephone wires for personal business.
         d. any of the above.
____ 37. For Carla’s solicitation of investors in a nonexistent business, she is charged with the commission
         of the crime of mail fraud. This requires
         a. a scheme to defraud.
         b. use of the mail system.
         c. both a and b.
         d. none of the above.




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____ 38. Bill offers Carol, a building inspector, money to overlook the violations in his new office
         building. Carol accepts the money and overlooks the violations. Bill is charged with the crime of
         bribery. This occurred when
         a. Bill offered the bribe.
         b. Carol accepted the bribe.
         c. Carol overlooked the violations.
         d. none of the above.
____ 39. Jennifer, a bank officer, deposits into her account checks that are given to her by bank customers
         to deposit into their accounts. Fraudulent appropriation of a person’s property or money by
         another person entrusted with it is
         a. embezzlement.
         b. forgery.
         c. larceny.
         d. robbery.
____ 40. The use of deadly force will generally be permitted when it is used to prevent
         a. the theft of valuable property.
         b. imminent death or grievous bodily harm.
         c. breaking and entering into a dwelling.
         d. all of the above.


Alternative Dispute Resolution Paper – worth 10 points.

Small Claims Assignment – worth 10 points.

Essay - worth 10 points each (total 40).

        1. In a lawsuit between Digital Sales Corporation and Engineering Associates, Inc., the court applies
           the doctrine of stare decisis. What is this doctrine? What does this doctrine have to do with the
           American legal system?
        2. Millennium Enterprises, Inc., files a suit in a court in Oregon against Millennium Music, LP
           (Limited Partnership), a South Carolina business firm. The court considers whether Millennium
           Music can be sued in Oregon based only on the circumstance that its Web site could be accessed
           in that state. The court’s opinion in the case is at Millennium Enterprises, Inc. v. Millennium
           Music, LP, 33 F.Supp.2d 907 (D.Or. 1999). Specifically where can this opinion be found? Who
           wrote the decision? Is there a dissenting opinion? What was the court’s ruling?
        3. Eve is walking to work along a sidewalk next to a road. A National Distribution Company (NDC)
           truck strikes and injures Eve, causing her injuries that result in more than $100,000 in medical
           expenses. Eve is a resident of California, where the accident occurred. NDC has its principal
           place of business, and is incorporated, in New York. In what court(s) may Eve sue NDC?
        4. Bob, a driver for City Delivery Company, carelessly leaves the truck’s motor running
           while he makes a delivery. The transmission engages and the truck crashes into a nearby
           gas station pump, igniting a fire that spreads quickly to a construction site a block away.
           A burned wall collapses onto a crane, which falls on, and injures, a bystander, Carol.
           What must Carol show to recover damages from Bob?




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