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					MG201 Business Law I                                     Montgomery College, Rockville




              MG 201
          BUSINESS LAW I
                                           Quiz Packet




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MG201 Business Law I                                                           Montgomery College, Rockville

                                 List of Graphic Organizers

                                  ● A suit at Law vs. A suit in Equity
              Project 1
                                  ● State Court System (United States and Puerto Rico)
              Project 2
              Project 3           ● The Common Law vs. The U.C.C.
                                  ● Accountants‟ Liability
              Project 4           ● Principal (P) vs. Agent (A) liability to Third Party




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MG201 Business Law I                                                                              Montgomery College, Rockville

                                           MG 201: Web Sites
CHAPTER 1
http://www.law.cornell.edu/constitution/constitution.overview.html
http://www.law.cornell.edu/syllabi?constitutional+unconstitutional
alt.politics.usa.constitution (news group)
http://www.legal.net
http://www.yahoo.com/government/law/
http://gnn.com/gnn/bus/nolo/
gopher://riceinfo.rice.edu:70/11/subject/government
http://www.inter-law.com

CHAPTER 2
martin@law.mail.cornell.edu (e-mail)
http://www.law.cornell.edu/syllabi?constitutional+unconstitutional

CHAPTER 3
http://www.law.vill.edu/Fed-Ct/fedcourt.html (Villanova Ctr. for Law and Policy--U.S. Circuit Courts of Appeals--opinions)
http://www.cornell.edu/supct/supct.able.html (Decisions from the U.S. Supreme Court)
news:courts.usa.federal.supreme (news group)
http://www.touchngo.com/sp/sp.html (Alaska Supreme Court)
http://www.touchngo.com/ap/ap.html (Alaska Court of Appeals)
http://www.ljx.com/public/daily/calcourt.html (California Supreme Court and Court of Appeals)
http://www.nersp.nercdc.ufl.edu/~lawinfo/flsupct/ (Florida Supreme Court) http://www.ljx.com/public/daily/flacourt.html
(Florida Supreme Court and Court of Appeals)
http://www.state.id.us/judicial/scopins.html (Idaho Supreme Court)
http://www.state.id.us/judicial/caopins.html (Idaho Court of Appeals)
http://www.law.indiana.edu/law/incourts/incourts.html (Indiana Supreme Court and Court of Appeals)
http://www.ljx.com/public/daily/mccourt.html (Michigan Court of Appeals)
http://winslo.ohio.gov/stgvjud.html (Ohio Supreme Court)
http://winslo.ohio.gov/stgvjud.html (Ohio Court of Appeals)
http://www.uoknor.edu/okgov/ (Oklahoma Supreme Court and Court of Appeals)
http://www.cornell.edu/ny/ctap/overview.html (New York Court of Appeals)
http://www.nando.net/insider/supreme/supco.html (North Carolina Supreme Court)
http://www.nando.net/insider/appeals/appeals.html (North Carolina Court of Appeals)
gopher://ferret.state.wy.us:70/11/wgov/jb/decision (Wyoming Supreme Court)
http://www.igc.apc.org/conflictnet/

CHAPTER 5
AOL keyword: LEGAL

CHAPTER 6
http://www.fplc.edu/tfield/orde.html (Franklin-Pierce Law Center info on intellectual property)
http://www.law.cornell.edu//usc/17/overview.html (U.S. Copyright Act)
http://www.law.cornell.edu/syllabi?copyright+patent+trademark (intellectual property decisions)
http://www.law.cornell.edu:70/00/foreign/fletcherUNTS11851.txt (Paris Treaty)
http://www.benedict.com (copyright Web Site)

CHAPTER 7
gopher://ncjrs.aspensys.com:71/1 the gopher address is ncjrs.aspensys.com within the gopher select National Criminal
          Justice Reference Service (DOJ National Institute of Justice Web Site)
http://starbase.ingress.com/tsw/alawyer/criminal.html




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MG201 Business Law I                                                                   Montgomery College, Rockville
CHAPTER 8
AOL keyword: LEGAL
listserv@austin.onu.edu (discussion of teaching contract law)
To Subscribe (e-mail)
Subject: <anything>
Message: Subscribe Contracts <Your Name>


CHAPTER 24
COMPUSERVE: Entrepreneurs Forum
Type Go User from the library menu, choose Browse, then select, Legalities
AOL/Microsoft Small Business Center
Keyword: microsoft, then click, The Small Business Center, and select, Legal Issues
http://www.sbaonline.sba.gov/ (Small Business Administration)

CHAPTER 25
NOTHING

CHAPTER 26
NOTHING

CHAPTER 27
http://amber.ora./gnn/bus/compcorp/index.html (the benefits of incorporating)
http://www.rbvdnr.com/ (Reinhart et al info about business organizations)

CHAPTER 28
NOTHING

CHAPTER 29
NOTHING

CHAPTER 30
NOTHING

CHAPTER 31
http://www.law.uc.edu/CCL/33Act/index.html (the Securities Act of 1933 from the Center for Corporate Law)
http://www.law.uc.edu/CCL/34Act/index.html (the Securities Act of 1934)
http://www.law.uc.edu/CCL/ (for other Acts outlined in the chapter)
http://www.town.hall. org/edgar/edgar.html SEC database called EDGAR)

CHAPTER 32
NOTHING

CHAPTER 33
http://www.usdoj.gov/ (DOJ Antitrust Division)
YAHOO http://www.yahoo.com/Government/Law/




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MG201 Business Law I                                                                Montgomery College, Rockville

                                 COMPARE AND CONTRAST
                                                    PROJECT 1
                                                 (compare/contrast)
                         CHAPTER 1                                                CHAPTER 2
precedent                  VS precedence                                        court systems
ordinance                     ordnance                    general jurisdiction                limited-jurisdiction
common law                    equity                      intermediate appellate              court of last resort
common law                    Civil law                   inferior                            courts of record
criminal law                  civil law                   unanimous (decision)                majority (decision)
court of law                  court of equity             tie (decision)                      plurality (decision)
doctrine, rule                statute, law, legislation   concurring (opinion)                dissenting (opinion)
issues of fact                issues of law               U.S. District court                 U.S. Circuit court
common law                    statutory law               forum                               trial court
judgment                      decree                      statute of limitations              statute of frauds
statute of limitations        laches                      statute of limitations              statute of repose
liability                     guilt                                               jurisdiction
Restatement                   Uniform Acts (Laws)         general                        VS limited
acronym                       abbreviation                exclusive                           concurrent
summons                       subpoena                    federal question                    diversity
sua sponte                                                                                    in personam
                                                          subject-matter
amicus curiae                                                                                 in rem
                                                          jurisdiction
                                                                                              quasi-in rem
                                                          special appearance                  special verdict
                                                                                    litigation
                                                          answer                              reply
DOCTRINES OF JUDICIAL RESTRAINT                           plaintiff                           appellant
standing                                                  summary judgment                    directed verdict
mootness                        ripeness                  directed verdict                    judgment n.o.v.
double jeopardy                 res judicata              deposition                          interrogatories
jurisdiction                    justiciability            intervention                        consolidation
jurisdiction                    venue                     arbitration                         mediation
declaratory judgment            advisory opinion          respondent                          defendant
                                                          standards of proof                  standards of review
                         CHAPTER 3                        rebuttal                            rejoinder
Articles                      Amendments                  appellant                           petitioner
Fifth Amendment                 Fourteenth Amendment      petition for certiorari             writ of certiorari
substantive due                 procedural due process    rule of four                        writ of certiorari
process
establishment clause            free exercise clause                            CHAPTER 8
ex post facto                                                                   International
           st
What's…1 Amdment                What's….Bill of Rights    treaty                           convention
                                                          de facto                         de jure
                     CHAPTER 7                            OPEC                             OPIC
              Ethics/Social Responsibility                GATT                             WTO
                                                          act of state doctrine            sovereign immunity
                                                          Foreign Sovereign                 sovereign immunity
                                                          Immunities Act (FSIA)



                                                                               CHAPTER 44
                                                                             Administrative Law
                                                          FOIA                             ALJ



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                                                            PROJECT 2
                                                         (compare/contrast)
                            CHAPTER 5                                                             CHAPTER 17
assault                       V         battery                            patent                  V        trade secret
                                    S                                                                   S
false imprisonment                      kidnapping                         copyright                        trademark
libel                                   slander                            patent                           copyright
libel                                   defamation                         public use                       fair use
conversion                              trespass to personal property      18 U.S.C. 2319A                  17 U.S.C. 1101
crimes                                  torts                              eminent domain                   just compensation clause
battery                                 negligence
proximate cause                         causation in fact                                         CHAPTER 44
actual cause                            legal cause                        statutory liability     VS       common law liability
pure comparative neglig                 partial comparative neglig         liability to clients             liability to third parties
contributory neglig                     comparative negligence             civil liability                  criminal liability
assumption of the                       contributory negligence
risk
negligence per se                       strict (absolute) liability
superseding events                      intervening events
fraud                                   deceit/ misrepresentation                                 CHAPTER 48
res ipsa loquitur                                                          Sherman Act 1          VS       Sherman Act 2
per se                                                                     Clayton 2(a)                    Robinson-Patman Act
                            CHAPTER 6                                      Clayton 2(a)                    Clayton 2(b)
negligence                    VS        strict liability                   Clayton 2(a)                    Clayton 2(c)
statute of limitations                  statute of repose                  Sherman Act 1                   conspiracy to restrain….
                                                                           Sherman Act                     monopolies
                                                                           Clayton 7                       mergers
                            CHAPTER 7                                      Clayton 3                       tying arrangements
actus reus                    VS        mens rea                           Clayton 2                       price discrimination
felony                                  misdemeanor                        rule of reason                   per se rule
not guilty                              no lo contenderé                   horizontal mergers               vertical mergers
robbery                                 burglary
larceny                                 robbery
extortion                               blackmail


OTHER
Washington, D.C. states' rights diversity jurisdiction federalism (abortion, civil war, civil rights)
police power minimum contacts origins of the jury changing precedent            slavery euphemisms
insanity defense   equal             motions to dismiss
(NPR)              protection

                         de facto        i.e.     status quo ante     res ipsa loquitur no lo contendere
LATIN WORDS              de jure         e.g.      quid pro quo       ipso facto ex post facto per se

                         gamut prerogative dichotomy          acronym vs. abbreviation archetype ancillary
TERMINOLOGY              fungible pecuniary criterion/a      phenomenon/a equivocal/unequivocal ersatz/erstwhile
                         tertiary/treble flout/flaunt preventive/preventative




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MG201 Business Law I                                                                        Montgomery College, Rockville


                                                         PROJECT 3

                                           CONTRACTS       (compare/contrast)
                         Chapter 9                                                          Chapter 14
offeror                            offeree                        statute of frauds                  statute of limitations
unilateral contracts               bilateral contracts            collateral contract                guaranty contract
express contracts                  implied contracts              main purpose exception             leading object exception
implied-in-fact                    implied-in-law                 creditor                           guarantor
quasi-contract                     implied-in-law                                           Chapter 15
quasi-contract                     quantum meruit                 assignment                         delegation
executory                          executed                       assignor                           assignee
void                               voidable                       creditor                           debtor
uniform laws                       Restatements                   obligor                            obligee
                                                                  promisor                           promisee
                         Chapter 10                               delegator                          delegatee
objective theory                   subjective theory              third-party beneficiary            intended beneficiary
revocation                         rejection                      creditor beneficiary               intended beneficiary
promissory estoppel                detrimental reliance           creditor beneficiary               donee beneficiary
promissory estoppel                equitable estoppel             incidental beneficiary             donee beneficiary
offer                              acceptance                     assumption of duties               declaration of duties
mailbox rule                       proper dispatch rule           condition precedent                condition subsequent
                                                                  express condition                  implied condition
                         Chapter 11                               implied-in-fact condition          implied-in-law condition
nominal consideration              illusory consideration         personal satisfaction test         reasonable person test
output contracts                   requirements contracts         concurrent conditions
                                                                  covenant
                         Chapter 12                               status quo                         status quo ante
quid pro quo                       status quo ante                impossibility of                   commercial
                                                                  performance                        impracticability
infancy doctrine                   insanity doctrine              objective impossibility            subjective impossibility
duty of restitution                duty of restoration            novation                           substituted contract
disaffirmance                      ratification                   novation                           assignment
insane                             adjudged insane                mutual rescission                  substituted contract
licensing statutes                 revenue-raising statutes
regulatory statutes                revenue-raising statutes
Sabbath laws                       Sunday laws                                              Chapter 16
blue laws                          Sunday laws                    complete performance               strict performance
unconscionable cont.               adhesion cont.                 substantial performance            inferior performance
                                                                  substantial breach                 minor breach
                                                                  substantial breach                 material breach
                         Chapter 13                               inferior performance               material breach
unilateral mistake                 mutual mistake                 law remedies                       equity remedies
fraud in the inception             fraud in the factum            rescission                         rescind
fraud in the inception             fraud in the inducement        restitution                        restoration
fraud in the inducement            fraud by concealment           rescission                         restitution
misrepresentation of fact          misrepresentation of law       anticipatory repudiation           anticipatory breach
fraudulent misrepresentation       innocent misrepresentation     compensatory damages               consequential damages
duress                             undue influence                injunction                         specific performance
economic duress                    economic coercion              quasi-contract                     quantum meruit
fraudulent misrepresentation       silence as                     attachment                         garnishment
                                   misrepresentation
                                                                  reformation
                               GENERAL TERMINOLOGY                                                LATIN TERMINOLOGY
lucid        illusory               promissory estoppel                                        quid pro quo     status quo ante
stipulate    emancipation           liquidated damages            tort damages
waiver       forbearance            reciprocal                    manifestation
tangible                            rebuttable                    time is of the essence
recourse     objective cognitive “understanding” test             equal dignities rule
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                                                       PROJECT 4
                                                            AGENCY
 agency coupled with an interest
                         DISTINGUISH                                                     DISTINGUISH
 attorney-at-law          vs    attorney-in-fact                  express agency             implied agency
 principal/employer/..          agent/employee/I.C.               apparent agency            implied agency
 contracts/agency               torts/respondeat superior         apparent agency            agency by estoppel
 indemnification                reimbursement                     incidental authority       implied agency
 fully disclosed agent          partially disclosed agent         irrevocable agency         agency coupled w/an interest
 express agency                 implied agency                    unilateral                 wrongful termination
                                                                  termination
 principal                      agent                             direct notice              constructive notice
 revocation                     renunciation                      diagnosis                  prognosis
 agent                          agency                            work-related test          motivation test
 I.C.                           agent
 agent                          employee
 agency                         respondeat superior               vicarious                  vicarious liability
 fraud                          deceit                            gratuitous                 gratuitous agent
 fraud                          misrepresentation                 usurp                      usurp an opportunity

                         TERMINOLOGY
 anachronistic    imputed              contingency
 vicarious        prospective
 gratuitous       diagnosis
 usurp




                                   Preliminary Syllabus Examination
1) What are my office hours?
2) Who is the author of the main textbook?
3) How many projects will we complete in the course?
4) What is my policy regarding makeup exams?
5) Other than the library assignments, NAME a pass/fail requirement.
6) Other than the projects and daily quizzes, NAME a way to earn points.
7) Other than by earning an “A” on the final exam, NAME another way of earning an “A”
   for the course.




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                                           PROJECT 1




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                                                            TEACHING NOTES
                                                 Doctrines Embodying the Policy of
                                                       Judicial Self-Restraint
                           "the law (trial and appeals courts) does not care for, or take notice of, very small matters" that are not
minimis
              non curat




                                                             worthy of judicial time and attention.
  de


                 lex




                          the authority, capacity, power, or right of a court or judicial officers to decide particular kinds of cases (subject-
                          matter jurisdiction), to compel parties to come before court and to subject them to decisions and rulings
                          (personal jurisdiction), and to render and enforce sentences, judgments, or decrees.

                          NOTE: Distinguish jurisdiction from venue. Venue involves the location of a trial over which the court has
                          jurisdiction. Rules of civil and criminal procedure require that the venue for a trial is the neighborhood, place,
                          or county/city in which an injury is declared to have occurred. A judge who allows an improper venue may
                          commit a reversible error of law, which may cause any final verdict or judgment to be overturned. For example,
                          in a lawsuit filed by the family of Roland Maddox, a Florida appeals court overturned a $1million judgment
                          against Brown and Williamson Tobacco Corp. because the case was tried in the wrong county.
    jurisdiction




                          If, however, the court believes the defendant cannot receive a fair trial in the normal venue, then the court may
                          grant a request for a change of venue. For example, in the Oklahoma City bombing incident involving Timothy
                          McVeigh, the court granted a defense motion for a change of venue from Oklahoma City to Denver. Note,
                          however, that the venue was still within the territorial jurisdiction of the 10th Circuit Court of Appeals.

                          a rule/doctrine of civil law that a final judgment or decree on the merits by a court of competent jurisdiction is
  judicata




                          conclusive of the rights of the parties or their privies in all later law suits involving identical things involved in the
                          former suit.
  res




                          a common law and constitutional prohibition in criminal law against a second prosecution after a first trial for the
                          same offense. (Driggers v. State 188 So. 118, 120. 43 N.Y. 2nd 211, 213.)
  jeopardy




                          see cases: Emmitt Till (1964 Civil Rights act) and Rodney King, and O.J. Simpson (the politics of prosecution)
  double




                          ACTUAL CONTROVERSY ............................ Justiciability refers to the requirement that, before it can be resolved
                          by the courts, a case primarily must involve an actual controversy of a definite and concrete character involving
                          real and substantial issues, as opposed to a dispute that is merely hypothetical , abstract, or academic, or even
    justiciablity




                          mere generalized interests common to all taxpayers. Several doctrines of judicial procedure express this "actual
                          controversy" requirement: 1) justiciability, 2) standing to sue, 3) mootness, 4) ripeness, 5) advisory opinions, and
                          6) declaratory judgments (see cases below). A secondary consideration is the political question doctrine (see
                          cases below). (International Harvest Hat Co. Caradine Hat Co., 17 F.Supp. 79, 80. State ex rel. La Follette v.
                          Dammann, 264 N.W. 627, 629. 30 F.Supp. 777, 779, 780.)




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                       This is one of several doctrines of judicial restraint that involve the court's requirement that it will consider only
                       cases that involve an actual, current controversy. The doctrine of standing requires that a plaintiff have a
                       stake in the outcome of the case, that is, that the plaintiff have something to gain or to lose by the outcome of
                       the case. This requirement recognizes the position of the court as a relatively passive participant in the trial
                       process. The court depends on the fervor of the two litigants, developed through the adversarial process, to
                       brightly illuminate the relevant legal questions that court must consider.

                       If one party is unconcerned about the outcome of the case, then the court's decision may be based on a one-
                       sided view or presentation of the potential precedents and issues involved, and for that reason may ultimately
                       be a wrong decision. This situation is compounded when later courts use this wrong decision as precedent.
                       The judicial system believes the requirement of standing reduces the likelihood of a wrong decision based on
                       one-sided analysis.
    standing to sue




                       In reality, however, the judicial application of the principles of standing has often been inconsistent,
                       contradictory , even chaotic. Judicial interpretation of the rules of standing tends to vary with the historical
                       accident of the composition of the Supreme Court at a given time and the subjective whim of individual
                       justices. Beginning in the 1960s, standing suffered a serious erosion in a number of cases, but underwent
                       some resurgence in the 1970s (compare Baker v. Carr, 82 S.Ct. 691 [1962], and Flast v. Cohen, 88 S.Ct.
                       1942 [1968], with United States v. Richardson, 94 S.Ct. 2940 [1979]).

                       This is another of the "justiciability/controversy" doctrines. A court will not consider/hear a moot case. A moot
                       case is one in which there is no actual, current controversy or one which if adjudged, would have no practical
                       legal effect. In particular, if there has been a change in the law or the status of the litigants since the plaintiff
                       filed suit, or if the two litigants are contesting an issue that somehow has been resolved, then the court will not
                       hear the case, whether at trial or on appeal. For example, if a white applicant sues a medical school for
                       "reverse discrimination" because he was rejected in favor of a minority student who had lower scores, the
                       court will consider his case moot if during the trial or appeals he is admitted to the school .(DeFunis v.
                       Odegaard, 94 S.Ct. 1704 [1974]). Also, the Supreme Court refused to review a case by parents who
                       challenged the validity of Bible reading in the public schools, because their child had already graduated.
                       (Doremus v. Board of Education, 72 S.Ct. 394 [1952]) (Also see, Adams v. Union Railroad Co., 42 A. 515.;
                       Smith v. Smith 245 N.W. 644, 645)

                       Mootness, too, has had a varying history, however. For example, the Court ignored mootness in the Roe v.
    moot case




                       Wade case even after the plaintiff was no longer pregnant because, the Court said, the shortness of the
                       human gestation period would normally render a hearing impossible.

                                 Be careful to distinguish moot case from moot point. Moot means "a subject for argument; unsettled;
                                 undecided." A moot point is one "not yet settled by judicial decision."
                       To be heard by a court, a case must have matured into a controversy worthy of adjudication. The question in
                       each case is whether a substantial controversy exists between parties having adverse legal interests of
                       sufficient immediacy and reality (to warrant issuing a DECLARATORY JUDGMENT). The basic rationale is to
                       prevent courts from becoming entangled in abstract disputes over administrative policies, and to protect
    ripe




                       administrative agencies from judicial interference until an administrative decision has been finalized and its
                       effects experienced by the challenging parties.
                       merely a formal opinion by a court upon a question of law submitted by a legislative body (e.g., The U.S.
                       Congress or a state legislature) or governmental official before any actual controversy has arisen. Such an
                       opinion adjudicates nothing and is binding on no one. (Douglas Oil Co. v. State, 81 S.W. 2nd 1064,1077)

                       For instance, the U.S. Congress or a member of Congress might ask the U.S. Supreme Court to render an
    advisory opinion




                       opinion on the constitutionality of a bill it is considering. The premise is that it would be more efficient to know
                       beforehand that the measure would be ruled unconstitutional than to go through the (wasted) effort needed to
                       pass the bill only to need to re-consider or revisit it after months or years later, after it is struck down by the
                       court as unconstitutional.

                       Please note that U.S. courts give advisory opinions only on the rarest occasions. In fact, the occasions have
                       been so rare that for our purposes, we can say that U.S. courts never give advisory opinions.
                       a judgment which simply declares the rights of the parties or expresses the opinion of the court on a question
                       of law, without ordering anything to be done. (Great Lakes Dredge and Dock Co. v. Huffman, La., 63 S. Ct.
                       1070, 87 L.Ed.1407Viillage of Bay v. Gelvick, 15 N.E. 2nd786, 791. Rauh v. Fletcher Savings and Trust Co.,
                       194 N.E 334, 335. Brindley v. Meara, Ind., 198 N.E. 301.)
 declaratory
 judgment




                       Please note that U.S. courts have the same attitude toward declaratory judgments that they have toward
                       advisory opinions. In the same way as with advisory opinions, the occasions have been so rare that for our
                       purposes, we can say that U.S. courts never give declaratory judgments.

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     MG201 Business Law I                                                                                      Montgomery College, Rockville


                                                Questions for
                                     Doctrines of Judicial Self-Restraint
                                 In the Roe vs. Wade case, a Texas statute prohibited Roe from having an abortion in Texas. Roe claimed the law
                                 was unconstitutional and appealed her case all the way to the U.S. Supreme Court. By the time the court
MOOT                             considered the case, Roe was no longer pregnant. The court accepted the case even though the case was ____
                                 (mm).
                                 A case is ____ (mm) if a legal controversy has been resolved because, for example, the law has changed or the
MOOT                             status of the litigants has changed.
JURISDICTION                     If a criminal case is filed in a domestic relations court, the case will be dismissed because of ___ _ _____ (mm).
                                 In the Oklahoma City bombing case against Timothy McVeigh, the defense requested a _____ _ ____ (mm) from
VENUE                            Oklahoma City to Denver because of adverse pre-trial publicity.
                                 A criminal defendant cannot be tried twice for the same crime because of the constitutional prohibition against ____
DOUBLE JEOPARDY                   ____ (m).
                                 Courts may dismiss a case because of a lack of controversy based on:
RIPENESS (c)                     a) de minimis non curat lex. c) lack of ripeness.            e) ALL OF THE ABOVE.
                                 b) res judicata.        d) double jeopardy.
                                 In the Roe vs. Wade case, a Texas statute prohibited Roe from having an abortion in Texas. Roe claimed the law
                                 was unconstitutional and appealed her case all the way to the U.S. Supreme Court. By the time the court
MOOTNESS (e)                     considered the case, Roe was no longer pregnant. The court accepted the case evn though the case was ____ .
                                 a) NOT moot.            c) NOT ripe.           e) non-justiciable.
                                 b) moot.                d) ripe.
                                 John injures Tony in an automobile accident. Under the circumstances of the case, Tony has the option of filing
                                 suit in state A, state B, or in federal court. Tony sues in state A and loses. If Tony later tries to file suit in state B
RES JUDICATA (e)                 regarding the same case, John's lawyer will file a motion to dismiss based on:
                                 a) double jeopardy.          c) mootness.           e) res judicata.
                                 b) lack of jurisdiction.     d) NON- justiciability.
                                 Courts may dismiss a case because of a lack of controversy based on:
ALL (e)                          a) lack of standing.         c) mootness.           e) ALL OF THE ABOVE.
                                 b) lack of ripeness.         d) non-justiciability.
                                 Courts may dismiss a case because of a lack of controversy based on:
NONE (e)                         a) res judicata.             c) de minimis non curat lex.        e) NONE OF THE ABOVE.
                                 b) lack of jurisdiction          d) double jeopardy.
                                 If a criminal case is filed in a domestic relations court, the case will be dismissed because of:
JURISDICTION                     a) lack of venue.            c) de minimis non curat lex.        e) NONE OF THE ABOVE.
                                 b) lack of jurisdiction          d) lack of standing to sue.
VENUE                            ????
DOUBLE JEOPARDY                  ????




     For numbers 12 and 13 below, choose the correct answer from
12     The doctrine of res judicata is:   a) doctrine and civil.         c) doctrine and criminal.
13     Double jeopardy is:                b) constitutional and civil.       d) constitutional and criminal.
14

15




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MG201 Business Law I                                   Montgomery College, Rockville

                                           JUDGMENTS




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MG201 Business Law I                                                                   Montgomery College, Rockville
                                                 LAW vs. FACT
Every trial involves resolution of two issues--issues of law determined by the court (judge) and issues of fact
determined by a jury. According to Black's, "fact" means reality of events or things the actual occurrence or
existence of which is to be determined by the evidence (e.g., testimony). Distinguishing law from fact, Black's
refers to law as a principle, while a fact is an event; law is conceived, while fact is actual. By issue we mean
discrepancies or conflicts, in this case discrepancies between the plaintiff's version of what happened (the facts)
and the defendant's version of what happened.

Issues of Law. Issues of law would include traditional roles of a judge such as admissibility of evidence. After
all, the issue of admissibility involves whether the jury should hear or see the evidence. It is illogical for a jury to
hear or see evidence in order to determine whether or not it should see or hear the evidence.

A judge would also decide issues such as: 1) instructions to the jury, 2) a change of venue, proper jurisdiction,
and 3) recusal. Other issues of law (that we don't want juries to decide) include:
    a) ruling on motions to dismiss a case;
    b) whether to allow a plaintiff to file a suit in equity rather than a suit at law.
    c) whether the U.S. Constitution is violated;
    d) whether res ipsa loquitur applies;
    e) whether the doctrine of strict liability covers a particular activity;
    f) whether states can regulate nuclear power;
    g) whether a particular precedent applies in the current case;
    h) whether a contract is void or voidable;
    i) whether a certain kind of contract can be oral or must be in writing;
We wouldn't want the inconsistency in the resolution of these issues that comes with determination by juries.

Having the court decide issues of law makes sense because we want consistency in the application of the law
from case to case. It is important for society that every one is treated the same under the law. Certainly, no one
would want prejudicial evidence to be admitted in his or her case while the same kind of evidence is kept out in
someone else's case.

We can expect this consistency in the interpreting the law from a monolithic institution such as the court. But, a
jury is not such a monolith. It's members change from case to case. In fact, a jury's decision (conclusion)
(verdict) is expected to vary from case to case according to the circumstances of the case.

Summary Judgment Occasionally, there are circumstances at the trial level of a case under which only issues
of law are to be determined and the trial judge can issue a summary judgment; that is, the judge can issue a
decision without the need for a jury. A motion for summary judgment is a legal motion offered most often made
by a defendant after a demurrer, but can be made also by the plaintiff.

A motion for summary judgment can be made in two circumstances. First, in response to plaintiff's complaint, a
defendant may demur (file a demurrer) alleging that the plaintiff "fails to state a cause of action for which relief
can be granted". Along with this demurrer, the defendant files a motion for summary judgment.

The "failure to state a cause of action...." alleges that the complaint the plaintiff has filed is deficient, because
even if the plaintiff established (proved to a jury) all the facts alleged in the complaint, the totality of those facts
does not constitute a violation of the law as stated in the complaint. This is ultimately what happened in the
Paula Jones (vs. President Clinton) case. In other words, the defendant is saying to the plaintiff something like,
"even if I did what you say I did (and I'm not saying I did), it is does not violate the law you stand in your
complaint".

The plaintiff may respond by amending the complaint to allege a set of facts that matches the elements of the
cause-of-action stated in the complaint. The plaintiff may also search for a cause-of-action that matches the
facts that he originally alleged. In any event, the facts alleged by the plaintiff must match the elements of some
cause-of-action that can be found in a statute or at common law.

Second, a motion for summary judgment (i.e., where there are only issues of law to be decided) is appropriate
where the plaintiff and the defendant agree on what happened (i.e., agree on the facts of the case). Under such
circumstances, there is no need for a jury to decide between two versions of the facts since the litigants agree on
what happened (i.e., there is only one version of the facts).

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Third, a judge may rule in a summary judgment (after a motion by one of the lawyers) if “no reasonable person”
could see the facts of the case in any other way. That is, if one version of the facts is so clearly probable or
truthful that any reasonable person (or jury) would exclude other explanations of the facts, there are essentially
only issues of law left to decide and the judge can issue a summary judgment. Of course, this circumstance
occurs only very rarely and a judge would be extremely reluctant to usurp the traditional role of the jury in
considering the facts of the case and applying its discretion in perceiving credibility of the evidence and
witnesses.
In a summary judgment, the trial judge delivers his or her interpretation of the law, and the case is finally decided
(subject, of course, to appeal). On appeal, a summary judgment is an issue of law (as opposed to an issue of
fact) where the higher court uses a "difference of opinion" standard of review.

Issues of Fact. Issues of fact (truth) would vary according to the type of law involved. For example in a case
involving intentional torts, an issue of fact would be the defendant's objective intent (as opposed to subjective
intent) intent, where the "reasonable man" (person) standard would be applied. The jury would constitute the
"reasonable person" in this case. In cases of unintentional torts (negligence), an issue of fact (for the jury)
would be whether the plaintiff was truly injured or just "faking it". Also in negligence cases, a jury would judge the
credibility of witnesses and other evidence and determine whether a defendant's conduct met the standard of
care expected by the community (i.e., whether the defendant breached his duty of care).

For example, in a case of the tort of "palming off", a jury would determine whether there is a likelihood that the
public would be confused as to the source of a product (see Cheeseman, p. 99) . In a disparagement case, a
jury would determine several issues--whether the defendant's statement was untrue, whether the defendant
knew the statement was untrue, and whether the defendant made the statement maliciously. These are areas of
personal judgment and credibility especially suited to individuals using their ordinary experience and background
to judge the credibility of witnesses and other evidence to arrive at an opinion (verdict).




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MG201 Business Law I                                                                         Montgomery College, Rockville
                                           STANDARDS OF REVIEW
                                                          (law vs. fact)

The law-fact dichotomy also plays a major part in the appeals process. If the losing litigant (appellant) believes
that there occurred at his trial an error in a finding of law by the judge or an error in a finding of fact (verdict) by
the jury he may appeal to a higher court (appeals court or the court of last resort). Of course, a litigant (actually,
his attorney) may allege both types of error occurred at trial.

ERRORS AT TRIAL. In analyzing/deciding whether there was an error below (at the trial court), the appeals
courts use two standards:

 errors of law          For (alleged) errors of law by the trial judge, the higher courts use the standard-- "difference of
                        opinion". That is , if the higher court disagrees with the interpretation of the law as given by the
                        lower court and, if the error was reversible error -- that is, the error might have influenced the
                        outcome of the trial -- the higher court will reverse the lower court's decision. The higher court's
                        opinion or interpretation of the law overrides the lower court's opinion/interpretation. The losing
                        party‟s (appellant‟s) attorney, when appealing an alleged error in law, is hoping that the higher
                        court agrees with him that the trial judge misinterpreted or misapplied the applicable law.

 errors of fact         For (alleged) errors of fact by the jury, the higher courts use the standard-- "clear bias (error)".
                        Unless the jury's verdict is clearly biased (clearly in error), the higher court will not reverse the
                        verdict. This is so even though the court may disagree with the verdict or may itself have given
                        different credibility to the witnesses or evidence.

                        The jury's verdict is sacrosanct unless the most probable explanation of the jury's verdict is bias
                        or, as in Black's, when a verdict is contrary to the clear weight of the evidence (see Cheeseman
                        case 2.12). Then, and only then, will the higher court reverse a jury verdict. If there is any
                        reasonable evidence to support the jury's verdict, the higher court will not reverse it.


ERRORS ON APPEAL. Infused in the language of the appeal court's ruling, there are clues to which type of
error the loser is alleging. Remember that the standard for evaluating issues of fact is "clear error (bias)" and the
standard for evaluating an error in law is "difference of opinion".

 errors of law         If the appellant alleges an error of law (by the judge), the standard of review on appeal is
                       "difference of opinion", and you will see such language as "we do not adopt the court of appeals'
                       determination...." or "the district court correctly found...." or even "we hold...." Certain appeals are
                       obviously based on errors of law. An appeal from a summary judgment is obviously based on an
                       error of law. Appeals of other issues are also obviously errors of law and not for a jury to decide.
                       In general, you can be fairly confident that if you do not see language suggesting an error of fact,
                       then it must be an error of law.

 errors of fact        If the appellant alleges an error of fact (by the jury), the court reviews the trial case to determine
                       whether there is any reasonable grounds to support the jury's verdict. If the court finds an error of
                       fact (and reverses the jury's verdict) you will see language such as "no reasonable jury could
                       find...." or other such language. If you see language such as "the jury was justified..." or "the jury
                       could reasonably conclude...., or even “the jury could have found….”, the court did not find an error
                       of fact and the jury's verdict will stand. In any event, if you see the court analyzing the
                       reasonableness of the verdict or referring to the jury, you can generally assume the appeal was
                       based on an error of fact.




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MG201 Business Law I                                                                                      Montgomery College, Rockville
                                       STANDARDS (Burdens) OF PROOF
                                              (The role of probability in determining the truth)

In contrast to standards of review, standards of proof refers to the degree of certainty or confidence a jury must have in order to arrive at a
verdict favorable to one litigant or the other. Put another way, standard of review refers to the extent to which (probability) the plaintiff must
prove his case to a jury.

In the law, the truth (facts of the case) is what the jury says it is. However, the jury cannot know the truth with certainty (If we knew the truth
with certainty, we wouldn't need a trial, or a jury). The jury can only say what it believes to be true, and how certain (how probable) the jury is
that what it believes is really true.

Preponderance of the Evidence (51%)                There are three levels of probability required (three
                                                      standards of proof) depending on the type of case. In
                                                      civil cases, the standard of proof is "preponderance of
                                                      the evidence". The well-recognized probability
                                                      associated with this standard is 51%. That is, the jury
                                                      finds for the litigant whose version of the truth it
                                                      believes with at least 51% probability.
Clear and Convincing Evidence (85%)                For certain kinds of white collar crimes, the court use an
                                                      intermediate burden of proof; "clear and convincing
                                                      evidence " (85%).
Beyond a Reasonable Doubt (96%)                    At the other extreme is criminal cases in which the
                                                      standard of proof is "beyond a reasonable doubt"
                                                      (formerly, "beyond a shadow of a doubt"). The
                                                      probability associated with this standard is not so well
                                                      recognized or agreed upon, but for this standard we will
                                                      use 96%. That is, each juror should be at least 96% sure
                                                      that the defendant is guilty before he vote guilty. (The
                                                      4% is the reasonable doubt that the standard refers to.)
Of course, no juror actually calculates such probabilities before deciding. In fact, it is impossible to make such a mathematical calculation.
But, this should give you some idea of the stringent certainty required of jurors in order to vote guilty. This standard gives effect to the notion
that at least in American society and jurisprudence, we would rather err on the side of letting a guilty man go free, than to convict someone
who is innocent.




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MG201 Business Law I                                                                                       Montgomery College, Rockville
                                               CLASSIFICATION OF LAWS
                                                                  Study Sheet

                                                    PRIVATE LAW vs. PUBLIC LAW
Private Law: That portion of the law which defines, regulates, enforces, and administers relationships among individuals, associations, and
corporations....all that part of the law which is administered between citizen and citizen....where...both [persons are]...private individuals.

Public Law: A general classification of law consisting of constitutional, administrative, criminal, and international law, concerned with the
organization of the state, the relations between the state and the people...the responsibilities of public officers to the state, to each other, and
to private persons, and the relations of states to each other.

                            Private Law                                                                Public law
agency law                           insurance law                        admiralty                             criminal law
antitrust law                        property                             antitrust law                         environmental law
contract law                         tort law                             administrative law                    tax law
corporation law                      wills                                constitutional law
employment law



                                                     CIVIL LAW vs. CRIMINAL LAW
Civil Law: Laws concerned with civil or private rights and remedies, as contrasted with criminal laws. (Please contrast this with civil law--the
system of jurisprudence held and administered in the Roman empire)

Criminal Law: ...that law the purpose of which is to prevent harm to society....

                             Civil law                                                                Criminal law
administrative law                   landlord-tenant law                  antitrust law                      insurance
agency law                           property law                         environmental law                  OSHA
constitutional law                   partnership law
contract law                         tort law
corporation law                      wills

                                                              Inchoate Crimes
                                    Inchoate: imperfect; partial; unfinished; begun, but not   completed
                conspiracy                                   aiding & abetting                                    attempted...

                                                COMMON LAW vs. STATUTORY LAW
Common Law: Comprises the body of those principles and rules of action ..which derive their authority solely from usages and
customs of immemorial antiquity, or from the judgments and decrees of the courts recognizing And enforcing such usages and
customs, particularly the ancient unwritten law of England.

Statutory Law: The body of law created by acts of the (federal, state, local, and municipal) legislature.

                         Common Law                                                                  Statutory Law
admiralty                            property law                         administrative law                 landlord-tenant law
agency law                           tort law                             constitutional law                 partnership law
contract law                                                              corporation law                    wills
                                                                          insurance law

                                                    LAW VS. EQUITY (see discussion below)
Law: ...used in opposition to "fact" to refer to issues or questions that are determined by the court (a judge), while it is the province of a jury to
resolve questions of fact.

Equity: A system of rules...as an alternative to the harsh rules of common law...justice administered according to fairness as contrasted with
the strictly formulated rules of common law. the objective of which is to render the administration of justice more complete, by affording relief
where courts of law are incompetent to give it.

Law (terminology)                                                                                Equity (terminology)
attachment                           judgment                             contracts                         property law
contracts                            jury                                 contempt of court                 rescission
damages                              levy                                 decree                            restitution
garnishment                          tort law                             injunction                        specific performance
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MG201 Business Law I                                                                                  Montgomery College, Rockville
TABLE 1-1: Subdivisions of the Classifications of Certain Legal Subjects
Procedural Law: Law which prescribes the method of enforcing rights; the machinery for litigating a law suit.
Substantive Law: Law which not merely prescribes method…but creates, defines, and regulates rights.

                          SUBSTANTIVE LAW                                                   PROCEDURAL LAW
 The Law of Contracts                    The Law of Property                                Procedural Law
 Sales of Goods                          Real Property                                      Evidence
 Commercial paper                        Personal property                                  Trials
 Secured Transactions                    Leases                                             Appeals
 Bank deposits & collections             Bailments                                          Civil procedure
 Creditors' rights                       Wills                                              Criminal procedure
 Consumer protection                     Trusts and Estates                                 Probate procedure
 Debtor protection                       Mortgages




TABLE 1-2: Criminal Offenses
 Typical Felonies (Imprisonment for More One                          Typical Misdemeanors (Imprisonment for Less
 Year or More and/or Fine ($))                                        than One Year and/or fine ($))
 Aggravated assault               Larceny (grand)                     Battery                          Public disturbance
 Arson                            Manslaughter                        Gambling                         Simple assault
 Bribery                          Mayhem                              Larceny                          Traffic offenses
 Burglary                         Murder                              Littering                        Trespass
 Embezzlement                     Price-fixing                        Prostitution
 Forgery                          Rape
 Kidnapping                       Robbery




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MG201 Business Law I                                                                           Montgomery College, Rockville

    Major Differences between a Suit at Law and a Suit in Equity

                       ACTION AT LAW                                       ACTION IN EQUITY
 Nature of             A money judgment for damages to           A decree of an equity judge (chancellor): (a) ordering  to do
   relief              compensate  for the loss                 an act (e.g., replevin) or NOT to do an act (e.g., injunction),
                       sustained.                                or declaring a status (e.g., decree of divorce, bankruptcy, or
   sought                                                        quieting of title to real estate)
   by 
 Time within           statute of    That is,  must file suit   The            That is,  must file suit within a reasonable
                       limitations   within the time period      doctrine of    time after the event which gave rise to the
   which                                                         laches
                                     fixed by the state                         COA.
   suit must                         statute of limitations.
   be filed
 Jurisdiction          standing      That is,  must show         must         (a) the law remedy is inadequate because:
                                     injury from defendant‟s     show                (1) there is a continuing wrong by ,
   of the
                                     conduct arising out of                          (2) the law remedy would require a
   court.                            facts containing all of                               multiplicity of law suits,
                                     the elements of a legal                         (3) a law judgment for $ could NOT be
                                     COA.                                                  collected because  is insolvent,
                                                                                     (4) the difficulty of measuring damages
                                                                                           in money terms; AND
                                                                                (b) Great and irreparable injury would result if
                                                                                    equitable relief is NOT granted (e.g., a
                                                                                    tenant wrongfully cutting down a
                                                                                    landlord‟s forest)

 Method of             Either party has a right to request a     The equity judge (referred as a chancellor) finds facts as
                       trial by jury                             well as rules on the issues of law. (Some states permit an
   finding                                                       advisory jury to recommend findings of fact to the
   facts at                                                      chancellor.
   trial
 Method of             Levy of execution; also garnishment       Contempt of court and incarceration
                       or attachment of property
   enforcing
   judgment
   or decree




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MG201 Business Law I                                                                                  Montgomery College, Rockville

                                                                QUIZ 1A
                                            THE LAW AS A DISCIPLINE
                                                                 (Cheeseman Ch. 1)

                       Doctrines Embodying the Policy of Self-Restraint
JUDICIAL SELF-RESTRAINT (see notes)
The doctrine that a party seeking relief must have a personal stake in the outcome of a case so as to insure such concrete adverseness that
    sharpens the presentation of issues upon which the court so largely depends for illumination of difficult issue IS REFERRED TO AS
    __________ (1).

The doctrine of self-restraint under which the court will dismiss a case that is so insignificant or too small to be heard IS REFERRED TO AS
    ________ (2).

The doctrine of self-restraint under which the court will not decide a case, the enforcement of which is infeasible IS REFERRED TO AS
   ________ (3).

The doctrine under which a final judgment is conclusive in any subsequent litigation IS REFERRED TO AS ____ _____ (4).

A d____ (5) is a rule of the court, while a s_____ (6) is codified law (legislation).

The word _____ (7) refers to prior examples, cases, or occurrences of a particular fact situation.

The word _____ (8) refers to the importance or priority/rank of a thing or situation.

The doctrine that a party seeking relief must have a personal stake in the outcome of a case IS CALLED __ (9).

_____ ___ (10) is a doctrine of law that uses the decisions in prior cases to make decisions in current cases.


The Court of C_____ (11) was established because remedies in law courts were inadequate.

In English, the phrase “de minimis non curat lex” means __________ (12)

CHAPTER 1
In the U.S. court system, s___ d____ (13) requires that a judge‟s rulings of law be constrained by _____ (14).

The word ____ ____ (15) refers to the doctrine of law that uses the decisions in prior cases to make decisions in current cases.

The word _____ (16) refers to the importance or priority/rank of a thing or situation

A d______ (17) is a rule of the court, while a s_____ (18) is codified law (legislation).

_____ (19) is the only state that does NOT follow the common law.

DISTIGUISH ORDNANCE FROM ORDINANCE
An ordnance is _____ (20). An ordinance is ________ (21).

DISTIGUISH SUMMONS FROM SUBPOENA
An summons is ____ (20).  An subpoena is ________ (21).

Arrange the following in order of precedence
22) Federal Statutes                                 25) U.S. Constitution                      28) State Administrative Orders
23) State Constitutions                              26) Treaties                               29) Executive Orders
24) Federal Administrative Orders                    27) County Ordinances                      30)    State Statutes

The following questions refer to the LAW/EQUITY chart on prior pages above.
In ____ (31) courts, sometimes called courts of c_____ (32), a plaintiff might seek to change the behavior of the defendant
instead of seeking monetary damages. The judge in this kind of court is called a c_(33) and his decision determining the
outcome of the case is called a d___ (34), which can be enforced by a citation for ____ _ ____ (35).

In a court of _____ (36), a judge must follow precedent. But, in a court of _____ (37), a judge may use his own sense of
fairness and justice.        ___ (38) is the equity equivalent of a statute of limitations.

Usually, a judge decides issues of _____ (39), while a jury decides issues of _____ (40).

In an action in equity, the doctrine of ______ (41) is analogous to the statute of limitations in an action at law.
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MG201 Business Law I                                                                                       Montgomery College, Rockville


                                                       QUIZ 1B (self-restraint)
                                 THE LAW AS A DISCIPLINE
                       Doctrines Embodying the Policy of Self-Restraint

                                              TRUE-FALSE/MULTIPLE-CHOICE
JUDICIAL SELF-RESTRAINT (see notes)
                                               MATCHING
On your Scantron cards, for nos. 1-- 10, match the number with the correct letter.

1) no concern for very small things                                                      a) justiciable

2) where the controversy has ceased to exist                                             b) mootness

3) the litigants have nothing to lose or gain from the outcome of the case               c) ripeness

4) expresses the opinion of the court on a question of law without ordering a            d) de minimis
remedy
                                                                                         e) res judicata
5) right, power, authority
                                                                                         a) jurisdiction
6) a question properly before the court
                                                                                         b) advisory opinion
7) the case has been already decided in a different court
                                                                                         c) venue
8) prevent premature adjudication
                                                                                         d) standing
9) geographic area
                                                                                         e) declaratory judgment
10) giving a legal opinion to the legislature before legislation is passed

11. It is a fairly common practice for judges to give advisory opinions.

12. Norton is considering making a contract with a company in Australia. He is unsure what his rights will be if the foreign company breaches
    the proposed contract. Norton is entitled to a declaratory judgment to inform him of his rights.

13. The doctrine that a party seeking relief must have a personal stake in the outcome of a case (so as to insure such concrete adverseness
    that sharpens the presentation of issues upon which the court so largely depends for illumination of difficult issues).
    a) ripeness.   b) res judicata.      c) de minimis non curat lex. d) justiciability.      e) NONE of the above.

14. The doctrine of judicial self-restraint under which the court will dismiss a case that is too insignificant or too small to be heard.
    a) ripeness.   b) res judicata.        c) de minimis non curat lex. d) justiciability.         e) NONE of the above.

15. The doctrine of judicial self-restraint under which the court will not decide a case, the enforcement of which is infeasible.
    a) ripeness.   b) res judicata.        c) de minimis non curat lex. d) justiciability.        e) NONE of the above.

16. The doctrine under which a final judgment in one case is conclusive (determinative) in any subsequent litigation.
     a) ripeness.   b) res judicata.     c) de minimis non curat lex. d) justiciability.       e) NONE of the above.

17. Congress is considering passing a bill that many in Congress consider to be unconstitutional. Senator Thompson asks the U.S. Supreme
     Court to rule on the constitutionality of the proposed legislation. The Supreme Court would:
     a) refuse to rule because this is an advisory opinion. c) refuse to rule because Congress has no standing to sue.
     b) refuse to rule because this is a moot case. d) refuse to rule because the case is NOT ripe.
                      e) take the case immediately and give the Senator a ruling.

18. Assume that the court refuses to rule on the constitutionality of the proposed legislation and Congress passes the statute anyway.
     Immediately, opponents of the bill file suit in the U.S. Supreme Court claiming that the law is unconstitutional. The U.S. Supreme Court
     will:
     a) refuse to rule because this is an advisory opinion. c) refuse to rule because Congress has no standing to sue.
     b) refuse to rule because this is a moot case. d) refuse to rule because the case is NOT ripe.
                               e) take the case immediately and give the Senator a ruling.

19. A political question is one where:
    a) resolution of the case is committed exclusively to the jurisdiction of another branch of government.
    b) adequate standards for judicial review are lacking.                d) ALL of the above.
    c) there is no way to insure enforcement of the court‟s judgment.             e) NONE of the above.
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MG201 Business Law I                                                                                   Montgomery College, Rockville

20. When a court relies on precedent or the doctrine of stare decisis, which of the following is language it may use in the opinion?
    a) “It is not the function of the court to change the law because its application here might be unwise. Such a task is best left to the
    legislature.”
    b) “the case at hand is virtually indistinguishable from Smith V. Jones and we are thus bound to follow the result of that case.”
    c) “Where the contract is unclear, as here, the court will look to the practice in the restaurant industry to determine on which day a
    “work week” should begin.”
    d) “The outcome of this case must comport with fundamental notions of human rights and procedural fairness.”
    e) None of the above.

21. Judge George Jenkins recently decided a case in which ABC, Inc. sought damages for breach of contract from XYZ, Inc. In rendering
    his decision in favor of ABC, Jenkins consulted seven similar cases that had been decided concerning similar contract law issues. He
    cited three of them, distinguished four. What judicial decision-making factor is most in evidence here?
    a) Recusal.                               c) Doing what is right.
    b) Stare decisis.                         d) Deferring to other branches of the government.
    e) History and custom.

22. Under what circumstances may a judge refuse to apply clear precedent in a case?
    a) Never.                                       c) If in doing so, a grave injustice will be avoided.
    b) Any time the judge wants to do so.           d) Only in a recusal situation.
                       e) None of the above.

23. ABC, Inc. filed suit against the city in which it does business demanding that the city increase its police patrols. The judge hearing the
    case dismisses it because he believes (as a matter of judicial restraint) that such issues are in essence political ones having to do with
    budget matters. Such issues are best left to the political process. What factor of judicial decision making is in evidence in this decision?
    a) History and custom.                  c) Doing what is right.
    b) Balance of interest.                 d) Deferring to other branches of the government.
                          e) Doctrine of stare decisis.




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MG201 Business Law I                                                                                     Montgomery College, Rockville


                                                           QUIZ 1C (T-F/M-C)
                                                CHEESEMAN Chapter 1
Lecture/Quiz Packet
1. Criminal law is an example of civil law.

2. Although Louisiana law is based primarily upon the French civil legal system, citizens of Louisiana are subject to federal law and to
    English-based criminal law.

3. U.S. law is also influenced by Spanish and German civil law.

4. The civil law system has influenced elements of California and Oregon law.

5. Appellant is the same as respondent, who is the litigant who lost the trial case.

6. Appellee is the same as respondent, who is probably the litigant who lost the trial case.

7. Civil (as opposed to criminal law) law consists largely of law that defines and punish offenses against the general public.

8. A state statute says, "The speed limit on a state highway is 55 miles per hour." This an example of procedural law.

9. Any judicial decision is considered binding precedent in all cases that arise thereafter, irrespective of the jurisdiction in which that case is
    brought.

10. Binding precedent may be ignored if to apply it would create an injustice.

text
11. CASE: Defendant A illegally bribes defendant B. A is acquitted of the charges. Later in a separate trial, B is convicted. Since A was
     acquitted for the same offense, the U.S. Supreme Court overturned the conviction of B.

12. CASE: A Gulf Oil Co. executive was convicted of aiding and abetting the bribery of an IRS agent. Later, when the IRS agent, in a
     separate trial, was acquitted of accepting the bribe, the U.S. Supreme Court reversed the conviction.

13. Supporters of feminist legal theory believe the court should use a "reasonable woman" standard because the female perspective should
     be considered.

14. Texas and California are the only states in the U.S. that base their legal systems primarily on the civil law.

15. The law, equity, and merchant courts in the U.S. have been merged.

16. The proponents of the Law and Economics School have suffered declining popularity.

17. Rules and regulations from state administrative agencies do NOT have the force of law.

The following questions refer to the LAW/EQUITY chart on prior pages above.
18. Although U.S. law still recognizes the philosophical distinction between common law and equity, a law suit involving both common law
     and equity can be tried in the same court.

19. In legal decision making, case precedent is as binding on courts of equity as on courts of law.

20. The judge of an equity court may retain jurisdiction over litigants to resolve future issues which may arise between them, even if doing so
     requires many years.

21. Some vestiges of the distinction between law and equity still exist today .

22. The equitable doctrine of laches requires a plaintiff to file an action within a reasonable time after the event which created the cause of
     action. LECTURE

23. Injunctions and rescission of a contract are equitable remedies. LECTURE

24. A decision in an equity case is referred as a decree.

25. Today, an aggrieved party can seek both law and equity remedies in one court, since law, equity, and merchant courts have merged.

26. Equitable orders and remedies of the Court of Chancery take precedence over the legal decisions and remedies of the law courts.

27. In a case in equity, plaintiffs have the option of having a jury trial or NOT having a jury trial.

 LEGAL SYSTEMS OF THE WORLD
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28. The French Civil Code of 1804 and the German Civil Code of 1896 became models for countries that later adopted civil codes.

29. In some civil law countries, court decisions do NOT have the force of law.

                                                             MULTIPLE-CHOICE

Lecture/Quiz Packet
                                                   (a)                   (b)               (c)                  (d)                (e)
30.   Which of the following is NOT        maintaining the      flexibility         shaping moral        maximizing        ALL of the above
      a function of the law                status quo                               standards            individual        are functions of
                                                                                                         freedom           the law
31.   An example of society being          Roe vs. Wade.        Standefer vs.       Brown vs. Board      ALL of the        NONE of the
      led by the law is:                                        United States.      of Education.        above.            above.
      (LECTURE)                                                 TEXTBOOK
32.   American courts can be               Law courts           equity courts.      merchant courts.     TWO of the        ALL of the
      divided into:                                                                                      above.            above.

33.   Judges commonly use one of           Public opinion.      previous            the plain meaning    public policy.    legislative
      five basic tools for interpreting                         interpretation      rule.                                  history.
      statutes. Which of the                                    made by courts
      following is NOT one of those                             in earlier
      tools?                                                    decisions.

34. Which of the following statements regarding Louisiana law is true?
    a) Louisiana's criminal law is based on a system derived from that of the ancient Romans.
    b) To decide contract and tort cases, a Louisiana judge applies preexisting written law to them.
    c) In Louisiana, contract and tort law is based on the English common law.
    d) a and b
    e) All of the above.

35. What is the foundation for the law of most states in the United States?
    a) Equity as it was developed by the English legal system.
    b) The French legal system as it was modified from the ancient Roman system.
    c) English common law.
    d) a and c
    e) b and c

Stare Decisis
                                                  (a)                  (b)                 (c)                 (d)                (e)
36.   The doctrine of stare decisis.      is based on          literally means     makes common law      A and B.          ALL of the
                                          English common       ''to stand by the    more predictable,                      above.
                                          law tradition        decision''.         uniform ,and
                                                                                   consistent.
37.   Which of the following best         law is a system      similar cases       Once decided, a       a case which is
      describes the concept of            of known rules       should be           case cannot be        poorly decided
      stare decisis?                      applied by           treated similarly   heard again           does NOT
                                          judges                                                         become part of
                                                                                                         the common
                                                                                                         law
38.   Case A has just been filed .        The judge finds a    The judge           Case A is either      ALL of the        B and C above
      Which of the following              case exactly like    analyzes any        distinguished from    above
      describes the process of            Case A and           previous cases      or found to be
      case reasoning that a judge         applies the rules    similar to Case     similar to previous
      ordinarily would use in             of that case to      A . The rules of    cases
      deciding Case A ?                   case A . If there    those cases are
                                          is no exact          applied to take
                                          mach, the judge      new conditions
                                          decides Case A       into account
                                          as he or she         and are applied
                                          thinks best          to Case A
39.   Which of the following              Law is a system      Similar cases       Once decided, a       A case which is
      statements best describes           of known rules       should be           case cannot be        poorly decided
      the concept of stare decisis?       applied by           treated similarly   heard again           does not
                                          judges                                                         become part of
                                                                                                         the common
                                                                                                         law




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The following questions refer to the LAW/EQUITY chart on prior pages above.
                                                (a)                   (b)                   (c)              (d)                  (e)
40    Which of the following            In at action at       In most actions      To enforce a        None of the       All of the above.
      correctly describes a             law, the plaintiff    at law, a judge      judgment of law,    above.
      difference between an action      is usually            decides all          court orders and
      at law and a suit in equity?      seeking a decree      questions of         decrees are
                                        or a court order;     fact; in equity, a   directly
                                        in a suit in equity   plaintiff have a     enforceable by
                                        the plaintiff         constitutional       means of a
                                        usually is            right to have a      contempt-of-court
                                        seeking               jury decide          proceeding; in
                                        damages.              questions of         equity, a person
                                                              fact.                may have to
                                                                                   undertake a
                                                                                   second
                                                                                   proceeding called
                                                                                   execution.
41.   A chancery is associated with:    equity                precedent.           fairness.           TWO of the        ALL of the
                                                                                                       above.            above.
42.   For his new Hollywood film,       specific              a mandatory          damages.            damages or        Pietro is not
      Pietro hired Lorna for her        performance,          injunction                               specific          entitled to any
      unique ability of singing while   since Pietro's        ordering Lorna                           performance,      remedy.
      standing on her head. After       remedy at law is      to perform.                              as he chooses.
      only one day of filming, Lorna    inadequate
      grew unreasonable angry
      despite her huge salary and
      Pietro's excellent treatment of
      her, and she quit. If Pietro
      sues her for breach of
      contract. To what remedy is
      he entitled?
43.   Which of the following best       Common law            Common law           Remedies in         a and b.          b and c.
      describes a key distinction       remedies were         remedies are         equity apply only
      between common law                originally            limited to           to lawsuits
      remedies and equitable            developed by the      recovery of          involving real
      remedies?                         English               land, personal       property, whereas
                                        chancellors,          properties, and      common law
                                        whereas               money                remedies can be
                                        remedies in           damages,             awarded in any
                                        equity were           whereas              lawsuit.
                                        created by the        remedies in
                                        English kings         equity go
                                                              beyond these
                                                              common law
                                                              limitations.

44. In order to have a case heard in a court of equity, a plaintiff must show:
    a) his remedy at law is unsatisfactory.                          d) ANY OF THE ABOVE.
    b) collecting a judgment from defendant would be difficult.              e) NONE OF THE ABOVE.
     c) he would suffer very substantial harm.

45. The following remedies are available in a case in equity.
    a) compensatory damages.                 d) NONE OF THE ABOVE.
    b) statutory damages.                    e) ALL OF THE ABOVB.
     c) exemplary damages.

46. A decision in an equity trial may be enforced by:
    a) attachment of property.             d) NONE OF THE ABOVE.
    b) levy.                       e) ALL OF THE ABOVB.
     c) garnishment of wages.

47. Equity is administered by the _____ courts.
    a) law           b) chancery            c) merchant            d) ALL OF THE ABOVE.          e) NONE OF THE ABOVE.

48. In equity courts, _____ damages are NOT an available remedy.
     a) monetary      b) statutory chancery c) unliquidated      d) expectancy                e) NONE OF THE ABOVE is available.

49. In a Nebraska court Nishka sues Tristan for specific performance and for money damages resulting from Tristan's breach of contract.
    Which of the following is a true statement about the remedies available to Nishka?
    a) Nishka can recover money damages only from a court of equity, and specific performance only from a court of law.
    b) Nishka cannot have both specific performance and money damages; she must select only one remedy for breach of contract.
    c) Nishka is entitled to both remedies from the same court.
    d) a and b above are true.
    e) a and c are true.

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50. The air around Dottie's home is being polluted by Ed burning garbage on his land. For Dottie to obtain a court order forcing Ed to stop,
    she must:
    a) file suit in an equity (Chancery) court because an injunction is an equitable remedy.
    b) file suit in a law court, because an injunction is a legal remedy.
    c) file suit in a law court, because law and equity have been merged in the U.S.
    d) file suit in the U.S. supreme court, which has jurisdiction over these issues.

Classification
51. Which of the following is private law?
    a) the law of property.   b) administrative law.        c) the law of business relations.     d) a and c.

52. Carol Curious made a contract with Dirk Dealer. What is the nature of the law that governs the contract? It is:
    a) Substantive law. b) private law. c) civil law d) all of the above. e) b and c only.


                                                       ESSAY QUESTIONS
53. Assume of the following laws cover the protection of wild birds in their global flights, but that the laws all impose different limits on how
    many wild geese may be killed by hunters each year. Which ranks highest in authority?

54. Describe the three steps process used in legal reasoning on a case by case basis. How does this process apply to cases of first
    impression?

55. Describe the historical development of common law courts and courts of equity in England and the United States.

56. Delmar appeals the loss of his suit against Ernest to a court consisting of seven judges. Three of the judges agree with Ernest for the
    same legal reasons, one judge agree with Ernest for different legal reasons, and three judges agree with Delmar. Who wins in the
    appeals court and why? What effects does this decision have on future cases?

57. Suppose that in 1914 the state's highest appellate court held that horse drawn carriages always have the right of way over automobiles
    at downtown intersections. Thus, in 1914 a carriage driver who was injured by an automobile driver's failure to yield the right of way
    would have been entitled to damages from the automobile driver. Assume that in 1914 one person in a hundred owned an automobile,
    that seventy people in a hundred used horse- drawn carriages for transportation, and that the average number of cars being driven per
    block was one. Today Carl, a carriage driver who was injured when he was forced into a stream of automobile traffic, claims the right of
    way under the 1914 decision, and sued the motorist who hit his carriage. How should the 1914 opinion be applied under the doctrine of
    stare decisis?

58. Metropolis has a city ordinance which reads, "No evening or overnight parking on city streets is permitted." At 1:00 am, Charity parks her
    car on a city street for ten minutes to deliver medicine to Herb Hurting and receives a ticket for violating the ordinance. Charity disputed
    the validity of the ticket. With reference to statutory interpretation, explain whether Charity has violated the ordinance.

59. Corinne earned an "A+" on the first midterm examination in business law. Timothy failed the test. To prevent Corinne from doing well in
    the course and to improve his own chances of passing, Timothy phoned Corinne ten times each night and hang up when she answered
    the phone. The next week, Timothy broke the bedroom window in her house and stole her notes. Halfway through the semester,
    Corinne sued Timothy to stop the phone calls and to receive compensation for replacement windows and the notes. To what remedy is
    Corinne entitled? Can she received them in a single lawsuit?

60. Suppose the following: In 1992, the Ohio Supreme Court ruled that a tenant could not recover damages from a landlord for injuries
    caused by a burglar if the landlord provided security for tenant's building. In 1993, the Kentucky Supreme Court ruled that a landlord
    was liable for the injuries suffered by a tenant who was assaulted by a mugger in the garage of the apartment building, even though the
    landlord had hired a guard and had installed security gates at the entrance to the garage. Currently pending before an Ohio trial court is
    a case in which a tenant was injured by a rapist in an apartment building guarded by a security patrol . Under the doctrine of stare
    decisis, what will the Ohio trial court decide? why?

61. Dennis Dirigible won a judgment against Hattie for damages he suffered in a ballooning accident. Hattie appealed and requested that
     the appellate court do the following: (1) grant her a new trial on the basis of a statement made under oath by Ludwig Levitation, a
     relevant and important witness who was discovered after the trial; (2) rehear the testimony of Bailey Blimp, Hattie's expert witness who
     testified at the trial, and (3) consider her claim that trial court judge Augustus Aloft made a prejudicial error in refusing to allow Hattie to
     introduce certain important evidence at trial. How should the appellate court rule on each of these requests?




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                                                             QUIZ 1D
                                            THE LAW AS A DISCIPLINE
                                                                 Background/History
                                                                   (Kempin Ch. 1)
Fill-in-the Blank
The year 1066 brought the ____ (1) conquest (by _____ __ _____ ) ( 2) which led to the creation of the common law of England.

The two major systems of law around the world are _____ (3) and _____ ( 4).

True-False
1) Before William the Conqueror conquered England, there was no nationwide system of law in Britain.

2) England has an "unwritten" constitution consisting of an amalgam of custom and ancient statutes.

3) Both U.S. and British courts interpret statutes in light of the intent of the legislature.

4) The original pre-Norman Anglo-Saxon law was derived from societal custom.

Multiple/ Choice
5) Civil law is :                                                          12)The thinking of lawyers:
    a) the same as common law, except it leads to money                        a) affects the statutes that are passed by Congress.
           damages.                                                            b) affects how statutes are interpreted.
    b) public law prosecuted by a District Attorney.                           c) has been the main source of change in the law.
    c) private law brought to a court by a private citizen.                    d) a and b
    d) A and b.                                                                e) ALL of the above.
    e) NONE of the above.

6) The principles of equity and common law:                                13) The word court originally referred to:
    a) are still kept separate in some courts.                                  a) The rectangular enclosed yard of a medieval house.
    b) have both substantive and procedural aspects.                            b) a group of persons gathered together.
    c) are merged, but one judge may not sit in both trials.                    c) early English royal councils.
    d) All of the above, except one.                                            d) a and b
                                                                                e) all of the above.

7) Judicial review of legislation is common in:                            14) The following types of courts interpret statutes in the light of the
    a) most civil law countries.         c) some civil law                      intent of the legislature when it passed the statute:
          countries.                                                            a) common law courts.              c) U.S. courts.
    b) all civil law countries .             d) U.S. state courts.              b) civil law courts.               d) English courts.
                           e) NONE of the above.                                                       e) a and c.

8) In pre- Norman law, the punishment for a homicide was:                  15) Three major systems of law are:
    a) imprisonment.       c) compensation to the family.                       a) the common law.             c) Napoleonic law.
    b) slavery.            d) compensation of the above.                       b) the civil law.               d) ALL of the above.
                                                                                                   e) TWO of the above.

9) The following system is oriented toward precedent and stare             16) The following system is oriented toward a code of law:
    decisis.                                                                    a) Roman law.           c) Napoleonic law
    a) Roman law                c) Napoleonic law                               b) common law           d) civil law
    b) common law               d) civil law                                                        e) ALL of the above.
                        e) NONE of the above.

10) In the United States, the constitutionality of a particular piece      17) In pre-Norman law consequences of committing a crime might
     of legislation is determined by:                                           comprise:
     a) the courts.               c) a constitutional council.                  a) compensation to the king . c) imprisonment.
     b) the legislature itself.   d) b and c                                    b) slavery.                   d) ALL of the above, EXCEPT c.
                           e) none of the above.                                               e) ALL of above, EXCEPT b.

11) An appellate court consist of:                                         18) A trial court consist of:
     a) one judge.      c) three or more judges.                               a) one judge.               c) three or more judges.
     b) three judges.        d) at least two judges.                           b) three judges.            d) at least two judges.




.




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                                                                   QUIZ 1X
                                                THE LAW AS A DISCIPLINE
                                                              CLASSIFICATION OF LAWS
                                                         (see Classification Notes in Quiz Packet)

                                                           ON YOUR SCANTRONS
For the following areas of law, mark:                                                 For the following areas of law, mark:
“a” for PRIVATE law       “b” for PUBLIC law     “c” for BOTH PRIVATE                 "a” for         "b” for EQUITY       "c” for BOTH LAW and EQUITY
                                                 law and PUBLIC                       LAW
1) contract law                    8) corporation law                                 57) rescission             72) fairness
2) constitutional law              9) partnership law                                 58) levy                   73) conviction
3) tort law                        10) tax law                                        59) damages                74) specific performance
4) wills                           11) property                                       60) replevin               75) petition
5) administrative law              12) antitrust                                      61) laches                 76) statute of limitations
6) agency                          13) employment law                                 62) restitution            77) contempt of court
7) criminal law                    14) sales (commercial) law (U.C.C.)                63) attachment             78) decree
                                                                                      64) complaint              79) stare decisis
“a” for CIVIL law        “b” for CRIMINAL law     “c” for CIVIL law                   65) injunction             80) jury
                                                  ANDCRIMINAL law
                                                                                      66) judgment               81) precedent
15) contract law                 22) corporation law                                  67) discretion             82) judge
16) constitutional law           23) partnership law                                  68) jail                   83) common law
17) tort law                     24) tax law                                          69) guilty                 84) precedence
18) wills                        25) property                                         70) garnishment            85) prosecutor
19) administrative law           26) antitrust                                        71) court order            86) liable
20) agency                       27) employment law
21) criminal law                 28) sales (commercial) law (U.C.C.)

“a” for COMMON law        “b” for STATUTORY law        “c” for BOTH                   “a” if it is an         “b” if it is NOT an INCHOATE crime
                                                       COMMON LAW and                 INCHOATE crime
                                                       STATUTORY LAW                  (Consult your
29) contract law                 36) corporation law                                  professor for the
30) constitutional law           37) partnership law                                  answers to these
                                                                                      questions.)
31) tort law                     38) tax law                                          87) attempted extortion   90) felony
32) wills                        39) property                                         88) indictment            91) conspiracy to embezzle
33) administrative law           40) antitrust                                        89) theft                 92) aiding and abetting
34) agency                       41) employment law
35) criminal law                 42) sales (commercial) law (U.C.C.)


                                                                                      “a” if it follows at least partially the COMMON LAW system,

“a” for LAW,                 “b” for EQUITY            “c” for BOTH LAW               “b” if it follows the CIVIL LAW system,
                                                       and EQUITY
43) contract law                 50) corporation law
44) constitutional law           51) partnership law
45) tort law                     52) tax law
46) wills                        53) property                                         93) Australia              97) Japan
47) administrative law           54) antitrust                                        94) India                  98) Mexico
48) agency                       55) employment law                                   95) Germany                99) Canada
49) criminal law                 56) sales (commercial) law (U.C.C.)                  96) Brazil                 100) Ireland




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                                                 SECTION 2
                                           THE COURT SYSTEM
                                                      OBJECTIVES
                                                 FOR CRITICAL THINKING

                               TO DIVIDE THE MYRIAD COURTS COMPRISING THE U.S. COURT SYSTEM
      DIVISION                 ACCORDING TO THEIR JURISDICTION
                               TO DIVIDE THE CONCEPT OF JURISDICTION ACCORDING TO:
      DIVISION                 REMEDY REQUESTED       TYPE OF CASE     RELATION TO OTHER COURTS
        (JURISDICTIO            in personam           subject matter  exclusive
                                in rem                diversity       concurrent
        N)                      quasi in rem                           federal question

                               TO DISTINGUISH THE ROLE OF THE TRIAL COURT FROM THE ROLE OF THE
                               APPEALS COURT.
                               TRIAL : judge (issues of law)/jury APPEALS (review for error)
                               (issues of fact/truth/credibility) Standards of Review
                               Standards of Proof                  clear error (issues of fact)
      DISTINGUISH               preponderance of the              difference in opinion (issues of law)
                               evidence                              majority     per curiam, memorandum.
                                clear and convincing                plurality
                               evidence                              dissenting
                                beyond a reasonable doubt

                               TO DIVISION A CASE/TRIAL ACCORDING TO THE OUTCOMES
                                   decision on the merits                   summary judgment
                                  liable/NOT liable(acquittal)               non-suit
      DIVISION                    guilty (conviction)/NOT guilty             directed verdict
                               (acquittal)                                    j.n.o.v.
                                  hung jury/mistrial                         affirmed/ reversed/ reversed and
                                  dismissal w/ prejudice                      remanded
                                  dismissal w/o prejudice
                                  a plaintiff (defendant) vs. an appellant            liable vs. guilty
      DISTINGUISH              (appellee)                                              hung vs. from mistrial
                                  precedent vs. precedence
                                  appellant                       precedent                      federalism
      TERMINOLOGY                 appellee                        precedence                     sua sponte




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                                                                 QUIZ 2A
                                             THE COURT SYSTEM
                                          (Courts, Jurisdiction, Litigation)
                                                                 (Cheeseman Ch. 2)
                                                                Terminology
Courts
The highest court in the United States is called the ___ _____ (1) consisting of ____ (2) justices in total.

At the trial level, all federal courts are called the _________ (3) Court.

Joyce wants to bring a suit in federal district court for a federal civil rights violation. This would be an example of _ _ (4) jurisdiction.

In most appellate cases, the attorneys will submit to the courts, _______ (5) which are written documents explaining why they believe the
result of the court should be either reverse or affirmed.

Trial courts at the federal level are called the ___ (6) court. The appeals court at the federal level is called the __ (7) court.

Whether state or federal, the highest court in the system is called the ____ _ ____ ____ (8).

Annually, approximately ___ (9) to ___ (10) petitions for ____ (11) are made to the U.S. Supreme Court. After the votes of at least ___ (12)
Justices to grant the petition (which occurs in only ___ (13) cases per year), the Court issues a w___ _ ___ (14).

Other than majority, minority, and tie decisions, the U.S. Supreme Court can issue ___ (15) and ___ (16) decisions.

If a justice agrees with the majority decision but for a different reason, he/she can write a(n) ___ (17) opinion. If a justice disagrees with the
majority decision, he/she can write a(n) ___ (18) opinion.

Jurisdiction
To bring a lawsuit against a defendant, a plaintiff must have ___ _ __ (19) which means that the plaintiff must have something to gain or
lose by the outcome of the case.

Most states have ____ (20) jurisdiction courts such as ____ (21) courts and ___ (22) courts to hear matters of a specialized nature and ____
(23) jurisdiction courts that hear cases that the inferior courts cannot hear.

Many states have created ____ (24) jurisdiction courts that hear only civil cases of a small dollar amount and for which the parties need no
lawyers.

Federal courts have jurisdiction in cases where there is a ____ ____ (25) and in cases of ___ _ ____ (26).

When the plaintiff and the defendant are citizens of different states, a federal court may have ____ (27) jurisdiction to hear the case.

State and federal courts have c___ (28) jurisdiction to hear certain cases, but federal courts have e____ (29) jurisdiction to hear certain other
cases.

_____ (30) involves authority to hear a case, while ____ (31) involves where (location) the case is heard.

To legally hear a case, a court must have _ ___ (32) jurisdiction over the defendant and ___ (33) jurisdiction over the topic of the case.

The court may have __ __ (34) jurisdiction over a case if property relevant to the case is located within the geographical boundaries of the
court.

According to ___ (35) jurisdiction also known as ___ (36) jurisdiction, a plaintiff who has won a judgment in state A against a defendant may
go to the courts of state B to collect the judgment by attaching the property that the defendant owns in state B.

As long as he has had some ___ ___ (37) with the state, ____ ____ (38) can be used to obtain jurisdiction over out-of-state defendants.

Although a contract may include a ___-___ (39) clause, the courts generally discourage ____ ___ (40).

litigation
discovery, contingency, statute of limitation, voir dire, peremptory, summary judgment, directed verdict, j.n.o.v., appellant/appellee,
petitioner/respondent, remittitur/additur, rebuttal/rejoinder, arbitration/mediation, ADR, deposition/interrogatory
imprimatur

In the ANSWER, what step immediately follows the: demurrer (40) motion for summary judgment (41).

What step immediately follows the: pre-trial conference (42), summons (43), notice of appeal (44).

During the TRIAL, what step immediately follows the: plaintiff’s case (45), the defendant’s case (46), entry of judgment (47), verdict (48).
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What step immediately precedes the: closing arguments (49), lawyers challenges (50), closing arguments (51), jury deliberations (52),
opening brief (53).


                                                           STUDY HINT
In preparing for the quiz, you may practice with your own combinations of ―follows‖ and ―precedes‖.


A _____ (54) is a prospective juror. During the jury selection process, each lawyer gets a limited number of ________ (55) challenges.

The complaint, summons, and answer are included in the _____ (56) phase of the pre-trial process.

The interrogatory, deposition, and admissions are included in the _____ (57) phase of the pre-trial process.

The litigant who loses at trial and then appeals the verdict/judgment is referred to as a(n) ________ (58).

Depositions, production of documents, examinations, etc. are part of the _____ (59) phase of the pre-trial process.

A ____ (60) is a discovery process that involves oral testimony prior to trial.

A criminal defendant may be found ______ (61) while a civil defendant may be found ______ (62).

The three standards of proof (evidence) are _______ (63), ________ (64), and _________ (65).

In Latin, the "n.o.v." in judgment n.o.v. stands for _______ __ _____ (66).

If the issues in a case have already been resolved such that there is no longer a controversy between the two litigants, then the case is said
to be ______ (67).

Assume a defendant believes that a plaintiff’s complaint is defective because it omits an element in the PFC. The defendant would file a
________ (68) followed by a motion for _____ ______ (69) with the language “plaintiff fails to _______ (70)

Occasionally, a judge ________ (71) a jury to isolate them from contact with the public to avoid tampering and exposure to trial publicity.

If the U.S. Supreme Court decides to hear a case, it will issue a writ of ________ (72).

Complaint IS TO answer AS cross-complaint IS TO _______ (73).

The litigant who loses at trial and then appeals the decision is referred to as a(n) _________ (74).

A defendant who goes to court only to object to the jurisdiction of the court over him is making a _____ ______ (75).

The two types of defenses are: _______ (76) and __________ (77).

A type of discovery involving written answers to questions is referred to as a(n) ____ (78).

Assume that a jury awards a plaintiff less than he expected. If the judge agrees that the award was deficient, then he might grant a motion
for a new trial unless the defendant agrees to a ____ (79).

Assume that a jury returns an excessive award against a defendant. If the judge agrees that the award was excessive, then he might grant a
motion for a new trial unless the plaintiff agrees to a ________ (80).

A state’s ___ __ ____ (81) may be used to obtain jurisdiction over out-of-state persons as long as the non-resident has some ___(82)
contact with the state. Otherwise such jurisdiction would violate the ___ ______ _____ (83) in the _____ th (84) Amendment to the U.S.
Constitution.

A contract between two parties may include a _____ - _____ (85) clause that designates the courts of a certain state to hear any contractual
dispute arising between the parties.

All courts generally disapprove of ______ ______, (86) which involves a litigant looking for a court/jurisdiction that might be most favorable to
his cause.

A major reason depositions are used is possibly to _________ (87) the testimony given by witnesses at trial.

If a litigant (generally a criminal defendant) believes pre-trial publicity and emotions may unduly prejudice local jury pool, he may make a
motion for a ______ __ _________ (88).

If a defendant fails to file an answer to a complaint, then he may be subject to a ________ _______ (89).

On appeal, the standard of review for errors of law (by a trial judge) is ________ (90), while the standard of review for errors in fact (by the
jury) is _______ (91).

A plaintiff may use ____ __ ____ (92) jurisdiction to execute in one state a judgment won in another state.
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The ____ ____ ____ (93) (court) in a state is commonly, but not always called, the supreme court.

In a court of _____ (94), a judge must follow precedent. But, in a court of _____ (95), a judge may use his own sense of fairness.

A judge decides issues of _____ (96), while a jury decides issues of _____ (97).

An organization may file a brief called a(n) ____ ____ (98) even though the organization has no standing in the case and is not a litigant.

The three standards of proof (evidence) are _______ (99), ________ (100), and _________ (101).

Majority, minority, unanimous, and tie are kinds of supreme court decisions. The other(s) is(are): _____ (102), _____ (103), _____ (104).

In ___ (105) courts, sometimes called courts of c_____ (106), a plaintiff might seek to change the behavior of the defendant instead of
seeking monetary damages. The judge in this kind of court is called a c_______ (107).

In the U.S. court system, s___ d____ (108) requires that a judge’s rulings of law be constrained by _____ (109).

The doctrine that a party seeking relief must have a personal stake in the outcome of a case IS CALLED __ (110).

ACRONYMS: Write out the following acronyms: ADR (111)              WIPO (112)      EU (113)      NAFTA (114)       GATT (115)    WTO (116)
APA (117)      ERISA (118)

DEFINITIONS:                   comity (119)        ad hoc (120)      abridgment (121)     promulgate (122)      encumbered (123)




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MG201 Business Law I                                                                                     Montgomery College, Rockville

                                                                QUIZ 2B
                                            THE COURT SYSTEM
                                         (Courts, Jurisdiction, Litigation)
                                                                (Cheeseman Ch. 2)
                                                                     T-F/M-C


                                                             2B--Courts
     True-False (1-7)
1)   Federal courts can hear any case that arises within the borders of the United States.

2)   The United States District Court is an example of a federal Court.

3)   The United States District Courts are the federal court's trial courts of general jurisdiction.

4)   The United States Courts of Appeal hear appeals from District Courts only in their own geographic district.

5)   The U.S. Court of Appeals for the Federal Circuit has as one of its functions the review of U.S. Claims Court decisions.

6)   Tori Taxprotestor may sue in a Small Claims Court if she wants to file suit to obtain a refund of $7.11 in federal taxes under the federal
     Internal Revenue Code.

7)   Among the minor judiciary of the states are small claims courts, municipal courts, circuit courts, and court of general jurisdiction.

8)   The U.S. Constitution establishes the U.S. Supreme Court, the Circuit Courts of Appeal, and the federal District Courts.

     Multiple-Choice (8-28)
10) Which statement is correct?
    a) There is only one federal court of appeals in each of the federal circuits.
    b) There is only one federal court of appeals.
    c) A precedent created in one federal court of appeals is binding on all federal courts of appeals.
    d) There is no federal court of appeals.
    e) Federal courts cannot hear a case unless it deals with a federal question.

11) A state traffic court, state juvenile court, and a state probate court would be examples of:
    a) general jurisdiction courts.               c) small claim courts,
    b) limited jurisdiction courts.               d) criminal courts.
                     e) A and C.

12) Which of the following are examples of federal special court?
    a) U.S. Tax Court, U.S. Claims Court, U.S. Bankruptcy Court, U.S. Circuit Court of Appeals.
    b) U.S. Tax Court, U.S. Claims Court, U.S. Bankruptcy Court, U.S. Court of International trade.
    c) U.S. Tax Court, U.S. Claims Court, U.S. Bankruptcy Court, U.S. Supreme Court.
    d) U.S. Claim Court, U.S. Bankruptcy Court, U.S. Court of International Trade, U.S. Circuit Court of Appeals.
    e) U.S. Supreme Court, U.S. District Court.

13) Which of the following are trial courts.
    a) The U.S. Tax Court.                      c)    The state trial court.
    b) The U.S. Federal District Court.         d)    All of the above.
                   e) B and C.

14) The United States District Courts:
    a) are Court of general jurisdiction.       c)    may take evidence and hear testimony.
    b) may have jury trials.                    d)    all of the above.
                   e) a and b.

15) Which of the following courts are not appellate courts?
    a) The U.S. Supreme Court.               c) The D.C. Circuit Court.
    b) The U.S. Circuit Courts.              d) The U.S. Claims Court.
                   e) C and D.

16) The United States Circuit Courts of Appeal:
    a) are the first level of appeal in the federal system.
    b) review the trial court records to determine if a reversible error has occurred.
    c) can hear new evidence and testimony.
    d) A and C.
    e) A and B.



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17) Which of the following best describes which cases are heard by the U.S. Supreme Court?
    a) That court must hear all federal cases appealed to it.
    b) That court must hear all state cases appealed to it.
    c) The president decides which cases that court will hear.
    d) With a few exceptions, that court selects which cases it will hear.

18) The proper sequence of court in an appeal would be:
    a) U.S. District court, U.S. Circuit court of Appeals, U.S. Supreme Court.
    b) State trial court, state appellate court, state supreme court, U.S. Supreme Court.
    c) U.S. Supreme Court, U.S. Circuit court of Appeals, state supreme court.
    d) A and B.

19) Appeals from most administrative agencies are heard by the:
    a) U.S. District court.           c) U.S. Circuit Court of Appeals for the Federal Circuit.
    b) U.S. Claims Court.             d) U.S. Supreme Court.
                       e) None of the above.

20) The U.S. Supreme Court of appeals can hear cases from the:
    a) U.S. Claims court.                      c) U.S. Patent and Trademark Office.
    b) U.S. Court of international trade.      d) two of the above.
                       e) None of the above.

21) The U.S. court of Appeals for the Federal Circuit can hear appeals from the:
    a) U.S. Bankruptcy Courts.               c) U.S. Patent and Trademark Court.
    b) U.S. Tax Court.                            d) two of the above.
                        e) None of the above.

22) The Court of Appeals of the D.C. Circuit can hear Appeals from the:
    a) federal administrative agencies.           c) appropriate U.S. District Court.
    b) U.S. Bankruptcy Court.                d) All of the above.
                       e) None of the above.

23) The term “Article III court” refers to the:
    a) U.S. Supreme Court.            b) federal appeals courts. c) all federal courts.         d) state courts.       e) None of the above.

24) The State of Maryland belong to the:
    a) Third Circuit    b) D.C. Circuit           c) Fourth Circuit            d) Maryland Circuit         e) None of the above.

25) The Fourth Circuit includes all the following states except:
    a) Washington, D.C.       b) South Carolina. c) North Carolina.            d) West Virginia.           e) None of the above.

26) In total, there are how many U.S. Circuit Courts of Appeal?
    a) 9             b) 13    c) 11     d) 14            e) 12

27) There are how many federal U.S. District Courts in the federal court system?
    a) 99             b) 12     c) 96       d) 13            e) 11

28) Annually, the U.S. Supreme Court receives about ____ appeal petitions.
    a) 1,000 cases.     b) 2,000 cases. c) 3,000 cases. d) 4,000 cases. e) 7,000 cases.

29) Annually, the U.S. Supreme Court issues opinions in about::
    a) 100 cases.       b) 200 cases. c) 500 cases. d) 1,000 cases. e) 7,000 cases.

30) In order for a case to be considered by the U.S. Supreme Court,
    a) the amount in controversy must be at least $75,000.      c) there must be a federal question.
    b) at least four justices must agree to hear the case.            d) TWO of the above.
                           e) NONE of the above.

31) If Franklin files a law suit against Bill in federal court, most likely Franklin's court of last resort will be:
    a) the appropriate Federal District Court.               c) the state trial court.
    b) the appropriate Federal Court of Appeals.                  d) the state supreme court.
                           e) the U.S. Supreme Court.

To answer the following (5) questions, refer to the chart: STATE COURT SYSTEMS.
32) Which state has no intermediate appellate court?
    a) Maryland.                 c) Nevada.                              e) TWO OF THE ABOVE.
    b) District of Columbia.     d) Vermont.

33) Which state has named its “court of last resort” the Court of Appeals?
    a) Maryland.                 c) Wisconsin.                     e) TWO OF THE ABOVE.
    b) Puerto Rico.              d) New York.

34) All the following are names of the court of general jurisdiction of the different states, EXCEPT:
    a) Circuit Court.               c) Superior Court.               e) TWO OF THE ABOVE.
    b) District Court.              d) Municipal Court.
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35) Which state has named its trial court the “Supreme Court”?
    a) Maryland.                   c) Wisconsin.               e) TWO OF THE ABOVE.
    b) Puerto Rico.                d) New York.

36) All the following are names of the limited-jurisdiction courts of the different states, EXCEPT:
    a) Court of Common Pleas        c) Superior Court.               e) TWO OF THE ABOVE.
    b) District Court.              d) Court of First Instance.

37) Leroy properly filed a case in the Federal District Court in his district. If Leroy lost his case and wants to appeal, he:
    a) must appeal to the state court of appeals.
    b) must appeal to the U.S. Court of Appeals for his district.
    c) must appeal to the U.S. Court of Appeals for the Federal Circuit.
    d) must appeal to either the appropriate state or federal court of appeals.

38) Lisa was convicted in a state court of a crime. She appealed to the state appellate court and the state supreme court and has lost the
    appeal both times. If Lisa wants to appeal again, she:
    a) may not appeal again. The state supreme court is the final word on all cases hear in the state.
    b) may appeal to the U.S. Supreme Court, because all state cases will be heard by that court.
    c) may appeal to the appropriate U.S. Supreme Court of Appeals, because all state cases will be heard by that court.
    d) may appeal to the U.S. Supreme Court, but only if her case raises a federal question.

39) Jenkins was accused of driving through a stop sign. The only evidence that Jenkins ran through the stop sign was the police officer's
    statement that Jenkins ran the sign. The judge refuses to find Jenkins guilty of running the stop sign because the state had not proved
    its case beyond a reasonable doubt. In the past, the court had found people guilty of running a stop sign based solely on the word of the
    police officer. Such a decision
    a) settled the disputed between Jenkins and the state.
    b) is a good example of judicial restraint.
    c) created new law.
    d) is beyond the power of the average judge.
    e) Two of the above. (a and c).

40) Many populous states have set up limited jurisdiction courts, such as criminal, juvenile, probate, family law, and small claim courts.
    Discuss the reasons states created such limited-jurisdiction courts.




                                                            2C--Jurisdiction
     True-False (1-17)
1)   In order to have jurisdiction in a case a court must have either subject matter jurisdiction or in personam jurisdiction.

2)   A probate court has jurisdiction to hear a case dealing with an automobile accident.

3)   A court whose jurisdiction is limited to hearing cases of up to $10,000 cannot enter a verdict in favor of the plaintiff for $50,000.

4)   In personam jurisdiction over the plaintiff is obtained by the plaintiff filing the suit.

5)   A court can obtain jurisdiction over anyone who can be served with a summons and a petition while physically present within the state.

6)   If a person is physically present in a state at the time the summons and petition are served on him, a court may obtain in personam
     jurisdiction over him even though he had a very minor contact with the state.

7)   A judgment of a court lacking personal jurisdiction violates the due process clause of the Fourteenth Amendment.

8)   A court may force a person who is physically present in the state to appear before it, but if that person's visit was merely a fleeting visit,
     the court may not retain jurisdiction to enter a judgment against him.

9)   U.S. courts have never accepted the proposition that service of process could be accomplished only by personally serving the defendant
     while he was physically present in the state.

10) Due process requirements are satisfied when in personam jurisdiction is asserted over a nonresident corporate defendant that has
    certain minimum contacts with the state such that maintenance of the suit does not offend traditional notions of fair play and substantial
    justice.

11) In order to force an out-of-state defendant to come to the state to defend a suit, the due process clause requires that a business have
    certain minimum contracts with the state.

12) It is not necessary for a business to have any contacts with a state in order to force it to go another state to defend a suit brought against
    it.

13) If a court has jurisdiction only over the property involved in the case this is called in personam jurisdiction.

14) In most states, plaintiffs can use substituted service to bring under the jurisdiction of that court any defendant who cannot be found for
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   personal service.

15) A Rhode Island court has authority to handle a case involving land located within the state. This authority is called in rem jurisdiction.

16) Pedro sues Alison for divorce for custody of their son, and for $75,000 in child support. Even though they both live in the same state, this
    case can be brought in a federal court because the matter in controversy exceeds the sum of $75,000.

17) The term exclusive jurisdiction indicates that both the state and the federal governments have the ability to regulate a particular area of
    law.

     Multiple-Choice (18-36)
18) A situation in which both the federal and state courts have power to hear and decide a case would be described as what kind of
    jurisdiction?
    a) in rem.          b) in personam.           c) exclusive.           d) concurrent.         e) long-arm.

19) In order to meet the requirements of diversity jurisdiction one must have
    a) a federal question.
    b) citizens of different states, or a citizen of a state and a citizen of a foreign country, or a citizen of a state and a foreign country.
    c) an amount in controversy exceeding $75,000.
    d) ALL of the above.
    e) B and C.

The following (2) questions refer to your copy of U.S. CONSTITUTION:
20) Which of the following is exclusively under federal jurisdiction?
    a) admiralty law..      b) contracts law.        c) antitrust law.         d) TWO of the above.           e) ALL of the above.

21) The U.S. Supreme Court has original (trial-court) jurisdiction:
    a) in cases appealed from a state supreme court.               d) in ALL of the above cases.
    b) in cases involving impeachment.                        e) in NONE of the above cases.
    c) in cases involving one state suing another state.

22) The U.S. Supreme Court has appellate jurisdiction:
    a) in cases appealed from a state supreme court.                   d) in ALL of the above cases.
    b) in cases involving impeachment.                            e) in NONE of the above cases.
    c) in cases involving one state suing another state.

The following (1) question refer to the chart: JURISDICTION OF COURTS:
23) All the following are names of limited-jurisdiction federal courts, EXCEPT the:
    a) admiralty court.              d) TWO of the above..
    b) probate court.                e) there are NO limited-jurisdiction federal courts.
    c) small claims court.

24) The All the following are names of limited-jurisdiction federal courts, EXCEPT the:

25) Long arm statutes are used.
    a) to obtain in personam jurisdiction over in state defendants.
    b) to obtain subject matter jurisdiction over in state residents.
    c) to obtain in personam jurisdiction over out-of-state residents.
    d) to obtain subject matter jurisdiction over out-of-state plaintiffs.
    e) to obtain jurisdiction over a person suspected of having committed a crime within the state.

26) Choose the incorrect answer. A Texas court acquires in personam jurisdiction
    a) over the plaintiff by the plaintiff's filing the suit in Texas.
    b) over a defendant by serving the defendant with a summons and petition while the defendant is physically present within the state of
       Texas.
    c) over a corporation by virtue of the filing of the articles of incorporation of the corporation in the state of Maryland.
    d) by using the Texas long-arm statute to serve the summons on a criminal defendant who is physically present in the state of
       Wyoming.
    e) TWO of the above a and d.

     CASE ANALYSES
27) Roger, a resident of Indiana, went to California on vacation. While he was there, Jane a California resident, negligently struck him with
    her auto. Roger suffered $150,000 of damage. What choices does Roger have if he now wants to sue Jane.
    a) Roger may sue Jane in California court
    b) Roger may sue Jane in a federal court.
    c) Roger may NOT sue Jane in a federal court, because there is no federal question.
    d) A and B
    e) A and C.

28) Betty wants to sue ABC International, Inc. for $25,000 damages for civil violations of the FEDERAL antitrust laws. What are Betty's
    choices?
    a) Betty MUST use a federal court, since this is a federal question.
    b) Betty MAY use a federal court, since this is a federal question.
    c) Betty MAY NOT use a federal court, since the amount in controversy does not exceed $75,000.
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   d) Betty MUST use a state court.

29) Sally appeared in a county court because her dog bit her next door neighbor, Sue. The county court had jurisdiction to hear civil cases of
    up to $1,000. The case went to trial and the judge ruled that Sally was liable to Sue for $2,500. Sally
    a) must pay the $2,500 judgment because the judge ruled against her,
    b) must pay because the law does not permit her to appeal a judgment of the county court.
    c) need not pay the judgment because the court lacks jurisdiction over the parties involved in the case .
    d) need not pay because of the long arm statute.
    e) need not pay because the court has exceeded its jurisdiction.

30) Morrison wishes to file suit against McAdams. It would be more convenient for Morrison to file in his home state. Morrison could file suit
    in his own state…
    a) under any circumstances, It is always possible for a plaintiff to file suit in his or her own home state.
    b) only the defendant agreed to appear in Morrison's state.
    c) if Morrison serves the summons and petition on McAdams while McAdams is physically present in Morrison's state.
    d) if McAdams makes a special appearance in Morrison's state.
    e) Morrison can never file suit in his home state. He must sue McAdams in McAdams' home state.

31) Alexander wants to file suit against Morrison. Morrison lives in the state of Florida and Alexander lives in the state of California. A court
    in California could obtain in personam jurisdiction over Morrison if
    a) Morrison owns property in the state of California.
    b) Alexander serves the summons and petition on Morrison while Morrison is physically present in Florida.
    c) Alexander serves the summons and petition on Morrison while Morrison is physically present in California.
    d) Morrison makes a special appearance in the state of California.
    e) There are no circumstances under which Morrison can be forced to go to California to defend this suit.

32) Frederickson and Williams both live in Colorado. Frederickson wants to file suit against Williams in the state of Colorado. The Colorado
    courts may obtain personal jurisdiction                        e) Two of the above (b and d).
    a) over Frederickson by serving the summons and petition on him.
    b) over Williams by serving the summons and petition on him.
    c) over Williams by issuing a writ of habeas corpus.
    d) over Frederickson by his filing the suit.

33) Crook lives in the state of Oregon. Anderson lives in the state of Minnesota. Crook wants to sue Anderson in the state of Oregon. The
    Oregon courts may obtain in personam jurisdiction over Anderson.
    a) by serving the summons and petition on Anderson in Minnesota, if he has certain minimum contacts with the state of Oregon.
    b) by serving the summons and petition on Anderson in Minnesota. It is irrelevant whether Anderson has any contacts with the state of
    Oregon or not.
    c) cannot be obtained because Anderson is beyond the physical borders of the state of Oregon.
    d) cannot be obtained because Anderson has not consented to suit in the state of Oregon.
    e) cannot be obtained because Crook and Anderson must both be residents of the state of Oregon in order to file suit in that state.

34) Star Corporation 's principal place of business is in the state of Kentucky, It employs salesmen to solicit orders for its products in the
    state of New York. Star does not have an office in the state of New York. All orders were accepted in the state if New York files suit
    against Star Corporation in the state of New York. Star contends that it does not have to defend this suit in New York.
    a) Star is correct because it is only possible to serve a summons and petition on Star while it is physically present within the state.
    b) Star is correct because it has insufficient contacts with the state of Kentucky.
    c) Star in incorrect. It has certain minimum contacts with the state so it can be forced to defend the suit in Kentucky.
    d) Star is incorrect. it is always possible to file suit against a corporation in any state in the United States.
    e) None of the above.

35) Jackson, a driver for Acme Trucking Lines, was involved in a traffic accident in the state of Illinois Rita Smith, a resident of the state of
    Illinois, was injured in this accident. Jackson resided in the state of Virginia. Acme has its principal place of business in Virginia. It ships
    goods throughout the United States. The accident took place in Illinois. If Smith files suit against Acme Trucking.
    a) she must file the suit in the state of Virginia because Acme has its principal place of business there.
    b) she must file the suit in the state of Virginia because Jackson lives in the state of Virginia.
    c) she only may file in the state of Illinois if an officer of Acme is served with the summons and petition while physically present in the
           state of Illinois. If she can not do this, she must file the suit in the state of Virginia.
    d) Acme must defend the suit in Illinois Smith uses the Illinois long arm statute to serve the summons and petition on Acme.
    e) NONE of the above.

36) Stewart Construction Company builds roads throughout the Midwest. An employee of Stewart, Don Schum, while operating a road
    grader hit a car. The driver of the car, Peter Lynn, was injured in the accident. Lynn is a resident of the state of Missouri. Schum is a
    resident if the state of Nebraska. Stewart Construction Company has its principal place of business in Nebraska. The accident took
    place in Missouri. If Lynn files suit:
    a) he must file suit in Nebraska because that is where Stewart has its principal place of Business.
    b) Stewart must defend the suit in Missouri if Lynn uses the Missouri long arm statute to serve the summons and petition on Stewart.
    c) he must file it in Missouri because the accident took place in Missouri.
    d) Stewart must defend the suit in Missouri because a corporation can be sued in any state in the United states whether it conducts
         business in that state or not.
    e) he must file suit in Nebraska because that is where Don Schum has his residence.




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37) Stark wishes to file suit against Merryweather in the state of New Mexico. Stark determines that the courts in the state of New Mexico
    have jurisdiction over the subject matter of the case and in personam jurisdiction over Merryweather. Stark is now considering which
    county in New Mexico in which to file suit. Stark:
    a) file in every county in the state.
    b) may consult the venue statute to determine the proper county in which to file.
    c) may file in the county the defendant selects.
    d) may file in a county randomly selected by the clerk of the court.
    e) may do any of the above.

38) Tidwell contracted to sell his Picasso painting to Sanders. Thereafter, Tidwell refused to deliver the painting to Sanders. If Sanders
    goes to court to ask for a decree of specific performance ordering Tidwell to deliver the painting to Sanders.
    a) this type of relief generally can be obtained from a trial court in America.
    b) this is an equitable form of relief
    c) this is a common law form of relief.
    d) all of the above are correct.
    e) Two of the above are correct (a and b).

39) Jennifer, a resident of Kansas, collided with a vehicle driven by Jasper, a resident of Missouri. The accident took place in Kansas City,
    Missouri. Jasper wants to sue Jennifer for $75,000. He may file suit
    a) only in a state court in Kansas.
    b) in federal court in Kansas because the case deals with a federal question.
    c) in federal court in Kansas because the case involves diversity of citizenship and more than $75,000.
    d) in state court in Kansas because the case deals with a federal question.
    e) none of the above.

40) Bertha byte sued Herschel Hacker for infringement of her software copyright. Both Bertha and Herschel reside in Honolulu. Bertha can
    bring her law suit;
    a) in either a federal or a Hawaiian state court, because there is concurrent jurisdiction over copyright cases.
    b) only in a federal court if her claim is for more than $75,000.
    c) only in a Hawaiian state court, if her claim is for less than $75,000.
    d) only in a federal court, because the federal courts have exclusive jurisdiction over copyright cases.
    e) only in a Hawaiian state court, because she and Herschel are both residents of Hawaii.

41) Bradley was using an Acme chain saw. He purchased it from a hardware store in his town of St-Louis, Missouri. The manufacturer had
    its principal place of business in Detroit, Michigan. The manufacturer solicited business throughout the United States. It sold the chain
    saw that injured Bradley to the hardware store. Bradley wants to bring suit against the manufacturer in the state of Missouri. Is this
    possible?

42) Tidwell was a resident of Oregon. Zink was a resident of Arizona. A dispute arose between them and Tidwell wanted to file suit against
    Zink in Oregon. Zink was sent by his employer to Oregon on a matter totally unrelated to the dispute between Tidwell and himself. While
    in Oregon, Zink was served with a summons and petition. Zink thereafter returned to Arizona. Zink contends that the Oregon courts have
    no jurisdiction over him because he did not have any minimum contacts with the state of Oregon. Is Zink correct?

43) Upandcomer Corporation, a business based in Nevada, regularly delivers goods to Idaho, Colorado, and Utah, Hazel Hapless, a
    resident of Idaho, negligently collides with an Upandcomer truck parked in Virginia City, Nevada, causing $7.700 of damages. Where
    can Upandcomer sue Hazel? Why?




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                                                             SECTION 2D
                                                                    JUDGES
                                                                 OBJECTIVES
                                                            FOR CRITICAL THINKING
                                                                (Kempin Ch. 4)

                                             TO DIFFERENTIATE THE TYPES OF JUDICIAL OPINIONS.
                          JUDICIAL           unanimous vs. majority         per curiam vs. memorandum
                          OPINIONS           majority vs. plurality         certiorari
                                             concurring vs. dissenting
                                             TO DIFFERENTIATE THE TWO TYPES OF JUDICIAL PHILOSOPHY
                                             judicial activism vs. judicial restraint
                          JUDICIAL           $ BROWN vs. BOARD $ right to assisted suicide
                        PHILOSOPHY           $ ROE vs. WADE                 $ Miranda
  DISTINGUISH
                                             BONUS: 200 pts. – find 10 examples of judicial activism, also see
                                             www.freecongress.org/jsmp/actv???mpls.htm
                                             TO DISTINGUISH THE TWO MAJOR METHODS USED TO CHOOSE
                       CHOOSE AND
                                             AND REMOVE JUDGES.
                         REMOVE
                                             $ election vs. appointment (e.g., the Missouri Plan) $ impeachment
                                             TO DISTINGUISH THE COMPETING OBJECTIVES IN THE
                       OBJECTIVES            JUDICIARY.
                                             independence vs. control/accountability
                                             TO CONSIDER THE COMPONENTS THAT COMPRISE
                                             COMPETENCE FOR A JUDGE.
                                             skill                  fairness (e.g., recusal)
                                             temperament.

DISTINGUISH                                  TO DISTINGUISH A "JUDGE" FROM A "JUSTICE".
                          JUDICIAL           TO CLASSIFY CERTAIN CASES ACCORDING TO THE JUDICIAL
                        PHILOSOPHY           PHILOSOPHY (activism vs. restraint) THEY MAY REFLECT.
                                             MAJOR CASES:  Brown vs. Bd of Education  Roe vs. Wade  also, see Internet
                                                             Male-only draft is NOT a denial of equal protection of the law.
                                                             Unanimous verdicts are NOT required.
                                                             Busing is valid to achieve school desegregation.
                                                             NO prayer is to be permitted in school.
                                           OTHER EXAMPLES




                                                             Standing to sue requires direct interest in a lawsuit.
CLASSIFICATION                                               The Miranda warning must be given to all criminal suspects.
                         EXAMPLES                            Seniority has precedence over affirmative action.
                                                             Abortion is NOT a crime.
                                                             Juries may consist of fewer than 12 persons.
                                                             Homosexuality can be a crime.
                                                             Female pensions must be the same as male pensions.
                                                             States can regulate nuclear power.
                                                             Residency requirements for public assistance violates equal protection.
                                                             Communal living may be prohibited.




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                       TO IDENTIFY CURRENT, RECENT-PAST, AND EMINENT JUSTICES OF THE
                       U.S. SUPREME COURT.
                       1         Rehnquist (R) '72      Black (D) '37-'71            Holmes (R) '02-'32
                       2         Stevens (R) „75        Brennan (D) '56-'90          Harlan (R) '77-'11
                       3         O'Connor (R) ' 81      B. White (D) '62-'93         Cardozo (D) '32-'38
                       4         Scalia (R) '86         T. Marshall (D) '67-'91      Fortas (D) '65-'69
     LISTING           5         Kennedy (R) '88        Blackmun (R) '70-'94         (CJ) Warren (R) '53-'69
                       6         Souter (R) '90         O. Douglas (D) '39-'75       Frankfurter (I) '39-'62
                       7         Thomas (R) '91         Stewart (R) '58-'81          Brandeis (D) '16-'39
                       8         Ginsburg (D) '93       Burger (R) '59-'86           J. Marshall (F) '01-'35 (CJ)
                       9         Breyer (D) '94         Powell (D) '72-'87           Jay (F) '89-'95 (CJ)
                                                         Warren (R) '58-'69           Taft (R) '21-'30 (CJ)

                               judicial restraint       comity                       majority
                               judicial activism        amicus curiae                minority
                               pro se                   recusal                      plurality
 TERMINOLOGY
                               certiorari                                             concurring
                                                                                       dissenting
                                                                                       per curiam




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    TABLE 2-1: Typical Judicial Restraint Decisions
    1. Male-only draft is not a denial of equal protection of the law.
    2. States can regulate nuclear power.
    3. States can tax the foreign income of multinational corporations.
    4. Prayer in the legislature does not violate the First Amendment.
    5. Unanimous verdicts are not required, and juries may consist of fewer than twelve persons.
    6. Communal living may be prohibited.
    7. Homosexuality can be a crime.
    8. Class action suits require actual notice to members of the class.
    9. Plaintiffs must have direct interest in a lawsuit to have standing to sue.
    10.Seniority has preference over affirmative action in layoffs.
    11.A federal law that allows judges to deny bail to accused criminals who may pose a threat to society is constitutional.
    12.State and local employees are subject to the Federal Fair Labor Standards Act.



    TABLE 2-2: Typical Judicial Activism Decisions
    1. Busing is a valid technique to achieve school desegregation.
    2. Legislative apportionment must be based on population and not area.
    3. No prayer is to be permitted in school.
    4. The Miranda warning shall be given to all criminal suspects prior to interrogation.
    5. Abortion is not a crime.
    6. Female pensions must be the same as male pensions, even though females live longer.
    7. There shall be equal pay for comparable worth.
    8. Legislative veto of decisions of governmental agencies is unconstitutional.
    9. Residency requirement for public assistance violates equal protection.
    10.OSHA inspectors must have a search warrant if a business objects to inspection.
    11.State lows that require teaching "Creation Science" as well as evolution are unconstitutional.
    2.Certain public employees, such as a public defender, cannot be fired because of political affiliation.



    TABLE 2-3: Selected Conflict-of-Laws Principles
   1.    Liability for injury caused by             State in which injury occurred
         tortious conduct

   2.    Validity of a contract                     State in which contract was made (signed)
                                                   ,OR
                                                    State in which contract is performed, OR
                                                    State with most significant contacts, OR
                                                    State specified in the contract

   3.    Inheritance of real property               State of situs of real property

   4.    Inheritance of tangible personal           State of domicile of deceased
         property

   5.    Validity of a marriage                     State of celebration

   6.    Child custody                              State of domicile of the child

   7.    Workers' compensation                      State of employment, OR
                                                    State in which injury was received




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MG201 Business Law I                                                                                   Montgomery College, Rockville

                                                            QUIZ 2DA
                                                                PERSONNEL
                                                             Judges--Terminology
                                                               (Kempin Ch. 4)


The function of a(n)________________ (1) is to call the court's attention to some matter that might otherwise escape its attention. This
     individual or group is sometimes called "a friend of the court."

When a case that was heard by a portion of an appeals court is later heard by the full court, this is called a rehearing _ ______ (2).

A _______________ (3) is a person who acts in a position of trust or confidence.

When a court gives advice on the law or in the constitutionality of a proposed law, it is giving a (n) ________________ (4).

Judicial activism often raises issues of _______________ (5), because such activism bring the issues of whether it is feasible for a court to
     carry out and enforced its decision.

_____ 6) is a process in which a judge with a personal interest in a certain case can petition to be the presiding judge in that case.

Referring to the ―Selected …Justices‖ chart:
7)   NAME the current U.S. Supreme Court justices.

8)   NAME one of the female justices of the U.S. Supreme Court.

9)   NAME the chief justice of the U.S. Supreme Court.

10) NAME a justice of the U.S. Supreme Court that did NOT attend Harvard Law School or Yale Law School.


11) DEFINITION: sua sponte




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MG201 Business Law I                                                                                   Montgomery College, Rockville

                                                              QUIZ 2D1
                                                                  PERSONNEL
                                                                Judges--T-F/M-C
                                                                 (Kempin Ch. 4)

1)   It is a fairly common practice for judges to give advisory opinion.

2)   Courts in some states give advisory opinions.

3)   An example of an activist judge would be one who takes over the day to day operations of a prison.

4)   Judicial control and judicial independence are tradeoffs in a judicial system.

5)   A justice is a senior member of a court, while a judge has less seniority.

6)   A trial court judge may find law and fact, while an appeals court judge finds only law.

7)   Congress has the power to increase or decrease the number of positions on the U.S. Supreme Court.

8)   Congress has occasionally increased or decreased the number of positions on the U.S. Supreme Court.

9)   Referring to the “Selected …Justices” chart, which of the following is NOT currently a justice on the U.S. Supreme Court:
     a) Rehnquist                c) Stephen Breyer               e) TWO OF THE ABOVE.
     b) Thurgood Marshall        d) Antonin Scalia

10) A judge:
    a) issues a correction or clarification in the law, sua sponte.
    b) issues an advisory opinion to the legislature regarding the constitutionality of proposed legislation.
    c) must wait until a case or controversy is brought to the court.
    d) a and b
    e) None of the above.

11) The Missouri plan is a plan that:
    a) desegregated the Kansas City school system.
    b) improved the Kansas City school system.
    c) chooses judges, without political interference.
    d) reduces judicial activism,
    e) None of the above.

12. Under what circumstances would one expect a court to defer to another branch of government.
    a) Never.
    b) When the court is ordered to do so by a recusal proceeding.
    c) When the court believes that it should recognize the superior expertise of an administrative agency that is charged with regulating
        the issue.
    d) Under the doctrine of stare decisis.
    e) None of the above.

13) The Alabama Supreme Court denied Aetna's motion to recuse Justice Embry, a justice on its own court, from an insurance case where
    the defense learned that Justice Embry has his own cases pending against two insurance companies. The U.S. Supreme Court ruled
    that:
    a) Aetna's 5th Amendment guarantee of due process had been violated.
    b) Aetna's 14th Amendment guarantee of due of process had been violated.
    c) Justice Embry's conflict of interest constituted a violation of the due process.
    d) b and c.
    e) since this decision came from a state supreme court. It is not appealable.

14) Preventive Law involves:
    a) laws that prevent crime.                                      c) maximizing the chance of winning a law suit.
    b) minimizing the chance of having legal problems.               d) b and c
                        e) All of the above.




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MG201 Business Law I                                                                                 Montgomery College, Rockville
15) Judge Hoffman heard a case dealing with the manner in which the government operates the state insane asylums in his state. Judge
    Hoffman believes that the rights of patients are being severely abused by the government. If he believed in judicial restraint, Judge
    Hoffman will
    a) take over the operation of the asylums.
    b) raise taxes in his state in order to provide more money to operate these institutions.
    c) declare what he believes is the proper public policy for the treatment of the insane, and the require the administrators to adhere to
        his concept of proper public policy.
    d) pass new statutes to ensure they are treated fairly.
    e) none of the above.

16) In state X, voters elect judges to fill judgeships. The political parties nominate candidates to fill judicial position. The judge serves a term
    then is subject to renomination and election at the next general elections. Which of the following is not a reason in favor of electing
    judges?
    a) An election assures the public that the judicial branch will be held accountable for its decisions.
    b) An election assures the public that the judicial branch will reflect the desires of the citizens.
    c) The people should have a role in selecting anyone who exercises a great deal of power in society.
    d) All of the above are reasons for selecting judges.
    e) None of the above are reasons for selecting judges.

17) Federal Judges
    a) are appointed for 10 years.
    b) are appointed by the President with the advise and consent of the House and Senate.
    c) are appointed by the President with the advice and consent of the U.S. House.
    d) are appointed by the President with the advice and consent of the U.S. Senate.
    e) none of the above.

18) The following question concerns judges. Pick the correct answer(s) ?
    a) A judge may never be removed from office.
    b) Federal judges are appointed by the President with the advice and consent of the U.S. Senate.
    c) Federal judges are appointed for 5 years.
    d) Federal judges are appointed for life.
    e) Two of the above (a and d)

19) Elwood took the stand during a trial over a personal property he owned. During his testimony, the judge revealed that he had known
    Elwood some time during his life. The attorney on the opposing side made a motion to disqualify the judge at this point. The judge
    a) should disqualify himself if his knowledge of Elwood would keep him from rendering a fair and impartial selection.
    b) should disqualify himself if his knowledge of Elwood gives the appearance of bias in this case.
    c) need not disqualify himself because the attorney making the motion failed to make a timely objection.
    d) need not disqualify himself because a judge need not to be fair and impartial.
    e) Two of the above (a and b)

20) Choose the correct statement(s):
    a) The legal system's concept of guilt is the same as the meaning attributed to this term by the general public.
    b) Guilt in the legal system refers to the amount of proof which must be provided by the state in order to convict a person.
    c) An attorney must tell the court if her client reveals to her that he is guilty of the crime in question.
    d) two of the above are correct (a and c)
    e) none of the above is correct.

21) The following justice(s) is (are) NOT currently in the U.S. Supreme Court.
    a) Brennan           d) Two of the above.
    b) Marshall          e) All of the above.
    c) White

22) Discuss the difference in the role of a judge in a trial court that of a judge in an appellate court.

23) Discuss the difference between the role of a judge in a trial court compared to that to of a judge in an appellate court. Write a paragraph
     or two comparing and contrasting the two roles.




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MG201 Business Law I                                                          Montgomery College, Rockville

                                              SECTION 2E
                                                       LAWYERS
                                                  OBJECTIVES
                                             FOR CRITICAL THINKING
                                                 (Kempin Ch. 4)


CONTRAST:                 TO DISTINGUISH THE FUNCTIONS OF COURTROOM (Litigation)
                          LAWYERS AND NON-COURTROOM (Appellate) LAWYERS

CLASSIFICATION:           TO CLASSIFY LAWYERS BY AREA OF EXPERTISE

LIST:                     TO LIST THE CRITERIA THAT A MANAGER SHOULD USE IN CHOOSING A
                          LAWYER.

ANALYZE:                  TO ANALYZE THE NATURE OF THE ATTORNEY-CLIENT RELATIONSHIP

                          TO ANALYZE THE NATURE OF THE RELATIONSHIP BETWEEN LAWYER AND THE
                          COURT.

TERMINOLOGY               advocacy         privilege      contempt of court    pro se             pro bono




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                                           QUIZ 2EA
                                             PERSONNEL
                                           Lawyers--T-F/M-C




DISTINGUISH
COUNSEL/COUNCIL
COUNSELLOR/COUNSELOR/COUNCILLOR
SOLICITOR/COUNSELLOR/BARRISTER




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                                                               QUIZ 2E1
                                                                   PERSONNEL
                                                                 Lawyers--T-F/M-C

1) Under a contingency-fee arrangement, the attorney receives a percentage of what his/her client recovers.

2)   Amicus curiae briefs are filed by judges who disagree with the decision in a particular case.

3)   John reveals certain information to his lawyer. His lawyer can be forced to reveal this information during John’s trial.

4)   The attorney-client privilege has just arisen since about 1900.

5)   In England, there are more barristers than there are solicitors.

6)   Counsellor is another name for barrister.

7)   Even though early legal education was conducted solely by lawyers and judges, the law was nevertheless influenced by and in fact
     openly embraced outside, foreign ideas.

8)   At Inns of Court around England, legal education was conducted by lawyers and students living together.

9)   The law school, as we know it today, is a fairly recent institution.

10) Ever since colonial times, state requirements for admission to the bar have involved substantial legal education.

11) The first university education in law was at Harvard University in 1815.

12) In England, a law degree is an undergraduate degree.

13) Law teaching has been recognized as a separate profession in England and later in the U.S. since before the Civil War.

14) The contents of the bar examination in the U.S. are substantially different from state to state.

15) Under what circumstances would your company file an amicus curiae brief?
    a) If it was seeking recusal.
    b) If it believed history and custom should be applied by the judge.
    c) If your company had an interest in the outcome of the case and it was not a party.
    d) If your company wanted the judge to apply the personality factor.
    e) A and D.

16) Preventive law involves:
    a) laws that prevent crime.                                  d) b and c.
    b) minimizing the choice of having legal problems.               e) ALL of the above.
    c) maximizing the chances of winning a law suit.

17) An attorney owes a fiduciary duty to:
    a) his client
    b) the court, as an officer of the court
    c) his opponent, in order to be fair
    d) the public
    e) a and b

18) The purpose of the attorney-client privilege doctrine is to:
    a)   give the defendant an advantage in a criminal trial
    b)   more likely conduct a fair trial
    c)   encourage full disclosure by the client
    d)   encourage full disclosure by the lawyer
    e)   b and c

19) A lawyer’s two most important functions are:
    a)   advice and advocacy
    b)   preventing legal problems and predicting the outcome of legal matters
    c)   a fiduciary duty to his client and a professional duty to the court
    d)   advice of counsel
    e)   NONE of the above


20) George confides to his attorney, after being arrested for theft, that he did steal the car in question.
    a) His attorney can be forced to reveal what George told her.
    b) This information is privileged in order to encourage clients to speak freely to their attorneys.
    c) Since this information can be disclosed at trial, George would be wise not to reveal such information to his attorney.
    d) Two of the above are correct (a and c).
    e) None of the above are correct.
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MG201 Business Law I                                                                                  Montgomery College, Rockville

21) Choose the correct statement (s)
    a) The legal systems concept of guilt is the same as the meaning attributed to this term by the general public.
    b) Guilt in the legal system in order to convict a person.
    c) An attorney must tell the court if her client reveals to her that he is guilty of the crime in question.
    d) Two of the above are correct (a and c).
    e) None of the above are correct.

22) Discuss the pros and cons of the various ways of choosing judges. Which do you believe is the most effective method? Write a
    paragraph or two comparing and contrasting the various methods.

23) Comment on the balance that is struck between the potential in justices from recognizing the attorney- client position, and the potential
    injustices from NOT recognizing the attorney- client position.

24) Discuss the concept of an attorney representing a “guilty” person.




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MG201 Business Law I                                                                   Montgomery College, Rockville


                                                 SECTION 2F
                                                      JURIES
                                                    OBJECTIVES
                                               FOR CRITICAL THINKING
                                                   (Kempin Ch. 3)


                       TO COMPARE AND CONTRAST THE VARIOUS CURRENT AND HISTORICAL
CONTRAST               APPROACHES TO FINDING FACTS IN A TRIAL

                       TO DISTINGUISH THE VARIOUS TYPES OF JURIES.
                       federal v. state           grand v. petit                     inquest
CONTRAST               TO DISTINGUISH THE VARIOUS TYPES OF VERDICTS THAT JURIES CAN
                       RENDER
                       unanimous v. majority    not guilty (acquittal) v. not proven     quotient compromise
                       general v. special       ???? v. sealed                                      repugnant
                       TO ANALYZE THE PROCESS BY WHICH JURIES ARE CHOSEN AND ARRIVE AT
                       VERDICTS.
                        summons (voter registration,driver’s license)  deliberation (unanimity, hung
                        qualifications (veniremen, voir dire)                   jury)
PROCESS
                        challenges (for-cause, peremptory)                   verdict
                        impaneling                                           nullification
                        sequestration                                        tampering
                        instructions                                         polling
DISTINGUISH             summons v. subpoena         hung jury v. mistrial      general verdict v. special verdict
                        inquisition v. inquest
                        jury v. juror
TERMINOLOGY             attaint              alternate              nullification         
                        compurgation         deliberation           perjury                subpoena
                                              hung jury              peremptory             tampering
                                              inquest                polling                veniremen
                                              inquisition            sequester              verdict
                                              mistrial               subornation            voir dire




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MG201 Business Law I                                                                                    Montgomery College, Rockville

                                                             QUIZ 2FA
                                                               PERSONNEL
                                                                   Juries--A

In the (1) _______ _______ (examination) process, the lawyers for each litigant may use a LIMITED number of (2) ________ challenges to
dismiss (3) _________ or they may use an UNLIMITED number of (4) _______ challenges.

After the (5) ______ ______ (examination) process, the jury is (6) ________ and may then be (7) ________ if the judge is concerned that
they may be unduly influenced by media publicity.

After the judge gives his (8) ________ to the jury, the jury (9) ________ and ultimately returns a (10) _______ of guilty or not guilty.


                                                               PERSONNEL
                                                                   Juries--B

The task of the (11) ______ is to determine whether the evidence presented, if uncontested, would warrant conviction.

If a (12) _____ __ _____ is issued against a defendant, his case will proceed to trial.

_________ (13) consists of making false statements under oath.




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MG201 Business Law I                                                                                    Montgomery College, Rockville

                                                             QUIZ 2F1
                                                                  PERSONNEL
                                                             Juries -- Kempin (T-F)
                                                                 (Kempin Ch. 3)
TRUE-FALSE
1)   The civil jury is NOT used in equity cases.

2)   There are two types of juries, civil and criminal.

3)   The right to a jury may NOT be waived.

4)   A grand jury is accusatory only.

5)   The grand jury is guaranteed in criminal cases by the U.S. Constitution.

6)   Although they are NOT supposed to do so, juries may theoretically "find" fact and law.

7)   The primary objective of our legal system is to determine the truth.

8)   An indictment is similar to a conviction.

9)   Only the plaintiff may have a judgment N.O.V.

10) In entering a judgment N.O.V., the judge is deciding an issue of law.

11) The judgment N.O.V. can be used in civil trials but cannot be used in criminal trials.

12) A not guilty verdict in a criminal trial may be appealed by the prosecutor.

13) The purpose of the modern jury is to find facts.

14) A jury has a lower probability of making an error regarding the guilt or innocence of a litigant than a judge.

15) Juries are used only where the parties (litigants) disagree on the facts.




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MG201 Business Law I                                                                                    Montgomery College, Rockville

                                                                  QUIZ 3B
                                                                  Litigation
     True-False (1-11)
1)   In most civil cases, the losing party pays the attorney’s fees of the winner.

2)   A “summons” is a court order that directs the defendant to answer the complaint, and it is served along with the complaint.

3)   In response to being served with a complaint, the defendant will usually file a “reply”.

4)   If several plaintiffs have filed lawsuits against the same defendant arising out of the same incident, like the crash of a commercial
     airliner, the judge may CONSOLIDATE these cases into one case.

5)   One of the major reasons for using a deposition is to impeach the witness‟s testimony at trial.

6)   A “request for admissions” is a list of written questions submitted by one party to be answered by another party.

7)   The Sixth Amendment to the Constitution guarantees a party to a lawsuit a jury trial in all cases at law.

8)   In civil cases, the “burden of proof” is on the defendant.

9)   New additional information given by attorneys during their closing arguments is NOT evidence.

10) After the closing arguments, the judge reads jury instructions, which inform the jury of the law that should be applied in this particular
    case.

11) The difference between arbitration and mediation is that in mediation, the mediator actually decides the dispute.

Multiple-Choice (12-36)
12) In criminal cases, the accused:
    a) Must provide and pay for his/her own attorney, if able.
    b) Will be provided with an attorney at government expense, if he cannot pay for his/her own attorney.
    c) Will be provided an attorney at government expense, if he/she cannot pay for his/her own attorney, but only in federal courts.
    d) A and B only.
    e) A and C only.

13) The complaint, summons, answer, cross-complaint and reply are collectively known as the:
    a) Litigation process.                   c) Pleadings.
    b) Discovery.                            d) Demurrer.
                     e) Affirmative defense.

14) In response to a complaint, the defendant may file:
    a) A motion to dismiss.                 c) A cross-complaint.
    b) An answer.                           d) A, B or C.
                    e) B or C only.

15) A motion for summary judgment can be made:
    a) immediately after the answer.      c) just before the settlement conference.
    b) immediately after the summons.     d) TWO of the above.
                    e) NONE of the above.

16) Some of the major reasons for the “discovery process” are:
    a) Preventing surprises.                     c) Saving court time.
    b) Promoting the settlement of cases.        d) A, B and C
                   e) A and C only.

17) The major forms of discovery include:
    a) Depositions, interrogatories and request for admissions.
    b) Production of documents or objects, and physical and mental examinations.
    c) Entry upon land and pretrial hearing.
    d) A, B and C.
    e) A and B only.

18) In civil cases, the “burden of proof”:
    a) Is on the defendant.
    b) Is on the plaintiff.
    c) means that the party must persuade the trier of fact of the merits of his/her case.
    d) A and C only.
    e) B and C only.




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19) A motion for a directed verdict can be made:
    a) immediately after the plaintiff's case. c) just before the settlement conference.
    b) immediately after the verdict.          d) TWO of the above.
                         e) NONE of the above.

20) The correct, but not necessarily complete, sequence of events of litigation is:
    a) Complaint, answer, discovery, trial, judgment, appeals.
    b) Complaint, reply, discovery, judgment, trial, appeals.
    c) Answer, complaint, trial, judgment, appeals.
    d) Answer, interrogatories, judgment, trial, appeals.
    e) NONE of the above.

21) The correct, although not necessarily complete, sequence of events in a trial is:
    a) Opening statements, direct examination, cross examination, closing arguments, judgment.
    b) Opening statements, cross examination, direct examination, closing arguments, judgment.
    c) Opening statements, direct examination, cross examination, jury selection, judgment.
    d) Opening statements, jury selection, direct examination, cross examination, judgment.
    e) NONE of the above.

22) An appellate court will reverse a lower court decision if it finds an “error in law”. Which of the following would be considered an “error in
    law”?
    a) The judge gave the jury an incorrect jury instruction.
    b) Prejudicial evidence was admitted at trial.
    c) The jury found the defendant liable, even though there was evidence supporting both liability and non-liability.
    d) A, B and C.
    e) A and B only.

23) Some of the major factors in deciding to arbitrate rather than to litigate are:
    a) Arbitration tends to be less costly.
    b) Arbitration tends to be faster.
    c) Arbitration tends to disrupt the business less.
    d) A, B and C.
    e) B and C only.

24) The first step in a lawsuit is the pleadings. Which of the following statements concerning the pleadings is/are true?
    a) The complaint, the first pleading, is a statement of the facts and law explaining why the party should win and collect damages, and is
    filed by the defendant.
    b) The complaint, the first pleading, is a statement of the facts and law explaining why the party should win and collect damages, and it
    is filed by the plaintiff.
    c) If the plaintiff does not file an answer, the court could enter a default judgment in the defendant‟s favor.
    d) The statute of limitations gives the plaintiff some period of time to answer the complaint, usually 30 to 60 days.
    e) B and D only.

25) While Martha was driving, she was in an auto accident. The other party, Mark, sued Martha alleging that Martha was at fault. Martha will
    file an answer stating that Martha was not at fault, but, in addition, Martha wishes to state that Mark was going too fast and that Mark
    disregarded a yield sign. This is an example of a(n):
    a) Motion for judgment N.O.V.
    b) Affirmative defense.
    c) Reply.
    d) Motion for summary of judgment.
    e) Demurrer.

26) Mark is suing another person for damages sustained in an auto accident. Mark‟s most important witness, Mr. Gross, is 75 years old, is in
    bad health, and may die before trial. Mark wants to preserve his testimony in case he does die. The best way for Mark to do this is to:
    a) make a request for production of documents.
    b) send Mr. Gross a set of interrogatories.
    c) take Mr. Gross‟ deposition.
    d) make a request for admissions.
    e) file a rejoinder.

27) Robert and Ramona are parties to a lawsuit. Before their trial starts, they undergo a procedure known as discovery. Which of the
    following statements concerning discovery is true?
    a) The major purposes of discovery is to prevent surprise, to allow both parties to thoroughly prepare for trial, to save the court‟s time,
    and to promote settlement.
    b) Physical and mental examinations may be required through discovery.
    c) A deposition may be used to impeach (discredit) a witness at the trial.
    d) A, B, and C.
    e) A and B only.

28) Alf is suing someone for breach of contract. Alf is afraid that a member of the jury may be prejudiced against him because of his race
    and religion. The best place to show this potential prejudice and replace this juror would be during:
    a) pretrial hearing.
    b) opening statements.
    c) voir dire.
    d) cross examination.

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   e) a motion for a judgment notwithstanding the verdict.

29) Jim and Jane are parties in a lawsuit. Both of them decide, for various reasons, that they do not want a jury trial, so they both waive that
    right. The result is:
    a) No effect; the parties cannot waive their constitutional right to a jury trial.
    b) The judge now will decide the facts.
    c) The judge will apply the law.
    d) B and C only.

30) Ralph and Sally are parties to a very complex lawsuit. In order to properly prepare the jury to hear the complex testimony, Ralph‟s
    attorney is going to make an opening statement. Which of the following best describes the opening statement?
    a) The information the attorney gives is EVIDENCE.
    b) The information the attorney gives is NOT EVIDENCE.
    c) The opening statement allows the attorney to summarize the factual and legal issues in the case.
    d) A and C only.
    e) B and C only.

31) Which of the following is/are true concerning the appeal of a case to a higher court?
    a) Either party can appeal the decision in a criminal case.
    b) Either party can appeal the decision in a civil case.
    c) The appellate court is just as likely to reverse the decision of a lower court on a finding of fact as on an error in law.
    d) A and C only.
    e) B and C only.

32) Mary has just lost a jury trial. She wants to appeal. For which of the following items would an appellate court be most likely to reverse the
    jury verdict?
    a) That the judge gave the jury the wrong instructions.
    b) The prejudicial evidence was admitted in to evidence when it should have been excluded.
    c) That the jury found in favor of the other side, even though there was absolutely no evidence supporting that verdict.
    d) A, B, and C.
    e) A and B only.

33) Mary has just lost a jury trial and she wants to appeal. Mary would be considered to be:
     a) an appellant.                           c) Mary could be either appellant OR appellee.
     b) an appellee.             d) NONE of the above.

34) Susan is considering filing suit to enforce a contract she has with Michael. She is also considering using an alternative dispute
    resolution (ADR) method. Which of the following statements regarding ADR‟s is TRUE?
    a) In arbitration, a third party, called an arbitrator, hears and decides the dispute.
    b) In mediation, a third party, called an arbitrator, hears and decides the dispute.
    c) In general, ADR‟s are more costly and more time consuming than trials.
    d) Agreements to arbitrate are usually not enforceable.
    e) If the contract does not contain an arbitration clause, the dispute can never be submitted to arbitration.

35) A motion for summary judgment can be made:
    a) immediately after the answer.       c) just before the settlement conference.
    b) immediately after the summons.      d) TWO of the above.
    e) NONE of the above.

36) A motion for a directed verdict can be made:
    a) immediately after the plaintiff's case. c) just before the settlement conference.
    b) immediately after the verdict.          d) TWO of the above.
    e) NONE of the above.

37) Attorneys can be paid using either a contingency fee or an hourly fee. Compare and contrast these two methods, indicating the merits, if
    any, of each method.

38) Describe and discuss the major alternative dispute resolution procedures a party may choose instead of litigation. Give their advantages
     and disadvantages.




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                                                             QUIZ 3C
                                            THE LAW AS A DISCIPLINE
                                                  MISDEMEANORS AND FELONIES
                                                    ON YOUR SCANTRONS
 a = misdemeanor              b = felony                c = misdemeanor OR felony                    d = neither misdemeanor NOR felony

1     aggravated assault           6        gambling             11     battery                16      murder               21    manslaughter
2     public disturbance           7        prostitution         12     littering              17      larceny              22    robbery
3     arson                        8        embezzlement         13     rape                   18      forgery              23    kidnapping
4     simple assault               9        larceny              14     trespass               19      burglary             24    mayhem
5     traffic offenses             10       grand larceny        15     bribery                20      price-fixing         25


                                                       RESTRAINT AND ACTIVISM
                                                   ON YOUR SCANTRONS
         What type of judicial involvement do the following decisions
                                  represent?
              a= restraint                         b = activism
26    States can regulate nuclear power.          31    Female pensions must be the same as male pensions, even though females live
                                                        longer.
27    Communal living may be prohibited.          32    Male-only military draft is NOT a denial of constitutional equal protection.
28    NO prayer is permitted in school.           33    There shall be equal pay for comparable worth.
29    Homosexuality can be a crime.               34    OSHA inspectors must have search warrant to inspect business.
30    Abortion is NOT a crime                     35    Busing is valid technique to achieve school desegregation.



                                                         CONFLICT OF LAWS
                                                   ON YOUR SCANTRONS
             a= possibly govern                                                          b = will NOT govern
In a breach of contract action, which        In an action for divorce, which              In an action claiming a tort, which state‟s laws
state‟s laws will govern? The state:         state‟s laws will govern? The state          will govern? The state where the:
                                             where the:
36    where contract was signed.             42    plaintiff resides.                     47        tort occurred
37    where contract was performed.          43    defendant resides.                     48        plaintiff resides.
38    specified in the contract.             44    marriage occurred.                     49        defendant resides.
39    with the most significant contacts.    45    property to be divided is located.     50        with the most significant contacts.
40    where the plaintiff resides.           46    with the most significant contacts.
41    where the defendant resides.




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                                            Questions for
                                     12 ANGRY MEN: THE MOVIE
1.   What parts of the jury system might not have worked very well in this case?

2.   On what day is the jury deliberations held?

3.   What is the daily rate for jury duty?

4.   What are the occupations of each juror?

5.   How tall was the victim?

6.   Which jurors arrived at their initial decisions through bias?

7.   Which jurors wanted to opt for a hung jury?

8.   How might the personal situations of the witnesses at the trial have affected their testimony?

9.   Which juror(s) was(were) NOT wearing a tie?

10. How did the diversity of the jury contribute to the final verdict?

11. After what discussion was each change in vote?

12   In what order did the jurors change their minds?
13. What argument was the       most crucial in beginning the turnaround of the jury?
14. What might have happened if juror #4 ultimately had refused to give in and vote not guilty?

15. How, if at all, might the jury deliberations have been improved if the jurors had been more educated?

16. What are the ramifications of juror #3 "hanging" the jury.

17. In what way were the "facts" challenged?




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                                          TEACHING NOTES
                                                ON
                                          THE CONSTITUTION
This may be the only time that you will take the opportunity to read the U.S. Constitution, so please take note of the importance of the
following sections.

Article I, section 2, paragraph 3: Representatives and direct taxes shall be apportioned among the several states which may be
  included within this Union, according to their respective Numbers, which shall be determined by adding to the whole number of
  free persons....three fifths of all other persons....(changed by Amendment XV).

  This "direct taxes...." language was interpreted by the Court in the late 1800's and early 1900's to prohibit Congress from passing legislation
  creating individual income taxes. Eventually, the court's decision was overturned by a constitutional amendment (Amendment XVI) to
  establish an income tax.

  Also in section 2, notice that the Constitution never refers to slavery when it (the Constitution) addresses the ("three-fifths") compromises
  arrived at during the constitutional convention.

  Also, notice (later in the paragraph) which states were, at the time, the smallest and which were largest. In particular, the smallest state
  was Rhode Island with just one representative and the largest was Virginia with ten.

Article I, section 8, paragraph3: To regulate Commerce with foreign Nations, and among the several states and with the Indian Tribes.

  This is the Commerce clause. Just a few words with a huge impact.

Article I, section 8, paragraph 17: To exercise Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square)....

  This is the language authorizing the creation of Washington, D.C. and giving Congress control over its affairs.

  This is referred to as the “necessary and proper clause”.

Article I, section 9, paragraph 1: The Migration or Importation of such persons as any of the states now existing may think proper to
  admit, shall not be prohibited...prior to....

  This is another euphemism referring to slaves and slavery. According to this compromise, Congress was prohibited from outlawing the
  slave trade for twenty years from the date of the ratification of the Constitution (the constitutional convention was held in 1788).

Article I, section 9, paragraph 4: No Capitation or other direct tax shall be laid...

  Another provision used by the Supreme Court to declare income tax legislation to be unconstitutional.

Article I, section 9, paragraph 1: The remainder of Section 9 imposes restraints on the Federal government.

  Please be able to define "bill of attainder" and "ex post facto law"


Article I, section 9, paragraph 1: Section 10 imposes restraints on the states.

Article I, section 10, paragraph 1: No state shall...pass any...Law impairing the Obligation of Contracts....

  This is the Contracts Clause.

  In this Article, there are many other powers prohibited to the states.

Article III, section 1, paragraph 1: The judicial power of the United States shall be vested in one Supreme Court and in such inferior
  courts as the Congress may...establish....

  The Constitution establishes the Supreme Court, but the Congress established (and has the power to eliminate) the Circuit Courts of
  Appeal and the District (trial) Courts. There has been discussion about establishing a court between the Circuit courts and the Supreme
  court in order to relieve the Supreme court of the burden of deciding so many cases.

  Also, federal judges/justices hold lifetime appointments.

Article III, section 2, paragraph 1: The judicial Power of the United States shall extend to all Cases...between a State and Citizens of
  another State....

  This provision was reversed by the Eleventh Amendment

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Article III, section 2, paragraph 1: The judicial Power of the United States shall extend to all Cases...between Citizens of different
 States....

  This provision establishes diversity-of-citizenship jurisdiction which gives citizens the right to have their case heard in federal court instead
  of the court of a foreign state which might be biased in favor of its own citizens.

Article III, section 2, paragraph 2: In all cases affecting..., the Supreme Court shall have original jurisdiction....

  Under this provision, the Supreme Court is the trial court for certain cases.


Article IV, section 1, paragraph 1: Full Faith and Credit...

  Consider the impact of Hawaii allowing same-sex marriages.

Article IV, section 2, paragraph 1: The Citizens of each State shall be entitled to all Privileges and Immunities.....

  This is the Privileges and Immunities Clause.

Article IV, section 2, paragraph 2: A person charged...who shall flee...shall be delivered up ...to the state having Jurisdiction of the
  Crime....

  This provision sets out a kind of interstate extradition treaty among the states

Article IV, section 2, paragraph 3: A person held to service or labour...escaping...shall... be delivered up....

  This is another euphemistic reference to slavery and was a demand of the Southern states that no slave could gain his freedom by
  escaping to a state where slavery was illegal. If the slave owner captured/found the slave in a slave-free state the slave-free state must
  give the slave back to the slave owner.

Article IV, section 2, paragraph 3: New States may be admitted...,but no new State shall be formed...within the jurisdiction of any
  other State....

  But, what about West Virginia?

Article V: The Congress whenever two-thirds of both houses...when ratified by three-fourths of the states....

  This clause sets out how the Constitution can be amended.

Article V: no Amendment which may be made prior to the Year One Thousand Eight Hundred and Eight shall...affect....

  This is another "slavery" compromise.

Article V: This Constitution...shall be the Law of the Land....

  This is the Supremacy Clause.

Amendment V: No person...unless ...indictment of a Grand Jury...nor...twice put in jeopardy of life or limb; nor...compelled...to be a
  witness against himself, nor be deprived...without due process...; nor...property be taken...without just compensation.

  This amendment contains several constitutional provisions, including double jeopardy, self-incrimination, due process, and just
  compensation.

Amendment X: The powers not delegated to the United States....

  This amendment more affirmatively establishes the concept of federalism; that is a sharing of power and authority between the state and
  federal governments.

Amendments III through V are referred to as the Civil War Amendments.

Amendments XIII: Neither slavery nor involuntary servitude....

Amendments XIV: All persons born in the U.S... are citizens....No state...abridge the privileges or immunities...nor shall any State
  deprive...without due process...nor deny...equal protection....

Amendments XV: The right of citizens to vote shall not be denied...on account of race....THE RATIFICATION OF THE
  CONSTITUTION



Two well-defined movements characterized the controversy surrounding the ratification of the Constitution. The supporters of ratification
were referred to as federalists. The detractors were referred to as anti-federalists.

At least some of the opposition to ratifying the Constitution came from those who felt that it had been framed by representatives of the most
prosperous classes, some of whom were known to be aristocratic in tendency. More importantly, most of the opposition to ratifying the
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Constitution came from those (anti-federalists) who felt that under the provisions of the Constitution, the central (Federal) government was
too powerful vis a vis the states.

The conventions of the small states ratified promptly and overwhelmingly voted for ratification (see Exhibit 1). Since many had no important
ports of entry and were suffering from the navigation laws of adjoining states, these small states were eager to profit from the power of the
new government to regulate interstate and foreign commerce. Also, many were eager to take advantage of the protection from surrounding
hostile forces (Spanish, French, British, and native Americans) afforded by being part of a more powerful union.

Other states were less enthusiastic. The following are the dates and final votes of each state convention after their representative to the
constitutional convention returned home to the state.

The constitution was approved and the constitutional convention was adjourned on September 17, 1887. The
following are the results of the voting among the states.
STATE                  DATE OF RATIFICATION           VOTES IN FAVOR         VOTES AGAINST         CHANGE IN VOTES TO DEFEAT (no.)
Delaware               December 7, 1787                      30                    0
Pennsylvania           December 15, 1787                     46                    23
New Jersey             December 18, 1787                     38                    0
Georgia                January 2, 1788                       26                    0
Connecticut            January 9, 1788                      128                    40
Massachusetts          February 7, 1788                     187                   168
Maryland               April 26, 1788                        63                    11
South Carolina         May 23, 1888                         149                    73
New Hampshire          June 21, 1788                         57                    47
Virginia               June 25, 1888                         89                    79
New York               July 26, 1888                         30                    27
North Carolina         November 21, 1789                    194                    77
Rhode Island           May ??, 1790                          34                    32




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                                           THE PRE-EMPTION DOCTRINE
                 … ARISES OUT OF THE SUPREMACY CLAUSE OF ARTICLE VI OF THE CONSTITUTION
                           EXAMPLES OF STATE LAWS PRE-EMPTED BY FEDERAL LAW
                                                         (See Cheeseman p.42)
                                                                                     Pre-emption
   State/Local Law                                      Federal Law                Yes           No
   A state law conditions the    construction  ATOMIC ENERGY ACT
   of nuclear power plants on the existence of
                                                                                                               X
   adequate storage facilities and the means
   of disposal

   A city conditions renewal of taxicab
                                                  NATIONAL LABOR RELATIONS                                     X
   franchise on settlement of a labor dispute     ACT



   Municipal zoning ordinance governs size,       FEDERAL COMMUNICATIONS
   location and appearance of satellite dish
                                                                                          X
                                                  COMMISSION REGULATION
   antennas


   A state statute permits indirect purchasers
   to collect damages for overcharges             SHERMAN ANTITRUST ACT                   X
   resulting from price-fixing conspiracies



   A state law authorizes a tort claim by         LABOR-MANAGEMENT RELATIONS
   workers that a union has breached its duty                                             X
                                                  (Landrum-Griffin) ACT
   to ensure a safe workplace


   A state statute requires employers to allow
   up to four months of un-paid pregnancy         PREGNANCY DISCRIMINATION                               X
   leave and reinstatement                        ACT



   A state law prohibits repeat violators of
   labor laws from doing business with the
                                                  NATIONAL LABOR RELATIONS                 X
   state                                          ACT


   A state statute attempts to control share
   acquisitions in state companies. The           WILLIAMS ACT (governs hostile                          X
   statute withholds voting rights from an        corporate stock tender-offers)
   acquirer of a controlling share of an
   Indiana corporation until a majority of the
   company's pre-existing, disinterested
   shareholders approves the acquisition

   A Vermont nuisance law purports to cover
   out-of-state sources of water pollution        CLEAN WATER ACT                         X


   State criminal prosecution for aggravated      OCCUPATIONAL SAFETY&                    X
   battery is filed against corporate officials
   because of unsafe work conditions
                                                  HEALTH ACT



   A state statute prohibits use of the direct
   molding process to duplicate unpatented        PATENT LAW                               X
   boat hulls or knowing sale of hulls so
   duplicated




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                             ANALYSIS OF EQUAL PROTECTION
In its interpretation of the Constitution, the U.S. Supreme Court has held that the protections of
the equal protection clause of the 14 th Amendment are not absolute; in other words,
discrimination by the government (remember, constitutional provisions do not apply to activities,
such as discrimination, by individuals as private citizens), is not unconstitutional, per se. In the
court‟s analysis, the basis for the governmental discrimination is important – certain reasons are
more or less tolerable (or justifiable) than others. And, certain rights are more protected by the
constitution than others.

                                                   STANDARDS (3)
                       (1) Rational Basis      (2) Quasi-Strict Scrutiny      (3) Strict Scrutiny
                                                     (intermediate)
              …rationally related
Classifications                             …substantially related to an   …necessary to a
must be:      to a permissible              important governmental         compelling state interest
              governmental                  interest
              objective
     EXAMPLES Presumed Valid                Quasi-suspect Classes          Suspect Classes
              ● height                      ● sex                          ● race
              ● weight                                                     ● national origin
              ● age                                                        ● legitimacy
              ● marriage                                                   Fundamental Rights
              ● military service                                           ● voting
                                                                           ● travel
                                                                           ● legal appeals




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                                                               QUIZ 4A
                                                         THE CONSTITUTION
                                                              (Cheeseman Ch. 4)
                                                         The Constitution--Terminology


1.    When federal law _______________ (1) a state law, the state law is considered void.

2.    If a state law is tantamount to pure economic protectionism, the state law is ______________ (2) unconstitutional.

3.    If a state seeks to tax interstate commerce, there must be, among other things, a minimum connection or ____________ (3) between
      the commercial activity and the tax, in order to satisfy the requirements of due process.

4.    The Commerce Clause invalidates state that impose an _________________ (4) burden on interstate commerce.

5.    Based on the Supremacy Clause of the U.S. Constitution, under the pre-emption doctrine, federal law pre-empts any state law that
      conflicts with that federal law.

6.    The ______ (99) clause of the U.S. Constitution provides that any federal law that pre-empts a state law that conflicts with the federal
      law.

7.    Under the U.S. Constitution, the states delegated _____ (99) powers, such as the power to declare war, to the federal government.

8.    Under the _____ (99) Clause of the U.S. Constitution, the federal government is empowered to regulate even the amount of wheat that
      a single farmer can grow on his own land for his own consumption.

9.    The U.S. Supreme Court has held that the Gun-Free School Zone Act passed by Congress violated the _____ _____ (99).

10. Under the _____ _____ (99), the federal government could prohibit the sale of music and video CDs from the People‟s Republic of
    China.

11. Under the ____ ____ (99), the states have the power to regulate purely intrastate business activity.

12. Under the U.S. Constitution, the states retain the ____ ____(99) to pass laws related to health, safety, welfare, etc. of its citizens.

13. The states have the authority under the ______ ______ (5) to regulate matters of legitimate local concern (e.g.).

14. The Bill of Rights refers to _________________ (6) amendments of the U.S. Constitution.

15.    The Commerce Clause of the U.S. Constitution is located in:           21.   The Contracts Clause of the U.S. Constitution is located in:
        Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).               Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
16.    Governance over the District of Columbia is referred to in:           22.   The Equal Protection Clause of the U.S. Constitution is located
       Article/Amendment __ (a) Section __ (b) Paragraph __ (c) .                        in:
                                                                                   Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
17.    The Privileges and Immunities Clause of the U.S. Constitution is      23.   The Double Jeopardy Clause of the U.S. Constitution is located
             located in:                                                                 in:
       Article/Amendment __ (a) Section ___ (b) Paragraph ___ (c).                 Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).

18.    The Necessary and Proper Clause of the U.S. Constitution is           24.   The provision in the U.S. Constitution against self-incrimination
       located in:                                                                       is located in:
        Article/Amendment __ (a) Section __ (b) Paragraph __ (c).                  Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).

19.    The Due Process Clause of the U.S. Constitution is located in:        25.   The clause in the U.S. Constitution that provides for
        Article/Amendment __ (a) Section __ (b) Paragraph ___ (c).                      impeachment of the President is located in:
                                                                                   Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
20.    The clause in the U.S. Constitution that provides for diversity
            jurisdiction is located in:
       Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).

26. The euphemism(s) for slaves/slavery used in the U.S. Constitution. They are located in:
        Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
        Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
        Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
        Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).
        Article/Amendment ___ (a) Section ___ (b) Paragraph ___ (c).

27. Article _____ of the U. S. Constitution was changed by Amendment XV.

28. Article _____ of the U. S. Constitution was changed by Amendment XVI.

29.At the time of ratification of the U.S. Constitution, the smallest state in the Union was _____.

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30. At the time of ratification of the U.S. Constitution, the largest state in the Union was _____.

31. In what Article and Section of U.S. Constitution is the Supremacy Clause? What are the next few words subsequent to the words of the
    Supremacy Clause?

32. In what Article and Section of the U.S. Constitution is the Commerce Clause? What are the words of the Clause immediately preceding
    the Commerce Clause?

33. In 1787, supporters of the movement to ratify the Constitution were called _______.

34. In 1787, detractors of the of the movement to ratify the Constitution were called _______ .



  ESSAY (from lecture material)
E1          In the U.S. Constitution, what is the difference between the Articles and the Amendments?

E2          Which Amendment could be called the “Federalism” Amendment?

E3          Why was there a need for a Constitutional Convention?




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                                                              QUIZ 4B
                                                         THE CONSTITUTION
                                                            (Cheeseman Ch. 4)
                                                           The Constitution (T-F/M-C)


BACKGROUND
1.   The U.S. Constitution divides power between state and local (city and county) governments.

2.   Unlike the Articles of Confederation, the U.S. Constitution provides for a strong federal government.

3.   The enumeration of federal powers in the U.S. Constitution was designed to preserve states’ rights by limiting the federal
     government’s power to certain topics.

4. A proposed amendment to the Constitution must be ratified within two years of its passage by Congress.

5.   The police power is the power of the state to police its citizens.

6. The final result in the 2 LIVE CREW case was that the plaintiffs won.

7.   The due process clause prohibits the government from taking a person‟s liberty or property.

COMMERCE CLAUSE
8.   Under the modern interpretation of the Commerce Clause, the federal government has the power to regulate any social or economic
     activity which has an effect on interstate commerce.

9.   The Supreme Court has said that the nature of the commerce power is national and any state action in this area is incompatible with the
     federal commerce power.

10. If a restaurant sells food to only local people, its activities cannot be regulated by Congress.

11. If the federal minimum wage is $4.25 per hour, then a state may not pass a higher minimum because of the Commerce Clause.

12. Congress is quite limited as to the type of legislation it can pass pursuant to the commerce clause

13. The power of Congress under the Commerce Clause makes it virtually impossible for the states to regulate the banking industry.

14. Not all business or commerce activity has been considered by the court to be commerce that is can be regulated under the commerce
    clause.

15. Interstate commerce is exempt from local and state taxes.

CONTRACT CLAUSE
16. The contract clause applies only to state governments.

PRIVILEGES AND IMMUNITIES
17. Under the Privileges and Immunities clause, states MAY NOT discriminate in favor of their citizens against citizens of another state.

18. The Court has said that, since the “privileges and immunities” clause bears upon the vitality of the nation as a single entity, any
    discrimination based upon state citizenship is unconstitutional.

19. Under the Privileges and immunities clause, a state MAY NOT charge higher tuition for out-of-state residents.

SUPREMACY CLAUSE
20. From the Supremacy clause, the U.S. Supreme Court developed the pre-emption doctrine.

21. Under the Supremacy Clause, state legislation adopted under the police power takes priority over conflicting federal legislation.

22. The Supremacy Clause and the accompanying pre-emption doctrine apply not only to congressional legislation, but also to rules and
    regulations promulgated by federal administrative agencies. That is, these administrative rules and regulations also have pre-emptive
    power over state laws.

23. If Congress intended to displace or pre-empt state law, the Supreme Court will enforce both laws, if there is no actual conflict in the
    objectives of the two laws.

FREE SPEECH
24. As originally adopted, the Bill of Rights limited the power of both the federal and the state governments to infringe upon the individual
    liberties.

25. A state may not penalize a person for spreading false rumors because to do so would violate his/her right to free speech.

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26. According to current Supreme Court doctrine, commercial speech is protected by the Constitution to the same extent as individual
    speech.

PETITION AND REDRESS
27. Businessman A lobbies Congress to adopt a statute that will favor Businessman A over Businessman B. Businessman A‟s lobbying is
    protected by the First Amendment.

EQUAL PROTECTION
28. It does not violate the equal protection clause for a group of ten private investors to refuse to admit poor people to their club.

29. If a state treats for-profit health clubs differently from not-for-profit health clubs, it needs a reasonable basis for such a classification.

30. To justify treating men differently from women the state classification must serve important governmental objectives and must be
    substantially related to achievement of those objectives.

31. To determine the constitutionality of a law restricting the right to vote, the courts employ intermediate scrutiny.

32. State statutes that discriminate against men or women are subject to scrutiny, because gender is considered a “suspect classification”.

33. If a state treats people of different races differently, such a law will be evaluated according to the rational basis test.

DUE PROCESS
34. Substantive due process requires a hearing before the government can take a person‟ liberty or property.

35. The equal protection and due process clauses of the Fourteenth Amendment place limits on the power of the states.

36. The due process clause of the Constitution generally requires that a state provide an individual with an opportunity for a hearing prior to
    depriving him/her of a property right.

37. A law that permits creditors to seize debtor‟s wages without first giving them a hearing, probably deprives them of their due process
rights.

38. If the National Collegiate Athletic Association (NCAA) suggests a college coach should be suspended, the actions of the NCAA DO NOT
    deprive the coach of his due process rights.

39. Zoning restrictions which reduce the value of property are considered unconstitutional regulatory takings unless the property owners are
    given reasonable compensation.

40. Courts carefully examine the economic wisdom of state legislation. If they disagree with the thinking of the legislature, they will strike the
    legislation down as a violation of the due process clause.




                                                           MULTIPLE-CHOICE
BACKGROUND
41. After the constitutional convention, the ____ states quickly ratified the constitution
     a) small.        b) large.            c) southern.        d) northern.           e) coastal.

42. The U.S. Constitution divides power between:
     a) the state and local governments.            c) the state government and individuals.
     b) the federal government and individuals.     d) local government and individuals.
                               e) the state and federal governments.

43. ALL the following are clauses in the U. S. Constitution, EXCEPT the:
     a) Supremacy clause.                      c) Contract clause.
     b) Commerce clause.                       d) Separation of powers clause.
                    e) ALL the above are clauses in the CONSTITUTION.

44. The U.S. Constitution includes:
    a) 6 Articles and 10 Amendments.                c) 7 Articles and 29 Amendments.
    b) 3 Articles and 25 Amendments.                d) 7 Articles and 26 Amendments.
                    e) None of the above.

45. In the U.S. Constitution, Article I, Article II, and Article III respectively refer to the:
     a) Judiciary, Executive, and Legislature.                 c) Judiciary, Legislature, and Executive.
     b) Executive, Judiciary, and Legislature.                 d) Legislature, Judiciary, and Executive..
                    e) None of the above.

46. Under the Constitution, all of the following federal powers are enumerated powers EXCEPT:
     a) The power to adopt patent and copyright laws.                c) The power to establish a bankruptcy system.
     b) The power to regulate interstate commerce.             d) The power to regulate international trade.
                   e) The power to establish a banking system.

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47. Which of the following is among the powers of a state government? The power to:
    a) determine the circumstances under which a debtor may declare bankruptcy.
    b) grant a patent for the invention of a gasless automobile.
    c) set the punishment to a person convicted of murder.
    d) regulate commerce among the states.
    e) none of the above, because these are all examples of the federal government's express powers.

48. The Constitution may be amended by a vote of ______ of both houses along with ratification by the legislatures of ______ of the states.
     a) Two-thirds, Two-thirds.        c) Two-thirds, Three-fourths.
     b) Three-thirds, Three-fourths.       d) Three-thirds, Two-thirds.
                         e) Fifty-one percent, fifty-one percent.

49. Supreme Court justice stated “…I know it when I see it”. He was referring to:
    a) obscene speech.            c) offensive speech.
    b) commercial speech.         d) defamatory speech.

50. The “just compensation clause” is associated with:
    a) substantive due process. c) the strict scrutiny test.
    b) the rational basis test.     d) interstate commerce.
                          e) procedural due process.

51. “Excessive” punitive damages awarded by a jury may violate the
     a) equal protection clause.  c) privileges and immunities clause.
     b) commerce clause.          d) due process clause.

52. The Cipollone cigarette case involved the:
    a) commerce clause.                 c) supremacy clause.
    b) due process clause.         d) equal protection clause.
                        e) NONE OF THE ABOVE IS THE CORRECT ANSWER.

53. The Prince George‟s County ordinance requiring telecommunications companies to obtain a franchise license:
    a) was a proper exercise of the police power.     c) violated the supremacy clause.
    b) violated the commerce clause.                  d) violated the incorporation doctrine.
                        e) NONE OF THE ABOVE IS THE CORRECT ANSWER.

54. The BEIS DIN of Rabbinic jurisprudence is similar to:
    a) the U.S. Constitution.     c) the privileges and immunities clause.
    b) the supremacy clause.      d) equal protection clause.
                         e) ADR.

55. The supremacy clause is related to the:
    a) First Amendment.              c) police power.
    b) strict scrutiny test.         d) equal protection clause.
                            e) pre-emption doctrine.

56. The “States‟ Relations” Article refers to ALL of the following provisions, EXCEPT:
    a) Privileges and immunities.         c) Full faith and credit.
    b) Extradition.                       d) New states.

57. The “States‟ Relations” Article is:
     a) Article IV.      b) Article V.         c) Article VI.      d) Article VII.       e) None of the above.

58. The requirement of due process applies to:
    a) neither the federal government NOR the state governments.            c) the state governments, but NOT the federal
                                                          governments.
    b) the federal government, but NOT the state governments.          d) both federal and state governments.

THE BILL OF RIGHTS
59. The Bill of Rights includes ALL of the following, EXCEPT the right to:
     a) equal protection.            c) a jury trial.
     b) due process.                       d) a lawyer.
                           e) None of the above is the correct answer.

THE FIRST AMENDMENT
60. In interpreting the U.S. Constitution, the U.S. Supreme Court places speech into three categories. Which of the following is NOT one of
     these categories?
     a) commercial speech.                  c) unprotected speech.
     b) fully protected speech.             d) limited protected speech.

61. The First Amendment includes ALL of the following provisions, EXCEPT:
     a) free speech.         c) petition the government.
     b) peaceful assembly.   d) free exercise clause.
                        e) None of the above is the correct answer.




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62. The following are examples of unprotected speech, EXCEPT:
     a) dangerous speech.           c) offensive speech.
     b) obscene speech.             d) “fighting words”
                        e) child pornography.

63. Which of the following best describes the constitutional protection for commercial and political speech under the First Amendment?
    a) Commercial speech is not protected; political speech is protected.
    b) Both are protected, but commercial speech receives less protection than political speech.
    c) Commercial speech and political speech receive the same protection.
    d) Commercial speech receives more protection than political speech.

64. In the U.S. Constitution, freedom of religion is divided into:
    a) the establishment clause and the free exercise clause.
    b) the establishment clause and the freedom clause.
    c) the freedom clause and the equal protection clause.
    d) the due process clause and the free exercise clause.
    e) NONE of the above is the right answer.

EQUAL PROTECTION
65. Equal protection is provided for in the _____ Amendment of the U.S. Constitution.
    a) First.                                         d) Thirteenth (involving slavery)
    b) Second (involving the right to bear arms).     e) Fourteenth (involving due process).
                         e) NONE of the above.

66. In its interpretation of the Equal Protection clause, the U.S. Supreme Court has identifies three standards for analyzing equal protection
     claims. Which of the following is NOT a standard for analyzing equal protection, according to the Supreme Court?
     a) limited scrutiny.                   c) substantive due process.
     b) procedural due process.             d) free exercise test.
                             e) NONE OF THE ABOVE is a proper standard for equal protection analysis.

67. Florida has a statute prohibiting attorneys from spending money to support or oppose a judicial candidate. Lynn Donahue, a lawyer,
    challenges the constitutionality of the law, claiming that it violates the First Amendment. The court will use which of the following tests to
    determine the constitutionality of the law?
    a) Strict scrutiny.
    b) Intermediate scrutiny.
    c) Minimum scrutiny ( the rational basis standard).
    d) Ad hoc balancing.
    e) NONE OF THE ABOVE.

THE FIFTH AMENDMENT
68. The Fifth Amendment includes ALL of the following, EXCEPT:
     a) grand jury indictment.      c) substantive due process.
     b) double jeopardy.            d) eminent domain.
                          e) procedural due process.

69. A state law that prohibited persons from wearing “clothes of the opposite sex” would be:
     a) constitutional as an exercise of the police power.
     b) an unconstitutional violation of substantive due process.
     c) an unconstitutional violation of procedural due process.
     d) an unconstitutional violation of equal protection.
     e) an unconstitutional violation of the privileges and immunities clause.

70. The due process clause of the U.S. Constitution applies to the:
     a) Federal government through the 15th Amendment, one of the “Civil War” Amendments.
     b) State governments through the 5th Amendment, one of the “Bill of Rights”.
     c) Federal government through the 5th Amendment, one of the “Bill of Rights”.
     d) State government through the 13th Amendment, one of the “Civil War” Amendments.
     e) None of the above.

71. Which of the following is an example of a regulatory taking?
    a) The state of Maine adopts a zoning law prohibiting a property owner operating a business on that property.
    b) The state of Maine decides to build a state park and uses the power of eminent domain to obtain property from private owners.
    c) The state of Maine enacts a law requiring that private property owners permit members of the public to the park free of charge in
          private driveways.
    d) All of the above are examples of regulatory takings.

72. Substantive due process involves a consideration of all of the following EXCEPT:
     a) The content (rights and duties) of a regulation.
     b) Determining whether a statute is arbitrary.
     c) Determining whether a statute is related to a legitimate legislative policy.
     d) The steps used by government to deprive an individual of life, liberty, or property.




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                                                         QUIZ 4C
                                                   THE CONSTITUTION
                                                       (Cheeseman Ch. 4)
                                                      The Constitution (T-F/M-C)


                                 PROVISIONS OF THE CONSTITUTION
For the following Scantron lines (51-86) COLUMN 1, choose the letter from COLUMN 2 that is most closely related:

            COLUMN 1                                                          COLUMN 2
 (1)   legislative branch                                             (a)        Article I
 (2)   executive branch                                               (b)        Article II
 (3)   judicial branch                                                (c)        Article III
 (4)   Federalism                                                     (d)        Article IV
 (5)   punitive damages too big?                                      (a)        Article V
 (6)   State‟ Relations Article                                       (b)        Article VI
 (7)   Supremacy clause                                               (c)        Article VII
 (8)   police powers clause                                           (d)        Article VIII
 (9)   Separation of Powers clause                                    (a)        Article IX
(10)   Privileges and Immunities clause                               (b)        Article X
(11)   Contract clause                                                (c)        Article XI
(12)   free speech clause                                             (d)        Article XII
(13)   equal protection clause                                        (a)        Article XIII
(14)   full faith and credit clause                                   (b)        Article XIV
(15)   extradition clause                                             (c)        First Amendment
(16)   Enumeration clause                                             (d)        Second Amendment
(17)   due process clause                                             (a)        Third Amendment
(18)   free exercise clause                                           (b)        Fourth Amendment
(19)   establishment clause                                           (c)        Fifth Amendment
(20)   pre-emption clause                                             (d)        Sixth Amendment
(21)   checks and balances clause                                     (a)        Seventh Amendment
                                                                      (b)        Eighth Amendment
                                                                      (c)        Ninth Amendment
                                                                      (d)        Tenth Amendment
                                                                      (a)        Eleventh Amendment
                                                                      (b)        Twelfth Amendment
                                                                      (c)        Thirteenth Amendment
                                                                      (d)        Fourteenth Amendment


                                                  (e) = NONE OF THE ABOVE.


Equal Protection Scrutiny
For the following Scantron lines (77-85), choose the letter that reflects the correct level of scrutiny:

       Type of Discrimination                                                                        Level of Scrutiny
(27)   veteran‟s preference         (31)   voting                     (35)   race                    (a)   Rational Basis
(28)   sex                          (32)   age                        (36)   state citizenship       (b)   Intermediate
(29)   national origin              (33)   marriage                                                  (c)   Strict
(30)   school desegregation         (34)   religion




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                                                               QUIZ 4D
                                                       CONSTITUTIONAL LAW
                                                            (Cheeseman Ch. 4)
                                                           The Constitution (T-F/M-C)

1.   Congress passes a law prohibiting billboards in any residential area of a city. The law also requires existing billboards to be removed.
     Judy Olson, the owner of several billboards in residential neighborhoods of Ocean View, Illinois, challenges the constitutionality of the
     provision requiring the dismantling of existing billboards. Her best argument is that the law violates her constitutional right under which of
     the following?
     a) The takings clause of the Fifth Amendment.
     b) The due process clause of the Fourteenth Amendment.
     c) The contract clause of the Constitution.
     d) The equal protection clause of the Fourteenth Amendment.

2.   To encourage the development of in-state producers of wheat products, Nebraska imposes a tariff on all wheat products shipped into
     the state from other wheat-producing states. Kansas challenges the tariff law, claiming that it violates the commerce clause. Who will
     likely prevail in the lawsuit?
     a) Nebraska, because the law is a valid exercise of its police power.
     b) Kansas, because the tariff law (which imposes a tax) permits an unconstitutional taking of money.
     c) Nebraska, because the tariff protects local businesses.
     d) Kansas, because the law discriminates against interstate commerce.

3.   The Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) gives the Environmental Protection Agency (EPA) authority to regulate
     the labeling, registration, and use of pesticides. Ultrachem, a pesticide manufacturer, seeks a license from the EPA to sell a pesticide
     named XZ-240A. Finding XZ-240A unsafe for commercial or residential use, the EPA refuses to grant a license. Later, under a state
     pesticide law, Ultrachem seeks and is granted a license to sell XZ-240A in Arkansas. The EPA sues to prevent Ultrachem from selling
     XZ-240A in Arkansas. Who is likely to win and Why?
     a) The EPA, because state pesticide laws are expressly prohibited by the Constitution.
     b) Ultrachem, because the federal government has no power to regulate interstate commerce.
     c) The EPA, because the state pesticide law is preempted by the FRIFA.
     d) Ultrachem, because FIFRA violates the 10th Amendment.

4.   Indiana has a statute giving the debtor-owner of land a six-month period of redemption during which the debtor may buy back property
     sold at foreclosure sale. During that period, the debtor is allowed to remain in possession of the property and to keep any rent or income
     from it. During a period of farm crisis, Indiana changes the law and extends the redemption period to one year. Indico Financial, a
     creditor with several farm mortgages in foreclosure, claims that the law cannot be retroactively applied to mortgages entered into before
     the law’s enactment. Indico sues to prevent application of the law to such preexisting mortgages, Indico’s strongest argument is that
     the law violates which of the following?
     a) The due process clause of the Fourteenth Amendment.
     b) The equal protection clause of the Fourteenth Amendment.
     c) The Commerce Clause.
     d) The Contract Clause.

5.   Congress passes a bill to create an administrative agency with the power to supervise the building of dams and bridges. The President
     believes that the agency is unnecessary and vetoes the bill. This situation illustrates:
     a) The implied powers doctrine.
     b) Preemption.
     c) Separation of powers.
     e) Constitutional checks and balances.

6.   Sarah and her family consumed some of the chickens and eggs she produced on her farm. She sold the remaining poultry products on
     the open market. To reduce a national over-supply of eggs, Congress passes a law limiting the number of chickens that producers like
     Sarah can raise on their farms. Sarah raises more chickens than the new law allows and then challenges its constitutionality. Which of
     the following best describes the constitutional status of this law?
     a) The statute is an unconstitutional interference with economic activity because Sarah’s actions would have minimal effect on
           interstate commerce and thus cannot be regulated.
     b) The statute is an unconstitutional interference with economic activity because Sarah’s actions involve her family’s consumption of
           eggs and chickens on the farm and thus involve only interstate commerce.
     c) This statute is a legitimate exercise of federal power under the commerce clause because if Sarah’s conduct were repeated by
           other farmers, there would be a cumulative effect on interstate commerce.
     d) Both A and B above are correct.

7.   Congress adopts a statute imposing minimum quality standards for drinking water. Ohio enacts a law permitting less demanding
     standards for drinking water distributed within the state. The state statute conflicts with the federal statute. Which one has priority?
     a) The federal statute has priority under the supremacy clause.
     b) The state statute has priority under the supremacy clause.
     c) The federal statute has priority under the police power.
     d) Since the statutes are on the same topic, state water authorities can choose which one to apply.




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8. Security Co. adopts an employment policy requiring all employees to remain single during the time they work for the company. If the
   company discovers that an employee is married, the company will fire that employee. What provision of the Constitution has been
   violated by this company policy?
   a) The privacy guarantees.
   b) The due process clause.
   c) Both of the above provisions have been violated.
   d) None of the above has been violated unless state action is involved.

9.   The Arizona legislature adopted a statute prohibiting the sale of computer chips manufactured outside the state. One purpose of the law
     was to reduce the likelihood that defective computer chips will be sold in the state. The legislators believed that more defective chips
     came from out-of-state than in-state producers, although they had no independent verification of that. Another reason the legislature
     adopted the statute was to reserve jobs and thus reduce unemployment. Best Chips Co., a computer chip manufacturer in Boise, Idaho,
     challenges the statute, arguing that it violates the commerce clause of the Constitution. Does it? Explain.

10. Alice has a 600-acre farm in South Dakota on which she grows corn and wheat. 60 acres of her farm consist of small ponds called
    prairie pot holes that she could use as productive farmland if she were allowed to drain them. Under federal environmental regulations,
    however, she is prohibited from draining the pot holes because they provide habitat for migratory birds, the preservation of which is
    essential for the survival of some species, including some endangered and threatened birds. Because Alice receives no compensation
    from federal government under the pot hole regulations, she challenges their constitutionality. The government contends that she can
    still use the remaining farmland to grow crops and make a living and, therefore, no regulatory takings have occurred. What factors will
    the court consider in determining the constitutionality of the regulations? How should the courts deal with the issue raised by the
    government, i.e., that no taking of land occurs if the government restrictions affect only a part of a parcel of land? Who is likely to prevail
    in the lawsuit? Why?

11. The state of Montana requires truckers to obtain a special license before operating diesel trucks within the state. Sandy secured the
    license and has been operating a diesel truck in Montana for several years. Her sole income for those years was from truck driving.
    When she applied to renew her license, the state motor vehicle department denied her request. Is Sandy entitled to some form of notice
    and a hearing before the state denies her application for a license? Why? If so, what due process steps is she entitled to under the
    circumstances?

12. Technology, Inc., a Michigan corporation, purchases advertising space for discussing its positions on a variety of political issues.
    Michigan enacted a statute prohibiting business corporations from purchasing advertising space for that purpose without the unanimous
    approval of their shareholders. Does the Michigan statute violate the First Amendment?




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                                                             QUIZ 43B
                                                    SOURCES OF LAW
                                                               Administrative Law




1.   Administrative decisions should be set aside by the court if the court doesn’t agree or if the court would make a different decision.

2.   Referring to the quasi-legislative function of an agency, we are referring to its rule making function.

3.   Agencies have the power to require businesses to keep certain records.

4.   Agencies must rely on the voluntary cooperation of business when it seeks to interview witnesses or examine documents.

5.   An agency may inspect a business without first securing a warrant.

6.   If a business executive reasonably relies on advice received from an administrative agency, then that agency is bound to honor that
     advice even if it was in error.

7.   Courts have the power to review adjudicative decisions rendered by administrative agencies.

8.   Administrative agencies were created by the Constitution.

9. Other than by constitutional amendment, there are no effective checks on the power of administrative agencies.

10. The Administrative Procedures Act (APA) sets forth standards and procedures that an agency must follow in its rule-making and
    adjudication functions.

11. Administrative agencies are required to provide notice of their proposed rule-making and to permit interested parties to participate in the
    process.

12. Once an administrative agency has promulgated a rule, that rule can only be rescinded through an act of the legislature.

13. The Federal Register is the official public notice organ for federal administrative agencies.

14. An enabling act is a statue that creates an administrative agency and outlines the policy goals of the legislature.

15. Constitutional due process standards do not apply to administrative agencies because such government bodies are not mentioned
    anywhere in that document.

4.   When deciding a case, a court will never defer to another branch government such as the legislature or an administrative agency.

16. All the following are functions of administrative agencies, except:
    a) Legislating.             b) Adjudicating. c) Investigating.               d)   Advising.           e)   Rule making.

17. In interpreting the meaning of important words in statutes, the courts will occasionally consult:
    a) Legislative history.                                  c) An authoritative legal dictionary.        e)   A and B.
    b) An authoritative English language dictionary.         d) B and C.

For the following questions (18-27), choose the ACRONYM that fits the description.
18. Protects the public from anticompetitive behavior and from unfair and deceptive business practices; a law enforcement agency.
    a) SEC.               b) CPSC.            c) NLRB.           d) FTC.         e) FCC.

19. Licenses and regulates the nuclear energy industry.
    a) NLRB.           b) NRC.              c) OSHA.            d)   FDA.             e)   EPA.

20. Regulates interstate and foreign electronic communications.
    a) FTC.        b) NRC.              c) EEOC.            d) CPSC.                  e)   FCC.

21. Protects the public against unreasonable risks associated with consumer products.
    a) CPSC.             b) FDA.            c) FTC.         d) EPA.            e) OSHA.

22. Ensures that all workers are safe and healthy working environment.
    a) EPA.              b) OSHA.           c) EEOC.             d) NLRB.                  e)     FDA.

23. Seeks to prevent discrimination, unemployment and other unlawful employment practices.
    a) FEC.             b) SEC.             c) OSHA.           d) EEOC.           e) NLRB.

24. Enforces the federal securities laws.
    a) CPSC.            b) SEC.                c)    OSHA.           d)    FTC             e) FCC




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25. Administers laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs.
    a) FDA.             b) FTC.           c) FCC.              d) EPA.             e) CPSC.

26. Conducts union certification elections and holds hearings on unfair labor practice complaints.
    a) OSHA.            b) NRC.              c) FTC.             d) NLRB.               e) FCC.

27. Administers all laws relating to the environment.
    a) FDA               b) OSHA               c) EPA               d)    SEC          e)   NRC

28. An administrative agency is capable of issuing what kind(s) of orders:
    a) Consent decrees            b) Specific performance         c) Injunctions       d)   a and c           e) b and c

29. The acronym ALJ stands for:
    a) Agency law judge.                 c)   Administrative law judge.                     e)    Administrative, legal, judicial
    b) Adjudicating law judge.           d)   Administration, legislative, judicial

30. Administrative agencies are created by:
    a) Courts.          b) The legislature.        c) Local government only.           d) The Constitution.                e) All except c.

31. During which historical era did Congress first create administrative agencies?
    a) During the New Deal in the 1930s.                           c) In the late Eighteenth Century.
    b) During the Progressive Era at the turn of the century.      d) During the Great Society programs of the mid-1960s.
                              e) During Reagan Administration.

32. Which of the following are criticisms that are often leveled at administrative agencies?
    a) Agencies are insulated from voter control.
    b) Agencies continue to exist without much effort to phase them out when their main tasks are accomplished.
    c) Agencies are unable to make rules, thus creating uncertainties for businesses that are subject to their powers.
    d) A and B.
    e) None of the above.

33. Sunset legislation is best described as follows:
    a) A means by which the public can register dissatisfaction with the actions or a particular administrative agency.
    b) A statute that sets a time limit on the life of an administrative agency.
    c) A statute that sets standards that an agency must follow in its rule-making and adjudication functions.
    d) A mechanism through which Congress funds administrative agencies.
    e) None of the above.

34. Which of the following can be described as an executive function of an administrative agency?
    a) Subpoena witness and documents.                          c) Inspect a business’ books and records.                  e) Rescind a
        regulation.
    b) A review of a agency decisions on due process grounds.         d) A and C.

35. ABC, Inc. Is required to file a report with the Occupational Safety and Health Agency (OSHA) by June 1. Jim Jones, one of ABC’s
    executives, calls the agency to confirm the deadline and is told that the report is due June 15. This was an error. However, ABC, relying
    on the later date, does not file its report until June 14. May OSHA cite ABC for its late filing?
    a) No, because ABC filed by the time it was told by an agency employee.
    b) No, because ABC acted in reasonable reliance.
    c) Yes, because companies may not rely on information told to them by agency employees.
    d) A and B.
    e) No, because such an agency action is barred by the Administrative Procedures Act.

36. Which of the following is NOT means through which a court reviews agency adjudicative decisions?
    a) Whether the agency has exceeded its authority as provide by its enabling act.
    b) Whether the agency has acted reasonably and not arbitrarily.
    c) Whether the decision conformed to provisions in the Sunset legislation.
    d) Whether Constitutional due process standards were complied with.
    e) All of the above are means by which courts review agency adjudications.

37. Mary Jones is a manager of a factory whose toxic waste disposal is regulated by the Environmental Protection Agency. Last week, the
    EPA moved to close the factory based on violation of a new EPA regulation that forbids the creation of toxic waste. No hearings were
    held by the EPA before this regulation was promulgated. No notice had been published in the Federal Register. If Jones challenges the
    regulation, what might be expected?
    a) The regulation would be upheld because courts defer to agency expertise.
    b) The regulation would be stricken because it would be considered ultra vires.
    c) The regulation would probably be stricken because the EPA’s rule-making procedure was not fair.
    d) Administrative agencies have no rule making power.
    e) B and C.




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38. The FCC held a hearing to determine whether Phyllis Teane’s radio station license should be revoked. Teane refused to play any music
     written by Mozart and, although no statute or administrative regulation requires it, the hearing officer thought that the nation’s cultural
     standards should be raised. Furthermore, Teane was denied the opportunity to present witness on her behalf at the hearing. If the FCC
     revokes her license, how may a court review the decision on appeal?
     a) Courts do not have the power to review agency hearing decisions. That power rests with the legislature.
     b) The court will overrule the decision because the agency acted arbitrarily in its decision making.
     c) The court will overrule the decision because the agency did not follow constitutional due process requirements.
     d) B and C.
                                                              e) NONE of the above.




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                                                              QUIZ 54A
                                                INTERNATIONAL LAW
                                                             CHEESEMAN CH. 54

SOURCES OF INTERATIONAL LAW
The ____ (1) Clause of the U.S. Constitution gives most of the power to regulate foreign commerce to the federal government.

Under the _____ (2) Clause, only the federal government may enter into treaties with foreign nations.

Under the _____ (3) Clause, state laws that conflict with treaties are void not enforceable.

The Country Myanmar was formerly called _______ (4).

The ICJ and the European Court of Justice are examples of international f____s (5) that decide disputes.

_____ (6) are international agreements between two or more nations.

A _____ (7) is a signed and ratified agreement among nations that is usually sponsored by an international organization.

_____ (8) refers to one country extending courtesies to another country based on respect, goodwill, and civility.

The country ____ (9) is de facto the world‟s e-commerce police.

The two Internet treaties administered by the WIPO are the _____ (10) Treaty and the ______ (11) Treaty.

INTERNATIONAL ORGANIZATIONS
The European Union was once called the ____ _____ (12) or sometimes the ____ ____ (13).

Besides the European Union (EU), NAME a regional organization that promotes economic development and cooperation _____
(14).

The ___ ___ ___ (15) was created as part of the Uruguay Round of the ___ ___ _ ___ ___(16).

INTERNATIONAL COURTS
The ___ ___ _ ___ (17), also called the ____ ____ (18) is located in _____ (city) (19) and is the judicial branch of the United
Nations.

The _ __ _ __ (20), located in ___ (city) (21), has jurisdiction to enforce European Community law involving disputes between
nations.

The ___ ___ _ ___ ____ (22), attached to the ___ ___ _ ___ (23), hears cases brought by individuals and businesses.

______ (24) is a type of nationalization (seizure) whereby the property owner is paid just compensation for the seized property.

_____ (25) is a type of nationalization (seizure) whereby the property owner receives at most inadequate payment for the seized
property.

_ _ _ _ (26) is a government agency that offers a type of insurance against losses resulting from seizure of assets by foreign
governments.

JUDICIAL RESOLUTION OF INTERNATIONAL DISPUTES
Under the ___ _ ___ (27) doctrine, one country cannot question the acts that take place wholly within another country’s borders.

A ___ __ ___ (28) clause determines where an international dispute will be heard.

The ____ (29) is a codification of the doctrine of sovereign immunity

E_____ (30) is the process by which foreign countries return criminal defendants to the country of their alleged crime.


NAME                                                                    Give an example of:
(31) an economic community involving countries in:                      (33) a case where the WTO decided a dispute between two
a) Latin America; b) Middle East; c) Africa                             countries.
(32) Besides the Berne and Paris Conventions, NAME a                    (34) a case where comity played a part in a court‟s decision.
convention administered by the WIPO.
ACRONYMS WIPO (36) GATT (37) ICJ (38) NAFTA (39)                        (35) a state law that was voided by the foreign commerce
OPEC (40) OPIC (41) UNICEF(42)                                          clause.


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                                                      QUIZ 54B
                                            INTERNATIONAL LAW
                                                       (Cheeseman Ch. 54)
                                                            T-F/M-C

1) Under GATT, unanimity was required in order to implement enforcement.
2) Issues in the GATT appeals court are limited to issues of fact, NOT law.

3) The U.S. Constitution invests power over foreign commerce exclusively in the U.S. Government.

4) The WIPO is a special agency of the U.N.

5) The Berne (copyrights) and Paris (patents) Conventions are administered under the GATT.

6) International courts are NOT bound by their own precedent.

7) BLANK

8) Violation of the European data protection directive is a criminal violation.

9) The  International Court of Justice (ICJ) is the single world court responsible for
    interpreting world law.
10) Which of the following is NOT a forum?
a) The U.S. Justice Department.  c) The U.S. Supreme Court.            e) ALL THE ABOVE are forums.
b) U.S. Congress.                     d) NAFTA.

11) Which of the following partial lists is the correct hierarchy that international courts rely on?
a) general principles of law and then judicial decisions. c) custom and then treaties.
b) treaties and then custom.                              d) TWO OF THE ABOVE. e) ALL THE BOVE.

12) Which of the following might arbitrate a dispute between parties to an international contract?
a) WTO       b) GATT      c) OPIC           d) World Court     e) NONE OF THE ABOVE.

13) Which of the following facilitates the judicial discovery in foreign countries? The:
a) Convention on the Taking of Evidence Abroad in Civil or Commercial Matters.
b) United Nations Convention on Depositions and Interrogatories.
c) Hague Convention on Depositions and Interrogatories.
d) ALL OF THE ABOVE.
e) NONE OF THE ABOVE.

14) Which of the following is NOT a principle of the Caux Round Table?
a) respect for rules.            c) support for multilateral trade.  e) respect for the environment.
b) comity.                       d) avoidance of illicit operations.

15) The WTO is a:
a) bilateral treaty.   b) multilateral treaty.      c) bilateral convention.      d) multilateral convention.

16) Datenschutz is related to the:
a) data police.                    c) International Court of Justice.             e) choice of forum.
b) Caux Round Table.               d) European Court of Justice.

17) The new conventions issued by the WIPO in 1996 are the :
a) Berne Convention.            c) Paris Convention.         e) NONE OF THE ABOVE.
b) Caux Round Table.            d) TWO OF THE ABOVE.

18) The WTO was created as part of:
a) ECJ        b) GATT           c) NAFTA                d) ICJ              e) OPIC




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19) The European Union also has been called the:
a) Common Market.                  c) EU.                                 e) ALL OF THE ABOVE.
b) European Community.             d) TWO OF THE ABOVE.

20) Which of the following is NOT a tribunal? The:
a) European Court of Justice.    c) The International Court of Justice.           e) The European Union.
b) The World Court.              d) European Court of First Instance.

21) The doctrine under which a foreign government cannot be sued in U.S. courts for acts the foreign
government commits in the U.S.
a) the Act of State doctrine.          c) the choice of forum doctrine. e) NONE OF THE ABOVE.
b) the doctrine of sovereign immunity. d) the doctrine of comity.

22) Which institution has been called the ―Supreme Court of Trade‖? The:
a) European Court of Justice.      c) World Court.                      e) NONE OF THE ABOVE.
b) International Court of Justice. d) European Court of First Instance.

23) Which of the following is said to impinge on the sovereignty of individual nations? The:
a) NAFTA.                          c) World Court.         e) ALL OF THE ABOVE.
b) International Court of Justice.     d) WTO.

24) The following are exceptions to the Foreign Sovereign Immunities Act (FSIA)
a) commercial activity.  b) custom.       c) arbitration. d) expropriation.   e) ALL of the above.

25) Which of the following codified the doctrine of sovereign immunity?
a) the Act of State legislation. c) the Foreign Sovereign Immunities Act. e) NONE OF THE ABOVE.
b) the WTO.                      d) the Foreign Corrupt Practices Act.

26) The doctrine under which a foreign government cannot be sued in U.S. courts for acts the foreign
government commits in its own country.
a) the Act of State doctrine. c) the choice of forum doctrine.       e) NONE OF THE ABOVE.
b) the doctrine of comity.    d) the doctrine of sovereign immunity.

27) Which of the following forums will hear cases brought by individuals?
a) The European Court of Justice.      c) The European Court of First Instance.      e) NONE….
b) The International Court of Justice. d) TWO OF THE ABOVE.

                         The General Agreement on Tariffs and Trade
                                                        (GATT)

31.    The GATT was created by the:
       a) Bretton Woods Conference           c) International Trade Organization
       b) World Trade Organization           d) United Nations

32. All the following are rounds of the GATT, EXCEPT:
       a) Uruguay       b) Torquay        c) Havana     d) Kennedy e) ALL the above are GATT rounds

33. The first round of the GATT was:
       a) Uruguay           b) Torquay       c) Havana                d) Kennedy             e) NONE the above.

34. The most recent round of the GATT was:
       a) Annecy               b) Geneva                c) Dillon         d) Uruguay         e) NONE the above.

35. The main purpose of the GATT is to (objectives, strategies, tactics):
       a) reduce barriers to international trade.       c) rounds         e) NONE of the above.
       b) promote economic recovery.                    d) Kennedy

36. The GATT is the world‟s only:
       a) multilateral trade agreement.      c) international trade organization
       b) international trade convention.        d) Kennedy

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                       e) ALL the above are GATT rounds

   37. The GATT was founded in:
          a) 1949.         b) 1951.         c) 1960.              d) 1993.             e) NONE of the above.

   38. The WTO was created in:
          a) 1949.         b) 1951.         c) 1960.              d) 1993.             e) NONE of the above.


  MATCH THE INSTITUTION WITH ITS LOCATION                                        MATCH THE INSTITUTION WITH ITS DATE OF ORIGIN
(51) European Court of Justice        (a)   Geneva, Switzerland                  (58) European Union                                               (a) 1945
(52) International Court of Justice   (b)   Luxembourg                           (59) Caux Round Table                                             (b) 1957
(53) World Court                      (c)   China                                (60) WTO                                                          (c) 1967
(54) World Trade Organization         (d)   New York City                        (61) NAFTA is effective                                           (d) 1994
(55) United Nations                   (e)   Uruguay                              (62) United Nations                                               (e) 1995
(56) WIPO                             (a) The Hague, The                         (63) WIPO                                                         (a) 1998
                                      Netherlands
(57) GATT                                                                        (64) China most favored nation                                    (b) 1999
                                                                                 (65) European Union Directive on data protection

                          de facto from de          treaty from convention.           OPIC from the Eximbank.      nationalization from expropriation
                         jure.
                          GATT from WTO.            extradition from confiscation     OPIC from OPEC               confiscation from seizure
DISTINGUISH:              a free-trade             The Act of State doctrine from     The Doctrine of Sovereign Immunity from the Foreign Sovereign
                              agreement from a         the Foreign Sovereign               Immunities Act of 1976.
                              managed-trade            Immunities Act of 1976.
                              agreement.

  DEFINE: ● tribunal ● forum ● ad hoc ● codification ● ordnance        ● hierarchy ●
     juggernaut ● comity
  RESEARCH
  ● Examples where act of state doctrine or sovereign immunity doctrine were applied.
  ● What are the other major Conventions administered by the WIPO?
  ● What are the arguments, pro and con, concerning the loss of sovereignty brought about by
     these international organizations and conventions?




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                                                                QUIZ 42B
                                                           THE LAW AS A DISCIPLINE
                                                             Ethics & Social Responsibility
                                                                    (Cheeseman Ch. 42)

                                             MORAL THEORIES AND BUSINESS ETHICS

Which Theory?
For the following multiple-choice questions, use the following choices:
a.   Ethical Fundamentalism.                c      Ethical Relativism.                         e.    Rawls‟ distributive justice theory.
b.   Utilitarianism.                        d.     Kantian Ethics.
1. Someone who makes moral and ethical decisions based on his or her own beliefs is applying which moral theory?

2. Someone who makes moral decisions by consulting an outside source, such as another person, is applying which moral theory?

3. Someone who believes that the principles of justice should be chosen by persons who have a “veil of ignorance” about their place in
    society, believes in which moral theory?

4. Someone who believes that principles of justice and moral duties are based on universal rules, and that these rules should apply in every
    case, without exception, believes in which moral theory?

5. Someone who believes that principles of justice and moral duties are based on universal rules, and that the actor must abide by the same
    rules being applied to others , believes in which moral theory?

6. Someone who believes that moral decisions should be made such that the greatest number of people receive the greatest amount of good
    out of the actions, believes in which moral theory?

7. A system of conduct based on the golden rule, “do unto others as you would have them do unto you”, would best be described as which of
    the following types of moral theories?

Factual Application (#62)
8. Mary owns her own business and has just attended a cash flow management seminar where it was suggested that businesses should
    delay paying their suppliers as long as absolutely possible, even if doing so violates the stated payment terms. Mary decides to continue
    paying her suppliers on time because she would like her customers to pay her on time. Mary has reached her decision in
     accordance with:

Factual Application (#63)
9. Peter runs an automobile air conditioning repair shop. Because of the phase-out of the ozone-depleting refrigerants used in older auto air
    conditioners, auto air conditioning repairers have become subject to numerous new laws and regulations, some of which are costly and
    burdensome to comply with. Although it costs him more, Peter decides to follow all the new statutes and regulations, as long as everyone
    else does the same. Peter has reached his decision in accordance with:


Characterized by
For the following questions, use the following choices:
a. consulting an outside source, such as a book or person, for guidance.
b. the belief that the moral rules should be determined by persons who have a “veil of ignorance” about their place or station in society.
c. the belief that a person must decide what course of action is proper based on that person‟s own set of beliefs or feelings.
d. determining which course of action produces the greatest amount of good for the greatest number of people.
e. a set of universal rules based on reasoning that must be applied in all situations and are characterized by reversibility.

10. The moral theory of ethical fundamentalism can best be                         13. Kantian ethics can best be characterized by:
    characterized by:
11. The moral theory of ethical relativism can best be characterized by:           14. Utilitarianism can best be characterized by:
12. The moral theory of utilitarianism can best be characterized by:               15. Rawls‟ social justice theory can best be characterized by:

Criticisms
For the following two questions, use the following choices:
a. moral and ethical rules are too rigid and fixed over time.
b. some persons would take actions that they believe to be moral, but that most persons in society believe to be immoral.
c. decisions require the measurement of qualities that are not subject to precise measurement.
d. decisions are not allowed to take into account a particular person‟s station or place in society.
16. One criticism of ethical relativism is that:                               17. A criticism of utilitarianism is that:




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18. A famous psychologist has written a highly acclaimed book targeted at victims of domestic abuse. This book includes practical advice on
    getting out of such relationships and avoiding further injury prior to getting out of the relationship. Pat thinks the book is excellent, but
    knows that many persons who could benefit from the book are unaware of its existence and unable to afford its $29.95 price. Pat is
    considering photocopying significant portions of the book and selling the photocopies to such persons at the cost of photocopying, which
    would be considerably less than $29.95. In using a utilitarianism approach to decide whether to undertake this, Pat would:
    a. look to an outside source regarding the photocopying and selling.
    b. look for a universal rule about photocopying and selling such material.
    c. try to determine the fairest thing to do.
    d. determine if the total good to the world would be increased if Pat were to sell the photocopied book sections.


                                         THE SOCIAL RESPONSIBILITY OF BUSINESS

For the following questions, use the following choices:
a.   maximize profits at any cost.                        d.    maximize profits as long as they do good.
b.   maximize profits as long as they obey all laws.            e. maximize profits as long as they consider all stakeholders.
c.   maximize profits as long as they do no harm.
19. The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for stockholders is:

20. The theory of business social responsibility that holds that a business owes a duty to generally do good for society is:

21. The theory of business social responsibility that holds that a business owes a duty to the various constituencies such as customers and
    employees, in addition to shareholders is:
22. A business that continues to produce domestically in order to avoid layoffs rather than shift its production overseas at lower cost is
    applying which theory of business social responsibility?
23. A business that is concerned solely with the financial implications of alternative cour4ses of action is applying which theory of business
social responsibility?

24. A business that is willing to sacrifice some income in order to avoid harm to others is applying which theory of business social
responsibility?

25. A business that undertakes activities that benefit persons who are in no way connected with the business is applying which theory of
business social responsibility?

26. Someone who argues that General Motors owes a duty to take into account the interests of the employees in its Ypsilanti factory in
decisions involving the plant is arguing for which theory of business social responsibility? (#65)


27. The Foreign Corrupt Practices Act prevents each of the following except:
    a. bribes to foreign officials.                     c. bribes to candidates for office in foreign nations
    b. bribes to foreign political party officials      d. bribes to foreign officials if the payment is legal under the local written laws.

28. The law that prevents payment of bribes to officials in foreign nations is known as:
    a. the Foreign Bribery Prevention Act (FBPA).          c. the Foreign Corrupt Practices Act (FCPA).
    b. the Ethics in International Business Act (EIBA). d. Foreign Officials‟ Protection Act (FOPA).

29. Corporations may adopt the ___ to affirm their belief that corporations and shareholders have a direct responsibility for the environment.
    a. National Environmental Policy Act.                 c. Rio de Janeiro Business Pledge
    b. Montreal Protocol of 1987.                   d. Valdez Principles

30. A procedure that can be used to assess the moral health of a corporation is the:
    a. social audit.               c. Corrupt practices inventory.
    b. Valdez checkup.             d. Minimum moral assessment.

31. The Valdez Principles include all the following except:
    a. Wise use of energy.                               c. sustainable use of natural resources.
    b. Government oversight of polluting industries.          d. use of environmental directors and managers.

32. The “maximizing profit” view of business social responsibility holds that business should:
    a. maximize profits at any cost.                     d. maximize profits as long as they do good.
    b. maximize profits as long as they obey all laws.        e. maximize profits as long as they consider all stakeholders.
    c. maximize profits as long as they do no harm.

33. The “moral minimum” view of business social responsibility holds that businesses should:
    a. maximize profits at any cost.                   d. maximize profits as long as they do good.
    b. maximize profits as long as they obey all laws.       e. maximize profits as long as they consider all stakeholders.
    c. maximize profits as long as they do no harm.

34. The stakeholder interests view of business social responsibility is most closely related to which of the following moral theories?
    a. Ethical Fundamentalism.           c. Kantian Ethics.                            e. Ethical Relativism.
    b. Utilitarianism.              d. Distributive Social Justice Ethics.



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                       PROJECT 2




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                       A MODEL FOR REPRESENTING
                           A CAUSE OF ACTION
                                         DEFINITIONS

Cause of Action (COA)       the name or title of a violation of law.


Prima Facie Case (PFC)      the elements (≥2) that the plaintiff must prove in order to prevail
                            (win)


Affirmative Defense (A/D)   a type of defense that affirms (admits) the PFC, BUT offers a
                            LEGAL justification or claim to exoneration.


Denial Defense (D/D         a type of defense that attacks one or more of the elements of a
                            PFC.


Remedies (R)                law vs. equity remedies (see p.38 of PRIMIS)




                             CAUSE OF ACTION
                            Plaintiff                             Defendant
Prima Facie Case (PFC)      elements                              D's denial defenses


Affirmative Defense (A/D)   P's response to D's A/D               D's affirmative defenses


Remedies (R)                law/equity                            D's responses to P's requests
                                                                  for remedies




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In parsing a PFC from a definition (e.g., in your textbooks), start a new
element every time you encounter a(n): noun, verb, adjective,
preposition, conjunction (AND /OR). For the cause of action of
ASSAULT, the ten elements of its PFC is represented below.

                                       ASSAULT
                       Plaintiff                                    Defendant
Prima                  ● intentional(adj) and
Facie                  ● unexcused (adj) and
Case                   ● ACT (noun) and
(PFC)                  ● creates (verb) and
                       ● in another person (prep) and
                       ● reasonable ( adj) and
                       ● apprehension OR fear (noun) and
                       ● of immediate (prep) and
                       ● harmful OR offensive (adj) and
                       ● CONTACT (noun).
Affirmative            P's response to D's affirmative Defenses     D's affirmative
Defenses                                                            defenses
(A/D)
Remedies               law/equity                                   D's responses to P's
                                                                    requests for
                                                                    remedies




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                                                         SECTION 5
                                                            "TORTIOUS" COA's
                                              VARIATIONS ON A THEME
                                                     NEGLIGENCE
          NEGLIGENCE                                  NEGLIGENCE                                      NEGLIGENCE
               (ordinary)                         (strict liability--activities)                 (strict liability--products)
1   duty of care                            duty of care                                     duty of care
2   breach of duty of care                  abnormally dangerous activity                    product DEFECT
    (carelessness, negligence)
3   actual cause (cause-in-fact)            actual cause (cause-in-fact)                     actual cause (cause-in-fact)
4   proximate cause (legal cause)           proximate cause (legal cause)                    proximate cause (legal cause)
5   injury                                  injury                                           injury


          NEGLIGENCE                                  NEGLIGENCE                                      NEGLIGENCE
         (good samaritan)                                         (DSA)                              (guest statutes)
1 duty of care                              duty of care                                     duty of care
2 gross negligence, …                       breach of duty of care                           gross negligence, …
                                            (carelessness, negligence)
3 actual cause (cause-in-fact)              actual cause (cause-in-fact)                     actual cause (cause-in-fact)
4 proximate cause (legal cause)             proximate cause (legal cause)                    proximate cause (legal cause)
5 injury                                    injury                                           injury


           NEGLIGENCE
            (negligence per se)
1   duty of care
2   2(a) statute
    2(b) relevant injury
    2(c) relevant plaintiff
    2(d) violation of the statute
3   actual cause (cause-in-fact)
4   proximate cause (legal cause)
5   injury
     For which type of negligence is _________ an element?
     a) GROSS NEGLIGENCE                           1) NEGLIGENCE (ordinary)                          5) NEGLIGENCE (good samaritan)
     b) DEFECT                                     2) NEGLIGENCE (negligence per se)                 6) NEGLIGENCE (guest statutes).
     c) ABNORMALLY DANGEROUS ACTIVITY              3) NEGLIGENCE (strict liability)                  TWO of the above.
     d) VIOLATION OF A STATUTE                     4) NEGLIGENCE (DSA)                               ALL of the above.
     e) CARELESSNESS                                                                                 NONE of the above.

     Other than ___, ___, and ___, list another type of negligence.
     For which type of negligence might a π be ABSOLVED OF LIABILITY?

     j) danger invites rescue doctrine.   g) res ipsa loquitur.     i) last clear chance doctrine.    h) fireman‟s rule.

     NEGLIGENCE (Product Liability--negligence)            NEGLIGENCE (Product Liability--strict liability)
     PRODUCT LIABILITY (misrepresentation)                 NEGLIGENCE (DSA)


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                                                              QUIZ 5A
                                                              "TORTIOUS" COA's
 Intentional Torts
slander/libel   _____ (1) is oral defamation, while ____ (2) is written defamation.

slander/libel   Most courts hold that defamatory statements in radio and television are (slander/libel) ____ (3).

shopkeeper‟s    ____ ____ (4) allow merchants to detain suspected shoplifters without being liable for false imprisonment.
privilege
                C____ (5) is a more serious form of trespass to personal property.
conversion

dichotomy       SYNONYM: dichotomy (6)




 Unintentional Torts
                In a suit for negligence, the general test for ________ _________ (7) is foreseeability.

                Excluding explosives, fireworks, dangerous animals, NAME an activity to which strict liability applies ____ (8).

                Applying the doctrine of ____ __ _____ (9) has the effect of reversing the burden of proof from plaintiff to defendant.

                The doctrine of ____ ____ ____ (10) is an exception to the doctrine of contributory negligence.

                Under the doctrine of p___ ______ (11) negligence, a defendant who is 60% responsible for causing his or her injuries gets
                nothing.

                DEFINE: per se (12)          pecuniary (13)       nominal (14)




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                                                               QUIZ 5B
                                                               "TORTIOUS" COA's
                                                                 Intentional Torts




l.   A tort is an offense against the government, punishable by fine or imprisonment.

2.   Intent in tort law means that the tortfeasor acted with an evil or malicious motive.

3.   Angry with Sally, Abel knocked the hat off her head without physically touching her body. Abel committed a battery.

4.   A person can commit an assault without committing a battery, but cannot commit a battery without committing an assault.

5.   Using obscene business language will amount to intentional infliction of mental distress, depending on from whom it comes.

6.   Shopkeeper’s privilege is an affirmative defense.

7.   A defamatory statement that is communicated even to only one person other than the plaintiff is "published."

8.   Qualified privilege can be lost if the defendant has acted with either express or implied malice.

9.   The tort of invasion of privacy will exist if, without your permission, someone publishes the fact that you won a Dean's list award in high
     school.

10. A public figure's right to privacy is less protected than that of an ordinary person.

11. The right to privacy of a victim of a crime is less protected than that of an ordinary person.

12. Bill saw Joan scratch his car, causing $50 in damage. Joan had no money. Hoping to force her uncle Henry to pay, Bill accused Henry
    of scratching the car and sued him for $1,500. Bill has committed the tort of outrage.

13. Trespass to real property is a nonconsensual entry upon another's real property while nuisance is an unreasonable interference with the
    use and enjoyment of another's real property.

14. A tree with the branches extending into the air space of a neighbor could constitute trespass to real property.

15. Trespass to real property (land) is sometimes referred to as trespass to chattels.

16. Throwing rocks onto a neighbor's land is NOT trespass, if you do not step onto his land

17. Mistake is usually a defense to trespass to land.

18. Trespass to land is a strict liability offense.

19. An innocent purchaser of stolen property may still be liable for trespass to personal property.


20. REPLEVIN is a remedy for the tort of trespass to real property (land).

21. For a misrepresentation to be fraudulent, it must be communicated by words, written or spoken, not by conduct alone.

22. Home Owner sold her house to Buyer without revealing an appraisal that Owner knew showed the value of the house to be significantly
    less than the purchase price. Owner has committed fraud by failing to inform Buyer of the appraisal.

23. If Bill claims to know the facts about the subject matter he relates to Carol, but he really knows next to nothing about the subject matter,
    he could be liable to Carol for fraud.

24. Computers Unlimited (CU) fired Hal Hacker, a computer programmer, on the mistaken belief that he was selling company secrets to a
    competitor. Hacker applied for a job with Acme Computers, but was not hired because CU's letter of reference reported the erroneous
    information about Hacker. Hal sues CU for libel. CU has a qualified privilege defense that protects it from liability to Hal.

25. The First Amendment requires a public official or public figure seeking damages for defamation to prove actual malice. In this context,
    actual malice means that the defendant either knew the defamatory statements were false or acted with reckless indifference to the truth
    or falsity of the statement.

26. The First Amendment requires proof of actual malice in a public official’s suit for defamation, but it does not require such proof in a
    public official’s suit for intentional infliction of emotional distress or false-light invasion of privacy.

27. The courts usually award both compensatory and punitive damages for the commission of a tort, whether intentional or unintentional.

28. Boston Brew sells a beer called Sam Malone's Special. Sam, a former baseball player for the Red Socks, did not consent to Boston
    Brew's use of his name. Boston Brew is liable to Sam for the tort of invasion of privacy.

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29. When a person makes a false statement of fact knowing the statement is false, that person's mental state is referred to as scienter.

30. Andrew pointed an unloaded gun at Bob and threatened to shoot him. Because the gun was unloaded, Andrew cannot be held liable for
    assault.

31. A single act can be both a crime and a tort, but if both a criminal prosecution and a civil lawsuit are brought for that act, an acquittal on
    the criminal charge automatically results in a dismissal of the civil suit.

32. Using obscene or abusive language may amount to intentional infliction of mental distress, depending on who is using the offending
    language.

33. The intentional confinement of another to a limited area without consent or legal justification is an assault.

34. Under the typical shopkeeper's privilege, a merchant has a right to randomly stop customers leaving his/her store and to detain them for
    a reasonable length of time.

35. Slander is written defamation.

36. False light--the publishing of a highly objectionable statement that conveys a false impression about a person--is a form of invasion of
    privacy.

37. The courts usually consider abusive language and obscene gestures sufficiently extreme and outrageous to constitute the tort of outrage
    when the victim suffers severe emotional harm.

38. In an action for trespass to personal property, the plaintiff recovers the market value of the property as damages.

39. The tort of trespass to chattel involves a more serious degree of harm to the chattel than does the tort of conversion.

40. REPLEVIN involves the defendant's paying the plaintiff the proceeds from selling the chattel, after the defendant has damaged the
chattel.

41. REPLEVIN involves the defendant returning the chattel to the defendant.

42. In an action for fraud, the plaintiff must prove that he or she suffered some harm in reliance on the misrepresentations of the defendant.


43. Alexander intentionally throws a rock through the window of Karen's car. Alex is liable in conversion to Karen for the cost of repairing
    the window.

44. An unreasonable, nontrespass interference with a person's use and enjoyment of real property is the tort called:
    a) Conversion.          c) Trespass to chattels.
    b) Outrage.             d) Nuisance.

45. Which of the following is an assault?
    a) Ugly points an unloaded pistol at Joe and threatens to shoot him, but Joe thinks the pistol is loaded.
    b) Mean tells Guy that if Guy ever talks to Mean's sister again, Mean will break Guy's leg.
    c) Rotten sneaks up behind Innocent and hits Innocent on the back of the head.
    d) Bravado throws a rock at Righteous, who is three miles away.

46. In which of the following cases should the plaintiff sue for trespass to personal property instead of conversion?
    a) Plaintiff's roommate borrows the plaintiff's antique gold necklace and intentionally breaks the clasp.
    b) Plaintiff’s neighbor intentionally knocks down a fence located on the plaintiff's property.
    c) Plaintiff's boyfriend steals the plaintiff's china vase and sells it.
    d) A and B above.
    e) A and C above.

47. Which of the following is NOT an invasion of privacy?
    a) Appropriation of a person's name or likeness.
    b) Intrusion into one's seclusion or private affairs.
    c) Outrage.
    d) Public disclosure of private facts about a person.
    e) False light.

48. Which of the following statements regarding FRAUD is correct?
    a) An intentional misrepresentation need not be of a material fact to be fraudulent.
    b) An innocent misrepresentation of fact can be fraudulent if the fact is a material one.
    c) Reasonable reliance on the misrepresentations of another is an essential element of fraud.
    d) Unreasonable reliance on the misrepresentations of another is sufficient to establish fraud.

49. Under which of the following scenarios would the law of FRAUD impose a duty of disclosure?
    a) A seller of goods knows that the buyer does not need the goods being purchased.
    b) A seller of a house knows of a lack of adequate insulation in the attic.
    c) A buyer of goods knows that the seller's price is well below the market value.
    d) A buyer of land knows that the government plans a major highway near the property.
    e) None of the above involves a duty of disclosure.


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50. Which of the following statements regarding the differences between crimes and torts is INCORRECT?
    a) A crime is an offense against the government; a tort is a wrong against another person.
    b) A criminal prosecution is initiated by the injured party; a tort action is commenced by the government.
    c) A crime is punishable by fine or imprisonment; a tort subjects the tortfeasor to liability for money damages.
    d) The main purpose of the criminal system is to protect society by punishing wrongdoers; the main purpose of the tort system is
        compensation for injured parties.

51. Which of the following is a defense to a suit for regardless of the motivation or knowledge of the speaker?
    a) Truth.                                 c) Conditional privilege.
    b) Absolute privilege.                    d) Constitutional privilege.
                         e) A       and B above.

CASE ANALYSES
52. Allen flies his airplane within two feet of Rhonda's barn. Allen is liable to Rhonda for which of the following?
    a) Conversion.              b) Strict products liability.       c) Abnormally dangerous activity.           d) Trespass.

53. O‟Hara, an investigative journalist for the Washington Bulb, is investigating allegations of corruption by Senator Carter. Two persons
    employed in Carter's Washington office tell her that Carter is accepting bribes from wealthy constituents for the introduction of legislation
    favorable to them. The informants produce several checks from these individuals, made payable to Carter. O'Hara writes a story for the
    Bulb exposing the alleged bribes. The story turns out to be false, and the checks are fakes. Carter sues the paper for libel. The
    newspaper's best defense would be:
    a) Absolute privilege.                c) Qualified immunity.
    b) Conditional privilege.                  d) Constitutional privilege.

54. Rico took a picture of Jill studying in the library. He then used the picture to illustrate an advertisement about his pizza restaurant. The
    advertisement read, "When you need a break, come to Rico’s for great pizza." Jill has a cause of action against Rico for which of the
    following?
    a) Assault.          b) Invasion of privacy.           c) Conversion.                    d) Defamation.

55. Forgetful enters the Stop-n-Pop and picks up a loaf of bread and a candy bar. He puts the bread in one hand and the candy in his
    pocket so that he can use his other hand to get his wallet to pay the clerk. He pays for the bread but forgets to take the candy out and
    pay for it. A watchful security guard confronts Forgetful outside of the store, grabs his arm, and takes him back into the store for
    questioning. Forgetful explains what happened, but the guard refuses to believe his story. Forgetful is arrested for shoplifting and is
    acquitted at trial. He sues the Stop-n-Pop for damages. What is the likely outcome of the suit?
    a) Forgetful will win because the store committed the tort of malicious prosecution.
    b) The Stop-n-Pop will win because of the defense of truth.
    c) Forgetful will win because the store committed false imprisonment.
    d) The Stop-n-Pop will win because of the shopkeeper's privilege.

56. Abdul suffers a broken leg while playing rugby. He sues Ashley, a player from the other team who blocked him and caused his leg
    injury. Who will likely prevail in a lawsuit for battery?
    a) Abdul, because Ashley's contact with him was intentional.
    b) Ashley, because of the self-defense privilege.
    c) Abdul, because Ashley's contact with him was harmful.
    e) Ashley, because of the defense of implied consent.

57. Rita calls all of her friends on the phone and falsely tells them that Tom, her former boyfriend, raped her. Tom sues for DEFAMATION.
    Who will likely prevail?
    a) Rita, because the statements were not in writing.
    b) Tom, because the statements constitute libel per se.
    c) Rita, because the statements were not published.
    d) Tom, because the statements constitute slander per se.

58. To play a joke on Betty, Roland baked her a cake with a dead bird inside it. When Betty cut into the cake, she saw the dead bird inside
    and started to scream. She then refused to eat anything for two days and during the next six months became agitated whenever she
    saw a cake. Betty sues Roland for infliction of mental distress. What should be the result?
    a) Betty should win, because Roland's conduct was extreme and outrageous.
    b) Betty should win, even if she suffered no mental upset, because Roland's conduct should be punished.
    c) Roland should win, because the bird in the cake was only a joke.
    d) Roland should win, because Betty suffered only emotional injury.




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DOES NOT BELONG
For the following multiple-choice questions (51-80), identify which element DOES NOT BELONG (or IS
NOT related) to the group.
59. WHICH WORD/PHRASE DOES NOT BELONG?
a) assault b) battery c) false imprisonment d)                     emotional distress       e)       NONE OF THE ABOVE


60. WHICH WORD/PHRASE DOES NOT BELONG?
a) act    b) intent c) confinement  d) causation                                       e)   NONE OF THE ABOVE

61. WHICH WORD/PHRASE DOES NOT BELONG?
a) trespass b) conversion  c) nuisance                   d)        battery                      e)    NONE OF THE ABOVE

62. WHICH WORD/PHRASE DOES NOT BELONG?
a) intent  b) apprehension c) actual cause                    d)     proximate cause            e)    NONE OF THE ABOVE

63. WHICH WORD/PHRASE DOES NOT BELONG?
a) immunity. b) discipline. c) recapture                      d)     causation                  e)    NONE OF THE ABOVE

64. WHICH WORD/PHRASE DOES NOT BELONG?
a) recapture b) repossession c) necessity                     d)     public interest            e)    NONE OF THE ABOVE

65. WHICH WORD/PHRASE DOES NOT BELONG?
a) replevin  b) detinue    c) sale                            d)     damages                    e)    NONE OF THE ABOVE

66. WHICH WORD/PHRASE DOES NOT BELONG?
a) replevin b) retinue  c) sale                               d)     arrest                     e)    NONE OF THE ABOVE

67. WHICH WORD/PHRASE DOES NOT BELONG?
a) emotional distress b) defamation c) misrepresentation                   d) false imprisonment       e) NONE OF THE ABOVE


68. WHICH WORD/PHRASE DOES NOT BELONG?
a) intermeddling b) dispossession c) misdelivery                                  d) surrender         e) NONE OF THE ABOVE.

69. WHICH WORD/PHRASE DOES NOT BELONG?
a) assault      b) battery       c) imprisonment                                  d) trespass          e) NONE OF THE ABOVE.

70. WHICH WORD/PHRASE DOES NOT BELONG?
a) truth. b) public interest. c) proper justification                 d)     necessity      e)       NONE OF THE ABOVE



                                                    ESSAY QUESTIONS
71. Members of the Exotic Bird Liberation Army (EBLA) break into the Love-a-Bird Pet Store, overpowering a security guard on the
    premises. The guard is tied up, gagged, and locked into a closet. EBLA members "liberate" 26 exotic birds and leave the building. The
    birds are hidden in safe houses and smuggled out of the country in the "underground bird railroad." They are eventually released back
    into the wild somewhere within the Amazon River basin. Explain what torts the EBLA members committed during the raid of the pet
    store.

72. Joe College enters Tom's Tavern and sees Linda at the bar. He puts his arm around her and asks if he can buy her a drink. She
    politely declines, but Joe is persistent. When he leans over to give her a kiss on the cheek, she throws him to the ground using the skills
    she learned in judo class. Joe breaks his back and sues Linda for assault and battery. Linda claims self-defense and counterclaims for
    assault and battery. Who will likely prevail in the lawsuit? Why?

73. Ware Corporation owned property on Torch Lake on which it was going to develop a residential condominium project. The Torch Lake
    Owners Association (TLOA) opposed the project and filed a lawsuit (No. 94-102) to block the development, claiming that the project
    would violate environmental control laws. Ware Corporation filed a lawsuit (No. 94-105) against the association and its members
    individually for $2.5 million, claiming that the association's lawsuit was frivolous and a wrongful use of civil proceedings. Ware then
    offered to dismiss its lawsuit (94-105) if TLOA would dismiss its suit (94-102). TLOA claims that Ware's lawsuit is an abuse of process.
    What will Ware Corporation have to establish to prove a wrongful use of civil proceedings by TLOA? Under the circumstances, could it
    prove that claim? Explain. What will TLOA have to establish to prove an abuse of process claim? Under the circumstances, could it
    prove that claim? Explain.




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74. Norm decided to sell his Tan-n-Wash business in Phoenix, Arizona. Cliff decides that it is time to become an entrepreneur in the
    tanning and laundromat market. He discusses the business with Norm, and Norm assures him that it is a gold mine and an "opportunity
    of a lifetime." Norm states that the laundromat business alone grosses over $10,000 per month. Excited, Cliff immediately cashes in his
    savings bonds and buys the business for $100,000 cash. He discovers, however, that the business has been losing money. Although it
    is true that the laundromat grosses $10,000 per month, the expenses of operating it are over $9,500 per month, and the tanning salon
    loses money every month. Cliff sues Norm for fraud. Norm claims that any statements he made were true, were matters of opinion, or
    were not justifiably relied on by Cliff. What is the likely outcome of the suit? In your answer, discuss the elements of fraud and the
    contentions made by Norm.

75. Explain the differences between intentional torts, negligence, and strict liability.

76. Explain the doctrine of compelled self-publication in defamation law. Explain the policy reasons for and against the adoption of this
    doctrine.




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                                                              QUIZ 5C
                                                                  "TORTIOUS" COA's
                                                                      Negligence
                                                               True-False/Multiple-Choice


1)   In negligence law, a person is generally not under a duty of care unless his or her conduct creates a foreseeable risk of harm to others.

2)   The adult reasonable person standard varies, depending on the age, intelligence, and judgment of the defendant.

3)   Negligence is the intentional infliction of injury upon another without justification or privilege.

4)   Maria, a doctor, sees an injured child as she is driving to her clinic. Because of her professional status, she has a common law duty to
     give emergency aid to the child.

5)   Arthur, age 12, drives a tractor on his father’s farm. In operating the tractor, he is subject to an adult standard of care that disregards
     his actual age, intelligence, and experience.

6)   Under the doctrine res ipsa loquitur, a plaintiff can prove negligence without producing any direct evidence that the defendant breached
     the applicable standard of care.

7)   To protect adjacent land from the possibility of fire, landowners in New Hampshire are required by statute to have a 50-foot fire break
     between a fire pit and any nearby wooded area. Saul burns leaves in a pit without the required break and starts a fire on his land that
     spreads to his neighbor’s property, causing extensive damage. In a suit for negligence, the doctrine of negligence per se is available to
     Saul’s neighbor to help her prove her case.

8)   Art, an appraiser, fails to exercise reasonable care in determining the value of the appraised property. Art is liable to his client for
     negligent misrepresentation, but only if the client justifiably relies on the appraiser’s representation as to the value of the property.

9)   The “but for” test is used by the courts to determine whether the defendant’s conduct was a superseding cause of the plaintiff’s injury.

10) Alice’s new car is not equipped with seat belts as required by law. Alice is killed when the car engine explodes. In a suit against the
    manufacturer for negligence in failing to install seat belts in the car, the defendant will prevail because of a lack of actual causation.

11) When there is an intervening cause of a plaintiff's injury, the defendant will still be liable for negligence if the intervening cause was
    foreseeable.

12) A majority of states have adopted pure comparative negligence.

13) Under a modified comparative negligence system, a plaintiff will recover no damages if the jury finds that his or her fault was greater
    than the defendant’s fault.

14) The last clear chance doctrine applies to the defense of voluntary assumption of the risk, but not to the contributory negligence defense.

15) In determining whether a plaintiff assumed the risk, the courts use a subjective test that considers the plaintiff’s age, experience, and
    knowledge.

16) In a strict products liability case, the plaintiff must prove that the defendant was negligent in the design or manufacture of the product.

17) Contributory fault of the user of a product is generally not a defense in a strict products liability case.

18) Storing gasoline in an underground tank is generally considered to be an abnormally dangerous activity.

19) Negligence per se is a substitute for proving the four elements of a negligence claim.

20) Strict liability is a doctrine that is applied in tort law and criminal law.

21) Ed attended a baseball game and sat along the third base line in foul territory. He was injured when he was hit on the head by a hard
    line drive. He sued the stadium claiming negligence in failing to provide a protective screen for the protection of spectators. The court
    probably will hold that Ed cannot recover damages because he impliedly assumed the risk.

22) Brenda, an avid hockey fan, was injured when a puck flew out of the rink and hit her on the head. In a suit against the club for
        negligence, its best defense is:
    a) Contributory.
    b) Comparative negligence.
    c) Implied assumption of the risk.
    d) Express assumption of the risk.

23) Strict liability applies to all of the following EXCEPT:
    a) A commercial lease of a defective product.
    b) Malpractice by a professional.
    c) An “abnormally dangerous” activity.
    d) Injuries caused by a wild animal.


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24) Which of the following is true of res ipsa loquitur? It:
    a) Allows the use of a defendant's criminal violation to prove the tort of negligence.
    b) Ensures a verdict for the plaintiff by imposing a conclusive presumption that the defendant was negligent.
    c) Permits the jury to infer negligence from the circumstantial evidence surrounding the plaintiff's injury.
    d) Applies even when the plaintiff contributed to his or her injuries.

25) As Larry was walking down the sidewalk in front of Emma’s house, Emma’s trained bear chased and mauled him. The bear had
    escaped from a pen with 20-foot high electrified fences around it. Larry knew that Emma had a pet bear. Is Emma liable to Larry for his
    injuries?
    a) Yes, because she was negligent.
    b) No, because Larry impliedly assumed the risk by walking in front of her house.
    c) Yes, because she is strictly liable for the injuries.
    d) No, because Larry was contributorily negligent.

26)    Which of the following is NOT an element of negligence?
      a) Duty of care.
      b) Breach of duty.
      c) Intent.
      d) Causation, both actual and proximate.
      e) Injury.

27) An unforeseeable cause that occurs after the defendant's negligent act and alters the consequences of that act is called a(n):
    a) Substantial cause.
    b) Superseding cause.
    c) Actual cause.
    d) Concurring cause.

28) Explain the different types of comparative negligence systems that have been adopted by the states. In your opinion, which is the best?
    Why?

1)    Explain the policy reasons for imposing strict liability on manufacturers and sellers of defective products.




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                                                 TEACHING NOTES

...a pecuniary (law NOT equity) compensation or indemnity which may be recovered in the courts by any person who has suffered a loss,
detriment, or injury...through the unlawful act, omission, or negligence of another. Money compensation sought or awarded as a remedy for a
breach of contract or for tortious acts.

actual damages
REAL, substantial, and just damages, or the amount awarded...in compensation for actual and real loss or injury, as opposed to "nominal"
damages, or "exemplary"("punitive") damages. Synonymous with "compensatory" damages and with "general" damages.

benefit-of-the-bargain damages
The difference between the value received and the value of the fraudulent party's performance as represented.

compensatory damages
Damages such as will compensate an injured party for the injury sustained, and nothing more; such as will make good or replace the loss
caused by the wrong or injury...The rationale...is to restore the injured party to the position he was in prior to the injury. Compensatory (or
actual) damages consist of both general damages and special damages. General damages are the natural, necessary and usual result of
the wrongful act or occurrence in question. Special damages are those "which are the natural, but not he necessary and inevitable result of
the wrongful act."

consequential (special) damages
Those damages that are caused by an injury but which are NOT a necessary result of the injury. The distinction between consequential
(special) damages and general damages is not absolute but, rather, is relative and depends upon the circumstances of each case. For
instance, in an action for failure to provide widgets as promised in a contract, the general damages would be the price paid under the contract
(i.e., price paid but widgets not received). Consequential (special) damages would include, for example, damages that might be peculiar to
the circumstances, such as any claim for injury to business reputation. However, in an action for the tort of interference with business
relations, injury to business reputation would be general damages.

direct damages
Direct damages are such as follow immediately upon the act done. Damages which arise naturally or ordinarily from breach of contract; they
are damages which, in ordinary course of human experience, can be expected to result from breach. Roanoke Hospital Ass'n v. Doyle &
Russell, Inc., 215 Va. 796, 214 S>E2d 155, 160.

exemplary (punitive) damages
Exemplary damages are damages on an increased scale, awarded to the plaintiff over and above what will barely compensate him for his
property loss, where the wrong done to hum was aggravated by circumstances of violence, oppression, malice, fraud, or wanton and wicked
conduct on the part of the defendant, and are intended to solace the plaintiff for mental anguish, laceration of his feelings, shame,
degradation, or other aggravations of the original wrong, or else to punish the defendant for his evil behavior or to make an example of him,
for which reason they are also called "punitive" or "punitory" damages or "vindictive' Damages. Unlike compensatory or actual damages,
punitive or exemplary damages are based upon an entirely different public policy consideration--that of punishing the defendant or of setting
an example for similar wrongdoers, as above noted. In cases in which it is proved that a defendant has acted willfully, maliciously. or
fraudulently, a plaintiff may be awarded exemplary damages in addition to compensatory or actual damages. Damages other than
compensatory damages which may be awarded against person to punish him for outrageous conduct.

expectancy damages
As awarded in actions for nonperformance of contract, such damages are calculable by subtracting the injured party's actual dollar position
as a result of the breach from that party's projected dollar position had performance occurred. The goal is to ascertain the dollar amount
necessary to ensure that the aggrieved party's potion after the award will be the same--to the extent money can achieve the density--as of the
other party had performed.

general damages
Such as the law itself implies or presumes to have accrued from the wrong complained of, for the reason that they are its immediate. direct,
and proximate result. or such as necessarily result from directly and proximately, and without reference to the special character, condition, or
circumstances of the plaintiff.
incidental damages
Under U.C.C. 2-710. such damages include any commercially reasonable charges, expenses or commissions incurred in stopping delivery,
in the transportation, care and custody of goods after the buyer's breach, in connection with the return or resale of the goods or otherwise
resulting from the breach. also, such damages, resulting from a seller's breach of contract, include expenses reasonably incurred inspection,
receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses or commissions in
connection with effecting cover and any other reasonable expense incident to the delay or other breach.

liquidated damages and penalties
The term is applicable when the amount of the damages has been ascertained by the judgment in the action, or when a specific sum of
money has been expressly stipulated by the parties to a bond or other contract as the amount of damages to be recovered by either party for
a breach of the agreement by the other. The purpose of a penalty is to secure performance, while the purpose of stipulating damages is to
fix the amount to be paid in lieu of performance. The essence of a penalty is a stipulation as in terrorem while the essence of liquidated
damages is a genuine covenanted pre-estimate of such damages. Liquidated damages is the sum which party to contract agrees to pay of
he breaks some promise and, which having been arrived at by good faith effort to estimate actual damage that will probably ensue from
breach, is recoverable as agreed damages if breach occurs. Such are those damages which are reasonably ascertainable at time of breach.
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measurable by fixed or established external standard, or by standard apparent from documents upon which plaintiffs based their claim.

nominal damages
Nominal damages are a trifling sum awarded to a plaintiff in an action, where is no substantial loss or injury to be compensated, but still the
law recognizes a technical invasion of his rights or a breach of the defendant's duty, or in cases here, although there are been a real injury,
the plaintiff's evidence entirely fails to show its amount.

pecuniary damages
Such as can be estimated in and compensated by money; not merely the loss of money or salable property or rights, but all such loss,
deprivation, or injury as can be made the subject of calculation and of recompense in money. Those damages (either general or special)
which can be accurately calculated in monetary terms.

presumptive damages
A term occasionally used as the equivalent of "exemplary" or "punitive' damages.

prospective damages
Damages which are expected to follow from the act or state of facts made the basis of a plaintiff's suit; damages which have not yet accrued,
at the time of the trial, but which, in the nature from the acts or facts complained of.

proximate damages
Proximate damages are the immediate and direct damages and natural results of the act complained of, and such as are usual and might
have been expected. Remote damages are those attributable immediately to an intervening cause, though it forms a link in an unbroken
chain of causation, so that the remote damage would not have occurred of its elements had not been set in motion by the original act or
event.

rescissory damages (rescission)
Such damages contemplate a return of the injured party to the position he occupied before he was induced by wrongful conduct to enter into
the transaction. When return of the specific property, right, etc. is not possible (e.g. in a stock fraud transaction, the stock is no longer
available), the rescissory damages would be the monetary equivalent (e.g. value of stock).

special damages
Those which are the actual. but not the necessary, result of the injury complained of, and which in fact follow it as a natural and proximate
consequence in the particular case, that is, by reason of special circumstances or conditions. Such are damages which do not arise from
wrongful act itself, but depend on circumstances peculiar to the infliction of each respective injury. In contract law, damages not
contemplated by the parties at the time of the making of the contract. To be recoverable, they must flow directly and immediately from the
breach of contract, and must be reasonably foreseeable. Special damages must be specially pleaded and proved.

speculative damages
Prospective or anticipated damages from the same acts or facts constituting the present cause of action, but which depend upon future
developments which are contingent, conjectural, or improbable.

statutory damages
Damages resulting from statutorily created causes of actions, as opposed to actions at common law; e.g. wrongful death and survival actions;
actions under tort claims acts; Copyright Act, a copyright owner has the right to collect statutory damages in lieu of actual damages for
copyright infringement.

treble damages
Damages given by statute in certain types of cases, consisting of the single damages found by the jury, actually tripled in amount.

unliquidated damages
Such as are not yet reduced to a certainty in respect of amount, nothing more being established than the plaintiff's right to recover; or such
as cannot be fixed by a mere mathematical calculation from ascertained data in the case. Compare Liquidated damages and penalties.
above.



                                     DAMAGES GROUPINGS (pecuniary, law remedies)
Restorative                 Aggravated         Calculated          By-Product                                      Remote/Uncertain
                            (circumstances)
actual                      exemplary                              expectancy                                      prospective
direct                      punitive           special             benefit-of-the-bargain                          speculative
general                     presumptive        statutory                                                           unliquidated
proximate                   treble             liquidated          NOMINAL
rescissory                                     consequential
compensatory                                   incidental




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                                                           QUIZ 5D
                                                           "TORTIOUS" COA's
                                                               DAMAGES
                                                        True-False/Multiple-Choice


 Definitions
 1) This type of damages is determined by the                             2) This type of damages are provided for in
 judge as triple the amount as found by the jury:                         the Copyright Act:
 a) actual.            c) exemplary.                                      a) actual.             c) exemplary.
 b) treble.            d) consequential.                                  b) compensatory.       d) statutory.
           e) NONE OF THE ABOVE.                                                     e) NONE OF THE ABOVE.

 Groupings
For the following damages, mark on your Scantrons: a = pecuniary damages and b = non-pecuniary
damages.
3) special           6) nominal                          9) BLANK                    12) BLANK
4) liquidated        7) benefit-of-the-bargain           10) BLANK                   13) BLANK
5) treble            8) consequential                    11) BLANK                   14) BLANK

12) Which type(s) of damages DOES NOT involve                            14) Which type(s) of damages DOES involve restoring
restoring the plaintiff to his apriori position?                         the plaintiff to his apriori position?
a) rescissory               c) general                                   a) liquidated                  c) special
b) general                  d) presumptive                               b) proximate                   d) rescissory
                            e) NONE OF THE ABOVE                                                        e) NONE OF THE ABOVE
13) Which type(s) of damages involve(s) calculating                      15) An example of remote/uncertain damages is:
actual vs. anticipated/predicted damages?
a) liquidated               c) benefit-of-the-bargain                    a) prospective             c) special
b) statutory                d) TWO OF THE ABOVE                          b) rescissory              d) ALL OF THE ABOVE
                            e) NONE OF THE ABOVE                                                    e) NONE OF THE ABOVE


 Same Name
16) This type of damages is occasionally called punitive                 18) This type of damages is occasionally called
damages.                                                                 presumptive damages.
a) actual                c) exemplary                                    a) actual                  c) exemplary
b) statutory             d) consequential                                b) compensatory            d) consequential
                         e) NONE OF THE ABOVE                                                       e) NONE OF THE ABOVE
17) This type of damages is commonly referred to as                      19) BLANK
exemplary damages.
a) punitive              c) exemplary                                    a)                         c)
b) compensatory          TWO OF THE ABOVE                                b)                         d)
                         e) NONE OF THE ABOVE                                                       e)


 Synonomous
20) The type of damages most analogous to                                21) The closest analogy to special damages is:
compensatory damages is:
a) actual               c) statutory                                     a) actual                  c) exemplary
b) unliquidated         d) consequential                                 b) compensatory            d) consequential
                        e) NONE OF THE ABOVE                                                        e) NONE OF THE ABOVE


 Antonyms
22) The opposite of proximate damages is:                                23) The opposite of remote damages is:
a) prospective           c) exemplary                                    a) special                 c) exemplary
b) compensatory          d) consequential                                b) compensatory            d) direct
                         e) NONE OF THE ABOVE                                                       e) NONE OF THE ABOVE

Terminology               pecuniary    exemplary        statutory             prospective     proximate      nominal




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                                                               QUIZ 6A
                                                               "TORTIOUS" COA's
                                                                 Products Liability
                                                               Written/Fill-In Section

The _______ ________ (1) relates to designing cars to protect occupants from secondary collisions.

As a result of a missing screw, John is injured while riding his motorcycle. John will have the most difficulty proving a case for liability using a
theory of ______ (2).

______ __ ______ (3) begins to run from the date the product was sold as opposed to the date of the plaintiff's injury.

The duty imposed by the courts to design automobiles to protect occupants from a "second collision" occurring inside the automobile is
referred to as the ______ (4) doctrine.

The ______ (5) doctrine relates to designing cars to protect occupants from secondary collisions.

The court in the MacPherson case eliminated ____ (6) as a requirement for recovering damages from a manufacturer of a defective product.

After the MacPherson case, privity as a requirement for recovering damages, all parties in the ____ __ _____ (7) are liable.

Products that may be manufactured by different manufacturers, but which are completely substitutable for each other are referred to as
________ (8).

A defendant is _____ _____ (9) if he is or would be financially unable to pay a damages award to a plaintiff.

The ________ vs. ________ (10) (California) case was the first to impose on a manufacturer ______ ______ (11) in tort.

The ________ vs. ________ (12) (New York) case was the first to eliminate ______ (13) as a requirement to recovering damages against a
manufacturer.

In the case involving When the plaintiffs could not identify the specific manufacturer responsible for their injuries, the court adopted the novel
theory of ____ ____ ____ (14).

(15) Other than explosives (dynamite, fireworks, etc.), dangerous animals, and product defects, NME an activity subject to strict liability.




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                                                                  QUIZ 6B
                                                                 "TORTIOUS" COA's
                                                                   Products Liability
                                                              True-False/Multiple-Choice


1)    In the Moseley case, General Motors attempted to use an affirmative defense.

2)    In the breast implant case, Dow Corning used bankruptcy as leverage in negotiating a settlement with the complainants.

3)    Many courts have held that a reasonable manufacturer's efforts to notify users of a defect is effective even against users who did not
      see the notice.

4)    The Greenman vs. Yuba case first established the doctrine of strict liability.

5)    A person who sells a defective product to a neighbor, nevertheless is strictly liable if the product causes injury.

6)    Users of a defective product may recover damages for injuries caused by a defective product, but bystanders may NOT.

7)    In order to avoid the problem of strict liability, a manufacturer may include a notice of disclaimer on his product.

8)    After the MacPherson case, privity as a requirement for recovering damages, all parties in the chain of distribution are liable.

9)    To recover for strict liability, the injured party must first show that the product that caused his injury was defective.

10) Unlike statutes of limitation, the period covered by statutes of repose are the same in every state.

11) Statutes of limitation begin to run when the plaintiff is injured.

12) Statutes of repose begin to run when the plaintiff is injured.

13) Strict liability is a doctrine that is applied in tort law and criminal law.

14) Strict liability applies to product sales, but not to product leasing.

15) Strict liability applies to product sales and leasing, but not to services.

16) In order to avoid the risk of strict liability, a manufacturer may include a notice of disclaimer on his product.

17) A person who sells a defective product to a neighbor nevertheless is strictly liable if the product he sold causes injury.

18) For legal liability purposes, users of a product include the purchaser and family members, but NOT guests.

19) Since many manufacturers, sellers, and lessors intentionally misrepresent the quality of their products, fraud/misrepresentation is
    commonly used as a basis for product liability actions.

20) In the motorcycle accident case, if X is successful in recovering in strict liability against the retailer, the retailer may then attempt to
    recover from the dealer.

21) Users of a defective product may recover damages for injury caused by defective products, but in some states bystanders may NOT.

22)   In a strict products liability case, the plaintiff must prove that the defendant was negligent in the design or manufacture of the product.

23) Under strict liability, all jurisdictions allow recovery for personal injuries, but only a very few allow recovery for property damage.

24) Economic loss for strict liability is recoverable in most jurisdictions.

25) Punitive damages may be allowed only if the plaintiff (injured party) can prove the defendant either intentionally injured him OR acted
    with reckless disregard for his safety.

DEFENSES
26) To recover for strict liability, the injured party must first show that the product causing his injury was defective.

27) Both comparative negligence and contributory negligence are bars to recovery in strict liability.

28) Comparative negligence is the same as comparative fault.

29) Statutes of limitations and statutes of repose are different ways of saying the same thing.

30) Statutes of repose apply to the product sale date and statutes of limitations apply to the date of injury.

BOXES
31) Product liability law in Japan is much more liberal than in the U.S.


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32) Market-share liability is also referred to as:
    a) enterprise liability.                    c) horizontal liability.    e) ALL of the above.
    b) industry-wide liability.            d) a and c.

33) In a medical operation requiring a blood transfusion strict liability would NOT apply to a defective blood supply, because:
    a) defective blood is a known danger of medical operations.            c) blood is NOT a product.
    b) X assumed the risk of defective blood.                              d) the blood transfusion is NOT the dominant element.
                                   e) NONE of the above, because strict liability would apply.

34) Under which circumstances may a court use a cost-benefit (risk-utility) approach in evaluating a product defect:
    a) defect in manufacture.    c) defect in design.
    b) defect in packaging.      d) failure to warn.
                         e) NONE of the above, because cost-benefit analysis is never used in strict liability cases.

35) Which of the following is NOT a reason that Japanese product liability claims are rare?
    a) there is no doctrine of strict liability in Japan.      d) awards are small.
    b) Japanese courts do not allow discovery.            e) punitive damages are NOT available.
    c) plaintiffs must pay a percentage of any damages that they request.
                                   f) Japanese consumers are too docile to seek such damages.

36) Which of the following is NOT an affirmative defense in a strict liability case:
    a) assumption of the risk.           c) supervening event.
    b) the statute of limitations.       d) comparative negligence.
                           e) NONE of the above.

37) John is injured in an automobile accident in which a defect in the automobile is 75% responsible for his injuries; John is responsible for
    25% of his injuries. If John suffers $ 1 million in recoverable damages, how much might John expect to recover:
    a) it depends.        d) $500,000.
    b) $250,000.          e) $750,000.
                    c) $1,000,000.

38) Lack of crashworthiness would be a:
    a) design defect                    c) manufacturing defect.                       e) defect in assembly.
    b) inadequate safety certification. d) defect in quality control.

39) Which of the following is NOT a manufacturing defect?
    a) defect in assembly         c) defect in quality of product.          e) ALL of the above are manufacturing defects.
    b) defect in testing.         d) defect in design.

40) A distributor removes a safety guard that the manufacturer had installed on a lawn mower. After he purchased the mower from a
    retailer, John is injured as a result of the missing safety guard. The following defendant(s) may use the affirmative defense of
    supervening event:
    a) the manufacturer.             c) the retailer.
    b) the distributor.              d) a and c.
                                     e) NONE of the above.

41) The doctrine of strict liability is part of the:
    a) common law.               c) Restatement (Second) of Torts.
    b) U.C.C.                    d) state statutes.
                   e) ALL of the above.

42) Damages recoverable in a strict liability action include:
    a) punitive damages.          c) economic loss.
    b) property damages.          d) personal injury.
                   e) ALL of the above are recoverable.

THEORIES
43) Unbeknownst to X, a screw is missing from his motorcycle. As a consequence, X is later injured while riding his motorcycle. The theory
    under which X will have the MOST difficulty recovering damages is:
    a) strict liability.               c) negligence.
    b) misrepresentation.         d) b OR c, but NOT a

44) In the above case involving a motorcycle accident, assume that it is clear that the dealer's mechanic was responsible for the missing
    screw that caused the accident. X may successfully sue the:
    a) manufacturer.          c) retailer.
    b) dealer.                d) ALL of the above.
                   e) it depends on the tort theory that X will use.




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45) In a medical operation requiring a blood transfusion, strict liability would NOT apply to a defective blood supply, because:
    a) defective blood is a known danger of medical operations.
    b) X assumed the risk of defective blood.
    c) blood is NOT a product.
    d) the blood is NOT the dominant element.
    e) NONE of the above, because strict liability WOULD apply to the operation.

DEFECTS
46) Under what circumstances may a court use a cost-benefit (risk-utility) approach in applying strict liability to a product defect?
    a) a defect in manufacture.        c) a defect in design.
    b) a defect in packaging.          d) a failure to warn.
                    e) NONE of the above, because cost-benefit analysis is NEVER used in strict liability.

47) Which one does NOT belong?
    a) cost-benefit       c) test
    b) assembly           d) quality control

DAMAGES
48) Market share liability is also referred to as:
    a) enterprise liability.               c) horizontal liability.
    b) industry-wide liability.       d) a and c
                     e) ALL of the above.

49) Which of the following would be considered activity subject to strict liability?
    a) common carriers.                     c) employer responsibility for employees' negligence.
    b) workers compensation statutes.       d) automobile repossession
                   e) ALL of the above.

50) Explain why bystanders are or are NOT permitted to sue in strict liability for injuries caused by defective products.

51) Explain the concept of market share liability.

52) Distinguish statutes of limitation from statutes of repose.




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                                                              QUIZ 7A
                                                              "TORTIOUS" COA's
                                                              Intellectual Property



The _____(1) Act prohibits false and misleading advertising.

The _______ (2) Act is the federal law that regulates trademarks.

The major treaty that provides international protection to patents is the ______ ______(3).

_______ ________ (4) involves taking apart and examining a rival's product.

If a trademark has become "descriptive " rather than ______ (5), it losses its protection under federal law.

State trademark statutes are often referred to as _______ (6) Statutes.

To be protectible, a mark must be ____ (7) or have acquired a ____ ____ (8).

The registration of a trademark is __________ (9) notice that the mark is the registrant's personal property.

c______ n______ (10) is implied or imputed by law, usually on the basis that the information is a part of a public record or file and
is regarded as a substitute for the actual n______ (11).

The registration of a trademark serves as _____ (12) notice of its being legally protected.

The major copyright treaty is the _____ _____ (13)

The acronym GATT stands for _____ _____ _____ _____ (14)

The acronym WTO stands for ______ ______ _______ (15)

The music group 2 Live Crew recorded a ______ (16) of the Roy Orbison song Pretty Woman.

17) Which American company is concerned that it will lose its trademark protection?

18) Name one brand name that has become a descriptive, common name and therefore has lost its trademark protection.

EXAMPLES
19) Give an example of a successful trade secret.

20) Give an example of a trademark that has become a descriptive, common term and therefore has lost its protection.

21) Give an example of a trademark that has a secondary meaning.

22) Give an example of a name/word that CANNOT be trademarked.

23) Give an example of a collective mark.

24) Give an example of a service mark.

25) Give an example of a certification mark.

DESCRIBE
26) Who won the Kinko's copyright case.

27) Briefly describe the concept of artists' moral rights.




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                                                                QUIZ 7B
                                                     "TORTIOUS" COA's
                                                               Intellectual Property
                                                               (Cheeseman Ch. 7)
                                                            True-False/Multiple-Choice

ACRONYMS
WIPO            GATT            WTO              TRIPs

COMMON LAW
1)   There are no business torts at common law.

2)   It is unlawful to discover someone's trade secret through reverse engineering.

3)   Trade secrets are NOT patentable.

4)   An inventor must patent his invention if he wants to protect it from being copied or used.

5)   The Uniform Trade Secrets Act has been adopted by many states.

6)   A genetically engineered bacterium capable, for instance, of breaking up oil spills, is NOT patentable subject matter.

7)   Patents are valid for:
     a)10 years.                c) 20 years.                e) NONE of the above.
     b) 17 years.               d) 28 years.

8)   Copyrights are valid for:
     a)10 years.               c) 20 years.                 e) NONE of the above.
     b) 17 years.              d) 28 years.

9)   Trademarks are valid for:
     a)10 years.               c) 20 years.                 e) NONE of the above.
     b) 17 years.              d) 28 years.

10) Which of the following are NOT renewable?
    a) patents.               c) trademarks.
    b) copyrights.            d) NONE of the above.

PATENTS
11) If someone objects to the validity/patentability of a patent application, he must wait until the patent is issued in order to file a lawsuit.

12) Applications for patents, copyrights, and trademarks are filed with the United States Patent and Trademark Office (USPTO).

13) In the windshield wiper case, the plaintiff inventor eventually won his case.

14) A genetically engineered bacterium is NOT patentable subject matter.

15) According to GATT/WTO, patents are now valid for 25 years instead of only 17.

16) According to GATT/WTO, the patent term begins when the patent is issued, NOT when the patent application is filed.

17) In determining which of two or more inventors is entitled to a patent, the U.S. follows the first-to-file rule rather than the first-to-invent
    rule.

18) Altogether, Honeywell was awarded $124 million in its infringement suits against camera makers.

19) Computer software semiconductor chip masks have always been protectible under existing intellectual property law, so no new laws
    have been needed.

20) Inventor X, who is a citizen of Maryland, believes that Y, who is a citizen of Virginia is infringing X's patent. X may file an infringement
    lawsuit in:
    a) Maryland state court.
    b) Virginia state court.
    c) Either the Maryland or Virginia state courts.
    d) the Fourth Circuit Court of Appeals.
    e) NONE of the above.

21) What part of the U.S. Constitution provides for federal control over patent protection?
    a) Article I.       c) Article III.      e) NONE of the above.
    b) Article II.      d) the first Amendment.



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22) X invented a machine in January '99, filed a patent application in January '00, and a patent was issued in January '01. X's patent
    expires in:
    a) 2017.      c) 2021.             e) NONE of the above.
    b) 2018.      d) 2022.

23) X invented a machine on 1-1-79, filed a patent application on 1-1-80, and a patent was issued on 1-1-81. X's patent expires on:
    a) 1986.      c) 2000.       e) NONE of the above.
    b) 1987.      d) 2001.


24) On January 12th, X conceived of a way to _______ and files a patent application on January 22nd. On January 14th, Y conceived the
    same invention, and filed a patent application on January 20th. Who is awarded the patent?
    a) X if this is in the U.S.    c) X if this is in the U.S. or in Europe. e) a and b.
    b) Y if this is in Europe.     d) Y if this is in the U.S. or in Europe.

COPYRIGHTS
25) Copyrights registered by businesses may be protected longer after a work is written than the same work registered by the author.

26) U.S. copyright protection is governed by the U.S. Constitution.

27) The Computer Software Copyright Act includes computer programs as one of the tangible items protected by copyright law.

28) The Judicial Improvement Act of 1990 authorizes the Register of Copyright to issue a certificate of recordation for computer programs.

29) The notion of "moral rights" in their creation is traditional in the U.S., but is only recently recognized in Europe.

30) In the Kinko's copyright case, Kinko's was sued by textbook authors for copyright infringement.

31) In the Roy Orbison copyright case, the court denied 2 Live Crew use of the song Pretty Woman.

32) The Visual Artists Rights Act gives artists certain "moral rights" in their creative work.

33) The fair use doctrine protected Kinko's from liability.

34) The court in the Roy Orbison copyright case remanded the case for a factual determination of whether fair use was violated.

35) The court in the Qualitex case held that color cannot enjoy trademark protection, because it may have a secondary meaning.

36) Prior to the 1976 Act, copyrights were valid for renewable periods of 17 years.

37) What part of the U.S. Constitution provides for federal control over copyright protection?
    a) Article I.       c) Article III.                             e) NONE of the above.
    b) Article II.      d) the first Amendment.

38) Maggie Malone finished her great American novel Gone with the Zephyr in 1970, has it published in 1990, and dies in the year 2000.
    Maggie's copyright will expire in:
    a) 2040.       c) 2065.         e) NONE of above.
    b) 2050.       d) 2070.

39) Maggie Malone finished her great American novel Gone with the Zephyr in 1970. In 1990, Maggie sells the rights to the novel to Chaos
    House publishing company which publishes the novel that year. Chaos House copyrights the novel in 1990, and Maggie dies in the year
    2000. The copyright will expire in:
    a) 2040.      c) 2065.              e) NONE of above.
    b) 2050.      d) 2070.

40) Maggie Malone finished her great American novel Gone with the Zephyr in 1970. In 1990, Maggie published the novel without notice of
    copyright.
    a) X could lose copyright protection for his novel missing the copyright notice.
    b) no copyright notice is needed to maintain protection.
    c) an infringer could use innocent infringing as an affirmative defense.

TRADEMARKS
41) A plaintiff may use the Lanham Act to protect against trade libel by individuals.

42) Albert Einstein was NOT able to patent his Theory of Relativity (E= mc2)

43) A trademark can be registered only if it is in actual commercial use. Mere intent to use the mark at a later time is NOT enough to
    register the mark.

44) Before the new law, a trademark was renewable every of 20 years.

45) Although the name "Toys R Us" is trademarked, the owner may not prevent someone else from protecting "Kids R Us".

46) In addition to their own trademark statutes, states recognize common law trademarks.

47) To be protectible, a mark must have a secondary meaning.
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     48) The Lanham Act amended the Trademark Law Revision Act of 1988.

     49) States may NOT enact trademark laws that interfere with federal trademark protection.

     50) A trademark is the personal property of the registrant.

     51) If one of the notations "TM" or "SM" does NOT appear on a product or service, respectively, then the owner may lose trademark
         protection .

     52) A defendant can propose cancellation of a previously registered mark under certain conditions

     53) What part of the U.S. Constitution provides for federal control over trademark protection?
         a) Article I.  b) Article II.  c) Article III.      d) the first Amendment.                    e) NONE of the above.

     54) In January 1980, X chose the name wysiwyg for a computer graphics software he planned to market and trademarked the name.
         When will X's trademark expire?
         a) 1990.        b) 1997.      c) 2000.    d) 2030.            e) NONE of the above.

     55) In January 1990, X chose the name Wyndoes for a microcomputer operating system. When will X's trademark expire
         a) 1990.      b) 1997.        c) 2000.   d) 2030.            e) NONE of the above.

     OTHER
     56) The TRIPs agreement supersedes the Berne and Paris conventions.

     57) The Paris Convention relates to copyrights and patents.

     58) The Berne Convention relates to trademarks.

     59) The GATT created the WTO.

     60) The Uruguay Round of the GATT superseded the Paris Convention.

     61) The Uruguay Round of the GATT superseded the Berne Convention.

     62) The TRIPS agreement requires each signatory company country to adhere to the Berne and Paris Conventions.

     64) Statutory protection of intellectual property refers to:
         a) palming off.            c) misappropriation of the right to publicity.   e) NONE of the above.
         b) disparagement.          d) ALL of the above.

     65) Federal common law provides for protection of which of the following intellectual property?
         a) patents.                                 c) disparagement.                 e) NONE of the above.
         b) palming off.                        d) ALL of the above.

     66) In what case did the U.S. Supreme Court create a "good faith" exception to the exclusionary rule?
         a) Marshall vs. Barlow.                d) Houston vs. State of Indiana.
         b) Bellis vs. United States.           e) United States vs. Leon.
         c) Baldwin vs. Alabama.

     67) In which of the following are there NO state laws?
         a) patents.                                    c) trademarks.
         b) copyrights.

     DOES NOT BELONG – Choose the item that does not belong in the group.
68    a) product disparagement.      69     a) appropriation        70     a) parody.      71   a) generic         72    a) useful        73   a) tangible
      b) trade libel.                       b)                             b) satire.           b) fair use              b) distinctive        b) collective
                                            misappropriation.
      c) slander of title.                  c) palming off.                c) quotation.        c)                       c) novel              c) service
                                                                                                infringement
      d) misappropriation.                  d) infringement.               d) fair use.         d) public use            d) unobvious          d) certification

     74. NAME the affirmative defenses for patent infringement.

     75. NAME the affirmative defenses for copyright infringement.

                                          76. NAME the affirmative defenses for trademark infringement.




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                         TEACHING NOTES FOR CRIMES
                                                  "CRIMINAL” COA's



                                              PFC for Crimes
The PFC for all crimes consists of two categories of elements:
1) the mens rea, that is the requisite state of mind or criminal intent of the defendant; and
2) the actus reus, that is, the performance of the prohibited act.

Two Elements. The actus reus requirement assures that thoughts alone are not subject to criminal sanctions,
but that some action must be taken before society is harmed. Mens rea can be understood to refer to that state
of mind that is knowing (specific or general intent) regarding the specific elements of the act (crime) constituting
the actus reus. Some statutes may require a showing of specific intent, i.e., involving an act committed
purposefully, intentionally, or with knowledge. Other statutes require only general intent to be proven,
constituting recklessness or some lesser degree of mental culpability.

Examples. For murder, the guilty act (the actus reus) comprises killing someone and the required mental state
(the mens rea) is the intent to kill someone. For theft, the actus reus involves taking another person‟s property
and the requisite mental state (mens rea) involves both the knowledge that the property belongs to someone
else and the intent to deprive the owner of the property.

Denial Defense. Without the two major elements of the PFC for any crime (the actus reus and the mens rea),
there is no crime. If a defendant only thinks about committing a crime, the actus reus is absent and he cannot
be guilty of the crime. If the defendant is believed to be unable to form or has not formed the requisite intent
(mens rea) for whatever reason, including insanity, he cannot be guilty of the crime. Equally so in the case of an
accident. In the matter of defenses then, insanity (or accident) is a denial defense, not an affirmative defense,
since it denies an element of the PFC.




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                                                              QUIZ 8A
                                                                      Crimes
                                                                Fill-In the Blank



_______ (1) involves unauthorized entering of a building, whereas _______ (2) involves burning a building.

_______ (3) involves obtaining personal property by force, whereas _______ (4) involves obtaining personal property through threats or fear.

_______ (5) involves obtaining personal property by force or threats, whereas _______ (6) involves obtaining personal property through
entrustment, and _______ (7) involves obtaining personal property by deception or trickery.

_______ (8) involves offering a kickback.

Most states have adopted comprehensive _____ (9) codes as the primary source of their criminal law.

A _______ (10), which includes crimes, are ____ __ ___ (11), that is inherently evil and is a more serious category of crime than is a
__________ (12), which are crimes that are ______ _______ (13).

The actual performance of a criminal act is referred to as the ____ ____ (14), while the state of mind required to be found guilty is referred to
as _____ _____ (15).

A defendant is ____ ____ (16) if he is financially unable to pay , even if he loses the case.

After a _____ (17) jury issues a(n) _______ (18), the accused is _______ (19) before a court where he enters a ____ (20) of guilty, not guilty,
or ___ ___ ______ (21).

The acronym RICO stands for ________ _______ _________ _______ (22).

The acronym FCPA stands for ________ _______ _________ _______ (23).

_____ (24) crimes are incomplete crimes such as conspiracy that can be committed even by nonparticipants.

A person may be guilty of ______ __ ______ (25) a crime by rendering support, assistance, or encouragement to committing a crime.

Under the ________ (26) rule, evidence obtained from an unreasonable search and seizure is referred to by the courts as "_____ __ ___
_____ ____" (27).

In 1984, the U.S. Supreme Court created a(n) ______ ______ ______ (28) to the _________ (29) rule

The Fifth Amendment of the U.S. Constitution protects _____-______ ______ (30), which prevents disclosure of defendants' confidential
conversations.




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                                                                 QUIZ 8B
                                                                      Crimes
                                                             True-False/Multiple-Choice



1)   Criminal law is primarily state law.

2)   There is no federal law criminal law. All criminal law is state law.

3)   The victim of a crime has the option of bringing charges against a defendant.

4)   The victim 's lawyer in a criminal case is called the "plaintiff's attorney".

5)   The defendant's lawyer is referred to as the prosecutor.

6)   In a criminal case, the victim is the plaintiff.

7)   Every crime requires mens rea.

8)   Every crime requires an actus reus.

9)   Crimes mala in se are considered to be felonies.

10) Crimes mala prohibitum are considered to be misdemeanors.

11) Sentences for misdemeanors usually are one year or less.

12) Actus reus usually requires specific intent whereas mens rea requires general intent.

13) General intent may apply to make reckless behavior subject to criminal penalties.

14) It is possible for a defendant to be sued both civilly and prosecuted criminally.

15) At common law, a corporation could NOT could be found criminally liable, because it lacks mens rea.

16) Corporate managers and officers can be held criminally liable for acts of their subordinates.

17) The U.S. Supreme Court held that the "Son of Sam" statues are unconstitutional.

18) Federal currency reporting laws are aimed at financial institutions and certain types of retailers.

19) Money laundering is both a state and a federal crime.

20) A grand jury consists of 6 to 24 citizens who decide guilt or innocence.

21) A petit jury issues a verdict vs. an indictment.

22) A grand jury issues an indictment vs. a verdict.

23) The case United States vs. Leon, the Supreme Court rejected a good faith exception to the exclusionary rule.

24) In certain cases, the government may conduct a search of business premises, even if there is no warrant.

25) The prohibition against self-incrimination extends also to corporations.

26) The Speedy Trial Act requires that states bring a criminal defendant to trial written 70 days after indictment.




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                                  CONSTITUTIONAL SAFEGUARDS
27) Before the Fourteenth Amendment, the Bill of Rights did not apply to state criminal laws.

28) Under certain conditions, the government may conduct searches without a warrant.

29) Evidence obtained from an unreasonable search and seizure is not admissible.

30) The evidence obtained from an unreasonable search may nevertheless be admissible as "fruit of a tainted tree".

31) The Fifth Amendment protection against self-incrimination extends to nontestimonial evidence such as fingerprints, and blood tests.

32) Forgery involves fraudulently making or altering a written document.

33) Private papers are not protected by the Fifth Amendment, because corporations are artificial persons, not natural persons.

34) Witnesses or defendants may continue to invoke their Fifth Amendment right against self-incrimination, even if the prosecutor offers him
    immunity from prosecution.

35) Although an accountant-client privilege has not been recognized for federal purposes, some states have recognized the privilege for
    criminal matters.

36) The Eighth Amendment protection against cruel and unusual punishment prohibits the federal government from using the death penalty,
    because it constitutes torture.


                                                              BOXES
37) The Court in the Hughes Aircraft conspiracy cases held that Hughes could NOT be found guilty if it's employee was found not guilty.

38) The defendant enters a plea:
    a) before the grand jury.           c) after the warrant is issued.
    b) at the time of arrest.           d) at the arraignment.
                  e) NONE of the above.

39) A victim seldom sues a criminal defendant, because:
    a) the standard of proof is higher.              c) the defendant is usually judgment proof.
    b) the government does not allow it.             d) the standard of review is higher.
                   e) NONE of the above.

45) The federal criminal code is contained in:
    a) the Sentencing Reform Act of 1984.               c) Title 15 of the U.S. Code.
    b) the Speedy Trial Act.                            d) Title 18 of the U.S. Code.
                   e) NONE of the above.

46) The FCPA contains:
    a) two affirmative defenses.                             c) two denial defenses.
    b) one affirmative defense and one denial defense.       d) no defenses.


DOES NOT BELONG
For the following multiple-choice questions (51-80), identify which element DOES NOT BELONG (or IS
NOT related) to the group.

 47   a) burglary.           49. a) bribery.            51. a) psychologist-patient.                       53. a) receiving stolen
      b) larceny.                b) false pretenses.         b) rabbi-penitent.                            property.
      c) forgery.                c) extortion.               c) parent-child.                                  b) conspiracy.
      d) deceit.                 d) embezzlement.            d) attorney-client.                               c) attempted murder.
      e) extortion               e) criminal fraud.          e) NONE.., all of the above belong                d) aiding and abetting.
                                                        together.
 48. a) robbery.             50. a) burglary.           52. a) search and seizure.                         54. a) attorney-client privilege.
     b) extortion.               b) forgery.                 b) exclusionary rule.                             b) search and seizure.
     c) theft.                   c) embezzlement.            c) good faith exception.                          c) double jeopardy.
     d) conspiracy.              d) extortion.               d) self-incrimination.                            d) self-incrimination.
     e) arson.                   e) larceny.                 e) "fruit of a tainted tree"




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                                              QUIZ 46
                                      "TORTIOUS" COA's
                                                    Antitrust
                                           True-False/Multiple-Choice




THE FOLLOWING ARE MULTIPLE-CHOICE QUESTIONS
a) Sherman Act, ξ1 b) Sherman Act, ξ2 c) Clayton Act, ξ2       d) Clayton Act, ξ3  e) Clayton Act, ξ7
1    mergers         11 predatory pricing    21 customer restrictions       31 unilateral refusal to deal
2    price fixing    12 exclusive dealing    22 potential competition       32 resale price maintenance
3    monopolizing    13 natural monopoly     23 presumptive illegality      33 superior business acumen
4    Noerr doctrine  14 line of commerce     24 conscious parallelism       34 horizontal restraint of trade
5    group boycotts  15 division of markets  25 territorial restrictions
6    market sharing 16 vertical price fixing 26 meeting the competition
7    relevant market 17 price discrimination 27 group refusal to deal
8    cost            18 changing conditions 28 Robinson-Patman Act
     justification
9    small company 19 potential reciprocity 29 unfair advantage theory
10 failing company 20 tying arrangements 30 vertical restraint of
                                                trade

For the activities below, mark:
a) if judged by "per se" standard. b) if judged by "rule of reason standard".
35) monopolizing     38) refusals to deal  41) territorial restrictions 44) resale price maintenance
36) price fixing     39) vertical mergers  42) tying arrangements
37) group boycotts 40) unfair competition 43) price discrimination




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                                CHAPTER 51
                                "TORTIOUS" COA's
                                    Accountants Liability
                                   Graphic Organizer




A = accountant         X = Third Party              C = client/corporation

                                         C v. A                           X v. A
                                    ● fraud                 ● fraud
                                                                          ○ Ultramares
common law                          ● negligence            ● negligence ○ Restatement
                                                                          ○ foreseeability
                                    ● breach of contract    ● breach of contract
                                                            ● SEC 1933 §11(a)
                        civil                               ● SEC 1934 §10(b)
statutory law                                               ● SEC 1934 §18(a)
                                                            ● SEC 1933 §24
                        criminal
                                                            ● SEC 1934 §32(a)




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                                             QUIZ 51A
                                      "TORTIOUS" COA's
                                              Accountants Liability
                                                Fill-In the Blank

A = accountant              X = Third Party                 C = client/corporation
As who fail to meet the standards of _ _ _ _ (1) and _ _ _ _ (2) may be liable for negligence.
The standard for performing an audit is contained in _ _ _ _ (3), which is promulgated by the _ _ _ _ _ (4).
A(n) ___ (5) involves analyzing financial statements to verify the information in the statements.
A may be liable for c____ (6) fraud (7) if he or she conducts an audit in r____ d____ (8) for the truth.
Under the ___ (9) doctrine, As are liable only to Xs with whom they are in ____ _ ___ (10).
Under the ___ (11) standard, As are NOT liable to Xs.
Under the ___ (12) standard, As are liable to Xs for whose benefit the accountant has been employed.
Under the ___ (13) standard, As are liable to any foreseeable user of the financial statements.
The _ _ _ _ _ (14)publishes the “Code of Conduct” for CPA‟s.
A(n) ___ (15) opinion from an auditor is MOST favored by businesses.
A(n) ___ (16) opinion from an auditor is LEAST favored by businesses.
As who make or fail to find errors in a registration statement may assert __ __ (17) as a defense.
As committing fraud may be charged with criminal _ _ _ _ (18) and may be liable for civil _ _ _ _ (19).




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                                            QUIZ 51B
                                      "TORTIOUS" COA's
                                              Accountants Liability
                                           True-False/Multiple-Choice

C v. A
1. NAME a common law COA for C v. A
   a) fraud      c) breach of contract                 e) NONE of the above.
   b) negligence d)ALL of the above.
2. NAME a statutory COA for C v. A
   a) fraud        c) breach of contract               e) NONE of the above.
   b) negligence   d)ALL of the above.
3. NAME a statutory COA for C v. A
   a) SEC 1933 §11(a)     c) SEC 1933 §24                         e) NONE of the above.
   b) SEC 1934 §10(b)     d) ALL of the above.
4. NAME a criminal COA for C v. A
   a) fraud        c) SEC 1934 §10(b)                         e) NONE of the above.
   b) negligence   d) ALL of the above.

X v. A
5. NAME a common law COA for X v. A
   a) fraud      c) breach of contract                        e) NONE of the above.
   b) negligence d) ALL of the above.
6. NAME a statutory COA for X v. A
   a) SEC 1933 §11(a)     c) SEC 1933 §24                         e) NONE of the above.
   b) SEC 1934 §10(b)     d) ALL of the above.
7. NAME a criminal COA for X v. A
   a) fraud        c) SEC 1934 §10(b)                         e) NONE of the above.
   b) negligence   d) ALL of the above.

Generally Accepted Accounting Standards
8.     Certified Public Accountants must comply with the Government Standard Accounting Principles
       when preparing financial statements.

9.     For Certified Public Accountants, audits must be conducted according to Generally Accepted
       Auditing Standards.

10.    An accountant who performs an audit may follow other auditing standards than those in the
       GAAS.

11.    An accountant‟s failure to follow generally accepted auditing standards generally amounts to:
       a. Fraud.     b. Negligence.      c. Promissory estoppel. d. Reliance.       e. Falsification.

12.    If an auditor is unable to gather enough information to express an opinion about the financial
       statements, the auditor would issue a(n);.
       a. Unqualified opinion. b. Qualified opinion. c. Adverse opinion.        d Disclaimer of opinion.


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13.    If an auditor determines that the financial statements fairly present the financial results and
       position of the client, the auditor would issue a(n);
       a. Unqualified opinion. b. Qualified opinion. c. Adverse opinion.       d. Disclaimer of opinion.

14.    If an auditor determines that the financial statements do not fairly present the financial results
       and position of the client, the auditor would issue a(n);
       a. Unqualified opinion. b. Qualified opinion. c. Adverse opinion.         d. Disclaimer of opinion.

15.    If an auditor determines that the financial statements fairly present the financial results and
       position of the client except for one fairly minor, but material, item that is not properly presented,
       the auditor would issue a(n);
       a. Unqualified opinion. b. Qualified opinion. c. Adverse opinion.             d. Disclaimer of opinion.

Auditor’s Opinions
16. The issuance by an auditor of something other than an unqualified opinion can have adverse
     effects on the company audited.

Common Law Liability of Accountants to Their Clients
17.    An accountant is liable for constructive fraud when the accountant acts with a reckless disregard
       for his actions.

18.    Compliance by an accountant with Generally Accepted Accounting Principles and with Generally
       Accepted Auditing Standards will prevent the accountant from being liable for negligence to her
       client.

19.    Which of the following is not typically a common law basis of liability to the client of an
       accountant?
       a. Fraud.         b. Breach of contract.      c. Negligence.            d. Strict liability.

20.    When an accountant has conducted an audit with reckless disregard for the accuracy of the
       financial statements, the accountant has committed:
       a. Privity of the contract.      c. Actual fraud.
       b. Constructive fraud.           d. Strict liability carelessness.

21.    When an accountant has not followed generally accepted auditing standards, then:
       a. The accountant is negligent.
       b. The accountant is presumed to be negligent, but the accountant can possibly rebut that
          presumption.
       c. The accountant will be liable for any losses suffered by users of the financial statements.
       d. The accountant will lose his license to practice the profession of accountancy.

22.    When an accountant has followed generally accepted auditing standards and generally
       accepted accounting principles, then:
       a. The accountant is not negligent.
       b. The accountant could be negligent in some other respect.
       c. The accountant will not be liable for any losses suffered by users of the financial statements.
       d. The accountant will have uncovered any fraud or other problems with the financial statements.

Negligence Liability of Accountants to Third Parties
23.    Generally, only the client of an accountant can bring a negligence claim against the accountant.
24.    In the Ultramares case involving negligence of a CPA firm, the firm was found liable even though
       it was not in a contractual relationship with the plaintiff.
25.    The term privity refers to parties being in a contractual relationship with one another.

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26.    Under the foreseeability standard, an accountant can be held liable to a third party when the
       accountant had no knowledge of the third party.
27.    The rule of liability of accountants for negligence to third parties that is most favorable to the
       accountant is:
       a. The Ultramares doctrine.                              c. The strict liability standard.
       b. The Restatement (Second) of Torts standard.           d. The foreseeability standard.
28.    The rule of liability of accountants for negligence to third parties that is least favorable the
       accountant is:
       a. The Ultramares doctrine.                              c. The strict liability standard.
       b. The Restatement (Second) of Torts standard.           d. The foreseeability standard.
29.    Under the Ultramares doctrine, an accountant is liable to which third parties?
       a. Only parties in privity with the accountant.
       b. Only parties in privity with the accountant or parties in a privity-like relationship with the
          accountant.
       c. All parties in a limited class that the accountant knows the identity of.
       d. All parties in a limited class whether or not the accountant knows the identity of the party.
       e. All foreseeable users of the financial statements.
30.    Under the Restatement (Second) of Torts standard, an accountant is liable to which third
       parties for negligence?
       a. Only parties in privity with the accountant.
       b. Only parties in privity with the accountant or parties in a privity-like relationship with the
          accountant.
       c. All parties in a limited class that the accountant knows the identity of.
       d. All parties in a limited class whether or not the accountant knows the identity of the party.
       e. All foreseeable users of the financial statements.
31.    Anne, a Certified Public Accountant, was hired by a retail hardware store to perform an audit on
       the store‟s financial statements. In the agreement for this engagement was a clause stating that
       the audited financial statements would be used “to obtain further inventory financing from
       Second National Bank or another local bank.” Anne completed the audit and issued an
       unqualified opinion. The client obtained the financing from Heartland National Bank, another
       local bank. Unfortunately, Anne had been negligent in conducting the audit, and the inventory
       had been greatly overstated. As a result, there was inadequate collateral for Heartland‟s loan,
       and when the hardware store went bankrupt a few months later, Heartland suffered a loss.
       Under which of the rules for an accountant‟s liability to third parties could Heartland recover from
       Anne?
       a. The foreseeability standard.
       b. The foreseeability standard AND the Restatement (Second) of Torts.
       c. The Ultramares doctrine.
       d. The Ultramares doctrine and the foreseeability standard.
       e. The Ultramares doctrine, the Restatement (Second) of Torts and the foreseeability standard.
32.    Gretchen, a Certified Public Accountant, was hired by a retail hardware store to perform an audit
       on the store‟s financial statements. In the agreement for this engagement was a clause stating
       that the audited financial statements would be used “to renew the inventory financing line of
       credit from Third National Bank.” Gretchen completed the audit and issued an unqualified
       opinion. The client obtained the financing from Third National Bank. Unfortunately, Gretchen
       had been negligent in conducting the audit, and the inventory had been greatly overstated. As a
       result, there was inadequate collateral for the loan, and when the hardware store went bankrupt
       a few months later, Third National Bank suffered a loss. Under which of the rules for an
       accountant‟s liability to third parties could Third National Bank recover from Gretchen?
       a. The foreseeability standard.
       b. The foreseeability standard and the Restatement (Second) of Torts.
       c. The Ultramares doctrine.
       d. The Ultramares doctrine and the foreseeability standard.
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       e. The Ultramares doctrine, the Restatement (Second) of Torts and the foreseeability standard.
33.    Anne, a Certified Public Accountant, was hired by a retail hardware store to perform an audit on
       the store‟s financial statements. The agreement for this engagement stated that the audited
       financial statements would be used “to obtain further inventory financing from Second National
       Bank or another local bank.” Anne completed the audit and issued an unqualified opinion. The
       client then used the audited financial statements to encourage Henry to invest in the hardware
       store as a new partner. Unfortunately, Anne had been negligent in conducting the audit, and the
       inventory had been greatly overstated. As a result, the hardware store soon went bankrupt.
       Under which of the rules for accountant liability to third parties could Henry recover from Anne?
       a. The foreseeability standard.
       b. The foreseeability standard and the Restatement (Second) of Torts.
       c. The Ultramares doctrine.
       d. The Ultramares doctrine and the foreseeability standard.
       e. The Ultramares doctrine, the Restatement (Second) of Torts and the foreseeability standard.

Other Common Law Doctrines That Impose Liability on Accountants to Third Parties
34.    Generally, privity of contract is required for a party to recover from an accountant based on
       fraud.

35.    Accountants can generally be held liable to more parties on a fraud theory than on a breach of
       contract theory.

Statutory Liability of Accountants
36.    Under Section 11 of the Securities Act of 1933, an accountant cannot use of the due diligence
       defense.

37.    A plaintiff in an action under Section 11 of the Securities Act of 1933 must prove that she relied
       on the misstatement of an accountant in order to recover.

38.    Ordinary negligence of an accountant will result in liability under Section 10b-5 of the Securities
       Exchange Act of 1934.

39.    Section 18(a) of the Securities Exchange Act of 1934 imposes liability on accountants making
       a false or misleading statement in any document filed with the Securities and Exchange
       Commission.

40.    Under the Securities Exchange Act of 1934, fraud or reckless conduct must be shown in order
       to impose liability on the accountant under either Section 10(b) or Section 18(a).

41.    Section 11(a) of the Securities Act of 1933 imposes civil liability on accountants for:
       a. Making misstatements or omissions in a registration statement.             c. Both A and B.
       b. Failing to find misstatements or omissions in a registration statement.    d. Neither A nor B.

42.    An accountant is liable for unintentional negligent misstatements in financial statements under
       which of the following?
       a. Section 11 of the Securities Act of 1933.        c. Both A and B.Act of 1934.
       b. Section 10(b) of the Securities Exchange            d. Neither A nor B.

43.    The due diligence defense is applicable to actions filed under:
       a. Section 11 of the Securities Act of 1933.                  c. Both A and B.
       b. Section 10(b) of the Securities Exchange Act of 1934.      d. Neither A nor B.

44.    Patricia, a Certified Public Accountant, was hired to audit the financial statements of a large
       internet retailer that was planning a new issuance of stock. The client had made several public
       offerings of stock in recent years and was required to meet the reporting requirements of the
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       Securities Exchange Act of 1934. In performing her audit, Patricia was negligent. Although
       she was unaware of the fact, the financial statements greatly overstated accounts receivable
       because the client had recorded numerous fictitious sales. The audited financial statements
       were included in the registration statement for the new public offering and in the reports filed
       under the Securities Act of 1934. Patricia faces statutory liability under:
       a. Section 11 of the Securities Act of 1933.                  c. Both A and B.
       b. Section 10(b) of the Securities Exchange Act of 1934.          d. Neither A nor B.

45.    Diana, a Certified Public Accountant, was hired to audit the financial statements of a large
       internet retailer that was planning a new issuance of stock. The client had made several public
       offerings of stock in recent years and was required to meet the reporting requirements of the
       Securities Exchange Act of 1934. In performing her audit, Diana discovered that large
       portions of accounts receivable resulted from fictitious sales. The client told Diana that the
       company would go bankrupt and that she would then be unable to collect her fee if the fictitious
       accounts receivable were eliminated or were mentioned in the auditor‟s report. Diana did not
       adjust or mention the problems with the accounts receivable. The audited financial statements
       were included in the registration statement for the new public offering and in the reports filed
       under the Securities Act of 1934. Diana faces statutory liability under:
       a. Section 11 of the Securities Act of 1933.                     c. Both A and B.
       b. Section 10(b) of the Securities Exchange Act of 1934.         d. Neither A nor B.

              Criminal Liability of Accountants and Other Professionals
46.    Under the Securities Act of 1933, accountants are liable only for willful misstatements in the
       financial statements.

47.    The Racketeer Influenced and Corrupt Organizations Act provides for both civil and criminal
       actions against accountants who violate its provisions.

48.    There is no accountant-client privilege under federal law.

49.    Which of the following is TRUE about the accountant-client privilege?
       a. It applies in federal courts and all state courts.
       b. It applies in all state courts, but not in federal court.
       c. It applies in federal court and some state courts.
       d. It applies in some state courts, but not in federal court.
       e. It applies in federal court, but no state courts.

EXTRA CREDIT (?? test points) see me for details
50.    Why were statutory laws passed to impose liability on accountants? Why weren‟t the common
       law precedents sufficient?




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                                           PROJECT 3
                                    (GRAPHIC ORGANIZERS)
                                        F I G U R E 3-1
                   Uni-lateral Contracts vs. Bi-lateral Contracts
                                          OFFER                       ACCEPTANCE
     uni-lateral                        promise                       performance
     bi-lateral                         promise                         promise
                                             F I G U R E 3-2
                            The common law versus the U.C.C.
                                                                                $500
   THE STATUTE
   OF FRAUDS                        < $500
                                                                    Uniform Commercial Code
    GOODS                   common law of contracts
                                                                             (U.C.C.)
   SERVICES                 common law of contracts                 common law of contracts

                                            F I G U R E 3-3
                                            P3 SCANTRON

                            BREACH OF CONTRACT
     a = element of PFC            b = denial defense
     c = P‟s response to A/D   d = affirmative defense
     e = request for remedy    f = response to request for remedy

                                              π                            Δ
                                ● OFFER
Chs: 9,10,11
 Chs 9,10,11                    ● ACCEPTANCE                  a            b        denial defenses
     15/2
                     PFC        ● CONSIDERATION                                     (10)
                                ● BREACH

                                                              c                            d
Chs: 12,13,14
     15/1
                     A/D
                                      RESPONSES                        AFFIRMATIVE DEFENSES
                                 to affirmative defenses                            (12, 13, 14, 15/1)
                                      (12, 13, 14, 15/1)

                                  REQUEST                      e       f
                       R
                                FOR REMEDIES
                                     (16)   117                                            RESPONSE
                                                                           TO REQUEST FOR REMEDIES
                                                                                                 (16)
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                                                   P3 SCANTRON A
     1    usury              26     unilateral contract   51   NOT express contract       76      NO bargained-for exchange
     2    bankruptcy         27     commit a crime        52   NO expectation             77      mutual mistake of value
     3    mailbox rule       28     only advertisement    53   implied-in-law contract    78      no identification of parties
     4    sabbath laws       29     infancy doctrine      54   unforeseen difficulties    79      inadequate consideration
     5    liquidated         30     statute of frauds     55   fraud in the inception     80      NO justifiable reliance
     6    intoxication       31     void/voidable         56   illegal consideration      81      performance NOT started
     7    lapse of time      32     past consideration    57   force majeure clause       82      commercial impracticability
     8    executed           33     moral obligation      58   supervening illegality     83      anticipatory repudiation
     9    accord             34     mistake of law        59   implied-in-fact contract   84      gift/gratuitous promise
     10   implied terms      35     mirror image rule     60   assignment of rights       85      no identification of subject matter
     11   OFFER              36     bi-lateral contract   61   NO COMMUNICATION           86      third-person acceptance
     12   less at fault      37     exculpatory clause    62   accord NOT satisfied       87      mutual mistake of fact
     13   ratification       38     restraint of trade    63   shocks conscience….        88      no inquiry into bad deal
     14   executory          39     accepts benefit       64   no serious, …intention     89      contrary to public policy
     15   gambling           40     pre-existing duty     65   NOT adjudged insane        90      objective theory of contracts
     16   NO privity         41     induced by fraud      66   goods NOT unique           91      No opportunity to reject
     17   immoral            42     illusory promise      67   intended beneficiary       92      OFFER TERMINATED
     18   quasi contract     43     ACCEPTANCE            68   unilateral mistake         93      only anger, undue excitement
     19   adhesion           44     SCRABBLE Case         69   supervening illegality     94      contract under seal
     20   lucid interval     45     option contract       70   regulatory statutes        95      NO mitigation of damages
     21   prior dealings     46     NOT received          71   donee beneficiary          96      no identification of time of perf.
     22   emancipation       47     NO DEFINITENESS       72   continuing acceptance      97      SILENCE ≠ (acceptance)
     23   novation           48     exculpatory clause    73   NOT by same means          98      necessaries of life (quasi-)
     24   insanity           49     NOT stated time       74   SON OF SAM Case            99      legal remedy is adequate
     25   rescission         50     undue influence       75   grumbling acceptance       100



                                                   P3 SCANTRON B
1    lack of capacity                     20   death/incompetency              39   parties/subject matter NOT unique
2    MB rule expressly altered            21   special type of contract        40   NO willful conduct, fraud, etc.
3    equivocal acceptance                 22   grumbling acceptance            41   No severely unequal power
4    NOT objective impossibility          23   NOT innocent person             42   ≤ $, charitable, racing, state-operated
5    specific performance                 24   NOT properly dispatched         43   terms NOT reasonably certain
6    necessaries of life (quasi-)         25   banks, ≥ $, businesses          44   NOT an unforeseeable event
7    misrepresentation of age             26   revocation--express/implied     45   language sufficiently definite
8    means NOT reasonable                 27   silence (misrepresentation)     46   no identification of consideration
9    induced by fraud, duress, etc.       28   NO detriment suffered           47   irrevocable offer -- "firm offer
10   NOT authorized means                 29   offeree indicated silence       48   only preliminary negotiation
11   incidental beneficiary               30   implied authorization           49   innocent misrepresentation
12   main purpose rule                    31   rejection dispatched first      50   unconscionable/adhesion contract
13   revenue-raising statute              32   only expression of opinion      51   rejection/counterofferexpress/implied
14   creditor beneficiary                 33   parol evidence rule             52   necessaries, charitable, unconstitutional
15   acceptance before revocation         34   NOT reasonable time             53   NO market or source…price
16   acceptance before revocation         35   justifiably ignorant            54   NO knowledge of special circumstances
17   destruction of subject matter        36   acceptance-upon-dispatch        55   NO OBJECTIVE INTENTION
18   π destroyed subject matter           37   Δ had reasonable alternative    56
19   withdrawn before performance         38   No use of power to oppress      57




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                                 PROJECT 3 (CONTRACTS)
Chapter 9 – Introduction
HOW MIGHT THE Δ RESPOND?
1) 9-1….in response to a π’s claim that there was an implied-in-fact contract?
2) 9-2….in response to a π’s claim that there was an implied-in-law contract?
3) 9-3….in response to a π’s claim that there was a bilateral contract?
4) 9-3….in response to a π’s claim that there was a unilateral contract?

Chapter 10-- Agreement
HOW MIGHT THE Δ RESPOND?
5) 10-1….in response to a π’s claim that there was an OFFER?
     ● NO OBJECTIVE INTENT                    ● NO DEFINITENESS                           ● NO COMMUNICATION
     (to make an offer)                          (of terms)                                   (of offer)
  ○ only preliminary negotiations             ○ no identification of the parties          offer NOT communicated
  ○ made in jest, anger, undue excitement     ○ no identification of the subject matter
  ○ only an expression of opinion             ○ no identification of the consideration
                                              ○ no time of performance stated
HOW MIGHT THE π RESPOND?
6) 10-2….in response to a Δ’s claim that an offer was revoked (TERMINATED by revocation)
7) 10-3….in response to a Δ’s claim that the offer was TERMINATED because of lapse of time
8) 10-4….in response to a Δ’s claim that the offer was TERMINATED because the subject matter was
                                                                destroyed
HOW MIGHT THE Δ RESPOND?
9) 10-5….in response to a π’s claim that there was an ACCEPTANCE?
10) 10-6….if the π uses the mailbox rule to argue that the acceptance was effective?
HOW MIGHT THE π RESPOND?
11) 10-7….in response to a Δ’s claim that the acceptance was ineffective because of the mirror image rule, that
   is that the language of the acceptance DID NOT exactly match the language of the offer.
12) 10-8….in response to a Δ’s claim that the acceptance was ineffective because silence is NOT acceptance.
13) 10-9….in response to a Δ’s claim that the acceptance was ineffective because it was improperly dispatched.
14) 10-10….in response to a Δ’s claim that the acceptance was by an unauthorized mode of communication
15) SKIP
Chapter 11 -- Consideration
HOW MIGHT THE Δ RESPOND?
16) ….if the π claims there was CONSIDERATION ?
17) ….if the π claims promissory estoppel
HOW MIGHT THE π RESPOND?
18) 11-1….in response to a Δ’s claim that the consideration was only nominal?
19) 11-2….in response to a Δ’s claim that there was a pre-existing duty?
20) 11-3….in response to a Δ’s claim that the consideration is “past consideration”?
21) 11-4….in response to a Δ’s claim that the consideration is illusory because “best efforts” is left up to P and
     can choose to NOT to perform but still claim he gave his “best effort”?
22) 11-5….in response to a Δ’s claim that the consideration is illusory because it is only a moral obligation?
23) 11-6….in response to a Δ’s claim that the option-to-cancel clause was NOT supported by consideration?
(24,25) SKIP

Chapter 12 – Capacity/Illegality
HOW MIGHT THE π RESPOND?
26) ….if the Δ DISAFFIRMS the contract based on the infancy doctrine (6 possible responses)
27) ….if the Δ DISAFFIRMS a contract based on the infancy doctrine and the π claims ratification, how might the
    Δ (minor) respond?
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28) ….if the Δ DISAFFIRMS the contract based on insanity (5 possible responses)
29) ….if the Δ DISAFFIRMS the contract based on intoxication (2possible responses)
30) ….if the Δ uses usury as an AFFIRMATIVE DEFENSE (2 possible responses)
31) ….if the Δ uses gambling as an AFFIRMATIVE DEFENSE (4 possible responses)
32) ….if the Δ uses the Sabbath laws as an AFFIRMATIVE DEFENSE
33) ….if the Δ uses lack of licensing as an AFFIRMATIVE DEFENSE (1 possible response)
34) ….if the Δ claims unconscionable contract as an AFFIRMATIVE DEFENSE (3 possible responses)
35) ….if the Δ claims an exculpatory clause as an AFFIRMATIVE DEFENSE (6 possible responses)
36) ….if the Δ uses illegality as an AFFIRMATIVE DEFENSE (4 possible responses)

HOW MIGHT THE Δ RESPOND?
37) ….if the π claims breach of contract based on a breach of a covenant not to compete (3 possible
    responses)
38) ….if the π claims that an underage (minor) Δ ratified the contract.
(39,40) SKIP

Chapter 13 – Genuineness of Assent
HOW MIGHT THE π RESPOND?
41) 13-1….if the Δ claims mutual mistake (2 possible responses)
42) 13-2….if the Δ claims misrepresentation/fraud/deceit
43) 13-3….if the Δ claims the contract is unenforceable due to duress (1 response)
44) 13-4….if the Δ claims the contract is unenforceable due to undue influence
HOW MIGHT THE Δ RESPOND?
45) 13-5….if the π claims unilateral mistake.
46) 13-6….if the π claims that silence IS NOT misrepresentation.
(47-50) SKIP

Chapter 14 – Writing and Contract Form
51) How might a Δ respond if a π requests rescission based on violation of the Statute of Frauds.
HOW MIGHT THE π RESPOND?
52) 14-1….if the Δ claims the contract (involving real property) violates the statute of frauds?
53) 14-2….if the Δ claims the contract (involving a guaranty type of contract) violates the statute of frauds?
54) 14-3….if the Δ claims the contract (involving the UCC (goods ≥ $500)) violates the statute of frauds?
55) 14-4….if the Δ claims a contract violates the statute of frauds and none of the responses above is available?
HOW MIGHT THE Δ RESPOND?
56) ….if the π argues promissory estoppel to the judge
57) HOW MIGHT A LITIGANT RESPOND IF THE OPPOSING PARTY WANTS TO EXCLUDE CERTAIN EVIDENCE DUE
     TO THE PAROL EVIDENCE RULE? (5 possible responses)



Chapter 15a – Third-Party Rights                             Chapter 15b – Discharge
HOW MIGHT THE π RESPOND?                                     HOW MIGHT THE π RESPOND?
58) 15a-1….if the Δ claims NO privity?                       61) 15b-1….if the Δ claims condition has not been
59) 15a-2….if the π claims that “time is of the essence”?                                                              m
(60) SKIP                                                                                                              e
                                                                                                                       t
                                                                                                                       ?

                                                             62) 15b-2….if the Δ claims rescission?
                                                             63) 15b-3….if the Δ claims accord and satisfaction?
                                                             64) 15b-4….if the Δ claims novation?
                                                             65) 15b-5….if the Δ claims commercial impracticability?
                                                             66) 15b-6….if the Δ claims frustration of purpose?
                                                             67) 15b-6….if the Δ claims impossibility ?
                                                             68) 15b-7…Other than discharge or condition, how might
                                                             the Δ respond to a claim of breach?
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Chapter 16 – Remedies
HOW MIGHT THE Δ RESPOND?
71) 16-1….if the π claims compensatory damages?      73) 16-2….if the π claims liquidated damages?
72) 16-1….if the π claims consequential damages?     74) 16-2….if the π claims specific performance?




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                                                                QUIZ 9
                                                          CONTRACTS
                                                                   Examination
                                                                   (Fill-In/T-F)

Chapter 9 – Introduction (Fill-In the Blank) (1-5)
The three (3) elements of a contract are: _____ (1), _____ (2), and _____ (3).

The elements offer and acceptance together constitute a____ (4).

The three (3) sources of contract law are: : _____ (5), _____ (6), and _____ (7).

1. A contract which has not yet been fully performed is said to be _____.

2. The state law that has been adopted, at least in part, by all 50 states, to provide uniformity among the states in commercial transactions is
   the _____.

3. A contract which can be accepted ONLY by the performance of an act is called a(n) ____.

4. The DOCTRINE developed to prevent the unjust enrichment of one party by another is called ______.

5. A contract which has been fully performed by all parties is called a(n) ______ contract.

Chapter 9—Introduction (True-False) (1-6)
1. An express contract may be oral.

2. The right to contract is neither liberty nor property, so the due process clause does not apply to it.

3. The Restatement (Second) of Contracts is a uniform law of contract which has been adopted by all 50 states.

4. A unilateral contract is one in which the offeror’s promise is accepted by the offeree’s promise.

5. A contract upon which the statute of limitations has run would be an example of an unenforceable contract.

Chapter 9 – Introduction (Multiple-Choice)
6.    To create an enforceable contract, which of the following are needed?
a. Offer and acceptance. b. Offer, acceptance          c. Offer, acceptance,            d. Offer, acceptance,           e. Offer, acceptance,
                           and consideration.          consideration and capacity.      consideration capacity          consideration and a
                                                                                        and a lawful objective.         lawful objective.

Chapter 10 -- Agreement(Fill-In the Blank) (6-10)
6. A(n) ______ contract is one in which a supplier agrees to sell all of his/her production to a single purchaser.

7. A(n) _______ acts as a rejection of the offeror’s offer and creates a new offer.

8. The common law of contracts adheres to the ______ rule, which states that if the offeree’s acceptance adds any new or additional terms
   to the offer, there is NO CONTRACT.

9. _______ contract is one in which the offeree has paid the offeror to keep his/her offer open for a period of time.

10. At common law, an acceptance to be made by mail is effective when it is ____.


Chapter 10 -- Agreement (True-False) (7-27)
7.The Aobjective theory of contracts holds that the outward manifestation of intent to contract as judged by a hypothetical reasonable person
determines the existence of a contract.

8. Since a contract is voluntary, there must be mutual assent between the parties.

9. At common law, to be valid, an offer must be so definite that the offeree can create a contract simply by saying yes.

10. The modern law of contracts will save an indefinite contract by implying omitted terms, as long as there exists a reasonable basis for
    implying the term.

11. Output and requirement contracts are unenforceable, because they are not definite about quantity.

12. Generally, advertisements, catalogs, price lists, etc. are NOT treated as offers.

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13. Generally, an advertisement for BIDS is an offer, and a contract is automatically formed with the lowest bidder.

14. If nothing is stated about how long an offer is to remain open, it remains open until it is revoked by the offeror.

15. The Uniform Commercial Code gap-filling rules would allow the court to complete terms for price, quantity, and places of delivery, in an
    incomplete contract.

16. Generally, an offeror can specify the manner in which he/she wants his/her offer to be accepted.

17. If no mode of acceptance is stated in the offer, then both the common law and the U.C.C. provide that any mode which is reasonable in
    the circumstances may be used.

HOW MIGHT THE π RESPOND?
….in response to a Δ’s claim that the offer was revoked
….in response to a Δ’s claim that the offer was rejected
….in response to a Δ’s claim that the offer was terminated because of lapse of time
….in response to a Δ’s claim that the offer was terminated because the subject matter was destroyed
….in response to a Δ’s claim that the acceptance was ineffective because of the mirror image rule, that is that the language of the
acceptance did not exactly match the language of the offer.
….in response to a Δ’s claim that the acceptance was ineffective because silence is NOT acceptance
….in response to a Δ’s claim that the acceptance was ineffective because it was NOT by an authorized mode of communication
Other than by revocation or rejection, NAME another way that an offer can be terminated….

HOW MIGHT THE Δ RESPOND?
….if the π uses the mailbox rule to argue that the acceptance was effective?
    ξ66 of the Restatement (Second) of Contracts
Scenario:
An offer was NOT properly dispatched, but was received within the allowed time period.
π argues ξ67 of the Restatement (Second) of Contracts – acceptance effective even….if timely sent and received w/in same time that a
properly transmitted acceptance would have arrived
Δ argues 1) ξ66 of the Restatement (Second) of Contracts – acceptance effective even….if timely sent and received w/in same time that
a properly transmitted acceptance would have arrived, OR
        2) mailbox rule is ineffective, because contract expressly provided that acceptance was effective only when received.

Scenario:
An offer was accepted by a certain means of communication.
π argues implied authorization ξ30 of the Restatement (Second) of Contracts –- mode of communication can be inferred from
course of dealing, usage of trade….
Δ argues express authorization – contract specified the mode of communication of acceptance.

Chapter 10-- Agreement (Multiple-Choice)
18.    In a UNILATERAL contract
a. The offeror wants an  b. The offeror cannot revoke            c. The offeror will accept either a      d. A and B only.   e. B and C only.
act as acceptance of     the offer once the offeree has          promise to perform or actual
his/her offer.           begun performance or has                performance as acceptance of
                         substantially completed                 his/her offer.
                         performance.

19.    Which of the following elements is required for an offer to be effective?
a. An objective intent to   b. Definite or reasonably        c. Communication of offer to offeree.        d. A, B, and C.    e. A and C only.
be bound by the offer.      certain terms.

20.    Which of the following are necessary to meet the requirements of a definite offer?
a. Identification of the parties,       b. Consideration.             c. Time of performance.             d. A, B and C.     e. A and B only.
subject matter and quantity.

21.   If a contract omitted some terms, which of the following terms would be implied by the court?
a. Quantity.         b. Time for performance.     c. Price, if a reasonable price can be                  d. A, B, and C.    e. A and C only.
                                                  determined.

22.    In order to collect a REWARD, the person must:
a. Perform the requested b. Have knowledge of the reward            c. Have knowledge of the              d. A and B only.   e. A and C only.
act.                          BEFORE performing the act.            reward BEFORE collecting the
                                                                    reward.




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23.    Which of the following are true about an AUCTION?
a. Unless otherwise stated, the       b. Ads are offers to c. A bidder may withdraw his/her offer        d. A, B and C.       e. B and C only.
seller may refuse the highest bid.    purchase.            any time before it is accepted.

24.   Which of the following will terminate an offer?
a. Revocation by the offeror.         b. Rejection by the             c. Counteroffer by the offeree.    d. A, B, and C.      e. A and B only.
                                      offeree.

25.    Generally, an offer is revocable. Which of the following offers are IRREVOCABLE?
a. An offer where the offeree has PAID     b. An U.C.C. Afirm        c. An offer to which                d. A, B, and C.      e. A and C only.
the offeror to keep the option open.       offer.                    Apromissory estoppel would
                                                                     apply.

26.    Which of the following best describes the U.C.C. Afirm offer provision?
a. For a Afirm offer, the     b. A Afirm offer must be in        c. For a firm offer, the       d. A firm offer covers the    e. B and C only.
offeree must pay              writing and signed by the          offeror may be any             sale of any property.
consideration.                offeror.                           seller.


27.   Which of the following would terminate an offer?
a. Lapse of       b. Destruction of the subject              c. Supervening illegality of the           d. A, B, and C.      e. B and C only.
time.             matter.                                    contract.



Chapter 11 -- Consideration(Fill-In the Blank) (11-20)
11. A _______ contract is a contract where one party has the option of avoiding his contractual obligations.

12. To be enforceable, a contract must be supported by _______, something of legal value which is bargained for.

13. ___ __ ___ is a latin phrase for consideration, meaning “to receive one thing for another” or “something for something else”.

14. A contract in which one party can choose whether or not to perform is called _______.

15. A promise to do what one is already obligated to do is NOT consideration and is called a(n) ____.

16. The doctrine of ______ requires that each party to a bilateral contract be bound to render SOME performance under the contract.

17. The U.C.C. imposes an obligation of _____ on the parties to both output and requirements contracts.
requires that one party use his/her _____ to promote and/or sell the other party’s goods or services.

18. An agreement whereby a debtor voluntarily agrees to pay a debt discharged in bankruptcy is called a(n) _____ contract.

19. A contract in which one party agrees to purchase all of the products that the other party produces is called a(n) _____ contract.

20. Some states recognize a covenant of _________ which requires the parties to a contract to act fairly with each other.

HOW MIGHT THE π RESPOND?
….in response to a Δ’s claim that the consideration was only nominal
….in response to a Δ’s claim that there was a pre-existing duty….
….in response to a Δ’s claim that the consideration is “past consideration”
….in response to a Δ’s claim that the consideration is illusory because “best efforts” is left up to P and can choose to NOT to perform but
still claim he gave his “best effort”
….in response to a Δ’s claim that the consideration is illusory because it is only a moral obligation
….in response to a Δ’s claim that the option-to-cancel clause was NOT supported by consideration

HOW MIGHT THE Δ RESPOND?
….if the π claims promissory estoppel

Chapter 11 -- Consideration (True-False) (28-52)
28. Generally, a moral obligation is sufficient to bind one to a contract.

29. Contracts in which one party agrees to buy all his/her requirements from the other party are generally unenforceable because there is no
    definite amount.

30. In a bilateral contract, the consideration is the mutual promises to perform.

31. Promises to make gifts are generally enforceable.

32. The doctrine of mutuality of obligation requires that only one party to a bilateral contract be bound to render some performance.



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33. The courts will examine the sufficiency of consideration only if the consideration is so inadequate that it shocks the conscience of the
    court.

34. Contracts based on love and affection are generally enforceable.

35. The primary reason that past consideration is not legally sufficient consideration is that it was not bargained for.

36. Most states do NOT require new consideration for a promise to pay a debt barred by the statute of limitations.

37. At common law, pledges or subscriptions to charitable organizations were enforceable WITHOUT consideration.

38. For the doctrine of promissory estoppel (detrimental reliance) to apply, there still must be a contract with adequate consideration.

39. If a person is insane at the time of signing a contract, but has not been adjudged insane, that contract is VOID.

40. In most states, if a contract is disaffirmed due to intoxication, both parties must be returned to the status quo.

41. Generally, any party who signs a contract, while lacking legal capacity, has the opportunity to ratify that contract at some time.

42. Generally, the courts will NOT enforce an illegal contract, but will leave the parties where it finds them.

43. If you bought a life insurance policy on a complete stranger, you would be gambling.

44. Contracts for lobbying are unenforceable as violations of public policy.


45. A contract to discriminate against somebody is illegal, because it usually violates state and/or federal statutes; if not, it is illegal as being
    contrary to public policy.

46. If a party enters into an illegal contract, but withdraws from it before the illegal act is performed, that party may NOT recover any
      consideration paid.

Chapter 11 -- Consideration (Multiple-Choice)
47.    Consideration:
a. Must be bargained          b. May be a legal benefit             c. May be a legal detriment              d. A, B and C.      e. A and B only.
     for.                          received.                             suffered.

48.    Which of the following statements best describes the treatment of adequacy of
         consideration?
a. Generally, consideration       b. Generally, the courts will examine      c. Nominal consideration is     d. A, B and C.      e. A and B only.
 can be anything of value.         the adequacy of consideration              NEVER sufficient..
                                   issue.

49.    Which of the following constitutes legal consideration?
a. A promise to      b. A promise based upon a            c. A promise based              d. A promise based             e. A promise based
 make a gift.         change in duties and payments.       upon a moral                    upon past                      upon a preexisting duty.
                                                           obligation.                     consideration.

50.   Some courts have held that police officers are NOT entitled to recover rewards offered for the capture of criminals. The reason for
      this ruling is that the promise to pay the reward is NOT supported by consideration because it is based upon
a. A moral duty.            b. Past consideration.     c. A preexisting duty.  d. A contract modification.  e. Unforeseen
                                                                                                                  circumstances.

51.    In order to be enforceable, a reaffirmation agreement must:
a. Be in writing.          b. Be made prior to the     c. Allow the debtor a limited right of                d. A, B and C.      e. B and C only.
                            bankruptcy discharge.       rescission.

52.    The doctrine of Apromissory estoppel or detrimental reliance.
a. Requires                 b. Requires actual          c. Requires the promisor should have                 d. A, B and C.      e. B and C only.
 consideration for the       reliance by the             expected the promisee to rely on the
 contract.                   promisee.                   promise.



Chapter 12 – Capacity/Illegality (Fill-In the Blank) (21-41)
21.A contract to commit a crime is an example of a(n) ______ contract.

22. In order to enter into a binding contract, the parties must be legally able to contract; this is called contractual ____.

23. In general, contracts made by minors are _____.

24. When a minor cancels a contract, she is said to _____ the contract.

25. If a minor does not legally cancel a contract, within the appropriate time, the contract is considered _____.
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26. Minors are obligated to pay for the _____ of life that they contract for.

27. A(n) _______ minor is a minor whose parents are no longer responsible for that minor’s support.

28. A minor who has voluntarily moved away from home and lives on his/her own may have the same capacity to contract as an adult; if so,
    the minor is said to be ____.

29. If a minor disaffirms a contract, the minor must give back whatever consideration he/she has received from the adult; this is known as
    the minor’s duty of _____.

30. In most states, contracts made by convicted felons while incarcerated are ____.

31. Generally, a person who lacks legal capacity is still liable for necessaries of life, based on the legal theory of ____.

32. Most states have a(n) _____ law, which regulates the amount of interest that can be charged on a loan.

33. Contracts which shift or spread the risk of loss (insurance contracts) are valid contracts as long as the buyer has a(n) ____ ____ in the
    property being insured.

34. _____ laws prohibit or limit doing business on Sunday.

35. A licensing statute which is intended to protect the public is called a(n) ____ statute.

36. A contract whereby a mother paid someone to marry her son/daughter would be unenforceable, as a violation of___, because it is a
    contract that impairs family relations.

37. An agreement not to enter a certain line of business for a certain time and within a certain area is called a(n) ___ agreement.

38. An unlicensed person who is supposed to have a license, may still collect payment for his services, if the licensing statute is a(n) _____
    statute.

39. A contract which is so unfair and one-sided as to shock the conscience of a reasonable person, could be called a(n) _____ agreement.

40. A contract clause which purports to relieve a party of his/her own negligence is called a(n) ____ clause.

41. An agreement between two or more creditors to accept a reduced payment from a debtor is called a(n) ____ agreement.

42. At common law, parties to an illegal contract were considered _ __ ___ (latin phrase).

HOW MIGHT THE π RESPOND?
….if the Δ DISAFFIRMS the contract based on the infancy doctrine (6 possible responses)
….if the Δ DISAFFIRMS the contract based on insanity (5 possible responses)
….if the Δ DISAFFIRMS the contract based on intoxication (2possible responses)
….if the Δ uses illegality as an AFFIRMATIVE DEFENSE (4 possible responses)
….if the Δ uses usury as an AFFIRMATIVE DEFENSE (2possible responses)
….if the Δ uses gambling as an AFFIRMATIVE DEFENSE (4 possible responses)
….if the Δ uses the Sabbath laws as an AFFIRMATIVE DEFENSE (2possible responses)
….if the Δ uses lack of licensing as an AFFIRMATIVE DEFENSE (1 possible response)
….if the Δ claims unconscionable contract as an AFFIRMATIVE DEFENSE (3 possible responses)
….if the Δ claims an exculpatory clause as an AFFIRMATIVE DEFENSE (6 possible responses)

HOW MIGHT THE Δ RESPOND?
….if the π claims breach of contract based on a breach of a covenant not to compete (3 possible responses)
….if the π claims that an underage (minor) Δ ratified the contract (1 possible response)

Chapter 12 – Capacity/Illegality (True-False) (53-70)
53. In most states, if a minor misrepresents his/her age, when entering into a contract, that contract cannot be disaffirmed.

54. Minors must only pay the Areasonable value of necessaries of life for which they contract.

55. Marriage contracts, just like all other contracts, can be disaffirmed by a minor.

56. Generally, minors are NOT responsible for their torts.

57. Under the U.C.C., a contract modification need NOT be supported by consideration to be enforceable, but it must be done in Agood faith
    to be enforceable.

58. Option-to-cancel clauses always render a contract illusory, since one party is NOT bound to the contract.

59. Most courts hold that an unliquidated debt CANNOT be compromised without new consideration.
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60. Generally, a court need NOT enforce ANY unconscionable contract or clause.

61. The only remedy for an unconscionable contract is to void the entire contract.

Chapter 12 – Capacity/Illegality (Multiple-Choice)
62.    To disaffirm a contract, the minor must act within a particular time period. In general the contract must be disaffirmed:
a. Before the          b. On the           c. Anytime after the           d. Anytime until a reasonable time e. Anytime until one year
  minor reaches          minor’s 18th        minor reaches                  after the minor reaches               after the minor reaches
  majority.              birthday.           majority.                      majority.                             majority.

63.    A minor buys a car, and continues to drive the car for a reasonable time after turning 18. This action would constitute a(n):
a. Express                  b. Implied                  c. Express ratification.  d. Implied                e. Constructive disaffirmance.
  disaffirmance.              disaffirmance.                                         ratification.

64.    In most states, if a minor disaffirms a contract for a non-necessity, then
a. The other party must        b. The minor must return all of c. The minor must pay for any                   d. A, B and C.    e. A and B only.
    return all of the               the consideration                 decrease in value to the
    consideration                   received from the other           consideration occurring while
    received from the               party, which the minor still      the minor had it.
    minor.                          has.

65.    Parental liability for the acts of their children is as follows. Generally, parents are
a. NOT liable for the        b. NOT liable for the             c. Liable for the contracts of their children   d. A, B and C.    e. A and B only.
contracts of their           torts of their children.          for necessaries not provided by the
children.                                                      parents.

66. In general, the laws of contractual capacity provide for the which of the following results?
    a. Married women have the same capacity to contract as anyone else.
    b. Incarcerated felons have the same capacity to contract as anyone else.
    c. Illegal aliens have the same capacity to contract as anyone else.
    d. All the above.
    e. None of the above.

67. Generally, the courts will not enforce illegal contracts, but there are some exceptions. Which of the following would be exceptions where
    the courts would enforce the contract?
    a. An innocent party is excusably ignorant of the fact of illegality.
    b. A person whom the statute was trying to protect attempts to enforce the contract.
    c. A person who used duress to get the other party to sign the contract attempts to enforce the contract.
    d. A and C only.
    e. A and B only.

68. If the courts find one part of a contract to be illegal, but the rest of the contract is legal and can be enforced without illegal clause, the
    courts are likely to:
    a. Refuse to enforce the entire contract as illegal.
    b. Enforce only the illegal clause.
    c. Enforce the contract without the illegal clause.
    d. Enforce the entire contract.
    e. A and B are equally likely.

69. In order for a contract to be unconscionable, it must be shown that:
    a. One party had severely unequal bargaining power.
    b. The dominant party unreasonably used its unequal bargaining power to obtain unfair terms.
    c. The submissive party had no reasonable alternative.
    d. A and C.
    e. B and C only.

70. If a contract or contract clause is found to be unconscionable, the courts can do which of the following?
    a. Refuse to enforce the contract.
    b. Refuse to enforce only the unconscionable portion.
    c. Limit the application of the unconscionable portion.
    d. A, B and C.
    e. B and C only.

Chapter 13 – Genuineness of Assent (Fill-In the Blank) (42-52)
42. A(n) _____ debt is one that is certain, fixed, ascertainable, agreed upon, and determinable.

43. A _____ _____ occurs when only ONE party is mistaken as to a material fact regarding the subject matter of the contract.

44. A _____ _____ occurs when BOTH parties are mistaken as to a material fact regarding the subject matter of the contract.

45. The essence of fraud is the _______ misrepresentation of a material fact.

46 Fraud in the _______ occurs when a person is persuaded to sign a document not knowing what is being signed.

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47. Fraud on the ______ occurs when a person is persuaded to enter into a contract based on fraudulent statements about the underlying
    transaction.

48. Fraud by ______ occurs when one party takes specific action to hide a material fact from the other party.

49. _____ occurs where one party threatens to do some wrongful act unless the other party enters into a contract.

50. _____ occurs when one person, in a confidential relationship, takes advantage of another person’s mental, emotional or physical
     weakness and unduly persuades that person to enter into a contract.

51. A ______ relationship is one in which one party owes a duty to the other party to always act in the best interests of that other party; it is a
    relationship of trust good faith and confidence.

51. ______ usually occurs when one party to a contract refuses to perform that contact unless the other party pays an increased price and
    the other party has no viable alternative.

Generally, d___ (11) involves physical force or threats, whereas u_____ i_____ (12) may involve psychological pressure from someone
close.

HOW MIGHT THE π RESPOND?
….if the Δ claims mutual mistake (2 possible responses)
….if the Δ claims misrepresentation/fraud/deceit (2 possible responses)
       silence IS NOT misrepresentation
       misrepresentation of law
….if the Δ claims the contract is unenforceable due to duress (1 response)
….if the Δ claims the contact is unenforceable due to undue influence (2 responses)

HOW MIGHT THE Δ RESPOND?
….if the π claims that silence IS NOT misrepresentation (4 possible responses)
….if the π claims that the misrepresentation was a misrepresentation of law (1 possible response), then how might the Δ respond

Chapter 13 – Genuiness of Assent (True-False) (71-83)
71. Generally, a unilateral mistake does NOT allow either party to rescind the contract.

72. Generally, mutual mistake does NOT allow either party to rescind the contract.

73. Generally, mistake in value does NOT allow for rescission.

74. A material fact is one that is either important or ancillary to the subject matter of the contract.

75. Generally, fraud-in-the-inception contracts are voidable, and fraud-in-the-inducement contracts are void.

76. Generally, silence is NOT a misrepresentation.

77. Generally, a misrepresentation of law is actionable, just like any other misrepresentation.

78. A contract between two parties in a fiduciary relationship, which unduly benefits the dominant party, is PRESUMED to have been made
    under undue influence.


Chapter 13 – Genuineness of Assent (Multiple-Choice)
79. Which of the following unilateral mistakes would allow for rescission by the mistaken party?
    a. If the other party knew or should have known of the mistake.
    b. If the unilateral mistake was because of a clerical or mathematical error.
    c. If the unilateral mistake is so serious that enforcement of the contract would be unconscionable.
    d. A, B and C.
    e. A and C only.

80. Which of the following statements, if made by a seller, would be misrepresentations of material fact for fraud cases?
    a. This horse is only 6 years old.                       c. The tires have less than 5,000 miles on them.@
    b. There is no better car anywhere for the money.           d. A and C only.
                       e. B and C only.

81. Generally, there is no duty to disclose facts. Which of the following, if any, are exceptions to this general rule. There is a duty to disclose
    if:
    a. A party asks a direct question.
    b. There is a defect which could cause death.
    c. There is a fiduciary duty.
    d. A, B and C.
    e. B and C only.

82. Which of the following statements are true regarding duress ?
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   a. Threats of blackmail or extortion constitute duress.
   b. The threatened party must prove that he/she had no reasonable alternative, but to enter into the contract.
   c. Creating a perilous economic situation and then exploiting it is never duress.
   d. A, B and C.
   e. A and B only.

83. Which of the following statements are true concerning Aundue influence?
    a. There must exist a fiduciary or confidential relationship between the parties.
    b. The trusted party must unduly benefit from the contract.
    c. If a fiduciary relationship exists, this proves an undue influence.
    d. A and C only.
    e. A and B only.


Chapter 14 – Writing and Contract Form (Fill-In the Blank) (53-59)

CISG p. 268
53. The exception to the Statute of Frauds which allows the enforcement of an oral promise to sell land if the buyer has taken possession of
    the land and/or paid for the land is called the _______ exception.

54. A contract entered into by the parties before their marriage to each other, which defines their ownership rights in each other’s property,
    especially upon their subsequent divorce, is called a(n) _______.

55. The rule requiring that the contract hiring an agent be in writing, if the acts to be done by the agent, if done by the principal, would be
    required to be in writing, is called the ____ ___ rule.

56. Under the Uniform Commercial Code Statute of Frauds provision, all contracts with a sales price of $ _____ or more must be in writing
    to be enforceable.

57. The rule prohibiting evidence of prior or contemporaneous oral agreements to be used to alter, contradict or add to a complete and final
    written contract is called the _____.

58. The exception to the Statute of Frauds which allows oral contracts (which otherwise should be in writing) to be enforced because one
    party induced the action of the other party, which was foreseeable, and injustice can be avoided only by enforcing the contract, is called
    the _____ doctrine.

59. A contract in which one person agrees to be responsible for the debts of another person is called a(n) ___ contract.

HOW MIGHT THE π RESPOND?
….if the Δ claims the contact (involving real property) violates the statute of frauds (3 responses)
….if the Δ claims the contact (involving a guaranty type of contract) violates the statute of frauds (1 response)
….if the Δ claims the contact (involving the UCC (goods ≥ $500)) violates the statute of frauds (1 response)
….if the Δ claims the contact (any type of contract) violates the statute of frauds (1response)
    ● contract is executed (vs. executory)
    ● promissory estoppel

HOW MIGHT THE Δ RESPOND?
….if the π argues promissory estoppel to the judge (3 possible responses)

HOW MIGHT A LITIGANT RESPOND IF THE OPPOSING PARTY WANTS TO EXCLUDE CERTAIN EVIDENCE DUE TO
THE PAROL EVIDENCE RULE? (5 possible responses)

???????
● SUFFICIENCY OF THE WRITING
● EQUAL DIGNITY RULE

Chapter 14 – Writing (Statute of Frauds) and Contract Form (True-False) (84-97)
84. The primary purpose of the Statute of Frauds is to punish people who perpetrate frauds using contracts.

85. For Statute of Frauds purposes, an “interest land” includes only the land itself and fixtures attached to the land.

86. The “part performance” exception to the Statute of Frauds would allow an oral contract for the transfer of land to be enforced if the buyer
    had taken possession of and/or paid for the land.

87. A “guaranty” contract is a contract in which one person agrees to pay the debts of another person, and it NEED NOT be in writing to be
    enforceable.

88. The “main purpose” or “leading object” exception allows an oral promise to pay the debts of another to be enforced, if the main purpose of
    that promise to pay is to benefit the person making that promise.

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89. The sufficiency of writing requirements of the Statute of Frauds requires that all contracts be reduced to a formal writing, which contains
    ALL terms agreed upon by the parties, and is signed by both parties, to be enforceable.

90. The Uniform Commercial Code (U.C.C.) provides that, under certain circumstances, a merchant may be liable on a written contract, even
    though that merchant has NOT signed it.

91. The Parol Evidence Rule prohibits any evidence outside the “four corners” of the written contract from being used to supplement or
    explain that contract.

Chapter 14 – Writing and Contract Form (Multiple-Choice)
92. An oral contract in which Sally agrees to work for Jane for the rest of Jane’s life is:
    a. A guaranty contract.
    b. Unenforceable under the Statute of Frauds because it cannot possibly be performed within one year.
    c. Enforceable under the Statute of Frauds.
    d. A and C only.
    e. A and B only.

93. The exception to the Statute of Frauds which allows an oral contract for the transfer of land to be enforced, if the buyer has either paid
    for the land or taken possession of the land, is called the _______ exception.
    a. Parole Evidence.
    b. Equal dignity.
    c. Promissory estoppel.
    d. Part performance.
    e. Novation.

94. In order to satisfy the Statute of Frauds sufficiency of writing requirement, generally a writing must:
    a. Be a formal, written document.
    b. Be any written memorandum containing the essentials terms of the parties’ agreements.
    c. Be signed by the party against whom enforcement is sought.
    d. A and C.
    e. B and C.

95. In interpreting written contracts:
    a. Ordinary words are given their ordinary meaning.
    b. Handwritten terms prevail over typed words, and typed words prevail over pre-printed word
    c. Ambiguities in the contract are resolved against the party who wrote the contract.
    d. A and B only.
    e. A, B and C.

96. Under the Parol Evidence Rule, which of the following items COULD BE used to interpret, explain or otherwise affect a complete and
    final written contract.
    a. Evidence of a prior oral agreement.                   c. Evidence to explain an unclear term or phrase.
    b. Evidence of a subsequent oral agreement.              d. A and C only.
                           e. B and C only.

97. Assuming the existence of complete and final written contract, the Parol Evidence Rule would PROHIBIT evidence of:
    a. Prior or contemporaneous oral statements that alter, contradict or add to the terms of the contract.
    b. Prior or contemporaneous oral statements that explain ambiguities in the contract.
    c. Subsequent oral statements that modify the contract.
    d. A and C.

Chapter 15 – Third-Party Rights (Fill-In the Blank) (60-74)
The three exceptions to the doctrine of privity are: _____ (8), _____ (9), and _____ (10).

60. The doctrine that states that, in general, only parties to a contract have enforceable rights under that contract is called the ______
    doctrine.

61. A(n) ______ beneficiary is a person to whom the contracting parties intended to give an enforceable contract right.



63. Before a third-party beneficiary may enforce contract rights, those rights must ________ in that beneficiary.

64. An agreement whereby one party transfers rights to receive some benefits under a contract is called a(n) _____.

65. The transfer of DUTIES under a contract is called a _____ of duties.

66. A clause in a contract which states that rights and duties under that contract can not be transferred to a third party is called a(n) ____
    clause.

In an assignment of rights, a ______ (16) (also called a _____ (17) OR a _____ (18) ) assigns to a _____ (19) his right to receive payments
from a _____ (20) (also called a ____ (21).

A owes B certain contractual duties. B assigns his contractual rights regarding A to C. A then refuses to perform in accordance with the

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contract with B. If C then sues A for breach of contract, NAME 7 affirmative defenses that A might use: ____ (22), ____ (23), ____ (24),
____ (25), ____( 26), ____ (27), ____ (28).

67. If an employer agrees to hire someone but only if he/she graduates from college, this contract would be subject to a condition ________.


SUCCESSIVE ASSIGNMENTS
On January 1, A assigns to B the right to receive dividends from stock that A owns in Bankerica. B pays A a lump sum of money in
return for the assignment. On January 5, B notifies Bankerica of the assignment.

On January 2, A assigns to C the same right to receive dividends from the same stock that A owns in Bankerica. C pays A a lump
sum of money in return for the assignment. On January 3, C notifies Bankerica of the assignment.

On January 3, A assigns to D the same right to receive dividends from the same stock that A owns in Bankerica. D pays A a lump
sum of money in return for the assignment, and B receives the Bankerica stock certificates from A. On January 4, D notifies
Bankerica of the assignment.
Under the _____ (29) rule, B has the legal right to the dividends.
Under the _____ (30) rule, C has the legal right to the dividends.
Under the _____ (31) rule, D has the legal right to the dividends.



DELEGATION
In an delegation of duties, a ______ (32) (also called a _____ (33) OR a _____ (34)) delegates to a _____ (35) his duty to perform for a
______ (36) (also called a ____ (37).


Rebecca owes Ian $5,000. Ian needs money in a hurry so he assigns his right to collect from Rebecca to Janet for $4,000. Several days
later Ian also assigns this same right to collect to Kristin for $4,500. Ian then absconds with the $8,500 and cannot be located. Kristin is the
first to notify Rebecca of the assignment.
Use the following answers for questions 5-7.
a) only Janet. c) Janet half and Kristen half.                        e) NOT APPLICABLE
b) only Kristin. d) neither Janet nor Kristen, since debts are not assignable.

Under the AMERICAN rule, whom should Rebecca pay?
Under the ENGLISH rule, whom should Rebecca pay?
Under the TANGIBLE TOKEN rule, whom should Rebecca pay?

Chapter 15 – Discharge (Fill-In the Blank) (60-74)
62. A contract in which Debra agrees to assume Kent‟s already existing debt, thereby discharging Kent with the consent of Kent‟s original
    lender, is called a(n) _______.


68. If a contract for the construction of a factory contains a clause stating that the contract must be performed to the buyer‟s satisfaction, the
    satisfaction test which will be used is the _____ test.

69. A contract providing for the automatic excusing of performance upon the occurrence of a specified event is a contract ______.

70. Two parties enter into a contract whereby one party agrees to transport firearms from one state to another. Later, the Congress passes a
    law making such transportation of firearms illegal. The transporter in this case will be excused from performance because of the doctrine
    of ____.

71. If the parties to a contract enter into a second contract which discharges and replaces the first contract, the second contract is called a(n)
    __.

72. _______ occurs when both parties to a contract agree to cancel that contract.

73. A contract in which Jeff promises that if George ever gets sued and is held liable, Jeff will pay the amount of the recovery is called a(n)
    _____ agreement.

74. A contract which calls for a particular artist to paint a portrait, without substituting another artist, is called a (an) _____ contract.




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                       A                                                    B
    BEFORE Assignment                                     CREDITOR (owed $ by B)
 DEBTOR (owes $ to B)                                      obligee(A obligated to pay B)
  obligor(obligated to pay B)                             promissee (promised $ by A)
  promissor (promised to pay B)


    AFTER Assignment
 DEBTOR (owes $ to C)
  obligor   (obligated to pay C)
                                                                  ASSIGNMENT




                                                           C
                                                  AFTER Assignment
                                                      ASSIGNEE
                                     new    obligee (A obligated to pay C not B)
                                                 unless…notice problem




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NUMBERING FOR THE FOLLOWING TRUE-FALSE/MULTIPLE-CHOICE
QUESTIONS RE-STARTS AT #1 ON A SCANTRON CARD


Chapter 15 – Third-Party Rights (True-False)
1. A donee beneficiary is someone who obtains rights under a contract by giving valuable consideration for those rights.

2. A creditor beneficiary would include a loan company who loaned money to Sam to buy a new car, which Sam then sold to Betty, who
   promised to pay off the loan.

3. In general, an incidental beneficiary has no enforceable contract rights, because he/she was not intended to have such rights.

Tom‟s grandmother signs a will leaving Tom $20,000. Tom then assigns to Chuck the right to receive this inheritance.

Bill sues Joe for injuries Bill suffered in an accident caused by Joe. Bill then assigns to Jim Bill‟s right to sue Joe.
Tom sues Bob for breach of contract. Tom assigns to Jane the right to collect on the contract..

Chapter 15 – Third-Party Rights (Multiple-Choice)
In an ASSIGNMENT situation, the debtor is also called a:
a) obligor. b) obligee. c) assignor. d) assignee.   e) TWO of the above.

In an ASSIGNMENT situation, the creditor is also called a:
a) obligor. b) obligee. c) assignor. d) assignee.    e) TWO of the above.

In an ASSIGNMENT situation, the assignor is also called a:
a) obligor. b) obligee. c) debtor. d) creditor. e) TWO of the above.

The EXCEPTIONS to the doctrine of privity are:
a) incidental beneficiaries. b) mistake c) minors.      d) Statute of Frauds.     e) NONE of the above.

The EXCEPTIONS to the doctrine of privity are:
a) incidental beneficiaries. c) creditor beneficiaries..         e) NONE of the above.
b) donee beneficiaries.      d) TWO of the above.

10. In general, contract rights MAY be assigned. Which of the following types of contract may NOT be assigned?
    a. Personal service contracts.
    b. assignments of future rights contracts.
    c. Contracts for the sale of goods.
    d. A and C only.
    e. A and B only.

11. A contract contains a clause that states “no part of this contract may be assigned or delegated”.
    a. Generally, this clause is unenforceable.
    b. Generally, this clause is enforceable.
    c. Some courts would rule that if the duty is totally impersonal, such as the payment of money, the clause would be unenforceable
    d. A and C only.
    e. B and C only.

12. A lease has a clause which states that the lease CANNOT be assigned without the landlord’s consent.
    a. Generally, this clause is unenforceable.
    b. Generally, this clause is enforceable.
    c. Some states require that the landlord act reasonably in denying his/her consent.
    c. A and C only.

Husband buys a life insurance policy with his wife as sole beneficiary. When husband dies, the insurance company refuses to pay. What
result?
a) The wife cannot sue, because she was not a party to the contract and does not have privity..
b) The wife cannot sue, because she does not have an insurable interest in her husband.
c) The wife can sue, because she was a party to the contract and does have privity.
d) The wife can sue, because she is a third-party beneficiary and does not need to have privity.


Chapter 15 – Discharge (True-False) (1-16)
4. A “tender of performance” is an offer to fully perform the contract, which fully discharges that party’s obligations under the contract.

5. For a condition to be enforceable, it must be an express condition.

6. A contract CANNOT provide for the satisfaction of a third party, such as an engineer or architect.

7. Impossibility, which excuses performance of a contract, is measured subjectively rather than objectively.
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8. The doctrines of commercial impracticality and frustration of purpose apply only to UNFORESEEABLE events.

9. The major difference between a novation and a substituted contract is that a novation substitutes a third party in place of one of the
   original parties.


Chapter 15 – Discharge of Contractual Obligation (Multiple-Choice)
13. Conditions can be only:
a. Precedent.          b. Subsequent.              c. Precedent or subsequent.              d. Precedent, subsequent or concurrent.

14. Contract conditions may come into existence in which of the following ways?
a. By being expressed.       b. By being implied-in-fact.      c. By being implied-in-law.            d. A, B and C.      e. A and C only.

15. Which of the following events is (are) generally considered to render a contract impossible to perform?
a. Death or incapacity of     b. Destruction of the contract    c. Difficulty of performance.    d. A, B and C.           e. A and B only.
the promisor.                 subject matter.


16.Which of the following events would probably excuse performance of a contract because of commercial impracticality?
    a. The price of the commodity increases slightly so that the contract will not be as profitable.
    b. There is an unforeseeable trade embargo causing commodity prices to triple.
    c. The promisor of a personal service contract dies.
    d. The subject matter of the contract is destroyed by fire.
    e. The contract contains a time-is-of-the-essence clause.

Ferdinand Picasso contracts with the President to paint the president‟s portrait. When the time comes to begin painting, Picasso falls ill and
instead sends Joan Miro to paint the portrait. Under what conditions must the president accept Miro to paint the portrait?
a) If Picasso notified the President that Miro would paint the portrait instead of Picasso.
b) Under NO conditions must the President accept Miro as the painter.
c) The President must accept Miro, because Picasso assigned his contract rights to Miro.
d) TWO of the above.

Assume that the players on the Washington Nationals team breach their contract by refusing to play the remainder of the games in the
season. A restaurant located near the stadium where the games would have been played, sues the players for damages resulting from loss
of business. What result?
a) The restaurant loses due to public policy.
b) The restaurant loses because it is an only an incidental beneficiary.
c) The restaurant wins as a third-party beneficiary.
d) The restaurant wins under promissory estoppel.



Chapter 16 – Remedies (Fill-In the Blank) (75-84)
75. If a party does NOT commence a lawsuit within the time provided by the _____ _ _____, the lawsuit will be forever barred.

76. A(n) ____ ____ occurs when one party to a contract informs the other party, before performance is due, that he/she will not perform the
    contract.

77. _______ damages are intended to place the aggrieved party in the same position as if the contract had not been breached.

78. ________ damages are foreseeable damages arising from circumstances outside the contract.

79. ________ damages are estimated damages made before the contract is breached.

80. ________ damages are damages awarded to punish the wrongdoer and discourage similar behavior in others.

81. The term used to describe a situation where the contract is canceled and both parties return the consideration each has received,
    restoring both parties to their pre-contract positions, is called ________.

82. A(n) _______ is an order of the court prohibiting someone from doing something.

83. A writ of ________ is a court order requiring third parties who hold certain property of a breaching party to give it to the nonbreaching
    party; it is often used to attach wages.

85. A tort of _________ can arise if a third person induces a party to breach an existing contract.

84. A(n) _________ is a contract provision excluding money damages or other remedies as to one party.

_____ (38) and _____ (39) describe a situation where the contract is canceled and both parties are returned to the s_____ q__ a____ (40),
restoring both parties to their pre-contract positions.


P____ (41) damages may be appropriate in torts cases, but are NOT available to an injured party as a remedy for a breach of contract action.

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A ____ (42) breach allows the injured party to terminate the contract, while ____ (43) breach permits an injured party to only sue for
damages.


The purpose of damages as a legal remedy is to return the injured party to the s___ q__ a___ (44).


SYNONYM: mitigate (45).

Chapter 16 -- Remedies (True-False) (17-30)
17. Punitive damages is a doctrine awarded when the aggrieved party suffered no financial loss; often the amount is $1.

18. Mitigation of damages is a DOCTRINE which forces the aggrieved party to minimize his/her financial loss resulting from a breach of
    contract.

19. Equitable remedies are available only if there is not an adequate legal remedy available.

20. Equity is never granted in contract cases; it is a tort remedy.

21. Specific performance is ALWAYS available as a remedy in contracts for the sale of land.

23. Reformation is an equitable doctrine that permits a person to recover compensation for services even though no enforceable contract
    exists between the parties.

24. A party who recovers for breach of contract on a particular contract, can never recover tort damages related to that same contract.

Chapter 16 -- Remedies (Multiple-Choice)

25. Lost profits are:                                                    28. In which of the following cases of breach of contract would
    a. Generally allowed as consequential damages.                           specific performance NOT be available as a remedy?
    b. Generally NOT allowed as consequential damages.                       a. A contract for the sale of land.
    c. Allowed only if they are not speculative.                             b. A contract for the sale of a unique painting.
    d. A and C only.                                                         c. A contract for painting a barn.
    d. B and C only.                                                         d. A contract for performing a concert.
                                                                             e. C and D only.
26. The primary purpose(s) of punitive damages is (are) to:
    a. Compensate the injured party for losses suffered.                 29. Which of the following is NOT required for a recovery under the
    b. Punish the wrongdoer for his/her act.                                  quasi-contract doctrine?
    c. Discourage others from doing similar acts.                            a. An enforceable contract.
    d. A and B only.                                                         b. An unjust enrichment.
    e. B and C only.                                                         c. One party rendering valuable services or materials which
                                                                                 confers a benefit on another party.
27. Which of the following are NOT equitable remedies?                       d. An expectation of getting paid.
    a. Specific performance.                                                 e. Neither A nor D are required.
    b. Money damages.
    c. Reformation.                                                      30. Which of the following elements is NOT REQUIRED to
    d. Injunctions.                                                          establish the tort of international interference with contractual
    e. Quantum meruit.                                                       relations?
                                                                             a. A showing of bad faith.
                                                                             b. A valid contract between contracting parties.
                                                                             c. A third party with knowledge of the contract.
                                                                             d. That third party intentionally inducing one of the
                                                                                   contracting parties to breach that contract.
                                                                             e. Neither A nor C are require




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                                     PROJECT 4

                               (GRAPHIC ORGANIZERS)
                       Uni-lateral Contracts vs. Bi-lateral Contracts
                     AGENT     PRINCIPAL
fully disclosed     NOT liable   liable
partially disclosed   liable     liable
un-disclosefd         liable     liable




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                                                               QUIZ 30A
                                                                 AGENCY

FILL-IN-THE BLANK
The duty of ____ (1) involves keeping records and using the other party’s property only in an authorized manner.

The duty of ____ (2) involves meeting contractual duties with a standard of reasonable care.

The duty of ____ (3) involves informing the other party of important information relevant to the agency relationship.

The duty of ____ (4) involves a fiduciary duty to act in the best interests of the other party.

The duty of _____ (5) involves following the instructions of the other party.

The duty of _____ (6) involves one party repaying the other party for expenses incurred in carrying out the agency.

The duty of _____ (7) involves one party recovering any loss from liability suffered as a result of carrying out the activities of the other party.

The duty of _____ (8) involves assisting the other party in performing the activities of the agency.

The duty of _____ (9) involves one party paying for the services of the other party.

LEAVE #10 BLANK

NAME
11)   NAME an agency relationship listed in the text that is generally prohibited by law.
12) With the exception of doctors, dentists, consultants, stockbrokers, architects, CPA’s, real estate brokers, and plumbers, NAME
    another occupation can be considered to be an independent contractor.

13)   NAME an activity that is so dangerous that a court construed an independent contractor to be an agent and held the principal liable
      for any activity by the agent that caused harm.

14)   NAME an activity that may be performed by an independent contractor, but for which the courts will hold the principal strictly liable.
15) The term master-servant is said to be anachronistic.      NAME another term that may be said to be anachronistic.
16) In addition to salesperson, business executive, employer, partner, attorney, NAME another agency type of relationship.

The Restatement (Second) of Agency defines an agency as a _____ (17) relationship.

Another name for apparent agency is _____ ______ (18).

A second name for apparent agency is _____ __ ______ (19).

The other doctrine or concept we have encountered that is analogous to apparent agency is ______ _______ (20).

Offeree IS TO rejection as agent IS TO _______ (21). Offeror IS TO principal as _____ (22) IS TO agent.

Termination of an agency relationship resulting from lapse of time is a category of termination by __ _ _ (23).

Termination of an agency relationship resulting from insanity is a category of termination by ____ _ ___ (25).

When an agent terminates an agency relationship, it is called ________ (26).

When a principal terminates an agency relationship, it is called ________ (27).

_______ (28) notice is sufficient for third parties who have NOT dealt with the agent.

A special type of irrevocable agency relationship is called an ____ ____ ___ __ _____ (29) and is commonly used in agreements in loans
given by the _____ (30) (agent/principal) to the _______ (31) (agent/principal).

Intentional misrepresentation is also known as ______ (32) or ______ (33).
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A principal who hires an unqualified or knowingly dangerous person as an I.C. is liable for _____ _____ (34).

Referring to an “ostensible” agency, the term ostensible means _________ (35).

Certain types of agents, for example, real estate brokers, lawyers, and commissioned salespersons may perform their services on a
__________ _____ (36) basis under which arrangement the agent is paid only if the objective is achieved.

A _______ (37) gives an agent the power to sign legal documents on behalf of the principal. This kind of agent is called a(n) _____ (38),
even though he does NOT have to be a lawyer.

Agency contracts can be either oral or written unless _____ (39) stipulates that it must be written.

An agent cannot _____ (40) an opportunity that properly belongs to his principal.

Most information learned by an agent in the course of he agency is ______ (41) to the principal. This means the principal is assumed to
know what the agent knows.

Both agents for hire and _____ (42) agents have a duty to obey the lawful instructions of the principal.

If a third party (X) sues a principal for the negligence of a principal’s employee, the principal will offer ______ (43) as a defense, to which
X’s response will be ______ (44), which is based on the theory of _____ (45) liability.

If a third party (X) sues a principal (P) for breach of a contract signed by his agent, P’s defense will be _____ (46), to which X’s response will
be ______ (47).




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                                                               QUIZ 30B
                                                                 AGENCY
                                                                      Chs. 29-30



TRUE-FALSE
1)   An agent is contractually responsible if he enters into a contract on behalf of the principal if he lacks or exceeds the scope of authority.

2)   Even though some who lacks contractual capacity may NOT act as an agent, he/she may act as a principal.

3)   Agency contracts that are created for illegal purposes are voidable by the innocent party.

4)   An employee is generally NOT an agent.

5)   According to the Statute of Frauds, some express agencies must be in writing.

6)   An express agency may be accompanied by implied or apparent authority to act on the principal’s behalf.

7)    A principal may recover damages from the principal if the principal employs another agent.

8)   An duly constituted agent must obey a principal’s instructions even if the instructions involve unethical, but NOT criminal conduct.

9)   An agent has NO flexibility to use his best judgment in carrying out his activities.

10) The extent of an agent’s authority may be implied from the circumstances of the agency.

11) In obtaining a franchise, a principal-agent relationship is created between franchisee and franchiser.

12) Most agency contracts are revocable, but some are irrevocable.

13) A principal is liable for intentional misrepresentation, but NOT for innocent misrepresentation.

14) Agents for hire have a duty to obey the principal’s instructions, but gratuitous agents NEED NOT.

15) An agent’s contract on behalf of a principal is enforceable, even if the principal has been adjudged insane.

16) An agent renounces his authority from his principal, while a principal revokes his authority to his agent.

17) An agent is NOT liable for his own tortious conduct.

18) An agent is NOT liable for the tortious conduct of the principal.

19) The principal may still be liable to a third party even if the frolic as minor.

20) The principal is liable to a third party for injuries cause by his agent on the way to work, but NOT on the way from work.

21) The principal is liable to a third party in cases where the agent takes a frolic, but NOT where the agent takes a detour.

22) The principal is liable to a third party for injuries caused by his agent when his agent is on a dual mission.

23) Vicarious liability applies to negligence through respondeat superior, but NOT to intentional torts.

24) The marketing strategy of the Howard Johnson Company led to a finding of apparent agency between Howard Johnson and its
        franchisee.

25) A principal has NO duty to pay a gratuitous agent.




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MULTIPLE-CHOICE
26) The general reference for the rules of agency is the:
     a) common law. b) Restatement of Agency. c) state statutes. d) UCC. e) NONE OF THE ABOVE.

27) The Restatement (Second) of Agency defines an agency as a _____ relationship.
     a) fiduciary       b) master-servant            c) employment                  d) ?????               e) ?????

28) The term ―authority‖ is associated with:
     a) third parties. b) employee.             c) independent contractor.                 d) principal.         e) NONE OF THE ABOVE.

29) There are generally three kinds of employment relationships. Which of the choices below is NOT a kind of employment
    relationship.
     a) employer-employee.                           d) principal-independent contractor.
     b) agent-independent contractor.                e) ALL OF THE ABOVE are employment relationships.
     c) principal-agent.

30) The crucial factor in determining whether a person is an independent contractor or an employee is:
     a) how dangerous is the activity.                                  d) whether the principal has contractual capacity.
     b) the degree of skill needed to complete the task.                e) NONE OF THE ABOVE.
     c) whether the activity has a lawful purpose.

31) Which of the following represents a increasing degree of connection/relationship to the principal?
     a) independent contractor; agent; employee.                            d) agent; employee; independent contractor.
     b) agent; independent contractor; employee.                        e) employee; independent contractor; agent.
     c) independent contractor; employee; agent.

32) Which of the following is NOT a type of power of attorney?
     a) attorney-in-fact           b) special             c) general                d) NONE OF THE ABOVE.              e) ALL OF THE ABOVE.

33) An implied agency may be created by all of the following, EXCEPT:
     a) industry custom.                                  d) an oral agreement.
     b) prior dealing between the parties.                e) ALL OF THE ABOVE create an implied agency.
     c) acts necessary to the agent‟s duties.


34) A principal is NOT involved in creating what kind of agency:
     a) an express agency.             d) agency by ratification.
     b) implied agency.            e) ALL of the above can be created by a principal.
     c) an apparent agency.

35) Another name for apparent agency is:
     a) agency by ratification.                      c) agency by estoppel.
     b) agency by constructive notice.               d) agency coupled with an interest.

36) Who can create an apparent agency?
     a) a third party   b) an agent.            c) a principal.         d) TWO of the above                e) NONE of the above.

37) Who is involve in creating an agency by ratification
     a) a third party. b) an agent.             c) a principal.         d) TWO of the above.               e) NONE of the above.

38) The following will terminate an agency relationship:
     a) a principal‟s bankruptcy.                    d) TWO of the above.
     b) an agent‟s bankruptcy.                       e) ALL of the above.
     c) a principal‟s financial difficulties.

39) The following constitutes a termination due to impossibility to fulfill the objectives of the agency
     a) changed circumstances.                                    d) a change in the law.
     b) loss or destruction of the subject matter.                e) ALL of the above constitute termination.
     c) loss of required qualification.

40) The term revocation relates to:
    a) a third party. b) an agent.      c) a principal.           d) contract liability.       e) NONE of the above.

41) The term renunciation relates to:
    a) a third party. b) an agent. c) a principal.                d) contract liability.          e) NONE of the above.

42) An agent operating in a rural area would be held to the same standard of care, skill, and diligence as an agent in the same:
    a) occupation. b) circumstances. c) locality.         d) TWO of the above.           e) ALL of the above.




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43) Imputed knowledge is a part of what cause of action?
      a) breach of duty of compensation             d) breach of duty of reimbursement
      b) breach of duty of obedience                e) NONE of the above.
      c) breach of duty of accountability

44) Knowledge is imputed from the:
      a) agent to the principal.               d) agent to the third party.
      b) principal to the agent.               e) third party to the principal.
      c) third party to the agent.

45) If a principal’s instructions are unclear or confusing, an agent may:
          a) use his best judgment.                      d) seek clearer directions.
          b) deviate from principal’s instructions. e) ALL of the above.
          c) act in good faith.

46) A constructive trust may arise an issue in which of the following:
    a) duty of compensation.     b) duty of cooperation.       c) duty of obedience.      d) duty of loyalty.   e) NONE of the above.

47) Whether an agent is a gratuitous agent may be in issue in which of the following
    a) duty of performance b) duty of compensation      c) duty of loyalty   d) duty of obedience               e) TWO of the above.

48) If the principal and agent have NOT agreed on compensation, the principal must pay:
      a) the reasonable value of the agent‟s services.              d) the customary fee paid in the industry.
      b) principal need NOT pay the agent at all.                   e) TWO of the above.
      c) a contingency fee.

49) A principal owes a duty to reimburse an agent, if the expenses were:
      a) outside the scope of the agency.                         d) authorized by a third party.
      b) authorized by the principal.                         e) ALL of the above.
      c) necessary to discharge the agent‟s duties.

50) Indemnification may become an issue in which situation?
      a) a fully disclosed agency.             d) in TWO of the above situations.
      b) a partially disclosed agency          e) in NONE of the above situations.
      c) an undisclosed agency.

51) An agent is contractually liable in which situation
      a) a fully disclosed agency.             d) the agent is liable in TWO of the above situations.
      b) a partially disclosed agency          e) the agent is liable in NONE of the above situations.
      c) an undisclosed agency.

52) An principal is contractually liable in which situation
      a) a fully disclosed agency.             d) the principal is liable in TWO of the above situations.
      b) a partially disclosed agency          e) the principal is liable in ALL of the above situations.
      c) an undisclosed agency.

53) Which of the following would constitute a fully disclosed agency?
      a) s/Allison Adams, agent for Peter Perceival.                d) ALL of the above.
      b) s/Peter Perceival, by Allison Adams, agent.                e) NONE of the above.
      c) s/Peter Perceival, by Allison Adams.

54) Which of the following would constitute a partially disclosed agency?
    a) s/Allison Adams, agent for Peter Perceival.           d) s/Allison Adams, agent.
    b) s/Peter Perceival, by Allison Adams, agent.           e) s/Allison Adams.
    c) s/Peter Perceival, by Allison Adams.

55) Which of the following would constitute an undisclosed agency?
    a) s/Allison Adams, agent for Peter Perceival.        d) s/Allison Adams, agent.
    b) s/Peter Perceival, by Allison Adams, agent.        e) s/Allison Adams.
    c) s/Peter Perceival, by Allison Adams.

56) Which of the following statements is NOT true:
    a) a principal is liable for his own tortious conduct.               c) a principal is liable for his agent‟s tortious conduct.
    b) an agent is liable for his own tortious conduct.                  d) an agent is liable for his principal‟s tortious conduct.
                        e) ALL of the above can be true.




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57) Intentional misrepresentation occurs when:
     a) a principal makes untrue statements to an agent.                         c) a principal makes untrue statements to a third party.
     b) an agent makes untrue statements to his principal.                       d) an agent makes untrue statements to a third party.
                      e) TWO of the above.

58) Respondeat superior pertains to:
     a) employees.          b) agents.        .c) independent contractors.            d) TWO of the above            e) ALL of the above.

59) Respondeat superior pertains to:
     a) contracts.   b) torts.           c) agency.           d) TWO of the above.                e) ALL of the above.

60) The motivation test is applied to:
     a) contracts.          b) intentional torts. c) unintentional torts.        d) ALL of the above.        e) NONE of the above.

61) The work-related test is applied to:
     a) contracts.   b) intentional torts.         c) unintentional torts.            d) ALL of the above.        e) NONE of the above.

62) Which of the following is NOT true:
     a) a principal is NOT liable for the intentional torts of agents committed outside the scope of the agency.
     b) a principal is NOT liable for the intentional torts of agents committed within the scope of the agency.
     c) an agent is NOT liable for his intentional torts committed outside the scope of the agency.
     d) an agent is NOT liable for his intentional torts committed within the scope of the agency.

63) Whether an agent‟s tortious activity is outside the scope of the agency is determined by:
     a) the coming and going rule.        c) the motivation test.
     b) the respondeat superior rule.           d) the scope of authority test.
                              e) the frolic and detour test.
64) A principal is NOT liable for the torts of its independent contractor (I.C.), unless:
     a) the activity is a strict liability activity.
     b) the principal did NOT control the means by which the results of the I.C. are accomplished.
     c) the I.C. is a professional.
     d) the I.C. is really an agent.
     e) the principal authorized the I.C.’s activity.

65) An agent can be held personally liable, even if conducting the principal‟s business, if he (the agent):
     a) engages in a crime.      b) is a partially disclosed agent.      c) is an undisclosed agent.    d) TWO of the above. e) NONE of the
          above.


           SKIP 66-68
      COA                               A/D         R                          COA                               A/D        R
Breach of Duty


Breach of Contract      X        P       69           85                     Negligence           X          P      77         03
Breach of Contract      P        X       70           86                     Negligence           P          X      78         94
Breach of Contract      X        A       71           87                     Negligence           X          A      79         95
Breach of Contract      A        X       72           88                     Negligence           A          X      80         96
Misrepresentation       X        P       73           89                     Intentional Tort     X          P      81         97
Misrepresentation       P        X       74           90                     Intentional Tort     P          X      82         98
Misrepresentation       X        A       75           01                     Intentional Tort     X          A      83         99
Misrepresentation       A        X       76           02                     Intentional Tort     A          X      84         100

Affirmative Defense
a) NO privity.       b) NO causation.         c) agency. d) respondeat superior. e) NOT relevant to Project 4.
Response
a) NO privity.       b) third-party beneficiary.      c) agency. d) respondeat superior. e) NONE of the above.


SHORT ANSWER
79) Compare and contrast reimbursement and indemnification?

80) Compare and contrast implied authority and incidental authority?

81) What previously encountered concept or doctrine is similar to enforcing an agent’s contract on behalf of an insane principal?




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