LAW 531 Final Exam 51 answers highlighted in green and underlined 1 Under the Anti-Cybersquatting Consumer Protection Act, which of the following is true? Penalties are imposed for obtaining any domain name that infringes on a valid trademark.Domain names are granted only after ensuring that they do not infringe on a valid existing trademark. A plaintiff must show that the defendant acted in bad faith in order to recover. Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity’s name. 2 The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring: That mergers be allowed if United States competitiveness in world markets is improved. That failing companies are rescued through mergers whenever possible. That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms. That certain activities are classified as per se violations. 3 The landlord has the right to enter the leased premises: To make necessary repairs Only if specifically provided in the lease To inspect for waste To inspect for illegal use 4 Which for of real property ownership includes the greatest degree of ownership? Fee simple defeasible Fee simple limitless Absolute life estate Fee simple absolute 5 A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as; The public use doctrine The fair use doctrine The bar to patents doctrine The public service doctrine 6 This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case. Mini-trial Fact-finding Judicial referee Conciliation 7 Which of the following is a distinguishing feature of a common law legal system? The making of law by the judges and the following of precedent Requiring guilt be proven beyond a reasonable doubt An appeal process The sole source of law is a comprehensive civil code 8 The Sarbanes-Oxley Act was enacted as the result of: The failure of the savings and loans in the 1980s. The high profile accounting fraud cases in the 1990s and early 2000s. The terrorist attacks of Sept 11, 2001. The collapse of the housing market in the late 2000s. 9 Which of the following is true about sexual harassment in the workplace? Sexual harassment claims require that persons of both genders be involved. If a supervisor approaches someone and asks the person out for a social date, and if the supervisor acts in a socially customary manner, it will not be sexual harassment. Sexual harassment is covered under OSHA as part of workplace safety. The standards for a hostile work environment are extremely vague and depend on all the facts and circumstances. 10 Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute? ...

1. LAW 531 Final Exam 51 answers highlighted in green and
underlined
1 Under the Anti-Cybersquatting Consumer Protection Act,
which of the following is true?
Penalties are imposed for obtaining any domain name that
infringes on a valid trademark.Domain
names are granted only after ensuring that they do not infringe
on a valid existing trademark.
A plaintiff must show that the defendant acted in bad faith in
order to recover.
Prior approval by the affected celebrity is needed to obtain a
domain name that is similar to a celebrity’s name.
2 The Hart-Scott-Rodino Antitrust Improvement Act led to rules
requiring:
That mergers be allowed if United States competitiveness in
world markets is improved.
That failing companies are rescued through mergers whenever
possible.
That the Federal Trade Commission and the Justice Department
be notified in advance of any merger involving certain firms.
That certain activities are classified as per se violations.
3 The landlord has the right to enter the leased premises:
To make necessary repairs

2. Only if specifically provided in the lease
To inspect for waste
To inspect for illegal use
4 Which for of real property ownership includes the greatest
degree of ownership?
Fee simple defeasible
Fee simple limitless
Absolute life estate
Fee simple absolute
5 A doctrine that says a patent may not be granted if the
invention was used by the public for more than a certain period
of time prior to the filing of the patent application is known as;
The public use doctrine
The fair use doctrine
The bar to patents doctrine
The public service doctrine
6 This form of alternative dispute resolution allows both parties
to see the strengths and weaknesses of both sides of the case.
Mini-trial
Fact-finding

3. Judicial referee
Conciliation
7 Which of the following is a distinguishing feature of a
common law legal system?
The making of law by the judges and the following of precedent
Requiring guilt be proven beyond a reasonable doubt
An appeal process
The sole source of law is a comprehensive civil code
8 The Sarbanes-Oxley Act was enacted as the result of:
The failure of the savings and loans in the 1980s.
The high profile accounting fraud cases in the 1990s and early
2000s.
The terrorist attacks of Sept 11, 2001.
The collapse of the housing market in the late 2000s.
9 Which of the following is true about sexual harassment in the
workplace?
Sexual harassment claims require that persons of both genders
be involved.
If a supervisor approaches someone and asks the person out for
a social date, and if the supervisor acts in a socially customary
manner, it will not be sexual harassment.

4. Sexual harassment is covered under OSHA as part of workplace
safety.
The standards for a hostile work environment are extremely
vague and depend on all the facts and circumstances.
10 Which form of alternative dispute resolution occurs when the
parties choose an impartial third party to hear and decide their
dispute?
Arbitration
Minitrial
Mediation
Conciliation
11 According to Sarbanes-Oxley, this person or people should
sign the Federal income tax return of a corporation:
Board of Directors
Chief Executive Officer
Head of the accounting firm that prepares the corporation’s tax
returns.
Chief Executive Officer and Chief Financial Officer
12 Edward’s Warehouse stores a variety of generic goods for
several distributors in Anytown. Which of the following
describes Edward’s liability for the bailed goods should
something happen to them?

5. Comparative liability.
Criminal liability.
Ordinary negligence
Strict liability.
13 The tort of palming off involves:
Making false statements about the goods of another
Failing to credit another for that other person’s legal
accomplishments
Representing one’s own goods to be those of a competitor
Knowingly selling goods that are defective.
14 If an LLC fails to follow formalities such as keeping
minutes of meetings, then which of the following is true?
Only the managers of a manager-managed LLC will lose limited
liability.
This failure will not result in imposing personal liability on any
member.
All members will lose their limited liability.
Only the parties responsible for the failure will lose limited
liability.
15 If a plaintiff voluntarily enters into or participates into a risk
activity that results in injury, what is the most likely defense
that he or she may use to a defendant’s claim that the plaintiff

6. assumed the risk?
Defendant assumed the risk under the “danger invites rescue”
doctrine
Comparative negligence
Defendant was negligent per se
Contributory negligence
16 Barry buys a new sports car. The car sits low to the ground
and because of the styling visibility to the rear is limited. About
a month after Barry buys the car, he backs over his pet poodle
as he is leaving for work. In his strict liability suit against the
car manufacturer, Barry will:
Win on the basis of design defect
Lose because he assumed the risk of backing up in a car when
he could not see to the rear.
Win because driving a sports car is an inherently dangerous
activity
Win on the basis of packaging defect because the car could have
been packaged in a differently styled body.
17 If there is an area of interstate commerce that the federal
government has not chosen to regulate, the states can:
Not regulate in that area because states cannot pass laws
affecting interstate commerce.
Regulate without restriction in that area.

7. Regulate in that area so long as the state law does not
undulyburden interstate commerce.
Regulate in that area so long as it first gets the requisite
approval from Congress.
18 The legal effect of the presence of a superseding event is
that:
The burden of proof shifts from the plaintiff to the defendant
Intent must be proven in addition to elements of negligence
The plaintiff and defendant will share liability
The defendant is not liable even if the plaintiff has proved all
the elements of negligence.
19 John is president and sole shareholder of Photo, Inc. Photo,
Inc. wishes to borrow money, but to do so, the bank requires
John to orally guarantee to repay the loan if Photo, Inc. cannot.
John’s guaranty to repay is:
Enforceable, because the main purpose of the loan and the
guarantee was to benefit John.
Unenforceable, because in general, guaranty contracts need to
be in writing.
Unenforceable, because John did not sign any agreement.
Enforceable, because in general, guaranty contracts do not need
to be in writing.
20 The major disadvantage of a sole proprietorship is:

8. The unlimited liability for the business’ debts.
The difficulty in transferring ownership to others.
The sharing of management authority with others.
The difficulty and cost of formation.
21 Sam sells property to Betty and delivers Betty a deed that
says"This property is conveyed to Betty so long as she never
operates a bar on the premises.” If she operates a bar on the
premises, Sam Seller may take possession of the property. The
type of interest that Betty Buyer has acquired is a:
Fee simple absolute
Fee simple defeasible
Fee simple remainder
Fee simple limited
22________ is a form of alternative dispute resolution that is
often used when the parties involved do not want to face one
another.
Fact-finding
Negotiation
Mini-trial
Conciliation
23 Which of the following statutes provides that it is legal for
employees to organize a union?

9. The Worker Adjustment and Retraining Notification Act
The Labor-Management Relations Act
The Norris-LaGuardia Act
The National Labor Relations Act
24 Which of the following is true when someone accidentally
makes an improvement to the personal property of another
where the owner was unaware of the improvement until after
ithad been made?
The party who made the improvement can remove it if this is
possible, otherwise the owner of the property gets to keep the
improvement and must pay the party who improved it the
reasonable value of the improvement.
The property owner gets to keep the improvement in all
circumstances and is not required to pay for it.
The party who made the improvement can remove it if this is
possible, otherwise the owner of the property gets to keep the
improvement and is not required to pay for it.
The property owner gets to keep the improvement in all cases,
but must pay the party who improved it the reasonable value of
the improvement.
25 Which is true about the two kinds of discrimination that are
actionable under Title VII?
Disparate impact and disparate treatment are both based on how
the employer treats a specific individual.

10. Disparate impact refers to individuals and disparte treatment
refers to protected classes.
Disparate treatment refers to individuals and disparate impact
refers to protected classes.
Disparate impact and disparate treatment are both based on how
the employer treats a protected class.
26 Sean has a 6 year old car which he bought 2 years ago from
its original owner. Eight months ago he received a recall notice
about a safety problem with the brakes. He never responded to
the notice. Yesterday Sean was driving when the brakes failed
and caused him to strike and injure a pedestrian. Which of the
following is true in lawsuits against the car’s manufacturer?
Neither party can recover if Sean’s was one of only a few of
these cars that actually had a brake defect.
Sean can recover despite having received the recall notice.
The pedestrian cannot recover due to the fact that the pedestrian
was not using the car.
The pedestrian cannot recover because the correction of the
defect will apply even though Sean did not take the car in for
repairs.
27 unfair and deceptive trade practices are general regulated by
the:
Federal Trade Commission
Consumer Product Safety Commission
Food and Drug Administration

11. Securities and Exchange Commission
28 What are sellers responsible to provide for regarding the
assembly of products they sell?
Adequate instructions for safe assembly
Adequate instructions for safe assembly and use of the product.
Rebates
Adequate instructions for use of the product
29 George, an employee, breaches a fixed-term employment
contract by quitting before the end of the term. What can his
employer, MNO Inc. recover as damages?
All amounts already paid to the employee under the contract.
The costs of hiring a replacement employee plus any increase in
salary paid to the replacement employee.
Only amounts paid to the employee for which the employee has
not yet done the work.
Nothing, because courts do not order anyone to perform a job
against his or her will.
30 Mary, the seller, and Jane contract for the sale of 500
sweaters.They agree on color and style, but not on price or time
of delivery. Mary refuses to deliver the sweaters and Jane sues.
What results?
Jane wins; the courts will fill in all the above-mentioned
missing terms.

12. Mary wins; the courts will fill in many missing terms, but never
price.
Mary wins; because all these terms were omitted from the
agreement, the contract is not definite enough to be valid.
Mary wins; the courts will fill in many missing terms, but never
time of delivery.
31 Under the Uniform Computer Information Transactions Act,
tender of performance is:
A party’s agreement to perform
The offer to complete the performance of contractual duties
made by a party who is willing and able to perform.
A party’s unequivocal indication of intent to perform.
The actual completion of a party’s obligations under the
contract.
32 If a judge rules that a party lost its case because of the
Statute of Frauds, the judge has essentially stated which of the
following?
The losing party cannot enforce an oral contract that should
have been in writing.
The losing party was found by the court to have lied, and
therefore will lose the case.
The losing party will not be allowed to introduce evidence to
contradict a written agreement.

13. The losing party purposely deceived the other party about a
material fact.
33 Paul purchased a deluxe motorhome from Wide Open Spaces
Motorhomes. In a product liability suit against Wide Open
Spaces Motorhome Corporation, Paul must show which of the
following in order to recover:
The negligence of Wide Open Spaces led to Paul’s injury
A defect made the motorhome unreasonably dangerous, leading
to an injury.
Wide Open Spaces was the manufacturer of the motor home and
not just a dealer.
Paul was not misusing the motorhome when the injury occurred.
34 Officers of a corporation typically have which types of
agency authority?
Implied and apparent only
Express only
Express, implied, and apparent
Express and apparent only
35 The school of jurisprudence that believes that free market
forces should determine the outcome to lawsuits is:
The Sociological school
The Command school

14. The Law and Economics school
The Critical Legal Studies school
36 Which of the following is true about the provisions of the
Consolidated Omnibus Budget Reconciliation Act (COBRA) as
they related to health insurance?
Employers must make the same group health insurance available
to all employees.
Upon termination of employment, a health insurance provider
must allow the employee to participate in the same health
insurance coverage program that the employee participated in
while working for the employer, although the employee must
pay for it.
Certain companies are required to provide group health
insurance coverage to their employees.
Upon termination of employment, an employer is required to
pay, for a limited time, for the former employee’s health
insurance coverage under the same terms that it had been paying
for it while the employee worked for the employer.
37 Which of the following is true about litigating commercial
disputes?
The Sociological school
The Law and Economics school
The Critical Legal Studies school
The Command school

15. 38 Mr Smith awakens one morning to the sound of construction
in his backyard. When he looks out the window, he sees Ajax
Construction Co. apparently erecting a garage on his property.
He had not spoken or contracted with Ajax for this service.
However, Mr Smith really wanted a new garage, so he let them
continue. Later it was discovered that the garage was intended
to go next door. Ajax sues Mr Smith for the value of the garage.
What is the probable result?
Ajax wins; although there is no real contract, this is a case of
unjust enrichment, and because Mr Smith accepted the garage,
he must pay for it.
Smith wins; there was no contract upon which Ajax could
recover, and people are not liable for benefits that are
thrustupon them.
Smith wins; unjust enrichment does not apply here becauseMr
Smith had no duty to tell Ajax that it had the wrong house.
Ajax wins; this is a case of a contract implied in-fact, andMr
Smith implicity agreed to pay for the garage.
39 Martha started a flower shop as a sole proprietor. After 1
year, she was forced to close the shop because business was so
bad. At that time, the business assets totaled $50,000, but the
business liabilities totaled $125,000. Which of the following
statements is true:
Martha’s business creditors can collect only the $50,000 now,
but if Martha ever goes into business again, they can get the
assets of the new business.
Once Martha terminates the sole proprietorship, the business
creditors cannot even get the $50,000.

16. Martha’s business creditors can collect only the $50,000 of
business assets.
Martha is personally liable for the additional $75,000.
40 Under what circumstances can a state impose a tax on goods
imported from other nations?
If the amount of the tax is reasonable
If the tax does not conflict with any valid federal law
If the tax also applied equally to the same type(s) of goods
produced domestically
Under no circumstances
41 Under the Employee Retirement Income Security Act
(ERISA), an employee’s benefits must vest:
Only as provided in the pension plan.
Within 10 years
By the time of the employee’s retirement
In total within 5 years or gradually within 7 years
42 Which of the following is likely to be a breach of a
corporateofficer’s/director’s duty of care?
Failing to predict the startup of a new competitor.
Failing to anticipate a drop in consumer demand of the
company’s product.

17. Failing to foresee a severe rise in the interest rate.
Failing to make a reasonable investigation of relevant facts.
43 Mark is the treasurer of Sky-Hi Tech Corporation and, as
such, he is responsible for protecting the assets of the
corporation. One of Mark’s subordinates, Jill, is in charge of
reconciling the monthly corporate bank statements. Over a
period of several months, Jill embezzled a large amount of
money from Sky-Hi Tech, covering up the theft using her bank
reconciliations. If Mark had adequately supervised Jill, she
could not have embezzled this money. Mark’s actions (or
inactions) constitute a breach of his duty of:
Obedience
Loyalty
Due care
Ultra vires
44 In a guaranty arragement, the guarantor:
Promises to pay the debt of another in any circumstances.
Promises to assume responsibility for the quality of goods.
Promises to pay the debt of another if that person does not pay.
Promises to pay the debt of another contingent up the happening
of some external event.
45 Janet is manager of a bank. She has all the qualifications to

18. be promoted to bank manager. In fact, she is better qualified
than any of the males being considered for the position.
However, the owner of the bank believes that bank customers
will not accept a woman as bank manager, so the owner
promotes one of the males. The owner’s actions would best be
described as:
Sex discrimination
46 Which of the following is true about misappropriation of
trade secrets?
Although it is not necessary that the trade secret be patented,
the secret must be such that it could be patented.
47 Internet domain names are assigned by:
The Patent and Trademark Office
Network
Solution
s, Inc. only
Network