Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

blaw final > blaw > Flashcards

blaw Flashcards

1
Q

Which part of government creates statutory laws?

A

Legislature

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The Florida Legislature passed a law prohibiting masks in public buildings. What type of law is this?

A

State Statute

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Which of the following is a “Uniform” statutory law prepared by the National Conference of Commissioners on Uniform State Law?

A

Uniform Commercial Code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The National Conference of Commissioners on Uniform State Law drafted the Uniform Commercial Code (UCC). The UCC is adopted by?

A

States

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The President of the United States wants to eliminate wasteful spending. The President creates a law prohibiting federal agencies from purchasing paper clips. What type of law may the President independently create?

A

Executive Order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

The EPA enforces regulations related to the environment. Which part of the government creates regulations?

A

Administrative Agencies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

You have been involved in a car accident and sustained substantial damages. You have hired an attorney to bring a lawsuit against the driver of the other car. In order to win your case the attorney would have to prove that the other driver was responsible for your damages by what standard of proof?

A

By preponderance of the evidence.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Which of the following is true about ethical codes?

A

Some professions, such as certified public accountants, doctors, and lawyers, require taking an ethics exam and adherence to a code of ethics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

You are serving on a jury which is hearing a lawsuit filed by a plaintiff who is alleging that a defendant’s negligent driving caused the plaintiff serious bodily harm. After hearing the case you determine that it is more likely than not that the plaintiff has proven his allegation that the defendant’s negligence caused the plaintiff harm. However you are not sure of this beyond a reasonable doubt. What should you as a juror do in this situation?

A

Vote in favor of plaintiff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

OSHA regulates workplace safety. OSHA created a law requiring hospitals to protect its workforce against Covid-19. Which type of law is this?

A

Regulation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The doctrine of “burden of proof” is an important part of U.S. law. Which of the following is correct regarding this doctrine?

I. In a civil case the plaintiff has the burden of proof.
II. In a criminal case the defendant has the burden of proof.
III. In a civil case the standard “burden of proof” is “by a preponderance of the evidence.”

A

I and III only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Some professions require members of the profession to pass an ethics exam and follow an ethical code. Which of the following professions have that requirement?

A

lawyers and certified public accountants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Ace Bank lent $125,000 to Jones at a time when both Ace Bank and Jones were residents of Arkansas. Jones defaulted on the loan and was promptly sued by Ace Bank in an Arkansas court and received a judgment in its favor. Jones then moved to Texas. Does Ace Bank have the legal right to have this judgment enforced by legal process in Texas?

A

Yes, under the full faith and credit clause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Allen obtained a judgment in a breach of contract case whereby he was awarded $100,000 in damages. In order to avoid paying the judgment the defendant moved to a different state. Allen pursued the defendant, and upon locating him brought an action to have his judgment recognized and enforced by the different state. Is this state required to do so?

A

Yes, under the Full Faith and Credit clause.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The Full Faith and Credit Clause of the U.S. Constitution requires which of the following?

A

a state must honor rights established in another state regarding deeds, wills, contracts and court judgments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Kerry was employed by an upscale women’s clothing store. After working for them for 6 months she became dissatisfied with how she was treated, especially with their requirement that she work overtime during certain times of the year. She communicated her complaints via advertisements in the local paper. As a result of these advertisements she was dismissed (fired) by the store. Kerry has brought a lawsuit against the store based on an alleged violation of her right to free speech. A court hearing this case would probably rule in favor of:

A

The store as there was a lack of state action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Marcel is an employee of a large retail business. He had written a number of letters to the local paper criticizing his employer and for this he was fired. He has sued the retail business claiming that the business has violated his right to “free speech.” Is he likely to win his case based on constitutional law?

A

No, as there is no state action in this situation.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Pete is a public school teacher. He writes a letter of opinion to the local paper that the school bullies students and doesn’t support free speech. Pete is fired for his letter. Pete sues the school claiming it violated his right to “free speech.” The school moves to dismiss Pete’s suit. How will the judge likely rule?

A

Deny the motion for dismissal because there is a state action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Susan is a public school teacher. She tweets that the school doesn’t support its teachers and it’s a horrible working environment. The school board fires Susan. Susan sues the school claiming it violated her right to “free speech.” The school moves to dismiss Susan’s suit. How will the judge likely rule?

A

Deny the motion for dismissal because there is a state action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Which of the following forms of speech are generally considered to be fully “protected” by the first amendment?

A

Symbolic speech.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Todd is an employee of the Yankees. Todd tweets under the twitter name “abc123” vulgar messages about the daughter of Burt Skilling (a professional baseball player). Burt tells the Yankees and the Yankees fire Todd. Todd sues the Yankees alleging they violated his First Amendment right to free speech. How will this case likely conclude?

A

The suit will be dismissed because of the state action doctrine

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Gail posts a message on Facebook that makes negative comments about her employer, Oprah. Gail works for Oprah’s magazine, “O”. When Oprah sees the post, she immediately fires Gail. Gail sues Oprah alleging a violation of her first amendment rights of free speech. Oprah files a Motion to Dismiss. How will the trial court rule?

A

Dismissed, because there is no state action.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

If the University of Arkansas were to require all students to attend a Catholic mass every Sunday, this would probably be considered:

A

A violation of the establishment clause in the first amendment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Which of the following forms of speech are generally considered to be fully “protected” by the first amendment?

A

Symbolic Speech.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of the following is an example of commercial speech?

A

An advertisement stuck on your windshield

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Which of the following forms of speech are NOT protected by the first amendment?

I. Speech which presents a clear and present danger.
II. Speech which is considered to be defamatory under state law
III. Speech which is considered to be obscene under state law.
IV. Speech which consists entirely of statements of fact which are known to be without merit.

A

I, II and III only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Fayetteville city council passed a law prohibiting any organization or group from hosting rallies from 10 pm to 7am. An anti-abortion group wants to hold a rally to support life at midnight but is denied a permit to do so. The group files a lawsuit asking a court to overturn Fayetteville’s law. How will the court likely rule?

A

In favor of Fayetteville because their law is a content neutral restriction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A political group plans a rally for 11pm to support their candidate. They didn’t realize that the city where the rally was planned had an ordinance that stated “No rally may be held from 10pm-7am.” The purpose of the ordinance was to reduce noise when most people are sleeping. When people began to arrive for the rally police sent them home citing the ordinance. If the political group sues based on their right to free speech the court will likely:

A

Rule in favor of the city because the restriction is content neutral.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Gladys was injured when a restaurant sign fell on her. She sued the restaurant alleging that the restaurant was negligent and demanded a jury trial. At trial, who will consider the evidence and decide whether the restaurant was negligent?

A

The jury because this is a question of fact.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

In both civil and criminal cases it is the responsibility of the jury to:

A

Resolve questions of fact.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q
  1. Some forms of speech are not protected by the first amendment. This would generally include which of the following forms of speech?

I. Speech which presents a clear and present danger.
II. Speech which is defamatory.
III. Speech which is obscene.

A

I, II and III

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Which one of the following is evidence a jury can consider?

A

A statement made by an eyewitness while testifying under oath during the trial

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In which of the following courts would you normally be entitled have your case heard by a jury?

I. U.S. District Court
II. U.S. Court of Appeals
III. U.S. Supreme Court

A

I only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In Kansas City, MO, a court is hearing a case of insider trading. The defendant offers into evidence a controversial document. The prosecution objects to the offered evidence. Who decides whether the evidence is admissible?

A

The judge.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

The primary role of the jury in a civil trial is to:

A

Resolve questions of fact.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Which of the following courts are courts where a case originates?

I. U.S. Circuit Court of Appeals
II. U.S. Supreme Court
III. Arkansas Supreme Court
IV. U.S. District Court

A

IV only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

In which of the following courts would the court normally be expected to hear the testimony of witnesses?

I. U.S. District Court
II. U.S. Circuit Court of Appeals.
III. U.S. Supreme Court.
IV. Arkansas Supreme Court.

A

I only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

In which of the following kinds of courts would witnesses be called to testify?

I. Trial courts (state and federal).
II. Appellate courts.
III. The Supreme Courts of the various states and the U.S. Supreme Court

A

I only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Which of the following ADR procedures is the most popular and is often required by judges before a trial date can be schedule?

A

Mediation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Many trial courts require that the parties engage in which of the following forms of ADR before a trial date can be scheduled?

A

Mediation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Which of the following forms of ADR generally results in a ruling by a neutral third party which is BINDING on the parties?
I. Mediation
II. Arbitration

A

II only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Dan wants to sue his employer. However Dan cannot sue because his employment contract has a mandatory __________ clause. Because of this clause, Dan and his employer must submit their dispute to a neutral third party who will issue a binding ruling:

A

Arbitration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following ADR procedures results in hearing before a neutral third party who then issuing a decision which is binding upon the parties?

A

Arbitration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following is NOT generally considered to be a reason for the popularity of Alternative Dispute Resolution (ADR)?

A

Results in a decision which operates as a legal precedent for future cases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Marilyn is a well known country and western entertainer. She entered into a 2 year contract with a nightclub in Nashville. The contract paid her $5,000 per week. After six months the Silver City (a large hotel in Las Vegas) contacted Marilyn and offered her a one-year contract starting immediately for $10,000/week. Silver Dollar City did not know about Marilyn’s contract with the Nashville nightclub. Marilyn accepted the Las Vegas offer and left Nashville. What legal remedy or remedies would the Nashville nightclub have in this case?
I. Sue Marilyn for breach of contract.
II. Sue the Las Vegas hotel (Silver City) for wrongful interference with a contract.

A

I only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

The crime of _______________________________ occurs when a person uses private, non-public information to buy or sell stock.

A

Insider Trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Tom is an executive at Big Co. He learns that an upcoming announcement is going to cause the stock to go down. He tells his neighbor to sell Big Co’s stock. This is an example of what?

A

Insider Trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Lady Luck is a budding professional singer and entered into a contract with a small nightclub in Las Vegas. The term of the contract was for six months. After only 3 months Lady Luck “hit it big” and a larger Vegas nightclub got her to dump the small nightclub and work for them for a much larger salary. The large nightclub knew about Lady Luck’s original contract, but told Lady “your current contract means nothing!” If the smaller nightclub should go to court to collect damages the result will probably be:
I. Lady Luck will be held liable to small nightclub for breach of contract.
II. The large nightclub will be held liable to small nightclub for wrongful interference with a contract.

A

I and II

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Jose accidentally caused a car accident injuring Paris and destroying Paris’ bicycle. Which of the following damages could Paris recover?

A

Pain and suffering and property damage and medical bills

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Auto Co. manufactures automobiles. One day, during her shift, Jan does not pay attention to her work (she was watching Netflix on her phone) and she forgets to insert a critical pin in the steering column of an automobile. That particular automobile is eventually sold to Sam, who is injured because of the missing pin. If Sam sues Auto Co. , which type of product liability claim would he bring?

A

Manufacturing Defect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Plaintiffs in personal injury negligence lawsuits may recover what types of damages?

A

Medical expenses and pain and suffering

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Auto Co. manufactures automobiles. Every other auto manufacturer uses steel connecting pins in their cars. Auto Co. uses plastic connecting pins (to save money). If people are injured because the plastic connecting pins break, what type of product liability claim would the injured people bring?

A

Design Defect

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Mike dies while driving a high performance sports car. His family sues the car manufacturer in “strict liability,” alleging that the car was defective when sold by the manufacturer and that the defect resulted in Mike’s death. Which of the following defenses can be successfully used by the manufacturer to avoid liability in this case?
I. Mike purchased the car from a car dealer and therefore was not in privity of contract with the manufacturer.
II. Mike was unable to prove that the manufacturer was negligent in the making of the car
III. When the car was sold by the manufacturer the contract contained a waiver which disclaimed any product liability.

A

None of these defenses can be used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

A patent protects which of the following?

A

invention that is novel, useful, and non-obvious

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Which of the following is correct?
I. Trademarks may protect things like a word, symbol, or sound to indicate a source of goods.
II. Trademarks may protect inventions.
III. Trademarks may protect songs, movies, and works of art.

A

I only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Starla is Tik Tok famous. She creates original dances using 15-second song clips offered by Tik Tok. Those song clips are protected by which type of intellectual property law? (btw Tik Tok pays for those song clips)

A

Copyright

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

A patent protects which of the following?

A

an invention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

A creative work in a tangible medium, such as a song or book is protected by ________________ law.

A

Copyright

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Which one of the following is NOT a required element of a contract?

A

Formality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

If Nedra posts a clip of a Disney movie on YouTube (clearly infringing Disney’s copyright) is YouTube liable for copyright infringement?

A

No under the Digital Millennium Copyright Act if Disney sends a take-down request and YouTube complies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

A ______________________ is a contract granting a person or firm permission to use a copyright, patent, or trademark for a limited time and in a limited manner.

A

License

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Nedra posts a false statement of fact about Shaun on Instagram, causing injury to Shaun. Is Instagram liable for defamation?

A

No because of Section 230 of the Communications Decency Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Which one of the following contracts must be in writing pursuant to the Statute of Frauds?
I. A real estate contract to purchase 40 acres of real property in Arkansas.
II. A contract made in April between a homeowner and a pool service company to provide pool service over the next four months (May – August)
III. An employment contract which is for a two year time period.

A

I and III only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Which of the following kinds of contracts is subject to the “statute of frauds?”
I. Contract for the sale of land.
II. Contract cannot be completed within one year.
III. Contract constituted a promise to stand behind the debt of another.
IV. Employment contract in excess of $5,000 per month for an indefinite time period.

A

I, II and III only

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Which of the following are required elements of a contract?

A

Agreement, Consideration, Capacity, Legality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Mary wants to rent an apartment if Fayetteville, Arkansas. The landlord tells Mary that she will have to have another adult with a credit score over 700 guarantee she will make the payments. Mary calls her mom and hands the phone to the landlord. Mary’s mom promises the landlord she will pay the rent if Mary fails to do so and they hang up. If Mary fails to pay does the landlord have a legally enforceable contract against Mary’s mom?

A

No, because the Statute of Frauds requires this type of contract to be in writing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Monique contracts with Mrs. Jones to build a fireplace in Mrs. Jones’ home for $5,000. After completing the fireplace, Monique sends an invoice to Mrs. Jones. Which of the following is true?

A

Monique is an unsecured creditor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Eve is a contractor. Kanye contracts with Eve to remodel his tiny home. After finishing the remodel, Eve sends Kanye an invoice. Which of the following is true?

A

Eve is an unsecured creditor

37
Q

Tomas wants to get a mortgage for a house. If the mortgage is for $100,000 with 3% interest for 20 years this is an example of which type of mortgage?

A

Fixed Rate

37
Q

Which of the following are examples of secured debt?

A

Unpaid loan payment for a boat that lists the boat as collateral

37
Q

Which of the following are examples of secured debt?

A

A motorhome listed as collateral in a loan used to by the motorhome.

38
Q

In order to buy new office equipment Allen borrowed $150,000 from a local bank. As security for the debt, the bank took a mortgage (lien) on the equipment. At a time when the amount of the debt was $125,000 Allen defaulted, and the bank repossessed the equipment. The debtor was notified that the property would be sold at a public auction but did not bother to attend the auction. The net proceeds resulting from the repossession and auction (ie, after all expenses were paid) was $100,000. Which of the following is correct?

A

The bank can get a deficiency judgment against Allen for the $25,000 remaining on the debt.

38
Q

Frank performs plumbing services in DeShawn’s office building. DeShawn does not pay Frank. What type of debt is this?

A

Unsecured debt

39
Q

Diane purchased a new car from Mighty Motors. She signed a contract whereby she was to pay a down payment of $5,000 with the balance of the debt to be paid in 48 monthly installments. After one year Diane lost her job and was not able to make any further payments. Which of the following correctly describes Mighty’ s rights in this case under the laws of most states?

I. They can repossess the car using self help.
II. They can have the car sold at public auction with full notification to Diane.
III. If the sale of the car at auction does not bring sufficient funds to pay off the debt, Diane can be held liable for the deficiency.

A

I, II and III

40
Q

Tad filed for bankruptcy as the amount of his debts far exceeded the amount of his assets. In the bankruptcy the trustee seized all of Tad’s non exempt property, which he sold in order to pay off the creditors. Unfortunately the amount of money generated by the sale of the assets was insufficient to pay all of the debts, and very few of the creditors were fully paid. This form of bankruptcy is known as:

A

Ch.7

40
Q

Kayne loses all of his money in an investment scheme making him unable to pay his bills. If Kayne files a Bankruptcy Petition, in which court would Kayne file?

A

Federal (U.S.) Bankruptcy Court

40
Q

The person filing a bankruptcy case is the ______ and must file the case in _____.

A

Debtor; federal bankruptcy court

41
Q

Which of the following bankruptcy chapters is intended for individuals who wants pay off their debts over a 3 to 5 year time period?

A

Ch. 13

41
Q

Ali wants to start a T-Shirt business. He has three main goals with his new business: 1) he wants easy start-up, no formation filing requirements 2) he wants to avoid paying taxes at the entity level; 3) he wants to be the only owner. Which type of business is best for Ali?

A

Sole proprietorship

42
Q

The people or businesses a debtor owes money to are called the ____________

A

Creditors

42
Q

When the bankruptcy trustee liquidates (sells and converts to cash) the debtor’s non-exempt assets, this fund of cash is called _____.

A

Bankruptcy estate

42
Q

Eighteen months before filing bankruptcy, Todd sells his motorcycle to his brother for $1 with the agreement that his brother will sell it back to Todd after Todd files for bankruptcy and receives a discharge of his debts. If the trustee can prove that Todd intended to defraud creditors with this transaction, which of the following is likely to happen?

A

Todd’s brother will have to deliver the motorcycle to the trustee as this is a fraudulent transfer.

43
Q

DeAndre has 10 general, unsecured creditors. Most of these are credit card companies, but one is a small local bar which has allowed him to run up a line of credit. He has decided to file for bankruptcy, but two weeks before doing so he pays off in full his tab at the local bar so that he can stay in good standing with them. If the trustee challenges the payment to the local bar, which of the following is correct?

A

The payment is a preference and the owner of the bar must pay the money to the trustee

44
Q

Which of the following business entities is required to pay an income tax?
I. General partnership
II. LLP
III. C corp.
IV. LLC

A

III only

44
Q

A bankruptcy judge may deny a debtor’s request for bankruptcy discharge for which of the following reasons?
I. Destroying or falsifying records.
II. Making a false statement under oath.
III. Having received a discharge in the prior 8 years.

A

I, II and III

44
Q

Eli makes amazing all natural fruit popsicles. In the summer he travels to outdoor music festivals and sells his popsicles for $4 each. He names his business Fruit Pops and has opened a separate bank account to track the expenses and earnings of Fruit Pops. He has never registered Fruit Pops with a governmental office. Eli pays income taxes on Fruit Pops’ earnings through his individual income tax return. Which type of business entity is Fruit Pops?

A

Sole proprietorship

45
Q

Blank

A

Blank

45
Q

Which of the following legal entities must register with the appropriate state office as part of the entity formation?
I. Sole proprietorship
II. General partnership
III. LLC

A

III

45
Q

Bonnie and Clyde (not related to each other) form an LLC named “Banks Beware, LLC.” Which of the following is true?

A

If Clyde defaults on a personal debt the assets of the LLC CANNOT be seized to satisfy the judgment.

46
Q

Five business partners have decided to convert their business from a general partnership to a Limited Liability Company (LLC). Which of the following is a characteristic of this form of doing business?

A

An LLC does not pay income tax.

47
Q

Which of the following is a characteristic of an LLC (Limited Liability Company)?
I. Members interests are transferable as personal property.
II. An LLC does not pay a federal income tax.
III. Members are not personally liable for unpaid debts of the LLC.

A

I, II, and III

47
Q

Which of the following is a characteristic of a LLC (Limited Liability Company)?
I. Members interests are transferable as personal property
II. An LLC pays a federal income tax.
III. Members are not personally liable for unpaid debts of the LLC

A

I and III only

47
Q

Left

A

Blank

48
Q

Inez is a shareholder of a corporation with only 20 shareholders. The corporation’s shares are sold in private transactions, not on a public stock exchange. This is a

A

Close Corporation

48
Q

Blank

A

Blank

49
Q

Blank

A

Blank

50
Q

Which of the following forms of doing business results in ALL of the owners being free from personal liability for unpaid debts of the business?
I. C Corp.
II. Sole Proprietorship
III. LLC

A

I and III only

50
Q

Blank

A

Blank

51
Q

Which of the following best describes the concept of “double taxation?”
I. It means that shares of a corporation can be bought and sold two or more times.
II. It is a concept associated only with closely held corporations and the way that they are formed.
III. It refers to the principle that when dividends are paid to the shareholders they must pay income tax on those payments even though the corporation already paid an income tax on its profits

A

III only

52
Q

Which of the following would normally NOT be part of the duties of the directors of a corporation?

A

Amending the articles of incorporation

52
Q

Which of the following correctly describes the rights and powers of shareholders of an ordinary corporation (C Corp)?
I. Shareholders have the power to amend the articles of incorporation.
II. Shareholders have the power to declare dividends
III. Shareholders have the power to elect members of the board of directors.

A

I and III only

53
Q

Blank

A

Blank

53
Q

Which of the following entities pays an income tax?

A

C Corp

54
Q

Sean Smith, the owner and president of Fayetteville Pool Corporation, entered into a contract with Katrina Kash to build a pool and pool house in her back yard. When Sean Smith signed the contract with Katrina he signed it: Sean Smith and did not tell Katrina that he was signing on behalf of Fayetteville Pool Corporation. After the pool was built, Katrina discovered that the electricity was not working properly and anyone who enters the pool receives a shock. Katrina wants to sue Sean Smith in his individual name for breach of contract, but Sean says that he has no individual liability under the contract because his business is incorporated. What will a court likely hold?

A

Sean is liable because he did not disclose that he was an agent for Fayetteville Pool Corporation.

54
Q

An agent can be held liable for a contract made on behalf of a principal if __________?
I. No disclosure of principal
II. Implied authority
III. Express authority
IV. Partial Disclosure of Principal

A

I and IV only

54
Q

Frank is the sole owner of a small business the name of which is “Arkansas Sporting Goods.” The business is incorporated under the name “Arkansas Sporting Goods, Inc.” but the only name on the outside of the building is Arkansas Sporting Goods. If a third party vendor (seller) sells inventory to the business and the contract is signed by Frank personally, under these facts what legal principle could Frank be held personally liable for the debt?

A

No disclosure given by Frank to the vendor.

55
Q

Which of the following types of authority could an agent have which would bind a principal to a contract?

A

Express, implied and apparent

55
Q

A principal may give an agent express authority in which written document?

A

Power of attorney

55
Q

Hannah allowed her friend Carol to borrow her laptop computer for a weekend. During that time Carol (without permission from Hannah) sold the laptop to a friend. The next day Carol met with Hannah and told her that she had sold the laptop because “the price was too good to pass up.” She gave the money to Hannah, who agreed that the price was outstanding and that she was ecstatic that the laptop was sold. Based on these facts is the contract for the sale of the laptop valid against Hannah?

A

Yes, under the ratification doctrine.

55
Q

Les was just hired as manager of Holiday Inn (a hotel). Les was given no express duties, but was told to “run the hotel to the best of your ability.” In the normal course of business managers hire and fire employees. Les hired Pat as a desk clerk at minimum wage. Which of the following is true?

A

Les had implied authority to make an employment contract on behalf of Holiday Inn

56
Q

Without telling his friend Keisha, Bob made a contract on her behalf with a third party. When Bob told Keisha what he had done she happily approved the contract because it was very beneficial to her. Is this contract binding on Keisha?

A

Yes, because of ratification.

56
Q

Electronics company, Samsung, has a franchise contract KC Television and Electronics Store (KCTES), giving KCTES the exclusive right to sell electronics made by Sumsang in Kansas City, MO. Which type of franchise agreement is this?

A

Distributorship

57
Q

A “power of attorney” results in the creation of an agency relationship in which of the following forms:

A

Express authority.

57
Q

Tammy works for Office Equipment Company as an accountant. Her sole authority is to maintain the accounting records of the company. One day when she is the only one in the office a salesperson comes in and tries to sell Office Equipment Company new furniture. Even though she has no authority to purchase furniture for the Office Equipment Company she does so anyway, believing that the furniture is “super cool” and a “great deal.” When the owner of Office Equipment Company returns Tammy tells him about the contract that she made in his absence. The owner was very impressed and thanked her for taking the initiative to make the contract to purchase the furniture. He also contacted the salesperson and told him that he was very excited to purchase the furniture. At this moment in time is the contract to buy the furniture binding on Office Equipment Company?

A

Yes, under the doctrine of ratification

58
Q

Wanda signs a franchise contact with Burger King to own the right to operate Burger King restaurants in her state. She’ll use their menu, ingredients, cooking instructions, and trade dress. What type of franchise is this?

A

Chain-style business operation

58
Q

One way to create an agency relationship that provides an agent with express authority is through which of the following written documents?

A

Power of Attorney

59
Q

Alex wanted to buy a piece of land that he could use to construct an office building. He asked his real estate agent (Frances) to make a contract on his behalf with a third party who was interested in selling a piece of land in the area. Alex told Frances not to mention that he (Alex) was the person who would be buying the land. Frances did this, and in due course a contract for the sale of the land was executed. Some time later Alex decided that he did not want to buy the land after all. The owner of the land wants to sue all responsible parties for “breach of contract.” Which party or parties could be held responsible to the owner of the land?
I. Alex
II. Frances

A

Both I and II are liable

59
Q

You have been hired by the Acme Company on an “at will” basis. Unfortunately, after only 60 days you are discharged without any prior warning. Which of the following would give you the right to successfully sue your employer for “wrongful discharge?”
I. You were fired because you were five minutes late to work every day because you had to drop off your daughter at school.
II. You were fired because you refused to go to lunch with your fellow employees.
III. You were fired because your supervisor found out that you hated his favorite college football team.

A

None of these.

59
Q

Blank

A

Blank

60
Q

Allen had been employed by “Arkansas Lawyers” (a Little Rock law firm) for six months under an “at will” contract. One Friday at the end of the work day he was told that his “services were no longer needed.” Allen believes that his termination constituted a “wrongful discharge.” Which of the following reasons for his discharge would be considered wrongful under common law?
I. He was 30 minutes late for work on the day that he was fired. It was his first time to be late to work
II. He told several of his friends from church that the lawyers in the firm were “slightly better than mediocre.”
III. He had an argument with a fellow employee which resulted in shouted insults being exchanged.

A

None of these

60
Q

Which of the following companies are subject to the Sarbanes / Oxley Act with regards to “whistleblowing?”

A

Companies whose stock is publicly traded and report to the SEC

60
Q

Under the Sarbanes-Oxley Act of 2002 there is statutory protection for “whistleblowers.” In order to be covered by this law the employer of the whistleblower must meet the following criteria:

A

Be a private company whose shares are publicly traded

61
Q

Under the Sarbanes – Oxley Act of 2002 there is statutory protection for “whistleblowers.” In order to be covered by this law the employer of the whistleblower must meet the following criteria:

A

Be a private company whose shares are publicly traded

61
Q

The Fair Labor Standards Act (FLSA) covers which of the following?
I. child labor
II. overtime
III. minimum wage

A

I, II and III

62
Q

Allen is employed by Acme Company and is considered a “covered worker” under the overtime rules of the Fair Labor Standards Act. His hourly rate of pay is $10 per hour. The federal minimum wage is $7.25 per hour. If Allen should work 45 hours in a particular week then his total amount of pay for that week is:

A

$475

62
Q

Which of the following is true about a “publicly held” corporation?
I. Shares of the corporation may be bought and sold on a public stock exchange.
II. A whistleblower within the corporation may have protection under the Sarbanes-Oxley Act.
III. Shareholders have limited liability for the losses of the corporation.

A

I, II, and III.

63
Q

Which of the following would constitute an “unfair labor practice” of management under federal labor laws?

A

Having supervisors ask the workers how they will vote in an upcoming “certification” election.

64
Q

Blank

A

Blank

64
Q

Blank

A

Blank

64
Q

Blank

A

Blank

65
Q

-

A

-

65
Q

-

A

-

65
Q

You live in a state whose minimum wage is $10 per hour. Also the city in which you live and work has a minimum wage of $11 per hour. The federal minimum wage is $7.25 per hour. Based on these facts the minimum wage which applies to you is:

A

11 per hour

66
Q

The Family Medical Leave Act provides what?

A

UP to 12 weeks unpaid leave with insurance and comparable or same job upon return to work

66
Q

The Family Medical Leave Act provides which protections for employees who have worked for a business for greater than one year and have experienced a coverage event (e.g. newborn infant or serious illness)?

A

Unpaid leave for 12 weeks with continuation of insurance coverage

66
Q

Title VII of the 1964 Federal Civil Rights Act included a number of “protected classes” for which discrimination would be illegal. Which of these is NOT one of these classes?

A

Age

67
Q

Alice is the president and CEO of Happy Company, a business which is subject to the 1964 Civil Rights Act. She is a big fan of the TV show “Dancing with the Stars.” In order to have interests similar to hers, she has instructed the hiring manager to give each applicant a quiz on this TV show and not to hire anyone who failed the quiz. As it turned out more than 75% of female applicants passed this quiz and less than 25% of male applicants passed the quiz. All applicants who failed the quiz were not offered jobs. If this practice were challenged in court it would probably be ruled that:

A

This is illegal since this hiring practice has a disparate impact on a protected class.

67
Q

-

A

-

67
Q

-

A

-

68
Q

-

A

-

68
Q

-

A

-

68
Q

-

A

-

69
Q

Alice, age 24, is an employee of a company subject to the 1964 Civil Rights Act. There was convincing evidence that she was denied a promotion due to the fact that she refused to engage in a sexual relationship with her immediate supervisor. Which of the following is correct?

A

This is a violation of the civil rights act based on the “quid pro quo” doctrine.

70
Q

-

A

-

71
Q

-

A

-

72
Q

You believe that you have been discriminated against by your employer on the basis of race and wish to file a lawsuit against your employer in federal court. Prior to filing such a lawsuit you must do which of the following?
I. File a complaint with the EEOC within 180 days of the alleged discrimination.
II. Make a good faith deposit with the EEOC in the amount of $250.
III. Send the EEOC a sworn affidavit (under penalty of perjury) that your complaint is valid.

A

I only

73
Q

Which of the following must a victim of discrimination do before being allowed to file a lawsuit in court?

A

File a complaint with the EEOC within 180 days

74
Q

Red Bull advertises that Red Bull will “give you wings”. Does this advertising violate truth in advertising laws enforced by the FTC?

A

No, this is puffery

75
Q

You believe that you have been the victim of illegal gender (sex) discrimination by your employer. To bring a lawsuit against your employer in federal court you must do which of the following?
I. File a complaint with the EEOC within 180 days of the alleged discrimination
II. Obtain a Right to Sue letter from the EEOC
III. Make a $5,000 deposit with the EEOC as a show of good faith of your desire to pursue a claim against your employer (to be refunded if you are successful).

A

I and II only

76
Q

Activia Yogurt advertised that a daily serving of its yogurt helps prevent colds and the flu. That statement is false. If the FTC pursues a false advertising complaint against the makers of Activia Yogurt will the FTC be successful?

A

Yes, this appears to be based on scientific evidence

77
Q

Kellogg’s advertises that its Rice Krispie’s Cereal will provide children with 25% of their recommended daily dose of vitamins and minerals. This statement is false. Which one of the following can bring lawsuits against Kellog’s because of the false statements.

A

Federal Trade Commission and/or Consumers

78
Q

Hangrypedlernwa is an influencer on Instagram. Handrypedlernwa goes to restaurants in Northwest Arkansas, samples the food and posts about it on Instagram. He makes an Instagram post about Fannie Mae’s Kitchen in the Yacht Club food truck area in Fayetteville. He pays full price for his meal and is not compensated but is hoping that if he gets enough followers on Instagram he will start to get paid to endorse products. What does the FTC require Hangrypedlernwa to do?

A

There is no duty to disclose because there is not a financial relationship with Fannie Mae’s Kitchen

79
Q

Kim K. is an influencer on Instagram. Big Deal Vodka is launching its newest product and pays Kim K. to post a picture of herself on Instagram at a party holding a shot of it’s vodka. Does Kim K. have to disclose that Big Deal Vodka paid her to post the picture?

A

Yes, because Kim K. has a financial relationship with Big Deal Vodka.

80
Q

Fresh Farms is a potato farm in Idaho. Fresh Farms digs up the potatoes and delivers the potatoes to facilities for packaging and distribution. The Food Safety Modernization Act requires Fresh Farms to do which of the following?

A

Identify food safety hazards and have safety controls

81
Q

Which of the following is real property?

A

Fire Station

82
Q

Shonda is selling her home. Which of the following in and around her home would be considered “real property?”

I. The land on which the home sits.
II. A built-in bookcase.
III. A small hot tub on the deck in the back yard.

A

I and II only

83
Q

Which of the following would be most likely to be classified as a “fixture?”

A

A ceiling fan

84
Q

-

A

-

85
Q

The right to make limited use of real property is known as a(n):

A

Easement

86
Q

Marly is selling her home to Murphy. To convey her home to Murphy, Marly must do what?

A

Sign a deed

86
Q

Marsha owns property in Fayetteville. Marsha subdivides her property into two parcels and sells one parcel to a Walter. Walter can only get to his parcel from the road by crossing Marsha’s property. If Walter is allowed to make a limited use of Marsha’s property it is because he got a ____________________.

A

Easement by necessity

87
Q

Bao lives in a neighborhood with a home owners association (HOA) which has a rules prohibiting basketball hops and limits the pets families can have to: 2 cats, 2 dogs and 2 birds. These rules are:

A

Restrictive Covenants

88
Q

Alex owns property in a part of town that is zoned for single family residential homes. Alex wants to section off a part of his basement and turn it into an apartment. This would violate the zoning rules. Before Alex can make his basement an apartment he must apply with the city for what?

A

A Zoning Variance

89
Q

Dan, a developer wants to build a pharmacy in an area zoned for multifamily residential properties. If he is able to do so, it is because he we went to the city and they agreed to give him a what?

A

Zoning Variance

90
Q

Mike is claiming ownership of a small piece of land on the basis of adverse possession. Which of the following is NOT one of the required elements of this common law doctrine?

A

Mike was in good faith (honestly believing that he was the rightful owner)

91
Q

Xi is claiming ownership of property on the basis of “adverse possession.” Which of these is NOT one of the requirements of adverse possession?

A

Physical possession of a deed indicative of ownership

92
Q

In Oklahoma, Ernst notices a vacant home and moves into the home. He lives in the home openly and continuously for 2 years before the owner of the home (John) learns of Ernst’s actions. Oklahoma has a 15-year statutory period for adverse possession. Which of the following will likely happen?

A

The owner (John) will be able to remove Ernst from the home as John is still the rightful owner.

93
Q

The U.S. Supreme Court held in Kelo v. City of New London that the power of eminent domain allowed a government to take a property for:

A

Economic develop as that was a public use

94
Q

Kelo v. City of New London addressed which issue?

A

Economic develop constituting a public use

blaw final (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions