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GMP 5015-Pat and Don submit their dispute to binding arbitration.
Question
Question 1
Pat and Don submit their dispute to binding arbitration. A court can set aside the arbitrator’s award if
Don is not satisfied with the award.
Pat is not satisfied with the award.
the award involves at least $75,000.
the award violates public policy or if bad faith was involved.
0.5 points
Question 2
Regarding alternative dispute resolution mechanisms, which if the following is a FALSE statement?
Mediation is a process by which a neutral third party acts as a conciliator and assists the parties to a dispute to reach a compromise solution.
Arbitration is a process whereby the parties to a controversy submit their dispute to a neutral third party, who is not a traditional judge, for a final and binding decision.
An arbitrator's decision generally cannot be appealed to the traditional court system if one of the parties is dissatisfied with the determination and thinks the arbitrator got the facts and the law wrong.
An arbitration clause in a contract between an employer and an employee is as a general rule not enforceable against the employee since it would be unfair to the employee to prevent him or her from going to a traditional court to sue the employer.
0.5 points
Question 3
A claims that she and B entered into a contract. The intent to enter into a contract is determined with reference to
the conscious theory of contracts.
the objective theory of contracts.
the personal theory of contracts.
the subjective theory of contracts.
0.5 points
Question 4
What is true about a partner's right to participate in the management of the partnership?
It exists only if the partner has been elected as an officer or management committee member.
It exists only if the partnership agreement gives the partner this right.
It exists automatically, but can be eliminated in the partnership agreement.
It exists automatically and cannot be eliminated in the partnership agreement.
0.5 points
Question 5
Where there is no agreement to share profits in a partnership, but one partner has devoted twice as much time to the partnership as the other over the course of the year, how are profits to be split?
In the ratio of time devoted to the partnership.
Fairly, as determined by a court or other neutral party.
The profits must remain in the partnership and not be distributed.
Equally.
0.5 points
Question 6
Which is NOT a characteristic of the traditional business corporation?
Centralized management by means of a board of directors and corporate officers
Creation by the filing of an articles of incorporation and approval of a corporate charter by the appropriate state agency
Personal liability of the shareholders for corporate debts and obligations
Access to capital markets by the issuance of shares of stock and their sale to the investing public.
0.5 points
Question 7
Which of the following contracts is not required as a general rule to be in writing under the Statute of Frauds?
A contract to be performed in less than one year.
A contract involving the sale of land.
A contract for the sale of goods over $500.
A guaranty contract to pay someone else's debt if they fail to.
0.5 points
Question 8
Which of the following situations, by itself, typically would not justify a court disregarding the corporate entity?
The corporation failed to follow the necessary corporate formalities.
The corporation is severely undercapitalized.
The corporation does not have enough current assets to pay all its liabilities.
The shareholders have looted the corporation.
0.5 points
Question 9
Which of the following would not be a typical item of business at the organizational meeting of a corporation?
Adoption of bylaws.
Election of corporate officers.
Selection of promoters.
Authorizing the issuance of shares of stock.
0.5 points
Question 10
Which of the following is a true statement?
The judicial branch has the authority to examine acts of the legislative branch but not the executive.
The legislative branch of the U.S. government cannot change laws that have been interpreted by Congress.
The preemption doctrine holds that the U.S. Congress can override Supreme Court decisions by a 3/4s vote.
The Supremacy Clause of the U.S. Constitution means that the Constitution and all laws passed pursuant to the Constitution are the supreme law of the land.
0.5 points
Question 11
Which is FALSE regarding a traditional business partnership pursuant to the Uniform Partnership Act?
Absent an agreement partnership profits are shared equally by the partners regardless of any individual's partner contribution, knowledge, skills, and/or efforts.
Absent an agreement partners are not entitled to any salary or remuneration for acting in the partnership business.
Partners are regarded as agents of the partnership when acting in the partnership business.
The dissolution of a partnership will always lead to a winding-up, liquidation, and termination of the partnership.
0.5 points
Question 12
Which of the following are encompassed by the traditional common law tort of intentional invasion of privacy?
An appropriation of a person's name or picture without his or her permission for commercial advantage.
An intrusion by the defendant into the private life or private domain of the plaintiff.
Public disclosure of private facts, that is, facts not in the public record, about a person, even if the facts are true.
All of the above.
0.5 points
Question 13
Which of the following is a false statement?
An agent who has held herself out as having higher-than-customary knowledge and skills will be held to that higher standard when doing the principal’s business.
The “reasonable person” standard typically applies to the degree of care required of an agent when conducting the principal’s business.
Most information that comes to the attention of an agent is assumed to be known by her principal.
Duties of loyalty and accountability are not duties that the agent owes to his or her principal since the agent is not a fiduciary like a partner.
0.5 points
Question 14
Which corporate law doctrines are designed to give the shareholders some indirect control of the corporation?
Voting for the board of directors
Cumulative voting
Voting trusts and pooling agreements
All of the above.
0.5 points
Question 15
To be convicted of a crime under U.S. laws, the prosecution typically must prove the case against the defendant:
By a preponderance of the evidence.
By clear and convincing evidence.
Beyond a reasonable doubt.
None of the above.
0.5 points
Question 16
A contract for the sale of land:
Must be in writing if the value of the land exceeds $100.
Requires at least two promisors.
Must be in writing in order to be enforceable.
Is governed exclusively by the Uniform Commercial Code.
0.5 points
Question 17
The seller can recover the purchase price for the goods only under certain circumstances, including when:
The buyer accepts, but fails to pay for the goods.
The goods are destroyed after risk of loss passes to the buyer.
The buyer rejects specially manufactured goods that cannot be resold.
A, B and C.
0.5 points
Question 18
Which is FALSE about a Limited Liability Company (LLC)?
No formalities are required by state statute in the forming of an LLC; rather, a simple LLC agreement will suffice to establish legally the LLC.
An LLC can be a member-managed or a manager-managed LLC.
The name of the LLC must include the term "limited liability company" or "LLC."
The members of an LLC are not personally liable for the debts and obligations of the LLC (beyond their original contributions to the LLC).
0.5 points
Question 19
In order to have an investment contract which is regulated by the SEC, which of the following is required?
An investment of money.
A common enterprise.
The expectation that profit from the enterprise will result from the efforts of others.
A, B and C.
0.5 points
Question 20
Which of the following is a true statement?
The “police power” of a state does not give the state any general authority to regulate business.
Garbage that is transported across state lines can be considered to be interstate commerce regardless of economic value.
The Commerce Clause of the Constitution gives Congress the power to regulate commerce with foreign nations and Indian tribes only.
Congress can only regulate activities that are actually interstate commerce but not activities that affect interstate commerce.
0.5 points
Question 21
Which of the following is true regarding Title VII of the federal Civil Rights Act in the workplace?
The plaintiff employee must always prove a malicious, wrongful intent to discriminate on the part of the defendant employer against the employee to prevail in a Title VII civil rights lawsuit.
Only "big" employers with 2000 or more employees are covered by the federal Title VII Civil Rights Act due to the voluminous record-keeping requirements.
The employer must make an accommodation to an employee's religious beliefs, observances, and practices regardless of the expense, cost, or burden since freedom of religion is a very important civil right in the United States.
As a general rule, an employer can discriminate on the basis of appearance by selecting only "good-looking" and attractive male and female applicants for its sales force.
0.5 points
Question 22
The bargained-for element of a contract is best legally construed as
The price
The offer
The consideration
The intent
0.5 points
Question 23
Which of the following generally does not need to be included with the articles of incorporation?
The period duration of the corporation.
The classes and preferences of stock.
Whether preemption rights are given to the stockholders.
A copy of the bylaws.
0.5 points
Question 24
In determining the lawfulness of a merger, which of the following factors need not be shown?
An actual lessening of competition.
The relevant product market.
The relevant geographic market.
The likelihood of a substantially lessening of competition or the tendency to create a monopoly.
0.5 points
Question 25
Which of the following is true about restraints of trade?
Under the per se rules, all restraints of trade are illegal.
Under the rule of reason, all restraints of trade are illegal.
Some acts are illegal per se, but other actions must be judged by the rule of reason.
Price fixing is always judged by the rule of reason.
0.5 points
Question 26
Countervailing Duties can be assessed on imports coming into the United States if:
There is an unfair subsidy found in the creation of these products.
The products are being "dumped" into the United States.
A. and B.
None of the above.
0.5 points
Question 27
Which of the following is a false statement?
If a contract for the sale of goods does not include a price term, it nonetheless may still be enforceable pursuant to the Uniform Commercial Code.
If a contract for the sales of goods does not include the exact terms for payment, it normally will be unenforceable since it is impermissibly vague.
When an offer for the sale of goods does not specify a means of acceptance, the offer usually can be accepted by any manner reasonable under the circumstances.
A warranty is an assurance by the buyer to the seller that he or she will pay valid and good consideration for a product.
0.5 points
Question 28
If the buyer breaches the contract before the goods are completed, the seller can:
Complete the goods and resell them.
Stop work on the goods and resell them as scrap.
Recover damages from the buyer.
A, B and C.
0.5 points
Question 29
An example of an equitable remedy is
Exemplary damages
Speculative damages
Consequential damages
An injunction
0.5 points
Question 30
Nora signs a contract to provide routine lawn-mowing services to Owen. Nora delegates her duty under the contract to Pat. Owen can compel performance from
neither Nora not Pat.
Nora only.
Pat only.
Pat or, if Pat does not perform, Nora.
0.5 points
Question 31
Common law consists of:
Laws which all nations have in common.
Laws which affect everyone, including ordinary persons.
Rulings and opinions which have been issued by judges when deciding previous cases.
Laws which more people are aware of.
0.5 points
Question 32
Investors Property, Inc., sells an office building to Jill with a deed that makes the greatest number of warranties and provides the most extensive protection against defects of title. This deed is
a grand deed.
a quitclaim deed.
a special warranty deed.
a warranty deed.
0.5 points
Question 33
Which of the following is a true statement?
The Bill of Rights in the U.S. Constitution confers absolute rights on citizens of the U.S, not subject to interpretation by the U.S. Supreme Court, and not capable of being infringed on by government.
Political speech that would otherwise be protected by the U.S. Constitution’s First Amendment loses that protection if its source is a corporation.
The Federal Trade Commission is an example of an independent federal level regulatory agency in the United States.
Administrative rules and regulations are not binding like the laws of the U.S. Congress since the heads of administrative agencies are not elected.
0.5 points
Question 34
Which of the following statements is not correct?
Common law is a term for law that is common throughout the world in all major legal systems.
Money damages is the normal remedy at law today in common law legal systems.
Equitable remedies include injunctions and decrees of specific performance.
Generally, a state court can exercise jurisdiction over anyone within the boundaries of the state.
0.5 points
Question 35
“Stare decisis” is the doctrine of:
Separation of powers so that decisions are not made by a single branch of government.
Following precedent so that legal principles in earlier similar cases are followed in later cases.
Constitutional principles applied when making any decision.
Spending long periods of time looking at facts before making a decision.
0.5 points
Question 36
Which of the following is a true statement?
An invitation to negotiate usually will be construed as constituting an offer to enter into a contract.
Under the common law, an offer ordinarily does not need to be communicated to the offeree to be effective.
An agreement under the common law of contracts usually consists of an offer and an acceptance.
In most states in the U.S., the revocation of a contract is not legally effective until it is actually received by the offeree.
0.5 points
Question 37
Which of the following is true?
Offers may not be legally revoked before they are accepted under U.S. law since it would be unethical to do so.
An express contract must be in a formal writing prepared by an attorney.
Parties cannot form a contract without putting the terms in writing.
An executed contract is one that has been fully performed by all the parties to the contract.
0.5 points
Question 38
Digital Company plans to consolidate with Software Corporation to form DS, Inc. This requires the approval of
neither their boards of directors nor their shareholders.
their boards and their shareholders.
their boards only.
their shareholders only.
0.5 points
Question 39
As a U.S. judge, the judge normally
very actively participates in a trial.
does not actively participate in a trial.
is expected to question witnesses in a trial.
is influence by politics.
0.5 points
Question 40
Which of the following is a false statement?
The United States Supreme Court was created by the U.S. Constitution.
The United States District Court is the general jurisdiction trail court in the federal system.
Supreme Court decisions form legal precedents.
The minimum amount in controversy for a federal court to hear a case involving a federal question is $75,000.
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