Bill is a technician at a university chemistry lab and is in charge of safety inspections and prevention of injury due to faulty equipment. One morning, as a result of his inspection, Bill discovers a gas burner with a broken valve. Bill gets distracted and fails to put an “OUT OF ORDER/DO NOT USE” sign on the faulty burner. When the morning class arrives, Halle uses the faulty burner and is burned when it catches fire. Bill’s negligence is based on: nonfeasance. misfeasance. negligence per se. res ipsa loquitur. A person cannot be guilty of negligence if he or she has no duty owed to the plaintiff. True False Jessica was caught shoplifting at a department store both by employees who witnessed the act and by cameras in the store. The store’s management may hold her as long as it takes to get her to confess. True False

Bill is a technician
at a university chemistry lab and is in charge of safety inspections and
prevention of injury due to faulty equipment. One morning, as a result of his
inspection, Bill discovers a gas burner with a broken valve. Bill gets
distracted and fails to put an “OUT OF ORDER/DO NOT USE” sign on the
faulty burner. When the morning class arrives, Halle uses the faulty burner and
is burned when it catches fire. Bill’s negligence is based on:

nonfeasance.

misfeasance.

negligence per se.

res ipsa loquitur.

A person cannot be
guilty of negligence if he or she has no duty owed to the plaintiff.

True

False
Jessica was caught
shoplifting at a department store both by employees who witnessed the act and
by cameras in the store. The store’s management may hold her as long as it
takes to get her to confess.

True

False
he highest and most
comprehensive duty owed by a landowner to a person on the owner’s property is
owed to:

an invitee.

a licensee.

an accidental trespasser.

an intentional trespasser.
The point at which
liability for negligence stops is called:

proximate cause.

negligence per se.

res ipsa loquitur.

negligence interruptus.
The Happy Days Day
Care is hiring a child care worker. On the employment application Happy Days
specifically asks if the applicant has ever been arrested. Tina applies for a
job at Happy Days and answers no to that question. She also answers no to the
question that asks if there is any reason that she would not be qualified to
work with children. Soon after Tina is hired, she severely shakes a baby to
stop it from crying, causing the baby injuries. It is discovered at trial that
Tina has been fired from numerous day cares for baby shaking and various other
offenses. If the baby’s parents sue Happy Days:

Happy Days is not liable because it made a good faith effort
to screen applicants and because it specifically asked about past
indiscretions.

Happy Days is liable because Tina was dealing not with the
public but only with children.

Happy Days is liable for negligent hiring.

Happy Days is liable for negligent retention.
Your professor is a
partially disclosed agent representing your school.

True

False
The centerpiece of a fiduciary relationship is the agent’s
duty to act with due care when performing the responsibilities of the agency.

True

False
Jethro is having a
sweet-16 birthday party for his daughter Kate in his backyard. To make the party
special, he hires Tony to put on a fireworks display. He found Tony through a
classified ad in the local newspaper. In the written contract, Jethro simply
instructs Tony to begin the display at 8 p.m., make it last 16 minutes, and
make it spectacular; no safety parameters are mentioned or discussed. During
the finale, one of the rockets malfunctions and explodes amid the party guests,
injuring eight people. Jethro has no liability because Tony was an independent
contractor.

True

False
An agent may work for
two principals at the same time if the agent deals fairly with both.

True

False
Once the union
organizers obtain authorization cards from at least ________ of the members of
a bargaining unit, an election will be scheduled by the NLRB.

20 percent

25 percent

30 percent

35 percent
Employees making
complaints to the Occupational Safety and Health Administration are protected
under the Occupational Safety and Health Act’s whistle-blowing provisions.

True

False
Employers are not
required to offer their employees health care benefits.

True

False
Under the Patient
Protection and Affordable Care Act and the Health Care and Education
Reconciliation Act, individuals not covered under a health care plan by 2014
are required to purchase a plan through a health care exchange.

True

False
Leah is a first-year
elementary school teacher at a private religious school. The parents and kids
love her, and she gets along with everyone. One month after starting, she’s
called into the headmaster’s office and handed an envelope containing spring-break
college photos of her topless, guzzling beer and alcohol, while sitting in
various men’s laps. The headmaster informs her that she is terminated
immediately and that she must clean out her desk and remove all personal
belongings by the end of the day. She demands to know where the headmaster got
these photos, and he tells her that the school monitors social networking
sites. These pictures had been posted to a site she no longer uses and had
forgotten about. She will be successful if she sues for wrongful termination
based on invasion of privacy.

True

False
In PGA Tour Inc., v.
Martin, Martin was a golfer who sought accommodation, under the Americans with
Disabilities Act, for a recognized disability that caused pain due to
restricted blood flow between his legs and heart. He asked to use a cart, which
would permit him to play full rounds of golf. The PGA responded that its rules
prohibited carts during tournament play and that allowing cart use would
fundamentally change the game. The court determined that:

Martin should be allowed to use the cart because it provides
him with little or no advantage under the circumstances and such an
accommodation is not unreasonable and does not fundamentally change the game.

Martin should be allowed to use the cart because carts are
used at country clubs where strict rules of golf are required, so the PGA ban
is arbitrary and discriminatory.

Martin should not be allowed to use the cart because having
one player using a cart and banning all others discriminates against the other
players.

Martin should not be allowed to use the cart because there
are other accommodations offered by the PGA that are reasonable and Martin has
no right to reject them.
Jon and Amy work for
Dover Farm and Home Company. Jon and Amy are caught one day stealing a tractor.
The next day, Jon was given a verbal warning and Amy was terminated.

Amy has a claim for discrimination based on gender
discrimination.

If the company has a written policy providing for
termination for theft, Amy does not have a claim for discrimination based on
gender discrimination.

Amy does not have a claim for discrimination based on gender
discrimination if Jon has more seniority.

Amy does not have a claim for gender discrimination if she
is paid more than Jon.
The Equal Pay Act was
written to prohibit racial discrimination in pay.

True

False
An employee has filed
a claim of discrimination with the EEOC. If the EEOC investigates and
determines that it will not follow through with a lawsuit representing the
employee, the employee has no recourse and cannot file a private lawsuit.

True

False
Your school’s
football coach has just been fired. When the athletic director informs him of
the termination, he tells the coach that although he has had recent winning
seasons, the inability to make it into postseason play and his inability to
groom players for the pros has weighed prominently in the decision. The coach
is also told that his recruiting has not been effective and that his
fund-raising has been disappointing. The AD then tells him that his pretty-boy
image makes him look too effeminate, he dresses like a nerd, and he doesn’t
portray the proper image of a head football coach desired by the school. The
coach’s best theory for pursuing a discrimination lawsuit is:

disparate treatment discrimination.

mixed motives discrimination.

disparate impact discrimination.

pretextual discrimination.
Lisa and Tara are
operating a business as a general partnership without an express partnership
agreement. Should a dispute arise, the courts will look to ________ to resolve
the issue regarding operation of the partnership.

common law

state contract law

the Revised Uniform Partnership Act

federal contract law
Mike is a limited
partner in Big Blue, LP. The partnership agreement permits him to have a say in
the removal of general partners and the blocking of new partners. This
agreement will jeopardize his limited partner status.

True

False
Which of the
following does not require the filing of a form with a government agency to
come into existence?

a general partnership

a limited liability company

a corporation

a limited partnership
Frank and Jesse are
operating as a general partnership. A question has arisen that is not covered
under their partnership agreement and also not addressed by the Revised Uniform
Partnership Act. What will the courts do to resolve the situation?

dissolve the partnership and allow them to reform

look to foreign partnership laws because the RUPA
encompasses all U.S. partnership law

look to common law

look to the UCC for a gap filler
Principals generally
have no personal liability for the business entity’s debts regarding:

limited partnerships.

limited liability partnerships.

corporations.

limited liability companies.
LLPs are formed with
the filing of ________ with the proper public official.

a statement of qualification

a certificate of formation: LLP

a record of business creation

articles of organization
The ability to
distribute earnings without incurring double-level taxation is an advantage of
a:

pass-through entity.

corporate tax structure.

member-managed LLC.

manager-managed LLC.
An LLC is required to
name a member as its registered agent and may not use a commercial registered
office provider.

True

False
The origins of LLPs were rooted in protection of:

private service firm partnerships.

private service firm sole proprietorships.

professional service firm partnerships.

professional service firm sole proprietorships.
An insurance company
cannot qualify for Subchapter S corporate status.

True

False
A corporation exists
as an independent person separate from its principals.

True

False
A new start-up
corporation has gone to a bank for a commercial loan. Recognizing the start-up
status of the business and the limited assets the corporation currently
possesses, the bank, to protect its interests, may require that either
collateral be pledged or a personal guarantee be signed by shareholders but may
not require both.

True

False
The Revised Model
Business Corporation Act provides that a self-dealing transaction is not a
breach of the duty of loyalty if a majority of disinterested parties approve
the transaction after disclosure of the conflict.

True

False
Corporate bondholders are creditors of the corporation but
are not shareholders.

True

False
Assumption of risk by
the investor is a defense available for allegations of 33 Act violations.

True

False
The primary market
consists of securities sales in public markets, while the secondary market
consists of security sales in private placements.

True

False
One form of private
placement exemption involves sales of securities:

in limited dollar amounts to nonaccredited investors.

only to employees, officers, and board members of the
issuing corporation.

to accredited investors.

to other corporations, with no sales to individuals
permitted.
Public corporation
disclosures and filings are made available to the general public.

True

False

The SEC maintains
________ regional offices, throughout the United States, where much of its
day-to-day work is done.

8

11

13

21