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BUS 415 Part One - Multiple Choice Please choose the

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BUS 415

Part One - Multiple Choice

Please choose the correct answer. Each question is worth one point.

1.     The concept of flexibility in the law is best illustrated by:

     a.     The use of precedent to decide similar cases in similar ways.
b.     The ability to overturn precedent when it is no longer valid or when it is erroneous.
     c.     The use of appointed judges rather than elected judges.
     d.     Imposing mandatory penalties for criminal violations.

2.     Assume that there is a provision in the Colorado state constitution that is in conflict with a statute that was passed by the U.S. Congress and enacted into law. Which is true?

a.     The Colorado constitutional provision will control; the federal statute is invalid.
b.     The federal statute will control and make the state constitutional provision invalid.
c.     In Colorado, the Colorado constitutional provision will control over the statute passed by Congress, but the federal statute will apply in the other 49 states.
d.     Within Colorado, whichever was passed first will control over the other.

3.     The concept of standing requires that:

     a.     Parties appear in person in order to present their cases.
     b.     A plaintiff has a stake in the outcome of a case.
c.     Parties must always be represented by a properly admitted member of the bar.
d.     Both parties must always be given a chance to appeal once a judgment has been entered.

4.     When an appellate court receives a case appealed to it, it will:

     a.     Retry the case with a new jury.
b.     Review the jury’s verdict to see if the appellate court judges would have reached the same result.
     c.     Retry the case with the appellate court judge acting as the jury.
d.     Review the record of the trial court to see if there were any errors of law made by the judge.

5.     A business that continues to operate its domestic factories in order to avoid layoffs rather than shift its production overseas at lower cost is most directly applying which theory of the social responsibility of business?

     a.     Moral minimum.
     b.     Maximizing profits.
     c.     Stakeholder interests.
     d.     Corporate citizenship

6.     Which of the following is true regarding contract validity?

a.     A void contract is one where a party has the option to avoid her contractual liability.     
b.     A voidable contract is one in which a party may avoid her obligation under that contract.
c.     A voidable contract is one that has no legal effect because one of the essential elements is missing.
d.     An executory contract is also unenforceable.

7.     Under which of the following circumstances can the mistaken party rescind a contract when there is a unilateral mistake?

a.     The mistaken party first held the mistaken belief prior to entering into the contract.
b.     The mistaken belief is one that a reasonable person would have made.
     c.     The nonmistaken party was aware of the mistaken party’s belief.
     d.     The mistake has a material effect on the value of the contract.

8.     Patty owned a sole proprietorship. She had four salespersons selling the company’s products. One of her salespersons made false statements about a competitor’s products while trying to sell Patty’s products. The competitor sues Patty’s business and wins the lawsuit. Under what circumstances could Patty be personally responsible to pay the judgment?

a.     None, because this was a debt of the business.
b.     If Patty was separately named in the lawsuit.
c.     If Patty knew about the salesperson’s activities.
d.     Patty is liable here regardless of any other circumstances.

9.     Mark recently started a small business, and acquired a domain name for the business. At the same time he remembered hearing about people buying up names related to companies and famous individuals and then selling the names for astronomical sums. Mark wants to buy the domain name, “” He figures he will start a fan club for the famous movie star, and then see if he can sell the domain name to her for a profit. Which is true in these circumstances regarding Mark’s options?

a.     He will be unable to buy the name because it is the name of a person.
b.     He will have to give Sharon Stone the first opportunity to buy the name.
c.     He could buy the domain name, but could be liable under the Anticybersquatting Consumer Protection Act if it is proven that he acted in bad faith in acquiring the name.
d.      He could buy the domain name, but could be liable under the Anticybersquatting Consumer Protection Act if it can be proven that he acted in bad faith in acquiring the name and only if Sharon Stone can prove that she suffered damages from his Web site.

10.     Which of the following is true?

     a.     All employees are agents, and no independent contractors are agents.
b.     All employees are agents, and some independent contractors are agents.
c.     Some employees are agents, and some independent contractors are agents.
     d.     Some employees are agents, and no independent contractors are agents.

11.     Which of the following is true if someone believes that he was fired from a job because of his religion?

a.     He must prove that the person who fired him is of a different religion.
b.     He must first file a complaint with the Equal Employment Opportunity Commission.
c.     He will not have a claim if the employer has a disproportionately high number of employees of the same religion as his.
d.     He must prove that he is a reasonably active practitioner of his religion.

12.     Under what conditions must an employer allow nonemployee union solicitation on company property?

a.     If there is currently no union representing the company’s employees.
b.     If the employees live in a company town such that it would be difficult to solicit the employees off company property.
c.     If the purpose is to solicit employees to change union representation rather than to solicit nonunion workers to join a union.
d.     If the purpose of the union is to address issues other than wages.

13.     If a party has presented a complaint to the Equal Employment Opportunity Commission about alleged discrimination in violation of the Civil Rights Act of 1964, and the EEOC decides to not bring a suit on behalf of the employee, the EEOC will issue a(n):

     a.     Order of dismissal of the complaint.
     b.     Notice of the complainant’s right to appeal to the appropriate court
                      of appeals.
     c.     Judgment in the employer’s favor.
     d.     Right to sue letter.

14.     Bob, an employee of Risky Manufacturing, Inc., is accidentally injured by a fellow worker while working his shift. Under workers’ compensation, Bob can:

a.     Sue Risky or seek workers’ compensation recovery, but not both.
b.     Sue Risky or seek workers’ compensation recovery.
c.     Seek workers’ compensation but not sue Risky.
d.     Recover from workers’ compensation only if Risky was negligent in allowing the injury to occur.

15.     Paul purchased a deluxe motor home from Wide Open Spaces Motor Homes. In a product liability suit against Wide Open Spaces Motor Home Corporation, Paul must show which of the following in order to recover?

     a.     That Wide Open Spaces was the manufacturer of the motor home, and not just a dealer.
     b.     That the negligence of Wide Open Spaces led to Paul’s injury.
     c.     That a “defect” made the motor home unreasonably dangerous, leading to the injury.
     d.     That Paul was not misusing the motor home when the injury occurred.

Part Two – Short Essay

Please provide a written answer to each question in a separate document that you will post in your Individual forum. Your response to each question should: 1) identify the issue(s) (“This question is about…”; 2) define any relevant terms (“Apparent authority is…); 3) an answer or resolution to the question (Under these facts, there is no contract.); and 4) explain how/why you reached your conclusion (“One of the necessary elements of a contract is missing – consideration. There is no consideration because…”)

Each question is worth two points and you will receive partial credit for partially-correct responses.

1.     Max took his family and a couple of friends out to one of the best restaurants in town to celebrate his recent promotion. Unfortunately, several of his family members suffered injuries from items in the food that night. First, Max broke a tooth on an olive pit in one of the olives in his Greek salad. Shortly thereafter, Max’s wife was injured by a piece of glass in her soup. Then one of Max’s friends was hurt by some sharp bones in his salmon filet. One of Max’s daughters was hurt by an olive pit that was in her mashed potatoes. His other daughter was hurt by a crusty chicken foot in her chicken salad sandwich. Wanting to salvage some aspect of the evening, Max stopped at an ice cream shop on the way home. Upon biting into his ice cream, Max broke another tooth on a piece of bone from a cow. The next evening, as Max was straining his dinner before eating it, he wondered which problems from the prior night would support a breach of warranty claim.

2.     One night at a restaurant, Mark and Mary wrote up an agreement on a couple of napkins about a construction project whereby Mark would build a room addition to Mary’s house. Mark said he would do this in exchange for Mary agreeing to transfer an empty piece of land that she owned to Mark. It took two napkins because the agreement would not fit on a single napkin. Mark signed one of the napkins, but Mary signed neither. The contract price was $30,000. A few days later Mark saw the plans, which were more complex than he expected. Discuss the enforceability of this contract.

3.     Roberto has been asked to be a member of Holtin's board of directors. He is concerned about potential personal liability for actions as a director. Discuss ways in which Roberto can protect himself against personal liability.

4.     Monty was an odd sort of fellow who spent most of his time tinkering in his garage. He was certain that some day he would invent something that would make him very wealthy. Finally, he thinks he has the million-dollar idea. He has invented a device that attaches to both his phone line and through his computer to the Internet to block telemarketing calls without having to pay a service fee for the capability to the local phone company. The technology for this already existed, but Monty was the first to put it together in this way. Monty is waiting to perfect this invention before filing a patent application. Monty learns that someone else has invented a similar device after he did, but has already filed an application. Also, someone broke into Monty’s garage and stole the information about the invention. Discuss Monty’s legal situation.

5.     Sam is a sales representative for a pharmaceutical firm. Sam frequently plays golf with his clients and potential clients. One summer weekend when he is on vacation at his family’s home in Myrtle Beach, Sam runs into a couple of his clients who are attending a medical convention. They arrange to meet and play golf on Sunday. While on the sixth hole, another golfer tees off prematurely and Sam is struck in the head by a golf ball. Can Sam recover under workers’ compensation? What remedies are available to Sam?
Submitted: 7 years ago.
Category: Legal
Expert:  socrateaser replied 7 years ago.

1. (b)
2. (b)
3. (b)
4. (d)
5. (d)
6. (b)
7. (c)
8. (d)
9. (c)


1. Under the Uniform Commercial Code, where goods (tangible personal property) are not of "fair and merchantable quality," they will support a claim for a breach of the implied warranty of merchantablility. All of the injuries described in this scenario provide potential claims for breach of warranty. However, the better claim is for negligence, because a breach of warranty claim will only provide damages in the amount of the contract price, which is the value of the meals purchased, and possibly the medical bills. Whereas a negligence action would support damages for pain and suffering in addition to the cost of the food and medical.


2. Under the Statute of Frauds, a contract for the transfer of an interest in real property for more than one year must be in writing. An exception exists where the purchaser takes possession and makes improvements. Here, Mary never signed the agreement with Mark, so Mark cannot enforce the agreement against Mary, unless she either admits to having made the agreement with Mark. Mary, however could enforce the agreement against Mark, because he signed the napkin. However, Mark may be able to rescind out of the agreement if he can show by clear and convincing evidence that Mary knew that the project was more difficult than Mark imagined and that the value of Mary's property would not reasonably cover Mark's costs in undertaking the construction.


3. Roberto's only true recourse is to obtain liability insurance for his errors and omissions associated with actions as a director. This is true, even though the corporation must indemnify directors for acting in good faith upon well informed business judgment, because, ultimately, the corporation may be unable to pay a damage award against Roberto.


4. In most nations, the first person to patent an invention is entitled to prevent others from profiting from that invention, even though they may have actuall developed the invention before the patent owner. In the USA, the first person to invent is entitled to priority, even over the first person to file a patent for the same invention.


Monty is thus protected under U.S. law, however he will be unable to protect his invention worldwide. Monty can exercise his rights against the thief for using the stolen information in violation of State trade secret laws, at least in U.S. jurisdictions. However, outside the USA, Monty would be unable to prevent the thief from using the information, unless it is used a manner that is not related to the patented invention.


5. Workers compensation is available to an employee who is injured while acting within the scope of employment. Sam was apparently on vacation when he met with the clients to play golf. Therefore, he could not recover under workers compensation, because the golf game was not during an employment-related sales meeting. However, Sam can sue the person who hit him with the ball under a common-law negligence theory.

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