BUSA 324

The term "jurisdiction" refers to a geographic area in which a court or courts have the power to apply the law.

True

If there is a conflict between a federal agency regulation and a state agency regulation, the state agency regulation takes precedence.

False

Typically, in a criminal case, a private party sues another private party who has failed to comply with a duty.

False

In personam" jurisdiction is the power of the court to exercise jurisdiction over property that is located within its boundaries.

False

Before the court can exercise personal jurisdiction over the defendant, the court must have proof that the defendant was notified of the lawsuit.

True

In the federal court system, there are thirteen U.S. Courts of Appeals, referred to as U.S. Circuit Courts of Appeals. Which judicial circuit is Hawaii in?

Ninth

Contract law and tort law are an example of what kind of law?

Civil Law

Courts apply the minimum-contacts test to determine if they can exercise jurisdiction over out-of-state corporations. The minimum contacts requirement is usually met if the corporation:

Advertises or sells its products within the State

Which of the following is NOT a form of Alternative Dispute Resolution (ADR)?

Litigation

Which of the following is NOT considered an Equitable Maxim?

An eye for an eye

Laws that regulate the time, manner, and place, but not the content of speech receives less scrutiny by the courts than do laws that restrict the content of expression.

T

The Free Exercise Clause guarantees that a person can hold any religious belief that she or he wants, or a person can have no religious belief.

T

Duty-based ethics focuses on the impacts of a decision on society or on key stakeholders.

F

The Second Amendment provides for freedom of speech.

F

The Supremacy Clause provides that when there is a direct conflict between a federal law and a state law, the state law is rendered invalid.

T

If a law or action prohibits a person from exercising a fundamental right, the law or action will be subject to:

Strict scrutiny

Which of the following is NOT protected speech under the First Amendment?

Threatening Speech

Which clause of the U.S. Constitution ensures that rights established under deeds, wills, contracts, and similar instruments in one state will be honored by other states.

The Full Faith and Credit Clause

What is NOT a right guaranteed under the Bill of Rights?

Right for women to vote

The Foreign Corrupt Practices Act prohibits?

Bribery of officials of foreign governments if the purpose of the payment is to motivate the official to act in his or her official capacity to provide business opportunities.

In this week's reading assignment, we learn about the First Amendment and the right to freedom of speech.As we have seen over this past year, many individuals across the U.S. exercised their First Amendment right to freedom of speech at the Black Lives Ma

We learned that the freedom of speech is not absolute and that it may be subject to reasonable restrictions�for example there must be a balance between the government's obligation to protect its citizens and those citizens' exercise of their rights. On it

Tort law is designed to compensate those who have suffered a loss or injury due to another person's wrongful act.

T

Making a negative statement of OPINION about another person is defamation.

F

An assault can occur even if there is no actual contact with the plaintiff, provided that the defendant's conduct creates a reasonable apprehension f imminent harm in the plaintiff.

t

For tort liability to arise, the plaintiff must have suffered some loss, harm, wrong, or invasion of a protected interest.

T

There are NO defenses to negligence claims.

f

What must be established for a claim for wrongful interference with a contractual relationship?
A. A valid, enforceable contract must exist between two parties
B. A third party must know that this contract exists
C. This third party must intentionally ind

D

A false representation made by one party, through misstatement of facts or thorough conduct, with the intention of deceiving another and on which the other reasonably relies to his or her detriment is considered what intentional tort against persons?

B. Fraudulent Misrepresentation

The wrongful possession or use of another person's personal property without just cause is considered what intentional tort against property?

Conversion

The law imposes strict product liability as a matter of public policy. This public policy rests on what assumptions?
A. That the consumer should be protected against unsafe products.
B. That manufacturers and distributors should not escape liability for f

D

Which of the following is NOT a defense to product liability?

The user was a minor (child)

Josh was riding his bike near his home. Although there was a law prohibiting Josh from riding on the sidewalk, Josh decided to disregard the law and rode his bike on the sidewalk. As Josh reached the intersection at the bottom of his hill he suddenly cras

For Jamie to succeed on her claim for negligence she must provide Duty, Breach, Causation, and Damages.Duty: Josh had a duty to obey the law and not ride his bike on the sidewalk. He had to be mindful of the people that could be on the sidewalk and he can

A "trademark" is a grant from the government that gives an inventor the exclusive right to make, use or sell his or her invention for a period of twenty years.

f

Under Section 102 of the Copyright Act, pantomimes and choreographic works (including ballets and other forms of dance) may be copyrightable.

t

In a criminal case, the government must prove its case by a preponderance of the evidence.

f

The Miranda Rule protects individuals from unreasonable searches and seizures.

f

The Sixth Amendment of the U.S. Constitution, provides that a person has a right to a lawyer in various stages in a criminal proceeding.

t

What kind of crime is the crime of embezzlement?

White-Collar Crime

Which of the following is a Defense to criminal liability (except for murder)?

Duress

Which of the following is considered a form of intellectual property?
A. Trade Secrets
B. Trademarks
C. Patents
D. All of the above

d

Which of the following is NOT a protected expression that is copyrightable under Section 102 of the Copyright Act?

Mathematical calculations

Which of the following is NOT legislation that has been enacted by the United States Congress?

The Internet Corporation for Assigned Names and Numbers

Tom and Jerry are hanging out in a park one night when they are approached by Fred and Barney. Fred and Barney were in the mood to cause trouble so they challenge Tom and Jerry to a fist fight. Fred and Barney have no weapons but continue to threaten Tom

Tom, Jerry, Fred and Barney all committed crimes. Fred and Barney both committed the crime of battery when they punched Tom and Jerry. Tom committed the crime of murder when he killed Fred and also committed the crime of robbery when he took Barney's phon

A "void contract" is a valid contract but one that can be avoided at the option of one or both of the parties.

f

The doctrine of "unjust enrichment" is based on the theory that individuals should not be allowed to profit or enrich themselves inequitably at the expense of others.

t

In order to have a valid contract, you must have "consideration".

t

Option contracts are revocable.

f

At common law, the "mirror image rule" requires the offeree's acceptance to match the offeror's offer exactly�to mirror the offer.

t

An offer can be terminated by

A counteroffer

Which of the following conditions are usually required for a court to find that an implied contract was formed?
A. The plaintiff furnished some service or property.
B. The plaintiff expected to be paid for that service or property, and the defendant knew

d

A court will consider a contract to be ambiguous if:

There is uncertainty about a provision in the contract.

Under the "mailbox rule", acceptance takes effect (thus completing formation of the contract):

At the time the offeree sends or delivers the communication via the mode expressly or impliedly authorized by the offeror.

When you visit a website to purchase goods or services and a pop up screen asks you to agree to the terms and conditions of use, if you check the box labeled "I accept" or "I agree", it is likely you have entered into a:

Click-On Agreements

Shelly is a painter. Ben owns a large commercial property in the City. Ben loves Shelly's work as a painter so he gives Shelly a written offer to pay Shelly $10,000 if she will paint a mural on the walls of his commercial property. Shelly wants to take so

No. There is not an enforceable contract between Ben and Shelly. An offer is automatically terminated if the specific subject matter of the offer (such as the commercial property walls) is destroyed before the offer is accepted. Notice of the destruction

Consideration is the value given in exchange for a promise that is necessary to form a contract.

t

Promises made in return for actions or events that have already taken place are not enforceable because past consideration is not sufficient consideration.

t

Under the doctrine of "promissory estoppel", a promise may be enforced even though it is not supported by consideration if certain requirements are met. .

t

Parties to a contract must have "contractual capacity" to form a valid contract.

t

A liquidated debt is one whose amount is not settled, fixed, agreed on, ascertained, or determined and reasonable persons may differ over the amount owed.

f

Alex and Sam have a valid enforceable contract under which Alex agreed to supply Sam with 1,000 gallons of milk in exchange for payment of $5,000. The next day, Alex decides he can get more money from Sam so he demands that Sam pay an additional $500 for

Yes, but Sam only needs to pay the $5,000 he originally agreed to pay Alex for the 1,000 gallons of milk.

Your boss tells all his employees that he will give each employee that he thinks does a good job at work this coming year a $1,000 bonus. This is an example of:

An Illusory Promise

Which of the following is an exception to the consideration requirement?

Promises that induce detrimental reliance (promissory estoppel)

Which of the following individuals is most likely to be found to have contractual capacity?

A twenty-one-year old college student

Which of the following is a contract contrary to public policy?

A contract to commit a tort

One day, when Jo was just 10 years old, her Aunt Marsh wrote in a letter to her that she would give Jo her home if Jo will refrain from getting married until she is at least 30 years old. She signed the letter, "love Aunt Marsh". Jo wrote back to Aunt Mar

There is sufficient consideration because of the legally sufficient value. (Pg.250)
1. A promise to do something that one has no prior legal duty to do.
Aunt Marsh said that she would give Jo her home if she doesn't get married until she's 30
2. The perfo

When both parties are mistaken about the same material fact, the contract can be rescinded by either party.

t

The Statute of Frauds is a law that makes it a crime for people to act fraudulently.

f

Under the statute of frauds, contracts that cannot by their terms be performed within one year from the day after the date of formation are required to be in writing.

t

Specific performance" is an equitable remedy that requires performance of the contract according to its precise terms.

t

A contract entered into under undue influence is void.

f

A contract written exclusively by one party and presented to the other party on a take it or leave it basis is called:

Adhesion contracts

Jim goes to a used car lot to purchase a car. He finds a car he is interested in purchasing and asks the car salesman if the car has any defects. The used car salesman knows that the engine is broken, but tells Jim that there are no problems with the car

Fraudulent misrepresentation

Which of the following must be in writing to be enforceable?
A. If a mother promises to pay a man one-hundred thousand dollars if he marries her daughter.
B. If John promises to buy Jane a condo if she marries him.
C. A couple's prenuptial agreement.
D. A

d

Bob intends to sell his car for $10,000. When he posts his add online, he accidentally posts that the car is for sale for $1,000. This is an example of a:

Unilateral mistake

An oral contract that would otherwise be unenforceable under the Statute of Frauds may be enforced in some states under:

The doctrine of Promissory Estoppel

John is an elderly man who lives with his nephew, Doug. John is totally dependent on Doug for financial support. One day John and Doug were involved in a car accident with Jacky. Jacky had accidentally driven her car into John and Doug's car. John is inju

If she didn't cause the accident and it was his fault, she could have a duress (Pg. 289). Duress is when a party uses threats to force the other party to enter in to a contract. He did threaten her and it is morally wrong of him to do that but she can't r

A contract for personal services can be assigned.

f

When no time for performance is stated in a contract, a "reasonable time" is implied.

t

When no actual damage or financial loss results from a breach of contract and only a technical injury is involved, the court may award nominal damages to the innocent party.

t

A donee beneficiary is a type of incidental beneficiary.

f

Specific Performance" is an equitable remedy only available when monetary damages would be inadequate and never available in personal-service contracts.

t

When each party's performance is conditioned on the other party's performance or tender of performance, this is called:

Concurrent condition

Which of the following is an example of when the "Impossibility of Performance" doctrine would apply?
A. When one of the parties to a personal contract dies or becomes incapacitated prior to performance.
B. When the specific subject matter of the contract

d

Damages that are designed to punish a wrongdoer is called:

Punitive Damages

As a general rule, any duty can be delegated except in which of the following circumstances?
A. When the duties are personal in nature
B. When the contract prohibits delegation
C. When performance by a third party will vary materially from that expected b

d

Which of the following is considered an equitable remedy?

Reformation

Joanne is planning her daughter's sweet sixteen birthday party. Joanne signs a contract with Bruno Bieber and hires him to perform at the birthday party specifically because Bruno Bieber is Joanne's daughter's favorite singer and Joanne wanted her daughte

No Joanne's daughter's friends are not third party beneficiaries to the contract because the contract was made for Joanne's daughter especially. Joanne made the contract with Bruno because it was her daughter's favorite singer not because it was her daugh

When a court finds that a contract is not fully integrated, the court may allow evidence of consistent additional terms to explain or supplement the terms of a contract.

t

Article 2 of the Uniform Commercial Code applies to contracts for the sale of real property (real estate, land), and stocks and bonds.

f

A seller with voidable title has the power to transfer good title to a good faith purchaser for value.

t

Title passes to the bailee in a bailment situation.

f

Under the Uniform Commercial Code 2A-201(1), a lease contract for goods requiring total payments of $1,000 or more must be in writing to be enforceable.

t

Which of the following is an example of when a court may apply the Parol Evidence Rule?
A. When the contract is not fully integrated.
B. When contract terms are ambiguous.
C. When evidence of course of dealing, usage of trade, or course of performance is

d

In which of the following situations does the buyer of goods obtain title that is considered void?

B. When the goods were stolen by the seller and sold to the buyer.

Under the Uniform Commercial Code's Statute of Frauds provisions covering sales and lease contracts (UCC 2-201(1) and UCC 2A-201(1)), which of the following contracts must be in writing to be enforceable?

A contract to lease a cell phone for $100 a month for 12 months (the total payments = $1,200)

In contract terms discussed in the textbook, "F.O.B" means:

The selling price of goods includes transportation costs to the specific place named in the contract.

A clause in a contract that stipulates that other events (such as governmental orders, embargoes, extreme shortages in materials) will excuse liability for nonperformance is called:

A force majeur clause

When Hurricane Zane was expected to hit the Hawaiian islands, Ben rushed to The Depot to purchase a power generator. When he arrived at the store, he found the power generators were being sold for $900.00 each. Ben finds Jerry, a sales person for The Depo

The UCC section that would apply to Ben's claim is UCC 2-302, 2A-108. If he is successful in proving that the contract is unconscionable then the court can refuse to enforce the contract, enforce the remainder of the contract without the unconscionable pa

Under the Perfect Tender Rule, if the goods or tender of delivery fail to conform to the contract, the buyer may accept the goods, reject the entire shipment, or accept part and reject part.

t

There are no exceptions to the Perfect Tender Rule.

f

If the buyer breaches the contract before the goods have been delivered, the seller has the right to resell the goods and sue to recover damages.

t

A seller's statement of opinion or value of the goods sold creates an express warranty.

f

Implied warranties can arise as a result of course of dealing or usage of trade.

t

When the seller breaches the contract, the buyer has the right to:
A. Buy other goods and recover damages from the seller.
B. Cancel the contract.
C. Sue for specific performance if the goods are unique or damages are an inadequate remedy.
D. All of the a

d

In a Letter of Credit Transaction, the bank or financial institution is usually referred to as the:

Issuer

If warranties conflict or are inconsistent, which of the following rules does the court usually apply to interpret which warranty is most important?
A. Express warranties displace inconsistent implied warranties, except implied warranties of fitness for a

d

Which of the following is an express warranty?

Description of the goods

Which of the following is a warranty of title?

No Liens

Sammy bought a cup of coffee from Hot Cup o Joe. The coffee had been heated to be scalding hot and consequently the hot coffee had dissolved the inside of the cup. When Sammy lifted the lid, the cup collapsed, spilling the scalding hot coffee on her lap.

Yes because even though she wanted hot coffee she wasn't expecting scalding hot coffee that gave her third-degree burns. For merchantable food, courts determine whether the food is fit to eat on the basis of the consumers expectation. Sammy's expectations

Principals have a duty of Loyalty to their Agents.

f

Employees who deal with third parties are generally deemed to be agents of the Employer.

t

Under the Copyright Act, any copyrighted work created by an employee within the scope of his or her employment at the request of the employer is considered "work for hire" and therefore is owned by the employer.

t

When an agent is given the authority to perform only specified acts, this is considered a general power of attorney.

f

An agent can be given authority when the principal, by either word or action, causes a third party to reasonably believe that the agent has authority to act on the principal's behalf even though the agent has no express or implied authority.

t

An agency relationship may arise by:
A. An express or implied agreement
B. Ratification
C. Estoppel
D. All of the above

d

Which of the following is a False statement?

A gratuitous agent may be liable for breach of contract.

The rule that says if a contract being executed is or must be in writing, then the agent's authority must also be in writing is called:

The Equal Dignity Rule

A principal-agent relationship can be terminated by:
A. Lapse of Time
B. Achievement of the purpose for which the agency relationship was created
C. Mutual agreement
D. All of the above

d

Jane hires Kimi to sell her house. Before Kimi could sell the house, the house is destroyed by fire. Which of the following is a true statement:

Kimi's agency and authority to sell the house is terminated by impossibility of performance.

Sheldon is a pizza delivery driver for Pete's Pizza. As part of his job at Pete's Pizza, Sheldon is responsible for driving a Pete's Pizza van to deliver pizzas to Pete's Pizza customers within 30 minutes. One day, while Sheldon was working, he received a

No Pete's Pizza is not liable because Sheldon decided to "frolic" with his friends on the other side of the island and drink alcohol. The difference between detour and frolic is that if this was a detour from the company's business than they would be held

The Family and Medical Leave Act requires employers that have 50 or more employees to provide unpaid leave to care for the employee's spouse, child, or parent who has a serious health condition.

t

An injury that occurs while an employee is commuting to or from work is usually covered by Workers' Compensation law.

f

The Consolidated Omnibus Budget Reconciliation Act prohibits an employer from eliminating a worker's medical, vision, or dental insurance when the worker's employment is terminated or the worker's hours are reduced unless the worker was fired for gross mi

t

Quid pro quo harassment is a form of sexual harassment that occurs when a pattern of sexually offensive conduct runs throughout the workplace and the employer has not taken steps to prevent or discourage it.

f

To be protected under Title VII of the Civil Rights Acts retaliation provisions, the plaintiff must have opposed a practice prohibited by Title VII and suffered an adverse employment action as a result of that opposition.

t

The doctrine that allows either party in an employment relationship to terminate the employment relationship at any time and for any reason, unless doing so would violate the employee's statutory or contractual rights is called the doctrine of:

Employment at will

When the employer shuts down to prevent employees from working, such an act is called a:

Lockout

Title VII of the Civil Rights Act prohibits job discrimination against employees, applicants, and union members on the basis of race, color, national origin, religion and gender at which stage of employment?
A. During the hiring process
B. During discharg

d

Which of the following is a defense to employment discrimination?

Business Necessity

To prevail on a claim under the Americans with Disability Act, one of the things a plaintiff must show is that he or she:

Was excluded from the employment solely because of the disability.

Harry works for ABC Bar and Grill as a waiter. Judy is a frequent customer to ABC Bar and Grill and often sits in Harry's section of the restaurant so that she can flirt with Harry. Judy would often kiss and hug Harry whenever she sees him while he is wor

Harry does have a claim against ABC Bar and Grill because he complained to the manager and HR department and they did nothing about it. The court can say they are liable even if she is a non-employee because they still failed to take immediate action. Pg.

When a third person has reasonably and detrimentally relied on the representation that a nonpartner was part of a partnership, a court may conclude that a partnership by estoppel exists.

t

A limited partnership consists of at least one general partner and one or more limited partners.

t

Under a Limited Liability Limited Partnership (LLLP), the liability of only the limited partners is limited to the amount of their investments in the firm.

f

For two years after a partner dissociates from a continuing partnership, the partnership may be bound by the acts of the dissociated partner based on apparent authority.

t

Franchises are solely regulated by State laws.

f

An arrangement in which the owner of intellectual property licenses others to use it in the selling of goods or services is known as:

franchise

Which of the following is a type of Franchise?

Distributorship

A partnership's losses:

Can be deducted from the partners' individual tax return.

The termination of a partnership is referred to as:

Dissolution

Which of the following is a right that partners have in a partnership?

A right to an accounting of partnership assets or profits.

Surf Partners is an existing general partnership with two partners, Jeff and Damon. Over the years, Surf Partners has incurred over $200,000 in debt. As of 2010, the partnership owed $200,000 in debt to the Bank of Honolulu. In 2020, Jeff and Damon decide

Chris will be held liable for the $100,000 from First Local Bank because he joined the partnership later and he won't be held liable for the debt that they owned before he came in the partnership. In the textbook it states that "A partner newly admitted t

If a Limited Liability Company member commingles personal and business funds, a court can imposed personal liability upon the member.

t

Voting shares that represent ownership interest in a corporation is called "Common Stock".

t

A corporation formed in one state but doing business in another is referred to in the second state as a domestic corporation.

f

When a member dissociates from a limited liability company, the members duty of loyalty continues until the other members release the dissociated member from such duty.

f

Corporations may not be held liable for the criminal acts of its agents and employees.

t

A corporation that is designed for businesses that want to consider society and the environment in addition to profit is called a:

Benefit Corporation

An association that is organized to provide an economic service to its members is called a:

Cooperative

A limited liability company that is managed by a designated person or group of persons is called a:

Manager-managed LLC

When a limited liability company is dissolved, members must collect, liquidate, and distribute the limited liability company's assets. Once all of the limited liability company's assets have been sold, the proceeds are distributed. Who is paid first from

The limited liability company's creditors (including members who are creditors)

When a corporation is so dominated and controlled by an individual (or group) that the separate identities of the person (or group) and the corporation are no longer distinct, courts will apply this legal theory to avoid injustice or fraud that would resu

Alter Ego theory

Jennifer, Ken and Jason are medical physicians that decide to start a medical practice together. They decide to form a professional corporation together where they are all professional shareholder-owners in the professional corporation. They call their pr

Yes. Jennifer, Ken and Jason may be held liable for Ken's malpractice. Generally a shareholder in a professional corporation cannot be held liable for torts committed by other professionals at the firm except those related to malpractice or breach of duty