(BUS& 201, Business Law, Hatsta) Midterm Assessment, Summer 2015

| March 14, 2016

Question
Midterm Assessment, Summer 2015

1.

Presidents claim the power to issue executive orders on the basis of their Article II, Section 1, constitutional power to “take care that the laws be faithfully executed.”

True

False

2.

Consequentialism provides a rigid set of rules to follow regardless of the situation.

True

False

3.

Which of the following would constitute the privacy tort of false light?

Defaming a public figure for personal gain.

Attributing characteristics or beliefs to a person that he or she does not possess.

Disclosing private facts about a person in order to obtain some sort of personal gain.

Defaming a public figure.

Defaming a person with actual malice.

“Chocolate Chips.” Molly makes great chocolate chip cookies and sells them in her café called “Molly’s Famous Chocolate Chips.” Some of her friends express interest in selling her cookies. They want to use her name and identify the cookies as “Molly’s Famous Chocolate Chips.” Seeing a business opportunity, Molly agrees to bake the cookies and provide them in a frozen state to her friends who will open other cafés under her café’s name. Molly strictly controls all packaging and sales. She also frequently inspects kitchens used by the sellers pursuant to her agreements with them. Suzette, one of Molly’s friends who entered into an agreement with Molly to open a café and sell the cookies, was not being sufficiently careful and negligently put a harmful ingredient into the cookie dough resulting in a customer, Fred, becoming ill. Fred threatens to sue both Suzette and Molly. Molly is so exasperated that she cancels all the franchise contracts on the basis of aggravation. Although the franchise agreements provide that so long as requirements are met, the franchise agreements are good for a period of two years, Molly takes the position that the cookies involve a personal service using a trade secret and that she cannot be held liable for discontinuation.

4.

Required information

Which of the following is true regarding Molly’s inspections of kitchens?

Franchise law prohibits such inspections because a franchisee is seen as a separate partnership.

Franchise law prohibits such inspections because a franchisee is seen as a separate corporation.

Molly had the right to inspect the kitchens.

Molly had the right to do so only if workers’ compensation claims had been filed against the franchisees involved.

Molly had the right to do so only if she can establish the existence of customer complaints.

“Wrong Deck.” Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor’s deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor’s deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed.

5.

Required information

Which of the following is true regarding Jackson’s assertion that Penny must pay him at this point if the neighbor fails to do so?

He is correct because an implied contract existed, and he made an honest mistake for which Penny must accept the risk.

He is correct because a valid contract existed; and, after his performance, it is considered executed.

He is incorrect unless he can somehow establish that Penny gave him poor directions or was otherwise at fault in informing him which deck to paint, and the contract remains executory.

He is correct because an express contract existed, and he made an honest mistake for which Penny must accept the risk.

He is correct because an implied-in-law contract existed.

6.

How was the process of judicial review established under which courts review legislative and executive actions to determine whether they are constitutional?

By executive proclamation

By early common law

By vote of the U.S. House of Representatives

By vote of the U.S. Senate

By vote of both the U.S. Senate and the U.S. House of Representatives

7.

Which of the following isfalseregarding limited liability partnerships in Japan?

Japan’s limited liability partnership law limits the liability of its members by their capital contribution.

When members are establishing the rules of the limited liability partnership, Japan requires either the agreement of all members or a majority of at least two-thirds of the members.

Japan’s limited liability partnership law puts restrictions on the distribution of partnership assets.

In regard to profits, the Japan’s limited liability partnership law requires that the members manage the business and negotiate among each other to determine how profits and losses should be distributed among individual members.

The limited liability partnership has been recognized in Japan since the 1950s.

8.

What did the U.S. Supreme Court rule in the case ofRobert Gilmer v. Interstate/Johnson Lane Corporationinvolving whether a claim under the federal Age Discrimination in Employment Act was subject to arbitration?

That arbitration was an inadequate remedy because arbitrators may not fashion equitable remedies.

That the text of the federal Age Discrimination in Employment Act prohibited arbitration.

That the agreement by which the plaintiff agreed to arbitrate all employment disputes as a condition of his employment was valid.

That the EEOC would be bound by the employee’s agreement to arbitrate all employment disputes and that, therefore, requiring arbitration would be improper.

That compulsory arbitration improperly deprived the plaintiff of a public forum through which to prove his claims.

9.

Juries decide questions of law.

True

False

“Contraceptive Injuries.” Drug company ABC Drugs came out with a new birth control pill guaranteed to prevent pregnancy for one year after the consumption of one pill. The FDA approved warnings of the drug’s side effects including nausea and headache to be provided with the pill. After it was initially put on the market, the company became aware of some risks of dizziness from taking the drug. The company, however, did not warn of that risk because the company was concerned that individuals might not buy the pill, and federal law did not specifically require a warning regarding dizziness. Belinda thought the pill was a great idea and obtained a prescription for it at a date after the company became aware of the issues involving dizziness. She took one and felt fine for a few days. Then, however, she began feeling dizzy. Her dizziness caused her to fall breaking her leg on some steps. She later discovered that the birth control pill likely made her dizzy. Belinda decided to sue under a state law claim for failure to warn, however, she waited a number of years before bringing her action. The drug company claimed that it had no duty to list dizziness as a risk because its warning complied with all FDA requirements. The drug company also claimed that the time in which it could be sued had expired both because Belinda waited too long after she was injured and also too long from the date of product purchase.

10.

Required information

What is the most likely result regarding the company’s position that it had no duty to warn of the risk of dizziness because it complied with FDA requirements?

That absent clear evidence that the FDA would not have approved a change in the warning to include dizziness, a state law cause of action based on failure to warn would be allowed.

That while the plaintiff could go forward with a federal claim in relation to the lack of a warning regarding dizziness, a state law cause of action would be barred because of the company’s compliance with FDA regulations.

That no warning regarding dizziness could be required in addition to FDA approved warnings because dizziness is not a serious condition causing a “black box” type of warning involving risk of serious injury death.

That a state law cause of action would be allowed to go forward only upon the submission of clear evidence that a regulatory agency of the state had requested that the warning label be revised to warn of dizziness.

That the Federal Food, Drug, and Cosmetic Act (FDCA) establishes both a floor and a ceiling for drug regulation and that no additional warning requirements regarding dizziness could be imposed.

11.

Required information

The defense that Belinda waited too long after the product was purchased in which to sue is a defense based upon which of the following?

The statute of limitations.

The statute of perpetuity.

The statute of time.

The statute of repose.

The statute of dates.

“Green Gold.” Martin owned a factory in which he manufactured furniture. Martin had some extra space in the factory and decided to use heat lamps to grow marijuana. He smuggled the marijuana into the hands of dealers by hollowing out the furniture and placing the marijuana inside and by putting the marijuana in drawers, etc. Law enforcement became suspicious and unexpectedly burst into the building without a warrant, discovering the marijuana. Martin asked the agent in charge about the lack of a warrant. The agent told him that Fourth Amendment protections did not extend to businesses. Martin was charged with growing marijuana. Martin refused to testify at trial. At his trial, however, the judge excluded any evidence obtained from the search, and Martin was declared not guilty because there was no evidence against him. The agent was very angry and arrested Martin immediately for the same offense as he was walking down the courthouse steps from the first trial. The agent tells Martin that he should be tried again because the judge was incorrect. Martin is placed in a holding cell and immediately calls his attorney in an attempt to get out of jail free.

12.

Required information

Upon which of the following defenses would Martin’s lawyer rely upon in regards to the second charge after Martin was found not guilty?

The Eighth Amendment

The Sixth Amendment

The defense of double jeopardy

The Fifth defense

The Single Trial defense

13.

Which of the following is true regarding rights of the citizens of Belarus?

The constitution limits the workweek to 30 hours.

Citizens accused of crimes are presumed innocent until proven guilty.

The constitution restricts movement outside of the country.

Citizens have the right to profess any religion, but they must profess some religion.

The defendant in a criminal case has no protection from providing evidence against himself or herself.

14.

Which of the following refers to the extent to which, as a matter of policy, a defendant may be held liable for the consequences of his actions?

Proximate cause.

Cause in fact.

Actual cause.

Significant cause.

Legal cause.

“Miracle Face.” Tara developed a great new type of face cream guaranteed to provide total sun protection, remove wrinkles, and result in anyone looking at least ten years younger. Her product, Miracle Face, became extremely popular in the U.S., where she has several shops, and also in other countries to which it was shipped. Tara has a number of individuals in other countries seeking to team with her in selling Miracle Face. Sam, a citizen of Mexico, asks that she grant him permission to use her name and any associated trademarks, and allow him to sell Miracle Face in Mexico. Tara has an offer, however, from another Mexican citizen, Maria. Maria proposes that she and Tara associate together, open a business to sell Miracle Face, and share profits and management responsibilities. Tara has also thought about opening her own business in Mexico in conformity with Mexican laws. She would then, hire employees in Mexico to sell the product. Another matter Tara has considered is simply arranging for her products to be shipped to Mexico for sale, and she is interested in the effect of any trade agreements in effect between the U.S. and Mexico.

15.

Required information

If Tara ships Miracle Face to Mexico for sale, she would be involved in the _____ of goods.

franchising

export

import

licensing

affiliating

16.

Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At what point is there a binding contract?

When the money is paid.

When the agreement is made.

Ten days after the car is delivered and approved.

When the car is delivered.

Twenty days after the car is delivered and approved.

17.

Which of the following is a partnership agreement in which company members hold transferable shares, while all the goods of the company are held in the names of the partners?

A joint partnership

A collusive partnership

A joint corporation

A joint stock company

A collusive corporation

18.

A majority of citizens in a democracy can agree to permit certain authorities to make and enforce rules describing what behavior is permitted and encouraged in their community. These rules are what we refer to as the ______.

Stare decisis

Law

Democratic validation

Electoral college

Community standard

19.

Which of the following is true regarding the federal appellate court system’s use of ADR?

By law ADR is outlawed at the federal appellate court level.

While ADR is popular at the district court level, few federal appellate courts use it.

All federal appellate courts use early neutral case evaluation but none use mediation.

Almost all federal circuit courts of appeal have mediation programs underway.

All federal courts use arbitration but few have mediation programs.

20.

Which of the following is an example of the imposition of strict liability?

A minor shoplifts in a department store.

An adult shoplifts in a department store.

A business sells cigarettes to a minor.

A burglar breaks into a home to steal jewelry.

A robber pulls a gun to rob a bank teller.

21.

Which of the following is true regarding the law of negligence in Germany?

It is the same as the law of negligence in the United States.

It focuses only on conscious negligence.

It focuses only on unconscious negligence.

Both mental and physical capabilities are taken into account in determining whether a defendant is negligent.

Courts distinguish between conscious and unconscious negligence with defendants who have engaged in only conscious negligence being found not guilty.

22.

A person who has the legal right to bring an action in court has standing.

True

False

“To the Dogs.” Alice loves all animals and is starting a new grooming business for them. She believes that animals are very important and plans to exceed any applicable regulations regarding cleanliness and health standards. Alice thinks, however, some local regulations make no sense. For example, there is a local ordinance that all dogs must be kept on a leash at all times when not in an inside area. Although Alice is placing her business on a large lot with a fenced outside area allowing plenty of room for dogs to run free, she plans to obey the leash regulation and all others. She is aware, however, that some members of the community have had success in changing local regulations by petitioning city council. Alice plans to proceed in that manner to attempt a change in the leash law.

23.

Required information

Alice’s plan to obey all laws and regulations even if she does not agree with them is rooted in which of the following?

Cost-benefit analysis

The historical school

Legal positivism

Natural law

Legal realism

24.

Contract law is said to be based on a[n] ___________ theory, meaning that the existence and interpretation of the contract is based on the outward manifestations of intent by the parties.

Interpretive

Objective

Subjective

Unilateral

Appearing

25.

____ is the type of alternative dispute resolution procedure wherein disputes are submitted for resolution to private, nonofficial persons selected in a manner provided by law or the agreement of the parties.

Multi-cultural evaluation

International evaluation

Arbitration

Neutral evaluation

Mediation

26.

Which of the following contains summaries of common law rules in a particular area of the law?

State Administrative Codes

Restatements of the Law

Executive Proclamations

Case Reporters

U.S. Code

27.

What was the result at the U.S. Supreme Court level inGoodyear Dunlop Tires Operations, S.A. v. Brown, involving whether a court in North Carolina could exercise jurisdiction over the defendant tire manufacturer and its subsidiaries who were based in Turkey and France? (The underlying lawsuit involved the deaths of North Carolina residents in France when a bus in which they were riding allegedly overturned due to problems with its tires.)

The Court ruled that based on the stream of commerce theory, the North Carolina court could exercise specific jurisdiction over the foreign defendants.

The court ruled that the North Carolina court could not exercise jurisdiction over the defendants.

The Court ruled that based on the general contacts theory, the North Carolina court could exercise specific jurisdiction over the foreign defendants but not general jurisdiction.

The Court ruled that based on the stream of commerce theory, the North Carolina court could exercise general jurisdiction over the foreign defendants.

The Court ruled that based on the general contacts theory, the North Carolina court could exercise general jurisdiction over the foreign defendants but not specific jurisdiction.

28.

A company that sends its products to a foreign marketplace for sale has engaged in ______.

Exportation

Subsidization

Foreign transaction

Importation

Foreign distributing

29.

What was the result at the U.S. Supreme Court level in the Case Opener involving the constitutionality of the “individual mandate” contained within the Affordable Care Act requiring that most Americans obtain minimum essential health insurance contained within the Affordable Care Act?

The Supreme Court upheld the “individual mandate” of the Affordable Care Act on the basis that it was a valid exercise of congressional power under the taxing clause and also under the Commerce Clause.

The Supreme Court upheld the “individual mandate” of the Affordable Care Act on the basis that it was a valid exercise of congressional power under the taxing clause.

The Supreme Court struck the “individual mandate” from the Affordable Care Act as a violation of the Commerce Clause but allowed the remainder of the law to remain.

The Supreme Court struck the “individual mandate” from the Affordable Care Act as a violation of the taxing clause but allowed the remainder of the law to remain.

The Supreme Court upheld the “individual mandate of the Affordable Care Act on the basis that it was a valid exercise of congressional power” under the commerce clause.

30.

Which of the following is true regarding proof of design defect?

State law across the country is generally uniform regarding how to establish a design defect.

State law is irrelevant because federal law dictates how to establish a design defect.

States are not in agreement as to how to establish a design defect.

Each local county in each state determines how a design defect will be established.

Because of the amount of international trade, there are international treaties establishing for each U.S. state how design defects will be established.

31.

A local Chamber of Commerce plans a seminar on “the social responsibility of business in our community.” What does that term reference?

The expectations of employees regarding wage rates.

The expectations that the community imposes on firms doing business inside its borders.

The responsibility of business to make profit for shareholders.

The responsibility of business to have annual meetings.

The expectations of management in regard to adequate utility resources.

32.

According to the text, which of the following are criticisms of arbitration?

That arbitration actions are less private than judicial actions.

That it is too easy to get an arbitration award reversed by a judge.

That arbitration is more expensive than court litigation.

That parties have less control through the arbitration process than through a judicial action.

That companies can more easily hide misdoing.

“Refusal to Pay.” Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max went to mow Debby’s yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he had angered the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Debby was glad about the dog bite because she felt it gave her an excuse not to pay. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Betty refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform.

33.

Required information

Which of the following is an appropriate characterization of the agreement between Debby and Max?

They had a bilateral and unilateral agreement.

They had a unilateral, express agreement.

They had a unilateral, implied agreement.

They had a bilateral, implied agreement.

They had a bilateral, express agreement.

34.

Which of the following was the result on appeal inJohn Coomer v. Kansas City Royals Baseball Team, the case in the text in which the plaintiff sued after being hit in the eye by a hotdog thrown into the stands by a team mascot during the “Hotdog Launch,” a customary activity during games?

The court dismissed the case on the basis that injuries at baseball games are an inherent part of the sport whether by baseball or by hotdog.

The court dismissed the case on the basis that through a click agreement the plaintiff expressly agreed not to sue for any injuries when ordering the tickets through the Internet.

The court affirmed a jury verdict in favor of the defense on the basis that the plaintiff assumed the risk of injury by hotdog because the tossing of the hotdogs was a customary event of which the plaintiff was or should have been aware before attending the game.

The court affirmed a jury verdict finding for the defense on the basis that the plaintiff did not immediately report injuries to stadium officials.

The court found that the jury was improperly instructed on the assumption of the risk defense and that the plaintiff did not assume the risk of injury by hotdog by attending the game.

35.

A false statement of a material fact regarding ownership of business property that results in a loss of sales is referred to as _______.

Slander of title

Trade libel

Libel of sale

Slander of quality

Libel of title

36.

Under the Sarbanes-Oxley Act, it is now a felony to willfully fail to maintain proper records of audits and work papers for at least ______ years.

6

5

2

4

3

37.

What was the result in the Case Opener in which an employee of Hooters complaining of sexual harassment attempted to avoid a signed arbitration agreement?

The court fully enforced the arbitration agreement as it was written.

The court itself rewrote the arbitration agreement, and it was then enforced.

The court required that Hooters rewrite the arbitration agreement, and it was then enforced.

The court enforced the arbitration agreement in part, but required, contrary to the agreement, that Hooters provide the employee the specifics of its defenses at least 5 days before the commencement of the arbitration.

The arbitration agreement was not enforced by the court.

38.

Which of the following is a business that exists because of an arrangement between the owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark?

Franchise

Consensual seller

Joint partnership

Approved arrangement

Joint venture

“Book Sale.” Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.

39.

Required information

Which of the following would be the correct analysis of the effect of the discovery that Rick has a book that is not appropriate for the class?

Because the parties had a mutual misunderstanding, the parties did not come to a meeting of the minds, and there is no contract.

Because both parties were mistaken, at Rick’s option he may return the book; but only half of the purchase price would be required as a refund from Beverly because she is not guilty of fraud.

Rick is stuck with the book because Beverly subjectively thought it was the correct book, and Rick did not openly disagree before the contract was executed.

Rick is stuck with the book because he objectively agreed to purchase it.

Rick is stuck with the book because Beverly did not commit fraud.

“Junk Food.” Mary Dogood, a member of the school board in ABC County, is appalled at the amount of junk food in the schools. She convinces the state legislature to pass an ordinance that no stores may sell any unhealthy junk food within 500 feet of any school or day care center. A teacher of political science raises the issue of whether the regulation is valid and is told that it is a valid exercise of the jurisdiction’s police power to protect its citizens. Convenience stores balk at the regulation and challenge it in court claiming that the law impermissibly affects interstate commerce.

40.

Required information

Restrictions on states’ authority to pass laws that substantially affect interstate commerce are referenced by which of the following?

The superior commerce clause

The state authority clause

The dormant commerce clause

The interstate trafficking commerce clause

The tracking clause

41.

Which of the following isfalseregarding franchises?

The franchisor can set sales quotas and record-keeping requirements.

If a franchisor exercises too much authority in the day-to-day affairs of the franchisee’s business, the franchisor could be held liable for the torts of the franchisee’s employees.

A franchise is a contractual relationship between the franchisor and the franchisee.

The UCC does not apply in the realm of disputes between franchisors and franchisees.

The franchisor has the legal authority to ensure that the franchisee maintains the quality of goods and services associated with the franchise.

42.

What is the basis of consequentialism?

Categorical imperatives

Disregard of consequences

Inquiry into the consequences

Act utilitarianism

Deontology

43.

Which of the following is true regarding the relationship between ethical relativism and situational ethics?

Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma; but unlike ethical relativism, situational ethics allows us to judge other people’s actions.

Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma and also like ethical relativism, situational ethics allows us to judge the actions of others.

There is no relationship between ethical relativism and situational ethics because the theories are fundamentally opposed to each other.

Ethical relativism and situational ethics are the same theory.

While the two theories are similar, ethical relativism upholds the existence of objective moral standards whereas situational ethics refuses to recognize the existence of objective moral standards.

44.

What was the ruling of the court in the case ofWelgev. Planters Lifesavers Co., the case in which the plaintiff injured his hand when a jar containing peanuts broke?

That the case would be dismissed because the plaintiff could not establish that the jar was maintained in a pristine condition after its purchase.

That the plaintiff was unable to recover because he was not the actual purchaser of the jar of peanuts.

That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.

That the plaintiff was unable to recover because negligence in manufacture of the jar could not be established.

That the plaintiff would be allowed to proceed because negligence was established.

45.

What did the court rule in regard to the plaintiff’s claim of intentional infliction of emotional distress inOlson v. CenturyLink, the case in the text in which the plaintiff alleged that representatives of the defendant, a provider of telephone services, wrongly failed to process his application, disconnected his telephone service, and hung up on him during telephone conversations?

That the plaintiff’s complaint regarding representatives hanging up on him were sufficient to support a claim of intentional infliction of emotional distress but that the plaintiff’s other allegations were insufficient to support an award based on the tort of the intentional infliction of emotional distress.

That the plaintiff’s complaint regarding the disconnection of his telephone service was sufficient to support a claim of intentional infliction of emotional distress but that the plaintiff’s other allegations were insufficient to support an award based on the tort of the intentional infliction of emotional distress.

That the plaintiff’s complaint regarding the refusal to process his application was sufficient to support a claim of intentional infliction of emotional distress but that the plaintiff’s other allegations were insufficient to support an award based on the tort of the intentional infliction of emotional distress.

That the conduct complained of by the plaintiff failed to meet the level of conduct required for a finding of the intentional infliction of emotional distress.

That the plaintiff would be allowed to proceed as to all allegations because they were all adequate to support a verdict based on the intentional infliction of emotional distress.

46.

Mike gets angry because Ben made a better grade on a test than he did. They get into an argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in order to avoid the blow. Which of the following is true regarding Ben’s actions?

Ben cannot rely upon self-defense because his life was not in danger.

Ben cannot rely on self-defense because he was involved in the argument and not completely innocent.

Ben has committed a battery.

Ben has not committed an assault or a battery because he acted in self-defense.

Ben has committed both an assault and a battery.

“Inattentive Driving.” Molly, a first year law student, decided to skip class and drive off campus to check on her new dress for the upcoming school dance. While driving, Molly is busy talking on her cell phone with her friend Sharon to convince her to going to the dance with Molly’s brother who has a big crush on Sharon. Unfortunately for Molly, there is a statute in her state outlawing talking on a cell phone while operating a motor vehicle. Molly crashes into the side of Sam’s new convertible when she looks down to pick up a can of soda she just dropped onto her new jeans. A police officer just down the street comes over to investigate. Molly explains to him that it was difficult to hold the cell phone in one hand, the soda in the other, and also drive. The officer was not impressed. Around that time Sam comes along. He is furious regarding the significant dent in his new car. Molly says she has insurance and that she will cover the whole incident. Sam says that is insufficient; but Molly says that under case precedent, that is his only remedy. The officer is annoyed because it is his lunch break. He tells Molly that she must obey duly authorized law, and proceeds to write several citations to her.

47.

Required information

Which type of law is involved in the above situation considering Molly’s interaction with both the officer and Sam?

Public law, private law, civil law, and criminal law

Civil law and private law but not public law

Public law but not private law

Private law but not public law

Criminal law and public law but not private law

48.

Which of the following are stakeholders of a business?

Shareholders but not employees

Employees but not shareholders

Shareholders, employees, customers, and management

Customers but not employees or shareholders

Management but not employees

49.

Which of the following is an example of a dram shop act?

A statute which requires bar owners to post a bond before opening for business in a jurisdiction.

A statute which allows the selling of beer but not hard liquor.

A statute which allows bartenders and bar owners to be held liable for injuries caused by individuals who become intoxicated at the bar.

A statute that prohibits any bars on certain streets in the jurisdiction.

A statute which requires bar owners to have a license before operating a bar.

50.

Which of the following is true regarding corporate executives being held personally liable for business crime under the “responsible corporate officer” doctrine?

A court may not assess criminal liability on a corporate executive unless the executive directly engaged in the specific criminal violation.

Corporate executives may only be held personally liable for a business crime if they benefited personally from their actions in executing the business crime.

Criminal liability may not be assessed against a corporate executive unless the executive directly engaged in the criminal activity and also profited directly and personally from the criminal activity.

A corporate executive may never be held personally liable for a business crime.

Corporate executives may be found personally liable for a business crime even if they did not engage in, direct, or know about a specific criminal violation.

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