What is the significance of a “defect” in a products liability case based on strict liability?
a) It is not necessary, but can be used to eliminate the need to prove that there was an injury.
b) It is a required element in the proof of such a case.
c) Its presence would eliminate liability for the defendant.
d) The party who caused the defect is the only one who can be held liable.
When can a customer list of an employer rise to the level of a legally protected trade secret?
a) When the list has information in it which possesses value and which the employer has made reasonable efforts to keep the list secret.
b) When the employer obtains a federal copyright or trademark on it.
c) When there is concrete evidence that all the employer’s customers on the list would be willing to continue doing business with the employer.
d) When the people on the customer list are readily obtainable from public sources.
Omega Corporation’s registration statement with the SEC must include
a) a detailed description of the accounting firm that audits Omega.
b) a description of the security being offered for sale.
c) a financial forecast for Omega’s next five years.
d) a marketing and management plan to ensure Omega’s success.
Which of the following is true?
a) Voting trusts and voting agreements both require the transfer of stock certificates to a trustee.
b) In a voting trust, the shareholder grants the trustee the right to vote the shares, but in a voting agreement the shareholders vote their own shares.
c) Voting agreements, but not voting trusts, must be accompanied by proxies executed by the shareholders.
d) Voting trusts are irrevocable, while voting agreements can be either revocable or irrevocable.
Which of the following is a correct statement?
a) Statements of fact regarding a product that are made during the bargaining process can never be express warranties since facts can be “checked out.”
b) A seller must use the specific words “warrant” or “warranty” or “guaranty” in order to create an express warranty under the UCC.
c) An implied warranty of merchantability arises in every sale of goods by a merchant who deals in the kind of goods sold unless otherwise disclaimed.
d) A seller must provide a written warranty for every sale of consumer goods based on federal consumer law.
In order for an offer to be valid, the following must be met except:
a) There is an objective intent by the offeror to enter into a contract.
b) The offer must be in writing and signed by the offeror.
c) The offer must be communicated to the offeree.
d) The offer must be certain enough that most reasonable people can figure out what is being offered.
The doctrine in negligence law which shifts the burden of proof from the plaintiff to the defendant is:
a) Negligence per se.
b) Res ipsa loquitur.
c) Apparent negligence.
d) Good Samaritan.
Which of the following is a false statement?
a) An employee also may act in the capacity of an agent.
b) An independent contractor’s physical manner of doing a job is controlled, or is subject to the control, by his or her employer.
c) A principal has a duty to cooperate with his or her agent.
d) A principal generally is required to indemnify an agent for liabilities incurred because of authorized and proper acts by the agent.
A supervening illegality (that is, legality after the contract was entered into) is best described as
a) Voiding the contract
b) Resulting in a discharge of contract duties
c) Having no effect on the contract
d) Making the contract voidable
Which of the following is FALSE regarding federal administrative agencies?
a) Congress typically delegates to administrative agencies the power to make laws in the form of rules and regulations.
b) Administrative agencies, such as the Occupational Health and Safety Administration, cannot conduct inspections since an inspection is a “search,” which can only be conducted by the police or other law enforcement agency pursuant to a traditional criminal law search warrant.
c) Administrative agencies typically can impose civil fines after a due process hearing in which a person or business is adjudicated to be in violation of an agency rule or regulation.
d) The decisions of administrative agencies can generally be appealed to the traditional court system assuming that procedural requirements for an appeal are met.