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LAW 531 Week 6 Quiz 


.) Three of the largest automobile dealers agreed among themselves as to what 

price they would pay to manufacturers for windshields to put in new vehicles. 

Would this constitute illegal price fixing? If so, what kind? 

Yes. This is both buyers’ and sellers’ illegal per se price fixing. 

No. This is not illegal price fixing. 

Yes. This is sellers’ illegal per se price fixing. 

Yes. This is buyers’ illegal per se price fixing. 

2.) ________ is a clause in an international contract that designates which 

nation’s laws will be applied in deciding a dispute arising out of the contract. 

Equal Protection Clause 

Choice of law clause 

Forum-selection clause 

Supremacy Clause 

3.) Which of the following is provided under the Foreign Sovereign Immunities 

Act? 

It regulates commerce between the United States and foreign nations. 

It exclusively governs suits against foreign nations that are brought in courts in the 

United States. 

It stipulates the rules for conflict resolution among the DR-CAFTA members. 

It endows the president with powers to enter into treaties with foreign nations 

4.) Negotiators from which of the following nations signed the North American 

Free Trade Agreement in 1992?

The United States, Mexico, and Canada 

The United States and Mexico 

The United States, Mexico, and Panama 

The United States and Canada 

5.) Which of the following is a restraint of trade in which a seller refuses to sell 

one product to a customer unless the customer agrees to purchase a second product 

from the seller? 

Price fixing 

Group boycott 

Tying arrangement 

Predatory pricing 

6.) Which of the following is required under the Biosafety Protocol sponsored by 

the United Nations in the year 2000? 

All genetically altered foods must be clearly labeled as such. 

Genetically altered foods must be shipped in separate containers from foods that 

are not genetically altered. 

Nations are free to prohibit the import of genetically altered foods without 

violating free-trade agreements. 

Whenever genetically altered foods are offered for sale, comparable food that is 

not genetically altered must be made available at a comparable price. 

7.) Which of the following is codified under the Foreign Sovereign Immunities 

Act? 

The supremacy clause 

The act of state doctrine 

The principle of restricted immunity 

The choice of forum clause 

8.) By default, a case involving an international dispute is prosecuted only in

a court in the plaintiff’s country 

a court in the defendant’s country 

the International Court of Justice 

a court in a neutral country 

9.) Which of the following is an international organization of 153 member 

nations created in 1995 to promote and enforce trade agreements among member 

countries and customs territories 

General Agreement on Tariffs and Trade 

North American Free Trade Commission 

World Trade Organization 

International Monetary Fund 

10.) What are the primary sources in the U.S. Constitution of the federal 

government’s power over international affairs? 

The Foreign Commerce Clause and the Treaty Clause 

The Commerce Clause and the Privileges and Immunities Clause 

The Treaty Clause and the War Powers Clause 

The Treaty Clause and the Police Power 

11.) In the United States, how may states regulate interactions with foreign 

nations? 

The states can pass laws so long as they do not unduly burden foreign commerce, 

but the states have no authority to enter into treaties with foreign nations. 

The states can pass laws and enter into treaties with foreign nations so long as they 

do not unduly burden foreign commerce. 

The states can pass laws affecting foreign commerce and enter into treaties with 

foreign nations so long as they first obtain the consent of the Senate. 

The states have no power over foreign affairs because the U.S. Constitution grants 

that power exclusively to the federal government.

12.) Which of the following products would be covered by the Consumer 

Product Safety Act? 

Firearms 

Toys 

Aircraft 

Automobiles 

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LAW 531 Week 6 Learning Team Reflection Week 6 IRAC Brief 


Read “The IRAC method of case study analysis.” 

Select one legal case from a current event that has taken place within the past 2 

years relevant to the following objective. 

5.1: Identify applicable regulatory compliance requirements for business situations. 

Select a second legal case from a current event that has taken place within the past 

2 years relevant to the following objective: 

6.1: Evaluate legal risks associated with domestic and international business 

activity. 

Discuss the selected cases with your Learning Team. 

Brief the selected cases as a Learning Team. 

Write two separate case briefs using the IRAC method.

Write an explanation for each brief of no more than 750 words about how the 

legal concepts in the selected case can be applied within a business managerial 

setting. 

Click the Assignment Files tab to submit your assignment. 




Which of the following powers do administrative agencies typically have? 

Statute interpretation, law enforcement, and mediation 

Law enforcement, statute interpretation, and dispute resolution 

Dispute adjudication, mediation, and rulemaking 

Rulemaking, statute interpretation, and dispute adjudication 

2.) Which of the following is true of the Federal Trade Commission? 

It is a federal agency created by Congress 

It is a branch of the U.S. Supreme Court 

It is a temporary commission created by executive order that has become 

permanent 

It is a corporation subsidized by the federal government 

3.) If a corporate officer or director acts in a manner to make use of an advantage 

that he or she knows will only benefit himself or herself and deprives the 

corporation of that advantage, what breach of fiduciary duty has been committed?

Duty of care by violation of the business judgment rule 

Duty of loyalty by self-dealing 

Duty of obedience by competing with the corporation 

Duty of loyalty by usurping a corporate opportunity 

4.) If a corporate officer in the position of secretary intentionally takes over the 

powers provided to the treasurer in the corporate documents, what fiduciary duty 

does that corporate secretary breach? 

Duty of care 

Duty of good faith and fair dealing 

Duty of obedience 

Duty of loyalty 

5.) Under what system of corporate voting by shareholders can a minority 

shareholder achieve success in electing someone to the board of directors? 

Straight voting 

Cumulative voting 

Absentee voting 

Proxy voting 

6.) In 1970, Congress established an administrative agency to enforce statutes 

enacted to protect the air and water of this country. What is the name of this 

agency? 

Environmental Protection Agency 

Army Corps of Engineers Agency 

National Ambient Air Quality Standards Agency 

Air Quality Control Agency 

7.) In order to protect wildlife that may be subject to scarcity, which Executive 

Branch cabinet member designates which species of wildlife may be endangered or 

threatened?

Secretary of the Interior 

Secretary of Health and Human Services 

Secretary of Commerce 

Secretary of Homeland Security 

8.) Tuff-Steele Constructions, Inc. has not been adhering to appropriate worker 

safety rules. As a result, there have been an increased number of on-site accidents 

and several construction workers have sustained serious injuries. Which of the 

following powers will allow an administrative agency to bring agency proceedings 

against Tuff-Steele Constructions? 

Licensing 

Judicial authority 

Rulemaking 

Executive power 

9.) Unless otherwise stated in the articles of incorporation, a quorum to hold a 

meeting of the shareholders is generally defined as which of the following? 

The number of registered shareholders eligible to vote at a given time 

A committee of directors selected to vote on a corporation action 

A majority of shareholders required to be present to vote on a corporate action 

The number of shareholder votes necessary to pass an action 

10.) The Sarbanes-Oxley Act is intended to increase the confidence of the public 

and investors through increasing which of the following? 

Corporate veil 

Separation of powers 

Director complacency 

Corporate governance 

11.) Which of the following is likely to be a breach of a corporate officer’s or 

director’s duty of care?

Failing to anticipate a drop in the consumer demand of the company’s product 

Failing to react appropriately to a severe rise in the prime interest rate 

Failing to predict a raw materials shortage resulting from a natural disaster 

Failing to predict the startup of a new competitor 

12.) In order to prevent and clear hazardous wastes that increase mortality or 

serious illness, the federal government established a specific method to finance the 

cleaning of polluted areas by enacting what statute? 

The Comprehensive Environmental Response, Compensation, and Liability Act 

The Superfree Act 

The Toxic Substances and Control Act 

The Insecticide, Fungicide, and Rodenticide Act 

13.) The Sarbanes-Oxley Act prohibits publicly traded companies from making 

personal loans to whom? 

Its executive officers or directors 

Its majority shareholders 

Its certified public accountants 

Its legal counsel 

14.) Officers of a corporation typically can have which types of agency authority 

to bind the corporation?

Express, applied, and apparent 

Express, implied, and apparent 

Express, transparent, and applied 

Express, transparent, and implied 

15.) According to the provisions set forth by the Sarbanes-Oxley Act, which 

federal government agency may issue an order prohibiting any person who has 

committed securities fraud from acting as an officer or a director of a public 

company? 

United States International Trade Commission 

Federal Reserve System 

Federal Communications Commission 

Securities and Exchange Commission 


LAW 531 Week 5 Learning Team Reflection IRAC Brief 




years relevant to the following objectives:

5.2: Explain the governance principles of regulatory compliance requirements. 

5.3: Determine methods for managing legal risk arising from regulatory 

compliance issues. 

Discuss the selected case with your Learning Team. 

Brief the selected case as a Learning Team. 

Write a case brief using the IRAC method. 

Write an explanation of no more than 750 words about how the legal concepts in 

the selected case can be applied within a business managerial setting. 


Complete the Discrimination Scenario Simulation involving a discrimination issue 

at the workplace and associated legal issues. 

Write responses to the decision points embedded in the simulation. 

Download your written responses after completing the simulation. The 

downloaded document must be submitted to receive credit for the assignment. 



LAW 531 Week 5 DQ 4 

LAW 531 Week 5 DQ 4

Discuss horizontial and vertical restraints of trade. Which are prohibited and why? 




Does the USDA and the FDA provide us with adequate protection from harmful 

foods, drugs, medical devices, drugs and medical procedures? 

or 

Does the EPA provide us with adequate protection from harmful air and water 

pollution? 




Discuss the law of administrative rulemaking and provide an example. 

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Directors and officers are subject to the duty of care and the duty of loyalty. 

Discuss the law concerning one of these duties and provide an example. 


LAW 531 Week 5 Discrimination Scenario Simulation 


\Complete the Discrimination Scenario Simulation involving a discrimination issue 

at the workplace and associated legal issues. 


Download your written responses after completing the simulation. The 

downloaded document must be submitted to receive credit for the assignment. 




LAW 531 Week 4 Quiz

Which of the following are protected classes under Title VII of the 1964 Civil 

Rights Act? 

Race, national origin, and sex 

Race, national origin, and political affiliation 

Race, religion, and sexual orientation 

Race, national origin, and alien status 

2.) What is the current status of right-to-work laws? 

If a state passes a right-to-work law, then state and local government employees 

can unionize. 

If a state passes a right-to-work law, then individual employees will have to pay 

union dues even if they do not belong to the union. 

Congress has passed a law prohibiting states from passing right-to-work laws. 

If a state passes a right-to-work law, then individual employees cannot be forced to 

join a union. 

3.) Under what conditions must an employer allow nonemployee union 

solicitation on company property? 

If the union is affiliated with another union that currently represents other 

employees of the company 

If there is currently no union representing the company’s employees 

If the purpose is to solicit employees to change union representation rather than to 

solicit nonunion workers to join a union 

If the employees live in a company town such that it would be difficult to solicit 

the employees off company property 

4.) In a hostile work environment sexual harassment claim, the employer will 

have a successful defense if the employer can show which of the following?

The employer took reasonable care to prevent or correct the conduct and the 

employee did not take advantage of corrective or preventive opportunities of the 

employer to remedy the situation. 

The employee was offended by conduct in the workplace and that the employer in 

good faith did not consider the conduct to be offensive and therefore did not seek 

to correct or prevent it. 

There were no adverse consequences to the employee’s work status, such as a 

demotion or denied promotion, even though the employer did not proactively 

address the situation. 

The employee stands to personally gain if the persons engaging in the sexual 

harassment are reprimanded regardless of whether or not the employer did 

anything to remedy the situation or take corrective action. 

5.) Which of the following statutes regulates internal union affairs and 

establishes certain rights of union members? 

The Worker Adjustment and Retraining Notification Act 

The National Labor Relations Act 

The Labor Management Reporting and Disclosure Act 

The Labor Management Relations Act 

6.) Which of the following statements is true about workers’ compensation? 

The employer is strictly liable for employment-related injuries, and the claim is 

filed through an administrative procedure rather than an ordinary lawsuit. 

The employer can avoid liability if the injured employee was contributorily 

negligent in causing the injury. 

If the employee is dissatisfied with the amount received under the workers’ 

compensation system, the employee generally then can file an ordinary lawsuit.

The employee must decide whether to seek a workers’ compensation payment or 

file an ordinary lawsuit against the employer. 

7.) Which of the following powers does the Equal Employment Opportunity 

Commission have? 

Pass amendments to the 1972 Amendments to the Civil Rights Act of 1964 

Pass amendments to the Civil Rights Act of 1964 and other antidiscrimination 

statutes 

File suits to enforce antidiscrimination statutes on behalf of complainants 

Legislate antidiscrimination statutes 






years relevant to this week’s objectives. 






Click the Assignment Files tab to submit your assignment.


LAW 531 Week 4 Individual Assignment Contract Creation And 

Management Simulation 

LAW 531 Week 4 Individual Assignment Contract Creation and Management 

Simulation 

Complete the Contract Creation and Management Simulation involving a contract 

issue and associated legal issues. 


Download your written responses on completion of the simulation. The 

downloaded document must be submitted in order to receive credit for the 

assignment. 





Big Al is a parking lot attendant who works for the Daily Bugle, a large 

newspaper. Big Al is also a sumo wrestler in his spare time. He weighs 450 

pounds and is in excellent physical condition, although he is classified as being 

morbidly obese according to weight charts and his doctor. Big Al’s duties at the

Daily Bugle are limited to sitting in a chair and collecting money. He has no 

trouble getting into the small kiosk where he collects parking fees. Admittedly, his 

chair was a little small, but he replaced it with a larger one. 

The Daily Bugle discharged Big Al on the grounds that he is too obese to do his 

job. 

Legally, what will be the result and why? 




Margaret was working with Morty, a graphic artist, on a major beer account at a 

large advertising agency located in the US. After a lengthy work meeting, she and 

Morty returned to his office to pick up some layouts Morty had forgotten to 

bring. On Morty’s desk and in plain view, Margaret she saw a series of nudes in 

suggestive poses that Morty had drawn. Morty asked if Margaret would like to see 

them but Margret didn’t pick them up. Margaret was stunned. She had heard of 

“Morty’s nudes” through the grapevine, but had never believed they existed. Now, 

as she stared in shock at the drawings, Morty smiled coyly and asked if she would 

like a drink. At this point, Margaret opened the door to the office and left. 

The following day, Margaret took her first action in defending her rights by filing a 

lawsuit against Morty and her employer for sexual harassment. 

What will be the result? 




What is the constitutional basis of unionism in the US that permits organizing, 

picketing and striking. Please discuss. 




The State of Filbert passed a statute that allows employers to pay nonproductive 

employees less than productive employees. The law requires annual performance 

reviews of all employees regardless of race, religion, ethnicity, gender and age and 

that pay adjustments be made on the basis of productivity. Jennifer is a woman 

seven months pregnant who has received an annual performance review and a pay 

adjustment reducing her pay by the percent that her productivity is below the 

average of all women in her job classification. 

Please comment on the legality of this statute as well as Jennifer’s rights under all 

relevant laws. 




Read “The IRAC method of case study analysis.”


years relevant to the following objectives: 

3.3: Differentiate between personal, real, and intellectual property issues. 

3.4: Determine appropriate methods to address potential property issues. 










Luke and Duke inherited Blueacre (a house) as joint tenants. They leased Blueacre 

to Bart for a period of twelve years. There was an oral agreement between 

Luke/Duke and Bart (no written agreement). After Bart had occupied Blueacre for 

one year, Duke died. In year two of Bart’s occupancy, Edward, the next door 

neighbor to the north side of Blueacre, put up a fence that was 50 feet onto 

Blueacre, which represented a sizable amount of money in land. Edward asked 

Bart if he could put up the fence, and Bart said, “Sure, you have my 

permission.” In year 11 of Bart’s tenancy, Luke drove by and saw the fence.

Luke wants the fence off Blueacre or he wants cash for the land taken by the 

fence. Luke also feels Bart is responsible. 

What are the rights of Luke, Duke’s family, Edward and Bart? 




Arthur is a an 12 year old with an IQ of 150. On his birthday, Arthur received a 

gift of $500 in cash from his Aunt, who told him to buy what he wanted. Since 

Arthur was interested in stamps, he ordered the “100 Special Stamps a Month” 

offer for 12 months from the Excelsior Stamp and Coin Company. Arthur was 

mistaken about the price of the “100 Special Stamps a Month” offer. It was 

actually $50 a month. Arthur thought it was $5 dollars a month, and sent Excelsior 

$60, which he thought was full payment. After Arthur sent the $60, he lost all 

interest in the stamps and ignored all further requests for payment Excelsior. 

Excelsior, outraged over Arthur’s delinquent account, has sued Arthur’s parents for 

$540, representing the balance due. Who wins and why? 

If Excelsior loses the contract case, can it sue Arthur for promissory estoppel? 




Luke went to Larchmont, Inc.’s website to order some merchandise. On the 

internet order form that Larchmont provided, it said, “ALL WHOLESALE 

ORDERS MUST BE CALLED IN TO OUR 800 NUMBER. THIS ORDER 

FORM IS FOR RETAIL ONLY.” Luke was at the website at 3 AM and no one 

was manning the phones at Larchmont. The fields in the internet order form were 

malfunctioning and did not automatically supply or calculate information. Luke 

filled our the internet order form ordering 500 star sapphire toothpick, but only at 

50% off list. Luke was not a merchant. He wanted the toothpicks to give to his 

many friends. 

On Monday morning, Larchmont opened Luke’s order and charged his credit card 

at the full retail price for all 500 units. 

Is there a contract, and if so, what is it? 




Mark has developed a database of pizza recipes, which he has been selling locally 

as “Pidgeonhole Pizza Recipes,” which he now wants to market nationwide on the 

world wide web. There is nothing unique about the database design or function, 

which is similar to other databases already on the market. However, the 

information in the database is highly original, and therein is its value. 



LAW 531 Week 2 Quiz

Which of the following is a key element of successful Enterprise Risk 

Management? 

Legal counsel 

Strong investment strategies 

Nondisclosure agreements 

Management commitment 

2.) According to the doctrine of ________, the plaintiff is not required to prove 

that the defendant breached a duty of care. 

comparative negligence 

assumption of risk 

strict liability 

contributive negligence 

3.) Mary was getting a ride home in John’s new car. On the way, a 

malfunctioning brake caused an accident and both Mary and John were injured. 

Which of the following statements is true of this situation? 

Mary can file a negligence lawsuit against the dealership that sold John his car. 

Mary can recover damages for her injury under a theory of strict liability against 

the manufacturer of John’s car. 

Mary can file a strict liability lawsuit against John.

John can file a negligence lawsuit against the dealership from which he bought the 

car. 

4.) Select the option which best completes this statement: Enterprise Risk 

Management is most effective when it is a(n) _________ process. 

informal 

one-time 

static 

ongoing 

5.) Assuming that statutory requirements have been met, what is protected under 

merchant protection statutes? 

Merchants are protected from the intentional torts of their customers. 

Merchants are protected from negligence claims on their business premises. 

Merchants are protected from product disparagement claims of their competitors. 

Merchants are protected from false imprisonment claims of persons detained on 

suspicion of shoplifting. 

6.) Which of the following is the best statement of the test applied in determining 

if a defendant’s actions were the proximate cause of the plaintiff’s injuries? 

Was it foreseeable that the defendant was the cause of the plaintiff’s injuries given 

the nature of those injuries? 

Was the injury foreseeable to the plaintiff prior to the injury’s occurrence? 

Was it foreseeable that the defendant’s conduct would lead to the kind of injury 

that the plaintiff suffered?

Was it foreseeable to the plaintiff that the defendant would engage in this conduct 

7.) Which of the following is a defect in manufacture? 

Failure to properly design the product 

Failure to include adequate instructions for the product 

Failure to properly test the product 

Failure to properly package the product 

8.) John Harley was on his way home when an assailant stopped his car and 

threatened to physically harm him if he ever saw him drive on that street again. 

John can sue the assailant to recover damages for 

disparagement 

battery 

libel 

assault 

9.) Diane bought an action figure for her son David from Terrence’s Toy Shop. 

The packaging did not mention that the toy contained small detachable parts. 

David accidentally swallowed and choked on one of the detachable parts and had 

to be taken to the hospital. On which of the following product liability charges can 

Diane sue Terrence’s Toy Shop for damages? 

Nuisance 

Fraud 

Negligence 

Misrepresentation 

10.) How does product disparagement differ from defamation of a nonpublic 

figure?

Malicious intent is required for a disparagement case, but is not required in the 

defamation case 

Publication to a third party is required in the defamation case, but not in the 

disparagement case 

Publication to a third party is required in the disparagement case, but not in the 

defamation case 

Malicious intent is required for the defamation case, but not in the disparagement 

case 

11.) The failure to design an automobile that will properly protect the occupants 

from a person’s body striking something inside their automobile is known as the 

defective design doctrine 

failure to design doctrine 

quality control doctrine 

crashworthiness doctrine 

12.) Which best describes assumption of the risk in a negligence case? 

The plaintiff was involved in an abnormally dangerous activity. 

The plaintiff is more at fault than the defendant in causing the accident. 

The defendant gave advance warning to the plaintiff that an injury would occur. 

The plaintiff knowingly and willingly subjected herself to a risky activity. 

13.) Making false statements about a competitor’s products, services, property, or 

business reputation could make a company liable for 

tort of appropriation 

misappropriation of the right to publicity 

disparagement 

intentional misrepresentation

14.) A plaintiff wants to sue a defendant under the tort theory of negligence for 

his injuries, but the plaintiff knows he was partially at fault for his own injuries. 

Which of the following is true? 

If the plaintiff’s fault is only 5 percent, his recovery will be the same under either 

pure or partial comparative negligence. 

The plaintiff will have to elect whether to sue under comparative or contributory 

negligence. 

Because the plaintiff is partly at fault, he will not be able to recover under either 

comparative or contributory negligence. 

A state whose law applies contributory negligence will not allow the plaintiff to 

recover if the plaintiff has any fault for his injuries 

15.) Gary Govetty is a famous movie star. A tabloid published an interview with 

his ex-girlfriend in which she falsely claimed that Gary was completely bald and 

had been wearing a wig for several years. Gary can sue his ex-girlfriend for 

invasion of privacy 

disparagement 

libel 

slander 

16.) In order to recover in a products liability case based on strict liability, the 

plaintiff must prove that the product had a defect that 

affected the value of the product 

the defendant was aware of 

was caused by the defendant

made the product unreasonably dangerous 

17.) Bartie’s, Inc. sells watercolors and pastels that are marketed as safe for use 

by children. However, several accounts of lead poisoning were reported in children 

who used the products. An investigation revealed that the company was knowingly 

manufacturing colors that contained toxic amounts of the heavy metal. Which of 

the following torts has Bartie’s, Inc. committed? 

Intentional misrepresentation 

Professional malpractice 

Disparagement 

Assault 

18.) Dorothy purchases a chair that was made by Woode Designs, Inc. While 

making the chair, the legs were not fixed properly to the base. When Dorothy sits 

on the chair, it breaks and she is injured. In a strict liability lawsuit, which of the 

following can Dorothy cite as a defect in the chair? 

Failure to provide adequate instructions 

Failure to warn 

Defect in manufacture 

Defect in design 

19.) Which of the statements below best describes the concept of Enterprise Risk 

Management? 

Management of a single function of an organization that, upon implementation 

and testing, is then processed entity wide 

An approach that capitalizes on human intervention as processed through real 

change leaders

People, systems, and processes working together across the organizations to 

systematically thin about and manage a wide range of risks that could impede 

achieving organizational objectives/opportunity 

A process affected by an entity’s leaders, management, and other personnel that is 

designed to identify potential events that may affect the entity, and to manage risk 

20.) George, Jerry, and Harry are passengers on a flight from Chicago to New 

York. They injure their legs when their seatbelts do not fasten during takeoff. The 

airline is sued by all three together for injuries caused and the airline is found to be 

negligent and is directed by the court to pay damages to the injured parties. Which 

of the following parties is entitled to recover maximum damages? 

All the men recover the same amount of damages, irrespective of their income or 

profession 

George, a retired professor who gets a pension of $50,000 a year 

Harry, a chartered accountant who earns $200,000 a year 

Jerry, a professional football player who earns $2 million a year 






years relevant to this week’s objectives. 


Brief the selected case as a Learning Team.






LAW 531 Week 2 Individual Assignment Business Forms Worksheet 


Complete the Business Forms Worksheet. 





Discuss one defense to negligence or strict liability and explain how it works. 




How is the issue of intent in strict liability torts different from the intent required in 

negligence and in intentional torts or for punitive damages? 




Lou does a lot of driving and frequently gets tired driving at night. He usually 

pulls over to nap when he gets sleepy, but on this occasion, Lou kept on driving 

because he wanted to get home for his daughter’s birthday. Unfortunately, 

Lou dozed off while driving, crossed over the center line, and hit another car. The 

other driver is injured and his car is seriously damaged. 

Is Lou negligent? To determine this, please define and discuss each of the 

following elements separately. Only if each element is present will Lou be 

negligent. 

1. the duty of reasonable care 

2. any breach of that duty 

3. Causation 

4. Damages 

a. cause in fact (also called but for, actual cause or factual cause) 

b. proximate cause 




Joan visited Max on a first date for lunch on his yacht, 1 mile offshore on Biglake, 

California. After lunch, as Joan approached the launch (motor boat) to return to 

shore, Max tried to take her by the shoulders to kiss her, but Joan managed to step 

back and avoid any physical contact. Joan then asked to leave. Max responded by 

walking over to the launch, releasing it, letting it drift away, and saying, “Leave 

any time you want.” Joan became angry and pushed Max, which caused him to 

fall and break his arm. 




1.) George has served Mary with a complaint alleging breach of contract. Mary 

has never been sued before and as such, she seeks your advice on what to do with 

the complaint. You advise that she 

answer George’s complaint but do not provide any affirmative defenses that 

George can use against her 

should not respond to George’s complaint as an answer implies an admission 

write a letter to the judge saying that George is mistaken 

answer George’s complaint by admitting or denying the allegations George has 

asserted against her 

2.) Which of the following is true of The Federal Arbitration Act? 

It permits an appeal for all arbitration awards. 

It provides that arbitration agreements are valid, irrevocable, and enforceable. 

It governs all types of alternative dispute resolution. 

It applies only to breach of contract disputes.

3.) Which of the following is true of arbitration? 

A resolution may or may not be reached. 

One party usually drops the case. 

Parties can introduce evidence to support their case. 

A judicial referee makes recommendations to the parties. 

4.) Which form of alternative dispute resolution occurs when the parties choose 

an impartial third party to hear and decide their dispute? 

Mediation 

Conciliation 

Arbitration 

Minitrial 

5.) Which of the following is true of a corporation? 

A corporation terminates upon the death of an owner. 

Corporation shareholders are subject to unlimited personal liability. 

A corporation is a separate legal entity. 

Corporation owners are only taxed once on earnings. 

6.) The Black Squirrel limited partnership has been in operation for many years, 

but has recently fallen on hard times. The partners have decided to dissolve, 

although there are few assets remaining in the partnership. Shortly after the 

partnership filed its certificate of limited partnership, the partners had the foresight 

to incorporate into their partnership agreement a provision that, in the event of 

dissolution, the assets would be distributed in payment of claims first to limited 

partners, then to general partners, then to creditors. Hilda is a limited partner and 

feels relieved that she will receive at least a portion of her capital. Henry, one of 

the general partners, said that this provision is void and unenforceable. Which of 

the following best describes this situation? 

The distribution, as called for in the agreement, would be enforceable if it had 

been included in any filings related to the limited partnership. 

The distribution of assets in the event of dissolution is one of the few provisions

where the Revised Uniform Limited Partnership Act does not 

allow modification. 

The provision placing the partners ahead of creditors is not enforceable, but the 

priority of limited partners over general partners is enforceable. 

The provision placing limited partners ahead of general partners is unenforceable, 

thus all partners would be on an equal footing and ahead of creditors. 

7.) Fred and Ginger are general partners in a business. They decide to purchase a 

building for the partnership. Ginger will put up the money for the building, and 

Fred will complete the remodeling. While inspecting the building, Fred is informed 

that the building is packed full of asbestos. He fails to tell Ginger of the presence 

of the substance. They buy the building and go into business. During the 

remodeling of the building, people from the neighborhood begin complaining 

about the dust from the building. Some of them even threaten to sue. Who is 

liable? 

Both Ginger and Fred are liable, regardless of the circumstances, by virtue of the 

fact that they are partners. 

Fred is liable because he was put on notice of the presence of the substance. 

Ginger is not liable because she did not have actual knowledge. 

Neither Ginger nor Fred are liable personally, nor is the partnership, as they did 

not put the substance in the building. 

Ginger is liable because she is the one who purchased the building. Fred is not 

liable, even though he had actual knowledge, because he did not purchase the 

building. 

8.) What is the effect of having a corporation as the general partner of a limited 

partnership? 

Each shareholder of the corporation will be treated as a limited partner of the 

limited partnership.

Each shareholder of the corporation will be treated as a general partner of the 

limited partnership. 

The liability of the corporate general partner will be limited to the amount of its 

assets. 

The limited liability of the corporation will result in the limited partners having 

greater liability than they would otherwise. 

9.) When parties agree in advance to adhere to an arbitrator’s decision and 

award, it is known as 

mediation 

arbitrator discretion 

appealable 

binding arbitration 

10.) Martha started a flower shop as a sole proprietor. After 1 year, she was 

forced to close the shop because business was so bad. At that time, the business 

assets totaled $50,000, but the business liabilities totaled $125,000. Which of the 

following statements is true? 

Martha is personally liable for the additional $75,000 owed to business creditors. 

Once Martha terminates the sole proprietorship, she is no longer liable for the 

$50,000. 

Martha’s business creditors can collect only the $50,000 now, but if Martha ever 

goes into business again, they can get the assets of the new business. 

Martha’s business creditors can collect only the $50,000 of business assets 

11.) Which of the following is one of the major purposes of a settlement 

conference? 

To structure a settlement payment schedule 

To facilitate the settlement of a case

To contest the local court rules 

To conduct discovery for a case 

12.) Which of the following is true about the choice of business entity for an 

entrepreneur? 

The choice is determined solely by the amount of capital invested. 

The choice takes into account many factors, including finding an option that has all 

the characteristics desired. 

The choice is determined by the Internal Revenue Service based on all the facts 

and circumstances. 

The choice is determined solely by whether the primary business is services or 

goods. 

13.) Which of the following is true in the creation of a general partnership? 

The business name cannot be a fictitious name. 

The business name must have the names of all the partners. 

The business cannot operate under a trade name. 

The name selected cannot indicate that it is a corporation. 

14.) Which type of business formation is typically reserved for professionals 

such as accountants, lawyers, and doctors? 

Limited Liability Company (LLC) 

Limited Liability Partnership (LLP) 

S-Corporation 

Franchise 

15.) There are two general partners, each of whom contributes $5,000 in capital 

to a limited partnership. There are two limited partners, each of whom contributes 

$20,000. The total amount of capital contributed is $50,000. The limited 

partnership agreement does not stipulate how profits and losses are to be allocated. 

Assume that the limited partnership makes $300,000 in profits. Under the Revised

Uniform Limited Partnership Act (RULPA), how much would each partner 

receive? 

All partners would receive $75,000, regardless of whether he or she is a general or 

limited partner. 

Each general partner would receive $120,000, and each limited partner would 

receive $30,000. 


receive $120,000. 


receive $100,000. 

16.) Which of the following is true regarding mediation? 

If a settlement agreement is not reached in mediation, then the parties hire a new 

mediator. 

A settlement agreement is never reached with a mediator. 

Was created by the Federal Mediation Act of 1925. 

A mediator does not make a decision or an award. 


LAW 531 Week 1 Individual Assignment The Legal System And ADR 

Analysis 

LAW 531 Week 1 Individual Assignment The Legal System and ADR 

Analysis 




• . Is a sole proprietorship a business entity? Is a franchise a business 

entity? Explain why or why not. 

• . What is piercing the corporate veil? Can it apply to a limited liability 

company as well as a corporation? Explain. 




Please discuss the key differences between limited liability company (LLC) and a 

subchapter S corporation 

Please discuss the key differences between a subchapter S corporation and a 

general corporation (C or G) corporation? 

Use the following questions to guide you in your discussion. 

1. how are the entities formed (created)? 

2. who are the owners of the entities? 

3. what kind of liability exposure do the owners of the entities have? 

4. how are the entities/owners taxed?

5. how are the entities dissolved according to statute? 

6. degree of formality in operating the entities? 




Please discuss the key differences between a general partnership partnership versus 

a limited partnership using the following questions to help guide you. 

1. how are the entities formed (created)? 

2. who are the owners of the entities? 

4. what kind of liability exposure do the owners of the entities have? 

5. how are the entities/owners taxed? 

6. how are the entities dissolved according to statute? 

7. degree of formality in operating the entities? 

8. do the entities lend themselves to managerial control 




1. A motion for judgment on the pleadings or a motion for summary jusgment can 

be decided against a party and can end a case. Select and explain one of these 

motions and how it can end a case. 

2. What is an appeal? Explain. 

3. What are the key differences between mediation and arbitration? Why would 

you choose one over the other? 


LAW 531 Complete Course 

LAW 531 Complete Course 





LAW 531 Week 1 Individual Assignment The Legal System and ADR 

Analysis 







LAW 531 Week 2 Learning Team Reflection IRAC Brief











LAW 531 Week 4 Individual Assignment Contract Creation and Management 

Simulation

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