Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability

Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. Which form of business entity should these individuals adopt?    A.  sole proprietorship B.  joint stock company C.  limited partnership D.  general partnership E.  corporation Refer to section 1.2

36.

Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business? Whichever organization they select, they wish to be treated equally.    A.  sole proprietorship B.  joint stock company C.  limited partnership D.  limited liability company E.  corporation Refer to section 1.2

37.

Which one of the following best states the primary goal of financial management?    A.  maximize current dividends per share B.  maximize the current value per share C.  increase cash flow and avoid financial distress D.  minimize operational costs while maximizing firm efficiency E.  maintain steady growth while increasing current profits Refer to section 1.3

Bobby has a lawsuit in federal district court and asks Sally, a first year law student, about court-annexed ADR. What should Sally tell him?

What is a summary jury trial? 
A. An abbreviated trial that leads to a nonbinding jury verdict.
B. An unabbreviated trial that leads to a binding jury verdict.
C. An abbreviated trial that leads to a binding jury verdict.
D. An abbreviated trial leading to a binding verdict in which only a few witnesses are called to the stand.
E. A binding trial conducted by a panel of mediators after a failed mediation.

Which of the following is true regarding the use of arbitration and mediation in e-commerce cases? 
A. Increasingly, litigants are using arbitration, but not mediation, to resolve disputes in e-commerce cases.
B. Increasingly, litigants are using mediation, but not arbitration, to resolve disputes in e-commerce cases.
C. Increasingly, litigants are using arbitration and mediation to resolve disputes in e-commerce cases.
D. Arbitration is allowed by federal law in e-commerce cases, but mediation is not allowed.
E. Mediation is allowed by federal law in e-commerce cases, but arbitration is not allowed.

Why may a minitrial be preferred to arbitration? 
A. It is less costly than arbitration.
B. In a typical minitrial, the business representatives, who presumably understand the complex matters of a dispute better than an arbitrator, have settlement authority.
C. The procedures of the minitrial can be modified to meet more precisely the needs of the parties.
D. All the above.
E. None of the above. Preference is not an issue. A minitrial must follow and come after an arbitration.

In which of the following do parties select a neutral third party and explain their respective positions to the neutral, who then evaluates the strengths and weaknesses of the case? 
A. Summary jury trial
B. Minitrial
C. Early neutral case evaluation
D. Private trials
E. Neutral submission

Which of the following is an ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute? 
A. Summary jury trial
B. Minitrial
C. Early neutral case evaluation
D. Private trials
E. Neutral submission

When does a private trial typically occur? 
A. After a jury trial and prior to appeal.
B. After a case has been filed in federal court, but parties must wait at least 30 days.
C. After a case has been filed in either state or federal court.
D. Before a case has been filed in any court.
E. Upon order of a federal judge only.

What types of ADR techniques exist in Japan? 
A. Compromise
B. Conciliation
C. Arbitration
D. All the above
E. None of the above. ADR is outlawed in Japan.

What are the criticisms of private trials? 
A. They may allow defendants to hide wrongdoing from the public.
B. Those who lack funds must use a slower cheaper system.
C. They are quicker than regular litigation.
D. They may allow defendants to hide wrongdoing from the public, and those who lack funds must use a slower cheaper system.
E. They may allow defendants to hide wrongdoing, and they unfairly discriminate against corporations because in some cases corporations must pay the costs involved for indigent plaintiffs.

Bobby has a lawsuit in federal district court and asks Sally, a first year law student, about court-annexed ADR. What should Sally tell him? 
A. Mediation is required by law in federal district court.
B. Arbitration is required by law in federal district court.
C. Both mediation and arbitration are required by law in federal district court.
D. Neither mediation nor arbitration is required by law in federal district court, but all litigants must present a summary of their positions to a case neutral.
E. Bobby should check with the particular district court he is in on the issue because federal district courts vary on the approved ADR methods.

What is the primary ADR process used in federal district courts? 
A. Mediation
B. Arbitration
C. Summary jury trials
D. Early neutral case evaluation
E. Private trials

Mediation programs are underway in _____ of state courts. 
A. More than one-third
B. More than one-half
C. More than 75%
D. Less than one-half
E. Less than 10%

Which of the following is true regarding the federal appellate court's use of ADR? 
A. Half of the federal appellate courts use some type of ADR.
B. All 13 federal appellate courts use some type of ADR.
C. All but one of the 12 federal appellate courts uses some type of ADR.
D. Federal appellate courts do not use ADR.
E. All federal appellate courts use early neutral case evaluation but none use mediation.

As reflected in the text, which organization[s] offer[s] dispute resolution methods for international companies? 
A. The American Arbitration Association
B. The Federated Chamber of Commerce
C. The United Federation of Countries
D. All the above
E. None of the above

According to the text, which of the following is a defense to an arbitration award under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards? 
A. Not all parties attended the hearing.
B. The award is contrary to the preponderance of the evidence.
C. The award is unreasonable as a matter of law applying a beyond a reasonable doubt standard.
D. All the above are defenses.
E. None of the above are defenses.

______ countries belong to the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards. 
A. 52
B. 78
C. 144
D. 151
E. Over 200

Which of the following is true regarding the remedy if a party does not abide by an agreement reached in mediation?
A. Because mediation is a voluntary process, there is no legal remedy.
B. The remedy is to return to mandatory mediation.
C. The remedy is to proceed to arbitration.
D. The remedy is to sue for breach of contract.
E. The remedy is to proceed to a minitrial.

Which of the following is true regarding the Equal Employment Opportunity Commission (EEOC) position on mediation?
A. The EEOC encourages the mediation of employment discrimination claims.
B. The EEOC discourages the mediation of employment discrimination claims.
C. The EEOC discourages the mediation of employment discrimination claims in sexual harassment cases but not in age discrimination cases.
D. The EEOC discourages the mediation of employment discrimination claims in age discrimination cases but not in sexual harassment cases.

E. The EEOC encourages the mediation of all employment discrimination claims except for those arising under the Americans with Disabilities Act where the use of mediation is discouraged.

Sally, a friend of yours who just finished college and was hired at the local high school, wants to copy a number of articles from her class

Which of the following was developed by the United Nations as an alternative for countries who wanted to participate in some form of multilateral protection of copyrights, but did not want to agree to the terms of the Berne Convention? 
A. The Universal Copyright Convention
B. The Agreement on Trade-Related Aspects of Intellectual Property Rights
C. The Paris Convention
D. The Signatory Agreement
E. The US-Soviet Agreement

The Universal Copyright Convention (UCC) was developed by the United Nations as an alternative for countries that wanted to participate in some form of multilateral protection of copyrights but did not want to agree to the terms of the Berne Convention.

Which of the following is a principle of The Paris Convention of 1883? 
A. National treatment
B. Nonconditional protection
C. Complex treatment
D. Enforcement priority
E. Treaty affirmation

The Paris Convention of 1883 has three basic principles: (1) national treatment, as defined under the Berne Convention; (2) the right of priority, which allows a national of a member state, 12 months after filing in his or her home nation, to file an application in any other member state and have the date of application be the date of the filing in the home nation; and (3) common rules, which set out minimum standards of protection in all states.

Which of the following was the result in the "Case Opener" involving the lawsuit brought by Papa John's International, Inc. against former franchises? 
A. All claims were allowed to proceed except for claims of trademark infringement which were dismissed with prejudice without leave to replead the claim.
B. All claims were allowed to proceed except for claims of copyright infringement which were dismissed with leave to replead the claim.
C. All claims were dismissed except for claims of copyright infringement.
D. All claims were dismissed.
E. All claims were allowed to proceed.

The court denied the defendant's motion to dismiss with respect to all claims except the copyright claim. The court believed that the plaintiff could prove its case, or at least should have the opportunity to argue its case, in a court of law. The copyright claim was dismissed, but with leave to replead the copyright claim in a matter that clearly aligned the plaintiff's allegation with the legal requirements for copyright violation.

Sally, a friend of yours who just finished college and was hired at the local high school, wants to copy a number of articles from her class. She heard that you are taking business law and asks if you see any problem with her copying the articles. Based on the case in the text, Princeton University Press v. Michigan Document Services, Inc., what would you tell her? 
A. Under the fair use doctrine she is free to copy the articles because they are for educational purposes.
B. Under the fair use doctrine she must get permission from all copyright holders before copying the articles.
C. There are federal Classroom Guidelines on the issue and that you need to know more before you can advise her.
D. There are federal Classroom Guidelines that provide the maximum standards of educational fair use, and she is protected so long as she copies under 200 pages.
E. There are federal Classroom Guidelines that provide the maximum standards of educational fair use, and she is protected so long as she copies under 100 pages.

The federal Classroom Guidelines purport to "state the minimum and not the maximum standards of educational fair use," they do evoke a general idea, at least, of the type of educational copying Congress had in mind. The guidelines allow multiple copies for classroom use provided that several criteria are met.