INSTRUCTIONS:

A. This is a group exam. All group members will receive a copy of the exam questions, but each group only gets one copy of the answer sheet.

B. Each group may submit a completed exam for grading three times. Prior to the first submission, all group members must sign the answer sheet. On each grading all of the correct answers and the total number of answers correct will be noted by the instructor.

C. Your group may work on its exam from 6:30 to 8:40 PM
on Thursday, May 7, 1998.

D. This final exam is a closed book, open discussion within a group exam.

E. Mark your group's answers clearly to speed the grading of the exam.
For example, mark your answer using capital letters instead of lower case letters.

F. Recall that there are eight answer options, and if, for example, A is true there are four possibly correct answers. Therefore, your analysis of your answer options always should go to the truth or falsity of each A, B, or C. Keep focused and reject reasoning that ordinarily works on multiple choice exams, but does not work on this type of multiple choice exam. For example, any time any group member says --"Because our group answered A and that was the wrong answer, therefore the answer is B."--, tell that group member to "Focus on the problem at hand and avoid game playing." Game playing will not work in this context.

THE ANSWER OPTIONS ARE A, B, C, D (=all), E (=none), F (=a+b), G (=a+c), and H (=b+c)

QUESTIONS:

1. Which of the following is/are true?

A. You will increase your negotiation power
if you know your BATNA;
if you know your opponent's BATNA; and/or
if you can decrease your BATNA.

B. According to the Law and Economics School
the long term history of the legislative process
appears to be an unconscious pursuit of a central goal: that is,
promoting market efficiency

C. A plaintiff must have standing to sue a defendant.
Standing to sue requires
injury in fact and being within the zone of protected interests.

2. Which of the following is/are true?

A. For you to be an effective principled negotiator
you must abandon the positional strategy.

B. The precedence value
of one arbitrator's decision to another arbitrator
is roughly equal to
the precedence value
of one jurisdiction's court's decision to courts of another jurisdiction.

C. An appellate court will affirm the trial court
unless the appellate court finds:
[1] a clear error of fact;
[2] a non-harmless error of procedure; or
[3] any error of law.

3. Which of the following is/are true?

A. Expert practitioners of positional bargaining do not require preparation.

B. With respect to sexual harassment,
if the environment
subjectively is perceived as hostile or abusive,
then
the rebuttable presumption is that
the environment produced an injury in fact.

C. In part,
comity or, as known domestically, full faith and credit
means that one government
must without exception accept and given legal effect to the judicial acts
or another government.

4. Which of the following is/are true?

A. Positional bargaining tends to
disentangle substantive issues from relationship and process issues.

B. Under the USA Constitution
an enumeration of federal powers
acts an implicit denigration of other federal powers.
The reverse is true for the People.
In contrast, with respect to the States, the Constitution contains
express and implied denials of State power
as well as an express claim to unenumerated State powers.

C. As long as the parties
can show substantial minimal contracts with the chosen jurisdiction,
any USA State
typically will allow the parties to a contract
to exercise choice of law and pick that State
as the State whose law will control the contract.

5. Which of the following is/are true?

A. Creating options
is an essential part of negotiation preparations and
options must be linked to
achieving the conclusion of the negotiation.

B. Traditionally, the law required businesses to pursue social responsibility,
if at all,
solely by pursuing monopoly profits.

C. Because of the USA Constitution's 11^th Amendment an Iowan
may sue the State of Nebraska
in a Federal District Court
for an action by Nebraska within the State of Nebraska
on the basis of diversity of citizenship federal jurisdiction.

6. Which of the following is/are true?

A. Whether a use fits under the copyright law's "fair use"
is measured by four interrelated factors, no one of which is controlling,
purpose of the use; nature of the work;
extent of the copying, and effect on the market for the work.

B. A person accused of a crime is presumed innocent until
the government proves beyond a reasonable doubt
both the criminal act and the criminal intent.

C. To prove a tort the plaintiff must prove
by a preponderance of the evidence that the defendant owed the plaintiff a duty of care and that at the time of the defendant's breach the defendant could reasonably foresee the plaintiff's injury.
Also, the defendant must fail to prove any defenses.

7. Which of the following is/are true?

A. A principal
always is liable on a written contract
signed by a fully disclosed agent
within the scope of authority
when the contract satisfies both the equal dignity rule
and the Statute of Frauds.

B. Negotiable instruments
require an exchange of value,
thus these instrument may be contracts,
but need not be contracts.

C. Proximate causation
deals with the chain of events leading up to an injury.
The law now uses actual causation,
which deals with reasonably foreseeable consequences of one's actions.

8. Which of the following is/are true?

A. A creditor with a valid security agreement
usually may perfect the security interest
by filing the financing statement.

B. Employees who suffer injuries
arising out of and happening in the course of employment
under State law have the exclusive remedy of
suing under the State's Unemployment Compensation law.

C. If the defendant can prove that
the plaintiff knowing and voluntarily exposed the plaintiff
to the alleged tort of the defendant,
then the defendant has proved the defense of res ipsa loquitur.

9. Which of the following is/are true?

A. The federal equal employment opportunity (EEO) laws
allow discrimination on any basis
other than membership in a protected class (e.g., sex).

B. A Chapter 7 individual bankruptcy may be initiated
either voluntarily or involuntarily.

C. A statute of repose can be tolled,
but a statute of limitation cannot be tolled.
Thus,
the statute of limitation places an ultimate deadline
for brings a complaint before a court.

10. Which of the following is/are true?

A. The federal occupational health and safety regulations
require employers to eliminate all known risks
of serious physical injury.

B. Unions
have a legislatively recognized legitimate business interest
proportional to price fixing and group boycotts.

C. All of the six elements of a contract are:
agreement, capacity, consideration,
reality of assent, form, and legal subject matter.

 

11. Which of the following is/are true?

A. All federal environmental regulations preempt
environmental regulations by each State
with respect to maximum cleanliness of the environment.

B. "Conscious parallelism"
is defense to a charge of attempt to monopolize in restrain trade.

C. The defendant commits common law fraud
when the defendant
knowingly and intentionally misrepresents or omits a material fact, inducing the plaintiff's justifiable reliance and
causing the plaintiff's injury.

12. Which of the following is/are true?

A. "Monopoly power" is the ability
to control prices or exclude competition.

B. The due diligence defense is a defense to
civil liability for an advisor to an issuer.

C. The Statute of Frauds
requires all of the material terms
of five different types of contracts to be in writing.
Those five contracts are:
sale of goods at or over $500; sale of an interest in land;
must take longer than a year; guarantee the debts or another; and
in consideration of marriage.

13. Which of the following is/are true?

A. A surety will be sued before a guarantor is sued, but once sued the guarantor will have more liabilities and fewer defenses.

B. Some private securities
are exempted from the registration and reporting requirements
if the investors are sophisticated investors
with access to the information
that would have been disclosed within the registration and reporting.

C. An agent is personally liable
for contracts signed by the agent
within the agent's scope of authority
if the agent signs merely with the agent's own name.

14. Which of the following is/are true?

A. "Fraud," for securities law purposes, is defined as
the defendant's
misrepresentation or omission of a material fact
causing the plaintiff's injury.

B. Horizontal mergers
are less likely to be legal than vertical mergers.

C. Compensatory damages typically are penalty damages.
In contrast,
liquidated damages
could be for consequential damages without being a penalty.
But,
there is a greater risk that liquidated damages for consequential damages
will be viewed by a court as a penalty.

15. Which of the following is/are true?

A. Procedural Due Process
requires government to give persons notice and hearing
prior to and proportional to
denying that person's life, liberty, or pursuit of happiness

B. The federal Commerce Clause allows the federal government to
preempt the State governments'
less on tender offers than on the resale of securities generally
since tender offers have a more immediate effect
on the corporation created by the State and the State's economy.

C. "Material" is used a variety of contexts,
but does not necessarily have a constant meaning.
Under the Statute of Frauds the material terms are:
parties, time, consideration, and subject matter.
The material of mutual mistake is smaller than for unilateral mistake.

16. Which of the following is/are true?

A. RICO covers all enterprises (e.g., corporations)
that engage in a pattern
(i.e., two or more predicate acts within ten years)
of racketeering activities.

B. Derivative lawsuits often seek to pierce the corporate veil.

C. Employers covered by the Americans with Disabilities Act (ADA)
must make reasonable accommodations
for disabled employees
without being requested to do so by the employee.

17. Which of the following is/are true?

A. The exclusionary rule
does not prohibit, in a civil trial,
the government's use of evidence
obtained by the government's unreasonable search.

B. Limited partners have contractual liability,
but not tort liability,
limited to the amount of the limited partner's capital contribution.

C. "Statutory insiders"
--who must return short swing profits-- are
executive officers, directors, and 10% shareholders
of an equity security of a reporting company.

18. Which of the following is/are true?

A. If any contract signed by the promoter of a corporation
is to be valid
--when promoting the corporation and expressly acting as its agent--
then the promoter must have contractual capacity.

B. Consumer protection legislation
often follows years of the courts finding
duress, unilateral mistake, or fraud.

C. Statutory insiders for Section 16b and insiders for Section 10b,
when they violate SEC insider trading rules
also are violating their fiduciary duties.

19. Which of the following is/are true?

A. There are three classes of subjects of collective bargaining:
[1] compulsory; [2] permissive; and [3] illegal.

B. Government has the authority to regulate
the content of commercial free speech.

C. The Sherman Act section 1 makes
contracts in restraint of trade a federal felony.

20. Which of the following is/are true?

A. The Freedom of Religion
prohibits government when acting with the protection of an Act of State from promoting one religion over another religion.

B. The standard for measuring the "deceptiveness" of advertising is
the reasonable consumer.

C. A "security"
is defined judicially
as an investment of money in a common enterprise
with a reasonable expectation of profit
from the undeniably significant efforts of others.

21. Which of the following is/are true?

A. The Police Power
is a State power to regulate for the People's
health, safety, and morals.
Under the Police Power
the States may burden interstate commerce
if in pursuit of a legitimate governmental interest.

B. Today, employment law is a mixture of
government regulation, agency law, and contract law.

C. Many federal consumer protection regulations
are directed at
correcting information failures in the market.

22. Which of the following is/are true?

A. In whole,
the Commerce Clause grants the federal government
the power to regulate commerce among the several States
(i.e., a close and substantial affect on commerce between the States).

B. Both officers and members of the Board of Director
owe the corporation fiduciary duties,
but the Business Judgement Rule only protects Directors.

C. The federal antitrust laws
provide both criminal and civil enforcement options.

23. Which of the following is/are true?

A. The Preemption Doctrine implements the Supremacy Clause.
Under the Preemption Doctrine
preemption is favored and will be allowed,
if there is express Congressional intent to preempt and
there is a need for national uniformity.

B. A principal
who uses genuine independent contractors
is shielded from tort strict liability
for ultra-hazardous activities
conducted solely within the contractor's scope of authority.

C. During a Chapter 11 reorganization bankruptcy
the debtor
must continue to perform all contracts not yet discharged.

24. Which of the following is/are true?

A. The USA Constitution recognizes three divisions of power:
between government and individuals;
between the federal and State governments; and
between the legislative, executive, and judicial branches of government.

B. Corporations
get the full protection of the 5^th Amendment's
prohibition against compelled self-incrimination.

C. Patents are governed exclusive by federal law.

25. Which of the following is/are true?

A. The Rational Basis Test
interpretation placed on the Equal Protection Clause
recognizes broad legislative discretion
in creating different classes of persons
but based on similarly situated persons, and
recognizes narrower legislative discretion
for treating persons differently within each such class.

B. A trade secret owner
can lose a trade secret
if the owner
provides reasonably sufficient protection
but someone independently discovers (e.g., reverse engineering).

C. Corporate social audits
attempt to quantify and prioritize
non-monetary inputs and expenses.

 

Q # KEY

1. C = C

2. G = A + C

3. E = ; the answer is ambiguous, so A is allowed on this exam

4. H = B + C

5. A = A

6. D = A + B + C

7. F = A + B

8. A = A

9. F = A + B

10. D = A + B + C

11. E =

12. D = A + B + C

13. H = B + C

14. F = A + B

15. B = B

16. A = A

17. G = A + C

18. G = A + C

19. D = A + B + C

20. D = A + B + C

21. H = B + C

22. C = C

23. E =

24. C = C; since A is ambiguous the answer on this exam also could be G

25. D = A + B + C