Civil Liability and Contract Law – Business Law Study Guide 2017

In which of the following methods of alternative dispute resolution must parties to a case employ a neutral third party to settle their dispute?

 Arbitration

Explanation: Arbitration is conducted by allowing a moderator to make a legally binding ruling on a case, just as if it were done in an actual courtroom. This can be beneficial for parties in the dispute because it is often more flexible than formal court proceedings.

If a competitor reverse engineers a trade secret, then the competitor is…

 allowed to use the trade secret but not the original trademark

Explanation: When a trade secret is legally reverse engineered, a company is allowed to use it in their own business model. For example, if you were able to reverse engineer Google’s search algorithm, you could use it for your own search engine, but you wouldn’t be allowed call it the same trademark brand name.

Which of the following federal statutes was enacted by the Congress to protect trade secrets?

 Economic Espionage Act

Explanation: The Economic Espionage Act was implemented to prevent foreign governments and competitors from stealing trade secrets from U.S. based companies operating internationally.

Which of the following does the Money Laundering Act prohibit?

 Knowingly engaging in the financial transaction involving the proceeds of an unlawful activity.

Jeremy crashes his friend John’s car because he is an incompetent driver.

Emily, John’s sister, is outraged and wants John to sue his friend. John refuses to file a case against his long-time friend. Which of the following is Emily allowed to:

 She cannot sue because she has no stake in the outcome of the case.

Explanation: Jeremy would need to file the lawsuit in this case and cannot be compelled by an uninvolved third party, such as Emily.

Daniel Simmons and Lawrence Rogers, the 2 owners of XYZ, LLC are contending parties to a lawsuit involving the division of their business assets.

They wish to settle their case out of court. Daniel and Lawrence engage in discussions and bargaining with the presence of their attorneys and finally conclude that Daniel keeps 60 percent of the assets while Lawrence gets the remainder. In this scenario, the method of alternative dispute resolution is used

 Negotiation

Which of the following is true of the registration of copyrights?

 Registration permits a holder to obtain statutory damages for copyright infringement.

Explanation: Copyright law outlines statutory damages for cases of copyright infringement. You can read more about it here.

Which of the following is true about a minor’s right to disaffirm a contract?

 A minor can disaffirm a contract any time prior to reaching the age of majority

Explanation: A minor can disaffirm prior to reach majority under most circumstances, as minors cannot enter legally binding contracts on their own.

 
  • Student: Forest Bayes
  • Textbook: Various Law Textbooks
  • Course: Business Law 421
 

Browse More Business Law Resources

Law is one of the most memory-intensive aspects of business school. Learn the most important concepts with our full 2016-17 study guide:

  1. Part 1 - Civil Liability and Contract Law
  2. Part 2 - Employee/Employer Relations and Civil Rights
  3. Part 3 - Federal/State Regulations and Legal Powers
  4. Part 4 - Issues Concerning Liability

 

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