It contains 50 True/False and Short Answer questions and one Bonus Question. For the True/False questions, if you select False, explain why the statement is false.If you do not provide a correct supporting explanation, you will get no credit for the question. Try to make your explanations as succinct as possible.
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It contains 50 True/False and Short Answer questions and one Bonus Question. For the True/False
questions, if you select False, explain why the statement is false. If you do not provide a correct
supporting explanation, you will get no credit for the question. Try to make your explanations as
succinct as possible.
Short Answer and True/False Questions
What is cognitive dissonance?
The fiduciary duty that is predicated on the concept that a board of directors and officers must consider
all relevant information before making a decision is:
The fiduciary duty that is part of the duty of Loyalty that requires that a board ensure that there is
established in an organization an effective compliance and ethics program is:
If a board member fails to disclose a conflict of interest and is later sued by shareholders for a breach of
the fiduciary duty of Loyalty, what affirmative defense, if any, can he/she invoke to try to avoid liability
for that alleged breach?
If a defendant publishes a defamatory article in a newspaper in Birmingham, Alabama that has
nationwide circulation, and the plaintiff is injured in his/her reputation by that article in Jackson,
Mississippi where the plaintiff lives, all that the plaintiff would have to show in order to get personal
jurisdiction over that newspaper for a defamation action filed in Jackson, Mississippi is that, when the
article was published, the plaintiff experienced mental anguish. True/False?
Assume that a corporation manufactures a product in France and sells that product to an independent
agent in the U.S. and that agent sells the product to a retail construction equipment seller that then sells
the product to a construction company in Troy and an employee is injured by that product on a
construction site in Troy. What case would you cite to argue that the defendant is not subject to specific
personal jurisdiction in Alabama because, even though the defendant wanted to reach the U.S. market,
it had no independent contacts with the state of Alabama, it did not target Alabama, and, therefore, it
did not have sufficient minimum contacts with Alabama and that it had not purposely availed itself of
the Alabama market and the jurisdiction of Alabama courts?
What level of mens rea describes someone who is subjectively aware of a risk of the existence of a fact,
of a circumstance, or of the reasonable probability that a result will occur, but consciously disregards
that risk and goes forward with his act or omission?
In the decision of Global-Tech Appliances, et al., 131 S.Ct. 2060 (2011), the United States Supreme Court
held that the doctrine of willful blindness, traditionally found in criminal law, would apply to the civil tort
of inducement of patent infringement. True/False?
In the decision of Williams v. Reasoner, 668 So.2d 541 (Ala. 1995), the Alabama Supreme Court followed
the lead of the New Jersey Supreme Court in Kelly v. Gwinnell, 476 A.2d 1219 (N.J. 1984), and used its
common law powers to adopt the doctrine of social host liability in Alabama.
The tort of Tortious Interference with Contracts or Business Relationships is a statutory tort in Alabama
because the Alabama Legislature codified the elements of that tort as they are contained in the
Restatement (Second) of Torts. True/False?
With Tortious Interference, as to the element of the existence of a business relationship between two
parties, what is the level of state of mind that applies to that element?
With Tortious Interference, who has the burdens of production and persuasion on whether the alleged
tortious interference was justified?
With Tortious Interference, the definitions of what will be considered justified, have been adopted by
the Alabama Supreme Court from the Restatement (Second) of Torts. True/False?
The following are the two elements of willful blindness: (1) the defendant must subjectively believe that
there is a high probability that a fact exists; and (2) the defendant was negligent i.e. the defendant failed
to act as a reasonable person would have acted under similar circumstances, in not taking actions to
determine if that fact, circumstance or result exists; or to determine if that fact exists True/False?
For the collective knowledge doctrine to apply, courts impute to a corporation the aggregate
constructive knowledge of its employees. True/False?
Provide the exact quotation and the page on which it is found for the statement of the owner (Plaintiff)
in the Target Media Partners decision when he was cross-examined and where he talked about trust.
Provide the page of the case on which that quotation is found.
To what element of a fraudulent misstatement of fact in a fraud case was that testimony relevant?
In the Farmers Insurance Exchange, et al. v. Morris, 228 So3d 971 (Ala. 2016) decision, the Alabama
Supreme Court held that Morris should have read the documents provided to him by Farmers Insurance
which contained Farmers code of ethics and that because he did not, he could not have reasonably
relied on the statements given to him by Farmers Insurance personnel that there would be no conflict
of interest if he came to work for Farmers Insurance from his family owned insurance business in
The doctrine of puffing in fraud law is similar to what doctrine in the law of defamation that stands for
the concept that there are just some statements that people will not accept as an assertion of fact for
the purpose of defamation.
With respect to the determination of whether a business relationship has reached a sufficient stage of
maturation to be subject to a tortious interference claim, what is the guidance that was set out in the
White Sands Group case?
In the decision of Chevron, U.S.A., Inc. v. Natural Resources Defense Counsel, Inc., et al., 467 U.S. 837
(1984), the United States Supreme Court addressed the standard of review and degree of deference, if
any, that courts would give to administrative agency decisions. True/False?
Administrative agencies perform what four functions that are performed by the three other branches of
the federal government. List them.
Speech protected under the First Amendment must be in oral or written form. True/False?
The Citizens United decision held that corporations could, out of their corporate treasuries, make
unlimited political contributions to candidates of their choice. True/False?
Both the Hobby Lobby decision and the Harris Funeral Homes decision involved a federal statute
designed to embody the protections and values in the Establishment Clause of the Freedom of Religion
dimension of the First Amendment. What is the name of that federal statute?
Under Title VII, if a plaintiff proves a prima facie case, the burden of production shifts to the employer to
produce evidence of what?
In the above question, if the employer meets it burden, the burden of production shifts back to the
plaintiff/employee to produce evidence of what?
Under Title VII, an employee must initially file a complaint with the EEOC. If the EEOC does not take the
case after 180 days, the EEOC will issue a right to sue letter and the employee can then file her own
action against the employer. True/False?
In order for a corporation to be liable for a crime committed by one of its employees, the only
requirement for the concept of vicarious liability to apply is that the employee commit the crime for the
benefit of the corporation. True/False?
For the Responsible Corporate Officer Doctrine to apply, a prosecutor must prove that the responsible
corporate officer knew that the lower level employee was committing the crime or, at a minimum, that
he was willfully blind as to that fact. True/False?
The Uniform Commercial Code (UCC) contains the Mirror Image Rule found in the Common Law of
In the Common Law of Contracts, the concept of consideration must be of an acceptable economic
(dollar) value for a court to hold that there has been adequate consideration. True/False?
Under the Common Law of Contracts, in order to serve as valid consideration, a pre-existing duty must
be of equal economic value (dollar) as the consideration offered by the other contracting party.
The doctrine of promissory estoppel will create an enforceable contract between two parties.
What is one equitable remedy that is available for breach of contract that is not available as damages for
the commission of a tort?
What is the name of the doctrine in the Law of Contracts that allows a party to breach a contract (and
pay damages) if the breaching party would be better off economically by breaching than he would have
been had he continued to abide by the terms of the contract?
Because it is not the complete employment contract between an employee and an employer, a
covenant to not compete (a non-compete agreement), cannot, by itself, be the subject of a tortious
interference claim. True/False?
The Statute of Frauds can vary from state to state, but it basically provides that certain contracts
specified in the Statute must be in writing. True/False?
In Tort Law, just as in Contract Law, a plaintiff must mitigate his/her damages to recover damages.
Cannons of Construction are used in both statutory law and Contract Law, to construe the meanings of
words in statutes and contracts. True/False?
In the construction of words in a contract, what are the two types of ambiguity that will allow for an
exception to the Parol Evidence Rule and permit the contracting parties to testify on what each thought
the word(s) in question meant when they entered into the contract?
Both the criminal and civil provisions of RICO have been held to apply extraterritorially. True/False?
Under RICO, the concept of enterprise applies only to legitimately incorporated corporations.
For RICO to apply extraterritorially, the predicate criminal offense(s) on which a RICO criminal
indictment is based, must be held to apply extraterritorially. True/False?
The Foreign Corrupt Practices Act (FCPA) has two provisions. What are they?
The Foreign Corrupt Practices Act has extraterritorial effect and will criminalize bribery by any foreign
citizen who is overseas and who attempts to bribe any American government official while conducting
business outside of the territorial bounds of the United States. True/False?
The Foreign Corrupt Practices Act allows for, and does not criminalize, the payment of small amounts of
money to foreign government officials for simply carrying out administrative duties which do not involve
making discretionary decisions about whether competing businesses will be awarded foreign
government contracts. True/False?
In the Esquinazi case decided by the 11th Circuit, the issue was the meaning of the concept of
instrumentality under the Foreign Corrupt Practices Act. True/False?
For purposes of the Foreign Corrupt Practices Act, what does the concept of State Owned Enterprise
Under the Foreign Corrupt Practices Act, what is the mens rea that applies to the element of the status
of the person to whom a bribe is offered or made as being a foreign government official or an
instrumentality of a foreign government?
We have now studied how the Common Law functions in the United States today, but also how the U.S.
might have moved into a society which is more highly regulated and governed by statutes, regulations,
and administrative agencies. We have studied certain rules and principles of law that govern and
constrain citizens and businesses. We have studied how there is more and more pervasive regulation of
businesses through the Criminal Law and through Administrative Law. Of course, there is always the
ever present welfare state that results in the reallocation of wealth. My question is: Do the citizens of
the United States today really want a free market economy?
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