ST. JOSEPH’S UNIVERSITY
LEGAL ENVIRONMENT OF BUSINESS I
MGT 360 – D06
SECOND EXAM – November 6, 2019
ANSWER SHEET
IN TAKING THIS EXAM, YOU ARE SUBJECT TO THE SAINT JOSEPH’S
UNIVERSITY ACADEMIC HONESTY POLICY. YOU A
...
ST. JOSEPH’S UNIVERSITY
LEGAL ENVIRONMENT OF BUSINESS I
MGT 360 – D06
SECOND EXAM – November 6, 2019
ANSWER SHEET
IN TAKING THIS EXAM, YOU ARE SUBJECT TO THE SAINT JOSEPH’S
UNIVERSITY ACADEMIC HONESTY POLICY. YOU ARE NOT TO CONSULT
WITH ANY OTHER STUDENT IN TAKING THIS EXAM. FAILURE TO ABIDE
BY THESE RULES WILL RESULT IN A “0” ON THIS EXAM AND POSSIBLY
AN “F’ FOR THE COURSE.
Name: _______________________________________
Multiple Choice
PART II – ESSAY/SHORT ANSWER QUESTIONS - FOUR (4) QUESTIONS TOTAL
1. John and Tracy contract with Ace Whitewater Rafting Co. to provide a guide and all
necessary rafting equipment so that they can “ride the rapids” on a river. During their trip
down the river, the raft strikes a large rock and, as a result, John falls out of the raft and
breaks his leg. Tracy witnesses the entire incident and it is her belief that the guide,
Linda, failed to steer the raft clear of the large rock. John sues Ace for his injuries.
A) What must John prove in order to make out a case and win his negligence claim
against Ace?
B) What defenses can Ace raise regarding John’s negligence claim?
C) Which party will win the lawsuit? Why?
D) Suppose Linda intentionally guided the raft into the rock to “shake up” the guests.
If, after seeing John fall out of the raft, Tracy became so frightened that she suffered
a heart attack, what claim could Tracey have against Linda?
2. Derek owns a race car and Gino is a race car diver. Both Derek and Gino are over the age of
18. Derek asked Gino to serve as the driver of his race car in an upcoming race that is
sanctioned by the Pennsylvania Racing Association. Derek promised to pay Gino $1000 if
Gino promised to race the car to the best of his ability to win the race. Gino promised to race
the car to the best of his ability to win the race and Gino prepared for the race. The next day,
before the race occurred, Arch went up to Gino and said “I’ll pay you $500 if you win the
race.” Gino then participated in the race and won.
A. Is there a valid contract between Derek and Gino? Why or why not?
B. Is there a valid contract between Arch and Gino? Why or why not?
C. Is the contract between Derek and Gino a unilateral contract or a bilateral contract? Why?
3. The following six (6) statements are false. Identify why the statements are false.
1. When the language of Food and Drug Act is clear, courts will defer to the FDA’s interpretation
of its authority under the Act.
2. A person can bring a lawsuit to seek review of an administrative action at any time.
3. In reviewing a challenge an administrative agency’s decision, courts determine the relevant
4. Corporations are subject to double taxation because the profits of the corporation are taxed and
the income of the Officers is also taxed.
6. A limited partnership is made up of partners who all take part in the management of the
partnership.
4. The state of Wyoming passes a law that states that all persons must allow police to enter a
home to investigate a crime without a search warrant. Joe was minding his own business one day
and the police showed up and entered his home and found 5 grams of cocaine. Joe was arrested
and charged with possession of illegal drugs. In his criminal trial, Joe challenged the Wyoming
law claiming that the law violates his constitutional rights.
A. What test should the court use to determine if Joe’s substantive due process
Constitutional rights were violated?
B. Why is this test imposed?
C. What are the elements of this test?
D. Apply the test in this case and state the reasons why or why not Joe’s substantive due
process rights were violated.
E. If the matter above involved Joe’s First Amendment right of Free Speech, what test
would the court use? Identify the elements of the test.
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