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1. Which of the following statements is true?a. In the

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1. Which of the following statements is true? a. In the criminal law system, one private citizen may sue another and recover damages for the crime committed against him. b. Sometimes, the same behavior can violate both the civil law and the criminal law. c. Courts just decide cases, and have no role in creating or interpreting law. d. Understanding the law is solely the role of a business’ legal department. Managers and other employees do not need to develop a working knowledge of law and business, and how the law affects business.

2. Which of the following statements is true? I. The US Constitution contains many prohibitions against government regulation, and many of these are contained in the Bill of Rights, which consists of the first 10 Amendments to the Constitution. II. The US Constitution is the highest source of law in the United States. a. I only b. II only c. Both I and II d. Neither I nor II

3. All of the following statements are true, EXCEPT: a. Plaintiffs may properly file any lawsuit in either state or federal court, regardless of the issues presented or the amount in controversy. b. Alternative dispute resolution (ADR) mechanisms share many advantages over trials: they are generally quicker, cheaper, less complicated procedurally, and receive less publicity, for example. c. A voluntary alternative dispute mechanism sometimes used when negotiation seems to be failing is mediation. Here, the parties to the dispute choose a third party to assist them in settling it. d. After a case goes to trial, a party may appeal the case to an appellate court. Generally, appellate courts don’t hear witnesses or determine facts. Their job is to review the proceedings in the trial court, and correct any legal errors made by the trial judge.

4. Which of the following statements is true? a. Although criminal defendants are presumed innocent, since many of them are in fact guilty, in a criminal case the government doesn’t have to prove every element of the crime. It only needs to prove the defendant was guilty by a preponderance of the evidence, and doesn’t need to prove every element of the offense, beyond a reasonable doubt. b. Insanity cannot be a defense to criminal liability. c. Crimes are public wrongs—acts prohibited by the state or federal government. d. The government can legitimately convict someone of a crime when the act was not illegal at the time it was committed by later passing a law prohibiting the act, and applying it retroactively.

5. Which of the following statements is true? I. The Commerce Clause of the US Constitution gives the federal government the power to regulate commerce with foreign nations and among the several states. II. State governments have inherent powers, so they can enact laws that directly discriminate against interstate commerce, and they can enact laws that unduly burden interstate commerce, regardless of the Commerce Clause. a. I only b. II only c. Both I and II d. Neither I nor II

6. All of the following statements are true, EXCEPT: a. A “tort” is generally described as a civil legal wrong, other than a breach of contract. b. There are torts that stem from intentional conduct, and those that stem from unintentional conduct. c. All intentional torts require some sort of improper physical contact. d. Battery occurs when one person intentionally touches another in some way that is harmful or offensive, and where there was no valid consent to the touching.

7. Which of the following statements is true? a. For there to be a case of assault under tort law, there must be both the apprehension of physical contact, and the actual contact. b. There can be no assault without there also being a battery. c. Due to the qualified privilege of conducting one’s business affairs, there cannot be false imprisonment if a storeowner improperly detains a suspected shoplifter and prevents the suspect from leaving a back room in the store. d. Many states have passed statutes giving immunity to store owners, under certain circumstances, from civil actions for false imprisonment following their detention of suspected shoplifters.

8. The tort of fraud requires all of the following EXCEPT: a. Fact of the falsity and intent to deceive b. Breach of the duty of honesty in fact c. Justifiable reliance by the deceived party d. Injury by the innocent party

9. Which of the following statements about an individual is defamatory? a. A true statement that reveals details of the individual’s private life b. A harmless false statement c. A false statement that injures the individual’s reputation d. All of the above

10. The shared name for non-judicial resolution of disputes is: a. Arbitration b. Litigation c. Alternative dispute resolution d. Court ordered mediation

11. Intentional torts include all EXCEPT the following: a. Assault b. Battery c. False imprisonment d. Trademark infringement

12. An individual who is injured by a defective product may bring a lawsuit against the company who manufactured that product for: a. Assault and battery b. Misrepresentation c. Negligence d. Conversion

13. Which of the following statements is true? a. Under the law of most states, if a party bringing a negligence lawsuit is himself negligent in any respect, his cause of action is barred under the doctrine of comparative negligence. b. Under the law of most states, whichever party to an accident had the last clear chance to avoid the accident is solely legally responsible for damage that results from the accident. c. Under no circumstances can a party be found strictly liable to another for engaging in certain activities that result in injury or damage. d. Under the doctrine of comparative negligence, plaintiff’s recovery from the defendant is reduced by the percentage of negligence attributable to plaintiff.

14. Which of the following statements is true? I. A plaintiff injured by a product may bring an action based in negligence, strict liability or breach of warranty. II. One may bring an action in strict products liability only if there was a manufacturing defect causing the product to be unreasonably dangerous, but not if the product was defectively designed or was defective because of inadequate instructions or warnings. a. I only b. II only c. Both I and II d. Neither I nor II

15. All of the following statements are true, EXCEPT: a. The only product warranties recognized under the law are those provided by manufacturers to consumers in writing—termed “express warranties.” b. To satisfy the implied warranty of merchantability, a product must be fit for the ordinary purpose for which it would be used. c. The implied warranty of fitness for a particular purpose will arise if the seller knows the buyer is relying on the seller to select goods suitable for a particular purpose. d. Implied warranties can be disclaimed or limited, unless the disclaimer or limitation is determined to be unconscionable.

16. Mitigation of damages means: a. Injustice would result if the contract could not be enforced. b. Society carefully regulates contract to prevent freedom of contract. c. A legal duty exists for a non-breaching party to avoid or reduce damages. d. Damages are not available to a party because there is no consideration.

17. Which of the following statements is true? I. An offer is the manifestation of a willingness to enter into a bargain. II. To constitute an offer, a communication must be sufficiently definite so it demonstrates a willingness to enter into a binding contract. a. I only b. II only c. Both I and II d. Neither I nor II

18. All of the following statements are true, EXCEPT: a. Consideration is defined as a thing of value given in exchange for a promise. b. The offeror can generally invite acceptance of the offer in any means she specifies, as long as the means of acceptance aren’t illegal or in violation of public policy. c. Once someone makes an offer to enter into a contract, the offer must be held open forever and can never be revoked. d. Once rejected, an offer is no longer available to be accepted.

19. Which of the following statements is true? a. If one tries to accept an offer to enter into a contract by altering its terms, in many cases this will not constitute an acceptance, and will constitute a rejection of the offer. b. A party making an offer to enter into a contract generally can bind another party to a contract by requiring them to speak or else be bound under the contract. Remaining silent when in receipt of an offer generally constitutes acceptance of the offer. c. If he promises to do something for her, and she agrees, there’s a contract even if she has no obligation whatsoever under the contract. d. If I promise to perform a certain service for you in 10 days, and you promise to pay me $500 for this, but I later say I won’t perform this service unless you pay me $1,000, we have a valid, enforceable contract for me to perform the service for you for $1,000.

20. A contract wherein the parties possess severely unequal bargaining power is: a. Unconscionable b. Liquidated damages clause c. Exculpatory clause d. Special damages clause

21. All of the following statements are true, EXCEPT: a. Generally, courts will refuse to enforce contracts that involve illegal activities. b. Generally, courts will refuse to enforce contracts that are determined to be contrary to public policy. c. Generally, courts will refuse to set aside a contract due to the mistake of the parties to the contract. This is true even if both parties made the mistake, and it affected a basic assumption upon which the contract was made that has a material effect on the agreement. d. Generally, courts will set aside a contract if one of the parties was under duress at the time the contract was formed, or one party exercised undue influence on the other party.

22. Which of the following statements is true? a. All contracts must be in writing to be enforceable. b. Oral contracts for the transfer of an interest in land are always enforceable. c. Not all contracts require consideration to be valid. d. A contract formed by inference from the parties’ conduct is an implied in fact contract.

23. What is the standard of persuasion that the prosecution/plaintiff must meet in a cause of action? a. Convincing the jury b. Burden of proof c. Negotiation d. None of the above

24. All of the following statements are true, EXCEPT: a. Mediation is a private arrangement, where the parties voluntarily agree to participate before a mediator, who will assist them in resolving their case. b. Arbitration is always binding on the parties. c. Before proceeding to trial, the parties may proceed to a settlement conference. To be enforceable, the settlement should be placed on the record, or reduced to writing. d. In some jurisdictions, following mandatory arbitration, if one of the parties does not like the award, that party may file a request for trial de novo, rejecting the award, and demand a trial.

25. Which of the following statements is true? a. A corporation is the easiest of the various forms to create. The state where the corporation is formed issues the shares to the shareholders. b. A general partnership will have one member. c. In a sole proprietorship, all income is attributable to the owner, and the personal tax rate of the owner applies. d. In a Limited Liability Company (LLC), the members have personal liability for the debts of the LLC, whether or not the members personally guarantee the debts.

26. What type of agency is created when the principal creates the appearance of authority where an agency does not actually exist? a. Apparent agency b. Implied agency c. Express agency d. Agency by ratification

27. All of the following statements are true, EXCEPT: a. Agents have a duty of loyalty to their principals. b. Agents have a duty to obey the lawful and proper instructions of their principals that are within the scope of the agency agreement. c. Agents are solely responsible for the exercise of their obligations under the agency agreement, so they are under no duty to communicate information to the principal. d. Agents have a duty to exercise reasonable care and skill when conducting activities within the scope of their agency agreement.

28. If an employee may be terminated by his employer for any reason, then the employee is probably: a. An independent contractor b. An Implied agent c. An at-will employee d. Over 65 years old and unprotected by the ADEA

29. Which of the following statements is/are true? I. Principals have the duty to compensate their agents if the agency agreement between them provides for compensation. II. Once an agency agreement has ended, there are no cases where the agent can be entitled to any compensation. a. I only b. II only c. Both I and II d. Neither I nor II

30. All of the following statements are true, EXCEPT: a. Most employees do not have employment contracts. Most employees are considered at-will employees. b. There are many statutory, contractual, public policy and tort exceptions to the employment-at-will doctrine. c. The tort exception to the employment-at-will doctrine provides that an employee cannot sue an employer for intentional infliction of emotional distress, or defamation, unless the employer joins in the action. d. An employee who has been wrongfully discharged may sue her employer for damages, reinstatement, and back pay.

31. Which of the following statements is true? a. The only way an agent can acquire authority to act on behalf of a principal is under the doctrine of actual authority. b. Express authority is a form of apparent authority. c. To create authority on the part of an agent, the principal must communicate it expressly. If authority is not communicated expressly, it doesn’t exist. d. Authority of an agent can be express, implied or apparent.

32. Which of the following statements is true? I. It is an unlawful employment practice for an employer to fail or refuse to hire or to discharge any individual, or to discriminate against any employee because of such individual’s race, color, religion, sex or national origin. II. It is not an unlawful employment practice to segregate or classify applicants for employment, because of such individual’s color, religion, sex, or national origin. a. I only b. II only c. Both I and II d. Neither I nor II

 

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