1) Which of the following is a distinguishing feature of a common law legal system?
A. Requiring guilt be proven beyond a reasonable doubt
B. An appeal process
C. The making of law by the judges and the following of precedent
D. The sole source of law is a comprehensive civil code
2) Which of the following is true about litigating commercial disputes?
A. Nearly all states have specialized trial courts that hear commercial disputes.
B. A few states have established specialized trial courts for commercial disputes.
C. Businesses generally dislike the concept of specialized trial courts for commercial disputes because the large numbers of consumers who sue businesses in these courts have led the judges to become generally biased against businesses.
D. Commercial disputes, because of their specialized nature, are first heard at the appellate court level.
3) The concept of flexibility in the law is best illustrated by:
A. The use of precendent to decide similar cases in similar ways
B. The use of appointed judges rather than elected judges.
C. Setting a fixed amount of damages applicable to all wrongful death cases.
D. Passing statues that purposely do not address precisely how they would apply in all situations.
4) This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case.
A. Judicial referee
5) Which of the following is true regarding mediation?
A. A mediator often meets with both parties at the same time.
B. A mediator does not make a decision or award.
C. If a settlement agreement is not reached in mediation, then the parties hire a new mediator.
D. A settlement agreement is never reached with a mediator.
6) Which of the following is true with regards XXXXX XXXXX?
A. More formal evidentiary rules are applied to arbitration hearings.
B. The arbitrator’s decisions are never binding.
C. Many states have adopted the General Arbitration Doctrine in an effort to promote arbitration of disputes at the state level.
D. Arbitrators enter awards after reaching a decision.
7) What is the result of the “effects on interstate commerce” test?
A. The federal government can regulate all interstate commerce that actually crosses state lines.
B. Commercial speech protections apply only to speech that has an effect on interstate commerce.
C. Prior to enacting laws, states were required to indentify any effects that the law might have on interstate commerce.
D. The federal government can regulate a business activity that takes place within a single state if the activity has an effect on interstate commerce even though the regulated activity itself does not involve interstate commerce.
8) Under what circumstances can a state impose a tax on goods imported from other nations?
A. If the tax does not conflict with any valid federal law
B. If the tax also applied equally to the same type(s) of goods produced domestically
C. Under no circumstances
D. If the amount of the tax is reasonable
9) What are sellers responsible to provide for regarding the assembly of products they sell?
B. Adequate instructions for safe assembly
C. Adequate instructions for safe assembly and use of the product.
D. Adequate instructions for use of the product
10) The tort of palming off involves:
A. Knowingly selling goods that are defective.
B. Representing one’s own goods to be those of a competitor
C. Failing to credit another for that other person’s legal accomplishments
D. Making false statements about the goods of another
11) If a plaintiff voluntarily enters into or participates into a risk activity that results in injury, what is the most likely defense that he or she may use to a defendant’s claim that the plaintiff assumed the risk?
A. Contributory negligence
B. Defendant was negligent per se
C. Comparative negligence
D. Defendant assumed the risk under the “danger invites rescue” doctrine
12) Which of the following is true about comparative negligence and contributory negligence?
A. They are two names for the same defense.
B. In order to avoid liability for an unintentional tort, the defendant must prove the presence of both defenses.
C. Comparative negligence allows the plaintiff to make a partial recovery whereas contributory negligence does not.
D. Comparative negligence is used with intentional torts and contributory negligence is used with unintentional torts.
13) Based on the law of product liability, which of the following is correct?
A. A manufacturer should design its products to take into account feasible misuse.
B. A manufacturer should design its products to take into account all possible misuse.
C. A manufacturer need only take into account the intended use of its products.
D. A manufacturer should design its products to take into account all possible misuse by the initial purchaser, but need not worry about misuse by other users.
14) Paul purchased a deluxe motorhome from Wide Open Spaces Motorhomes. In a product liability suit against Wide Open Spaces Motorhome Corporation, Paul must show which of the following in order to recover:
A. Wide Open Spaces was the manufacturer of the motor home and not just a dealer.
B. The negligence of Wide Open Spaces led to Paul’s injury
C. Paul was not misusing the motorhome when the injury occurred.
D. A defect made the motorhome unreasonably dangerous, leading to an injury.
15) Sean has a 6 year old car which he bought 2 years ago from its original owner. Eight months ago he received a recall notice about a safety problem with the brakes. He never responded to the notice. Yesterday Sean was driving when the brakes failed and caused him to strike and injure a pedestrian. Which of the following is true in lawsuits against the car’s manufacturer?
A. The pedestrian cannot recover due to the fact that the pedestrian was not using the car.
B. Sean can recover despite having received the recall notice.
C. Neither party can recover if Sean’s was one of only a few of these cars that actually had a brake defect.
D. The pedestrian cannot recover because the correction of the defect will apply even though Sean did not take the car in for repairs.
16) The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring:
A. That certain activities are classified as per se violations.
B. That failing companies are rescued through mergers whenever possible.
C. That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms.
D. That mergers be allowed if United States competitiveness in world markets is improved.
17) Mary applied for a permit with a federal administrative agency to operate a business within the boundaries of a popular national forest. The agency grants a limited number of these permits that allow operation of the business during the busy tourist season. The agency has turned down Mary’s application even though she received a permit in the prior year, paid the related fees on time, and violated none of the permit’s conditions. The agency granted a permit to a different applicant who had never run this type of business previously. If Mary appeals the decision to a court, what standard of review will it most likely use?
A. The arbitrary and capricious abuse of process test
B. The substantial evidence test
C. The unfair results test
D. The unwarranted by the facts test
18) Which of the following statutes allows a party to recover attorney’s fees from an agency if that agency has engaged in outrageous conduct in connection with an agency:
A. The Freedom of Information Act
B. The Government Compensation Act
C. The Equal Access to Justice Act
D. The Administrative Procedure Act
19) What is the most basic or common remedy available for breach of a contract?
A. Compensatory damages
B. Nominal damages
C. Consequential damages
D. Punitive damages
20) George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer, MNO Inc. recover as damages?
A. Nothing, because courts do not order anyone to perform a job against his or her will.
B. The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.
C. All amounts already paid to the employee under the contract.
D. Only amounts paid to the employee for which the employee has not yet done the work.
21) The circumstances where an offer cannot be withdrawn under promissory estoppel is also known as:
A. Irrevocable offers
B. The strict counteroffer rule
C. The doctrine of detrimental reliance
D. The doctrine of renewable offers
22) If a judge rules that a party lost its case because of the Statute of Frauds, the judge has essentially stated which of the following?
A. The losing party purposely deceived the other party about a material fact.
B. The losing party was found by the court to have lied, and therefore will lose the case.
C. The losing party will not be allowed to introduce evidence to contradict a written agreement.
D. The losing party cannot enforce an oral contract that should have been in writing.
23) The equitable doctrine that permits enforcement of oral contracts that should have been in writing is known as:
A. The equal dignity rule
B. Promissory estoppel
C. Part performance
D. A collateral contract
24) In a guaranty arragement, the guarantor:
A. Promises to pay the debt of another in any circumstances.
B. Promises to assume responsibility for the quality of goods.
C. Promises to pay the debt of another if that person does not pay.
D. Promises to pay the debt of another contingent up the happening of some external event.
25) Which of the following best describes how e-mail contracts are viewed under the law?
A. E-mail contracts for goods can be valid, but not e-mail contracts for services.
B. E-mail contracts are generally treated similarly to contracts negotiated by other means.
C. E-mail contracts are valid only for contracts less than $500
D. E-mail contracts are valid so long as both parties sign a written copy printed out from an e-mail.
26) Under the Anti-Cybersquatting Consumer Protection Act, which of the following is true?
A. Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity’s name.
B. Domain names are XXXXX XXXXX after ensuring that they do not infringe on a valid existing trademark.
C. Penalties are imposed for obtaining any domain name that infringes on a valid trademark.
D. A plaintiff must show that the defendant acted in bad faith in order to recover.
27) Under the Uniform Computer Information Transactions Act, tender of performance is:
A. A party’s unequivocal indication of intent to perform.
B. The actual completion of a party’s obligations under the contract.
C. A party’s agreement to perform
D. The offer to complete the performance of contractual duties made by a party who is willing and able to perform.
34) What is the most basic or common remedy available for breach of a contract?
A. Nominal damages
B. Consequential damages
C. Compensatory damages
D. Punitive damages
35) George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer, MNO Inc. recover as damages?
A. The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.
B. All amounts already paid to the employee under the contract.
C. Nothing, because courts do not order anyone to perform a job against his or her will.
D. Only amounts paid to the employee for which the employee has not yet done the work.
36) A bailment is:
A. Characterized by a splitting of title into legal and beneficial components
B. The rightful possession of goods by someone other than the owner
C. Usually the preliminary step to a permanent transfer of goods
D. Required to be in writing in order to be effective
37) What was accomplished by the Visual Artists Rights Act?
A. Artists retained certain rights to limit the reproduction and modification of their works even if the work or copyright is old.
B. The fair use doctrine was eliminated with respect to visual works of art.
C. Copyright protection was extended to visual creative works.
D. Copyright protection for visual artwork no longer needed a copyright notice.
38) A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as;
A. The bar to patents doctrine
B. The public use doctrine
C. The public service doctrine
D. The fair use doctrine
39) Shirley invented a new product in March 2008. She publicized the invention and shared the product with the public to stimulate demand. She also needed time to finance the cost to obtain the patent for the product. In May 2009 she finally was able to apply for the patent. Can she still obtain a legal patent, and if so, for how long?
A. Yes, she can obtain a patent for 20 years from the date of the application.
B. No, because she waited for over a year after the product was used by the public before attempting the patent.
C. Yes, because she publicized the invention.
D. Yes, she can obtain a patent for 20 years from the date of the invention.
40) Which for of real property ownership includes the greatest degree of ownership?
A. Absolute life estate
B. Fee simple limitless
C. Fee simple defeasible
D. Fee simple absolute
41) How does an easement appurtenant differ from an easement in gross?
A. An easement appurtenant must be recorded.
B. An easement appurtenant is in writing.
C. An easement appurtenant is permanent
D. The dominant estate of an easement appurtenant is adjacent to the servient estate.
42) Which of the following would prevent someone from acquiring land by adverse possession?
A. The person was the only person who lived on the land in question.
B. The person never had to fight the original owner in order to remain on the land.
C. The person lived on the land secretly so that the original owner would not find out he or she was there.
D. The person lived on the land without the original owner’s permission.
43) If an LLC fails to follow formalities such as keeping minutes of meetings, then which of the following is true?
A. Only the parties responsible for the failure will lose limited liability.
B. Only the managers of a manager-managed LLC will lose limited liability.
C. All members will lose their limited liability.
D. This failure will not result in imposing personal liability on any member.
44) If a corporation is properly incorporated in one state and wants to do business in second state, the corporation:
A. May be required to obtain a certificate of authority from the second state.
B. Must incorporate in the second state.
C. Must do nothing because being incorporated in one state entitles the corporation to do business in all states.
D. Register with the Interstate Corporation Commission.
45) What makes a publicly held corporation different from a public corporation?
A. They are two terms that have the same meaning.
B. A publicly held corporation has many shareholders rather than being a corporation owned by a governmental entity.
C. A publicly held corporation is entitled to limited liability, but the public corporation is not.
D. A publicly held corporation must have a charitable purpose, but a public corporation need not have a charitable purpose.
46) Title IX of the Sarbanes-Oxley Act contains penalties for white collar crimes. What is the penality if someone certifies “any statements as set forth in subsections (a) and (b) of this section knowing that the periodic report accompanying the statement does not comport…”
A. Not more than $5,000,000 or imprisoned not more than 20 years, or both.
B. Not more than $1,000,000 or imprisoned not more than 10 years, or both.
C. Not more than $500,000 or imprisoned no more than 6 months, or both.
D. Not more than $2,000,000 or imprisoned not more than 3 years, or both.
47) According to Sarbanes-Oxley, this person or people should sign the Federal income tax return of a corporation:
A. Head of the accounting firm that prepares the corporation’s tax returns.
B. Chief Executive Officer
C. Board of Directors
D. Chief Executive Officer and Chief Financial Officer
48) This is prohibited under the Sarbanes-Oxley Act:
A. Directors and executives attending board meetings on a regular basis.
B. High salaries for corporate executives.
C. Using an independent accounting firm for audit purposes.
D. Public companies making personal loans to their directors and executives.
49) Self-dealing by a director of a corporaton can best be described as:
A. A duty of the director to not overly rely on others.
B. A breach of a director’s duty of loyalty.
C. A duty of the director to use her own expertise whenever possible.
D. A breach of a director’s duty of care.
50) Officers of a corporation typically have which types of agency authority?
A. Express, implied, and apparent
B. Implied and apparent only
C. Express only
D. Express and apparent only
51) In what ways may officers and directors protect themselves from liability for actions taken as an officer or director?
A. By having the corporation indemnify the officers and directors.
B. By having the corporation purchase liability insurance or indemnify the officers and directors, but the corporation cannot do both.
C. By having the corporation purchase liability insurance to cover such losses.
D. By having the corporation purchase liability insurance or indemnify the officers and directors, or do both.