Chuck is renting an apartment, and he has a problem. All night he hears the scurrying
around of rodents, and each morning he finds cereal boxes and other cardboard food
containers gnawed. He has also noticed droppings all over the apartment, including in
the children’s nursery. He has complained to the landlord, who simply replies, “Hey, this
is center cityeverybody has a rat problem.” The landlord is breaching Chuck’s right to:
A. possession.
B. quiet enjoyment.
C. continuous control.
D. habitability.
The preamble of the Constitution:
A. sets out the structure of the government.
B. lays out the procedures by which the government will operate.
C. establishes boundaries of jurisdiction.
D. states the broad objectives of the Constitution.
In Cipollone v. Liggett Group Inc., et al., Cipollone sued based on state laws regulating
advertising and promotional activities in the tobacco industry.
A. Cipollone won because the state laws were specific and were violated by the
defendant.
B. Cipollone won because although there were federal laws regulating promotion and
advertising activities regarding tobacco products, they specifically authorized
supplemental state laws negating preemption.
C. Cipollone lost because the federal and state laws conflicted, negating both, so the
court had no basis to make its decision.
D. Cipollone lost because he relied on state law, which was preempted by federal law.
What is the name of the legislation enacted in response to injuries and deaths from
products being sold to consumers?
A. Federal Product Act
B. Food, Drug and Cosmetic Act
C. Product Liability and Safety Reform Act
D. Consumer Product Safety Act
Which of the following is an equity instrument?
A. debenture
B. bond
C. common stock
D. promissory note
The Securities Act of 1934 focuses on the:
A. primary market.
B. secondary market.
C. preferred market.
D. common market.
Which of the following does not result in a decision rendered by the hearing officer?
A. arbitration
B. mediation
C. med-arb
D. using expert evaluators
The adjudicative phase of the criminal justice process includes each of the following
components except:
A. setting bail.
B. entering a plea by the defendant.
C. filing the indictment or information.
D. sentencing.
In general, contracts for services are governed by:
A. state common law.
B. state statutory law.
C. the Uniform Commercial Code.
D. federal law.
To be valid, offers must meet all of the following criteria except:
A. clear.
B. reasonable.
C. serious.
D. communicated.
Which of the following is an example of a tying agreement?
A. As part of purchasing a new computer, a buyer must also purchase a new monitor.
B. When purchasing a new digital music player, a buyer is given the option of buying
songs.
C. When purchasing a used car, a buyer is offered a discount on new tires.
D. When purchasing a couch, the buyer is given free throw pillows.
Mike raped Kathy in the parking lot of Tom’s Pub. The attorney general/district
attorney’s office prosecuted Mike on rape charges. Subsequently, Kathy filed a lawsuit
against Mike for money damages. Classify each legal action.
A. The attorney general/district attorney’s case was a criminal case; Jane’s lawsuit was
a civil case.
B. The attorney general/district attorney’s case was a civil case; Jane’s lawsuit was a
criminal case.
C. Both cases are criminal.
D. Both cases are civil.
A study published in the Harvard Business Review in January 2000 found that
intellectual property represents approximately ________ of an average firm’s value.
A. 40 percent
B. 50 percent
C. 60 percent
D. 70 percent
Which of the following literary works, although fictional, has been extremely
influential in affecting American statutory law and often been cited in legislative
histories regarding employment law?
A. Paradise Lost by John Milton
B. The Grapes of Wrath by John Steinbeck
C. What is to be Done? Burning Questions of Our Movement by Vladimir Lenin
D. The Jungle by Upton Sinclair
UCC rules on acceptance of goods and payment in regard to installment contracts
mandate that:
A. acceptance is not made until all shipments are received and then payment is made.
B. acceptance is made separately for each shipment but payment is not due until the
final shipment is received.
C. payment must be made in advance and acceptance occurs after all shipments are
received.
D. acceptance is made separately for each shipment and payment for each shipment is
due on delivery of that shipment.
In SEC v. Switzer et al., Switzer overheard a conversation while in a public place and,
based on the information heard during the conversation, formed a group to purchase
stock in a corporation that subsequently showed a substantial profit. When the SEC
brought charges of insider trading against Switzer, the court said:
A. since Switzer was not a direct participant in the conversation, he could not be
prosecuted as a tippee.
B. Switzer was not a tippee because he did not know that the information overheard
was material and nonpublic.
C. the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his
company because he spoke about the company in a public place.
D. the insider that Switzer overheard was guilty of a breach of his fiduciary duty to his
company and was guilty of insider trading because he was telling his wife material and
nonpublic information.
Each state sets water quality standards, independent of the EPA.
Which of the following inclusions in an employment advertisement would likely not be
considered discriminatory?
A. young persons wanted
B. seeking recent college graduates
C. high school graduation required
D. stewardesses needed
New York City has passed a law banning smoking of cigarettes and cigars in public bars
and restaurants. This law would be defined as:
A. an ordinance.
B. a regulation.
C. a statute.
D. a common law.
What is the role of the International Court of Justice?
A. settle legal disputes submitted to it by member states
B. set rules and standards for international arbitrations
C. hear cases on war crimes and crimes against humanity
D. interpret legislation drafted by the United Nations
Personal financial contributions may be required by previous agreement with regard to:
A. LLCs.
B. LLPs.
C. business trusts.
D. franchisors.
Philip believes that moral values inherent in humankind should form the basis of law
and that these principles are a higher authority than human-made law. Philip is a
proponent of:
A. natural law.
B. legal realism.
C. legal positivism.
D. social law.
What step comes directly prior to public comment in the rulemaking process?
A. judicial challenges
B. proposed rule publication
C. public comment
D. enabling statute
Two merchants agree to a sale of goods to be shipped by boat from Maine to Florida.
No other shipping terms are indicated. If the boat sinks during the trip and all the goods
are destroyed:
A. the buyer may sue the seller, but not the carrier, for its loss.
B. the seller may sue the carrier because the seller maintained risk of loss and the right
to sue for losses.
C. the buyer may sue both the seller and the carrier for its loss.
D. the buyer may sue the carrier, but not the seller, for its loss.
Kate is an underwriter who acted as a third party conducting a sale of securities
between Fox Co. and an investor. Subsequent to the sale it is discovered that the
disclosures made by Fox Co. were fraudulent. The investor has sued both Fox Co. and
Kate. What is Kate’s best defense to avoid liability?
A. proving that she actually did not profit from the transaction
B. proving that the fraud was so sophisticated that even if she had investigated the
preregistration and registration documentation, she probably wouldn’t have discovered
the fraud anyway
C. proving that the issuing company had a long history of truthful disclosures and had
never been suspected or investigated for fraud, so she was able to rely on their
representations
D. proving that she exercised due diligence in examining the preregistration and
registration documentation and did not discover the fraud
The highest and most comprehensive duty owed by a landowner to a person on the
owner’s property is owed to:
A. an invitee.
B. a licensee.
C. an accidental trespasser.
D. an intentional trespasser.
Which of the following is the true statement?
A. Ratification applies to previously unauthorized acts.
B. Actual authority must be expressly created and cannot be based on custom or past
dealings.
C. Apparent authority is based on what the principal communicates to the agent and not
to the third party.
D. Actual authority must always be expressed in writing.
Tom, a city policeman, is featured as Mr. August in the police charity calendar wearing
only a pair of Speedos and a smile. Chuck is a fellow cop and a homosexual. Every
opportunity that he has, Chuck brushes up against Tom and asks if Tom has ever been
with a man. Chuck buys Tom gifts and leaves them by Tom’s locker. Tom throws the
gifts away immediately. Tom has asked Chuck to stop, but Chuck just laughs and says,
“I’ll get you someday.” Tom is and has always been a heterosexual. Tom has complained
to his superiors pursuant to department policy, but they claim it’s just horseplay and not
serious. If Tom files a complaint with the EEOC:
A. he has a valid case based on hostile work environment harassment.
B. he has a valid case based on quid pro quo harassment.
C. he does not have a case because same-gender harassment does not give rise to a
valid cause of action.
D. he does not have a case because Chuck’s actions are not severe enough to constitute
sexual harassment.
The purchase and sale of issued securities between investors is called the:
A. primary market.
B. secondary market.
C. preferred market.
D. common market.
Steve has opened a sole proprietorship bicycle shop. The business shows a net income
of $100,000. Steve took a salary of $40,000. The remaining money is left in the bank.
A. At tax time, the business pays taxes on $100,000, and Steve pays taxes on $40,000.
B. At tax time, the business pays taxes on $140,000.
C. At tax time, Steve pays taxes on $140,000.
D. At tax time, the business pays taxes on $70,000, and Steve pays taxes on $70,000.
Which of the following is not a vertical restraint?
A. market allocation
B. tying agreements
C. exclusive selling, territorial, and dealing agreements
D. price-fixing
Although many LLCs are treated as pass-through entities, an LLC’s members may elect
to be taxed as a:
A. sole proprietorship.
B. general partnership.
C. limited liability partnership.
D. corporation.
When examining and enforcing conditions precedent and conditions subsequent,
courts:
A. give stricter enforcement to conditions precedent and find conditions subsequent
rarely enforceable.
B. give stricter enforcement to conditions subsequent and find conditions precedent
rarely enforceable.
C. maintain that procedurally, with respect to who bears the burden of proof, conditions
subsequent and conditions precedent differ.
D. hold that, under modern law, both conditions subsequent and conditions precedent
should only rarely be enforced.
Tom has attacked Kathy in the parking lot of a bar. He knocks her to the ground,
breaking her arm as he steals her wallet. Kathy works as a data input specialist at a bank
and misses eight weeks of work due to her injury. Discuss how criminal law and civil
law relate to this situation and possible remedies.
Give an example of a boycott that would not be a per se horizontal restraint. Explain
why it is not a per se horizontal restraint.
A plea by a defendant in which the defendant does not admit guilt but agrees to
penalties imposed as if guilty is called a plea of no contest or _____.
What are the roles of the International Court of Justice?
How is it possible for two different parties to have simultaneous rights to use the same
trademark?
An exception to zoning ordinances is called a ______.
In an LLP, generally all partners have liability protection for _______ and liabilities of
the partnership.
________ is an agreement between competitors to divide markets or geographic
regions.
Explain the three-prong test the IRS uses to determine an agent’s status.
How do member-managed and manager-managed LLC management structures differ?
A disability, as defined in the Americans with Disabilities Act, is an impairment that
significantly limits a person’s ability to participate in a ________ activity.
Congratulations! You have just been named as a judge in your state’s general trial court.
Your first case involves a complicated environmental statute. What methods might you
use to interpret and apply the statute to your case?
A court order to refrain from performing a particular act is known as _______.
The statute of frauds provides that certain sales contracts be evidenced by a written
agreement. What type of sales contract does this requirement apply to, and what
constitutes a writing sufficient to evidence an enforceable contract?
In Advanced Technology Services Inc., v. KM Docs, LLC, company employees signed
an employment agreement that contained a noncompetition covenant, a nonsolicitation
agreement, and a nondisclosure agreement. It also contained a severability clause. The
employees, who resigned and started their own competing company, claimed that the
noncompetition agreement was too broad and the entire agreement was unenforceable.
What did the court determine about the severability of the contract?
Delta Tau Chi is a college fraternity and is recruiting new members. Although hazing is
banned, the members nevertheless take the pledges to the local zoo, where they hand
them bows and ribbons and order them to break into the monkey house exhibit and
decorate the inhabitants. The monkey house has a distinct sign stating, “DANGEROUS
ANIMALS, DO NOT APPROACH OR ENTER THE PREMISES!” The pledges go in
anyway, and two of the pledges are severely injured and sue the zoo for their injuries.
Discuss the liability of the zoo and the pledges.
Describe the common terms of a franchise agreement that govern the relationship
between franchisee and franchisor.
