Consideration can be either a promise to do a certain act or the performance of the act
itself.
a. True
b. False
Answer:
Which of the following is true regarding the growth of socially responsible mutual
funds?
a. Such funds have remained flat with little change in America, but they have grown
significantly in Europe.
b. Such funds have remained flat with little change in Europe, but they have grown
significantly in America.
c. Both America and Europe have seen a decline in interest in socially responsible
funds.
d. Both America and Europe have seen growth in socially responsible funds.
Answer:
Mutuality of obligation applies only to bilateral contracts.
a. True
b. False
Answer:
The European Union applies strict liability to services.
a. True
b. False
Answer:
The SEC has the statutory authority to approve or disapprove an offering on its merits.
a. True
b. False
Answer:
The __________ was most clearly expressed in the Underhill v. Hernandez case
referenced in the text, when the court stated that “the courts of one country will not sit
in judgment on the acts of the government of another, done within its own territory.”
a. Act-of-State Doctrine
b. Foreign Sovereign Immunities Act
c. Doctrine of Comity.
d. Doctrine of Forum Non Conveniens
Answer:
A __________ is an agreement in a proposed takeover that allows the board of directors
to negotiate with other bidders or to terminate a merger agreement.
a. termination clause
b. fiduciary out
c. revolving door
d. no talk provision
Answer:
Which of the following is true regarding environmental standards in the European
Union?
a. America is increasingly replacing the European Union as the leader in environmental
development.
b. European Union policy requires significant producer accountability, placing the
burden of environmental responsibility on the manufacturer.
c. American firms are not required to conform to European Union product rules in order
to sell their products in Europe.
d. The European Union applies the prevention principle by which uncertainty is a
reason to forego environmental protections.
Answer:
A patent holder must personally make use of the invention.
a. True
b. False
Answer:
The term actus reus is often used to describe a guilty:
a. thought.
b. mind.
c. deed.
d. intent
Answer:
Where may U.S. federal criminal offenses be found?
a. The United States Code
b. The Code of Federal Regulations
c. Both the United States Code and the Code of Federal Regulations
d. The United States Code, the Coe of Federal Regulations, and the Model Penal Code
Answer:
What is a no-shop agreement?
a. An agreement whereby shareholders agree to not replace directors for a certain period
of time.
b. An agreement whereby directors agree to not replace officers for a certain period of
time.
c. An agreement whereby a target company agrees with a potential purchaser not to
actively solicit other bidders but retains the right to negotiate with parties who submit
unsolicited bids to the target.
d. An agreement whereby shareholders agree to not replace directors or officers for a
certain period of time.
Answer:
Fact Pattern 11-1
Samantha develops a new type of comb that effectively removes loose dog hair and
eliminates problems with shedding. Samantha had never seen such a comb on the
market and was very surprised when she received notification that she was being sued
for patent infringement by the holder of a patent on a similar type of comb. Samantha
investigates and determines that the earlier patent was valid. Her friend Harry, a first
year law student told her that she could not be guilty of patent infringement because she
was not aware of the earlier patent, and that she should proceed to at least sell the rest
of her inventory.
Refer to Fact Pattern 11-1. Assuming the validity of the earlier patent, which of the
following is true regarding Samantha’s rights to legally continue selling the combs?
a. She should stop selling the combs immediately.
b. She may continue selling the combs until she sells the rest of her inventory, but she
must then stop.
c. Since she was not aware of the earlier patent when she started marketing her combs,
she can continue to sell the combs indefinitely without providing any royalties to the
holder of the initial patent.
d. Since she was not aware of the earlier patent when she started marketing her combs,
she can continue to sell the combs indefinitely, but she must pay reasonable royalties to
the holder of the initial patent.
Answer:
__________ each own an undivided fractional interest in a parcel of real property.
a. Tenants in common
b. Joint tenants
c. Tenants by the entirety
d. Community property tenants
Answer:
Procedural due process focuses on the fundamental rights protected by the Due Process
clauses.
a. True
b. False
Answer:
Which of the following is true regarding computer software is considered a product
subject to state product liability law?
a. Courts examining the issue have ruled that computer software is a product subject to
state product liability law.
b. Courts examining the issue have ruled that computer software is not a product subject
to state product liability law.
c. Courts examining the issue have reached varying results regarding whether computer
software is a product subject to state product liability law.
d. Courts examining the issue have found that computer software is a product subject to
state product liability law only if the software is marketed to children.
Answer:
Under the UCC doctrine of commercial impracticability as applied by the UCC, a
failure to perform is a breach even if performance is made impractical by an event
unforeseen by the contract.
a. True
b. False
Answer:
The __________ prohibits the introduction of evidence offered as proof of guilt in a
criminal trial that was illegally obtained in violation of the Fourth Amendment.
a. exclusionary rule
b. involuntary evidence bar
c. good faith exception
d. inevitable discovery exception
Answer:
Fact Pattern 6-2
Officials of the town of Sunnyville were concerned about the number of dogs running
loose. They set up a new administrative agency called “Dog Control.” The new agency
issued a regulation that all dogs must be on leash in public. Tony who had moved to
Sunnyville in the previous month did not own a dog and had no plans to get one. He,
however, thought the regulation was outrageous and decided to sue on the basis that it
was not validly enacted. Mona, another resident, was also concerned about the law. She
rents a home with a fence in the backyard that was in public view. She was concerned
that the regulation would be applied to her dogs while in the fenced area. She decided to
bring a preemptive strike and sue the city for revocation of the regulation before the city
could sue her. Both Tony and Mona rush to file suit before the city has a chance to take
any action to enforce the new rule.
Refer to Fact Pattern 6-2. Which of the following is the best defense the city has against
the lawsuit brought by Tony?
a. That Tony lacks standing to sue.
b. That courts have no authority to determine the validity of agency rules.
c. That Tony lacks permission of the agency to sue since authorization of the agency is
required prior to a lawsuit challenging the validity of an agency regulation.
d. That Tony has not lived in the jurisdiction for at least a year since residence in the
jurisdiction for at least a year is required in order to challenge the validity of a local
regulation.
Answer:
Which of the following is NOT true regarding methods of perfection?
a. A security interest in a deposit account may be perfected only by taking control of the
collateral.
b. A security interest in a letter-of-credit right may be perfected only by taking control
of the collateral.
c. A security interest in money may be perfected either through possession or through
filing a financing statement.
d. For a limited period, a purchase-money security interest in consumer goods is
automatically perfected.
Answer:
A purchase-money security interest in consumer goods is automatically perfected.
a. True
b. False
Answer:
Section 20(a) imposes __________ liability on every person who, directly or indirectly,
controls any person liable under the 1934 Act, unless the controlling person acted in
good faith and did not directly or indirectly induce the acts constituting the violation.
a. strict
b. individual
c. joint and several
d. criminal
Answer:
Milton Friedman argued that if a company decides to spend money for a social cause, it
is in essence spending someone else’s money for a general social interest.
a. True
b. False
Answer:
A __________ gives a person the right to negotiate the purchase of the property before
the seller enters negotiations with another party.
a. letter of agreement
b. letter of intent
c. right of first refusal
d. right of first negotiation
Answer:
Renee owns a small restaurant that sells hamburgers as one of its main attractions. She
puts up a sign that says “Best Burgers in the County”. Peter does an exhaustive
investigation of all restaurants in the county and asks his friends to do the same. They
all determine that actually a restaurant run by their friend Sam has the best burgers in
the county. Peter tells Renee that unless she takes down her sign, he is going to sue her
for breach of warranty and false advertising. Renee tells him that he has no cause of
action. Who is correct?
a. Peter is correct so long as he and his friends can convince the jurors in a lawsuit that
Sam has the best burgers.
b. Peter is correct only if he can establish that Renee was aware that Sam’s burgers
actually taste better before she put up the sign.
c. Peter is incorrect because Renee was engaged in ‘spoofing”.
d. Peter is incorrect because Renee was engaged in “puffing”.
Answer:
Which of the following is true regarding Japan’s discrimination protection?
a. The Japanese constitution does not address discrimination.
b. Japanese statutory law prohibits discrimination on the basis of race and national
origin.
c. Japanese statutory law prohibits sex discrimination.
d. Japanese law does not address employment discrimination in regard to hiring based
on age.
Answer:
Members of the U.S. Supreme Court are appointed by Congress with the advice and
consent of the President.
a. True
b. False
Answer:
Which of the following are the three main theories under the comparative justice
framework?
a. Retributive, Kantian, and Rawlsian
b. Compensatory, comparative, and retributive
c. Distributive, compensatory, and retributive
d. Utilitarianism, teleological, and compensatory
Answer:
In a __________ bankruptcy under Chapter 11, the debtor solicits votes on its plan of
reorganization and only files for Chapter 11 protection after it has obtained the required
votes in favor of the plan.
a. preapproved
b. preplanned
c. prepackaged
d. prenegotiated
Answer:
Which of the following is true regarding genetic testing by employers?
a. There is a federal law prohibiting all employers from firing employees based on
genetic information.
b. There is no federal law prohibiting employers from firing employees based on
genetic information, but many states have laws prohibiting the firing of employees
based on genetic information.
c. There is a federal law prohibiting employers of health care workers from firing
employees based on genetic information, but other than that, employers are not subject
to any limitations.
d. There is a federal law prohibiting employers of over a certain number of employees
from firing employees based on genetic information.
Answer: