The American Arbitration Association arbitration rules permit the parties to choose an
arbitrator as long as the AAA receives notification of their choice.
Federal laws concerning discrimination expressly preempt state laws and prohibit states
from imposing additional obligations and legal responsibilities on employers not
covered under the federal statutes.
Most states do not have laws that require state and local governments to consider the
environmental impacts of their decisions when taking actions that might reasonably
affect the environment.
Patent applicants often rely on trade secret laws to protect their inventions while patent
applications are in progress.
Punitive damages are intended to punish wrongdoers in civil actions.
When an assignment is made, the assignee has the right to reform the contract and
change the obligor’s rights and duties as the assignee wishes.
A motion for a summary judgment may be filed by either the plaintiff or the defendant.
A person cannot be guilty of negligence if he or she has no duty owed to the plaintiff.
If an agent is acting within the scope of his or her employment and commits an
intentional tort harming a third party, the principal may be liable for the injuries
sustained.
Employees making complaints to the Occupational Safety and Health Administration
are protected under the Occupational Safety and Health Act’s whistle-blowing
provisions.
The term option contract refers to the choices that one has when entering into a
contract.
The right of a seller to cure any problems with the goods ends when the time for
performance has ended under CISG.
In Chapter 11, creditors file a reorganization plan, which articulates a specific strategy
and financial plan for emerging from financial distress.
Commercial speech has always been afforded protection under the First Amendment.
Legal positivists believe that agreed-upon laws should be uniformly and strictly
enforced and may be changed only by the government.
Civil law systems reject and prohibit the use of precedent, relying solely on strict
interpretations of statutes.
States tend to amend their constitutions less frequently than is the case with the U.S.
Constitution.
Circumstantial evidence is not enough to show a meeting of the minds.
A unilateral contract is formed by an exchange of promises.
“The buyer agrees to take the table with all faults and as is” disclaims warranties.
The World Trade Organization (WTO) has certain authority over disputes on trade
barriers.
Sally is walking her 6-month-old baby in a stroller. Mark, a stranger, looks into the
stroller and says, “Wow, that’s one ugly baby.” Sally is furious and sues Mark for
intentional infliction of emotional distress. She will likely lose.
Aggressive litigation generally results in a high monetary cost for a corporation.
The Equal Pay Act was written to prohibit racial discrimination in pay.
The rule of omission applies when someone creates something exactly like an item
already patented but deletes a feature included in the original product. The new product
will not be considered a patent infringement if the deleted feature was a significant
element of the original.
If Nevada sues the federal government over the constitutionality of a new federal
statute, because the United States is a party, the suit may be brought either in the state’s
highest court or in federal court.
For the courts to allow a lawsuit to proceed, both the plaintiff and the defendant must be
able to prove standing or the suit will be dismissed.
Wayne Lewis wants to start a sole proprietorship named Lewis Plumbing Services.
Because it will be a sole proprietorship, Wayne has no filing requirements other than
obtaining the appropriate business license from the local and state government where
the business will be located.
Corporations, as business entities, cannot be charged with a crime; only the individuals
who make up the company’s officers and board can be charged.
The Superfund requires that all states have emergency procedures in place in the event
of a chemical spill.
Existing sources of pollution are required to install the best available technology to
obtain a permit to release substances into a water source.
Grimshaw v. Ford Motor Company is often cited as a failing of the management’s hand
approach to corporate social responsibility.
Intent to discriminate must be proved for a disparate case to be successful.
Under most circumstances, acceptance cannot be imposed or inferred from an offeree’s
silence after receiving an offer.
In recent years, the Supreme Court of the United States has generally accepted only
about 10 percent of the petitions for a writ of certiorari made to the Court each year.
Regulations created and enforced by federal regulatory agencies are examples of:
A. administrative laws.
B. antitrust laws.
C. labor laws.
D. securities laws.
To which of the following would a dram shop law apply?
A. Moe’s Barber Shop
B. Larry’s House of Watches
C. Curley’s Tavern
D. Shemp’s House of Pancakes
Brandi orally tells landscaper Mike, “If you trim my hedges, I’ll pay you $50.” Mike
trims her hedges. Which of the following is correct?
A. This is a unilateral contract.
B. This is a bilateral contract.
C. This is a formal contract.
D. This is a quasi-contract.
A commercial airliner flying across the Atlantic Ocean suddenly disappears from radar.
There is no inclement weather, nor were there any other planes in the area. Nothing at
all showed on radar at the time the plane disappeared. A day later, a fishing boat
reported debris from an airplane, and investigators determined that the plane crashed
into the ocean. There were no survivors. The plane itself is now 2 miles under water,
and only small floating objects remain. The “black box” that might provide evidence is
in the fuselage 2 miles down and is not recoverable. Further investigation shows that
the plane had all proper maintenance, with no problems or concerns, and that the flight
crew was experienced, sober, and rested prior to the flight. Karl’s wife was a passenger
on the plane, and he wants to sue. How can he successfully bring a lawsuit for
negligence?
What must Congress do first to establish an administrative agency?
A. do nothing, as establishing agencies is an executive power
B. obtain judicial approval for the creation
C. enact an enabling statute
D. research whether a new agency is needed
A consulting contract between a management consulting firm and a software company
is governed by what source of law?
A. common law
B. statutory law
C. the Uniform Commercial Code
D. law at equity
The Sunshine Act requires that agencies announce their meetings at least ______ in
advance.
A. 3 days
B. 7 days
C. 14 days
D. 30 days
In 2006, Martin purchased a home in a residential development, and in 2010 he sold it
in fee simple to Richard. A week after Richard moved in, the local cable company came
to his door to inform him that it would start digging up his yard to install underground
cable for the neighborhood. When Richard objected, he was told that the company had a
right to do it and he should check with his lawyer. A call to the lawyer confirmed the
right of the cable company to enter his land and dig. Which of the following would
have given the cable company this right?
A. an easement by grant
B. an easement by prescription
C. an easement by necessity
D. an easement by implication
If one part of the contract becomes illegal or impossible to perform, the remaining
contract components remain in effect if:
A. the contract is an express contract.
B. the contract is an entire contract.
C. the contract contains a severability clause.
D. the contract is an implied contract.
The ‘safe-harbor” exemption from SEC regulations involves:
A. nonpublic offers to a limited number of sophisticated investors who already have
business relationships with the issuer.
B. nonpublic offers to a limited number of sophisticated investors who privately
negotiate their securities purchases.
C. offerings with specified dollar limitations and/or limitations on the number of
accredited investors.
D. offerings with specified dollar limitations and/or limitations on the number of
nonaccredited investors.
Which act does the Robinson-Patman Act amend?
A. McCarthy Act
B. Hart-Scott-Rodino Act
C. Sherman Act
D. Clayton Act
A contract in which one party may disaffirm or enforce the contract is:
A. a valid contract.
B. a void contract.
C. a voidable contract.
D. an unenforceable contract.
KAM Corp. has separate codes of ethics and conduct. Each of the following would
likely be included in its code of ethics except:
A. expectations of privacy and dignity to be afforded others.
B. expectations of an individual’s community service.
C. avoidance of conflicts of interest.
D. requirements of procedural due process and impartiality.
With regard to the 2008 discovery of Bernard Madoff’s Ponzi scheme, which of the
following is not true?
A. He preserved an element of secrecy by claiming his investment strategy to be a
trade secret.
B. The scheme lasted over 20 years and cost his clients billions of dollars.
C. Obtaining investment funds from charities and nonprofits was an essential part of
his strategy.
D. To keep multiple authorities and governments from examining his operation, he
restricted the scheme to U.S. investors and U.S. business entities only.
Which of the following is not a component in the definition of a security?
A. an investment
B. an expectation of profit
C. tangible collateral to secure the instrument
D. efforts of a third party to create expected profit
Mike worked for Frank’s Pizza as a driver and was an agent. His duties consisted of
making deliveries along a designated route. One day Mike decided to see his girlfriend,
Jackie, who lived 50 miles off his pizza route. While driving to his girlfriend’s, Mike
injured a pedestrian, Chuck. The accident was caused by Mike’s negligent driving.
Chuck is now suing both Mike and Frank’s for personal injuries. Under the
circumstances:
A. Frank’s is liable under the doctrine of respondeat superior.
B. Frank’s is never liable for the negligent torts of its agents.
C. Chuck can recover damages from both Frank’s and Mike.
D. Frank’s is not liable because Mike was on a frolic of his own.
Which of the following does not require the filing of a form with a government agency
to come into existence?
A. a general partnership
B. a limited liability company
C. a corporation
D. a limited partnership
Cynthia hates writing term papers and reports, so when she receives an assignment to
write a paper for her law class, she calls her friend Stephanie and agrees to pay
Stephanie to write the paper for her. Stephanie, instead of writing the paper, copies a
paper from a small, remote law journal that publishes faculty-written papers from
throughout the world online. When the plagiarism is discovered, an infringement claim
is brought. Cynthia is guilty of:
A. nothing because Stephanie, not Cynthia, infringed on the author’s/publisher’s
copyright.
B. vicarious infringement.
C. indirect, or contributory, infringement.
D. nothing because once a work is published online, the fair use doctrine permits
unlimited use of the work without attribution.
Helen’s cat Fluffy has run away, and she places reward posters throughout her
neighborhood. Mark sees one of the reward posters and spends the next six hours
searching for Fluffy. While Mark is searching the neighborhood, Fluffy gets hungry and
comes home.
A. This is a bilateral contract, and Mark is entitled to be compensated for his efforts.
B. This is a bilateral contract, and Mark is entitled to nothing because he didn’t
perform.
C. This is a unilateral contract, and Mark is entitled to be compensated for his efforts.
D. This is a unilateral contract, and Mark is entitled to nothing because he didn’t
perform.
A forum selection clause:
A. is written into a contract when the contract is entered into.
B. is created by the contracting parties after the dispute arises and they analyze the
fairest location for the trial.
C. is created by the court after determining where jurisdiction is the strongest.
D. is created by the parties after the dispute arises based on the type of dispute and
which state’s court has the appropriate precedent and statutory law to hear the case.
Jack is a truck driver employee of Ace Trucking. While delivering his cargo, he sees
that the truck assigned to him is low on gas. Jack pulls into a convenient station and
puts $50 worth of gas into the truck, which will allow him to complete his assignment
and return to the depot.
A. Ace is not required to reimburse Jack unless, prior to starting the delivery, he had
been given the express actual authority to purchase gas on behalf of the principal.
B. Ace is not required to reimburse Jack unless he phoned in and asked for and was
granted permission to purchase gas.
C. Ace will be required to reimburse Jack for the cost of the gas based on implied
authority stemming from his express authority to drive the truck.
D. Ace will be required to reimburse Jack because apparent authority gives him the
right to buy gas when it is apparent that it is needed.
Under the Administrative Procedures Act, Congress has the authority to cancel an
agency’s final rule if all of the following conditions are met except:
A. both houses agree.
B. a resolution to overrule is passed within 60 days.
C. there is no judicial challenge from the courts within 60 days.
D. the overruling resolution is presented to the president.
Under the exclusionary rule:
A. judges who have handled previous cases involving the defendant currently before
them at trial must excuse themselves due to possible preformed biases.
B. potential jurors who show an obvious bias may not serve on a jury in order to make
sure trials are as fair as possible.
C. a sole proprietor’s business records may not be seized even if pursuant to a warrant
if they are considered personal papers.
D. illegally obtained evidence may not be introduced at trial.
Because it is not a state, cases arising in Washington, D.C., are heard by:
A. a specially appointed court that reports directly to the U.S. Supreme Court.
B. courts from the Virginia state system because Virginia is the closest state.
C. the Federal Circuit Court of Appeals.
D. the Court of Appeals for the District of Columbia.
The “effects test” is utilized:
A. to determine the amount of damages a defendant must pay the plaintiff.
B. by the U.S. Supreme Court to decide whether to accept a case for review.
C. by a federal court to determine whether state precedent should apply to a case it is
adjudicating.
D. to establish personal jurisdiction over an out-of-state defendant in certain cases
when minimum contacts do not otherwise exist.
In Custom Vehicles v. Forest River, Custom sued because Forest used the term “Work
and Play” to describe a van it manufactured after Custom had registered the mark
“Work-N-Play” to describe a vehicle it had built. The court found no trademark
infringement because Work-N-Play:
A. had not acquired a secondary meaning to qualify as a suggestive trademark.
B. was not distinctive enough to qualify as a fanciful trademark.
C. was not distinctive enough to qualify as an arbitrary trademark.
D. had not acquired a secondary meaning to qualify as a descriptive trademark.
Cybersquatting describes the practice of:
A. registering multiple domain names and then selling them back to companies at
inflated prices.
B. hacking into a company’s website to install a virus or Trojan horse designed to steal
information but allow the site to continue operation.
C. using mechanical devices to access a company’s website multiple times to the point
that traffic to the site is slowed or blocked.
D. hacking into a company’s website to install a virus designed to cause the company’s
website to totally cease operation.
The trial court in New York has heard a case and issued a decision. This decision:
A. will be precedent in New York courts only.
B. will be precedent in New York courts and the courts of states immediately
surrounding New York.
C. will be precedent in the courts of all 50 states.
D. will not be precedent in any U.S. courts.
Which of the following is formed to remedy unjust enrichment?
A. implied contract
B. contract based on promissory estoppel
C. express contract
D. quasi-contract
To date, every state in the union has adopted the Revised Uniform Partnership Act
except the state of Louisiana.
With regard to taxation of partnerships:
A. a partnership files a federal and state partnership tax return and pays taxes on its
income.
B. a partnership must file an information return.
C. a partnership files a state partnership tax return and pays taxes on its income but no
federal filing is required.
D. partnerships have no tax-filing responsibilities.
The only state that has not adopted the UCC is:
A. California.
B. Louisiana.
C. Texas.
D. Arizona.
Which of the following items would be properly subject to a UCC sales contract?
A. a house
B. a Christmas tree sold in a parking lot
C. rights to a patent
D. an employment contract
A petition for bankruptcy that is filed by creditors against a debtor is known as:
A. a recovery action.
B. an involuntary bankruptcy.
C. a voluntary bankruptcy.
D. an order for relief.
When filing a citizen suit, a private citizen or organization must:
A. be authorized by statute.
B. be authorized by statute and not profit from the enforcement action.
C. be an established environmental protection group.
D. have permission from the EPA to sue.
When you were a senior in high school, your college announced plans to build a new
and modern athletic complex with pools, spas, weight rooms, and exercise rooms for
general student use. You chose to enroll largely based on these plans as announced. You
are now a senior and the building is just being started. What rights, if any, do you have
because you never had the opportunity to use the facility?
George runs a baseball equipment supply store. He specializes in supplying batting
cages with new and used pitching machines. George sold Joan a used pitching machine
for her softball team. Joan signs a lengthy contract in which George disclaims all
liability and sells the machine to her “as is.” These terms are in the same font as the rest
of the text and not bolded, underlined, or otherwise highlighted. When Joan gets the
machine to her house, it catches fire and burns down her garage. Is George potentially
liable for the damage?
The ________ Act was designed to prevent companies from creating monopolies
through mergers.
Discuss the purposes of environmental laws.
When a dispute arises between two parties, one party will typically make an informal
________ on the other party prior to initiating a lawsuit.
The legal detriments exchanged by the parties must be equal, or reasonably close to
equal, for consideration to be valid.
Franchises are regulated by a franchise agreement.
Explain the similarities and differences, if any, with regard to the tax treatment of LLCs
and LLPs.
A professor at your school has discovered that if certain music is played in the
background during lectures, the room is lit to a particular level, the temperature is
maintained at a particular level, and the professor speaks within a particular tonal range,
students understand and retain the information presented at an astonishing 84 percent
higher rate than students hearing the same lecture without these conditions. The
professor has even created a machine that converts the professor’s voice to the tonal
range required. The school has been advertising that this process will be implemented in
all classrooms, and freshman applications have more than tripled. Is this process
protectable as a trade secret, and if so, how effective will the protection be?
Mediation and conciliation both involve a ________ process.
Explain how LLCs are capitalized.
Ownership of land is typically evidenced by a ______.
In what two ways do federal securities statutes define a security?
The Fair Debt Collection Practices Act applies to ________ collecting debts for the
creditors.
Seller lists his car on Craigslist and includes the phrases “as is” and “with all faults” in
bold, conspicuous letters in the advertisement. Seller knows that the brakes are faulty.
Buyer purchases the car and is later injured when the brakes fail and the car is wrecked.
Did Seller limit his liability against Buyer in a lawsuit by using the term “as is”?
The notion of ________ is a central theme in Immanuel Kant’s work.
The U.N. Commission on International ________ provides arbitration rules for parties
who do not wish to spend money on arbitration services but would like a standard
procedure.
A corporate bond issued in the amount of $500,000 is called a ________ bond.
Name the four-part test established by the court in Central Hudson Gas v. Public
Service Commission that subjects government restrictions on commercial speech to a
form of intermediate-level scrutiny.
Proposed agency rules are published in the _____.