Which of the following refers to private plaintiffs bringing actions from persons
submitting false claims for government funds?
a. Pro se litigants
b. Qui tam plaintiffs
c. Affiliated litigants
d. State-controlled plaintiffs
Answer:
Before implementing a mandatory safety standard, the Consumer Product Safety
Commission must find that __________ are inadequate.
a. voluntary standards
b. safety guidelines
c. product designs
d. warnings
Answer:
In the Harris v. Forklift Systems, Inc. case discussed in the text, the U.S. Supreme Court
ruled that a showing of a serious effect on an employee’s psychological well-being is
necessary for a hostile work environment claim under Title VII.
a. True
b. False
Answer:
Which of the following is true under the UCC regarding the requirement of privity in
regard to a breach of warranty action?
a. The UCC limits liability to those in privity with the seller who are injured by the
goods.
b. The UCC extends protection to those in privity with the seller who are injured by the
goods and also to those in the buyer’s household reasonably expected to use, consume,
or be affected by the goods and who are injured by the goods.
c. The UCC extends protection not only to those in privity with the seller, but also to
any person who may reasonably be expected to use, consume or be affected by the
goods and who is injured by the goods.
d. The UCC has alternate provisions regarding the need for privity from which adopting
states may choose.
Answer:
Fact Pattern 7-2
Hester offers to sell her house to Frank for $250,000. Frank says that he would like to
think about it, and Hester says that is fine. The next day, Martha, Hester’s friend, says
that she will give Hester $240,000 for the house. Hester really likes Martha more than
Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank
walking up her driveway. She immediately opens the window and yells “I revoke the
offer on the house” before Frank says anything. Frank replies that he accepts the offer
and expects to purchase the home. Frank tells Hester that while he has not yet taken
steps to sell his own home or get a loan, he feels confident that there will be no problem
with those matters and he is a ready, willing, and able buyer.
Refer to Fact Pattern 7-2. Which of the following is true regarding whether Hester’s
attempted revocation was effective?
a. It was effective because Hester had left the offer open the amount of time required by
law regardless of whether she revoked before Frank could accept.
b. It was effective because Hester issued the revocation before Frank could accept.
c. It was ineffective because the amount paid by Martha was less than the offer to
Frank.
d. It was ineffective because Hester attempted the revocation at too early a point in
time.
Answer:
An agency relationship can be created by:
a. an express contract.
b. an implied contract.
c. an express contract, but not an implied contract.
d. both by an express contract and an implied contract.
Answer:
The UCC provides that, unless otherwise agreed, a security agreement gives the secured
party a security interest in the proceeds if collateral is sold, exchanged, collected, or
otherwise disposed of.
a. True
b. False
Answer:
Fact Pattern 19-2
Maxine and Vince verbally agree to form a dog grooming partnership called “XYZ
Grooming.” They file nothing with the state. Maxine puts up 80% of the capital needed
for the partnership, and Vince supplies 20%. Maxine assumed that Vince would do extra
work to account for the small amount of capital contributed by him, but that did not
occur. Maxine found herself grooming more than 90% of the animals on her own.
Maxine told Vince that he was only entitled to 10% of the profits because he was only
doing 10% of the work. Vince disagreed, and a heated argument occurred. Not
surprisingly, Maxine and Vince decided to end the partnership. While winding up
affairs, Maxine discovered that Vince paid an excessive amount for some dog shampoo.
She thought he bought it from a certain supplier just so he could flirt with the
receptionist there. She told him that paying for the shampoo was entirely his
responsibility because she had not agreed to the purchase. Maxine and Vince also
became aware of a lawsuit filed by the owner of a Welsh Pembroke Corgi complaining
that the dog developed a skin rash following bathing by Vince in the expensive
shampoo he had purchased, and that the owner lost money because the dog could not be
entered into shows. Maxine told Vince that the litigation was entirely his responsibility
and that she disavowed any liability to the plaintiff.
Refer to Fact Pattern 19-2. Which of the following is true regarding Vince’s entitlement,
if any, to share in profits of the business?
a. Because he was not doing his share of the work, he was not entitled to any profits.
b. He was entitled to 10% of the profits.
c. He was entitled to 20% of the profits.
d. He was entitled to 50% of the profits.
Answer:
The antidumping law is the most frequently used U.S. import-relief law.
a. True
b. False
Answer:
The Truth-in-Lending Act provides consumers a right of __________ whenever their
home is used as collateral for credit except for original construction or acquisition.
a. rescission
b. redemption
c. new mortgage
d. refinance
Answer:
__________ is imposed upon the generator of hazardous waste by the Resource
Conservation and Recovery Act.
a. Negligence liability and responsibility
b. Individual liability and responsibility
c. Cradle to grave responsibility
d. Joint and several liability
Answer:
Under Islamic law, “Zakat” is the allocation of certain taxes to deprived and poor
people as a welfare contribution.
a. True
b. False
Answer:
An alternative to acquiring real property for cash is a(n) __________, whereby the
seller exchanges its property for another piece of property.
a. tax-deferred exchange
b. sale and leaseback
c. option contract
d. wraparound financing
Answer:
J.P. Morgan Chase’s “Sons and Daughters” hiring program, involving hiring children of
China’s ruling elite, was approved by the United States Department of Justice and the
Securities Exchange Commission.
a. True
b. False
Answer:
Which of the following statements is NOT true regarding the warrant requirement of
the Fourth Amendment?
a. Some stops and searches may be justified without a search warrant.
b. The Supreme Court has permitted a warrantless search of garbage cans placed at
curbside for collection.
c. An arrest warrant is generally required for arrests in the suspect’s own home.
d. A search warrant is required for the government to search an individual’s bank
records.
Answer:
A company is not liable for hyperlinks to third-party information that the company has
explicitly or implicitly endorsed or approved.
a. True
b. False
Answer:
A political union represents the agreement of countries regarding constitutional
systems.
a. True
b. False
Answer:
Pursuant to federal law, states have the same rules in place in regard to implied
contracts of employment.
a. True
b. False
Answer:
The Federal Trade Commission takes the position that it is an unfair or deceptive trade
practice under the Federal Trade Commission Act for firms to fail to honor their own
privacy policies.
a. True
b. False
Answer:
In the United States, the value of an article for customs purposes is normally the
__________ value, which is the price indicated on the sales invoice.
a. customs
b. transaction
c. domestic
d. international
Answer:
__________ liability is the responsibility of an acquirer of corporate assets for the
liabilities of the seller.
a. Parent
b. Successor
c. Subsidiary
d. Environmental
Answer:
A motion for summary judgment will be granted where there is no __________ issue of
__________.
a. disputed, material fact
b. legal, questionable fact
c. material, fact
d. factual, legal fact
Answer:
To prevail on a securities fraud claim, a plaintiff must prove “loss causation”, that the
defendant’s misstatement caused her to suffer economic loss.
a. True
b. False
Answer:
Which of the following is NOT true regarding an agency relationship?
a. The most common form of agency relationship is the employer-employee
relationship.
b. An agent may not be in independent contractor.
c. An agency agreement may be implied.
d. Agency may be established by estoppel.
Answer:
Under the Electronic Funds Transfer Act, credit card companies such as VISA are liable
for the first $100 charged to a customer’s account without her knowledge.
a. True
b. False
Answer:
Sherdon really wants to buy a new $40,000 boat, but lacks the funds with which to do
so. He spends some amount of time thinking about robbing the local bank. He casually
mentions to his wife, Pearl, that he has such thoughts. A few weeks later Pearl leaves
Sherdon for the local mail carrier. Pearl and Sherdon get in a dispute regarding splitting
up their property. In a fit of anger, Pearl calls law enforcement and informs on Sherdon
for thinking about the bank robbery. The police arrest Sherdon. Which of the following
is the most likely result assuming Pearl is believed by a judge and jury?
a. Sherdon should be released because he has committed no crime.
b. Sherdon should be found guilty of plotting to commit a felony.
c. Sherdon should be found guilty of conspiracy.
d. Sherdon should be found guilty of the misdemeanor offense of “wrongful
contemplation.”
Answer:
Tina is the president of Bank X which holds a mortgage on a company found liable for
illegal disposal of hazardous waste. The company has stopped paying on its loan to
Bank X. Tina would like to foreclose, but she does not want the bank to become liable
under CERCLA as an owner. What should she do?
a. Tina should do nothing because foreclosure would automatically result in the bank
becoming liable under CERCLA for clean-up costs.
b. Tina should go ahead and foreclose because so long as the bank did not participate in
the management of the facility prior to foreclosure, the bank will not be considered
liable under CERCLA for clean-up costs.
c. Tina should immediately arrange for the bank to become involved in managing the
facility because so long as the bank participated in the management of the facility prior
to foreclosure, the bank will not be considered liable under CERCLA for clean-up costs.
d. Tina might as well go ahead and foreclose because as a mortgage holder, the bank is
already automatically liable under CERCLA for clean-up costs.
Answer:
A statute of __________ prevents recovery for product injuries by limiting the time
period for recovery from the date when the injury occurred.
a. limitations
b. repose
c. recovery
d. discovery
Answer:
A __________ is created when a group of states reduce or eliminate tariffs between
themselves but maintain their own individual tariffs as to other states.
a. free trade area
b. Caribbean basin initiative
c. customs union
d. most favored nation
Answer:
Fact Pattern 6-1
Bruce had a disagreement with a new federal agency set up to give additional funds for
college to individuals with an aptitude for math. After a hearing, the agency determined
that Bruce had no aptitude for math and that he would not receive any funding. Bruce,
however, was not discouraged. He told his friend Laura, who just graduated from law
school, that he would simply appeal the decision to federal court, have the judge do a
fresh review, and provide additional information to the judge regarding his math
aptitude that the agency did not have. He feels certain that he will win at the federal
court level.
Refer to Fact Pattern 6-1. Assuming the decision by the administrative agency was a
factual finding, what should Laura tell Bruce regarding the standard of review the
administrative agency will likely apply?
a. That the agency will likely apply a de novo, or new, review.
b. That the agency will likely apply an arbitrary and capricious standard in any review.
c. That the agency will likely apply a substantial evidence standard in any review.
d. That the agency will likely apply a preponderance of the evidence standard in any
review.
Answer:
Efforts to create a comprehensive uniform state law for software licensing have been
largely unsuccessful.
a. True
b. False
Answer:
When can a corporate officer be held civilly liable under the Clean Water Act?
a. Corporate officers are strictly liable whenever a violation by their company is
established.
b. Only if the corporate officer specifically ordered the unlawful discharge.
c. If the corporate officer had the authority to exercise control over the activity that
caused the unlawful discharge or if the officer knowingly violated the act.
d. Corporate officers may never be held liable in an individual capacity.
Answer:
Section 7 of the NRLA gives union employees the right to engage in “concerted
activities” for collective bargaining or other mutual aid or protection.
a. True
b. False
Answer:
In theIn re Bryan Road casereferencedin the text, the main issue before the Florida
court was whethera pre bankruptcy waiver of the automatic stay in a prepetition
workout was enforceable. How did the court rule?
a. After considering a number of factors, the court concluded that the waiver of the
automatic stay would be enforced.
b. The court ruled as a matter of law that such agreements are contrary to the principles
set forth in the federal bankruptcy statutes and that such agreements are, therefore,
unenforceable.
c. The court ruled as a matter of law that such agreements are enforceable.
d. The court ruled that such agreements are enforceable only if all other creditors are
paid in full.
Answer: