A tenancy for years will automatically renew if no notice is given by the tenant or
landlord of intention to terminate the lease.
If a company files bankruptcy, preferred stockholders have priority over common
stockholders and will be paid from the bankruptcy estate first if payments are to be
made.
A plaintiff need not be in a minority within a protected class to be covered under Title
VII.
Freedom of speech, as defined in the Constitution, is an example of substantive law.
Victims of odometer tampering are eligible to receive up to triple the amount of their
damages.
Generally, mutual mistakes will often lead to the court allowing an avoidance of a
contract; however, a unilateral mistake is not usually grounds to cancel a contract.
“Frosted Mini Wheats” is a descriptive mark that has acquired a secondary meaning and
is afforded protection.
An agreement to purchase $499 worth of land does not have to be in writing to be
enforceable.
A presidential veto may be overridden by a two-thirds majority vote of the Senate.
Your professor is a partially disclosed agent representing your school.
If the creditor may keep the property used as collateral in his possession if the debtor
defaults, the UCC does not require a lawsuit if there is a security agreement.
Congress has endorsed the use of arbitration as the preferred dispute resolution method
in matters governed by federal law.
Uncle Buck has lent you $10,000 for tuition and living expenses. The agreement was
oral. This contract violates the statute of frauds, so it is unenforceable and you need not
repay the loan.
In United States v. Morton, Morton was declared a general partner despite all
paperwork, including tax returns, naming her as a limited partner because of her
conduct.
The right to confront witnesses through cross-examination is contained in the Sixth
Amendment.
Employees who are classified as key employees and take leave are not automatically
entitled to Family and Medical Leave Act reinstatement protections and guarantees.
A public official or public figure can win a defamation case only by proving actual
malice by the defendant.
Fred has been charged with a crime for which the maximum punishment is a fine and
up to six months in jail. The crime he has been charged with is a misdemeanor.
Congress has twice passed federal statutes intending to control pornography over the
Internet with regard to distribution to minors, and both times the law was struck down
as being too broad and too vague, therefore infringing on freedom-of-speech rights of
the general public.
Misappropriation is a civil offense punishable by compensatory and punitive damages
but is not a criminal offense in any state.
Diversity jurisdiction is a form of federal personal jurisdiction.
Once a business is licensed, an agency may fine it for any violation of agency
regulations.
According to the Zippo standard, any website that is in any way interactive with
customers will be sufficient to create personal jurisdiction over a nonresident company.
Credit card companies may give out free umbrellas on campus when a student
completes an application for a card.
After conducting an investigation of a discrimination claim, if discrimination is found,
the EEOC may immediately file suit on behalf of the aggrieved employee.
All trade secrets are protectable by either patent or copyright laws.
The test for determining a monopoly under the Sherman Act is the entity’s share of the
relative market.
The inherent right of the federal government to protect its citizenry’s health, safety, and
welfare is referred to as the federal government’s police powers.
Anticipatory repudiation may be used when a party has knowledge that either a
complete or a partial breach will occur by the other party.
Security sales to venture capitalists often do not require full registration.
Craig has been hired by Brian to negotiate a deal with Rudy. Brian instructs Craig that
while he is in Rudy’s office, should he be able to steal the Johnson file, he is to do so. If
Craig has the opportunity to steal the file but fails to do so, he is in violation of his duty
of obedience and obligation to follow his principal’s instructions.
The Restatement (Third) of Torts is currently the most recent edition.
Online dispute resolution (ODR) has all of the advantages of traditional forms of ADR.
Mike goes to his local bike shop to buy a cyclometer (which measures speed, distance,
etc.). He tells the salesperson that he wants the best cyclometer on the market, and she
shows him a cyclometer and states that particular brand and model was actually used by
some participants in the 2013 Tour de France bicycle race and is the best Mike can buy.
Mike buys the cyclometer. As it turns out, 8 of the 189 riders indeed used the brand and
model bought by Mike, with the other 181 using various other brands and models. In
actuality, there is no acknowledged top brand and model, and use is subject to personal
tastes. The salesperson has committed a fraudulent misrepresentation by stating that the
brand and model sold to Mike was the best.
A contract for installing a new furnace is an example of a hybrid contract.
In Lucy v. Zehmer, the two parties were drinking in a bar when Lucy offers to buy
Zehmer’s farm. After some negotiation a written contract was executed. Zehmer
claimed that the whole episode was only a joke and he never intended to sell the farm.
The court determined that:
A. since Zehmer claimed to be “high as a Georgia pine” and it was only the liquor
talking, there was no contract.
B. since the contract was written without lawyers present, it was likely not really
serious, so no contract was actually formed.
C. because the terms were fair, the parties are bound by the contract regardless of their
intent or capacity.
D. because negotiations and modifications to the written agreement lasted between 30
and 40 minutes, it appeared that both parties were serious, so even if Zehmer had no
objective intent to sell the farm, he is still bound by his actions and the contract is
enforceable.
Lindsay is a sprinter on the school’s track team. If she is confronted by a man with a
cast on his leg who is threatening her with a knife and she kills her assailant during a
brief skirmish, claiming self-defense would most likely be a successful defense if:
A. she is confronted on campus in front of the administration building.
B. she is confronted in her home.
C. she is confronted in a dark parking lot while walking to her car after class.
D. she is confronted in the hall of the business building.
Carlos is a member of an LLC along with three others. After one year, despite their best
efforts, the business closes and the bank that extended them a loan sues for repayment.
The bank may:
A. sue Carlos for only 25 percent of its loss under rules pertaining to LLCs.
B. sue Carlos for the entire amount because Carlos is jointly and severally liable for the
loss.
C. sue Carlos only if he is a managing member.
D. sue the LLC but may not sue Carlos.
The source of each of the following types of law except _______ is primarily statutory.
A. zoning laws
B. contracts for services
C. contracts for the sale of goods
D. employment discrimination
Which of the following is used to separate and keep apart commercial, residential, and
industrial properties?
A. eminent domain
B. variances
C. easements
D. zoning
A design patent will last for:
A. 14 years from the date of the filing of the application with the U.S. Patent and
Trademark Office.
B. 14 years from the date of the approval of the application granted by the U.S. Patent
and Trademark Office.
C. 20 years from the date of the filing of the application with the U.S. Patent and
Trademark Office.
D. 20 years from the date of the approval of the application granted by the U.S. Patent
and Trademark Office.
What is the test to determine whether an entity has monopoly power?
A. share of the relevant market
B. rule of reason
C. vertical integration test
D. bright-line test
In 1997, the IRS made LLCs:
A. more attractive by eliminating strict operating requirements for qualifying as a
partnership for tax purposes.
B. more attractive by changing the tax structure, making LLCs more profitable to
operate.
C. less attractive by increasing and redefining operating requirements to properly
identify LLCs and weed out companies misfiling for tax break purposes.
D. less attractive by eliminating taxation at the business level, making the LLC similar
to the partnership for tax purposes.
In Smith v. Van Gorkom, the court had to determine whether the business judgment rule
protected board members who permitted the sale of a significant amount of stock by the
retiring chairman of the board at an undervalued price, devaluing the company. The
court stated each of the following except:
A. normally, the board of directors is entitled to give some weight to statements made
by its chairman regarding the valuation of stock.
B. the board in this case had the expertise to make decisions without consulting outside
experts but just made a poor decision.
C. failing to review the agreement to sell the stock showed a lack of care.
D. failure to do a valuation analysis of the company showed that the board could not
have been working with all appropriate information to render a proper decision.
An enterprise may not be a Subchapter S corporation if it owns more than ________ of
the stock of a subsidiary corporation.
A. 50 percent
B. 60 percent
C. 70 percent
D. 80 percent
Morris is a nonexempt employee with a salary of $400 a week based on a 40-hour
week. If he works 50 hours in a particular week, his paycheck should be for:
A. $450.
B. $500.
C. $550.
D. $600.
The Clean Air Act (CAA) is an uncontroversial statute.
The oil spill that resulted in Congress creating the Oil Pollution Act was the:
A. Deepwater Horizon.
B. Gulf oil spill.
C. Kirsk.
D. Exxon Valdez.
Which of the following is not a way that the Environmental Protection Agency (EPA)
enforces its regulations?
A. criminal complaints
B. permits
C. administrative fines
D. mandatory arbitration
Bradley collects historic memorabilia, and one of his prized possessions is the pistol
used by Aaron Burr in his duel with Alexander Hamilton. After reading an article in a
magazine, Bradley discovers that Sam owns the matching pistol, used by Hamilton in
the duel. Bradley contacts Sam and offers him $500,000 for the pistol. Sam e-mails
Bradley that he accepts his offer but that the transaction must be for cash and
face-to-face. Bradley responds that he’ll be at Sam’s home at noon the next day with the
money. When he arrives, Sam informs him that he’s received an offer of $600,000 for
the pistol and states that Bradley must pay that amount or he’ll sell to the other buyer.
Bradley wants the weapon to complete the set. If he sues Sam, what course of action
will best provide him the results he desires?
A. Sue for breach of contract and seek a legal remedy.
B. Sue for an injunction.
C. Bring a suit in equity and seek monetary damages.
D. Sue for breach of contract and seek a decree of specific performance.
In Trinity Marine Products v. Secretary of Labor Elaine Chao, Trinity Marine turned
away OSHA compliance officers who had come to conduct an inspection. OSHA
obtained an administrative warrant and came back with federal marshals. Trinity
officials allowed the search under protest and later filed suit alleging that the warrant
had been obtained without probable cause. The court held that the probable cause
standard for administrative warrants is:
A. the same as that for criminal warrants and the criminal standard had been met in this
case, thus allowing a reasonable use of force in executing the warrant.
B. lower than that for criminal warrants and the warrant could be executed using a
reasonable degree of force.
C. lower than that for criminal warrants but could not be executed with any degree of
force.
D. the same as that for criminal warrants but that standard had not been met in these
circumstances.
The U.S. system of common law:
A. is derived from the French common law.
B. is derived from the British common law.
C. was established in the U.S. Constitution.
D. is a secondary source of law established in various Restatements of the Law.
Which of the following is not a type of horizontal restraint?
A. tying agreement
B. allocation of markets
C. price-fixing
D. boycotts
Bridget is the tenant in an apartment in New York, and her lease expires in three
months. She expects and wants to renew the lease once it expires. Her employer has
assigned her to a two-month assignment in Hawaii. She doesn’t want to lose the
apartment, so she checks and finds that the lease does not prohibit an assignment of the
lease or a sublet of the lease. She is worried that if she assigns or sublets and the person
who moves in doesn’t pay, she may suffer consequences.
A. If she assigns the lease, she will not be liable for payment if the assignee doesn’t pay
but she would be liable on a sublease should the subleasee not pay.
B. If she subleases, she will not be liable for payment should the subleasee not pay but
she would be liable on an assignment should the assignee not pay.
C. She will be liable whether she assigns or subleases should the assignee or subleasee
not pay.
D. She will not be liable whether she assigns or subleases should the assignee or
subleasee not pay.
Burt has gone to a commercial bank to negotiate a loan for the LLC in which he is a
member. He tells the bank that he is authorized to act on behalf of and to bind the
company. What is the best way for the bank to verify whether Burt does in fact have the
authority he claims?
A. Get him to sign a written statement.
B. Call another member of the LLC for confirmation.
C. Check the articles of organization.
D. Nothing need be done because all LLC members have the right to bind the
company, as do general partners.
Aimee is a 21-year-old college student. Her parents are worried about her being away
from home, so they tell her that if she goes through both the fall and spring semesters
without drinking alcohol, they will buy her a new car. Aimee does in fact complete both
semesters without drinking.
A. Aimee gets the car because she performed exactly as required under her parents
offer.
B. Aimee gets the car because a quasi-contract is formed due to her parent’s unjust
enrichment.
C. Aimee is not entitled to the car because her benefit far outweighed her detriment.
D. Aimee is not entitled to the car because she’s healthier, so she suffered no detriment.
Right-to-work laws:
A. require that all persons applying for jobs be treated equally and without
discrimination.
B. make it illegal for employers to agree with unions that union membership be
required for continuing employment.
C. make it illegal for employers to agree with unions that union membership be
required as a condition of employment.
D. make it illegal for an employer to terminate an employee for joining a union.
Which of the following, from highest to lowest, properly demonstrates preemption?
A. federal common law; federal statutes; U.S. Constitution
B. state statutory law; federal common law; federal administrative law
C. state common law; state administrative law; state statutory law
D. federal administrative law; federal common law; state statutory law
The ________-based standard requires that the majority good be placed ahead of the
individual good when faced with a moral dilemma.
Which of the following is classified as an equitable remedy?
A. consequential damages
B. reformation
C. restitution
D. liquidated damages
The Due Process Clause is found in:
A. the Fifth Amendment only.
B. the Fourteenth Amendment only.
C. neither the Fifth nor Fourteenth Amendment.
D. both the Fifth and Fourteenth Amendments.
Murder is the killing of a human being with malice aforethought. Malice aforethought
is the premeditation and planning of the crime. Malice aforethought shows that one
considered the consequence of the action and knowingly committed the crime. The
malice aforethought would be the:
A. actus reus.
B. mens rea.
C. voir dire.
D. indictment.
In which of the following scenarios would enforcement of specific performance be
appropriate?
A. Your bookstore agrees to order a textbook for you but breaches its contract with you
by canceling the order the next day.
B. You order 3 gallons of white ceiling paint from a local store, and the store breaches
by not delivering or making available to you the 3 gallons.
C. You order a current-model name-brand television from a department store, and a
few days later the store breaches by not ordering it from the manufacturer.
D. You own the pistol used by Hamilton and contract to buy the pistol used by Burr in
the Hamilton-Burr duel to complete your set, but despite the contract the Burr pistol
owner refuses to sell at the last minute.
When an offer and agreement exist between parties, this is called:
A. capacity.
B. legal purpose.
C. consideration.
D. mutual assent.
Public comment on proposed rules generally comes from:
A. other agencies
B. an ordinary citizen
C. public advocacy groups
D. members of Congress
The power of a municipality to pass zoning ordinances stems from:
A. common law.
B. federal statutes passed by Congress.
C. statutes passed by the state legislature.
D. police powers.
In Haynes v. Zoological Society of Cincinnati, Haynes was demoted and then fired after
reporting dangerous conditions at the defendant zoo and then testifying for Stober, a
co-worker injured at the zoo. Haynes sued based on retaliation. The court found:
A. for the zoo because Haynes was not a zoologist and therefore was not qualified to
judge whether conditions were safe or not regarding wild animals.
B. for the zoo because the injury to Stober, Haynes’s co-worker, resulted from her
assumption of risk and contributory acts in trying to feed a grape to a bear.
C. for Haynes because the federal Whistle-blower Protection Act expressly provides
protections for employees of institutions that deal directly with the public and the zoo
could not justify the demotion and firing independent of retaliation.
D. for Haynes because she reported safety violations that could harm members of the
public as covered under Ohio law and the zoo could not justify the demotion and firing
independent of retaliation.
The bankruptcy trustee is a representative of:
A. the debtor.
B. the creditors.
C. the court.
D. the state.
Which of the following is not classified as an equitable remedy?
A. specific performance
B. damages
C. reformation
D. injunctive relief
Water rights are also known as ________ rights.
Robin is the treasurer of Big Bottle Brewery Inc., Big Bottle is a small local brewery
that recently started and has minimal assets. At 4:30 p.m. one day, Robin realizes that
she hasn’t made an important bank deposit and only has a half hour to get to the bank.
She takes a corporate car and is speeding to the bank when she hits Gretchen, a
pedestrian legally in a cross walk. Gretchen is seriously injured, and the car, which then
careened into a pole, is totaled. Gretchen sues both Big Bottle and Robin. The bank that
financed the car has also sued Big Bottle and Robin because Big Bottle stopped making
the loan installment payments after the accident and is in default. Discuss Big Bottle’s
and Robin’s liability, if any.
________ is the legal term for the right of ownership in goods.
Owners in an LLC are called _______.
The U.S. Supreme Court has established three standards of review used when applying
constitutional law. Name these three standards and discuss each in terms of how it
relates to state objectives.
In the event that a tenant breaches a duty owed under a lease, what are the possible
remedies that may be available to the landlord?
Evidence that proves innocence or nonliability is called ________ evidence.
COBRA requires that employers provide health care coverage, at the former employee’s
cost, for up to ________ after the employee leaves the company.
A group of adversely affected parties want to challenge an agency rule in federal court.
What is the process that the judge will use to make his or her decision?
Horizontal restraints are restrictions on trade through an agreement with a _______
company.
Let us assume that you have just graduated and you’re employed doing the job you have
trained for and hoped and expected to have. State what that job is (if you’re undecided,
choose one), and explain whether the position makes you exempt or nonexempt from
standards and regulations under the Fair Labor Standards Act and how the FLSA does
or does not apply to you.
What is the means test? Provide an example of how it would be applied.
The duty of a partner to act in the best interests of the partnership is called a ________
duty.
The person from whom an agent has received instruction and authorization and to
whose benefit the agent is expected to perform and make decisions pursuant to an
agency relationship is called the __________.
The plaintiff and defendant, the adverse parties in a lawsuit, are called the _______.