In rare occasions, an appellate court will overturn a jury verdict if the appellate court
cannot, from the record of the trial court, find sufficient evidence to support the trier of
fact’s findings.
Under Title VII of the Civil Rights Act of 1964, an employer is under a duty to
reasonably accommodate the religious observances, practices, or beliefs of its
employees if doing so does not cause an undue hardship on the employer.
Utilitarianism is a moral theory with its origins in the works of Immanuel Kant.
A franchise is established when one party, the franchisor, licenses another party, the
franchisee, to use the franchisor’s trade name, trademarks, commercial symbols, patents,
copyrights, and other property in the distribution and selling of goods and services.
Section 552 of the Restatement (Second) of Torts provides a narrower standard for
holding accountants liable to third parties for negligence than under the Ultramares
doctrine.
Providing a basis for compromise is a function of the law.
If an owner discards property intending to relinquish his or her rights to it, the property
is considered to be abandoned.
The first twenty (20) amendments to the United States Constitution are commonly
referred to as the Bill of Rights.
An agency results from the manifestation of consent by one person to another that the
other shall act in his behalf and subject to his control, and consent by the other so to act.
A firm can violate Section 2 of the Sherman Antitrust Act only by acting in collusion
with another firm.
Statements of opinion and ‘sales talk” do not constitute false and deceptive advertising.
In 1950, the United States Congress enacted the Occupational Safety and Health Act to
promote safety in the workplace.
The written confirmation rule only satisfies the Statute of Frauds requirement if the
transaction is between non-merchants.
Generally, the public and taxpayers are intended third-party beneficiaries to contracts
entered into by the government on their behalf.
In the absence of an agreement to the contrary, partners have equal rights to manage a
partnership, regardless of the size of their capital investment.
Manufacturers and sellers are not strictly liable for failing to warn of generally known
dangers.
Advertising is false and deceptive under Section 5 of the FTC Act if it makes an
unsubstantiated claim.
All tax-paying American citizens have a Constitutional right to begin a lawsuit in the
federal court system rather than a state court system if they so choose.
Ethical relativism holds that individuals must decide what is ethical based on their own
feelings about what is right and wrong.
The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 has been
criticized as being too “debtor friendly.”
A violation of generally accepted accounting principles or generally accepted auditing
standards is prima facie evidence of negligence.
For an injury to be compensable under workers’ compensation, the claimant must prove
that the injury arose out of and in the course of his or her employment.
Promissory estoppel makes a promise enforceable when the promisor attempts to
withdraw the promise and the promisee has acted in reliance to his or her detriment
based on the promise.
Rescission is an action to undo a contract.
Franchise agreements commonly set forth training requirements.
A “tying arrangement” is any advance agreement to commit to purchasing a fixed
quantity of goods.
Utilitarianism has been criticized because it treats morality as if it were an impersonal
mathematical calculation.
A document signed by a person that stipulates his or her wishes not to have his or her
life prolonged indefinitely by artificial means is known as a “living will.”
A person may be both a general partner and a limited partner.
The International Court of Justice is also called the League of Nations.
In most cases, a bailment for hire is considered to be for the sole benefit of the bailor.
Extortion of public officials is called extortion under color of non-professional right.
All states except Nevada and Wyoming permit foreclosure sales.
Murder is defined as the unlawful killing of a human being or animal with malice
aforethought.
In a Chapter 13, the debtor begins making payments to the trustee within 30 days after
the plan has been approved.
Which of the following does not constitute false imprisonment?
A) The victim is restrained or confined by the threat of physical harm.
B) The victim is restrained or confined by the perpetrator’s false assertion of legal
authority.
C) The victim is restrained or confined by the threat of future harm.
D) The victim is restrained or confined by moral pressure.
E) The victim is restrained or confined by the threat of future harm, or the victim is
restrained or confined by moral pressure.
Under the “on sale” doctrine, a patent may not be granted if the invention was used by
the public for more than ________ prior to the filing of a patent application.
A) one (1) month
B) three (3) months
C) six (6) months
D) one (1) year
E) three (3) years
Which of the following is true about misappropriation of trade secrets?
A) Although it is not necessary that the trade secret be patented, the secret must be such
that it could be patented.
B) Trade secrets are protected regardless of the actions of the trade secret owner.
C) The plaintiff can recover only if the defendant acquired the secret through illegal
means.
D) Injunctions are generally not available to protect trade secrets.
E) The plaintiff can recover only if the trade secret was registered with the Trade Secret
Office in Washington, D.C.
The United States ________ is the federal administrative agency the is primarily
responsible for regulating meat, poultry, and other food products.
A) Department of Agriculture (USDA)
B) Food and Drug Administration (FDA)
C) Federal Trade Commission (FTC)
D) Interstate Commerce Commission (ICC)
E) Department of Homeland Security (DHS)
What type of title does a buyer have in goods under a Sale on Approval before
acceptance?
A) void
B) voidable
C) no title
D) restricted title
E) valid title
Which of the following best describes the Restatement of the Law of Contracts?
A) It is the supreme legal authority for contract law.
B) It is a law which has been adopted, at least in part, by every state.
C) It is a summary of the constitutional provisions affecting contract law.
D) It is a compilation of contract law that is not itself contract law, but is often referred
to by judges.
E) It is a compilation of law pertaining exclusively to the Uniform Commercial Code.
Common law defines minors as ________.
A) males and females under the age of 18
B) females under the age of 18 and males under the age of 21
C) males under the age of 18 and females under the age of 21
D) males and females under the age of 21
E) males and females under the age of 25.
An “insurable interest” can best be described as:
A) the insured having paid the premiums of an insurance policy, as called for in the
policy.
B) a financial interest in the real or personal property being insured, in the sense that if
the insured did not acquire insurance, he or she would suffer a monetary loss resulting
from damage to or destruction of the property.
C) the item in question being fully-covered under a valid insurance policy.
D) the item is question being fully capable of identification at the time of a loss, even if
it could not have been identified at the time the policyholder acquired the insurance
policy.
E) the item of interest being owned by a person different from the person who takes out
the insurance.
What is the legal significance of the distinction between “rule of reason” violations and
per se violations under the Sherman Act?
A) Rule of reason violations must be proven beyond a reasonable doubt, while per se
violations must be proven by a preponderance of the evidence.
B) Rule of reason violations require an agreement with at least one other party, but per
se violations can occur without an agreement with others.
C) Rule of reason violations relate to horizontal restraints of trade, while per se
violations relate to vertical restraints of trade.
D) Rule of reason violations relate to actions brought by private parties, and per se
violations relate to actions brought by the government.
E) Rule of reason violations might be proven to be acceptable, but per se violations are
not acceptable under any circumstances.
Willful copyright infringement can be punished with a statutory damage award of up to:
A) $100,000.
B) $150.000.
C) $250,000.
D) $350,000.
E) $500,000.
A ________ is a court order directing the defendant to appear in court and answer the
complaint.
A) subpoena
B) summons
C) declaratory judgment
D) complaint reproduction
E) complaint requisition
Which of the following statements is not true regarding the identification of goods?
A) The identification of existing goods occurs when the contract is made and specifies
the goods.
B) The identification of mass produced goods occurs when the goods are set-aside for
the particular buyer.
C) The identification of future goods, other than crops and animals, occurs when the
goods are shipped or otherwise set-aside for the particular buyer.
D) Identification of goods can occur in any manner designated between the parties.
E) Identification of goods occurs when the risk of loss transfer from the seller to buyer.
Owners of a limited liability company retain limited liability until which of the
following is received in net profit?
A) $100,000
B) $500,000
C) $900,000
D) $1,000,000
E) There is no limit of net profit beyond which owners of a limited liability company
lose their limited liability.
Which of the following is a permissive subject of collective bargaining?
A) wages
B) hours of employment
C) size of the supervisory force
D) fringe benefits
E) health benefits
You have just purchased a software program from your school bookstore to install on
your personal computer. The manufacturer limits installation of the program to one
computer and prohibits the making of copies for personal use or sale. In this type of
transaction you are the:
A) owner of the program.
B) lessor of the program.
C) lessee of the program
D) licensor of the program.
E) licensee of the program.
The Critical Legal Studies School of jurisprudence believes that:
A) free market forces and market efficiency are the most important principles
underlying the law.
B) past court decisions must be analyzed and criticized in developing new law.
C) subjective decision making by judges based on general notions of fairness is
appropriate.
D) one of the main purposes of law is to serve as an official voice of criticism of those
in power.
E) judges should employ the same critical methods of analyzing cases in the courtroom
that law schools use in teaching the law to students.
The notice for which type(s) of shareholders’ meetings must include the purpose of the
meeting?
A) annual meetings
B) special meetings
C) annual and special meetings
D) neither annual nor special meetings
E) annual meetings, but only if special business issues are discussed
How is a creditor beneficiary relationship usually formed?
A) a party buys a consumer goods from a retail store and the retail store extends credit
for the purchase
B) a party buys a good second-hand from someone who borrowed money to purchase
the good, and the second-hand buyer promises to pay the remaining balance of the loan
C) a party purchases a good on credit, but the creditor requires a co-signer before the
credit will be extended
D) a party purchases a good from the seller, but asks the seller to deliver it as a gift to a
third person
E) a party borrows money from a bank prior to needing the funds to make the purchase
Will someone who uses a short section of a copyrighted work in a critical review be
subject to copyright infringement?
A) no, because of the fair use doctrine
B) no, if he or she obtained the original copyrighted work through legitimate means
C) yes, if he or she did not pay the author for his or her use of the material
D) yes, if he or she did not obtain permission from the author for his or her use of the
material
E) yes, because of the fair use doctrine
Seller who is located in Atlanta, Georgia contracted to sell a shipment of peaches to the
1910 fruit gum company located in Buffalo, New York. The peaches were sold f.o.b.
Buffalo. Seller delivered the peaches to the proper carrier in Atlanta and the peaches
were destroyed during shipping. Under these facts:
A) This is a trick question; goods can’t be shipped f.o.b. Buffalo.
B) Buyer bears the risk of loss and is responsible.
C) Seller and buyer share the risk of loss.
D) Seller bears the risk of loss and is responsible.
E) Neither the seller nor the buyer bear risk of loss, the carrier bears the risk of loss.
When a drawee bank is presented with a check drawn on a customer’s account in which
there are not sufficient funds to pay the check, the bank:
A) must pay the check if the customer is an established customer.
B) is not permitted to pay the check.
C) must notify the drawer before deciding whether or not to pay the check.
D) may choose whether to pay the check, but cannot charge interest on the overdraft
unless the customer previously agreed to the payment of overdraft interest.
E) may choose whether to pay the check, and can charge interest on the overdraft in all
circumstances.
Which of the following will result in an instrument being nonnegotiable?
A) It contains a variable interest rate such that the amount of interest that will be due
cannot be determined at the time the note is created.
B) It states that the payment of funds will come from the proceeds of a specific
contract.
C) It states that the entire balance will become immediately due in the event of a default
by the maker.
D) It states that the rights of the payee to receive payment are subject to the terms of a
separate agreement.
E) It is secured by collateral, and the agreement about the collateral is in a separate
agreement.
Which of the following is not one of the typical duties of an insured in connection with
an insurance policy?
A) duty to pay premiums
B) duty to notify the insurer promptly with respect to any claims
C) duty to exercise reasonable care in connection with the risks insured
D) duty to cooperate with the insurer in the investigation of claims
E) duty to provide complete and accurate information in the application for insurance
Which of the following is true about perfection of a security interest in a motor vehicle?
A) Perfection can be obtained only by possession.
B) Motor vehicles are exempted from the automatic perfection rule.
C) Because they are mobile, a financing statement must generally be filed in every
state.
D) There can be no perfected security interest in a motor vehicle.
E) Perfection of a security interest in a motor vehicle can occur only in situations where
credit is extended to purchase the motor vehicle.
Which of the following is true about intentional infliction of emotional distress?
A) Recovery is allowed any time there is any amount of mental distress.
B) There must be some physical contact with the plaintiff.
C) The defendant’s conduct must go beyond all possible bounds of decency and be
regarded as atrocious and utterly intolerable in a civilized society.
D) The plaintiff must have witnessed severe physical injury to a relative or other
significant person in the plaintiff’s life.
E) The plaintiff must establish that he or she had prior psychological problems and was
predisposed to injury.
Treble damages is a possible remedy for:
A) fraud.
B) innocent misrepresentation.
C) duress.
D) undue influence.
E) breach of a quasi-contract.
What does “the risk of loss” mean?
A) It is the risk that a party may not pay for goods delivered.
B) It is the risk that a contract may be unprofitable for a business.
C) It is the risk that goods delivered may be nonconforming or have material defects.
D) It is the risk that goods in transit may be lost or destroyed.
E) It is the risk that a third-party may interfere with the performance of a contract for
the delivery of goods.
A limited liability company may do business in states other than the state in which it is
organized. To do so, the LLC must register as a(n) ________ LLC in any state in which
it wants to conduct business.
A) “close”
B) closely-held
C) domestic
D) foreign
E) alien
Pat is pledging at the Delta Upsilon Delta (DUD) fraternity in order to become a
member. As part of the pledging process he must give himself a haircut using an electric
hedge trimmer. In doing this, a clump of his hair became wrapped around the blades
rather than being cut. This caused the hedge trimmer to slam against his head, injuring
him. Pat files a products liability suit against the manufacturer of the hedge trimmer.
Which of the following, if true, would allow the hardware store to avoid liability?
A) The manufacturer exercised reasonable care in designing the hedge trimmer.
B) It was an unforeseeable misuse for anyone to use a hedge trimmer in this way.
C) The manufacturer exercised reasonable care in manufacturing the hedge trimmer.
D) Pat was not the purchaser from the hardware store.
E) This model of hedge trimmer has been redesigned such that the ones currently sold
provide a cleaner cut and would cut the hair rather than have it get wrapped around the
blade.
The original source of the Uniform Commercial Code was:
A) the U.S. Constitution.
B) Congress.
C) the state legislature of Delaware.
D) the United Nations.
E) the National Conference of Commissioners on Uniform State Laws.
In an auction, when can the seller reject the highest bid and not sell the item?
A) in an auction with reserve
B) in an auction without reserve
C) in both auctions with reserve and in auctions without reserve
D) in no cases, regardless of the kind of auction
E) in an auction with reservations
Which of the following is an example of an executive power granted to an
administrative agency?
A) the responsibility to determine licensing requirements for pharmacists
B) the right to adjudicate a case through an administrative proceeding
C) the power to investigate a violation of a statute or administrative rule
D) the right to issue an interpretive rule
E) the right to issue a substantive rule
What is the consequence of a defense to a negotiable instrument being a personal
defense?
A) The instrument must be paid to any holder.
B) The maker or drawer has personal liability on the instrument.
C) The instrument must be paid despite the defense if the defense is being asserted
against a holder in due course.
D) The instrument must be paid to any party presenting it for payment.
E) The defense is not effective against a holder of any kind.
Mallard Corporation is incorporated in Iowa, and does business in Ohio. This
corporation is:
A) a domestic corporation in both Iowa and Ohio.
B) a foreign corporation in both Iowa and Ohio.
C) a domestic corporation in Iowa, and a foreign corporation in Ohio.
D) a domestic corporation in Ohio, and a foreign corporation in Iowa.
E) a domestic corporation in Iowa, and an alien corporation in Ohio.
In a situation where one party to a contract has lied about the subject matter in order to
entice the other party to enter into a contract, the type of fraud that would most likely be
present is:
A) fraud in the inception.
B) fraud in the inducement.
C) fraud by concealment.
D) fraud by undue influence.
E) fraud in the substance.
Hillay made an oral agreement to sell her car to Rudy for $1,000. The keys and money
were exchanged the next day. Soon afterward, Rudy experienced problems with the car
and tried to rescind the contract based on the statute of frauds. Will he be successful?
Assume that a drug company has recently developed a new weight-loss drug that is
available only by doctor’s prescription. This drug has some significant side effects, but
is quite effective for helping individuals lose weight. The drug is being heavily
advertised directly to the public, resulting in large numbers of individuals contacting
their doctors in order to get a prescription for the drug. Because of the side effects, this
drug is intended only for persons who are severely overweight. Some of the advertising
for this drug emphasizes the happiness and beauty that can result when one is slender,
leading to many doctors over-prescribing the drug. Discuss the drug company’s actions
in light of the theories of the social responsibility of business.
The Overrock Typewriter Company has been in business for one hundred years, but
falling sales have forced several layoffs in the past twenty years. There has never been a
union at the company, but some workers have organized a union election. Just before
the election, Overrock’s owner, Jabo, promises the employees a significant raise and
additional days off for vacation and sick leave. The union loses the election. Jabo
claims that he did nothing wrong, since he did not threaten employees, and since he did
not promise benefits if they would vote against the union. Jabo asserts that he simply
gave his employees a raise and a few extra days off. What, if any, legal violations did
Overrock’s owner commit, and does the union have any recourse?
Assume that a city passes an ordinance that prohibits all smoking in restaurants and
bars, except in outdoor seating areas. Evaluate an equal protection challenge to this
ordinance.
Peter Johnson, LLP is a full-service registered public accounting firm which has the
ability to perform a variety of accounting services for its clients. They have been
retained by Spin Well Bicycles, a very large bicycle manufacturer, to conduct annual
audits They have had a good working relationship for three years without problems.
The chief executive officer of Spin Well contacts Peter Johnson, requesting that the
accounting firm begin providing additional services on behalf of Spin Well. What
services may Peter Johnson perform for Spin Well, and what services are they
prohibited from performing?
Howard is shopping at an expensive men’s clothing store and overhears a conversation
between an irate customer and one of the salespersons. The customer is upset about
some clothing that he had purchased the prior week. The salesperson agrees to refund
$300 to the customer, but tells the customer that he must come in the following day to
pick up a check for the refund amount. Howard pays close attention to the customer’s
complaints and learns of the exact clothing items that the customer is returning. Howard
then passes this information on to his brother so that his brother goes to the store,
impersonates the irate customer, receives the $300 check, and then cashes it after
forging the irate customer’s signature. Assuming that Howard’s brother cannot be
located, who will bear the loss in this situation and why?
Ann has contracted to be Paul’s agent for the sale of Paul’s home. The contract provides
that the duration of this agency is 120 days. Within the first week, Ann has found a
potential buyer and is involved in negotiations. The following week, Paul notifies Ann
that he is terminating the arrangement, but Ann proceeds to negotiate a sale with the
potential buyer. These negotiations became very tense, and Ann became frustrated with
the buyer’s unwillingness to move on the price and hit the buyer in the face, injuring
her. Because the buyer liked the home very much, Ann and the buyer did negotiate a
contract. Discuss the legal issues in this situation.
On January 2, 2011, Currier writes a check to Ives in the amount of $5,000 to pay a
debt. He accidentally writes January 2, 2010 on the check. The next day he has a fight
with Ives; after the confrontation, he realizes the date error, so he figures that the
mistake will make the instrument non-negotiable. Is he right? What will likely happen if
Ives presents the check to the drawee for payment on January 3, 2011?
Should there be such a tort as the intentional interference with contractual relations?
Even though one person might induce another to breach a contract, isn’t it ultimately the
choice of that other person to breach the contract? Why should one be liable if that
person was not the one who actually breached the contract?
Should the size of a package amount to a warranty that the contents fill the container as
much as practicable? There are numerous products where the packaging contains much
dead space. What do you think? What is you opinion of the common practice of
manufacturers to reduce the amount of product without reducing the package size?
Beth entered into a guaranty agreement with a furniture store in order for her sister, Sue,
to be able to buy furniture on credit from the store. There was a security agreement,
with the furniture pledged as collateral. Sue ceased making payments, claiming the
furniture was defective. Several months later, Sue successfully filed bankruptcy,
relieving her from all of her preexisting debts. Discuss this situation.
Tom and Jerry both work for Solid Wheels, a full service local bike shop, as bicycle
repairmen. Solid Wheels is a small incorporated business with twenty-one employees.
Tom is an alcoholic who tries hard to hide his problem. Jerry is a former drug addict
who has undergone treatment, but he still has occasional problems with Hallucinogen
Persisting Perception Disorder, commonly called “flashbacks,” even though he has not
used a recreational drug in eight years. Both have approached Mario, the company
owner, and have asked for accommodations under the Americans with Disabilities Act.
Does the Americans with Disabilities Act apply? Are Tom and Jerry “disabled,” and
therefore within the scope and coverage of the Americans with Disabilities Act? What
must Mario do, if anything, to comply with the Act?
Manny, Moe and Jack form a general partnership to operate a flower shop. After three
years, the business has gone so well that they have expanded to twenty-four profitable
shops. Each is married with children. Suddenly, Jack died. What happens to the
partnership, the assets and the profits of the business?
Max took his family and a couple of friends out to one of the best restaurants in town to
celebrate his recent promotion. Unfortunately, several members of the group suffered
injuries from items in the food that night. First, Max broke a tooth on an olive pit in one
of the olives in his Greek salad. Max’s wife shortly thereafter was injured by a piece of
glass in her soup. Then one of Max’s friends was hurt by some sharp bones in his
salmon filet. Max’s daughter was hurt by an olive pit that was in her mashed potatoes.
His other daughter was hurt be a crusty chicken foot in her chicken salad sandwich.
Max’s son was injured by biting into the bone in a piece of fried chicken. Wanting to
salvage some aspect of the evening, Max stopped at an ice cream shop on the way
home. Upon biting into his ice cream, Max broke another tooth on a piece of bone from
a cow. The next evening, as Max was straining his dinner before eating it, he wondered
which problems from the prior night would support a breach of warranty claim.
Assume that a CPA working as an internal auditor embezzles $50,000 from the bank
over the course of a year. The CPA has no previous criminal record. An unemployed
auto mechanic in the same town who has tried to find work unsuccessfully for 18
months robs a bank and gets away with $50,000. He used a gun in the robbery to
threaten bank employees, but the gun was not loaded and therefore he obviously did not
fire it. No one was injured. The mechanic has no previous criminal record. Which of
these persons deserves the greater sentence? How much greater should it be? In general,
should white-collar criminals receive stronger or more lenient sentences than the more
traditional criminal for roughly equivalent crimes?
Ron took his car to the muffler shop to have the left muffler of his dual exhaust system
replaced. From the waiting room he sees that the worker is preparing to remove the
right muffler. Ron says nothing, hoping that he’ll get a free muffler for the right side.
Discuss this situation.
The Aristocrats, a rock band contracted in writing with Johnson to perform for two
months at a night club. Before the contract was signed, the leader of the band orally
promised Johnson that she could terminate upon two weeks’ notice if the band did not
draw well. The promise was not in the written contract. The Aristocrats failed to draw
well. Johnson gave two weeks termination notice and then fired the band. The band
sued for the remaining time due under the written contract. Was evidence of the two
week termination agreement admissible?
Mary is considering filing bankruptcy because she is unable to pay her debts as they
come due. Mary has a steady job, and can pay some of her obligations. Mary is
especially worried about losing all of her assets, and is therefore afraid to file
bankruptcy. Mary is also worried about her ongoing relationship with some of her
creditors. Discuss Mary’s situation.
Bob and Sally have an agreement whereby Bob is to mow Sally’s yard for $900 for the
year. Bob’s mower breaks down, and he decides he no longer wants to mow. Instead, he
wants to paint. Bob talks to Sally who is not happy about the mowing issue. She tells
Bob that it would cost her $1,000 to get the other lawn service in the community to do
the mowing for the year. Bob offers to paint Sally’s house to settle the dispute. Sally
agrees. Bob never shows up to paint. Sally gets someone else to paint the house for
$800 and sues Bob for not mowing her yard. Can Sally do so, or is Bob entitled to get
the lawsuit involving mowing dismissed because if he breached any contract, it
involved painting?