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66. Phil's Corner Mart is a convenience store and gasoline station. A representative from the Environmental Protection
Agency (EPA) has just notified Phil that there is some leakage from his underground gasoline storage tanks. The
EPA representative explains to Phil that he will be issuing a citation for violation of federal environmental laws and
that Phil could be liable for clean-up costs and penalties. Which of the following statements is true?
a. Phil has been charged with a crime.
b. Phil has been charged with violation of a state statute.
c. Phil is facing civil penalties for the violation.
d. The EPA promulgates USC provisions.
67. A state statute that prohibits "baby buying" regardless of circumstances is a law that most closely follows which
theory of jurisprudence?
a. justice
b. natural law
c. positive law
d. custom
68. Administrative regulations are promulgated by:
a. Congress.
b. constitutional conventions.
c. administrative agencies.
d. state legislatures.
e. none of the above
69. Which of the following subjects is not generally covered by local ordinances?
a. zoning
b. curfews
c. dog licensing
d. partnerships
e. traffic
70. Criminal laws:
a. carry fines and/or imprisonment penalties.
b. are enforced by individuals.
c. are generally not enforced by government agencies.
d. are the same as private laws.
e. none of the above
71. On faxed documents, it is often difficult to tell if a signature is authentic, both because clarity is a problem and also
because signatures can be cut and pasted onto new documents from old documents. The Uniform Commercial
Code provides that anything placed on a document with the intent to authenticate it is a binding signature for a valid
contract. The UCC definition:
a. did not anticipate the technology problems arising from the fax.
b. will apply even in these fax situations.
c. is a common law definition.
d. is part of federal law.
72. Which of the following is not an example of a law that promotes order?
a. disclosure statutes for securities sales
b. curfew
c. speed limits
d. trespassing laws
73. Changes in laws that are made because of changes in technology illustrate which characteristic of law?
a. consistency
b. pervasiveness
c. flexibility
d. none of the above
74. Which of the following is an example of a law that provides compromises?
a. curfews
b. antitrust laws
c. traffic laws
d. union/management laws
75. The federal statute that carries imprisonment as a penalty for trading securities on inside information is an example
of a:
a. private law.
b. civil law.
c. procedural law.
d. criminal law.
e. all of the above
76. Common law:
a. no longer exists today.
b. began in the United States.
c. exists only in England.
d. was eliminated with the courts of equity.
e. none of the above
77. Which of the following is not a source of international law?
a. custom
b. treaties
c. private law
d. Code of Federal Regulations
78. The European Union:
a. was disbanded by GATT.
b. is an organization of European countries.
c. has established trade barriers.
d. has strict customs controls among the members.
79. Ellen Benson has been operating a small catering business out of her home. Business growth is now requiring an
office and kitchen facilities. Before expanding facilities, Ellen wishes to incorporate her business. Where would
Ellen find the laws of incorporation?
a. state statutes
b. zoning ordinances
c. Code of Federal Regulations
d. county ordinances
80. Which of the following is not a source of private law?
a. lease
b. employment agreement
c. ordinance
d. marriage prenuptial agreement
81. When is precedent not followed?
a. when circumstances have changed
b. when technology has changed
c. when there are changes in the factual circumstances from those in which the precedent was established
d. It is possible that precedent would not be followed in all of the above circumstances.
82. Anna Elleson has just opened her plumbing business in a small industrial park located within the boundaries of the
city of Tempe, Arizona. Upon opening her plumbing business, Anna receives a notice from the landlord that her
largest pieces of equipment (backhoes) may not be parked in the parking lot of the industrial park overnight. Anna
asks why and the landlord explains that there is a restriction in her lease. The restriction against parking equipment
in the complex is:
a. enforceable as a private law.
b. unenforceable unless a city zoning ordinance prohibits such parking.
c. an unconstitutional regulation of private property.
d. unenforceable unless signs are posted.
83. Anna's landlord of her business property in Tempe, Arizona notifies her that when the next lease period begins, her
rent will increase $45 each month. Where can Anna go to determine her rights with respect to the rent increase?
a. her rental contract
b. Arizona Revised Statutes
c. rent control ordinances
d. all of the above
84. Anna would like to incorporate her plumbing business, which is located in Tempe, Arizona. Where can she find out
the requirements for incorporation?
a. Tempe city ordinances
b. her rental agreement
c. Arizona Revised Statutes
d. none of the above
85. Anna feels, after negotiating her first few plumbing contracts, that there is a pricing conspiracy involving other
plumbing contractors that keeps her from really breaking into the market. Her business is located in Tempe,
Arizona. Where would Anna find the law on anticompetitive behavior?
a. Arizona Revised Statutes
b. United States Code
c. Tempe city ordinances
d. none of the above
86. John Renfro was recently downsized as part of a corporate restructuring at the jet propulsion firm where he works.
Renfro is confused, "Do I have any rights on my health insurance? What about unemployment?". Which sources of
law would have information for Renfro in answering his questions?
a. jurisprudence
b. ordinances
c. executive orders
d. federal statutes (U.S.C.)
87. Jane Dixon is going to create a limited liability company for operating her business that does billing for physicians
and medical laboratories. Jane is unsure whether her state allows for the creation of limited liability companies.
Advise Jane on the best place to look for finding whether she can create a limited liability company in her state: a.
United States Code
b. Code of Federal Regulations
c. municipal ordinances
d. state statutes
e. none of the above
88. Wexler Corporation has established a new policy on employee e-mails. The policy reads: "All e-mail sent using the
company server is the property of the company and is not private. Supervisors and managers shall have the right to
review such e-mails. Inasmuch as the company is liable for e-mail content, it reserves the right to review it." The
policy:
a. is an example of private law.
b. is an example of statutory law.
c. is an example of constitutional law.
d. is never enforceable.
e. none of the above
89. Which of the following is an example of law not enacted by an elected body?
a. municipal law
b. administrative regulations
c. state codes
d. United States Code
e. all of the above are enacted by an elected body
90. The CISG:
a. is an example of uniform state laws.
b. is an example of uniform international laws.
c. is an example of a war convention among several nations.
d. does not exist in the EU.
e. none of the above
91. Jim Ream is a freshman at Woise State. Jim is a computer whiz and has found a way to download movies from
DVDs and then transfer the files to others. “But, Jim,” you tell him, “that Grokster thing made all that illegal.” Jim
responds, “That was music, this is movies. Completely different. No legal problems.” Jim:
a. is correct because federal law does not apply to movies.
b. is correct because the precedent can be distinguished.
c. is incorrect because there is an infringement issue and Napster is precedent.
d. Both a and b
92. Frank Zelco is a manufacturer’s rep who represents the product lines of several manufacturers. Frank has worked
with his brother, Dion, in their two person firm for almost five years. They have no written contract, but they split
the profits. Frank would like to create a business organization and put their arrangement in a written contract.
Which sources of law will Frank need to help him do this?
a. ordinances
b. the UCC
c. state laws on business organizations
d. both b and c
93. During 2003, the White House asked its legal counsel for an interpretation of what constitutes torture of prisoners
of war and who is considered a prisoner of war. What sources of law will the legal counsel need to consult?
a. federal statutes
b. international treaties
c. ordinances
d. both a and b
94. The term “common law” has been in existence since:
a. the end of the Civil War.
b. the end of World War I.
c. 1492.
d. 1066.
95. When the music companies filed suit against the peer-to-peer file sharers on copyrighted music, they wanted legal
and equitable remedies. Which of the following is an equitable remedy?
a. money damages for the loss of royalties on the downloaded copyrighted songs
b. injunction against the facilitating software provider for the downloading
c. civil penalties for the infringement
d. both a and c
96. A court of chancery:
a. is another name for a court that provides equitable remedies.
b. is another name for a court that provides legal remedies.
c. never existed in the United States.
d. handles decisions regarding lottery disputes at the state level.
97. Ralph Waters is a developer who is interested in developing a planned adult mobile home community in Mesa,
Arizona. Ralph will need to incorporate and then learn the procedures necessary to begin the development. What
levels of law will affect Ralph? What types of laws will apply to him?
98. Give a sample citation for each of the following statutes/regulations:
a. United States Code
b. Code of Federal Regulations
99. In confirmation hearings of nominated judges and justices, what role may stare decisis play in the questioning of
the nominee?
100. Discuss the differences between public and private law.
101. Give an example of the type of law found at each level of government noted:
a. U.S. Constitution
b. congressional enactments
c. state legislation
d. federal administrative regulations
U.S. Constitution: Bill of rights protections like First Amendment; structure of
102. The Family Leave Act was passed by Congress in 1993. The Act requires certain employers (those of a certain
size) to give 12 weeks of leave to their employees for the birth or adoption of a child or the care of an ill spouse,
parent, or child. Answer the following questions:
a. In which set of statutes will this new law be found?
b. Is the statute a civil or criminal law?
c. Is the statute an example of legislating natural law?
103. Name three types of business arrangements governed, at least in part, by private law.
104. Draw the pyramid of laws and label each level of the pyramid with the appropriate source of law.
105. Give the source of statutory law for each of the following topics:
a. Uniform Revised Limited Partnership Act
b. 1933 Securities Act
c. law requiring bikes on public streets to be licensed
d. no taking of property without just compensation
e. establishment of the House of Representatives
106. For each of the following actions, describe the sources of law the individuals should consult:
a. obtaining a bicycle license
b. incorporating a company
c. determining how many feet of set back are required for residential construction
d. selling securities on a national exchange
107. Following the 1999 tragedy at Columbine High School in Littleton, Colorado, when 13 students were killed by two of
their armed classmates there was discussion of Second Amendment rights and gun control regulations were passed
by Congress. What sources of law were part of the discussions and legislation?
108. Give an example of an executive order.
109. In 2006, Congress passed the Pension Reform Act. The act amended the Employee Retirement Income Security
Act (ERISA). The act was passed when several companies declared bankruptcy and were discharged from paying
their pension obligations to retired employees. Discuss how the Pension Reform Act illustrates the purpose of law
and what purposes emerge from the new legislation.
110. Jason Friedman developed software that allows his fellow students to use the university server for purposes of
downloading movies, songs, etc. (all copyrighted), without being detected by the university, which monitors its users
for purposes of avoiding vicarious copyright infringement charges and suits. Jason does not sell the software to his
fellow students; he simply distributes it to them when they ask. Applying the decisions from the Grokster and
Viacom decisions, which of the following statements is correct?
a. Because Jason is not making any money from the software, he has done nothing to violate copyright laws.
b. Because Jason's software does not involve the ability for the actual downloading of copyrighted materials, he
has done nothing to violate copyright laws.
c. Because Jason’s software is not copyrighted, he has done nothing to violate copyright laws.
d. Because Jason’s software facilitates copyright infringement, he could be liable for that infringement.
111. Animo runs a website that allows amateur photographers to post photographs that they have taken for purposes of
getting their work recognized and with the hope that others will see their works and purchase them for use in ad,
textbooks, and other publications. Animo employees do not review the website, but they do remove photos when
notified that a posted photo is not posted with permission and is copyrighted by someone other than the person who
posted it. Applying the decisions from the Grokster and Viacom decisions, which of the following statements is
correct?
a. Animo is liable for copyright infringement because it does not check its cite for possible violations.
b. Animo is liable for copyright infringement once it is notified of a problem, but does not take action.
c. Because Animo does not accept payment from photographers for the posting and cannot be liable for
copyright infringement.
d. Animo is liable for copyright infringement only if the owner of the copyright notifies it of the infringement.
112. The laws on copyright ownership and infringement were passed by the U.S. Congress. Where would you find
those laws?
a. in the Uniform Commercial Code
b. copyright is governed by the common law
c. in the Federal Register
d. in the United States Code
