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Which of the following is a mark licensed by a group that has established certain
criteria for use of the mark, such as "U.L. Tested" or "Good housekeeping Seal of
Approval"?
A. Product trademark
B. Collective mark
C. Certification mark
D. Service mark
E. Physical activity mark
Which of the following was the result in U.S. v. Ruiz, the case in the text involving the
defending deputy superintendent of New Mexico's insurance division who was
convicted of offenses including mail fraud after he told insurers that they could avoid
paying the fines for violation of licensing requirements if they contributed to certain
charities?
A. That although the defendant violated certain laws, he did not violate the mail fraud
statute because he did not himself mail fraudulent solicitations which is required for the
offense of mail fraud.
B. That although the defendant used the mail to provide the illegal option to insurers,
that in and of itself was insufficient to establish mail fraud.
C. That because the defendant used the mail to provide the illegal option to insurers,
that in and of itself was sufficient to establish mail fraud.
D. That proof that the defendant directed that donations be made directly to charities
established the reasonably foreseeable result that the mail would be used which was
sufficient evidence to support his conviction.
E. That proof that the defendant directed that donations be made directly to charities
established the reasonably foreseeable result that the mail would be used but that such
foreseeability was insufficient to support his conviction.
"Junk Food." Mary Dogood, a member of the school board in ABC County, is appalled
at the amount of junk food in the schools. She convinces the state legislature to pass an
ordinance that no stores may sell any unhealthy junk food within 500 feet of any school
or day care center. A teacher of political science raises the issue of whether the
regulation is valid and is told that it is a valid exercise of the jurisdiction's police power
to protect its citizens. Convenience stores balk at the regulation and challenge it in court
claiming that the law impermissibly affects interstate commerce.
Restrictions on states' authority to pass laws that substantially affect interstate
commerce are referenced by which of the following?
A. The dormant commerce clause
B. The superior commerce clause
C. The interstate trafficking commerce clause
D. The tracking clause
E. The state authority clause
In which of the following involves tricking consumers into changing their phone
service to another carrier without their consent?
A. Slamming
B. Cramming
C. Stuffing
D. Fraudulent adding
E. Fraudulent transfer
According to the text, which of the following are the classes typically exempt from
seizure to satisfy a debt through a judicial lien?
A. (1) Household goods and (2) appliances
B. (1) Household goods and (2) appliances tools and instruments needed to carry on a
trade
C. (1) Household goods, appliances, and furniture (usually up to a set value), (2)
clothing, and (3) equity in a vehicle (usually up to a set value)
D. (1) Household goods, appliances, and furniture (usually up to a set value), (2)
clothing, (3) equity in a vehicle (usually up to a set value), and (4) tools and instruments
needed to carry on a trade
E. (1) Household goods, appliances, and furniture (usually up to a set value), (2)
clothing, (3) equity in a vehicle (usually up to a set value), (4) tools and instruments
needed to carry on a trade, and (5) cell phones (usually limited in number)
Which of the following references the ending of a lease before its stated term by mutual
agreement between the lessor and the lessee?
A. Forfeiture
B. Negation
C. Surrender
D. Refusal
E. Abandonment
"Beauty Shop Woes." When Janice went to work as a hair stylist in Rick's beauty shop,
she entered into an agreement with Rick whereby if she left she would not work for
another beauty shop within 50 miles for 2 years. Rick trained Janice in a number of new
techniques. After nine months, Janice was offered a great job down the street at a new
beauty shop, she quit Rick, and had a number of customers follow her down the street
to her new job. Rick claimed that she had signed a contract and had no right to go to
work at the new shop. Janice disagreed and told Rick that no judge in the country would
enforce such an agreement. Janice told Rick that she was more worried about a
customer who was threatening to sue her because her hair turned green after Janice
worked on it. Janice said that she knew that the customer's hair was damaged; but that
she told the customer that odd results could result from a dye attempt, and had her sign
a contract that she released Janice from all liability and would not sue. The customer,
however, sued anyway.
What type of agreement did Janice have the customer with green hair sign?
A. Adhesion
B. Exculpatory
C. Procedural
D. Substantive
E. Malfeasance
Mike gets angry because Ben made a better grade on a test than he did. They get into an
argument, and Mike takes a swing at Ben intending to hit him. Ben shoves Mike in
order to avoid the blow. Which of the following is true regarding Ben's actions?
A. Ben has committed a battery.
B. Ben has committed both an assault and a battery.
C. Ben has not committed an assault or a battery because he acted in self-defense.
D. Ben cannot rely on self-defense because he was involved in the argument and not
completely innocent.
E. Ben cannot rely upon self-defense because his life was not in danger.
In which of the following orders of ascending strength may marks fall?
A. Generic, suggestive, descriptive, arbitrary or fanciful.
B. Descriptive, generic, suggestive, arbitrary or fanciful.
C. Arbitrary or fanciful, generic, descriptive, suggestive.
D. Generic, descriptive, suggestive, arbitrary or fanciful.
E. Suggestive, generic, descriptive, arbitrary or fanciful.
"Property Claims." Bruce sells his home to Sally and her mother, Ruthy. The deed and
documents of ownership held by Sally and Ruthy are written such that Sally and Ruthy
may each sell or devise her interest in the property. Bruce provides Sally and Ruthy
with a general warranty deed. The deed and other documents of sale contain an
easement giving George a right to cut across the property in order to obtain access to an
adjoining lake. George had purchased the easement from Bruce a few years earlier.
After Sally and Ruthy moved in, they saw George cutting through the yard with his
fishing pole. They told him to get out. He told them about the easement, but Sally told
him that she was the new owner and that she was not accepting it. The next week Alice,
the next door neighbor, came over to visit and told Sally and Ruthy that she actually
owned a good bit of the yard that was conveyed to Sally in her deed from Bruce and
that she would like to sell it to Ruthy and Alice. Alice explained that some years prior to
Bruce's ownership, she had purchased the property from a previous owner. It turns out
that Alice had actually recorded her interest, but it had been inadvertently missed when
the property was sold to Sally and Ruthy. Sally calls Bruce and tells him to straighten
out the problem with Alice. Bruce tells her that he is finished with the property and that
all problems now belong to her and Ruthy.
Which of the following is true regarding Bruce's statement that he has no obligation to
be involved with the dispute with Alice?
A. He is correct but only because he was not the previous owner who allegedly
transferred the interest to Alice.
B. He is correct but only if in addition to not being the transferor to Alice, he had no
knowledge of any previous transfer to Alice.
C. He is correct.
D. He is incorrect, and his general warranty deed likely imposes upon him a duty to
resolve the dispute involving Alice through proving her wrong, settling with her, or
other means.
E. He is incorrect only if Alice was truly granted the property and is not engaged in
fraud.
Of which of the following must a defendant be informed before questioning?
A. That the defendant must answer questions, or there will be a presumption of guilt at
trial.
B. That statements made to law enforcement before arraignment may not be used
against the defendant in court.
C. That the defendant has the right to consult an attorney before speaking to the police.
D. That unless the defendant can afford any attorney, the defendant will not have an
attorney.
E. That the right to an attorney does not begin until after the defendant is arraigned.
Under the UCC, how can proper presentment be made?
A. By any commercially reasonable means.
B. Only through a clearinghouse procedure.
C. Only at a place designated in the instrument.
D. By any commercially reasonable means, through a clearinghouse procedure, or at a
place designated in the instrument.
E. By any commercially reasonable means or at the place designated in the instrument,
but not through a clearinghouse procedure.
"Leaky Tub and Flaming Watercraft." Charles finished college, got a good job, and
decided to sell some used toys and buy newer ones. A used hot tub with a leak in it and
a personal watercraft were at the top of the list. Charles offered to sell to Constance the
hot tub for $500. Constance was interested but not willing to pay $500. She said "I'll
give you $400." Charles said that he would think about it. Later, the same day, Charles
offered to sell Donna the hot tub for $500. Donna said "Would you consider $450?"
Charles said he would think on it. A few minutes later, Everett who had heard that
Charles wanted to sell the hot tub accepted Charles' offer to sell for $500, and they
agreed that the transfer would be made the next day. A few minutes later, Constance
called saying that she accepted Charles' offer to sell the hot tub for $500. A few minutes
after that, Donna called and told Charles that she accepted his offer to sell the hot tub
for $500. Charles told Constance and Donna that he had already sold it, and they are
angry, threatening to sue. Charles offered to sell the personal watercraft to Joan for
$800. She said that she would think it over and let him know the next day.
Unfortunately, through no fault of anyone, there was a fire at Charles' home that night
and the personal watercraft burned. Joan called the next day and accepted before
Charles could tell her the watercraft burned. When she found out about the fire, Joan
told Charles that he had better come up with another watercraft, or she was going to
sue.
Which of the following is correct regarding the final status of the negotiations between
Donna and Charles?
A. Donna rejected Charles' offer by making a counteroffer.
B. Donna did not reject Charles' offer because she merely made an inquiry.
C. Donna cannot accept Charles' offer because he already sold the personal watercraft,
and that terminated the offer to her.
D. Donna cannot accept Charles' offer because it was revoked when he sold the hot tub
to Everett.
E. Donna cannot accept Charles' offer because she did not do so in her initial
conversation with Charles.
Which of the following permits repeated transactions and assesses a finance charge on
unpaid balances?
A. Open-end credit line
B. Closed-end credit line
C. Debt-based credit line
D. Uncollateralized credit
E. Collateralized credit
Which of the following is in effect not a contract at all?
A. A voidable contract
B. An executory contract
C. An implied contract
D. An executed contract
E. A void contract
Parties in a dispute before an administrative law judge may reach a settlement via a[n]
____.
A. Certified agreement
B. Approved contract
C. Sealed compromise
D. Consent order
E. Administrative acknowledgement
Through which of the following does the government primarily regulate workplace
safety?
A. The Occupational Safety and Health Act
B. The Fair Labor Standards Act
C. The Wagner Act
D. The Taft-Hartley Act
E. The Workplace Enhancement Act
"Scheming Friends." Willy very much wants to rent a basement apartment in Weaver's
home. Willy threatens to tell all Weaver's friends that he and Weaver had been arrested
for illegally smoking marijuana unless Weaver rents the apartment to him for $100 per
month. (The information regarding the arrests is true.) Weaver reluctantly agrees to rent
the apartment to Willy for $100 per month. Willy also wants to buy Weaver's car.
Weaver runs back the odometer on the car before Willy test drives it. Willy is impressed
by the low mileage and agrees to buy the car. Weaver offers to sell Willy a ring for
Willy's fiancée. Weaver tells Willy that the ring is a diamond and believes that to be
true. After the deal is made, however, a jeweler friend of Weaver informs him that the
ring is a fake. When Willy shows up with the money, Weaver says nothing. He just
hands Willy the ring and takes the money. Later, Willy finds out that the odometer was
run backwards from another friend to whom Weaver confided. Willy also finds out from
his girlfriend that the ring is a fake.
Which of the following is the proper legal term, if any, for Weaver's action in regard to
running back the odometer?
A. Concealment.
B. Nondisclosure.
C. Active duress.
D. Conscious disregard.
E. There is no legal term because although he acted illegally, Willy had no duty to
disclose his action and incriminate himself.
"House Painting." Susie Smith signed a check agreeing to pay, "Annie Greene, Mary
Hodge," $1,000. The payment was for painting her house. A problem with the note was
that it spelled Annie's last name, "Greene," whereas Annie spells it simply, "Green."
Annie and Mary were having a disagreement regarding how to split up the funds for
painting the house. Annie proceeded to sign the check on the back, "Annie Green," and
presented it to Bill Brown to satisfy a debt that she owed him. Bill Brown endorsed the
check on the back, "Bill Brown, without recourse," and gave it to his nephew, Sam, who
took it to the bank for payment. Meanwhile, Susie has stopped payment on the check
because following a rain storm, all the paint on the house looked spotted. Mary is
unhappy because she did not obtain any of the funds and stated that Annie could not
legally endorse the instrument because it misspelled her name and also because she,
Mary, did not sign it.
What is the effect of the designation, "Bill Brown, without recourse?"
A. It has no effect on any subsequent holder.
B. It has no effect on anyone, including, but not limited to, any subsequent holder.
C. It means that Bill Brown does not provide any guarantees and that if the instrument
is later dishonored, he cannot be held liable.
D. It means that Bill Brown is providing that any subsequent holder cannot be held
liable.
E. Bill Brown is providing that neither he nor the person who transferred the instrument
to him cannot be held further liable to any subsequent holder.
"Friends and Family." Mindy was very close to her family and friends. She also liked to
spend and had a large amount of consumer debt for items such as jewelry, clothing, a
personal watercraft, and a new car. Mindy was having problems making her credit card
payments as they became due. She, however, wanted to make every effort to pay her
debts. She had borrowed money from her mother for some jewelry and repaid that loan
on January 1st. She repaid a loan to her business partner on May 15th of the same year.
On September 1st of that year, she also repaid a loan to Friendly Jewelry Store because
she wanted to remain on good terms with the manager. Unfortunately, Mindy was
simply unable to continue making payments and on November 1st of that year, she filed
a voluntary petition for bankruptcy relief under Chapter 7
Assuming Mindy's mother received more than would have been received through
bankruptcy proceedings, which of the following is the most likely result of a claim of
preferential payment based upon the payment to the mother?
A. The payment was not preferential because it was made over 90 days before the filing
of the bankruptcy petition.
B. The payment was not preferential because it was made over 120 days before the
filing of the bankruptcy petition.
C. The payment was not preferential because it was made over 180 days before the
filing of the bankruptcy petition.
D. The payment was preferential because it was made to a family member and made
within two years of the filing of the bankruptcy petition unless Mindy can establish that
she was not insolvent when she made the payment.
E. The payment was preferential on the basis that it was made to a family member
within two years of the filing of the bankruptcy petition only if the trustee is able to
demonstrate that Mindy was insolvent when she made the payment.
"Baseball Trophies." To recognize baseball players on his team, Bobby ordered from
Bruce 10 trophies showing a baseball player swinging a bat. The trophies were to be
delivered on May 1st for an award dinner to be held on May 20th. Bruce was unable to
obtain trophies showing a baseball player swinging a bat, but by May 13th, he did locate
some trophies with a baseball player holding a bat. The difference did not substantially
impair the value of the trophies, and thinking that the trophies would be acceptable,
Bruce delivered them on May 14th. Bobby glanced at the trophies, paid for them with a
check, and said nothing. On May 16th Bobby looked at the trophies more closely and
decided that he did not like them. He canceled payment on Bruce's check, and Bruce
sued him for payment.
Which of the following is the most likely result if Bruce claims he had reasonable
grounds to believe the trophies were acceptable?
A. He would be correct because Bruce's payment by check for the goods upon their
delivery provided Bobby with a measure of reliance that they would be acceptable.
B. He would be incorrect because Bruce did not confirm in writing that the trophies
were acceptable.
C. He would be incorrect because Bruce did not confirm orally or in writing that the
trophies were acceptable.
D. He would be correct because of the special UCC exception for sports-related items.
E. He would be correct because of the special UCC exception for school-related items.
"Baseball Trophies." To recognize baseball players on his team, Bobby ordered from
Bruce 10 trophies showing a baseball player swinging a bat. The trophies were to be
delivered on May 1st for an award dinner to be held on May 20th. Bruce was unable to
obtain trophies showing a baseball player swinging a bat, but by May 13th, he did locate
some trophies with a baseball player holding a bat. The difference did not substantially
impair the value of the trophies, and thinking that the trophies would be acceptable,
Bruce delivered them on May 14th. Bobby glanced at the trophies, paid for them with a
check, and said nothing. On May 16th Bobby looked at the trophies more closely and
decided that he did not like them. He canceled payment on Bruce's check, and Bruce
sued him for payment.
What is the most likely effect of Bruce's failure to cure the problem?
A. In order to receive payment, Bruce must provide correct trophies; otherwise, he is
not entitled to payment.
B. Bobby's actions effectively prevented Bruce form an opportunity to cure any defects
and, therefore, Bobby's actions cannot be said to have effectively rejected the goods
resulting in him owing Bruce.
C. Bobby will be required to take a 50% reduction on the price to be paid for the goods.
D. Bobby will be required to take a 30% reduction on the price to be paid for the goods.
E. Bobby will be required to take a 20% reduction on the price to be paid for the goods.
"Family Dispute." When Trudy and Mark married, they both had children from
previous marriages. After their marriage, Trudy and Mark purchased a home together as
tenants by the entirety and lived there for many years. Mark died when he was 93 and
Trudy was 95. Mark's will left any property he owned to his son, Alex, who promptly
told Trudy that she needed to get out of the house. Trudy told him to forget it. Trudy
died a week later. Her will left everything she owned to her daughter, Samantha, who
moved in the home and refuses to leave. Mandy, who had loaned Mark $10,000, has
filed a claim against any heir of Mark or Trudy, including Alex and Samantha, claiming
an interest in the home to satisfy the debt Mark owed her.
Which of the following would be the most likely result regarding Alex's claim to
ownership of the house upon Mark's death?
A. Regardless of the form of ownership held by Trudy and Mark, Alex would get the
house because Mark left all his property to Alex in his will.
B. Because of the form of ownership held by Trudy and Mark, the will could have
conveyed the house to Alex only if the house was specifically mentioned; therefore,
since the will simply referenced property, Alex would not get the house.
C. Alex would get the house as Mark's child regardless of whether Mark left it to him in
the will.
D. Alex would get ownership of the house, but he would have a duty to allow Trudy to
live there the remainder of her life.
E. Alex would not receive the house upon Mark's death because full ownership
immediately passed to Trudy.
Which of the following is a tax levied on imported goods?
A. Non-tariff barrier
B. Embargo
C. Indirect barrier
D. Tariff
E. Dumping
What does the UCC provide regarding the availability of punitive damages?
A. That the nonbreaching seller may claim against a breaching buyer who is guilty of
malice 20 percent of the purchase price or $500, whichever is less, as punitive damages.
B. That the nonbreaching seller may claim against a breaching buyer who is guilty of
malice 20 percent of the purchase price or $500, whichever is more, as punitive
damages.
C. That the nonbreaching seller may claim against a breaching buyer who is guilty of
malice 30 percent of the purchase price or $1,000, whichever is less, as punitive
damages.
D. That the nonbreaching seller may claim against a breaching buyer who is guilty of
malice 30 percent of the purchase price or $1,000, whichever is more, as punitive
damages.
E. Nothing other than in its voiding of liquidated damages that are punitive in nature.
"Wedding photos." Bobby took a number of wedding photos at Jill's wedding. He was
paid as the photographer. On all of the photographs, he appropriately noted in the
bottom right-hand corner information showing that he was claiming copyright
protection. Jill came to see Bobby three years after the initial photographs were taken
and requested that he grant her permission to run off as many copies as she wanted at
the local photo shop from the pictures that she initially purchased. The photo shop had
refused to reproduce the photographs without his permission. When he refused to give
her permission to do so, Jill started a heated argument. She told Bobby that photographs
are not entitled to copyright protection. She also told him that even if he was correct
that there was some copyright protection, it only lasted for two years and that, in any
event, damages for copyright infringement are unavailable.
Which of the following is correct regarding Jill's claim regarding copyright protection
on a photograph only extending for a maximum of two years?
A. She is incorrect, and a copyrighted work that is reproduced with the appropriate
notice affixed is protected for the life of its creator plus seventy years.
B. She is incorrect, and a copyrighted work that is reproduced with the appropriate
notice affixed is protected for the life of its creator plus fifty years.
C. She is incorrect, and a copyrighted work that is reproduced with the appropriate
notice affixed is protected for the life of its creator plus thirty years.
D. She is incorrect, and a copyrighted work that is reproduced with the appropriate
notice affixed is protected for the life of its creator plus ten years.
E. She is correct.
"Trick or Treat?" Penny has significant credit card debt following her diving trip with
her boyfriend, Sam, to the Grand Cayman islands. Some of the diving trips cost more
than she expected, and these extra expenses were unforeseen. Penny recently took a
business law class and thought that she might be able to find a way out of her troubles.
She owed $2,000 to Credit Card Company A and $3,000 to Credit Card Company B.
She also owed $2,000 to the local dive shop for diving equipment she purchased for the
trip. Penny is in negotiations with the dive shop over that amount because she had a
problem with a mask fogging on the trip and had to replace it while on the trip at a
charge of $100. While the mask issue did not significantly interfere with the trip, Penny
thought that she should get at least some deduction on the overall bill. Penny called
Credit Card Company A and told them that she was a poor student and could not afford
to pay the entire $3,000 she owed. The representative of Credit Card Company A, who
was working her last day, told Penny just to pay $50, and that would be considered
payment in full. The representative sent Penny an e-mail to that effect. Penny was very
pleased and went right out and quit her job at the campus bookstore because she did not
really like dealing with student problems and thought that with the reduction from
Credit Card Company A, she would have no problem in regard to having extra money.
Although her parents supplied her with a large monthly allowance, Penny had the job at
the bookstore so that she would have more money for clothes shopping and fun
activities. In relation to Credit Card Company B, Penny called up and once again pled
her case as a poor student. She talked Credit Card Company B into taking a used car
with a blown-up engine worth around $1,000 in exchange for the debt. Penny did not lie
about the value of the car, but she made it sound as good as possible. Transfer details
regarding the car were worked out through e-mail. Finally, Penny sent the dive shop a
check for $1,000 marked "paid in full." Much to her surprise and pleasure, the dive
shop did indeed cash the check. Penny, however, was distraught to find that within 30
days, Credit Card Company A sent her a bill for $1,950; Credit Card Company B sent
her a bill for $3,000; and from the dive shop she received a check for $1,000 along with
a bill for $2,000. Faced with all these claims, Penny decided to look for work. She
ended up two weeks later with a job selling beauty products that she liked much better
than the bookstore job. It did not require dealing with pesky students. Assume all credit
card company representatives had authority to make the agreements at issue.
Which of the following should be the result in regard to Penny's obligation to Credit
Card Company B?
A. That the company is not bound by its promise because the debt was liquidated.
B. That because Penny offered and the company accepted a different performance in
discharge of the obligation, the company is bound.
C. That because the car is worth only $1,000, nowhere near the amount of the debt, the
company is released from its promise.
D. That under equitable principles, upon disaffirming the agreement, Penny may keep
the car, and the company must take a deduction of 50% on all amounts due.
E. That under equitable principles, upon disaffirming the agreement, Penny must
transfer the car to the company, and the company must take a deduction of 50% on all
amounts due after sums received from the sale of the car are credited to Penny's
account.
Which of the following is a voluntary association between two or more persons who
co-own a business for a profit?
A. Co-owned business
B. Partnership
C. Joint proprietorship
D. Joint corporation
E. Joint entity
Which of the following types of damages are designed to punish the defendant and
deter him and others from engaging in similar behavior in the future?
A. Consequential
B. Punitive
C. Liquidated
D. Nominal
E. Repugnant
How many states still allow a contract without consideration to be enforced if it is under
seal?
A. Five
B. Eight
C. Ten
D. Twenty
E. Thirty
Which of the following does the Federal Trade Commission require if a company
wishes to claim that its products are "Made in the U.S.A."?
A. That the claim not be used unless all, or virtually all, of the product's components
and labor are of U.S. origin.
B. That the claim not be used unless absolutely all of the components and labor of the
product are of U.S. origin.
C. That the claim not be used unless at least 75% of the product's components and labor
are of U.S. origin.
D. That the claim not be used unless at least 50% of the product's components and labor
are of U.S. origin.
E. That the claim not be used unless at least 55% of the product's labor and components
are from Canada, Mexico, or the United States.
