Which of the following would not be considered an example of consideration?
A. A promise to be on time for class all semester.
B. A promise to stop drinking sports drinks.
C. A promise to walk the neighbor’s dog.
D. A promise to call the police if the neighbor’s alarm system should go off while they
are on vacation.
E. A promise to pay your employees as required by law.
Which of the following do appellate courts primarily handle?
A. Questions of law
B. Questions of fact
C. Questions of law and fact
D. Cases when they initially enter the legal system
E. Questions of law and fact, and also cases when they initially enter the legal system
Which of the following is true regarding the relationship between ethical relativism and
situational ethics?
A. Like ethical relativism, situational ethics requires that we evaluate the morality of an
action by imagining ourselves in the position of the person facing the ethical dilemma;
but unlike ethical relativism, situational ethics allows us to judge other people’s actions.
B. Like ethical relativism, situational ethics requires that we evaluate the morality of an
action by imagining ourselves in the position of the person facing the ethical dilemma
and also like ethical relativism, situational ethics allows us to judge the actions of
others.
C. While the two theories are similar, ethical relativism upholds the existence of
objective moral standards whereas situational ethics refuses to recognize the existence
of objective moral standards.
D. Ethical relativism and situational ethics are the same theory.
E. There is no relationship between ethical relativism and situational ethics because the
theories are fundamentally opposed to each other.
When acceptance is examined under the common law, how do the basic requirements
for a valid acceptance compare with those for a valid offer?
A. The basic requirements for a valid acceptance are materially different from those for
a valid offer.
B. The basic requirements for a valid acceptance parallel those for a valid offer.
C. The basic requirements for a valid acceptance are different from those for a valid
offer only because an offer must be in writing.
D. The basic requirements for a valid acceptance are different from those for a valid
offer only because an acceptance must be in writing.
E. The basic requirements for a valid acceptance are different from those for a valid
offer only because an offer must be revoked immediately but acceptance can be
withheld for a reasonable period of time.
How many days, if any, does Congress have in which to review proposed agency rules?
A. 0 because Congress does not review proposed agency rules
B. 20
C. 30
D. 60
E. 90
If a trademark is registered, what may the owner obtain in the event of infringement
from a person who used the trademark to pass off goods as being those of the mark
owner?
A. Damages only.
B. An injunction prohibiting the infringer from using the mark only.
C. An additional amount of damages computed as a multiplier of 5 times the original
damages but nothing else.
D. Damages, an injunction prohibiting the infringer from using the mark, and additional
damages based on a multiplier of 5 times the original damages.
E. Damages and an injunction prohibiting the infringer from using the mark.
Which of the following was the result in Omni Holding and Development Corp. v.
C.A.G. Investments Inc., the case in the text involving whether the plaintiff abandoned
personal property following the court’s order that it remove itself from the property?
A. That because no affirmative statement, either orally or in writing, was made
expressing the plaintiff’s intent to abandon the property, it would not be considered
abandoned.
B. That because no affirmative written statement expressing the plaintiff’s intent to
abandon the property was made, it would not be considered abandoned.
C. That the plaintiff had sufficient time to remove the property once the court issued its
writ of possession, the property was considered abandoned.
D. That regardless of the intent of the plaintiff, the property was considered abandoned
based on the amount of money the plaintiff owed to the defendant.
E. That regardless of the intent of the plaintiff, the property was considered abandoned
based on the fraud committed by the plaintiff as to the defendant.
Which of the following is true regarding defenses to negligence-based product liability
actions?
A. A defendant may only rely upon contributory negligence.
B. A defendant may only rely upon comparative negligence.
C. A defendant may only rely upon modified comparative negligence.
D. A defendant may rely upon the defense of contributory, comparative, or modified
comparative negligence, depending upon which defense is accepted by the state where
the case arose.
E. A defendant may not rely upon contributory, comparative, or modified comparative
negligence because no defenses are available in such a lawsuit. The only issue will be
the amount of damage.
For how many days prior to the filing of a Chapter 7 bankruptcy petition is a debtor
assumed insolvent?
A. 120
B. 60
C. 90
D. 45
E. 30
Under Article 2 of the UCC which of the following consists of the passing of title from
the seller to the buyer for a price?
A. A lease
B. A transaction
C. A transfer of use
D. A sale
E. A negotiated transfer
Which of the following is true regarding a signature on a document falling within the
statute of frauds?
A. There is no requirement of any signature of either party to satisfy the statute of
frauds.
B. Any party required to sign must sign at the beginning of the document.
C. Any party required to sign must sign at the end of the document.
D. Any party required to sign must sign both at the end and at the beginning of the
document.
E. So long as it is meant as a signature, a party required to sign may sign at any place
on the document.
Which of the following is false regarding intellectual property rights?
A. The classification as an employee or independent contractor is also important in
determining who owns the output of a work project.
B. When an employee completes work at the request of the employer, the product is
considered a “work for hire.”
C. The employer owns the copyright to a work for hire completed by an employee.
D. Federal law does not address the issue of when a work is a “work for hire” because
such issues are left to state legislatures.
E. Only by an agreement of both parties that a specific work is a work for hire may an
employer gain copyright ownership of the work of an independent contractor.
Which of the following is a way that a person may be held liable as a partner without
actually being named as a partner in a partnership agreement?
A. Partnership by common
B. Partnership by assumption
C. Partnership by estoppel
D. Partnership by equity
E. Partnership by arrangement
Which of the following adopts corporate bylaws?
A. Directors
B. Shareholders
C. Officers
D. Incorporators
E. Promoters
Why must federal legislation that affects business be based on an expressed
constitutional grant of authority?
A. Because the U.S. Congress passed a law to that effect.
B. Because the federal government has only those powers granted to it by the
Constitution.
C. Because President Lincoln issued an executive order to that effect.
D. Because President Washington issued an executive order to that effect.
E. Because it is a custom.
Which of the following occurs when a plaintiff implicitly assumes a known risk?
A. Implied assumption of the risk.
B. Express assumption of the risk.
C. Express assumption of the last-clear-chance doctrine.
D. Implied assumption of the last-clear-chance doctrine.
E. Assumption by incident.
Which of the following was the result in Eureka Water Company v. Nestle Waters North
America Inc., the case in the text involving whether a trade name is considered a good
or nongood?
A. The court ruled that a trade name is a good.
B. The court ruled that a trade name is not a good.
C. The court ruled that a trade name is a good if other items that are clearly goods are
involved in a contractual dispute; otherwise, it is a nongood.
D. The court ruled that a trade name is a good if it was considered a good in other
previously settled disputes between the same parties; otherwise, it is a nongood.
E. The court ruled that a trade name is a good if it is the only matter involved in a
dispute between parties; otherwise, it is a nongood.
Which of the following is a court-ordered judgment permitting a local court officer,
such as a sheriff, to seize a debtor’s property before the entry of a final judgment in an
underlying case?
A. Garnishment
B. Attachment
C. Contempt
D. Fixture
E. Law enforcement lien
“Sexual harassment ADR.” Jenny works at the Mexican fast-food restaurant which is
owned by an international company located in Mexico. Jenny is very angry with her
supervisor, Sleaze, as he has been making inappropriate sexual comments to her and
other employees. Jenny decides to sue and retains a lawyer, Brice. Brice talks with the
owners of the restaurant and is informed that Jenny signed an agreement to mediate and
also to arbitrate any claims. Jenny informed Brice about other employees who entered
into such agreements and later complained of harassment. Brice promises her that under
federal law, he is legally entitled to get copies of all documents used during any other
mediations and arbitrations and that he is also entitled to get detailed information
regarding what was said and agreed upon by them. Brice also tells Jenny that, while he
is not going to bring it up now, if they so choose, Brice and Jenny can avoid the
arbitration agreement because under a new federal law, such agreements cannot be
enforced if one of the companies involved is internationally based. He also tells Jenny
in response to her question about the possibility of mediation in her case to forget it
because mediation is pretty much the same thing as arbitration. Brice tells Jenny that an
option is to arbitrate and, if the outcome is bad at arbitration, file a court action in
federal court. Brice says that the federal court judge would not consider an arbitrator’s
decision in making a determination.
Was Brice correct when he told Jenny that if she lost at the arbitration level, a federal
judge would consider the case anew without consideration of the arbitration agreement?
A. Yes, because an action in court is considered completely separate from an arbitration
proceeding.
B. Yes, but only if Jenny filed an “Intent to Seek Further Relief” form with the
arbitrator.
C. No, because the arbitration agreement would completely bar Jenny’s ability to file a
court action.
D. No, because in a later court action, a federal judge in district court would only
reverse an arbitrator’s decision for certain reasons such as that the arbitrator displayed
bias or corruption.
E. Brice is correct only because an international company is involved.
What was the final result on appeal in the Case Opener involving whether the doctrine
of res ipsa loquitur applied to the lawsuit brought against landowners after the plaintiff
fell through a wooden dock located on the defendants’ property?
A. That the doctrine of res ipsa loquitur applied.
B. That the doctrine of res ipsa loquitur did not apply because there was insufficient
proof that the type of accident at issue would not normally happen in the absence of
negligence.
C. That the doctrine of res ipsa loquitur did not apply because there was insufficient
proof that the dock at issue was in the exclusive control of the defendants.
D. That the doctrine of res ipsa loquitur did not apply because it only applies in
contractual cases.
E. That whether or not the doctrine of res ipsa loquitur applied should be decided by the
jury.
“Lawn maintenance.” Bob and Susan ran a lawn maintenance company for several
years. They, however, encountered a dispute regarding the allocation of profit and
agreed to discontinue their business. They cannot agree on a number of issues involving
not only profits, but also winding up the business, disposing of equipment, and other
matters. They agreed to hire an arbitrator to settle their disputes. Bob suggested that
they use a local lawyer named George to arbitrate the matter, and Susan agreed. Susan
had some medical problems and requested that the arbitration be postponed for a short
time. Bob objected to her request. George would not agree stating to Susan’s request for
a postponement stating that any arbitration proceeding must be heard within 30 days
and that the time period was nearly over. George conducted the arbitration hearing. He
refused to hear any evidence from any witnesses explaining that he only had the
authority to hear testimony from Bob and Susan. Therefore, Susan was not able to
present testimony of a property appraiser she had hired. George proceeded to rule in
favor of Bob on all counts. Susan was very discouraged and discussed the situation with
her friend Sally. Sally said “My goodness! Didn’t you know that George and Bob play
golf together every week, that Bob is married to George’s cousin, and that Bob has
loaned money to George in the past?” Susan immediately calls George and asks him
about his connection with Bob. George acknowledges those connections. He tells Sally,
however, that he was perfectly fair and that there is nothing she can do. The Federal
Arbitration Act applies.
Which of the following is accurate regarding George’s refusal to hear testimony other
than that presented by Bob and Susan?
A. George was wrong. He had a duty to consider other relevant testimony as well.
B. George was correct.
C. George was correct, but only because the dispute involved the discontinuance of a
business.
D. George had a duty to consider other testimony, but only up to two other witnesses
per side.
E. George had a duty to consider other testimony, but only up to three other witnesses
per side.
Which of the following would originally have been personal property but became part
of realty after being permanently attached to real property?
A. A fee
B. A fixture
C. A consolidation
D. A mix
E. An enclosure
Which of the following is true if a third party comes to know of an undisclosed
principal’s identity and obtains a judgment against the principal?
A. The agent remains liable to the third party.
B. The agent remains liable to the third party unless the dispute involves an amount less
than $1,000 in which case the agent is released.
C. The agent remains liable to the third party unless the dispute involves an amount less
than $500 in which case the agent is released.
D. The agent is released from liability to the third party.
E. The agent is released from liability to the third party unless the principal resides in
another state and has not paid the judgment within 30 days from when it was rendered.
“Nails.” Mona and her friends Jack and Bobby, all U.S. citizens, want to open a nail
salon. They would all like to avoid personal liability for debts of the business and/or
wrongful acts of each other. They would also like to avoid taxation as much as possible.
Mona is in favor of a corporation and asks if there is any problem with that form of
business. Jack and Bobby say that they are concerned about double taxation with a
corporation and that they are in favor of a partnership, even if personal liability is a
concern. Mona said that she was concerned about the deductibility of losses if the
corporate form was chosen. She did some research and suggested an S corporation to
Jack and Bobby which she claimed would avoid the problem of double taxation.
What type of tax treatment would an S corporation provide in regard to losses?
A. Shareholders may deduct corporate losses from their personal income.
B. Losses may only be deducted from the S corporation’s taxes, not the shareholders’
personal income.
C. Losses may only be deducted from shareholders’ personal income when the S
corporation has shown a profit for at least two years.
D. Losses may only be deducted from shareholders’ personal income when the S
corporation has shown a profit for at least three straight years.
E. Losses may only be deducted from shareholders’ personal income when the
shareholder’s gains from other endeavors exceed losses from the S corporation.
Which of the following is true regarding an accord and satisfaction?
A. When amounts agreed upon are paid, the debt is fully discharged.
B. When amounts agreed upon are paid, the debt is fully discharged except for any late
charges due on the initial indebtedness.
C. When amounts agreed upon are paid, the debt is fully discharged except for any
interest due on the initial indebtedness.
D. When amounts agreed upon are paid, the debt is fully discharged except for any late
charges and for any interest due on the initial indebtedness.
E. When amounts agreed upon are paid, the debt is fully discharged except for any late
charges or interest due on the initial indebtedness, or attorney fees of the creditor that
are due.
“Unreliable Boyfriend.” Bobby needs a business law book. He hears that Gwen has one
for sale. Bobby asks his girlfriend Susie to buy it for him from Gwen if Susie can get it
for under $40. Susie sees Gwen in the hall and asks if she will sell the book for $30, and
Gwen agrees. They are between classes, and Susie does not mention that the book is for
Bobby although all the parties were on good terms, and the identity of the buyer should
not have affected Susie’s agreement. Later, however, Polly agrees to give Bobby her
used business law book. Bobby tells Susie that he no longer wants the book. Susie tells
Gwen about the situation with Bobby. Gwen replies that she does not care if Bobby
wants the book or not. Gwen says that she passed up a couple of opportunities to sell
the book because she thought she already had it sold and that she wants her money from
either Gwen or Bobby – she doesn’t care who pays.
Which of the following is true regarding whether Susie is personally bound on the
contract with Gwen?
A. Susie is not personally bound because she was acting on behalf of Bobby.
B. Susie is personally bound unless she can establish that Gwen would not have sold
her the book if she had known that Bobby was involved.
C. Susie is personally bound unless she can establish that Bobby has the funds with
which to pay Gwen.
D. Susie is not personally bound unless Bobby is legally insolvent.
E. Susie is personally bound.
Which of the following was passed in response to the growing number of identity theft
cases?
A. The Identity Crisis Act
B. The Fair and Accurate Credit Transactions Act
C. The Fair Credit Billing Act
D. The Credit Card Fraud Act
E. The Fair Credit Reporting Act
Which of the following Supreme Court cases established the right to counsel before
questioning by the police?
A. Whaley v. Reeves
B. Glover v. Smith
C. U.S. v. Glover
D. U.S. v. Parks
E. Miranda v. Arizona
Which of the following is true regarding a partner’s right to copy partnership records?
A. A partner has a right to copy partnership records.
B. A partner does not have a right to copy any partnership records.
C. A partner only has a right to copy partnership records that are not marked
“confidential.”
D. A partner only has a right to copy partnership records that are not marked
“confidential” and that are not being used in litigation.
E. A partner only has a right to copy partnership records that directly impact that
partner’s right to profits.
“Partnership Disruption.” Bruce, Sandra, and Minnie want to form a partnership to
assist students with resume preparation and employment searches. Bruce asks Sandra
and Minnie if they should draw up some sort of agreement. Sandra replies that a written
agreement is not legally required and that an oral agreement will set up a partnership.
Upon the urging of Bruce and Minnie, however, Sandra agreed to a written document
which they all signed setting up the partnership. It was a simple agreement listing the
partners that did not specifically address the right to management or allocation of
profits and losses. Sandra has an opportunity to assist some students with resumes and
does so without revealing her employment to the partnership. She keeps the funds she
receives for herself. When Bruce and Minnie found out, Sandra replied that she was
doing two-thirds of the partnership work, particularly in regard to management; that
she, therefore, had two-thirds of the voting rights; and that she voted that her actions
were appropriate. The articles of partnership did not address the right to share in
management, but Bruce and Minnie strongly disagreed with Sandra.
Did Sandra commit any breach of duty to the partnership?
A. Yes, she breached her fiduciary duty to the other partners.
B. Yes, she breached her duty of integrity to the other parties.
C. Yes, but only if the other partners can show that she made more income through
doing the work on her own than she would have made if she had done the work through
the partnership.
D. No, but only because she held two-thirds of the voting rights and could approve the
work herself.
E. No, she did not breach any duty.
What is the basis of consequentialism?
A. Deontology
B. Categorical imperatives
C. Inquiry into the consequences
D. Disregard of consequences
E. Act utilitarianism