If Lorenzo is seeking an injunction against Brenda to prevent her from selling materials
that infringe his copyright, he is entitled to a jury trial if the value of the materials is
over $100.
a. True
b. False
A defense to a civil action brought under Section 10(b) and Rule 10b-5 of the 1934 Act
would be:
a. that the statute of frauds was not observed.
b. that the seller of the securities was not in privity of contract with the plaintiffs.
c. that the sellers did not intentionally or recklessly make a false representation.
d. All of the above.
Link negligently ran his car into John, causing $50,000 in injuries. Link was intoxicated
at the time of the accident. Can Link discharge this debt in bankruptcy?
a. Yes, claims based on negligence are dischargeable.
b. Yes, as long as he didn’t intend to hit John’s car.
c. No, such claims are not dischargeable in bankruptcy.
d. No, because Link breached a fiduciary duty.
Pizazz, Inc. leased the 34th floor in an office building in downtown Chicago. This
contract is governed by Article 2A of the UCC.
a. True
b. False
Carlos conveys his property Noah and Maxie. When Noah died, Maxie automatically
became the sole owner of the property. Noah and Maxie had a tenancy in common.
a. True
b. False
Ethics is the study of how people should act.
a. True
b. False
Zach decided to incorporate his business under the name of “Zamm.” In addition to
“Zamm,” the Model Act requires that Zach include one of the following words:
“corporation,” “incorporated,” “limited,” or “company” or an abbreviation thereof.
a. True
b. False
During the development of commercial law centuries ago, businessmen throughout
England and Europe:
a. settled disputes in trade organizations rather than in civil courts.
b. relied on a body of rules which became known as the lex mercatoria.
c. began to treat their own customs as law.
d. All of the above.
Vicki entered into a written contract to buy a car from Valley Motors. The written
contract included a provision that stated, “This writing is the full and final expression of
the parties’ agreement; anything said before signing or while signing is irrelevant.” This
is:
a. an integration clause.
b. a statute of frauds clause.
c. parol evidence.
d. an exculpatory clause.
A governmental classification based on gender would be subject to strict scrutiny.
a. True
b. False
If interrogatories are being used as a form of discovery, the party being questioned must
generally answer all the questions orally under oath.
a. True
b. False
Robert hired James, a CPA, to prepare his tax returns. James was too busy and
delegated the work to Sara, also a CPA. This delegation is:
a. enforceable, as Sara is also a CPA.
b. enforceable, as there was no expectation James would do the work.
c. not enforceable, as Robert hired James to perform personal services.
d. not enforceable, as this violates public policy.
Nominal damages are awarded in contract cases in which a damage amount was named
in the contract.
a. True
b. False
After her 18th birthday Lora may, by words or action, ratify a contract she made during
the previous year.
a. True
b. False
When the Food and Drug Administration prohibits a certain drug from being marketed
in the United States, this is:
a. private law.
b. an administrative regulation.
c. legal negativism.
d. an executive order.
An instrument is negotiable if it satisfies six standards. Which of the following is a
standard of negotiability?
a. The instrument can be oral provided there is proof beyond a reasonable doubt.
b. The instrument must be payable on demand.
c. The instrument must be conditional.
d. The instrument must state a definite sum of money.
LLCs have become popular for all except which of the following reasons:
a. management flexibility.
b. tax status as a partnership.
c. uniformity of law.
d. limited liability.
Under FTC rules, a customer can cancel a door-to-door sales contract within:
a. three business days of the sale.
b. five business days of the sale.
c. one calendar week from the date the sale was made.
d. a “reasonable time after the sale was made.
A company that makes a commercial with a person who does an excellent, realistic job
of pretending to be a famous movie star could be sued by the real actor for the tort of:
a. intrusion.
b. defamation.
c. commercial exploitation.
d. none of the above, since public figures are often imitated by other actors.
Kylie filed a Chapter 7 bankruptcy petition in which she exempted her home, valued at
$125,000. Kylie can exempt her entire home from all creditors if:
a. she claims her exemptions under the federal Bankruptcy Code.
b. she lives in a state that allows for an exemption amount of $125,000 or more.
c. she lives in a state that allows an exemption amount of $125,000 or more, she has
lived in that state for at least two years prior to the bankruptcy, and there are no secured
creditors with perfected liens against the home.
d. None of the above.
The Constitution protects states power by establishing a limited federal government.
a. True
b. False
Barden Corporation was convicted of violating federal RICO laws. Accordingly:
a. the government may file criminal charges against both the company and the
individuals associated with the criminal acts.
b. the government may file a civil lawsuit against the company to obtain injunctions and
other relief.
c. individuals may file civil lawsuits against the company for violating the RICO statute
to recover losses sustained by the criminal act.
d. All the above are correct.
Nikki was an tax accountant with HBR Accounting. Nikki decided to do some private
tax consulting in the evenings and on weekends. HBR is unaware of Nikki’s consulting
work. Which statement is correct?
a. Nikki has not breached a fiduciary duty to HBR since her consulting is done after her
work for HBR.
b. Nikki has not breached a fiduciary duty to HBR since her behavior does not reflect
badly on the accounting firm.
c. Nikki has not breached a fiduciary duty to HBR since Nikki has a contractual
relationship with her clients, not her employer.
d. Nikki has breached a fiduciary duty to HBR since she is competing with HBR.
In negotiating the purchase of a vehicle, the sales representative told Karla, “I guarantee
that you will be personally satisfied with this car.” The guarantee was written on the
contract when Karla purchased the car. If a controversy arises over Karla’s satisfaction,
the court will apply a subjective standard, which means Karla’s judgment must be
reasonable.
a. True
b. False
If the offer does not specify a type of acceptance, the offeree may accept in any
reasonable manner and medium.
a. True
b. False
A party may make either an assignment or a delegation, but cannot make both an
assignment and a delegation simultaneously.
a. True
b. False
Common law refers to:
a. law that is the same or similar in all the states.
b. law made when judges decide cases and then follow those decisions in later cases.
c. law made by legislatures in the form of statutes.
d. the legal systems of France, Germany, and Italy.
The Tavern’s secret recipe for its pizza sauce would be considered:
a. a trade secret, and an employment noncompete clause would be enforceable to
protect it.
b. a trade secret, and an employment noncompete clause would NOT be enforceable to
protect it.
c. just a secret recipe and not something the Tavern could protect in a noncompete
clause.
d. an exculpatory clause and not enforceable.
Mid-American Oil had a contract with NSB Company to supply 1,000 gallons of oil by
September 1. The contract contained a provision which required all modifications to be
written and signed by the company presidents. In early August, an executive of
Mid-American talked with the purchasing agent of NSB who orally agreed to two
shipments of oil; one in September and the second one in December. By September 30,
when only 500 gallons had been delivered, NSB sued. The likely outcome of this
lawsuit is:
a. NSB wins because the modification was not supported by new consideration.
b. NSB wins because the modification has to be in writing.
c. Mid-American Oil wins because the UCC governs this case and no new
consideration is required.
d. Mid-American Oil wins because new consideration was present.
Thompson raised 80 acres of corn, most of which he used to feed his own cattle. He
locally sold what he did not use. Based on the Supreme Courts ruling in Wickard v.
Filburn:
a. Congress has no authority over Thompsons activity based on the negative aspect of
the Commerce Clause.
b. Congress may regulate Thompsons farming activity because it has a substantial
economic effect on interstate commerce.
c. only Thompsons local government can regulate his farming activity.
d. only Thompsons state and local governments can regulate his farming activity.
Which of the following relationships will ordinarily not create an insurable interest?
a. Husband and wife.
b. Doctor and patient.
c. Debtor and creditor.
d. Chief executive officer and corporation.
The doctrine of stare decisis:
a. makes the legal process more expensive.
b. is an equitable remedy.
c. makes the law more predictable.
d. is unimportant to the common law.
Miles purchased a lawnmower with an attached warning that said, “The manufacturer is
not responsible in the case of an injury caused by the lawnmower.” If Miles is injured
because of a defect in the mower and sues the lawnmower manufacturer, he will most
likely:
a. lose, as he agreed to not hold the lawnmower manufacturer liable.
b. lose, as he assumed the risk.
c. win, as this warning would be unenforceable.
d. win, as all lawnmower manufacturers are strictly liable.