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Which of the following was the result in the Case Opener in which Hallmark claimed
that an arbitration ruling against a former employee should be upheld?
A. The former employee was barred from proceeding in court because of the binding
arbitration clause.
B. The former employee was barred from proceeding in court based on the statute of
limitations which expired while she was pursuing her remedies in arbitration.
C. The former employee was allowed to proceed in court because she had exhausted her
remedies in the arbitration arena.
D. The former employee could proceed with an action in court because there was no
consideration for the arbitration agreement and, therefore, no valid agreement.
E. The former employee could proceed with an action in court because, as a matter of
law, arbitration agreements are barred in the arbitration context.
Which of the following is true regarding the concept of negotiable instruments in
Japan?
A. The law governing securities in Japan is technical with little ambiguity or arbitrary
application.
B. The Japanese recognize the legal concept of yuka shoken, which means "valuable
securities."
C. The Japanese have a single legislative act governing both commercial paper and
investment securities.
D. The Japanese Commercial Code recognizes the term negotiable instruments.
E. Japanese law does not regulate investment securities.
Which of the following is true regarding a liquidated damages provision?
A. A provision for liquidated damages is illegal.
B. A provision for liquidated damages is void because of public policy.
C. A provision for liquidated damages is voidable because of public policy.
D. A provision for liquidated damages is enforceable so long as it is not punitive in
nature.
E. A provision for liquidated damages will be enforced regardless of whether it is
punitive in nature.
Which of the following is not a type of independent contractor?
A. Building contractor
B. Stockbroker
C. Elementary school teacher
D. Lawyer
E. Doctor
What is the rationale behind the Restatement Test of accountant liability to
third-parties?
A. The economy will benefit if investors recognize that they have sufficient rights of
recovery.
B. It is only fair to hold accountants liable if they are in privity with a plaintiff.
C. Much of what accountants do is prepare work for parties that are not their clients and
therefore, it makes sense for accountants to owe a duty to intended receivers.
D. Potential investors should have a route of recovery even if they could not be
foreseen by accountants.
E. The general public should have a route of recovery even if they could not be foreseen
by the accountant.
Which of the following is not a reason for provisional dissolution in Spain?
A. A partner fails to comply with provisions of the contract.
B. A partner inexplicably abandons the partnership and does not return on request.
C. A partner is declared bankrupt.
D. A partner fails to bring the capital he or she promised.
E. A partner uses capital belonging to the partnership in his or her own name.
Which of the following is the only authorized site for government-required free credit
reports from the three major reporting agencies?
A. AnnualCreditReport.com
B. FreeReport.com
C. AnnualCredit.edu
D. GovCredit.gov
E. KnowRights.org
Which of the following is responsible for running the day-to-day business of a
corporation?
A. Investors
B. Shareholders
C. Officers
D. Administrators
E. Members of the board of directors
Which of the following types of insurance provides a specific sum of money on the
death of the insured?
A. Casualty
B. Consumer
C. Risk
D. Life
E. Occurrence
A[n] ______ check is a check that is accepted at the bank at which it is drawn.
A. Cashier's
B. Certified
C. Acknowledged
D. Transferred
E. Drawee
Which of the following cases overturned prior precedent?
A. Brown v. Board of Education
B. Wygant v. Jackson Board of Education
C. Planned parenthood of Southeastern Pennsylvania v. Casey
D. Plessy v. Ferguson
E. Precedent cannot be overturned
Which of the following is true regarding strikes under the National Labor Relations
Act?
A. A union must contact the State Mediation Consortium to attempt to mediate its
demands before beginning a strike to achieve higher wages or better working hours.
B. A union must contact the National Mediation Service to attempt to mediate its
demands before beginning a strike to achieve higher wages or better working hours.
C. A union must contact the Federal Mediation and Conciliation Services to attempt to
mediate its demands before beginning a strike to achieve higher wages or better
working hours.
D. A union must contact the Judicial Arbitration and Mediation Services to attempt to
mediate its demands before beginning a strike to achieve higher wages or better
working hours.
E. A union has no obligation to inquire into mediation before beginning a strike for any
reason.
Which of the following is true regarding the origination of limited partnerships?
A. They originated in the United States approximately 50 years ago.
B. They originated in Europe over 500 years ago.
C. They originated in England approximately 200 years ago.
D. They originated in the United States approximately 200 years ago.
E. They originated in Mexico approximately 50 years ago.
Which of the following is a type of contract that does not fall within the scope of the
statute of frauds?
A. Contracts related to an interest in land
B. Promises made in consideration of marriage
C. Contracts related to any lease of land or equipment
D. Contracts whose terms prevent possible performance within one year
E. Contracts for one party to pay the debt of another if the initial party fails to pay
Which of the following is a tort?
A. A civil or criminal action in state court.
B. A civil or criminal action in state court or federal court.
C. A breach of contract.
D. A wrong or injury to another, other than a breach of contract.
E. A wrong or injury to another, including a breach of contract.
"Rent Increase." Conrad leased space for his hair salon from Brenda. After a few years,
Brenda decided to sell the building in which the hair salon was located to Greg. Brenda
told Conrad that the lease would be terminated and that whether he could stay or not
depended on what he could work out with Greg. Greg told Conrad that he could stay
only if he paid double the amount of rent he had been paying to Brenda and that if
Conrad complained, the rent would go even higher. Conrad told Greg that Brenda had
no right to make any changes and that he had the absolute right to continue paying the
same set amount to Brenda until the lease expired. The lease did not address transfers.
Which of the following is true regarding whether Brenda had the right to sell the
building to Greg?
A. Brenda did not have the right to sell the building to Greg during the term of the
lease; and Conrad has the right to get a court order preventing her from doing so.
B. Brenda had the right to sell the building to Greg during the term of the lease only if
she can establish financial exigencies.
C. Brenda had the right to sell the building to Greg only if there is less than one year's
time left on Conrad's lease.
D. Brenda had the right to sell the building to Greg only if there is less than six months'
time left on Conrad's lease.
E. Brenda had the right to sell the building to Greg.
Courts usually award punitive damages in cases in which the offender has committed
______.
A. Negligence
B. Strict liability offense
C. A res ipsa loquitur offense
D. A tort directly involving negligence per se
E. Gross negligence
Which of the following is the most typical way in which to provide constructive notice
of agency termination?
A. By telephone
B. By letter
C. By posting a notice at the courthouse
D. By newspaper publication
E. By e-mail
Which of the following is true regarding the limited liability company?
A. Limited liability companies originated in Europe more than 500 years ago, around
the same time as limited partnerships.
B. Limited liability companies originated in France more than 200 years ago.
C. Limited liability companies originated in U.S. more than 100 years ago.
D. Limited liability companies are a relatively new form of business organization.
E. Limited liability companies are the same thing as limited partnerships as far as
regulatory rules are concerned.
Which of the following is the making of threats for the purpose of obtaining money or
property?
A. Bribery
B. Criminal Fraud
C. Extortion
D. Larceny
E. Importation
"Saturday Auction." Barry, an auctioneer, held an auction on a Saturday morning. At the
beginning of the auction, Barry announced that the auction was being held without
reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register
with a stuck drawer that she thought would look great in her den. The auctioneer put the
cash register up for sale noting that the drawer was stuck but that it could probably be
fixed with little effort. Helen bought it for $20. When she got it home, she discovered
that it actually contained $5,000. Unfortunately, Helen had a teenage son named Tad
who started bragging to his friends about the family's good fortune. Barry heard about
what had happened and sued Helen for return of the $5,000. At the same auction, Mary
saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry
announced that $20 was clearly insufficient for the table, that it was worth much more
than that, and that he was taking it out of the auction. Chris started bidding on a
diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say
"Sold," Chris looked over at his girlfriend, decided that he was not sure about marriage,
and leaped up yelling "I revoke." Barry, however, immediately after, yelled "Sold."
Barry sues Chris attempting to obtain the money for the engagement ring. Barry also
sues Helen seeking to recover the $5,000 contained in the stuck drawer. Mary sues
Barry attempting to obtain possession of the table.
What is the likely result in the lawsuit Barry brought against Chris?
A. Chris will win because he properly revoked his bid before it was accepted.
B. Chris will win because bids made at an auction may be revoked at anytime within
ten days after the auction.
C. Chris will win because bids made at an auction may be revoked at anytime within
five days after the auction.
D. Chris will win because bids made at an auction may be revoked at anytime within
one day after the auction.
E. Barry will win because Chris had no right to revoke the bid.
Which of the following is a judicial order authorizing a local law officer to seize and
sell any of the debtor's real or personal nonexempt property?
A. A writ of execution
B. A writ of attachment
C. A writ of garnishment
D. A writ of foreclosure
E. A writ of mortgage
Which of the following is not one of the criteria listed in the text as indicative of
whether a worker is an employee or an independent contractor?
A. Whether the worker is engaged in a distinct occupation or an independently
established business.
B. The employer supplying the tools.
C. How the worker is paid.
D. The amount of time the worker has been involved in the trade or area at issue.
E. The length of time for which the worker is employed.
A[n] ______ prospectus is a prospectus with a warning written in red print at the top of
the page warning investors that the registration has been filed with the SEC but has not
yet been approved.
A. Red-line
B. Red-herring
C. Red-fish
D. Bait
E. Advertising
Federal administrative agencies are created by Congress through passage of ______
legislation, which is a statute that specifies the name, functions, and specific powers of
the administrative agency.
A. Administrative
B. Enabling
C. Statutory
D. Agency
E. Interstate
Which of the following damages are designed to put the plaintiff in the position he or
she would have been in had the contract been fully performed?
A. Equitable
B. Compensatory
C. Public
D. Legal
E. Punitive
Which of the following is false regarding the United Nations Convention on Contracts
for the International Sale of Goods ("CISG")?
A. Israel is a signatory of the CISG.
B. The United States applies the UCC but not the CISG.
C. The United Kingdom is not a signatory of the CISG and instead applies English
common law.
D. The CISG is a treaty.
E. Mexico has signed the CISG.
Under Article 2 of the UCC which of the following is defined as tangible things which
are movable at the time of identification to the contract for sale?
A. Articles
B. Merchandise
C. Goods
D. Attachments
E. Saleable things
In which of the following does an aggressor pay cash to target shareholders?
A. Hostile tender offer
B. Cash tender offer
C. Immediate tender offer
D. Substantial tender offer
E. Asset tender offer
"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 the most likely type of ownership held by Sally and Ruthy?
A. Joint tenancy
B. Tenancy in common
C. Tenancy by form
D. Tenancy by the entirety
E. Family tenancy
According to the court in Sperry-New Holland v. John Paul Prestage and Pam
Prestage, under the consumer expectations analysis, "if the plaintiff, applying the
knowledge of an ordinary consumer, sees a danger and can appreciate that danger, then
he cannot recover for any injury resulting from that appreciated danger."
As recognized by the court in Sperry-New Holland v. John Paul Prestage and Pam
Prestage, which of the following is true under the risk-utility analysis of product
liability?
A. That if the plaintiff, applying the knowledge of an ordinary consumer, sees a danger
and can appreciate that danger, then he cannot recover for any injury resulting from that
appreciated danger.
B. That a plaintiff must show that a retailer failed to do a proper risk-utility analysis
before the plaintiff can recover against the retailer.
C. That a plaintiff must show that a manufacturer failed to do a proper risk-utility
analysis before the plaintiff can recover against the manufacturer.
D. That a product is unreasonably dangerous if a reasonable person would conclude that
the danger-in-fact, whether foreseeable or not, outweighs the utility of product.
E. That a reasonable person must conclude that the use-in-fact of a product outweighs
the risk-utility of the product.
Which of the following is an individual who applies to the state for incorporation on
behalf of a corporation?
A. A promoter
B. An incorporator
C. A facilitator
D. An obtainer
E. A certification analyst
When courts rely on precedent, they are obeying ______.
A. Common analysis
B. Res judicata
C. Stare decisis
D. In rem process
E. Federal law
When is a demand instrument, such as a check, payable?
A. As soon as it is issued.
B. Twenty-four hours after it is issued.
C. Two days after it is issued.
D. At midnight the day it is issued.
E. One hour after it is issued.
