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Bill did not keep a close watch on his ATM card. He discovered, however, when he
started to purchase some presents for his girlfriend that it was missing. Unfortunately,
over $1,000 had been fraudulent purchased using the card by the time he reported it
missing. The first fraudulent charge was made 45 days before Bill reported to his bank
that the card was missing. Bill is liable for which of the following?
A. $0
B. $50
C. $300
D. $500
E. $1,000
In the area of employee testing, which of the following isolates some skill used on the
job and directly tests that skill?
A. Content validity
B. Criterion-related validity
C. Construct validity
D. Object validity
E. Performance validity
Which of the following is an order issued by an agency to appear at a particular time
and place and provide testimony?
A. A subpoena
B. A subpoena duces tecum
C. A summons
D. A summons duces tecum
E. A required documented appearance
"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200
for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and
he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her
neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next
day and asks him why he did not paint her deck. He informs her that he did paint the
deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells
him not to worry because the neighbor will be required to pay him. Jackson says that if
the neighbor does not pay, then he expects all of his funds from Penny, because the
contract is executed.
What was the status of the agreement between Jackson and Penny as of Tuesday when
they agreed upon the price for the job?
A. The contract was executory.
B. The contract was executed.
C. The contract was novated.
D. The contract was formal.
E. The contract was a recognizance contract.
If a tenant fails to leave the property after the termination of the lease, a[n] ______
lease is created.
A. Allowable-term
B. Period-tenancy
C. Tenancy-at-will
D. Tenancy-at-sufferance
E. Definite-term
Which of the following refers to the ability to understand the structure of what someone
is saying and then apply a set of criteria to evaluate its worth?
A. Absolute skills
B. Critical-thinking skills
C. Cost-benefit skills
D. Reviewability skills
E. Traditional lawyer skills
If a check is not presented to a bank within ____________ of its date, the check is
considered stale check.
A. 30 Days
B. 90 Days
C. 6 Months
D. 9 Months
E. 1 Year
"Stolen Bicycle." Donnie borrowed the bicycle of his friend Karen. She told him that
she was happy for him to use it for free, but she would appreciate him taking good care
of it. Donnie said nothing in reply. Although Donnie lived in a high crime
neighborhood, he left the bicycle unlocked on his deck. The next morning, he
discovered that the bicycle had been stolen. Donnie told Karen that he was very sorry
about the bicycle. Karen told him that she expected him to pay for it. Donnie refused on
the basis that a thief took the bicycle. Donnie told Karen that he believes he knows the
identity of the thief and that since only Karen has the right to sue to recover the
property, he has no further responsibility.
Which of the following is true regarding Donnie's obligation to Karen?
A. He is liable for the theft of the bicycle arising out of his ordinary or gross
negligence.
B. He is liable for the theft of the bicycle arising out of his gross negligence.
C. He is liable for the theft of the bailed property caused by even the slightest lack of
due care on his part.
D. He is strictly liable for the theft of the bicycle.
E. He is not liable for the theft of the bicycle because of the doctrine of assumption of
the risk.
Which of the following was the result in the Case Opener, involving the check taken in
good faith by a market; later returned to the market based on a stop payment order; and
purchased from the market by the plaintiff who sued Cigna, the issuer of the check?
A. The plaintiff was allowed to recover under the shelter principle and
holder-in-due-course status.
B. The plaintiff was not allowed to recover because he took the check knowing of a
problem.
C. The plaintiff was allowed to recover because the market misrepresented the status of
the check.
D. The plaintiff was not allowed to recover because of the shelter principle and
holder-in-due-course status.
E. The plaintiff was not allowed to recover because the market misrepresented the
status of the check.
If an insurance policy covers an individual's life or health, the insurance is ______
insurance.
A. Personal
B. Unitary
C. Individual
D. Family
E. Protection
Which of the following involves a promise to buy or sell that the courts will require the
parties to obey?
A. Bilateral assent
B. A special agreement
C. Legal assent
D. Contractual affirmance
E. Legal affirmance
Which of the following occurs when one of the parties to a contract has so much more
bargaining power than the other that he or she dictates the terms of the agreement?
A. Unfairness
B. Cohesiveness
C. Disconnection
D. Unconscionability
E. Unprovable
In non-contractual relationships, which of the following may the agent seek in order to
force the principal to perform the contract?
A. Specific performance
B. Specific recoupment
C. Adequate performance
D. Reformation
E. None of these
How is the number of corporate directors determined?
A. In the discretion of the president of the corporation.
B. By vote of the stockholders.
C. According to the corporate articles or bylaws.
D. According to the number of shares issued.
E. According to the amount of profit projected by incorporators for the first year.
The reference to __________________ comes from the days when the contract was
literally sealed by a piece of soft wax into which an impression was made.
A. Implied-in-fact contracts
B. Implied-in-law contracts
C. Contracts under wax
D. Contracts under seal
E. Contracts under pressure
Which of the following is false regarding the trust system in India?
A. There are legal constructs, similar to trusts, allowing families to pass wealth from
generation to generation.
B. Civil law governs the trust system in India.
C. The family waqf resembles a trust, although the beneficiary of a family waqf must
have a religious, pious, or charitable purpose.
D. Waqfs and trusts have some similarities.
E. Some legal scholars have suggested that the religious roots of the waqf have made
this construct less flexible and responsive to change over time than the trust, with its
secular roots.
How much must an employee pay in order to continue health benefits under COBRA?
A. One half the policy premiums.
B. All the policy premiums, plus up to a 5 percent administrative fee.
C. Only whatever percentage of policy premiums the employee paid prior to leaving the
job.
D. All the premiums, plus up to a 2 percent administration fee.
E. Nothing because the employer must cover all premiums.
Which of the following allows a consumer to directly transfer funds from a banking
account to a merchant?
A. An electronic authorized system.
B. A direct pay system.
C. An authorized direct pay system.
D. A point-of-sale system.
E. A pay-by-electronics system.
Mary and Jason discuss the fact that a new teacher is being hired for business law at
their school. Jason mentions that he does not yet have a book, and Mary agreed to sell
Jason a used business law book for $30 for the upcoming semester. When the new
semester begins, the new business law teacher announces that a new custom business
law text will be used that is only available in the campus bookstore. Jason wants a
refund. Which of the following is Mary's best defense?
A. That Jason knew of the change of change of teacher and bore the risk of mistake.
B. That only a unilateral mistake was involved on Jason's behalf because Mary was
aware of the change and that, therefore, Jason is not entitled to a discharge.
C. That a mutual mistake was involved and that Jason is, therefore, not entitled to a
refund.
D. That transactions involving goods are not subject to the defense of mistake.
E. That she did not commit fraud and that, therefore, Jason is not entitled to rescission.
Which of the following occurs when a defendant makes a first appearance?
A. A magistrate determines whether there was proof beyond a reasonable doubt for the
arrest.
B. A magistrate determines whether there was probable cause for the arrest.
C. A magistrate determines whether the defendant was properly booked but not whether
the defendant was properly arraigned.
D. A magistrate determines whether the defendant was properly arraigned but not
whether the defendant was properly booked.
E. A magistrate determines whether the defendant was properly booked and also
whether the defendant was properly arraigned.
Which of the following is true regarding the liability of an accommodation party?
A. As a maker, an accommodation party has primary liability; but as an endorser, the
party has secondary liability.
B. An accommodation party has primary liability both as a maker and as an endorser.
C. An accommodation party has secondary liability both as a maker and as an endorser.
D. An accommodation party has primary liability as either a maker or endorser only if
all other parties to the instrument have filed bankruptcy.
E. An accommodation party has primary liability as a maker only if all other parties
have filed bankruptcy, and secondary liability in any other case regardless of whether
the accommodation party is the maker or endorser.
The document that directs a condominium association is called a[n] _____.
A. Declaration of Covenants, Conditions and Restrictions
B. Agreement of Association Rights and Duties
C. Contract of Recognition and Association
D. Acknowledgement of Ownership and Restrictions
E. Condominium Governing Agreement
"Thermal Imaging." Sam was engaged in the criminal activity of growing marijuana in
his home using heat lamps in the process. The police randomly selected his street to
search for illegal activity. Without any kind of a warrant, they used a thermal imager, an
instrument that detects heat emissions, to determine that he was possibly engaged in
illegal activity. The police immediately broke down Sam's door, searched his home, and
arrested him. The police officer in charge told Sam that he had no right to keep silent
and that he might as well confess. Sam proceeded to confess to growing marijuana and
a number of other crimes. The judge was so angry with Sam that he threw him in jail
for two months without any kind of hearing. Sam's lawyer, who just graduated from law
school, is not sure if the police acted legally in Sam's case by using the thermal imager.
Sam's lawyer also questions whether Sam had a right to remain silent, and he is
concerned that the judge has not granted Sam a hearing.
Which of the following is true on the issue of whether Sam had a right to remain silent?
A. The officer was incorrect, and Sam had the right to remain silent based on his
constitutional protection against self-incrimination.
B. The officer was correct that Sam had no right to remain silent, and there has never
been a constitutional right entitling a defendant to remain silent.
C. The officer was correct that Sam had no right to remain silent because while at one
time there was a constitutional right entitling a defendant to remain silent, that right was
repealed by constitutional amendment.
D. The officer was correct, and Sam had no right to remain silent because the right
against self-incrimination only protects against crimes involving physical harm to
another.
E. The officer was partially correct because while Sam had a right to remain silent
about other crimes, he did not have the right to remain silent about the drugs found in
the initial search.
As the law currently stands in most jurisdictions, do individuals have a general duty to
rescue strangers from perilous situations? Discuss whether or not you believe
individuals should have a duty under tort law to rescue strangers from perilous
situations and how you think the law should be written in that area.
"Grooming Dispute." Joshua has a successful dog grooming business called "Tub &
Dog." He registered the business name for trademark protection. Sandy noticed how
well Joshua was doing and opened his own business called "Tub & Dog II." Joshua is
unhappy about Sandy's use of the name. He is also unhappy because Sandy is copying
Joshua's practice of tying a bright orange bandana around each dog's neck immediately
after grooming. Joshua sued Sandy for trademark infringement based upon the name
and the use of the orange bandana. Sandy replies that one reason Joshua should not
prevail is that he is involved primarily in the sale of dog grooming products while
Joshua is involved in the grooming of dogs. Sandy claims that his use of the orange
bandana is very rare because he does very little grooming. Sandy also defends on the
basis that actual confusion among consumers does not exist. Joshua insists that he
should prevail and notes that he is considering expanding into the product sales area.
Which of the following is true regarding Joshua's claim that the name Sandy chose
violates his trademark protection?
A. In order to constitute trademark violation, Sandy's store would need to have been
called the exact same thing as Joshua's store without the "II."
B. A key inquiry is whether a similarity exists which is likely to cause confusion
applied from the perspective of the defendant.
C. The key inquiry is whether a similarity exists which is likely to cause confusion from
the perspective of the plaintiff meaning that the plaintiff has acted willfully.
D. The key inquiry is whether a similarity exists which is likely to cause confusion
applied from the perspective of prospective purchasers.
E. A key inquiry is whether the defendant sold goods or services to customers that
likely would have been customers of the plaintiff were the defendant not in business.
What are the three independent branches of the federal government?
A. Legislative, executive, and judicial.
B. Legislative, commerce, and safety.
C. Commerce, safety, and law enforcement.
D. Executive, safety, and law enforcement.
E. Law enforcement, judicial, and statutory.
"Peanut Allergy." Kitty, who had a love of baking, decided to open her own bakery. She
decided that she did not need and did not want to pay for a lawyer to advise her on
different forms of ownership. Unfortunately, Kitty had not paid attention in business
law class. She proceeded, with little thought, to simply open her business called Kitty's
Baking. Bobby came in to order some cookies for his girlfriend, Bitsy. Unfortunately,
Bitsy was allergic to peanuts. Bobby told Kitty that he needed some cookies for Bitsy
but that Bitsy had allergies to peanuts. Kitty told him not to worry because she would
make up a special batch just for him. Kitty had hired some assistants because she was
so busy. She told an assistant, Cathy, to make up several batches of cookies for different
customers including Bobby and told her to leave out the peanuts in Bobby's batch
because of the allergy. Cathy, however, forgot about the peanut allergy and proceeded to
make Bobby's cookies with peanuts. Bobby picked up the cookies and gave one to Bitsy
in the car while they were on the way to the movie in Bobby's new car. Bitsy became
violently ill, vomited in Bobby's car, and had to have her stomach pumped. Bobby and
Bitsy sought recovery from Kitty who told them that Bitsy's doctor bill and Bobby's car
cleaning bill were business debts, that the business was new and not making any money
at the moment, and that she had no personal liability. Following the incident involving
Bobby and Bitsy, Kitty discusses her problems with the bakery with her parents. Kitty's
parents would like to invest in her business and share in any profits, but they do not
want to share in the management responsibilities.
Which of the following is true regarding Kitty's statement that she had no personal
liability?
A. She was correct.
B. She was correct only if she can establish that she has paid all her business taxes on
time.
C. She was correct only if she can establish that she has at least 5 employees.
D. She was incorrect.
E. She was incorrect unless she signed an agreement with a financial institution in order
to get a loan for the business and agreed in the document that she would not accept
personal liability for any losses.
"Employee Picketing." Warren owns a unionized business called "Warren's" that
manufactures furniture. Employees are unhappy because they believe that during
negotiations for a collective bargaining agreement, Warren is improperly refusing to
give them a raise. The employees stop working for Warren's business and begin
picketing. At first the employees carry signs with slogans such as "Labor Dispute -
Warren Won't Pay a Fair Wage," meant to inform the public that a labor dispute has
resulted because Warren is cheap. When that, however, fails to change Warren's mind,
the employees begin staging pickets to prevent deliveries to Warren and to prevent
access to employees who want to work. They carry signs saying "No Access to Warren -
Shut Him Down."
Which of the following is the appropriate term for the work stoppage engaged in by the
employees?
A. A strike
B. A lockout
C. A sit down
D. A slow down
E. A walk out
"Puppy Woes." Sam promised to sell Linda a Welsh Corgi puppy for $700 but backed
out of the deal. Linda sued Sam in state court for breach of contract and asked for a jury
to hear the case. During jury selection, one juror, Ann, said that she did not think she
could be fair to Linda because Linda did not appear to be a dog lover. Linda's lawyer
asked that Ann not hear the case on the basis that she could not be fair, and the judge
excused Ann. Linda also decided that another juror, Sandy, looked at her in a grumpy
manner so, without a reason given, Linda's lawyer asked the judge to excuse that juror
from serving. The judge did so. After the jury was chosen, Linda's lawyer made a
statement to the jury as did Sam's lawyer. Linda's lawyer then called to the witness
stand Brenda, a friend of Linda, who heard the discussion held between Linda and Sam
regarding the purchase of the puppy. Brenda testified under questioning by Linda's
lawyer that she heard Linda say that she would pay $700 for the puppy and that she also
heard Sam say that he would sell the dog for that amount. Unfortunately for Linda,
Brenda also testified in response to questioning by Sam's lawyer that Sam distinctly told
Linda that he would only sell the puppy to her if Linda came with cash for the puppy
within seven days. Linda did not show up with the money for ten days and Sam had
already sold the dog to someone else. The judge ruled in favor of Sam.
The challenge to the juror who said that they could not be fair is referred to as a[n]
________.
A. Peremptory challenge
B. Challenge for cause
C. Stipulated challenge
D. Fairness challenge
E. Approved challenge
If the incorporator or promoters make an error or omission during the incorporation
process, courts may rule that the organization is not a corporation, in which case the
organization may be ruled a[n] ______ corporation.
A. Illegal
B. Defunct
C. Uncertified
D. Defective
E. Expelled
