Which of the following is false under federal law regarding employer monitoring of
employee telephone calls?
A. Employers cannot listen to the private telephone conversations of employees.
B. Employers may be subjected to fines of up to $10,000 for violations.
C. Employers may ban personal calls during working time.
D. To check for compliance, employers may monitor calls so long as they discontinue
listening to any conversation once they determine it is personal.
E. Employers must give employees access to a telephone and the ability to make
personal phone calls at some point during the work day.
Which of the following is false regarding the dissolution of a partnership in Germany?
A. If a partner wishes to leave a partnership, he or she must give notice of his intention
to do so at least six months before the end of the business year.
B. On receiving notification of a partner of his or her intent to leave the partnership, the
other partners may begin placing bids for the purchase of the leaving partner’s shares.
C. If remaining partners wish to continue the partnership after one leaves, that
possibility must be provided for in the contract agreement to terminate the partnership.
D. If one partner leaves, the remaining partners may opt to fully dissolve the
relationship.
E. All claims against the partnership are dismissed four years after termination.
“Pet Police.” Millie breeds German Shepherd dogs. Bernard, who lives down the street,
took in a stray dog loosely identified as a Corgi-plus. The dog, Casanova, would
definitely be classified as a mixed breed. Bernard allowed Casanova to roam freely.
Unfortunately, Casanova went to visit Millie’s pure-bred German Shepherd. Puppies
resulted which were Shepherd and Corgi-plus puppies. Millie was incensed. She started
a campaign to round up all of the stray dogs, including Casanova, and haul them off to
the animal shelter. She picked up a few cats as well. She posted signs all over the
neighborhood saying that no animal, neither dog, cat, nor fowl, should come into her
yard and that she was going to begin shooting the next time, period. Understandably,
Bernard and some of the other neighbors took offense. Bernard comes to Millie’s house
while she is working in the yard. He walks behind her and shoves her. Millie did not see
him coming. Millie turned around and proceeded to have a heated conversation with
Bernard. Millie drew her fist back and told Bernard that she was going to punch him in
the nose. Millie raised back her arm and started to punch Bernard but he stepped back,
and all she managed to do was jab him in the shoulder, causing no actual pain. Sally,
who was going by on the street, saw Millie attempting to hit Bernard. Sally came over
and grabbed Millie’s hands, pinning Millie’s hands behind her back.
Which of the following is true regarding Sally’s actions toward Millie?
A. Sally committed an assault.
B. Sally committed a battery.
C. Sally committed both an assault and a battery.
D. Sally did not commit any offense because she did not actually hurt Millie.
E. Sally did not commit any offense because she was acting in the defense of Bernard.
Section 402A of the Restatement (Second) of Torts applies to which of the following?
A. Negligence.
B. Breach of warranty.
C. Strict product liability.
D. Assumption of the risk.
E. Preemption.
Tina, an experienced pool contractor, and Bruce agree on a price for Tina to build a pool
in Bruce’s backyard. While the area is not known for rocks, unfortunately Tina
unexpectedly encounters a significant problem with solid rock in the backyard when
she starts to dig. She tells Bruce that unless she receives an extra $5,000, she cannot
complete the job. Bruce agrees thinking to himself that he has a way out. When Tina
finishes the pool, Bruce refuses to pay the additional $5,000. Which of the following is
the most likely result of their dispute?
A. Bruce will be required to pay because a typical, unilateral contract is involved, and
he got the benefit of his bargain.
B. Bruce will be required to pay because a typical, bilateral contract is involved, and he
got the benefit of his bargain.
C. Bruce will be required to pay because unforeseen circumstances are an exception to
the preexisting duty rule.
D. Bruce will not be required to pay because he provided no additional consideration,
and the preexisting duty rule applies.
E. Bruce will only be required to pay ½ of the agreed upon amounts because of the
calculations involved under the preexisting duty rule.
A workers’ compensation insurance policy is an example of which of the following
types of insurance?
A. Casualty
B. Loss
C. Economic
D. Business
E. Injury
Which of the following is false regarding executive agencies at the federal level?
A. The administrative head of an executive agency is appointed by the president with
the advice and consent of the U.S. House of Representatives.
B. Executive-agency heads may be discharged by the president at any time, for any
reason.
C. When a new president is elected, he or she will typically place his or her appointees
in charge of executive agencies.
D. Executive agencies are generally located within the executive branch under one of
the cabinet-level departments.
E. Executive agencies tend to have responsibility for making rules covering a broad
spectrum of industries and activities.
“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 is true regarding a tenancy by the entirety?
A. It describes a form of co-ownership by married couples.
B. It describes a form of co-ownership by relatives, including married couples as well
as brothers and sisters.
C. It is another name for tenants in common.
D. It is another name for joint tenancy.
E. It is a form of co-ownership still in existence in some states by which the husband
has absolute control regarding any decisions made regarding improvement of the
property.
Which of the following is false regarding the liability of a landlord?
A. If an injury occurs on residential premises because of a condition that the landlord
knew or should have known about, the landlord can be held responsible for the injury.
B. If the landlord is aware of a dangerous condition but does not make the tenant aware
of the condition, the landlord will be responsible for any resulting injury.
C. If the landlord is aware of a dangerous condition but hides the condition from the
tenant, the landlord will be responsible for any resulting injury.
D. If premises are used for commercial purposes, the landlord has a responsibility to
ensure that the premises are in reasonably good condition before the tenant takes
control of the property.
E. If the premises are used for commercial purposes, the landlord is responsible for
maintaining the premises.
“Defective Windows.” Selina hired a contractor, Rex, to put new windows in her home
that she purchased herself from Good Windows. Unfortunately, Rex made a mess of the
windows. While the windows were initially in good shape, Rex cracked some,
scratched others, and did not get the windows properly fitted into their frames. Selina
received a bill for the windows from Good Windows, but she refused to pay. Selina was
told that Good Windows would file a lien, but she believed that there was no basis upon
which a lien would be granted. Rex, who refused responsibility for any problems, also
filed a lien after Selina refused to pay him.
Which of the following is the most likely result if Rex proceeds with attempting to
obtain and enforce a lien?
A. Rex will lose because he performed deficient work.
B. Rex will lose unless he already paid Good Windows for the windows, in which case
he would win.
C. Rex will win unless Selina has a writing signed by him in which he agrees that he
will not seek a lien in the case of deficient work.
D. Rex will win if he proves that he had never had a problem installing windows
before.
E. Rex will receive only half of his bill because he performed deficient work.
“Used Car Problems.” Marcy purchased a used car from ABC Motors. Six months later
the police seized the car from Marcy on the basis that it was a stolen vehicle. Marcy
asked for her money back from ABC Motors. The manager there told her that the car
was not stolen, but that even if it were, ABC Motors acted in good faith with no
knowledge of a theft; and that, therefore, Marcy, as a good-faith purchaser, had a good
title. ABC Motors had also sold a used car to Frank who wrote a bad check for the car
and left town, but not before selling the car to Betty. Betty purchased the car with no
knowledge of any problem with the check. ABC Motors asked Betty to return the car,
but she refused. She explained that she had given the car to her son, Billy.
What kind of title did Frank have?
A. Good
B. Void
C. Voidable
D. Absolute
E. Illegal
A[n] ______ trust is created by a court to hold property in trust for its rightful owner.
A. Real
B. Constructive
C. Resulting
D. Validating
E. Actual
Which of the following is generally used to determine the value of stock when a
dissenting shareholder exercises an appraisal right when a proposed merger is involved?
A. The value of shares on the day after the shareholder vote.
B. The value of shares on the day before the shareholder vote.
C. The value of shares on the day of the shareholder vote.
D. The value of shares 10 days before the shareholder vote.
E. The value of shares on the day the proposed merger was announced.
“Cosmetic profits.” Sally is the vice president at Big Name Cosmetics Company. She
learns that the company is soon going to purchase a smaller chain of stores. It is
expected that stock in Big Name Cosmetics will rise dramatically at that point. Sally
immediately buys a number of shares of her company’s stock. She also tells her friend
Alice about the expected purchase of stores. Alice wanted to purchase stock in the
company but lacked the funds with which to do so. Although she did not have the funds
in Bank A, Alice decided to draw a check on Bank A and deposit the check in Bank B
and then proceed to write a check on Bank B to cover the purchase of the stock. She
hoped that she would have sufficient funds to deposit before the check was presented
for payment.
Which offense is Sally guilty of, if any, in purchasing stock of her company?
A. Insider trading
B. Tipping
C. Insider misappropriation
D. Extortion
E. She is guilty of no offense
“Refused Furniture.” Selina arranges to sell furniture from her furniture store to Roland
for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay
the remainder in monthly installments. Selina was to deliver the furniture by February
7. Roland did not pay Selina as promised on February 1. He asked her to wait until
March 1, but she refused. She told him that the contract was canceled, and she refused
to deliver the furniture at all. Selina was able to sell the furniture for only $2,500
because of a downturn in the economy. Roland told Selina that she had no right to
withhold or sell his furniture and that he was suing. Selina also incurred $100 in
additional amounts in advertising costs to advertise the furniture that Roland initially
purchased. Selina saved $40 in delivery costs because she did not have to deliver the
furniture to Roland. The subsequent purchaser picked up her own furniture.
Which of the following is true regarding any right of Selina to recover the additional
advertising fees she incurred from Roland?
A. She is entitled to recover the damages only if she can show that Roland agreed to
pay such damages in his contract with her.
B. She is not entitled to recover the damages because she had no right to resell the
furniture.
C. She is entitled to recover the damages only if she can show that Roland has a history
of breaching contracts of sale.
D. She cannot recover the damages because consumer goods are involved.
E. Selina will be able to recover the damages so long as they were reasonably incurred
because of Roland’s breach.
“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 the police acted within their
rights by using the thermal imager?
A. The police acted within their rights so long as they can show that they asked a judge
for a warrant before using the thermal imager, but the judge refused.
B. The police acted within their rights so long as they can show that the street was truly
chosen at random for a search.
C. The police acted within their rights so long as they can show that Sam had been in
jail previously on a drug offense charge.
D. The police acted legally so long as they can show that Sam had been in jail
previously for any offense.
Which approach to jurisprudence is based on choosing alternatives that maximize
benefits and minimize costs, and is tied to the pursuit of efficiency?
A. Cost-benefit analysis
B. Legal realism
C. Historical school
D. Legal positivism
E. Executive positivism
“Four Paws Protection.” Congress set up a new agency to more closely regulate testing
of personal and cosmetic products on animals. Legislation was passed naming the
agency the “Animal Protection Commission,” and setting forth the function of the
agency and its specific powers. Congress provided the agency with the power to make
rules, investigate violations, and adjudicate charges of wrongdoing. The agency
proceeded to properly give notice and issue rules. The rules provided for civil as well as
for criminal penalties. Agency personnel issued an order for ABC Co. to attend a
hearing regarding its animal testing and to bring to the hearing all company documents
pertaining to animal testing. ABC Co. resisted on the basis that the agency had no
power to compel its attendance at a hearing or to require it to provide any documents.
ABC Co. also claimed that agencies do not have the power to impose criminal
penalties. The agency proceeded to issue a ruling that ABC Co. cease all activity based
upon its refusal to cooperate.
Which of the following is true regarding the claim of ABC Co. that the agency had no
power to compel attendance and the production of documents?
A. ABC Co. is correct because while the agency had the right to request voluntary
compliance and refer ABC Co. to law enforcement if ABC Co. would not voluntarily
comply, the agency had no power to require compliance.
B. ABC Co. is correct in that the agency could not require the production of documents,
but incorrect regarding the power of the agency to require attendance at a hearing.
C. ABC Co. is correct in that the agency could not require attendance at a hearing, but
incorrect regarding the power of the agency to require the provision of documents.
D. ABC Co. is incorrect and the agency had the power to issue a document called a
subpoena requiring attendance at a hearing and a document called a subpoena duces
tecum requiring that ABC Co. bring specified documents to the hearing.
E. ABC Co. is incorrect and the agency had the power to issue a document called a
certified order requiring attendance at a hearing and a document called a summons
requiring that ABC Co. bring specified documents to the hearing.
Which of the following was the result in the case referenced in the “Case Nugget,” Ziva
Jewelry Inc., v. Car Wash Headquarters Inc., in which the plaintiff left his car and keys
with a car wash employee and a thief drove off with the car abandoning it unharmed
after stealing jewelry valued at over $800,000 from the car’s trunk?
A. That the car wash was liable to the plaintiff because the car wash accepted
responsibility as a bailee.
B. That the car wash was not liable to the plaintiff because the car wash employees had
no notice they were taking responsibility for so much jewelry.
C. That the car wash and the plaintiff would be required to split the loss.
D. That the car wash was liable to the plaintiff for the loss because the car wash had not
issued a valid disclaimer.
E. That it would be unconscionable to hold the car wash liable for the loss.
Which of the following is true regarding the enforceability of foreign judgments in the
United States?
A. Foreign judgments are entitled to full faith and credit.
B. Foreign judgments are entitled to full faith, but not credit.
C. Foreign judgments are neither entitled to full faith and credit, nor are they evidence
of the justice of the plaintiff’s claims.
D. Foreign judgments are not entitled to full faith and credit, but are only evidence of
the justice of the plaintiff’s claims.
E. By statutory law, foreign judgments must be disregarded in the U.S.
Which of the following is true regarding business ethics?
A. Business ethics refers to standards of business conduct but does not result in a set of
correct decisions.
B. Business ethics results in a set of correct decisions and does not simply refer to
standards of business conduct.
C. Business ethics produces a list of correct business decisions that all ethical
businesses will make so long as the theory of deontology is followed.
D. Business ethics produces a list of correct business decisions that all ethical
businesses will make so long as the theory of rule utilitarianism is followed.
E. Business ethics produces a list of correct business decisions that all ethical
businesses will make so long as the theory of virtue ethics is followed.
“Appellate Court.” Jim, who is a bit eccentric, says that he is fed up with the way a
certain employer in his town treats employees and that he is going to sue on behalf of
all those employees. Jim also says that he is going to start his case at the appellate court
level, skipping over all those “lesser” judges. Jim says that those justices will surely
hear him out and that he will also seek a jury.
Assuming Jim ends up initially, or at some later point, at the appellate level, is he
entitled to a jury at the appellate level?
A. No, jurors are not used at the appellate court level.
B. Yes, but only if he had a jury first at the trial court level.
C. Yes, if he satisfies the requirements to initially bring the case in appellate court, he is
entitled to a jury.
D. Yes, but only if the employer agrees to a jury.
E. Yes, because appellate courts decide questions of fact while questions of law are
decided at the trial court level.
What is a purpose of the parol evidence rule?
A. To restrict oral evidence from being admitted that supports an agreement in its
written form.
B. To restrict written evidence from being admitted that supports an agreement in its
written form.
C. To restrict oral and written evidence from being admitted that supports an agreement
in its written form.
D. To restrict hearsay from being admitted that supports or contradicts an agreement in
its written form.
E. To restrict evidence from being admitted that substantially contradicts an agreement
in its written form.
Which of the following is false regarding trusts?
A. A settlor may revoke a trust at any time.
B. Settlors may create trusts to prevent individuals from getting access to certain assets.
C. Trusts may be set up to make “awards” to family members who make significant
contributions in certain fields, such as education, science, law, or medicine.
D. A trust document may state that the trust will terminate when an event happens, such
as when the remainderman reaches a certain age.
E. A court can place assets of a partnership in a constructive trust if it discovers that one
partner is engaging in fraudulent or unconscionable conduct that might negatively affect
the interests of another partner.
Under the UCC lease contracts that require payments of ______ or more must be in
writing in order to be enforceable.
A. $100
B. $500
C. $1,000
D. $1,500
E. $5,000
Which of the following was the result at the U.S. Supreme Court level in
Metro-Goldwyn-Mayer studios Inc., v. Grokster Ltd., the case in the text in which the
Court addressed the legality of the defendants allowing users to share digital, typical
music, files?
A. That the defendants had no responsibility to develop filtering tools or other
mechanisms to diminish infringing activity and that the district court properly dismissed
the lawsuit.
B. That there was no evidence that the defendants acted to promote infringement and
that, therefore, the district court properly dismissed the lawsuit.
C. That there was no evidence that the defendants profited from the site allowing file
sharing and that, therefore, the district court properly dismissed the lawsuit.
D. That the district court properly dismissed the suit because the system at issue had
both legal and illegal uses.
E. That the district court improperly dismissed the suit because a distributor who
promotes infringement and takes steps to foster infringement is liable for infringement
by third parties.
Which of the following is true if a partner wrongfully dissolves a partnership?
A. The partner who wrongfully dissolved the partnership can require that the business
be wound up.
B. The partner who wrongfully dissolved the partnership can be held liable for damages
to the remaining partners.
C. The remaining partners must close the business.
D. The partner who wrongfully dissolved the business must petition the court in order
to complete the process.
E. The remaining partners must petition the court in order to complete the process.
Which of the following is a court’s power to hear certain kinds of cases?
A. Subject-matter jurisdiction
B. In kind jurisdiction
C. In personam jurisdiction
D. In loco jurisdiction
E. In area jurisdiction
Constance asks Kathy if Kathy would consider selling her car for $2,000. What is the
status of the negotiation?
A. No offer has been made.
B. An offer has been made, but it may be revoked prior to acceptance.
C. An offer has been made that may not be revoked prior to acceptance.
D. A contract has been entered into.
E. A contract has been entered into, but it may be set aside at the option of either party.
Which of the following is distinguishable from other forms of partnerships because the
partners’ liability for professional malpractice is limited to the partnership?
A. General partnership
B. Limited partnership
C. Professional partnership
D. Limited liability partnership
E. Loss limiting partnership
Which of the following is an instrument payable to a specific, named payee?
A. A bearer instrument.
B. A delivery instrument.
C. An order instrument.
D. A transfer instrument.
E. An acknowledgement instrument.
Which of the following is false regarding the duties a principal owes to an agent?
A. The principal owes a duty of cooperation to the agent.
B. The principal must assist the agent in the performance of his or her duties.
C. The principal can do nothing to interfere with the reasonable conduct of an agent.
D. The principal has a duty to provide safe working conditions for an agent.
E. The duty of reimbursement applies to employees only, not to independent
contractors.
A[n] ______ mistake is the result of an error by one party about a material fact.
A. Unclear
B. Mutual
C. Unilateral
D. Clear
E. Single
Which of the following is an order that permits the creditor to recover property beyond
foreclosed property?
A. A deficiency judgment
B. A remainder judgment
C. A total judgment
D. A composition judgment
E. A reverted judgment
Which of the following is true regarding assignment of rights in China?
A. Free assignment of rights is permitted.
B. Free assignment of rights is permitted only when a contract with a state authority is
involved.
C. Free assignment of rights is permitted only when a contract with a private party is
involved unless the contract is one considered “for the good of the people.”
D. Assignment of rights is illegal.
E. When a private party is involved, the assignor must first get the obligor’s approval
before an assignment is made.