Running head: TITLE 1 TITLE 6 Title Student Name University Name Title 1) When statutes are passed only after considerable study, debate and public input, this is an example of which function of the law? A. Keeping the peace. B. Shaping moral standards. C. Maintaining the status quo. D. Facilitating orderly change. 2) What was the U.S. Supreme Court’s reaction to a case where a business executive was found guilty of aiding and abetting in the bribery of an Internal Revenue Service Agent even though the Internal Revenue Service agent had been found not guilty of the bribery in a separate trial? A. Because of the inconsistent outcomes, a third combined trial was ordered to reconcile the different outcomes. B. This simply underscores the fact that there is always the possibility that different juries might reach different results in a given situation. C. Because one of the defendants had been found guilty, then both should have been found guilty. D. Because one of the defendants had been found not guilty, they both should have been found not guilty. 3) Which of the following is most consistent with the Natural Law School of jurisprudence? A. The laws of man are secondary to the laws of nature, and thus the laws of nature take precedence whenever the laws of man are in conflict with the laws of nature. B. By applying the rules of logic to specific cases, the logical, or natural, result will be obtained. C. Law is based on moral and ethical principles of what is right, and it is the job of men and women, through study, to discover what these principles are. D. The law is a reflection of society, thus the law must change naturally as society changes over time. 4) Which of the following statements is true regarding the relationship of law and ethics? A. In some cases the law will require a higher standard of conduct than ethics, but never vice versa. B. Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands. C. The legal requirements will almost always be the same as the ethical requirement because the law is based on the ethical standards. D. In some cases ethics will require a higher standard of conduct than the law, but never vice versa. 5) Which of the following is correct with regard to the relationship between law and ethics? A. Lawful conduct is always ethical conduct. B. Although much of law is based on ethical standards, not all ethical standards have been enacted as law. C. The rule of law and the golden rule of ethics demand the same response. D. The law may not .permit something that would be ethically wrong. 6) Which of the following is not one of the Caux Round Table Principles for International Business? A. Promotion of Multiculturalism. B. Respect for the Environment. C. Avoidance of Illicit Operations. D. Support for Multilateral Trade. 7) In a civil case, which of the following is true about the order of the prese.

1. Running head: TITLE
1
TITLE
6
Title
Student Name
University Name
Title
1) When statutes are passed only after considerable study,
debate and public input, this is an example of which function of
the law?
A. Keeping the peace.
B. Shaping moral standards.
C. Maintaining the status quo.
D. Facilitating orderly change.
2) What was the U.S. Supreme Court’s reaction to a case where
a business executive was found guilty of aiding and abetting in
the bribery of an Internal Revenue Service Agent even though
the Internal Revenue Service agent had been found not guilty of
the bribery in a separate trial?
A. Because of the inconsistent outcomes, a third combined trial
was ordered to reconcile the different outcomes.
B. This simply underscores the fact that there is always the
possibility that different juries might reach different results in a

2. given situation.
C. Because one of the defendants had been found guilty, then
both should have been found guilty.
D. Because one of the defendants had been found not guilty,
they both should have been found not guilty.
3) Which of the following is most consistent with the Natural
Law School of jurisprudence?
A. The laws of man are secondary to the laws of nature, and
thus the laws of nature take precedence whenever the laws of
man are in conflict with the laws of nature.
B. By applying the rules of logic to specific cases, the logical,
or natural, result will be obtained.
C. Law is based on moral and ethical principles of what is right,
and it is the job of men and women, through study, to discover
what these principles are.
D. The law is a reflection of society, thus the law must change
naturally as society changes over time.
4) Which of the following statements is true regarding the
relationship of law and ethics?
A. In some cases the law will require a higher standard of
conduct than ethics, but never vice versa.
B. Depending on the circumstances, the law can require a
higher, lower, or the same standard of conduct as ethics
demands.
C. The legal requirements will almost always be the same as the
ethical requirement because the law is based on the ethical
standards.
D. In some cases ethics will require a higher standard of
conduct than the law, but never vice versa.

3. 5) Which of the following is correct with regard to the
relationship between law and ethics?
A. Lawful conduct is always ethical conduct.
B. Although much of law is based on ethical standards, not all
ethical standards have been enacted as law.
C. The rule of law and the golden rule of ethics demand the
same response.
D. The law may not .permit something that would be ethically
wrong.
6) Which of the following is not one of the Caux Round Table
Principles for International Business?
A. Promotion of Multiculturalism.
B. Respect for the Environment.
C. Avoidance of Illicit Operations.
D. Support for Multilateral Trade.
7) In a civil case, which of the following is true about the order
of the presentation of the case?
A. The judge decides who goes first, which depends on the
circumstances of the case.
B. The order of presentation is determined by the flip of a coin
or other random selection method.[Answer Text]
C. The plaintiff is first to present, followed by the defendant.
D. The defendant is first to present, followed by the plaintiff.
8) The U.S. claims court hears what kind of cases?
A. Cases against the United States.

4. B. Cases involving disputes in the way an earlier case was
decided.
C. Any case with claims involving more than one state.
D. Civil cases where at least $75,000 is in dispute.
9) In general, the courts in a civil law system play a much
larger role in making law than in a common law system.
A. True
B. False
10) To be successful in a negligence cause of action, the
plaintiff must prove that the defendant breached a duty of care
that caused the plaintiff's injuries.
A.
True
B.
False
11) Which of the following could not give rise to a strict
liability in tort action for products liability?
A.
Buying legal services for the drafting of a will.
B.
Buying a prescription which was filled in a drug store.
C.

5. Buying food at a Joke-in-the-Box restaurant.
D.
Buying a new car from a Genard Motors dealer.
12) The failure of the manufacturer of a product to warn users
of the dangerous propensities of a product can be negligence.
A.
True
B.
False
13) Types of contracts that are commonly invalidated include
the following except:
A.
Contracts which result in competition with a valid preexisting
business.
B.
Contracts to commit a tort.
C.
Contracts in restraint of trade.
D.

6. Immoral contracts.
14) When the provider of a service provides that service without
obtaining a required license, with which kind(s) of license(s)
can the service provider collect her fee as provided in a
contract?
A.
With neither kind of license.
B.
With either kind of license.
C.
Revenue-raising licenses only.
D.
Regulatory licenses only.
15) Where a contract calls for action that violates a statute, in a
breach of contract case the court will:
A.
Order payment so that the parties to the illegal contract share
any losses equally.
B.

7. Order both parties to return any consideration received.
C.
Ignore the contract and leave the parties where they are.
D.
Impose the appropriate criminal penalty.
16) What characteristics are necessary for a draft to be a check?
A.
It is a bearer paper.
B.
It is payable at a specific time and the drawee is a bank.
C.
It is payable on demand, and the drawee is a bank.
D.
It contains an indorsement in blank.
17) Which of the following will result in an instrument being
nonnegotiable?
A.
It states that the rights of the payee to receive payment are

8. subject to the terms of a separate agreement.
B.
It states that the entire balance will become immediately due in
the event of a default by the maker.
C.
It states that the payment of funds will come from the proceeds
of a specific contract.
D.
It contains a variable interest rate such that the amount of
interest that will be due cannot be determined at the time the
note is created.
18) Where must the signature appear on a negotiable instrument
in order to meet the signature requirement?
A.
Anywhere on the face, or in the proper endorsement place on
the back.
B.
On the face only, and only at the end of the instrument.
C.
Anywhere on the face of the instrument or anywhere on the
back of the instrument.

9. D.
Anywhere on the face of the instrument.
19) Articles 2 and 2(A) of the UCC cover which types of
transactions:
A.
Sales of goods and leases of goods.
B.
Sales of goods and contracts for the providing of services.
C.
Sales of goods and leases of goods or real property.
D.
Sales of goods and sales of real property.
20) A homeowner orally contracted to buy some custom made
parts that the homeowner will use to build a retaining wall in
the homeowner's back yard. The contract price for these
materials was $2,000. The buyer refused to take delivery even
though they were conforming. The seller is unable to sell these
parts to anyone else because they were individually designed for
the homeowner. In a lawsuit against the homeowner by the
seller of the parts:
A.

10. This contract is fully enforceable even though it is not in
writing.
B.
This contract is not enforceable, assuming that the homeowner
is not a merchant in the materials purchased.
C.
This contract is not enforceable because the price is $500 or
more.
D.
The UCC would not apply because these goods will become real
property when installed by the homeowner.
21) A buyer agrees to purchase "two cars" from an elevator
company. All material terms are contained in a written contract,
but "two cars" is not further defined. Which of the following
evidence can be admitted if there is a dispute over what "two
cars" refers to?
A.
Written evidence from prior to the signing of the written
contract that the parties intended the contract to be for the
purchase of three cars.
B.
Oral evidence that the word "car" refers to an elevator, since
that is normal in the elevator industry, and that it does not refer
to any of the company's automobiles.

11. C.
Oral evidence that before the signing of the written agreement
the elevator company said it would extend its normal one-year
warranty (which is stated in the written contract) to two years.
D.
Oral evidence that before the signing of the contract the parties
intended the contract to be for the purchase of three cars.
22) When an LLC desires to do business in another state, it
must obtain a(n):
A.
Articles of organization exemption.
B.
Foreign agent authorization.
C.
Out-of-state business permit.
D.
Certificate of authority.
23) The uniform law, issued in 1984 by the Committee on
Corporate Laws of the American Bar Association, that regulates
the formation, operation, and termination of corporations is:
A.

12. The Standard Incorporation Act.
B.
The Revised Model Business Commercial Code.
C.
The Model Business Corporation Act.
D.
The Uniform Commercial Code.
24) Which of the following is true when a general partnership is
converted to an LLC?
A.
The members will retain unlimited personal liability for
obligations incurred while the business was a partnership.
B.
The profit and loss sharing terms must remain the same as they
were in the partnership.
C.
The property must be sold to a third party who then immediately
sells it to the LLC.
D.
The conversion can be made retroactive for up to two years.

13. 25) Jan saw an item at a local department store, which she
considered purchasing but did not. After getting home, she
changed her mind. Her roommate was going to the same store,
so Jan asked the roommate to pick up the item for her. Jan gave
her credit card to the roommate and said, "Just sign my name;
you know they never check the signature." The roommate
purchased the item with Jan's credit card and signed Jan's name.
Has the roommate committed forgery?
A.
No, because the roommate did not intend to defraud either Jan
or the store.
B.
No, because the store did not realize that the roommate was not
Jan.
C.
Yes, because the roommate misrepresented that she was Jan.
D.
Yes, because forgery occurs whenever one person signs the
name of another.
26) Which is true about corporate criminal liability?
A.
There can be liability for both the individuals who commit
crimes and for the corporation on whose behalf the crimes were
committed.

14. B.
If the criminal conduct can be traced to a specific person or
persons, those persons will be liable and not the corporation.
C.
Corporations have always been just as subject to criminal
liability as individuals.
D.
Because a corporation cannot be sent to prison, they generally
cannot be held criminally liable for the actions of their officers.
27) Under The Racketeer Influenced and Corrupt Organizations
Act:
A.
As few as two acts in a ten year period can amount to a pattern
under the statute.
B.
Only corporations and individuals are subject to its provisions.
C.
Racketeering activity is narrowly defined to include only
offenses commonly engaged in by organized crime such as
money laundering.
D.

15. To constitute a pattern under the statute the conduct must be
engaged in at least once a year for five consecutive years.
28) Rover Corporation is a regular corporation that has not
elected S corporation status. In 1992, Rover earns $100,000; in
1993, Rover distributes $50,000 to its shareholders. Which of
the following best describes the tax consequences to Rover and
its shareholders?
A.
Rover is taxed on $100,000 in 1992; the shareholders are taxed
on $50,000 in 1993.
B.
Rover is taxed on $100,000 in 1992; the shareholders are taxed
on $50,000 in 1992.
C.
The shareholders are taxed on $100,000 in 1992; Rover is not
subject to tax.
D.
Rover is taxed on $100,000 in 1992; the shareholders are not
subject to tax.
29) The DEF Corporation is incorporated in Texas. It wishes to
do business in Oklahoma. Before DEF can legally do business
in Oklahoma, which of the following must it do?
A.
DEF must domicile itself in Oklahoma.

16. B.
DEF must qualify (register) to do business in Oklahoma.
C.
Nothing; DEF automatically has a constitutional right to do
business in Oklahoma.
D.
DEF must incorporate in Oklahoma.
30) John buys a particular issue of stock that carries a stated
dividend rate of 8 percent per year; that if this dividend is not
paid during a particular year, it will not be paid in a subsequent
year before common stock dividends are paid; that John can
exchange the stock for common stock in the future, at a
specified exchange price; and that if the corporation wants to, it
may buy the stock back from John at $50 per share. This stock
is best described as:
A.
Cumulative, redeemable, participating preferred.
B.
No
31) Which of the following best describes the status of the
employment at will doctrine in the United States today?
A.

17. It still applies today, but only to employees who are expressly
told that they are an at-will employee when they are hired.
B.
It applies more today than in the last century, and the quantity
of corporate layoffs is evidence of this.
C.
It today applies only to the employer, although in the past it
applied to both the employee and employer.
D.
It applies in most states to most employment relationships, but
there are many exceptions that limit its application.
32) What is generally the effect when an exception to the
employment at will doctrine applies?
A.
Employees can be prohibited from quitting a job.
B.
There is some sort of limitation on at least one party's ability to
terminate the employment relationship.
C.
The Fair Labor Standards Act will set the terms, such as pay,
for the employment relationship.
D.

18. The employer is required to hire a certain employee.
33) Under the employment at will doctrine, an employment
relationship can be terminated:
A.
By either the employee or the employer.
B.
By the employer only.
C.
Only by mutual agreement of the employer and the employee.
D.
By the employee only.
34) Which of the following items is a legal justification for
paying unequal wages based on gender?
A.
Seniority, merit, and quantity or quality of work.
B.
Merit only.
C.
Quantity or quality of work only.

19. D.
Seniority only.
35) Which of the following is a correct statement of the
requirements for a bona fide occupational qualification?
A.
Rationally based and evenly applied.
B.
Job related and nondiscriminatory.
C.
Job related and a business necessity.
D.
Job related and cost effective.
36) Which of the following is true about sexual harassment in
the workplace?
A.
Sexual harassment is covered under OSHA as part of workplace
safety.
B.
The standards for a hostile work environment are extremely
vague and depend on all the facts and circumstances.

20. C.
Sexual harassment claims require that persons of both sexes be
involved.
D.
If a supervisor approaches someone and asks that person out for
a social date, and if the supervisor acts in socially customary
manner, it will not be sexual harassment.
37) Which of the following is true about misappropriation of
trade secrets?
A.
Neither a valid trademark nor a valid patent is required in order
to recover.
B.
A valid trademark is required in order to recover.
C.
Both a valid trademark and valid patent are required in order to
recover.
D.
A valid patent is required in order to recover.
38) Which of the following is true about misappropriation of
trade secrets?

21. A.
Injunctions are generally not available to protect trade secrets.
B.
Trade secrets are protected regardless of the actions of the trade
secret owner.
C.
The plaintiff can recover only if the defendant acquired the
secret through illegal means.
D.
Although it is not necessary that the trade secret be patented,
the secret must be such that it could be patented.
39) When can an ordinary word such as "window" be granted
trademark protection?
A.
In any situation if the applicant is the first to apply for
trademark protection of that word.
B.
If the word has acquired a secondary meaning.
C.
If the applicant has used the word in the name of its product for
at least 10 years.

22. D.
If the applicant can prove that the use of the word is novel.
40) Under workers' compensation, when an employee is
accidentally injured on the job:
A.
A worker can sue the employer in addition to recovering from
workers' compensation, but only if the employer intentionally
caused the injury.
B.
A worker can file a normal lawsuit and recover from the
workers' compensation board.
C.
Whether the injury occurred in the course of employment is not
relevant.
D.
A worker has the choice of whether to file a normal lawsuit or
recover from the workers' compensation board.
41) Which of the following statements best describes the
workers' compensation rules?
A.
The employer can avoid liability if the injured employee was
contributorily negligent.

23. B.
The employee will collect for all work-related injuries, and will
not need to prove negligence on the part of the employer.
C.
The employee has the choice to sue or proceed under the
workers' compensation statute.
D.
The employer is liable for employment related injuries only if
negligent.
42) Company handbooks have been found to amount to a(n)
___________ exception to the employment at will doctrine.
A.
apparant
B.
public policy
C.
contract
D.
tort

24. Set up an amortization schedule for a $25,000 loan to be repaid
in equal installments at the end of the next 5 years. The interest
rate is 10% compounded annually.
A. I need to set up an amortization schedule for a $25,000 loan
to be repaid in equal installments at the end of the next 5 years.
The interest rate is 10% compounded annually. b. How large
must each annual payment be if the loan is for $50,000?
Assume that the interst rate remains at 10%, compounded
annually, and that the loan is paid off over 5 years. c. How
large must each payment be if the loan is for $50,000, the
interest rate is 10%, compounded annually, and the loan is paid
off in equal installments at the end of each of the next 10 years?
This loan is for the same amount as the loan in part b, but the
payments are spread out over twice as many periods. Why are
these payments not half as large as the payments on the loan in
part b?