2. 1) Which of the following is true regarding state and federal court
jurisdiction?
A. In all cases, state courts have concurrent jurisdiction with the federal courts.
B. Federal courts begin with exclusive jurisdiction until a state court intervenes.
C. In all cases, state courts have exclusive jurisdiction unless the state's
Supreme Court grants jurisdiction to a federal court in the state.
D. In some cases, state courts have exclusive jurisdiction; in some cases, state
courts have concurrent jurisdiction with the federal courts.
2) Which of the following is true regarding a sole proprietorship?
A. A sole proprietor shares control of the management of the business.
B. The sole proprietor keeps a portion of the profits from the business.
C. Profits are not taxed as the personal income of the sole proprietor.
D. A sole proprietor is personally liable for obligations of the business.
3) Which of the following is a type of ADR?
A. Consultation
B. Mediation
C. Case argument
D. Case analysis
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4) Which of the following is an extension of negotiation?
A. Arbitration
B. Minitrials
C. Neutral case evaluations
D. Mediation
5) Without obtaining advance permission, Annie places an unflattering
photograph of the president of the college that she attends on folders that
she is selling outside of class for extra money. Which of the following is
true?
A. Annie has committed defamation of the college president in the form of
slander.
B. Annie has committed defamation of the college president in the form of
libel.
C. Annie has appropriated the photograph for commercial gain, which
constitutes an invasion of privacy.
D. Annie has not committed any tort.
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6) ________ torts occur when the defendant takes an action that is
inherently dangerous and cannot ever be undertaken safely, no matter
what precautions the defendant takes.
A. Liability
B. Intentional
C. Negligent
D. Strict-liability
7) The violation of a duty of care is called
A. breach of responsibility
B. breach of statute
C. breach of duty
D. objectionable breaching
8) Which of the following are common classifications of torts?
A. Intentional, negligent, and criminal
B. Intentional, criminal, and strict-liability
C. Intentional, negligent, and strict-liability
D. Criminal, negligent, and strict-liability
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9) Which of the following are commonly used theories of recovery in
product liability cases?
A. Negligence, negligence per se, and breach of warranty
B. Strict product liability, negligence per se, and breach of warranty
C. Breach of warranty, negligence, and negligence per se
D. Negligence, strict product liability, and breach of warranty
10) The person who makes an offer is called an
A. offeree
B. offeror
C. agreeor
D. agent
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11) Which of the following is what a person will receive in return for performing a
contractual obligation?
A. Consideration
B. Acknowledgement
C. Approval
D. Accord
12) Which of the following is true regarding the adequacy of consideration?
A. Courts generally consider the adequacy of consideration in determining whether to
enforce a contract.
B. Courts consider the adequacy of consideration only if something is sold for less than
90% of its market value.
C. Courts consider the adequacy of consideration only if something is sold for less than
80% of its market value.
D. Courts consider the adequacy of consideration only if something is sold for less than
70% of its market value.
13) Which of the following represents an accord and satisfaction?
A. When a dispute over an unliquidated debt is settled and is paid for less than the full
amount
B. When a dispute over a liquidated debt is settled and paid for less than the full amount
C. When a dispute over an unliquidated debt is settled and paid for the full amount
D. When a dispute over a liquidated debt is settled and paid for the full amount
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14) Jenny works at a Mexican fast-food restaurant, which is owned by an
international company located in Mexico. Jenny is very angry with her supervisor,
Sleaze, as he has been making inappropriate sexual comments to her and other
employees. Jenny decides to sue and retains a lawyer, Brice. Brice talks with the
owners of the restaurant and is informed that Jenny signed an agreement to arbitrate
any claims. Jenny also informed Brice about other employees who had complained
about sexual harassment and entered into mediation agreements. Brice promises her
that he will get copies of all documents and everything that was taken down by the
court reporter at those mediations. Brice also tells Jenny that, while he is not going to
bring it up now, if they so choose, Brice and Jenny can avoid the arbitration
agreement, because under a new federal law, such agreements cannot be enforced if
one of the companies involved is internationally based. He also tells Jenny in response
to her question about the possibility of mediation in her case to forget it, because
mediation is pretty much the same thing as arbitration. Brice tells Jenny that an
option is to arbitrate and, if the outcome is bad at arbitration, she can file a court
action in federal court. Brice says that the federal court judge would not consider an
arbitrator's decision in making a determination. Assume the Uniform Mediation Act
provisions apply. Can Brice obtain information from the previous mediators
regarding what occurred at the previous mediations?
A. Yes, but only if a court reporter was present.
B. He can get accounts of statements, but not copies of written documents.
C. He can get the information only if the mediators in the other cases want to cooperate.
D. He cannot get copies of documents or accounts of what was said from the mediator.
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15) Which of the following is generally defined as a relationship between a
principal and an agent?
A. Agency
B. Principality
C. Combination
D. Employment
16) Which of the following is true if there is no agreement between a
principal and an agent regarding the amount for which the principal will
compensate the agent?
A. It will be assumed that the agent agreed to work for free on a gratuitous
basis.
B. The principal will be allowed to set the price, which will be enforced unless it
is unconscionable.
C. The court will appoint a magistrate to set the price.
D. Compensation will be calculated according to the customary fee in the
situation.
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17) Which title of the Civil Rights Act of 1964 deals with discrimination in
employment?
A. Title VII
B. Title VI
C. Title V
D. Title IV
18) Which of the following is true regarding discrimination based on
sexual orientation?
A. There is a federal law specifically prohibiting discrimination based on
sexual orientation providing back pay, attorney fees, and punitive damages
as available remedies.
B. There is a federal law specifically prohibiting discrimination based on
sexual orientation, but it only provides for back pay as an available remedy.
C. There are no state laws specifically prohibiting discrimination based on
sexual orientation nor is there any federal law providing such protection.
D. While there is no federal law specifically prohibiting discrimination based
on sexual orientation, some states do have laws prohibiting discrimination
based on sexual orientation.
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19) Which of the following is a federal law regulating the payment of wages and
overtime?
A. The Fair Pay Act
B. The Fair Labor Standards Act
C. The Regulatory Wage Act
D. The Subsistence Pay Act
20) Striking union members of ABC Company decide that picketing ABC Company is
not accomplishing the desired results and decide to further their efforts. Sally, the
union president, suggests that they picket XYZ Company, a supplier to ABC, to
pressure XYZ into not doing business with ABC. Which of the following is true
regarding Sally's plan?
A. Sally's plan is a good idea, and this type of picketing is frequently and legally engaged in
by union members during labor disputes.
B. Sally's plan is a good idea only if the strike has been going on for more than 30 days,
because under the National Labor Relations Act, union members may not picket any
company other than the employer for at least 90 days.
C. Sally's plan is only legal if XYZ employees are represented by the same union as ABC
employees.
D. Sally's plan is illegal because of the prohibition against secondary boycotts occurring
during a labor dispute when employees boycott a company other than their own to force
it to cease doing business with their employer.
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21) A ________ is a distinctive mark, word, design, picture, or arrangement
that is used by a producer in conjunction with a product and tends to cause
consumers to identify the product with the producer.
A. Copyright
B. Patent
C. Trade secret
D. Trademark
22) In which of the following types of ownership does each co-owner have
the right to sell his or her interest without the consent of the other owners,
the right to own an unequal share of the property, and the right to own
property subject to the right of a creditor to attach his or her interest?
A. Joint tenancy
B. True tenancy
C. Tenancy in common
D. Joined tenancy
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23) If a trademark is registered, what may the owner obtain in the event of
infringement from a person who used the trademark to pass off goods as
being those of the mark owner?
A. An injunction prohibiting the infringer from using the mark only
B. An additional amount of damages computed as a multiplier of 5 times the
original damages
C. Damages, an injunction prohibiting the infringer from using the mark, and
additional damages based on a multiplier of 5 times the original damages
D. Damages and an injunction prohibiting the infringer from using the mark
24) Which of the following types of insurance should a business manager
purchase to obtain protection against a broad range of risks?
A. A commercial general liability policy
B. A business tort policy
C. A litigation commercial policy
D. An economic protection policy
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25) Which of the following oversees the purchase and sale of securities?
A. The Securities Act of 1933
B. The Securities Exchange Act of 1934
C. The Depression Act of 1932
D. The Oversight Act of 1935
26) A workers' compensation insurance policy is an example of which of the
following types of insurance?
A. Casualty
B. Loss
C. Business
D. Injury
27) How are directors typically chosen after the incorporation process?
A. By majority vote of the shareholders
B. By majority vote of all officers
C. By a two-thirds vote of shareholders
D. The president appoints them at his or her discretion
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28) Wendy is the president of a business that manufactures kites. The
kites of her company, ABC Kites, are sold to large toy stores. After Wendy
learned a great deal about kites, she started to make kites at home. She
started selling kites to friends, and she also started to make inquiries
regarding selling her kites to larger toy stores in the area and to make a
few sales to them. Her plan was to start small and then leave ABC after
she had increased sales. She did not work on her side project while she
was on the clock with ABC. Some of the directors learned about her kite
sales and accused her of wrongdoing. Wendy denied any wrongdoing and
pointed out that she did not work on her project while she was on the job
with ABC. What duty, if any, did Wendy violate?
A. She did not commit any violation.
B. She violated the duty of loyalty.
C. She violated the duty of care.
D. She violated the duty of understanding.
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29) Which of the following best describes the term comparative law?
A. It is the study of the legal systems of different states.
B. It is the study of the laws governing the conduct of states and international
organizations and their relationships with one another.
C. It is the study of the difference between public and private law in the United
States.
D. It is the study of the difference between constitutions and administrative rules
and regulations within the United States.
30) What has the U.S. Supreme Court held regarding whether U.S. courts
must rely on customary international law?
A. The U.S. Supreme Court has held that U.S. courts may disregard customary
international law.
B. The U.S. Supreme Court has held that even if a governing international
agreement says otherwise, a U.S. court must rely on customary international
law.
C. The U.S. Supreme Court has held that even if a controlling executive act is to
the contrary, U.S. courts must rely on customary international law.
D. The U.S. Supreme Court has held that in the absence of a governing
international agreement, or controlling executive, or legislative act, or judicial
decision, U.S. courts must rely on customary international law.
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