Instructions This exam is worth 30 points and is 30% of your final grade. The exam consists of twenty-two multiple choice questions and one essay question. The multiple choice questions are worth 20 points and the essay question is worth 10 points. If you answer all 22 multiple choice questions, two wrong answers will be thrown out. Please indicate your answers on the posted answer sheet by “cutting-and-pasting” your selected answer next to the appropriate question number. You may also reference the source of your answer. MULTIPLE CHOICE 1. Assuming that the true owner cannot be found identify which of the following is most likely to be considered mislaid property. A. A wallet found on the seat of an airplane. B. A pair of sunglasses found on the floor of an airplane. C. A purse in the overhead storage bin above a seat in an airplane. D. An unopened bag of peanuts on the floor of an airplane. 2. Karen is going downtown to shop. She pulls her car into an unattended parking lot, stops, pays for and receives a ticket automatically in the automatic entry gate, parks her car, and leaves. Karen keeps her keys and may get her car at any time. Several hours later, when Karen returns, she learns her car has been stolen. Assuming the facts are correct what would be the proper conclusion? A. This is a bailment. B. This is not a bailment because there is no personal property. C. This is not a bailment because there was no taking of possession by a bailee. D. This is not a bailment because there was no compensation paid. Go to Next Page 3. Donna completed a children’s book in September 2013. She is going to self-publish the book herself and sell it online and in local stores. It will be printed and ready for publication in November 2014. She wants her book to be copyrighted, but knows that the official process can take up to a year to complete. In the meantime, what can Donna do to obtain copyright protection for her book? A. There is nothing Donna can do to protect her book until she receives an official copyright, and she cannot publish the book until she has an official copyright. B. Publish the book, apply for copyright protection, and wait for the statutory period for anyone to file an objection that her book is not eligible for copyright protection. C. Publish the book and mark it as copyrighted with her name and the date. D. Publish the book and mark it “copyright pending”, but this will only protect her book for 3 months even if it takes longer to receive an official copyright. 4. Shirley invented a new product in March 2013. She publicized the invention and shared the product with the public to stimulate demand that same month. She also needed time to finance the obtaining of a patent for the product. In May of 2014, she finally had the ability to patent the product. Determine if she still can obtain a legal patent, and if so, for how long? A. No, because sh.

1. Instructions
This exam is worth 30 points and is 30% of your final grade.
The exam consists of
twenty-two multiple choice questions and one essay question.
The multiple choice
questions are worth 20 points and the essay question is worth 10
points. If you answer
all 22 multiple choice questions, two wrong answers will be
thrown out. Please indicate
your answers on the posted answer sheet by “cutting-and-
pasting” your selected
answer next to the appropriate question number. You may also
reference the source of
your answer.
MULTIPLE CHOICE
1. Assuming that the true owner cannot be found identify which
of the following is most
likely to be considered mislaid property.
A. A wallet found on the seat of an airplane.
B. A pair of sunglasses found on the floor of an airplane.
C. A purse in the overhead storage bin above a seat in an
airplane.
D. An unopened bag of peanuts on the floor of an airplane.
2. Karen is going downtown to shop. She pulls her car into an

2. unattended parking lot,
stops, pays for and receives a ticket automatically in the
automatic entry gate, parks her car,
and leaves. Karen keeps her keys and may get her car at any
time. Several hours later, when
Karen returns, she learns her car has been stolen. Assuming the
facts are correct what would
be the proper conclusion?
A. This is a bailment.
B. This is not a bailment because there is no personal property.
C. This is not a bailment because there was no taking of
possession by a bailee.
D. This is not a bailment because there was no compensation
paid.
Go to Next Page
3. Donna completed a children’s book in September 2013. She
is going to self-publish the
book herself and sell it online and in local stores. It will be
printed and ready for
publication in November 2014. She wants her book to be
copyrighted, but knows that
the official process can take up to a year to complete. In the
meantime, what can
Donna do to obtain copyright protection for her book?
A. There is nothing Donna can do to protect her book until she
receives an official

3. copyright, and she cannot publish the book until she has an
official copyright.
B. Publish the book, apply for copyright protection, and wait for
the statutory
period for anyone to file an objection that her book is not
eligible for
copyright protection.
C. Publish the book and mark it as copyrighted with her name
and the date.
D. Publish the book and mark it “copyright pending”, but this
will only protect
her book for 3 months even if it takes longer to receive an
official copyright.
4. Shirley invented a new product in March 2013. She
publicized the invention and shared
the product with the public to stimulate demand that same
month. She also needed
time to finance the obtaining of a patent for the product. In May
of 2014, she finally
had the ability to patent the product. Determine if she still can
obtain a legal patent,
and if so, for how long?
A. No, because she waited for over one year after the product
was used by the
public before attempting the patent.
B. No, because she publicized her invention.
C. Yes, she can obtain a patent for 20 years from the date of the
invention.

4. D. Yes, she can obtain a patent for 20 years from the date of the
patent
application.
5. What effect can indorsements have on the character of
negotiable instruments?
A. A draft begun as bearer paper can be converted to order
paper, but not nice
versa.
B. Indorsements can convert order paper to bearer paper, but
not vice versa.
C. Indorsements can convert order paper to bearer paper, and
can convert bearer
paper to order paper.
D. Indorsements can convert order paper to bearer paper, and
can convert bearer
paper to order paper, so long as the instrument expressly allows
such
conversions.
E. Indorsements cannot change either bearer or order paper to
the other
classification under any circumstances.
Go to Next Page
6. JKL, Inc. operates a retail appliance store. JKL borrows
$100,000 from First Bank,
giving the bank a security interest in all of its current and after-
acquired inventory.

5. First Bank perfected its security interest. Later, JKL buys some
additional inventory
from Wholesalers, Inc. JKL cannot pay for the inventory
purchase, so it gives
Wholesalers a security interest in this inventory. Wholesalers
perfects its security
interest. JKL defaults on both these loans. Assuming any
required notice is properly
and timely given, who has priority in this after-acquired
inventory?
A. First Bank has priority, because it was first to attach the
after acquired
property.
B. First Bank has priority, because it had a perfected purchase
money security
interest and security interest in all after-acquired inventory.
C. Wholesalers has priority, because this was after-acquired
inventory.
D. Wholesalers has priority, because this was a purchase money
security interest.
7. Dad has a negotiable instrument that he gives to his daughter
as a birthday present.
Dad is a holder in due course of that instrument. Circumstances
arise such that the
daughter can collect that instrument only if she has holder in
due course status. Which
of the following best describes this situation?
A. The daughter is not a holder in due course, so she cannot
collect on this

6. instrument because she did not give value for the instrument.
B. The daughter is protected by the Shelter Principle and can
collect on this
instrument as a holder in due course because her dad had holder
in due course
rights.
C. The daughter qualifies as a holder in due course
automatically, and in addition
she can claim the holder in due course status of her father and
collect the
instrument.
D. Because the instrument is a gift, the daughter acquires holder
in due course
status automatically.
8. Identify which of the following parties are liable only after a
negotiable instrument
has been presented and dishonored, and proper notice has been
given?
A. Drawer, maker, acceptor, and qualified indorser.
B. Maker, acceptor, and unqualified indorser.
C. Acceptor and qualified indorser.
D. Maker and unqualified indorser.
Go to Next Page
9. Determine which of the following is true?

7. A. Only the maker of a note can has primary liability upon
signing an instrument.
B. Only the drawee of a note has primary liability once the
instrument is
accepted by the drawee.
C. The maker of a note has primary liability upon signing the
instrument as does
the drawee after acceptance of the instrument.
D. Only the drawee of an instrument has primary liability upon
acceptance of the
instrument unless the maker is a holder in due course, in which
case only the
maker has primary liability.
10. John bought a television from Jake's Appliance Center for
his personal use. John could
not pay cash for it, so he signed a note and gave Jake's a
security interest in the
television. Jake's did not file a financing statement. About 6
months later, John sold
this television to a neighbor, Jane, who did not know about
Jake's security interest in
it. John stopped making payments on the note to Jake's, and now
Jake's wants to
repossess the television from Jane. Can Jake's repossess this
television from Jane?
A. Yes; Jake's security interest survives this sale to Jane.
B. No; Jane is a buyer in the ordinary course of business, who
takes the television
free of encumbrances.

8. C. No; Jane is a buyer of secondhand consumer goods, who
takes the television
free of any encumbrances.
D. No; Jake's did not perfect the security interest, so it is not
valid against third
parties like Jane.
E. No; Jake's security interest did not attach, so it is not valid
against anyone,
including Jane.
11. Finest Office Corp employed General Construction, Inc
(GCI) to renovate an office for
$5,000. Finest signed a promissory note to GCi for $5000.
GCI transferred the note to
Happy Collection Agency. Happy Collection Agency knows
that GCI has not performed
on the contract. Happy Collection is a HDC of the note in what
amount?
A. $ 0
B. $ 5,000
C. $ 10,000
D. $ 15,000
12. Determine the most important difference when a business
uses Chapter 11 rather than
Chapter 7 bankruptcy.
A. In Chapter 11, petitions must be voluntary, whereas Chapter
7 petitions can be

9. either voluntary or involuntary.
B. In Chapter 11, the business survives, whereas in Chapter 7
the business does
not survive.
C. In Chapter 11, all creditors are assured of receiving some
payment, whereas in
Chapter 7 some creditors may receive nothing.
D. In Chapter 11, there is never a trustee, whereas in Chapter 7
there is always a
trustee.
13. Betty issued a check payable to the order of John for $2,000
for a debt she owed to
John. John properly indorsed the note, but changed the amount
on the check to
$20,000, and negotiated it to Extreme Sports, Limited, to pay a
bill John owed to
Extreme for purchases of goods. Extreme deposited the check
in its ABC Bank
account but could not collect on the check due to “insufficient
funds”. To which
party(ies) is Betty liable for payment of the $20, 000?
A. Extreme Sports, Limited.
B. ABC Bank.
C. Extreme Sports and ABC Bank.
D. No one.

10. 14. Mary and Alice, friends, own a beachfront cottage as joint
tenants. Because of
gambling losses in Las Vegas, Alice must suddenly sell her half
to Teri, which she does
without telling Mary. Analyzing the concepts involved identify
the proper ownership.
A. Mary and Alice as joint tenants.
B. Mary and Alice as tenants in common.
C. Mary.
D. Teri and Mary as joint tenants.
Go to Next Page
15. Grandpa calls Billy and says, “I want you to have my toy
train set. I’ll bring it by next
week.” Billy says that he would love to have it. Grandpa dies
unexpectedly that
afternoon, and in his will leaves everything to Alicia, Billy’s
cousin. What conclusion
would be correct?
A. Billy gets the train because of the agreement with Grandpa.
B. Billy gets the train because there was donative intent on
Grandpa’s part and
Billy agreed to accept the train.
C. Alicia gets the train because Grandpa had not yet taken the
train to Billy.

11. D. Billy gets at least part interest in the train because Grandpa
cannot treat his
cousins unequally in his will.
E. Alicia and Billy now each have a half interest in the train
because although
Grandpa had not delivered the train to Billy, he and Billy
agreed that Billy
would get the train.
16. Chocolate!!, Inc is a new corporation that needs to borrow
money to meet its payroll.
Dana, president and owner of Chocolate!! requests Evermore
Credit Union to loan the funds
to Chocolate!! If Evermore insists Dana sign the loan
application, thus making her personally
liable for payment of the loan if Chocolate!! defaults, Dana will
be:
A. A surety for the loan.
B. A guarantor for the loan.
C. A maker of the loan note.
D. A principal of the loan with primary liability.
17. The Truth-in-Lending Act (TILA) regulates the credit and
credit card industries. Which
of the following transactions are subject to disclosures under
TILA?
A. Consumer credit transactions between 2 corporations.
B. Consumer credit transactions between a consumer and a
lending corporation.

12. C. An installment sales agreement between 2 consumers in
which a consumer
buyer agrees to pay for a used car in more than 4 installments.
D. All sales transactions involving credit.
Go to Next Page
18. Wayne issues a draft payable to Molly. Molly indorses the
draft in blank on the back
and gives it to Jerry. Which of the following statements
correctly describes the status
of this instrument?
A. The draft started out as bearer paper, but Molly converted it
to order paper.
B. The draft started out as order paper, but Molly converted it
to bearer paper.
C. The draft started out as bearer paper and it is still bearer
paper.
D. The draft started out as order paper and it is still order paper.
19. On April 1, Joan bought a vacuum cleaner from a door-to-
door salesperson for $500.
She signed a valid written sales contract for the purchase. After
using the vacuum
several times, on April 2, Joan decided she did not like the
vacuum. Although it was
not defective, she wants to return the vacuum for the full
purchase price. What are

13. Joan’s options?
A. Joan can return the vacuum for the full purchase price,
providing the return is
permitted by state law.
B. Joan cannot return the vacuum; she signed a valid sales
contract and the
vacuum is not defective.
C. Joan can return the vacuum, but not for the full purchase
price as she has
used the vacuum.
D. Joan cannot return the vacuum for 3 reasons: she signed a
valid contract, the
vacuum is not defective, and Joan has used the vacuum.
20. Hank purchased a farm for $800,000 with a down payment
of $160,000 and taking out
a mortgage with ABC Bank for the remaining $640,000. Hank
later defaulted on the
mortgage loan. ABC began foreclosure proceedings on the farm
in accordance with
state foreclosure statutes. Which of the following is true about
Hank’s rights and
obligations?
A. Hank has a legal obligation to pay the mortgage and thus
may possibly lose the
farm in foreclosure due to X’s default.
B. ABC may properly initiate foreclosure on the farm since
Hank defaulted on
the loan.

14. C. Hank has a right of redemption to reclaim the farm provided
X pays the full
amount owed on the mortgage prior to foreclosure if state law
permits a right
of redemption.
D. Hank will lose the farm if Hank does not exercise right of
redemption prior to
foreclosure in accordance with state statutes.
E. All of the above are true statements.
Go to Next Page
21. Which of the following instruments is NOT a negotiable
instrument?
A. An undated check.
B. A postdated check.
C. An antedated check.
D. A check on which the number amount is written as $87.00,
and the
handwritten number amount is written as “Eighty-nine dollars”.
E. All of the above may be negotiable.
22. All but one of the following could be patented. Which one
could not be patented?
A. An abstract concept or scientific principle.

15. B. A design for a totally new product to be manufactured.
C. An asexually reproduced plant.
D. Living material invented by a person.
ESSAY
PLEASE NOTE:
This fact pattern presents a hypothetical case on a Search-and-
Seizure issue that may or may
not have been dealt with in the court system and there may or
may not be any case law
dealing specifically with this issue. I have not researched this
issue but am concerned that the
practice set out below could be in violation of the 4th
Amendment. The practice happens
regularly, often involving young drivers who are pulled over for
traffic violations.
Please consider the questions presented and respond as if you
were a lawyer responding to an
inquiry from a young driver who was subject to this practice
and who wondered whether it
was constitutional.
THE FACTS AND QUESTIONS:
A driver, who is in his mid-twenties, is pulled over by a
Maryland State Trooper for speeding on
Hwy 50. After checking the driver’s license and car registration,
the Trooper asks the driver
for permission to search his car. The driver refuses. In response
the Trooper instructs the
driver to wait while he, the Trooper, calls for the K-9 Unit to

16. the scene. The K-9 Unit consists
of dogs trained in the detection of drugs or other contraband.
During this time, the driver is not free to leave. After 20
minutes the K-9 Unit arrives. The dog
is led around the car and detects no drugs and the driver is free
to go.
Is it the right of the driver to refuse to give permission to law
enforcement to search his
vehicle?
Absent probable cause, is this action by the State Trooper
consistent with protections
accorded by the 4th Amendment regarding search and seizure?
If contraband was found, would it be admissible at trial?
Supposing that instead of 20 minutes, the driver was held for
nearly an hour before the K-9
Unit arrived.
Would this be considered proper police procedure and not in
violation of 4th Amendment
protections?
If contraband was found, should that contraband be admissible
at trial?
END OF EXAM
1
2

17. Assignment 1.1
Oriana Lovera
Critical Thinking
Strayer Universiy
April 16th, 2017
Should Abortion be legalized?
Abortion is the deliberate termination of pregnancy. There are
three groups on the issues of legalizing abortion which are the
radicals, moderate and conservative. The radicals support
abortion in all matters that is regardless of the grounds of
aborting. The moderates support abortion but on certain
circumstances. The conservatives, on the other hand, oppose
abortion on all grounds. On the matter of abortion, I think it
should not be legalized.
The people for abortion argue that couple should have a baby
when they are ready. This view opens up someone mind that
having children require preparedness for better raising
conditions. Bringing up a child required the couple or one of
the parents to be prepared financially and in other sectors.
Bearing a child when one is not ready may lead to a rising in
some street children. An unplanned pregnancy does not

18. necessarily mean the couple does not use birth control methods.
At times one may be raped and impregnated.
It is the responsibility of the woman to choose whether or not to
bring the child to the world. The child is normally inside the
womb of the woman who has right over her body. The fetus
being in her is affected by her decisions. People want the kid to
be born nowhere in raising it.
The right to privacy, women, argue that abortion is an affair
concerning them and their privacy should not be invaded. Many
constitution provision rights to privacy, abortion being a women
matter should be left to them. This is because of everyone
demands and values for the right to privacy.
Regardless the view of one takes debate of abortion will still
continue. It seems that at no one time all people will take the
same stand. As Ronald Reagan said the people who support
abortion are already born, it is very sad.