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1) Which of the following does not result in a decision rendered
by the hearing officer?
A. Arbitration
B. Mediation
C. Med-arb
D. Using expert evaluators
2) Jurisprudence is defined as
A. adjudication of law suits
B. the enactment of laws by a government body
C. the science and philosophy of law
D. the duties and obligations owed by a citizen
3) The state of Kansas has enacted a new law requiring all
commercial trucks driving on Kansas roads to have special mud
flaps installed.
These mud flaps have been proven to make driving in the rain
significantly safer due to reduced mist created by trucks
driving in the rain,
although data regarding accidents and injuries has not yet been
determined. Any truck entering Kansas must have these flaps
installed or

2. will be subject to a significant fine and delay. The cost for
purchase and installation of these flaps is $1,000 per truck. In
short, trucks must
have these flaps or go around the state. This Kansas law
A. is valid because it only applies to Kansas roads and such a
law is entirely intrastate
B. is valid because Kansas's right to protect its citizens under
its police powers will override any outside challenges to this
law
C. is invalid because this law is intended to regulate interstate
commerce, an enumerated federal power
D. is invalid because although on its face it's an intrastate law,
this statute will have a significant economic effect on interstate
commerce
causing an undue burden
4) The power of preemption is derived from
A. the power of judicial review
B. the Commerce Clause
C. the Necessary and Proper Clause
D. the Supremacy Clause
5) What is the main problem with international courts?
A. Finding judges who understand the complexities of
international law
B. Creating a body of law that reflects multiple legal systems
C. Enforcing a ruling on sovereign nations is difficult
D. Lack of recognition from the U.N. and WTO
6) Under the U.S. legal system, subject to some exceptions, costs
of litigation regarding both the plaintiff and defendant
A. are all paid by the loser

3. B. are all paid by the winner
C. are paid for by each side with the plaintiff and defendant
paying for their own legal costs
D. are totaled by the court and then for fairness, split in half
with each side paying an equal amount
7) Generally, torts law is governed by
A. state statutory law
B. state common law
C. federal statutory law
D. constitutional law
8) Assumption of risk is a defense to
A. conversion
B. negligence
C. defamation
D. battery
9) The three stripes on Adidas clothing represents a
A. trademark
B. trade dress
C. trade secret
D. patent
10) The color or shape of an item, if distinctive, is a
A. trademark
B. trade dress
C. copyright
D. patent
11) Cybersquatting describes the practice of
A. registering multiple domain names and then selling them
back to companies at inflated prices

4. B. hacking into a company's website to install a virus or Trojan
horse designed to steal information but allow the site to
continue
operation
C. using mechanical devises to access a company's website
multiple times to the point that traffic to the site is slowed or
blocked
D. hacking into a company's website to install a virus designed
to cause the company's website to totally cease operation
12) The Digital Millennium Copyright Act (1998) provided each
of the following protections EXCEPT
A. manufacturers of CD-Writers were required to pay 2% of
their sales into a fund to be distributed to copyright holders
because the
CD-Writers could easily copy music and other copyrighted
works
B. civil and criminal penalties were established for those who
sell or manufacture products or services that circumvent
antipiracy software
C. restrictions were placed on analog recorders and
camcorders that lack antipiracy features
D. ISPs were relieved of liability for copyright infringement by
their users as long as the ISP had no knowledge of the
infringement
13) When Maria comes home from work, she finds that her
yard has been mowed and trimmed. An hour later, a man comes
to her door to

5. collect payment for the yard work. Maria refuses to pay him
because she has never seen him before nor had she hired him
to do the work.
Which of the following is accurate?
A. This is an implied, unilateral contract, so she must pay.
B. Maria has received unjust enrichment so a quasi contract is
formed, so she must pay.
C. The court would make Maria pay the reasonable cost of the
work to be fair to both parties.
D. Maria would not have to pay anything.
14) Where a promise can only be accepted by the performance
of the person to whom it is offered is an example of a/an
A. bilateral contract
B. unilateral contract
C. implied contract
D. quasi contract
15) Each of the following is a discharge by mutual consent
EXCEPT
A. accord and satisfaction
B. novation
C. rescission
D. frustration of purpose
16) Harry sees an AK-47 automatic assault rifle in a gun shop
window. He inquires about the price and is told that it is $2,500.
Harry signs
a contract promising to pay the $2,500 on Friday, taking
possession of the rifle when payment is made. On Thursday, a
law is enacted

6. making the ownership, sale, or possession of an automatic rifle
illegal. This contract
A. automatically terminates due to impossibility
B. automatically terminates due to impracticability
C. automatically terminates due to frustration of purpose
D. is enforceable and not affected by the new law because it
was entered into before the law took effect
17) Which of the following is rarely awarded in contracts cases?
A. Consequential damages
B. Compensatory damages
C. Punitive damages
D. Liquidated damages
18) Which of the following is classified as an equitable remedy?
A. Consequential damages
B. Reformation
C. Restitution
D. Liquidated damages
19) Which of the following would not be considered tangible?
A. A car
B. Oxygen
C. The right of ownership
D. The pen or pencil you are using
20) With regard to consideration in a sales contract, the UCC
differs from the common law in that
A. consideration in a sales contract may be modified without
additional consideration
B. consideration exchanged must be equal or very closely equal
in sales contracts
C. consideration is not required in sales contracts

7. D. consideration in a sales contract may be modified as long as
additional consideration is provided
21) The UCC will permit an incomplete or slightly ambiguous
contract to be enforced using each of the following criteria
EXCEPT
A. past commercial conduct
B. industry standards or norms
C. judicial input of any terms necessary to maintain fairness
D. correspondence or verbal exchanges between the parties
22) Two merchant companies have entered into a contract for
the sale of goods but have had no prior dealings, which would
establish a
course of conduct between them. The UCC will allow gap fillers
to apply to their contract regarding missing terms in each of the
following
situations EXCEPT
A. they have failed to specify when payment for the goods is to
be made
B. they have failed to specify where delivery of the goods is to
be made
C. they have failed to specify the quality or grade of the goods
to be delivered
D. they have failed to specify the price of the goods to be
delivered
23) When a buyer rejects nonconforming goods and purchases
the appropriate goods from a different seller, this is an example
of which of
the following:

8. A. Cover
B. Specific Performance
C. Lawsuit for Money Damages
D. Revoking Acceptance
24) Which of these is not a requirement for disclaiming a
warranty?
A. Statutory authorization
B. A conspicuous writing
C. Explaining why the warranty is being disclaimed
D. Including the word merchantability if merchantability is to
be disclaimed
25) "What if everyone took these same actions" is a question
sometimes called the
A. universalization approach
B. utilitarian approach
C. functionality approach
D. morality approach
26) The utilitarian approach to moral philosophy was founded
by
A. Jeremy Bentham
B. Immanuel Kant
C. Cicero
D. Kenneth Lay
27) Stan is an investment manager. He has received money
from various investors with a promise of very high returns on
their investments.
The invested money is not supplying enough capital in order to
pay the returns promised, so he has started using new
investor's money to

9. pay older investors. By advertising and by word of mouth,
people are anxious to invest with Stan because of the money
being paid, and
with the influx of new investors, he is able to continue
operating. Stan is
A. operating an insider trading operation
B. racketeering
C. guilty of conspiracy to defraud
D. operating a Ponzi scheme
28) Ben is the manager of a branch of a large bank. He has
regularly taken money from customer's accounts for his own
use and changed
the bank records to cover his actions. Ben is guilty of
A. a conspiracy
B. a Ponzi scheme
C. racketeering
D. embezzlement
29) The Sarbanes-Oxley Act (2002) imposed stricter
regulations on how corporations do business through
regulations in each of the
following areas EXCEPT
A. tax compliance
B. financial reporting
C. corporate governance
D. auditing

10. 30) Joan is the CFO of Para Corp. and is a year from retirement.
In order to guarantee herself a very substantial bonus and to
boost her
retirement package, she knowingly certifies false financial
reports making the company appear to be much more
profitable than it really
is. She further takes steps to assure that the financial report
was not reviewed through internal controls maintained by Para
Corp. Under
the provisions of the Sarbanes-Oxley Act (2002), if her fraud is
NOT part of a larger scheme, what criminal penalties are
possible for
Joan?
A. $1 million in fines and up to 10 years in prison
B. $2 million in fines and up to 12 years in prison
C. $5 million in fines and up to 15 years in prison
D. $10 million in fines and up to 20 years in prison