a. 
 
a. 
Business Law
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
2) Someone who believes that law is a reflection of those in power, believes in which
school of jurisprudential thought?
a. The Analytical School.
b. The Natural School.
c. The Command School.
d. The Historical School.
e. The Psychological School.
4) The remedy, or relief, that was available in the law courts of England was:
a. specific performance.
b. monetary awards for damages.
c. fines and imprisonment.
d. returning the parties to their positions before the dispute arose.
e. Any of the above, and any other remedy determined to be fair in the particular case.
5) Chancery Courts were also known as:
a. Criminal Courts.
b. Equity Courts.
c. Legal Remedy Courts.
d. Merchant Courts.
e. Law Courts.

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a. 
 
a. 
Business Law

6) When statutes are organized by topic, the resulting compilation of law is known as:
a. precedent.
b. a code.
c. civil law.
d. topical presentation.
e. common law.
7) Which of the following is not empowered to establish administrative agencies?
a. A state executive branch.
b. Congress.
c. A federal or state judicial branch.
d. A state legislative branch.
e. The federal executive branch.


10) If there is an area of interstate commerce that the federal government has chosen not to regulate, the states can:
a. not regulate in that area because states cannot pass laws affecting interstate com- merce.
b. regulate in that area so long as the state law does not unduly burden interstate com- merce.
c. not regulate in that area because the federal government's decision to not regulate in an area implies that there is to be no regulation in that area at any level.
d. regulate without restriction in that area.
e. regulate in that area so long as it first gets the requisite approval from Congress.

12) Substantive due process requires that:
a. a defendant not be tried twice for the same crime.
b. a notice and hearing be given before one is deprived of life, liberty or property.
c. a criminal defendant have an attorney present at all times.
d. government statutes, ordinances and regulations be clear and not overly broad.
e. a law treat all persons the same.
13) Assume that Congress passes a statute that bans the use of personal watercraft on
any body of water before 8:00 a.m. and after 9:00 p.m. Congress based its passage
of the law on its authority to regulate interstate commerce because it believed that
fewer persons would buy personal watercraft because of this law. In a constitutional
challenge, most likely:
a. the law would be found unconstitutional because any effect on interstate commerce is
too remote for this to be a valid exercise of federal power.
b. the law would be constitutional because of the federal government's police power.
c. the law would be found to violate the Equal Protection Clause because it applied on
water, but not on land.
d. the law would be found constitutional only if it did not conflict with a valid state law.
e. the laws would likely be a violation of equal protection rights under the U.S. Constitu-
tion.
14) Judges for federal courts are selected:
a. by the sitting federal judges within the same circuit.
b. by the President, subject to confirmation by the Senate.
c. by the Supreme Court justices.
d. by election by the voters within the state where they preside.
e. by nationwide election.
15) The Court of Appeals for the Federal Circuit is the appellate court for:
a. federal Circuit Courts.
b. the U.S. Tax court and U.S. Bankruptcy Court.
c. federal district court cases.
d. the Court of Claims, the Patent and Trademark Office and the Court of International
Trade.
e. both C and D.
19) Which of the following pleadings could typically be filed by a defendant in a lawsuit?
a. Answer and complaint.
b. Complaint and cross-complaint.
c. Cross-complaint and reply.
d. Answer and cross-complaint.
e. Motion to intervene and complaint.

20) When an appellate court receives a case appealed to it, it will:
a. retry the case with a new jury.
b. review the record of the trial court so see if there were any errors of law made by the
judge.
c. review the jury's verdict to see if the appellate court judges would have reached the
same result.
d. review the record to see if it would have made the same decision as the jury.
e. retry the case with the appellate court judge acting as the jury.
21) In general, an appellate court might typically reverse which of the following?
a. The trial court's conclusions of law.
b. The jury's findings of fact.
c. Both A and B.
d. Neither A nor B.
e. The trial court's findings of fact.
22) Arbitrators and mediators are also called:
a. impartials.
b. disinteresteds.
c. dispassionates.
d. neutrals.
e. equitables.
23) The best description of misappropriation of the right to publicity is:
a. publicizing private information about someone without that person's consent.
b. publishing the creative work of another and claiming that it is yours.
c. claiming credit for the accomplishments of another.
d. publicly claiming to have accomplished something that you have not accomplished.
e. attempting to use another living person's name or identity for commercial purposes
without that person's consent.
24) A landowner owes a duty of ordinary care to:
a. licensees and invitees.
b. licenses and invitees only if business activities are involved.
c. invitees only.
d. licensees only.
e. none of the above.
f. 
 
a. 
25) Sam, who weighs 250 pounds, calls his 110 pound girlfriend, Alice, one morning
while she is at work. He says, "You are to stay in your office until midnight. If you
come to my house before midnight, I will make you sorry that you did." Assuming
that Alice usually leaves her office at 5:00pm but stays until midnight that night
because of the threat, if Alice files a false imprisonment case against Sam, a court
most likely will find that:
a. there was no false imprisonment because Sam and Alice previously knew one another.
b. there was false imprisonment because Sam's threat forced Alice to stay in the office.
c. there was no false imprisonment because Alice could have left the office and stayed
away from Sam's house, and because the threat related to future harm.
d. there was false imprisonment only if Alice can prove she reasonably feared Sam.
e. there was no false imprisonment because Alice's office was not a prison, even though
it might have felt like one to Alice. 

 

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a. 
Business Law
2) Sam is charged with the crime of theft and has also had a civil suit filed against him by the victim. Which of the following could not be a consistent outcome?
a. Not guilty in the criminal case, not liable in the civil case.
b. Guilty in the criminal case, not liable in the civil case.
c. Not guilty in the criminal case, liable in the civil case.
d. Guilty in the criminal case, liable in the civil case.
e. Both A and D.
3) Which of the following is true about how plea bargaining usually works?
a. A defendant pleads guilty to the charged crime or to a lesser offense in exchange for receiving a lighter sentence than if the defendant were to be tried and found guilty of the original charges.
b. A defendant who is serving a prison sentence for a crime the defendant was convicted of can get the sentence reduced for good behavior, community service or similar reasons.
c. A defendant waives certain constitutional rights in exchange for a lighter sentence.
d. A defendant waives the right to a jury trial and the judge determines guilt or innocence.
e. Both C and D.
4) Which is true about corporate criminal liability?
a. Because a corporation cannot be sent to prison, they generally cannot be held crimi- nally liable for the actions of their officers.
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 never been subject to criminal liability because they cannot go to jail.
d. There can be liability for both the individuals who commit crimes and for the corpora- tion on whose behalf the crimes were committed.
e. There can be no liability for individual employees of a corporation, but the corporation can be held responsible for the crimes committed.
5) Which of the following statements is true?
a. The attorney-client privilege is the only privilege that has been recognized under the
Fifth Amendment.
b. Even if immunity from prosecution has been granted, the defendant may still refuse
to testify.
c. The guarantee has been extended to include all business records and documents.
d. The Fifth Amendment guarantee against self-incrimination does prohibit the taking of
fingerprints against a suspect's will.
e. The Fifth Amendment guarantee against self-incrimination does not prohibit the tak- ing of fingerprints against a suspect's will.
6) The Miranda decision requires that a criminal suspect be notified of the following
except:
a. the fact that anything the suspect says may be used against the suspect.
b. the right to have an attorney appointed if the suspect cannot afford one.
c. the right to a trial by jury.
d. the right to have a lawyer present during interrogation.
e. the right of the suspect to remain silent.
7) The following can properly be the subject of a patent except:
a. asexually reproduced plants.
b. conceptual ideas.
c. designs for manufactured objects.
d. mechanical processes.
e. compositions of matter.

12) Which of the followi ng statements is true regard i ng the relationsh i p of law and eth ics?
a. The legal requirements will almost always be the same as the ethical requirement because the law is based on the ethical standards.
b. In some cases ethics will require a higher standard of conduct than the law, but never vice versa.
c. In some cases the law will require a higher standard of conduct than ethics, but never
vice versa.
d. There is a disagreement about legal standards of conduct but not about ethical stan- dards of conduct.
e. Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.

13) Someone who believes that moral decisions should be made such that the greatest
amount of good in total results from the actions, believes in which moral theory?
a. Kantian ethics.
b. Rawls's distributive justice theory.
c. Utilitarianism.
d. Ethical fundamentalism.
e. Ethical relativism.
14) A criticism of utilitarianism is that:
a. moral and ethical rules are too rigid and fixed over time.
b. some persons would take actions that they believe to be moral, but which most persons in society believe to be immoral.
c. decisions require the measurement of qualities that are not subject to precise measurements.
d. decisions are not allowed to take into account an individual's station or place in society.
e. Both C and D.

16) Big Green Company is considering introducing a new product to replace an existing
product. The new product would result in increased revenues, but slightly lower over-
all profits because the product will cause injury to a few users and Big Green will
compensate persons who are injured. The introduction of this product would be the
proper decision under:
a. the moral maximum theory, but not under the moral minimum theory.
b. neither the moral minimum theory nor the profit maximization theory.
c. both the moral minimum theory and the profit maximization theory.
d. the moral minimum theory, but not under the profit maximization theory.
e. the profit maximization theory, but not under the moral minimum theory
f. 
g. 

18) Under the objective theory of contracts, whether or not a contract exists is based on:
a. the statutory offers.
b. the objective contractor standard.
c. the judicial standard.
d. the objective constitutional standard.
e. the reasonable person standard.
19) What is required for a contract to be an express contract?
a. It is performed immediately after formation.
b. It is performed for mutual benefit.
c. It is stated in words.
d. It is written and signed.
e. All of the above.
20) A contract under seal is called a/an:
a. quasi contract.
b. informal contract.
c. bilateral contract.
d. express contract.
e. formal contract.

22) Offeror says, "I'll sell you my car for $15,000." Offeree says, "I accept your offer but
will pay $14,000." What is true at this point?
a. This was a conditional acceptance.
b. Offeror must sell car to Offeree if Offeree gives Offeror $15,000.
c. There are two open offers.
d. The offeree's statement was a revocation of the $15,000 offer.
e. The only open offer is for $14,000.
23) Mary promises to give her car to her friend. The friend sells his current car at a fairly
low price because he is expecting to get a nearly new car at no cost from his rich and
generous friend, Mary. Mary changes her mind and decides to keep the car. If the
friend sues Mary, the court most likely will:
a. based on the theory of promissory estoppel, require Mary to pay damages to the friend for any loss he incurred in connection with Mary's not keeping her promise.
b. require Mary to give her friend the car because Mary made an illusory promise.
c. require Mary to give her friend the car because his sale of his car was consideration.
d. not require Mary to do anything unless it can be proven that she subjectively intended
to cause her friend monetary difficulty.
e. not require Mary to do anything because this was a gift promise.


b. 
c. 
 
a. 
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) In general, what is the effect of one party being mistaken about the subject matter of a contract?
a. The mistaken party can rescind the contract.
b. Either party can rescind the contract, and the mistaken party can recover damages.
c. Neither party can rescind the contract or recover damages.
d. Either party can rescind the contract and/or recover damages.
Either party can rescind the contract.

3) The knowledge of a statement's falsity, or the "guilty mind," in a fraud in the inducement case is also known as:
a. parol knowledge.
b. justifiance.
c. reliance.
d. scienter.
e. guilty intent.
5) Wilson v. Western National Life Insurance Company, involving the party who lied allegedly regarding prior drug abuse in order to obtain life insurance, what was the holding of the court when the party later died from a drug overdose?
a. 
b. The life insurance company had to pay the proceeds because if the plaintiff's medical records had been consulted, the drug abuse would have been discovered.
c. The life insurance did not have to pay the proceeds only because the deceased's wife was unaware of the misrepresentation.
d. The life insurance had to pay the proceeds because the deceased's wife actually paid the premiums.
e. The life insurance company had to pay the proceeds because the plaintiff was not using drugs during the time the application for insurance was made.
f. The life insurance company did not have to pay the proceeds because of the concealment of the drug abuse.
6) Undue influence is characterized by one party being put at a disadvantage in a contract due to:
a. a party taking advantage of superior knowledge about the subject matter in a contract.
b. a party taking advantage of a fiduciary relationship.
c. a party taking advantage of the other party's legal circumstances.
d. a party taking advantage of economic advantage in a transaction.
e. a party taking advantage of it being less urgent for that party to reach an agreement.
7) If a judge rules that a party has lost its case because of the Statute of Frauds, the judge has essentially stated that:
a. the losing party was found by the court to have lied, and will therefore lose the case.
b. the losing party purposely deceived the other party about a material fact.
c. the losing party cannot enforce an oral contract that should have been in writing.
d. the winning party has proven criminally fraudulent conduct on the part of the losing party.
e. the losing party is not allowed to introduce evidence to contradict a written agreement.
8) Frank had a bicycle that he advertised for sale, honestly believing it to be a 1999 model even though it was actually a 1996 model. There were significant improve- ments in the frame material, not readily apparent, made between 1996 and 1999 to this model bicycle. The buyer believed Frank's statement that it was a 1999 model, and was excited to be getting a model incorporating the improvements. After discov- ering that the bike was actually a 1996 model, the buyer could avoid the contract on the basis of:
a. unilateral mistake.
b. fraud.
c. mutual mistake.
d. Band C.
e. none of the above. 
f. 
 
a. 
11) been an assignment of rights under a contract, who has a duty to notify the obligor of the assignment?
a. The assignor.
b. The assignee.
c. Both the assignor and the assignee.
d. Neither the assignor nor the assignee.
e. Whichever party is nearer the obligor geographically.

13) When there is an accord and satisfaction, when are the duties under the original contract discharged?
a. When the accord is formed.
b. When the duties of the original contract are fully performed by one of the parties.
c. When the original contract is breached.
d. When the duties under both the original contract and the accord are fully performed by both parties.
When the duties under the accord are fully performed by both parties.

16) What is tender of performance in connection with a contract?
a. Performance whose terms have been ordered by the court.
b. One party's completion of duties under the contract.
c. An unconditional offer by a contracting party to perform his or her obligations under a contract.
d. A party's offering substitute performance that is superior to the performance called for in the contract.
e. A party's offering to perform prior to full payment.


17) What kind of damages will be awarded when there is no actual financial loss?
a. Special damages.
b. Nominal damages.
c. Compensatory damages.
d. Consequential damages.
e. There are no damages that a court will award in the absence of an actual financial loss.
20) What was the result in the Ethics Spotlight in the book in which "Kurupt" was allegedly induced by Death Row Records to breach an exclusive recording agreement with the Brumfield?
a. Death Row Records was held liable for the tort of intentional interference with a con- tract but could not be held liable for punitive damages.
b. Death Row Records was held liable for the tort of intentional interference with a con- tract but could not be held liable for compensatory damages.
c. Death Row Records was not held liable for anything because the plaintiff had been prosecuted for fraudulent activities, and Death Row Records assisted the singer in avoiding a bad deal.
d. Death Row Records was not held liable for the tort of intentional interference with a contract.
e. Death Row Records was held liable for the tort of intentional interference with a contract, and was held liable for compensatory and punitive damages.


a. 
b. 
 
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Business Law


7) Which of the following is true relating to a "firm offer" under the UCC?
a. It must be in writing and signed by the merchant.
b. It can be made only by a merchant.
c. It may provide that the offer remain open for any period of time up to six months.
d. A, Band C.
e. A and B only.


15) Josh had a computer that needed repair. He took the computer to a used computer
dealer that repaired computers as well. While talking with the owner, Josh learned
that the owner also knew how to repair bicycles. Josh happened to need some re-
pairs done on his bike, so he left it at the computer shop as well. A week later, Josh
went to pick up his bike and computer. When he got to the store, the owner said he
had bad news. He had hired a new employee who was totally incompetent and had
sold a number of items that were in for repair. He sold both Josh's computer and his
bike. The store owner knows who purchased them from the credit card records. In
this situation, assuming he can locate the purchasers, Josh can recover:
a. his computer, but not his bike.
b. both his bike and his computer.
c. his bike, but not his computer.
d. neither his bike nor his computer.
the computer only if Josh can establish that the purchases had not resold it.

19) What is the right of the buyer or lessee to purchase or rent substitute goods if the
seller or lessor fails to make delivery of the goods called?
a. The right to recovery.
b. The right to purchase.
c. The right to cover.
d. The right to recoup.
e. The right to capture.

 

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