1. The ______ in a third-party beneficiary contract is the party to the contract who made
the promise that benefits the third party.
Obligee
Assignor
Promisor
Promisee
Obligor
2. Assuming proper proof, which of the following represents damages a buyer or lessee
may recover in the event of a breach?
Incidental damages, consequential damages, and remedial damages
Remedial damages but not consequential damages or incidental damages
Incidental damages and consequential damages, but not remedial damages
Consequential damages but not incidental damages or remedial damages
Incidental damages but not consequential damages or remedial damages
3. Workers’ compensation laws are primarily federal laws.
True
False
4. Which of the following may be held liable in a malpractice action?
Doctors, accountants, and real estate brokers
Accountants and real estate brokers but not doctors
Doctors and real estate brokers but not accountants
Doctors but not accountants or real estate brokers
Doctors and accountants but not real estate brokers
5. Which of the following is true regarding the intent needed for an intentional tort?
The intent at issue is intent to harm that results in an injury, physical or economic, to
another.
The intent at issue is not intent to harm and is not intent to engage in a specific act.
Instead, negligence will suffice.
The intent at issue is intent to harm that results in physical injury to another. Economic
injury is insufficient.
The intent at issue is not intent to harm but, rather, is intent to engage in a specific act,
which ultimately results in an injury, physical or economic, to another.
The intent at issue is not intent to harm but, rather, is intent to engage in a specific act,
which ultimately results in a physical injury to another. Economic injury is insufficient.
6. Which of the following is true regarding a signature on a document falling within the
statute of frauds?
So long as it is meant as a signature, a party required to sign may sign at any place on
the document.
Any party required to sign must sign at the end of the document.
There is no requirement of any signature of either party to satisfy the statute of frauds.
Any party required to sign must sign both at the end and at the beginning of the
document.
Any party required to sign must sign at the beginning of the document.
7. A[n] ______ mistake is a mistake that is shared by both parties to an agreement.
Double
Mutual
Unilateral
Unclear
Clear
8. Under the market share theory, a plaintiff may be able to recover in a products liability
action even if the plaintiff cannot trace the harmful product to a particular manufacturer.
True
False
9. Under a strict product liability theory, who is considered a reasonably foreseeable
party who may recover if injury is sustained?
The buyer only.
Only the buyer, the buyer’s family, and the buyer’s guests.
The buyer, the buyer’s family, the buyer’s guests, and foreseeable bystanders.
Only the buyer and the buyer’s family.
Only the buyer and any one present in the buyer’s home when injury is sustained.
10. A mistake of fact is an erroneous belief about the facts of the contract at the time the
contract is concluded.
True
False
11. For purposes of jurisdiction, an LLC is considered a citizen of every state in which its
members reside.
True
False
12. The courts generally hold that landowners have a duty to protect individuals on their
property.
True
False
13. Courts usually award punitive damages in cases in which the offender has committed
______.
A tort directly involving negligence per se
Negligence
Strict liability offense
A res ipsa loquitur offense
Gross negligence
14. The concept of at-will employment excludes the concept that an employee may quit
at any time.
True
False
15. In the area of employee testing, which of the following measures a psychological trait
needed to perform a job?
Content validity
Criterion-related validity
Object validity
Construct validity
Performance validity
16. Under the UCC, how may an acceptance be made?
By any reasonable means of communication.
Only by electronic communication or by a writing.
Only by facsimile or by mail.
Only by a writing.
Only orally or by a writing.
17. Under the UCC a delay in delivery or nondelivery, in whole or in part, is not a breach
in circumstances in which performance has been made ______ because a contingency has
occurred that was not contemplated when the parties reached the agreement.
Unprofitable
Unreasonable
Impracticable
More difficult
Less profitable
18. In some situations, the law specifies the duty of care one individual owes to another.
True
False
19. For purposes of determining capacity, intoxicated persons include those under the
influence of alcohol, but not drugs.
True
False
20. Which of the following is true regarding the law of negligence in Germany?
It focuses only on unconscious negligence.
Both mental and physical capabilities are taken into account in determining whether a
defendant is negligent.
It focuses only on conscious negligence.
Courts distinguish between conscious and unconscious negligence with defendants who
have engaged in only conscious negligence being found not guilty.
It is the same as the law of negligence in the United States.
21. Which of the following must a plaintiff generally show in order to recover in a product
liability lawsuit?
That the defendant was negligent.
Only that the product is defective.
That the product is defective, that the defect existed when the product left the
defendant’s control, and also that the defendant was negligent.
That the product is defective and also that the defect existed when the product left the
defendant’s control.
That the defect should have been discovered and fixed prior to sale.
22. If a quasi-contract is imposed, the amount of damages for a breach is based upon the
fair market value of any service provided to the defendant.
True
False
23. Which of the following are the categories protected by Title VII?
Race, color, religion, sex, national origin, and age
Race, color, religion, sex, and national origin
Race and color
Race, color, and religion
Race, color, religion, and sex
24. Which of the following was the result in Thomas P. Lamb v. Tony Rizzo, the case in the
text in which the defending newspaper reporter claimed that he could not be held liable
to the plaintiff for making alleged defamatory statements because the plaintiff’s
reputation as a kidnapper and murderer serving three life sentences was so bad that his
reputation could not be further harmed?
The court allowed the lawsuit to proceed ruling that whether the plaintiff already had a
bad reputation was irrelevant in relation to the lawsuit involved, an action for libel,
although the plaintiff’s reputation would likely have barred an action for slander.
The court allowed the lawsuit to proceed ruling that whether the plaintiff already had a
bad reputation was irrelevant in relation to the lawsuit involved, an action for slander,
although the plaintiff’s reputation would likely have barred an action for libel.
The court allowed the lawsuit to proceed ruling that whether the plaintiff already had a
bad reputation was irrelevant in relation to a defamation lawsuit.
The court dismissed the lawsuit on the basis that the statements were not false but also
recognized that the only proof justifying application of the libel-proof doctrine is proof
that a defendant has been sentenced to death.
The court dismissed the lawsuit recognizing that the facts fit within the jurisdiction’s
description of when the libel-proof doctrine might apply based upon the plaintiff’s already
bad reputation.
25. What does the UCC say regarding a limitation of consequential damages for injury to
the person in the case of consumer goods?
A limitation of consequential damages for injury to the person is acceptable so long as
the injuries are not life threatening.
A limitation of consequential damages for injury to the person is analyzed in the same
way as a limitation of consequential damages where the loss is commercial.
A limitation of consequential damages for injury to the person is prima facie
unconscionable.
A limitation of consequential damages for injury to the person is acceptable so long as
both parties are represented by an attorney.
A limitation of consequential damages for injury to the person is acceptable so long as
any consumer was represented by an attorney.
26. Under the Uniform Commercial Code, contracts for the sale of goods totaling more
than ______ must be in writing.
$600
$200
$300
$500
$1,000
27. Federal law is the primary method by which to interpret sales contracts.
True
False
28. _______________ damages are a small amount of money given to recognize that a
defendant did indeed commit a tort in a case in which there were no compensable
damages suffered by the plaintiff.
Compensatory
Punitive
Revenge
Retaliatory
Nominal
29. In recent years the number of sexual harassment claims filed under Title VII has been
in decline.
True
False
30. Strict liability is liability without fault.
True
False
31. Which of the following is not a defense available to employers charged with age
discrimination under the Age Discrimination in Employment Act?
The bona fide occupational qualification defense
That decisions are based on reasonable factors other than age
The qualified but aged defense
The operation of a bona fide seniority system
The executive exemption
32. Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At
what point is there a binding contract?
Twenty days after the car is delivered and approved.
When the money is paid.
When the car is delivered.
When the agreement is made.
Ten days after the car is delivered and approved.
33. What type of notice must a party who wishes to replace nonconforming goods and
cure within the time set for performance give the other party?
Notice within 10 days of delivery
Notice within 5 days of delivery
There is no set time so long as notice is given prior to the time set for performance
Notice within 1 day of delivery
Prompt notice
34. In order to proceed in a products liability action, a plaintiff must establish to a
certainty that the product was not damaged after its purchase.
True
False
35. Today’s law of contracts originated from judicial decisions in ______.
France
Italy
Switzerland
Spain
England
36. A[n] ______ beneficiary is a third party who benefits from a contract in which the
promisor agrees to give a gift to the third party.
Incidental
Avowed
Creditor
Donee
Promised
37. The most frequently awarded damages are compensatory damages.
True
False
38. Under the UCC, when is an acceptance effective?
When dispatched only when the telephone is used, otherwise on receipt.
When dispatched only if the U.S. mail is used, otherwise on receipt.
When dispatched.
When received only if acceptance by electronic means is made, otherwise on dispatch.
When received.
39. Which of the following is true regarding the sources of laws that interpret sales
contracts?
The Uniform Commercial code is the only source of law interpreting sales contracts.
Two sources of laws that interpret sales contracts exist: state common law and state
statutory law.
Two sources of laws that interpret sales contracts exist: state common law and the
Uniform Commercial Code.
Three sources of laws that interpret sales contracts exist: state common law, the Uniform
Commercial Code, and state statutory law.
Two sources of laws that interpret sales contracts exist: the Uniform Commercial Code
and state statutory law.
40. Which of the following is true regarding what meets the UCC definition of a good?
Real estate, trade fixtures, and corporate stocks meet the definition of a good under the
UCC, but copyrights do not.
Copyrights meet the definition of a good under the UCC, but real estate, corporate
stocks, and trade fixtures do not.
Trade fixtures meet the definition of a good under the UCC, but real estate, corporate
stocks, and copyrights do not.
Corporate stocks, real estate, and copyrights meet the definition of a good under the
UCC, but trade fixtures do not.
Real estate, corporate stocks, copyrights, and trade fixtures all meet the definition of a
good under the UCC.
41. Which of the following is true regarding oral assignments?
In some cases, assignments may be made orally.
Assignments, regardless of the terms, are not covered by the statute of frauds.
The UCC requires that assignments be in writing when the amount being assigned is
greater than $1,000.
The UCC requires that assignments be in writing when the amount being assigned is
greater than $2,000.
The UCC requires that assignments be in writing when the amount being assigned in
greater than $1,500.
42. Which of the following are common classifications of torts?
Intentional, criminal, and strict liability.
Administrative, civil, and criminal.
Intentional, negligent, and criminal.
Criminal, negligent, and strict liability.
Intentional, negligent, and strict liability.
43. Which of the following would constitute the privacy tort of false light?
Defaming a public figure.
Defaming a public figure for personal gain.
Attributing characteristics or beliefs to a person that he or she does not possess.
Defaming a person with actual malice.
Disclosing private facts about a person in order to obtain some sort of personal gain.
44. A[n] ______ beneficiary is a third party who benefits from a contract in which the
promisor agrees to pay the promisee’s debt.
Incidental
Avowed
Creditor
Donee
Promised
45. When all products of a particular design are defective and dangerous, those products
have which of the following type of defects?
Exclusionary.
Primary.
Design.
Warning.
Manufacturing.
46. Which of the following is a defense used by a defendant to demonstrate that his
alleged negligent behavior was reasonable, given the available scientific knowledge
existing at the time the product was sold or produced?
Reasonable behavior defense.
Reasonable manufacturer defense.
Assumption of the risk.
State-of-the-art defense.
Scientific knowledge doctrine.
47. Which of the following occurs when an individual is confined or restrained against his
or her will for an appreciable period of time?
False detention.
Forcible detention.
False imprisonment.
Contained detention.
Qualified imprisonment.
48. In District of Columbia v. Wayne Singleton, the case in the text involving the singlevehicle bus accident, the court applied the doctrine of res ipsa loquitur because a singlevehicle accident is a type that does not normally occur in the absence of negligence.
True
False
49. Nondisclosure involves the active hiding of the truth about a material fact.
True
False
50. Assumption of the risk is a doctrine which makes it easier for a plaintiff to prevail in a
lawsuit.
True
False
51. n an auction _________, the seller is treated as making an offer to accept the highest
bid.
Without reserve
With controls
With reserve
Without qualifications
Without controls
52. Which of the following is true regarding material considered goods under the UCC?
Minerals taken from real estate and sold by the owner, soil taken from real estate and
sold by the owner, and the right to remove soil from real estate are all considered goods
under the UCC.
The right to remove soil from real estate is considered a good under the UCC, but neither
minerals taken from real estate and sold by the owner nor soil taken from real estate and
sold by the owner are considered goods under the UCC.
Soil taken from real estate and sold by the owner is considered a good under the UCC,
but neither minerals taken from real estate and sold by the owner nor the right to
remove soil from real estate are considered goods under the UCC.
Minerals taken from real estate and sold by the owner and soil taken from real estate and
sold by the owner are considered goods under the UCC, but the right to remove soil from
real estate is not considered a good under the UCC.
Minerals taken from real estate and sold by the owner and the right to remove soil from
real estate are considered goods under the UCC, but soil taken from real estate and sold
by the owner is not considered a good under the UCC.
53. A donee beneficiary is a third party that benefits from a contract in which the
promisor agrees to pay the promisee’s debt in return for compensation plus interest.
True
False
54. In the employer/employee context, the purpose of a covenant not to compete is to
restrict what an employee may do after leaving a company.
True
False
55. Which of the following is an element of a legally binding contract?
Knowledge
Inquiry
