QUESTION 1
Which of the following is a FALSE statement?
A. The E-Sign Act completely prevents the use of electronic signatures for contracting on the Internet.
B. If an employer wants to preserve the at-will employment status of his or her employees, the employer
should insert disclaimers in its codes and handbooks that nothing therein can be construed to create an
express or implied employment contract.
C. A basic principle of the National Labor Relations Act is that employers cannot terminate employees in
order to discourage or encourage union membership.
D. "Going public" by a company offering to sell shares of stock to the public typically results in access to
broader financial markets from which to obtain capital.
QUESTION 2
1. The tort of assault and the tort of battery are:
A. Two names for the exact same tort.
B. Strict liability torts.
C. Independent torts which can occur separately from one another.
D. Require proof of each of the separate elements of negligence.
QUESTION 3
1. The Uniform Commercial Code is
A state law governing commerce
A federal law governing commerce
An international law governing commerce
A model act
QUESTION 4
1. Which of the following is true relating to a "firm offer" under the UCC?
It can be made only by a merchant.
It must be in writing and signed by the merchant.
It may provide that the offer remain open for any period of time up to four months.
A and B only.
QUESTION 5
1. Central Data Corporation and Digital, Inc., are competitors. They form a joint venture to research,
de¬velop, and produce new software for a particular line of computers. This joint venture is
a per se violation of the Sherman Act
exempt from the antitrust laws.
subject to continuing review by the appropriate federal agency.
subject to the Rule of Reason.
QUESTION 6
1. Which of the following is a correct statement?
One of the requirements for a suit based on strict liability in the U.S. is a failure to exercise due care.
The doctrine of strict liability applies only to abnormally dangerous activities, such as construction
blasting with explosives, but not to products and goods manufactured and sold to consumers since
manufacturing is not normally ultra-hazardous.
To succeed in a products liability lawsuit based on common law negligence, the injured plaintiff must
prove that there was a failure to exercise due care by the manufacturer or seller of the product.
One essential requirement for a products liability lawsuit based on strict liability is clear and convincing
evidence of a failure to exercise reasonable care.
QUESTION 7
1. Which of the following is FALSE regarding lawsuits pursuant to Title VII of the Civil Rights Act?
a. An employer can be liable for discrimination pursuant to Title VII based on the "disparate impact"
theory even if there is no evidence of intentional discrimination.
b. Language discrimination based on an English-only policy can be grounds for a national origin
discrimination lawsuit if the employer does not have a legitimate business reason for requiring its
employees to speak English.
c. Discriminating against applicants for employment based on their appearance because they are not
sufficiently attractive, pretty, or handsome is as a general rule a Title VII violation since the non-attractive
are discriminated against.
d. Sexual stereotyping of women based on stereotypical notions of appropriate female behavior by male
managers is a violation of Title VII.
QUESTION 8
1. A minor buys a car, and continues to drive the car for more than a reasonable time after turning 18.
This action would constitute a(n):
Express disaffirmance.
Implied disaffirmance.
Express ratification.
Implied ratification.
QUESTION 9
1. The difference between the old common law tort of deceit and the doctrine of negligent
misrepresentation is the element of
Intent
Detriment
Materiality
Believability
QUESTION 10
1. Which of the following best describes the overall scheme of pollution regulation in the United States?
Exclusively federal law.
Exclusively state law with minimal federal oversight.
Exclusively state law, but with considerable federal oversight.
Primarily federal law, but considerable state law as well.
QUESTION 11
1. Which of the following is NOT an Equitable remedy under the common law:
a. Injunction
b. Money Damages
c. Rescission
d. Specific Performance
QUESTION 12
1. Responsibility for the overall management of Beta, Inc., a corporation, is entrusted to
the board of directors.
the corporate officers and managers.
the owners of the corporation.
the promoters of the corporation.
QUESTION 13
1. By which of the following methods may a corporation not be dissolved?
By unanimous written consent of all the shareholders.
By an act of the legislature of the state of incorporation.
By the courts, if the directors are hopelessly deadlocked.
By the courts, if the corporation refuses to pay dividends for the fiscal year.
QUESTION 14
1. A minor good faith deviation or omission in an otherwise complete performance of a contractual
obligation in a construction contract is known as:
Substantial performance.
Nonmaterial performance.
Nonessential performance.
Material performance.
QUESTION 15
1. What third party cannot sue to enforce rights in the original contract?
a. A third party creditor beneficiary
b. A third party done beneficiary
c. A third party incidental beneficiary
d. An assignee.
QUESTION 16
1. Which of the following statements is or are true regarding sales contract terms left open under the
UCC?
Leaving open price terms makes the contract unenforceable.
The price is a “reasonable” price at the time of delivery if the price term is left open.
The price may be fixed by a market, a third person, or another standard, if so provided in the contract.
B and C only.
QUESTION 17
1. A wholesale distributor who is named in a product liability suit based on strict liability could avoid
liability if:
The plaintiff had not purchased the product causing the injury.
The distributor exercised reasonable care in all ways with respect to the product causing the injury.
This product had been used for many years by other users without injury.
This defect which caused the injury occurred after the product left the distributor.
QUESTION 18
1. A non-public person in a tort defamation lawsuit must prove all of the following except:
A. There was an untrue statement made that impugned the plaintiff’s character or reputation.
B. The statement contained a factual assertion and was not a mere opinion.
C. The statement was communicated by the defendant to at least one person other than the plaintiff.
D. The defendant definitely knew that the statement was false.
QUESTION 19
1. Which of the following is a false statement?
The breach of duty element in the test for negligence liability in the U.S. is governed predominantly by
the reasonable person standard.
The doctrine of res ipsa loquitur can apply if an event causing the harm normally does not occur in the
absence of negligence.
A battery occurs only if the victim suffers actual serious physical harm, that is, the victim is “battered.”
One may be able to recover damages for emotional distress in a tort lawsuit for negligence.
QUESTION 20
1. State law provides that existing shareholders may buy new issues of stock in the same proportion as
their current holdings. This is done to allow the current stockholders to keep the same voting and
dividend rights they had before the new issue. This right is known as a right of:
Redemption.
Ratification.
Preemption.
First refusal.
QUESTION 21
1. Which of the following is not one of the general categories of torts?
Strict liability.
Criminal.
Negligence.
Intentional.
QUESTION 22
1. Which of the following constitutes illegal discrimination pursuant to Title VII of the Civil Rights Act?
a. A shoe store refuses to hire Hispanics as employees.
b. A sporting goods store excludes applicants over the age of 40.
c. A large department store refuses to hire anyone in a wheel chair.
d. None of the above.
QUESTION 23
1. Jim orally promises to work for Pat, and Pat orally promises to employ Jim at a rate of $500 a week.
This contract must be in writing to be enforceable if Jim promises to work for
at least five years.
five years but either party can terminate the contract on two weeks’ notice.
less than a year.
life.
QUESTION 24
1. Which of the following is a true statement?
A. A contract that benefits one party to the contract over the other is automatic grounds for undue
influence.
B. A contact that was entered into by one party unduly influencing the other is a voidable contract.
C. The primary purpose of the Statute of Frauds in contract law is to punish bad people who perpetuate
frauds using contracts.
D. A fully performed oral contract which should have been in writing is null and void due to the Statute
of Frauds due to the lack of the writing.
QUESTION 25
1. Which of the following is a true statement?
It is unlawful for an employer in the U.S. to hire illegal immigrants unless the employer is based in a
border region with very high employment.
As a general rule, it is illegal in the U.S. for private sector employers to use polygraph tests on their
employees.
The WARN Act in the U.S. prohibits a company from closing a major plant unless it gets the permission of
the Department of Labor.
A closed shop which requires union membership as a condition of hiring is legal pursuant to federal labor
laws in the United States.
QUESTION 26
1. The procedure which uses a neutral third party to assist disputing parties reach a resolution is:
Conciliation.
Mediation.
Fact finding.
Arbitration.
QUESTION 27
1. The management responsibilities of a shareholder include:
Voting for the board of directors.
Voting on mergers and other fundamental changes to the corporation.
Voting to pay dividends.
A and B only.
QUESTION 28
1. Which of the following is true regarding a contract modification under the UCC?
A contract modification needs new consideration to be enforceable, just like at common law.
A contract modification needs no new consideration.
Modifications must always be in writing to be enforceable.
A and C only.
QUESTION 29
1. Which of the following statements is not correct?
Common law is a term for law that is common throughout the world in all major legal systems.
Money damages is the normal remedy at law today in common law legal systems.
Equitable remedies include injunctions and decrees of specific performance.
Generally, a state court can exercise jurisdiction over anyone within the boundaries of the state.
QUESTION 30
1. In order for an offer to be valid, the following must be met except:
There is an objective intent by the offeror to enter into a contract.
The offer must be in writing and signed by the offeror.
The offer must be communicated to the offeree.
The offer must be certain enough that most reasonable people can figure out what is being offered.
QUESTION 31
1. Countervailing Duties can be assessed on imports coming into the United States if:
a. There is an unfair subsidy found in the creation of these products.
b. The products are being "dumped" into the United States.
c. A. and B.
d. None of the above.
QUESTION 32
1. Under the common law, a tort can best be defined as:
A. Any violation of an ethical or moral duty.
B. Another term for a crime or misdemeanor.
C. An action done in breach of an agreement that allows the aggrieved party to recover damages.
D. A civil wrong that allows an injured person to recover damages.
QUESTION 33
1. The statute enacted to combat organized crime and which imposes liability on wrongdoers is:
The Racketeer Influenced and Corrupt Organizations Act.
The Organized Crime and Innocent Victims Act.
The Crime Victims Compensation Act.
The Habitual Criminal Damages Recovery Act.
QUESTION 34
1. Which of the following is a true statement?
The Bill of Rights in the U.S. Constitution confers absolute rights on citizens of the U.S, not subject to
interpretation by the U.S. Supreme Court, and not capable of being infringed on by government.
Political speech that would otherwise be protected by the U.S. Constitution’s First Amendment loses that
protection if its source is a corporation.
The Federal Trade Commission is an example of an independent federal level regulatory agency in the
United States.
Administrative rules and regulations are not binding like the laws of the U.S. Congress since the heads of
administrative agencies are not elected.
QUESTION 35
1. As to all tort lawsuits:
a. There must be a legal duty owed to the plaintiff by the defendant.
b. There must be the intent to harm by the actor.
c. There must be the showing of a defect.
d. None of the above.
QUESTION 36
1. Which of the following is FALSE about agency relationships?
a. The agent owes a duty of obedience to the principal.
b. The agent owes a duty of due care to the principal.
c. The agent owes a duty of an accounting to the principal.
d. The agent does not own a fiduciary duty to the principal since the agent is really only a "glorified"
employee.
QUESTION 37
1. Which of the following is true about the Americans with Disabilities Act?
It affects only the employment of persons with disabilities.
It clearly sets limits and requirements relevant to employers.
It not only prevents discrimination based on disabilities, but employers can be required to incur costs in
order to accommodate disabled individuals in their jobs.
It requires employers to ask about an applicant’s disabilities so that the employer knows if the applicant
is covered.
QUESTION 38
1. Consequential damages are:
Awarded to give the nonbreaching party the “benefit of the bargain.”
Are fixed in an amount prior to an actual breach.
Arise from foreseeable consequences related to the contract and its breach.
Are not awarded in the case of personal services contracts.
QUESTION 39
1. When is an employer responsible for the negligent torts of its employees?
a. When there is vicarious liability and the doctrine of respondeat superior applies.
b. When the torts are committed by the employee acting in the "course and scope of employment."
c. When the employer is directly negligent for selecting and/or supervising an incompetent and careless
employee who commits the tort.
d. All of the above.
QUESTION 40
1. A bridge’s design is defective and soon after completion it begins to visibly sway in the wind. Everyone
stays off, except Carl, who wants to show off. Carl falls from the bridge and sues its maker, who can raise
the defense of
assumption of risk.
commonly known danger.
product misuse.
none of the above.
