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NEW VERSION
Civil enforcement powers regarding federal antitrust matters belong to _______.

the Treasury Department

the Department of Revenue and Taxation

the FTC and the Department of Justice

the Department of Labor

Which of the following is true of tort law?

It protects people from being tried twice for the same crime.

Tort law typically deals with breach of contract.

It provides compensation to those workers who have been injured on the job.

It sets limits on how people can act and use their resources.

Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not
mention prices. The server takes their order and both Betty and Fred enjoy the meal immensely.
When the bill comes, Fred refuses to pay because the menu had no prices and because he and the
server never engaged in language indicating and offer and acceptance. The server said, Are you

ready to order? and when Fred said Yes, the server merely asked What may I get you
tonight? Which of the following is true?

Fred must pay based on an implied-in-fact contract theory.

Fred must pay based on a promissory estoppel theory.

Fred must pay based on expressed contract theory.

Fred is correct because no contract was formed.

Which of the following statements is true of the WARN Act?

It requires employers to give notice to an at will employee that he/she is being fired.

It requires employers to give notice to employees that they are being subjected to polygraph
tests.

It requires employers to give notice to employees that an unscheduled drug test will be
conducted for all employees.

It requires employers to give notice of a scheduled mass layoff.

_____________ jurisprudence supports the idea that law can and should change to meet new
developments in society.

Sociological

Natural

Historical

Positive law
Which of the following is true of the assumption of risks during delivery of goods?

The buyer is responsible for damages to goods when the seller is about to transfer for shipment.

The seller is liable for any damages incurred to the goods during shipment.

The buyer is liable for any damages incurred to the goods during shipment.

The seller is always responsible for shipping the goods to the buyer.
A 911 emergency response service needs operators who are bilingual in English and Spanish. A few
applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint
on the grounds of discrimination based on nationality. Their complaint is squashed. Here, the
defense of the federal government is on the grounds of _______.

inculpatory evidence

circumstantial evidence

bona fide occupational qualifications

exclusionary rule

Article 6 of the Treaty on European Union, called the Maastricht Treaty, states the EU is founded
on:

private markets

rule of law

specific performance

stare decisis

Interpreting Congressional intent, which of the following is never a bona fide occupational
qualification (BFOQ)?

Race

National origin

Sex

Religion

Ethical formalists maintain that:

the good of the many always supersedes the good of the few.

harm to an individual is allowable as long as it serves a greater good.

harm to individual rights is never justified by an increase in organizational or common good.

values are situational and change based on circumstance.

The classification of crime is based on ________.

punishment imposed if convicted

prior record

location

the judge's prerogative

Which of the following issues of administrative agencies relates to the substantive outcome of
agencies rule-making and adjudicating authority?

The administrative process is overwhelmed with paperwork and meetings.

Enforcement of some laws varies over time.

The reward system usually does not make a significant distinction between excellent, mediocre,
and poor performance.

It is very difficult to discharge unsatisfactory employees.

Which of the following is true of the use of alternative dispute resolution (ADR) techniques?

Disputing parties can agree to use an ADR technique after the dispute arises.

ADR techniques are ineffective once the pretrial process has begun.

Disputing parties cannot use an ADR technique not specified in the original agreement.

Disputing parties must begin a lawsuit to use any form of ADR.

The crucial issue with the continuity factor of a businesss organizational form is _______.

the method by which the business can be dissolved

profit distribution

the method of customer service observed

management style

The ___________ holds that contracts or conspiracies in restraint are illegal only if they constitute
undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are
covered by the Sherman Act.

rules of per se legality

Parker v. Brown doctrine

duty to deal doctrine

rule of reason

Interest-based negotiations are superior to position-based negotiations because:

the difference between the interests of the parties is often large.

interest-based negotiation requires the presence of a judge or magistrate.

position-based negotiation is often only concerned with preparing for litigation.

interest-based negotiations allow room for consideration of non-factual concerns, such as

relationships and long-term interests.

The determination that a crime has been committed and that evidence is sufficient to warrant the
accused standing trial is known as:

nolo contendere.

indictment.

double jeopardy.

probable cause.

Which of the following is true under the regulations of interstate commerce?

Regulation on any activity is appropriate if it aids interstate commerce.

Activities affecting interstate commerce do not come under the power of the deferral
government.

Intrastate activities affecting interstate commerce can be regulated only by the state governments.

The states have the exclusive power to commerce that passes that passes across their lines.

Finishing the construction of a home two days after the contract called for completion (no injury
occurs) most likely will be considered _______.

significant performance

substantial performance

breach of contract

implied performance

Frequent, abusive, threatening phone calls by creditors are most likely to provoke the basis for a
claim of _____________.

intentional infliction of emotional distress

malicious representation

misrepresentation

false imprisonment and malicious prosecution

Which of the following is true of a violation of trade secrets rights?

One must misappropriate another's information.

Unauthorized use of another's information constitutes a violation of trade secrets' rights.

One must use another's information without permission.

Stealing another's intellectual property violates trade secrets' rights.

Which of the following states that parties to a written contract may not introduce oral evidence to
change written terms?

The parol evidence rule

Concurrent conditions

Conditions subsequent

The statute of frauds

In a(n) ___________, the shareholders are taxed only on income distributed.

sole proprietorship

corporation

limited partnership

limited liability company

____________ is a court created rule that limits when courts can review administrative decisions.

The doctrine of estoppel

The doctrine of lapse

The doctrine of exhaustion of remedies

The doctrine of primary jurisdiction

An employee at-will can be fired for which of the following?

Making public statements about the hazardous working conditions in a company.

Making public the fact that the employer was cheating the government on a defense contract.

Taking time off from work to care for a dependent without informing the employer.

Taking time off from work to serve on jury duty after the boss asked the employee to request a
waiver.

The ideas and philosophies that explain the origin of law and its justification are called:

jurisprudence

stare decisis

torts

rule of law

Federal law and business leaders alike favor ____________ as a means of governing private
business ethics.

establishment of federal regulators in all private companies to establish and enforce ethical
standards

self-regulation by companies

giving the federal government exclusive jurisdiction regarding ethics and ethics violation
enforcement

creating uniform statutes of business ethics

Which of the following is true in cases where only one party drafts the contracts that contain terms
that appear vague and ambiguous to the other party?

The court will interpret the ambiguous and vague terms against the party that drafts them.

The court will declare the drafting partys behavior as a tort due to intentional ambiguity of
terms.

The court will interpret the terms as they mean in the common language.

The court will reject the non-drafting partys attempt to reinterpret the terms after the contract
has been signed.
Myra offers to sell her home to Hanna for about $100,000 plus closing costs. Hanna accepts
Myras offer, but later a dispute arises concerning the precise dollar amount of the purchase price.
How will a court resolve this dispute?

The court will appoint a licensed real estate appraiser to determine the price to be paid by Hanna.

The court will require Hanna to pay the average of her price and Myras price.

The court will declare the purchase price and terms too indefinite to create a binding contract.

The court will determine a reasonable price to be paid by Hanna.

Hillward Bakers has been using a blue HB logo with a bakers hat on the HB since their inception
ten years ago. Hobart Bakers, a newly opened bakery and confectionary chain, has used the same
logo. Hillward has not registered its logo, but it chooses to sue Hobart anyway. Which of the
following is true of this case?

Hillward can sue Hobart since the logo has been used by Hillward and is associated with it.

Hillward cannot sue Hobart because logos cannot be patented or trademarked.

Hillward cannot sue Hobart since the logo has not been registered as a trademark.

Hobart can defend that Hillward created something that lacks utility and cannot be trademarked.

OLD VERSION
1- Applying the parole evidence rule

a written contract is the final expression of the party's agreement and may not be

contradicted by oral or written agreements made prior to the writing.

oral agreements may be used to change a final written contract if the final written contract

isn't exactly conforming to the pre-contract agreements.

written contracts with ambiguous terms are automatically void and cannot be corrected.

written agreements may be used to change a final written contract if the final written contract

isn't exactly conforming to the pre-contract agreements

2- LLPs were created to

Increase the duration of the business entity permitted under LLC statutes.

Provide limited protections for general partners increasing protections offered by LLCs.

Ease the costs and filing requirements present with LLCs.

limit taxation burdens existing in LLCs

3- 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 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

operating an insider trading operation.

guilty of conspiracy to defraud.

racketeering.

operating a Ponzi scheme

4- There are several reasons why whistle blowing may not be protected on an international
level. These include

Most business is not truly international and so there has been no push for globalization of

protection.

Dictators typically do not care if companies are engaging in illegal activities.

Many nations across the globe do not have the dishonesty problems that are found in

western nations.

Collective or collaborative cultures may frown on whistle blowing instead of working together

to fix a problem.

5- Judicial review

is the power or right of a court to hear a case.

is the power of a state or federal court to declare a statute unconstitutional.

is the power of an appellate court to reverse a decision made in a lower court.

is the power of a federal court to declare a state or federal statute invalid if inconsistent with

the constitution.

6- In Lucy v. Zehmer, the two parties were drinking in a bar when Lucy offers to buy Zehmer's
farm. After some negotiation a written contract was executed. Zehmer claimed that the
whole episode was only a joke and he never intended to sell the farm. The court
determined that

since the contract was written without lawyers present, it was likely not really serious so no

contract was actually formed.

since Zehmer claimed to be "high as a Georgia pine" and it was only the liquor talking, there

was no contract.

because negotiations and modifications to the written agreement lasted between 30-40

minutes, it appeared that both parties were serious so even if Zehmer had no objective intent to sell the
farm he is still bound by his actions and the contract was enforceable.

because the terms were fair, the parties are bound by the contract regardless of their intent

or capacity.

7- What must Congress do first to establish an administrative agency?

obtain judicial approval the creation.

enact an enabling statute.

nothing, it is an executive power.

research if a new agency is needed

8- Which of the following will be a valid defense in a strict products liability case?

consent.

comparative negligence.

assumption of risk

contributory negligence.

9- Modern Corporation operates a steel mill. They have never contributed anything to the
local community and they knowingly pollute both the air and river that runs by their mill.
Their reasoning is that the cost to install pollution control devices would diminish their
profits and they don't support the community because they provide jobs and don't think
they owe anything else to the citizens in their area. Donating to the community would also
diminish profits. Which theory of corporate social responsibility are they exhibiting?

the narrow view a/k/a invisible hand theory.

the broad view a/k/a management's hand theory.

the moderate view a/k/a government's hand theory.

the hybrid view a/k/a citizen's hand theory.

10- Where a promise can only be accepted by the performance of the person to whom it is
offered is an example of a/an

bilateral contract.

quasi contract.

implied contract.

unilateral contract

11- In which of the following scenarios would enforcement of specific performance be

appropriate?

you own the pistol used by Hamilton and contract to buy the pistol used by Burr in the

Hamilton-Burr duel to complete your set, but despite the contract the Burr pistol owner refuses to sell at
the last minute.

your bookstore agrees to order a textbook for you but breaches their contract with you by

canceling the order the next day.

you order three gallons of white ceiling paint from a local store and they breach by not

delivering or making the three gallons available to you.

you order a current model name brand television from a department store and a few days

later they breach by not ordering it from the manufacturer.

12- Assuming a business ethical dilemma, which statement best illustrates Gilligan approach
suggested in her theory of The Ethics of Care?

applies only to women and not men.

individual rights and justice for all.

obedience to independent moral rules or duties.

care and responsibility to others

13- With regard to the court, adequacy of consideration means

the court doesn't care about value as long as the mutual assent is valid.

the consideration exchanged must be reasonably close in value.

the consideration exchanged must be exactly equal in value.

the court will adjust the consideration if the value exchanged is unfair.

14- The three stripes on Adidas clothing represents a

trade dress.

trade secret.

patent.

trademark

15- Which of the following is not a general category of torts?

criminal torts

strict liability.

intentional torts.

negligence.

16- Which of the following promises ordinarily need not be in writing to be enforceable?

A lease of a warehouse for 24 months.

A $1,000 agreement with a personal trainer for 10 sessions.

An agreement to sell of a car for $1,500.

Promises made as a part of a prenuptial agreement.

17- Which of these is not an administrative agency function?

policymaking.

creating statutes.

licensing and permitting.

investigation and enforcement.

18- Which of the following does not occur in appellate court trials?

oral arguments by each side's attorneys.

consideration of briefs prepared by each side's attorneys outlining the law and applicable

precedent pertinent to the case.

presentation of testimony and new evidence.

review of lower court transcripts and rulings.

19- KAM Corp has separate Codes of Ethics and Conduct. Each of the following would likely
be included in their Code of Ethics except

expectations of an individual's community service.

avoidance of conflicts of interest.

expectations of privacy and dignity to be afforded others.

requirements of procedural due process and impartiality.

20- Maria is the CFO of a company being investigated by the SEC for various alleged
violations. Each of the following would constitute an obstruction of justice except

changing some figures on documents used to support filed financial statements.

ordering her secretary to lie if she is questioned.

refusing to answer questions invoking the Fifth Amendment.

shredding her personal calendar and appointment book.

21- A trademark can be any of the following except a

phrase.

word.

formula.

symbol.

22- Which of the following is not true of ADR proceedings?

ADR hearings usually arrive at a resolution at a much lower cost than does litigation.

the jury decision in an ADR proceeding is automatically subject to one appeal.

the party conducting the ADR hearing is chosen by the disputing parties themselves in

certain instances.

ADR hearings generally result in much less publicity than does litigation

23- Which of the following is rarely awarded in contracts cases?

Liquidated damages.

Compensatory damages.

Punitive damages.

consequential damages

24- Which of the following is categorized as informal ADR?

Mediation

Med-arb

Arbitration

Negotiation

25- The FTC publishes a rule regulating TVs and Blu-Ray DVD players for public comment but
revises it to include traditional DVD players also. Should the FTC republish the revision?

no because the new rule is more limited than the original proposal.

no because it was a logical outgrowth of the original rule.

no, there was no need for publication of the original rule.

no because there is generally no legal obligation to provide an additional comment period

26- Assumption of risk is a defense to

Battery.

Conversion.

Defamation.

Negligence

27- Black's Law Dictionary, as cited in the book defining the term law, includes each of the
following except

Law has a binding force.

Law is a body of rules.

Law is conduct prescribed by a controlling authority.

Law regulates personal ethics

28- Jurisprudence is defined as:

The science and philosophy of law

The enactment of laws by a government body.

The duties and obligations owed by a citizen.

Adjudication of law suits

29- Jonathan has graduated and wants to start a business. Which business entity gives him
the most complete and exclusive control over the business and any business decisions?

Limited liability Company.

general partnership

Sole proprietorship.

corporation

30- The moderate view of assessing corporate citizenship believes that

Corporate employees below the senior executive level should provide the exclusive view of

corporate responsibility.

Community groups where the corporation is located should provide the exclusive view of

corporate responsibility.

The government should provide the exclusive view of corporate responsibility.

corporate officers and boards of directors should provide the exclusive view of corporate

responsibility