1.) Marie wants to discover the chemical formulation of a popular cleaning solution whose ingredients are a trade secret. She experiments with different combinations of chemicals until she is able to reproduce the cleaning solution exactly. Marie then produces and markets her own version of the cleaning solution.

Does Marie's conduct violate trade secret law?

• a.)Yes, because reverse engineering a trade secret is illegal.
• b.)No, because the method by which Marie discovered the trade secret is legal according to trade secret law.
• c.)Yes, because it would be illegal for Marie to market a product whose formulation is a trade secret regardless of how she discovered the secret.
• d.)No, because the ingredients of a cleaning solution are not something that trade secret law protects.

2.) Select the statement that best applies to the phrase "Hawaiian pineapple."

• a.)This phrase likely cannot be trademarked for a pineapple product.
• b.)This phrase is an example of a collective mark for a pineapple product.
• c.)This phrase is an example of a certification mark for a pineapple product.
• d.)This phrase is an example of a service mark for a pineapple product.

3.) Cara builds a software program that allows users to download copyrighted movies without permission from the copyright owners.

Select the correct classification for this example.

• a.)Direct copyright infringement
• b.)Fair use
• c.)Contributory infringement
• d.)Legal use of a copyright license

4.) Which of the following is true of how agency relationships are created?

• a.)They must involve legal consideration between parties.
• b.)Any agency relationship can be voided at will.
• c.)They must be in writing.
• d.)Agency relationships can be express or implied.

5.) Phinneas asks a travel agent to reserve a flight and hotel for his upcoming vacation to Mexico.

Which type of agent relationship does this represent?

• a.)Independent contractor
• b.)Agency coupled with an interest
• c.)Special agent
• d.)General agent

6.) Which of the following is true of a principal's duty to an agent?

• a.)A principal owes a duty to prevent any harm from coming to an agent.
• b.)A principal's duty includes honoring an agent's best interests at all times.
• c.)A principal's duty includes submitting payments to an agent.
• d.)A principal owes a duty of competitive compensation to an agent.

7.) Which of the following most clearly represents alawfultermination of employment?

• a.)A law firm extends a job offer to third-year law student, who verbally accepts the offer and turns down other firms. The law firm rescinds the job offer before the student starts, because it suffers a large financial hit.
• b.)A physician signs an employment contract in which she agrees to give her employer three months' notice before quitting her job. She quits with only one month's notice because she is very unhappy.
• c.)A pizza restaurant fires a driver for delivering pizzas later than promised, after finding out that his lateness wasdue tohelping a woman who had just gone into labor.
• d.)A lifeguard quits her job in the middle of the summer even though the pool will not be able to find a replacement for her on such short notice.

8.) Greg finds a checkbook on the street that belongs to a local business. He writes a check to himself, signs it, and cashes it at a bank across town. The owner of the local business sues the bank to recover the money.

Is the business owner liable for the money paid to Greg?

• a.)No, the business owner is not liable.
• b.)Yes, due to apparent authority.
• c.)Yes, due to implied authority.
• d.)Yes, due to express authority.

9.) Pacey, an insurance agent, is told by his employer at his annual review meeting that he needs to "boost his sales of insurance policies in the next quarter by 50%." To meet this goal, Pacey decides to blackmail several people that he knows. He threatens to expose their secrets unless they purchase an insurance policy from him. Someone reports Pacey to the police and he's arrested and charged with blackmail.

Is Pacey's employer liable for his criminal act?

a.)Yes, the employer is vicariously liable according to the "zone of risk" test.

• b.)Yes, the employer is vicariously liable for the crimeandfor any tort suits related to the crime.
• c.)Yes, the employer is directly liable.
• d.)No, the employer is not liable because it did not authorize a criminal act.

10.) Hillary is a real estate agent working with a buyer to find a new home in town. She is authorized to assist the buyer in identifying a suitable home to purchase and negotiating a contract. Hillary finds a house that the buyer loves, so she quickly decides to sign a purchase and sale contract to prevent anyone else from doing so first.

Is Hillary personally liable for the contract when the buyer refuses to pay the price agreed upon by Hillary and the seller?

• a.)Yes, because agents are almost always liable for contracts they sign on behalf of principals.
• b.)No, because the seller was aware that Hillary was an agent.
• c.)No, because it would be unreasonable to hold Hillary accountable for the cost of a home.
• d.)Yes, because Hillary exceeded her authority as an agent when she signed the contract.