1. Which of the following is the fundamental definition of property ownership?

a.)The right to acquire property

b.)The right to exclude others from property

c.)The possession of property

d.)The right to control property

2. An ice cream cone is __________.

a.)tangible private property

b.)fungible private property

c.)intangible private property

d.)tangible public property

3. When does a bailee owe a bailor only a minimum duty of care?

a.)When the bailee and bailor both benefit from the bailment

b.)A bailee always owes a bailor more than a minimum duty of care.

c.)When the bailment only benefits the bailor

d.)When the bailment only benefits the bailee

4. Select the true statement regarding inherited or gifted real property.

a.)Ownership of real estate may not be transferred by gift.

b.)Real property may only be willed to a next of kin.

c.)A gift of real property must include the deliverance of a deed in order for title to be conveyed.

d.)If an owner of real property dies without a will, the property automatically escheats to the state.

5. A deed transferring complete ownership of a two-acre plot of land to you with no limitations or restrictions would be __________.

a.)a life estate interest

b.)a fee simple defeasible interest

c.)a joint tenancy interest

d.)a fee simple absolute interest

6. According to the Copyright Clause, intellectual property rights are important because they __________.

a.)promote equality within society

b.)generate competition and place downward pressure on pricing

c.)encourage the sharing of ideas among companies

d.)encourage creativity and the invention of new products

7. Which of the following is a patentable item?

a.)A film documentary about the planet Earth

b.)A previously patented tool for drilling into the earth

c.)A scientific discovery about the planet Earth

d.)A process for testing the mineral composition of a layer of earth

8. 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.)No, because the method by which Marie discovered the trade secret is legal according to trade secret law.

b.)No, because the ingredients of a cleaning solution are not something that trade secret law protects.

c.)Yes, because reverse engineering a trade secret is illegal.

d.)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.

9. Select the statement that best applies to the shape of the Coca-Cola bottle.

a.)This shape is an example of a service mark.

b.)This shape likely cannot be trademarked.

c.)This shape is an example of a certification mark.

d.)This shape is an example of trade dress.

10. Harvey, a blogger, quotes several lines of dialogue from a copyrighted movie in his latest blog post. His blog post is a review of the film, and he does not obtain permission from the copyright owners.

Select the correct classification for this example.

a.)Contributory infringement

b.)Fair use

c.)Direct copyright infringement

d.)Legal use of a copyright license

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

a.)They are typically categorized as durable and non-durable.

b.)They can be created orally.

c.)They are expensive to create.

d.)Once created, they are permanent.

12. 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.)Agency coupled with an interest

b.)Special agent

c.)General agent

d.)Independent contractor

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

a.)A principal's duty includes submitting payments to an agent.

b.)A principal's duty includes honoring an agent's best interests at all times.

c.)A principal owes a duty of competitive compensation to an agent.

d.)A principal owes a duty to prevent any harm from coming to an agent.

14. Which of the following most clearly represents an illegal termination of employment?

a.)A corporation that is downsizing fires its five most recently hired employees, two of whom are disabled.

b.)An accountant quits her job on her 60th birthday because she's saved up enough money to retire.

c.)A business start up chooses not to offer a new contract to an IT consultant after his old contract expires.

d.)A hospital CEO fires an administrator who recently filed for bankruptcy, because she's concerned that other employees will lose confidence in him.

15. In April, Ursula quits her job as the manager of a local branch of a restaurant chain. In May, she orders five cases of wine from the restaurant's usual liquor supplier. The liquor supplier charges the restaurant, since the restaurant has not notified it of Ursula's departure.

Is the restaurant liable for the charges?

a.)Yes, due to implied authority.

b.)Yes, due to apparent authority.

c.)No, the restaurant is not liable.

d.)Yes, due to express authority.

16. 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 directly liable.

b.)Yes, the employer is vicariously liable for the crime and for any tort suits related to the crime.

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

d.)No, the employer is not liable because it did not authorize a criminal act.

17. Randy, an agent for Retail Empire Inc., has been authorized to purchase parcels of land to further the company's real estate development business. Randy closes a deal with a seller on a two-acre lot in town. He signs a contract with his name and the notation "agent for Retail Empire Inc." The company later directs Randy to pull out of the deal and breach the contract.

Is Randy personally liable for the contract?

a.)Yes, because agents are always liable for contracts they sign.

b.)No, because the company directed him to breach the contract.

c.)No, because it was clear that he was signing the contract as an agent.

d.)Yes, because the principal was undisclosed.