QUESTION 1

Which of the following is a true statement?

A.Offensive speech is generally considered to be unprotected speech.

B.Commercial speech generally is not protected by the Constitution since it merely involves marketing and advertising activities.

C.The First Amendment protects only actual spoken or written speech but not symbolic speech or other expressions.

D.A state can regulate an area affecting interstate commerce if the federal government has not preempted the field and the state regulation does not place an undue burden on interstate commerce.

QUESTION 2

National Transport, Inc., agrees to deliver paper to Office Company, which promises to pay for the service. National delivers the paper. This contract is

A.executory on National's part.

B.executory on Office's part.

C.fully executed.

D.fully non-executed.

QUESTION 3

In order to obtain a patent for an invention, the invention must be all of the following except:

A.Novel.

B.Marketable.

C.Nonobvious.

D.Useful.

QUESTION 4

Duties under a contract:

A.Are freely assignable under all circumstances.

B.Can be delegated, but only if there is a signed writing.

C.May be delegated without assigning rights.

D.May be delegated only if there is a corresponding assignment of rights.

QUESTION 5

Under freedom of speech in the United States:

A.All speech receives the same degree of Constitutional protection.

B.Some speech is not protected.

C.Commercial speech receives no protection because it has a profit motive.

D.Most speech critical of the government can be restricted because it can be destabilizing.

QUESTION 6

Who is protected under the Age Discrimination in Employment Act?

A.All workers who are age 40 or over.

B.All workers of any age who are discriminated against because they are thought to be too old.

C.All workers who are in a job in which they were 40 years of age or over when hired.

D.Any worker who is replaced with a younger worker.

QUESTION 7

The duration of a partnership can be:

A.For a fixed term only.

B.For an indefinite period only.

C.Only until the accomplishment of a particular undertaking.

D.A, B or C.

QUESTION 8

An agent negotiates a contract with a third party for which the agent did not have actual express authority. Which of the following is true?

A.The principal can never be held liable on the contract because the agent exceeded his authority.

B.The principal can be liable on the contract only if the agent had implied authority to enter into the contract.

C.The principal can be liable on the contract only if apparent authority was present.

D.Either implied or apparent authority might cause the principal to be liable on the contract.

QUESTION 9

Which of the following is a false statement?

A.State licensing statutes require certain professionals and occupations to be licensed by the state in which they practice.

B.Usury is the charging of excessive rates of interest.

C.A minor may ratify a contract at any time during minority and for a reasonable time after reaching the age of majority.

D.Minors are liable for the contract price of any necessaries of life for which they contract.

QUESTION 10

Which of the following is NOT an international agreement to protect intellectual property?

A.The Uniform Trade Secret Act

B.The Paris Convention of 1883

C.The Berne Convention of 1886

D.The TRIPS agreement of 1994

QUESTION 11

Which of the following is a false statement?

A.An agent has no duty to disclose her agency status to third parties with whom the agent deals.

B.An agent who enters into a contract with another party on behalf of the principal impliedly warrants that he has the authority to do so.

C.A principal may be liable for the tort of fraud committed by the agent if the agent makes misrepresentations to a third party in the course of negotiating a contract for the principal.

D.The basic rule for whether an employer is liable for the tort of negligence committed by his or her employee is whether the employer knew of the employee's commission of the tort.

QUESTION 12

What is a FALSE statement regarding monopolization analysis pursuant to Section 2 of the Sherman Act?

A.One generally cannot be guilty of or liable for monopolization without having a monopoly first.

B.One can have a monopoly but not have monopoly power and thus not be a monopolizing company.

C.All monopolies are illegal since they are inherently unfair to consumers.

D.Wrongful conduct by a monopoly to establish the legal wrong of monopolization includes illegal AND unethical, predatory, or abusive conduct (which is not necessarily illegal).

QUESTION 13

An example of an illegal contract typically is

A.A contract to commit a tort

B.A contract that is usurious

C.A contract for gambling

D.All of the above

QUESTION 14

In an agency relationship involving a principal, an agent, and a third party, whether or not the agency relationship has been disclosed to the third party is a crucial issue. This would affect:

A.The contract liability of the principal to the third party on a contract made by the agent on the principal's behalf.

B.The tort liability of the principal to the third party for a tort of the agent.

C.The tort liability of the agent to the third party for the agent's tort.

D.The contract liability of the agent to the third party on a contract made by the agent on the principal's behalf.

QUESTION 15

The UCC is

A.Concerned with the sale of goods priced at over $500

B.Concerned with all goods

C.Concerned with service contracts

D.Concerned with real estate leases

QUESTION 16

Which of the following best describes the requirements of a partnership?

A.An association of persons, owning property, sharing gross receipts.

B.An association of persons, owning and managing a business in order to make a profit.

C.An association of persons, owning property in order to make a profit.

D.An association of persons.

QUESTION 17

Standard Office Products orders one hundred computers from National Suppliers. Unless the parties agree otherwise, National's obligation to Standard is to

A.deliver the computers to a common carrier.

B.deliver the computers to Standard's place of business.

C.hold conforming goods and give notice for Standard to take delivery.

D.set aside conforming goods for Standard's inspection before delivery.

QUESTION 18

Damages which are fixed in the amount to be awarded in the event of a breach are known as:

A.Punitive damages.

B.Liquidated damages.

C.Consequential damages.

D.Conditional damages.

QUESTION 19

A wholesale distributor who is named in a product liability suit based on strict liability could avoid liability if:

A.The plaintiff had not purchased the product causing the injury.

B.The distributor exercised reasonable care in all ways with respect to the product causing the injury.

C.This product had been used for many years by other users without injury.

D.This defect which caused the injury occurred after the product left the distributor.

QUESTION 20

What is a FALSE statement regarding monopolization analysis pursuant to Section 2 of the Sherman Act?

A.One generally cannot be guilty of or liable for monopolization without having a monopoly first.

B.One can have a monopoly but not have monopoly power and thus not be a monopolizing company.

C.All monopolies are illegal since they are inherently unfair to consumers.

D.Wrongful conduct by a monopoly to establish the legal wrong of monopolization includes illegal AND unethical, predatory, or abusive conduct (which is not necessarily illegal).

QUESTION 21

Which of the following is a true statement?

A.The trier of fact in a jury trial is the judge.

B.In most trials, the defendant bears the burden of proof.

C.Voir dire is the process by which the judge informs the jury about what law to apply when they decide the case.

D.An appellate court reviews the record of the trial court.

QUESTION 22

Consequential damages are:

A.Awarded to give the nonbreaching party the "benefit of the bargain."

B.Are fixed in an amount prior to an actual breach.

C.Arise from foreseeable consequences related to the contract and its breach.

D.Are not awarded in the case of personal services contracts.

QUESTION 23

Which of the following corporate acts is most likely to be held ultra vires today?

A.Contribution to a private university to help fund an entrepreneurship center

B.Generous gratuity paid to the young widow of the corporation's founder

C.Entering a joint venture with another business

D.Installation of antipollution equipment not yet required by law

QUESTION 24

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 25

Which of the following is a TRUE statement?

A.Symbolic speech, such as gestures and actions used to communicate ideas, are not protected by the First Amendment to the U.S. Constitution since only actual words are protected.

B.All regulations on firearms are illegal pursuant to the Second Amendment to the Constitution which grants the people the "right to bear arms."

C.The Fourth Amendment does not protect businesses from warrantless searches by the police as only people's homes are protected.

D.Corporations, although they are artificial legal persons, nonetheless possess the First Amendment right to "free speech," according to the Supreme Court.

QUESTION 26

The following are required to be proven in a negligence case except:

A.The defendant owed a duty or care to the plaintiff.

B.The defendant was fully aware of the consequences of his actions when they were done.

C.The defendant breached the duty of care.

D.The defendant's conduct was an actual cause, in fact, of the injury to the plaintiff.

QUESTION 27

Which of the following is not required to form a contract?

A.An offer and acceptance.

B.A signature by each party.

C.Consideration.

D.Legality of the contract object.

QUESTION 28

The term for jurisdiction based on the location of a piece of property is:

A.Long arm jurisdiction.

B.In personam jurisdiction.

C.In rem jurisdiction.

D.Subject matter jurisdiction.

QUESTION 29

Which of the following is/are TRUE about U.S. civil rights laws?

A.An employer can defend a lawsuit pursuant to the Age Discrimination and Employment Act (ADEA) by interposing a BFOQ (bona fide occupational qualification) defense.

B.The "disparate impact" theory of Title VII of the Civil Rights Act now applies to discrimination lawsuits based on the ADEA due to a Supreme Court decision.

C.The Americans with Disabilities Act requires that an employer not only not discriminate against disabled people but also that the employer makes a "reasonable" accommodation to the needs of its disabled employees.

D.All of the above.

QUESTION 30

Which of the following are encompassed by the traditional common law tort of intentional invasion of privacy?

A.An appropriation of a person's name or picture without his or her permission for commercial advantage.

B.An intrusion by the defendant into the private life or private domain of the plaintiff.

C.Public disclosure of private facts, that is, facts not in the public record, about a person, even if the facts are true.

D.All of the above.

QUESTION 31

Which of the following is a false statement?

A.A corporation is liable for the torts of its officers committed within the course and scope of their employment.

B.Those shareholders who own preferred stock in a U.S. corporation are the sole owners of that corporate firm.

C.A certificate of incorporation or corporate charter represents in the U.S. a state's authorization for a corporation to conduct business as a corporation.

D.Corporations in the U.S. must identify a specific person as an agent to receive legal documentation on behalf of the corporation.

QUESTION 32

Which is TRUE regarding the employment at-will doctrine in the United States?

A.It can result in a legal but immoral discharge of an employee.

B.It cannot be changed by a contract between the employer and the employee.

C.It is operable in the U.S. and can result in a discharge without notice or cause or good cause but the employer based on federal law has to pay severance to the discharged employee based on the number of years he or she has worked for the firm.

D.It supersedes and prevails over Title VII of the Civil Rights Act.

QUESTION 33

A.Which of the following is a true statement?

B.Substantial performance alone entitles the performing party to full and immediate payment of the purchase price.

C.A breach of contract cannot occur until the exact time for performance of the duty in question.

D.A supervening illegality makes a contract voidable.

E.One purpose of compensatory damages is to place the aggrieved party in the position that he or she was in before the breach of the contract.

QUESTION 34

Which of the following is a true statement?

A.The Federal Trade Commission is the federal agency in the U.S. that is empowered to prevent and punish unfair and deceptive marketing and advertising practices in trade or commerce.

B.The Consumer Products Safety Commission in the U.S. prohibits manufacturers from selling and marketing products unless they are marked with the agency's official "seal of approval."

C.Common law legal doctrines no longer apply to polluters in the U.S. since they are so big and powerful and thus can only be regulated by federal statutory law.

D.An environmental impact statement is required in the U.S. for all federal and state government development projects and for all proposed federal and state legislation.

QUESTION 35

An example of lack of a contractual capacity issue arises when a contract is made by a

A.A minor

B.A drunk

C.A person on drugs

D.All of the above

QUESTION 36

Which of the following is a false statement?

A.Adverse possession is a means of obtaining ownership and title of property without the delivery of a deed.

B.Government taking private property for public use or purpose in the U.S. requires the payment of "just compensation."

C.In determining whether copyright protection under U.S. law should be granted, one key issue is the manner in which a particular idea is expressed.

D.A formula for a chemical compound cannot be a trade secret pursuant to U.S. trade secret law since it is too scientific.

QUESTION 37

Which express warranties are sellers of goods required to make by the UCC?

A.Warranties regarding the quality of goods.

B.Warranties regarding the length of time that the product can be returned.

C.Warranties regarding the length of time that the seller will repair the product.

D.None of the above.

QUESTION 38

If the time, place and manner of delivery of goods is not mentioned in a contract:

A.The place of delivery is the buyer's place of business.

B.The contract is void for lack of definiteness.

C.The place of delivery is the seller's place of business.

D.The seller is obligated to pay for shipping to the buyer's place of business.

QUESTION 39

Which of the following is a true statement?

A.The offeree is the person who makes an offer.

B.A void contract is enforceable if it is in writing pursuant to the Statute of Frauds.

C.A contract can be created only when it is accepted by the offeree's actual performance of an act.

D.A unilateral contract is accepted and formed under the common law when the one receiving the offer fully completes the requested act or performance.

QUESTION 40

Which of the following is a true statement?

A.Criminal law focuses on duties that exist between private persons.

B.The prosecution in a criminal case in the U.S. needs only establish by a preponderance of the evidence that the defendant committed the crime.

C.Criminal liability frequently depends on a specific state of mind or intent.

D.All promises are legally binding contracts based on common law notions of criminality for promise-breaking.