Question 1
Which of the following statements is false?
a.Arbitration cannot impose a binding solution on the parties.
b.Only cases which have been decided at the appellate level will become precedents.
c.Mediation cannot impose a binding solution on the parties.
d."Submission" is the act of referring an issue to the arbitration procedure.
e.Only clear evidence of fraud, misconduct or other serious irregularities will be used to set aside an arbitration award.
Question 2
The Sixth Amendment of the United States Constitution guarantees a person accused of a crime "the assistance of counsel for his defense." This means that
a.people who cannot afford to hire an attorney are entitled to choose the person they wish to represent them.
b.the government cannot make a pretrial seizure of funds allegedly generated by a criminal enterprise.
c.the government cannot seize funds generated by a criminal enterprise following the conviction of a person of such a crime.
d.a defendant has a right to spend other people's money in his possession in order to hire an attorney to defend him.
e.none of the above.
Question 3
Zach and Josh open a coffee shop. They have no written agreement (they did not take Business Law), but intend to sell coffee and bagels to make a profit and sell franchises. Zach is putting up the dough and Josh the sweat equity. Which of the following best describes Zake's and Josh's business relationship?
a.One based on trust, respect and friendship.
b.They are limited partners.
c.They are shareholders in their corporation
d.They are sole proprietors
e.They are 50/50 partners.
Question 4
Which of the following statements is false?
a.At the funeral of his father, Henry is given a paper to sign which purports to be the bill for funeral expenses. It turns out to be a contract to buy a part interest in the business. It is a voidable contract.
b.Pat always exaggerated to her friends about the gas mileage she got with her Subaru. When she decided to sell one of these friends offered to buy it. Pat would be under no duty to tell the correct figure unless asked.
c.The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production. After signing the agreement, Abbot can increase its production from one shift to two shifts, and Baker will have to buy all of the doubled production.
d.The performance of a pre-existing contractual duty which is neither doubtful nor the subject of an honest dispute is legally sufficient consideration to support a second contract.
e.All of the above statements are false.
Question 5
Which is the correct order of stages for a typical lawsuit?
a.pleadings, discovery, pretrial, trial, appeals
b.pleadings, pretrial, discovery, trial, appeals
c.pretrial, pleadings, discovery, trial, appeals
d.discovery, pretrial, pleadings, appeals
e.discovery, pleadings, pretrial, trial, appeals
Question 6
Peter crossed the street at a crosswalk without looking for oncoming traffic. He was struck first by a car driven by Abel and then by a car driven by Baker. Peter sued Abel and Baker for negligence. The jury determined that Peter was 60% at fault, Abel 30% and Baker 10%. The jury also determined that Peter suffered damages of $100,000. Abel is insolvent. In a contributory negligence jurisdiction, how much can Peter collect from Baker?
a.Nothing
b.$40,000
c.$10,000
d.$100,000
Question 7
Fred is an attorney who wants to advertise that he is San Diego's best lawyer. He buys a billboard and posts his message. The State Bar of California wants him to take down his billboard. Which of the following constitutional proposals best supports Fred's position?
a.The principles of the Fourth Amendment
b.The First Amendment
c.The Commerce Clause.
d.Unlawful taking without just compensation
Question 8
Al Talker, a used car dealer, has a sport car for sale. Bob is interested in buying it. Al tells him, "It's a super car--fastest on the road." Bob later discovers that his next-door neighbor's car is faster. Bob now wants to sue and visits his attorney. Which of the following would be the attorney's best answer?
a.All cannot be sued because fraud is only a criminal matter.
b.Al's statement is nothing more than puffing; therefore, Al cannot be held accountable.
c.Fraud requires malice; therefore, Al cannot be held accountable.
d.Al has engaged in fraud because the customer relied on his statement.
Question 9
Mr. Big is a wealthy businessman. The police dislike him intensely so they obtain a warrant to search his home to see if there is anything they can use against him. The search warrant states that the police may search his entire home and seize all unlaful items which might happen to be in his home. At his home, they find the remains of a rare animal presently listed on the endangered species list. Which of the following is true?
a.The search warrant was defective because it was not precisely worded in that it did not precisely describe the premises nor did it describe the exact items to be seized.
b.Because the police had a search warrant, they could seize this animal and use it at trial.
c.Although the search warrant was not precise as to location and items to be seized, nevertheless it allowed introduction of the evidence. The judge who issued the search warrant is the one at fault and not the police.
d.It is not necessary to obtain a search warrant to search the home of someone suspected of having violated the law; therefore, the animal could be seized and used against him at trial.
e.A secret warrant is always required regardless of circumstances.
Question 10
The Constitution is written:
a.as an alegory of the human struggle.
b.in specific language granting rights to citizens.
c.in highly specific language capable of one interpretation.
d.in a vague manner with no specific rights enumerated.
e.mostly in general language that can be interpreted in different ways.
Question 11
The authority of a court to hear and decide cases is known as
a.Habeas Corpus
b.Demurrer
c.Jurisdiction
d.Stare Decisis
e.Quo Warranto
Question 12
Which of the following statements is true?
a.Since they act as deterrent, punitive damages are frequently awarded.
b.A novation is an agreement between two parties to have one substitute for the other in a contract.
c.Peter offered to wax Kathy's car for $20. Kathy accepted on the condition that he would clean the upholstery too. They have a contract.
d.An advertisment is usually an offer to sell.
e.Article 2 of the Uniform Commercial Code does not apply to the sale of services.
Question 13
Which of the following statements is false?
a.Sarah Salesclerk sells word processors on commission at Marlin's Department Store. She likes to sell the deluxe model because she earns a larger commission on it. One day, Carl Customer comes to the store to buy a word processor. Sarah tells him "This deluxe model will give you twice the wear and usage of the standard model." Based on that statement, Carl buys the deluxe model, which only lasts him six months. Sarah has committed fraud in the inducement.
b.At common law a promise under a seal to authenticate it was effective without anything more.
c.If no time is stated, an offer will terminate automatically after a reasonable period of time.
d.Death or insanity of either the offerer or the offeree terminates the offer.
e.Michael Merchant telephones an order for widgets to the manufacturer. Nothing is said by either party about the price or method of payment, but the manufaturer delivers the goods as requested. Michael has made an implied in fact promise to pay for the goods.
Question 14
Carolyn, with his permission, takes Steve's car to the store. While there, she meets a group of her friends who are on their way to the beach. She leaves Steve's car at the store and goes away fro the entire day. If Steve successfully sued Carolyn for trespass, he will
a.recover the value of the car.
b.recover the value of the time he did not have use of the car.
c.recover the car's original price.
d.only recover the car.
e.recover nothing.
Question 15
Which of the following statements is true?
a.The serving of written questions, to be answered in writing by the opposing party, is known as interrogatories.
b.A long-arm statute becomes applicable only in cases in which the court has been found not to have venue.
c.During the actual trial, a witness in the case may be subjected to a voir dire examination.
d.An attorney "cross examines" a witness who has been called to establish the facts about his or her side of the case.
e.If a demurrer entered by the defendant is sustained by the court, the plaintiff wins.
Question 16
Which of the following statements is false?
a.Under the Equal Protection Clause, all governmental action that treats two classes of citizens differently will be invalid.
b.When a decision is made by an administrative body, it is final; there is no recourse to a court of law.
c.The rational relationship test for equal protection is more exacting than the strict scrutiny test.
d.Sarah may shoot to kill a burglar in the process of stealing her heirloom jewelry, even if she knows there is not threat to her own person.
e.All of the above statements are false.
Question 17
Termination of an offer by the parties involved in a contract can be done by all of the following except:
a.Revocation of offer before acceeptance.
b.Counteroffer.
c.Revocation after acceptance.
d.Lapse of time.
e.All of the above are valid ways to terminate.
Question 18
Which of the following statements is true?
a.When the judge can decide the case on matters of law and there are no genuine issues of fact, a Summary Judgment may be granted.
b.The party who appeals the case is referred to as the appellee.
c.A motion for a Summary Judgment is filed after the trial.
d.If a case is reversed and remanded, it is automatically dismissed in its entirety and no further action can be taken.
e.Generally speaking, it is the duty of the jury to decide the applicable law in the case.
Question 19
Which of the following describes the relationship between law and ethics?
a.A law remains constant, whereas ethical values vary over time.
b.There is no per se relationship between law and ethics.
c.A law is enforceable in court and it sometime reflects society's standard of ethical conduct.
d.Law are written to govern moral behavior, whereas ethics are designed to control civic behavior.
e.The law remains constant, wheras ethical values vary over time.
Question 20
Which of the following statements is true?
a.The party who appeals the case is referred to as the appellant.
b.The burden of proof in a civil case is that the plaintiff must prove beyond a reasonable doubt that the defendant is liable.
c.When a court directs a verdict, no appeal can be taken from the judge's decision.
d.After the plaintiff files the Complaint and the Summons is issued and served, the defendant ordinarily has no responsibility to file anything with the court prior to trial.
e.A long-arm statute becomes applicable only in cases in which the court has been found not to have venue.
Question 21
A contract will be unenforceable if
a.one party to the contract feels he or she has been taken advantage of
b.a statute declares such a contract illegal
c.performance becomes difficult
d.public authorities voice disapproval of the contract
e.the parties involved believe the contract to be illegal
Question 22
John and Mary have a dispute over certain merchandise delivered by John to Mary. Mary wants John to take the goods back but John refuses to take them back. As an alternative to filing suit, Mary might suggest
a.an arbitration of the suit. This means a third party would attempt to encourage them to settle their dispute.
b.a mediation of the suit. This means that the parties to the suit will submit the case to a panel of laypersons for a decision.
c.they settle the suit. This means they would somehow arrive at a fair resolution to the dispute to avoid a lawsuit.
d.going to trial because she has no other alternatives available to her.
e.a, b and c.
Question 23
Acting in a manner that results in the greatest goo for the greatest number is an ethical principle known as
a.Kantianism
b.The Cost Benefit Analysis
c.The Golden Theory
d.Rights Theory
e.Utilitarianism
Question 24
You are the inventor of the "solar flashlight" (needs no batteries if used in sunlight). You did not apply for a patent. You did, however, take a number of measures to secure information about the production process within your firm. For example, all of your employees were advised of their responsibilities to keep all information confidential. Novelty Nerds Ltd. ("NNL") is selling a product just like yours. A former employee of NNL's has informed you that they simply purchased one of your flashlights, took it apart and copied it.
a.You can stop NNL from future production and sales because they have violated your trade secret rights.
b.You can get a court of equity to grant an injunction.
c.Because your product is clearly inventive, you are entitled to damages representing the profit on lost sales.
d.You have no remedy; none of your rights have been violated.
e.Two of the above are correct.
Question 25
Anglea promises to work for Barbara during the month of July, and Barbara promises to pay Angela $600 for her services. In this situation, what kind of contract has been made?
a.An unconscionable contract.
b.Quasi
c.Executed.
d.Bilateral
e.Unilateral
Question 26
Officers and directors of a corporation are not personally liable:
a.for mistakes of business judgment.
b.when dividends are declared without retained earnings in the corportation.
c.for aiding a corporation in the performance of an antitrust violation.
d.for committing a tort within the scope of their employment.
Question 27
Which of the following statements is false?
a.In order to be sufficient, an agreement required to be written under the Statue of Frauds must be signed at the bottom and notarized.
b.Linda could not get her money back from Sue when she couldn't see Madonna on the stage even if Sue had told Linda that the concert tickets she was selling were for "good seats".
c.Affirmation is similar to ratification.
d.Sandy's private secretary promises not to disclose the contents of a letter she typed if Sandy will give her the next day off with pay. If the secretary takes the day off, Sandy does not have to pay her for the day.
e.Alexis promises to marry John if John will allow her to adopt his son. This agreement must be in writing.
Question 28
The commerce clause of the U.S. Constitution:
a.gives all power to regulate commerce to each state.
b.gives the President the power to regulate commerce.
c.was adopted by passage of the Third Amendment
d.gives Congress the power to regulate business
e.All of the above.
Question 29
Which of the following statements is true?
a.I offer $50 for the return of my lost cat. Mark calls to get more of a description. A contract is formed when he calls and says he is going to look.
b.If my neighbor cuts my grass for me without my knowing about it, we have a contract for the value of the service rendered.
c.An offer is effective as soon as it is dispatched.
d.Promises to give gifts (includes contributions, pledges, donations, etc.) are never legally enforceable.
e.None of the above statements is true.
Question 30
Recovery in Quasi Contract is based on a judgment that determines the presence of
a.Unjust enrichment
b.Mutual mistake
c.Duress
d.A Statute of Frauds violation
e.All of the above are false.
Question 31
Which of the following statements is false?
a.To have consideration, all contracting parties typically will receive a legal benefit and incur a legal detriment.
b.Through federal legislation, any person who receives unsolicited merchandise in the mail becomes liable for its fair market value unless that merchandise is returned to the sender.
c.When a debt is liquidated as to the amount owed, a debtor who sends a check for less than the amount of the indebtedness and marks the check "paid in full" still will be liable for the balanced owed if the creditor cashes or deposits that check
d.The doctrine of promissory estoppel and the existence a moral obligation are two alternatives which may validate a contract even though bargained-for consideratoin is missing.
e."I promise to buy from you all the coal that I will need in my business next year, at the price you have quoted" is an illusory promise.
Question 32
Which of the following statements is true?
a.A long-arm statute allows a State to obtain jurisdiction over a nonresident defendant when the nonresident defendant has sufficient contacts with the State.
b.A court needs to have both subject matter jurisdiction and jurisdiction over the defendant involved before it can hear a particular case.
c.Federal courts have exclusive jurisdiction over bankruptcy, patent, trademark and copyright cases.
d.The U.S. Supreme Court can invalidate a law if it conflicts with the U.S. Constitution.
e.All of the above statements are true.
Question 33
Abbott was orphaned at the age of five. For the next fifteen years his material needs were met by his Uncle Barton. On his 13th birthday, Abbot wrote Uncle Barton and promes to pay him $100 per mont as long as his Uncle lived. Abbott nver made any payments. Uncle Barton died ten months later. If Uncle Barton's estate sued Abbott for the amount of the promised payments, the court would probably hold that Barton's estate is
a.not entitled to recover because of the Statute of Limitations.
b.not entitled to recover unless it can be shown that Uncle Barton Detrimentally relied on Abbott's promise
c.not entitled to recover because past consideration will not support Abbott's promise
d.entitled to recover on the promise
e.entitled to recover because of Barton's previous aid to Abbott under the theory of a Quasi contract
Question 34
Which of the following statements is false?
a.A recital of nominal consideration, such as a dollar, in an option contract to purchase real estate renders the option contract unenforceable because sufficient consideration is lacking.
b.The UCC states that an offer may be accepted in any manner reasonable under the circumstances.
c.A contract for the sale of goods may be enforced under the provisions of Article 2 of the UCC even if the price, the delivery date, and the credit terms have not been agreed upon.
d.If the beginning of a requested performance is a reasonable mode of acceptance, the offeree must still notify the offeror that performance has begun. If the offeror is not notified of the performance within a reasonable time, the offeror may treat the offer for requested performance as having lapsed.
e.A contract can be breached prior to the date that any performance by the parties to the contract is due.
Question 35
Upon delivery of nonconforming goods, a buyer may do which of the following? I. Reject all goods. II. Accept all goods. III. Accept thos unit that conform and reject the rest.
a.I only.
b.III only.
c.I and II only.
d.II and III only.
e.I, II, and III
Question 36
Which of the following statements is false?
a.When there are conflicting case precedents, one of the major tasks of the court is to determine which precedent is applicable.
b.To encourage confidential communications between lawyers and their clients, the communications are considered privileged and a lawyer cannot reveal them or be called upon to testify against his/her client.
c.Instructions are given to the jury by the attorneys in their final argument.
d.The doctrine of judicial review allows the courts to review the actions of the other branches of government and to set them aside as null and void if in violation of the Constitutions.
e.Jurisdiction over the defendant is not acquired until service of summons has been accomplished.
Question 37
The persons who are engaged in the day to day operations of a corportation are known as the:
a.common shareholders
b.preferred shareholders
c.board of directors
d.officers
Question 38
Jack broke into the Acme Liquor Store. He took $600 in cash. The police arrested him and he was convicted for this crime. The penalty imposed by the law for this criminal act is ten years in prison. Such a crime is thus most likely classified by the state where Jack committed the crime as
a.a white collar crime.
b.a felony.
c.a misdemeanor.
d.a petty crime.
e.a civil offense.
Question 39
Which of the following statements is true?
a.The U.S. Supreme Court can invalidate a law if it conflicts with the U.S. Constitution.
b.Extortion has the same elements as embezzlement.
c.Tom, a ten year old, practiced writing his mother's signature so he could write notes to his teacher. He has committed a forgery.
d.Sarah may shoot to kill a burglar in the process of stealing her heirloom jewerly, even if she knows there is not threat to her own person.
e.If your teacher induces you to steal an apple from the cafeteria when you would normally never do things like that, you can use the defense of entrapment.
Question 40
Smith suddenly attacks Jones as Jones walks down the street. In this case, Smith has committed
a.A Crime of Battery.
b.Negligence
c.A Tort
d.Multiple Felonies.
e.a criminal act and a tort.
Question 41
Which of the following statements are false?
a.When Jennifer died, she left an $8,000 debt owed to John. Jennifer's son, Don, was the executor of her estate. Examining her finances, he soon realized that the estate could pay only a part of the $8,000 debt. Don therefore promised John orally that he would pay the balance of the debt himself, out of his own pocket. After two years had gone by with no payment, however, John sued Don for the money. John will win this case.
b.On July 15, Yvonne and Mary formed a written contract whereby Yvonne agreed to sell Mary five acres of land for $8,000. Delivery of the ded and payment of the $8,000 were scheduled for August 25. On that date, Mary arrived at Yvonne's lawyer's office with the money, but Yvonne refuesed to hand over the deed. Mary decided to sue Yvonne for breach of contract. May will lose.
c.Delilah, age 17, bought herself a personal computre on credit. In a contract with the computer dealer, she agreed to make monthly payments of $200 for a period of two years. She made the payments for vice months; that most recent payment was made four days after she reached majority. After making the fifth payment, she saw another personal computer she liked better than the one she had bought. Delilah had heard that a contract made by a minor could be disaffirmed, so she returned her computer to the dealer and asked for her money back. The dealr has to return Delilah's money.
d.David, a minor with no income, borrowed $500 from his uncle Larry, promissing to repay the money in one month. David then spent all of the money on a ski trip to Colorado. One month later, when Larry tried to collect the money he was owed, David refused to pay on the grounds that he was a minor and was disaffirming the contract. Larry has a legal right to collect on the debt.
e.All of the above statements are false.
Question 42
Proximate cause means that the
a.a defendant will be liable for all the damages caused by his breach of duty
b.a defendant will be held liable for only those damages that were reasonably foreseeable and a natural and probable consequence fo his breach of duty
c.plaintiff's injury would not have occurred but fo rthe defendant's breach of duty
d.plaintiff's injury wold not have occurred unless the defendant's breach of duty was a substantial factor in bringing about the injury
e.plaintiff's injury occurred because of the defendant's breach of duty.
Question 43
Which of the following statements is false?
a.The refraining from doing that which a person was previously under no legal obligation to refrain from doing is one form of legal detriment which can be consideration sufficient to support a contract.
b. Arthur has a contract with John Robert under the terms of which John Robert is supposed to paint Arthur's garage. Arthur has selected John Robert because he knows John Robert is a good painter and will do the good job. John Robert may not delegate the duty to paint because it is personal in nature.
c.Promissory estoppel substitutes for consideration.
d.In a novation, the delegator is discharged and the third party becomes directly bound upon his promise to the obligee.
e.Where a party to a contract promises to render performance, not to the promisee but to a third party who is a creditor of the promise, the third party may maintain an action for breach of contract.
Question 44
Which of the following statements is true?
a.I put an ad in my college newspaper saying I would pay $50 for an original Batman comic book. Then I found one in my friend's cellar. So I posted a sign in my dorm retracting the offer. I will not have to pay the money to someone who brings me the comic.
b.Steve offers to sell Pat his Beatles albums. Pat gives Steve $10 to induce (option) Steve into keeping his offer open for a week. If Steve decides on day four that he really does not want to sell to Pat, he can revoke his offer.
c.Specific performance is the usual remedy for breach of contract.
d.If one party materially breaches a contract, the other party is discharged from the performance.
e.Arthur promises to take Betty to the show on Friday night. He then changes his mind to stay home and study his business law. Arthur is in breach of contract to Betty for breaking his promise.
Question 45
Which of the following is an advantage of alternative dispute resolution procedures?
a.They save time and money.
b.They help facilitate a settlement.
c.They typically are confidential.
d.All of the above are advantages of alternative dispute resolution procedures.
e.None of the above are advantages of alternative dispute resolution procedures.
Question 46
Clyde received the following letter from Joe: "I will sell you the books you examined yesterday for $10 each or $100 for the entire set." Clyde, not sure he would get much use from the books, tokd his brother, Michael, about the offer. Michael tendered Joe $100 for the books, but Joe refused to sell the books to Michael. If Michael sued Joe, the court would probably hold that Michael
a.can accept the offer if he will do so within a reasonable period of time
b.cannot accept the offer until Clyde's rejection is communicated to Joe
c.cannot accept the offer unless he does so in writing
d.cannot accept the offer because it was not made to him
Question 47
Which of the following statements is false?
a.Arthur says to Bill, "If you will mow my lawn, I will give you ten dollars." Bill says nothing, but he mows the lawn. No contract exists under this fact situation, because Bill did not accept Arthur's offer.
b.X agreed with Y that X would accompany Y to the movies. X went to the movies with Z. Y cannot sue X for breach of contract.
c.Sam Student is currently enrolled in law school and expects to graduate and take the bar exam next year. He promises to represent his friend, Thomas, in a personal injury lawsuit if Thomas will pay him 25% of the settlement. The case settles for $50,000 and now Thomas refuses to pay Sam for his services. Sam has no legal right to enforce the agreement.
d.If the offer specifies it must be accepted by letter, a telegram will not be a void means of acceptance.
e.Big buck, Inc. pay Andrew Attorney to draft and lobby for a bill which will greatly lessen its tax liability to the state and federal governments, and gives him $20,000 in cash to pay legislators for taking the time to listen to him. This is an agreement which is a violation of public poicy.
Question 48
Which of the following is true?
a.Society changes law, but law does not change society.
b.The primary purpose of the law of torts is to punish the wrongdoer.
c.The UCC specifically adopts the "mirror image" rule of acceptance.
d.This course was a waste of my time.
e.Online Business Law Rocks!
Question 49
Which of the following statements is true?
a.Sharon bought a television at a bargain price from her local appliance store. A few days later, however, a police officer came to her door, told her that the television was stolen property, and confiscated it. Sharon did not know the television was stolen and thus, can get her money back from the appliance store.
b.Fran, a farmer, made an oral agreement to sell Bob her entire soybean crop for $350. Later, she received an offer of $600 for the crop from Sal. Reasoning that her oral agreement with Bob was unenforceable, she sold all her soybeans to Sal at the higher price. Bob hen sued Fran for breach of contract and won.
c.Don, a minor, wanted to buy a car from Happy Harry, a used-car dealer. Harry, who had contracts voided by minors in the past, exercised extreme caution in his dealings with anyone who looked young. He asked for identification, and Don produced a driver's licence that belonged to his older brother. This fooled Harry, who then sold the car to Don. Later, Don had trouble with the car and invoking a minor's right to disaffirm a contract, tried to return it to Harry for a full refund. Harry will have to accept the car and refund Don's money.
d.Charles, age 17, took a six-week job in a lumber camp. At the start of that period, he entered into a contract with Sally, the operator of a boarding house, for six weeks of room and board for $480, payable at the end of the six weeks. When the six weeks were up, however, Charles refused to pay, stating that he was disaffirming the contract under his rights as a minor. Sally sued Charles for the $480 and won because $480 was the reasonable value of room and board.
e.All of the above statements are true.
Question 50
Under the doctrine of _______________, damages are reduced by the percentage of the injuries caused by a plaintiff's own careless conduct.
a.intervening conduct.
b.substantial factor.
c.comparative neglilgence
d.proximate cause.
e.cause in fact.