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26. In which of the following cases would a motion for summary judgment most likely be denied? A. Adam's lawsuit involved the interpretation of a written contract and the parties were offering conflicting legal arguments about the interpretation. B. Baruch's lawsuit involved a car accident where there was a dispute about whether the light had turned red before the defendant entered the intersection. C. Caleb's lawsuit involved an accusation of race discrimination in the workplace and the parties could not agree as to whether federal or state law applied. D. David's lawsuit involved the application of a federal statute to his claim to buried treasure that he found on the campus of Cal State Fullerton.

. Baruch's lawsuit involved a car accident where there was a dispute about whether the light had turned red before the defendant entered the intersection.

In California state courts, the trial usually occurs about ______________________ after the complaint was filed? A. 6 months. B. 12-18 months. C. 4-5 years. D. This is unknown.

12-18 months

21. Virtually all agency relationships are created by: A. A contract. B. Industry standards. C. Apparent authority. D. Actual authority.

A. A contract.

18. Double taxation is a problem for: A. A limited partnership and its partners. B. A general partnership and its partners. C. A limited liability company and its members. D. A corporation and its shareholders.

A. A limited partnership and its partners.

In which of the following cases could costs be awarded to the "prevailing party" (winner)? A. A plaintiff who won a breach of contract case which was based on a contract that specifically stated the prevailing party should be awarded attorney's fees and costs. B. A plaintiff who won a negligence case which was based on a slip-and-fall accident on the CSUF campus. C. Both A and B. D. Neither A nor B.

A. A plaintiff who won a breach of contract case which was based on a contract that specifically stated the prevailing party should be awarded attorney's fees and costs. B. A plaintiff who won a negligence case which was based on a slip-and-fall accident on the CSUF campus.

Home Products Company takes a utilitarian approach when making decisions. Which of the following represents this view? A. An action is morally correct when, among the people it affects, it produces the greatest amount of good for the greatest number. B. An action is immorally incorrect when, among the people it affects, it produces the least amount of good for the smallest number. C. For every action, there is an opposite and equal reaction. D. The pursuit by individuals of their self-interest will result in a corresponding increase in social welfare.

A. An action is morally correct when, among the people it affects, it produces the greatest amount of good for the greatest number.

17. Which of the following is true? A. An employee who plans to quit his job should give a two-week notice because it is the professional thing to do. B. An employee who plans to quit his job must give a two-week notice because it is required by law. C. Both A and B. D. Neither A nor B.

A. An employee who plans to quit his job should give a two-week notice because it is the professional thing to do.

28. The best reason for an appeal in a civil lawsuit is: A. An error of law by the judge in the trial court. B. A conflict in the evidence in the trial court. C. Permitting someone to testify who had been convicted of several crimes. D.The statute of limitations

A. An error of law by the judge in the trial court.

12. Charles offered to pay for his friend Barbara's 10-year-old son to attend Long Beach Christian School (a private school). Barbara's son was attending a public school so she quickly accepted the offer. Charles and Barbara further agreed that she would pay the tuition and then he would reimburse her on June 1, 2019. However, Charles never paid any money to Barbara so she sued him for breach of contract. How should the court rule? A. Barbara should win because she was not legally obligated to send her son to a school of Charles' choice. B. Barbara should win because she suffered legal detriment when her son transferred to the private school. C. Charles should win because Barbara is legally obligated to provide for her minor son's education. D. Charles should win because Barbara was just his friend and not one of his legal dependents.

A. Barbara should win because she was not legally obligated to send her son to a school of Charles' choice.

31. Smith drove between his home in Long Beach and his job in Fullerton three or four days every week. During his drive between work and home, he owed a duty of care to: A. Be attentive and not do things like texting while driving. B. Let other drivers pass ahead of him. C. Both A and B. D. Neither A nor B.

A. Be attentive and not do things like texting while driving.

23. Larkin sued Jett for breach of contract because Larkin had done consulting services for Jett but Jett did not pay Larkin's $100,000.00 fee as promised. The court gave its judgment in favor of Larkin against Jett in the amount of $100,000.00. Which of the following is the best characterization of this judgment? A. Compensatory damages. B. Liquidated damages. C. Special damages. D. Consequential damages.

A. Compensatory damages.

16. Edelman was a partner in the law firm of Edelman & Feldstein LLP. One of the firm's clients lost a lawsuit because Edelman missed several deadlines set by the judge. The client sued Edelman, Feldstein (the firm's other partner) and the firm for legal malpractice. If the client proves her case, she can get a judgment against: A. Edelman. B. Feldstein. C. Both Edelman and Feldstein. D. Neither Edelman nor Feldstein.

A. Edelman.

15. Which of the following was discussed in class about the issue of why to use ADR instead of the court system to resolve a dispute? A. Emotional cost. B. The procedural law. C. A bargaining chip is the negotiations. D. More income.

A. Emotional Cost

30. Causation is often determined by how _____________________ it is that the defendant's bad act would lead to the plaintiff's injury. A. Foreseeable. B. Probable. C. Possible. D. Predictable.

A. Foreseeable.

1. What type of damages are available in a nuisance case? A. General damages. B. Consequential damages. C. Both A and B. D. Neither A nor B.

A. General damages.

13. Which of the following is true about a limited liability company? A. It is a separate legal entity. B. It has the same tax issues as a corporation. C. Both A and B. D. Neither A nor B.

A. It is a separate legal entity.

40. Which of the following is the best example of quid pro quo sexual harassment? A. Laurel was Hardy's supervisor; Laurel told Hardy to sleep with her "to make sure you get the next promotion." B. Laurel was Hardy's supervisor; Hardy offered to sleep with Laurel "to make sure I get the next promotion." C. Laurel was Hardy's supervisor; Laurel asked Hardy for a date several times but Hardy always said "no!" D. Laurel was Hardy's supervisor; Laurel asked Hardy for a date on one occasion but Hardy said "no!"

A. Laurel was Hardy's supervisor; Laurel told Hardy to sleep with her "to make sure you get the next promotion."

32. Which of the following is the best example of liquidated damages? A. Lourdes and Joseph had a contract that stated, in the event of a breach by Lourdes, Joseph would be entitled to damages in the amount of $3,000.00. B. Lourdes and Joseph had a contract that, because a breach by Lourdes, Joseph lost income from several customers in the amount of $300,000.00. C. Lourdes and Joseph had a contract which, because of a death in Joseph's family, they decided to replace with another contract. D. Lourdes and Joseph had a contract which, when Lourdes sold her interest to Shellie, Shellie obtained Lourdes' right to get a payment from Joseph in the amount of $30,000.00.

A. Lourdes and Joseph had a contract that stated, in the event of a breach by Lourdes, Joseph would be entitled to damages in the amount of $3,000.00.

16. Which of the following is the best example of substantial performance? A. O'Toole delivered his product to Fitzgerald's house a day later than promised in their contract but it did not matter since Fitzgerald was out of town. B. Kennedy delivered her product to McCauley's house a day later than promised in their contract but it did not matter since the product was defective. C. Senske delivered his product to Windsor's house a day later than promised in their contract but it did not matter since Windsor died last week. D. Marci completely failed to perform her contract with Klein.

A. O'Toole delivered his product to Fitzgerald's house a day later than promised in their contract but it did not matter since Fitzgerald was out of town.

24. Which of the following is the best example of a bona fide occupational qualification (BFOQ)? A. Smartie lost his job as a lawyer when the State Bar revoked his license to practice law. B. Dumby lost her job as a lawyer when she lost a leg in a car accident. C. Happy lost his job as a lawyer when he lost a million dollar lawsuit. D. Saddy lost her job as a lawyer when she lost her briefcase on an airplane.

A. Smartie lost his job as a lawyer when the State Bar revoked his license to practice law.

20. Prefontaine was seriously injured after he ate a large meal at Bowerman's restaurant. An investigation showed that, while Bowerman was in compliance with all laws relating to food preparation at the time, Prefontaine's injuries were caused by the meal. Which of the following would be the best theory for Prefontaine's lawsuit against Bowerman for these injuries? A. Strict liability. B. Intentional infliction of emotional distress. C. Negligence. D. Invasion of privacy.

A. Strict liability.

38. Farzad breached a written contract with Cyrus five years ago. Cyrus filed a lawsuit against Farzad based on this breach of written contract. The statute of limitations for breach of written contract is four years. Which of the following is correct? A. The contract is discharged by operation of law. B. The contract is discharged by novation. C. The contract is discharged by substantial performance. D. The contract is discharged by accord and satisfaction.

A. The contract is discharged by operation of law.

Questions 7 and 8 are based on the following: Emma bought a car from Lily while they were both going to Calvin College in Michigan. Lily assured Emma that the car was "in good working order" with new brakes. Emma was from Michigan and Lily was from Iowa. A few months later, Emma graduated and traveled to California to look for work. (Emma admitted that, if she could not find a job within a month in California, she would return to Michigan.) While Emma was driving her new car (OK, it was new to her) through Los Angeles to a job interview just after she arrived in California, the brakes on the car failed and she crashed. Coincidentally, Emma had called Lily just before the crash to report that she was in Los Angeles and Lily replied:"I've never been to California!" Due to this crash, Emma sustained serious injuries and, to make matters worse, a friend who was an expert about brakes told her that the brakes were far from new. Emma sued Lily for fraud (state law claim) in a federal district court in Los Angeles. In response, Lily filed a motion to dismiss Emma's case on the grounds of lack of subject matter and/or personal jurisdiction. 7. How should the court rule as to subject matter jurisdiction? A. The court has subject matter jurisdiction since Emma and Lily are from different states. B. The court has subject matter jurisdiction since it was reasonably foreseeable that a car would be driven to another state. C. The court has subject matter jurisdiction since Emma has presented a federal question in her lawsuit. D. The court does not have subject matter jurisdiction. 8. How should the court rule as to personal jurisdiction? A. The court has personal jurisdiction over Lily since Emma and Lily are from different states. B. The court has subject matter jurisdiction since it was reasonably foreseeable that a car would be driven to another state. C. The court has subject matter jurisdiction since Emma has presented a federal question in her lawsuit.

A. The court has subject matter jurisdiction since Emma and Lily are from different states. Subject-matter jurisdiction (also called jurisdiction ratione materiae) is the authority of a court to hear cases of a particular type or cases relating to a specific subject matter. For instance, bankruptcy court only has the authority to hear bankruptcy cases. D. The court does not have personal jurisdiction over Lily.

13. Which of the following is correct with respect to the rules that apply in any alternative dispute resolution process? A. The parties can use their own rules. B. The parties can never use their own rules. C. The rules of the local court should apply. D. The rules of the local court always apply.

A. The parties can use their own rules.

Questions 8 and 9 are based on the following: Goldsmith and Stiller had been friends for a long time so they trusted each other. Goldsmith said to Stiller: "Buy my car; it gets great gas mileage." They quickly agreed on a price of $15,000.00 which was close to fair market value. After about a month, Stiller calculated that the car was getting around 23 miles per gallon which Stiller thought was not "great" so he sued Goldsmith for fraud. Goldsmith defended the case on the grounds that (a) there was no false statement of fact and (b) there was no reasonable reliance. 1. How should the court rule on the false statement of fact issue: A. There was a false statement of fact because gas mileage is important when buying a car. B. There was a false statement of fact because Goldsmith's statement was a fact. C. There was no false statement of fact because a person should not buy a car based on gas mileage. D. There was no false statement of fact because Goldsmith's statement was an opinion. 2. How should the court rule on the reasonable reliance issue? A. There was reasonable reliance because Goldsmith and Stiller had been friends for a long time so they trusted each other. B. There was reasonable reliance because gas mileage is important when buying a car. C. There was no reasonable reliance because the long and trusting friendship between Goldsmith and Stiller was not relevant. D. There was no reasonable reliance because gas mileage is not important when buying a car.

A. There was no false statement of fact because Goldsmith's statement was an opinion. A. There was reasonable reliance because Goldsmith and Stiller had been friends for a long time so they trusted each other.

1. Which of the following is an example of light pollution? A. Warner allowed lights on his property to shine into his neighbor's bedroom. B. Warner built a large building which blocked light from reaching his neighbor's pool area. C. Both A and B. D. Neither A nor B.

A. Warner allowed lights on his property to shine into his neighbor's bedroom.

Which of the following is the best example of being ethical but giving up a legal right? A. Yaeger, a 21-year-old college student, did not get a tattoo because he thought people with tattoos were bad. B. Yaeger, a 21-year-old college student, vandalized his boyfriend's car because the boyfriend cheated on Yaeger. C. Yaeger, a 21-year-old college student, remained seated during the playing of the National Anthem before a football game. D. Yaeger, a 21-year-old college student, studied a lot for his business law exam because he wanted to get an A.

A. Yaeger, a 21-year-old college student, did not get a tattoo because he thought people with tattoos were bad.

28. Chowder, an employee of Rank & File Copy Service, was injured when he was making a delivery as part of his job. Chowder's injuries occurred when Clamm, a customer, accidentally dropped a large box on Chowder's right foot. Chowder sued Clamm for personal injuries at the Orange County Superior Court. Is Chowder's case properly before the Orange County Superior Court? A. Yes, because Clamm was a customer not the employer. B. Yes, because his exclusive remedy is in the worker's compensation system. C. No, because his exclusive remedy is in the worker's compensation system. D. No, because Clamm, a customer, was an agent of the employer.

A. Yes, because Clamm was a customer not the employer.

Consider the following fact pattern: Don, Mike and Barney are partners in a restaurant called, "Food, Booze and More" in downtown Fullerton. Don was in charge of the kitchen while Mike and Barney handled the business affairs of the restaurant. Don bought fresh vegetables almost daily from local farmers' markets. The restaurant's customers were made up of residents and businesspeople in the surrounding area. The restaurant engaged in some unique advertising such as advertising its availability for concerts featuring punk rock and heavy metal music. Several local residents contacted the restaurant as well as the Fullerton city council to object to the restaurant having these concerts due to noise, behavior issues, and drug usage that was associated with these concerts. Is Don a stakeholder in the restaurant? A. Yes, because Don is one of the restaurant's partners. B. Yes, because Don is one of the restaurant's vendors. C. No, because Don is not in charge of the restaurant's business affairs. D. No, because Don is not one of the restaurant's customers.

A. Yes, because Don is one of the restaurant's partners.

Questions 3 through 5 are based on the following: The Taylor Factory was in the business of making leather goods. The manufacturing process created an awful smell which was usually contained by an elaborate air freshening process. Unfortuately, in the middle of a terrible heat wave, the process malfunctioned which resulted in not only of the spread of the awful smell throughout the local area but also many local residents getting sick. Fortunately, the Taylor Factory was able to fix the problem within a few days but the damage had been done. Harrison, a lawyer who specialized in environmental law, represented 202 plaintiffs who claimed that they had been injured due to the awful smell and/or getting sick in a lawsuit for nuisance against the Taylor Factory. There were several other nuisance lawsuits filed by a number of other plaintiffs who were not represented by Harrison. After the lawsuit was filed, the state environmental regulators inspected the Taylor Factory and announced that all repairs were satisfactory and, with proper maintenance, the awful smell problem would not occur again for many years. 1. Was there a nuisance here? A. Yes, because of the unreasonable interference with the plaintiffs' use and enjoyment of their properties. B. Yes, because this problem was caused during the manufacturing process and therefore strict liability applies. C. No, because companies like the Taylor Factory bring great benefit to the economy so this interference is reasonable. D. No, because any interference lasted just a few days and therefore it was not unreasonable. 2. Assume for the purposes of this question only that the court ruled this problem was a nuisance. What kind of nuisance was it? A. Process nuisance. B. Public nuisance. C. Punctual nuisance. D. Private nuisance. 3. Assume (again) for the purposes of this question only that the court ruled this problem was a nuisance. What type of remedies would be appropriate to include in the judgment in favor of the plaintiffs against the Taylor Factory? A. Damages. B. Injunction. C. Both A and B. D. Neither A nor B.

A. Yes, because of the unreasonable interference with the plaintiffs' use and enjoyment of their properties. Public nuisance Damages

37. Mitsuji, an employee of Furuta Agriculture, Inc., was injured during the course and scope of his employment. Mitsuji's injury happened when he negligently stood on a flimsy chair to get something from a high shelf. Is Mitsuji entitled to worker's compensation benefits? A. Yes, since he suffered an accidental injury on the job. B. Yes, since strict liability applies to chair-related injuries. C. No, since his exclusive remedy for on-the-job accidents is in the court system. D. No, since his own negligence caused his injury.

A. Yes, since he suffered an accidental injury on the job.

16. Which of the following is the best example of a constitution? A. Zier sued the school because she was deprived of her right to free speech. B. Gomez was sued for violating a law created by Congress. C. The California Supreme Court decided a case involving the right to free speech. D. Tran had to submit a claim for damages to the city before he could sue the city.

A. Zier sued the school because she was deprived of her right to free speech.

20. Which of the following is the definition of a partnership according to California law? A. "Two or more persons who own and operate a business together for profit." B. "An association of two or more persons to carry on as co-owners a business for profit." C. "Two or more persons have equal ownership shares in a business for profit." D. "An association of two or more persons who are partners in and operating a business for profit."

B. "An association of two or more persons to carry on as co-owners a business for profit."

34. Which of the following is the best example of a manufacturing defect? A. The designer of a product miscalculated the product's strength resulting in injuries to Andropov. B. A piece of furniture was improperly assembled which caused Arvizu to break her nose and lose two teeth. C. Anto was injured because he ignored a warning about not ironing clothes while wearing them. D. Arias lost her job after a customer lied to Arias's supervisor about Arias's work ethic.

B. A piece of furniture was improperly assembled which caused Arvizu to break her nose and lose two teeth.

31. Taylor was the owner of a company. After making some careful calculations, he determined that he needed to fire three of his employees. At a meeting of his employees, Taylor decided to fire the three employees who were sitting in the back row of the room. Which of the following is the best reason in support of Taylor's decision? A. BFOQ. B. At-will employment rule. C. After-acquired evidence rule. D. Good cause.

B. At-will employment rule.

Dion, an accountant for Engineering Associates, Inc., attempts to apply the duty approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must A. Achieve the greatest good for the most people. B. Avoid unethical behavior regardless of the consequences. C. Conform to society's ethical standards. D. Place his or her employer's interest first.

B. Avoid unethical behavior regardless of the consequences.

15. Which of the following sets policy and business direction for a corporation? A. Shareholders. B. Board of directors. C. Officers. D. Employees.

B. Board of directors.

35. Andrews and Peters were in a car accident when Andrews ran a red light and hit Peters who, at that same time, was driving and texting. Peters sued Andrews based on personal injuries and property damage. Which of the following is Andrews' best defense? A. Assumption of the risk. B. Comparative negligence. C. Third party fault. D. Unclean hands.

B. Comparative negligence.

Energy Research Corporation asks its employees to consider ethical behavior from a "categorical imperative" perspective. This approach: A. Categorizes certain actions as imperative. B. Considers the consequences to follow if everyone acted the same. C. Focuses on categories of rights and privileges. D. Imposes sanctions on those who behave unethically.

B. Considers the consequences to follow if everyone acted the same

11. Boris, an employee of the bank, had use of a company car for bank business only. One weekend, he took the car to drive his mother to her friend's house in Mexico. The bank sued Boris for "wear and tear" to the car due to this Mexico trip. Which of the following is the best theory for the bank's lawsuit? A. Fraud. B. Conversion. C. Strict liability. D. Negligence.

B. Conversion.

23. Which of the following is the intermediate appellate court in the California state court system? A. District Court. B. Court of Appeal. C. Superior Court. D. Supreme Court.

B. Court of Appeal

9. At trial, an expert witness provides: A. Expert background. B. Expert opinions. C. Expert handiwork. D. Expert fronds.

B. Expert Opinions

Questions 39 and 40 are based on the following: Frosty went to a doctor due to back pain. Frosty told the doctor that he had hurt his back while lifting a large package of illegal goods. The doctor reported Frosty's statement to the police who arrested Frosty for trafficking in illegal goods. Frosty's lawyer was able to get the charges dismissed but not before Frosty had spent $30,000.00 for legal fees (he was also very upset about having to face criminal charges). Frosty sued the doctor for invasion of privacy. Frosty claimed damages for the legal fees in the amount of $30,000.00 plus emotional distress damages. (Questions 39 and 40 are on the next page.) 39. What should be the result of Frosty's privacy case against the doctor? A. Frosty should win because the charges against him were dismissed. B. Frosty should win because he had a reasonable expectation of privacy. C. Frosty should lose because the charges against him were dismissed. D. Frosty should lose because he did not have a reasonable expectation of privacy. 40. Assume for the purposes of this question only that Frosty won the case. Which of the following is the best description of his damages based on emotional distress? A. General damages. B. Special damages. C. Consequential damages. D. Compensatory damages.

B. Frosty should win because he had a reasonable expectation of privacy. A. General damages.

30. Cheng, Chung and Guan were partners in a partnership. Cheng was in charge of the office and dealt with the partnership's legal and financial matters. Chung was in charge of marketing the partnership to new and existing customers. Guan invested $50,000.00 in the partnership in exchange for 10% of the profits. Which of the following best characterizes this partnership? A. General partnership. B. Limited partnership. C. General liability partnership. D. Limited liability partnership.

B. Limited partnership.

24. A bilateral contract consists of: A. A promise by one party which calls for action by the other party. B. Promises by both parties. C. A promise in writing. D. A contract that violates the statute of frauds.

B. Promises by both parties.

25. Which of the following is the best example of a voidable contract? A. Leo and Warner agreed that Leo would provide illegal drugs to Warner who, in exchange, would pay $5,000.00 to Leo. B. Rinehart and Lindstedt agreed to a real estate contract just minutes after Rinehart suffered a serious head injury. C. Wildish and Bohm agreed to a contract that was much more favorable to Wildish than it was to Bohm. D. Roxy and Lindsay discussed an agreement which involved the sale of Roxy's car for its fair market value.

B. Rinehart and Lindstedt agreed to a real estate contract just minutes after Rinehart suffered a serious head injury.

27. Which of the following is the best example of a statute? A. The United States Supreme Court ruled that a local statute violated the Second Amendment's right to bear arms. B. The Fullerton City Council passed a law limiting the amount of ammunition that a person could possess at any one time. C. The right to privacy is expressly stated in the California Constitution. D. Hillary was required by law to appear before the City Council as a prerequisite to filing a lawsuit against the City for personal injuries.

B. The Fullerton City Council passed a law limiting the amount of ammunition that a person could possess at any one time.

12. Which of the following is the best example of common law? A. The United States Supreme Court ruled that an employee could not be forced to pay union dues if she were not a union member. B. The Orange County Board of Supervisors created laws that governed how real estate could be developed throughout the county. C. Tiffany had to submit a claim a claim for damages to the city before she could sue the city. D. The "right to bear arms" in the Second Amendment is well-known in the United States and throughout the entire world.

B. The Orange County Board of Supervisors created laws that governed how real estate could be developed throughout the county.

14. The business judgment rule requires: A. The agent must have a conflict of interest. B. The agent must make reasonable efforts to become informed. C. The agent must have a written employment contract. D. The agent cannot lose her job based on taking a risk.

B. The agent must make reasonable efforts to become informed.

Questions 4 through 6 are based on the following: Dirk sued Tracy for breach of a contract that required him to perform certain services for Tracy in exchange for a fee of $500,000.00. The contract included a clause that stated: "In the event of litigation relating to this contract, the prevailing party shall be entitled to an award of all costs." At trial, Dirk presented evidence of the contract he and Tracy had signed, that Dirk had performed all services required by the contract in a timely and satisfactory manner, and that Tracy had refused to pay him any portion of the $500,000.00 fee stated in the contract. In her defense, Tracy presented evidence that Dirk's services were unsatisfactory and, in fact, she had to pay Chana $250,000.00 to perform services to correct problems caused by Dirk's unsatisfactory services. During the trial, Tracy was caught in a few lies about the details of her testimony. Dirk was from Germany and he still had a very noticeable German accent when he spoke English. While the jury was deliberating about the decision it was to make, several jurors commented about Dirk's accent and they made offensive statements such as "can a foreigner even sue in an American court" and "I wonder if he is a Nazi." Ultimately, the jury decided in favor of Dirk but awarded him only $100,000.00 because they had some issues with the quality of his work. When the lawyers interviewed the jury after the trial, the lawyers found out about the jury's comments about Dirk's accent and statements regarding Dirk as well as their reason for awarding $100,000.00 instead of the $500,000.00 he requested. Dirk then filed motions for a new trial and judgment notwithstanding the verdict (JNOV). He also filed a motion for attorney's fees. 4. How should the court rule on the motion for new trial? A. The motion should be granted due to Dirk's accent. B. The motion should be granted due to the statements by several jurors such as "can a foreigner even sue in an American court" and "I wonder if he is a Nazi." C. The motion should be granted due to Tracy's being caught in a few lies about the details of her testimony. 5. How should the court rule on the motion for a judgment notwithstanding the verdict (JNOV)? A. The motion should be granted because the evidence was clear that Dirk performed all services required by the contract in a timely and satisfactory manner. B. The motion should be granted because of the statements by several jurors such as "can a foreigner even sue in an American court" and "I wonder if he is a Nazi." C. The motion should be granted because the jury abused its discretion. D. The motion should be denied. 6. Assume for the purposes of this question only that Dirk's new trial and JNOV motions were denied. How should the court rule on the motion for attorney's fees? A. The motion should be granted due to Tracy's being caught in a few lies about the details of her testimony. B. The motion should be granted due to Tracy's evidence that Dirk's services were unsatisfactory and, in fact, she had to pay Chana $250,000.00 to perform services to correct problems caused by Dirk's unsatisfactory services. C. The motion should be granted due to Dirk's winning a judgment in his favor. D. The motion should be denied.

B. The motion should be granted due to the statements by several jurors such as "can a foreigner even sue in an American court" and "I wonder if he is a Nazi." D. The motion should be denied. D.. The motion should be denied.

Which of the following is the best example of being ethical but violating the law? A. Yaeger, a 21-year-old college student, did not get a tattoo because he thought people with tattoos were bad. B. Yaeger, a 21-year-old college student, vandalized his boyfriend's car because the boyfriend cheated on Yaeger. C. Yaeger, a 21-year-old college student, remained seated during the playing of the National Anthem before a football game. D. Yaeger, a 21-year-old college student, studied a lot for his business law exam because he wanted to get an A.

B. Yaeger, a 21-year-old college student, vandalized his boyfriend's car because the boyfriend cheated on Yaeger.

36. Soto lost his cat and posted signs in his neighborhood offering a $100.00 reward for the cat's return. Dominguez found Soto's cat and returned the cat to Soto at Soto's house. Before Dominguez returned the cat to Soto, Dominguez saw one of Soto's signs offering the reward. Dominguez asked for the reward, but Soto refused to pay. Is Soto obligated to pay the reward to Dominguez? A. Yes, because Dominguez was going to return the cat to Soto anyway B. Yes, because Dominguez saw the sign offering the reward before returning the cat to Soto. C. No, because Dominguez was going to return the cat to Soto anyway. D. No, because Dominguez did not see the sign offering the reward before returning the cat to Soto.

B. Yes, because Dominguez saw the sign offering the reward before returning the cat to Soto.

37. Two men did substantial landscaping work at Floopy's house. Floopy had not asked the men to do this work but was happy to watch them do the work. The men gave Floopy a bill for their services ($500.00, which was a reasonable fee for the work). After discussing the matter, Floopy and the men determined that the men had mistakenly done the work at the wrong property. Should Floopy be obligated to pay the men for the work? A. Yes, because work of this type does not require a written contract. B. Yes, because otherwise unjust enrichment would result. C. No, because work of this type requires a written contract. D. No, because no unjust enrichment would result.

B. Yes, because otherwise unjust enrichment would result.

22. Horatio said to Kane: "I offer to buy your car for $10,000.00." This offer is available to be accepted for: A. The remainder of the day. B. Thirty days. C. A reasonable period of time. D. An indefinite period of time.

C. A reasonable period of time.

25. While driving across town to make a delivery on behalf of her employer, Valerie stopped to buy a birthday card for her mother. While she was at the store for a few minutes buying the card, she negligently destroyed a display at the store which sued Valerie and her employer for her negligence. Everyone agreed that Valerie's negligence caused the damage to the display. Which of the following is correct? A. The store can get a judgment against the employer. B. The store can get a judgment against Valerie. C. Both A and B. D. Neither A nor B.

C. Both A and B.

39. Vanderdoosen was driving to his job at Biima Corporation one morning when he carelessly ran a red light which resulted in injuries to Dejoong. At the time of the accident, Vanderdoosen was talking on his phone with his work supervisor. Against whom could Dejoong get a judgment based on this accident? A. Vanderdoosen. B. Biima Corporation. C. Both A and B. D. Neither A nor B.

C. Both A and B.

25. Which of the following is the best example of a substantive law? A. California Government Code Section 70617(d) requires payment of $500.00 to file a motion for summary judgment. B. California Code of Civil Procedure Section 437c(a) requires that notice of a motion for summary judgment must be served at least 75 days before the hearing. C. California Civil Code Section 1572 provides several alternative definitions for actual fraud. D. California Evidence Code Section 402 provides the procedure for determining foundational and other preliminary facts.

C. California Civil Code Section 1572 provides several alternative definitions for actual fraud.

1. Which of the following is not common ground for general and limited partnerships? A. Separate legal entity. B. Pass-through entity. C. Concerns about alter ego liability. D. Association of two or more persons.

C. Concerns about alter ego liability.

17. Which of the following is an advantage of taking your dispute to alternative dispute resolution instead of court? A. Typically, the judge is more knowledgeable. B. Most of the time, there is no pressure. C. Generally, you would save time and money. D.Usually, you get a better result

C. Generally, you would save time and money.

22. Smith, a lawyer with his own law firm, was hired by the corporation to represent it in a lawsuit. Smith was able to negotiate a very good settlement for the corporation. Before the settlement became public, Smith bought stock in the corporation. When the settlement was announced on the internet, the value of the stock increased and Smith sold his stock for a profit of $50,000.00. This is an example of: A. Insider trading based on the traditional definition. B. Insider trading based on the tipper/tippee theory. C. Insider trading based on the misappropriation theory. D. Not insider trading.

C. Insider trading based on the misappropriation theory.

26. Pointing at Barry's car, Adam said: "I will buy your car for $10,000.00." Barry replied: "Let me think about it and I will text you later." Later that same day, Adam sent a text to Barry that said: "I don't want your car after all." Barry then texted right back: "I accept your offer." Do Adam and Barry have mutual assent? A. Yes, because Barry accepted Adam's offer within a reasonable time. B. Yes, because Barry did promise to send a text to Adam later. C. No, because Adam withdrew his offer before Barry accepted it. D. No, because Adam's offer was not reasonably definite.

C. No, because Adam withdrew his offer before Barry accepted it.

29. Does a sole proprietorship file an income tax return? A. Yes, whether or not the sole proprietorship has earned a profit. B. Yes, because a sole proprietorship is a separate legal entity. C. No, because the owner pays the income tax based on the sole proprietorship's income. D. No, whether or not the owner has zero or many investors in the sole proprietorship.

C. No, because the owner pays the income tax based on the sole proprietorship's income.

1. Barby was greatly disturbed since her neighbor's dogs would bark for hours in the middle of the night. This is: A. Water pollution. B. Air pollution. C. Noise pollution. None of the above

C. Noise pollution.

19. Which of the following is the best example of actual express authority? A. Professors at Mihaylo College generally dress more professionally than other CSUF professors. B. Lincoln owned a company and he gave his employees a lot of discretion as to how to do their jobs. C. Obama told his employees that they could negotiate contracts on his behalf but he had to give final approval. D. Carter told his employees that he would give a $10,000.00 bonus to the #1 producing employee.

C. Obama told his employees that they could negotiate contracts on his behalf but he had to give final approval.

21. The court ruled that evidence of actions by the parties after they were supposed to have entered into an oral contract was relevant. This ruling is an example of: A. Parol evidence rule. B. Surrounding circumstances. C. Subsequent conduct. D. Statute of frauds.

C. Subsequent conduct.

24. If your relationship with someone is based on a document, you should refer to that document because: A. That document is in writing. B. That document has special legal significance. C. That document is the first source of information as to that relationship. D. That document is certain to explain everything about that relationship.

C. That document is the first source of information as to that relationship.

32. Haley and Bennett were lawyers who formed a partnership called the Law Offices of Haley & Bennett. Both were active in the partnership. Without Bennett's knowledge, Haley took money from the firm's client trust account (which contains money that belongs to clients but is temporarily held in trust by the firm) and left the country. Bennett did not get any of the money taken by Haley. The clients whose money had been taken by Haley sued Bennett to recover their losses. What should be the result of this lawsuit? A. Bennett should win because Haley & Bennett was a general partnership. B. Bennett should win because Bennett did not benefit from Haley's crime. C. The clients should win because Haley & Bennett was a general partnership. D. The clients should win because Bennett did not benefit from Haley's crime.

C. The clients should win because Haley & Bennett was a general partnership.

. What does it mean when a defendant is referred to as being "judgment-proof"? A. The defendant has no chance of losing in court. B. The defendant may have a strong defense in court. C. The plaintiff likely will not be able to collect a judgment against the defendant. D. The plaintiff has only a small probability of winning a judgment against the defendant.

C. The plaintiff likely will not be able to collect a judgment against the defendant.

Questions 27 and 28 are based on the following: Elgin was a lawyer who was representing Baylor in a lawsuit in which Baylor, the plaintiff, was seeking $100,000.00 in damages. The defendant made a motion for summary judgment. Elgin failed to appear at the hearing on the motion for summary judgment so the judge dismissed Baylor's lawsuit. Elgin failed to appear because Wilt disabled Elgin's car on the morning of the hearing. Elgin was not able to borrow another car that morning despite calling several friends and colleagues. Baylor sued Wilt for the damages suffered due to the dismissal. (Questions 27 and 28 are on the next page.) 27. Which of the following is the best cause of action for Baylor's lawsuit against Wilt? A. Fraud. B. Intentional infliction of emotional distress. C. Wrongful interference. D. Defamation. 28. Assume for the purposes of this question only that Baylor won his lawsuit against Wilt and the court awarded damages of $100,000.00 to compensate Baylor for what he should have won in the prior lawsuit that was dismissed. Which of the following is the best description of these damages? A. Special damages. B. General damages. C. Compensatory damages. D. Consequential damages.

C. Wrongful interference. A. Special damages.

Which of the following is the best example of following the law but being subject to ethical criticism? A. Yaeger, a 21-year-old college student, did not get a tattoo because he thought people with tattoos were bad. B. Yaeger, a 21-year-old college student, vandalized his boyfriend's car because the boyfriend cheated on Yaeger. C. Yaeger, a 21-year-old college student, remained seated during the playing of the National Anthem before a football game. D. Yaeger, a 21-year-old college student, studied a lot for his business law exam because he wanted to get an A.

C. Yaeger, a 21-year-old college student, remained seated during the playing of the National Anthem before a football game.

33. Emma worked for Lily of the Valley, Inc., a corporation that manufactured baby supplies. According to her employment contract with the corporation, Emma was supposed to be paid $78,000/year plus a "Christmas bonus" of $10,000 if the corporation sold baby supplies worth at least $10 million over the previous twelve months. The corporation sold baby supplies worth $12 million over the previous twelve months. Is Emma entitled to the "Christmas bonus" of $10,000? A. Yes, according to the duty of indemnity. B. Yes, according to the duty of reimbursement. C. Yes, according to the duty of compensation. D. No.

C. Yes, according to the duty of compensation.

1. Nguyen made an offer to buy Tran's car for $10,000.00. Tran responded by saying: "How about $12,000.00?" Tran's response is: A. A complete rejection of Nguyen's offer. B. A partial rejection of Nguyen's offer. C. A negotiating ploy. D. A counteroffer.

D. A counteroffer.

Questions 20 through 22 are based on the following: Arvizu was injured when she was struck by a car driven by Arias who had run a red light. Arvizu hired a private investigator who made measurements and conducted other tests at the scene of the accident. Arvizu then filed a lawsuit for negligence against Arias claiming that, due to the accident, she had lost her job (where her salary was $50,000/year) and suffered great emotional distress. After the lawsuit was filed, Arvizu's lawyer sent a request for documents to Arias to obtain documents relating to past accidents in which Arias had been involved. Arias refused to produce the documents so Arvizu filed a motion for an order compelling production of the documents. The judge denied the motion, stating that the documents were "irrelevant" to the lawsuit. Arvizu wanted to appeal the denial of her motion but her lawyer told her it would be a waste of time and money to appeal. Just before the trial, Arvizu and Arias discussed the case without anyone else present and they agreed that Arias would pay $30,000.00 to Arvizu and, in exchange, Arvizu would dismiss her lawsuit. The money was paid and the lawsuit was dismissed even though Arvizu thought she could have gotten much, much more from a jury. (Questions 20 through 22 are on the next page.) 20. Which of the following is the best example of discovery? A. Arvizu was injured when she was struck by a car driven by Arias who had run a red light. B. Arvizu hired a private investigator who made measurements and conducted other tests at the scene of the accident. C. Arvizu then filed a lawsuit for negligence against Arias claiming that, due to the accident, she had lost her job (where her salary was $50,000/year) and suffered great emotional distress. D. After the lawsuit was filed, Arvizu's lawyer sent a request for documents to Arias to obtain documents relating to past accidents in which Arias had been involved. 21. Which of the following is the best example of informal investigation? A. Arvizu was injured when she was struck by a car driven by Arias who had run a red light. B. Arvizu hired a private investigator who made measurements and conducted other tests at the scene of the accident. C. Arvizu then filed a lawsuit for negligence against Arias claiming that, due to the accident, she had lost her job (where her salary was $50,000/year) and suffered great emotional distress. D. After the lawsuit was filed, Arvizu's lawyer sent a request for documents to Arias to obtain documents relating to past accidents in which Arias had been involved. 22. What document did Arvizu file in court to begin her lawsuit? A. Motion for summary judgment. B. Injunction. C. Answer. D. Complaint.

D. After the lawsuit was filed, Arvizu's lawyer sent a request for documents to Arias to obtain documents relating to past accidents in which Arias had been involved. B. Arvizu hired a private investigator who made measurements and conducted other tests at the scene of the accident. D. Complaint.

19. The definition of the word "lawyer" is synonymous with the word: A. Litigation. B. Damages. C. Lawsuit. D. Attorney.

D. Attorney.

Questions 18 and 19 are based on the following: Allan, a large man, threatened to hit Diane, a small woman, unless she signed a contract prepared by Allan. Diane was very afraid of Allan so she signed the contract even though she thought it was a bad deal for her. The contract stated that Diane would transfer 51% of the stock in a corporation which was wholly owned by Diane to Allan in exchange for his payment of $100,000.00. The stock was worth much more and, in fact, Diane had rejected an offer from someone else in the amount of $1,000,000.00. Diane later sued Allan because a lawyer advised her that the contract was a bad deal for her. (Questions 18 and 19 are on the next page.) 18. Which of the following is the most appropriate theory in support of Diane's lawsuit? A. Undue influence. B. Fraud. C. Conversion. D. Duress. 19. Assume for the purposes of this question only that Diane won her lawsuit. Which of the following equitable remedies would most likely be in the judgment? A. Specific performance. B. Reformation. C. Rescission and restitution. D. Injunction.

D. Duress. C. Rescission and restitution.

17. Which of the following is the best example of an acceptance of an offer? A. Atul offered to buy Baruch's car for $5,000.00; Baruch replied, "How about $6,000.00?" B. Cat offered to buy Darvishian's car for $5,000.00; Darvishian replied, "I will let you know tomorrow." C. Earley offered to buy Franco's car for $5,000.00; Franco replied, "No, I want to keep my car." D. Gregorio offered to buy Herman's car for $5,000.00; Herman replied, "That sounds good to me."

D. Gregorio offered to buy Herman's car for $5,000.00; Herman replied, "That sounds good to me."

Questions 14 and 15 are based on the following: Ghuman and Kaur were in a romantic relationship with plans to get married as soon as they graduated from CSUF. Two days before graduation, Ghuman discovered that Kaur had stolen several thousand dollars from her bank account. Ghuman then sent several pictures of Kaur to all 397 of the contacts on her phone. The contacts included Kaur's parents, many mutual friends, Kaur's boss at work and several of CSUF professors. The pictures included pictures where Kaur was only partially clothed. Kaur quickly learned about this "revenge porn" and was completely humiliated. She quit her job and did not attend graduation because she was so ashamed. Kaur sued Ghuman for damages. (Questions 14 and 15 are on the next page.) 14. Which of the following would be the best cause of action for Kaur's lawsuit? A. Negligence. B. Defamation. C. Strict liability. D. Intentional infliction of emotional distress. 15. If Kaur won this lawsuit, would punitive damages be available? A. Yes, because Ghuman's conduct was unbearable. B. Yes, because of Kaur's shame. C. Yes, because Ghuman committed an intentional tort. D. No.

D. Intentional infliction of emotional distress. C. Yes, because Ghuman committed an intentional tort.

29. Rivara was celebrating her birthday with friends when she decided to shoot her gun into the air. She was careful to shoot toward an open field but Barragan was hit and injured by one of Rivara's shots. This is best described as: A. An unfortunate accident. B. Negligence. C. Strict liability. D. Intentional tort.

D. Intentional tort.

33. In a breach of contract case, the defense of mitigation of damages obligates the plaintiff to: A. Provide all information he or she has about damages to the defendant. B. Go through a mediation before filing his or her complaint. C. Be willing to accept alternative remedies other than damages. D. Make reasonable efforts to reduce the amount of his or her damages.

D. Make reasonable efforts to reduce the amount of his or her damages.

34. Which of the following is the best example of disparate treatment which violates Title VII? A. Montel, an African-American man, was not hired at the accounting firm since the boss thought Montel was too short. B. Val, a Hispanic woman, was not hired at the accounting firm since the boss thought Val was unqualified for the position. C. Knight, a man born in Ohio, was not hired at the accounting firm since the boss thought Knight was unpredictable due to a bad temper. D. Montgomery, a woman born in Mexico, was not hired at the accounting firm since the boss wanted to hire people born in the United States.

D. Montgomery, a woman born in Mexico, was not hired at the accounting firm since the boss wanted to hire people born in the United States.

18. How can a person become a Judge of the United States District Court? A. Election by the People. B. Appointment by the Governor. C. Either A or B. D. Neither A nor B.

D. Neither A nor B.

23. In 2005, Martha Stewart was charged with violating insider trading laws. Was she convicted of those charges? A. Yes, based on the traditional definition. B. Yes, based on the tipper/tippee theory. C. Yes, based on the misappropriation theory. D. No.

D. No.

3. Who is an owner of a sole proprietorship? A. Shareholder. B. Partner. C. Member. D. None of the above.

D. None of the above.

36. The general rule regarding an employer's drug testing of an employee is: A. The employer can require an employee to take a drug test for the purposes of productivity. B. The employer can require an employee to take a drug test so long as all employees also have to take a drug test. C. The employer can require an employee to take a drug test at the employer's discretion. D. None of the above.

D. None of the above.

Xcel Corporation engages in ethical behavior solely for the purpose of getting good publicity and thereby increasing profits. Xcel is A. Acting unethically in its pursuit of publicity. B. Acting unethically in its pursuit of profits. C. Acting unethically in its setting of priorities. D. Not acting unethically.

D. Not acting unethically.

13. Patel was injured when he tried to clean dirt out of his right ear by using the eraser on the end of a pencil. He sued the manufacturer of the pencil since there was no warning on the pencil about the dangers of trying to clean ears with it. What should be the result? A. Patel should win since he was injured. B. Patel should win since there was no warning on the pencil. C. Patel should lose since he was careless. D. Patel should lose since he was not using the pencil for its intended use.

D. Patel should lose since he was not using the pencil for its intended use.

35. What is the main advantage usually sought by business owners who want to form a corporation for their business? A. A corporation is an established type of business entity. B. A corporation is a "pass-through" business entity for income tax purposes. C. Shareholders do not need to be involved in the day-to-day operation of a corporation. D. Shareholders' personal assets are ordinarily protected against corporate creditors.

D. Shareholders' personal assets are ordinarily protected against corporate creditors.

10. Stafford and Barnett signed a written contract which stated that Stafford would pay $815,000.00 to Barnett who, in exchange, would transfer her home to Stafford. However, Barnett then refused to sign the deed that would complete the transfer, so Stafford sued Barnett for breach of contract. Which of the following equitable remedies would be most appropriate? A. Injunction. B. Rescission and restitution. C. Reformation. D. Specific performance.

D. Specific performance.

Manufactured Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require: A. A choice among alternatives that will produce maximum societal utility. B. A determination of whom an action will affect. C. An assessment of the effects of alternatives on those affected. D. The acquiring of the means of production by workers.

D. The acquiring of the means of production by workers.

When an individual or company complies with the law, it is referred to as: A. The moral maximum. B. The legal minimum. C. The legal maximum. D. The moral minimum.

D. The moral minimum.

Mohammad, the owner of Superior Engineering, Inc. adheres to the "principle of rights" theory. Under this theory, a key factor in determing whether a business decision is ethical is how that decision affects: A. The right end of the political spectrum. B. The right thing to do. C. The right to make a profit. D. The rights of others.

D. The rights of others.

14. As discussed in class, which of the following is not part of the cost-benefit analysis for a party to a civil lawsuit? A. The probability of winning. B. The principle of the thing. C. The expense vs. relief. D. The sense of entitlement.

D. The sense of entitlement.

38. Sancho was injured while working when one of his employer's vendors accidentally set Sancho on fire. What would be the label for Sancho's lawsuit for his injuries against the vendor? A. Incidental. B. Exclusive. C. Outside party. D. Third party.

D. Third party.

Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This requires that the employees to: A. Categorize the issues according to legality, morality, and profitability. B. Consider only the benefits that would accrue to them personally. C. Look only at the result, regardless of the means to attain it. D. Weigh the consequences that would follow if everyone acted the same.

D. Weigh the consequences that would follow if everyone acted the same.

In our discussion of the various ethical theories, we discussed some of the criticisms that exist of the various approaches. Is there a valid criticism of the approach to ethics that is referred to as "utilitarianism"? A. Of course not! All of the ethical approaches that we discussed are valid and good! B. Sort of. The problem with utilitarianism, if it can even be called a "problem," is that it fosters conformance with society's standards. We want everyone to be unique! C. Well, yes, there is. The problem is that it mandates acting in an employer's best interest. We want employees to think outside the box! D. Yes, definitely. Utilitarianism results in human costs that many find unacceptable.

D. Yes, definitely. Utilitarianism results in human costs that many find unacceptable.

30. For the purposes of determining personal jurisdiction, a person can have her "domicile" in which of the following states? A. The state where she owns a vacation home that she uses for six weeks every summer. B. The state where she owns a home that is her primary residence. C. Both A and B. D. Neither A nor B.

he state where she owns a home that is her primary residence.