ACC 205 Final Practice Questions

Unit 2: Julie, Manuel, and Emilio are three dentists who formed a limited liability partnership (LLP) for their dental practice. Emilio accidentally removes the wrong tooth of a patient. The patient sues the partnership for negligence and wants to hold all three doctors personally liable. A court will most likely find: a. Emilio personally liable for negligence, but not Julie and Manuel. b. Emilio and Manuel personally liable for negligence, but not Julie. c. all partners personally liable for negligence. d. Emilio and Julie personally liable for negligence, but not Manuel.

a. Emilio personally liable for negligence, but not Julie and Manuel.

Unit 1: A state legislature passes a statute prohibiting businesses from supporting any political candidate. If some business owners challenge the constitutionality of the law in court, will the law be upheld? a. No, because the law is an unconstitutional restriction on free speech. b. No, because the business owners' privileges and immunities have been violated. c. Yes, because the law only prohibits political speech by businesses, not by individual citizens. d. Yes, because political speech is restricted if "constitutionally permissible."

a. No, because the law is an unconstitutional restriction on free speech.

Unit 5: Vinny decides to sue Allison. To begin the suit, Vinny must file a complaint. Vinny's attorney argues in the complaint that the Connecticut Superior Court is the most appropriate court in which the case should be heard. Vinny's attorney is asserting: a. a statement of the basis for the court's jurisdiction. b. a statement indicating the key evidence behind the suit. c. a motion for judgment n.o.v. d. a motion for summary judgment.

a. a statement of the basis for the court's jurisdiction.

Unit 2: Sadie contracted with Sean, who agreed to replace the carpets in her house. Sean damaged some of the walls when he installed the carpets. Sadie did not pursue a claim against Sean for his defective performance of the contract. Sadie's actions are known as: a. a waiver of breach. b. a penalty. c. a breach. d. an exculpatory clause.

a. a waiver of breach.

Unit 3: Laura and Juan have an agreement where Laura will sell Juan's baseball card collection while he is out of the country. Juan does not give any specific instructions on how this should be done. To fulfill her duty of obedience, Laura must: a. act in good faith. b. not perform on the contract and is excused from performance. c. seek out instructions from Juan's closest relative. d. request specific instructions in writing.

a. act in good faith.

Unit 2: Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's offer. Jamie and Carmen have: a. an express contract. b. an executed contract. c. a quasi contract. d. an implied contract.

a. an express contract.

Unit 2: As a director and officer of Max Transport, Inc., Max would most likely be considered to have breached his duty of loyalty if he: a. buys stock in Arnold's Transport, Inc., a competing trucking firm. b. suggests to the other members of the board that the company should purchase a new line of trucks. c. becomes a director of CineMax, a chain of multiplex theaters. d. personally takes advantage of a business opportunity that the officers and directors of Max Transport voted against.

a. buys stock in Arnold's Transport, Inc., a competing trucking firm.

Unit 4: Estella agrees to lease some property that she owns to the San Juan County Historical Society for a term of one year. The Historical Society's tenancy is known as a: a. fixed-term tenancy. b. tenancy at will. c. tenancy at sufferance. d. periodic tenancy.

a. fixed-term tenancy.

Unit 3: Vince relies on his computer skills to have enough money to attend college. He breaks into computer systems to transfer funds to his own accounts. He occasionally gets paid by other students for breaking into the university's computers to alter their grades. Vince is what is commonly referred to as a: a. hacker. b. tortfeasor. c. cyberstalker. d. cybersquatter.

a. hacker.

Unit 3: John becomes seriously ill while vacationing at a remote island resort. Dr. Smith is vacationing at the same resort. Because it is an emergency and no one else is available, the doctor treats John until he can be flown to the mainland. John's illness is outside of Dr. Smith's area of expertise, and the treatment she provides causes permanent damage to Frank. If John sues Dr. Smith, she can defend herself under: a. the "danger invites rescue" doctrine. b. Good Samaritan statutes. c. the theory of res ipsa loquitur. d. dram shop acts.

b. Good Samaritan statutes.

Unit 3: Patricia hires Albert to sell Patricia's expensive sports car. Albert agrees on a sale with Zeke, who wants to purchase the car for its powerful engine and well-kept condition. Albert does not disclose Patricia's identity to Zeke. Albert also does not disclose the fact that Albert is an agent for someone else. Zeke tenders the purchase price to Albert, but Patricia refuses to deliver the car as agreed. In this situation: a. Patricia is not bound to perform because Patricia's identity was not disclosed. b. Patricia is bound to perform. c. Patricia is not bound to perform because the agency relationship was not disclosed. d. Patricia is not bound to perform because Albert did not act within the scope of his authority.

b. Patricia is bound to perform.

Unit 1: The FBI has an open criminal investigation regarding potential terrorist activities in the U.S. The agency wants to gain access to personal information through Internet activities of certain individuals. Congress has passed which of the following acts that allows the FBI to access this kind of information? a. HIPAA b. The Patriot Act c. The Freedom of Information Act d. Privacy Act

b. The Patriot Act

Unit 3: Unobtainium Venture Capital (UVC), a new venture capital start-up, wants to create a place for employees to communicate and share files, but wants to minimize its potential risk to competitors by protecting its trade secrets that the shared data may contain. UVC should utilize: a. a public social media site. b. an internal social network. c. e-mail. d. standalone PCs.

b. an internal social network.

Unit 1: The city of Flagstaff passes legislation to make it illegal to carry an open container of alcohol on any city street at any time. This legislation is called: a. a uniform law. b. an ordinance. c. a citation. d. an administrative rule.

b. an ordinance.

Unit 2: Umberto contracts with Allison in Seattle to purchase 10,000 bags of marbles for shipment to Umberto's New York factory. If Umberto and Allison agree to a shipment contract, title passes to Umberto, the buyer: a. when the carrier reaches the midway point of transporting the goods. b. at the time and place of shipment. c. at the time and place of delivery. d. when Umberto, the buyer, is in possession of the goods.

b. at the time and place of shipment.

Unit 3: Jason instructs his agent Miguel to obtain a piece of artwork from Martina by threatening to beat her if she refuses to sell the artwork. Miguel follows Jason's instruction and beats Martina when she refuses to sell the item. In this situation: a. Martina cannot recover damages for her injuries in court because Miguel was acting as an agent. b. both Jason and Miguel are liable for Martina's injuries. c. Miguel alone is liable for Martina's injuries. d. Miguel can seek an indemnification against Jason.

b. both Jason and Miguel are liable for Martina's injuries.

Unit 4: Mary owns holds property in fee simple. Mary would like to lease the property to Jack, who wants to farm the land. Because Mary holds the property in fee simple, she: a. cannot buy or sell the land but only lease the land. b. can lease, sell, or give the land away as she wishes. c. cannot make any transfers without third-party consent because of the limitations of fee simple ownership. d. cannot lease the land but only buy or sell the land outright.

b. can lease, sell, or give the land away as she wishes.

Unit 3: Susan is concerned about online retailers collecting data about her Web-browsing activities, also known as: a. domain name. b. cookies. c. spam. d. meta tags

b. cookies.

Unit 3: Jorge downloads a movie onto his laptop without permission from the movie provider. Jorge has violated: a. cybersquatting law. b. copyright law. c. trademark law. d. trade distribution law.

b. copyright law.

Unit 1: UsAgainstThem, a nonprofit environmental group, is contesting the EPA's interpretation of a rule that has allowed a refinery to offset an increase in emissions relating to one part of the refinery by reducing emissions in another part of the refinery. In challenging the EPA's interpretation, a court will likely: a. dismiss the suit for lack of standing. b. defer to the agency's interpretation. c. refer the matter to an agency subcommittee. d. seek advice from Congress.

b. defer to the agency's interpretation.

Unit 4: Carissa writes a novel but does not register a copyright for the novel. Carissa e-mails a copy of the novel to her friend Kevin. Carissa: a. does not have a valid copyright because novels are not copyrightable. b. has a valid copyright on the novel even though she didn't register it. c. has a valid copyright on the novel after Kevin opens the e-mail. d. does not have a valid copyright because she did not register it.

b. has a valid copyright on the novel even though she didn't register it.

Unit 4: In 2014, Mugaba wrote her memoirs, My Life in the Congo. Mugaba did not register a copyright. Under federal copyright law, Mugaba's book: a. is protected for ten years. b. is protected for her life plus seventy years. c. is protected forever. d. is not protected at all.

b. is protected for her life plus seventy years.

Unit 1: If a plaintiff waited to bring a lawsuit for several years, and in those years witnesses died and evidence was lost or destroyed, one equitable defense that the defendant may have is called: a. ineffective evidence. b. laches. c. equitable maxim. d. ripeness.

b. laches.

Unit 2: Joey sells a clock from his store through an online auction website. He has never met the buyer, Rod, and had no communication with him before the sale agreement. When he sends the clock, he does not disclaim any warranties. The sale most likely automatically carries with it the implied warranty of: a. fitness for a particular purpose. b. merchantability. c. inspection. d. opinion.

b. merchantability.

Unit 3: Lily began a blog, and she relays rumors and gossip that she hears in her hometown. She should be concerned about: a. copyright infringement. b. online defamation. c. disclosing trade secrets. d. trademark infringement.

b. online defamation.

Unit 3: GoInternet, Inc., is an Internet-access service provider that is being forced to manage numerous unwanted e-mail messages from a sender of e-mail advertisements. GoInternet can sue the company that is e-mailing spam under the CAN-SPAM Act if the sender does any of the following except: a. conveys misleading or deceptive information when sending e-mail. b. sends messages involving products of companies previously sued under the CAN-SPAM Act. c. uses a false return e-mail address. d. engages in "dictionary attacks" to breach password-protected computers.

b. sends messages involving products of companies previously sued under the CAN-SPAM Act.

Unit 2: Xavier consults with an attorney and some business acquaintances from the chamber of commerce about the management of his LLC. He is told that management may take one of two forms, a member-managed LLC or a manager-managed LLC. In the second form: a. the managers must be certified public accountants (CPAs). b. the managers may be members, nonmembers, or a combination of both. c. members may not participate in management of the LLC. d. a state-appointed receiver manages the firm.

b. the managers may be members, nonmembers, or a combination of both.

Unit 3: Kurt is fifty-two years old and has worked for a company covered by the Age Discrimination in Employment Act (ADEA) of 1967. He wants to bring a claim of age discrimination against his employer because he was replaced by a younger, lower-paid worker. To make out a prima facie case of age discrimination, Kurt does not have to establish that he: a. was qualified for the job he lost. b. was replaced by someone who was below the age of forty. c. was discharged in a way that creates an inference of discrimination. d. is a member of the protected age group.

b. was replaced by someone who was below the age of forty.

Unit 4: The city of Dallas has a 300-acre tract of land. There are specific rules regarding how the land may be used and developed. This type of rulemaking is called: a. eminent domain. b. zoning. c. restrictive covenant. d. inverse condemnation.

b. zoning.

Unit 5: In preparation for a trial between George and the ABC Corporation, ABC's attorney places George under oath and asks George questions that are recorded by a court reporter. This is known as: a. request for admissions. b. voir dire. c. a deposition. d. an interrogatory.

c. a deposition.

Unit 1: The Equal Employment Opportunity Commission (EEOC) issues a statement describing how it will apply a section of the Americans with Disability Act. This statement is an example of a(n): a. illegal rule. b. agency rule. c. interpretive rule. d. legislative rule.

c. interpretive rule.

Unit 1: Congress passes a law prohibiting cigars made in Cuba from being sold in the United States. The Florida state legislature then passes a law allowing the sale of Cuban cigars in Florida. If the constitutionality of the Florida law is challenged in court, it will most likely be: a. upheld on the basis of the supremacy clause. b. upheld unless Congress expressly prohibits states from enacting laws regarding cigars. c. struck down on the basis of the supremacy clause. d. struck down on the basis of the due process clause.

c. struck down on the basis of the supremacy clause.

Unit 3: Takota Retail discovers that Barry, one of its employees, has disparaged the company's selling practices on Facebook. Takota Retail has a policy in place that expects employees to "avoid public comment that adversely affects the company." Takota Retail can: a. not terminate Barry because it would violate state privacy law. b. terminate Barry as long as it agrees to provide a severance package in advance of the discharge. c. terminate Barry based on his violation of the company's social media policy. d. not terminate Barry because it would violate Barry's First Amendment rights.

c. terminate Barry based on his violation of the company's social media policy.

Unit 3: Gavin runs an illegal gambling operation out of the back of a store that he owns. The store shows increasing profits because Gavin reports the profits of his gambling operation as legitimate store income on his tax returns. Gavin is engaged in: a. economic espionage. b. insider trading. c. burglary. d. money laundering.

d. money laundering.

Unit 5: Charles loses his breach-of-contract case against Micheletta in a Georgia state trial court. Charles appeals to the state court of appeals. Losing again, he files his next appeal with: a. the United States Supreme Court. b. a U.S. Circuit Court of Appeals. c. a U.S. district court. d. the Georgia Supreme Court.

d. the Georgia Supreme Court.

Unit 1: All of the cases which have been decided by U.S. judges, as well as by English judges prior to the American Revolution, constitute a body of law known as: a. the law of equity. b. the statutory law. c. the civil law. d. the common law.

d. the common law.

Unit 3: Ron reserves the domain name www.wamart.com before Wal-Mart does, which directs a user to a Web site which he has set up that sells retail goods online. Ron's action is known as: a. meta tagging. b. goodwill infringement. c. cybersquatting. d. typosquatting.

d. typosquatting.

Unit 3: Baylee is driving her friend Sarah to the movies. Baylee loses control of the car and crashes into a fence. The vehicle's airbags deploy, and both Sarah and Baylee are shaken up, but not physically injured. Sarah threatens to sue Baylee for negligence. Sarah's lawsuit is likely to be: a. successful, because Baylee was negligent. b. successful, because Baylee owed Sarah a duty of care. c. unsuccessful, because Sarah was also negligent. d. unsuccessful, because Sarah was not injured.

d. unsuccessful, because Sarah was not injured.

Unit 1: Margie runs a manufacturing process that generates a lot of heat. In order to reduce her heat problem, Margie takes water from the river adjacent to her factory and uses the cold river water to cool down the processes. She then puts the warmer water back in to the river where it is moderated by the cold water still in the river. Margie's actions: a. are not regulated by any environmental law or agency. b. are regulated by the Clean Water Act. c. do not generate any pollution. d. are not regulated by federal law but may be regulated by state law.

b. are regulated by the Clean Water Act.

Unit 4: Sam lives in a subdivision that has deed restrictions that prevent drilling for oil and gas. This type of limitation is known as: a. a lien. b. an encumbrance. c. an avoidance. d. a nuisance.

b. an encumbrance.

Unit 2: Karl buys a new Volkswagen and signs a contract with Volkswagen saying that he will never in the future sue the company for any personal injuries he may receive as a result of a faulty car. In exchange, Volkswagen reduces the price of the automobile by $6,500. This type of contract provision is: a. a revisionary clause. b. an exculpatory clause. c. a dormant commerce clause. d. a liquidated damages clause.

b. an exculpatory clause.

Unit 4: Without permission, Sally copies photographs from Isaiah's book Mount Everest: Top of the World and uses them in a new book. Sally's book is about photography not mountains. Sally's use of the photos is: a. an infringement of Isaiah's copyright only if consumers are confused. b. an infringement of Isaiah's copyright. c. protected if Sally and Isaiah are competitors. d. protected under the fair use doctrine.

b. an infringement of Isaiah's copyright.

Unit 1: The U.S. government decides to assess a tariff of $1.50 on every DVD player that is imported into the country. This policy: a. could lead to the imposition of quotas on Taiwanese products. b. is a legally permitted tariff. c. is an incentive for American manufacturers to export more electronic equipment. d. is barred by Article I, Section 9, of the U.S. Constitution.

b. is a legally permitted tariff.

Unit 5: Stan, a citizen of Iowa, files a lawsuit in an Iowa state trial court against Jalisco Farm Supply, a Texas company that sells supplies in Iowa. The court has original jurisdiction because: a. the court has concurrent jurisdiction. b. the case is being heard for the first time. c. the parties have diversity of citizenship. d. the court has venue.

b. the case is being heard for the first time.

Unit 2: The directors and officers of Sports Color, Inc., vote to refuse to declare a dividend. Believing that the refusal is unreasonable, the shareholders can: a. overrule the directors and vote to declare a dividend themselves. b. demand that a court declare a dividend. c. file an action to require the directors to declare a dividend. d. return treasury shares in exchange for a dividend.

c. file an action to require the directors to declare a dividend.

Unit 2: Charlotte and Regina are opening a new business venture to sell gourmet cupcakes. One of the important characteristics in starting a limited liability company is: a. the number of shareholders. b. the amount of start-up capital required. c. limited liability for members. d. choosing the name.

c. limited liability for members.

Unit 2: Luis contracts with Greenfield to buy several of Greenfield's dairy cows. Greenfield delivers the cows but Luis doesn't pay for them. Greenfield may be able to have his cows returned if he seeks the remedy of: a. novation. b. specific performance. c. restitution. d. reformation.

c. restitution.

Unit 2: Tough TVs, a corporation, makes a profit in its first year of existence. The managers of the corporation decide to reinvest the profits. The reinvested profits are called: a. shareholder profits. b. dividends. c. retained earnings. d. public earnings.

c. retained earnings.

Unit 3: Cory opens a small jewelry store but has difficulty competing with Bling Jewels, a much larger firm. In his newspaper ad, Cory includes the false statement, "Bling Jewels sells stolen diamonds." Bling experiences an immediate decrease in sales. Cory has most likely committed the tort of: a. slander of quality. b. wrongful interference with a contractual relationship. c. slander of title. d. malice.

c. slander of title.

Unit 3: Ernest signs a listing agreement with Lisa to sell his house. Before Lisa finds a buyer, the house is destroyed by flooding. In this case, the agency agreement between Ernest and Lisa: a. continues in full force and effect. b. terminates based on changed circumstances. c. terminates based on impossibility. d. terminates based on war.

c. terminates based on impossibility.

Unit 2: Matt and Chad form an LLC, and Matt later decides to withdraw as a member. They do not have a provision in their operating agreement regarding withdrawal of a member but they do live in a state that has adopted the ULLCA, which means that: a. Matt must find a new member to purchase his interest at a fair value. b. the LLC must dissolve within 120 days. c. the LLC must purchase Matt's interest at fair value within 120 days. d. Matt will lose all of his interest in the LLC.

c. the LLC must purchase Matt's interest at fair value within 120 days.

Unit 2: Tyler and Stanton are members of an LLC. They have no operating agreement. Tyler and Stanton have a dispute. They look to the LLC statute for an answer, but the statute does not cover this situation. In this case, courts often: a. force the members to solve the dispute themselves. b. order the LLC to dissolve. c. apply state corporate law. d. apply state partnership law.

d. apply state partnership law.

Unit 3: Sean is researching federal law to determine if there are civil or criminal penalties associated with the circumvention of the encryption software on a DVD. He should find the: a. Digital Millennium Copyright Act. b. Digital Anti-Piracy Act. c. Digital Copyright Act. d. Digital Anti-Circumvention Act.

a. Digital Millennium Copyright Act.

Unit 1: The state of Michigan was in an economic crisis. The governor and legislature asked Congress to exempt Michigan's citizens from their federal tax burden for two years. Does Congress have the authority to make the exemption? a. No, the taxing and spending clause requires that taxes be imposed uniformly throughout the United States. b. No, the commerce clause does not allow different rules for different states. c. Yes, Congress has taxing and spending power to use as it wishes. d. Yes, the privileges and immunities clause allows Congress to grant privileges to certain states.

a. No, the taxing and spending clause requires that taxes be imposed uniformly throughout the United States.

Unit 1: Congress passed the Securities Exchange Act of 1934, which created the Securities Exchange Commission. This legislation, which created an independent regulatory agency, is known as: a. enabling legislation. b. a Congressional act. c. administrative law. d. common law.

a. enabling legislation.

Unit 2: Tammi purchases stock in Vivaldi Corporation. Vivaldi Corporation later encounters legal issues and faces significant legal claims. As a shareholder, Tammi's liability is: a. limited to her investment in the stock. b. unlimited. c. limited to a maximum of $50,000. d. just like that of partners.

a. limited to her investment in the stock.

Unit 1: A city ordinance allows only two hot-dog stands to operate in the city's downtown area. If someone who would like to add another hot-dog stand challenges this ordinance under the equal protection clause, the rule will be subject to: a. the rational basis test. b. intermediate scrutiny. c. strict scrutiny. d. the police power test.

a. the rational basis test.

Unit 2: Amjed sues Larry, a landowner on whose property Amjed was injured. Larry believes that Craig is a lawyer and hires Craig to defend him in the lawsuit. Craig is not a lawyer, so the contract between Larry and Craig: a. will not be enforced. b. will be enforced unless Craig loses the case. c. will be enforced despite Craig's winning or losing. d. will be enforced only if Craig wins.

a. will not be enforced.

Unit 5: Marshall is working on a contract with a U.S. company involving the manufacturing of goods in China, and wants to ensure that U.S. law applies in the event of a dispute. He should include which of the following clauses in the contract? a. Arbitration clause. b. Choice of law clause. c. Forum selection clause. d. International treaty clause.

b. Choice of law clause.

Unit 1: If The Moon, a U.S. company, wants to start a business taking tourists to the moon, the federal agency that is responsible for developing the rules and regulations about private, commercial space flight is the: a. United Nations Committee on the Peaceful Uses of Outer Space (COPUS). b. Federal Aviation Administration (FAA). c. Intergovernmental Private Space Flight Agency (IPSFA) d. National Aeronautics and Space Administration (NASA).

b. Federal Aviation Administration (FAA).

Unit 2: Nicole has a contract to buy 14 cases of hammers from Tyler. Tyler breaches the contract. Even though she can get similar hammers somewhere else, Nicole wants to sell his hammers because she secretly likes his logo and thinks it will draw customers in to her store. If she sues for specific performance, will she win? a. Yes, because she likes his logo and cannot get that logo somewhere else. b. No, because she can get similar hammers elsewhere. c. Yes, because he breached the contract and so can be made to deliver the hammers. d. No, because Tyler does not want to give her the hammers.

b. No, because she can get similar hammers elsewhere.

Unit 3: Byron works at Stich-Rite Clothing Factory. The company is required to maintain safe working conditions under the: a. Hazardous Workplace Act. b. Occupational Safety and Health Act. c. Safety and Health Organization Act. d. Occupational Health Act.

b. Occupational Safety and Health Act.

Unit 4: John invents a new type of automobile-tracking system on January 1 and files a patent application for it on June 30. On March 10, Susan invents a very similar system and files a patent application on March 15. Under the America Invents Act, who holds the valid patent? a. John because the most recent application is the most valid. b. Susan because she filed a patent application first. c. Susan because she filed a patent application within ten days of inventing the system. d. John because he was the first to invent the system.

b. Susan because she filed a patent application first.

Unit 2: Elliot is suing Acme, Inc., for a breach of contract, but because Acme has very little in assets, he asks the court to pierce the corporate veil and hold the officers personally liable. In which of the following situations would the court likely approve Elliot's request? a. The corporation has struggled to make a profit from the beginning. A corporation that is too thinly capitalized could be grounds for piercing the corporate veil. b. The corporation was undercapitalized from the beginning and never had sufficient assets to operate as a viable business. c. The officers loaned money to the corporation in an attempt to delay any adverse actions. A corporation that is too thinly capitalized could be grounds for piercing the corporate veil. d. The officers make their decisions based on information presented to them, but they have been unaware that the information is incorrect. A corporation that is too thinly capitalized could be grounds for piercing the corporate veil.

b. The corporation was undercapitalized from the beginning and never had sufficient assets to operate as a viable business.

Unit 3: Julian sends false and deceptive e-mails from a computer in France to recipients in the United States. The U.S. Government officials can cooperate and share information with foreign governments under the: a. Stored Communications Act. b. U.S. Safe Web Act. c. CAN-SPAM Act. d. Commercial E-mail Distribution Protection Act.

b. U.S. Safe Web Act.

Unit 1: Tiger Stripe owns and operates gasoline filling stations. Patrick's Trucking delivers fuel to Tiger Stripe's storage facility on a regular basis. On one occasion, Patrick fails to pay proper attention to his truck when he is unloading fuel into Tiger Stripe storage tanks, and one thousand gallons of fuel spills onto the ground. Soon after the spill, Tiger Stripe sells the storage facility to Roy's Fueling Stations. The EPA determines that cleanup of the site is warranted. Which of the following is true? a. Under FIFRA, Tiger Stripe, Patrick, and Roy's are all potentially responsible parties. b. Under CERCLA, Tiger Stripe, Patrick, and Roy's are all potentially responsible parties. c. Under CERCLA, Tiger Stripe and Patrick are potentially responsible parties. d. Under FIFRA, Tiger Stripe and Patrick are potentially responsible parties.

b. Under CERCLA, Tiger Stripe, Patrick, and Roy's are all potentially responsible parties.

Unit 3: Starla was killed when her car struck a horse that was roaming on the highway with several other horses. The Sea Horse Ranch owned the horses, which were property of the corporation that owned the ranch. The horses frequently escaped through poorly maintained fences surrounding the ranch. Shipley, the ranch's owner and president of the corporation, had been cited by the police and the humane society for allowing his horses to run free on the highway. The state sought to prosecute both the Sea Horse Ranch and Shipley for involuntary manslaughter. Can the Sea Horse Ranch corporation be held liable for the crime? a. No, because a corporation cannot be held liable for the wrongful actions of its officers. b. Yes, because a corporation can be held liable for the criminal actions of its officers. c. Yes, because a horse is a dangerous animal. d. No, because a corporation cannot be held liable for involuntary manslaughter.

b. Yes, because a corporation can be held liable for the criminal actions of its officers.

Unit 4: Marcus and Remy are owners of a condominium complex in a joint tenancy. Remy wants to leave the joint tenancy and sell his property rights to Yolanda. When Remy sells his property rights to Yolanda: a. Yolanda's ownership becomes a joint tenancy with Marcus. b. Yolanda's ownership becomes a tenancy in common with Marcus. c. the joint tenancy terminates, and both Yolanda and Marcus must wind up and sell their assets. d. Remy must obtain consent from Marcus before doing so.

b. Yolanda's ownership becomes a tenancy in common with Marcus.

Unit 1: William wants to obtain information from the Securities and Exchange Commission (SEC) regarding the number of active cases related to insider trading. To request this information, he would need to file which of the following with the SEC: a. a Sunshine Act request. b. a Freedom of Information Act request. c. a Regulatory Flexibility Act request. d. an SEC disclosure request.

b. a Freedom of Information Act request.

Unit 2: Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend the money on the bracelet, she: a. can return the bracelet, but she will only get 50 percent of what she paid for it. b. can return the bracelet and get her money back. c. cannot return the bracelet, because she has kept it too long. d. can disaffirm this contract only if she has turned eighteen.

b. can return the bracelet and get her money back.

Unit 3: Kris represents Josh in the sale of his house as his real estate agent. Kris is entitled to: a. loyalty. b. compensation. c. daily updates. d. confidentiality.

b. compensation.

Unit 2: Tim is considering forming a business and wants to ensure he avoids double taxation. In order to best meet his objective, he should avoid forming a: a. sole proprietorship. b. corporation. c. general partnership. d. limited liability company.

b. corporation.

Unit 1: Sarah prevails in her lawsuit against Carl for injuries she sustained in a car accident. As a result, Sarah is entitled to a remedy. In the U.S. legal system, Sarah's remedy will most likely be in the form of: a. rescission. b. damages. c. specific performance. d. injunction.

b. damages.

Unit 4: Cason thinks of a new concept for a palm-sized computer notebook. He also thinks of a new, faster process for producing the notebooks. Federal copyright law protects: a. Cason's process. b. neither Cason's concept nor his process. c. Cason's concept and process. d. Cason's concept.

b. neither Cason's concept nor his process.

Unit 1: The Food and Drug Administration (FDA) is an example of an executive agency. If Fred Smith is an officer in the FDA and he fails to perform his duties properly, the power to remove him lies with: a. the vice president of the United States. b. the president of the United States. c. the speaker of the U.S. House of Representatives. d. the Congressional representative from his home district.

b. the president of the United States.

Unit 5: Marco files a lawsuit against Allied Company in an Oregon court with limited jurisdiction. The difference between general and limited jurisdiction is based on: a. whether the court is exercising in personam or in rem jurisdiction. b. the subject matter of the cases that the court can decide. c. how many defendants are named in the lawsuit. d. whether a case is brought by an individual or a business.

b. the subject matter of the cases that the court can decide.

Unit 1: Congress passes legislation that requires all people to have health insurance or pay fines to the government. The president analyzes the legislation and signs it. Several different individuals challenge the law as unconstitutional and the United States Supreme Court agrees to hear the case. After the hearing, the justices declare that the law is constitutional. This is an example of: a. the federal form of government. b. the system of checks and balances. c. preemption. d. the supremacy clause.

b. the system of checks and balances.

Unit 3: Michael, a teacher, posts derogatory comments about his fellow teachers and students on his Facebook page and is subsequently terminated. His posts likely: a. will be construed as harmless fun, and his termination will be overturned. b. violated school policy, and his termination will be upheld. c. are a violation of the social media labor laws, and his termination will be upheld. d. are protected by the First Amendment, and his termination will be overturned.

b. violated school policy, and his termination will be upheld.

Unit 2: James contracts with Zeke to purchase 1,000 cotton tents from a lot that contains 10,000 tents made of cotton, nylon, felt and polyester. If identification is not specifically mentioned in the contract, these tents are identified: a. when Zeke and James sign the contract. b. when Zeke marks, ships, or somehow designates them as the goods in the contract. c. when the tents are received by James. d. 30 days after the tents are received by James.

b. when Zeke marks, ships, or somehow designates them as the goods in the contract.

Unit 2: Sayed and Ann form a contract under which Sayed agrees to sell Ann 500 copies of a book. The contract price is $3.50 per book. Sayed breaches the contract by not delivering the books to Ann by the deadline. At the time of the breach, the books are available from the publisher for $4.50 each. Ann's damages are: a. $1,650. b. $750. c. $500. d. $1,275.

c. $500.

Unit 3: Jonas is arrested for the criminal offense of attacking and injuring a neighbor in the neighbor's front yard. After the arrest, he is concerned about potential civil liability. Which of the following should he be concerned about in regards to both criminal and civil liability in this case? a. Trespass to chattel b. False imprisonment c. Assault and battery d. Conversion

c. Assault and battery

Unit 3: Orson takes Harrison's car without Harrison's permission and without just cause. Orson has probably committed the tort of conversion unless he can show that: a. he mistakenly believed he owned the car. b. the car was worth less than $500. c. Harrison does not really own the car. d. he returned the car undamaged within 24 hours.

c. Harrison does not really own the car.

Unit 1: The state of Nevada passes legislation that bans speakers from hallways in academic buildings on university campuses in order to preserve the quiet that students need to study effectively and to ensure that pedestrian traffic is not blocked. Luis challenges the law as a violation of his rights to free speech. Will Luis win his suit? a. Yes, because the right to free speech is absolute. b. No, because the right to free speech is part of the Bill of Rights which applies only to the federal government. c. No, because the right to free speech allows for a reasonable regulation of time, place, and manner so long as the regulation is content neutral. d. Yes, because the right to free speech applies to both the federal government and to the states under the due process clause of the Fourteenth Amendment.

c. No, because the right to free speech allows for a reasonable regulation of time, place, and manner so long as the regulation is content neutral.

Unit 4: The city of Orlando has offered to purchase Neil's land to be used for the expansion of a thoroughfare through the city. Neil has rejected the city's offer so the city will now proceed with a judicial action to take Neil's land, known as: a. taking. b. economic development. c. condemnation. d. inverse condemnation.

c. condemnation.

Unit 1: John operates a profitable business selling child pornography. His enterprise is likely to be: a. protected by the First Amendment. b. protected under the right to privacy. c. considered criminal. d. considered political speech

c. considered criminal.

Unit 3: Doug obtains permission to be on Nathan's land for one day to hold a four-wheeling event. Doug's truck breaks down, and instead of removing it, he leaves it on Nathan's property for several days after the event. Doug has most likely committed: a. no tort. b. trespass to personal property. c. trespass to land. d. trespass, but he has a complete defense.

c. trespass to land.

Unit 3: Abigail takes Julie's laptop without her permission, and when she returns it a week later, it is obvious it has been damaged. Abigail has probably committed the tort of: a. trespass to land. b. disparagement of property. c. trespass to personal property. d. slander of title.

c. trespass to personal property.

Unit 2: William, Irene, Jason, Barbara, and Immunographics, Inc., form a partnership for the purposes of developing designs for medical products. This partnership is: a. valid because partnerships generally require at least one corporation as a partner. b. invalid because a partnership cannot have more than three members. c. valid because corporations can be a partner in a partnership. d. invalid because corporations cannot be a partner in a partnership.

c. valid because corporations can be a partner in a partnership.

Unit 3: Grocer's Choice is the largest employer in the Pacific Northwest. It is covered by numerous federal employment laws. As such, it is required by the Family and Medical Leave Act of 1993 (FMLA) to provide employees with up to: a. 5 weeks of unpaid family or medical leave during any 12-month period. b. 10 weeks of unpaid family or medical leave during any 12-month period. c. 24 weeks of unpaid family or medical leave during any 12-month period. d. 12 weeks of unpaid family or medical leave during any 12-month period.

d. 12 weeks of unpaid family or medical leave during any 12-month period.

Unit 2: Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the dog's ancestry, but Alyssa believes that the dog came from champion lines and agrees to the price. Alyssa later discovers that the puppy is worth only $200. Can Alyssa rescind the contract based on her mistake? a. Yes, because the dog was clearly not worth $800. b. Probably so, because Alyssa made a mistake about a material fact. c. Yes, because Alyssa had a duty to investigate, which she failed to perform. d. Probably not, because Alyssa made a mistake about the dog's value, not a mistake about a material fact.

d. Probably not, because Alyssa made a mistake about the dog's value, not a mistake about a material fact.

Unit 2: Doug, Frank, and Sarah want to form an entity for their new accounting firm. They want to ensure that each avoids personal liability for the malpractice of the other partners so they should form: a. a general partnership. b. a joint venture. c. a limited partnership. d. a limited liability partnership.

d. a limited liability partnership.

Unit 4: Hideki owns land with a huge number of trees on it. In order to protect the land, Hideki would like to remove some of the trees, or "thin" the property. Hideki gives permission to remove all but 250 trees to Ekaterina, who runs a business carving wood art in the next town. Ekaterina likely has: a. a license. b. an easement in gross. c. an easement appurtenant. d. a profit.

d. a profit.

Unit 1: The National Conference of Commissioners on Uniform State Laws (NCCUSL) passes a new uniform act related to texting while driving. This uniform act: a. becomes the law in every state that has joined the NCCUSL. b. automatically becomes the law in every state. c. becomes a part of the United States Code, and is therefore the law of the land in every state and territory of the United States. d. becomes the law in every state that adopts the uniform act through legislative action.

d. becomes the law in every state that adopts the uniform act through legislative action.

Unit 3: Arthur is arrested for the crime of murder. Arthur denies that he committed the crime and is planning a vigorous defense. The state will be required to show evidence to prove its case: a. with clear and convincing evidence. b. by preponderance of the evidence. c. by completely rebutting all evidence raised by the defendant. d. beyond a reasonable doubt.

d. beyond a reasonable doubt.

Unit 2: Bart orders 20,000 Class A widgets from Salvatore. Salvatore promptly ships to Bart 20,000 Class B widgets instead. Under the Uniform Commercial Code (UCC), Salvatore has: a. not accepted the contract. b. accepted the contract and not breached the contract. c. made a counteroffer to Bart's offer. d. both accepted and breached the contract.

d. both accepted and breached the contract.

Unit 2: Katrina and Shannon form a general partnership to operate a gourmet kitchen business. In most states, if they do not specify their respective management rights then: a. one partner manages the business and the other provides the capital. b. the partner who invested more capital has a greater voice in management. c. one partner has superior management rights. d. both partners have equal management rights.

d. both partners have equal management rights.

Unit 1: Windell Manufacturing has a pipe foundry as well as a fleet of trucks that are used to transport the manufactured pipe to customers across the United States. The EPA has the authority to regulate air pollution arising from: a. the factory but not the truck fleet. b. the truck fleet but not the factory. c. neither the truck fleet nor the factory. d. both the factory and the truck fleet.

d. both the factory and the truck fleet.

Unit 3: Ted is running down the sidewalk at a high rate of speed and bumps into Robin, knocking her down. She jumps back up and continues on. In a negligence action, all of the following elements would be met except: a. breach. b. duty. c. causation. d. damages.

d. damages.

Unit 5: Mason brought a civil rights action against his employer, the New York Department of Mental Hygiene, after it failed to promote him. His complaint stated that the department had discriminated against him by denying him "the authority, salary, and privileges commensurate with this position." The department filed a motion to dismiss for failure to state a claim for which relief could be granted. The court probably: a. dismissed the case because it lacked venue. b. refused to dismiss the case because Mason had standing to sue. c. refused to dismiss the case because the complaint did state a claim. d. dismissed the case because the complaint did not state a claim.

d. dismissed the case because the complaint did not state a claim.

Unit 5: Transpac Corp. and Alliance, Inc., agree to a contract that includes an arbitration clause. After a dispute arises, the case goes to arbitration. The arbitrator finds in Transpac's favor. Alliance files a lawsuit, alleging that the award should not be enforced because the arbitrator made an error in her findings of fact. The court will likely: a. review the sufficiency of the award. b. review the merits of the dispute. c. set aside the arbitrator's award. d. do nothing.

d. do nothing.

Unit 3: Justin is the accountant for a trucking company. A driver, Andrew, holds a gun to Justin's head and forces him to steal from the company. Justin falsifies records, obtains cash, and gives it to Andrew. If criminal charges are brought against Justin, he can assert the defense of: a. mistake of law. b. justifiable use of force. c. entrapment. d. duress.

d. duress.

Unit 3: Morris owns a bicycle store. He often leaves Daniel in charge of the store. One Saturday evening, after Daniel leaves the store, Morris discovers that he is missing $900 from the register. If Daniel took the cash, he could be found guilty of the crime of: a. conversion. b. misappropriation. c. robbery. d. embezzlement.

d. embezzlement.

Unit 1: Theo is injured at work and files a workers' compensation claim, which is administered by the workers' compensation agency in his state. His employer disputes the extent of Theo's injuries. The case is heard by an administrative law judge ("ALJ"), who decides the case in the employer's favor. Theo's attorney tells him that the ALJ's decision cannot be appealed to a court because: a. he does not have standing to appeal an administrative decision; only the employer could do that. b. there is not an actual controversy that qualifies for judicial proceedings. c. the decision of the ALJ is final in all administrative challenges. d. he must first appeal the case to the workers' compensation board that heads the state agency.

d. he must first appeal the case to the workers' compensation board that heads the state agency.

Unit 5: Tina decides to take her claim against her Internet service provider to FairDeal.com, a private, online dispute resolution provider. This limits her access to the court system: a. not at all. b. for a period of sixty days. c. entirely, as to this and all other claims against her Internet service provider. d. only as to this claim.

a. not at all.

Unit 1: Most appellate court judges write opinions in which they give the reasons for their decisions. These opinions are collected and published in volumes of books known as: a. reporters. b. law journals. c. case citations. d. the United States Code.

a. reporters.

Unit 1: Elaine is involved in a car accident in which the other driver ran a red light. To determine whether she has a case, her attorney would apply which of the following classifications of law? a. Substantive law b. Administrative law c. Cyberlaw d. Procedural law

a. Substantive law

Unit 1: Bernard is the owner and manager of a small auto-parts store. He thinks that talking about business ethics with employees takes time that would be better spent paying attention to customers. He also does not believe that he has a right to tell other people how they should behave. Is Bernard likely to create an ethical workplace with this way of thinking? Why or why not? a. Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics. b. Bernard's attitude will have no particular effect on workplace ethics, because ethics is strictly a private matter best left to individual employees. c. Bernard's attitude will have no particular effect on workplace ethics, because management has no ability to affect employee behavior. d. Bernard is unlikely to create an ethical workplace and so is likely to get into legal trouble, because business laws require him to compel his employees to follow an ethical code.

a. Bernard is unlikely to create an ethical workplace, because the attitude of top management influences employee ethics.

Unit 3: Bob, a guest at a hotel, reached into the front seat of the hotel limousine to get his briefcase. He supported himself by placing his left hand on the center pillar to which the rear door was hinged. A hotel employee closed the rear door, smashing Bob's hand. A part of Bob's left index finger later had to be amputated. Bob filed a negligence lawsuit against the hotel in a state that adopted a "pure" form of comparative negligence. In this case, the court most likely would find that: a. Bob contributed to his injury and apportion his damages. b. Bob did not contribute to his injury and award him full damages. c. Bob contributed to his injury and award him nothing in damages. d. Bob did not contribute to his injury and apportion his damages.

a. Bob contributed to his injury and apportion his damages.

Unit 3: Comcast, an Internet service provider, provides internet service to Louis, who posts false and harmful statements about Madeline. Madeline will be able to win a lawsuit against: a. Louis, but not Comcast, for defamation. b. both Louis and Comcast for defamation. c. neither Louis nor Comcast for defamation. d. Comcast, but not Louis, for defamation.

a. Louis, but not Comcast, for defamation.

Unit 1: Gamma corporation, an American company, signs a contract with Theta corporation, a company from another nation, where Theta will provide Gamma with certain raw materials. Because of the economy in its nation, there are many more people looking for jobs than there are jobs available. Theta hires employees at extremely low wages and does not maintain facilities up to American standards. Newspapers accuse Gamma of engaging in unethical behavior. Is Gamma's behavior ethical? a. No, because Gamma has an ethical obligation to make sure that people who work for the company, either directly or indirectly, are being treated fairly. b. Yes, because Gamma cannot be expected to investigate and oversee all of its suppliers and Gamma is not doing anything wrong. c. Yes, because it is good business to maximize profits and those foreign citizens are better off with a job than without one. d. No, because Gamma has a legal and ethical duty to make sure that foreign suppliers maintain working conditions that meet or exceed American standards.

a. No, because Gamma has an ethical obligation to make sure that people who work for the company, either directly or indirectly, are being treated fairly.

Unit 3: Maria works for MegaCorp, a large privately owned company specializing in sales of ball bearings. MegaCorp introduces filtering software to block access to certain non-work related Web sites, as well as sites containing sexually explicit images. Would Maria be successful if she legally challenged the new policy? a. No, because private employers generally are free to use filtering software to block access to certain Web sites. b. No, because the Employee Polygraph Protection Act permits employees to refuse to tell employers about their Internet use at work. c. Yes, because the Electronic Communications Privacy Act prohibits employers from intercepting electronic work communications. d. Yes, because Maria's Internet use is protected by the First Amendment.

a. No, because private employers generally are free to use filtering software to block access to certain Web sites.

Unit 1: Electronic Imports, a U.S. company, enters into a contract with E Manufacturing, a company based in China. The companies signed an agreement with an arbitration provision, stating that in the event of any disputes the matter will be arbitrated in the United States. An issue arises that causes E Manufacturing to breach its agreement with Electronic Imports, and E Manufacturing files suit in a court in China. Electronic Imports would rely on which of the following to enforce its arbitration provision in the agreement? a. The New York Convention. b. Section 1 of the Sherman Act. c. The Alien Tort Claims Act. d. The North American Free Trade Agreement (NAFTA).

a. The New York Convention.

Unit 1: To ensure that American farmers can make enough money to support their families, and to ensure that the American economy is stable, Congress passes a law that states that no more than 3 billion pounds of raw sugar may be brought into the United States in any given year. This is: a. a constitutional import quota. b. an unconstitutional import quota. c. an unconstitutional export tariff. d. an unconstitutional import tariff.

a. a constitutional import quota.

Unit 1: The Securities and Exchange Commission (SEC) charges the Able Baker Co. (ABC) with violating an administrative rule regarding the sale of securities. ABC did not realize that in its search for capital it became subject to securities regulations. ABC may attempt to settle the case rather than proceed to litigation because: a. a settlement is less costly than litigation. b. it does not want to cooperate with the SEC. c. a settlement will be more costly for the agency. d. a settlement can be more complex than litigation.

a. a settlement is less costly than litigation.

Unit 3: Dara gives her agent, Marla, money to purchase a new commercial oven. Marla takes the money and deposits it into her personal checking account. Marla then accidentally spends some of Dara's money. Marla has violated her duty of: a. accounting. b. cooperation. c. payment. d. loyalty.

a. accounting.

Unit 1: Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of: a. administrative law. b. constitutional law. c. a Restatement of the Law. d. statutory law.

a. administrative law.

Unit 1: BP violated the Clean Air Act by discharging pollutants from one of its refineries and was unable to reach a settlement with the EPA regarding a violation of the law. The EPA plans to go forward with a trial on this matter, which will be heard by: a. an administrative law judge (ALJ). b. a county court judge. c. the United States Supreme Court. d. an appellate court judge.

a. an administrative law judge (ALJ).

Unit 1: Joseph is appointed to serve as an officer for a federal agency. He is appointed by the president of the United States and confirmed by the U.S. Senate. He is to serve for a six-year, fixed term and cannot be removed without cause, even if there is a change in the president. Joseph is most likely serving in: a. an independent agency. b. a cabinet post. c. a Congressional committee. d. an executive agency.

a. an independent agency.

Unit 2: Jason, Julian, and Rebecca are members of a longstanding and successful LLC. The three members want to dissolve their LLC and distribute their assets but they know the LLC has debts. Once all the LLC's assets have been sold, the proceeds: a. are distributed to pay off creditors first and member capital contributions next. Any remaining amounts are then distributed to members in equal shares or according to the operating agreement. b. are distributed equally to the members, and then creditors are paid with the remaining assets. c. are distributed to pay off member capital contributions first and creditors next. Any remaining amounts are distributed to members in equal shares or according to the operating agreement. d. are equally shared among the members without regard to other liabilities.

a. are distributed to pay off creditors first and member capital contributions next. Any remaining amounts are then distributed to members in equal shares or according to the operating agreement.

Unit 3: Min applies for a job as a receptionist at an accounting firm. If she is denied a job because she is of Asian origin, she may be a victim of: a. disparate-treatment discrimination. b. primary-treatment discrimination. c. direct-treatment discrimination. d. disparate-impact discrimination.

a. disparate-treatment discrimination.

Unit 1: Habib is an Arab prisoner being held in a U.S. prison. Another prisoner, Aham, attacks and seriously injures Habib. Habib's family in Saudi Arabia wants to file a lawsuit in a U.S. court against the American company that operates the prison, for negligently allowing Habib to be injured. If Habib's family wishes to file a lawsuit alleging a violation of a U.S. treaty, they may: a. be able to bring a lawsuit under the Alien Tort Claims Act (ATCA). b. not be able to bring a lawsuit because foreign citizens are exempt from the jurisdiction of U.S. courts. c. not be able to bring a lawsuit because Saudi Arabia does not have a common law legal system. d. be able to bring a lawsuit under the laws of sharia.

a. be able to bring a lawsuit under the Alien Tort Claims Act (ATCA).

Unit 3: Charlie tells Jamal that Marisol has agreed to allow him to sell her racing bicycle. Marisol is present at the time, hears the conversation, and says nothing. Jamal agrees with Charlie to buy Marisol's bike. Marisol then refuses to sell the bicycle. Marisol claims that she is not bound by the agreement formed by Charlie and Jamal because Charlie is not her agent. Marisol likely is: a. bound by the contract, under a theory of agency by estoppel. b. not bound by the contract because of a rescission. c. not bound by the contract because she did not have an agency agreement with Charlie. d. bound by the contract, under a theory of agency by operation of law.

a. bound by the contract, under a theory of agency by estoppel.

Unit 2: An inmate escapes from the county prison. There is a $500 reward offered for any information leading to the capture of the inmate. The county sheriff sees the inmate at a local restaurant and calls the department headquarters before arresting the inmate. The sheriff: a. cannot expect to collect the $500 because he had a preexisting duty to arrest the inmate. b. cannot expect to collect the $500 because of the doctrine of unforeseen difficulties. c. can expect to collect the $500 because he called the department headquarters before arresting the inmate. d. can expect to collect the $500 because he performed a civil service.

a. cannot expect to collect the $500 because he had a preexisting duty to arrest the inmate.

Unit 3: Glenn gives Senator Smith $100,000 so that Senator Smith will make sure the federal government buys all its paper clips from Glenn's company. Glenn has: a. committed the crime of bribery. b. engaged in money laundering. c. committed the crime of fraud. d. done nothing illegal; this is how interest groups operate to support elected officials.

a. committed the crime of bribery.

Unit 1: The city of Trenton, New Jersey, passed an ordinance making it unlawful to use any form of sound amplification on the city streets. Keller mounted a speaker on a truck. Through the speaker, he played music and spoke on a microphone while driving on city streets. Keller was convicted and fined $50. He appealed, arguing that the ordinance violated his rights of free speech and free assembly. The city claimed that the ordinance served a legitimate governmental function in keeping the city streets safe and orderly, and did not prohibit or unduly restrict any particular speech. The court probably found that the ordinance was: a. constitutional as a reasonable restriction on fundamental rights. b. unconstitutional as an unreasonable restriction on fundamental rights. c. unconstitutional under the equal protection clause. d. constitutional under the establishment clause.

a. constitutional as a reasonable restriction on fundamental rights.

Unit 2: Harvey buys a used Jet Ski from Taylor's Sports Store. Harvey takes the Jet Ski to the river and discovers that it doesn't work. He immediately notifies the seller of the problem. Taylor's can: a. cure the defect. b. cover. c. give Harvey an assurance in writing that the Jet Ski was working when he sold it. d. reclaim the Jet Ski.

a. cure the defect.

Unit 5: A Florida law provides that any person who "knowingly serves" a person "habitually addicted" to alcohol may be liable for an injury caused by the intoxication of that person. Hoag was driving while intoxicated when his car struck Sabo's car. Sabo suffered injuries as a result. Before the accident, Hoag had consumed several drinks at Peoples Restaurant. Sabo sued Peoples Restaurant, alleging that the restaurant violated the statute. Peoples filed a motion for summary judgment, asking the court to grant a judgment in its favor without a trial because it had no knowledge of Hoag's drinking habits. The court most likely: a. denied the motion for summary judgment because there were questions of fact about the restaurant's knowledge of Hoag's drinking habits that had to be determined by a trial. b. granted the motion for summary judgment unless Sabo produced evidence of Hoag's drinking habits. c. granted the motion for summary judgment because there were no questions of fact about Hoag's drinking habits. d. denied the motion for summary judgment unless Peoples produced evidence of Hoag's drinking habits.

a. denied the motion for summary judgment because there were questions of fact about the restaurant's knowledge of Hoag's drinking habits that had to be determined by a trial.

Unit 2: Kacey purchases custom windows from Custom Windows, Inc., and wants to ensure that the goods are shipped by common carrier and that title does not pass until the windows are tendered to her address. The contract should specify that it is a: a. destination contract. b. carrier contract. c. warehouse contract. d. shipment contract.

a. destination contract.

Unit 5: Anna sues Whitney. While presenting her case, Anna's attorney calls Whitney's doctor to the witness stand. The questioning of this witness at this point in the trial is known as: a. direct examination. b. cross-examination. c. interrogation. d. a request for admissions.

a. direct examination.

Unit 1: Duane and Elizabeth start a business manufacturing pencil and pen holders out of recycled materials. They draft a mission statement where they declare that they are committed to environmentalism and to using their profits to improve the quality of life of the homeless. The declaration of beliefs in a mission statement is most often associated with: a. duty-based ethics. b. cost-benefit analyses. c. outcome-based ethics. d. utilitarian ethics.

a. duty-based ethics.

Unit 3: Undercover agents of the Greenville Police invite Mack to purchase a stolen truck. Mack refuses initially, but the agents repeatedly visit Mack's home and businesses over a period of weeks, and eventually Mack agrees. In addition, they send someone to damage Mack's current vehicle so his need for the truck is greatly increased. If criminal charges are brought against Mack, he can assert the defense of: a. entrapment. b. mistake of law. c. duress. d. immunity.

a. entrapment.

Unit 2: Vicky contracts with Cyrus to have him remodel her kitchen. Vicky, however, changes her mind and breaches the contract before Cyrus can begin work. As a remedy for the breach, Cyrus can seek: a. expected profits from the contract. b. the contract price plus interest. c. the entire contract price. d. nothing, because the breach occurred before he began performance.

a. expected profits from the contract.

Unit 1: McMann Solutions, Inc., knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river. McMann Solutions is subject to: a. fines and imprisonment of the corporate officers. b. neither a fine nor imprisonment. c. fines but no criminal charges or imprisonment because a corporation cannot be imprisoned. d. only imprisonment of the corporate officers for violating the Clean Water Act.

a. fines and imprisonment of the corporate officers.

Unit 5: A trial between Shane and Verna results in a jury verdict in Shane's favor. After the jury renders its verdict, Verna's attorney can file a motion: a. for a new trial. b. to dismiss the case. c. for summary judgment. d. for a judgment on the pleading.

a. for a new trial.

Unit 2: James routinely sells office supplies to a large retailer under contracts covered by the Uniform Commercial Code (UCC). He is covered by liability insurance for as long as necessary under UCC rules under each contract. James retains an insurable interest in the goods he sells: a. for as long as he retains title to the goods. b. forever. c. until they are sold by the retailer. d. for 90 days or six months.

a. for as long as he retains title to the goods.

Unit 2: Betty, a corporate director, has engaged in a number of acts that constitute a conflict of interest between her and Global Mfg., Inc. The corporation shareholders want to remove her, and in most jurisdictions can do so: a. for cause. b. only when her term expires. c. in good faith. d. when the shareholders vote at the next annual meeting.

a. for cause.

Unit 1: Adrian runs a dry cleaning business, which is considered a major polluter. He complies with all Clean Air Act regulations that relate to his activities. After thirty years in the same location, Adrian opens a new store under the same name across town. Adrian's new location will be: a. held to the higher environmental standards that are now in place, even if that results in a discrepancy in the way the two dry cleaning stores are run. b. held to the same environmental standards as the first one because they both have the same owner. c. required to emit no pollutants of any kind under current environmental regulations. d. held to the lower environmental standards that are now in place.

a. held to the higher environmental standards that are now in place, even if that results in a discrepancy in the way the two dry cleaning stores are run.

Unit 2: Marvin and Maria start selling handmade jewelry to distributors nationwide and intend to form an LLC. Marvin and Maria enter into four contracts with distributors while the LLC is in the process of being formed, but before the LLC is formally in existence. Once Marvin and Maria form the LLC: a. if the LLC adopts the contracts, it can then enforce the contract terms. b. the contracts are enforceable if this were a corporation, but not for an LLC. c. the contracts are unenforceable by any party. d. the contracts are unenforceable by the LLC, only Marvin and Maria personally.

a. if the LLC adopts the contracts, it can then enforce the contract terms.

Unit 5: John is a resident of Iowa. While driving through California, he is in an accident involving Marisol, a California resident. Marisol files a lawsuit in a California state court. Over John, the California court has: a. in personam jurisdiction. b. in rem jurisdiction. c. diversity jurisdiction. d. no jurisdiction.

a. in personam jurisdiction.

Unit 2: Galen and Leslie are directors, but not officers, of Tropical Travels, Inc. Tropical Travels becomes embroiled in a controversy over airline kickbacks. As directors, Galen and Leslie can be named in any lawsuit that may result from the company's actions. If they have any expenses related to the lawsuit, they may be compensated for those under their right of: a. indemnification. b. participation. c. inspection. d. compensation.

a. indemnification.

Unit 3: Officer Pinkerton has an intuition that Jason's car contains illegal narcotics. Based on that intuition, he stops Jason's car and searches it. The search will be considered: a. invalid because Officer Pinkerton does not have probable cause to search the vehicle. b. invalid because the search violates the Seventh Amendment of the U.S. Constitution. c. valid because Officer Pinkerton has a reasonable suspicion to search the vehicle. d. valid because Officer Pinkerton has probable cause to search the vehicle.

a. invalid because Officer Pinkerton does not have probable cause to search the vehicle.

Unit 2: Floors R Us, a franchisor, cancels its franchise agreement with Bernardo, the franchisee, without any notice. Floor's action: a. is likely a wrongful termination. b. is a violation of federal law. c. is an act in the ordinary course of business. d. will allow Bernardo a right to reimbursement of his franchise fee.

a. is likely a wrongful termination.

Unit 3: Mary is a data-entry employee at Computer Services, Inc., a small computer company. Mary's sole job is to input information into a computer from paper invoices and spreadsheets. Mary develops chronic carpel tunnel syndrome, rendering her unable to type. As a reasonable accommodation, she requests that her employer hire a new employee to do the data entry on her behalf. Mary's request: a. is not a reasonable accommodation because Mary's request would place an undue hardship on the company. b. is a reasonable accommodation under the ADA, because an employer must accept the accommodation preferences of the employee. c. is a reasonable accommodation under the Americans with Disabilities Act (ADA), which her employer is legally bound to accommodate. d. is not a reasonable accommodation because Mary does not qualify as disabled under the ADA.

a. is not a reasonable accommodation because Mary's request would place an undue hardship on the company.

Unit 3: Abigail works for a large pharmaceutical company as a scientist. While testing a potential new drug, she learns that company managers are illegally falsifying results that are being sent to the Food and Drug Administration (FDA) in order to streamline drug approvals. Abigail reports this practice to federal law enforcement. Company managers learn about Abigail's disclosures and fire her. Abigail: a. is protected from wrongful discharge by the exception based on public policy. b. is not protected from discharge because she is an employee at will. c. is protected from wrongful discharge by the exception based on contract theory. d. is protected from wrongful discharge by the exception based on tort theory.

a. is protected from wrongful discharge by the exception based on public policy.

Unit 1: The Food and Drug Administration (FDA) is investigating a report that Cherise Cosmetics Co. is in violation of purity and testing regulations. The FDA wants Yasmin, the lead chemist for the company, to testify at an administrative hearing. Yasmin refuses, so the FDA: a. issues an ordinary subpoena. b. issues a subpoena duces tecum. c. appeals her decision to a federal court. d. conducts an on-site investigation to discover the information.

a. issues an ordinary subpoena.

Unit 3: Sam goes out shopping, and using his wife Juanita's credit card he buys $221-worth of groceries. Under agency law, Juanita will probably be deemed: a. liable for the purchase, based on the creation of an agency by operation of law. b. not liable for the purchase, based on Sam's lack of a power of attorney. c. not liable for the purchase, based on Sam's duty of performance. d. liable for the purchase because Sam is her employee.

a. liable for the purchase, based on the creation of an agency by operation of law.

Unit 4: Teagen owns a small cottage in which Katie, her elderly aunt, lives. Teagen wants to ensure that Katie can live in the cottage for the remainder of her life, but that when Katie dies, title to the property will return to Teagen. Teagen can accomplish this objective by granting Katie a: a. life estate. b. tenancy at sufferance. c. special warranty deed. d. tenancy at will.

a. life estate.

Unit 1: Kristine works for Treeteeth, a U.S. company doing business in several countries around the world. She applies for a management position but is not given the promotion because the country in which she works has a law that forbids women from supervising men. She sues for gender discrimination under Title VII of the Civil Rights Act of 1964. Kristine: a. loses the case because Title VII has a "foreign law" exception. b. wins the case because it is illegal in all nations to discriminate on the basis of gender. c. loses the case because Title VII only applies to American companies doing business in the United States. d. wins the case because Title VII applies to American companies no matter where they are doing business.

a. loses the case because Title VII has a "foreign law" exception.

Unit 3: Kim hires Michelle to go to the art gallery and purchase a specific painting for him. The painting costs $1,500. Because this is the purchase and sale of goods for more than $500, the contract for the painting must be in writing. In order to have a legal purchase of the painting, Kim: a. may have Michelle sign on his behalf if the agency agreement is in writing. b. must not have Michelle hired as his agent. c. must have Michelle bring the contract to him for his original signature. d. may have Michelle sign on his behalf based on their verbal agency agreement.

a. may have Michelle sign on his behalf if the agency agreement is in writing.

Unit 1: Waste Disposal, Inc., collects biological hospital waste and has designed a method of hermetically sealing that waste in water-tight barrels. It wants to bury it in the ocean thousands of miles offshore. Waste Disposal: a. may not engage in this business under any circumstances. b. may dispose of this waste if more than two thousand miles from the U.S. coastline. c. must obtain a permit. d. may only dispose of this waste in the ocean if the EPA certifies that the containers are appropriately sealed to avoid contamination for at least 100 years.

a. may not engage in this business under any circumstances.

Unit 5: Jackson, a homeowner, files a lawsuit against Michael, his construction contractor. Prior to trial, they meet with their attorneys to try to resolve their dispute before going to trial. This proceeding is known as: a. negotiation. b. arbitrability. c. early neutral case evaluation. d. a summary jury trial.

a. negotiation.

Unit 2: Adele decides to purchase several silver tea sets from Vaughn's gift store. In their sales contract, Adele and Vaughn do not specify how many silver tea sets Adele will purchase. They now have: a. no contract at all. b. a valid output contract. c. a valid contract with an open delivery term. d. a valid contract with an open price term.

a. no contract at all.

Unit 2: Doug is the vice president of product development for a corporation that makes flavored honey. Doug proposes to the board that they approve three new products: chili-flavored honey, seaweed-flavored honey, and black-licorice honey. Doug and his team have market tested the flavors, and they received positive reviews from focus groups. The board approves the flavors, which then fails miserably and cost the company thousands of dollars. If some shareholders sue the board for its decision to market the flavors, the board most likely will: a. not be held responsible because of the business judgment rule. b. be held responsible for letting such horrible flavors go to market. c. not be held responsible because of the duty of loyalty. d. be held responsible because of the business judgment exception.

a. not be held responsible because of the business judgment rule.

Unit 3: Wilhelm has an argument with his apartment roommate, Arthur. Wilhelm tells Arthur that if he leaves their apartment, Wilhelm will lock Arthur in his room when he returns. Arthur, frustrated with Wilhelm, leaves the apartment to take a walk. If Arthur were to sue Wilhelm for false imprisonment, Arthur would most likely: a. not be successful because threats of future harm do not constitute false imprisonment. b. not be successful because Wilhelm is his roommate. c. be successful because Wilhelm committed false imprisonment. d. be successful because Arthur suffered emotional distress.

a. not be successful because threats of future harm do not constitute false imprisonment.

Unit 1: Jin owns land between Hassan's land and the river. Hassan buys several pigs, chickens and other farm animals. Those animals create a significant amount of waste that Hassan washes into the stream that runs from his property to the river. This waste pollutes the water on Jin's land. As a result, Jin's garden dies and Jin is afraid to drink any water from his well. If Jin wants to stop Hassan from washing this animal waste into the stream, Jin could sue for: a. nuisance. b. violations of CERCLA. c. violations of RCRA. d. violations of the Clean Air Act.

a. nuisance.

Unit 3: Melissa's tugboat accidentally collides with Tyler's yacht, and Tyler sues Melissa for negligence. A federal jury finds Melissa liable and awards Tyler $5,000 in compensatory damages as well as $50 million in punitive damages. Melissa appeals to the United States Supreme Court, challenging the punitive damages award. If the Supreme Court heard the case, it would likely: a. overturn the punitive damage award as grossly excessive. b. refuse to review the issue because the court cannot overturn jury awards. c. uphold the damage award as serving a legitimate purpose. d. uphold the damage award as proportional to the harm.

a. overturn the punitive damage award as grossly excessive.

Unit 1: Bribery is acceptable in certain foreign countries. Indeed, U.S. Development, Inc., has found that the only way it can ensure delivery on certain contracts in these countries is to bribe the officials. This is: a. permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures. b. permitted by U.S. law if the payment is made to government officials for the purpose of securing advantageous contracts. c. prohibited by U.S. law under all circumstances. d. prohibited by U.S. law if the contract price exceeds $20,000.

a. permitted by U.S. law if the payment is made to a minor official to speed up administrative procedures.

Unit 2: George owns 300 shares of preferred stock in a company. By owning preferred stock, George has: a. priority over holders of common stock as to dividends. b. priority over holders of common stock as to dividends and the right to force the company to buy back the shares. c. a fixed maturity date for his shares. d. the right to force the company to buy back the shares.

a. priority over holders of common stock as to dividends.

Unit 3: Sarah asks Sergio to mow her lawn. Sergio, who is overloaded with work, contracts with Dan to do the work for him as an independent contractor. As Dan is mowing, Sarah walks out of her house and the lawnmower throws a rock and hits Sarah, causing serious injuries. In this situation, Sergio is: a. probably not liable for Sarah's injuries. b. liable for Sarah's harms because Dan is an independent contractor. c. not liable for Sarah's injuries because she breached her duty of notification. d. liable for Sarah's harms because he has a responsibility to control the actions of his employees.

a. probably not liable for Sarah's injuries.

Unit 3: Carl tells Jenny that he will give her a raise if she agrees to have a romantic relationship with him. In legal terms, this is known as: a. quid pro quo harassment. b. invidious harassment. c. settled harassment. d. hostile-environment harassment.

a. quid pro quo harassment.

Unit 2: Marsha is a sole proprietor of a small quilting shop. She has considered changing her business structure, but she cannot find an alternative structure that would give her the main advantage she enjoys as a sole owner. The main advantage is that she: a. receives all the profits. b. receives dividends. c. is taxed as a corporation. d. assumes very limited risk.

a. receives all the profits.

Unit 2: Rena contracts with Darryl to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read $40,000 rather than $4,000. They can seek the remedy of: a. reformation. b. recovery based on quasi contract. c. novation. d. restitution.

a. reformation.

Unit 3: Mitchell hires Christina to go from Florida to New York and negotiate a contract for his company. He gives her specific instructions on what should be in the contract and a written letter that gives her authority to sign on his behalf. Christina books a plane ticket, flies to New York, hires a cab, and successfully negotiates the contract. If Christina is paid for the plane ticket and cab fare, as well as meals while in New York, it is most likely under the principal's duty of: a. reimbursement. b. compensation. c. travel coverage. d. cooperation.

a. reimbursement.

Unit 2: Francine is interested in starting a new financial services company where she will manage the investments of others. She wants to generate her own funding as well as lead the business once it gets started. Francine will assume all risks and rewards of the new enterprise. Francine would be considered an entrepreneur because she is: a. someone who initiates and assumes the financial risk of a new business enterprise. b. a person who can grow a business quickly. c. a person who knows how to evaluate which stocks to purchase. d. someone who can expertly manage other people's investments.

a. someone who initiates and assumes the financial risk of a new business enterprise.

Unit 3: Modern Railways Co. operates a cargo railroad service between New York and Boston. A train owned by Modern Railways derails due to a maintenance problem. The train collides with a delivery truck owned by CraftCo, shattering $100,000 worth of porcelain inside. If CraftCo sues Modern Railways Co. for negligence, CraftCo may be able to recover: a. special damages. b. singular damages. c. general damages. d. punitive damages.

a. special damages.

Unit 2: Matthew has a contract to sell a piece of real estate to Betty for $35,000. Matthew breaches the contract and decides to keep the property even though the market price is only $31,000. Betty can recover: a. specific performance. b. $4,000 as the difference between the market price and the contract price. c. $35,000 as the contract price on the land. d. nothing, because Matthew wanted to keep his land.

a. specific performance.

Unit 2: Jim contracted with United Technologies to install 5,000 feet of Rocketfish Cat-5e network cable in his new office building. United installed 5,000 feet of Dynex Cat-5e network cable instead. The types of cable are essentially the same. When Jim sued for breach of contract, the court likely found that United's actions constituted: a. substantial performance. b. material breach. c. complete performance. d. incomplete performance.

a. substantial performance.

Unit 1: Ocean City passes an ordinance that prohibits all churches from meeting within its city limits. This rule affects the residents' constitutional right to: a. substantive due process. b. procedural due process. c. full faith and credit. d. interstate commerce.

a. substantive due process.

Unit 4: Brad owns a hair salon that he is selling. In the salon are various items including lobby furniture, barber chairs, wall mirrors in front of each barber chair, razors, scissors, and handheld mirrors. When he sells the hair salon, the following are most likely to be considered fixtures: a. the barber chairs and wall mirrors. b. the items of lobby furniture. c. the razors, scissors, and handheld mirrors. d. all of the items listed.

a. the barber chairs and wall mirrors.

Unit 1: The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a utilitarian approach to business ethics, management would probably consider: a. the costs and benefits of retaining a nonproductive employee. b. how Andy and his family might suffer if Andy were to lose his job. c. how all other employees in the company would feel about Andy's firing. d. Andy's fundamental rights.

a. the costs and benefits of retaining a nonproductive employee.

Unit 4: Steven and Andrea are married and live in San Diego, California. Shortly after the marriage, they purchase a home together. Two years later, Andrea inherits ranchland from her deceased father. In terms of ownership: a. the home is considered to be community property, but the ranchland is not. b. the ranchland is considered to be community property, but the home is not. c. both the home and ranchland are held as community property. d. neither the home nor the ranchland are held as community property because California is not a community-property state.

a. the home is considered to be community property, but the ranchland is not.

Unit 2: Mary, Thomas, and Franklin form an LLC for the purpose of running a restaurant. Each invests $10,000 into the LLC. Two weeks after the LLC is formed, Joanne patronizes the restaurant and suffers from severe food poisoning. If Joanne sues the LLC: a. the members could be liable for $10,000 each, the amount of their investment. b. the members could be both personally liable and liable for their investments. c. the members could be personally liable, but not for their investments in the LLC. d. neither the members nor their investments will be liable in any capacity.

a. the members could be liable for $10,000 each, the amount of their investment.

Unit 2: Product Management, LLC, has forty members. Two of the members died the previous year. Under the Uniform Limited Liability Company Act (ULLCA), on the death of the two members: a. the other members may continue to carry on the LLC's business unless the operating agreement provides otherwise. b. the other members may continue to carry on the LLC's business, even if the operating agreement mandates dissolution on the death of a member of the LLC. c. the LLC continues, but only with a court order allowing the LLC to do so. d. the LLC must dissolve.

a. the other members may continue to carry on the LLC's business unless the operating agreement provides otherwise.

Unit 1: Steve, a citizen of New York, wants to obtain a business license in Illinois. The Illinois legislature passed a law requiring nonresidents to pay a $1,500 fee to apply for business licenses in the state of Illinois. Illinois residents pay nothing for a business license. This discrepancy in the fees between the residents of Illinois and other states may violate: a. the privileges and immunities clause. b. the due process clause. c. the full faith and credit clause. d. the separation of powers.

a. the privileges and immunities clause.

Unit 4: Sara agrees to sell Butch a parcel of land. The land has a home, fifty acres of crops, and ninety acres of grassland. When Sara sells the parcel to Butch: a. the sale includes the crops unless the contract says otherwise. b. it must include the home, crops, and grassland and cannot be divided. c. the sale includes the home only and not the crops unless specifically stated. d. the plant life is not considered real property and must be contracted separately.

a. the sale includes the crops unless the contract says otherwise.

Unit 5: Maya prevails in her lawsuit against Anthony. Anthony can satisfy the judgment by: a. transferring property he owns directly to Maya or selling property he owns and using the proceeds to pay her. b. naming Maya as the beneficiary on a life insurance policy equal to the value of the judgment. c. cosigning a loan on behalf of Maya for at least the value of the judgment. d. all of these choices are valid ways of satisfying the judgment.

a. transferring property he owns directly to Maya or selling property he owns and using the proceeds to pay her.

Unit 1: Garrett was a commercial tour boat operator on the northern coast of Kauai, Hawaii. He was licensed by the state of Hawaii to operate his boat in Hanalei Bay. The U.S. Department of Transportation and the U.S. Coast Guard also granted Garrett an unrestricted license to operate his boats in Hanalei Bay. Hawaii subsequently passed a law that banned all commercial use of Hanalei Bay. The state refused to renew Garrett's state license and ruled that he was not allowed to operate his vessel based on his federal licenses. Garrett sued the state, alleging that the state law that prohibited him from operating his boat conflicted with the federal law that authorized him to do so. The court probably found that the state law was: a. unconstitutional under the supremacy clause. b. unconstitutional under the equal protection clause. c. constitutional under the supremacy clause. d. constitutional under the due process clause.

a. unconstitutional under the supremacy clause.

Unit 1: Jane Sanderson worked in a travel-service office and had access to the reservation systems of several airlines. She accessed the system and replaced the names of passengers with fictitious names. She also enrolled the fake names in the airlines' frequent-flyer programs. Her husband set up mailboxes under those names for the delivery of free airline tickets "earned" under the frequent-flyer programs. Real passengers were not harmed by and did not complain of the deception. The Sandersons' behavior was: a. unethical and illegal, because their actions constituted theft from the airlines. b. unethical but legal. c. ethical, because the other passengers did not suffer monetary damages. d. ethical, because no passengers complained.

a. unethical and illegal, because their actions constituted theft from the airlines.

Unit 3: Sarah is employed at Tulip Factory, Inc., as an accountant. Sarah takes military leave and two months later returns from military service. Tulip Factory managers offer Sarah a new job as a junior bookkeeper. This decision: a. violates the USERRA because returning service members are to be reemployed in the jobs that they would have attained had they not been absent for military service. b. does not violate the USERRA because returning service members have no special claim to employment at their employer from which they took military leave. c. violates the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) because returning service members are to be reemployed in the job of their choice. d. does not violate the USERRA because returning service members are to be reemployed in any job that is available.

a. violates the USERRA because returning service members are to be reemployed in the jobs that they would have attained had they not been absent for military service.

Unit 2: Trey owns 250 shares of common stock in a toy-store company. This means that he owns a percentage of the company based on the proportion of shares he owns out of the total shares issued by the company. With this ownership he also acquires rights to: a. vote. b. determine the amount of dividends that will be paid. c. vote and receive dividends before any other creditors. d. vote and receive a fixed sum on a fixed date.

a. vote.

Unit 2: Chloe buys a product from Good Times, Inc., that includes a shrink-wrap agreement. After using the product, she decides it is defective and sues Good Times. If the court determines that Chloe learned of the shrink-wrap terms after the contract was finalized, it may conclude that the terms were proposals for additional terms, which then: a. were not a part of the contract unless Chloe expressly agreed to them. b. automatically became part of the contract. c. automatically made the contract void. d. were not a part of the contract because Good Times had not expressly agreed to them.

a. were not a part of the contract unless Chloe expressly agreed to them.

Unit 2: Eddie and Eric enter into a partnership agreement to sell gourmet dog biscuits. If they do not specify how long the general partnership will last, the partnership will end: a. whenever either partner wants to end it. b. in twelve months. c. in one year plus one day. d. whenever both partners agree to end it.

a. whenever either partner wants to end it.

Unit 1: AT&T wants to obtain additional rights to operate within the 700 MHz spectrum in the United States. The Federal Communications Commission (FCC) has rules and regulations that govern wireless spectrum auctions. The FCC is: a. a legislative agency. b. an administrative agency. c. a judicial agency. d. an executive agency.

b. an administrative agency.

Unit 2: Henry and Ryan each invest $10,000 in a limited partnership as limited partners, so each has a 50% interest. Tracey sues the limited partnership and obtains a $100,000 judgment. Henry's liability is: a. $100,000. b. $10,000. c. unlimited. d. $50,000.

b. $10,000.

Unit 5: Lily has suffered severe injuries from a car accident. She would like to sue for compensation, but does not have enough funds on hand to retain an attorney on her own. What is the best type of fee arrangement for Lily? a. Fixed fee b. Contingency fee c. Hourly fee d. Administrative fee

b. Contingency fee

Unit 5: Stewart, a construction worker, fell from a beam and suffered serious injuries. He sued his employer, Sunrise Construction, for damages. In most jurisdictions, a court will first impose lighter sanctions but eventually will dismiss a case if a party shows blatant disregard for court orders. Over six years of pretrial motions, Stewart was repeatedly asked to provide the names of expert witnesses he intended to call for his case. Sunrise filed motions three times asking the court to compel Stewart to answer the questions. The trial court entered three orders to compel Stewart to answer and four orders allowing him extra time to answer. Stewart did not respond. Sunrise filed a motion to dismiss because of Stewart's failure to comply with the orders. What would the court most likely do? a. Refuse to dismiss the case because Stewart's injuries were severe, which means he must be given the chance to litigate. b. Dismiss the case because of Stewart's refusal to provide information to Sunrise. c. Dismiss the case even though Stewart had a good reason not to provide Sunrise with the information. d. Refuse to dismiss the case because Sunrise had no right to Stewart's medical records.

b. Dismiss the case because of Stewart's refusal to provide information to Sunrise.

Unit 3: The Department of Justice wants access to the telephone records of a major newspaper. The requirement for a search warrant, an order from a judge authorizing the search of the records, would be required under the: a. First Amendment. b. Fourth Amendment. c. Fifth Amendment. d. Sixth Amendment.

b. Fourth Amendment.

Unit 3: MediaContact, Inc., specializes in sending spam on behalf of its clients. MediaContact may be required to do which of the following in order to comply with state laws? a. Register with the state government as a "spam sender." b. Instruct spam recipients on how to "opt out" of their e-mails. c. Solicit permission from all users to which it wishes to send commercial e-mail. d. Include the name and location of their corporate address in all e-mail transmissions.

b. Instruct spam recipients on how to "opt out" of their e-mails.

Unit 1: Tyler believes that some laws passed by his state's legislature are improper, and he refuses to comply with them. He believes that there is a universal law above all others that grants rights to all people. Which school of jurisprudential thought does Tyler subscribe to? a. The school of legal realism b. The natural law school c. The historical school d. The positivist school

b. The natural law school

Unit 2: Gabby, an accountant who is planning to move, offers to sell her sofa to her friend Trent, a baker, for $750. Trent says, "I'll take it, and I would like you to throw in the coffee table along with it." Under the Uniform Commercial Code (UCC), Gabby and Trent have: a. a contract for the sofa and coffee table. b. a contract for the sofa only. c. no contract, because of the mirror image rule. d. no contract because Gabby did not accept the counteroffer.

b. a contract for the sofa only.

Unit 2: Rena incorporates her business, Rena's Rhinestones, in her home state of Maryland. She wants to expand and sell some of her jewelry in Virginia. In Virginia, her company will be considered: a. a public corporation, so she will probably not have to obtain a license to do business there. b. a foreign corporation, and she will probably have to obtain a certificate of authority to do business there. c. an alien corporation, because her business has been chartered in another state. d. an open corporation, so she can do business in any state that allows open corporations to operate.

b. a foreign corporation, and she will probably have to obtain a certificate of authority to do business there.

Unit 5: Juan files a lawsuit against Liliana. Liliana responds to the complaint by filing an answer. After the pleadings are closed, Juan can file: a. a counterclaim. b. a motion for judgment on the pleadings. c. a motion for judgment n.o.v. d. an affirmative defense.

b. a motion for judgment on the pleadings.

Unit 3: Gina buys a piece of pottery from Woodward for her principal, Kelvin. If Woodward knows that Gina is buying the pottery on behalf of someone other than herself but does not know the identity of that person, Kelvin is: a. an agent for Woodward. b. a partially disclosed principal. c. an undisclosed principal. d. an independent contractor working for Gina.

b. a partially disclosed principal.

Unit 2: Lysco, Inc., gives to all 15,000 of its shareholders the right to purchase newly issued shares of Lysco stock in proportion to the percentage of shares they currently own and before anyone else is offered the shares. This right is known as: a. a proxy right. b. a preemptive right. c. an attachment right. d. a cumulative voting right.

b. a preemptive right.

Unit 4: Abigail is the owner of a tract of land, but Umberto owns the mineral and excavation rights to that land. Umberto commences excavation in order to access the valuable minerals. While digging, he causes the surface of the land to collapse. Umberto is: a. liable only if he acted recklessly. b. absolutely liable for any collapse. c. not liable for any damage. d. liable only if he acted negligently.

b. absolutely liable for any collapse.

Unit 1: Assume that Congress passes a law establishing a new administrative agency to oversee cyberlaw issues. The agency writes rules to enable it to carry out its duties. The rules written by the agency will be known as a part of: a. statutory law. b. administrative law. c. constitutional law. d. a Restatement of the Law.

b. administrative law.

Unit 2: Kristin contracts with Jacob to buy a car through an online auction service. All of their negotiations and transactions are conducted electronically. None of their communications ever mention the Uniform Electronic Transactions Act (UETA), which was adopted by their state in its entirety in 2001. Their contract is: a. not covered by the UETA. b. automatically covered by the UETA. c. covered by the UETA only if the transaction occurred after 2004. d. covered by the UETA only if their contract involves computer information.

b. automatically covered by the UETA.

Unit 3: Irene sues Mark for defamation. During the lawsuit, Irene wants to obtain Mark's posts on his social media. Irene will: a. be prevented from obtaining Mark's social media posts because of federal privacy law. b. be allowed to obtain Mark's social media posts before the trial begins. c. be allowed to obtain Mark's social media posts only through testimony at trial. d. be prevented from obtaining Mark's social media posts because of state privacy law.

b. be allowed to obtain Mark's social media posts before the trial begins.

Unit 2: Kyle has a credit card with a contract stipulating that he will make monthly minimum payments. Over the course of a year, he incurs $1,200 in debt that he can't pay. Because of this and other debts, Kyle files for bankruptcy. In the bankruptcy, Kyle's assets are distributed to his creditors and the credit-card company gets $200. The bankruptcy process: a. discharges the contract by agreement. b. discharges the contract by law. c. does not discharge the contract. d. discharges the contract by performance.

b. discharges the contract by law.

Unit 5: Miller signed an employment contract containing an arbitration clause stating that "any dispute" arising during employment must be resolved by binding arbitration. Two years later, after she was injured on the job and took leave to recover, she was fired. She filed a complaint for disability discrimination with the Equal Employment Opportunity Commission, which gave her a "right to sue" letter. She then filed suit in federal court against her employer for disability discrimination. The court: a. allowed the suit to proceed because federal rights take precedence over an arbitration clause in a contract. b. dismissed the suit because of the arbitration agreement. c. allowed the suit to proceed because arbitration clauses cannot limit the ability to file suit in federal court, only in state court. d. dismissed the suit because it must be filed in state court.

b. dismissed the suit because of the arbitration agreement.

Unit 5: Motor Sports, Inc., sues A-Z Speed. Motor Sports alleges that A-Z breached (failed to perform) a contract that required A-Z to sell ten Jet Skis to Motor Sports. Under the rules governing discovery, Motor Sports is most likely entitled to obtain: a. physical examinations of key employees of A-Z. b. documents in A-Z's possession relating to the contract. c. access to the contents of A-Z's top executives' safe-deposit boxes. d. permission for Motor Sports' president to personally inspect the contents of all of A-Z's paper records and computer files.

b. documents in A-Z's possession relating to the contract.

Unit 2: Madeline very much wants to be a franchisee of BurgerBarn, a popular chain-style business operation. BurgerBarn shows Madeline the franchise contract, which includes the requirement that all franchisees obtain materials and supplies exclusively from BurgerBarn. Madeline objects to this provision. This contract term is: a. unenforceable because it violates antitrust laws. b. enforceable because franchisors are permitted to require franchisees to obtain materials and supplies only from them. c. enforceable because franchisees cannot negotiate contract terms with franchisors d. unenforceable because it violates the Federal Trade Commission's (FTC) Franchise Rule.

b. enforceable because franchisors are permitted to require franchisees to obtain materials and supplies only from them.

Unit 3: Joseph, a sixteen-year-old honor student, calls 911 from a pay phone to report a possible bomb in the town square. He has no evidence of any bomb, does not have a bomb or any materials to make a bomb, and has no intention of placing one in the town square. He is arrested for making a terrorist threat and claims that he has not committed a criminal offense. A court will likely: a. dismiss the charges because he is a juvenile. b. find Joseph guilty of making a terrorist threat based on criminal recklessness. c. dismiss the charges because he lacked the intent to commit a crime. d. find Joseph guilty of a lesser crime instead of making a terrorist threat based on his age.

b. find Joseph guilty of making a terrorist threat based on criminal recklessness.

Unit 3: Chloe advertises on the radio that she is selling a car guaranteed to get thirty-five miles per gallon. Chloe knows that the car will not do what she claims it will. Chloe may be successfully prosecuted: a. for the crime of embezzlement. b. for the federal crime of wire fraud. c. under state law only. d. under international law under the Convention on International Transmissions.

b. for the federal crime of wire fraud.

Unit 1: The Equal Employment Opportunity Commission (EEOC) issues a statement describing how it will apply a section of the Americans with Disability Act. After exhausting the administrative remedies, Jill files a lawsuit in federal court alleging that the EEOC incorrectly interpreted the statute. The court likely will: a. interpret the statute without reference to the EEOC interpretation under its powers of judicial review. b. give deference to the EEOC's interpretation so long as it is reasonable. c. ignore the agency's interpretation and send the question to Congress to clarify the meaning of the statute. d. give deference to the EEOC's interpretation regardless of its reasonableness because agencies have the power to interpret statutes under their authority.

b. give deference to the EEOC's interpretation so long as it is reasonable.

Unit 1: Jeff believes in the principle of rights theory and uses it to make ethical decisions for his business. He must decide whether to expand his business into Asia. Several key employees do not want the business to expand overseas and have threatened to quit if Jeff makes this move. Under the principle of rights theory, he will make this decision by considering: a. the cost of losing employees and the benefit of the profit he could earn. b. how his decision will affect the rights of his employees, his consumers, and others. c. whether the expansion violates his employees' principles. d. how society would be affected if everyone expanded their businesses against the advice of their employees.

b. how his decision will affect the rights of his employees, his consumers, and others.

Unit 3: Mel sent Jasper an e-mail message telling Jasper that his wife had been killed in a car accident, and Mel knew this was untrue. Jasper may be able to successfully sue Mel for: a. libel. b. infliction of emotional distress. c. violations of the First Amendment. d. battery.

b. infliction of emotional distress.

Unit 1: The Environmental Protection Agency (EPA) passes a proposed rule change to the Clean Air Act related to the discharge of emissions by factories. The EPA's action would be considered arbitrary and capricious for all of the following reasons except: a. it failed to provide a rational explanation for its decision. b. it failed to provide the required time for public comment. c. it considered legally inappropriate factors. d. it changed a prior policy without justification.

b. it failed to provide the required time for public comment.

Unit 5: Karl sells Jason his house. After moving in, Jason learns that Karl failed to disclose serious defects in the house. Jason sues Karl. After the pretrial procedures are completed, the case enters the trial phase. The attorneys begin the process of voir dire. During voir dire: a. the attorneys view and discuss pretrial documents obtained during discovery. b. jurors are picked from a jury pool. c. the bailiff organizes the courtroom so that the trial can proceed in a proper fashion. d. the attorneys determine the appropriate number of jurors.

b. jurors are picked from a jury pool.

Unit 3: Executives at MegaCorp refuse to promote Nora, and then fire her, because of a preference to have only men in top leadership positions. Nora files a lawsuit against MegaCorp claiming sex discrimination. During the lawsuit, MegaCorp learns that Nora had been stealing company assets for five years. A possible outcome of this information may: a. shield an employer entirely from discrimination. b. limit the amount of damages for which the employer is liable. c. not have any effect as such evidence is irrelevant in Title VII cases. d. ban Nora from filing a legal claim.

b. limit the amount of damages for which the employer is liable.

Unit 2: Quentin operates an ice cream franchise which has shops throughout the United States. CoolCream Co., the franchisor, supplies the ingredients and formula so that Quentin can create the ice cream in his store and sell it fresh to customers. This relationship is known as a: a. distributorship. b. manufacturing or processing-plant arrangement. c. joint development enterprise. d. chain-style business operation.

b. manufacturing or processing-plant arrangement.

Unit 3: Eastminster Presbyterian Church has an opening for a new head pastor. Mohammed, who is a Muslim, applies for the job. The church declines to hire him and continues to look for other applicants. If Mohammed files a claim of illegal discrimination against the church, the church: a. can contend that the Equal Employment Opportunity Commission's (EEOC's) "eighty percent rule" is irrelevant when there is only one available job. b. may assert a bona fide occupational qualification (BFOQ) defense. c. can claim that Mohammed did not make out a prima facie case of illegal discrimination. d. can assert that its hiring practices are not intentionally discriminatory.

b. may assert a bona fide occupational qualification (BFOQ) defense.

Unit 1: The Environmental Protection Agency conducts meetings to discuss the possibility of creating additional regulations within the next five years. Under the Government in the Sunshine Act, the meetings: a. must be advertised so that the public is aware that the meetings are taking place but may be conducted privately. b. may be closed to the public. c. may be closed to the public, but the minutes of the meetings must be posted on the agency's Web site. d. must be conducted in the open.

b. may be closed to the public.

Unit 2: Anson is a citizen of Connecticut. He suffers severe injuries in a car accident. He hires a Michigan attorney to bring a multimillion-dollar claim against the car manufacturer. The attorney belongs to an LLC whose members are from several states including Connecticut. After losing the product liability claim, Anson brings a malpractice lawsuit against the attorney. He: a. may file only in a Connecticut state court. b. may file in a state court in Connecticut or Michigan. c. may file in a state court in Connecticut or Michigan, or in federal court. d. must file in federal court.

b. may file in a state court in Connecticut or Michigan.

Unit 3: Julio lives in an area with a high percentage of Hispanic workers. Many of these workers are legal immigrants who have relatively little college training. If, when Julio applies for his job, he is given an examination designed for a college graduate, and if he and most Hispanic applicants fail to pass the test, the employer: a. might be engaged in disparate-harm discrimination. b. might be engaged in disparate-impact discrimination. c. might have violated the Americans with Disabilities Act. d. has almost certainly done nothing wrong.

b. might be engaged in disparate-impact discrimination.

Unit 2: Gary, Harold, Daniel, and Brian form a real estate partnership in 2013. In 2015, Brian dissociates himself from the partnership. After a partner's dissociation, under the Uniform Partnership Act the partnership: a. can freely choose whether to purchase Brian's partnership interest and how much value it will pay. b. must purchase his or her partnership interest based upon the buyout price. c. dissolves and distributes all assets. d. can freely choose whether to purchase Brian's partnership interest, and if it does not purchase Brian's interest, Brian will remain a partner.

b. must purchase his or her partnership interest based upon the buyout price.

Unit 2: One afternoon, after a couple of beers, Steven says that because Marvin has been a helpful neighbor, he can have a right-of-way to drive across Steven's land to get to a fishing pond. Two weeks later, while Marvin is driving across Steven's land, he hears Steven yelling, "Get off my property, you trespasser!" Marvin has: a. an avoidable oral contract. b. no enforceable contract. c. a contract that is void because trespassing is illegal. d. a valid oral contract.

b. no enforceable contract.

Unit 2: Carl is negotiating a franchise contract with Frank's Deli, a franchisor and a competitor of McDonald's. Frank's Deli is willing to give Carl 'territorial rights' to Orange County, where Frank will open his franchise. Frank's Deli, however, will not specifically state that the franchise given to Carl is exclusive. The territorial rights clause will most likely: a. not help Carl because Frank's Deli has the power to open any franchise it wishes by law regardless of any contract terms. b. not help Carl keep out other franchises because the territorial rights are not exclusive. c. help Carl keep additional McDonald's franchises from entering Orange County. d. help Carl keep additional Frank's Deli franchises from entering Orange County.

b. not help Carl keep out other franchises because the territorial rights are not exclusive.

Unit 2: Susan agrees to sell Ben a truckload of blankets for $10,000. Susan delivers the blankets to Ben's factory on a Sunday at 4:00 a.m. Seeing no one at the factory, Susan waits for twenty minutes and leaves with the goods. Susan has: a. met her obligation under the contract, and can successfully sue Ben for breach. b. not properly provided tender of delivery. c. properly provided tender of delivery to the buyer's place of business. d. met her obligation under the contract, and Ben must pay any additional delivery costs.

b. not properly provided tender of delivery.

Unit 3: Jason is rushed to State General Hospital after a severe car accident. Brenda, a skilled emergency physician, rushes to Jason's aid. She immediately applies the latest knowledge in medical care and makes repeated attempts to alleviate Jason's injuries. After three hours of efforts by Brenda and her staff, Jason dies from his injuries. Jason's estate sues Brenda for negligence. Jason's estate will most likely: a. prove negligence because Jason died at the hospital. b. not prove negligence because Brenda exercised a standard level of professional knowledge and ability in treating Jason. c. not prove negligence because Brenda had no duty of care to Jason. d. prove negligence because Brenda possessed superior knowledge as a physician.

b. not prove negligence because Brenda exercised a standard level of professional knowledge and ability in treating Jason.

Unit 3: Gunther posted an expensive item on an online auction site. Dominic offers the highest bid and sends payment to Gunther. Gunther then refuses to send the product to Dominic. Gunther has committed: a. online retail fraud. b. online auction fraud. c. phishing. d. online network fraud.

b. online auction fraud.

Unit 4: Jack and Jill have a tenancy in common in an apartment building. After ten years of ownership, Jill dies unexpectedly. On Jill's death, Jill's interest in the property will: a. pass to the state. b. pass to Jill's heirs. c. pass to Jack as tenant in common. d. pass to Jack's heirs.

b. pass to Jill's heirs.

Unit 2: Sarah owns half of Smith Realty, Inc., and her brother, Bill, owns the other half. Sarah routinely uses the company car, which is supposed to be only used for taking clients to view property, to run her personal errands. She also routinely uses company funds for personal uses, but always pays the money back into the corporation. When Smith Realty failed to pay its lawyer for work completed on its behalf, the lawyer sued both Smith Realty as well as Sarah and Bill personally. In this situation the court likely will: a. not pierce the corporate veil because there was no commingling of interests. b. pierce the corporate veil due to Sarah's commingling of interests. c. not allow Sarah and Bill to be sued individually because Smith Realty is a close corporation. d. dismiss the case because Smith Realty is a close corporation.

b. pierce the corporate veil due to Sarah's commingling of interests.

Unit 3: Adam sells audio and video equipment. He tells a customer, Abbey, "This MP3 player is the best one ever made." Adam's statement is: a. appropriation. b. puffery. c. fraudulent misrepresentation. d. fact.

b. puffery.

Unit 1: Bay City Water Commission sends its customers an annual printout of information regarding the drinking water it supplies. This information is provided as: a. a courtesy to customers. b. required by law because Bay City is a water supplier. c. required by law because its main source of water is a nearby navigable water. d. required by law because it chemically treats some of its water.

b. required by law because Bay City is a water supplier.

Unit 2: David contracts to purchase seven bulldozers from Jena. Jena manufactures the bulldozers, but David is unable to pay. After notifying David of her intentions, Jena may: a. resell the bulldozers, but she must give all profits to David. b. resell or dispose of the goods in the open market. c. keep the bulldozers and sue David for the full purchase price. d. resell or dispose of the goods to a friend in order to maximize the damages that Jena can claim against David.

b. resell or dispose of the goods in the open market.

Unit 2: Yen grants his cousin, Art, a franchise in Yen's sandwich shop. Yen writes the agreement so that he controls every detail of Art's shop, such that it is exactly the same as Yen's original shop. Yen even consults with Art about hiring employees and safety practices. One of Art's employees fails to clean up a spill and a customer is injured. The customer sues Yen. In this case, Yen: a. will be liable because of res ipsa loquitur. b. risks liability under the doctrine of respondeat superior. c. will not be liable because Yen is the franchisor, not the franchisee. d. will not be liable because it is Art's sandwich shop.

b. risks liability under the doctrine of respondeat superior.

Unit 1: When a judge uses legal encyclopedias, law review articles, and Restatements to guide a decision, that judge is using: a. constitutional law. b. secondary sources of law. c. ineffective sources of law. d. primary sources of law.

b. secondary sources of law.

Unit 2: Irene wants to start a business selling T-shirts. Irene's top priority is that she alone has complete control over management decisions at all times. Irene should most likely form a: a. corporation. b. sole proprietorship. c. limited liability company. d. partnership.

b. sole proprietorship.

Unit 1: The Illinois state legislature passes a law raising the speed limit on certain state roads. This law becomes part of a body of law known as: a. administrative law. b. statutory law. c. uniform law. d. case law.

b. statutory law.

Unit 2: Liz agrees to cook twenty dinners for Brian, in exchange for which Brian will repair all of the plumbing in Liz's house. Liz has offered legally: a. insufficient consideration, because cooking twenty dinners is not worth as much as repairing all of the plumbing in Liz's house. b. sufficient consideration, because Liz has promised something of value. c. insufficient consideration, because this kind of bargain is against public policy. d. insufficient consideration, because there is a clear lack of any bargain.

b. sufficient consideration, because Liz has promised something of value.

Unit 1: Carson runs a large factory that produces air and water pollutants as it manufactures consumer goods. The government agency with which Carson will likely interact most often with regard to the pollutants is: a. the Army Corps of Engineers. b. the Environmental Protection Agency (EPA). c. the Food and Drug Administration (FDA). d. the Department of Defense.

b. the Environmental Protection Agency (EPA).

Unit 2: Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per pound. Owen breaches the contract and delivers no coffee. Marie's damages will be: a. the difference between the contract price on the coffee and the profits that Marie may have made selling the coffee. b. the difference between the market price of the coffee and the contract price. c. the amount Owen can afford to pay. d. the amount she seeks.

b. the difference between the market price of the coffee and the contract price.

Unit 1: Chie runs a business and is committed to the triple bottom line. This means that she is concerned with: a. profits at the end of each 4 months or the three bottom lines each year. b. the impact of the company's decisions on its profits, its people, and the planet. c. the business profits, then her personal income from the business, and then the tax she pays on that income. d. income from online sales, income from in person sales, and income from investments.

b. the impact of the company's decisions on its profits, its people, and the planet.

Unit 2: Mack is an oil executive. He wants to start a new company with different partners to explore some drilling opportunities. His attorney advises him about the various business forms. When discussing the LLC form, his attorney mentions that one of the biggest disadvantages of the LLC form is that: a. LLC members pay no taxes. b. there is no uniform law governing LLCs in the United States. c. it is taxed like a partnership unless the members choose differently. d. its members have limited liability for LLC debts.

b. there is no uniform law governing LLCs in the United States.

Unit 4: In a growing number of jurisdictions, when a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party. Legally, this duty of landlords is called the duty: a. to enjoin damages. b. to mitigate damages. c. of unlawful detainer. d. to undertake specific performance.

b. to mitigate damages.

Unit 4: Alpha Corp. creates a syrup that is flavored with coffee and chocolate and sells it under the name MochaMerge. Beta Co. begins to sell a similar product under the name MokaMerge. This is most likely a matter of: a. patent infringement. b. trademark infringement. c. trade dress infringement. d. copyright infringement.

b. trademark infringement.

Unit 1: Cyberlaw consists of: a. only federal statutes. b. traditional legal principles that have changed because of technology. c. laws that are written on computers, smartphones, tablets or other technology. d. only state statutes.

b. traditional legal principles that have changed because of technology.

Unit 1: The Iowa legislature passed a law banning trucks 65 feet long or longer from operating on its roads and highways because big trucks do more damage to roads than smaller trucks and are involved in more serious accidents. Prior to the ban, Consolidated Freightways (CF) had driven big trucks through Iowa on a regular basis, and these trucks were legal in other states. Switching to smaller trucks for trips through Iowa was inconvenient and costly. CF filed a lawsuit contending that the statute was unconstitutional. The United States Supreme Court most likely found that the Iowa statute was: a. unconstitutional under the privileges and immunities clause. b. unconstitutional under the "dormant" commerce clause. c. unconstitutional under the supremacy clause. d. constitutional because Iowa had a compelling state interest in passing the law.

b. unconstitutional under the "dormant" commerce clause.

Unit 1: A Minnesota statute required all operators of slow-moving vehicles to display a fluorescent red triangular sign. Henderson, an adherent of the Amish religion, was charged with violating the statute. His defense was that the law violated his First Amendment right to freedom of religion because displaying "loud" colors on his slow-moving black buggy conflicted with his religious belief that he should remain separate from the modern world. Henderson stated that he was willing to display the sign if he could use silver, instead of red, reflective tape, which was equally effective. The state argued that the law applied to all, equally. The court most likely found that the statute, as it applied to Henderson, was: a. constitutional under the safety clause. b. unconstitutional under the free exercise clause. c. unconstitutional under the due process clause. d. constitutional under the free exercise clause.

b. unconstitutional under the free exercise clause.

Unit 2: Laura, a widow, sold a piece of property and planned to live off the proceeds during her retirement. Laura has one son, Chris, who helps take care of her home and plans to move in with her and take care of her when she is too old to take care of herself. Chris asks her to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have formed a binding contract. In fact, the contract may be voidable, because it was formed as a result of: a. a unilateral mistake. b. undue influence. c. fraudulent misrepresentation. d. duress.

b. undue influence.

Unit 1: The Moon is a private company interested in a lunar tourist route. With all proper disclosures and registrations, 2TheMoon launches an exploratory mission to the moon with the company's management on board. On its way to the moon, the group sees several defunct-looking Russian satellites that have some very expensive-looking components. On its way back to earth, they link up with several of those satellites, remove the desired components, and release the satellites back into space. The management of 2TheMoon has: a. done the world a favor by reducing the amount of space junk. b. violated Article VIII of the Outer Space Treaty. c. not violated any law of agreement. d. violated Article I of the Outer Space Treaty.

b. violated Article VIII of the Outer Space Treaty.

Unit 2: Holly comes into Matthew's bicycle shop to learn about the Easy Ride bicycle she saw in his newspaper ad. Matthew shows her the floor sample of the bicycle and says that it is designed to shift and brake more easily than her current model does. She decides to purchase one. Matthew gets a box from the back of the shop and sells it to her, stating that contains the bicycle Holly wants. Matthew does NOT create an express warranty with his statement that the bicycle inside the box: a. conforms to his promise about the bicycle's shifting and braking ability. b. was purchased from a disreputable manufacturer. c. conforms to the floor sample he showed to Holly. d. conforms to his description of the Easy Ride.

b. was purchased from a disreputable manufacturer.

Unit 1: Dan runs a factory that generates air pollution. He knows that there is a fine of up to $25,000 per day for violations, but for every day he exceeds the pollution limit he makes $60,000. Dan decides it is worth it to violate the limits in order to make $35,000 per day. Dan: a. will have to pay the $25,000 per day plus an additional $5,000 for other violations. b. will not be able to keep any of his benefit from the violation. c. has made a good choice to maximize his income. d. will have to close down his business due to excessive violations.

b. will not be able to keep any of his benefit from the violation.

Unit 1: James worked for a corporation that measured its success in terms of short-term profits. James truly believed that the company could be a better company, and make more money, if it changed its strategy to focus on being a good citizen and by giving back to the community. These beliefs likely: a. would result in the bankruptcy of the company, as investors only select companies that will maximize their short term dividends. b. would result in a long term benefit to the company and an increase in long term profits. c. would result in reliance by the community on the generosity of the company and result in hard feelings if the company ever decreases its giving. d. would result in illegal activities as companies are legally required to maximize short term profits.

b. would result in a long term benefit to the company and an increase in long term profits.

Unit 3: The members of the City High soccer team have been training with Hanson, a personal trainer who charges by the hour, for several years. Bob, the soccer coach, tells the team members that they must now train with Martin, not Hanson, or they will be kicked off the team. All of Hanson's clients immediately stop training with Hanson. Bob is most likely to have committed: a. no tort. b. wrongful interference with a business relationship. c. slander. d. conversion.

b. wrongful interference with a business relationship.

Unit 3: Jennifer has filed a privacy complaint against Google. The federal agency to conduct an investigation of consumer complaints is the: a. Federal Communications Commission. b. Federal Aviation Administration. c. Federal Trade Commission. d. Securities and Exchange Commission.

c. Federal Trade Commission.

Unit 3: Lizzie works for Gary in his dance supply shop and is authorized to sell inventory but not to order new merchandise. Rena, a sales representative for a new line of dance wear, comes into the store, and Lizzie places an order with her. When Gary learns the details of Lizzie's purchase, he wants to ratify the contract. The one condition that is NOT necessary for ratification is: a. Rena and Gary must have legal capacity to engage in the transaction. b. Gary must know all the material facts about the transaction. c. Rena must withdraw from the transaction before Gary ratifies it. d. Gary must affirm Lizzie's order in its entirety.

c. Rena must withdraw from the transaction before Gary ratifies it.

Unit 1: The town of Rock River decides to put a new road through the middle of town to increase tourist traffic. In order to build the road, they must tear down a number of buildings. They send a note to the building owners telling them to vacate the premises within 24 hours or their possessions will be destroyed when the buildings are torn down. It is likely that the town has violated which provision of the Constitution? a. The establishment clause b. The equal protection clause c. The due process clause d. The commerce clause

c. The due process clause

Unit 1: Rupert and Cordelia own an American company that does business in foreign nations. Getting a license in a new country can be challenging. As they try to enter into business in a new country, Rupert fills out the license paperwork and takes it to the correct office. There, he pays the front-desk person $100 to process the paperwork, as is the custom in that country. Cordelia, who has connections in that country, schedules an appointment with the minister of commerce, who has the authority to determine which foreign companies get licenses, and pays him $200 to approve their license. Which payment(s) likely violated the Foreign Corrupt Practices Act? a. The payment made by Rupert but not the payment made by Cordelia. b. The payments made by both Rupert and Cordelia. c. The payment made by Cordelia but not the payment made by Rupert. d. Neither payment violated the FCPA.

c. The payment made by Cordelia but not the payment made by Rupert.

Unit 4: Hot Products owns a patent for a fan motor that it uses in ceiling fans. Allied Electric uses a fan motor that is identical to Hot Products' in the air conditioners it manufactures. Allied Electric does not have Hot Products' permission to use the motor. Can Hot Products win a patent infringement case against Allied Electric? a. No, unless Hot Products has sold the motor in the marketplace. b. Yes, if Allied Electric and Hot Products are competitors. c. Yes, because Allied Electric infringed on Hot Products' patent. d. No, unless consumers are confused.

c. Yes, because Allied Electric infringed on Hot Products' patent.

Unit 2: To make, sell, and distribute candy that Ethan has developed, he incorporates his business and designates his sister and brother as corporate officers. He sells them shares of stock. No shares are offered to the public. The three agree that if any one of them decides to leave the business, the others will buy that person's stock. Ethan's corporation is most likely: a. an S corporation. b. an alien corporation. c. a close corporation. d. a benefit corporation.

c. a close corporation.

Unit 2: Xavier is an engineer who specializes in computer aided design. Xavier visits a Web site and purchases computer-aided design software through the site's online store. Xavier clicks on-screen "I agree" boxes indicating agreement with the contract terms. In obtaining the software, Xavier has most likely obtained: a. joint partnership with the software company. b. ownership of the software. c. a license to use a single copy of the software. d. the right to pass title to the software to another.

c. a license to use a single copy of the software.

Unit 1: Yummy Donuts, an American company, signs a contract with Olivia who will use Yummy's secret recipes to produce and sell doughnuts in Romania. Olivia is required to protect the secrecy of the recipe and to pay Yummy Donuts a percentage of the income generated by the Romanian company. The type of business arrangement Olivia and Yummy Donuts have is most likely: a. a subsidiary. b. a manufacturing plant. c. a license. d. an international partnership.

c. a license.

Unit 2: Tuller wants to start a commercial trucking business and also wants to form his own limited liability company (LLC). Tuller, as the only member of the LLC, will make all relevant decisions, contribute all of the investment, and be responsible for all of the risks and rewards. Tuller's proposed LLC will be accepted by: a. no state, as at least two members are uniformly required to create an LLC. b. a few states. c. a majority of states. d. all states, as no state requires at least two members to create an LLC.

c. a majority of states.

Unit 2: McKenna offers to sell Lori her collection of hand-painted European tiles. Before Lori has a chance to accept, McKenna says, "Sorry, I changed my mind. I'm not going to sell the tiles." McKenna has just made: a. a rejection. b. restitution. c. a revocation. d. a counteroffer.

c. a revocation.

Unit 2: Diana tells Crystal, "I think I'll sell that camping gear I bought for hiking the Pacific Trail for $250. I'm never going to make that trip." This constitutes: a. an agreement to agree. b. a counteroffer. c. a statement of future intent. d. a valid offer.

c. a statement of future intent.

Unit 4: Amy and Reese are selling their home to Mitch and Kris. They sign a deed that affords the strongest covenants and provides the most protection to Mitch and Kris. This is called: a. a quitclaim deed. b. a recording deed. c. a warranty deed. d. a special warranty deed.

c. a warranty deed.

Unit 2: Acme Co. just completed the incorporation process and received its articles of incorporation from the state. At the first organizational meeting of the new company, the officers' most important task is to: a. amend the articles of incorporation. b. create a hiring policy. c. adopt bylaws. d. determine the details of the stock sale.

c. adopt bylaws.

Unit 5: A judgment is entered against Michael in Anderson's case against him. Michael appeals to an intermediate appellate court, which agrees to review the case. On appeal, most appellate courts: a. remand the case for new trial. b. reverse the trial court decision. c. affirm trial court findings of fact. d. modify trial court findings of fact.

c. affirm trial court findings of fact.

Unit 2: Janice is shopping for something to put on the floor of her dairy barn that won't cause the cows to slip but will clean it up a bit. She goes to Gabe's Farm Store and Gabe tells Janice that he has just the thing, a special rubber flooring that works well in dairy barns and has an anti-slip property to it. Based on Gabe's comments, Janice buys the floor covering and installs it. Right away, two dozen cows slip, fall, and are injured on the slippery rubber. Janice sues Gabe, contending that Gabe breached: a. an implied warranty of merchantability. b. a warranty of title. c. an implied warranty of fitness for a particular purpose. d. a void warranty.

c. an implied warranty of fitness for a particular purpose.

Unit 3: Napoleon owns Napoleon's Construction and agrees to renovate Mrs. Cernan's bathroom. She will provide him with the plans and then he will do the work in the manner he determines is most cost effective and appropriate. Napoleon is likely to be classified as: a. a disclosed principal. b. an employee. c. an independent contractor. d. a partially disclosed principal.

c. an independent contractor.

Unit 2: Carmen is the vice president for marketing for Nita's Web Design. She also sits on the board of directors. Carmen would be considered: a. an outside director. b. ineligible to serve on the executive committee. c. an inside director d. an illegal director.

c. an inside director

Unit 1: Monroe is reviewing an appellate case for class and must correctly identify the parties to the case. The party appealing the case is known as the: a. appellee. b. defendant. c. appellant. d. respondent.

c. appellant.

Unit 3: Mark is a famous syndicated radio personality for TalkRadio. He has a distinctive voice and manner of speaking. MoreTalk hires Gordon, who sounds nearly identical to Mark, to host a competing show. MoreTalk encourages Gordon to imitate Mark as closely as possible while on the air. MoreTalk is most likely to be liable for: a. conversion. b. defamation. c. appropriation. d. wrongful interference with a business relationship.

c. appropriation.

Unit 3: Andy decides to go skydiving for his 40th birthday. He signs a waiver, boards the plane and prepares for the jump. Everything is going smoothly until just before landing, a down draft forces Andy down at a much faster rate into the ground, causing injury to both of his legs. Andy will likely not be able to recover for his injuries under the defense of: a. transferred intent. b. negligence per se. c. assumption of the risk. d. consent.

c. assumption of the risk.

Unit 2: Prasanna contracts to buy 10,000 CDs from Louis. Louis ships the CDs to Prasanna. The CDs are exactly as stipulated in the contract and Prasanna accepts them. If Prasanna fails to pay Louis for the CDs, Louis can: a. cure the tender. b. reject the goods. c. file a lawsuit to recover the purchase price. d. cover the sale.

c. file a lawsuit to recover the purchase price.

Unit 2: Richie goes to Buster's Trailers to purchase a trailer. He tells Buster that he plans to use the trailer to haul fish from the ocean to his wholesalers. The sales contract has a disclaimer in large, boldface type, "Trailers sold with no warranties of merchantability or of fitness for a particular purpose." Richie signs the contract. The fish slosh around in the trailer and are killed and worthless by the time they get to market. When Richie sues Buster for his losses, the disclaimer will: a. not be allowed, and Richie will most likely prevail because Buster, a merchant, had a duty to advise against using a trailer. b. not be allowed because it is fraudulent; merchants may not disclaim liability. c. be allowed, and Richie will most likely not prevail. d. be allowed, but because Richie used the trailer for a particular purpose Richie will likely prevail.

c. be allowed, and Richie will most likely not prevail.

Unit 3: Tammy, age sixty-three, works for Westcon, Inc. Tammy has been showing up for work late, and has a habit of placing confidential work files on her personal computer in violation of company policy. Jack, Tammy's manager, fires Tammy for these reasons. Jack also considers an incidental benefit of Tammy's discharge the fact that they can get someone younger in Tammy's position. If Tammy files an Age Discrimination in Employment Act (ADEA), she will: a. be successful in court because she has a claim of disparate-impact discrimination. b. be successful in court as age was an incidental factor in Tammy's discharge. c. be unsuccessful in court because Tammy's age was not the "but for" reason for her discharge. d. be successful in court as age Tammy's employer had a "mixed motive" for discharging an employee.

c. be unsuccessful in court because Tammy's age was not the "but for" reason for her discharge.

Unit 2: Patrick agrees to pay Anna $25,000 in exchange for Anna taking Patrick's hazardous waste and surreptitiously dumping it on the property of a competitor. After Anna dumps the waste, Patrick refuses to pay. This contract will: a. be enforced because it has sufficient consideration and is a bargained-for exchange. b. be enforced because both parties agreed to the contract and will be held accountable to its terms. c. be void from the outset and thus unenforceable. d. be unenforceable due to usury laws.

c. be void from the outset and thus unenforceable.

Unit 3: Judy's cousin, Skip, tells Judy that he will sell her car for her when she leaves the country for a church mission for two years. Skip tells her that he will do it for no charge to her. While Judy is gone, Skip forgets about the agreement and does not attempt to sell the car. Judy: a. can sue Skip for breach of contract for failure to perform. b. cannot sue Skip because they are cousins. c. cannot recover anything from Skip because he had no duty to perform since he was a gratuitous agent. d. can sue Skip under tort law because he was negligent in not selling the car.

c. cannot recover anything from Skip because he had no duty to perform since he was a gratuitous agent.

Unit 1: Carly is a manager at a business. When she has a job opening, she regularly does Internet searches on applicants to see if they have social media accounts. If so, she reviews whatever she can access. Her findings, or lack of findings, go into her notes and may influence whether she interviews and ultimately hires an applicant. Carly's actions are: a. clearly illegal and clearly unethical. b. legally uncertain but clearly ethical. c. clearly legal but ethically uncertain. d. clearly legal and clearly ethical.

c. clearly legal but ethically uncertain.

Unit 1: Regan owns and manages The Coffee Shoppe. She likes to experiment with different management styles and life philosophies. She recently studied Kantian ethics and asks her employees to begin following Kant's categorical imperative at work. This means that the employees should: a. treat others as they wish to be treated. b. follow all city ordinances and state and federal law, and no more. c. consider their actions in light of the consequences if everyone in society acted the same way. d. consider or weigh all of the costs and all of the benefits of their actions before making decisions.

c. consider their actions in light of the consequences if everyone in society acted the same way.

Unit 3: Russell reserves the domain name "juliaroberts.com" and creates a fan Web site dedicated to Julia Roberts, the actress. Russell eventually sends Ms. Roberts a letter offering to sell her the domain name. Russell is a: a. tortfeasor. b. typosquatter. c. cybersquatter. d. cyberstalker.

c. cybersquatter.

Unit 2: Keenan wants to incorporate his business. He buys business cards and labels with the name "Keenan's Kwips" on them and begins selling gag gifts. Keenan follows the rules for incorporation in his state, including a statement that he is the sole shareholder, and he is granted a certificate of incorporation. The only problem is that Keenan has an error in his address on all the paperwork. Keenan's business is probably a: a. public corporation. b. de facto corporation. c. de jure corporation. d. corporation by estoppel.

c. de jure corporation.

Unit 1: Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He grows more lettuce than is allowed under the new law and is fined. He sues to have the law declared unconstitutional, arguing that he grew the allowed amount for sale and then grew some extra for his family to use in personal consumption. The federal courts are likely to: a. declare the law constitutional because Milton's actions impact interstate commerce in a small way. b. declare the law unconstitutional because Milton's actions are solely intrastate. c. declare the law constitutional because Milton's actions substantially affect interstate commerce. d. declare the law unconstitutional because Milton's actions do not impact interstate commerce in any way.

c. declare the law constitutional because Milton's actions substantially affect interstate commerce.

Unit 1: The secretary of commerce for the United States and the minister of commerce and industry for India are not authorized to sign treaties on behalf of their nations. Even so, the two officials work together to identify and articulate historic and current commercial practices that are common to both countries and that are routinely accepted by companies in both countries. In doing this, the two officials are: a. merely documenting practices for historical purposes. b. creating a helpful how-to guide for doing business in each other's nation. c. establishing a foundation of custom as a source of international law between their nations. d. establishing the foundation for an international organization related to commerce.

c. establishing a foundation of custom as a source of international law between their nations.

Unit 2: Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that Julius can't afford her boat anyway. Rachel says, "I'd sell my boat to you for $20,000." To Rachel's surprise, Julius responds "Ok, it's a deal." Rachel does not want to sell the boat to Julius for any price. Julius and Rachel have: a. not formed a valid contract, because Rachel did not want to sell the boat for any price. b. not formed a valid contract because of lack of definiteness in the contract terms. c. formed a valid contract, because Rachel's outward expressions showed the formation of a contract. d. formed a valid contract, because Julius expressed outward interest in the boat.

c. formed a valid contract, because Rachel's outward expressions showed the formation of a contract.

Unit 2: Sophie buys a tropical bird from Henry's bird store. Henry says, "It is extremely rare." Sophie asks if the bird is on the endangered species list. Henry knows it is on the list, but he tells her it is not. Government officials later tell Sophie that she purchased a bird that individuals may not own, the bird is confiscated, and she is fined for possessing it. To recover the price of the bird and the cost of fines, Sophie can sue Henry for: a. undue influence. b. negligence. c. fraudulent misrepresentation. d. mistake, which allows the contract to be rescinded.

c. fraudulent misrepresentation.

Unit 2: Mark is a director of Bromley Corp. Mark also owns a printing company named BooksMark. Bromley Corp. needs a marketing brochure printed. If BooksMark is being considered as the printer for that brochure, Mark must: a. do nothing other than vote for the contract. b. never enter into a contract like this. c. fully disclose his interest to the other board members and abstain from voting on the matter. d. resign from the board if anyone questions the conflict of interest.

c. fully disclose his interest to the other board members and abstain from voting on the matter.

Unit 2: Paul goes to a bar, has seven shots of whiskey, and then goes to an electronics store and buys a $2,500 stereo system. If he later wants to avoid the contract based on his intoxication when he made the purchase, he will need to prove that: a. his capacity to act would be classified as "legally unstable." b. the store clerk knew he was intoxicated. c. he lacked the mental capacity to enter into the contract. d. a reasonable person would have known that he was intoxicated.

c. he lacked the mental capacity to enter into the contract.

Unit 5: While hospitalized at the Washoe Medical Center, Swisher fell out of bed and died. Her family sued Washoe. Judges are required to remain impartial and to provide a courtroom that promotes order and decorum. During voir dire at the trial, when the plaintiff's attorney arrived late after a break, the trial judge led the prospective jurors in a standing ovation. The judge joked with one juror whom he had known in college and endorsed another juror's business. The judge's comments were made in the presence of the plaintiff and the defendant, their attorneys, and all prospective jurors. The jury found for Washoe. The plaintiff moved for a new trial, but the judge denied the motion. The plaintiff appealed, arguing that the tone set by the judge prejudiced the plaintiff's right to a fair trial and violated Nevada's Code of Judicial Conduct, which requires judicial neutrality. The appellate court most likely: a. held that the plaintiff's attorney should have filed a motion for judgment on the pleadings. b. held the Nevada judicial code unconstitutional. c. held that the Nevada judicial code applied and ordered a new trial. d. held that the Nevada judicial code did not apply and refused to order a new trial.

c. held that the Nevada judicial code applied and ordered a new trial.

Unit 3: Gage and his brother Richard have robbed several stores. When they attempt to rob Al's Deli, Al shoots Richard in the foot. Richard is caught and arrested. Gage continues committing crimes, and Richard is offered immunity in return for testifying against his brother. If Richard accepts, a. he must assert his Fifth Amendment right against self-incrimination. b. he is immune from prosecution for a period of five years. c. his testimony will not be used against him. d. he can assert his Fifth Amendment right against self-incrimination.

c. his testimony will not be used against him.

Unit 2: Ruis Corporation, a publicly held corporation, has thirty-five members on its board of directors. In order to conduct business efficiently, the chairman of the board is proposing that five committees be created: the executive committee, the human resources committee, the marketing committee, the research and development committee, and the sales committee. Seven members of the board would serve on each committee and each board member would serve on only one committee. This is: a. illegal, because the Sarbanes-Oxley Act requires an international compliance committee. b. legal, because the board may function as it sees fit within the boundaries of the bylaws. c. illegal, because the Sarbanes-Oxley Act requires an audit committee. d. illegal, because the federal law sets a maximum of four board committees per corporation.

c. illegal, because the Sarbanes-Oxley Act requires an audit committee.

Unit 3: Yakov hires Melina to be his Vice President for Marketing. The job description is pretty broad but does not include the ability to hire or terminate lower-level employees in the Marketing division. If Melina has this power, it is based on her: a. apparent authority. b. obvious authority. c. implied authority. d. express authority.

c. implied authority.

Unit 3: Henry is distressed after losing his job, so he visits a local tavern and has seven drinks. While driving home at a high rate of speed, Henry collides with Irene's car, killing her. Henry has likely committed: a. mayhem. b. murder. c. involuntary manslaughter. d. trespass to land.

c. involuntary manslaughter.

Unit 3: April owns a diamond ring that she often takes off and places on her desk while she works. She is usually careful to put it back on whenever she leaves her desk. One day, she went to lunch and forgot to take the ring. Olivia picked up the ring and did not return it to April. Olivia has probably committed the crime of: a. forgery. b. arson. c. larceny. d. battery.

c. larceny.

Unit 2: Tina designed a new type of handbag that has proven to be very popular. She begins manufacturing these handbags on a large scale and considers her options for setting up a business to market the bags nationwide. She opts for a distributorship franchise, under which she will: a. grant dealers the right to her trade name. b. avoid certain taxes and fees. c. license distributors to sell her handbags. d. pay for one half of the franchisee's start-up costs.

c. license distributors to sell her handbags.

Unit 1: Wai-tung, a Chinese firm, manufactures automobiles. In order to get a foothold in the American market, Wai-tung sells its cars for several thousand dollars below what it charges in China. Wai-tung: a. may continue to sell its cars at the discounted price for six months, after which a tariff may be imposed. b. is subject to American antitrust laws. c. may have antidumping duties imposed on its imported goods. d. is subject to the quotas imposed by the United States on goods sold below market value.

c. may have antidumping duties imposed on its imported goods.

Unit 2: Valerie contracts with Esteban, who agrees to build a stone retaining wall and drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Esteban breaches the contract, Valerie is under a legal obligation to: a. absorb all of the costs associated with the property erosion caused by Esteban's breach. b. do nothing, because she is the innocent party and thus has no legal duties. c. mitigate her damages. d. wait until Esteban is prepared to build the wall and drain.

c. mitigate her damages.

Unit 2: Tyler, who runs his business in the United States, enters into a contract with Abigail, a business owner in Australia. Tyler offers to sell factory equipment to Abigail for $30,000. Abigail responds that she will, "take it, but you have to give me a warranty on top of it." Under the CISG, Tyler and Abigail have: a. no contract because of the UCC. b. a contract for the factory equipment only. c. no contract because of the mirror image rule. d. a contract for the factory equipment and the warranty.

c. no contract because of the mirror image rule.

Unit 2: Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and wants to delegate her duty to do the painting to Patty, her top student and a very talented artist. If Alec objects, a court likely will: a. honor the delegation only if the delegation was in writing. b. not honor the delegation because, as a general rule, delegations are not allowed. c. not honor the delegation because the contract is based on personal skill. d. honor the delegation because, as a general rule, delegations are allowed.

c. not honor the delegation because the contract is based on personal skill.

Unit 3: Kera is an hourly employee of Xeon, Inc., who earns a wage of $10.00 an hour. During a busy season, Kera works fifty hours in one week. Xeon pays Kera $11.00 an hour for her overtime pay. Xeon is: a. in conformance with the Fair Labor Standards Act because Kera only worked fifty hours in one week, and thus she is not qualified for overtime pay. b. not in conformance with the Fair Labor Standards Act because Xeon is obligated to pay no less than 2.5 times Kera's regular pay for hours she worked over forty in one week. c. not in conformance with the Fair Labor Standards Act because Xeon is obligated to pay no less than 1.5 times Kera's regular pay for hours she worked over forty in one week. d. in conformance with the Fair Labor Standards Act (FLSA) because Xeon is paying an overtime rate.

c. not in conformance with the Fair Labor Standards Act because Xeon is obligated to pay no less than 1.5 times Kera's regular pay for hours she worked over forty in one week.

Unit 2: Johanna agrees to purchase Jessie's land so that she can build a golf course. They write a contract, and Johanna transfers the deed to Jessie. Jessie pays Johanna the entire purchase price. Johanna and Jessie have discharged their contract by: a. lapse of time. b. concurrence. c. performance. d. breach.

c. performance.

Unit 1: Bernie's leather tanning company generates a significant amount of hazardous waste in the form of chemicals used to tan the hides of animals into leather. In order to properly dispose of this chemical waste, Bernie must transport the waste to a hazardous waste dump in the next county. In order to comply with RCRA, he must: a. reduce the amount of waste he generates by 50% every three years. b. transport the waste on a daily basis so it is not at risk of a spill on his property. c. properly label and package the material before transport to ensure proper care is taken by all parties along the way. d. transport the waste no more than one time every six months to reduce the risk of a spill on the highway.

c. properly label and package the material before transport to ensure proper care is taken by all parties along the way.

Unit 2: Suzy signs a written agreement with Phillip, giving Phillip the right to cast Suzy's votes for a certain group of people nominated for the Syllibar Corporation board of directors. This agreement between Suzy and Phillip is known as a: a. subpoena. b. derivative agreement. c. proxy. d. cumulative voting agreement.

c. proxy.

Unit 2: Preston wants to be his own boss and is considering starting a business. He has to decide which form of business organization to adopt and will most likely consider all of the following except: a. tax issues. b. the various types of liability to which owners are subject. c. publicity and public relations. d. his need for start-up capital.

c. publicity and public relations.

Unit 3: Cheryl knows that Jake is looking to buy a new scooter. She sees one that would be perfect and negotiates with the seller on Jake's behalf. She signs a contract for the scooter using her name but clearly indicating that she is working for Jake. She actually is not. When Jake sees the scooter, he loves it and agrees to pay the contract price. If agency exists in this situation, it is agency by: a. agreement. b. operation of law. c. ratification. d. estoppel.

c. ratification.

Unit 5: Cal-Ban 3000 was a weight-loss drug made by Health Care, a Florida corporation. Tart, a citizen of North Carolina, read ads for the product in a newspaper and bought Cal-Ban in North Carolina from a local pharmacy. Within a week of taking the supplement, Tart suffered a ruptured colon. Alleging that the injury was caused by Cal-Ban, Tart sued Health Care in a North Carolina state court. Health Care asked the court to dismiss the case, arguing that the North Carolina court could not exercise personal jurisdiction over Health Care. The court most likely: a. dismissed the case because the dispute should be tried in a federal court, given that the defendant and the plaintiff were from different states. b. dismissed the case because North Carolina did not have personal jurisdiction over the defendant, so Tart would have to sue in the Florida courts. c. refused to dismiss the case, because the defendant had placed the product in the stream of commerce in North Carolina and was subject to being sued in North Carolina. d. refused to dismiss the case, because it was not fair to make Tart travel to Florida for trial.

c. refused to dismiss the case, because the defendant had placed the product in the stream of commerce in North Carolina and was subject to being sued in North Carolina.

Unit 3: The Scooter Store notified its employees at 5:00 P.M. on Friday that it was laying off two-thirds of its workforce as of that day and told them not to come in on Monday. It failed to provide advance notice to anyone and in doing so likely violated: a. the Worker Notification Act. b. the Worker Readjustment Act. c. the Worker Adjustment and Retraining Notification Act. d. the Worker Retention Act.

c. the Worker Adjustment and Retraining Notification Act.

Unit 4: A&O is the software designer of the most popular video game in the country. A&O decides to develop the game into a series and have its best designer, Laz, head the team of programmers working on the next game. Laz quits and goes to work for GameWare, taking some files for the new game with him. Under trade secret laws, A&O has protection for: a. only the information contained in the files for the new game. b. only Laz's ideas concerning the design of the game. c. the information in the files and Laz's ideas for the game design. d. none of the information in the files.

c. the information in the files and Laz's ideas for the game design.

Unit 4: Buster invents a new camp grill that he names Buster's Burger Blaster. He writes specific instructions about how to use it in a manual that comes with every grill. Buster can obtain a trademark for: a. the grill only. b. the grill, the name, and the manual. c. the name only. d. the manual only.

c. the name only.

Unit 2: The seven members of Fast Commerce, LLC, want to start their company as quickly as possible. The members, in their haste, do not bother to draft an operating agreement. If a dispute arises between two of the members: a. the federal uniform LLC statute will apply to the dispute. b. in many states, the state LLC statute will not apply because an operating agreement is required for an LLC to exist. c. the state LLC statute will apply to the dispute. d. the LLC will dissolve.

c. the state LLC statute will apply to the dispute.

Unit 4: BKS Incorporated has a research and development (R&D) facility in the Arizona desert. Only authorized persons are allowed in the facility, and all employees and guests must sign a non-disclosure agreement. BKS likely considers the ideas of the people in their R&D division to be: a. copyrighted. b. patented. c. trade secrets. d. trademarked.

c. trade secrets.

Unit 2: Nikki and Jim own a corporation together. Nikki owns 48 shares of stock and Jim owns 52. They consider themselves investors, so they elect a board of three directors to oversee the business. To ensure that Nikki can elect at least one director, the corporation should: a. set aside one director for Nikki, one for Jim, and select the third by random drawing. b. be the directors themselves. c. use cumulative voting. d. use straight voting.

c. use cumulative voting.

Unit 3: When Kimberly begins working for Pharmco Industries, the company tells her that at a future date, after so many years of employment with the company, she can receive retirement pay. Her rights to receive pay upon retirement would be considered: a. inferred. b. sheltered. c. vested. d. accrued. d. accrued.

c. vested.

Unit 1: Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse. Farm and Ranch repackages the product, relabeling it as "Farmer's Friend," and states on the label and in advertisements that it is a new product, "guaranteed to kill blackberries." Farm and Ranch has: a. not violated any law. b. violated the CERCLA and is subject to civil and criminal penalties. c. violated the FIFRA and is subject to civil and criminal penalties. d. violated the RCRA and is subject to civil and criminal penalties.

c. violated the FIFRA and is subject to civil and criminal penalties.

Unit 2: Randolph contracts to buy a load of high-quality granite rocks for his landscaping company. The contract does not contain any explicit agreements regarding when the passage of title will occur. Under the provisions of the Uniform Commercial Code (UCC) 2-401, the passage of title will occur: a. twenty-four hours after delivery of the rocks. b. at the time the contract is made. c. when the seller delivers the rocks to Randolph. d. when Randolph pays for the rocks.

c. when the seller delivers the rocks to Randolph.

Unit 4: Samuel writes a book and files for copyright protection in the United States. In order for Samuel to receive copyright protection in France and Germany, Samuel: a. will receive international copyright protection pursuant to the Paris Convention. b. cannot receive protection in other countries once the U.S. copyright application has been filed. c. will receive international copyright protection pursuant to the Berne Convention. d. must file new and separate copyright applications in both countries.

c. will receive international copyright protection pursuant to the Berne Convention.

Unit 2: Matthew has a contract to sell a piece of real estate to Betty for $35,000. Betty breaches the contract and Matthew immediately sells the land to someone else at the best price he can get: $31,000. Matthew can recover: a. specific performance. b. $35,000 as the contract price on the land. c. nothing, because he was able to sell the land to someone else. d. $4,000 as the difference between the market price and the contract price.

d. $4,000 as the difference between the market price and the contract price.

Unit 1: Patrick, the human resources manager at Acme Company, must decide how to cut personnel costs. This decision will harm employees who are laid off or fired. Patrick must balance the interests of employees who have been loyal to the firm for a long time against the interests of: a. the state courts. b. Acme's competitors. c. the city council. d. Acme's shareholders.

d. Acme's shareholders.

Unit 2: Jill buys a refrigerator and pays the company to have it delivered. While the contract covers both a good and a service, it likely is governed by: a. common law. b. Article 2B of the UCC. c. Article 2A of the UCC. d. Article 2 of the UCC.

d. Article 2 of the UCC.

Unit 1: SPACE US is a private U. S. company with a mission of exploring and colonizing space. Without any conversation or disclosures to the government, SPACE US builds a rocket which it sends up into space to plant a satellite that will scan the skies for an appropriate location for SPACE US's first colony. At this point SPACE US has violated: a. the Liability Convention. b. the Rescue Agreement. c. no law. d. Article VI of the Outer Space Treaty.

d. Article VI of the Outer Space Treaty.

Unit 1: In 1961, the Executive Director of the Planned Parenthood League of Connecticut was arrested and convicted of providing contraceptive information and materials to married people in violation of state law. The director appealed her conviction and the United States Supreme Court found that the law violated a constitutional right to privacy. The Constitution never mentions privacy, but the justices found that the right is embedded in several amendments. Which of the following is NOT one of those amendments? a. Third b. Fifth c. First d. Eighth

d. Eighth

Unit 4: In mid-July, the Jeffersons sell their home to the Trainers. The Jeffersons know that their oil furnace doesn't work. The: a. rule of caveat emptor, or "buyer beware," applies. b. Jeffersons don't have to disclose the problem because a broken furnace does not affect the value of a home. c. Jeffersons have no obligation to disclose the problem. d. Jeffersons have a duty to disclose the problem.

d. Jeffersons have a duty to disclose the problem.

Unit 4: Roger McDonald decides to open up a series of liquor stores in his home state. He calls his chain McDonald's and uses a large, blue, curvy M as his logo. McDonald's Corporation, the famous fast food restaurant chain, wants him to stop using the curvy M, as it resembles McDonald's Corporation's famous golden arches. Assuming that the association with a liquor store would likely harm McDonald's Corporation's reputation, McDonald's Corporation wants to stop Roger from using the blue M. Which statement is true? a. McDonald's can stop him from using the blue M only if there is a substantial likelihood of confusion by consumers. b. McDonald's cannot stop him from using the blue M because McDonald's cannot trademark an entire letter of the alphabet. c. McDonald's cannot stop him from using the blue M because it is not identical to the golden arches. d. McDonald's can stop him from using the blue M if the similarity between the marks creates an association between them.

d. McDonald's can stop him from using the blue M if the similarity between the marks creates an association between them.

Unit 1: Geo Sox, an American company, agreed to sell copper electric cables to a state owned company in Nigeria. Geo Sox was given very specific manufacturing requirements and had to invest in new machinery to meet the requirements. Once the order was processed, the Nigerian electric company repudiated the contract and then claimed immunity under the Foreign Sovereign Immunities Act (FSIA). However, Geo Sox might prevail in court because: a. the contract included a comity provision. b. the North American Free Trade Agreement (NAFTA) prohibits application of the FSIA to African nations. c. the government of Nigeria cannot defend itself without having a subsidiary of its electric company based in the United States. d. Nigeria engaged in strictly commercial activities.

d. Nigeria engaged in strictly commercial activities.

Unit 1: Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpentry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations? a. Yes, because ethical obligations require only legal behavior. b. No, because ethics is too hard to define. c. Yes, because legal standards are stricter than ethical standards. d. No, because legal compliance is regarded as the moral minimum.

d. No, because legal compliance is regarded as the moral minimum.

Unit 3: Julie's father has been diagnosed with dementia and Julie needs to be home to take care of him for six consecutive weeks. Julie asks her employer, BigCo, for six weeks of medical leave under the Family and Medical Leave Act (FMLA) and for her regular salary to be paid. Is BigCo obligated to grant this request? a. No, the Family and Medical Leave Act only requires granting employees three weeks of unpaid medical leave per year. b. Yes, the Family and Medical Leave Act requires granting employees twelve weeks of paid medical leave per year for a qualifying reason. c. No, the Family and Medical Leave Act only grants medical leave for treatment of one's own serious health condition, not the conditions of others. d. Partially yes, as the Family and Medical Leave Act requires granting employees twelve weeks of medical leave per year for a qualifying reason. However, that leave does not have to be paid leave.

d. Partially yes, as the Family and Medical Leave Act requires granting employees twelve weeks of medical leave per year for a qualifying reason. However, that leave does not have to be paid leave.

Unit 3: Dean is not Paul's agent, but Paul tells Charlie that Dean has always been a good friend and can "handle any of my business affairs." If Dean were to later enter into a contract with Charlie on Paul's behalf, Dean would be acting under an: a. obvious authority. b. implied authority. c. express authority. d. apparent authority.

d. apparent authority.

Unit 2: Michael, Sarah, and Mindy are partners in a limited partnership that buys commercial real estate. Michael and Sarah are limited partners and Mindy is a general partner. Business is booming so Mindy asks Sarah for help. Sarah offers to buy land from LandInvest Co., and holds herself out as a representative of the limited partnership. Sarah drafts the contracts, participates in the negotiation, and completes the sale on her own. Sarah also takes on bookkeeping and related tasks to free up Mindy to locate new sellers. If a dispute arises with LandInvest Co. related to the contract and LandInvest Co. sues the limited partnership, it is possible that: a. All of the limited partners will held personally liable. b. Mindy will not be personally liable as a general partner. c. Sarah will not be held personally liable because she is a limited partner. d. Sarah will be held personally liable even though she is a limited partner, and Mindy will also be held liable as a general partner.

d. Sarah will be held personally liable even though she is a limited partner, and Mindy will also be held liable as a general partner.

Unit 3: Stephanie stands in front of her home with a bullhorn shouting that her new neighbor, Kyle, has just been released from prison for child molestation. Stephanie knows this statement is false. Under what legal theory may Kyle recover damages from Stephanie? a. Fraud b. Libel c. Appropriation d. Slander per se

d. Slander per se

Unit 4: Rachel has just finished the business plan for a franchise that she expects will have international appeal. She is concerned about protecting the trade name of the business. Which of the listed answers provides her an avenue for registering a trade name internationally? a. The TRIPS Agreement b. The Anti-Counterfeiting Trade Agreement c. The Berne Convention d. The Madrid Protocol

d. The Madrid Protocol

Unit 2: Jackson offers to pay Casey $50 for his used business law textbook. Casey agrees to sell it for that amount. They agree to meet one week later to exchange the money for the book. Casey and Jackson have formed: a. a formal contract. b. no contract. c. a unilateral contract. d. a bilateral contract.

d. a bilateral contract.

Unit 1: Alpha Corporation is interested in expanding its operations to South Africa. Alpha finds a South African company that is in a similar industry and partners with it to do business. Alpha owns part of the operation and the South African company owns most of it. The two share in profits and liabilities in proportion to their ownership. This is most likely: a. a license. b. a subsidiary. c. a foreign manufacturing plant. d. a joint venture.

d. a joint venture.

Unit 2: Carmen contracted with Miles, who agreed to replace the carpets in her house. A clause in the contract provides that the only remedy for breach is replacement, repair, or refund of the purchase price. This type of provision in a contract is known as: a. a penalty clause. b. an exculpatory clause. c. a breach clause. d. a limitation-of-liability clause.

d. a limitation-of-liability clause.

Unit 2: Norman is a franchisee of MegaFurnishings, a furniture store. Norman breaches the franchise agreement. The contract states that the franchisee, Norman, must be given notice of termination but does not specify a time for termination in the agreement. In this case, MegaFurnishings must give: a. fourteen days to terminate, pursuant to federal franchise law. b. no time for termination at all, as the contract is silent. c. the opportunity to Norman to specify a termination period as Norman chooses. d. a reasonable time, with notice, to wind up the business.

d. a reasonable time, with notice, to wind up the business.

Unit 2: Sarah tells Jake that she is thinking about buying a car. Jake replies that he would like to sell Sarah one of his cars in a few weeks for a really good price. Jake has made: a. a valid counteroffer to Sarah's offer. b. a statement that is not a valid offer for lack of communication. c. a valid offer to Sarah. d. a statement that is not a valid offer for lack of definiteness.

d. a statement that is not a valid offer for lack of definiteness.

Unit 2: Collin offers to sell to Phillip an antique chest of drawers worth more than $2,500. Phillip agrees to buy the chest and signs a contract for the purchase. The price of the chest, however, is left out of the contract. Collin and Phillip have: a. no contract, because parties cannot leave the price term out of a valid contract under the Uniform Commercial Code (UCC). b. a valid contract only if Phillip is able to produce evidence that Collin defrauded him. c. a valid contract only if Collin refuses to name a price. d. a valid contract as long as the court can determine a reasonable price at the time for delivery.

d. a valid contract as long as the court can determine a reasonable price at the time for delivery.

Unit 3: Ben's employer reviewed his personal communications at work and then fired Ben. Ben has a viable claim for a violation of the Electronic Communications Privacy Act if his employer: a. reviewed Ben's work e-mail on his work computer. b. reviewed Ben's telephone calls on his work phone. c. accessed Ben's voicemail on his company-issued cell phone. d. accessed Ben's private Facebook page by guessing his password.

d. accessed Ben's private Facebook page by guessing his password.

Unit 4: Kenneth finds a home in town that has been abandoned and moves into it. He fixes broken windows, paints the house, tends the yard and garden, and puts his name on the mailbox by the street. He contacts the county office and pays the small property tax each year with cash. The owner of the house has no idea that Kenneth is there and so has never given him permission to be there, nor asked him to move out. After a certain amount of time, Kenneth may become the owner of the house and land through the doctrine of: a. permissive possession. b. eminent domain. c. condemnation. d. adverse possession.

d. adverse possession.

Unit 2: Micah and Jonah want to start a corporation but want to be taxed as a partnership. They should form: a. a benefit corporation. b. a C corporation. c. a public corporation. d. an S corporation.

d. an S corporation.

Unit 1: Sinto Investments is in the process of developing a 300-mile toll road that will run through federal land. Sinto will likely need: a. a national environmental policy act waiver. b. a Clean Air Act authorization. c. a CERCLA certificate. d. an environmental impact statement.

d. an environmental impact statement.

Unit 3: Jamel hires independent contractor Stevenson to create users' manuals for Jamel's small appliances. Jamel: a. automatically owns the copyright to the manuals because he paid Stevenson to create them. b. will violate Stevenson's rights if he requires a work for hire document. c. cannot own the copyright to the manuals because Stevenson created them. d. can create an agreement in writing that designates Stevenson's work as work for hire.

d. can create an agreement in writing that designates Stevenson's work as work for hire.

Unit 5: Robert, who lives in Ohio, files a lawsuit against Trading Post, a Washington company, in an Ohio state court. The Trading Post's only sales activity outside the state of Washington occurs via its Web site. According to the sliding-scale standard, the Ohio court can always exercise personal jurisdiction over out-of-state defendants based on Internet transactions if the court finds that the defendant has: a. interacted with at least three Ohio residents through its Web site. b. received a national trademark and domain name for its Web site. c. a commercial cyber presence. d. conducted substantial business with Ohio residents through its Web site.

d. conducted substantial business with Ohio residents through its Web site.

Unit 1: Micrylex Corp. (a U.S. corporation) signs a sales contract with Freiers, S.A. (a French company) in which Micrylex agrees to sell Freiers $15,000 worth of Micrylex products. This is an example of: a. technology licensing. b. manufacturing abroad. c. franchising. d. direct exporting.

d. direct exporting.

Unit 3: The University Smyth has an admissions policy that requires a certain number of points to be automatically awarded to minority applicants. This type of policy is likely a violation of the: a. access to education clause. b. advancement clause. c. establishment clause. d. equal protection clause.

d. equal protection clause.

Unit 3: Ethan is larger and stronger than Nate. Ethan threatens to beat Nate, punches Nate in the face, and knocks out Nate's tooth. Nate may bring a lawsuit against Ethan: a. for battery only. b. only if Nate can prove Ethan's motive. c. for assault only. d. for assault and battery.

d. for assault and battery.

Unit 3: Selma, an elderly widow, gives her young neighbor, Steven, written power of attorney. This means that Steven now: a. is a disclosed principal. b. has implied authority, but not express authority, to act as Selma's agent. c. is an undisclosed principal. d. has express authority to act as Selma's agent

d. has express authority to act as Selma's agent

Unit 4: Jason is the owner of a large tract of land. Jason sells the property to Bertha pursuant to a quitclaim deed. Bertha later learns that Michael has a right to extract minerals from the property. In this case, Bertha: a. may sue Jason for violation of the terms of the quitclaim deed. b. may exclude Michael from the property. c. may return the land to Jason and receive a refund of the purchase price. d. has no claim against Jason.

d. has no claim against Jason.

Unit 3: Erin works for a dry-cleaning company that has a contract with the U.S. government. To save on cleaning fluid, her boss orders her to wash some clothes that are supposed to be dry-cleaned in a washing machine. When the courier hired to pick up the cleaned garments arrives, Erin tells him about her boss' actions. Erin tells no one else about what is going on and is later fired. Erin: a. is protected by the whistleblower statute in her state because she spoke up about her employer's actions. b. is not protected by the state whistleblower statute. It is inapplicable because the contract was with the federal government. c. will be reinstated to her former job, because when she told the courier of the problem she was merely exercising her First Amendment right to free speech. d. is not protected by the whistleblower statute because she failed to inform the proper party of the contract violation.

d. is not protected by the whistleblower statute because she failed to inform the proper party of the contract violation.

Unit 3: John works at San Marino Food Store as an assistant store manager. John's boss, Michael, does not approve of John's interest in football. Michael believes that baseball is the better sport. As a result, Michael fires John. Assuming no other contractual relationship exists between John and his employer, John: a. is protected from wrongful discharge by the exception based on contract theory. b. is protected from wrongful discharge by the exception based on tort theory. c. is protected from wrongful discharge by the exception based on public policy. d. is not protected from discharge because he is an employee at will.

d. is not protected from discharge because he is an employee at will.

Unit 2: Orville and Perry are negotiating a franchise agreement. Perry, the potential franchisee, asks Orville for information about the franchise. In this case, Orville: a. must disclose all information about the franchise to Perry. b. is required to disclose specific facts related to the conduct of competitive franchises and the management of historical operations by the franchisor. c. is under no obligation to disclose information to Perry about the franchise. d. is required to disclose certain material facts that a prospective franchisee needs in order to make an informed decision concerning the purchase of a franchise.

d. is required to disclose certain material facts that a prospective franchisee needs in order to make an informed decision concerning the purchase of a franchise.

Unit 1: William runs a company that hauls toxic chemicals between factories. William is in compliance with all safety and environmental laws, but one tanker truck is in an accident and spills chemicals into a creek, which requires costly cleaning. William: a. is liable only if he acted negligently. b. is not liable if he acted with due diligence to see that no one was hurt. c. is not liable because the driver should have taken extra care in such a situation. d. is strictly liable for all harms.

d. is strictly liable for all harms.

Unit 1: Cora owns a Christian bookstore and tries to run it in accordance with Judeo-Christian values. Cora learns that Margo, one of her employees, has been taking money from the cash register and giving it to homeless people who come into the store. Under an analysis of duty-based ethics with a religious foundation, Margo's behavior is: a. acceptable because stealing is sometimes justifiable. b. not acceptable because of the categorical imperative. c. acceptable because it is compassionate. d. not acceptable because stealing is never justifiable.

d. not acceptable because stealing is never justifiable.

Unit 5: Dominic sues Gemalt, Inc. for negligence. At trial, Dominic testifies that he heard Francis, a manager at Gemalt, say that he thought Gemalt was acting carelessly. Dominic's testimony about Francis will most likely be: a. admitted as evidence because it is the testimony of the plaintiff. b. not admitted as evidence because it is not relevant to the issues. c. admitted as evidence because the jury is able to evaluate all evidence witnesses wish to present. d. not admitted as evidence because it is hearsay.

d. not admitted as evidence because it is hearsay.

Unit 3: A police officer notices the presence of a stolen car in Elena's driveway, seizes the car, and arrests her. Elena expected that her driveway was a private space. The Fourth Amendment's protection against searches and seizures would: a. not apply because the Fourth Amendment does not apply to private citizens. b. apply because Elena actually expects privacy. c. apply because Elena has a reasonable expectation of privacy. d. not apply because Elena's expectation of privacy is not one that society would consider legitimate.

d. not apply because Elena's expectation of privacy is not one that society would consider legitimate.

Unit 1: The government of Thailand passes a law stating that no U.S. dollars are allowed to enter the country. Americans traveling to Thailand therefore may not bring dollars with them. All dollars have to be exchanged for the Thailand domestic currency (Thai Baht) at any border crossing, airport, or train station. Laura, a U.S. citizen, files a lawsuit against Thailand in a U.S. court challenging the legality of this law. Laura will most likely: a. prevail because the law clearly violates the U.S. Constitution. b. not prevail because Laura has sovereign immunity. c. prevail because of the doctrine of comity. d. not prevail because of the act of state doctrine.

d. not prevail because of the act of state doctrine.

Unit 3: Francis drives a delivery truck for Weston Industries. In the middle of his delivery route, Francis stops to have a two-hour lunch with friends twenty miles away. While in the restaurant, Francis spills some water and another person falls on it. That person sues Weston Industries. To determine liability, a court would likely decide that Francis was acting: a. within the scope of employment. b. as a negligent agent. c. in misrepresentation of Weston Industries. d. outside the scope of employment.

d. outside the scope of employment.

Unit 2: Genevieve is a member of the board of directors and the chief financial officer of The Shoe Fits. Under the duty of care that she owes the corporation, Genevieve does not need to: a. attend presentations and make a careful study of business choices before making decisions. b. attend board meetings and oversee the corporation's employees and other officers. c. read reports and other materials to be reasonably informed. d. oversee every aspect of the business, including such things as ordering merchandise and arranging for janitorial services

d. oversee every aspect of the business, including such things as ordering merchandise and arranging for janitorial services

Unit 3: Sarah has to move from the East Coast to the West Coast for her job. Elmo agrees to act as Sarah's agent to sell her New York condo. As her agent, Elmo owes Sarah all of the following duties except: a. performance. b. notification. c. loyalty. d. payment.

d. payment.

Unit 3: Kevin has a reasonable expectation of privacy in sharing information online in all of the following situations except: a. entering credit-card information to purchase a product. b. sending an e-mail to his physician. c. entering personal banking information on a banking Web site. d. posting a photo on Twitter or Instagram.

d. posting a photo on Twitter or Instagram.

Unit 2: Bart contracts with Stanley to purchase 10,000 boxes of widgets for delivery next month pursuant to a destination contract. Under a destination contract, risk of loss passes when the widgets: a. are identified. b. are created. c. are delivered to the carrier. d. reach the buyer.

d. reach the buyer.

Unit 4: Amy Mendoza is a local radio personality who goes by the name "Amy in the A.M." on the air. She also uses that label in print ads to help radio listeners distinguish her show from the other morning radio shows in her town. Amy would be most likely to register her name as a: a. collective mark. b. certification mark. c. trade name. d. service mark.

d. service mark.

Unit 2: Ariana is an officer of New Stage, a theater production company. Without telling any other officers or the board of directors, she decides that New Stage should try to sell gardening tools over the Internet. She makes contracts with suppliers and a Web-based remote-order-fulfillment company. The only action that may not be taken is: a. the state attorney general may seek an injunction against the transactions or seek a dissolution order from a court. b. the shareholders can file a lawsuit on behalf of the corporation. c. the corporation can file a lawsuit against her for damages. d. she can file a lawsuit against the corporation for damages.

d. she can file a lawsuit against the corporation for damages.

Unit 4: Steve leases an apartment from Ashley. According to the lease, Ashley is required to keep all plumbing in working order. After Steve has lived in the apartment for four months, the toilet breaks. Ashley refuses to fix it and thereby makes it virtually impossible for Steve to continue to live there. The result of Ashley's inaction is that: a. she has committed waste on the property. b. there has been an illegal alteration. c. she has physically evicted Steve. d. she has constructively evicted Steve.

d. she has constructively evicted Steve.

Unit 5: Toybox, Inc., manufactures the Spintop, a toy that the company has discovered can cause harm. Before anyone is injured, Anne, a pediatric nurse who has not purchased a Spintop, files a suit against Toybox. In seeking to have the suit dismissed, Toybox's best argument is that Anne does not have: a. certiorari. b. judicial review. c. jurisdiction. d. standing to sue.

d. standing to sue.

Unit 1: Richard is a state appeals court judge. In making judicial decisions, Richard issues rulings which are consistent with precedents established in similar cases within his jurisdiction. Richard is following the principle of: a. laches. b. constitutional constructionism. c. courts of equity. d. stare decisis.

d. stare decisis.

Unit 1: A case on the subject of free speech on the Internet comes before a Wisconsin state trial court. It is a case of first impression, which means that no case involving the same issue has been decided by the Wisconsin courts. In deciding such a case, it would be considered the least proper for the judge to consider: a. cases from other jurisdictions. b. social values and customs. c. public policy. d. survey data from the local community.

d. survey data from the local community.

Unit 2: Andrea is a famous rodeo competitor. She contracts with Wild Ride Horse Sales to purchase five pedigreed horses, which are designated by their registration numbers. In this contract, identification: a. takes place when the horses are delivered to Andrea. b. takes place when Andrea pays in full for the horses. c. cannot take place in sales involving live animals. d. takes place when the contract is made.

d. takes place when the contract is made.

Unit 3: Wally is blind and would like to work for the Dairy Times writing articles on the dairy industry. Wally uses voice-recognition software that allows him to dictate articles to his computer. His computer is specially designed for visually impaired individuals. The Dairy Times interviews Wally but offers the job to a sighted person instead. Dairy Times may have violated: a. 42 U.S.C. Section 1981. b. the NLRA. c. the ADEA. d. the ADA.

d. the ADA.

Unit 1: Carla works for the EPA. Her department determines that a new rule is necessary to help protect seabirds along the California coast. Carla is in charge of the notice of the proposed rulemaking. This means she must draft a notice of the proposed rulemaking proceedings to be published in: a. the local newspaper. b. The Wall Street Journal. c. the EPA newsletter. d. the Federal Register.

d. the Federal Register.

Unit 3: Josh works for a federal governmental agency that requires drug testing as a condition of employment. He wants to challenge the constitutionality of the testing in court. For his case, Josh will attempt to rely on: a. the Second Amendment. b. the Eighth Amendment. c. the Thirteenth Amendment. d. the Fourth Amendment.

d. the Fourth Amendment.

Unit 1: Production, Inc., owns a manufacturing plant that generates some water pollution for which it has a permit. It intends to build a new plant that also will generate water pollution and for which it intends to get a permit. The pollution reduction technology that must be used at the old plant and at the new plant is: a. the best available control technology (BACT) at both plants. b. the best practical control technology (BPCT) at both plants. c. the best available control technology (BACT) at the old plant and the best practical control technology (BPCT) at the new plant. d. the best practical control technology (BPCT) at the old plant and the best available control technology (BACT) at the new plant.

d. the best practical control technology (BPCT) at the old plant and the best available control technology (BACT) at the new plant.

Unit 3: While Jessica, Ashley, and Bryan are snowboarding, they ignore warning signs indicating that they have left the marked trail and are entering dangerous territory where they become lost. While climbing the mountain as part of the rescue effort, a snowplow accidentally cuts a nearby town's main electrical cable. Due to the loss of her electric heat, Ethel, an elderly woman, dies of hypothermia. The boarders' negligence in ignoring the warning signs is: a. the proximate cause of Ethel's death. b. the superseding cause of Ethel's death. c. not the cause of Ethel's death. d. the causation in fact, but not the proximate cause, of Ethel's death.

d. the causation in fact, but not the proximate cause, of Ethel's death.

Unit 3: Selena signs a power of attorney appointing Kim only for the purpose of signing on her behalf relating to the sale of her house. The power of attorney will normally terminate based on: a. mutual agreement between Selena and Kim. b. a lapse of time. c. termination by either Selena or Kim. d. the purpose being achieved.

d. the purpose being achieved.

Unit 2: Kelly, a farmer, tells Farm Fresh Onions, Inc., that he will not be able to deliver the quantity of onions agreed to under the contract. If, before the time for performance has occurred, Farm Fresh Onions has not pursued an alternative source for onions and Kelly contacts Farm Fresh Onions to tell them that he can now perform: a. Farm Fresh Onions does not have to accept his retraction. b. Farm Fresh Onions can still sue for damages. c. Kelly is still in breach of contract. d. the repudiation is retracted.

d. the repudiation is retracted.

Unit 4: On the Border Mexican restaurants all have the same terra-cotta and turquoise color scheme, with posters of bullfighters and maps of Mexico on the walls. The restaurants also have identical furniture and menus, the wait staff wear similar types of clothing, and the same music plays in the background. The restaurants have a unique ambience, known in legal terms as their: a. trade secret. b. trademark. c. trade name. d. trade dress.

d. trade dress.

Unit 2: Print Quik, Inc., seeks punitive damages in a lawsuit against Reddy Supply Company. Generally, punitive damages may be recovered: a. in no circumstances. b. in almost all cases. c. only if the contract involved the sale of goods or the sale of land. d. when the breaching party's actions cause both a breach of contract and a tort.

d. when the breaching party's actions cause both a breach of contract and a tort.

Unit 2: Andrew is a soybean farmer. He has a contract with a cooperative company called Big Beans, Inc. Every year Big Beans agrees to buy all the soybeans that Andrew grows on his farm. Big Beans acquires an insurable interest in Andrew's soybeans: a. when the contract is made. b. when the soybeans are delivered to Big Beans' warehouse. c. when the soybeans are harvested. d. when the soybeans are planted.

d. when the soybeans are planted.