1. Billy knows that he can bring his case against Bob in a state court in Tennessee. He is unsure, however, of which county in which to proceed. Which of the following address the proper county?
Diversity jurisdiction
Subject-matter jurisdiction
Venue
In personam jurisdiction
Long-arm jurisdiction
2. The defendant responds to a complaint with an answer.
True
False
3. Assume a restaurant chain is forced to pay damages for breach of contract to a supplier. What type of law is involved?
Private law and civil law
Private law only
Public law only
Civil law only
Public, private, and civil law
4. How many circuits does the U.S. Court of Appeals have?
6
50
12
10
13
5. How is absolutism different from ethical relativism and situational ethics?
It applies virtue ethics and concentrates on the accepted values of the person at issue as well as those of the community involved.
It holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.
It applies corporate ethics principles.
It applies utilitarianism.
It holds that a cost-benefit analysis should be applied.
6. Ann, a Massachusetts resident, breached a contract entered into in Florida with Bruce. Bruce successfully obtains a judgment against Ann for $150,000 in a Florida state court. Ann lives in a nice apartment in Massachusetts, and her only substantial asset is a vacation beach house in North Carolina. Which of the following is true regarding Bruce's ability to obtain funds from a sale of the beach house?
Under federal law, Bruce will only be able to sell the beach house through attachment jurisdiction if after two years Ann has failed to satisfy the judgment, and any sums received in excess of amounts owed to Bruce go the Federal Housing Administration.
Bruce will be able to sell the beach house in North Carolina through attachment jurisdiction, but he must return to Ann any funds obtained in excess of amounts owed.
Bruce will be able to sell the beach house in North Carolina through attachment jurisdiction, and he is entitled to keep any funds obtained in excess of amounts owed.
Bruce is only entitled to obtain funds from property located in Florida, the location of the lawsuit, or from Massachusetts, Ann's domicile, and cannot benefit from the property in North Carolina.
Bruce is only entitled to obtain funds from property located in Florida, the location of the lawsuit, and cannot benefit from the property in North Carolina.
7. Which type of legal system exists in North Korea?
Civil legal system
Asian legal system
Islamic legal system
Socialist legal system
Common law legal system
8. What does the free-exercise clause of the First Amendment provide?
Government cannot make a law referencing religion in any manner.
Government cannot make a law prohibiting choice in relation to religion.
That only religions recognized when the First Amendment was passed are entitled to recognition and protection.
Government cannot make a law establishing a religion.
Government must establish laws respecting religion in order to prevent disruptive behavior such as terrorism and to allow free-exercise by the majority.
9. A ____ is a free trade area with the additional feature of a common external tariff on products originating from outside the union.
Customs union
External tariff union
International tariff union
Customs trade union
Free trade union
10. When is an arbitrator's decision called an "award"?
Only if both parties had lawyers because that terminology makes it easier for the lawyers to be paid.
Only if one party completely wins and there is no split decision.
Only if a money award is involved.
Always.
Never.
11. The ____ allows recognized governments of WTO member states to bring an action alleging a violation of the GATT.
Trade barrier agreement
World dispute resolution agreement
Dispute settlement understanding
Mediation/arbitration agreement
GATT violation accord
12. What does the Fifth Amendment's takings clause reference?
The right of the government to put individuals in jail for up to ten days without a hearing.
The requirement that the government pay the owner just compensation if the government wants to take private property for public use.
The right of the government to put individuals in jail for up to five days without a hearing.
The requirement that the government compensate an owner for anything destroyed during a search.
The right of the government to take private property for public use without paying compensation to the owner.
12. What does the Fifth Amendment's takings clause reference?
The right of the government to put individuals in jail for up to ten days without a hearing.
The requirement that the government pay the owner just compensation if the government wants to take private property for public use.
The right of the government to put individuals in jail for up to five days without a hearing.
The requirement that the government compensate an owner for anything destroyed during a search.
The right of the government to take private property for public use without paying compensation to the owner.
14. Which of the following is a practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter's home market?
Dumping
Subsidizing
Profit maximizing
Price cutting
Disposal
15. Negotiation is a bargaining process in which disputing parties interact informally, but only with lawyers, to attempt to resolve their dispute.
True
False
16. Which of the following is true regarding international organizations?
The International Bank for Reconstruction and Development (World Bank) and the International Money Fund are international organizations, but the United Nations is not an international organization.
The International Monetary Fund is an international organization, but neither the United Nations nor the International Bank for Reconstruction and Development (World Bank) are international organizations.
The United Nations and the International Monetary Fund are international organizations, but the International Bank for Reconstruction and Development (World Bank) is not.
The United Nations, the International Monetary Fund, and the International Bank for Reconstruction and Development (World Bank) are all international organizations.
The United Nations is an international organization, but the International Monetary Fund is not.
17. Which of the following is true regarding the protection of "fighting words" under the First Amendment?
Fighting words are protected speech under the First Amendment only if they are made in connection with a protest march.
Fighting words are protected speech under the First Amendment only if they are uttered by an individual citizen, not by a corporate representative.
Fighting words are unprotected speech under the First Amendment.
Fighting words are protected speech under the First Amendment only if they involve political activity.
Fighting words are protected speech under the First Amendment only if they are made in conjunction with self-defense.
18. By broadening the scope of actions covered and the definition of a public official, Congress amended the Foreign Corrupt Practices Act to conform to the antibribery convention adopted by the Organization for Economic Cooperation and Development.
True
False
19. Which of the following is true regarding the groups generally considered to be public figures for purposes of the public figure privilege to actions for defamation?
Entertainers, but not politicians, are generally considered to be public figures.
Politicians, but not entertainers, are generally considered to be public figures.
Politicians and entertainers, but not small business owners, are generally considered to be public figures.
Small business owners and politicians, but not entertainers, are generally considered to be public figures.
Small business owners, but not politicians or entertainers, are generally considered to be public figures.
20. The courts generally hold that landowners have a duty to protect individuals on their property.
True
False
21. Which of the following is true regarding the duty that a business owes to customers?
A business owes no duty to its customers other than to sell safe products.
A business owes a negligence per se duty toward customers.
A business only owes a minimal duty toward customers.
A business owes an absolute duty to keep its customers safe and is strictly liable for any harm.
A business has a duty of care to protect their customers against foreseeable risks about which the owner knew or reasonably should have known.
22. Which is the most difficult part of establishing the defense of assumption of the risk?
Showing that the plaintiff signed the contract assuming the risk without duress.
Showing a lack of contributory conduct on the part of other defendants.
Showing that the plaintiff assumed the risk of the actual harm suffered.
Showing that the defendant was aware that the plaintiff assumed the risk.
Showing that the plaintiff was aware of applicable law.
23. Under our criminal laws that exist today, white-collar crime is not punishable by imprisonment.
True
False
24. Which of the following is a condition required for the imposition of strict liability?
The activity is undertaken by a minor.
The activity involves negligence pertaining to the preparation of food products.
The activity is heavily regulated.
The activity involves trespassing in a way that reasonably leads to fright on the part of home owners.
The activity is so inherently dangerous that it cannot ever be safely undertaken.
25. The ________ standard is a measurement of the way members of society expect an individual to act in a given situation.
Reasonable person
Above-average person
Without error
Reasonable accountability
Perfect accountability
26. Which of the following is a doctrine that allows the plaintiff to recover damages despite proof of contributory negligence as long as the defendant had a final clear opportunity to avoid the action that injured the plaintiff?
There is no such doctrine.
Modified risk doctrine.
Assumption of risk.
Modified comparative doctrine.
Last-clear-chance doctrine.
27. Which of the following occurs when an individual is confined or restrained against his or her will for an appreciable period of time?
False imprisonment.
Qualified imprisonment.
Forcible detention.
False detention.
Contained detention.
28. Which of the following gives immunity to providers of interactive computer services for liability they might otherwise incur on account of material disseminated by them but created by others?
The Interactive Computer Services Protection Act of 2004.
The Communications Decency Act of 1996.
The Internet Communications Act of 2000.
The Internet Communications Protection Act of 1998.
The Blog Protection Act of 2001.
29. Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods?
Article 3
Article 2
Article 4
Article 7
Article 5
30. In a[n] _____________ contract, the offeror wants a performance to form the contract.
Anticipatory
Complete
Unilateral
Trilateral
Bilateral
31. The person who agrees to the terms of an offer made by the other party is called the _________.
Agreeor
Offeror
Agree
Inquirer
Offeree
32. Contract law is said to be based on a[n] ___________ theory, meaning that the existence and interpretation of the contract is based on the outward manifestations of intent by the parties.
Objective
Interpretive
Appearing
Unilateral
Subjective
33. Which of the following is sometimes referred to as an implied-in-law contract?
Express contracts and implied-in-fact contracts
Express contracts and quasi-contracts
Implied-in-fact contracts
Quasi-contracts
Express contracts
34. A tying arrangement occurs when the holder issues a license to use a patented object only if the licensee agrees to buy some non-patented product from the holder.
True
False
35. No duty to warn exists for dangers arising from either unforeseeable misuses of the product or from obvious dangers.
True
False
36. A ________________ is an agreement by the person who issues a letter to pay a sum of money on receipt of an invoice and other documents.
Letter of credit
Letter of simple contract
Negotiated credit instrument letter
Letter of acknowledgement
Letter of agreement
37. In order to proceed in a products liability action, a plaintiff must establish to a certainty that the product was not damaged after its purchase.
True
False
38. As recognized by the court in Sperry-New Holland v. John Paul Prestage and Pam Prestage, which of the following is true regarding the consumer expectations test for product defect?
That if the plaintiff, applying the knowledge of an ordinary consumer, sees the danger and can appreciate that danger, then he cannot recover for any injury resulting from that appreciated danger.
That a plaintiff cannot recover if a reasonable person would conclude that the danger in fact of the product, whether foreseeable or not, outweighs the utility of the product.
That a plaintiff may only recover if the plaintiff reasonably expected the manufacturer to have insurance, that the manufacturer did have insurance of the type to cover the injury at issue, and that the plaintiff had no part in causing the injury.
That a plaintiff may only recover if consumer oriented household goods are involved.
That a plaintiff may only recover if the plaintiff was the purchaser of the product causing injury.
39. Bob properly filed for a patent on a new machine with the U.S. Patent and Trademark Office. Alice who had been working on the same type of machine was furious when she learned about Bob's filing. She presented proof that she had actually invented the machine first but had not yet prepared the paperwork for filing at the time of Bob's filing. Assuming no wrongdoing on the part of either party and that they developed the machine independently, which of the following is the correct resolution of the dispute?
Under the America Invents Act, Alice will control rights to the patent because she was the first to invent.
Alice will win and possess all rights to the patent under common law because she first invented the machine.
Under common law, Alice and Bob will share rights to the patent on a 50-50 basis.
Under the America Invents Act, Bob will control rights to the patent because he was the first to file.
Bob will win and possess all rights to the patent under common law because he was the first to file for a patent.
40. As a general rule, when is revocation effective?
One day after it is made.
When it is mailed by the offeror.
When it is received by the offeree.
Two days after it is made.
Three days after it is made.
41. The __________ terms of a contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract.
Significant
Adequate
Identifiable
Material
Important
42. Courts interpret contracts using an objective standard.
True
False
43. Which of the following was the result in Alexander v. Lafayette Crime Stoppers Inc., the case in the text in which the plaintiffs sued for collection of reward money offered to catch a serial killer by the defending publications, and the publications defended on the basis that the plaintiffs failed to provide notice as required by the reward offers because the plaintiffs provided relevant information to law enforcement, not the defendants?
That reward offers cannot constitute offers and that, therefore, no contract was formed.
That the plaintiffs were entitled to prevail because by law they were required to contact law enforcement, not the defendants.
That defendants revoked the reward offer before it was accepted and that, therefore, no contract was formed.
That defendants did not receive acceptance of the reward offer and that, therefore, no contract was formed.
That the plaintiffs accepted the reward offers by performance when they provided information to law enforcement and were, therefore, entitled to recover.
44. Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of an offer?
The Complete Rule
The Matching Rule
The Mirror Image Rule
The Exact Rule
The Parallel Rule
45. Which of the following is true when an offer authorizes a certain mode of acceptance but does not require it, and an offeree attempts to accept the offer through a method other than the authorized means?
The acceptance becomes a counteroffer that the original offeror may or may not accept.
There is no contract, and the attempted acceptance is of no effect.
The contract is not formed until the acceptance is received by the offeror.
Authorizing but not requiring a certain type of acceptance has no effect, and the mailbox rule applies.
There is a contract only if the acceptance is received by the time that acceptance through the authorized means would have been received.
46. Which of the following is true regarding the termination of an offer based on a rejection?
An offer must remain open for at least three days before it is terminated following a rejection by an offeree.
An offer must remain open for at least two days before it is terminated following a rejection by an offeree.
Regardless of how long an offeror states that an offer will be held open, once the offeree rejects it, the offer is terminated.
An offer must remain open for at least one day before it is terminated following a rejection by an offeree.
Even on rejection, an offer is not terminated until the expiration of the time period for which it was originally to remain open.
47. Which of the following is an offer made by an offeree to an offeror relating to the same matter as the original offer and proposing a substituted bargain differing from that proposed by the original offer?
A counteroffer
An acceptance
A bilateral offer
A cross offer
A revocation
48. If the subject matter of an offer becomes illegal, what is the result?
There is no effect as long as the offer was made at least one day before the subject matter of the offer became illegal.
There is no effect as long as the offer was made at least thirty days before the subject matter of the offer became illegal.
There is no effect as long as the offer was made at least ten days before the subject matter of the offer became illegal.
There is no effect as long as the offer was made at least fifteen days before the subject matter of the offer became illegal.
The offer immediately terminates.
49. Which of the following is true regarding acceptable means of acceptance if no means of communicating an acceptance is specified in an offer?
If no means of communicating an acceptance is specified in an offer, acceptance must be done through the U.S. mail system.
If no means of communicating the acceptance is specified, any reasonable means is generally acceptable.
If no means of communicating an acceptance is specified in an offer, acceptance must be done either in person or through telephone communication.
If no means of communicating an acceptance is specified in an offer, acceptance must be done either through U.S. mail or through e-mail.
If no means of communicating an acceptance is specified in an offer, acceptance must be done either through the U.S. mail or through fax transmittal.
50. If the subject matter of an offer is destroyed, the offer _______.
Is extended for fourteen days
Is extended for thirty days
Is extended for seven days
Is extended for twenty-one days
Immediately terminates