1. Which of the following statutes provides that it is legal for employees to organize a union?
- The Norris-LaGuardia Act
- The Worker Adjustment and Retraining Notification Act
- The Labor-Management Relations Act
- The National Labor Relations Act
2. Which is true about the two kinds of discrimination that are actionable under Title VII?
- Disparate impact refers to individuals and disparate treatment refers to protected classes.
- Disparate impact and disparate treatment are both based on how the employer treats a protected class.
- Disparate impact and disparate treatment are both based on how the employer treats a specific individual.
- Disparate treatment refers to individuals and disparate impact refers to protected classes.
3. The legal effect of the presence of a superseding event is that:
- The plaintiff and defendant will share liability
- Intent must be proven in addition to elements of negligence
- The burden of proof shifts from the plaintiff to the defendant
- The defendant is not liable even if the plaintiff has proved all the elements of negligence.
4. Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute?
- Arbitration
- Mediation
- Minitrial
- Conciliation
5. Which of the following is a distinguishing feature of a common law legal system?
- An appeal process
- The sole source of law is a comprehensive civil code
- The making of law by the judges and the following of precedent
- Requiring guilt be proven beyond a reasonable doubt
6. The Sarbanes-Oxley Act was enacted as the result of:
- The terrorist attacks of Sept 11, 2001.
- The collapse of the housing market in the late 2000s.
- The failure of the savings and loans in the 1980s.
- The high profile accounting fraud cases in the 1990s and early 2000s.
7. Which of the following is true about the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) as they related to health insurance?
- Upon termination of employment, a health insurance provider must allow the employee to participate in the same health insurance coverage program that the employee participated in while working for the employer, although the employee must pay for it.
- Certain companies are required to provide group health insurance coverage to their employees.
- Upon termination of employment, an employer is required to pay, for a limited time, for the former employee's health insurance coverage under the same terms that it had been paying for it while the employee worked for the employer.
- Employers must make the same group health insurance available to all employees.
8. Paul purchased a deluxe motorhome from Wide Open Spaces Motorhomes. In a product liability suit against Wide Open Spaces Motorhome Corporation, Paul must show which of the following in order to recover:
- Wide Open Spaces was the manufacturer of the motor home and not just a dealer.
- A defect made the motorhome unreasonably dangerous, leading to an injury.
- The negligence of Wide Open Spaces led to Paul's injury
- Paul was not misusing the motorhome when the injury occurred.
9. The landlord has the right to enter the leased premises:
- To make necessary repairs
- To inspect for illegal use
- Only if specifically provided in the lease
- To inspect for waste
10. The Hart-Scott-Rodino Antitrust Improvement Act led to rules requiring:
- That the Federal Trade Commission and the Justice Department be notified in advance of any merger involving certain firms.
- That failing companies are rescued through mergers whenever possible.
- That certain activities are classified as per se violations.
- That mergers be allowed if United States competitiveness in world markets is improved.
11. Which of the following is true about misappropriation of trade secrets?
- Trade secrets are protected regardless of the actions of the trade secret owner.
- Injunctions are generally not available to protect trade secrets.
- Although it is not necessary that the trade secret be patented, the secret must be such that it could be patented.
- The plaintiff can recover only if the defendant acquired the secret through illegal means.
12. The school of jurisprudence that believes that free market forces should determine the outcome to lawsuits is:
- The Command school
- The Sociological school
- The Law and Economics school
- The Critical Legal Studies school
13. Sam sells property to Betty and delivers Betty a deed that says "This property is conveyed to Betty so long as she never operates a bar on the premises." If she operates a bar on the premises, Sam Seller may take possession of the property. The type of interest that Betty Buyer has acquired is a:
- Fee simple remainder
- Fee simple limited
- Fee simple defeasible
- Fee simple absolute
14. George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer, MNO Inc. recover as damages?
- All amounts already paid to the employee under the contract.
- Nothing, because courts do not order anyone to perform a job against his or her will.
- Only amounts paid to the employee for which the employee has not yet done the work.
- The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.
15. If a plaintiff voluntarily enters into or participates into a risk activity that results in injury, what is the most likely defense that he or she may use to a defendant's claim that the plaintiff assumed the risk?
- Comparative negligence
- Defendant was negligent per se
- Defendant assumed the risk under the "danger invites rescue" doctrine
- Contributory negligence
16. Edward's Warehouse stores a variety of generic goods for several distributors in Anytown. Which of the following describes Edward's liability for the bailed goods should something happen to them?
- Criminal liability.
- Strict liability.
- Ordinary negligence.
- Comparative liability.
17. The major disadvantage of a sole proprietorship is:
- The difficulty and cost of formation.
- The difficulty in transferring ownership to others.
- The unlimited liability for the business' debts.
- The sharing of management authority with others.
18. Which for of real property ownership includes the greatest degree of ownership?
- Absolute life estate
- Fee simple defeasible
- Fee simple limitless
- Fee simple absolute
19. Officers of a corporation typically have which types of agency authority?
- Express and apparent only
- Express, implied, and apparent
- Express only
- Implied and apparent only
20. Under the Employee Retirement Income Security Act (ERISA), an employee's benefits must vest:
- Only as provided in the pension plan.
- Within 10 years
- By the time of the employee's retirement
- In total within 5 years or gradually within 7 years
21. Which of the following statements best describes the procedures under the Clean Air Act?
- The state governments set and enforce the standards.
- The federal government sets and enforces the standards
- The federal government sets the standard; the state government enforces the standards; if the state governments do not adequately enforce the standards, the federal government may enforce them.
- Both the federal and state governments set standards and each enforces its own standards.
22. This form of alternative dispute resolution allows both parties to see the strengths and weaknesses of both sides of the case.
- Judicial referee
- Fact-finding
- Conciliation
- Mini-trial
23. The tort of palming off involves:
- Representing one's own goods to be those of a competitor
- Knowingly selling goods that are defective.
- Failing to credit another for that other person's legal accomplishments
- Making false statements about the goods of another
24. Mr Smith awakens one morning to the sound of construction in his backyard. When he looks out the window, he sees Ajax Construction Co. apparently erecting a garage on his property. He had not spoken or contracted with Ajax for this service. However, Mr Smith really wanted a new garage, so he let them continue. Later it was discovered that the garage was intended to go next door. Ajax sues Mr Smith for the value of the garage. What is the probable result?
- Ajax wins; although there is no real contract, this is a case of unjust enrichment, and because Mr Smith accepted the garage, he must pay for it.
- Smith wins; unjust enrichment does not apply here because Mr Smith had no duty to tell Ajax that it had the wrong house.
- Smith wins; there was no contract upon which Ajax could recover, and people are not liable for benefits that are thrust upon them.
- Ajax wins; this is a case of a contract implied in-fact, and Mr Smith implicity agreed to pay for the garage.
25. Janet is manager of a bank. She has all the qualifications to be promoted to bank manager. In fact, she is better qualified than any of the males being considered for the position. However, the owner of the bank believes that bank customers will not accept a woman as bank manager, so the owner promotes one of the males. The owner's actions would best be described as:
- Hostile work environment sex discrimination
- Sex discrimination
- Pregnancy discrimination
- Quid pro quo sex discrimination
26. Under the Anti-Cybersquatting Consumer Protection Act, which of the following is true?
- Prior approval by the affected celebrity is needed to obtain a domain name that is similar to a celebrity's name.
- Penalties are imposed for obtaining any domain name that infringes on a valid trademark.
- Domain names are granted only after ensuring that they do not infringe on a valid existing trademark.
- A plaintiff must show that the defendant acted in bad faith in order to recover.
27. Under the Uniform Computer Information Transactions Act, tender of performance is:
- A party's agreement to perform
- The actual completion of a party's obligations under the contract.
- A party's unequivocal indication of intent to perform.
- The offer to complete the performance of contractual duties made by a party who is willing and able to perform.
28. John is president and sole shareholder of Photo, Inc. Photo, Inc. wishes to borrow money, but to do so, the bank requires John to orally guarantee to repay the loan if Photo, Inc. cannot. John's guaranty to repay is:
- Enforceable, because the main purpose of the loan and the guarantee was to benefit John.
- Enforceable, because in general, guaranty contracts do not need to be in writing.
- Unenforceable, because in general, guaranty contracts need to be in writing.
- Unenforceable, because John did not sign any agreement.
29. ________ is a form of alternative dispute resolution that is often used when the parties involved do not want to face one another.
- Mini-trial
- Conciliation
- Fact-finding
- Negotiation
30. Martha started a flower shop as a sole proprietor. After 1 year, she was forced to close the shop because business was so bad. At that time, the business assets totaled $50,000, but the business liabilities totaled $125,000. Which of the following statements is true:
- Martha's business creditors can collect only the $50,000 of business assets.
- Martha's business creditors can collect only the $50,000 now, but if Martha ever goes into business again, they can get the assets of the new business.
- Once Martha terminates the sole proprietorship, the business creditors cannot even get the $50,000.
- Martha is personally liable for the additional $75,000.
31. Which of the following is true about sexual harassment in the workplace?
- If a supervisor approaches someone and asks the person out for a social date, and if the supervisor acts in a socially customary manner, it will not be sexual harassment.
- Sexual harassment claims require that persons of both genders be involved.
- The standards for a hostile work environment are extremely vague and depend on all the facts and circumstances.
- Sexual harassment is covered under OSHA as part of workplace safety.
32. Which of the following is true when someone accidentally makes an improvement to the personal property of another where the owner was unaware of the improvement until after it had been made?
- The party who made the improvement can remove it if this is possible, otherwise the owner of the property gets to keep the improvement and is not required to pay for it.
- The property owner gets to keep the improvement in all cases, but must pay the party who improved it the reasonable value of the improvement.
- The property owner gets to keep the improvement in all circumstances and is not required to pay for it.
- The party who made the improvement can remove it if this is possible, otherwise the owner of the property gets to keep the improvement and must pay the party who improved it the reasonable value of the improvement.
33. Which of the following is likely to be a breach of a corporate officer's/director's duty of care?
- Failing to make a reasonable investigation of relevant facts.
- Failing to predict the startup of a new competitor.
- Failing to foresee a severe rise in the interest rate.
- Failing to anticipate a drop in consumer demand of the company's product.
34. What is the major convention that provides international protection to patents?
- The General Agreement on Tariffs and Trade (GATT)
- The Berne Convention of 1886
- The Paris Convention
- The 1997 WIPO Treaty
35. If there is an area of interstate commerce that the federal government has not chosen to regulate, the states can:
- Not regulate in that area because states cannot pass laws affecting interstate commerce.
- Regulate in that area so long as it first gets the requisite approval from Congress.
- Regulate in that area so long as the state law does not unduly burden interstate commerce.
- Regulate without restriction in that area.
36. Mark is the treasurer of Sky-Hi Tech Corporation and, as such, he is responsible for protecting the assets of the corporation. One of Mark's subordinates, Jill, is in charge of reconciling the monthly corporate bank statements. Over a period of several months, Jill embezzled a large amount of money from Sky-Hi Tech, covering up the theft using her bank reconciliations. If Mark had adequately supervised Jill, she could not have embezzled this money. Mark's actions (or inactions) constitute a breach of his duty of:
- Loyalty
- Obedience
- Ultra vires
- Due care
37. A doctrine that says a patent may not be granted if the invention was used by the public for more than a certain period of time prior to the filing of the patent application is known as;
- The public service doctrine
- The bar to patents doctrine
- The public use doctrine
- The fair use doctrine
38. Unfair and deceptive trade practices are general regulated by the:
- Federal Trade Commission
- Food and Drug Administration
- Securities and Exchange Commission
- Consumer Product Safety Commission
39. Sean has a 6 year old car which he bought 2 years ago from its original owner. Eight months ago he received a recall notice about a safety problem with the brakes. He never responded to the notice. Yesterday Sean was driving when the brakes failed and caused him to strike and injure a pedestrian. Which of the following is true in lawsuits against the car's manufacturer?
- Sean can recover despite having received the recall notice.
- The pedestrian cannot recover due to the fact that the pedestrian was not using the car.
- The pedestrian cannot recover because the correction of the defect will apply even though Sean did not take the car in for repairs.
- Neither party can recover if Sean's was one of only a few of these cars that actually had a brake defect.
40. What are sellers responsible to provide for regarding the assembly of products they sell?
- Adequate instructions for use of the product
- Adequate instructions for safe assembly and use of the product.
- Adequate instructions for safe assembly
- Rebates
41. Which of the following is true about litigating commercial disputes?
- The Command school
- The Critical Legal Studies school
- The Law and Economics school
- The Sociological school
42. According to Sarbanes-Oxley, this person or people should sign the Federal income tax return of a corporation:
- Board of Directors
- Chief Executive Officer and Chief Financial Officer
- Head of the accounting firm that prepares the corporation's tax returns.
- Chief Executive Officer
43. The Sarbanes-Oxley Act of 2002 was enacted in order to:
- Make it more challenging to incorporate a business.
- Regulate the salaries paid to corporate executives.
- Improve corporate governance.
- Establish more equitable international trade rules.
44. In a guaranty arrangement, the guarantor:
- Promises to assume responsibility for the quality of goods.
- Promises to pay the debt of another contingent up the happening of some external event.
- Promises to pay the debt of another if that person does not pay.
- Promises to pay the debt of another in any circumstances.
45. Mary, the seller, and Jane contract for the sale of 500 sweaters. They agree on color and style, but not on price or time of delivery. Mary refuses to deliver the sweaters and Jane sues. What results?
- Mary wins; the courts will fill in many missing terms, but never time of delivery.
- Mary wins; the courts will fill in many missing terms, but never price.
- Mary wins; because all these terms were omitted from the agreement, the contract is not definite enough to be valid.
- Jane wins; the courts will fill in all the above-mentioned missing terms.
46. George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer, MNO Inc. recover as damages?
- Only amounts paid to the employee for which the employee has not yet done the work.
- The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.
- Nothing, because courts do not order anyone to perform a job against his or her will.
- All amounts already paid to the employee under the contract.