1. The term "consideration" in relation to contracts involves parties acting in an ethical manner.
True
False
2. Which of the following references the requirement that a contract not be either illegal or against public policy?
Legal object
Illegal prohibition
Capacity
Ethical requirement
Consideration
3. Which of the following is true regarding trade secret protection?
A trade secret is protected from unlawful appropriation by competitors as long as it is kept secret and consists of elements not generally known in the trade.
A trade secret is protected from unlawful appropriation by competitors for ten years.
A trade secret is protected from unlawful appropriation by competitors for thirty years as long as it is kept secret and consists of elements not generally known in the trade.
A trade secret is protected from unlawful appropriation by competitors for twenty years.
A trade secret is protected from unlawful appropriation by competitors for seventy years.
4. If a trademark is unregistered, which of the following may the holder recover when an infringer uses the mark to pass off goods as being those of the mark owner?
Only damages.
An additional amount of damages computed as a multiplier of 5 times the original damages.
Damages and an injunction prohibiting the infringer from using the mark.
Damages, an injunction prohibiting the infringer from using the mark, and additional damages based on a multiplier of 5 times the original damages.
Only an injunction prohibiting the infringer from using the mark.
Only the remedy of an injunction is available for an unregistered mark.
5. Which of the following is false regarding trade secret protection?
A company's client list may be considered a trade secret.
Competitors may discover secrets by going on public tours of plants and observing the use of the trade secret.
Lawful discovery of a trade secret means there is no longer a trade secret to be protected.
There is no registration of trade secrets.
Competitors may not discover trade secrets by doing reverse engineering.
6. Which of the following is true regarding punitive damages in product liability cases?
The amount of the punitive-damage award is determined by the maliciousness of the action only.
They are not available in product liability actions.
Punitive damages are meant to compensate the plaintiff for injury and to make the plaintiff whole.
The amount of the punitive-damage award is determined by the wealth of the defendant only.
The amount of the punitive-damage award is determined by the wealth of the defendant and also by the maliciousness of the action.
The amount of the punitive-damage award is determined by the wealth of the defendant and the maliciousness of the action.
7. Network Solutions Inc., is funded by the National Science Foundation and is responsible for registering domain names on the Internet.
True
False
8. Which of the following arises when a consumer knows that a defect exists but still proceeds unreasonably to make use of the product, creating a situation where the consumer has voluntarily assumed the risk of injury from the defect and thus cannot recover?
Last-clear-chance.
Pure comparative fault.
Assumption of the risk.
Contributory negligence.
Strict behavior.
9. Which of the following do courts focus on when a strict product liability action is involved?
Whether the consumer had a contractual relationship with the seller.
Whether the manufacturer knew of a problem with the product.
Whether the seller exercised all possible care in the preparation and sale of the product.
Whether the manufacturer was negligent.
Whether the product was in a defective condition and unreasonably dangerous when sold.
10. What was the ruling of the court in the case of Welge v. Planters Lifesavers Co., the case in which the plaintiff injured his hand when a jar containing peanuts broke?
That the plaintiff was unable to recover because he was not the actual purchaser of the jar of peanuts.
That the case would be dismissed because the plaintiff could not establish that the jar was maintained in a pristine condition after its purchase.
That the plaintiff would be allowed to proceed because negligence was established.
That the plaintiff would be allowed to proceed with the lawsuit because of a lack of evidence that the jar had been damaged after its purchase.
That the plaintiff was unable to recover because negligence in manufacture of the jar could not be established.
11. A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so.
Contract under seal
Voidable contract
Recognizance
Implied-in-fact
Informal contract
12. In German product liability cases, consumers do not have a right to recover damages for pain and suffering or for emotional distress.
True
False
13. Which of the following provides that a portion of a copyrighted work may be reproduced for purposes of criticism, comment, news reporting, teaching, scholarship, and research?
The Limited Use Doctrine
The Approved Use Doctrine
The Fair Use Doctrine
The Trade Use Doctrine
The Copyright Use Doctrine
14. As a general rule, the ________ intent of the parties is not relevant when determining whether a contract exists; rather, what is relevant is how they represented their intent through their actions and words.
Objective
Subjective
Comprehensive
Unilateral
Considered
15. Which of the following do courts often consider in determining whether a manufacturer was negligent in failing to warn?
The likelihood of the injury only.
The likelihood of the injury and the seriousness of the injury but not the ease of warning.
The ease of warning only.
The likelihood of the injury, the seriousness of the injury, and the ease of warning.
The seriousness of the injury only.
16. 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
17. Which of the following is in effect not a contract at all?
An executed contract
A void contract
An executory contract
A voidable contract
An implied contract
18. Congress passed the Uniform Electronic Transactions Act (UETA).
True
False
19. Which of the following is set out in the Restatement (Second) of Torts as a method by which to prove a design defect?
The risk-utility test.
The consumer propensity test.
The feasible alternatives test.
The design defect test.
The consumer expectations test.
20. The state-of-the-art defense is not available in all states in strict liability cases.
True
False
21. In a[n] _____________ contract, the offeror wants a performance to form the contract.
Bilateral
Trilateral
Anticipatory
Complete
Unilateral
22. In which of the following does a contract arise not from words but from the conduct of the parties?
Unilateral contracts
Liquidated contracts
Implied contracts
Express contracts
Bilateral contracts
23. A[n] ____________ mark is one that requires imagination, thought, and perception to reach a conclusion as to the nature of the goods.
Artful
Conclusory
Descriptive
Generic
Suggestive
24. Copyrights protect the expression of creative ideas.
True
False
25. A[n] _____________ contract is one that contains all the legal elements of a contract.
Executed
Voidable
Approved
Formal
Valid
27. A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.
Acceptance
Contract
Consideration
Offer
Legal object
28. In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.
True
False
29. Which of the following is true regarding damages that may be recovered in negligence-based product liability cases if proven?
Compensatory damages, punitive damages, administrative damages, and manufacturing damages may be recovered.
Punitive damages may be recovered, but compensatory damages may not be recovered.
Compensatory damages, punitive damages, and administrative damages may be recovered.
Compensatory damages may be recovered, but punitive damages may not be recovered.
Compensatory damages and punitive damages may be recovered.
30. Upon which type of law is product liability law primarily based?
Tort law.
Executive law.
Legislative law.
Administrative law.
Contract law.
31. Which of the following consists of the fruits of one's mind?
Cognitive property
Tradable property
Protected property
Intellectual property
Theoretical property
32. Paul was very excited about his first new vehicle purchase. He borrowed funds from his bank with which to purchase the car. Unfortunately, just a few days after he purchased the vehicle, the pistons in the engine overheated causing the engine to seize rendering the vehicle unusable. No one was injured, but Paul is very upset about his vehicle and plans to sue based on strict liability under the theory set forth by Section 402A of the Restatement (Second) of Torts. Which of the following is the most likely resolution of his claim?
He will be allowed to proceed only if he can establish that he did appropriate research prior to purchasing the vehicle and had no reason to know that it was likely to be defective.
He will be allowed to proceed so long as he is up-to-date on his loan payments.
He will not be allowed to proceed because the only avenue for this type of claim is through a negligence action.
He will not be allowed to proceed because there is no recovery under a strict liability theory for solely economic damages.
He will be allowed to proceed because the vehicle was in a defective condition.
33. When an individual product has a defect making it more dangerous than identical products, that individual product is said to have which of the following defects?
Warning.
Primary.
Design.
Exclusionary.
Manufacturing.
34. Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At what point is there a binding contract?
When the money is paid.
When the agreement is made.
Twenty days after the car is delivered and approved.
When the car is delivered.
Ten days after the car is delivered and approved.
35. Which of the following is a mark used in conjunction with a service?
Collective mark
Physical activity mark
Service mark
Product trademark
Certification mark
36. Today's law of contracts originated from judicial decisions in ______.
Italy
France
Spain
England
Switzerland
37. In the case of, Toys "R" Us Inc., v. Canarsie Kiddie Shop Inc., evidence of actual confusion is a prerequisite for the plaintiff to recover in a trademark infringement action.
True
False
38. Which of the following is the most likely measure of recovery when a quasi-contract is involved?
Damages will be computed the same way as they are computed for any other contract.
The wholesale price of any good involved.
The amount sought by the plaintiff in the Complaint.
The amount set forth in the contract.
The fair market value of the matter involved.
39. What was the result at the Supreme Court level in Wyeth v. Levine, the case in the text in which the defending drug company took the position that the plaintiff's jury verdict on her state law claim alleging that the defendant improperly labeled a drug was preempted by federal law and should be overturned?
That the case should be dismissed because complying with state law would obstruct the purposes and objectives of federal drug labeling regulation.
That the case should be dismissed because it was impossible for the defendant to comply with both state and federal law.
That the case should be dismissed because the defendant could not be subjected to both federal and state law.
That the jury verdict would be upheld because Wyeth failed to submit evidence that the plaintiff was guilty of comparative negligence.
That the jury verdict would be upheld because the defendant could have complied with its state and federal law obligations.
40. An attorney who says that a contract lacks "the proper form" is typically referencing which of the following?
The agreement lacked a proper offer.
The contract lacked both an appropriate offer and an appropriate acceptance.
The contract lacked consideration.
The contract lacked a proper acceptance.
The contract lacked a writing.
41. Which of the following is a principle of The Paris Convention of 1883?
National treatment
Treaty affirmation
Complex treatment
Enforcement priority
Nonconditional protection
42. Under which of the following theories may a plaintiff be able to proceed even if the plaintiff cannot trace an injury caused by a product to any particular manufacturer?
The shared market liability theory.
The trade theory.
The market share theory.
The shared production theory.
The shared liability theory.
43. In which of the following orders of ascending strength may marks fall?
Generic, descriptive, suggestive, arbitrary or fanciful.
Descriptive, generic, suggestive, arbitrary or fanciful.
Generic, suggestive, descriptive, arbitrary or fanciful.
Arbitrary or fanciful, generic, descriptive, suggestive.
Suggestive, generic, descriptive, arbitrary or fanciful.
44. Under a strict product liability theory, who is considered a reasonably foreseeable party who may recover if injury is sustained?
Only the buyer and any one present in the buyer's home when injury is sustained.
Only the buyer, the buyer's family, and the buyer's guests.
Only the buyer and the buyer's family.
The buyer only.
The buyer, the buyer's family, the buyer's guests, and foreseeable bystanders.
45. The Restatement (Second) of the Law of Contracts is not actually the law itself.
True
False
46. Which of the following is sometimes referred to as an implied-in-law contract?
Express contracts
Express contracts and implied-in-fact contracts
Quasi-contracts
Implied-in-fact contracts
Express contracts and quasi-contracts
47. 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 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 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 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.
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.
48. Which of the following was the result at the U.S. Supreme Court level in Metro-Goldwyn-Mayer studios Inc., v. Grokster Ltd., the case in the text in which the Court addressed the legality of the defendants allowing users to share digital, typical music, files?
That the district court improperly dismissed the suit because a distributor who promotes infringement and takes steps to foster infringement is liable for infringement by third parties.
That the defendants had no responsibility to develop filtering tools or other mechanisms to diminish infringing activity and that the district court properly dismissed the lawsuit.
That there was no evidence that the defendants profited from the site allowing file sharing and that, therefore, the district court properly dismissed the lawsuit.
That the district court properly dismissed the suit because the system at issue had both legal and illegal uses.
That there was no evidence that the defendants acted to promote infringement and that, therefore, the district court properly dismissed the lawsuit.
49. Which of the following must a plaintiff generally show in order to recover in a product liability lawsuit?
That the defect should have been discovered and fixed prior to sale.
That the defendant was negligent.
Only that the product is defective.
That the product is defective and also that the defect existed when the product left the defendant's control.
That the product is defective, that the defect existed when the product left the defendant's control, and also that the defendant was negligent.
50. Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?
Negotiable instruments
Formal contracts
Recognizances
Simple contracts
Informal contracts