LAW/575 Final Exam

1) Which of the following is true regarding state and federal court

jurisdiction?
A. In all cases, state courts have concurrent jurisdiction with the federal
courts.
B. Federal courts begin with exclusive jurisdiction until a state court
intervenes.
C. In all cases, state courts have exclusive jurisdiction unless the state's
Supreme Court grants jurisdiction to a federal court in the state.

D. In some cases, state courts have exclusive jurisdiction; in some cases,

state courts have concurrent jurisdiction with the federal courts.

2) Which of the following is true regarding a sole proprietorship?

A. A sole proprietor shares control of the management of the business.
B. The sole proprietor keeps a portion of the profits from the business.
C. Profits are not taxed as the personal income of the sole proprietor.
D. A sole proprietor is personally liable for obligations of the business.

3) Which of the following is a type of ADR?

A. Consultation
B. Mediation
C. Case argument
D. Case analysis

4) Which of the following is an extension of negotiation?

A. Arbitration
B. Minitrials
C. Neutral case evaluations
D. Mediation

5) Without obtaining advance permission, Annie places an unflattering

photograph of the president of the college that she attends on folders
that she is selling outside of class for extra money. Which of the
following is true?

A. Annie has committed defamation of the college president in the form of

slander.
B. Annie has committed defamation of the college president in the form of
libel.
C. Annie has appropriated the photograph for commercial gain, which
constitutes an invasion of privacy.
D. Annie has not committed any tort.
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6) ________ torts occur when the defendant takes an action that is

inherently dangerous and cannot ever be undertaken safely, no matter
what precautions the defendant takes.
A. Liability
B. Intentional
C. Negligent
D. Strict-liability

7) The violation of a duty of care is called

A. breach of responsibility
B. breach of statute
C. breach of duty
D. objectionable breaching

8) Which of the following are common classifications of torts?

A. Intentional, negligent, and criminal

B. Intentional, criminal, and strict-liability

C. Intentional, negligent, and strict-liability
D. Criminal, negligent, and strict-liability

9) Which of the following are commonly used theories of recovery in

product liability cases?
A. Negligence, negligence per se, and breach of warranty
B. Strict product liability, negligence per se, and breach of warranty
C. Breach of warranty, negligence, and negligence per se
D. Negligence, strict product liability, and breach of warranty

10) The person who makes an offer is called an

A. offeree
B. offeror
C. agreeor
D. agent
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11) Which of the following is what a person will receive in return for
performing a contractual obligation?
A. Consideration
B. Acknowledgement
C. Approval
D. Accord

12) Which of the following is true regarding the adequacy of

consideration?
A. Courts generally consider the adequacy of consideration in determining
whether to enforce a contract.
B. Courts consider the adequacy of consideration only if something is sold
for less than 90% of its market value.
C. Courts consider the adequacy of consideration only if something is sold
for less than 80% of its market value.
D. Courts consider the adequacy of consideration only if something is sold
for less than 70% of its market value.

13) Which of the following represents an accord and satisfaction?

A. When a dispute over an unliquidated debt is settled and is paid for less
than the full amount
B. When a dispute over a liquidated debt is settled and paid for less than
the full amount
C. When a dispute over an unliquidated debt is settled and paid for the full
amount
D. When a dispute over a liquidated debt is settled and paid for the full
amount

14) Jenny works at a Mexican fast-food restaurant, which is owned by an

international company located in Mexico. Jenny is very angry with her
supervisor, Sleaze, as he has been making inappropriate sexual
comments to her and other employees. Jenny decides to sue and retains
a lawyer, Brice. Brice talks with the owners of the restaurant and is

informed that Jenny signed an agreement to arbitrate any claims. Jenny

also informed Brice about other employees who had complained about
sexual harassment and entered into mediation agreements. Brice
promises her that he will get copies of all documents and everything that
was taken down by the court reporter at those mediations. Brice also
tells Jenny that, while he is not going to bring it up now, if they so choose,
Brice and Jenny can avoid the arbitration agreement, because under a
new federal law, such agreements cannot be enforced if one of the
companies involved is internationally based. He also tells Jenny in
response to her question about the possibility of mediation in her case
to forget it, because mediation is pretty much the same thing as
arbitration. Brice tells Jenny that an option is to arbitrate and, if the
outcome is bad at arbitration, she can file a court action in federal court.
Brice says that the federal court judge would not consider an arbitrator's
decision in making a determination. Assume the Uniform Mediation Act
provisions apply. Can Brice obtain information from the previous
mediators regarding what occurred at the previous mediations?
A. Yes, but only if a court reporter was present.
B. He can get accounts of statements, but not copies of written documents.
C. He can get the information only if the mediators in the other cases want
to cooperate.
D. He cannot get copies of documents or accounts of what was said from
the mediator.

15) Which of the following is generally defined as a relationship between

a principal and an agent?

A. Agency
B. Principality
C. Combination
D. Employment
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16) Which of the following is true if there is no agreement between a

principal and an agent regarding the amount for which the principal will
compensate the agent?
A. It will be assumed that the agent agreed to work for free on a gratuitous
basis.
B. The principal will be allowed to set the price, which will be enforced
unless it is unconscionable.
C. The court will appoint a magistrate to set the price.
D. Compensation will be calculated according to the customary fee in the
situation.

17) Which title of the Civil Rights Act of 1964 deals with discrimination
in employment?
A. Title VII
B. Title VI
C. Title V
D. Title IV

18) Which of the following is true regarding discrimination based on

sexual orientation?

A. There is a federal law specifically prohibiting discrimination based on

sexual orientation providing back pay, attorney fees, and punitive
damages as available remedies.
B. There is a federal law specifically prohibiting discrimination based on
sexual orientation, but it only provides for back pay as an available
remedy.
C. There are no state laws specifically prohibiting discrimination based on
sexual orientation nor is there any federal law providing such
protection.
D. While there is no federal law specifically prohibiting discrimination
based on sexual orientation, some states do have laws prohibiting
discrimination based on sexual orientation.

19) Which of the following is a federal law regulating the payment of

wages and overtime?
A. The Fair Pay Act
B. The Fair Labor Standards Act
C. The Regulatory Wage Act
D. The Subsistence Pay Act

20) Striking union members of ABC Company decide that picketing ABC
Company is not accomplishing the desired results and decide to further
their efforts. Sally, the union president, suggests that they picket XYZ
Company, a supplier to ABC, to pressure XYZ into not doing business
with ABC. Which of the following is true regarding Sally's plan?

A. Sally's plan is a good idea, and this type of picketing is frequently and
legally engaged in by union members during labor disputes.
B. Sally's plan is a good idea only if the strike has been going on for more
than 30 days, because under the National Labor Relations Act, union
members may not picket any company other than the employer for at
least 90 days.
C. Sally's plan is only legal if XYZ employees are represented by the same
union as ABC employees.
D. Sally's plan is illegal because of the prohibition against secondary
boycotts occurring during a labor dispute when employees boycott a
company other than their own to force it to cease doing business with
their employer.
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21) A ________ is a distinctive mark, word, design, picture, or arrangement

that is used by a producer in conjunction with a product and tends to
cause consumers to identify the product with the producer.
A. Copyright
B. Patent
C. Trade secret
D. Trademark

22) In which of the following types of ownership does each co-owner

have the right to sell his or her interest without the consent of the other
owners, the right to own an unequal share of the property, and the right

to own property subject to the right of a creditor to attach his or her

interest?
A. Joint tenancy
B. True tenancy
C. Tenancy in common
D. Joined tenancy

23) If a trademark is registered, what may the owner obtain in the event
of infringement from a person who used the trademark to pass off goods
as being those of the mark owner?
A. An injunction prohibiting the infringer from using the mark only
B. An additional amount of damages computed as a multiplier of 5 times
the original damages
C. Damages, an injunction prohibiting the infringer from using the mark,
and additional damages based on a multiplier of 5 times the original
damages
D. Damages and an injunction prohibiting the infringer from using the
mark

24) Which of the following types of insurance should a business manager

purchase to obtain protection against a broad range of risks?
A. A commercial general liability policy
B. A business tort policy
C. A litigation commercial policy
D. An economic protection policy

25) Which of the following oversees the purchase and sale of securities?
A. The Securities Act of 1933
B. The Securities Exchange Act of 1934
C. The Depression Act of 1932
D. The Oversight Act of 1935
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26) A workers' compensation insurance policy is an example of which of

the following types of insurance?
A. Casualty
B. Loss
C. Business
D. Injury

27) How are directors typically chosen after the incorporation process?
A. By majority vote of the shareholders
B. By majority vote of all officers
C. By a two-thirds vote of shareholders
D. The president appoints them at his or her discretion

28) Wendy is the president of a business that manufactures kites. The

kites of her company, ABC Kites, are sold to large toy stores. After Wendy
learned a great deal about kites, she started to make kites at home. She
started selling kites to friends, and she also started to make inquiries
regarding selling her kites to larger toy stores in the area and to make a

few sales to them. Her plan was to start small and then leave ABC after
she had increased sales. She did not work on her side project while she
was on the clock with ABC. Some of the directors learned about her kite
sales and accused her of wrongdoing. Wendy denied any wrongdoing
and pointed out that she did not work on her project while she was on
the job with ABC. What duty, if any, did Wendy violate?
A. She did not commit any violation.
B. She violated the duty of loyalty.
C. She violated the duty of care.
D. She violated the duty of understanding.

29) Which of the following best describes the term comparative law?
A. It is the study of the legal systems of different states.
B. It is the study of the laws governing the conduct of states and
international organizations and their relationships with one another.
C. It is the study of the difference between public and private law in the
United States.
D. It is the study of the difference between constitutions and
administrative rules and regulations within the United States.

30) What has the U.S. Supreme Court held regarding whether U.S. courts
must rely on customary international law?
A. The U.S. Supreme Court has held that U.S. courts may disregard
customary international law.

B. The U.S. Supreme Court has held that even if a governing international
agreement says otherwise, a U.S. court must rely on customary
international law.
C. The U.S. Supreme Court has held that even if a controlling executive act
is to the contrary, U.S. courts must rely on customary international law.
D. The U.S. Supreme Court has held that in the absence of a governing
international agreement, or controlling executive, or legislative act, or
judicial decision, U.S. courts must rely on customary international law.

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