1) The doctrine of stare decisis concerns
A. following precedents so that legal principles announced in a case are used to determine later cases
B. using constitutional law to render a decision
C. making sure to do adequate research before making a legal decision
D. staring at the facts of a case for a long time to make sure the correct decision is made.
2) Barry owns a small software development firm. Barry has an employee who needs special accommodations in order to be able to perform the functions of his job. These accommodations would cost $10,000; an amount Barry believes is more than he should have to spend. The Americans with Disabilities Act provides that an employer is required to make “reasonable accommodations” for an employee with a disability, but does not define what constitutes a “reasonable accommodation.” Assume that size of the employer (by some measure) determines the maximum amount that would be considered reasonable for a particular employer to spend. Under the principles of stare decisis, which of the following is true?
A. If a similar-size employer had been required to spend $15,000 in the past, then Barry would be required to spend the $10,000.
B. If a similar-size employer had not been required to spend $15,000 in the past, then Barry would be required to spend $10,000.
C. If a similar-size employer had not been required to spend $15,000 in the past, then Barry would not be required to spend $10,000.
D. If a similar-size employer had been required to spend $15,000 in the past, this would not be relevant in Barry’s case because it happened in the past.
3) The form of alternative dispute resolution wherein the parties hire someone to review the evidence and make a decision that is binding upon the parties is called
D. settlement conference
4) Utilitarianism is a moral theory, which states
A. ethics requires a decision-maker to take actions which result in the greatest good to society
B. ethics requires acting according to the Bible or some outside source
C. ethics requires actions which use the most efficient tools
D. ethics requires following the Golden Rule (do unto others as you would have them do unto you)
5) Which of the following statements is true regarding the relationship of law and ethics?
A. The legal requirements will almost always be the same as the ethical requirement because the law is based on ethical standards.
B. Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.
C. In some cases, the law will require a high standard of conduct than ethics, but never vice versa.
D. In some cases, ethics will require a higher standard of conduct than the law, but never vice versa.
6) The Federal False Claims Act is also known as
A. The Sarbanes-Oxley Act
B. The Statute of Limitations
C. The Statute of Frauds
D. The Whistleblower Statute
7) The legal authority of a court to make orders that are binding upon the parties is called
A. In Rem jurisdiction
B. Personal jurisdiction
C. Enumerated jurisdiction
D. Quasi-in-Rem jurisdiction
8) A court can enter a judgment notwithstanding the verdict when the following has happened?
A. A jury could not reach an agreement on what the verdict would be.
B. The court finds that the jury acted out of a bias or after jury misconduct.
C. The jury was sequestered.
D. The judge’s personal opinion is that the jury made the wrong decision.
9) An appellate court reviews what information to decide on appeal?
A. All witnesses have come to court to testify again like they did at the trial.
B. Documentary evidence that was admitted at trial, plus a transcript of the witnesses’ testimony.
C. Only briefs provided by the lawyers plus the documentary evidence admitted at trial.
D. Only a transcript of the trial testimony plus briefs of the lawyers.
10) What is the definition of a tort?
A. Any violation of an ethical duty
B. Any crime or misdemeanor
C. Any civil wrong that allows the injured person to recover damages
D. Any action done in violation of a prior agreement, which allows the victim to recover damages
11) Denise, a small-town doctor, is sued for medical malpractice because she did not correctly diagnose a rare tropical disease, from which her patient died. The standard of care that will be applied by the court is:
A. Denise will be judged by the highest medical standards
B. Denise will be judged against the standard applied to tropical disease specialists
C. Denise will be judged by the reasonable person standard
D. Denise will be judged by the standards applicable to small-town doctors
12) Monica owed Bob $500, which was more than a year overdue. Bob got drunk at a party and told everyone that Monica had owed him $500 for over a year. Can Monica recover from Bob for defamation?
A. Yes, because Bob abused his conditional privilege
B. No, because Bob was telling the truth
C. No, because Bob had been drinking
D. Yes, because Bob communicated the statement to third persons
13) Mary’s mother agrees to give her a new car if Mary maintains an A average for her senior year of college. Mary does in fact earn an A average, but when she asks for the car, Mary’s mother tells Mary that she just told Mary that to motivate her and she will not be getting a car. Mary sued her mother alleging a breach of contract. Who will win this suit?
A. Mary’s mother wins because there was no consideration for her promise.
B. Mary’s mother wins because Mary had a preexisting obligation to do her best.
C. Mary wins because her actions in reliance upon her mother’s promise constitute consideration.
D. Mary wins but only if she can prove that the fair market value of the time she spent studying was equal to the value of the car.
14) Where a contract calls for action that violates a statute, in a breach of contract case the court will
A. impose the appropriate criminal penalty
B. ignore the contract and leave the parties where they are
C. order both parties to return any consideration received
D. order payments so that the parties to the illegal contract share any losses equally
15) Marvin, a PhD in economics, is recruited by a University to be Dean of the Economics department. Marvin agrees to accept the job at the salary of $100,000 annually, on the condition that his daughter, Mimi, who is presently 8 years old, also receive a free undergraduate education at the same university. The university agrees to Marvin’s conditions and Marvin takes the job. Ten years later, while teaching an economics class, Marvin has a fatal heart attack. May Mimi sue the university if it refuses to give her a free education when she graduates from high school?
A. No, because Mimi was not party to the contract
B. Yes, because Mimi is a third-party beneficiary of the contract
C. No, because Marvin is not alive to file suit to enforce the contract
D. Yes, because she was a minor when the contract was made
16) Articles 2 and 2(A) of the UCC cover which types of transactions?
A. Sales of goods and sales of real property
B. Sales of goods and leases of goods and real property
C. Sales of goods and contracts for the providing of services
D. Sales of goods and leases of goods
17) Patty went to a used car lot and purchased a car. Two weeks later, the transmission fell out as she was driving to work. She contacted the dealer to complain, but the dealer told her the car had been sold “As Is”. The dealer advised her to check in the glove compartment of the car, where Patty found a notice that stated, “This vehicle is sold AS IS. The purchaser will bear the expense of any repairs that are necessary to this vehicle.” Does the notice mean that Patty has no rights against the dealer with respect to the condition of the vehicle?
A. Yes, Patty should have inquired about the warranty when she bought the car.
B. No, the notice was not conspicuously displayed on the vehicle.
C. Yes, the notice operates to void any warranty on the vehicle.
D. No, the notice is there for subsequent purchasers of the car.
18) In February, Bradley stole a motorcycle from John’s driveway, and then sold it to a motorcycle parts dealer as a source of used motorcycle parts. In March, Jean bought the motorcycle from the parts dealer. In May, the police came to Jean and advised her that the motorcycle she bought had been stolen. According to the Uniform Commercial Code, must Jean give the motorcycle back to John?
A. Yes, because it was stolen and John did not intend for it to be sold to her
B. Yes, because John filed a police report
C. No, because Jean is a good faith purchaser for value
D. No, because it was John’s fault for leaving the motorcycle in his driveway
19) Huey, Dewey, and Louie own a building as tenants in common. Huey lives in the building. Without consulting the other two owners, Dewey deeds his interest in the building to Joe. What will be the outcome of this situation?
A. Huey will own the property as tenants in common with Joe and Louie.
B. The transfer of the interest to Joe will be ineffective because the other two did not consent.
C. Huey and Louie will still own the property as tenants in common, but Joe will have a reversionary interest.
D. Joe will make Huey pay rent.
20) Bruce and Diane are ranchers. Bruce owns the property next to Diane’s property. Bruce needs more pasture for his cattle, so he rents five acres of Diane’s ranch for pasture land. This arrangement continues for more than 20 years. Then Diane sells her ranch, and the new owner tells Bruce to stop using the pasture land. Bruce claims ownership of the land by adverse possession. Will his claim succeed if the case goes to court?
A. Yes, Bruce has had actual possession of the land for more than 20 years, so he owns the land under the doctrine of adverse possession.
B. Yes, Bruce will own the pasture land, but he will have to pay rent to Diane’s purchaser.
C. No, Bruce failed to show that he claimed the land adversely to Diane’s interest.
D. No, Bruce has failed to show that the value of the land was equal to the rent.
21) Melinda owns a rental property. She deeds the property to her son Jack, by warranty deed. Ten years later she sells the property to Brenda, her neighbor, and signs a quitclaim deed to the property in favor of Brenda. Who owns the property?
A. Jack and Brenda each own half the property.
B. Brenda owns the property.
C. Jack owns the property.
D. Melinda still owns the property, because neither deed was effective.
22) John and Jake are partners in a bowling alley. Business has been bad lately, and they need more operating capital, so they invite Lisa to become a partner. What liability does Lisa have for partnership debts?
A. She owes one third of all the partnership debts.
B. She owes an equal share of all partnership debts.
C. She owes an equal share in all debts incurred after she became a partner.
D. Her liability is limited to the amount she invested.
23) Which of the following is true of a limited liability company?
A. Limited liability companies are managed by members or managers.
B. Limited liability companies are automatically taxed like corporations.
C. Documents do not have to be filed with the state to create one.
D. Limited liability companies have limited duration.
24) Ricardo and Robert operate a hardware store as general partners. Robert is unmarried, while Ricardo is married to Jenna. Ricardo is killed in an accident and his will leaves all his property to Jenna. What happens to Ricardo’s interest in the partnership?
A. Jenna inherits Ricardo’s partnership interest and becomes Robert’s partner in running the business.
B. Ricardo’s interest is divided equally between Robert and Jenna.
C. Robert becomes sole owner of the hardware store, but owes Jenna the value of Ricardo’s interest in the business.
D. Robert becomes sole owner of the hardware store and owes Jenna nothing
25) The alter ego doctrine provides as follows:
A. That a corporation becomes the alter ego of its owner
B. That protection from personal liability can be forfeited if corporate formalities are not observed
C. That the board of directors is the alter ego of a corporation
D. That the president is the decision maker of a corporation
26) Rita is the sole shareholder of an auto repair shop that is incorporated. She is at work one day when her sister comes in and tells her she needs $100 for schoolbooks. Rita looks in her wallet, and seeing that it contains no money, opens the cash register and takes out $100, which she hands to her sister. The sister looks worried, but Rita tells her, “Don’t worry; I take money out of the cash register all the time for my personal expenses. It’s my business, so I can take money out whenever I want.” Her customer, who is waiting to pick up his car, tells Rita that she is risking the piercing of the corporate veil. Is the customer correct?
A. No, Rita is the only shareholder and can do what she wants.
B. Yes, Rita is co-mingling personal assets with corporate assets.
C. No, the customer is wrong.
D. Yes, Rita is not the board of directors.
27) A corporation is required to maintain a separate identity because
A. corporations are entities created by statute to limit the personal liability of investors
B. if they do not maintain the separate identity, they become alien corporations
C. corporations have perpetual existence
D. corporations can act only through officers
28) Rover Corporation is a regular corporation that has not elected S corporation status. In 1992, Rover earned $100,000; in 1993, Rover distributes $50,000 to its shareholders. Which of the following best describes the tax consequences to rover and its shareholders?
A. The shareholders are taxed on $100,000 in 1992; Rover is not subject to tax.
B. Rover is taxed on $100,000 in 1992; the shareholders are taxed on $50,000 in 1993.
C. Rover is taxed on $100,000 in 1992; the shareholders are taxed on $50,000 in 1992.
D. Rover is taxed on $100,000 in 1992; the shareholders are not subject to tax.
29) If a corporation is properly incorporated in one state and wants to do business in second state, the corporation
A. must incorporate in the second state
B. must do nothing because being incorporated in one state entitles the corporation to do business in all states
C. may be required to obtain a certificate of authority from the second state
D. must register with the Interstate Commerce Commission
30) A particular issue of stock carries a stated dividend rate of 8 %; that if this dividend is not paid during a particular year, it will be paid in a subsequent year before common stock dividends are paid; and that upon liquidation of the corporation, the owner will receive $300 per share before the common stockholders get anything. This stock is
A. common stock
B. preferred stock
C. noncumulative preferred stock with a liquidation preference
D. cumulative preferred stock with a liquidation preference
31) What is the primary purpose of the Occupational Safety and Health Act?
A. Its purpose is to protect the safety of workers and the safety of those who purchase the employer’s products or services.
B. Its purpose is to reduce the application of industry standards to workplace conditions.
C. Its purpose is to promote the provision of healthcare benefits by employers having more than 15 employees.
D. Its purpose is to compel employers to provide a work environment that is free from recognized hazards that could cause death or serious injury.
32) Which is true about the two kinds of discrimination that are actionable under Title VII?
A. Disparate impact and disparate treatment are both based on how an employer treats a specific individual.
B. Disparate impact and disparate treatment are both based on how an employer treats a protected class.
C. Disparate impact refers to individuals and disparate treatment refers to protected classes.
D. Disparate treatment refers to individuals and disparate impact refers to protected classes.
33) Marie works as a receptionist for a plumbing company. She works from 9:00 a.m. to 6:00 p.m. on Monday through Friday. She earns $12 per hour, and is told how to do her job and what she should be working on at any particular time. Her boss does not withhold any taxes from her paycheck. Which of the following is true?
A. Marie would be treated as an employee because she is paid for the work that she does.
B. Marie would be treated as an employee because of the control exercised by the plumbing company over her work.
C. Marie would be treated as an independent contractor because the employer doesn’t take any taxes out of her check.
D. Marie would be treated as an independent contractor because she is paid hourly.
34) Which of the following employers have been expressly excluded from Title VII?
A. Labor unions
B. State and local governments
C. Most federal agencies
D. Indian tribes
35) What is generally the effect when an exception to the employment at will doctrine applies?
A. The employer is required to hire a certain employee.
B. There is some sort of limitation on at least one party’s ability to terminate the employment relationship.
C. The Fair Labor Standards Act will set the terms, such as pay, for the employment relationship.
D. Employees can be prohibited from quitting a job.
36) In a hostile work environment sexual harassment claim, the employer will have a successful defense if the employer can show that
A. the employer took reasonable care to prevent or correct the conduct and the employee did not take advantage of corrective or preventative opportunities of the employer to remedy the situation
B. the employee was offended by conduct that the employer in good faith did not consider to be offensive
C. there were no adverse consequences to the employee’s work status, such as demotion or denied promotion
D. the employee stands to personally gain if the persons engaging in the sexual harassment are reprimanded
37) The Biosafety Protocol provides as follows:
A. Genetically engineered food must state that it may contain modifications.
B. Medical waste must be safely disposed.
C. Vaccinations must contain live virus.
D. Employees must wash hands when preparing food.
38) In general, trademark protection is granted based on whether the trademark is
A. novel and useful
B. the original creation of the trademark registrant
C. understandable to the general public
39) Which of the following is true about misappropriation of trade secrets?
A. Although it is not necessary that the trade secret be patented, the secret must be such that it could be patented.
B. The plaintiff can recover only if the defendant acquired the secret through illegal means.
C. Trade secrets are protected regardless of the actions of the trade secret owner.
D. Injunctions are generally not available to protect trade secrets.
40) Rachel and Roy are married. Phillip is a private investigator, who is following Rachel at Roy’s request, to see if she is involved in another relationship. At one point, Rachel enters a “women only” gym, where Phillip cannot follow. Phillip calls his friend Sue and tells her that if she will enter the gym and observe Rachel, Roy will pay her $25 an hour for her services. Sue goes to the gym and observes Rachel for 3 hours, after which she bills Roy for $75. Must Roy pay Sue’s bill?
A. Yes, because Phillip was acting as Roy’s agent when he hired Sue
B. Yes, because Sue is entitled to collect on a quasi-contract basis
C. No, because Roy is not liable for contracts entered into by Phillip
D. No, because Sue is not a licensed private investigator
41) William owns his own business, performing document delivery for various clients. He is driving in his delivery van, taking some important documents to the courthouse for an attorney’s office, when he makes a wrong turn and causes an accident, damaging Ruth’s car. May Ruth recover a judgment against the attorney’s office?
A. Yes, because William was on an errand for the attorney at the time he caused the accident
B. Yes, because the attorney has more money than William, so Ruth will be able to collect
C. No, because William was on a dual-purpose mission
D. No, because William is an independent contractor
42) The primary factor that determines whether someone is an independent contractor or an employee is
A. whether the worker clocks in and out of the job
B. whether the employer controls the details of the job performance
C. whether the worker has other clients
D. whether the employer withholds taxes or not
The doctrine of stare decisis concerns