Law 421 final exam new version 2016


1. ​Civil enforcement powers regarding federal antitrust matters belong to _______.

​the Treasury Department

​the Department of Revenue and Taxation

​the FTC and the Department of Justice

​the Department of Labor

2. Which of the following is true of tort law?

​It protects people from being tried twice for the same crime.

​Tort law typically deals with breach of contract.

​It provides compensation to those workers who have been injured on the job.

​It sets limits on how people can act and use their resources.

3. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention prices. The server takes their order and both Betty and Fred enjoy the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating and offer and acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the server merely asked “What may I get you tonight?” Which of the following is true? 

​Fred must pay based on an implied-in-fact contract theory.

​Fred must pay based on a promissory estoppel theory.

​Fred must pay based on expressed contract theory.

​Fred is correct because no contract was formed.

4. Which of the following statements is true of the WARN Act?

​It requires employers to give notice to an “at will” employee that he/she is being fired.

​It requires employers to give notice to employees that they are being subjected to polygraph tests.

​It requires employers to give notice to employees that an unscheduled drug test will be conducted for all employees.

​It requires employers to give notice of a scheduled mass layoff.

5. _____________ jurisprudence supports the idea that law can and should change to meet new developments in society. 




​Positive law

​6. Which of the following is true of the assumption of risks during delivery of goods? 

​The buyer is responsible for damages to goods when the seller is about to transfer for shipment.

​The seller is liable for any damages incurred to the goods during shipment.

​The buyer is liable for any damages incurred to the goods during shipment.

​The seller is always responsible for shipping the goods to the buyer.

​7. A 911 emergency response service needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint on the grounds of discrimination based on nationality. Their complaint is squashed. Here, the defense of the federal government is on the grounds of _______. 

​inculpatory evidence

​circumstantial evidence

​bona fide occupational qualifications

​exclusionary rule

8. Article 6 of the Treaty on European Union, called the Maastricht Treaty, states the EU is founded on:

​private markets

​rule of law

​specific performance

​stare decisis

9. Interpreting Congressional intent, which of the following is never a bona fide occupational qualification (BFOQ)?


​National origin



​10. Ethical formalists maintain that:

​the good of the many always supersedes the good of the few.

​harm to an individual is allowable as long as it serves a greater good.

​harm to individual rights is never justified by an increase in organizational or common good.

​values are situational and change based on circumstance.

11. The classification of crime is based on ________.

​punishment imposed if convicted

​prior record


​the judge’s prerogative

12. Which of the following issues of administrative agencies relates to the substantive outcome of agencies’ rule-making and adjudicating authority? 

​The administrative process is overwhelmed with paperwork and meetings.

​Enforcement of some laws varies over time.

​The reward system usually does not make a significant distinction between excellent, mediocre, and poor performance.

​It is very difficult to discharge unsatisfactory employees.

13. Which of the following is true of the use of alternative dispute resolution (ADR) techniques?

​Disputing parties can agree to use an ADR technique after the dispute arises.

​ADR techniques are ineffective once the pretrial process has begun.

​Disputing parties cannot use an ADR technique not specified in the original agreement.

​Disputing parties must begin a lawsuit to use any form of ADR.
​14. The crucial issue with the continuity factor of a business’s organizational form is _______.

​the method by which the business can be dissolved

​profit distribution

​the method of customer service observed

​management style

15. The ___________ holds that contracts or conspiracies in restraint are illegal only if they constitute undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are covered by the Sherman Act. 

​rules of per se legality

Parker v. Brown doctrine

​duty to deal doctrine

​rule of reason
​16. Interest-based negotiations are superior to position-based negotiations because:

​the difference between the interests of the parties is often large.

​interest-based negotiation requires the presence of a judge or magistrate.

​position-based negotiation is often only concerned with preparing for litigation.

​interest-based negotiations allow room for consideration of non-factual concerns, such as relationships and long-term interests.

17. The determination that a crime has been committed and that evidence is sufficient to warrant the accused standing trial is known as:

​nolo contendere.


​double jeopardy.

​probable cause.

18. Which of the following is true under the regulations of interstate commerce?

​Regulation on any activity is appropriate if it aids interstate commerce.

​Activities affecting interstate commerce do not come under the power of the deferral government.

​Intrastate activities affecting interstate commerce can be regulated only by the state governments.

​The states have the exclusive power to commerce that passes that passes across their lines.

​19. Finishing the construction of a home two days after the contract called for completion (no injury occurs) most likely will be considered _______.  

​significant performance

​substantial performance

​breach of contract

​implied performance

​20. Frequent, abusive, threatening phone calls by creditors are most likely to provoke the basis for a claim of _____________.

​intentional infliction of emotional distress

​malicious representation


​false imprisonment and malicious prosecution

21. Which of the following is true of a violation of trade secrets’ rights?

​One must misappropriate another’s information.

​Unauthorized use of another’s information constitutes a violation of trade secrets’ rights.

​One must use another’s information without permission.

​Stealing another’s intellectual property violates trade secrets’ rights. 

22. Which of the following states that parties to a written contract may not introduce oral evidence to change written terms? 

​The parol evidence rule

​Concurrent conditions

​Conditions subsequent

​The statute of frauds

23. In a(n) ___________, the shareholders are taxed only on income distributed.

​sole proprietorship


​limited partnership

​limited liability company

​24. ____________ is a court created rule that limits when courts can review administrative decisions. 

​The doctrine of estoppel

​The doctrine of lapse

​The doctrine of exhaustion of remedies

​The doctrine of primary jurisdiction
​25.  An employee at-will can be fired for which of the following?

​Making public statements about the hazardous working conditions in a company.

​Making public the fact that the employer was cheating the government on a defense contract.

​Taking time off from work to care for a dependent without informing the employer.

​Taking time off from work to serve on jury duty after the boss asked the employee to request a waiver.

26. The ideas and philosophies that explain the origin of law and its justification are called:


​stare decisis


​rule of law
​27. Federal law and business leaders alike favor ____________ as a means of governing private business ethics.

​establishment of federal regulators in all private companies to establish and enforce ethical standards

​self-regulation by companies

​giving the federal government exclusive jurisdiction regarding ethics and ethics violation enforcement

​creating uniform statutes of business ethics

​28. Which of the following is true in cases where only one party drafts the contracts that contain terms that appear vague and ambiguous to the other party? 

​The court will interpret the ambiguous and vague terms against the party that drafts them.

​The court will declare the drafting party’s behavior as a tort due to intentional ambiguity of terms.

​The court will interpret the terms as they mean in the common language.

​The court will reject the non-drafting party’s attempt to reinterpret the terms after the contract has been signed.

29. Myra offers to sell her home to Hanna for “about $100,000 plus closing costs.”  Hanna accepts Myra’s offer, but later a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute?  

​The court will appoint a licensed real estate appraiser to determine the price to be paid by Hanna.

​The court will require Hanna to pay the average of her price and Myra’s price.

​The court will declare the purchase price and terms too indefinite to create a binding contract.

​The court will determine a reasonable price to be paid by Hanna.

​30. Hillward Bakers has been using a blue HB logo with a baker’s hat on the HB since their inception ten years ago. Hobart Bakers, a newly opened bakery and confectionary chain, has used the same logo. Hillward has not registered its logo, but it chooses to sue Hobart anyway. Which of the following is true of this case? 

​Hillward can sue Hobart since the logo has been used by Hillward and is associated with it.

​Hillward cannot sue Hobart because logos cannot be patented or trademarked.

​Hillward cannot sue Hobart since the logo has not been registered as a trademark.

​Hobart can defend that Hillward created something that lacks utility and cannot be trademarked.




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