1. Ann is troubled with the noise from an old generator set up by her neighbor Jose at his residence. The noise the generator makes is unbearable. Ann sues Jose for nuisance. Will she succeed?
Yes, because the noise is interfering with Ann’s use and enjoyment of the land.
No, because the generator is not on her property.
No, because she cannot interfere with Jose’s personal matters.
No, because it is a reasonable noise.
2. Which of the following is likely to be forbidden by Title VII?
Discrimination against a woman solely because she is a lesbian.
Discrimination against a man solely because of his gender.
Discrimination against a black woman solely because of her religion.
Discrimination against a person of French ancestry because he “talks like an Englishman.”
3. Gath Meat Packing Company is a meat processing business. To reduce costs and increase profits, the president and CEO of Gath orders Gath’s employees to violate federal criminal meat processing laws. The United States Department of Justice prosecutes Gath for criminal violations of the meat processing law. Has Gath committed criminal violations?
Yes, because the president and CEO, a high-level administrator of Gath, authorized the commission of the crimes.
No, because the board of directors did not authorize the president and CEO or the other employees to violate federal law.
No, because a corporation is not liable for most crimes committed by its agents.
Yes, because a corporation is always liable for the crimes committed by its agents.
4. For which of the following would a shareholder derivative action be appropriate?
The shareholder alleges that the corporation has violated the shareholder’s preemptive right.
The shareholder alleges that the board of directors has imprudently managed the corporation.
The shareholder has refused a request that his/her accountant be permitted to look at the corporate accounting records.
The shareholder alleges that the corporation has been paying dividends to a previous shareholder from whom the shareholder purchased his/her shares.
5. To prove his or her due diligence defense under the Securities Act Section 11 with regard to audited financial statements, an officer of the issuer must prove which of the following?
The officer had no intent to misstate or omit a material fact in the audited financial statements.
The officer had no reason to believe the financial statements omitted or misstated a material fact.
The officer made a reasonable investigation into the accuracy of the audited financial statements.
The officer believed the financial statements did not omit or misstate a material fact.
6. _________ is the plaintiff’s voluntary consent to a known danger.
Negligence per se
Assumption of risk
7. Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now _____.
bilateral, executory, and implied
bilateral, executed, and voidable
unilateral, executory, and valid
bilateral, executory, and express
8. Which of the following is true about a sole proprietorship?
A sole proprietorship is a legal entity.
A sole proprietorship cannot sue or be sued.
A sole proprietorship as a form of business can be transferred to someone else.
A sole proprietorship has a life of its own apart from its owner.
9. _____________ means the accused failed to perceive a substantial risk of harm that a reasonable person would have perceived.
10. The board of directors of Filex Corporation, at a regular meeting of the board, entered into a contract with Ginger Grant, one of the directors. This contract called for Filex to purchase 120 acres of land from Ginger. Of the ten members on the board, eight were present at the meeting. One of the directors present was Ginger. All the other directors were disinterested in the transaction and not related to Ginger. After a lengthy discussion, six directors voted in favor of the contract and two voted against it. Ginger voted for the contract. Which of the following is true?
The contract is valid since it was approved by a majority of a quorum of the board.
The contract becomes void if the corporation proves that the contract was unfair to it.
The contract is voidable unless Ginger proves that the contract is fair to the corporation.
The contract between Ginger and the corporation is illegal and invalid.
11. A limited partnership:
May not have a corporation as a general partner.
May be taxed either as a partnership or as a corporation.
May be created by default.
Dissolves when a partner dies.
12. A method of alternative dispute resolution in which a neutral third party helps the parties reach a resolution of the dispute by facilitating communication, clarifying areas of agreement, helping see each other’s viewpoints, suggesting settlement options, but who cannot make decisions that bind the parties, is called _______.
13. Jacobs put an old typewriter in the trash. The trash collector, Land, took the typewriter, fixed it up, and sold it to Jones for $750. Jacobs contends that he is entitled to some or all of the $750 that Land received from Jones. Based on these facts:
Jacobs is entitled to recover the typewriter from Jones.
Land is entitled to keep the full $750 because Jacobs had abandoned the typewriter.
Jacobs is entitled to the $750 because Land paid Jacobs no consideration for the typewriter.
Land is entitled to the value of the improvements he made, but Jacobs is entitled to the difference between the $750 Land received and the value of the improvements Land made.
14. Which of the following is true regarding the principle of separation of powers?
The President can allow the Supreme Court to overturn very broad delegation of power to administrative agencies.
The Constitution seeks to ensure that governmental powers remain accountable to the public will.
Congress is allowed to create an administrative agency only if Congress, rather than the President, will appoint the commissioners or board members of the agency.
The congressional delegation of legislative power to an agency in its enabling legislation may never be challenged.
15. In which of the following cases does apparent authority arise?
When a principal causes a third party to believe that the agent is authorized to act in a certain way.
When a principal’s manifest consent is communicated directly to the agent.
When an agent reasonably believes that the principal wants him to act in a certain way.
When a person falsely represents himself as an agent of a principal to a third party.
16. According to the law, crimes are statutory offenses; this essentially means that:
The prevention of crime should include deterrence and rehabilitation.
Courts may assess punitive damages in order to punish the wrongdoer.
It must be proved that the crime is dangerous or detrimental to society.
A behavior is not a crime unless a state legislature has criminalized it.
17. Ted is the president of Soprano Corporation (SC). Ted decided to have SC manufacture large, gas-guzzling SUV automobiles just before gasoline prices rose dramatically. As a result, SC lost billions of dollars. The shareholders of SC want to sue Ted for this bad decision that cost them billions. However, Ted had made a reasonable investigation before making this decision, he had a rational basis for it, and he had no conflicts of interest regarding this decision. What would be the probable outcome if the shareholders file a suit?
Ted is liable under the ultra vires rule.
Ted is liable under the various liability rule.
Ted is not liable under the corporate protection rule.
Ted is not liable under the business judgment rule.
18. Which of the following is also called “judgemade” law?
19. Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy’s booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards that did not appear to be for sale. Reggie said to Tracy, “I will give you $200 for that painting right now.” Tracy said nothing in response but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now _____.
unilateral and executory
bilateral and executory
bilateral and executed
unilateral and executed
20. Under the doctrine of federal jurisdiction, a corporation is:
A citizen of only the place where it has been incorporated.
A citizen of only the state where it has its principal place of business.
A citizen of that state which has enacted a “long arm” statute and thus has jurisdiction.
A citizen of both its place of incorporation and the state where it has its principal place of business.
21. Which of the following is true about cases regarding the intentional infliction of emotional distress?
The plaintiff must be emotionally susceptible in order to recover.
All courts require that the plaintiff’s emotional distress have physical manifestations.
The defendant should exhibit sufficiently unreasonable behavior for liability.
The plaintiff’s emotional distress must be severe.
22. Which of the following statements is true of copyright?
Copyrights for work-for-hire last for 50 years.
Copyrights and patents last forever.
Congress enacts copyright rules under the WIPO.
There are different copyright rules for pre- and post-1978 works.
23. A plaintiff will succeed against her employer in a disparate treatment case under Title VII if she can prove that _____.
her employer rarely approves of her requests for leave of absence
her employer discriminates against her on the basis of race
her employer does not pay her well
her workload is very high
24. The damages recoverable in a patent infringement case cannot be less than:
three times the damages actually suffered, and to be decided by the court.
court costs and interest.
reasonable royalty for the invention by the creator.
reasonable royalty for the use of the invention by the infringer.
25. A contract in which one or more parties have the legal right to cancel their obligations under the contract is called a(n):
26. An essential element of a tort is that the alleged defamatory statement must be “of and concerning” the plaintiff. Why?
It is extremely difficult to prove.
It aims to protect reputation.
It concerns public figures.
It places the burden on the defendant.
27. Which of the following is an accurate statement about powers delegated to and possessed by administrative agencies?
Most administrative agencies are given restricted powers to comply with the constitutional principle of separation of powers.
An agency’s rulemaking power would be classified as discretionary power rather than ministerial.
The most important administrative agencies typically possess rulemaking powers but lack adjudicatory powers.
Modern courts tend not to uphold the validity of broad delegations of power by Congress to administrative agencies.
28. Which of the following is true of a person’s capacity to be a principal or an agent?
To be an agent, a person must have the capacity to perform non-delegable obligations for the principal.
To be an agent, a person must have the ability to make his own contracts, independent of the principal.
A principal must have the capacity to do the acts for which the agent has been retained.
Any duty that a principal has the capacity to perform can be delegated to an authorized agent.
29. The typical dissolution of a corporation requires approval of the _____.
creditors of the company
board of directors
30. A “long arm” statute allows:
Criminal courts jurisdiction over civil cases
State courts more power than federal ones
Appellate courts to hear new cases
Courts jurisdiction over out-of-state defendants