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

In all cases, state courts have concurrent jurisdiction with the federal courts.
Federal courts begin with exclusive jurisdiction until a state court intervenes.
In all cases, state courts have exclusive jurisdiction unless the state's Supreme Court grants jurisdiction to a federal court in the state.
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 sole proprietor shares control of the management of the business.
The sole proprietor keeps a portion of the profits from the business.
Profits are not taxed as the personal income of the sole proprietor.
A sole proprietor is personally liable for obligations of the business.

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

Consultation
Mediation
Case argument
Case analysis

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

Arbitration
Minitrials
Neutral case evaluations
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?

Annie has committed defamation of the college president in the form of slander.
Annie has committed defamation of the college president in the form of libel.
Annie has appropriated the photograph for commercial gain, which constitutes an invasion of privacy.
Annie has not committed any tort.

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.

Liability
Intentional
Negligent
Strict-liability

7) The violation of a duty of care is called

breach of responsibility
breach of statute
breach of duty
objectionable breaching

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

Intentional, negligent, and criminal
Intentional, criminal, and strict-liability
Intentional, negligent, and strict-liability
Criminal, negligent, and strict-liability

9) Which of the following are commonly used theories of recovery in product liability cases?

Negligence, negligence per se, and breach of warranty
Strict product liability, negligence per se, and breach of warranty
Breach of warranty, negligence, and negligence per se
Negligence, strict product liability, and breach of warranty

10) The person who makes an offer is called an

offeree
offeror
agreeor
agent

11) Which of the following is what a person will receive in return for performing a contractual obligation?

Consideration
Acknowledgement
Approval
Accord

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

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

When a dispute over an unliquidated debt is settled and is paid for less than the full amount
When a dispute over a liquidated debt is settled and paid for less than the full amount
When a dispute over an unliquidated debt is settled and paid for the full amount
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?

Yes, but only if a court reporter was present.
He can get accounts of statements, but not copies of written documents.
He can get the information only if the mediators in the other cases want to cooperate.
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?

Agency
Principality
Combination
Employment

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?

It will be assumed that the agent agreed to work for free on a gratuitous basis.
The principal will be allowed to set the price, which will be enforced unless it is unconscionable.
The court will appoint a magistrate to set the price.
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?

Title VII
Title VI
Title V
Title IV

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

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

The Fair Pay Act
The Fair Labor Standards Act
The Regulatory Wage Act
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?

Sally's plan is a good idea, and this type of picketing is frequently and legally engaged in by union members during labor disputes.
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.
Sally's plan is only legal if XYZ employees are represented by the same union as ABC employees.
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.

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.

Copyright
Patent
Trade secret
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?

Joint tenancy
True tenancy
Tenancy in common
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?

An injunction prohibiting the infringer from using the mark only
An additional amount of damages computed as a multiplier of 5 times the original damages
Damages, an injunction prohibiting the infringer from using the mark, and additional damages based on a multiplier of 5 times the original damages
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 commercial general liability policy
A business tort policy
A litigation commercial policy
An economic protection policy

25) Which of the following oversees the purchase and sale of securities?

The Securities Act of 1933
The Securities Exchange Act of 1934
The Depression Act of 1932
The Oversight Act of 1935

26) A workers' compensation insurance policy is an example of which of the following types of insurance?

Casualty
Loss
Business
Injury

27) How are directors typically chosen after the incorporation process?

By majority vote of the shareholders
By majority vote of all officers
By a two-thirds vote of shareholders
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?

She did not commit any violation.
She violated the duty of loyalty.
She violated the duty of care.
She violated the duty of understanding.

29) Which of the following best describes the term comparative law?

It is the study of the legal systems of different states.
It is the study of the laws governing the conduct of states and international organizations and their relationships with one another.
It is the study of the difference between public and private law in the United States.
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?

The U.S. Supreme Court has held that U.S. courts may disregard customary international law.
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.
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.

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.