1) 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

A. negotiation

B. settlement conference

C. conciliation

D. arbitration

2) The Federal Trade Commission is an example of

A. a federal agency created by the federal government

B. a corporation subsidized by the federal government

C. a branch of the U.S. Supreme Court

D. a temporary commission created by executive order that has become permanent

3) A corporation is considered a citizen of what state?

A. The state where the majority of the employees live

B. It is not a citizen because it is a business

C. The state where it filed its Articles of Incorporation

D. The state where the president of the corporation lives

4) The Federal False Claims Act is also known as

A. the Sarbanes-Oxley Act

B. the Whistleblower Statute

C. the Statute of Frauds

D. the Statute of Limitations

5) 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 following the Golden Rule (do unto others as you would have them do unto you)

C. ethics requires actions which use the most efficient tools

D. ethics requires acting according to the Bible or some outside source

6) Which of the following statements is true?

A. If something is legal, it is always ethical.

B. Practices that are legal in the United States are legal everywhere in the world.

C. Practices that are ethical in the United States are considered ethical everywhere else in the world.

D. A course of action can be legal but not ethical.

7) If a defendant files a motion for summary judgment in a civil case, what is the defendant saying?

A. That the plaintiff's claims are false

B. That the court has no jurisdiction to decide the case

C. That the case is ready to go to the jury

D. That even if what the plaintiff says is true, there is no basis for judgment against the defendant

8) A defendant fails to answer a civil lawsuit, what is likely to happen?

A. A court will contact the defendant and ask him to answer the lawsuit.

B. The court will grant a default judgment against the defendant.

C. The case will be appealed before the court makes a ruling.

D. The court will order that the defendant go to jail until he or she agrees to answer.

9) 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. quasi in rem jurisdiction

D. enumerated jurisdiction

10) Harry Hoosier, an Indiana resident, drives his family to Florida for spring vacation. When he is at a red light, Freddie Floridian, a Florida resident, is unable to stop in time and his vehicle impacts Harry's car from the rear. No one is hurt and Harry's vehicle suffers approximately $10,000 in damages. Which is correct?

A. Harry can sue Freddie in federal court in Florida but not in Indiana.

B. Harry can sue Freddie in state court in Florida or Indiana.

C. Harry can sue Freddie in state court but not federal court in Florida but not in Indiana.

D. Harry can sue Freddie in state court but not federal court in Florida or Indiana.

11) Monica owed Bob $500 for a business investment, 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. Yes, because Bob communicated the statement to third persons.

D. No, because Bob had been drinking.

12) What is the definition of a tort?

A. Any violation of an ethical duty

B. Any crime or misdemeanor

C. Any action done in violation of a prior agreement, which allows the victim to recover damages

D. Any civil wrong that allows the injured person to recover damages

13) Pete and Vicky make the following agreement: Pete promises he will go into a store, buy something for $5, and pay for it with a $100 bill on which he has written "Happy Birthday Vicky!" Vicky promises that after Pete collects his change and leaves the store, she will go into the same store, buy something that costs $5, and pay with a $10 bill. When the clerk attempts to give her change for $10, Vicky will claim that the $100 bill that is in the cash register was money she just received for her birthday, and will demand change from a $100 bill. Then Pete and Vicky will split the extra money they think Vicky will receive in change. Is this a valid contract?

A. This is a valid contract. There was a promise in exchange for a promise, and both parties got what they wanted.

B. This is a void contract, because the parties agreed to commit fraud.

C. This is a voidable contract because

D. Injunctions are generally not available to protect trade secrets.

14) An easement can be defined as

A. a limited right to use another person's land for a specified purpose

B. a relaxation of the borderlines between two parcels of land

C. a life estate in the property of another

D. an option to purchase the land of another

15) 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, Louie, and now Joe will own the property as tenants in common.

B. Huey and Louie will still own the property as tenants in common, but Joe will have a reversionary interest.

C. The transfer of the interest to Joe will be ineffective because the other two did not consent.

D. Joe will make Huey pay rent.