1.Law consists of enforceable rules governing relationships among indi¬viduals and between individuals and their society.

A) True

B) False

2.An action may be legal but not ethical.

A) True

B) False

3.Cato and Dolly are involved in a lawsuit. The best definition of a lawsuit is

A) a criminal prosecution, not a civil proceeding.

B) a failure to perform a legal obligation.

C) a judicial proceeding for the resolution of a dispute.

D) an enactment of law by a legislative body.

4.As a judge, Bonnie applies common law rules. These rules develop from

A) administrative regulations.

B) court decisions.

C) federal and state statutes.

D) proposed uniform laws.

5.The United States has a common law system. The common law system began:

A) in the Islamic courts of predominantly Muslim countries.

B) as part of Greek and Roman civil law.

C) as a body of general rules applied in courts throughout England.

D) as a code of legal principles enacted by continental European nations.

6.When there is a direct conflict between a federal and a state law, the state law is rendered invalid.

A) True

B) False

7.A crime can be committed only against persons.

A) True

B) False

8.Corporations, unlike persons, cannot be liable for crimes.

A) True

B) False

9.The police obtain a search warrant and search Ike’s apartment. After yelling obscenities at the officers, Ike confesses to a crime and impli¬cates his friends. The Constitution protects against

A) obscene speech only.

B) others’ implication only.

C) unreasonable searches only.

D) obscene speech, others’ implication, and unreasonable searches.

10.Via e-mail, Vern makes repeated credible threats to Ursula that put her in reasonable fear for her safety. This is

A) cyber stalking.

B) identity theft.

C) cyberterrorism.

D) no crime.

11.To avoid liability for negligence, a business owner must protect its pa¬trons against all risks.

A) True

B) False

12.A trademark must be registered to support a trademark infringement action.

A) True

B) False

13.Jim is an appliance salesperson. To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the “best one ever made.” This is

A) fraud if the statement is the truth.

B) fraud if Jim believes that this statement is not true.

C) fraud if Jim is stating his opinion, not the facts.

D) not fraud.

14.Jean is playing a computer game on a bad disk that melts in her drive, starting a fire that injures her hands. Jean files a suit against K-Tech, Inc., the game’s manufacturer. K-Tech is held liable under the doctrine of strict liability. A significant application of this doctrine is in the area of

A) cyber torts.

B) intentional torts.

C) product liability.

D) unintentional torts.

15.Kay and Leo copy and exchange MP3 music files over the Internet with¬out anyone’s permission. With respect to songs owned by Natural Recording Company, this is

A) copyright infringement.

B) fair use.

C) licensing.

D) protected expression.

16.A deceased joint tenant’s interest in jointly held property passes to his or her heirs.

A) True

B) False

17.Land includes the artificial structures attached to it.

A) True

B) False

18.Chatsworth loans his laptop to Zelda. This is

A) a bailment.

B) acquiring ownership by possession.

C) a gift.

D) treasure trove.

19.Buster conveys one square block in Center City “to Diana for life, then to Center City.” For Diana, this creates

A) a fee simple absolute.

B) a fee simple defeasible.

C) a life estate.

D) a nonpossesory interest.

20.Bay City wants to acquire undeveloped land within the city limits to convert into a public park. Bay City brings a judicial proceeding to obtain title to the land. This is

A) adverse possession.

B) an easement.

C) constructive eviction.

D) the power of eminent domain.

21.Contract doctrines apply to the landlord-tenant relationship.

A) True

B) False

22.A tenant has a duty to maintain in a reasonably safe condition those ar¬eas under his or her control.

A) True

B) False

23.A&B Storage, Inc., signs a six-month lease to occupy a warehouse. This is

A) a periodic tenancy.

B) a tenancy at sufferance.

C) a tenancy at will.

D) a tenancy for years.

24.Loretta rents an apartment from Larry. Larry refuses to fix a serious plumbing problem, and the apartment floods every time Loretta uses the water. Larry has breached

A) the implied warranty of habitability.

B) the reversionary interest.

C) the theory of respondeat superior.

D) the warranty of possession.

25.Hal videotapes what he intends to be his will and affixes a label to the tape that reads “Hal’s Will.” If Hal has capacity, this “will” is

A) valid if he signs the label.

B) valid if he signs the label and has at least three witnesses sign it.

C) valid if he signs the label, has at least three witnesses sign it, and files a copy of the tape in the appropriate state or county office.

D) invalid.

26.Rona and Stiv do business as Treasure Island Traders. In a deal with Unlimited Potential, Inc., Rona makes a bid in competition with her firm. Rona is

A) liable for breach of the duty of care.

B) liable for breach of the duty of economic sense.

C) liable for breach of the duty of loyalty.

D) not liable.

27.Clu, Dolf, and Elton do business as Fertile Valley Farm. Clu’s relationship to the firm ends, but it continues to do business. This is

A) dissociation.

B) dissolution.

C) winding up.

D) wrongful.

28.A business incorporated in one state has an automatic right to do business in any other state.

A) True

B) False

29.Sangfroid Business Corporation can be compelled to dissolve by

A) its creditors only.

B) itself, through its shareholders and directors, only.

C) itself, through its shareholders and directors, or the state.

D) the state only.

30.A director is a fiduciary of a corporation.

A) True

B) False

31.Some promises are not legally binding contracts.

A) True

B) False

32.Elin decides to try to sell her collection of celebrity memorabilia in an auction “with reserve.” If Elin changes her mind, she can withdraw her collection

A) only before the auctioneer announces that the items are sold.

B) only before the auctioneer delivers the items to the buyers.

C) under no circumstances.

D) within thirty days after the auction.

33.Barney offers to sell his Call Marketing Center to Domino for $100,000. Domino replies, “The price is too high. I will offer to buy it for $90,000.” Domino has

A) accepted the offer.

B) made a counteroffer without rejecting the offer.

C) rejected the offer and made a counteroffer.

D) rejected the offer without making a counteroffer.

34.Contractual capacity refers to the legal ability to enter into a contract.

A) True

B) False

35.If a minor disaffirms a contract, he or she must disaffirm the entire contract.

A) True

B) False

36.A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.

A) True

B) False

37.Gina, a minor, enters into a contract to buy a tractor from Herb, an adult. If the deal is set aside, restoring Gina and Herb to their original positions prior to a contract is

A) ratification.

B) emancipation.

C) disaffirmance.

D) restitution.

38.Olivia, a minor, signs a contract to buy a computer from Phil, the owner of Quotient Computer Store. Olivia’s right to disaffirm the contract

A) does not change the fact that Phil is bound by the contract.

B) does not yet exist because Olivia is still a minor.

C) gives Phil, an adult, the right to disaffirm the contract.

D) is not valid because a computer is a “necessary.”

39.Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is

A) voidable if Fay has a lucid interval at the time of contracting.

B) voidable if Fay lacks the capacity to comprehend the consequences.

C) voidable if the other party does not realize that Fay is incompetent.

D) unavoidable.

40.Unconscionable means unethical or unfair.

A) True

B) False

41.Neville represents himself as a contractor in Oregon, but he is not licensed in that state. A contract between Portia and Neville by which Neville agrees to excavate and build an agricultural pond for Portia in Oregon is

A) enforceable only if Portia’s neighbors do not object to the work.

B) enforceable only if Portia knows that Neville is unlicensed.

C) enforceable only if Portia does not know that Neville is unlicensed.

D) not enforceable.

42.Nyoko signs a covenant not to compete with her employer, Midstate Distribution, Inc. The covenant will be enforced if it

A) does not require either party to obtain a business license.

B) is reasonable with respect to geographic area and time.

C) is supported by consideration.

D) none of the choices.

43.Volume Sales Corporation directs its marketing of discounted products to less educated consumers. In considering the unconscionability of a Volume contract, a court might look at

A) a buyer’s level of education.

B) the parties’ relative bargaining power.

C) the price of the products.

D) all of the choices.

44.Through fraudulent means, Hiram induces Imelda to sign a contract to build resort cabins on land that Hiram does not own. Imelda performs, but Hiram does not pay. When Imelda learns the truth, she may

A) do nothing with respect to the contract.

B) recover for the performance or its value.

C) recover for the performance only.

D) recover the value of the performance only.

45.Doug signs a contract with Elinor to kill Faris. Elinor pays Doug but he re¬fuses to perform. Elinor can

A) enforce the contract only if she is not going to aid in the crime.

B) not enforce the contract.

C) successfully sue Doug for the return of the money paid.

D) successfully sue Doug to perform.

46.A general contractor who suspects that a subcontractor’s bid is a mis¬take can still enforce the bid.

A) True

B) False

47.To rescind a contract is to cancel it.

A) True

B) False

48.Kurt persuades Leo to buy his bicycle by telling Leo that the bike rides “like the wind.” Kurt’s statement is

A) duress.

B) fraud.

C) puffery.

D) undue influence.

49.Raylene, who is Seth’s guardian, convinces him to buy a certain parcel of land from Trevor at a greatly inflated price. Raylene may be liable for

A) duress.

B) fraud.

C) puffery.

D) undue influence.

50.Gary threatens physical harm to force Henry to sell his business, Imported Goods, Inc., to Gary for a below-market price. This is

A) duress.

B) fraud.

C) puffery.

D) undue influence.