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What is the common law?

Select one:

a.

Law created by administrative agencies

b.

Law created by Congress and state legislatures

c.

Judge-made law in Great Britain and its former colonies

d.

Law that creates the structure of the government in the United States

Question 2

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What is the United States Supreme Court's authority to decide the meaning of the Constitution known
as?

Select one:

a.

Stare decisis

b.

Judicial review

c.

Diversity jurisdiction

d.

Subject matter jurisdiction

Question 3

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Jose is from the state of Florida. While driving in Montana, his car is hit by a car driven by Kareem, who
is from New York. Jose hears that the courts in Texas are generally favorable to plaintiffs. He sues
Kareem in Texas. The court would likely reject the case based on which of the following?

Select one:

a.

Lack of standing

b.

The case being moot

c.

The case not being ripe

d.

Lack of personal jurisdiction

Question 4

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At the commencement of a trial, each party will present an opening statement. Which of the following is
true about that statement?

Select one:

a.
It is argumentative.

b.

It describes the facts that will be proven based upon evidence.

c.

It explains to the judge why certain jurors should be dismissed.

d.

It raises objections to questions posed during direct examination of witnesses.

Question 5

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How is mediation similar to litigation?

Select one:

a.

The process is adversarial

b.

A neutral third party is involved

c.
The process is slow and complex

d.

Parties are bound by decisions of the mediator

Question 6

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What is a major drawback of negotiation?

Select one:

a.

It follows strict rules of evidence.

b.

It is prone to situations involving unequal bargaining power between the parties.

c.

It relies on experts who may be biased in their evaluation of and ultimate ruling on the case.

d.

It is court-ordered and therefore less likely to result in an agreement both parties are willing to accept.

Question 7

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A tort may be defined as which of the following?

Select one:

a.

Civil and criminal wrongs generally

b.

A civil wrong, including breach of contract

c.

A civil wrong, other than breach of contract

d.

A criminal wrong that is also punishable civilly

Question 8

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Michael owns a bowling alley. The bowling alley serves pizza and beer in the restaurant area only.
Although workers try to keep the equipment and bowling lane area clean, some patrons still get them
dirty with their greasy fingers. Patron Tammy breaks her big toe when she loses grip on greasy bowling
ball and drops it on her big toe. Will the bowling alley be held liable for Tammy's broken toe?

Select one:

a.

Yes, because the bowling alley is liable for this type of foreseeable accident.

b.

Yes, because the bowling alley is strictly liable for injuries that occur on its premises.

c.

No, the bowling alley will not be held liable because a patron made the bowling ball greasy.

d.

No, the bowling alley will not be held liable because Michael had no knowledge of the dirty equipment.

Question 9

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While a plaintiff alleging negligence against a company may prove the company had a duty, the
company breached its duty, and the plaintiff suffered legally recognizable injuries, the plaintiff would still
have to prove which of the following?

Select one:
a.

The company was the cause of the injuries.

b.

The company had no defenses to its breach.

c.

The company was strictly liable for its breach.

d.

The company committed the breach on purpose.

Question 10

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Yolanda and Margaret are officemates. During an argument, Yolanda called Margaret a thief, although
Yolanda knew her accusation was untrue. Has Yolanda committed slander?

Select one:

a.

Yes, because she knows her accusations are untrue.

b.

Yes, because she has met the spoken word requirement for slander.
c.

No, because Yolanda's accusations were not in printed form.

d.

No, because the argument was between Yolanda and Margaret.

Question 11

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For intentional torts, the element of intent requires which of the following?

Select one:

a.

That the tortfeasor had a duty of care that is violated

b.

That the tortfeasor intended to harm a person or property

c.

That the tortfeasor intended to do the act which caused harm

d.

That the tortfeasor acted with malice in harming a person or property

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Tavern sold alcohol to a customer who was obviously intoxicated. Under what legal theory can the
tavern be held liable for injuries caused when the intoxicated customer struck and injured a pedestrian?

Select one:

a.

Negligence

b.

Malpractices

c.

Strict liability

d.

Assumption of risk

Question 13

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Quik Meds hired Frank as a delivery driver. Because there was a backlog of deliveries, the company
allowed Frank to work pending the outcome of his background investigation. Shortly after he was hired,
Frank was caught stealing a customer's purse. The customer was injured in the scuffle over her purse.
The customer later sued Quik Meds for negligent hiring. Quik Meds defended itself by arguing it was not
liable for an employee's actions. Is this a viable defense?

Select one:

a.

Yes, because employees are liable for their own torts.

b.

Yes, because Frank was not acting on behalf of Quik Meds when he engaged in the misconduct.

c.

No, because Quik Meds failed to conduct a background search on Frank.

d.

No, because Quik Meds is strictly liable for employee on-the-job conduct.

Question 14

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Question text

Dorothy's celebrity beautician scheduled too many Saturday appointments at one time. As a result,
Dorothy was unable to take her sister, Ursula, to work at her job as a dog groomer. Because Ursula's
client wasn't able to get her dog properly groomed on Saturday, the dog suffered from a severe allergic
reaction to flea bites and had to be taken to the vet. The vet bill was $150. Can the client successfully
sue the celebrity beautician for negligence?

Select one:

a.

Yes, because there was no break in the events once they were set in motion.

b.

Yes, because the beautician was acting negligently by scheduling too many appointments on Saturday.

c.

No, because it was Dorothy's fault for not taking Ursula to work on time.

d.

No, because there is no solid connection between the beautician's behavior and the pet's allergic
reaction.

Question 15

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Which of the following lists the required elements of a valid common law contract?

Select one:
a.

Offer and acceptance, consideration, capacity, legal purpose

b.

Offer and acceptance, consideration, capacity, contract in writing

c.

Offer and acceptance, exchange of money, capacity, legal purpose

d.

Offer and acceptance, exchange of promises, capacity, legal purpose

Question 16

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All common law contracts must contain which of the following, meaning there must be a bargained-for
exchange of promises or acts, and each party must incur a new legal detriment or obligation?

Select one:

a.

Valid acceptance

b.
Valid capacity

c.

Valid consideration

d.

Valid offer

Question 17

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I offer to sell you my car for $6,000 and you say that you will buy it so long as your spouse likes it. This is
an example of which of the following?

Select one:

a.

A bilateral contract

b.

An illusory contract

c.

A unilateral contract
d.

The mirror image rule

Question 18

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Which of the following is an example of a bilateral contract?

Select one:

a.

Adele offers to sell her cell phone to Boris for $25; Boris says he will pay Adele $25 for her cell phone
next Saturday.

b.

Adele says to Boris and her other friends, "If someone gave me a dollar, I'd give them my cell phone;"
Boris hands her a dollar.

c.

Adele offers to sell her cell phone to Boris for $25; Boris pays Adele $25 and Adele says she will give
Boris the cell phone next Saturday.

d.

Adele says to Boris and her other friends, "I'd like to sell my cell phone;" Boris says he'll give Adele a
dollar; Adele says she'll give the cell phone.

Question 19

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Yolanda offers to sell her laptop computer to Zoe for $200; Zoe agrees to pay Yolanda $200 for the
laptop; the next day Zoe gives Yolanda $150 and a $50 gift card to a local store in payment. Is Zoe
discharged from the contract?

Select one:

a.

Probably, because Yolanda has gotten the value she bargained for.

b.

Probably, because in this circumstance substantial compliance would be reasonable.

c.

Probably not, because Yolanda doesn't like the store that the gift card is from.

d.

Probably not, because in this circumstance strict compliance would be reasonable.

Question 20

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Question text

For which of the following scenarios would the remedy of specific performance be available?

Select one:

a.

A firm promises delivery of 50,000 widgets and only delivers 25,000 because of a shortage.

b.

A painting contractor promises to paint a business's premises but then attempts to change the terms by
increasing the price.

c.

A store advertises leather jackets for sale at $10.99 each; when a buyer shows up, he is told it was a
mistake, and the real price is $109.99.

d.

A company attempts to buy a rare antique connected with the history of the company; the seller, after
agreeing to the sale, now does not want to sell.

Question 21

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Suzette is a housekeeper from France. She contracted with a company to work abroad. Her employment
contract was written in Chinese, which she does not read or speak. A month after arriving for her work
assignment, Suzette learns that her contract has several clauses that she objects to. Can Suzette make a
valid argument that she be allowed to disaffirm the employment contract?
Select one:

a.

Yes, because she lacked capacity at the time of the signing.

b.

Yes, because employment contracts can be disaffirmed at will.

c.

No, because the employment contract was in writing.

d.

No, because she was not suffering from a mental incapacity.

Question 22

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Stewart and Kellie are art students. Stewart told Kellie that he would sell her his art supplies for $250. If
he did not hear back from Kellie by the end of the month, he would assume that she wanted to buy the
supplies. If Kellie later refuses to purchase the supplies, can Stewart win a breach of contract lawsuit
against Kellie?

Select one:

a.

Yes, because Kellie did not respond; therefore, her silence indicated her acceptance of the offer.
b.

Yes, because Stewart did not sell the art supplies to anyone else.

c.

No, because there was no mutual assent between Stewart and Kellie.

d.

No, because Stewart failed to provide a detailed description of the art supplies.

Question 23

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A bill of exchange involves how many parties?

Select one:

a.

b.

c.

4
d.

Question 24

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Which of the following is a type of negotiable instrument in which the maker warrants to pay a certain
amount to the payee?

Select one:

a.

Draft

b.

Money order

c.

Promissory note

d.

Bill of exchange

Question 25

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What is intangible personal property?

Select one:

a.

Property that can be mined

b.

Property that can be touched

c.

Property that does not physically exist

d.

Personal property attached to real property

Question 26

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How does tangible personal property differ from intangible personal property?

Select one:

a.

Tangible property cannot become a fixture; whereas, intangible property can become a fixture.

b.

Tangible property can be classified as chattel; whereas, intangible property cannot be classified as
chattel.

c.

Tangible personal property cannot be sold as fungible property; whereas, intangible property can be
sold as fungible property.

d.

Tangible property cannot be treated as intellectual property; whereas, intangible property can be
treated as intellectual property.

Question 27

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Under a joint tenancy in real property, which of the following situations is true?

Select one:

a.
The surviving owner has the right of survivorship.

b.

The right of survivorship applies only to married couples.

c.

One joint tenant may sell his or her interest in the property to a third party.

d.

The owners have an undivided interest in the property, equal rights of possession, and a divisible
interest.

Question 28

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Which of the following occurs when a tenant remains in an apartment after the lease has ended and
without the landlord’s permission?

Select one:

a.

Tenancy at will

b.

Tenancy in common
c.

Tenancy at sufferance

d.

Tenancy by the entirety

Question 29

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To be eligible for a trademark, a logo must identify which aspect of a certain product or service?

Select one:

a.

Its value

b.

Its origin

c.

Its purpose

d.

Its category
Question 30

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Cozy Drinks, Inc. sells gourmet coffee grounds in bean-shaped mugs. The company would like to
trademark its product. Can it?

Select one:

a.

Yes, if the mug shape is distinctive.

b.

Yes, if it the mug's shape calls to mind a particular service mark.

c.

No, because container shapes are functional and therefore generic.

d.

No, because shapes of product containers are protected by patent law.

Question 31

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Sandbox, Inc. has greatly improved the method for processing silica used in oil drilling. Which of the
following would the company need to protect its intellectual property?

Select one:

a.

Copyright

b.

Trade dress

c.

Utility patent

d.

Design patent

Question 32

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What does copyright protect?

a.

Brands and identity

b.

Creative expression

c.

Processes and inventions

d.

Confidential company information

Question 33

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In the United States, how long does copyright protection last after the death of the author?

Select one:

a.

30 years

b.
50 years

c.

70 years

d.

90 years

Question 34

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In the United States, how long does trade secret protection last?

Select one:

a.

25 years

b.

50 years

c.

70 years

d.
Forever

Question 35

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Richie has a paid subscriber-based web site. He has written a decryption program that allows users to
circumvent encryption technology movie studios use to prevent piracy. What will result if Richie is sued
for copyright violation?

Select one:

a.

Richie will win, because he has made the decryption software public.

b.

Richie will win, because his decryption software is a form of free speech.

c.

Richie will lose, because his decryption program is not open-source software.

d.

Richie will lose, because he has violated the anti-circumvention provision of the Digital Millennium
Copyright Act.

Question 36

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Big Brix hired apprentice Malik as an at-will employee in January. In February, Malik joined a local union
representing workers at his company. The union's collective bargaining agreement stated that
employees could only be discharged for cause. Can the employer terminate Malik at will?

Select one:

a.

Yes, because Malik is an apprentice and therefore subject to less protection under employment law.

b.

Yes, because the company has an at-will employment contract with Malik that took effect in January.

c.

No, because the company has a collective bargaining agreement with the union.

d.

No, because the company did not have Malik sign a new at-will employment contract in February.

Question 37

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In the United States, anti-discrimination laws modify which doctrine, which holds that an employer can
generally terminate an employee for any reason?

Select one:

a.

At-will

b.

Prevailing wage

c.

Collective bargaining

d.

Wrongful termination

Question 38

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The regulation of relations between employers and labor organizations in the United States is governed
by which act?

Select one:

a.

Title VII Act

The Sherman Act

c.

The Employment at Will Act

d.

The National Labor Relations Act

Question 39

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Which of the following scenarios violates Title VII of the Civil Rights Act of 1964?

Select one:

a.

A restaurant refuses to hire anyone under 21 years of age to work at its bar.

b.

A home health company allows clients to choose gender-specific caregivers.

c.

A religiously-affiliated university only hires individuals who are followers of the same faith.
d.

A casting director will only hire Native Americans to play roles in a film depicting early the life of
Geronimo.

Question 40

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Which of the following is a management tactic for dealing with negotiation breakdown during collective
bargaining?

Select one:

a.

Boycott

b.

Lockout

c.

Picket

d.

Strike

Question 41

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A ____ is a less serious criminal offense than a(n) ____.

Select one:

a.

felony; infraction

b.

felony; misdemeanor

c.

misdemeanor; felony

d.

misdemeanor; infraction

Question 42

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Which of the following is an example of a felony?

Select one:

a.

Homicide

b.

Jaywalking

c.

Trespassing

d.

Disturbing the peace

Question 43

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Question text

The Economic Espionage Act is a federal statute in the United States that criminalizes which of the
following?

Select one:

a.

Fraud
b.

Theft of trade secrets

c.

Theft of intellectual property

d.

Stealing government financial secrets

Question 44

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Which of the following situations can be described as white collar crime?

Select one:

a.

A warehouse employee takes a hammer and damages the engine of a forklift.

b.

A warehouse manager strikes a compliance officer, when she is accused of stealing.

c.

A warehouse employee threatens his manager with a knife in the process of stealing products.
d.

A warehouse manager charges less than the invoice for delivery of goods and puts the difference in her
bank account.

Question 45

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If a prospective business owner told you he wanted to organize his business in a way that would result in
no registration and allow him to exercise the fullest control, you would likely advise him to choose which
of the following business entity types?

Select one:

a.

Corporation

b.

Sole proprietorship

c.

Limited partnership

d.

Limited liability company

Question 46
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Every owner in which of the following is jointly and severally liable for the debts and obligations of the
organization?

Select one:

a.

Partnership

b.

Corporation

c.

Limited partnership

d.

Limited liability company

Question 47

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Question text

Which of the following identifies one aspect of general partnerships that may be advantageous?

Select one:

a.

Limited liability

b.

Separate legal existence

c.

An extensive body of flexible law

d.

May be formed and dissolved easily

Question 48

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Garrod Smith is a master woodcarver and sole owner of "Smith Custom Doors, LLC." Which of the
following advantages applies to his business form?

Select one:

a.
The business is not a taxable entity.

b.

The business is a separate legal entity from Garrod Smith.

c.

The business is not taxed as a corporation or sole proprietorship.

d.

The business makes Garrod liable for only half of the business' debt.

Question 49

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Which of the following statements best describes the Sherman Act?

Select one:

a.

The Sherman Act established the United States Securities and Exchange Commission.

b.

The Sherman Act allows the US government to regulate activities that restrain competition and trade.

c.
The Sherman Act allows the US government to regulate the trade of corporation shares on stock
exchanges.

d.

The Sherman Act established stronger reporting requirements for boards of public corporations and the
managers and accountants who work for them.

Question 50

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What are Blue Sky Laws?

Select one:

a.

Federal regulations that protect air quality

b.

Federal regulations that telecommunication airways

c.

State and federal regulations that regulate securities industry

d.

State regulations that protect investors against securities fraud