1.
A federal trial court judge is deciding a case based on constitutional law. The judge finds a past appellate case that is very similar to the current case and decides to follow the ruling established by the prior court.

Which legal concept describes why this decision is binding on future cases?

YOUR
ANSWER	CORRECT
ANSWER
Stare decisis
Legal positivism
Res ipsa loquitur
Administrative law
2.
What is an example of the concept of precedent?

YOUR
ANSWER	CORRECT
ANSWER
A dissent written by a justice of the Supreme Court
An injunction issued by a judge of an appellate court
A case that a lower trial court identifies as resolving a similar issue
A decision of an administrative agency that deals with a related matter
3.
An employee leaves the company office and is injured by a falling tree branch. The employee sues the company. The trial court rules that the company is liable for the worker's injury. This decision goes against past precedent, which held that employers are not liable for injuries to employees outside the office. The company appeals the decision, and a U.S. court of appeals holds in the company's favor.

How will future rulings by judges who disagree with the court of appeal's findings be affected by this precedent?

YOUR
ANSWER	CORRECT
ANSWER
The court of appeals will sanction future judges who fail to follow precedent.
The court of appeals will order the lower courts that fail to consider precedent to rehear the case.
Future rulings of trial courts that fail to consider precedent will be overturned by the court of appeals directly.
Future rulings by judges who disagree with a U.S. court of appeal's ruling will be taken up directly by the Supreme Court.
4.
During a state trial, the following testimony is recorded: An individual working for Firm A learns of a contract between Firms B and C. The individual goes to Firm C and convinces it to break its contract with Firm B and enter into a new contract with Firm A. The individual lies to Firm A about personal involvement in the conflict, saying Firm C decided to break the contract with Firm B on its own. The individual repeats the same lie to Firm B.

Which state trial action brought by Firm B is supported by this scenario?

YOUR
ANSWER	CORRECT
ANSWER
Civil trial for making false statements
Criminal trial for making false statements
Civil trial for tortious interference with a contract
Criminal trial for tortious interference with a contract
5.
During a state trial, the following testimony is recorded: An individual holds an online auction claiming to be selling the rights to a large bridge in New York. The individual does not own the bridge or have any claim to it. A small business is looking to establish a paving contract with the City of New York and bids $1 million in the auction for the bridge, hoping to leverage the bridge into a contract with the city. The small business wins the auction and pays the individual $1 million, only to learn that the individual does not have a legal claim on the bridge.

Which trial action brought by the state is supported by this scenario?

YOUR
ANSWER	CORRECT
ANSWER
Criminal trial for fraud
Civil trial for slander of title
Civil trial for tortious interference
Criminal trial for making false statements
6.
During a state trial, the following testimony is recorded: An individual holds an online auction claiming to be selling the rights to a valuable apartment building. A small business owner wins the auction and pays the individual $1 million, only to learn that the individual did not disclose that the apartment building has serious structural defects. In a panic, the small business owner burns down the building and asks the insurance company to pay for the loss.

Which trial action brought by the state against the small business owner is supported by this scenario?

YOUR
ANSWER	CORRECT
ANSWER
Civil trial for arson
Criminal trial for fraud
Civil trial for tortious interference
Criminal trial for making false statements
7.
Which type of law governs a claim for age discrimination in private employment?

YOUR
ANSWER	CORRECT
ANSWER
Criminal law
Statutory law
Common law
Constitutional law
8.
What is the principal source of stare decisis and precedent?

YOUR
ANSWER	CORRECT
ANSWER
Statutory law
Common law
Constitutional law
Administrative law
9.
From which source do laws governing crimes primarily arise?

YOUR
ANSWER	CORRECT
ANSWER
Civil law
Statutory law
Common law
Constitutional law
10.
A rent-to-own store offered for sale a sofa that was manufactured in a foreign country. The store intentionally represented that the sofa was made from leather, but in reality it was made from vinyl. A consumer used a credit card to purchase the sofa and hopes the Federal Trade Commission regulations can help resolve the dispute.

How would these regulations help this consumer?

YOUR
ANSWER	CORRECT
ANSWER
They offer fraud insurance for small businesses.
They prohibit unfair or deceptive acts or practices.
They oversee products imported from foreign countries.
They require merchants to honor the warranties on the products they sell.
11.
Congress passes a law that directs the Department of the Treasury (DoT) to regulate large withdrawals of cash from banks in an effort to detect cash withdrawals that might be used for organized crime or terrorism. The DoT issues a regulation that requires banks to track cash withdrawals of their customers who withdraw more than $10,000 in cash and requires banks to submit reports of such withdrawals to the Treasury.

What effect would this regulation have on a customer that wants to withdraw $12,000?

YOUR
ANSWER	CORRECT
ANSWER
The customer would have to complete the required form to withdraw funds in this amount from the bank.
The customer would be free to withdraw funds in this amount without interference from the government.
The customer would not be able to withdraw funds in this amount because Congress has forbidden withdrawals above $10,000.
The customer would not be able to withdraw funds in this amount because treasury regulations forbid withdrawals of more than $10,000 in cash.
12.
In the case of Miranda v. Arizona, a defendant was accused of a crime and then questioned by police. The defendant was not reminded of the right to a lawyer during the interrogation. The defendant confessed to the crime and signed a sheet of paper with a paragraph at the top indicating awareness of the right to a lawyer. The U.S. Supreme Court overturned the conviction, indicating the pressure involved in an interrogation could cause the accused to forget certain rights, and thus the lack of a lawyer for the accused made the confession inadmissible.

Based on this precedent, which situation describes an improper interrogation?

YOUR
ANSWER	CORRECT
ANSWER
Police using sign language interpreters to inform a deaf suspect of the Miranda rights and to interrogate the suspect
Police interrogating a deaf suspect after giving the Miranda warning verbally and proceeding to question the subject in writing
Police interrogating a suspect for eight hours in the presence of an attorney who is too exhausted to effectively advise the client
Police arresting and convicting an intoxicated suspect, who contends that his Miranda rights were violated due to his intoxication
13.
In the case of Palsgraf v. Long Island Railroad Co., a woman preparing to board a train was injured when another passenger tripped and fell, dropping a package filled with fireworks. The package was innocuous-looking, wrapped in newspaper, and the railroad had no knowledge of its contents. Nonetheless, the woman sued Long Island Railroad arguing negligence. The judge found the railroad not at fault and no tort to be redressed.

Which future case will this decision affect?

YOUR
ANSWER	CORRECT
ANSWER
A negligence case in which a consumer slips on a wet floor in a supermarket with no warning signs
A strict product liability case in which a customer uses a fork in an unforeseeable way and is injured
A product liability case in which a customer falls from a ladder that lacks slip-resistant steps and is injured

A negligence case in which a property owner sues a neighbor after the neighbor's overgrown tree branch falls and damages a vehicle
14.
In Alaska Packers' Association v. Domenico, a group of Alaskan fishermen agreed to a contract with a fishing company and were sent to California to fish. Upon arriving in California, the fisherman refused to do the job unless paid a higher wage rate. The company, having little time before the fishing season ran out, agreed under duress to the higher wage rate. After the fishing season was over, the company refused to pay the higher wage, and the workers sued. The U.S. Court of Appeals for the Ninth Circuit sided with the company, ruling that the fishermen had already agreed to perform the job, and as a result, the second contract where the company agreed to a higher wage was unenforceable.

Which situation would be impacted by this ruling?

YOUR
ANSWER	CORRECT
ANSWER
A group of firefighters arrive at a fire and then refuse to put out the fire unless the municipality raises their salaries.
A union announces a strike, which causes the employer to fire the workers and replace them with automated machinery.

A shipping company seeks to fire fishermen because they have complained about safety conditions on the docks and boats.
A group of flight attendants vote to unionize and ask for a higher wage at the next contract bargaining session two years later.
15.
Federal law recognizes a special kind of Native American sovereign authority that protects Native American courts from state authority. A non-Native American is visiting on a reservation and violates a law of the reservation. The individual feels the law is a violation of the Constitution and wants to challenge its validity.

What process should the individual take to determine the law's standing under the U.S. Constitution?

YOUR
ANSWER	CORRECT
ANSWER
Request that lawmakers on the reservation review the law
Petition lawmakers in the state to overrule the Native American law
Challenge the statute in a federal court to review the constitutionality
Ask the Native American court to review the constitutionality of the statute
16.
Congress wishes to pass a new environmental bill. However, the president has vetoed the bill.

Under which scenario will this bill become a law?

YOUR
ANSWER	CORRECT
ANSWER
If one-half of the House and five-ninths of the Senate votes to override the veto
If two-thirds of the House and two-thirds of the Senate votes to override the veto
If there is a majority vote among registered voters
If there is a majority vote among Congressional voters
17.
A hair stylist and client disagree over whether the stylist properly styled the client's hair. A third party, who is neutral in the debate, works with both of them in an attempt to resolve their dispute.

Which function does the third party serve in this situation?

YOUR
ANSWER	CORRECT
ANSWER
Mediator
Arbitrator
Sole negotiator
Intermediary agent
18.
Which scenario is an example of mediation?

YOUR
ANSWER	CORRECT
ANSWER
A couple decides to have their attorneys work out the differences in a divorce case.
An individual works as a neutral party between parties to help them resolve differences.
The chief executive officers of two corporations decide to drop lawsuits against each other and settle the case one-on-one.
A judge works on a TV show where people agree to waive rights to a jury trial and have the cases decided by the judge.
19.
A customer buys a car from a car dealer. The sales contract contains the following term: "In the event of a dispute, Buyer agrees that before filing a lawsuit, the Buyer must submit the claim to a neutral third party who will work with both parties to attempt to resolve the dispute but who will not have the authority to make a decision."

Which type of alternative dispute resolution is being described in this situation?

YOUR
ANSWER	CORRECT
ANSWER
Mediation
Arbitration
Negotiation
Reconciliation
20.
Company A and Company B agree to the use of an independent third party to resolve a contract dispute. The third party decides in favor of Company B.

Which type of alternative dispute resolution is this an example of?

YOUR
ANSWER	CORRECT
ANSWER
Mediation
Arbitration
Negotiation
Reconciliation
21.
Two people are in a car accident, and one sues the other. On the day before the trial, the defendant says to the plaintiff, "Let's work out the differences so there doesn't have to be a trial." Both parties sit down over lunch and reach an agreement. The plaintiff drops the case.

Which alternative dispute resolution is this?

YOUR
ANSWER	CORRECT
ANSWER
Mediation
Arbitration
Negotiation
Reconciliation
22.
What is a form of arbitration?

YOUR
ANSWER	CORRECT
ANSWER
Two parties agree to attempt to resolve a dispute.
Two parties agree to have attorneys attempt to resolve a dispute.
Two parties agree to have a third party that has the power to make the final decision help them resolve a dispute.
Two parties agree to have a third party that does not the power to make the final decision help them resolve a dispute.
23.
Match each role played in the dispute resolution process with the correct title.

Answer options may be used more than once or not at all. Select your answers from the pull-down list.


 		YOUR
ANSWER	CORRECT
ANSWER
	Decides an outcome	Arbitrator	Arbitrator
	Guides the parties to an outcome	Mediator	Mediator
Allows equal time for the parties to be heard	Mediator	Arbitrator
Decides the amount of time for the parties to be heard	Arbitrator	Mediator
24.
Which two processes are used in alternative dispute resolution?

Choose 2 answers


YOUR
ANSWER	CORRECT
ANSWER
Litigation
Mediation
Negotiation
Subrogation
25.
What is within the power of a mediator?

YOUR
ANSWER	CORRECT
ANSWER
Determining the importance of disputed issues
Determining a binding result for disputed issues
Making a written finding of fact on disputed issues
Deciding on a compromise to resolve disputed issues
26.
Which resolution is characteristic of arbitration?

YOUR
ANSWER	CORRECT
ANSWER
A private award
A public decision
A provisional ruling
An advisory opinion
27.
What is the role of the mediator in mediation?

YOUR
ANSWER	CORRECT
ANSWER
Making an award
Guiding the parties
Arguing for a result
Conducting a hearing
28.
Company A sends the following letter to Company B: "We have 500 widgets available for you to purchase. We propose to sell them to you for $100 each. Do you accept?"

Company B replies, "We promise to accept your offer if we decide to purchase them."

Why have the two companies failed to form a legally binding contract?

YOUR
ANSWER	CORRECT
ANSWER
Company A's offer is indefinite.
Company B's acceptance is illusory.
Company B's reply is a contract modification.
Company A's letter conflicts with the parol-evidence rule.
29.
On Monday, Company A sends the following letter to Company B: "We have 500 widgets available for you to purchase. We propose to sell them to you for $100 each. This offer is to remain open until Friday."

On Saturday, Company B sends the following reply by mail: "We accept your offer." Company A receives this letter on Monday.

Have the two companies formed a legally binding contract?

YOUR
ANSWER	CORRECT
ANSWER
Yes, because of the mailbox rule
No, because of a lack of consideration
Yes, because the time limit in Company A's offer is not legally effective
No, because Company A's offer expired before Company B accepted it
30.
Company A sends the following letter to Company B: "We have 500 textbooks available for you to purchase. We propose to sell them to you for $100 each." Company A attaches a form letter that includes many terms. Two days later, Company B sends a form letter that includes additional terms and alternative warranty provisions.

Have the two companies formed a legally binding contract?

YOUR
ANSWER	CORRECT
ANSWER
No, because of the mirror-image rule
No, because Company A's offer has expired
Yes, because definite acceptances may add terms to the offer
Yes, because warranty provisions play no role in contract formation
31.
An individual hires a contractor to build a house, with the express order to use a specific type of electrical wiring. The contractor's crew, however, does not use the electrical wiring requested, but rather, another brand. The error is not discovered until after the house is almost complete, and it is too late for the contractor to replace the wiring without rebuilding the entire structure. The prospective homeowner does not want to pay, but a court rules that despite the mistake, the contractor has discharged the obligation under the contract.

Which type of discharge is present?

YOUR
ANSWER	CORRECT
ANSWER
Impossibility
Performance
Substantial performance
Commercial impracticability
32.
A concert organizer has agreed, by contract, to provide talent from a singer at a concert occurring on Sept. 5, 2015. After the contract was executed, but before the performance, the singer died. Under these circumstances, the concert organizer's obligation has been discharged.

Which type of discharge occurred?

YOUR
ANSWER	CORRECT
ANSWER
Impossibility
Performance
Mutual agreement
Substantial performance
33.
A customer enters into a contract to buy a piano from a store for $3000, including delivery, and prepays a $100 deposit. The store fails to deliver the piano. The customer immediately purchases the same piano from a different vendor for $3200.

What should the original store pay the customer under the expectation interest?

YOUR
ANSWER	CORRECT
ANSWER
$0
$100
$300
$3000
34.
A customer has a contract to buy a used car from a car dealership for $12,000. The customer backs out of the contract, refusing to pay. The dealership sells the car to a different customer for $11,000 a month later. The dealership pays $500 to maintain the car during that month.

Which type of damages can be claimed as a remedy arising from the $500 in losses?

YOUR
ANSWER	CORRECT
ANSWER
Direct
Reliance
Incidental
Consequential
35.
A customer has a contract to buy a piano from a store for $3,000 and pays the store a $500 deposit. The store fails to deliver the piano. The customer immediately purchases the same piano from a different vendor for $2,900.

What are the customer's damages?

YOUR
ANSWER	CORRECT
ANSWER
$100, the difference between the contract prices
$500, the amount of the original deposit
$2,900, the buyer's new cost
$3,000, the contract price
36.
Student A has just completed taking Economics 101 and asks Student B, who has enrolled in the same class the following semester, if the student wants to purchase the used books for $150. Student B promises to buy the books if that is what she decides to do when the semester begins. Student B later refuses to buy the books, saying no valid contract was in place.

Why is the contract invalid?

YOUR
ANSWER	CORRECT
ANSWER
Because Student A exerted undue influence on Student B
Because Student B's acceptance was an illusory promise
Because implied contracts are invalid for amounts under $500
Because the two students failed to commit the contract to writing
37.
An individual owns and operates a food truck. When the truck's refrigeration system breaks down, the owner decides to sell the truck without fixing it. When a buyer expresses an interest in purchasing the food truck, the owner states that the refrigeration is in good working order and sells the food truck. When the buyer discovers the refrigeration does not work, the buyer demands a refund and claims that the contract is invalid.

Why is the contract invalid?

YOUR
ANSWER	CORRECT
ANSWER
Because the seller made fraudulent representations
Because the buyer's acceptance was an illusory promise
Because the buyer was under duress at the time of purchase
Because an ordinance banning food trucks negates the contract
38.
An individual has an employment contract with a national software developer, X Corporation. The contract contains a noncompetition provision and a confidentiality clause. The individual leaves this job and goes to work for a start-up company. At the start-up company, the individual is helping to design software that, upon completion, will be competitive with X Corporation's software.

Which two types of damages could X Corporation assert against the employee and the start-up company?

Choose 2 answers


YOUR
ANSWER	CORRECT
ANSWER
Reformation of its contract with the employee to correct any mistakes in the contract
Specific performance that orders the employee to return to the job with X Corporation
Damages for the employee's breach of the employment contract that causes loss of software sales to X Corporation
An injunction to prevent the employee from working and possibly sharing confidential company information with the start-up company
39.
A couple makes plans to go out of town. The couple agrees to pay a friend $150 per day for four days, plus travel expenses, to watch the house. The friend agrees and tells the couple that in order to watch the house, he will need to change the oil in his vehicle and will need to miss two days of regular work.

On the appointed weekend, the friend makes the two-hour drive to the couple's house, only to find that the couple decided not to go out of town after all.

Match each of the remedies pertaining to this situation with the category of damage.

Answer options may be used more than once or not at all. Select your answers from the pull-down list.


 		YOUR
ANSWER	CORRECT
ANSWER
	The amount paid to change the oil in preparation for travel to the house	Reliance damages	Reliance damages
The amount of the friend's actual travel expenses to and from the couple's house
Consequential damages	Direct damages
The amount of salary the friend would have made during the two missed days of work
Expectation damages	Consequential damages
The amount of $600, which is what the friend would have been received had the couple gone out of town
Direct damages	Expectation damages
40.
An individual looks at several laptop models at a computer store. The individual chooses one and tests it in the store. While doing so, the individual finds the hard drive has 100 gigabytes of data capacity. The individual purchases the model that was tested. Once home, the individual finds that the computer is the identical make and model of the one that was tested, but it has only 50 gigabytes of data capacity.

Is the buyer likely to win a suit for breach of warranty?

YOUR
ANSWER	CORRECT
ANSWER
No, because the salesperson made no statements about the data capacity
Yes, because 50 gigabytes of storage makes the computer unmerchantable
No, because the buyer never told the salesperson the computer needed to come with 100 gigabytes of storage
Yes, because the sample model constitutes a warranty that the actual goods bought will be just as good as the sample
41.
An individual cannot decide which dish to order at a restaurant. The customer asks the waiter for a recommendation. The waiter responds, "The Mediterranean Chicken is the best dish the restaurant makes." The individual, however, does not like the chicken. The waiter tries to satisfy the customer by providing a free dessert.

Is the restaurant patron likely to win a suit for breach of warranty?

YOUR
ANSWER	CORRECT
ANSWER
Yes, because the chicken was unmerchantable
No, because a breach of warranty failed to occur
No, because the waiter gave the customer a free dessert
Yes, because the waiter warranted that the chicken was great
42.
Match each scenario with the correct warranty.

Answer options may be used more than once or not at all. Select your answers from the pull-down list.


 		YOUR
ANSWER	CORRECT
ANSWER
An auto-body shop guarantees its repairs for as long as the purchaser owns the car. The repairs fail.	Implied warranty of fitness	Express warranty
	Individual A sells a stolen scooter to Individual B for $600. The true owner sees it parked in front of a coffee shop and calls the police to retrieve it.	Warranty of title	Warranty of title
	Person A designs a website for Person B. Person B is sued by a company because the website design is similar to the company's website.	Warranty of infringement	Warranty of infringement
A poodle breeder sells a tea cup poodle to a customer who trains tea cup poodles for competition. The tea cup poodle turns out to be a toy poodle.	Express warranty	Implied warranty of fitness
43.
An individual purchases a valuable painting from an antique shop. The antique shop is unaware that the painting was stolen. The individual loans the painting to a local museum. The true owner sees the painting and presents proof of ownership and title. The purchaser surrenders the painting to the true owner and sues the antique shop.

Which type of warranty was breached?

YOUR
ANSWER	CORRECT
ANSWER
Warranty of title
Warranty of fitness
Warranty of infringement
Warranty of merchantability
44.
Person A reports three books being stolen. A week later, Person A recognizes Person B carrying the stolen books. Person B had been sold the books by Person C.

Which type of warranty can Person B claim that Person C breached?

YOUR
ANSWER	CORRECT
ANSWER
Title
Fitness
Infringement
Merchantability
45.
A private nuclear reactor leaks radiation. Nearby residents suffer from radiation poisoning. It is determined that the reactor was working properly when it failed.

Which legal doctrine supports a cause of action for radiation poisoning?

YOUR
ANSWER	CORRECT
ANSWER
Strict liability
Failure to warn
Negligence per se
Assault on a person
46.
A farm has had no violations in past quarterly state compliance inspection. One day the farm's pressure washers break, which leads to the farm's machines being improperly cleaned over a two-month period. Traces of a chemical to kill weeds are accidentally mixed with animal feed at the farm. Consumers who eat products from the farm absorb some traces of the chemical and suffer from thyroid problems. Management was not alerted to the situation until it initiated quarterly maintenance in preparation for the state inspection.

Which cause of action is actionable for the consumers who ate the contaminated food?

YOUR
ANSWER	CORRECT
ANSWER
Failure to warn
Negligent design
Negligent manufacture
Infliction of emotional distress
47.
An individual, who is allergic to white gold, buys jewelry made only of pure silver. The individual purchases a pair of earrings that are labeled pure silver but, in fact, were made of white gold. After wearing the earrings for several hours, the individual goes into shock.

Which legal theory is actionable for this individual?

YOUR
ANSWER	CORRECT
ANSWER
Strict liability
Express warranty
Negligent manufacture
Implied warranty of fitness
48.
In a state that has adopted the Uniform Commercial Code, a buyer purchases a used commercial grade freezer "as is" and without an express written warranty in the sales contract. The seller affirms that the freezer made ice last week, but the freezer is unable to attain temperatures below 30 degrees at the highest setting. The buyer subsequently has to purchase another freezer to prevent loss of inventory.

Which legal theory is actionable for the buyer?

YOUR
ANSWER	CORRECT
ANSWER
Express oral warranty
Express written warranty
Implied warranty of fitness
Implied warranty of merchantability
49.
It is raining outside when an individual walks into a store. The wet individual slips and falls on a dry floor. The individual is injured and sues the store, claiming negligence. The store owner argues that the individual would have slipped and fallen regardless of where the individual was walking and that the store did nothing wrong.

Which type of argument is the store owner making?

YOUR
ANSWER	CORRECT
ANSWER
Lack of duty
Lack of damages
Lack of factual cause
Lack of proximate cause
50.
Driver A crashes into Driver B, and Driver B is injured. Driver B sues Driver A for negligence. Driver A argues that there is no legal responsibility to other drivers on the road, and thus there is no liability.

According to Driver A, which element of negligence is missing?

YOUR
ANSWER	CORRECT
ANSWER
Damages
Factual cause
Proximate cause
Duty of due care
51.
An individual walks into a store, slips, and falls on the floor. The individual is injured and sues the store claiming negligence. The store manager argues that several signs warning customers about the wet floors were posted, so the store should not be held liable.

Which element is unfulfilled, according to the store?

YOUR
ANSWER	CORRECT
ANSWER
Damages
Factual cause
Breach of duty
Proximate cause
52.
A homeowner has a naturally occurring pond in the backyard. A neighbor’s child trespasses onto the homeowner's property to fish in the pond without permission and is bitten by a turtle living in the pond. The neighbor sues the homeowner for negligence.

Which fact creates the most significant defense for the homeowner?

YOUR
ANSWER	CORRECT
ANSWER
The turtle is wild.
The pond is natural.
The pond is unfenced.
The child was uninvited.
53.
An employer is frustrated by Employee A's attitude at work. Office gossip causes the employer to believe Employee A is in a band. Employee B, who is friends with Employee A on social media, also works at the company. The employer blocks Employee B from exiting the office and forces Employee B to show the employer Employee A's private social media page.

For which tort will the employer be held liable to Employee A?

YOUR
ANSWER	CORRECT
ANSWER
Assault
Slander
Intrusion
Emotional distress
54.
Two fans argue over a seat at a concert. Fan A stands up and says, "Fine, just take the seat, jerk," while slapping fan B on the back and walking away.

Which tort has Fan A committed?

YOUR
ANSWER	CORRECT
ANSWER
Battery
Assault
Intentional intrusion on person
Intentional infliction of emotional distress
55.
An individual is in a theater watching a movie. Behind the individual is a group of patrons who are making loud comments throughout the movie. At the end of the film, the individual turns to the group and says, "You should really learn some manners," and then goes into a restroom in the theater. One of the rude patrons responds by intentionally blocking the individual's exit from the bathroom stall.

Under which theory of tort will the rude patron be held liable?

YOUR
ANSWER	CORRECT
ANSWER
Battery
Defamation
False imprisonment
Tortious interference
56.
Two people live in the same neighborhood complex. Neighbor A wants to take Neighbor B's speed boat out on the lake in the complex, but Neighbor B is on vacation and doesn't answer the phone. Neighbor A knows where the keys to the boat are kept and takes the boat out for the afternoon.

Neighbor A eventually docks the boat without a scratch and puts the keys back, intending to refill the gas tank later.

Which tort supports Neighbor B's claim against Neighbor A?

YOUR
ANSWER	CORRECT
ANSWER
Theft
Fraud
Negligence
Conversion
57.
A crop-dusting company takes inventory of all equipment and chemicals every year. Hazardous chemicals, which are usually kept in a locked cabinet, are left out on a table after the inventory and are found by a group of kids who break into the facility. As a joke, one of the kids covers body parts with a crop-dusting chemical and suffers significant injury.

Is the crop-dusting company strictly liable for the child's injury?

YOUR
ANSWER	CORRECT
ANSWER
No, because the company did not intend for the injury to occur
No, because the kids were trespassing when the injury occurred
Yes, because the use of crop-dusting chemicals is an ultrahazardous activity
Yes, because the company did not use reasonable care to keep the chemicals locked away
58.
A manufacturer of explosives ships goods all over the country by truck. While in transit, explosives falls off the back of a company truck, explodes, and causes damage to a bridge.

Under which theory is the company liable to the owner of the bridge?

YOUR
ANSWER	CORRECT
ANSWER
Strict liability
Intentional tort
Res ipsa loquitur
Ordinary negligence
59.
An employee is responsible for completing certain reports by the end of the day but is unable to finish after beginning to feel ill. After the employee asks to be taken to the hospital, the employer locks the employee in the office with the unfinished reports. Three hours later, the employee is found unconscious. Doctors determine that the employee's injuries could have been avoided if the employee had received medical attention two hours earlier.

Which type of claim is relevant to the employee's injuries?

YOUR
ANSWER	CORRECT
ANSWER
Failure to warn
Assault and battery
False imprisonment
Fair labor standards
60.
An employee works in a state that requires that employers maintain workers' compensation insurance. Neither the employee nor the employer is aware a piece of equipment is leaking radiation. The manufacturer's technicians know the radiation levels are high but falsify reports to meet performance metrics. An employee develops radiation poisoning caused by the equipment.

Which claim is relevant to the injuries the employee suffered?

YOUR
ANSWER	CORRECT
ANSWER
A claim against the leasing company for battery
A claim against the manufacturer for products liability
A claim against the employer for failing to maintain the equipment
A claim against the architect for negligent design of the work space
61.
An employee who works for a development company has recently ended a relationship with a coworker. Following the relationship, the coworker wants to get the employee fired. Using social engineering and password manipulation, the coworker hacks the company's internal data to release the employee’s private electronic communications over the public Internet. The Internet service provider documents the coworker's apparent authority to secure the transaction. The employee works in a state that does not require employers to maintain workers' compensation insurance.

Which type of claim is relevant to the employee's injuries?

YOUR
ANSWER	CORRECT
ANSWER
A claim against the employer for hostile work environment
A claim against the employer for the acts of the coworker
A negligence claim against the manufacturer of the security system
A negligence per se claim against the manufacturer of the security system
62.
An individual operates a child daycare service. The parents of one of the children assert that the business negligently cared for their daughter, allowing her to fall off a swing set and break an arm. One of the daycare employees references the incident on social media and comments that there are not enough employees to look after the children and that the staff is not well trained.

Which duty has the employee violated?

YOUR
ANSWER	CORRECT
ANSWER
The duty to provide information to the principal
The duty of care owed by an agent to the principal
The duty of loyalty owed by an agent to the principal
The duty of an agent to obey instructions from the principal
63.
The owner of a bed and breakfast hires a manager to supervise all special events. The manager makes the decision to purchase two large outdoor tents. When the tents arrive, the owner refuses delivery, stating that the order was not authorized and the bed and breakfast didn't need the tents. The tent company sues the owner and the manager individually for breach of contract.

Which duty does the manager owe the owner in this situation?

YOUR
ANSWER	CORRECT
ANSWER
Duty to indemnify
Duty to cooperate
Duty to obey instructions
Duty to provide information
64.
An employee is upset about a situation at work regarding what the employee views as unfairly low compensation. The employee wishes to express an opinion about the unfairness of the situation without violating his duties to the employer. The employee is trying to determine the duties owed to the employer in this situation under the National Labor Relations Act.

In which situation is the employee fulfilling all duties owed to the employer under the law?

YOUR
ANSWER	CORRECT
ANSWER
If the employee is above the supervisor level
If the employee is expressing views regarding non-work issues
If the employee is campaigning for a specific grievance
If the employee is campaigning outside of work among other employees
65.
A machinery company agrees to pay a salesperson a commission for every machine sold by the salesperson. However, whenever the company receives a purchase order from certain customers of the salesperson, it cancels the order and then contacts the customers directly to sell the machine, thus avoiding paying a commission.

Which duty is the machinery company failing to perform in this situation?

YOUR
ANSWER	CORRECT
ANSWER
Obedience
Cooperation
Compensation
Indemnification
66.
An employer and employee recently entered a contract that specifies compensation for the employee. The contract also specifies how and when the job should be performed.

Which type of authority has been formed in this relationship?

YOUR
ANSWER	CORRECT
ANSWER
Implied
Alluded
Express
Apparent
67.
An employer hires an individual with no experience for a position, knowing that the new employee would require training and monitoring. The new employee exercises great care performing the job requirements but is largely unsupervised by the employer. The new employee fails to properly encrypt customer files, resulting in a security breach and the disclosure of personal information of 50 customers.

Which type of claim will the customers successfully assert against the employer?

YOUR
ANSWER	CORRECT
ANSWER
Intrusion
Negligence
Negligence per se
Intentional infliction of emotional distress
68.
Match each type of organization with its ownership requirements.

Answer options may be used more than once or not at all. Select your answers from the pull-down list.


 		YOUR
ANSWER	CORRECT
ANSWER
	missing answer text	A3B1C2D3	A3B1C2D3
69.
Match each description with the correct business organization.

Answer options may be used more than once or not at all. Select your answers from the pull-down list.


 		YOUR
ANSWER	CORRECT
ANSWER
	Has a single owner without any formal legal structure	Sole proprietorship	Sole proprietorship
	Owners are shareholders, who elect a board of directors.	Corporation	Corporation
	Relatively new, flexible, flow-through entity mainly governed by the operating agreement	Limited liability company	Limited liability company
Set up by two or more co-owners, a flow-through entity that provides a liability shield for its owners	General partnership	Limited liability partnership
Set up by two or more co-owners, a flow-through entity that provides no liability shield for its owners	Limited liability partnership	General partnership
70.
A former client is suing a general partnership for not fulfilling its fiduciary responsibilities.

Which partner(s) may be liable?

YOUR
ANSWER	CORRECT
ANSWER
Each partner may be held liable.
The managing partner alone may be liable.
The majority owner alone is protected under the partnership.
Each partner may be protected from liability under the partnership.
71.
Several friends are starting a rental property business together. To formalize the ownership arrangement, the friends are seeking an enterprise structure that automatically allows limited liability, transferability of ownership interest, and unlimited duration.

Which enterprise structure offers these advantages?

YOUR
ANSWER	CORRECT
ANSWER
Partnership
Corporation
Joint venture
Proprietorship
72.
One of the owners of a local business has decided to leave, resulting in dissolution.

Which form of ownership structure would have this result by default?

YOUR
ANSWER	CORRECT
ANSWER
S corporation
C corporation
Sole proprietorship
General partnership
73.
An individual wants to start a business quickly, so ease of setup is a main concern. The individual is not worried about personal liability or the ability to raise capital, and the individual wants to have as few registration forms as possible.

Which business entity is appropriate in this situation?

YOUR
ANSWER	CORRECT
ANSWER
S corporation
C corporation
Sole proprietorship
Limited liability company
74.
An individual wanting to start a business was initially considering an organization that allowed pass-through income and reduced personal liability, but after consulting with a lawyer, the individual is concerned that investors may pierce the veil on the liability shield.

Which business entity should this individual start to avoid these issues?

YOUR
ANSWER	CORRECT
ANSWER
S corporation
C corporation
Sole proprietorship
General partnership
75.
Why do loans and certificates of deposit qualify as securities?

YOUR
ANSWER	CORRECT
ANSWER
Both involve a borrower and a lender.
Money is invested in a common enterprise.
Both have a stated interest rate and a face value.
Money is committed for a specific amount of time.
76.
What is a role of the U.S. Securities and Exchange Commission when regulating a publicly traded company?

YOUR
ANSWER	CORRECT
ANSWER
Assist firms in raising funds
Levy fines for illegal transactions
Distribute funds of bankrupt companies
Provide financial statements to investors
77.
What is a characteristic of the Securities Act of 1933?

YOUR
ANSWER	CORRECT
ANSWER
It establishes ongoing disclosure rules for public firms.
It establishes liability for selling unregistered securities.
It prohibits untrue statements from those involved with a stock purchase.
It prohibits activities within a business that would deceive potential investors.
78.
Which transactions are prohibited under the Sarbanes-Oxley Act for executive officers of a public company?

YOUR
ANSWER	CORRECT
ANSWER
Personal loans
Receipt of bonuses
Annual compensation payments in excess of one million dollars
Personal purchases of company stock outside of blackout periods
79.
Which body has the regulatory authority to require firms that audit publicly traded companies to register and remain subject to inspection?

YOUR
ANSWER	CORRECT
ANSWER
U.S. Congress
Financial Accounting Standards Board
Securities and Exchange Commission
Public Company Accounting Oversight Board
80.
A company that recently filed an IPO submits an audited annual report on Form 10-K. Last quarter, the company filed an unaudited 10-Q. The company filed a registration statement after the IPO and gave investors a copy of the prospectus before the IPO.

Which obligations, if any, are being met by the company in this situation?

YOUR
ANSWER	CORRECT
ANSWER
The company is meeting its obligations under both the 1933 Act and 1934 Act.
The company is meeting its obligations under the 1933 Act, but not the 1934 Act.
The company is meeting its obligations under the 1934 Act, but not the 1933 Act.
The company is meeting neither its obligation under the 1933 Act nor the 1934 Act.
81.
An employer in the security industry is doing routine background and credit checks on all employees. During the credit check, several errors are discovered on the employee’s credit report. The employee wants to resolve the issue.

Which law governs the employee’s rights regarding this matter?

YOUR
ANSWER	CORRECT
ANSWER
Truth in Lending Act
Fair Credit Reporting Act
Equal Credit Opportunity Act
Fair Debt Collection Practices Act
82.
A car manufacturer advertises a brand new vehicle and claims the car gets 60% higher gas mileage than a comparable vehicle from a rival car manufacturer. An independent laboratory tests both vehicles under a variety of conditions, and the results confirm the claim to be false. The rival car manufacturer's model actually gets better mileage in every possible scenario.

Which federal law is intended to protect consumers in this situation?

YOUR
ANSWER	CORRECT
ANSWER
Sarbanes-Oxley Act
Federal Trade Commission Act
Commerce Clause of the U.S. Constitution
Motor Vehicle Consumer Protection Act of 2008
83.
Which consumer protection is afforded by the Truth in Lending Act?

YOUR
ANSWER	CORRECT
ANSWER
Companies must promptly investigate and respond to any consumer complaint about a credit card bill.
Individuals can stop payment on a transfer by giving written notice up to three business days before the scheduled date.
Banks may withdraw an account and charge an overdraft fee provided that the consumer signs up for overdraft protection.
Credit cardholders are liable for the first $50 in unauthorized charges made before the company is notified that the card is stolen.
84.
When can an employer obtain a credit report, according to the Fair Credit Reporting Act?

YOUR
ANSWER	CORRECT
ANSWER
An employer can obtain a credit report on prospective employees but not on current employees.
An employer can obtain a credit report on current employees but not on prospective employees.
An employer may obtain a credit report on prospective or current employees without permission.
An employer may obtain a credit report on prospective or current employees who give permission.
85.
A newly hired employee at a company has been asked to join the union. The employee is concerned about promotions and advancements with the new employer.

What can a union do to satisfy this concern?

YOUR
ANSWER	CORRECT
ANSWER
Negotiate a provision providing fair promotions
Reduce the duration of the probationary period
Promise a raise and promotion within two years
Offer benefits and a pay raise during the probation period
86.
A prospective employee has two job offers. Company A offers a higher salary and is an at-will employer. Company A does not have a union, but Company B does. The prospective employee is concerned about the future and job security.

Which company would alleviate these concerns?

YOUR
ANSWER	CORRECT
ANSWER
Company A because the salary is higher
Company A because employment is at-will
Company B because an employee can only be terminated for cause
Company B because an employee is guaranteed a job until retirement
87.
Which law initially prohibited federal court injunctions in nonviolent labor disputes?

YOUR
ANSWER	CORRECT
ANSWER
Norris-LaGuardia Act
Robinson-Patman Act
Fair Labor Standards Act
National Labor Relations Act
88.
A union representing employees of a company is negotiating a new collective bargaining agreement. The union makes a demand for an increase in wages. The company refuses, citing an inability to pay. The union believes the company is not negotiating in good faith and demands to see the company's financial statements, but the company refuses.

Will the union prevail in an unfair labor practice complaint?

YOUR
ANSWER	CORRECT
ANSWER
No, because the financial records of the company are protected as private documents
No, because the union lacks the authority to demand to see the company's documents
Yes, because the financial condition of the company is directly related to the issue of a wage increase
Yes, because the company must provide whatever documents the union requests during collective bargaining
89.
A large Midwestern manufacturing firm fires a 35-year-old, African American, female employee. The employee is told, “Our company desires our workers to fit a certain image, which you do not reflect." The employee is immediately replaced with a younger, Caucasian woman.

Which Title of the Civil Rights Act of 1964 will allow the employee to sue the employer for wrongful termination?

YOUR
ANSWER	CORRECT
ANSWER
VI
VII
VIII
IX
90.
While carrying a heavy box, an employee trips on stairs at work, falling and breaking a leg. It was determined that the carpet on the stairs was loose and had been that way for a month.

What is the employee's option for compensation while recovering?

YOUR
ANSWER	CORRECT
ANSWER
Collect workers' compensation
Collect unemployment compensation
Sue for damages resulting from battery
Sue for damages resulting from negligence
91.
What is a characteristic of an independent contractor?

YOUR
ANSWER	CORRECT
ANSWER
The principal deducts Social Security taxes.
The job requires a unique set of technical tools.
The job is a regular part of the principal's business.
The principal pays no benefits on behalf of the agent.
92.
What is a characteristic of an independent contractor?

YOUR
ANSWER	CORRECT
ANSWER
Works exclusively for one principal
Receives a salary from the principal
Provides own tools and place of work
Functions under direct control and supervision
93.
A corporation advertises a job opening and interviews several applicants. A 35-year-old African American woman states that she is pregnant, a 38-year-old Hispanic woman states that she lived two hours from the office, and a 25-year-old white man states that he is gay.

After the interviews, the female candidates are told that the position has been eliminated. However, the male applicant is hired two days later for the advertised position. It is determined that workplace discrimination had occurred.

Which form of discrimination occurred?

YOUR
ANSWER	CORRECT
ANSWER
Age discrimination
Race discrimination
Geographic discrimination
Sexual orientation discrimination
94.
A 25-year-old white male employee reveals to his boss that his wife is pregnant and requests time off until the baby is born. Soon thereafter, the boss begins treating the employee differently and starts assigning the employee's current client accounts to a childless, 40-year-old Asian female coworker. Two weeks later, the employee is demoted for poor work performance, and the time-off request is denied. The employee decides to sue for workplace discrimination.

Which portion of the Civil Rights Act supports this employee's claim?

YOUR
ANSWER	CORRECT
ANSWER
Age discrimination
Race discrimination
Pregnancy discrimination
Family responsibility discrimination
95.
Which two conditions guarantee unpaid leave for a serious health impairment under the Family and Medical Leave Act?

Choose 2 answers


YOUR
ANSWER	CORRECT
ANSWER
A condition that necessitates hospitalization
A condition that requires an urgent care visit
A condition that is incapacitating, such as a sprained ankle
A condition that requires multiple visits to a healthcare provider in a year
96.
In which two industries can children under the age of 14 work, according to the Fair Labor Standards Act of 1938?

Choose 2 answers


YOUR
ANSWER	CORRECT
ANSWER
Retail
Fast food
Agriculture
Entertainment