Exam
1 Chapters 1 – 6 Review
Multiple Choice
Circle the letter of the choice that best completes
the statement or answers the question.
1. In Nebraska the
highest-ranking (superior) law is
a. a case decided by the Nebraska
Supreme Court.
b. a provision in the
c. a rule created by a
d. a statute enacted by the
2. Net Corporation
files a suit against Omega, Inc., alleging that Omega breached a contract to
sell Net a computer system for $100,000. Net is
a. the appellant.
b. the appellee.
c. the defendant.
d. the plaintiff.
3. An Alabama state
statute prohibits business entities from using bill inserts to express
controversial views. A court would likely hold this law to be
a. an unconstitutional restriction
of speech.
b. constitutional under the First
Amendment.
c. justified by the need to
protect individual rights.
d. necessary to protect state
interests.
4. A federal
statute bans National Sales Corporation and other “major business entities”
from making political contributions individuals are permitted to make. A court
would likely hold this statute to be
a. an unconstitutional restriction
of speech.
b. constitutional under the First
Amendment.
c. justified by the need to protect
individual rights.
d. necessary to protect national
interests.
5. First Financial
Corporation provides other firms with capital to expand operations. Questions
of what is ethical involve the extent to which First Financial has
a. a legal duty beyond those
duties mandated by ethics.
b. an ethical duty beyond those
duties mandated by law.
c. any duty beyond those mandated
by both ethics and the law.
d. any duty when it is uncertain
whether a legal duty exists.
6. Tom is an
attorney. Tom’s conduct is governed by rules of professional conduct
established by the state in which he is licensed, and the Code of Professional
Responsibility and Model Rules of Professional Conduct drafted by
a. federal courts.
b. the American Bar Association.
c. the American Institute of
Certified Public Accountants.
d. the Financial Accounting
Standards Board.
7. Lucy is an
accountant who prepares her clients’ tax returns. Mark is not an accountant,
but he also prepares tax returns for clients. Under the Internal Revenue Code,
liability for preparing a false return may be imposed on
a. Lucy only.
b. Mark only.
c. Lucy and Mark.
d. none of the above.
8. Consumer Goods
Corporation sells products that are poorly made. Tina, who has never bought a
Consumer Goods product, files a suit against the firm alleging that its
products are defective. The firm could ask for dismissal of the suit on the
basis that Tina does not have
a. jurisdiction.
b. standing.
c. sufficient minimum contacts.
d. venue.
Fact
Pattern 3-1
Mack and
Nancy engage in a business transaction from which a dispute arises. Mack
initiates a lawsuit against Nancy by filing a complaint.
9. Refer to Fact
Pattern 3-1. If Nancy files a motion to dismiss, she is asserting that
a. Mack did not state a claim for
which relief can be granted.
b. Mack’s statement of the facts
is not true.
c. Mack’s statement of the law is
not true.
d. Nancy suffered greater harm
than Mack.
10. Home Appliances,
Inc., files a suit against Retail Sales Corporation over a contract between
them. Before the trial begins, Retail can obtain from Home
a. access to related documents in
Home’s possession.
b. accurate information about
Home’s trade secrets.
c. an admission of the truth of
matters not related to the trial.
d. all of the above.
11. Carl files a
suit against Dina, over a contract between them. Before the trial begins, Carl
can obtain from Dina
a. access to related documents in
Dina’s possession.
b. accurate information about
Dina’s privileged material.
c. an admission of the truth of
matters not related to the trial.
d. all of the above.
12. Sally files a
suit against Tom. Before going to trial, the parties meet, with their attorneys
to represent them, to try to resolve their dispute. A third party assists them
in reaching an agreement. This is
a. arbitration.
b. litigation.
c. mediation.
d. negotiation.
13. Jan and Kyle
sign a contract that provides if a dispute arises, they will submit to
arbitration. A dispute arises, but before it goes to arbitration, Jan files a
suit against Kyle. The court will likely
a. hear the suit and then order
the parties to arbitrate.
b. hear the suit without ordering
the parties to arbitrate.
c. order relief without hearing
the suit or compelling the parties to arbitrate.
d. order the parties to arbitrate.
14. Jill accuses Ken
of committing an assault. A person commits an assault if he or she creates in
another an apprehension or fear of
a. future harm.
b. immediate harm.
c. past harm.
d. past, present, or future harm.
15. Jill invites Ken
into her apartment. Ken commits trespass to land if he
a. enters the apartment with
fraudulent intent.
b. harms the apartment in any way.
c. makes disparaging remarks about
Jill to others.
d. refuses to leave when Jill asks
him to go.
16. Diane, a clerk
at an Entertainment Unlimited store, takes a DVD player from the store without
permission. Diane is liable for
a. appropriation.
b. conversion.
c. disparagement of property.
d. wrongful interference with a
business relationship.
17. City Times, a
newspaper, knowingly publishes an article falsely stating that the inventory of
Dealco, a discount store, consists of stolen goods. City Times is liable for
a. defamatory mischief.
b. malicious mischief.
c. slander of quality.
d. slander of title.
18. Sam, an
engineer, supervises the construction of a new bridge. When the bridge
collapses due to faulty construction, Sam is sued by those injured in the
collapse. As a professional, Sam is held to the same standard of care of
a. ordinary persons.
b. other engineers.
c. other professionals, including
doctors, dentists, and lawyers.
d. those injured in the collapse
of the bridge.
19. Opal enters the
Powerball Traithlon, an athletic competition. Regarding the risk of injury,
Opal assumes those risks
a. normally associated with this
event.
b. different from the risks
normally associated with this event.
c. greater than the risks normally
associated with this event.
d. all of the above.
20.
AAA Cola features Best Cola’s trademark without its
owner’s permission. Cartel Company does not make or bottle AAA Cola, but
distributes and sells it. Dian buys a bottle of AAA Cola. The mark has been
infringed by
a.
AAA.
b.
Best.
c.
Dian.
d.
none of the above.
21.
Standard Corporation can not claim a trademark in
the phrase “Quality Is Standard” if the phrase
a.
has a secondary meaning.
b.
is descriptive.
c.
is generic.
d.
is memorable.
22.
George owns Murphy’s Grill, a restaurant in a small
town in Ohio. Without George’s consent, Food Business, Inc., opens a club in
New York City called Murphy’s and begins to use “murphys” as part of the URL for
the club’s Web site. Food Business has committed
a.
copyright infringement.
b.
patent infringement.
c.
trademark dilution.
d.
none of the above.
23.
International Farm Equipment, Inc., obtains a
patent on a tractor. Jolly Company copies the design. This patent is infringed
a.
only if Jolly copies the tractor in its entirety.
b.
only if Jolly sells the tractor in the market.
c.
only if Jolly copies the tractor in its entirety
and sells it.
d.
regardless of whether the tractor is copied in its
entirety or sold.
24.
Rita copies Sam’s book, Two For the Show, in its
entirety and sells it to USA Books, Inc., without Sam’s permission. USA
publishes it under Rita’s name. Sam’s copyright is infringed by
a. Rita only.
b. USA only.
c. Rita and USA.
d. none of the above.
25. Doug gains
access to government records and alters certain dates and amounts in his favor.
This is
a. embezzlement.
b. forgery.
c. larceny.
d. robbery.
26. Eve, a First
Bank employee, deposits into her account checks that are given to her by bank
customers to deposit into their accounts. This is
a. embezzlement.
b. forgery.
c. larceny.
d. robbery.
27. Beth, and
employee of City Bank, is charged with embezzlement, which requires
a. fraudulently appropriating
another’s property.
b. obtaining lawful possession of
property.
c. physically taking property from
its owner.
d. the use of force or fear.
28. Sandy, a
businessperson, is convicted of RICO offenses. Sandy’s penalties may include
a. closing down a business, but
not forfeiting its assets or selling it.
b. forfeiting business assets, but
not closing it down or selling it.
c. selling a business, but not
closing it down or forfeiting its assets.
d. closing down a business,
forfeiting its assets, or selling it.
29. Harry, a
computer programmer for Inventory Control Corporation, is arrested in his
employer’s parking lot on suspicion of larceny. Harry must be informed of his
right to
a. a trial by jury.
b. punishment.
c. question
witnesses.
d. remain silent.
30. Britney, an
employee of Computer Associates, is arrested at work. A grand jury issues a
formal charge against Britney for larceny. This charge is
a. an arraignment.
b. an indictment.
c. an information.
d. an inquisition.