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 Nebraska constitution.

c.   a rule created by a Nebraska state administrative agency.

d.   a statute enacted by the Nebraska legislature.

 

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.