LAW 421 100% Correct Answers

1) Which of the following does not result in a decision rendered bythe hearing officer?

A.  Arbitration

B.  Mediation

C.  Med-arb

D.  Using expert evaluators

2) Jurisprudence is defined as

A.  adjudication of law suits

B.  the enactment of laws by a government body

C.  the science and philosophy of law

D.  the duties and obligations owed by a citizen

3) The state of Kansas has enacted a new law requiring allcommercial 
trucks driving on Kansas roads to have special mud flapsinstalled. 
These mud flaps have been proven to make driving in therain 
significantly safer due to reduced mist created by trucks drivingin the
rain, although data regarding accidents and injuries has not yetbeen 
determined. Any truck entering Kansas must have these flapsinstalled or
will be subject to a significant fine and delay. The cost forpurchase 
and installation of these flaps is $1,000 per truck. In short,trucks 
must have these flaps or go around the state. This Kansas law

A.  is valid because it only applies to Kansas roads and sucha law is entirely intrastate

B.  is valid because Kansas’s right to protect its citizensunder its 
police powers will override any outside challenges to this law

C.  is invalid because this law is intended to regulateinterstate commerce, an enumerated federal power

D.  is invalid because although on its face it’s an intrastatelaw, this
statute will have a significant economic effect on interstatecommerce 
causing an undue burden

4) The power of preemption is derived from

A.  the power of judicial review

B.  the Commerce Clause

C.  the Necessary and Proper Clause

D.  the Supremacy Clause

5) What is the main problem with international courts?

A.  Finding judges who understand the complexities ofinternational law

B.  Creating a body of law that reflects multiple legalsystems

C.  Enforcing a ruling on sovereign nations is difficult

D.  Lack of recognition from the U.N. and WTO

6) Under the U.S. legal system, subject to some exceptions, costsof litigation regarding both the plaintiff and defendant

A.  are all paid by the loser

B.  are all paid by the winner

C.  are paid for by each side with the plaintiff and defendantpaying for their own legal costs

D.  are totaled by the court and then for fairness, split inhalf with each side paying an equal amount

7) Generally, torts law is governed by

A.  state statutory law

B.  state common law

C.  federal statutory law

D.  constitutional law

8) Assumption of risk is a defense to

A.  conversion

B.  negligence

C.  defamation

D.  battery

9) The three stripes on Adidas clothing represents a

A.  trademark

B.  trade dress

C.  trade secret

D.  patent

10) The color or shape of an item, if distinctive, is a

A.  trademark

B.  trade dress

C.  copyright

D.  patent

11) Cybersquatting describes the practice of

A.  registering multiple domain names and then selling themback to companies at inflated prices

B.  hacking into a company’s website to install a virus orTrojan horse 
designed to steal information but allow the site to continueoperation

C.  using mechanical devises to access a company’s websitemultiple 
times to the point that traffic to the site is slowed orblocked

D.  hacking into a company’s website to install a virusdesigned to cause the company’s website to totally ceaseoperation

12) The Digital Millennium Copyright Act (1998) provided each ofthe following protections EXCEPT

A.  manufacturers of CD-Writers were required to pay 2% oftheir sales 
into a fund to be distributed to copyright holders becausethe 
CD-Writers could easily copy music and other copyrighted works

B.  civil and criminal penalties were established for thosewho sell or 
manufacture products or services that circumvent antipiracysoftware

C.  restrictions were placed on analog recorders andcamcorders that lack antipiracy features

D.  ISPs were relieved of liability for copyright infringementby their 
users as long as the ISP had no knowledge of the infringement

13) When Maria comes home from work, she finds that her yard hasbeen 
mowed and trimmed. An hour later, a man comes to her door tocollect 
payment for the yard work. Maria refuses to pay him because shehas 
never seen him before nor had she hired him to do the work. Whichof the
following is accurate?

A.  This is an implied, unilateral contract, so she mustpay.

B.  Maria has received unjust enrichment so a quasi contractis formed, so she must pay.

C.  The court would make Maria pay the reasonable cost of thework to be fair to both parties.

D.  Maria would not have to pay anything.

14) Where a promise can only be accepted by the performance of theperson to whom it is offered is an example of a/an

A.  bilateral contract

B.  unilateral contract

C.  implied contract

D.  quasi contract

15) Each of the following is a discharge by mutual consentEXCEPT

A.  accord and satisfaction

B.  novation

C.  rescission

D.  frustration of purpose

16) Harry sees an AK-47 automatic assault rifle in a gun shopwindow. He
inquires about the price and is told that it is $2,500. Harry signsa 
contract promising to pay the $2,500 on Friday, taking possessionof the
rifle when payment is made. On Thursday, a law is enacted makingthe 
ownership, sale, or possession of an automatic rifle illegal.This 
contract

A.  automatically terminates due to impossibility

B.  automatically terminates due to impracticability

C.  automatically terminates due to frustration of purpose

D.  is enforceable and not affected by the new law because itwas entered into before the law took effect

17) Which of the following is rarely awarded in contractscases?

A.  Consequential damages

B.  Compensatory damages

C.  Punitive damages

D.  Liquidated damages

18) Which of the following is classified as an equitableremedy?

A.  Consequential damages

B.  Reformation

C.  Restitution

D.  Liquidated damages

19) Which of the following would not be considered tangible?

A.  A car

B.  Oxygen

C.  The right of ownership

D.  The pen or pencil you are using

20) With regard to consideration in a sales contract, the UCCdiffers from the common law in that

A.  consideration in a sales contract may be modified withoutadditional consideration

B.  consideration exchanged must be equal or very closelyequal in sales contracts

C.  consideration is not required in sales contracts

D.  consideration in a sales contract may be modified as longas additional consideration is provided

21) The UCC will permit an incomplete or slightly ambiguouscontract to be enforced using each of the following criteriaEXCEPT

A.  past commercial conduct

B.  industry standards or norms

C.  judicial input of any terms necessary to maintainfairness

D.  correspondence or verbal exchanges between the parties

22) Two merchant companies have entered into a contract for thesale of 
goods but have had no prior dealings, which would establish acourse of 
conduct between them. The UCC will allow gap fillers to apply totheir 
contract regarding missing terms in each of the followingsituations 
EXCEPT

A.  they have failed to specify when payment for the goods isto be made

B.  they have failed to specify where delivery of the goods isto be made

C.  they have failed to specify the quality or grade of thegoods to be delivered

D.  they have failed to specify the price of the goods to bedelivered

23) When a buyer rejects nonconforming goods and purchasesthe 
appropriate goods from a different seller, this is an example ofwhich 
of the following:

A.  Cover

B.  Specific Performance

C.  Lawsuit for Money Damages

D.  Revoking Acceptance

24) Which of these is not a requirement for disclaiming awarranty?

A.  Statutory authorization

B.  A conspicuous writing

C.  Explaining why the warranty is being disclaimed

D.  Including the word merchantability if merchantability isto be disclaimed

25) “What if everyone took these same actions” is a questionsometimes called the

A.  universalization approach

B.  utilitarian approach

C.  functionality approach

D.  morality approach

26) The utilitarian approach to moral philosophy was founded by

A.  Jeremy Bentham

B.  Immanuel Kant

C.  Cicero

D.  Kenneth Lay

27) Stan is an investment manager. He has received money fromvarious 
investors with a promise of very high returns on their investments.The 
invested money is not supplying enough capital in order to paythe 
returns promised, so he has started using new investor’s money topay 
older investors. By advertising and by word of mouth, people areanxious
to invest with Stan because of the money being paid, and withthe 
influx of new investors, he is able to continue operating. Stanis

A.  operating an insider trading operation

B.  racketeering

C.  guilty of conspiracy to defraud

D.  operating a Ponzi scheme

28) Ben is the manager of a branch of a large bank. He hasregularly 
taken money from customer’s accounts for his own use and changedthe 
bank records to cover his actions. Ben is guilty of

A.  a conspiracy

B.  a Ponzi scheme

C.  racketeering

D.  embezzlement

29) The Sarbanes-Oxley Act (2002) imposed stricter regulations onhow 
corporations do business through regulations in each of thefollowing 
areas EXCEPT

A.  tax compliance

B.  financial reporting

C.  corporate governance

D.  auditing

30) Joan is the CFO of Para Corp. and is a year from retirement.In 
order to guarantee herself a very substantial bonus and to boosther 
retirement package, she knowingly certifies false financialreports 
making the company appear to be much more profitable than it reallyis. 
She further takes steps to assure that the financial report wasnot 
reviewed through internal controls maintained by Para Corp. Underthe 
provisions of the Sarbanes-Oxley Act (2002), if her fraud is NOTpart of
a larger scheme, what criminal penalties are possible for Joan?

A.  $1 million in fines and up to 10 years in prison

B.  $2 million in fines and up to 12 years in prison

C.  $5 million in fines and up to 15 years in prison

D.  $10 million in fines and up to 20 years in prison