Legal Environment of Business - DOC by fjhuangjun

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									                                     Legal Environment of Business
CHAPTER 1

1.    Hawaii enacts a state law that violates the U.S. Constitution. This law can be enforced by

      a.       no one.
      b.       the federal government only.
      c.       the state of Hawaii only.
      d.       the United States Supreme Court only.

2.    Voters in North Carolina approve a new state constitution, after which the Ocean City Council
      passes new ordinances, the North Carolina Department of Parks and Recreation issues new rules,
      and the Ocean City Chamber of Commerce sends out new instructions. Sources of law do not
      include

      a.       instructions issued by the Ocean City Chamber of Commerce.
      b.       ordinances passed by the Ocean City Council.
      c.       rules issued by the North Carolina Department of Parks and Recreation.
      d.       state constitutions passed by popular vote.

3.    If a provision in the Florida state constitution conflicts with a provision in the U.S. Constitution

      a.       neither provision applies.
      b.       the provisions are balanced to reach a compromise.
      c.       the state constitution takes precedence.
      d.       the U.S. Constitution takes precedence.

4.    The U.S. Congress enacts a new federal statute that sets different standards for the liability of
      businesses selling defective products. This statute applies
      a.       only to matters not covered by state law.
      b.       only to those states that adopt the statute.
      c.       to all of the states.
      d.       to none of the states.

5.    The River City Council, the Santa Clara County Board, the Texas state legislature, and the U.S.
      Congress enact laws. These laws constitute

      a.       administrative law.
      b.       case law.
      c.       stare decisis.
      d.       statutory law.

6.    Jay is a federal judge. Jay‟s judicial decisions are part of case law. This law includes
      interpretations of

      a.       administrative regulations only.
      b.       constitutional provisions only.
      c.       statutes only.
      d.       administrative regulations, constitutional provisions, and statutes.

7.    As a judge, Phil applies common law rules. These rules develop from

      a.       administrative regulations.
      b.       court decisions.
      c.       federal and state statutes.
      d.       proposed uniform laws.
8.    Jill is an appellate court judge. In this capacity, Jill establishes a rule of law. Under the doctrine of
      stare decisis, the principle must be adhered to by

      a.       all courts.
      b.       courts of lower rank only.
      c.       that court and courts of lower rank.
      d.       that court only.

9.    Kurt is a judge hearing the case of Local Co. v. Macro Corp. Applying the relevant rule of law to
      the facts of the case requires Kurt to find previously decided cases that, in relation to the case
      under consideration, are

      a.       as different as possible.
      b.       as similar as possible.
      c.       at odds.
      d.       exactly identical.

10.   A state trial court has before it Eagle Manufacturing Co. v. Fine Products Corp., a case with no
      binding authority. The court can

      a.       not refuse to decide the Eagle case.
      b.       postpone deciding Eagle indefinitely.
      c.       postpone deciding Eagle until there is binding authority.
      d.       refuse to decide Eagle.

11.   In a suit against Kathy, Lon obtains specific performance. This is

      a.       an equitable remedy and a remedy at law.
      b.       an equitable remedy only.
      c.       a remedy at law only.
      d.       not a remedy.

12.   Holly is a state court judge. Ilsa appears in a case in Holly‟s court, claiming that Jim breached a
      contract. As in most state courts, Holly may

      a.       award damages, cancel a contract, or direct a party to do or not to do an act.
      b.       award damages only.
      c.       cancel a contract only.
      d.       direct a party to do or not to do a particular act only.

13.   Lev is a judge. In his court, Lev may bar a suit if it is not filed within a proper time according to

      a.       a statute of limitations.
      b.       the doctrine of stare decisis.
      c.       the chancellor‟s discretion.
      d.       the king‟s conscience.

14.   Beth is a victim of Carl‟s violation of a criminal law. Criminal law is concerned with

      a.       the prosecution of private individuals by other private individuals.
      b.       the prosecution of public officials by private individuals.
      c.       the relief available when a person‟s rights are violated.
      d.       wrongs committed against the public as a whole.

15.   Under the Constitution
      a.       neither the national government nor the states have sovereign power.
      b.       the national government and the states share sovereign power.
      c.       the national government exercises all sovereign power.
      d.       the states exercise all sovereign power.

16.   Household Furnishings, Inc., distributes its merchandise on an interstate basis. Under the
      commerce clause, Congress has the power to regulate

      a.       any commercial activity in the United States.
      b.       only activities that are in intrastate commerce.
      c.       only activities that are in local commerce.
      d.       only activities that are not in commerce.

17.   Tom files a suit against the state of Utah, claiming that a Utah state law violates the commerce
      clause. The court will agree if the statute

      a.       imposes a substantial burden on interstate commerce.
      b.       promotes the public order, health, safety, morals, or general welfare.
      c.       regulates activities within Utah‟s borders.
      d.       regulates private activities.

18.   A New Hampshire state law that directly conflicts with a federal law is invalid under

      a.       the commerce clause.
      b.       the equal protection clause.
      c.       the establishment clause.
      d.       the supremacy clause.

19.   Dian, a U.S. citizen, is the owner of Eagle, Inc. The Bill of Rights embodies a series of protections
      for Dian against various types of interference by

      a.       business entities only.
      b.       private individuals only.
      c.       the government only.
      d.       business entities, private individuals, and the government.

20.   The police obtain a search warrant and search Dave‟s apartment. After yelling obscenities at the
      officers, Dave confesses to a crime and implicates his friends. The Constitution protects against

      a.       obscene speech only.
      b.       others‟ implication only.
      c.       unreasonable searches only.
      d.       obscene speech, others‟ implication, and unreasonable searches.

21.   Fred, the president of Good Retail Corporation, claims that certain actions by the federal
      government and the state of Hawaii infringe on rights guaranteed by the Bill of Rights. Most of
      these rights limit

      a.       neither the state government nor the federal government.
      b.       the federal government only.
      c.       the state government and the federal government.
      d.       the state government only.

22.   Alpha Corporation regularly expresses opinions on political issues. Under the First Amendment,
      corporate political speech is given
      a.       little protection.
      b.       no protection.
      c.       significant protection.
      d.       total protection.

23.   Indiana enacts a statute that bans the distribution of anonymous political leaflets. A court would
      likely hold this 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.

24.   Congress enacts the Tight Money Act (TMA) of 2006 to ban “major business entities” from
      making political contributions that individuals can make. A court would likely hold the TMA 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.

25.   Xtreme Publications, Inc., disseminates obscene materials. Under numerous state and federal
      statutes, this is

      a.       a crime.
      b.       a privilege.
      c        a right under the commerce clause.
      d.       a right under the First Amendment.

26.   California enacts a statute to ban advertising in “bad taste.” This statute would likely be held by a
      court 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.

27.   Best Sales Corporation regularly advertises its products. Under the First Amendment, these ads
      and other commercial speech are given

      a.       less protection than noncommercial speech.
      b.       more protection than noncommercial speech.
      c.       no protection.
      d.       the same protection as noncommercial speech.

28.   In 2006, Congress enacts the Act to Restrict Commercial Speech (ARCS). The ARCS will be
      considered valid

      a.       if it directly advances a substantial government interest but goes no further than
               necessary.
      b.       if it directly advances a substantial government interest regardless of how “far” it goes.
      c.       under any circumstances.
      d.       under no circumstances.
29.   Oklahoma enacts a law requiring all businesses in the state to donate 10 percent of their profits to
      Protestant churches that provide certain services to persons whose income is below the poverty
      level. PriceLess Stores files a suit to block the law‟s enforcement. The court would likely hold that
      this law violates

      a.       no clause in the U.S. Constitution.
      b.       the establishment clause.
      c.       the free exercise clause.
      d.       the supremacy clause.

30.   A Rhode Island state statute imposes a prison term, without a trial, on all street vendors who
      operate in certain areas. A court would likely hold this statute to be

      a.       constitutional under the due process clause.
      b.       constitutional under the equal protection clause.
      c.       unconstitutional under the due process clause.
      d.       unconstitutional under the equal protection clause.

31.   Colorado enacts a statute that limits the liberty of all persons, including corporations, to broadcast
      “annoying” radio commercials. This may violate

      a.       equal protection.
      b.       procedural due process.
      c.       substantive due process.
      d.       the right to privacy.

32.   A Metro City ordinance allows only a few street vendors to operate in certain areas, for the
      purpose of reducing traffic. A court would likely hold this ordinance to be

      a.       constitutional under the due process clause.
      b.       constitutional under the equal protection clause.
      c.       unconstitutional under the due process clause.
      d.       unconstitutional under the equal protection clause.

33.   Standard Business Company appeals a decision against it, in favor of Top Flight Corporation,
      from a lower court to a higher court. Standard is

      a.       the appellant.
      b.       the appellee.
      c.       the defendant.
      d.       the plaintiff.

34.   The Montana Supreme Court decides the case of National Co. v. Overseas Corp. Of nine justices,
      eight believe the judgment should be in National‟s favor. Justice Pine disagrees and writes a
      separate opinion. This opinion is

      a.       a concurring opinion.
      b.       a dissenting opinion.
      c.       a minority opinion.
      d.       a unanimous opinion.

35.   Ann is a nineteen-year-old waiter and Carl is a twenty-three-old bartender at Bob‟s Bar & Café.
      One night after work, Ann asks Carl to serve her alcoholic beverages. In this situation, under the
      principles discussed in “A Sample Court Case,” Nunez v. Carabba’s Italian Grill, Inc., Bob‟s
      owes Ann
        a.       no duty of care.
        b.       the same duty of care that Bob‟s owes to an adult.
        c.       the same duty of care that Bob‟s owes to a minor.
        d.       the same duty of care that Bob‟s owes to its other employees.

CHAPTER 2
1.    Import-Export Sales, Inc., like other businesses, has duties prescribed by

        a.       ethics and the law.
        b.       ethics only.
        c.       the law only.
        d.       the market only.

2.      Mack is sales manager for National Products, Inc. Compared to Mack‟s personal activities, his
        business activities involve

        a.       more complex ethical standards.
        b.       simpler ethical standards.
        c.       the same ethical standards.
        d.       no ethical standards.

3.      In studying business law, Professor Smith‟s students also study ethics in a business context. Ethics
        is the study of what constitutes

        a.       financially rewarding behavior.
        b.       legal behavior.
        c.       religious behavior.
        d.       right or wrong behavior.

4.      Lia works for Marketing Company. Her job includes putting “spin” on the firm‟s successes and
        failures. In this context, ethics consist of

        a.       “bad” versus “good” publicity.
        b.       questions of rightness and wrongness.
        c.       the firm‟s quarterly revenue.
        d.       whatever is legal.

5.      Mary works in the public relations department of National Sales Company. Her job includes
        portraying National‟s activities in their best light. In this context, ethics consist of

        a.       a different set of principles from those that apply to other activities.
        b.       the same moral principles that apply to non-business activities.
        c.       those principles that produce the most favorable financial outcome.
        d.       whatever saves National‟s “face.”

6.      Any decision by the management of Standard Business Corporation may significantly affect its

        a.       operators only.
        b.       operators, owners, suppliers, the community, or society as a whole.
        c.       owners only.
        d.       suppliers, the community, or society as a whole only.

7.      Ace Company manages its employees‟ retirement benefit plan. With respect to this plan, Ace has

        a.       a fiduciary duty.
        b.       a subsidiary duty.
        c.       a utilitarian duty.
        d.       no duty.

8.      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.

Fact Pattern 2-1 (Questions 9–10 apply)
Quantity Trucking Company (QTC) owns a fleet of trucks that transports hazardous waste across the
United States. Rod is a QTC driver, whom QTC knows drives longer hours than federal regulations permit.
One night, Rod exceeds the limit and has an accident. Spilled chemicals contaminate Small City‟s water
source, forcing the residents to move away.

9.      Refer to Fact Pattern 2-1. According to the reasoning of the court in Case 2.1, In re the Exxon
        Valdez, QTC is liable because

        a.       harm was caused by an unfortunate accident.
        b.       QTC showed reckless disregard for Small City‟s residents and others.
        c.       Rod exceeded the federal time limit.
        d.       Small City should have better protected the water source.

10.     Refer to Fact Pattern 2-1. Under the reasoning and the words of the court in Case 2.1, In re the
        Exxon Valdez, QTC‟s conduct might be described as

        a.       “blamelessly faultless” and “unintentionally capricious.”
        b.       “highly reprehensible” and “intentionally malicious.”
        c.       “irregardlessly respectful” and “respectfully regardless.”
        d.       “uniquely preoccupied” and “wantonly sleepless.”

11.     ABC Communications, Inc., needs to cut costs by downsizing. In determining which employees to
        lay off, ABC will be concerned primarily with

        a.       its ethical duty to long-term employees and the legality of discharging older workers
                 only.
        b.       its ethical duty to long-term employees, its profit margin, and the legality of discharging
                 older workers.
        c.       the legality of discharging older workers only.
        d.       none of the above.

12.     Jill lies to her family. According to legal and ethical principles, this is

        a.       illegal only.
        b.       illegal and unethical.
        c.       neither illegal nor unethical.
        d.       unethical only.

13.     Delta Equity Corporation provides other firms with capital to expand operations. If Delta strictly
        complies with existing laws, the firm will

        a.       fulfill all business ethics obligations.
        b.       fulfill no business ethics obligations.
        c.       fulfill some business ethics obligations.
      d.       not need to fulfill any business ethics obligations.

14.   Alpha, Inc., makes and sells a variety of household products. With a fair amount of certainty,
      Alpha‟s decision makers can predict whether a given business action would be legal in

      a.       all situations.
      b.       many situations.
      c.       no situations.
      d.       practically no situations.


15.   Steve, the human resources director for Total Personnel Corporation, attempts to comply with the
      law in dealing with applicants and employees. One of the challenges Steve faces is that the legality
      of an action is

      a.       always clear.
      b.       never clear.
      c.       sometimes clear.
      d.       usually clear.

16.   Eve, the chief executive officer of Federated Corporation (FC), wants to ensure that FC‟s activities
      are legal and ethical. The best course of Eve and FC is to act in

      a.       good faith.
      b.       ignorance of the law.
      c.       regard for the firm‟s shareholders only.
      d.       their own self interest.

17.   In business negotiations, Beth, the chief executive officer of Design Associates, Inc., follows “The
      Golden Rule,” which

      a.       encourages the accumulation of as much personal wealth as possible.
      b.       mandates compassionate treatment of others in all situations.
      c.       permits taking advantage of others in financial terms.
      d.       requires an increase of business profits over a certain period.

18.   Matt, vice-president of sales for National Resources, Inc., adheres to religious ethical standards.
      Their application involves an element of

      a.       compassion.
      b.       cost-benefit analysis.
      c.       discretion.
      d.       utilitarianism.

19.   Kit follows certain religious principles. With respect to the behavior of Kit and other adherents of
      her religion, its principles are most likely

      a.       absolute.
      b.       changeable.
      c.       flexible.
      d.       vague.


20.   Kent, an accountant for Engineering Associates, Inc., attempts to apply the duty approach to
      ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a
      person must
      a.       achieve the greatest good for the most people.
      b.       avoid unethical behavior regardless of the consequences.
      c.       conform to society‟s ethical standards.
      d.       place his or her employer‟s interest first.

21.   Tina, the chief financial officer for USA Products Corporation, attempts to apply Christian
      precepts in making ethical decisions and in doing business. In applying duty-based ethical
      standards that are derived from a religious source, Tina would consider the motive behind an act to
      be

      a.       irrelevant.
      b.       the least important consideration.
      c.       the most important consideration.
      d.       the only consideration.

22.   World Distribution Corporation suggests that its employees apply the “categorical imperative” to
      ethical issues that arise at work. This requires that the employees

      a.       categorize the issues according to legality, morality, and profitability.
      b.       consider only the benefits that would accrue to them personally.
      c.       look only at the result, regardless of the means to attain it.
      d.       weigh the consequences that would follow if everyone took the same action.

23.   In making business decisions, Owen, a certified financial planner with Private Investment
      Corporation, attempts to apply his belief that all persons have fundamental rights. This is

      a.       a religious rule.
      b.       the categorical imperative.
      c.       the principle of rights.
      d.       utilitarianism.


24.   Rob, the owner of Superior Engineering, Inc., adheres to the “principle of rights” theory. Under
      this theory, a key factor in determining whether a business decision is ethical is how that decision
      affects

      a.       the right determination under a cost-benefit analysis.
      b.       the rights of others.
      c.       the “right” thing to do.
      d.       the right to make a profit.

25.   Holly, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in
      business contexts. Utilitarianism focuses on

      a.       moral values.
      b.       religious beliefs.
      c.       the consequences of an action.
      d.       the nature of an action.

26.   Bob, research manager for Agri-Products, Inc., applies utilitarian ethics to determine that an action
      is morally correct when it produces

      a.       the greatest good for Bob.
      b.       the greatest good for the most people.
      c.       the least good for the fewest people.
      d.       the least good for the most people.

27.   In making decisions for United Merchandising Company, Jay uses a cost-benefit analysis. This is
      part of

      a.       duty-based ethics.
      b.       Kantian ethics.
      c.       the principle of rights.
      d.       utilitarianism.

28.   Harry, a vice-president of International Pharmaceuticals, Inc., does not apply utilitarianism to
      business ethical issues. One problem with utilitarianism is that it

      a.       gives business profits priority over production costs.
      b.       ignores the practical costs of a given set of circumstances.
      c.       justifies human costs that many find unacceptable.
      d.       requires complex cost-benefit analyses of simple situations.

29.   In deciding questions of corporate social responsibility, Digital Services, Inc., is concerned with

      a.       how the corporation can best fulfill its duty to society.
      b.       the effect on corporate profits of ignoring any duty to society.
      c.       whether the corporation owes a duty to society.
      d.       all of the above.

30.   Superior Corporation engages in ethical behavior solely for the purpose of getting good publicity
      and thereby increasing profits. Superior is

      a.       acting unethically in its pursuit of publicity.
      b.       acting unethically in its pursuit of profits.
      c.       acting unethically in its setting of priorities.
      d.       not acting unethically.

31.   Applied Business Corporation makes and markets its products nationwide. To be considered
      socially responsible when making a business decision, Applied must take into account the needs of

      a.       its consumers, the community, and society only.
      b.       its employees and owners only.
      c.       its employees, owners, consumers, the community, and society.
      d.       no one.

32.   A common ethical dilemma faced by the management of General Business Corporation involves
      the effect that its decision will have on

      a.       one group as opposed to another.
      b.       the firm's competitors.
      c.       the government.
      d.       all of the above.

33.   The managers of Beta, Inc., in marketing Beta's products, attempt to strike a balance between
      profitability and ethical responsibility. The profits that Beta realizes within these limits are

      a.       maximum.
      b.       minimum.
      c.       nonexistent.
      d.       optimum.
34.     International Manufacturing Corporation‟s side payments to government officials in exchange for
        favorable business contracts in foreign countries are considered, in the United States,

        a.       illegal and unethical.
        b.       illegal only.
        c.       neither illegal nor unethical.
        d.       unethical only.

35.     To assist in detecting illegal bribes, Eagle, Inc., and all U.S. companies, must

        a.       conceal financial records that reveal past bribes.
        b.       keep records that “accurately and fairly” reflect financial activities.
        c.       make bribes through third parties rather than directly to officials.
        d.       permit payments to foreign officials that are unlawful in that country.

Chapter 3
1.     Harry, a resident of Indiana, has an accident with Jane, a resident of Kentucky, while driving
       through that state. Jane files a suit against Harry in Kentucky. Regarding Harry, Kentucky has

        a.       diversity jurisdiction.
        b.       in personam jurisdiction.
        c.       in rem jurisdiction.
        d.       no jurisdiction.

2.      The Ohio state legislature passes a law to regulate local delivery services. The final authority
        regarding the constitutionality of this law

        a.       are the courts.
        b.       is the president of the United States.
        c.       is the governor of Ohio.
        d.       is the U.S. Congress.

3.      Leo, a resident of Missouri, owns a warehouse in Nebraska. A dispute arises over the ownership of
        the warehouse with Opal, a resident of Kansas. Opal files a suit against Leo in Nebraska.
        Regarding this suit, Nebraska has

        a.       diversity jurisdiction.
        b.       in personam jurisdiction.
        c.       in rem jurisdiction.
        d.       no jurisdiction.


4.      Sam, a citizen of New Mexico, wants to file a suit against Tanya, a citizen of Texas. Their
        diversity of citizenship may be a basis for

        a.       any court to exercise in rem jurisdiction.
        b.       a federal district court to exercise original jurisdiction.
        c.       a U.S. court of appeals to exercise appellate jurisdiction.
        d.       the United States Supreme Court to issue a writ of certiorari.


5.      Don files a suit against Eagle Sales, Inc., in a Florida state court based on a Web site through
        which Florida residents can do business with Eagle. The court will likely exercise jurisdiction over
        Eagle if the interactivity of the site is seen as
      a.       a “neutral” connection with the state.
      b.       an “Internet” connection with the state.
      c.       a “passive” connection with the state.
      d.       a “substantial” connection with the state.

6.    Lora files a suit in Michigan against Ned over the ownership of a boat docked in a Michigan
      harbor. Lora and Ned are residents of Ohio. Ned could ask for a change of venue on the ground
      that Ohio

      a.       has a sufficient stake in the matter.
      b.       has jurisdiction.
      c.       has sufficient minimum contacts with the parties.
      d.       is a more convenient location to hold the trial.

7.    Inferior Company sells products that are poorly made. Jack, who has never bought an Inferior
      product, files a suit against Inferior, alleging that its products are defective. The firm‟s best ground
      for dismissal of the suit is that Jack does not have

      a.       certiorari.
      b.       jurisdiction.
      c.       standing.
      d.       sufficient minimum contacts.

8.    The case of Able, Inc. v. Baker is heard in a Connecticut court with original jurisdiction. The case
      of Charlie v. Delta, Inc. is heard in a Connecticut court with appellate jurisdiction. The difference
      between original and appellate jurisdiction is whether

      a.       a case is being heard for the first time.
      b.       the court is exercising a new type of jurisdiction.
      c.       the parties‟ legal arguments are innovative.
      d.       the subject matter of a case involves new facts.

9.    Mary wins her suit against National Manufacturing Co. National‟s best ground for appeal is the
      trial court‟s interpretation of

      a.       the conduct of the witnesses during the trial.
      b.       the credibility of the evidence that Mary presented.
      c.       the dealings between the parties before the suit.
      d.       the law that applied to the issues in the case.

10.   Cody wants to appeal his case against Digital Corporation to the United States Supreme Court.
      Cody must ask the Court to issue a writ of

      a.       certiorari.
      b.       jurisdiction.
      c.       standing.
      d.       venue.

11.   Ilsa files a suit against Jack. The document that sets out the ground for the court‟s jurisdiction, the
      basis of Ilsa‟s case, and the relief that Ilsa seeks is

      a.       the answer.
      b.       the complaint.
      c.       the service of process.
      d.       the summons.
12.     Lynn files a suit against Karl. Karl denies Lynn‟s charges and sets forth his own claim that Lynn
        breached their contract and owes Karl money for the breach. This is

         a.      a counterclaim.
         b.      a crossclaim.
         c.      an affirmative defense.
         d.      an irrelevant response.
Fact Pattern 3-1 (Questions 13–15 apply)
Mack and Nancy engage in a business transaction from which a dispute arises. Mack initiates a lawsuit
against Nancy by filing a complaint.

13.     Refer to Fact Pattern 3-1. If Nancy responds to Mack‟s complaint by filing a counterclaim

        a.       Mack will be given time to file a response.
        b.       Mack will have a judgment entered in his favor.
        c.       Nancy will be given time to file an amended answer.
        d.       Nancy will have a judgment entered in her favor.

14.     Refer to Fact Pattern 3-1. The sheriff serves Nancy with a summons. If Nancy chooses to ignore it

        a.       Mack must file an amended complaint.
        b.       Mack will have a judgment entered in his favor.
        c.       Nancy must be served with a second summons.
        d.       Nancy will have a judgment entered in her favor.

15.     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.

16.     Refer to Fact Pattern 3-1. If Nancy files a motion to dismiss, and the court denies it

        a.       Mack will be given more time to file an amended complaint.
        b.       Mack will have a judgment entered in his favor.
        c.       Nancy will be given more time to file another response.
        d.       Nancy will have a judgment entered in her favor.

17.     Refer to Fact Pattern 3-1. If Nancy files a motion to dismiss, and the court grants it

        a.       Mack will be given more time to file an amended complaint.
        b.       Mack will have a judgment entered in his favor.
        c.       Nancy will be given more time to file another response.
        d.       Nancy will have a judgment entered in her favor.

18.     Ann files a suit against Beta Products, Inc. Beta responds that even if Ann‟s statement of the facts
        is true, according to the law Beta is not liable. This is

        a.       a counterclaim.
        b.       a motion for judgment on the pleadings.
        c.       a motion for summary judgment.
        d.       a motion to dismiss.
19.      Carol files a suit against Delta Corporation. Delta responds that it appears from the pleadings the
         parties do not dispute the facts and the only question is how the law applies to those facts. Delta
         supports this response with witnesses‟ sworn statements. This is

         a.       a counterclaim.
         b.       a motion for judgment on the pleadings.
         c.       a motion for summary judgment.
         d.       a motion to dismiss.

20.      In Ed‟s suit against First National Bank, the discovery phase would include all of the following
         EXCEPT

         a.       Ed‟s complaint.
         b.       Ed‟s deposition.
         c.       Ed‟s requests for First National‟s admissions.
         d.       First National‟s replies to Ed‟s interrogatories.

21.      In Federated Corporation‟s suit against Great Stores, Inc., the jury returns a verdict in Federated‟s
         favor. Great Stores files a motion asking the judge to set aside the verdict and begin new
         proceedings. This is a motion for

         a.       a judgment in accordance with the verdict.
         b.       a judgment on the pleadings.
         c.       a new trial.
         d.       judgment n.o.v.

Fact Pattern 3-2 (Questions 22–23 apply)
Kelly files a suit against Lewis in a state court. The case proceeds to trial, after which the court renders a
verdict. The case is appealed to an appellate court.

22.      Refer to Fact Pattern 3-2. After its review of Kelly v. Lewis, the appellate court can

         a.       affirm, reverse, or remand all or part of the lower court‟s decision.
         b.       only affirm or reverse all or part of the lower court‟s decision.
         c.       only remand all or part of the lower court‟s decision.
         d.       only reverse or remand all or part of the lower court‟s decision.


23.      Refer to Fact Pattern 3-2. After the state‟s highest court‟s review of Kelly v. Lewis, a party can
         appeal the decision to the United States Supreme Court if

         a.       a federal question is involved.
         b.       a question of state law remains unresolved.
         c.       the party is unsatisfied with the result.
         d.       the state trial and appellate court rulings are different.

24.      Edie files a suit against Frank. If this suit is like most cases, it will be

         a.       dismissed during a trial.
         b.       dismissed or settled before a trial.
         c.       resolved only after a trial.
         d.       settled at a trial.

25.      Sid files a suit against Tina. Before going to trial, the parties, with their attorneys, meet to try to
         resolve their dispute. A third party helps them to reach an agreement. This is
         a.       arbitration.
         b.       litigation.
         c.       mediation.
         d.       negotiation.

26.      Betty files a suit against Carl. Before going to trial, the parties meet, with their attorneys to
         represent them, to try to resolve their dispute without involving a third party. This is

         a.       arbitration.
         b.       litigation.
         c.       mediation.
         d.       negotiation.

27.      Jim files a suit against Kay. Before going to trial, the parties meet, with their attorneys to represent
         them, to present their dispute to a third party who is not a judge but who renders a legally binding
         decision. This is

         a.       arbitration.
         b.       litigation.
         c.       mediation.
         d.       negotiation.


Fact Pattern 3-3 (Questions 28-30 apply)
Java Cafes, Inc., and Kaffe Import Corporation dispute a term in their contract.

28.      Refer to Fact Pattern 3-3. The least expensive method to resolve the dispute between Java and
         Kaffe may be

         a.       arbitration because the case will be heard by a mini-jury.
         b.       litigation because each party will pay its own legal fees.
         c.       mediation because the dispute will be resolved by a non-expert.
         d.       negotiation because no third parties are needed.

29.      Refer to Fact Pattern 3-3. If Java and Kaffe have a long-standing business relationship that they
         would like to continue, a preferred method of settling their dispute may be mediation because

         a.       the case will be heard by a mini-jury.
         b.       the dispute will eventually go to trial.
         c.       the process is not adversarial.
         d.       the resolution of the dispute will be decided an expert.

30.      Refer to Fact Pattern 3-3. Resolving the dispute between Java and Kaffe by having a neutral third
         party render a binding decision is one of the advantages of

         a.       arbitration.
         b.       conciliation.
         c.       intervention.
         d.       mediation.

31.      National Consumer Goods Corporation and Paula Purchaser agree to resolve their dispute in
         arbitration. The arbitrator‟s decision is called

         a.       a conclusion of law.
         b.       a finding of fact.
         c.       an award.
         d.       a verdict.

32.      Transnational Corporation and United Shipping, Inc., agree to a contract that includes an
         arbitration clause. If a dispute arises, a court having jurisdiction may

         a.       monitor any arbitration until it concludes.
         b.       order an arbitrator to rule in a particular way.
         c.       order a party to bring the dispute to court.
         d.       order a party to submit to arbitration.

33.      In Harry‟s suit against Irma, the parties meet before going to trial, and each party‟s attorney argues
         the party‟s case before the other party. A third party renders an opinion as to how a court would
         likely decide the dispute. This is

         a.       a mini-trial.
         b.       arbitration.
         c.       a summary jury trial.
         d.       early neutral case evaluation.

34.      Molly files a suit against Nick. They meet, and each party‟s attorney argues the party‟s case before
         a judge and jury. The jury presents an advisory verdict, after which the judge meets with the
         parties to encourage them to settle their dispute. This is

         a.       court-ordered arbitration.
         b.       early neutral case evaluation.
         c.       a mini-trial.
         d.       a summary jury trial.

35.      Dick submits his claim against EZ Sales Corporation to FairSettle.com, a private, online dispute
         resolution forum. At any time, an appeal of the dispute to a court may be made by

         a.       Dick only.
         b.       Dick or EZ.
         c.       EZ only.
         d.       neither Dick nor EZ.

Chapter 4
Ann believes that Burt is about to hit her. To prevent harmful contact in this situation, Ann may use

         a.       any force.
         b.       any force, except force that is likely to cause death.
         c.       force that is reasonably necessary.
         d.       no force.

2.       At Sea Food Cafe, Tom believes that he was overcharged and shoves Wally, a waiter. Wally sues
         Tom, alleging that the shove was a battery. Tom is liable if

         a.       Sea Food did not overcharge Tom.
         b.       the shove was offensive.
         c.       Tom acted out of malice.
         d.       Wally did not wait on Tom.

3.       Louie files a suit against Myra for assault and battery. Myra can raise the defense of property as a
         defense to the charge of

         a.       assault only.
      b.       assault or battery.
      c.       battery only.
      d.       neither assault nor battery.

4.    Lon trespasses on Mega Corporation‟s property. Through the use of reasonable force, Mega‟s
      security guard Ned detains Lon until the police arrive. Mega is liable for

      a.       assault and battery.
      b.       false imprisonment.
      c.       intentional infliction of emotional distress.
      d.       none of the above.

5.    Ron, the manager of Sav-Mart Discount Store, detains Tina, whom Ron suspects of shoplifting.
      Tina sues Ron, alleging that the detention was false imprisonment. Ron is liable if Tina

      a.       did not actually shoplift.
      b.       had not shoplifted in the past.
      c.       had probable cause to leave the premises.
      d.       was detained for an unreasonably long time.

      6.       Dale hears Ed falsely accuse Flo of stealing from Great Warehouse, Inc., their employer.
               Ed‟s statement is defamatory

      a.       because Dale heard it.
      b.       only if Ed made the statement loudly.
      c.       only if Ed‟s statement is also published in the Dispatch, a local paper.
      d.       only if Flo suffers emotional distress.


7.    Todd files a suit against United Media Corporation for defamation. Actual malice must be shown
      for recovery of damages if Todd is

      a.       a corporate officer.
      b.       a non-citizen.
      c.       a private individual.
      d.       a public figure.

8.    Ace Corporation uses, in its radio ads, a recording by Blair, who owns the rights, without paying
      for the use. Over time, the song comes to be associated with Ace‟s products. Blair sues Ace. Ace
      is liable to Blair for

      a.       appropriation.
      b.       conversion.
      c.       wrongful interference with a customary relationship.
      d.       none of the above.

9.    Kelly is an appliance salesperson. Kelly commits fraud if, to make a sale, she

      a.       discloses the truth.
      b.       represents as a fact something that she knows is untrue.
      c.       states an opinion concerning something that she knows nothing about.
      d.       uses puffery.

10.   Kai files a suit against Lana based on one of Lana‟s statements that Kai alleges is fraudulent. To
      give rise to fraud, the statement must be one of
      a.       delusion.
      b.       fact.
      c.       illusion.
      d.       opinion.

11.   Acme Computers, a computer store, takes unethical steps to divert the customers of Cyber Goods,
      an adjacent competing store. Acme may be liable for

      a.       appropriation.
      b.       wrongful interference with a business relationship.
      c.       wrongful interference with a contractual relationship.
      d.       none of the above.

12.   Curt, a dairy goods salesperson, follows Dona, a competitor‟s salesperson, as she visits
      convenience stores to make sales. Curt solicits each of Dona‟s customers. Curt is likely liable for

      a.       conversion.
      b.       trespass to personal property.
      c.       wrongful interference with a business relationship.
      d.       wrongful interference with a contractual relationship.

13.   Phil invites Quinn onto his land. Quinn commits trespass if

      a.       Phil asks Quinn to leave and Quinn refuses.
      b.       Quinn enters the property in the evening.
      c.       Quinn makes disparaging remarks about Phil to third parties.
      d.       the property is damaged during the visit.

14.   Bill enters onto Cindy‟s property to help Donna, who is in danger. Cindy charges Bill with
      trespass to land. Bill has

      a.       a complete defense.
      b.       a partial defense.
      c.       a possible defense.
      d.       no defense.

15.   Ned leaves his car with OK Car Shop to have it repaired. After the car is fixed, OK keeps it. OK is
      not liable for trespass to personal property if

      a.       Ned refuses to pay for the repair.
      b.       Ned thinks his car is a “joke.”
      c.       OK is keeping the car as a “joke.”
      d.       OK received payment for the repair.

16.   Quinn, a clerk at PC Computer Store, takes a computer from the store without PC‟s permission.
      Quinn is liable for conversion

      a.        if he damages the computer.
      b.        if he does not have a good reason for taking the computer.
      c.        if he fails to prevent a theft of the computer from his possession.
      d.        under any circumstances.
17.   Axel steals a business law textbook from Beth. Curt, who does not know that the book is stolen,
      buys it from Axel. Curt has committed

      a.       conversion.
      b.       disparagement of property.
      c.       no tort.
      d.       wrongful interference with a business relationship.

18.   Steve, a television news reporter, knowingly broadcasts an untrue story claiming that Medi-Drugs,
      Inc., markets a medicine for children that contains highly addictive drugs. Steve is liable for

      a.       slander of quality.
      b.       slander of title.
      c.       wrongful interference with a business relationship.
      d.       none of the above.

19.   Jay drops a bowling ball on Kyla‟s foot. Jay is liable for negligence if he acted

      a.       unrealistically.
      b        unreasonably.
      c.       unrecognizably.
      d.       unreliably.

20.   To protect its customers and other business invitees, Supreme Retail Corporation must warn them
      of

      a.       all dangers.
      b.       concealed dangers.
      c.       open dangers.
      d.       no dangers.

21.   Lola files a suit against Mac, a medical doctor, alleging negligence. As a physician, Mac is held to
      the standard of

      a.       an average human being.
      b.       a reasonable person.
      c.       a reasonable physician.
      d.       a typical professional.
22.   Lara hires Mike, an architect, to design a warehouse. Lara is dissatisfied with the look of the new
      building and sues Mike, alleging negligence. Mike can successfully defend against the suit by
      proving that

      a.       he is not familiar with every principle of art.
      b.       his design is as attractive as an ordinary person‟s.
      c.       Lara could not have designed a more attractive building.
      d.       Lara was not injured in any way.

23.   Kit carelessly bumps into Luke, knocking him to the ground. Kit has committed the tort of
      negligence

      a.       only if Luke is injured.
      b.       only if Luke is not injured.
      c.       under any circumstances.
      d.       under no circumstances.

24.   Driving his sport utility vehicle negligently, Bart crashes into a streetlight. The streetlight falls,
      smashing through the roof of a house, killing Chris. But for Bart‟s negligence, Chris would not
      have died. Regarding the death, the crash is the

      a.       cause in fact.
      b        intervening cause.
      c.       proximate cause.
      d.       superseding cause.

25.   Dirk is driving a sport utility vehicle in which Elin is a passenger when they are involved in a
      traffic accident, and Elin is injured. Liability may be imposed on Dirk for Elin‟s injury if Dirk‟s
      driving is

      a.       neither the causation in fact nor the proximate cause of the injury.
      b.       only the causation in fact of the injury.
      c.       only the proximate cause of the injury.
      d.       the causation in fact and the proximate cause of the injury.

26.   Molly shoots Norm with Opal‟s pistol. The proximate cause of Norm being shot is most likely
      attributable to

      a.       Molly and Opal.
      b.       Molly only.
      c.       Opal only.
      d.       neither Molly nor Opal.

27.   Pat files a successful suit against Quality Stores based on Quality‟s negligence. Normally, an
      award in such a suit consists of

      a.       comparative damages.
      b.       compensatory damages.
      c.       contributory damages.
      d.       punitive damages.

28.   Will enters the Xtreme Decathlon, an athletic competition, an event in which Will has competed
      before. Regarding the risk of injury, Will assumes

      a.       all of the risks associated with the event.
      b.       only the risks different from those normally associated with the event.
      c.       only the risks greater than those normally associated with the event.
      d.       only the risks normally associated with the event.

29.   Eve is injured when she slips and falls in Finest Discount Warehouse. Eve files a suit against
      Finest for $50,000. Under a “pure” comparative negligence rule, Eve could recover damages from
      Finest

      a.       only if Eve and Finest were equally at fault.
      b.       only if Eve was less at fault than Finest.
      c.       only if Eve was more at fault than Finest.
      d.       whether Eve was less, more, or equally at fault.

30.   A state statute requires machinery in food processing plants to include automatic shut-off switches
      accessible to each employee working on the machine. Fruit Company‟s (FC‟s) equipment does not
      have the switches. Greg, an FC employee, suffers an injury that an accessible shut-off switch
      would have prevented. Greg‟s best ground for recovery is that FC committed

      a.       a dram shop act.
      b.       a violation of the “danger invites rescue” doctrine.
      c.       negligence per se.
      d.       res ipsa loquitur.
31.     Amber pushes Brad into the path of an oncoming car driven by Carol. Don tries to rescue Brad,
        but the car hits both of them. Amber is liable for the injuries of

        a.       Brad and Don.
        b.       Brad only.
        c.       Don only.
        d.       neither Brad nor Don.


32.     In an emergency situation, Lori renders aid to Mike, who needs help. Mike would most likely be
        prohibited from suing Lori for negligence under

        a.       any circumstances.
        b.       a Good Samaritan statute.
        c.       a social host statute.
        d.       no circumstances.

33.     Eve owns First-Rate Salvage, a demolition company. A demolition by a First-Rate crew injures
        Glen, a passerby. Under the theory of strict liability, Eve must pay for Glen‟s injury

        a.       only if Glen‟s injury was not reasonably foreseeable.
        b        only if Glen‟s injury was reasonably foreseeable.
        c.       only if the First-Rate crew was at fault.
        d.       whether or not the First-Rate crew was at fault.

34.     General Construction Company engages in blasting in its operations. This is subject to strict
        liability because

        a.       blasting is an abnormally dangerous activity.
        b.       blasting is a negligent activity.
        c.       construction can be done without blasting.
        d.       General is a construction company.

35.     Gary is standing on a defective stool when it collapses, causing Gary to fall and suffer an injury.
        Gary files a suit against Interstate Stools, Inc., the manufacturer. A significant application of the
        doctrine of strict liability is in the area of

        a.       constitutional law.
        b.       ethics.
        c.       negligence.
        d.       product liability.

Chapter 5
1.     Jill develops a new espresso machine, which she names “Quik Shot.” She also writes the operating
       manual. Jill can obtain trademark protection for

        a.       the espresso machine only.
        b.       the espresso machine, the name, and the operating manual.
        c.       the name only.
        d.       the operating manual only.

2.      In Case 5.1, The Coca-Cola Co. v. The Koke Co. of America, when the Koke Company of
        America marketed its cola product under the name “Koke,” it infringed the Coca-Cola Company‟s

        a.       copyright.
     b.       patent.
     c.       trademark.
     d.       trade secret.

3.   In 2007, Digital Equipment Corporation registers its trademark as provided by federal law. This
     registration provides protection

     a.       for ten years.
     b.       for twenty years.
     c.       for the life of the corporation plus seventy years.
     d.       forever.

4.   Copy Products, Inc., uses, in its ads, a trademark that is similar, but not identical, to a distinctive
     mark used by Durable Goods, Inc. Copy‟s use of the mark is actionable

     a.       only if consumers are confused.
     b.       only if Copy and Durable are competitors.
     c.       only if consumers are confused and Copy and Durable are competitors.
     d.       regardless of whether consumers are confused or Copy and Durable are competitors.

5.   Original, Inc., sells its product under the name “Phido.” Quik Corporation begins to market an
     identical product under the name “Fido.” This is

     a.       copyright infringement.
     b.       patent infringement.
     c.       trademark infringement.
     d.       none of the above.

6.   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.

7.   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.

8.   USA Transport Company uses a mark associated with its name to distinguish its services from
     those of other transport firms. The mark is

     a.       a certification mark.
     b.       a collective mark.
     c.       a service mark.
     d.       trade dress.
9.    Modern Clothing, Inc., and National Denim Corporation use the mark “Made by Members of the
      U.S. Textile Workers Union” on the tags of their products to indicate the participation of the union
      in the manufacture. Modern and National are not in business together and do not own this mark.
      The mark is

      a.       a certification mark.
      b.       a collective mark.
      c.       a service mark.
      d.       trade dress.

10.   Finest Products Company and Great Goods, Inc., use the mark “Good Housekeeping Seal of
      Approval” to certify the quality of their products. Finest and Great are not in business together and
      do not own this mark. The mark is

      a.       a certification mark.
      b.       a collective mark.
      c.       a service mark.
      d.       trade dress.

11.   Ernie‟s Good Eatin‟ Cafe uses a distinctive decor, layout, menu, and style of service. This
      restaurant‟s image and overall appearance is

      a.       a certification mark.
      b.       a collective mark.
      c.       a service mark.
      d.       trade dress.

12.   Delightful Toys, Inc., makes EZ Goo, a children‟s toy. Without Delightful‟s consent, Fast
      Adhesives Company begins to use “ezgoo” as part of the URL for Fast‟s Web site. Fast claims
      that no consumer would confuse the Web site with the toy. Fast has committed

      a.       copyright infringement.
      b.       patent infringement.
      c.       trademark dilution.
      d.       none of the above.

13.   Gamma Corporation allows Kappa Company to use Gamma‟s trademark as part of Kappa‟s
      domain name. This is

      a.       a license.
      b.       an injunction.
      c.       dilution.
      d.       litigious.

14.   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.

15.   Phil invents new Web site design software and applies for a patent. If Phil is granted a patent, his
      invention will be protected
      a.       for ten years.
      b.       for twenty years.
      c.       for the life of the inventor plus seventy years.
      d.       forever.

16.   Earl designs a new computer hard drive, which he names “Sci Phi.” He also writes the operating
      manual to be included with each final product. Earl could obtain patent protection for

      a.       the hard drive only.
      b.       the name only.
      c.       the operating manual only.
      d.       the hard drive, the name, and the operating manual.

17.   Delta, Inc., copies Eagle Corporation‟s patented invention in its entirety. Delta sells it as its own
      invention to First Products Company, without Eagle‟s permission. Eagle‟s patent is infringed by

      a.       Delta and First.
      b.       Delta only.
      c.       First only.
      d.       neither Delta nor First.

18.   Able, Inc., designs and makes a fuel injection system that copies Baker Corporation‟s designs
      without Baker‟s permission. This is most likely

      a.       copyright infringement.
      b.       patent infringement.
      c.       service mark infringement.
      d.       trademark infringement.

19.   Standard Factory Machinery, Inc., obtains a patent on a drill press. Total Equipment Company
      (TEC) copies the design. This patent is infringed

      a.       only if TEC copies the press in its entirety.
      b.       only if TEC sells the press in the market.
      c.       only if TEC copies the press in its entirety and sells it.
      d.       regardless of whether TEC copies the press in its entirety or sells it.

20.   In 2007, Sara writes Terror at the Track, a novel about racecar driving. Sara does not register the
      work with the appropriate government office. Under federal copyright law, Sara‟s work is
      protected

      a.       for ten years.
      b.       for twenty years.
      c.       for the life of the author plus seventy years.
      d.       forever.

21.   Fiona invents a new deep-sea fishing net, which she names “Great Catch.” She also writes the
      operating manual to be included with each net. Fiona could obtain copyright protection for

      a.       the manual only.
      b.       the name only.
      c.       the net only.
      d.       the manual, the net, and the name.

22.   The graphics used in “Go!,” a handheld computer game featuring racecars, are protected by
      a.      copyright law.
      b.      patent law.
      c.      trademark law.
      d.      trade secrets law.

23.   Ellen publishes a book titled First Place, which includes a chapter from Frank‟s copyrighted book
      Great Racecar Drivers without his permission. Ellen‟s use of the chapter is actionable

      a.      only if consumers are confused.
      b.      only if Ellen and Frank are competitors.
      c.      only if consumers are confused and Ellen and Frank are competitors.
      d.      regardless of whether consumers are confused or Ellen and Frank are competitors.

24.   Cathy uses, on her new recording Drive By, the melody of a song written by Earl, without Earl‟s
      permission. This is

      a.      copyright infringement.
      b.      patent infringement.
      c.      trademark infringement.
      d.      none of the above.

25.   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.

26.   Carol buys Dan‟s book, Expedition!, photocopies more than half of it without his permission, and
      sells the copies without paying him royalties. This is

      a.      copyright infringement.
      b.      fair use.
      c.      licensing.
      d.      protected expression.

27.   Donna makes and distributes copies of Every Good Boy Does Fine, a movie copyrighted by Great
      Films Corporation, without Great Films‟ permission. Donna may be liable for

      a.      damages, fines, or imprisonment.
      b.      damages only.
      c.      fines or imprisonment only.
      d.      nothing.

28.   Lex reproduces Mina‟s copyrighted work without paying royalties. Lex is most likely excepted
      from liability for copyright infringement under the “fair use” doctrine if

      a.      Lex copies the entire work.
      b.      Lex distributes the copies freely to the public.
      c.      Lex‟s use has no effect on the market for Mina‟s work.
      d.      Lex‟s use is for a commercial purpose.

29.   Blog magazine buys and publishes an article by Cleo. Later, Blog markets a Web site database that
      contains a compilation of Blog articles, including Cleo‟s, without her consent. Blog has committed
       a.       copyright infringement.
       b.       patent infringement.
       c.       theft of trade secrets.
       d.       trademark infringement.

30.    Abby and Ben copy and exchange MP3 music files over the Internet without anyone‟s permission.
       With respect to songs owned by Charter Recording Company, this is

       a.       copyright infringement.
       b.       fair use.
       c.       licensing.
       d.       protected expression.

31.    The process behind the production of “Fast Pace,” a racecar video game, is protected by

       a.       copyright law.
       b.       patent law.
       c.       trademark law.
       d.       trade secrets law.

32.    The idea for “On Your Mark,” a computer game featuring racing cars, is protected by

       a.       copyright law.
       b.       patent law.
       c.       trademark law.
       d.       trade secrets law.

33.    Peak Corporation hacks into Quality Data Company‟s computers and downloads confidential
       business data. There is no contract between Peak and Quality regarding the data. This is

       a.       patent infringement .
       b.       trademark infringement.
       c.       trade secrets theft.
       d.       none of the above.

34.    Canada and the United States are signatories of the Berne Convention. Doug, a citizen of Canada,
       publishes a book first in Canada and then in the United States. Doug‟s copyright must be
       recognized by

       a.       all of the signatories of the Berne Convention.
       b.       Canada and the United States only.
       c.       Canada only.
       d.       none of the signatories of the Berne Convention.

35.    Jiffy Software, Inc., a U.S. manufacturer, files a suit against Kawa, Ltd., a Japanese software
                maker, for the infringement of intellectual property rights under Japan‟s national laws.
                Under the TRIPS agreement, Jiffy is entitled to receive

       a.       better treatment than Kawa.
       b.       the same treatment as Kawa.
       c.       worse treatment than Kawa.
       d.       nothing.

Chapter 6
1.   Lon is a “payday” lender charged with filing false claims in bankruptcy proceedings against his
     customer-debtors. The standard of proof to find a defendant who has been charged with a crime
     guilty is

     a.       a preponderance of the evidence.
     b.       beyond all doubt.
     c.       beyond a reasonable doubt.
     d.       clear and convincing evidence.

2.   Tige steals United Network, Inc.‟s (UNI) computer time and the use of UNI‟s phones. Tige
     commits larceny when he steals

     a.       the computer time only.
     b.       the computer time or the use of the phones.
     c.       neither the computer time nor the use of the phones.
     d.       the use of the phones only.


3.   Ben wrongfully takes an unopened carton from a City Warehouse loading dock, puts the carton in
     his car, and drives away. A person who wrongfully or fraudulently takes and carries away
     another‟s personal property is guilty of

     a.       burglary.
     b.       forgery.
     c.       larceny.
     d.       robbery.

4.   Jack receives an MP3 player stolen from Kelly. To be criminally liable, Jack

a.   must know only that the player is stolen.
     b.      must know only that Kelly is the true owner.
     c.      must know that the player is stolen and that Kelly is the true owner.
     d.      need not know that the player is stolen or that Kelly is the true owner.


5.   Bait „n Tackle Corporation switches trademarks on products that it buys to sell to consumers. This
     is

     a.       burglary.
     b.       forgery.
     c.       larceny.
     d.       robbery.

6.   Ira signs Jill‟s name, without her authorization, to the back of a check made out to her. This is

     a.       burglary.
     b.       forgery.
     c.       larceny.
     d.       robbery.

7.   Phil sets fire to his house. At common law, the crime of arson could be committed only if a person
     burned down

     a.       a commercial building.
     b.       an unoccupied structure.
     c.       his or her own house.
      d.       the house of another person.


8.    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.

9.    Jay is charged with embezzlement. Embezzlement is not robbery because embezzlement may be
      committed without

      a.       a criminal act.
      b.       a criminal intent.
      c.       taking property from its owner.
      d.       the use of force of fear.

10.   Beth, an 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.


11.   In relation to Edie‟s solicitation of investors in a nonexistent business, she is charged with “mail
      fraud.” This requires, among other things,

      a.       claiming that an item is “in the mail” when it is not.
      b.       deceiving postal authorities as to the content of an item of mail.
      c.       depositing items in the postal system without proper postage.
      d.       mailing or causing someone else to mail a writing.

12.   Mona offers Ned, a building inspector, money to overlook the violations in her new warehouse.
      Ned accepts the money and overlooks the violations. Mona is charged with the crime of bribery.
      The crime occurred when

      a.       Mona decided to offer the bribe.
      b.       Mona offered the bribe.
      c.       Ned accepted the bribe.
      d.       Ned overlooked the violations.

13.   Ann, an employee of Beta, Inc., pays Curt, an employee of Beta‟s competitor Delta Company, for
      a secret Delta pricing schedule. This may be

      a.       an effective marketing strategy.
      b.       commercial bribery.
      c.       creative legal bookkeeping.
      d.       money laundering.

14.   Tim is a businessperson with investments in several legal and illegal operations. Tim may be
      subject to penalties under RICO

      a.       for making an unprofitable, but legal, investment.
      b.       for the commission of any business fraud.
      c.      only in a case involving a “racket.”
      d.      only in a case involving organized crime.

15.   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.

16.   Don, a businessperson, is charged with RICO offenses. Don may be subject to penalties under
      RICO only if he

      a.      committed two or more certain federal or state crimes.
      b.      has never been convicted of a crime.
      c.      intends to commit future RICO offenses.
      d.      was previously convicted of a crime.

17.   Earl, driving while intoxicated, causes a car accident that results in the death of Frank. Earl is
      arrested and charged with a felony. A felony is a crime punishable by death or imprisonment for
      more than

      a.      one year.
      b.      six months.
      c.      ten years.
      d.      thirty days.

18.   Cathy causes a disturbance at Diners Cafe. She is arrested and charged with disorderly conduct, a
      misdemeanor. A misdemeanor is a crime punishable by imprisonment up to

      a.      one year.
      b.      six months.
      c.      ten years.
      d.      thirty days.

19.   Evan is charged with a crime. Almost all federal courts and some state courts would not hold Evan
      liable if, at the time of the offense, as a result of a mental disease or defect, Evan lacked
      substantial capacity to

      a.      appreciate the wrongfulness of his conduct only.
      b.      appreciate the wrongfulness of his conduct and obey the law.
      c.      appreciate the wrongfulness of his conduct or obey the law.
      d.      obey the law only.

20.   Barb allows Candy to enter Barb‟s warehouse and take a DVD player. Charged with theft, Candy
      can successfully claim, as a defense,

      a.      consent.
      b.      duress.
      c.      entrapment.
      d.      self-defense.

21.   Dian points a gun at Edie, threatening to shoot her unless she takes a certain file from Great
      Pharmaceutical Corporation. Charged with theft, Edie can successfully claim as a defense,

      a.      consent.
      b.       duress.
      c.       entrapment.
      d.       self-defense.

22.   Helen points a gun at Irma, threatening to shoot her. Irma hits Helen, causing her death. Charged
      with homicide, Irma can most likely successfully claim as a defense,

      a.       consent.
      b.       duress.
      c.       entrapment.
      d.       self-defense.

23.   Mary, who is charged with a crime, claims that Nick, a government agent, entrapped her. For
      entrapment to be a valid defense

      a.       Mary must not have been predisposed to commit the crime.
      b.       Nick must have pressured Mary into committing the crime.
      c.       Nick must have suggested that the crime be committed.
      d.       all of the above.

24.   Holly is granted immunity after she agrees to testify about a crime. Holly has an absolute privilege
      against self-incrimination and

      a.       can be prosecuted only for the crime about which she agreed to testify.
      b.       cannot be prosecuted for any crime.
      c.       cannot refuse to testify on Fifth Amendment grounds.
      d.       can refuse to testify on Fifth Amendment grounds.


25.   Bob is arrested at his home, after the police search it and seize certain property to be used as
      evidence. A judge sets Bob‟s bail, as required by a state statute, and Bob is put on trial. The U.S.
      Constitution provides safeguards against all of the following except

      a.       arrests without probable cause.
      b.       excessive bail.
      c.       trying someone for a criminal offense.
      d.       unreasonable searches and seizures.

26.   The police arrest Lou, who confesses to a crime. Later, Lou refutes the confession and demands a
      trial, at which witnesses testify they saw him commit the crime. Lou is convicted and sentenced.
      The U.S. Constitution provides safeguards against all of the following except

      a.       deprivations of life or liberty without due process of law.
      b.       not being allowed to question witnesses.
      c.       punishment.
      d.       self-incrimination.

27.   Jim is indicted. Before he is arrested, he confesses to the crime in a conversation with Kelly, the
      arresting officer. Kelly then arrests Jim and advises him of the right to counsel. Jim waives the
      right and repeats his confession. Later, Jim claims that his initial statement should be excluded as
      evidence from his trial. Under the ruling in Case 6.3, Fellers v. United States, the statement will
      most likely be

      a.       admitted because Jim knew he did the crime and confessed.
      b.       admitted because Jim repeated it after being advised of his rights.
      c.       excluded because a confession is not admissible in a criminal trial.
      d.       excluded because it was elicited before Jim was advised of his rights.

28.   Lara is indicted. Mac, the arresting officer, advises Lara of her right to counsel. Lara waives the
      right and confesses to the crime. Later, Lara claims that her confession should be excluded as
      evidence from her trial. Under the ruling in Case 6.3, Fellers v. United States, the statement will
      most likely be

      a.       admitted because Lara knew she did the crime and confessed.
      b.       admitted because Lara made it after being advised of her rights.
      c.       excluded because a confession is not admissible in a criminal trial.
      d.       excluded because it was elicited before Lara was advised of her rights.

29.   Alan, the president of Beta Investments, Inc., and Colin, Beta‟s accountant, are charged with a
      crime, after the police search Beta‟s Offices. Under the exclusionary rule

      a.       certain Beta records are excluded from subpoena by the government.
      b.       certain parties to a criminal action may be excluded from a trial.
      c.       illegally obtained evidence must be excluded from a trial.
      d.       persons who have biases that would prevent them from fairly deciding the case may be
               excluded from the jury.

30.   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.

31.   Roy owns Roy‟s Cafe. A fire destroys the cafe, and Roy is arrested on suspicion of setting it to
      collect the insurance. At the time of the arrest, Roy is not informed of his rights. Any statement
      Roy makes will be admissible

      a.       in all circumstances.
      b.       in some circumstances.
      c.       in no circumstances.
      d.       regardless of the circumstances.

32.   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.

33.   Mike is arrested at a warehouse in North Industrial Park. A government prosecutor issues a formal
      charge against Mike for receiving stolen property. This charge is

      a.       an arraignment.
      b.       an indictment.
      c.       an information.
      d.       an inquisition.
34.   Ben is a computer technician with the skills to hack into any unprotected computer. The Computer
      Access Device and Computer Fraud and Abuse Act of 1984 prohibits Ben from obtaining
      unauthorized access to

      a.      information in a consumer reporting agency‟s files on consumers.
      b.      information in a financial institution‟s financial records.
      c.      restricted government information.
      d.      all of the above.


35.   Sally is charged with violating the Counterfeit Access Device and Computer Fraud and Abuse Act
      (CFAA). Crime under the CFAA involves

      a.      accessing a computer without authority and taking data.
      b.      accessing a computer without authority or taking data.
      c.      accessing a computer without authority only.
      d.      taking restricted or protected data only.

								
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