Questions 1–40: Select the one best answer to each question.
1. Marney sued Chuck for sexual harassment. The jury awarded
Marney $1 million. If Chuck thinks the award is unfair, he may
A. for relief in the trial court.
B. an appeal in the appropriate appellate court.
C. an appeal in the United States Supreme Court.
D. an appeal with an administrative agency.
2. In which of the following scenarios could a federal court exercise jurisdiction
over the case?
A. Joe, a citizen of Texas, files suit against Deb, also a citizen of Texas, for unspecified
damages resulting from his wrongful termination, based upon state law.
B. Alice, a citizen of Missouri, files suit against Bob, a citizen of California, for damages
of $10,000 resulting from a car accident.
C. Kellen, a citizen of Georgia, files suit against Justin, also a citizen of Georgia, for
damages of $80,000 resulting from a car accident.
D. Jamal, a citizen of New York, files suit against Hillary, a citizen of Pennsylvania, for
damages of $80,000 resulting from Jamal’s wrongful termination, based upon state law.
3. Which of the following serves as the most significant source of law in the
American legal system?
A. Federal statutes C. The United States Constitution
B. Administrative regulations D. Case law
4. Jane notices the that the sole clerk in a convenience store has left the building
to take a cigarette break. Jane decides against taking a candy bar from the store
because she has always believed that stealing is wrong. Jane’s decision would be
A. duty-based ethics. C. utilitarianism.
B. outcome-based ethics. D. cost-benefit analysis.
5. Which of the following disputes would be considered a good candidate for online
A. Britney Spears discovers, to her dismay, that Jose previously registered
for the domain name Britney.com.
B. Monica purchases a shirt from Eddie’s, a store in a local mall, which also has a
Web site called Eddies.com. The shirt unravels after one wash, and the store refuses
to refund Monica’s money.
C. Ricky Marks agrees to endorse a new product, Handsome Hunk aftershave, on
television and radio ads. Marks discovers, to his disbelief, that the aftershave smells like
oranges, which he detests. Marks refuses to endorse the product.
D. Sally agrees to accept a freelance writing assignment for Harry Publishing. According
to the agreement, Sally is to submit all of her work through e-mail. However, Sally
thinks e-mail is overrated and refuses to submit her work by any means other than
6. Hillary sues Mona for damages for what Hillary alleges was her wrongful
termination. As what type of law would Hillary’s suit against Mona be classified?
A. National law C. Criminal law
B. International law D. Civil law
7. Which of the following is a true statement about bribery of foreign officials?
A. If the purpose of payment is to get the official to act in his or her official capacity to
provide a business opportunity, bribery of foreign government officials is prohibited.
B. Bribery of minor officials is prohibited, even if the payments would hasten an
C. Even if bribery of minor officials in the United States is lawful within a foreign country,
it is illegal for U.S. companies to participate in the corrupt process.
D. Officers or directors who violate the Foreign Corrupt Practices Act may be fined up to
$200 million and imprisoned for up to twenty years. The company, though, may pay the
fine for the officer or director.
8. ABC Corp. develops a soda named Caroline Cola. The sodas are to be canned
with labels that feature a picture of a famous actress, Carol Burnett. State
authorities refused to grant ABC Corp. the authority it needed to market the
sodas. This issue should focus
primarily on which amendment to the United States Constitution?
A. Fifth Amendment C. Seventh Amendment
B. First Amendment D. Ninth Amendment
9. In which of the following types of cases would courts make decisions based on
a “reasonable consumer” standard?
A. Price gouging C. Deceptive advertising
B. Product liability D. Employment discrimination
10. McDougal’s Restaurant possesses trademark rights to its name, McDougal’s.
Larry registered the Internet domain name, McDougals.com, to sell his 100%
nonbeef food products. McDougal’s wants Larry to stop using its name, but
doesn’t want a lengthy court battle. McDougal’s may
A. submit a complaint to an ICANN-approved dispute-resolution provider.
B. file an appeal with the appropriate appellate court.
C. file for relief with the United States Supreme Court.
D. contact the district attorney.
11. Which of the following illustrates an issue that could be settled by online
A. A product liability suit against an automobile manufacturer
B. A lawsuit for sexual harassment filed against an Internet company and one of its
C. A suit against Walport Discount Stores (which also owns an Internet site called
walport.com) regarding a product purchased at a store located in New Jersey
D. A trademark infringement case based upon a dispute regarding a domain name
12. Which of the following situations presents a case over which a federal court
may exercise federal jurisdiction?
A. A suit filed by Ally against the city of Boston alleging that a city ordinance restricts her
constitutional right to free speech
B. A suit by Joe, a citizen of Tennessee, against Bill, a citizen of New York, seeking
of $60,000 for intentional infliction of emotional distress
C. A suit filed by Nicole, a citizen of California, against Bob, also a citizen of California,
for alimony and child support
D. A suit filed by Company A, a Delaware corporation, against Company B, a South
Dakota corporation, alleging that Company B wrongfully interfered with Company A’s
contract with one of its employees
13. Sara isn’t pleased with the quality of a computer she purchased from Byte
Computers over the Internet. Byte Computers refuses to refund Sara’s money. If
the parties agree to online dispute resolution, the online forum will probably apply
A. the law of the state where Sara lives.
B. universal legal principles.
C. proposed Internet law.
D. the law of the state in which Byte is incorporated.
14. Company A just finished investing millions of dollars in a new product, which
should make the company lots of money. Shortly before the product arrives in
stores, the company discovers the product may not meet federal guidelines
regarding the amount of testing required for the product. Which of the following
questions might the product fail?
A. Is the action profitable? C. Is the action ethical?
B. Is the action legal? D. Is the action reasonable?
15. The only way Company A can afford to develop a drug that will cure cancer is
to test the drug on a small group of individuals who have cancer. A small risk
exists that the experimental drug could actually worsen the cancer in the
individuals taking the drug. The company determines that because society as a
whole will reap the benefits, it should test the drug on the individuals. Of course,
the company explains the risks to the tested individuals. The rationalization
engaged in by the company would best be described as
A. duty-based ethics. C. the principle of rights.
B. the Kantian philosophy. D. outcome-based ethics.
16. In which of the following disputes might state law compel arbitration?
A. A school district teachers’ strike
B. A loss of cargo at sea
C. An interstate truckers’ strike
D. An online commerce dispute.
17. Company A owns 1,000 acres of timberland in California. The United States
government contacts Company A and informs the company the government
needs the timber owned by Company A to build shelters for the homeless. The
government informs the company it will be paid $100 for the timber on the land it
owns. Which of the following constitutional amendments has the government
A. Seventh Amendment C. Ninth Amendment
B. Fifth Amendment D. First Amendment
18. Shannon wants to sue Spelling Industries for her alleged wrongful termination.
Shannon should file
A. suit in the appropriate trial court.
B. an appeal in the appropriate appellate court.
C. suit in the United States Supreme Court.
D. suit in the United States Court of Appeals.
19. Marc and Ricky have been involved in an ongoing argument, in which Marc
alleges that Ricky stole a song written by Marc, and that Ricky made millions after
recording the song. Marc threatens to file suit. However, after he and Ricky meet
on several occasions, Ricky agrees to pay Marc $500,000 and to show Marc some
of his famous dance moves if Marc agrees not to file suit. Marc eagerly agrees.
Marc and Ricky resolved their dispute through
A. mediation. C. negotiation.
B. binding arbitration. D. nonbinding arbitration.
20. Which of the following disputes could be properly resolved by online dispute
A. A dispute regarding the quality of a computer purchased over the Internet
B. A dispute regarding the quality of an electric razor purchased from a Walport store
located in Jacksonville, Florida
C. A dispute between Company A and Company B, Internet companies, where
Company A claims Company B stole its program that increases Internet access speed
for home computer users
D. Susie files suit against Old Town Clothes due to allegedly defective lowrider jeans.
Susie purchased her lowrider jeans at an Old Town Clothes store located in Orlando,
Florida. However, the same jeans are available on the Web site OldTownClothes.com.
21. In which of the following situations might an individual or
corporation be held strictly liable for any resulting injury?
A. A customer slips and falls at a local grocery store because
an employee failed to mop up some spilled milk.
B. Company A transports explosives. During one transport, the
truck carrying the explosives hits another car, and several
passengers in the other vehicle suffer injuries.
C. Company B breeds Toy Poodles. One of the poodles
wanders over to Ms. Cleaver’s house and relieves himself
in her perfectly manicured lawn, destroying her prize roses.
D. Ed delivers pizzas for Pa’s Pizza Delivery. One evening,
Ed is in a particularly bad mood and decides he can’t take
one more cheap person not giving him a tip. Charles fails
to give Ed his tip. Overcome with rage, Ed attacks Charles,
breaking his nose.
22. Paula went out for a night on the town with her boyfriend, Rick. While they
were dancing, Rick decided it would be fun to rob the disco as a prank. Rick
ordered Paula to go up to the bartender, pretend she had a gun, and demand all of
the money from the cash register. Paula declined. Angered by her defiance, Rick
told Paula if she didn’t do as he said, he would kill Paula’s beloved Fluffy, a loving
feline who went everywhere with the couple. Paula looked into Fluffy’s adorable
face and decided she had no choice. She did as Rick demanded. If criminal
charges are filed against Paula, which of the following defenses has the best
chance of being successful?
A. Entrapment C. Duress
B. Mistake D. Justifiable use of force
23. Company X and Company Y make the same product, grape soda. The two
companies are engaged in constant competition with one another for customers.
Company X hires Ted, an up-and-coming young executive. When Ted accepts the
job with Company X, he signs an employment contract in which he agrees that if
he leaves his employment with Company X, he won’t disclose the ingredients to
Company X’s grape soda to anyone. Company Y knows that Ted is under contract
with Company X, but thinks he would be a great addition to their team. Company Y
offers Ted a huge signing bonus and a raise if he leaves Company X and brings
Company Y a list of the ingredients to Company X’s grape soda. Ted struggles
with the decision, but decides it’s an offer he can’t refuse and accepts Company
Y’s proposition. Which of the following business torts has Company Y most likely
A. Wrongful interference with a contractual relationship
B. Wrongful interference with a business relationship
D. Slander of title
24. Which of the following is a crime that generally affects business?
A. Wrongful interference with a business relationship
D. Wrongful interference with a contractual relationship
25. Dawson, a television star, is known for his vibrant personality and undying
love for his nextdoor neighbor, Kris. Pacey, Dawson’s former friend, runs a
company that manufactures and sells cologne. Pacey develops a new brand of
cologne, Dawson’s, hoping to capitalize on Dawson’s famous name. To ensure
that Dawson’s fans buy Dawson’s cologne, Pacey puts a picture of Dawson on the
bottle. Dawson never gave Pacey permission to use his name or likeness, and is
furious. Which of the following torts has Pacey most likely committed?
A. Wrongful interference with a business relationship
B. Wrongful interference with a contractual relationship
C. Trademark infringement
26. Which of the following sentences states a key distinction between criminal law
and tort law?
A. Criminal cases are prosecuted by the state, while torts are filed by individuals or
B. Criminal cases have different statutes of limitations than tort cases.
C. Criminal cases never require wrongdoers to pay money for their crimes.
D. Criminal cases require intent, while tort cases don’t require intent.
27. The owner of McBeath Fast Food is infuriated because a new restaurant has
opened across town named McPeath Fast Food. McPeath’s building looks
identical to McBeath’s building. Further, McPeath even uses the same lettering
style and color for its logo. McPeath’s actions may violate which of the following
A. The Copyright Act of 1976
B. Economic Espionage Act
C. The Federal Trademark Dilution Act
D. United States patent law
28. Mary Kate is sick and tired of Ashley. She imagines hiring someone to kidnap
Ashley so she won’t have to see her smiling face every single day. In her mind,
Mary Kate goes so far as to devise a specific set of circumstances for the
kidnapping. However, Mary Kate never actually contacts anyone to carry out the
plot. In fact, Mary Kate never does anything but think about having Ashley
kidnapped. This scenario fails to constitute a crime, because she
A. didn’t perform any act, which is an essential element of criminal liability.
B. lacked the specified state of mind or intent, which is an essential element of criminal
C. can’t be criminally liable for her thoughts.
D. didn’t actually seek to have Ashley kidnapped.
29. Brewster has had it with his next-door neighbor, Steve. Steve constantly
comes over to Brewster’s house and takes Brewster’s tools without permission.
Brewster decides he’s had enough of this rude behavior. Brewster hides in the
bushes and waits for Steve’s next visit. As Steve begins to enter Brewster’s
garage, Brewster jumps out of the bushes before Steve can see him and gives
Steve a sound thrashing. Brewster may be held liable for
C. intentional infliction of emotional distress.
30. Chuck entered an employment contract with Lucy in which he agreed to sell
footballs for her door-to-door. Lucy guaranteed that the contract was valid by
having an attorney write up a contract for Chuck to sign. The contract requires
that Chuck sell for only Lucy’s company during the contract period. Patty asks
Chuck if he’s interested in selling baseballs for her new company. Patty knows
Chuck is under contract with Lucy, but figures he has time to sell for both
companies. Patty is probably not liable for wrongful interference with a
contractual relationship because
A. a valid, enforceable contract must exist between two parties.
B. a third party must know that a contract exists.
C. a third party must intentionally cause one of two parties to breach the contract.
D. baseballs and footballs are entirely different products.
31. Sam went to E-Z Shop to pick up some groceries. Sam was in a bit of a hurry,
and began walking swiftly down the aisles of the store. Sam forgot about a
nagging knee injury that often reemerged when he moved too quickly. Sure
enough, as Sam was briskly walking down aisle 9, where a store employee had
neglected to clean up a spill, Sam’s trick knee went out and he fell to the floor, just
before he reached the spill. If E-Z Shop avoids liability in this case, it will probably
A. the store didn’t owe a duty to Sam.
B. the store didn’t breach any duty it owed to Sam.
C. Sam didn’t suffer any legally recognizable injury.
D. the store’s breach of duty didn’t cause Sam’s injury.
32. Which of the following statements is true?
A. Criminal offenses deal with the duties that individuals owe one another.
B. Criminal offenses must be proven by a preponderance of the evidence.
C. Criminal offenses are wrongs against society as a whole.
D. Criminal offenses deal with the infringement by one individual of the legal rights of
33. Grover viciously attacked Ralph with a club. Ralph suffered multiple physical
injuries, and his glasses were broken as well. Grover could be held responsible
A. assault and battery, both in a criminal and civil context.
B. assault and battery, in only a civil context.
C. assault and battery, in only a criminal context.
D. infliction of physical trauma.
34. John works at Photo-Heaven, where he develops pictures. John repeatedly
informs his supervisor that his chair desperately needs repair. One day, the chair
John is sitting in at work suddenly breaks, and John falls to the floor. John goes
to the hospital, where the doctor on call tells him he’s apparently uninjured. If
John files suit against Photo-Heaven for negligence, he’ll likely lose because
A. he assumed the risk because he knew the chair was broken.
B. he didn’t suffer a legally recognizable injury.
C. Photo-Heaven’s negligence didn’t cause John’s injury.
D. Photo-Heaven didn’t owe John a duty.
35. Scott spends years authoring a novel called The Great Fatsby. Scott is
enraged when he discovers that his former friend, Ernest, has reproduced The
Great Fatsby word for word under the name For Him the Bell Tolls. Ernest is likely
A. patent infringement. C. trademark dilution.
B. trademark infringement. D. copyright infringement.
36. If you or your compay is a victim of defamation online, your most effective
current legal recourse is to sue
A. the ISP. C. the Web site(s) where it occured.
B. the software provider. D. John Doe.
37. Criminal offenses are different from other types of wrongful conduct because
A. wrongful conduct that results in civil liability deals with wrongs committed against
society as a whole.
B. criminal liability must be proven beyond a reasonable doubt, while civil liability
requires only proof by a preponderance of the evidence.
C. the person who suffered harm brings suit in a criminal case, while the state manages
suits in civil cases.
D. in civil cases, parties found liable may be fined or imprisoned.
38. Joe registered for the domain name waffles.com because he knew that the
world-renowned restaurant, Waffles, would want to use the same domain
name.Waffles could protect its interests in its trademarked name by
A. filing suit under the Anticybersquatting Consumer Protection Act.
B. filing suit under the Digital Millennium Copyright Act of 1998.
C. filing suit for trademark dilution.
D. seeking an online patent.
39. Scud hides and waits in the bushes for Peter to walk by him. When Peter
approaches, Scud jumps out and acts as if he’s going to strike him with a baseball
bat. Scud only means to scare Peter. Peter falls to the ground and breaks his arm.
Peter may have a cause of action against Scud for
A. battery. C. emotional distress.
B. assault. D. trespass and intimidation.
40. Nicole mistakenly took Ted’s umbrella when she was leaving a trendy
nightclub. Ted’s umbrella looked just like hers, and Nicole didn’t even realize her
mistake until Ted filed suit against her. Nicole still has the umbrella. Ted most
likely filed suit against Nicole for
B. trespass to personal property.
C. invasion of the right to privacy.
D. intentional infliction of emotional distress.