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Law Business Midterm Test True/False Indicate whether the statement is true or false. ____ ____ ____ ____ ____ ____ ____ ____ ____ 1. Law is a body of enforceable rules governing relationships among individuals and between individuals and their society. 2. A crime of bribery can be committed even if the recipient does not do what the person offering the bribe asks. 3. A restriction on commercial speech that does not implement a substantial government interest is invalid. 4. Some constitutional protections apply to business entities. 5. To succeed in a product liability suit based on strict liability, a plaintiff must prove that a product was defective when the defendant sold it. 6. Political speech that would otherwise be protected by the First Amendment loses that protection if its source is a corporation. 7. The United States Supreme Court has appellate authority over all cases decided in the state courts. 8. One requirement for a product liability suit based on strict liability is a failure to exercise reasonable care. 9. Patent infringement occurs only if all features or parts of an invention are copied. ____ 10. Generally, a state court can exercise jurisdiction over a nonresident by showing that he or she had minimum contacts with the state. Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 11. As a joke, Fran hides Gary's business law book so that he cannot find it during the week before the exam. Fran is liable for a. appropriation. b. disparagement of property. c. trespass to personal property. d. wrongful interference with a business relationship. ____ 12. Dan files a suit against the federal government to block the enforcement of a new tax law. Dan claims that Congress attempted to regulate indirectly, by taxation, an area over which it has no authority. Most likely the court will a. validate the tax if it is reasonable. b. validate the tax without considering whether it is reasonable. c. invalidate the tax if it is reasonable. d. invalidate the tax without considering whether it is reasonable. ____ 13. Original, Inc., sells its product under the name "Phido." Quik Corporation begins to market an identical product under the name "Fido." This is a. trademark infringement. b. patent infringement. c. copyright infringement. d. none of the above. ____ 14. 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 or obey the law. b. appreciate the wrongfulness of his conduct only. c. obey the law only. d. appreciate the wrongfulness of his conduct and obey the law. ____ 15. Sam files a suit against Tina. If this suit is like most cases, it will be a. resolved only after a trial. b. settled before the parties enter a courtroom. c. dismissed or settled before the parties enter a courtroom. d. dismissed before the parties enter a courtroom. ____ 16. The idea for "On Your Mark," a computer game featuring racing cars, is protected by a. trademark law. b. trade secrets law. c. patent law. d. copyright law. ____ 17. Jack receives an MP3 player stolen from Kate. To be criminally liable, Jack must know a. only that the player is stolen. b. that the payer is stolen and that Kate is the true owner. c. only that Kate is the true owner. d. none of the above. ____ 18. American Business Coalition (ABC), a political lobbying group, wants a certain policy enacted into law. If ABC's policy conflicts with the U.S. Constitution, a law embodying it can be passed by a. any state legislature and Congress. b. any state legislature but not Congress. c. Congress but not any state legislature. d. none of the above. ____ 19. Don submits his claim against Eagle 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. Don or Eagle. b. Eagle only. c. Don only. d. none of the above. ____ 20. Jan and Kyle sign a contract that provides if a dispute arises, they will submit to arbitration. A dispute arises, but before it goes to arbitration, Jan files a suit against Kyle. The court will likely a. hear the suit and then order the parties to arbitrate. b. order the parties to arbitrate. c. order relief without hearing the suit or compelling the parties to arbitrate. d. hear the suit without ordering the parties to arbitrate. ____ 21. The National Conference of Commissioners on Uniform State Laws a. imposes uniform laws on the states. b. drafts uniform laws for adoption by the states. c. applies uniform laws to the states. d. adopts uniform laws for the states. ____ 22. American Products, Inc. (API), manufactures construction equipment. Bob is injured while using an API nail driver and sues the company for product liability based on misrepresentation. To win, Bob must show that a. he was in privity of contract with API. b. API did not use due care with respect to the nail driver. c. API misrepresented a material fact regarding the tool, on which Bob relied. d. none of the above. ____ 23. Linda files a suit against Kate. Kate denies Linda's charges and sets forth her own claim that Linda breached their contract and owes Kate money for the breach. This is a. an affirmative defense. b. a crossclaim. c. a counterclaim. d. an irrelevant response. a. Delta and First. b. Delta only. c. First only. d. none of the above. Fact Pattern 3-1 Mack and Nancy engage in a business transaction from which a dispute arises. Mack initiates a lawsuit against Nancy by filing a complaint. ____ 25. Refer to Fact Pattern 3-1. If Nancy files a motion to dismiss, and the court grants it a. Mack will have a judgment entered in his favor. b. Nancy will be given more time to file another response. c. Mack will be given more time to file an amended complaint. d. Nancy will have a judgment entered in her favor. ____ 26. Refer to Fact Pattern 3-1. If Nancy responds to Mack's complaint by filing a counterclaim a. Mack will have a judgment entered in his favor. b. Nancy will have a judgment entered in her favor. c. Nancy will be given time to file an amended Register to View AnswerMack will be given time to file a response. ____ 27. 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 law is not true. c. Nancy suffered greater harm than Mack. d. Mack's statement of the facts is not true. ____ 28. Refer to Fact Pattern 3-1. The sheriff serves Nancy with a summons. If Nancy chooses to ignore it a. Mack will have a judgment entered in his favor. b. Nancy be must served with a second summons. c. Mack must file an amended complaint. d. Nancy will have a judgment entered in her favor. ____ 29. The process behind the production of "Fast Pace," a racecar video game, is protected by a. trademark law. b. patent law. c. trade secrets law. d. copyright law. ____ 30. Lee files a suit against Grant. Lee and Grant meet, and each party's attorney argues the party's case before a jury. The jury presents a non-binding verdict, after which the parties try to reach an agreement. This is a. a mini-trial. b. arbitration. c. early neutral case evaluation. d. a summary jury trial. ____ 31. Owen claims that a Pennsylvania state statute infringes on his "substantive due process" rights. This claim focuses on a. the steps to be taken to protect Owen's privacy. b. the content of the statute. c. procedures used to make decisions to take life, liberty, or property. d. the similarity of the treatment of similarly situated individuals. ____ 32. Civil law is concerned with disputes between persons and a. the public as a whole only. b. other persons and between citizens and their governments. c. other persons and between persons and the public as a whole. d. other persons only. ____ 33. Consumer Goods Corporation sells products that are poorly made. Tina, who has never bought a Consumer Goods product, files a suit against the firm, alleging that its products are defective. The firm could ask for dismissal of the suit on the basis that Tina does not have a. venue. b. standing. c. sufficient minimum contacts. d. jurisdiction. ____ 34. Greg, the president of Hi-Sales Corporation, claims that certain actions by the federal government and by the state of Iowa infringe on rights guaranteed by the Bill of Rights. All of these rights limit a. state governments and the federal government. b. state governments only. c. neither state governments nor the federal government. d. the federal government only. ____ 35. Good Tire Company designs and manufacturers car and truck tires. In a product liability suit based on negligence, Good Tire could be liable for violating its duty of care with respect to a. the manufacture of the tires only. b. the design or the manufacture of the tires. c. the design of the tires only. d. none of the above. ____ 36. Doug files a suit in Ohio against Beth over the ownership of a boat docked in Ohio. Doug and Beth are residents of New York. Beth could ask for a change of venue on the ground that New York a. has a sufficient stake in the matter. b. is a more convenient location to hold the trial. c. has sufficient minimum contacts with the parties. d. has jurisdiction. ____ 37. Applying the relevant rule of law to the facts of a case normally requires finding previously decided cases that, in relation to the case under consideration, are a. as similar as possible. b. at odds. c. as different as possible. d. identical. ____ 38. 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 service mark. b. trade dress. c. a certification mark. d. a collective mark. ____ 39. In a suit against Charles, Diana obtains the cancellation of a contract, which is a. an award of damages. b. rescission. c. an injunction. d. a decree of specific performance. ____ 40. Abel, Inc., copies Baker Corporation's patented invention to a substantial degree. Abel sells it as its own invention to Charlie Company, without Baker's permission. Baker's patent is infringed by a. Charlie only. b. Abel and Charlie. c. Abel only. d. none of the above. ____ 41. Jill invites Ken into her apartment. Ken commits trespass to land if he a. refuses to leave when Jill asks him to go. b. harms the apartment in any way. c. makes disparaging remarks about Jill to others. d. enters the apartment with fraudulent intent. ____ 42. 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. forever. b. for the life of the author plus seventy years. c. for ten years. d. for twenty years. ____ 43. Adam is charged with the commission of a crime. To find criminal liability, most crimes require a. the performance of a prohibited act only. b. a specified state of mind and the performance of a prohibited act. c. a specified state of mind or intent only. d. none of the above. ____ 44. Cordial Drinks, Inc., markets alcoholic beverages. A federal regulation bans the disclosure of the alcohol content of liquor on Cordial's labels and those of other marketers. A court would likely hold this regulation to be a. justified by the need to protect individual rights. b. constitutional under the First Amendment. c. an unconstitutional restriction of speech. d. necessary to protect national interests. ____ 45. Ron, the president of Standard Business Corporation, claims that an action by the state of Texas infringes on rights guaranteed by the Bill of Rights. Most of these rights apply to the states under a. the equal protection clause of the Fourteenth Amendment. b. the commerce clause. c. the due process clause of the Fourteenth Amendment. d. none of the above. ____ 46. Much of American law is based on a. the French legal system. b. the Roman legal system. c. the English legal system. d. the Greek legal system. ____ 47. Sources of law do not include a. rules issued by a chamber of commerce. b. ordinances passed by a city council. c. state constitutions passed by popular vote. d. rules issued by an administrative agency. ____ 48. 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. that court and courts of lower rank. b. courts of lower rank only. c. all courts. d. that court only. ____ 49. 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 service mark. b. trade dress. c. a collective mark. d. a certification mark. ____ 50. The brakes on a Central Railroad train engine malfunction and it rolls towards maintenance workers on the tracks. Everyone gets out of the way except Dick, who wants to show off. The train hits Dick, who sues Eagle, Inc., the brakes' manufacturer. Eagle can raise the defense of a. assumption of risk. b. a component-part manufacturer. c. consumer participation. d. product misuse. ... View Full Document

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