This document contains a 30 question multiple choice exam on various legal topics including contracts, torts, intellectual property, business organizations, and criminal law. The questions test understanding of concepts like preemption, assumption of risk, trademarks, cyber squatting, the Digital Millennium Copyright Act, contract formation and defenses, the Uniform Commercial Code, moral philosophy approaches like utilitarianism, white collar crimes like embezzlement, Ponzi schemes, and the penalties imposed by the Sarbanes-Oxley Act.

1. LAW 421 Final Exam
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1) Which of the following does not result in a decision rendered by the hearing officer?
A. Arbitration
B. Mediation
C. Med-arb
D. Using expert evaluators
2) Jurisprudence is defined as
A. adjudication of law suits
B. the enactment of laws by a government body
C. the science and philosophy of law
D. the duties and obligations owed by a citizen
3) The state of Kansas has enacted a new law requiring all commercial trucks driving on Kansas
roads to have special mud flaps installed. These mud flaps have been proven to make driving in
the rain significantly safer due to reduced mist created by trucks driving in the rain, although
data regarding accidents and injuries has not yet been determined. Any truck entering Kansas
must have these flaps installed or will be subject to a significant fine and delay. The cost for
purchase and installation of these flaps is $1,000 per truck. In short, trucks must have these flaps
or go around the state. This Kansas law
A. is valid because it only applies to Kansas roads and such a law is entirely intrastate
B. is valid because Kansas's right to protect its citizens under its police powers will override any
outside challenges to this law
C. is invalid because this law is intended to regulate interstate commerce, an enumerated federal
power

2. D. is invalid because although on its face it's an intrastate law, this statute will have a significant
economic effect on interstate commerce causing an undue burden
4) The power of preemption is derived from
A. the power of judicial review
B. the Commerce Clause
C. the Necessary and Proper Clause
D. the Supremacy Clause
5) What is the main problem with international courts?
A. Finding judges who understand the complexities of international law
B. Creating a body of law that reflects multiple legal systems
C. Enforcing a ruling on sovereign nations is difficult
D. Lack of recognition from the U.N. and WTO
6) Under the U.S. legal system, subject to some exceptions, costs of litigation regarding both the
plaintiff and defendant
A. are all paid by the loser
B. are all paid by the winner
C. are paid for by each side with the plaintiff and defendant paying for their own legal costs
D. are totaled by the court and then for fairness, split in half with each side paying an equal
amount
7) Generally, torts law is governed by
A. state statutory law

3. B. state common law
C. federal statutory law
D. constitutional law
8) Assumption of risk is a defense to
A. conversion
B. negligence
C. defamation
D. battery
9) The three stripes on Adidas clothing represents a
A. trademark
B. trade dress
C. trade secret
D. patent
10) The color or shape of an item, if distinctive, is a
A. trademark
B. trade dress
C. copyright
D. patent
11) Cybersquatting describes the practice of

4. A. registering multiple domain names and then selling them back to companies at inflated prices
B. hacking into a company's website to install a virus or Trojan horse designed to steal
information but allow the site to continue operation
C. using mechanical devises to access a company's website multiple times to the point that
traffic to the site is slowed or blocked
D. hacking into a company's website to install a virus designed to cause the company's website
to totally cease operation
12) The Digital Millennium Copyright Act (1998) provided each of the following protections
EXCEPT
A. manufacturers of CD-Writers were required to pay 2% of their sales into a fund to be
distributed to copyright holders because the CD-Writers could easily copy music and other
copyrighted works
B. civil and criminal penalties were established for those who sell or manufacture products or
services that circumvent antipiracy software
C. restrictions were placed on analog recorders and camcorders that lack antipiracy features
D. ISPs were relieved of liability for copyright infringement by their users as long as the ISP
had no knowledge of the infringement
13) When Maria comes home from work, she finds that her yard has been mowed and trimmed.
An hour later, a man comes to her door to collect payment for the yard work. Maria refuses to
pay him because she has never seen him before nor had she hired him to do the work. Which of
the following is accurate?
A. This is an implied, unilateral contract, so she must pay.
B. Maria has received unjust enrichment so a quasi contract is formed, so she must pay.
C. The court would make Maria pay the reasonable cost of the work to be fair to both parties.
D. Maria would not have to pay anything.

5. 14) Where a promise can only be accepted by the performance of the person to whom it is
offered is an example of a/an
A. bilateral contract
B. unilateral contract
C. implied contract
D. quasi contract
15) Each of the following is a discharge by mutual consent EXCEPT
A. accord and satisfaction
B. novation
C. rescission
D. frustration of purpose
16) Harry sees an AK-47 automatic assault rifle in a gun shop window. He inquires about the
price and is told that it is $2,500. Harry signs a contract promising to pay the $2,500 on Friday,
taking possession of the rifle when payment is made. On Thursday, a law is enacted making the
ownership, sale, or possession of an automatic rifle illegal. This contract
A. automatically terminates due to impossibility
B. automatically terminates due to impracticability
C. automatically terminates due to frustration of purpose
D. is enforceable and not affected by the new law because it was entered into before the law
took effect
17) Which of the following is rarely awarded in contracts cases?
A. Consequential damages
B. Compensatory damages

6. C. Punitive damages
D. Liquidated damages
18) Which of the following is classified as an equitable remedy?
A. Consequential damages
B. Reformation
C. Restitution
D. Liquidated damages
19) Which of the following would not be considered tangible?
A. A car
B. Oxygen
C. The right of ownership
D. The pen or pencil you are using
20) With regard to consideration in a sales contract, the UCC differs from the common law in
that
A. consideration in a sales contract may be modified without additional consideration
B. consideration exchanged must be equal or very closely equal in sales contracts
C. consideration is not required in sales contracts
D. consideration in a sales contract may be modified as long as additional consideration is
provided
21) The UCC will permit an incomplete or slightly ambiguous contract to be enforced using each
of the following criteria EXCEPT

7. A. past commercial conduct
B. industry standards or norms
C. judicial input of any terms necessary to maintain fairness
D. correspondence or verbal exchanges between the parties
LAW421 Final Exam
22) Two merchant companies have entered into a contract for the sale of goods but have had no
prior dealings, which would establish a course of conduct between them. The UCC will allow
gap fillers to apply to their contract regarding missing terms in each of the following situations
EXCEPT
A. they have failed to specify when payment for the goods is to be made
B. they have failed to specify where delivery of the goods is to be made
C. they have failed to specify the quality or grade of the goods to be delivered
D. they have failed to specify the price of the goods to be delivered
23) When a buyer rejects nonconforming goods and purchases the appropriate goods from a
different seller, this is an example of which of the following:
A. Cover
B. Specific Performance
C. Lawsuit for Money Damages
D. Revoking Acceptance
24) Which of these is not a requirement for disclaiming a warranty?
A. Statutory authorization
B. A conspicuous writing
C. Explaining why the warranty is being disclaimed

8. D. Including the word merchantability if merchantability is to be disclaimed
25) "What if everyone took these same actions" is a question sometimes called the
A. universalization approach
B. utilitarian approach
C. functionality approach
D. morality approach
LAW 421 Final Exam
26) The utilitarian approach to moral philosophy was founded by
A. Jeremy Bentham
B. Immanuel Kant
C. Cicero
D. Kenneth Lay
27) Stan is an investment manager. He has received money from various investors with a
promise of very high returns on their investments. The invested money is not supplying enough
capital in order to pay the returns promised, so he has started using new investor's money to pay
older investors. By advertising and by word of mouth, people are anxious to invest with Stan
because of the money being paid, and with the influx of new investors, he is able to continue
operating. Stan is
A. operating an insider trading operation
B. racketeering
C. guilty of conspiracy to defraud
D. operating a Ponzi scheme

9. 28) Ben is the manager of a branch of a large bank. He has regularly taken money from
customer's accounts for his own use and changed the bank records to cover his actions. Ben is
guilty of
A. a conspiracy
B. a Ponzi scheme
C. racketeering
D. embezzlement
29) The Sarbanes-Oxley Act (2002) imposed stricter regulations on how corporations do
business through regulations in each of the following areas EXCEPT
A. tax compliance
B. financial reporting
C. corporate governance
D. auditing
30) Joan is the CFO of Para Corp. and is a year from retirement. In order to guarantee herself a
very substantial bonus and to boost her retirement package, she knowingly certifies false
financial reports making the company appear to be much more profitable than it really is. She
further takes steps to assure that the financial report was not reviewed through internal controls
maintained by Para Corp. Under the provisions of the Sarbanes-Oxley Act (2002), if her fraud is
NOT part of a larger scheme, what criminal penalties are possible for Joan?
A. $1 million in fines and up to 10 years in prison
B. $2 million in fines and up to 12 years in prison
C. $5 million in fines and up to 15 years in prison
D. $10 million in fines and up to 20 years in prison