Business Law Practice Questions Source: http://www.csun.edu/bus302/Lab/SampleExams/lawquiz.pdf MULTIPLE CHOICE (answers at bottom of page) 1.

Paul filed a lawsuit for false imprisonment against Dans Bookstore. During a visit to Dans Bookstore, Dan stopped Paul as he left the store. Dan accused Paul of stealing a book from the store. After briefly looking into Pauls shopping bag, Dan determined that Paul did not shoplift. He apologized to Paul and released him. On these facts, Dan will likely:

a. win the case, because the shopkeepers privilege statute gives store merchants unconditional immunity (protection) from such lawsuits. b. lose the case, because Paul did not shoplift. c. win the case, but only if a court or trier of fact concludes that Dan had reasonable cause to believe Paul may have shoplifted, detained him for a reasonable time, and in a reasonable manner. d. lose the case, because Dan did not have a warrant.
2. Bonds wrote McGuire, I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payable upon merchantable deed, deal to be completed within 60 days of the date of your acceptance. Assuming that Bonds letter contains terms which are deemed sufficiently certain and definite, which of the following statements is correct?

a. Bonds letter is not an offer unless Bonds intended it to be an offer. b. Bonds letter is not an offer unless McGuire thought Bonds intended to make an offer. c. Bonds letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer.. d. Bonds letter is not a offer unless both Bonds and McGuire considered it as an offer.
3. Iverson Jewelers wrote a letter to Miller, We have received an exceptionally fine self winding Rolox watch which we will sell to you at a very favorable price.

a. The letter is an offer to sell. b. A valid offer cannot be made by letter. c. The letter contains a valid offer which will terminate within a reasonable time. d. The letter lacks one of the essential elements of an offer.
4. Don was negligently driving south on Merdock Avenue when his car rear-ended a car driven by Patty. The force of the impact forced Patty to rear-end Terrys car. In turn, the force of the second impact caused Terrys car to hit a lamppost, which then fell on a house owned by Paul. The force of the impact scared Paul, causing him to immediately have a heart attack. Paul suesDon for negligence. If Paul recovers, the most likely reason is:

a. Paul was able to prove that Don proximately caused Pauls injuries. b. Paul was able to prove that the damages he suffered were actually caused by Don. c. Paul was able to prove that Don breached a duty of due care owed by Don to Paul. d. Paul was able to prove all of the above (a, b & c).
5. Sammy agreed to sell and Larry agreed to buy Sammys car for $400, payable upon delivery. Sammy delivered and left the car with Larry. However, Larry failed to pay Sammy the $400. After eight years had passed following the delivery and acceptance of the car by Larry, Sammy sued Larry in state court for failure to pay him the $400. Based only on the above stated facts, which of the following statement is most accurate? Assume the UCC applies and the statute of imitations for oral contracts is two years and for written contracts is four years.

a. No contract was ever created between Sammy and Larry. b. A contract was created but likely not enforceable because the statute of limitations has expired. c. A contract was created, but it is only enforceable if it is in writing. d. A contract was created and is enforceable.
6. Bill purchased a can of Sipep from the Ajax Minimart. After he finished drinking the Sipep, Bill noticed that the can contained dead insects stuck on the inside bottom of the can. In a strict product liability tort action against Ajax, Bill must prove, among other things, that:

a. Ajax is a merchant selling Sipep. b. Ajax knew or should have known of the defective condition. c. Ajax had prior notice of other similar problems with Sipep products. d. Ajax actually placed the dead insects into the can.
7. Under which of the following situations does strict product liability apply?

a. Sale of a defective and unreasonably dangerous product. b. Manufacture of a defective and unreasonably dangerous product. c. Both (a) and (b) are correct. d. Neither (a) nor (b) are correct. 8. On May 1, Back-Talk Computer Store offerd to sell five (5) computer servers to Gatekeeper
Company for $5,000.00 each, delivery to be on May 30. Later that day (May 1), Gatekeeper responded that it would buy the computers only if they were delivered within three business days. Back-Talk notified Gatekeeper the next day, May 2, that it would not be able to deliver the goods within the time requested by Gatekeeper. Which of the following is true regarding Back-Talk's offer?

a. There is no contract between Back-Talk and Gatekeeper. b. Gatekeeper's additional term became part of the contract, so Back-Talk is obligated to deliver the goods within three business days. c. Back-Talk's offer was accepted by Gatekeeper

d. Gatekeeper may later accept Back-Talks May 1 offer if it is then willing to accept delivery in four weeks.
9. The body of law which establishes rights between persons and provides for redress for violation of those rights is known as:

a. Criminal Law. b. Civil Law. c. The Uniform Commercial Code. d. Stare decisis. 10. Donny threw a knife at Sally, intending to injure her severely. However, Donny missed Sally. Sally saw the knife just as it whizzed by her head, missing it by about one inch. As a result, Sally was very scared. Sally sued Donny for assault and battery. Which of the following is most correct? a. Donny will be liable for battery, but not assault. b. Donny will be liable for assault, but not battery. c. Donny will be liable for assault and for battery. d. Donny will not be liable for either assault or battery because this is only a criminal matter.
11. In most states the following types of contracts are within the statute of frauds. a. Contracts for the sale of an interest in personal property. b. Contracts that can be performed within a year from the date of their formation. c. Contracts for the sale of goods. d. Contract sfor the sale of goods for a price of $500 or more.

12. On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an office building. The offer included an express term that it would expire on June 30, 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. On June 30, 2005 at 8:00 a.m., Masse sent a written acceptance to Eckerly via Masses personal messenger. However, the messenger was not able to deliver the acceptance until July 1, 2005. On July 2, 2005, Eckerly contacted Masse, informing him that the acceptance had been delivered one day late. As a result, Eckerly refused to honor the acceptance. Which of the following is the most correct statement? a. There is no contract between Eckerly and Masse. However, if Masse would have mailed

the acceptance on June 30, 2005, a contract would have been created. b. There is a contract between Eckerly and Masse. The moment that Masse gave the acceptance to the messenger, a contract was formed because acceptances are valid immediately upon dispatch. c. There is a contract between Eckerly and Masse. The fact that the acceptance arrived only one day late is of no significance. d. There is no contract between Eckerly and Masse. 13. Which of the following statements is correct concerning the "reasonable person" standard in tort law?
a. The reasonable person standard varies from person to person. b. The reasonable person standard focuses on the defendants subjective mental state rather than on the defendants behavior. c. A person with a physical disability must act as would a reasonable person with the same disability. d. A person with a mental disability must act as would a person with the same mental disability.

14. Robert makes the following statement while negotiating the sale of his car, This is the sharpest car on the market. His statement may support a claim for: a. misrepresentation. b. fraud. c. fraud and misrepresentation. d. none of the above. 15. Paula rented an apartment to Dave for $500 per month. Paula and Dave signed a one-year lease, to be effective beginning January 1st. After three months, Dave decided that he did not like the apartment. He gave Paula a 30-day written notice, stating that he would vacate the rental unit at the end of the thirty days, which was April 30th. Upon receipt of Daves notice, Paula made reasonable efforts to find a new tenant. Nevertheless, the apartment remained vacant from May 1 st. through June 30 th. Paula re-rented the apartment beginning July 1 st. for one year. Paula sues Dave in small claims court. What is the likely outcome? a. Paula is entitled to the balance of the lease, or $4,000, because Dave did not have a valid

reason to breach the contract. b. Paula is entitled to nothing, because Dave gave Paula thirty-days written notice. c. Paula is entitled to $1,000, because she tried to find another tenant immediately upon learning of Daves intent to breach the contract, but was unable to re-lease the apartment until July 1 st. d. Paula is entitled to $500, which represents one-months rent. 16. Tom and Jerry entered into a contract whereby Tom agreed to sell Jerry $1,000 worth of heroin, an illegal substance. This is an example of a: a. quasi contract. b. void contract. c. voidable contract. d. secondary party beneficiary contract.
Revised: 01/06Answers to Business Law Practice Questions 1. c 2. c 3. d 4. d 5. b 6. a 7. c 8. a 9. b 10. b 11. d 12. d 13. c 14. d 15. c 16. b

SAMPLE MULTIPLE CHOICE QUESTIONS (Con. Law) Doug Linder Source: http://law2.umkc.edu/faculty/projects/ftrials/conlaw/Lindexmc.htm 1. Which of the statements below most accurately describes the intentions of the framers with respect to whether the Supreme Court should be given the power to invalidate acts of Congress? (A) Some delegates thought that the Court should have the power to strike down acts of Congress inconsistent with natural law, even where no constitutional provisions had been violated. (B) Some delegates believed that the Court should not be given the power to invalidate acts of Congress. (C) Many delegates probably never gave the issue of judicial review serious consideration because they thought it unlikely that Congress would ever act unconstitutionally. (D) All of the above statements are true. 2. In Craig v. Boren, the Court struck down Oklahoma's law which allowed 18-year old women to buy 3.2 beer, but required men to be 21 to purchase beer. What happens next? (A) The law is void and any person of any age can buy beer. (B) Eighteen-year-old men are free to buy beer, but the Oklahoma legislature would be free to raise the

age for everyone to 21. (C) The law remains enforceable as written until the Oklahoma legislature decides whether to raise the minimum age to 21 for everyone. (D) Eighteen-year-olds are free to buy beer, and any attempt by Oklahoma to raise the age to 21 for everyone would be unconstitutional. 3. A city adopts an ordinance requiring the operators of massage parlors to receive licenses from the city. In the absence of more complete information, what would you say about the chances of successfully challenging the ordinance on constitutional grounds? (A) Weak - the Court probably will uphold after applying rational basis test. (B) Strong - the Court will probably strike down on "right of privacy" grounds. (C) Strong - the Court will probably strike down on equal protection grounds unless the city also licenses most other businesses. (D)Fairly strong - the court will probably apply middle-tier scrutiny since sex is involved. 4. The U.S. Constitution has as its most significant purposes -(A) Conferring power on national and state governments (B) Conferring power on the national government and limiting the power of national and state government (C) Limiting the power of national and state government (D) Conferring power on national government and limiting the power of national and state governments and private individuals 5. In Plyler v. Doe, the Supreme Court held that Texas may not deny a free public education to the children of illegal aliens. How did the Court justify its decisions? (A) The statute lacked a rational basis. (B) Alienage is a suspect classification and Texas could not show it had a compelling interest. (C) Education is a fundamental right and Texas could not show that the statute was narrowly tailored. (D) The Court held for the aliens on procedural grounds. 6. F.A.A. regulations prohibit commercial airlines from employing as pilots persons over age 60. The regulation is based on evidence that the incidence of serious health problems increases markedly in the mid-60's. This F.A.A. regulation could be described as: (A) Primarily underinclusive (B) Primarily overinclusive (C) Equally overinclusive and underinclusive (D) Lacking a rational basis 7. Which of the following was not identified by the Supreme Court in the Carolene Products case to be a factor which may justify more careful scrutiny of a statute that disadvantages a minority group? (A) The group is underrepresented in the political process. (B) The group lacks significant social contact with groups holding most political power. (C) The group perceives itself as inferior to other groups in society. (D) The group has been the victim of discrimination in the past. 8. Which of the laws below would be least likely to raise a significant substantive due process issue under the analysis used in Griswold and Roe?

(A) a law prohibiting marriage between cousins (B) a law establishing grounds for termination of parental rights (C) a law prohibiting sodomy between consenting adults (D) a law prohibiting indecent exposure 9. As interpreted by the Supreme Court in Marbury, which of the following statements can be made about Art. III, 2? (A) The original jurisdiction of the Supreme Court is set by the Constitution; Congress can neither add to it nor subtract from it. (B) Congress can add to the Supreme Court's original jurisdiction, but it can't subtract from it. (C) Congress can subtract from the Supreme Court's original jurisdiction, but it can't add to it. (D) Congress can make "any exceptions" to the Supreme Court's jurisdiction it desires. 10. Which of the following theories about the applicability of the Bill of Rights to the states can be said to have emerged victorious? (A) The "No Incorporation" theory (B) The "Selective Incorporation Plus" theory (C) The "Total Incorporation" theory (D) The "Total Incorporation Plus" theory 11. Which of the following statements best describes the process of ratification of the Constitution? (A) Ratification probably would not have occurred without the promise to swiftly propose a Bill of Rights. (B) Ratification was a foregone conclusion given the stature of those attending the Philadelphia Convention. (C) Ratification became possible only because of the efforts of George Washington, author of The Federalist papers. (D) Ratification occurred largely because opposition to the Constitution was weak and disorganized. (E) Ratification would probably not have occurred if not for bribes paid to state legislators in key states. 12. Which of the following statements most accurately describes how the Court has treated statutes that disadvantage indigents? (A) Indigency is a suspect classification triggering strict scrutiny. (B) The Court has been sympathetic to claims of indigents when the state imposes a substantial fee before it confers an important benefit, but the Court has been unwilling to use the equal protection clause to help indigents achieve a minimum standard of living. (C) The Court has been particularly unreceptive to claims based on indigency, and his consistently treated statutes denying benefits to indigents to rational basis review. (D ) Indigency has been recognized as a quasi-suspect classification, and the level of scrutiny is similar to that used in gender cases. (E) The Court has stated that it will use a sliding scale analysis in cases involving indigents. 13. The Ninth Amendment to the U.S. Constitution (A) Repeals the Seventh Amendment. (B) Imposes a specific limitation on the power of the states to intrude into matters of privacy. (C) Prohibits the quartering of soldiers in private homes. (D) Provides that the specification of rights in the first eight amendments isnt meant to be exhaustive. (E) Guarantees that states shall have powers not delegated to the Federal Government.

14. Which of the following governmental actions is most likely vulnerable to successful constitutional challenge, given the Courts decisions in the right to travel cases? (A) A gasoline tax. (B) Highway tolls. (C) Denial of passport. (D) A law requiring state employees to reside in the state. (E) A law limiting public housing to persons who have lived in the state for at least one year. 15. Assume a state passes a law requiring all uneducable mentally retarded persons (defined with reference to scores on a standardized exam) to be sterilized at age 15. Which of the following is probably the weakest argument to use in a constitutional challenge to the law? (A) Mentally retarded persons have the attributes of a discrete and insular minority and should be treated as a suspect class. (B) The law violates the mentally retarded persons right of privacy protected in Griswold and Roe. (C) The right to bear children and raise a family is a fundamental right triggering strict scrutiny of the classification involved. 16. Which of the following statements about the Takings Clause is not accurate? (A) The government generally may take private property, so long as it pays just compensation. (B) Private property may not be taken by the government for a private use. (C) The Takings Clause applies only to real property, not personal property. (D) The Supreme Court has not held the Takings Clause violated in over three decades. (E) Both (C) and (D) are false. 17. Which of the following has not been identified by the Court as a factor to consider in deciding whether a taking has occurred? (A) The value of the property involved. (B) Whether the government has interfered with investor-backed expectations. (C) The value of the property before the government action compared to its value after the government action. (D) The character of the government action. 18. Which of the following has not been advanced as a major justification for the state action requirement? (A) Equality (B) Liberty (C) Pluralism (D) Principles of federalism 19. Which of the following is most likely to be found to be state action under the Public Function Doctrine? (A) The maintenance of a private amusement park such as Disneyland. (B) The operation of a parking ramp. (C) The actions of a volunteer fire department. (D) The actions of a private firm hired by a state to collect delinquent taxes.

20. Justice Black argued that the Fourteenth Amendment absorbed the specific guarantees of the Bill of Rights and no more because: (A) The Bill of Rights contains the most fundamental guarantees of liberty. (B) He was told that was the purpose of the Amendment by one of its framers. (C) He was concerned about having cases decided by the gut feelings of judges. (D) He wanted to annoy Justice Frankfurter, with whom he had a long-lasting feud. 21. Which of the following rules of constitutional interpretation is NOT generally followed by the U. S. Supreme Court? (A) As a general rule, if a case can be decided on statutory grounds, the Court will not reach constitutional issues. (B) The Court will generally accept state supreme court interpretations of state statutes. (C) The Coiurt will not agree to decide a constitutional question when the state court decision below is supported by an independent and adequate state ground. (D) The Court is generally more reluctant to overrule one of its own precedents decided on constitutional grounds than one of its precedents decided on statutory grounds. (22-23.) Amanda owned two collies, Rehnquist and Brennan. Before Amanda left on a seven-day trip, she arranged to have a friend look after Rehnquist and Brennan. The dogs were kept in the Angst back yard, which was surrounded completely by a high fence. The morning after Amanda left on her vacation, a Mill Valley city weed inspector visited her property. The city inspector entered the back yard by opening a latched gate. Upon leaving Amanda's property, the inspector neglected to latch the gate securely, and shortly thereafter Rehnquist and Brennan escaped. When Amandas friend stopped by the next day to feed the dogs, the gate was latched (apparently blown shut by the wind) and the back yard was, of course, dogless. The friend assumed that Amanda must have decided to take the dogs with her or left them in a kennel. After their escape, Brennan and Rehnquist traveled down the road to the Nelson family residence. Jake Nelson, no lover of dogs, noted the arrival of two large dogs with great alarm. Jakes two young daughters were playing in the yard and he feared for their safety. Jake grabbed his rifle and walked out to his front porch. At that instant, Brennan began to bark and move (some would say playfully; Jake thought threateningly) in the direction of his two-year old. Jake fired his gun at Brennan, killing the dog instantly. After the shooting, Jake called the Mill Valley police and told them about the incident and of the presence of a second dog. The city dogcatcher was dispatched to the Nelson residence. Rehnquist was apprehended and brought to the City Kennel. A mill Valley ordinance provides that all dogs must either be on a leash or on enclosed private property. Dogs found unleashed are to be brought to the kennel and maintained there until claimed by their owner. The law requires that when the name of the dogs owner is known (as where the dog has identifying tags), the owner is to be notified by mail of the dogs capture and informed that he has three days in which to claim the dog. If a dog is not claimed after three days, city law provides that the dog is to be sold or disposed of in some other manner. If claimed, the dog is returned to the owner after payment of a $100 fine. Rehnquist wore a name tag which identified him as the property of Amanda. A notice was left on Amanda's front door informing her of the dogs capture and warning her that the dog must be claimed within three days. When Rehnquist was not claimed within the period specified by law, he was sold to a Mill Valley business, Delightful Meat Products, Inc., for $15.00. Rehnquist was never heard from again. Upon her return from her trip, Amanda was greatly distressed to learn of the fate of her two pets. She would like to sue Nelson and Mill Valley.

Amanda sues Nelson and the City of Mill Valley, alleging that she has been deprived of her constitutional rights under color of state law. 22. What is the likely resolution of Amandas suit against Nelson for "deprivation of property without due process"? (A) It will be dismissed because Nelson is not a state actor. (B) Because the dog's release was caused by a state actor, Nelson would be seen as "a joint participant" in the constitutional violation. (C) Dealing with loose pets, since normally a job performed by city animal control personnel, is a "public function," bringing Nelson's actions under the Constitution. (C) It is a close question whether Nelsons action will be found to be state action. 23. What is the best constitutional argument Amanda has in her suit against Mill Valley? (A) Selling Rehnquist to a meat product company is cruel and unusual punishment. (B) Capturing Rehnquist and taking him to the kennel was an unlawful seizure. (C) The failure of the city to turn over to Amanda the $15 sale price of Rehnquist to Amanda constitutes a taking. (D) City laws authorizing the sale or disposal of captured dogs fail to provide adequate process. (E) Rehnquist was entitled to a jury trial prior to his sale or disposal.

Answers: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. D B A B A B C D A B A B D E A D A A D C D A D