Question: After dining in a fine restaurant, Allen discovers that he left his wallet at home. When he explains his dilemma to the owner, the owner tells him he can leave and return to pay the bill but if he does not come back within an hour, the owner will call the police. Fearful that he will not be able to return within an hour, he is nervous about leaving so he calls a friend who he asks to retrieve his wallet. For the next hour, there is a lot of tension and Allen feels uncomfortable. Allen sues the owner for false imprisonment. Which of the following is the likely outcome?

Answer Options:
not prevail on false imprisonment but on assault because the owner threatened to call the police.
not prevail because Allen was not falsely imprisoned.
will prevail if he believed that by the owner threatening to call the police, he would not allow Allen to leave.
will prevail if Allen believed that if he attempted to leave, the owner would detain him because the owner knew it was impossible for Allen or his friend to deliver Allen his wallet in less than an hour.

Answer: will prevail if he believed that by the owner threatening to call the police, he would not allow Allen to leave.

 

Question: Which of the following are the attributes of a limited partner?

Limited liability for partnership debt.
Unlimited liability for partnership debt.
Management of the partnership business.
None of the alternatives are correct.

Answer: Limited liability for partnership debt.

 

Question: Van Dit who has an account in Pool Bank approaches Goldie Locke a bank teller to embezzle funds into his account. Goldie agrees. Which of the following is true?

Because she is the principal, Van is responsible for the actions of Goldie, Goldie must carry out her duties to Van.
Although Goldie may be considered the agent of Van, their arrangement is not a valid principal-agent relationship.
As long as Goldie does not embezzle for herself, she has no liability.
Despite the illegality of the arrangement, Goldie has a fiduciary duty to Van.

Answer: Although Goldie may be considered the agent of Van, their arrangement is not a valid principal-agent relationship.

 

Question: Which of the following is true with respect to a trademark?

The requirements for registration are the same as for a patent.
Registering it is mandatory.
Registering it is optional.
Trademarks cannot be registered.

Answer: Registering it is optional.

 

Question: Guy Baddler is the caregiver of his elderly father. Guy tells his father that unless he leaves Guy his entire estate by will, Guy will not take care of him. Guy’s father does so. Upon Guy’s father’s death, Guy’s two siblings challenge the validity of their father’s will. The probable outcome is which of the following?

Answer Options:
The siblings will lose because Guy provided consideration to the father.
The siblings will likely succeed on the basis of duress.
The siblings will likely lose on the basis of freedom of contract.
The siblings will likely succeed on the basis of undue influence.

Answer: The siblings will likely succeed on the basis of undue influence.

 

Question: In a franchise relationship, who is primarily responsible for marketing and advertising?

The franchisor provides all marketing materials and strategies.
The franchisee must develop their own marketing strategies.
Both the franchisor and franchisee share responsibility for marketing.
Marketing is outsourced by the franchisor to a third-party agency.

Answer: Both the franchisor and franchisee share responsibility for marketing.

Question

 

Question: Which of the following types of intellectual property have the least amount of time of exclusive rights?

A copyright.
A trademark.
They all have the same time period protection.
A patent.

Answer: A trademark.

 

Question: Cases brought in court based on diversity of citizenship

Answer Options:
must be a case involving federal law.
may be brought by any plaintiff against a defendant from another state subject to certain conditions.
violates the U.S. Constitution.
may be brought by any plaintiff as long as the defendant is from another state.

Answer: may be brought by any plaintiff against a defendant from another state subject to certain conditions.

 

Question: Which of the following is not intellectual property?

A copyright.
A stock certificate.

Answer: A stock certificate.

 

Question: The difference between a joint tenancy with right of survivorship and tenancy in common is which of the following?

Neither interest can be passed by will.
A joint tenant’s interest can be passed by the joint tenant to another person by will whereas a tenant in common interest cannot be passed by the tenant to another person by will.
A tenant in common interest can be passed by the tenant to another person by will whereas a joint tenancy interest cannot be passed by the joint tenant to another person by will.
Both interests can be passed by the tenant to another person by will.

Answer: A tenant in common interest can be passed by the tenant to another person by will whereas a joint tenancy interest cannot be passed by the joint tenant to another person by will.

 

Question: Chelsea, a professional painter hired by Goldie to paint her house was fired by Goldie because she did not always show up on schedule. Distraught, Chelsea began stalking Goldie by following her home and making menacing gestures. On several occasions she stood in front of Goldie’s home with a baseball bat. Which of the following is true?

Answer Options:
By Chelsea’s threatening conduct she has committed the torts of assault and battery.
Although Goldie has not suffered any physical injury, Chelsea has arguably committed the tort of intentional infliction of emotional distress by which Goldie may be able to collect monetary damages.
Chelsea has committed the tort of assault but since there are no physical damages to Goldie, there is no way for Goldie to collect monetary damages.
Chelsea has not committed a tort because she is just expressing frustration for being fired.

Answer: Although Goldie has not suffered any physical injury, Chelsea has arguably committed the tort of intentional infliction of emotional distress by which Goldie may be able to collect monetary damages.

 

Question: Under what circumstances is a defendant read his or her Miranda rights?

Answer Options:
To inform the defendant, he or she is entitled to a speedy trial.
Miranda rights are optional – not mandatory.
Anytime the authorities ask the defendant questions that could incriminate the defendant.
Only after being arrested and being informed that the prosecution intends to try the defendant for a crime.

Answer: Anytime the authorities ask the defendant questions that could incriminate the defendant.

 

Question: Enjoying gelato at the Duomo, Teah and Krista see a sign that says “341 Meeting This Tuesday.” What can Teah and Krista expect should they decide to attend?

Answer Options:
A trustee asking a debtor questions.
A bankruptcy judge deciding whether the debtor’s bankruptcy should be a Chapter 7 or Chapter 13.
A trustee deciding that a debtor’s debt has been discharged.
An auction of a debtor’s non-exempt property.

Answer: A trustee asking a debtor questions.

 

Question: Which of the following statements is CORRECT?
a. If two bonds have the same maturity, the same yield to maturity, and the same level of risk, the bonds should sell for the same price regardless of their coupon rates.
b. All else equal, an increase in interest rates will have a greater effect on the prices of short-term than long-term bonds.
c. All else equal, an increase in interest rates will have a greater effect on higher-coupon bonds than it will have on lower-coupon bonds.
d. If a bond’s yield to maturity exceeds its coupon rate, the bond’s price must be less than its maturity value.
e. If a bond’s yield to maturity exceeds its coupon rate, the bond’s current yield must be less than its coupon rate.

Answer Options:
a. True
b. False
c. False
d. True
e. False

Answer: d. True