1) George, an employee, breaches a fixed-term employment contract by quitting before the end of the term. What can his employer, MNO Inc. recover as damages?
A. All amounts already paid to the employee under the contract.
B. The costs of hiring a replacement employee plus any increase in salary paid to the replacement employee.
C. Nothing, because courts do not order anyone to perform a job against his or her will.
D. Only amounts paid to the employee for which the employee has not yet done the work.
2) In a guaranty arragement, the guarantor:
A. Promises to pay the debt of another if that person does not pay.
B. Promises to assume responsibility for the quality of goods.
C. Promises to pay the debt of another in any circumstances.
D. Promises to pay the debt of another contingent up the happening of some external event.
3) Which of the following is a distinguishing feature of a common law legal system?
A. The sole source of law is a comprehensive civil code
B. Requiring guilt be proven beyond a reasonable doubt
C. An appeal process
D. The making of law by the judges and the following of precedent
4) If a corporation is properly incorporated in one state and wants to do business in second state, the corporation:
A. Register with the Interstate Corporation Commission.
B. Must do nothing because being incorporated in one state entitles the corporation to do business in all states.
C. May be required to obtain a certificate of authority from the second state.
D. Must incorporate in the second state.
5) If an LLC fails to follow formalities such as keeping minutes of meetings, then which of the following is true?
A. This failure will not result in imposing personal liability on any member.
B. All members will lose their limited liability.
C. Only the parties responsible for the failure will lose limited liability.
D. Only the managers of a manager-managed LLC will lose limited liability.
6) Which of the following is true regarding mediation?
A. A settlement agreement is never reached with a mediator.
B. A mediator often meets with both parties at the same time.
C. A mediator does not make a decision or award.
D. If a settlement agreement is not reached in mediation, then the parties hire a new mediator.
7) Sandy lives on the top floor of a 10-story building in a big city. There is a 30-story apartment building under construction next door to her building. One morning while eating her corn flakes, a brand new toilet comes crashing through the roof of Sandy’s apartment and injures her. She would like to sue the construction firm, but has no way of finding out or proving what persons were involved or exactly what happened. The doctrine that would most help Sandy is:
A. Res ipsa loquitur
B. Last clear chance
C. Strict liability
D. Comparative negligence
8) If there is an area of interstate commerce that the federal government has not chosen to regulate, the states can:
A. Regulate in that area so long as the state law does not unduly burden interstate commerce.
B. Regulate without restriction in that area.
C. Regulate in that area so long as it first gets the requisite approval from Congress.
D. Not regulate in that area because states cannot pass laws affecting interstate commerce.
9) Burger Prince is one of the largest hamburger chains in the country and fiercly competitive with the well-known chain of Captain Hook Seafood House restaurants. Captain Hook recently introduced a new line of hamburgers in order to expand beyond seafood. Burger Prince received information that it believed to be reliable...