ARM 402 Practice Exam Questions - Ch
4, 5, and 6
A defendant's violation of a statute can
A) Constitute a breach of duty of care
B) Be categorized as irrelevant in a civil matter
C) Be relevant only in a criminal context
D) Translate into automatic damages being awarded to a plantiff - ANS A
A patent issued for an invention or process that has some usefulness, does not have to
be marketable, but must work is a
A) Utility patent
B) Plant patent
C) Process patent
D) Design patent - ANS A
A patent used for the invention of a machine is a
A) Utility patent
B) Process patent
C) Plant patent
D) Design patent - ANS A
A primary prevention measure for contractual liability is to have most contracts
A) Be oral rather than written
B) Reviewed by management before they are signed
C) Meet American Bar Association guidelines
D) Reviewed by counsel before they are signed - ANS D
A primary risk control loss prevention measure for contractual liability is to
A) Subcontract specific activities to transfer responsibility to others
B) Eliminate written contracts to the extent possible in routine operations
C) Use various techniques to address hazards on the premises
, D) Have most if not all contracts reviewed by counsel before they are signed - ANS D
A release of liability agreement for activities specified in the contract is
A) An exculpatory agreement
B) A duty
C) A waiver
D) A hold harmless agreement - ANS A
A2Z Contracting entered into a contract with a large corporation headquartered in a
different state. A2Z's counsel recommended that they negotiate to have a clause
included into a contract that specifies their state's law will govern the contract's
interpretation. This is an example of
A) A loss prevention measure for contractual liability
B) Limiting liability
C) A loss reduction measure for contractual liability
D) Diversification - ANS C
ABC Company and XYZ Company have entered into a contract which stipulates that, in
the event of a breach, the breaching party will pay the non-breaching party the sum of
$250,000. Such stipulations are called
A) Assigned damages provision
B) Liquidated damages provision
C) Nominal damages provision
D) Consequential damages provision - ANS B
All-Sport Athletic Company spent $120 million to develop the rubber soles of its athletic
shoes. The production method used to produce the rubber solesis a closely-guarded
company secret. When asked to place a value on the rubber sole technology, All Sport's
chief financial officer said, "$120 million." The intellectual property valuation method
used by the chief financial officer is the
A) Income approach
B) Enterprise value approach
C) Cost approach
D) Fair market value approach - ANS C
An implied contract is a contract that
4, 5, and 6
A defendant's violation of a statute can
A) Constitute a breach of duty of care
B) Be categorized as irrelevant in a civil matter
C) Be relevant only in a criminal context
D) Translate into automatic damages being awarded to a plantiff - ANS A
A patent issued for an invention or process that has some usefulness, does not have to
be marketable, but must work is a
A) Utility patent
B) Plant patent
C) Process patent
D) Design patent - ANS A
A patent used for the invention of a machine is a
A) Utility patent
B) Process patent
C) Plant patent
D) Design patent - ANS A
A primary prevention measure for contractual liability is to have most contracts
A) Be oral rather than written
B) Reviewed by management before they are signed
C) Meet American Bar Association guidelines
D) Reviewed by counsel before they are signed - ANS D
A primary risk control loss prevention measure for contractual liability is to
A) Subcontract specific activities to transfer responsibility to others
B) Eliminate written contracts to the extent possible in routine operations
C) Use various techniques to address hazards on the premises
, D) Have most if not all contracts reviewed by counsel before they are signed - ANS D
A release of liability agreement for activities specified in the contract is
A) An exculpatory agreement
B) A duty
C) A waiver
D) A hold harmless agreement - ANS A
A2Z Contracting entered into a contract with a large corporation headquartered in a
different state. A2Z's counsel recommended that they negotiate to have a clause
included into a contract that specifies their state's law will govern the contract's
interpretation. This is an example of
A) A loss prevention measure for contractual liability
B) Limiting liability
C) A loss reduction measure for contractual liability
D) Diversification - ANS C
ABC Company and XYZ Company have entered into a contract which stipulates that, in
the event of a breach, the breaching party will pay the non-breaching party the sum of
$250,000. Such stipulations are called
A) Assigned damages provision
B) Liquidated damages provision
C) Nominal damages provision
D) Consequential damages provision - ANS B
All-Sport Athletic Company spent $120 million to develop the rubber soles of its athletic
shoes. The production method used to produce the rubber solesis a closely-guarded
company secret. When asked to place a value on the rubber sole technology, All Sport's
chief financial officer said, "$120 million." The intellectual property valuation method
used by the chief financial officer is the
A) Income approach
B) Enterprise value approach
C) Cost approach
D) Fair market value approach - ANS C
An implied contract is a contract that
