The Fair Credit Reporting Act provides that a report containing information solely as to
transactions or experiences between a consumer and a person making the report is not a
consumer report covered by the act.
Answer:
The first ten amendments are known as the Bill of Rights.
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Private parties cannot represent themselves without a lawyer in U.S. courts.
Answer:
Willful violations of the Age Discrimination in Employment Act permit victims to be
awarded triple damages.
Answer:
Concentrating on the seven elements of interest-based negotiation proposed by Roger
Fisher, William Ury, and Bruce Patton can help remove some of the barriers created by
positional negotiation.
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Tort law helps protect property boundaries by providing compensation when someone
wrongfully crosses such boundaries.
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The Federal Trade Commission is the primary federal agency that protects consumers.
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The single largest number of lawsuits today, especially in the federal courts, involves
one business suing another business for tortious conduct.
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As a general rule, the law does not permit a lawyer to reveal confidential
communications and testify against a client, even if called to do so at a trial.
Answer:
A person can be convicted of conspiracy even if he or she did not know all the details of
an unlawful scheme.
Answer:
If an employer stops a pregnant employee who is capable of performing her duties
properly from working because the employer truly believes that it is in the best interests
of the mother and baby, the employer does not violate the Pregnancy Discrimination
Act.
Answer:
The concept of preemption applies only to federal statutes, not to the rules and
regulations of federal administrative agencies.
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Due process of law requires that before a rule or regulation may be adopted by an
agency, interested parties must be given notice of the proposed rules and an opportunity
to express their views on them.
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According to formalist thinker Immanuel Kant, to have good intent, one has to make an
exception for one’s own behavior.
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Even though a corporation is treated the same as an individual under most aspects of the
law, there are some rights that only individuals can possess.
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Personal jurisdiction over a defendant is obtained by a court when a plaintiff files a suit.
Answer:
In the context of providing untrue or misleading information to potential investors,
proof of negligence will support an injunction.
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The use of irrevocable letters of credit does not have any effect on reducing
uncertainties in international transactions.
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Regulation decreases the cost of government.
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The Federal Trade Commission enforces the Clayton Act.
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A charge establishing sexual harassment grounds is likely to exist even if no economic
loss occurs.
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Darcy offers Kate his farm house for $200,000. However, before Kate communicates
her acceptance, the farm house is destroyed in a fire. In this situation, Kate can sue
Darcy for breach of contract.
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For a consequentialist, lying itself is considered unethical.
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Courts throughout the United States have uniformly upheld mandatory arbitration
statutory schemes as against the constitutional challenges where a dissatisfied party can
reject an arbitrator’s award and seek a de novo judicial review of that award.
Answer:
One of the observations made by the Spanish journal Boletín Círculo is that profits and
business ethics are contradictory.
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The U.S. Supreme Court grants the petition for a writ of certiorari and allows another
review as a matter of right.
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Defamatory remarks are presumed false unless a defendant can prove their truth.
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The judicial review of an arbitrator’s award in a voluntary arbitration procedure is quite
restricted and is more limited than the appellate review of a trial court’s decision.
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Jurors normally give reasons for their decisions in U.S. courts.
Answer:
A patent is a legal monopoly in copying and marketing a new invention.
Answer:
A limited partner may assign his or her interest to another without dissolving the limited
partnership.
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Under the Right to Financial Privacy Act of 1978, an individual depositor has the right
to challenge an agency’s legal basis for seeking financial records.
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Releases only occur when a contracting party fails to perform.
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An insider is a person who owns at least 75 percent of a security.
Answer:
Regulatory law forbids owners from monopolizing classes of resources and sets rules
for how businesses can compete to acquire ownership in new resources.
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After a hearing is conducted by an arbitrator or arbitrators, the submission to arbitration
occurs.
Answer:
The creation of a partnership requires permission from each state in which it does
business.
Answer:
Which of the following statements is true about concurrent ownership?
A. The property interest is divided in joint tenancy.
B. The joint tenants can have unequal ownership of shares.
C. The tenants in common can own different shares of the resource.
D. The tenants in common can have the right of survivorship.
E. The ownership is divided such that each concurrent owner owns a specific piece of
the resource.
Answer:
Which of the following statements is true of the limitation of the Fair Credit Reporting
Act?
A. If a bank passes along any information it received from an outside source about its
customer, then its credit report is not covered by the act.
B. If a bank reports only as to its own experiences, it would come under the act.
C. If a bank furnishes information about a customer related to its transactions, it would
come under the act.
D. If a bank passes on information it collected from credit reporting agencies that used
several sources, it would not come under the act.
E. If a bank gave its opinion as to the creditworthiness of a customer in question, it
would come under the act.
Answer:
Which of the following statements is true of the National Environmental Policy Act?
A. It establishes a single piece of legislation that comprehensively controls radiation
pollution.
B. It imposes specific duties on all state agencies, but not on federal agencies.
C. It ensures that the Clean Air Act and the Clean Water Act do not contain provisions
related to government suits to recover costs for the cleanup of toxic chemicals.
D. It promotes the understanding of the ecological systems important to the United
States.
E. It demands that all state agencies prepare an environmental impact statement prior to
taking certain actions.
Answer:
Denver Crate University’s faculty is unionized. The faculty wants increased wages.
When the University refuses to bargain on wages, they vote to strike. Which of the
following statements is true under the Taft-Hartley Act?
A. A 60-day cooling-off period would apply in this situation.
B. The faculty union cannot strike if the University gives them a reason for not
increasing their wages.
C. The faculty has violated the Taft-Hartley Act by striking for an increase in wages.
D. A cooling-off period would not be applicable in this situation.
E. The faculty would be held guilty of precipitating a state of national emergency.
Answer:
The Video Privacy Protection Act prevents the disclosure of personally identifiable
information concerning video rentals and includes a right of civil action with a
minimum liquidated damages provision of ______.
A. $2,500
B. $5,500
C. $10,000
D. $12,500
E. $20,000
Answer:
The ______ made unfair or deceptive acts or practices in commerce illegal under
Section 5 of the Federal Trade Commission Act.
A. Celler-Kefauver amendment
B. Noerr-Pennington amendment
C. Herfindahl-Hirschman amendment
D. Robinson-Patman amendment
E. Wheeler-Lea amendment
Answer:
Which of the following is an example of a bailment?
A. babysitting your sister’s child for the weekend
B. house-sitting for a friend over the weekend
C. feeding a neighbor’s dog by tossing food over the fence
D. borrowing a friend’s car for a day
E. losing your car keys in a restaurant
Answer:
Which of the following statements is true of the doctrine of respondeat superior?
A. The liability with an employer ceases to exist in cases where the employer had
warned the employee against tortious acts.
B. Many respondeat superior cases involve employee negligence.
C. Employers are usually exempted from liability once the employee’s fault is
established.
D. Under respondeat superior cases, the scope of employment is irrelevant in
determining the liability of the employer.
E. An employee is legally exempted from making any reimbursements to the employer
once the employer pays for the tortious acts.
Answer:
Larry sells a truck to Tim. He does not mention to Tim that the truck has a faulty
engine. The truck breaks down after a week, and Tim has to replace the engine, which
costs him $2,000. In this case, Tim can sue Larry for the tort of ______.
A. fraud
B. trade disparagement
C. larceny
D. negligence
E. conversion
Answer:
Which of the following classifications is most likely to be presumed valid under the
minimum rationality approach?
A. voting rights
B. race
C. weight
D. legitimacy
E. gender
Answer:
______ refers to a colored design or shape associated with a product or service.
A. Patent
B. Trade dress
C. Copyright
D. Trademark
E. Blurring
Answer:
Which of the following acts is an example of conversion?
A. Zainab borrowing an annual report from a firm’s library
B. Donald returning Larry’s car in the same condition as it was when he had borrowed it
C. Scott publishing untrue statements about his manager in their company’s newsletter
D. Ruth purchasing a cell phone from Sandra without knowing that Sandra had stolen it
E. Gerome, a doctor, revealing sensitive patient information to the media without
obtaining the patient’s consent
Answer:
In the context of alternative dispute resolution systems, the act of referring a matter to
arbitration is called _____.
A. submission
B. informal review
C. concession
D. de novo review
E. conciliation
Answer:
Under the Worker Adjustment and Retraining Notification (WARN) Act, which of the
following constitutes a loss of employment?
A. a transfer leading to a reduction in position and pay
B. a layoff exceeding one month
C. a reduction in an employee’s work time of more than 50 percent in each month for
six months
D. an extended leave period of more than 10 weeks
E. a disciplinary notice requiring immediate response from an employee
Answer:
Standing to sue is determined __________.
A. by the filing of a motion in limine
B. at the discovery phase of the litigation
C. by the outcome of the litigation
D. at the outset of the litigation
E. using voir dire during jury selection
Answer:
Brett offers to sell his old but functioning cell phone to James for $65. James says he
will accept the offer if Brett lowers the price to $60. James has
A. made an unequivocal acceptance.
B. made a counteroffer.
C. demonstrated the exculpatory rule.
D. entered into an option contract.
E. entered into an executory contract.
Answer:
______ is the term used for the exercise of the secured property interest, which usually
means that the creditor must go through the court system to ensure that procedures are
properly followed before debtors lose their homes and land.
A. Lien
B. Easement
C. Redemption
D. Deficiency
E. Foreclosure
Answer:
Which of the following statements is true of liquidated damages?
A. They are the damages awarded by a court to a plaintiff for a breach of contract that
causes no financial injury to the plaintiff.
B. They are the damages awarded by a court arising from unusual losses, which the
contracting parties knew would result from a breach of contract.
C. They are the damages awarded by a court to put a plaintiff in the same position as if
a contract had been performed.
D. They are the damages specified in a contract when real damages for breach of
contract are likely to be uncertain.
E. They are the damages enforced when a party to a contract incurs damages even after
getting an injunction.
Answer:
Which of the following scenarios is an example of an irrevocable consent to a
warrantless search?
A. a person living in his or her apartment
B. a building constructor suspected to have violated a building code
C. a lawyer’s office
D. a passenger making his or her way through an airport checkpoint
E. a celebrity having a party on his or her premises
Answer:
Ian owes Shirley $5,000, which is payable in five installments at an interest. However,
after two installments, Ian offers to pay Shirley the entire debt to avoid paying the
interest. In this scenario, which of the following will take place if Shirley announces
that Ian does not have to pay the debt in further installments?
A. waiver
B. negotiation
C. release
D. arbitration
E. rescission
Answer:
_____ derives from society’s expectations about how fair and reasonable actions are.
A. Good faith
B. Due care
C. Utilitarianism
D. Conflict of interest
E. Liberty
Answer:
Which of the following is a difference between ethical and legal systems?
A. The moral values are observed from within the legal system, whereas the moral
values are observed in the form of state transaction in an ethical system.
B. An ethical system consists of rules to guide conduct, whereas the legal system
consists only of rules to foster social cooperation.
C. An ethical system primarily deals with what is wrong, whereas the legal system
primarily deals with what is right.
D. The legal system involves a broader-based commitment to proper behavior than an
ethical system.
E. The legal system is an institution of state, whereas an ethical system is not an
institution of state.
Answer:
The Equal Credit Opportunity Act is aimed especially at preventing ______.
A. race discrimination
B. age discrimination
C. sex discrimination
D. marital status discrimination
E. religion discrimination
Answer:
Which of the following statements is true of the various activities occurring during the
registration process of securities in a sale?
A. A registration becomes ineffective and invalid immediately at the expiry of the
waiting period.
B. Contracts to buy and sell securities are finalized during the posteffective period.
C. It becomes legal to sell a security subject to the act during the waiting period.
D. During the prefiling period, offers to sell and buy securities are permitted as per the
Securities Act of 1933.
E. Tombstone ads are made after the end of the posteffective period.
Answer:
The Toxic Substances Control Act (TSCA) demands that the Environmental Protection
Agency be given advance notice before the manufacture of new chemical substances or
the processing of any substance for a significant new use.
Answer:
When competitors attempt to share some activities or join together in the performance
of a function, they are performing ______.
A. derivative activities
B. appellate activities
C. preemptive activities
D. arbitrated activities
E. concerted activities
Answer:
In which of the following situations is there a conflict of interest?
A. A judge who occasionally shops in a store that is involved in a case before the same
judge
B. A real estate agent representing the buyer and seller of a house with permission from
the buyer and seller
C. An agent of one principal who secretly works for another whose interest competes
with that of the first principal
D. A bank regulator using a credit union
E. A lawyer discussing a case with his or her boss
Answer:
Which of the following members of an agency requires Senate approval while being
appointed?
A. secretary
B. advisory council
C. general counsel
D. chairperson
E. executive director
Answer:
When a state trial court has general jurisdiction, _____.
A. it cannot try criminal cases
B. it can issue writs of certiorari to the general population
C. it has the power to hear any type of case
D. it should have a jury present in both civil and criminal cases
E. it has the power to review judicial errors charged against a federal court
Answer:
Business often fails to regulate itself, and the lack of self-regulation is contrary to the
public interest. To counterbalance, administrative agencies exist to
A. refer the problem or area to experts for solution and management.
B. protect the public, especially from the business community.
C. replace competition with regulation.
D. develop detailed rules and regulations to carry out the legislative policy.
E. provide services that have arisen out of necessity.
Answer:
Stakeholder theory suggests that ethical corporate behavior __________.
A. strongly relies on government interaction
B. focuses primarily on whether corporate actions take the interests of all employees
into account before making significant business decisions
C. depends on managers who recognize and take into account the various stakeholders
whose interests a corporation affects
D. takes unacceptable risks only when the risk has a reasonable likelihood of enriching
the stakeholders’ net worth substantially
E. requires interaction specifically between managers and customers to promote profit
sharing
Answer:
Which of the following is a function of a trademark?
A. obviousness
B. utility
C. distinctiveness
D. certification
E. guarantee
Answer:
The members of the Public Company Accounting Oversight Board are appointed by the
A. president.
B. senate.
C. Federal Trade Commission.
D. congress.
E. Securities and Exchange Commission.
Answer:
An exception to the parol evidence rule allows
A. evidence of oral agreement that merely explains the meaning of written terms
without changing the terms.
B. evidence of oral agreements made on contracts that qualify for mandatory
arbitration.
C. evidence of oral agreements made on contracts that qualify for court-annexed
mediation.
D. evidence of oral agreements made at the time of or prior to a written contract that
changes the meaning of written terms.
E. evidence of oral agreements that are designed to favor the party that drafts a contract.
Answer:
Which of the following makes sole proprietorship a less desirable form of organization?
A. The creation of sole proprietorship is expensive and requires formal documentation.
B. A proprietorship’s business activity may be more stable than a proprietor’s
willingness to remain actively involved in the business.
C. A proprietor may have to share his or her voice of control and responsibility for the
business’ success with the other acting members of the organization.
D. Sole proprietorships are the hardest forms of organization to create.
E. Sole proprietorships are subject to double taxation.
Answer:
Explain the rule of first possession.
Answer:
State the concept of the incorporation doctrine.
Answer:
Describe the Clean Water Act sequence for cleanup of industrial wastes discharged into
rivers and streams.
Answer:
What are the primary provisions of the Sarbanes-Oxley Act?
Answer:
Allan promises to pay William $400 if he can steal the next day’s test paper from their
professor. That night, William steals the test paper and brings it to Allan. Allan, who is
now worried about getting caught, tells William he does not want the test paper and
refuses to pay him the $400. Has Allan breached the contract between him and
William?
Answer:
James is constructing a boundary wall for his house. A tree blocks the construction.
James instructs the construction workers to cut down a tree that had been planted along
the boundary. The tree is cut and falls on the road, blocking it completely, causing great
inconvenience to the people living in the locality. Under the tort law, which action can
be brought against James?
Answer:
What are the General Agreement on Tariffs and Trade principles from the 1994
Uruguay Round?
Answer:
How can business organizations be classified based on the number of persons who own
them? Give one example of each.
Answer:
When is a state law that limits picketing considered constitutional?
Answer:
Briefly explain the deference given to trial courts by courts of appeal.
Answer:
What are some of the significant factors to consider when choosing a form of business?
Answer:
A journalist working for a weekly magazine sneaks onto the property of a celebrity who
is not at home. He takes pictures through a bedroom window and they are published in
the upcoming issue of the magazine. When the celebrity reads the article published
about his personal life, he sues the journalist for defamation. Considering that the facts
published by the journalist are true, discuss how the celebrity can bring a successful
lawsuit against the journalist and the magazine.
Answer:
Explain how the “prevention of significant deterioration” policy under the Clean Air Act
works and why it is criticized by some.
Answer:
What are the provisions of the Internal Revenue Service (IRS) Whistleblowers Rewards
Program?
Answer:
Explain the characteristics that an invention should have in order to be patentable.
Answer:
Briefly explain the provision of triple damages under Section 4 of the Clayton Act.
Answer:
What are the three different forms of registration that apply to a state’s application of
blue sky laws?
Answer:
What are the sanctions recognized by the 1933 Securities Act in case of untrue or
misleading information being provided to a potential investor?
Answer:
Administrative agencies are created to provide expertise. Explain.
Answer: