Common ailments in which an employee has had a preexisting disease are compensable
as “accidental injuries.”
Answer:
Private property is a system of law under which the state recognizes and enforces an
individual’s rights to acquire, possess, use, and transfer scarce resources.
Answer:
The Federal Trade Commission is an independent administrative agency charged with
eliminating competition through the enforcement of the Sherman Act.
Answer:
When the parties to a contract fail to provide the required order of performance, the law
states the buyer’s payment is a condition that must be satisfied after the seller has
performed his or her duty to deliver.
Answer:
A limited partnership is solely made up of limited partners.
Answer:
Rescission is an equitable remedy granted to a plaintiff as a nominal amount when the
plaintiff does not incur any financial damage as a result of breach of contract.
Answer:
An executed contract is one in which the parties are yet to perform their promises.
Answer:
The information contained in a prospectus is completely different from that contained in
a registration statement.
Answer:
Misappropriation occurs when one discloses information that one was under a duty to
keep secret, even if the original acquisition was proper.
Answer:
A written promise is necessary for the rules of contract law to be applicable to a
contract.
Answer:
The only business protected by the Fifth Amendment privilege against compulsory
self-incrimination is a sole proprietorship.
Answer:
Federal sentencing guidelines reduce criminal fines for legal violations in companies
that have taken specific steps to self-police ethical/legal conduct.
Answer:
As a cause of action, injurious falsehood is similar to defamation of character.
Answer:
The Toxic Substances Control Act is like the Clean Air Act, which requires that certain
pollution standards be met without regard for economic factors.
Answer:
All new pollution-control rules are now subject to a cost-benefit analysis.
Answer:
Corporate governance rules protect the property interest that the owners have in
corporations.
Answer:
The destruction of the world’s rainforests is occurring primarily on privately owned
land as it is more difficult to enforce the laws in private property ownership cases.
Answer:
The Clayton Act is general in its terms and does not specifically set forth every act that
would constitute a violation of the law.
Answer:
When a firm is given monopoly power, it loses its freedom of contract, and a
governmental body is given the power to determine the provisions of its contracts.
Answer:
Design defects occur when a product is manufactured according to a manufacturer’s
standards, but the product injures a user due to its unsafe design.
Answer:
The tort of trespass arises only when a defendant damages the property of a plaintiff.
Answer:
Under patent law, even if an invention is otherwise new, it fails the novelty test if it has
been described in a publication, sold, or put to public use more than one year before a
patent application on it is filed (the one-year grace period).
Answer:
The primary focus of policymaking by way of social regulation has been on balancing
the costs of regulatory programs with their potential benefits.
Answer:
A fee simple absolute represents restricted, limited ownership of personal property.
Answer:
In the context of levels of performance, substantial performance is lesser than
significant performance.
Answer:
Basic constitutional rights are absolute.
Answer:
An insured bank is one whose deposits are insured by the Federal Deposit Insurance
Corporation.
Answer:
A court’s jurisdiction can only be limited to subject matter, not to the amount in
controversy.
Answer:
Ultimately, the commitment to ethical values is superior to mere observance of the law
in ensuring responsible business behavior.
Answer:
Strict liability torts impose legal responsibility for injury even though a liable party
neither intentionally nor negligently causes the injury.
Answer:
The right to receive a Worker Adjustment and Retraining Notification (WARN) notice
excludes part-time workers.
Answer:
Rule-of-law nations adopt laws supporting the private market because it is in everyone’s
interest, including the lawmakers’.
Answer:
The Landrum-Griffin Act prohibits ______.
A. secondary boycotts
B. strikes
C. lockouts
D. yellow-dog contracts
E. whistleblowing
Answer:
The ______ promotes economic development in poor countries by making loans to
finance necessary development projects and programs.
A. World Bank
B. World Trade Organization
C. United Nations Commission on International Trade Law
D. International Monetary Fund
E. Convention on International Sale of Goods
Answer:
Which of the following types of easement is also called easement by necessity?
A. negative easement
B. easement by prescription
C. easement by reservation
D. natural easement
E. functional easement
Answer:
______ are defined as those with a disability who, with or without reasonable
accommodation, can perform the essential functions of a particular job position.
A. Functionally disabled
B. Reasonably disabled
C. Qualified disabled
D. Relatively disabled
E. Quantifiably disabled
Answer:
Which of the following provides requirements for private pension plans?
A. the Fair Labor Standards Act
B. the Social Security Act
C. the Worker Adjustment and Retraining Notification Act
D. the Civil Rights Act of 1964
E. the Employment Retirement Income Security Act
Answer:
A municipality zoning ordinance attempts to regulate the placement of satellite dish
antennas in residential areas by specifying the size and location requirements. The
Supreme Court rules that the zoning ordinance is unconstitutional as it violates the
Federal Communications Commission Regulation law. In this case, the ruling of the
Supreme Court illustrates the concept of ______.
A. preemption
B. the contract clause
C. the exclusion clause
D. minimum rationality
E. defamation
Answer:
Which of the following statements is true of design patents?
A. The duration of a design patent is 14 years from the date of issue.
B. It is given to products that have undergone new compositions of matter or
improvements.
C. It is applied to useful, functional inventions.
D. It also covers all other inventions that are under the purview of plant patents.
E. It excludes the appearance of a product in considering the patent for a product.
Answer:
A factory’s failure to use pollution-control equipment may be evidence of its failure to
exercise ______ resulting in evidence of negligence.
A. best practices
B. prudence
C. standard of care
D. reasonable care
E. good faith
Answer:
According to the Spanish journal Boletín Círculo, which of the following is true about
business ethics?
A. Profits and business ethics are usually contradictory.
B. Unethical behavior is hardly a business liability.
C. Immoral behavior often flows from ignorance.
D. Business ethics reflect business leadership.
E. Ongoing reevaluations of ethics are insignificant and time-consuming.
Answer:
Josh crashes his car into Sheila’s house. Sheila is severely injured and suffers $95,000
worth of medical and property damages. She believes that the accident was Josh’s fault
and files a lawsuit at a state trial court. What would have to be different for Sheila to be
able to sue Josh in a federal court?
A. The amount of damages incurred by Sheila must be less than $75,000.
B. Josh must not have severely injured Sheila.
C. Josh and Sheila must live in different states.
D. Sheila must petition her elected officials.
E. Josh must have been intoxicated during the accident.
Answer:
Which of the following statements holds true for a Worker Adjustment and Retraining
Notification (WARN) notice in cases involving the sale of a business?
A. Any required notice prior to the sale being completed is the responsibility of the
seller.
B. The seller of the business holds the responsibility of issuing a WARN notice even
after the date of the closing.
C. A failure on the part of the seller to issue a WARN notice results in a $1,000 fine.
D. The seller has to provide written notice to the federal government at least 90 days
before the sale of the business.
E. The sale of a business mandatorily requires the WARN notice.
Answer:
Vincent keeps his bag of books and magazines at his friend’s storeroom, as he believes
that he will not be using it for a few months. This is an example of a(n) ______.
A. bailment for the sole benefit of the bailor
B. easement by prescription
C. bailment for the sole benefit of the bailee
D. negative easement
E. easement by necessity
Answer:
The one-year grace period applies to ______ law.
A. trademark
B. patent
C. copyright
D. trade secret
E. collective mark
Answer:
Which of the following statements is true under the Pregnancy Discrimination Act?
A. An employer that provides childbirth benefits to married women may deny the same
to single mothers if the employer finds single motherhood morally objectionable.
B. If a female employee undergoes an abortion, all other benefits provided for
employees, such as sick leave, must be provided to her.
C. An employer’s plan that covers childbirth for female employees can exclude
coverage for wives of male employees.
D. An employer is not required to provide coverage for abortion even if an employee
develops medical complications because of an abortion.
E. If a female employee is pregnant, her employer must specify how long a leave of
absence must be taken after childbirth.
Answer:
In the context of alternative dispute resolution, mediators __________.
A. can impose a binding solution on all disputing parties
B. typically use the principles of interest-based negotiations
C. must meet the licensing requirements for their decisions to be used in court if a
dispute proceeds to litigation
D. typically help parties prepare for litigation
E. act as a necessary precursor to arbitration
Answer:
For the formalist thinker Immanuel Kant, to be ethical requires that people act with a
good intent. To have a good intent, people have to act in ways that are ethically
consistent. This emphasis on consistency Kant called the _____.
A. protestant ethic
B. categorical imperative
C. pure reason
D. practical reason
E. hypothetical imperative
Answer:
A(n) ______ arises when someone contributes materials and/or services to real estate,
usually a building, and is not paid.
A. general lien
B. chattel lien
C. surety lien
D. mechanic’s lien
E. assayer’s lien
Answer:
According to the Securities Act of 1933, an individual who participates in the original
distribution of securities by selling such securities for the issuer or by guaranteeing their
sale is referred to as the
A. seller.
B. controlling person.
C. issuer.
D. underwriter.
E. bailee.
Answer:
In the context of property, contract law__________.
A. enables an owner to exchange resources, especially at a future date
B. compensates owners whose resources are wrongfully harmed by the actions of others
C. punishes those who harm an owner’s resources in particular ways
D. identifies how individuals can own and use private resources in groups
E. protects ownership and sets limits on private resource use
Answer:
Which of the following statements is true of the Comprehensive Environmental
Response, Compensation, and Liability Act?
A. It levies punitive damages up to five times of the cleanup costs.
B. It mandates notification for authorized release of hazardous substances.
C. It imposes strict liability on those responsible for unauthorized discharges of
hazardous wastes.
D. It supersedes international pollution control laws.
E. It provides a statement of revenues generated from organizations making healthy use
of natural resources.
Answer:
Registration by notification
A. is required by those issuers who lack a proven record and who are beyond the scope
of Securities Act of 1933.
B. refers to documents filed with the Securities & Exchange Commission (SEC) by a
privately held company, declaring its intent to offer shares of its stock to the general
public.
C. is required for those issuers of securities who must register with the Securities and
Exchange Commission (SEC) and the duplicate documents are filed with the state’s
administrative agency.
D. refers to the quality certification process in which an independent and accredited
quality auditor conducts an on-site audit of a firm.
E. allows issuers to offer securities for sale automatically after a stated time period
expire unless the administrative agency takes action to prevent the offering.
Answer:
Which of the following sections of the Securities Act of 1933 deals with imposing
liability on fraudulent interstate transactions?
A. Section 12
B. Section 11
C. Section 17
D. Section 4
E. Section 16
Answer:
According to Roger Fisher, William Ury, and Bruce Patton, any successful negotiation
must conclude with the disputing parties making realistic _____.
A. commitments
B. aberrations
C. deviations
D. communications
E. assumptions
Answer:
______ are those issues concerned with wages, hours, and other terms and conditions of
employment.
A. Voluntary bargaining issues
B. Optional bargaining issues
C. Secondary bargaining issues
D. Compulsory bargaining issues
E. Alternative bargaining issues
Answer:
If there are four firms in a market, each with a 25 percent share, the final
Herfindahl-Hirschman Index is ______.
A. 4000 points
B. 2000 points
C. 25 points
D. 4 points
E. 2500 points
Answer:
In the context of false advertising laws, state law
A. may allow for private lawsuits in addition to government enforcement, which is an
option not available under the Federal Trade Commission Act.
B. ignores material claims in deceptive advertising unlike the Federal Trade
Commission Act.
C. ignores express claims made in deceptive advertising unlike the Federal Trade
Commission Act.
D. only prosecutes violators who make implied claims in their advertising unlike the
Federal Trade Commission Act.
E. uses remedies such as corrective advertising to accompany some of its orders, which
is an option not available under the Federal Trade Commission Act.
Answer:
Unlike mandatory arbitration, voluntary arbitration is __________.
A. based on parties’ agreement after dispute arises or on contract clause before dispute
arises
B. unconstitutional in most states
C. coercive because it provides an unfair advantage to the party creating the contract
D. time consuming and expensive when compared to litigation
E. impractical because agreements are too difficult to reach in early contract
negotiations
Answer:
Which of the following is part of the pretrial procedure?
A. Delivering opening statements
B. The process of jury selection
C. The voir dire examination
D. The res judicata examination
E. The discovery process
Answer:
Essentially, the judicial power of the federal courts extends to matters involving
__________.
A. correction of judicial errors charged against a state trial court
B. disputes among citizens of the same state
C. erroneous rulings made by arbitrators in disputes involving interstate commerce
D. lack of diversity of citizenship
E. questions of federal law
Answer:
For control purposes, the Clean Air Act amendments divide air pollution into the
categories of ______ sources.
A. suburban and rural
B. stationary and mobile
C. commercial and residential
D. urban and industrial
E. organic and inorganic
Answer:
______ is a catchall phrase for the legal responsibility for injury-causing behavior that
is neither intentional nor negligent.
A. Strict liability
B. Negligence
C. Assumption of risk
D. Comparative fault
E. Cause in fact
Answer:
Which of the following statements is true of export controls?
A. They are widely popular among developed nations.
B. They make successful business deals more difficult.
C. They involve the confiscation of foreign-owned property by a government.
D. They are imposed by the International Court of Justice on all the developed nations.
E. They are designed to restrict the power of eminent domain.
Answer:
Which of the following statements is true of unions?
A. They represent all employees in the bargaining unit, including those who are
nonunion.
B. They represent only those members of a bargaining unit who pay dues.
C. They can by sued only by the employees for a breach of contract and not by the
employers.
D. They cannot represent those who are nonunion in bargaining.
E. They can sue a union member for not bargaining individually when represented by
the union.
Answer:
The party to a case who files a civil action is called the _____.
A. defendant
B. appellee
C. plaintiff
D. appellant
E. respondent
Answer:
What are the different types of easement?
Answer:
What is the purpose of the Wassenaar Arrangement?
Answer:
How could a utilitarian argue for the view that the tobacco industry is a positive part of
society?
Answer:
What is the role of judicial review in voluntary/contract-based arbitration awards?
Answer:
The cable operators in North Bedford agreed to divide the market among themselves
with each operator assigned a specific region in the city. Briefly discuss the legality of
this agreement in the context of the Sherman Act.
Answer:
What is the focus of Equal Pay Act cases?
Answer:
Briefly explain the importance of federal law.
Answer:
What is duty of performance? When is a party to a contract discharged?
Answer:
Explain the control of resources by nonowners and how it affects ethical corporate
behavior.
Answer:
Carpenters United is a registered union with CastIron Construction Corp. CastIron
Construction started using nonunion workers who were unable to fulfill the constant
and unreasonable demands of the union. In retaliation, the union launched a campaign
to prevent the hiring of nonunion workers. It sent out warning letters to building
owners, property managers, and general contractors indicating that it would retaliate
against anyone doing business with CastIron Construction. If they didn’t comply, the
union emphasized that the business would be subject to picketing, noisemaking,
chanting, and other forms of worksite pressure. What are these kind of activities termed
as? Are they legal?
Answer:
What is federalism?
Answer:
What are the three major questions that the Federal Trade Commission asks to check if
there is deception or antitrust violation involved?
Answer:
Explain the term larceny.
Answer:
Describe the effect of the group on ethical corporate behavior.
Answer:
What is the statute of limitations?
Answer:
What is the doctrine of primary jurisdiction?
Answer:
Rosa signs a health club membership contract based on a salesperson’s statements that
the contract can be cancelled at any time. Later, when Rosa applies for a cancellation of
the membership, she is informed that the contract cannot be cancelled. Briefly discuss
whether Rosa can give oral evidence in the court for a written contract in this case.
Answer: