Kantian ethics distinguishes between the morality one uses to judge others and the
morality one uses on oneself.
If no other form of business organization is chosen while obtaining a license, the
business is by default a sole proprietorship.
Illusory promises require both parties to perform their contractual obligations.
Overtime pay must always be set at twice the regular pay of an employee.
If a defendant is found not guilty in a criminal case, the government can retry the case
with a new jury.
The European Union Commission has delegated substantial powers to individual
member nations to enact legislation and take enforcement actions to ensure compliance
with the European Union (EU) treaty.
The Statute of Frauds requires real estate sales contracts to be in writing.
A preexisting duty is sufficient consideration to support a new contract.
Unless otherwise stated, the franchisor is liable for the torts of its franchisee.
Articles of organization are documents that evidence a member’s ownership interest in
an LLC.
A tenancy for years terminates automatically, without notice, upon the expiration of the
stated term.
A class action lawsuit is certified only if there is commonality among the plaintiffs’
claims.
If the federal government has chosen not to regulate an area of commerce despite
possessing the Commerce Clause powers to regulate it, the area is subject to the
Dormant Commerce Clause.
In auction without reserve, the seller is the offeree.
Plant life and vegetation growing on the surface of land are considered personal
property.
If a person buys a computer, the sales contract for it would be subject to Article 2 of the
UCC.
The Fifth Amendment to the U.S. Constitution provides that no person shall be
compelled in any criminal case to be a witness against himself.
It is necessary to prove actual injury in order for a plaintiff to recover in a price
discrimination lawsuit.
Authorized shares that have been sold by a corporation are called issued shares.
Trademarks that have become generic names are protected under federal trademark law.
The doctrine of stare decisis provides that each court decision is independent and
should stand on its own.
The Revised Uniform Partnership Act is a federal statute that is recognized in all states.
Extortion of public officials is called extortion under color of official right.
A sole proprietorship can operate under the name of the sole proprietor or a trade name.
The Fifth Amendment to the U.S. Constitution protects people from unreasonable
search and seizure by the government.
Shareholders have unlimited liability for the debts and obligations of a corporation.
Picketing that prevents customers from entering the employer’s place of business is
illegal.
The EB-1 visa allows U.S. employers to employ in the United States foreign nationals
who possess exceptional qualifications for certain types of employment.
A joint tenant does not have the right to sell or transfer his or her interest in the
property.
Unskilled and semiskilled workers did not qualify as members of the CIO.
Res ipsa loquitur is a tort in which the violation of a statute or an ordinance constitutes
the breach of the duty of care.
Which of the following is true of profits and losses in a general partnership?
A) By law, it is presumed that the proportion of profits shared is equal to the general
partner’s initial investment.
B) Unless otherwise agreed, losses are shared equally by all general partners.
C) The general partner who proposed the idea of the business receives the greatest share
of profits.
D) The proportion of investment governs only the proportion of losses shared and not
profits obtained.
________ include environmental laws, securities laws, and antitrust laws that provide
for criminal violations and penalties.
A) Constitutions
B) Regulatory statutes
C) Resolutions
D) Charters
What is the necessary condition for an accused person to be found guilty by a jury?
A) The jury’s guilty verdict has to be approved by the presiding judge.
B) At least half the jurors have to find the defendant guilty of the crime.
C) More than 50 percent of the jurors have to find the defendant guilty of the crime.
D) All the jurors have to unanimously agree that the defendant is guilty of the crime.
The ________ is a staff of persons that administers the day-to-day operations of the
United Nations (UN).
A) Council of Ministers
B) Security Council
C) General Assembly
D) Secretariat
The U.S. Coast Guard administers the Oil Pollution Act, which requires the oil industry
to ________.
A) obtain a permit for dumping wastes and other foreign materials into ocean waters
B) implement measures to avoid the dumping of wastes into wells used for drinking
water
C) adopt procedures and contingency plans to readily respond to and clean up oil spills
D) establish marine sanctuaries in ocean waters as far seaward as the edge of the
continental shelf
Orlando opened a hot dog stand in Brooklyn, doing business as Orlando’s Red Hots.
Unfortunately, the venture has not generated a profit. Orlando borrowed $5,000 from
the bank to open his business, and the short-term loan is now due. Orlando’s friend Bob
has suggested partnering with him at the beginning of next year. From which of the
following sources can the bank currently recover its $5,000?
A) Orlando’s secondary lender
B) Orlando’s savings account
C) Orlando’s family
D) Bob, Orlando’s prospective business partner
Instead of suing the partnerships or other partners at law, general partners are given the
right to bring a(n) ________ against other partners.
A) claim for damages
B) tort action
C) call for action
D) action for an accounting
Which of the following is true of the Taft-Hartley Act?
A) It establishes the right of employees to bargain collectively with employers.
B) It gives employers the right to engage in free speech efforts against unions prior to a
union election.
C) It provides for the equal representation of skilled and unskilled workers.
D) It gives the president of the United States the right to seek an injunction against a
strike.
How do patent laws help an inventor?
A) by helping the inventor guard his patented invention from the public
B) by providing protection for patented inventions from infringement
C) by helping the inventor meet potential buyers for his patented inventions
D) by letting the inventor keep his patents indefinitely
Accountants can be found liable for violating Section 18(a) of the Securities Exchange
Act of 1934 since ________.
A) they often file reports and other documents with the SEC on behalf of clients
B) CPAs are directly employed by the SEC
C) all companies require an accountant’s approval before buying securities from the
SEC
D) securities can only be bought through a CPA
Which of the following acts establishes the minimum wage and overtime pay
requirements for workers in the United States?
A) FLSA
B) OSHA
C) FMLA
D) COBRA
Which of the following is a recognized exception to immunity under the Foreign
Sovereign Immunities Act (FSIA)?
A) the unfair and deceptive trade practice exception
B) the managed trade exception
C) the diversity of citizenship exception
D) the commercial activity exception
An award of ________ orders the breaching party to perform the acts promised in a
contract.
A) reformation
B) injunction
C) restitution
D) specific performance
A contract that has been fully performed by one party but not by the other party is a(n)
________ contract.
A) void
B) voidable
C) executory
D) executed
A ________ is an arrangement in which two or more business entities combine their
resources to pursue a single project or transaction.
A) joint venture
B) general partnership
C) sole proprietorship
D) franchise
The ________ is a federal statute that permits trademark owners and famous persons to
recover domain names that use their names where the domain name has been registered
by another person or business in bad faith.
A) UCITA
B) ACPA
C) ICANN
D) ECPA
In which of the following cases is a motivation test used to establish the employee’s
motive?
A) An employee commits a tort to promote the principal’s business outside work
premises.
B) An employee commits an intentional tort against another employee on work
premises.
C) An employee commits an unintentional tort that helps promote the principal’s
business.
D) An employee assaults another employee due to personal reasons.
Sam expressed interest in buying a painting from Jasper, whose asking price was
$15,000. Sam was only willing to offer $13,000. Jasper told him that it was a very old
painting worth a fortune and that others would gladly pay $20,000 for it. Sam decided
to buy the painting for $15,000 on the condition that if he found that the painting was
worth less than $15,000, Jasper would have to take the painting back and refund Sam.
Which of the following warranties did this sales contract have?
A) an implied warranty of merchantability
B) an express warranty
C) a statement of opinion
D) an implied warranty of fitness
A ________ union election can be held without NLRB supervision.
A) dissent
B) consent
C) decertification
D) conditional
The Nutrition Labeling and Education Act (NLEA) applies to packaged foods and other
foods regulated by the Food and Drug Administration.
________ is an administrative agency regulation that sets forth detailed rules for
compliance with the Truth-in-Lending Act (TILA).
________ laws are a series of laws enacted to specifically limit anticompetitive
behavior and monopolistic practices in almost all industries, businesses, and professions
operating in the United States.
A) Contract
B) Antitrust
C) Laissez-faire
D) Canon
________ is defined as the substantial likelihood that a person either committed or is
about to commit a crime.
A) Preponderance of the evidence
B) Reasonable doubt
C) Probable cause
D) Reasonable suspicion
The ________ is an act that requires certain firms to notify the Federal Trade
Commission and the Justice Department in advance of a proposed merger and comply
with a thirty-day waiting period before the merger is approved.
A) Celler-Kefauver Act
B) Hart-Scott-Rodino Antitrust Improvement Act
C) Robinson-Patman Act
D) Sherman Act
Which of the following is established by the Supremacy Clause of the U.S.
Constitution?
A) The President is the supreme and sovereign head of the United States.
B) The legislative branch of the federal government is the supreme law-making
authority in the country.
C) The judiciary is the supreme law-enforcing authority and cannot be influenced by
anyone, however powerful, in any manner.
D) The U.S. Constitution and federal treaties, laws, and regulations are the supreme law
of the land.
Reserved powers remain with the ________.
A) federal government
B) judiciary
C) state governments
D) U.S. Congress
The crime of ________ involves the obtaining of property from another, with his or her
consent, induced by wrongful use of actual or threatened force, violence, or fear.
A) embezzlement
B) bribery
C) money laundering
D) extortion
A rule that says that an accountant is liable for negligence to third parties who are
foreseeable users of the client’s financial statements is known as ________.
A) the foreseeability standard
B) the Ultramares doctrine
C) the due diligence defense
D) Section 552 of the Restatement (Second) of Torts
The ________ branch of the federal government has the power to enact laws.
A) legislative
B) judiciary
C) consulate
D) executive
Which of the following is true of Section 11 of the Securities Act of 1933?
A) It permits injured private parties to bring criminal actions against issuers who file
fraudulent registration statements.
B) It imposes liability on those who defraud investors intentionally or are negligent in
not discovering the fraud.
C) It allows an issuer to assert a due diligence defense against the imposition of Section
11 liability.
D) It does not apply to a case involving the negligent omission of a material fact in a
registration statement.
Jonathan Smith, a neurosurgeon in Oregon, wants to start a website that makes it
possible for neurosurgeons across the world to work collaboratively on medical cases.
Which of the following domain name extensions is most appropriate for Smith’s
website?
A) .com
B) .org
C) .edu
D) .pro
The geographical area served by each U.S. court of appeals is referred to as a
________.
A) district
B) county
C) range
D) circuit
Workers’ compensation is a(n) ________ remedy, which means that workers cannot
receive workers’ compensation and also sue their employers in court for damages.
The ________ doctrine is based on the principle that a country has absolute authority
over what transpires within its own territory. The doctrine states that judges of one
country cannot question the validity of an act committed by another country within that
other country’s borders.
A(n) ________ issued by the Securities and Exchange Commission (SEC) indicates that
a defendant agrees not to violate securities laws in the future but does not admit to
having violated securities laws in the past.
In an area franchise, the franchisor authorizes the franchisee to negotiate and sell
franchises on behalf of the franchisor. The area franchisee is called a(n) ________.
The ________ states that agents’ contracts to sell property covered by the Statute of
Frauds must be in writing to be enforceable.
Distinguish between minor breach and material breach.
The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits
certain exclusive dealing arrangements.
How is the federal government divided? Why are checks and balances necessary?
Explain with instances.
Limited partnerships are also known as ________.
The ________ Act provides for the creation of a government fund to finance the
cleanup of hazardous waste sites.
Title VII prohibits any form of gender discrimination where sexual favors are requested
in order to obtain a job or be promoted. This is called ________ discrimination.
Article ________ of the UCC governs leases of goods.
________ is an action to undo a contract.
The United Nations (UN) ________, composed of 15 member nations, is primarily
responsible for maintaining international peace and security and has authority to use
armed force.
Laws and regulations that have been adopted by Catholic and other Christian
ecclesiastical authorities that relate to internal laws that govern the church and its
members are known as ________ law.
The Clean Water Act forbids the filling or dredging of navigable waters and qualified
wetlands unless a permit has been obtained from the ________.
The ________ is an equitable doctrine that allows the court to order an oral contract for
the sale of land or transfer of another interest in real property to be specifically
performed if it has been partially performed and performance is necessary to avoid
injustice.
A franchisee acquires a(n) ________ from a franchisor that allows the franchisee to use
the franchisor’s trademarks, service marks, trade names, and other intellectual property
in the distribution of goods, services, software, and digital information.
Describe the need for forum-selection and choice-of-law clauses.