Which of the following is NOT a part of the safe harbor provision for forward-looking
statements under the 1934 Act?
a. A statement containing a projection of revenues, income, or other financial items.
b. A statement of the plans and objectives of management for future operations.
c. A statement of future economic performance.
d. A statement in a financial statement prepared in accordance with generally accepted
accounting principles.
Answer:
A(n) __________ mark is a coined term having no prior meaning until used as a
trademark in connection with a particular product.
a. arbitrary
b. suggestive
c. descriptive
d. fanciful
Answer:
An invention is “novel” if it is explained in book format.
a. True
b. False
Answer:
According to economist Michael C. Jensen, which of the following is a stakeholder of a
corporation?
a. Customers only
b. Employees and customers, but not managers
c. Managers and employees, but not customers
d. Customers, employees, and managers
Answer:
A claim for sexual harassment may be asserted by either male or female employees.
a. True
b. False
Answer:
Which of the following international organizations adopted a convention criminalizing
bribes to government officials and recommending a prohibition on the tax deductibility
of bribes?
a. The Foreign Corrupt Practices Consortium
b. The Organization of Economic Cooperation and Development
c. The International Business Legal and Ethical Revision Association
d. Transparency International
Answer:
Company X was responsible for 40% of the environmental pollutants on a hazardous
waste site whereas Company Z was responsible for the remaining 60%. Under
CERCLA which of the following is true regarding the imposition of liability on the
parties?
a. Company X and Company Z are subject to joint and several liability meaning that
either can be held liable for the total cleanup costs, and no contribution between the
parties is available.
b. Company X and Company Z are subject to joint and several liability meaning that
either can be held liable for the total cleanup costs, but contribution between the parties
may be available.
c. Regardless of whether both companies are still in business, Company X is
responsible for only 40% of the cleanup costs, and Company Z is liable for only 60% of
the costs.
d. Liability depends on who was the initial polluter because that party has primary
liability for the total costs whereas the other company has secondary liability in the
event that the first polluter is no longer in business.
Answer:
Explain what the Solid Waste Disposal Act as amended by the Resource Conservation
and Recovery Act (RCRA) authorizes the EPA to do.
Answer:
Unless state law is to the contrary, an agent may lawfully conceal __________ of the
principal.
a. the existence
b. the identity
c. the existence and identity
d. nothing regarding
Answer:
In theAmerican Electric Power Co. v. Connecticut case discussed in the text,eight
states, New York City, and land trusts sued electric power corporations for contributing
to global warming in violation of federal common law and state nuisance law. How did
the U.S. Supreme Court rule?
a. The court ruled that no cause of action existed under either federal or state law
because the case involved a nonjusticiable political question.
b. The court ruled that the plaintiffs could proceed to a jury trial under both federal
common law and state nuisance law.
c. The court ruled that a cause of action under federal common law was available but
that the plaintiffs could not proceed under state nuisance law.
d. The court ruled that a cause of action under federal common law was foreclosed but
remanded the case for consideration of whether state nuisance law would provide a
cause of action.
Answer:
The federal statute authorizing individuals to obtain copies of government records on
any subject that is of interest is known as:
a. the Federal Register.
b. the Code of Federal Regulations.
c. the Freedom of Information Act.
d. discovery.
Answer:
The most basic legal characteristic of the employer-employee relationship is that the
employer has the right to:
a. deduct taxes.
b. control the conduct of the employee.
c. provide health care.
d. deduct taxes, control the conduct of the employee, and provide health care.
Answer:
__________ tariffs require the importer to pay a percentage of the value of the imported
merchandise.
a. Ad valorem
b. Ad hoc
c. Harmonized
d. Customs valuation
Answer:
Congress has introduced the Fair Minimum Wage Act of 2013, which would increase
the minimum wage to __________ by 2016.
a. $10.10 per hour
b. $8.88 per hour
c. $6.75 per hour
d. $15.00 per hour
Answer:
A variance allows a landowner to construct something ordinarily not permitted under
existing zoning regulations.
a. True
b. False
Answer:
The tort of intentional infliction of emotional distress protects a person’s right to peace
of mind.
a. True
b. False
Answer:
Denial of promotion in retaliation for a person’s refusal to respond to his or her
supervisor’s sexual advances is referred to as __________ harassment.
a. sina qua non
b. quid pro quo
c. actual
d. constructive
Answer:
A tort is a type of civil or criminal wrong.
a. True
b. False
Answer:
In the Garcetti v. Ceballos case discussed in the text, Ceballos a deputy district attorney
with the Garcetti’s Los Angeles District Attorney’s office, wrote a memo to his
supervisors recommending they dismiss a case based on factual inaccuracies in the
affidavit that secured a search warrant. Thereafter, Ceballos claimed he suffered
retaliation and denial of promotion, and filed suit against the DA’s office claiming
violations of his First, Fourth and Fifth Amendment rights. The U.S. Supreme Court
held:
a. against Ceballos, finding that his First Amendment right was not violated because he
breached the attorney client confidentiality agreement.
b. against Garcetti,finding that the DA’s office had violated the federal whistleblower
statute.
c. against Ceballos, finding that his First Amendment right was not violated because
Ceballos spoke as an employee of the DA’s office, not as a citizen.
d. against Garcetti,finding that Ceballos’ First Amendment rights were violated because
Ceballos spoke as an employee of the DA’s office, protecting the public.
Answer:
Fact Pattern 12-2
Paige is 64 years old and would like to retire from her job at a large accounting firm.
She, however, is concerned about health insurance. She would not be eligible for
Medicare benefits until age 65, and due to some serious health conditions, she would
not be able to obtain insurance in the private market. She has good health insurance at
the accounting firm and is considering putting off her retirement so that she can keep it.
Refer to Fact Pattern 12-2. Assuming Paige exercises her rights under federal law to
maintain her insurance with the accounting firm upon her resignation, which of the
following is true regarding the premiums?
a. The employer would be required to pay all of the premium.
b. The employer would be required to pay for one-half of the premium, and Paige
would be required to pay for one-half.
c. Paige and the employer would pay the premium based upon whatever arrangement
was in effect during her period of employment.
d. Paige would have to pay all the premium.
Answer:
A(n) __________ gives the mortgagor the right, after a foreclosure, to reacquire
property within a statutory limited period.
a. interim statute
b. right of redemption
c. mortgagee relief statute
d. right of relief
Answer:
Investors are prohibited under the Securities Act of 1933 from making highly
speculative investments.
a. True
b. False
Answer:
Which of the following laws applies to pesticide products?
a. Toxic Substances Control Act
b. Federal Insecticide, Fungicide and Rodenticide Act
c. Federal Rat Act
d. Uniform Pesticide Act
Answer:
Under a race recording statute, the first person to receive a valid deed will be deemed
the owner of the property.
a. True
b. False
Answer:
A one-point charge will generate a fee of _____ on a loan of $10,000.
a. $1,000
b. $100
c. $10
d. $1
Answer:
Which of the following is true regarding review of agency procedures?
a. Agency procedures are not required to conform to the requirements of the Due
Process Clause.
b. Federal courts set agency procedures.
c. A court may require that an agency comply with its own procedural rules.
d. Both that federal courts set agency procedures and that a court may require that an
agency comply with its own procedural rules.
Answer:
Which of the following is true regarding patent misuse?
a. When a patent misuse occurs, the offender permanently loses the right to patent
protection on the patent at issue.
b. Requiring a licensee to purchase nonpatentable products as a condition to obtaining a
license for patented products is patent misuse.
c. The patent holder is barred from recovering for any infringement of its patent during
the period of misuse.
d. There is no such concept as patent misuse in the U.S.
Answer:
Any corporate employee can communicate with corporate counsel and be protected by
the attorney-client privilege.
a. True
b. False
Answer:
In community property states, property acquired by inheritance during the marriage is:
a. community property.
b. separate property.
c. a tenancy by the entirety.
d. a tenancy in common.
Answer:
Preemption of state law when it directly conflicts with federal law is known as
__________ preemption, whereas preemption of state law when Congress has
manifested intent to regulate an entire area without state participation is known as
__________ preemption.
a. absolute; implied
b. express; absolute
c. express; field
d. absolute; field
Answer:
Market power is defined as the power to control prices or exclude competition in a
relevant market.
a. True
b. False
Answer: