The exclusionary rule allows for evidence obtained from an unreasonable search and
seizure to be introduced at trial.
In an undisclosed agency, the principal is solely liable on the contract with the third
party.
Only the defendant can appeal in a criminal case.
The Norris-LaGuardia Act is a federal statute which stipulates that it is legal for
employees to organize.
A tenant at sufferance is liable for the payment of rent during the period of sufferance.
A power of attorney gives an agent the power to sign legal documents on behalf of the
principal.
Only individuals or businesses, not nations, can have cases decided by the International
Court of Justice (ICJ).
The moral minimum theory emphasizes correcting social injuries caused by a business.
To obtain title under adverse possession, the adverse possessor must physically occupy
the property.
Under an agency shopagreement, an employer may hire anyone whether he or she
belongs to a union or not.
To meet the mirror image rule, the offeree must accept the terms of the offer without
modification.
Managers of LLCs are not personally liable for the debts, obligations, and liabilities of
the LLC they manage.
A seller of a defective product cannot be held strictly liable if it can be proved that he or
she took all possible care in the preparation and sale of the product.
If a joint venture is operated as a partnership, then each joint venturer is considered a
partner of the joint venture.
A justice who agrees with the outcome of a case but not the reason proffered by other
justices can issue a dissenting opinionthat sets forth his or her reasons for deciding the
case.
According to the Sarbanes-Oxley Act of 2002, any person who is employed by a public
accounting firm that audits a client cannot be employed by that client as the chief
executive officer (CEO) or chief financial officer (CFO) for a period of five years
following the audit.
In a criminal lawsuit, the government is represented by a lawyer called the defense
attorney.
Sit-down strikes are illegal.
Duress only occurs when a threat involves physical harm.
In an area franchise, the franchisor authorizes the franchisee to negotiate and sell
franchises on behalf of the franchisor.
Since the income of a partnership must be reported on the individual partners’ personal
income tax returns, this results in double-taxation of partnership profits.
In debt securities, the corporation is the debtor and the holder is the creditor.
The board of directors makes policy decisions concerning the operation of a
corporation.
If the defendant does not answer the complaint, a default judgment is entered against
him or her.
A creditor who relies on collateral to secure payment is known as an unsecured creditor.
Extortion of private persons is commonly referred to as blackmail.
The Sarbanes-Oxley Act prohibits public companies from making personal loans to
their directors or executive officers.
Disparagement is an untrue statement made by one person or business about the
products, services, property, or reputation of another business.
Utilitarianism postulates doing the greatest good for the greatest number of people.
The World Wide Web consists of computers that support a standard set of rules for the
exchange of information called File Transfer Protocol (FTP).
The fact that price fixing helps consumers or protects competitors from ruinous
competition can be used as a valid defense against the charge of price discrimination.
An express agency contract cannot be orally agreed upon.
Which of the following legislation makes it a criminal offense to willfully make any
untrue statement of material fact in a registration statement filed with the SEC?
A) Section 24 of the Securities Act of 1933
B) the Tax Reform Act of 1976
C) the Private Securities Litigation Reform Act of 1995
D) Section 10(b) of the Securities Exchange Act of 1934
In which of the following circumstances is picketing unlawful?
A) when picketing obstructs customers from entering the employer’s place of business
B) when picketing is carried out against the subject employer’s product
C) when picketing is carried out against a neutral employer
D) when the employer institutes a “lockout” against the picketers
Three of the largest petroleum refineries in the country have come to an agreement
about what price they would pay to purchase crude oil from sellers. This is an example
of the ________.
A) sellers’ illegal per se price fixing
B) sellers’ illegal group boycott
C) buyers’ illegal per se price fixing
D) buyers’ illegal market sharing
Which of the following amendments to the U.S. Constitution contains the Due Process,
Equal Protection, and Privileges and Immunities Clauses?
A) the Twelfth Amendment
B) the Thirteenth Amendment
C) the Fourteenth Amendment
D) the Fifteenth Amendment
A ________ is an instrument that gives a creditor a security interest in the debtor’s real
property that is pledged as collateral for a loan.
A) credit report
B) letter of credit
C) note
D) deed of trust
The change in the relationship of partners in a partnership caused by any partner
ceasing to be associated in the carrying on of the business is known as ________.
A) an action for an accounting
B) indemnification
C) winding up
D) dissolution
A(n) ________ is a contract whereby the owner of a software or a digital application
grants limited rights to the owner of a computer or digital device to use the software or
digital application for a limited period and under specified conditions.
A) e-license
B) Terms of Service document
C) domain
D) digital signature
Karen, Kelsey, Rita, and Lizzi own a large commercial building as concurrent owners.
They are tenants with the right to survivorship. Lizzi sells a quarter of her interest in the
building to Stella. What kind of concurrent ownership exists between Karen, Kelsey,
Rita, and Stella?
A) a tenancy in common
B) a tenancy by the entirety
C) a joint tenancy
D) a community property
Which of the following is true of a sole proprietorship?
A) A business operated under sole proprietorship cannot be transferred.
B) Large businesses cannot be operated under sole proprietorship.
C) A business operated under sole proprietorship must be owned by one or more people
of the same family.
D) Creditors can recover claims against the business from the sole proprietor’s personal
assets.
Which of the following is true of a Regulation A offering?
A) It imposes resale restrictions on the securities it offers.
B) It requires issuers to prepare a registration statement for offers exceeding $100,000.
C) It requires more disclosure than a registration statement and is more costly to
prepare.
D) It mandates that an offering circular be provided to investors prior to their purchase
of securities.
A(n) ________ is a debt security with a maturity of five years or less.
A) bond
B) debenture
C) indenture
D) note
The ________ is required to supervise all contested union elections.
A) Congress of Industrial Organizations (CIO)
B) American Federation of Labor (AFL)
C) National Labor Relations Board (NLRB)
D) Election Assistance Commission (EAC)
Kingsland is a country that has been exporting apples to the United States for over a
century, shipping 300 tons to Georgia each month. However, last month, Kingsland
violated a trading norm which was not condoned by Georgia. Which of the following
measures should be taken to regulate apple imports from Kingsland?
A) Georgia should stop trading with Kingsland after serving a notice.
B) Georgia should stop trading with Kingsland without serving a notice.
C) Georgia should appeal to the federal authority which can stop imports from
Kingsland.
D) Georgia should make Kingsland export its apples to North Carolina.
Which of the following is true of the World Wide Web?
A) Only businessesnot individualscan have their own websites.
B) Individuals need not register with a service provider to access the web.
C) A website can have several online addresses.
D) Web pages are stored on servers which are operated by Internet service providers.
Which of the following is a form of limited protected speech?
A) defamatory language
B) speech that incites the violent or revolutionary overthrow of the government
C) dangerous speech
D) offensive speech
An organization or venture must have a ________ motive in order to qualify as a
partnership.
A) large-scale expansion
B) noncommercial
C) profit
D) target market
Restraints of trade that are unlawful under Section 1 of the Sherman Act only if their
anticompetitive effects outweigh their procompetitive effects are known as ________.
A) nonprice vertical restraints
B) group boycotts
C) division of markets
D) the setting of minimum resale prices
The National Labor Relations Act (NLRA) establishes the right of employers to
terminate the employment of members of unions whose continued picketing hinders the
progress of the business.
________ is defined as the intentional misrepresentation or omission of a material fact
that is relied on by the client and causes the client damage.
A) An unqualified opinion
B) Actual fraud
C) A disclaimer of opinion
D) Constructive fraud
Which of the following is a major form of conducting business?
A) an institution
B) a charity
C) a corporation
D) a trust
The wrongful or fraudulent taking of another’s personal intangible properties like trade
secrets, computer programs, and other business property is considered a(n) ________.
A) robbery
B) larceny
C) aggravated robbery
D) aggravated burglary
Which of the following is true of tort liability for principals and agents?
A) A principal is responsible for the tortious conduct of an agent regardless of whether
the conduct occurs within the scope of the agency.
B) A principal is responsible for the tortious conduct of an agent regardless of whether
the conduct occurs within the course of the agency.
C) An agent is liable for the principal’s tortious conduct if he or she participates in it.
D) An agent and a principal cannot be held responsible for the same tort.
John Crichton applied for a trademark logo at the U.S. Patent and Trademark Office for
his new startup company, stating that he would use the logo in commerce within the
next six months. After six months, he had not yet used the logo. Which of the following
options does trademark law allow John Crichton so that he can retain his logo until he
uses it in commerce?
A) Pay a fine so that the trademark gets registered immediately.
B) Change the logo slightly and reapply for the modified logo.
C) Cancel the current application and re-apply for the same logo.
D) Apply for a six-month extension to use the logo in commerce.
The threat of immediate harm or offensive contact is termed ________.
A) battery
B) assault
C) disparagement
D) libel
At what stage of the criminal procedure is the accused asked to enter a plea?
A) when the accused is taken to an arraignment
B) while an indictment or information statement is being issued
C) when the accused is being booked
D) when the accused is being arrested
Who is the plaintiff in a criminal lawsuit?
A) the government
B) the respondent
C) a private party
D) the victim
The party who grants a license is known as the ________.
A) licensee
B) licensor
C) grantee
D) grantor
Which of the following is an instance of disparate-treatment discrimination?
A) An employer does not promote Kelly, as she is only 24 years old and the employer
believes she is too young to successfully perform the job.
B) Ghalib, who is fluent in English, is not hired as a writer due to his Iraqi heritage.
C) An employer refuses to install a wooden ramp to accommodate Lin, who is restricted
to a wheelchair.
D) A factory hires 22-year-old Jerry over 46-year-old Barry, citing age as the reason.
Which of the following is true in the creation of a general partnership?
A) The business name must include the names of all partners.
B) The business name cannot be a fictitious name.
C) The name selected by the partnership cannot indicate that it is a corporation.
D) The business cannot operate under a trade name.
A ________ patent protects the functionality of an invention.
A) utility
B) method
C) design
D) process
The ________ is a federal statute that primarily regulates the issuance of securities by
companies and other businesses.
Explain the four basic types of franchises.
A nonmanager member of a(n) ________ LLC is treated equally to a shareholder in a
corporation.
The process of bringing, maintaining, and defending a lawsuit is called ________.
________ are powers delegated to the federal government by the states.
Employees who choose not to strike or return to work after joining the strikers for a
period of time are known as ________ workers.
What is an EB-1 visa? Who qualifies for it?
General partners have ________ liability for the debts and obligations of the
partnership.
Explain the role of penal codes and regulatory statutes in criminal law.
Insider trading in the purchase and sale of securities in the aftermarkets is prohibited by
the ________.
The ________ Act requires states to identify major stationary sources of air pollution
and develop plans to reduce air pollution from these sources.
Section 406 of the ________ Act requires a public company to disclose whether it has
adopted a code of ethics for senior financial officers.
The ________ Act, enacted in 1950, widened the scope of Section 7 of the Clayton Act
to include asset acquisitions.
Explain the process that exempts members of an LLC from double taxation.
Mergers between firms in unrelated businesses are known as ________ mergers.
The ________ Act mandates that the federal government consider the “adverse impact”
of proposed legislation, rulemaking, or other federal government action on the
environment before the action is implemented.