The mandate given to the Equal Employment Opportunity Commission is that the
commission is required to pursue any discrimination-based claims made by aggrieved
employees.
Saudi Arabia uses Islamic law for personal conduct and civil law for business
transactions. Because of this, it has a religious-based legal system.
Ethical problems faced by managers almost always come down to a clear choice, with
one option clearly the most ethical choice.
Kathy and Tom have entered into a contract in which Mike has been named and
included as an intended beneficiary by Kathy. Should Tom or Kathy breach the contract,
Mike may sue both Tom and Kathy for breach of contract.
It is not illegal for a grocery store to require a customer to buy milk in order to buy
cookies.
Jonathan is a junior in college and has started dating a secretary who works in the
college president’s office. She is madly in love with him, and when he asks for the
passwords to access the school’s main computers, she gladly gives them to him. He uses
the passwords to change his grades. Jonathan has violated the Patriot Act.
The government must pay when it exercises its right of eminent domain.
Assumption of risk by the investor is a defense available for allegations of 33 Act
violations.
A trademark application to the U.S. Patent and Trademark Office that is rejected may
still be entitled to trademark protection but not entitled to statutory benefits provided by
law.
One of the major functions of criminal law in general is to compensate parties for
damages caused by another’s conduct.
If a person cosigns a loan as a guarantor, that person becomes primarily liable for the
debt.
Generally, for an acceptance to create a noncommercial contract, the acceptance must
be without qualifications or conditions.
A corporation exists as an independent person separate from its principals.
UCC gap fillers will not be used and are not applicable to contracts when the contract
clearly specifies a contract term or condition.
Laws relating to contracts for the sale of goods are primarily found in the common law.
Ben has applied for a job at a restaurant. As a condition of employment, he may be
required to take a polygraph test.
Both managing members and controlling members owe a fiduciary duty to other
members.
In American Needle Inc. v. National Football League, the 32 football teams were
treated as a single entity because they belong to the same sports league.
Price-fixing is a clear example of a per se violation.
Enron Corporation was a private corporation dealing in a governmentally regulated
market.
Prior to the passing of the Sarbanes-Oxley Act, the auditing in the accounting
profession was self-regulating.
The terms agreement and contract have the same meaning.
Properties owned by businesses are eligible for mortgage refinancing under the
Mortgage Forgiveness Debt Relief Act.
Jeff goes to a car dealership and the salesperson tells him that the car he’s looking at is a
great car and an excellent value. The statements made by the salesperson, if untrue, will
not be adequate to create either an innocent misrepresentation or a fraudulent
misrepresentation.
Issuing securities to the public markets for the first time is called an initial public
offering.
A patent equates to a governmentally sanctioned monopoly right.
An insurance company cannot qualify for Subchapter S corporate status.
The Clayton Act was enacted to limit the provisions of the Sherman Act.
In a shipping contract, the seller is obligated to deliver the good into the “hands” of the
buyer.
Under a bilateral contract, there is no contract until the offeree performs the requested
act.
Courts are highly critical of agency decisions involving how and when an agency
enforces a regulation.
Jan is on trial for arson. For Jan to be found guilty, her guilt must be proved:
A. beyond a reasonable doubt.
B. beyond a preponderance of the evidence.
C. by a preponderance of the evidence.
D. by a reasonable preponderance of the evidence.
Bonds Inc., is incorporated in the state of Florida. In Florida, Bonds would be
characterized as:
A. a domestic corporation.
B. a foreign corporation.
C. an alien corporation.
D. a native corporation.
Bill is a general partner in a four-member limited partnership with two general and two
limited partners. The partnership is silent with regard to the duration of the partnership,
and Bill wishes to retire.
A. Bill may withdraw at any time, and the partnership continues.
B. Bill must give six months’ notice before being permitted to withdraw.
C. The other general partner and the limited partner with the largest liability must agree
to his withdrawal.
D. The court must grant permission for Bill to withdraw since the agreement was silent
and the other partners and third-party customers of the partnership must be protected.
Commercially reasonable means:
A. getting the highest price possible for goods without violating the law.
B. charging a fair price for goods and not taking advantage of others in the industry.
C. observing industry standards and practices that may be unique to the particular
industry.
D. observing industry standards and practices that are generally accepted throughout
various industries as proper business practices.
Once stare decisis and case precedent is established:
A. it may be disregarded and overturned by a court if it deems such action appropriate.
B. it may not be disregarded by a court but may be overturned by state statute.
C. it may not be disregarded by a court or be overturned by state statute but may only
be changed by amendment to the state’s constitution.
D. it may not be disregarded or overturned once established and must be followed
without exception.
The Equal Pay Act is an amendment to the:
A. Civil Rights Act of 1964.
B. Fair Labor Standards Act.
C. National Labor Relations Act.
D. Social Security Act.
When is a categorical exclusion for an action available under the NEPA?
A. when the environmental impact is unknown
B. when the environmental impact is significant
C. when the environmental impact is little
D. never (NEPA procedures are required in all instances.)
Which of the following does not occur in appellate court trials?
A. presentation of testimony and new evidence
B. oral arguments by each side’s attorneys
C. consideration of briefs prepared by each side’s attorneys that outline the law and
applicable precedent pertinent to the case
D. review of lower court transcripts and rulings
Which of the following does not require two or more principals?
A. limited partnerships
B. limited liability partnerships
C. sole proprietorships
D. limited liability companies
Aimee goes online and orders a suit for work that consists of a jacket and skirt. This is
an example of:
A. a divisible contract.
B. an entire contract.
C. a quasi-contract.
D. a formal contract.
The Computer Software Copyright Act defined computer software programs as:
A. literary processes.
B. literary systems.
C. literary operations.
D. literary works.
Assume that you are a freshman and live in your school’s dormitory. The agreement
you’ve signed with the school states that you may move in on September 1 and must
vacate the room by May 31 of the following year. Should you wish to live in the
dormitory during your sophomore year, you must sign a completely new contract with
the school. Your agreement with the school best approximates a:
A. fee simple defeasible.
B. periodic tenancy.
C. tenancy for years.
D. easement by grant.
In 2002, Australia’s highest court ruled on a defamation case in which an Australian
citizen claimed to have been defamed by a Dow Jones article published on the
defendant’s website. The court found that the citizen was defamed:
A. but jurisdiction over Dow Jones couldn’t be established because the defendant had
no physical presence in Australia.
B. but jurisdiction over Dow Jones couldn’t be established because the defendant’s
servers were in America and the article had been uploaded in the United States, so it
was considered published in the United States and not subject to Australian law.
C. and jurisdiction over Dow Jones was established because under American law, the
defendant’s website was interactive and sufficiently established minimum contacts,
creating jurisdiction.
D. and publication of the article occurred when the article appeared and could be read
on a user’s computer screen, establishing jurisdiction in Australia.
The Sarbanes-Oxley Act imposed stricter regulations on how corporations do business
through regulations in each of the following areas except:
A. tax compliance.
B. financial reporting.
C. corporate governance.
D. auditing.
Respondeat superior makes a principal liable for:
A. acts of the agent based on implied authority.
B. unauthorized acts of the third party.
C. frolics and detours of the agent.
D. negligent acts of independent contractors.
With regard to the court, adequacy of consideration means:
A. the consideration exchanged must be exactly equal in value.
B. the consideration exchanged must be reasonably close in value.
C. the court will adjust the consideration if the value exchanged is unfair.
D. the court doesn’t care about value as long as the mutual assent is valid.
Kathy is stopped at a red light when her car is run into from behind by Mike. This
occurred at noon on a clear and sunny day on a dry road. Kathy claims a serious back
injury and is suing for various forms of damages. There were three witnesses to the
accident. With regard to discovery methods, which form of discovery would be most
appropriate in each of the following situations? Fully explain.
a. Kathy would like to avoid calling an expert witness to testify as to road and weather
conditions at the time of the accident.
b. Kathy would like to determine whether Mike was talking on his cell phone or texting
at the time of the accident.
c. Mike would like to see the doctor’s reports discussing Kathy’s back injury.
d. Both Mike and Kathy would like to get statements from the witnesses.
Actions by which of the following would fall under the National Environmental Policy
Act (NEPA)?
A. Joe Jackson, a private citizen
B. Colorful Paint Company, a business
C. New York’s Department of Transportation
D. Food and Drug Administration
Which of the following is not a challenge a common challenge to business ethics and
values management?
A. Ethics cannot be taught.
B. Complying with the law is all that a corporation needs to do to remain ethical.
C. Ethics cannot be managed.
D. Success is measured in profits and losses, not in ethical conduct.
The Equal Employment Opportunity Commission was created by:
A. the Civil Rights Act of 1964.
B. the Americans with Disabilities Act.
C. the Lilly Ledbetter Fair Pay Act.
D. Executive Order 11246 creating affirmative action.
The Communications Decency Act of 1996:
A. redefined obscenity standards for the motion picture industry.
B. redefined obscenity standards for the radio and television industry.
C. made Internet service providers liable, as publishers, for content placed on their
websites even by independent and anonymous contributors.
D. provided Internet service providers with immunity from defamation liability, as
publishers, for content placed on their websites even by independent and anonymous
contributors.
LLPs were created to:
A. limit the taxation burdens existing in LLCs.
B. ease the costs and filing requirements present with LLCs.
C. provide limited protection for general partners, increasing the protection offered by
LLCs.
D. increase the duration of the business entity permitted under LLC statutes.
The civil counterpart to theft is:
A. conversion.
B. trespass to chattels.
C. disparagement.
D. battery.
When Enron’s top executives were subpoenaed to testify before Congress, all of them
exercised their constitutional right against self-incrimination except:
A. Kenneth Lay, founder and chief executive officer.
B. Jeffrey Skilling, chief operating officer.
C. Andrew Fastow, chief financial officer.
D. Rick Clausey, chief accounting officer.
Nora loaned money to Susan and received a signed security agreement from Susan. To
make sure she has priority as a creditor, Nora could:
A. give the security agreement to her attorney.
B. do nothingthe date of signing gives Nora priority.
C. file the security agreement in a security deposit box.
D. take possession of the collateral.
Home Gardening Corp., a hardware and gardening chain, has ordered 1,000 bags of red
cedar mulch from Mulch Masters Inc., Delivery is to be made at the Home Gardening
warehouse in Sioux City, Iowa. When the goods arrive in Sioux City, Home Gardening
discovers that Mulch Masters has delivered 1,000 bags of black licorice mulch. What
option or options does Home Gardening have?
How are the International Court of Justice’s rulings enforced?
A. in no way (There are no means to enforce the judgments.)
B. through the U.N. Security Council
C. through monetary sanctions
D. through unilateral agreement by the parties before their case is heard
When an attorney requests a change of venue, the attorney is asking:
A. for a different judge because of the assigned judge’s potential bias.
B. to move the trial from a state trial court to a federal court in the same state.
C. to move the trial from one location to another due to the potential unfairness of a
trial in the first location.
D. to change the charges that the defendant was originally arrested for and is now on
trial for.
The Truth in Lending Act applies to credit extensions made to:
A. consumers.
B. commercial banks.
C. merchants.
D. businesses.
The Electronic Communications Privacy Act prohibits employers from monitoring each
of the following, unless consent to monitor is granted, except:
A. employee incoming personal phone calls.
B. employee outgoing personal phone calls.
C. employee e-mail.
D. employee voice mail.
Jon works for a major bank. The revised employee handbook that he received 5 years
ago says that all employees with 25 years of service will receive a retirement party. He
is about to hit 25 years of service and has announced his retirement. His manager tells
him that the company, on the basis of his years of service, will throw him a party and
present him with a gold watch. Jon retires on his 25th anniversary, and his manager
announces that the company will not throw the party or give him the watch.
A. Because of past consideration, no party or watch is owed.
B. The company is required to throw the party, but no watch is owed.
C. The company is required to present him with the watch, but no party is owed.
D. The company is required to present him with the watch and throw him the party.
Assumption of risk is a defense to:
A. conversion.
B. negligence.
C. defamation.
D. battery.
If an employee is killed on the job, OSHA requires that the employer notify the
administration as soon as possible but no later than ________ after the accident.
A. 8 business hours
B. 12 business hours
C. 24 hours regardless of business hours
D. 48 hours regardless of business hours
Employee protection from the use of regular or random drug or alcohol tests in the
workplace is governed by:
A. common law.
B. state law.
C. federal law.
D. constitutional law.
What is the arbitrary and capricious standard, and how is it used by the courts?
Payments made to common stockholders based on the profitability of the company are
called _______.
Agents who act on behalf of a principal without receiving any compensation are called
________ agents.
The discussions by the jury in a closed room while they attempt to reach a verdict are
called _______.
Mike’s Models Inc. is a modeling agency registered in Delaware, specializing in Central
and South American women for print, runway, and other modeling work. The
company’s manager of the Venezuelan territory, Jose, a Venezuelan citizen, has
discovered Sonja and believes that she has the potential to be a superstar. Because
permission for her to travel to the United States could take weeks and Mike’s want her
for a car show in 10 days, Jose offers the head of Venezuelan immigration services the
use of the company’s New York City penthouse and personal use of the company’s
limousine the next time the official visits the United States for putting Sonja’s papers
through quickly. The official turns him down. Has the Foreign Corrupt Practices Act
been violated? Fully explain why or why not.
Boston Bikes makes mountain bikes and sells them through Sid’s Sports and Mountain
All Sports as exclusive distributors. Boston Bikes’ interest is in making sure that Sid’s
Sports and Mountain All Sports do not compete with each other in the same geographic
market to ensure that their pricing is in line with their competitors. May Boston Bikes
put limits on its distributors’ markets?
You are a defense attorney representing a man who has ignited a bomb in a public
building in the city of Xanadu, a small city. It appears that everyone in Xanadu knows
someone who died in the blast. The crime has been front-page news every day for a
year, and local television personalities have consistently ranted about your client’s guilt.
You want to have the trial moved to another city. What is your argument, and should it
be successful?
Commerce that is wholly contained within a state and has no effect on other states or
foreign countries is called ________ commerce.
The legal authority that a court must have to hear a case is called _______.
In many states, if a person has been declared incompetent, contracts that person enters
into are classified as void ________ or not valid from the onset.
On February 1, Frank’s Fedora Manufacturers sends an offer to Metropolitan Outfitters
by letter with all price, quality, quantity, and delivery terms clearly stated, indicating
that the offer will remain open until October 1. On September 1 Metropolitan sends an
acceptance of the offer to Frank’s with no material alterations to any of the stated terms
in the offer. The acceptance makes the contract valid and enforceable.
Plastic Enterprises sends a purchase order to Felt Industries to buy recycled soda bottles
for delivery at Steven’s Point. Felt sends an acknowledgment form confirming all of the
terms in the purchase order but designating delivery to be at Johnson’s Point, 2 miles
down the coast from Steven’s Point. Do the parties have a contract, and where will the
delivery be?
Lois is a reporter for the school newspaper and generally writes satirical articles
spoofing students, faculty, and school policy. After one particular article, Professor
Mackey fails to find the humor in Lois’s portrayal of her as a leftover 1960s hippie and
sues Lois for defamation. In fact, Professor Mackey is a modern woman with a degree
in sociology and has written extensively on American culture in the 1960s and 70s. She
did attend Woodstock, still listens to Led Zeppelin, and still occasionally wears tie-dyed
T-shirts when not professionally dressed. The state trial court finds for Professor
Mackey, and the jury awards her $10 million. Is there anything that Lois can do besides
filing for an appeal?
Disparate impact is analyzed using the ________ standard.
Willie is selling his home. As he starts the moving process, he is wondering what he
may take with him and what he must leave behind. Assume that the contract doesn’t
specifically list individual items and simply says that he must leave all fixtures. In
particular he is wondering if he can take the following: his brand new refrigerator;
glued carpeting in his basement; the 5- by 7-foot handmade Oriental rug in his den, and
the shelving in his garage. Since you have taken a law class, he asks you for your
advice. What should you tell him?
Describe how the federal government is protecting consumers online regarding spam.
Name and discuss the functions of each of the two important environmental water acts.
What is the procedure for Chapter 7 filings?