The National Labor Relations Act prohibits employers from interrogating employees
about union sentiment or activity.
a. True
b. False
Answer:
As used in the text, the term “legal astuteness” refers to the ability of a manager to
avoid situations making consultation with legal counsel necessary.
a. True
b. False
Answer:
Nobel prize winner Milton Friedman asserts that ‘social responsibility” is a
fundamentally __________ doctrine.
a. positive
b. risky
c. good
d. subversive
Answer:
A majority of states impose on commercial builders of houses a(n):
a. express warranty of quality.
b. implied warranty of merchantability.
c. warranty of deed.
d. implied warranty of habitability.
Answer:
Whether a person is an independent contractor or an employee depends on what he or
she does, not how the relationship is characterized by the parties.
a. True
b. False
Answer:
Managers can make their own “public” law.
a. True
b. False
Answer:
In CASE 13.1Green v. Franklin National Bank of Minneapolis (2006), plaintiff sued her
employer-Bankafter a co-worker repeatedly called her “monkey” and used other slurs.
In its decision, the court held for the __________, ruling that __________.
a. plaintiff, the statements were sufficient to create a “racially hostile”work environment
and that the plaintiff could recover regardless of whether the defending employer took
prompt and appropriate remedial action against the offending employee.
b. plaintiff, the statements were sufficient to create a “racially hostile”work environment
but that the plaintiff could not recover because the defending employer took prompt and
appropriate remedial action against the offending employee.
c. bank, the statements were insufficient to create a “racially hostile” work environment.
d. bank, the statements were insufficient to create a “racially hostile”work environment
and also that the plaintiff failed to follow the employer’s complaint procedure.
Answer:
A(n) __________ is a for-profit corporation that uses the power of business to solve
social and environmental problems.
a. C corporation
b.S corporation
c. B corporation
d.Benevolent Recognized Group
Answer:
In a unilateral contract, a promise is given in exchange for another promise.
a. True
b. False
Answer:
A buyer or seller of stock can only recover damages if a material fact is misrepresented
or omitted from company communications. All of the following are considered material
facts, EXCEPT:
a. statements about corporate earnings.
b. compensation of corporate officers.
c. statement of corporate optimism.
d. statements about corporate assets.
Answer:
What is the meaning of the term “respondeat superior”?
a. Let the master answer
b. Let the servant respond
c. Let both the master and servant respond
d. The agreement must be in writing
Answer:
There is no provision in the security laws for the payment of bounties to individuals
whose tips result in insider trading prosecutions.
a. True
b. False
Answer:
A court might consider a product to be unreasonably dangerous if:
a. a less dangerous alternative was commercially feasible but was not produced.
b. the product was less dangerous than was expected by the ordinary consumer.
c. the product was frequently misused by consumers, despite adequate warnings about
the dangers of misusing the product.
d. the product was adequately labeled with warnings for the ordinary consumer.
Answer:
Which of the following is not an illegal horizontal market division?
a. Division by a class of customers
b. Division by exclusive distributorships
c. Division by geographic territory
d. Restricting product output
Answer:
The main question for the U.S. Supreme Court in CASE 10.4 Mutual Pharmaceutical
Co., Inc. v. Bartlett (2013) was whether:
a. New Hampshire’s “risk-utility” analysis was Constitutional.
b. New Hampshire had properly licensed Mutual Pharmaceutical to dispense
medications within its boundaries.
c. the generic drug Clinoril was properly prescribed to patient Bartlett.
d. consumers could sue generic drug manufacturers for defectively designed drugs that
makes them unreasonably dangerous.
Answer:
Under the Uniform Computer Information Transactions Act (UCITA), what would be
the result if an electronic agent agrees to a click-wrap agreement?
a. The user of the electronic agent would not be liable for the agreement.
b. The user of the electronic agent would be liable for the agreement only if the
evidence established that the user had an opportunity to look over the agreement and
cancel it within a reasonable length of time.
c. The use of the electronic agent would be liable for the agreement.
d. The user of the electronic agent would be liable for the agreement only if the user
was a merchant in respect to goods or services of the type purchased by the agreement.
Answer:
The EPA is a cabinet-level department.
a. True
b. False
Answer:
A person must own a majority of shares in a corporation in order to be considered a
controlling shareholder.
a. True
b. False
Answer:
A __________ occurs when minority shareholders are forced to convert their shares
into cash, for example, when a subsidiary merges with its parent.
a. hostile takeover
b. sale of assets
c. freeze out
d. tender offer
Answer:
Which of the following are damages that compensate the plaintiff for any expenditures
it made in reliance on a contract that was subsequently breached?
a. Expectation damages
b. Reliance damages
c. Restitution damages
d. In kind damages
Answer:
When equal protection is concerned, classifications based on gender are subject to the
___________ test.
a. rational basis
b. strict scrutiny
c. substantially related
d. gender-based
Answer:
Under the Securities Act of 1933, an investor may bring a private suit for damages.
a. True
b. False
Answer:
If the collateral from one loan is used to secure the obligations on another loan, this is
called __________, or sometimes called a “__________” clause.
a. perfection, default
b. cross-collateralization, dragnet
c. floating lien, dragnet
d. attached loan, dragnet
Answer:
Horizontal agreements among competitors to avoid competition on nonprice matters
cannot be a violation of Section 1 of the Sherman Act.
a. True
b. False
Answer:
Choice-of-law provisions in a contract seek to avoid later disputes over which law
applies.
a. True
b. False
Answer:
Trade secrets are protected for an indefinite time.
a. True
b. False
Answer:
Procedural unconscionability is easier to prove in a commercial setting than when an
individual consumer is involved.
a. True
b. False
Answer:
States may not impose a higher fiduciary duty upon partners than that set forth in the
Revised Uniform Partnership Act.
a. True
b. False
Answer:
Formal administrative adjudications at the federal level typically include a prehearing
discovery phase.
a. True
b. False
Answer:
In the context of takeovers, board members cannot reject an offer without taking
sufficient time to analyze its merit.
a. True
b. False
Answer:
__________ liability is the imposition of liability on one party for the wrongs of
another.
a. Vicarious
b. Validity
c. Relator
d. Absolute
Answer:
Because federal law preempts the area, states have not enacted legislation regarding
drug testing of private employees.
a. True
b. False
Answer:
Fact Pattern 14-1
Beatrice, a bank teller, was angry with her employer, Big Bank, because she did not get
a raise. Each day she begins to keep for her own use small amounts out of funds
deposited by customers at her station. Eventually, she is caught when customers begin
to complain about discrepancies, and bank officials conduct surveillance of her actions.
Big Bank is very unpopular in the community because of a number of foreclosures. The
trial against Beatrice results in a hung jury when the twelve jurors are hopelessly
deadlocked, probably because of their dislike of Big Bank. Beatrice is thrilled and
believes that she can forget about the whole mess although her cell mate tells her that
she may not be out of the woods yet.
Refer to Fact Pattern 14-1. Can Beatrice be tried again for the same crime?
a. No, because of the double jeopardy bar.
b. Only if at least five of the jurors voted in her favor to acquit her.
c. Only if at least six of the jurors voted in her favor to acquit her.
d. Yes.
Answer: