Eight businesswomen have formed a privately held corporation. Their stock certificates
and the stock register of the corporation are public documents.
A unilateral contract is formed when a promise requires acceptance by performance.
When a Pennsylvania appellate court makes a decision, stare decisis requires that
Delaware trial courts follow the case precedent when a case with a similar fact situation
arises.
Mike is having coffee in a coffee house when he sees Jordan, who is the dean of a
Midwest business school. Mike used to teach at Jordan’s prior school and was
considered a very valuable faculty member. They haven’t seen each other for years, and
Jordan has no idea what Mike has been doing or where he’s currently working. She tells
him that she has a position for him if he’s interested. The next day Mike quits the
university he’s under contract with and signs a contract with Jordan’s school. Jordan’s
school can be sued for tortious interference with existing contractual relationship.
Criminal law regulates the rights and duties between private parties.
The common law is the law that all states follow to avoid confusion and to promote
consistency from state to state.
Most privacy rights afforded in the Constitution do not extend to the workplace.
The Environmental Impact Statement (EIS) is a procedural requirement for all actions
that might impact the environment.
Before an individual is allowed to file for bankruptcy, he or she must complete a short
credit-counseling seminar.
Enumerated powers are those rights and powers granted in the Constitution to the
individual states.
The Uniform Limited Liability Company Act preempts all state laws in order to
maintain consistency throughout the U.S. business community.
A comprehensive values management program may be used in managing a
corporation’s diversity program.
Any corporation that does not make money is classified as a nonprofit corporation.
Each contract should cover a singular promise, and if multiple promises are involved,
multiple contracts should be created.
Valid contracts can be written or oral.
Race discrimination directed at white employees violates Title VII if the employer’s acts
were motivated by race.
Unjust enrichment is a theory used to impose an obligation in the absence of an actual
agreement.
The Clean Air Act requires a new permit when minor modifications are made to a plant
by a current permit holder.
If the criminal trial results in a verdict of not guilty, the government may retry the case
again because the government always gets one appeal.
A revocation of the agency relationship requires that the principal and the agent agree to
terminate the agency.
Substantial performance will be enforced only if the deviation from complete
performance is not material to the contract.
The Foreign Corrupt Practices Act was created to prevent bribery of foreign officials.
Under the concept of sovereign immunity, a foreign country is exempt from jurisdiction
in U.S. courts.
Banks that become owners of contaminated property through foreclosure are not liable
for cleanup costs.
There is a bright-line test for determining the amount of market share necessary to be
considered a monopoly.
The visitor’s bureau in your school’s county has a website with a section titled
“Education.” This section of the site has hyperlinks to each elementary through high
school as well as links to colleges and universities with campuses in the county. If the
link to your school’s home page was placed on the bureau’s site without your school’s
consent, the travel bureau is guilty of infringement.
Your cousin, who is a CPA, calls you and says that a client paid him in diamonds and
he’s selling them. If you purchase one of those diamonds, at the time of the sale your
cousin would be considered a merchant of those diamonds.
Unless limited by the articles of incorporation, shareholders may vote to remove a
director with or without cause; however, the courts may remove a board member only
for cause.
If a union chooses not to bring a grievance to arbitration, the individual union member
always has the right to pursue the matter through a lawsuit to enforce union provisions.
The Equal Credit Opportunity Act is limited to regulating applications for credit and
does not apply to the charging of higher interest rates based on the race of the
consumer.
The powers of an administrative agency to carry out the enabling statute are exercised
through rulemaking, enforcement, licensing, and adjudication.
The order of payment for unsecured creditors in bankruptcy is specified in the state’s
UCC statutes.
When a U.S. company conducts business with a foreign company online, U.S. law will
automatically apply to the transaction should there be a dispute.
In the cases of Heart of Atlanta Motel v. U.S. and Katzenbach v. McClung, the Supreme
Court found illegal discrimination under the Civil Rights Act of 1964 by applying:
A. the Commerce Clause.
B. the Supremacy Clause.
C. the Necessary and Proper Clause.
D. the Equal Protection Clause.
When Maria comes home from work, she finds that her yard has been mowed and
trimmed. An hour later a man comes to her door to collect payment for the yard work.
Maria refuses to pay him because she has never seen him before and had not hired him
to do the work. Which of the following is accurate?
A. This is an implied, unilateral contract, so she must pay.
B. Maria has received unjust enrichment, so a quasi-contract is formed and she must
pay.
C. The court would make Maria pay the reasonable cost of the work to be fair to both
parties.
D. Maria would not have to pay anything.
Moe has entered into a contract with Larry. Subsequently, Moe assigns his rights in that
contract to Curley. Which of the following would not prevent that assignment?
A. The contract contains an antiassignment clause.
B. The assignment would materially alter Larry’s duties and cause an increased burden
or risk to Larry.
C. Larry protests the assignment and demands that Moe not make the assignment.
D. The assignment would violate public policy matters.
After more than 100 years, the Chicago Cubs have won baseball’s World Series. They
want a parade down Michigan Street at 10 a.m. on Friday, but the city tells them that
the parade will be down Rush Street at noon on Saturday. The city claims that Rush
Street on Saturday will provide more safety and convenience for the city’s citizens. The
Cubs claim a violation of their freedom of speech. If a lawsuit ensues, what standard of
review will the court use to resolve the issue?
A. rational basis scrutiny
B. intermediate-level scrutiny
C. strict scrutiny
D. no particular form of scrutiny (none is required in this situation)
Under the Health Care and Education Reconciliation Act, employers offering high-end
health care policies in 2018 will be required to pay additional taxes to help fund the
act’s plan. A high-end health care policy is defined as one costing more than:
A. $12,500 per year.
B. $18,500 per year.
C. $23,500 per year.
D. $27,500 per year.
Under the Foreign Sovereign Immunities Act (FSIA) a foreign country is not under the
jurisdiction of U.S. courts if the foreign nation:
A. is engaged in some commercial enterprise on U.S. soil.
B. takes actions that have a direct effect on U.S. interests.
C. files a lawsuit in its own courts against a U.S.-based business.
D. waived immunity, explicitly or by implication.
Which of the following is a tactic used by employers?
A. wildcat strikes
B. lockouts
C. secondary boycotts
D. grievances
The point at which liability for negligence stops is called:
A. proximate cause.
B. negligence per se.
C. res ipsa loquitur.
D. negligence interruptus.
Which of the following promises ordinarily need not be in writing to be enforceable?
A. promises made as a part of a prenuptial agreement
B. an agreement to sell a car for $1,500
C. a lease of a warehouse for 24 months
D. a $1,000 agreement with a personal trainer for 10 sessions
In Vagias v. Woodmont Properties, Vagias wanted to buy a house in Montville. He told
his real estate agent that he wanted to buy there because of the school district’s
reputation. The agent showed him a house in a development called “Woodmont Court at
Montville.” Vagias asked if the house was within the jurisdictional limits of Montville.
The agent and a representative for the builder, who both knew the township boundaries,
assured him it was within the city limits. Vagias bought the house but was unable to
enroll his son in the school district because the property was outside the city limits.
Vagias sued, claiming he paid a premium for the house based on the school district’s
reputation. The homebuilder argued that the misrepresentations were unintentional and
that Vagias did not suffer a loss in the value of his home. The court held that:
A. Woodmont was liable because the location of the house was the basis of the bargain
and the misrepresentation was affirmative, thus meeting the requirements of the New
Jersey Consumer Fraud Act.
B. Woodmont was liable because the real estate agent showed Vagias a house that did
not meet his requests.
C. Woodmont was not liable because the misrepresentation was not intentional.
D. Woodmont was not liable because the New Jersey Consumer Fraud Act does not
apply to real estate.
Will and Kendrick live in a state that requires that contracts involving transactions over
$500 be in writing. If they enter a verbal agreement to buy a car for $1,500, this
contract is:
A. valid.
B. void.
C. voidable.
D. unenforceable.
April has refereed high school and women’s college soccer for 10 years. She is fit,
knows the rules without question, and has always received excellent evaluations. When
she applies to referee men’s college games, the men’s college referee administrator tells
her that he can’t use her because women won’t get the players’ respect and because the
game looks more serious and acceptable with men refereeing. April is the victim of:
A. disparate treatment discrimination.
B. mixed motives discrimination.
C. disparate impact discrimination.
D. pretextual discrimination.
In Ricci v. DeStefano, Ricci, a white firefighter, took and passed the City of New Haven
firefighter’s test, required of all applicants for promotion in the city’s fire department.
The test was thrown out when it was discovered that minorities scored poorly and the
city feared a disparate impact-based lawsuit.
A. Even though the test was prepared by a professional testing organization, the city
has the right to reject the test results if minorities do not score adequately.
B. Deliberately oversampling minorities to seek to create a fair test is irrelevant if the
test results show that minorities still scored poorly.
C. Ricci, as a member of the white majority, had no grounds to sue when the city was
seeking the legitimate aim of nondiscrimination.
D. An employer may not simply disregard a test based on unwanted results unless the
test is shown to be biased or deficient.
Which president is known for leading the antitrust reform movement?
A. Theodore Roosevelt
B. Harry Truman
C. Woodrow Wilson
D. Franklin Roosevelt
An oil tanker crashes off the coast of California. It dumps millions of gallons of oil into
the ocean. During the investigation of the crash, it is suspected that there might be gross
negligence on the part of the ship’s captain. Is the ship owner liable for the damages?
Why or why not?
How is a debtor protected in bankruptcy from the moment of filing?
A. The debtor goes to credit counseling.
B. Personal guaranties of loans are voided.
C. An automatic stay is placed on all collection efforts.
D. Certain transactions are now considered to be voidable.
In the absence of a specific contract provision regarding the details of payment, the
UCC provides that payment be made in full:
A. at the time and place that delivery occurs.
B. within 10 days of the time and place that delivery occurs.
C. within 20 days of the time and place that delivery occurs.
D. within 30 days of the time and place that delivery occurs.
Which of the following is a form of vicarious liability?
A. respondeat superior
B. disgorgement
C. repudiation
D. ratification
Enron Corporation was a multinational conglomerate with a core business of:
A. oil and gas exploration and production.
B. energy trading.
C. insurance and stock speculation.
D. banking and mortgage lending.
Mike and Kathy are both tenured associate professors in a school’s English Department.
Kathy is constantly asking Mike out on dates, which he always refuses. He has asked
her to stop asking. Furthermore, Kathy is always making provocative comments to him,
telling dirty jokes, and asking him about his preferences in women, which embarrasses
him and has caused him to lose sleep. If Mike sues the school for permitting her
behavior:
A. the school would win because a woman can’t harass a man and he should be
flattered rather than upset.
B. the school would win because Mike and Kathy are on the same employment level
and Mike can’t be truly harassed unless Kathy has the ability to impact his job status,
which she doesn’t.
C. Mike would win if he had previously complained to the school and it had done
nothing to stop the harassment.
D. Mike would win because, regardless of notice, the employer is automatically liable
for any improper activity that occurs on the job and it is the employer’s responsibility to
know what is happening on its premises.
For which of the following is an occupational license issued by an agency not
required?
A. lawyers
B. college and university professors
C. hairstylists
D. kindergarten teachers
Which of the following does not have to be shown for copyright protection to be
granted?
A. The work is original.
B. The work has a present or potential value.
C. The work exhibits some degree of creativity.
D. The work is fixed in a durable medium.
The source of bankruptcy law is a combination of:
A. statutory and common law.
B. constitutional and common law.
C. statutory and administrative law.
D. administrative and common law.
The power to impeach and remove is a check and balance power:
A. of the executive branch.
B. of the legislative branch.
C. of the judicial branch.
D. that is shared by all three government branches.
Who hears an appeal of an administrative law judge’s ruling?
A. a federal judge
B. an agency head
C. a state judge
D. no one, since there is no administrative appeal process
Lon has just come home from serving in the Marines and contracts with a local car
dealership to purchase a car. The car must be ordered, and payment is to be made when
the car arrives. The next day, Lon receives orders to return to active duty. Realizing that
he doesn’t need the car, he brings Tony to the dealership and asks that Tony substitute
for him. Tony will take delivery and ownership of the car, and Tony will pay the
dealership upon delivery. The dealership agrees to have Tony substitute for Lon. What
has occurred?
A. an assignment
B. a novation
C. a delegation
D. an accord and satisfaction
In H. Carl McCall, Trustee of the New York Common Retirement Fund, et al.,
Derivatively on Behalf of Columbia/HCA Healthcare Corporation v. Scott, suit was
brought claiming a breach of fiduciary duties by the board with regard to alleged
fraudulent billing practices. The board defended by citing the corporate charter, which
limits the liability of directors for breach-of-duty claims as long as they did not act in
bad faith. The court determined that:
A. an inclusion in the charter limiting liability for fiduciary duties owed is void as it is
against public policy.
B. the board lacked the necessary experience to understand the nature of the practices
but did not act in bad faith, so the charter inclusion would act to shield the board from
liability.
C. the board ignored direct and indirect signs pointing to the fact that fraudulent
practices were occurring and its failure to investigate breached its duty of care.
D. the shareholders suit was improper as a derivative action and needed to be filed as a
direct action.
The following act was passed specifically to monitor and prevent corruption in major
trade unions:
A. National Labor Relations Act.
B. Labor Management Relations Act.
C. Labor-Management Reporting and Disclosure Act.
D. Fair Labor Practices Act.
All of the following are examples of formal contracts except:
A. negotiable instruments.
B. contracts under seal.
C. checks.
D. a purchase over $500.
Wanda has graduated from a university and after nine months has failed to find a job.
She graduated with a degree in business, and her college was AACSB accredited.
(AACSB accreditation is a specialized accreditation for business schools that evidences
a quality program.) In her complaint, she alleges that four years of school and tuition
should guarantee a job in the field of study and states that she wants her money back. At
no time did her school guarantee job placement, either through express or implied
statements. Wanda does not disagree with this but still thinks that she was wronged and
that it’s unfair to graduate and not get a job automatically. The school will be successful
in extinguishing Wanda’s lawsuit if its attorney files a:
A. motion to dismiss because Wanda does not have standing.
B. motion for summary judgment.
C. motion to dismiss for mistrial.
D. motion for a judgment as a matter of law.
The Fair Credit Reporting Act (FCRA) requires that credit bureaus remove obsolete
bankruptcy filings from credit reports. A bankruptcy filing is considered to be obsolete
after:
A. 7 years.
B. 8 years.
C. 13 years.
D. 14 years.
If Gina, an American musician, sold copies of her latest album in Great Britain, her
music would be protected the same as that of a British citizen under the:
A. Vienna Convention on the Law of Treaties
B. Paris Convention
C. Madrid Protocol
D. Berne Convention
The Digital Millennium Copyright Act provided each of the following protections
except:
A. manufacturers of CD-writers were required to pay 2 percent of their sales into a
fund to be distributed to copyright holders because the CD-writers could easily copy
music and other copyrighted works.
B. civil and criminal penalties were established for those who sell or manufacture
products or services that circumvent antipiracy software.
C. restrictions were placed on analog recorders and camcorders that lack antipiracy
features.
D. ISPs were relieved of liability for copyright infringement by their users as long as
the ISP had no knowledge of the infringement.
The case of Marbury v. Madison established the federal courts’ power of _______.
When a party may, at his or her option, either disaffirm or enforce a contract, that
contract is said to be _______.
Pat recently purchased some property that she knew used to be home to a chemical
plant 50 years ago. The plant was removed 30 years ago. Today the property is full of
trees and the stream running through it is clear and looks clean. Last month the EPA
determined that her property, as well as several neighboring properties, is contaminated.
The EPA placed the entire site on the National Priorities List for cleanup. How liable for
the hazardous waste is Pat?
Equitable rules used in the context of common law rules that guide courts in deciding
cases or controversies are called equitable _______.
Race, religion, color, gender, and national origin are examples of _______.
Fancy Frames Bicycles Inc., is a small company in state A that manufactures custom
high-end bicycle frames for sale to consumer cyclists. It has a single office/plant, and it
maintains a website with information about its products and contact information but no
means for ordering products online. Mike, a state B resident, runs a similar custom
bicycle-frame-making shop that is successful but growing increasingly stagnant. After
visiting the Fancy Frames site, he is impressed. He contacts Fancy Frames about
closing his business and becoming a local Fancy Frames manufacturer and distributor.
Fancy Frames is intrigued by the idea, and the parties exchange numerous e-mails for
over a year discussing the proposed business relationship. Finally Fancy Frames writes
to Mike that the deal is a go and the papers will be sent to him immediately. Mike
closes his business and awaits the papers. When they arrive, he sees that the deal
provides him with a salary but has left out the commission that the e-mails had
promised. He sues Fancy Frames in the state B district court. Will the court have
personal jurisdiction over Fancy Frames? What theory or theories might the court
examine in determining personal jurisdiction?
Tom is a cop and has a reputation for being one of the toughest men in the precinct. He
regularly hangs out with the guys and flirts with the women. After two years he
announces that he is gay and always has been. A week later he is fired when his
lieutenant announces that he can’t trust a gay person and feels too uncomfortable around
him. If Tom files a discrimination complaint with the EEOC, what will be the
outcome?
What does the Paris Convention address? What is the major enforcement problem with
it?
A jury that cannot agree on a verdict is called a ________ jury.
Veto power is a power granted to the ________ branch of government.
With regard to international business transactions conducted online, what are the two
theories used to determine whose law applies in a dispute?
What has Congress done to try to prevent individuals from abusing bankruptcy
protections?
Prioritizing moral values for an organization and ensuring that behaviors are aligned
with those values is known as _______.
When a business no longer has enough money to pay its bills and maintain operations,
it is considered to be ____.
The ________ Act makes it a crime to change vehicle odometers and requires that
faulty odometers be disclosed to the buyers.
Illegal acquisition of a company’s trade secret constitutes ______.
________ policy is primarily governed by the Paris Convention and the Madrid
Protocol.
If a 17-year-old enters into a contract to purchase a car, that contract is ________ at the
minor’s option until he or she reaches the age of
The EPA has identified a new hazardous waste site. What should its initial steps be to
clean up the site?
In what ways does OSHA (the act and the agency) work to establish and maintain
workplace safety?