An outstanding mortgage balance in excess of the value of a house is referred to as
negative equity.
a. True
b. False
Answer:
The __________ has primary responsibility for regulating the labeling of food
a. Federal Trade Commission
b. Food and Drug Administration
c. The Consumer Product Safety Commission
d. The Federal Trade Commission
Answer:
________________ strategies for dealing with the interface between a firm’s business
and the natural environment that go beyond ___________ regulatory compliance have
been associated with ________________.
a. Proactive, environmental, sub-par financial performance.
b. Legislative, environmental, improved financial performance.
c. Proactive, environmental, improved financial performance.
d. Defensive, environmental, peak financial performance.
Answer:
Section 301 of the Trade Act of 1974 is the principal U.S. statute addressing unfair
foreign practices affecting U.S. exports of goods or services.
a. True
b. False
Answer:
A final agency rule is codified and added to the:
a. Code of Federal Regulations.
b. Code of Uniform Regulations.
c. Code of Legislative Regulations.
d. Code of Federal Reporting.
Answer:
A trademark does not necessarily reveal the product’s manufacturer.
a. True
b. False
Answer:
The UCC permits a contract to be enforced if the parties intended a binding contract,
even though important terms may have been left open for later agreement.
a. True
b. False
Answer:
The Fifth Amendment’s protection against self-incrimination does not apply to
corporations.
a. True
b. False
Answer:
As a general rule, a real estate broker may act for more than one person in a real
property transaction without the knowledge of all parties to the transaction.
a. True
b. False
Answer:
CASE 1, Kubert v. Best(2013) examined the question of whether a third party who was
not present, but was __________ the driver of the car who hit the plaintiff, had
__________ the person who was injured.
a. texting, a legal duty of care to
b. talking, a legal duty to
c. texting, a legal defense to
d. texting, distracted
Answer:
A(n) __________ period is any period longer than three business days during which
_____ of the participants in a retirement plan are prevented from trading.
a. loss causation; 80%
b. scheme liability; 25%
c. blackout; 50% or more
d. stock parking; 80%
Answer:
For federal diversity purposes, a corporation is deemed a citizen of:
a. the state of incorporation.
b. the state of its principal place of business.
c. either the state of incorporation or the state of its principal place of business, but not
both.
d. both the state of incorporation and the state of its principal place of business.
Answer:
Which of the following plays the most significant role in instilling a sense of ethics
throughout an organization?
a. The CEO
b. The human resources manager
c. Each employee’s immediate supervisor
d. The employees themselves
Answer:
In the caseClinton v. City of New Yorkreferenced in the text, the U.S. Supreme Court
struck down as unconstitutional the line-item veto given to the President by Congress.
a. True
b. False
Answer:
A(n) __________ is an effect of a purchase or use decision by one set of parties on
others who did not have a choice and whose interest was not taken into account.
a. externality
b. bystander influence
c. afflicting action
d. effectation
Answer:
Real estate law has its roots in both English common law and Spanish civil law.
a. True
b. False
Answer:
Discrimination on the basis of pregnancy is a form of sex discrimination under Title
VII.
a. True
b. False
Answer:
The European Commission is the __________ of the European Union.
a. executive branch
b. legislative branch
c. administrative agency
d. police arm
Answer:
The term ‘security,” for purposes of the Securities Act of 1933, is narrowly interpreted
to include only such traditional investments as a stock or a bond.
a. True
b. False
Answer:
Under the Family and Medical Leave Act, eligible employees are entitled to _____
weeks of leave per year.
a. 10
b. 20
c. 12
d. 5
Answer:
Which of the following was the result at the U.S. Supreme Court level in the case of
Board of Education of Independent School District No. 92 of Pottawatomie County v.
Earls, the case in the text involving whether a school system requiring student-athletes
to take a drug test without any suspicion of drug use violates the Fourth Amendment?
a. That individualized suspicion is not a consideration in determining whether a search
is reasonable and that the searches at issue were, therefore, constitutional.
b. That the searches were unconstitutional because no individual suspicion was present.
c. That the searches were unconstitutional because minors were involved regardless of
whether or not individual suspicion was present.
d. That individualized suspicion is not always required and that the searches in the case
were constitutional.
Answer:
Which of the following categories of drugs cannot be approved by the Food and Drug
Administration?
a. Schedule 1
b. Schedule C
c. Schedule 2
d. Schedule D
Answer:
Bill, a student at State University, needed a way to get some cash quickly. He took a
photograph of State University’s head cheerleader, Marla, and started selling jerseys
with her photograph on the back under the caption of “She’s Hot.” Marla wants to sue
for defamation. She asks you if she could win on a defamation claim and if there is
anything else for which she should sue. Discuss the elements of the legal theories
involved and what you should tell Marla.
Answer:
A __________ statute is a state statute authorizing boards of corporations to take into
account all stakeholders and constituencies even when a change in control or breakup of
the corporation has become inevitable.
a. corporate control
b. break-up
c. constituency
d. protection
Answer:
A creditor’s claim in bankruptcy may be involuntarily postponed through application of
the doctrine of equitable subordination.
a. True
b. False
Answer:
Kantian theory examines the concepts of universalizability and reversibility.
a. True
b. False
Answer:
A prediction about the future can be a misstatement under Rule 10b-5, but only if the
person making the prediction does not believe it at the time.
a. True
b. False
Answer:
Chris sold Valerie a home containing a wood stove which could not be removed from
the home without causing substantial damage. Shortly after the sale, Valerie sustained
significant smoke damage due to a malfunction of the stove. She told Chris that she was
going to sue him under the UCC. Chris told her that was not possible. Which of the
following is true?
a. Chris is correct because the stove would likely be a fixture not covered by the UCC.
b. Valerie is correct because the stove would likely be a fixture covered by the UCC.
c. Valerie is correct because the stove would not be considered a fixture and would,
therefore, be covered by the UCC.
d. Valerie is correct because the sale of the home would be covered under the UCC
along with anything else sold with the home.
Answer:
Fact Pattern 23-1
Bailey has been making large credit card purchases for months. He has also borrowed
money from Jack and Susan, friends of his, so that he can continue his rather lavish
lifestyle involving foreign travel. He borrowed $1,000 from Jack and $2,000 from
Susan. He also borrowed $500 from his mother. Bailey finally decides that he can no
longer continue to make even the minimum payments on his credit cards and considers
filing for bankruptcy. He does, however, want to pay some of his debts. Bailey,
therefore, puts off the credit card companies and saves his cash. He starts the New Year
off by paying on January 1 all funds owed to his mother. He was particularly concerned
about repaying his mother because he still lived at home and had some concerns that
she would kick him out of the house if he did not repay her. Then, on June 1 he pays
Jack; and on July 4, he pays Susan. Bailey proceeds to file bankruptcy on August 2
because he has repaid anyone he really cares about. He plans to complete the
bankruptcy and move to the Caribbean.
Refer to Fact Pattern 23-1. Which of the following is true regarding the repayment of
the loans from Jack and Susan?
a. The payment to Susan would be considered a preference because it was made within
30 days of the filing for bankruptcy, but the payment to Jack would not be considered a
preference because it was made more than 30 days prior to the bankruptcy filing.
b. Payments to both Jack and Susan would be considered preferences because they were
made within 90 days of the filing for bankruptcy.
c. Payments to both Jack and Susan would be considered preferences because Jack and
Susan are insiders, and the payments were made within one year of the bankruptcy
filing.
d. The payments would not be considered preferences.
Answer:
Which of the following is true regarding the UETA in relation to the E-SIGN Act?
a. Because the UETA is a federal law, whereas the E-Sign Act is a creature of state law,
the UETA preempts the E-Sign Act in many ways.
b. The UETA and also the E-Sign Act exclude wills from their coverage.
c. Both the UETA and the E-Sign Act include within their broad scope provisions that
divorces may be entered into and recorded electronically.
d. The UETA allows electronic signatures whereas the E-Sign Act disallows such
signatures.
Answer:
The __________ interest rate is based on the cost of borrowing offshore U.S. dollars in
the global interbank market.
a. International Rate Exchange
b. Frankfurt International Trade Rate
c. London Interbank Offered Rate
d. New York Exchange Rate
Answer:
A promise that neither confers any benefit on the promisee nor subjects the promisor to
any detriment is an illusory promise
a. True
b. False
Answer: