The Natural Law School of jurisprudence emphasizes shaping laws based on morals
and ethics.
An orally agreed upon power of attorney is acceptable in court.
An independent contractor cannot represent more than one principal at a time.
Speech that is offensive to many members of the society, but is not obscene or violent,
is held “unprotected” by the U.S. Supreme Court.
An offer to create a unilateral contract cannot be accepted by a promise to perform.
According to Rawls’s social justice theory, moral duties are based on an implied social
contract.
A fully disclosed agency results if a third party entering into a contract knows the actual
identity of the principal.
The Sherman Act is the only major antitrust act that includes criminal sanctions.
A treaty does not require Senate approval before being passed.
Managers and professional employees cannot belong to unions formed by employees
they manage.
Unsecured credit requires collateral to protect the payment of the debt.
The Noerr doctrine holds that two or more persons may petition the government to
enact laws or take other action without violating antitrust laws.
The Fifth Amendment to the U.S. Constitution protects people from unreasonable
search and seizure by the government.
If an insane person who has not been adjudged insane enters into a contract, the
contract is non-voidable by the insane person.
Unless otherwise unambiguously indicated by language or circumstance, an offer to
make a sales or lease contract may be accepted in any manner and by any reasonable
medium of acceptance.
Violation of the Money Laundering Control Act subjects any property involved in or
traceable to the offense to forfeiture to the government.
Indoor air pollution is primarily caused by toxic fumes from industrial plants located in
cities.
State courts of one state are not required to follow the legal precedent established by the
courts of another state.
The business judgment rule states that corporate directors and officers are liable to the
corporation or its shareholders for even honest mistakes of judgment.
A counteroffer is considered a rejection of the original offer.
The attorney-client privilege can only be raised by the defendant.
Assault and battery are mutually exclusive torts that do not occur together.
The Freedom of Speech Clause included in the First Amendment protects both speech
and conduct.
Denying employment to a woman because she is pregnant is a form of quid pro quo sex
discrimination.
The World Trade Organization (WTO) dispute settlement body is required to adopt the
panel report unless the body, by consensus, agrees not to adopt it.
Only written express warranties are valid.
When a company employee makes a profit by personally purchasing shares of the
corporation prior to public release of favorable information, it is not considered illegal.
The attorney-client privilege can only be raised by the defendant.
The members of the EEOC are appointed by the U.S. president.
The merger of two grocery store chains that serve the same geographical market is an
example of a horizontal merger.
A plaintiff can file a claim against an employer within 180 days of the most recent
paycheck violation.
A licensee is a party who is granted limited rights in intellectual property or information
rights owned by another person or company.
The Clayton Act, enacted in 1914, regulates mergers and prohibits certain exclusive
dealing arrangements.
In a civil lawsuit, liability has to be proven beyond a reasonable doubt.
A person charged with a crime in the United States is presumed guilty until proven
innocent.
Only movable goods come under the scope of Article 2 of the UCC.
An employer is permitted to bar off-duty employees from union solicitation on
company premises.
The CAN-SPAM Act requires spammers to label sexually oriented e-mails as such.
Statutesare written laws that establish certain courses of conduct that covered parties
must adhere to.
In a processing plant franchise, the franchisor licenses the franchisee to make and sell
its products or services to the public from a retail outlet serving an exclusive
geographical territory.
Rio-Werner Corporation owns Rio’s Sandwiches, a fast-food restaurant in New Jersey.
It wants to operate in five cities on the west coast by means of franchisees that make
and sell all menu items from Rio’s Sandwiches. Which of the following franchises
would best suit the Rio-Werner Corporation’s franchise plan?
A) processing plant
B) area
C) distributorship
D) chain-style
Frank Carpenter, who runs a charity organization, has been faking his father’s signature
on his father’s personal checks and writing them in favor of the charity as donations. He
gets hold of the checks from his father’s personal assistant, Rhonda Mason, who is also
Frank’s friend and the charity’s trustee. After faking the signature, Frank gives the
checks to Rhonda to deposit in the bank. But unbeknownst to Frank, Rhonda routes
some of the check money into her own savings account. Frank’s father, Dawson,
realizes that money is being withdrawn from his account without his consent. He
suspects his estranged son, Frank, and in order to find out if Frank is involved, Dawson
secretly offers money to the financial accountant of the charity to divulge the charity
organization’s financial dealings. The accountant accepts the money and gives access to
the account books. After scrutinizing the financial records, Dawson realizes that Frank
has been swindling him of his money, and the charity itself was being swindled by
somebody from within. With this information, Dawson proceeds to file a suit against his
son. In the above scenario, which of the following crimes has Rhonda Mason
committed?
A) forgery
B) bribery
C) embezzlement
D) extortion
A(n) ________ is a charge of having committed a crime, usually a felony, based on the
judgment of a grand jury.
A) arraignment
B) information statement
C) indictment
D) plea
Using a sexually explicit picture or screensaver to mock an employee constitutes
________.
A) gender discrimination
B) quid pro quo sex discrimination
C) sexual harassment
D) physical abuse
Under which of the following circumstances is a warrantless search permitted?
A) if there is no probable cause
B) if the suspect has been previously convicted
C) if evidence is not in plain view
D) if evidence is likely to be destroyed
Which of the following is true of an express agency?
A) It can be either oral or written unless the Statute of Frauds stipulates that it must be
written.
B) It is implied from the actions or conduct of the parties.
C) It originates when the principal ratifies an unauthorized act.
D) It arises when a principal creates the appearance of an agency that does not exist.
One of the features of the Marine Protection, Research, and Sanctuaries Act is that it
________.
A) requires the oil industry to adopt procedures and contingency plans to readily
respond to and clean up oil spills
B) requires a permit for dumping wastes and other foreign materials into ocean waters
C) requires a tanker owner-operator to prove that it is fully insured to cover any liability
that may occur from an oil spill
D) issues permits for the discharge of dredged or fill material into navigable waters and
qualified wetlands
In the civil caseJane Doe v. John Deer, the judge learns that the jury was swayed by the
fact that Jane Doe was a woman. The jury entered its verdict in her favor. Owing to this,
the judge reduces the damages awarded to Jane by $20,000. This act is called
________.
A) remittitur
B) judgment notwithstanding the verdict
C) motion for summary judgment
D) motion for judgment on the pleadings
Which of the following is true of shareholders?
A) They cannot enter into contracts that bind the corporation.
B) They cannot vote to elect the board of directors.
C) They cannot take active charge in deciding fundamental changes in the corporation.
D) They are considered as agents of the corporation.
Partners who erroneously but in good faith believe they have become limited partners
can escape liability as general partners by ________.
A) adding their surname to the name of the business establishment
B) filing for a refund of his or her initial investment with interest
C) bringing a lawsuit against all general and limited partners in the state court with
appropriate jurisdiction over the limited partnership
D) withdrawing from any future equity participation in the enterprise and causing a
certificate showing this withdrawal to be filed
Accountants who meet certain educational requirements, pass the CPA examination,
and have a certain number of years of auditing experience are called ________.
A) certified public accountants
B) central private accountants
C) central public accountants
D) certified private accountants
In the U.S. Supreme Court, if a majority of the justices agree as to the outcome of a
case but not as to the reasoning for reaching the outcome, it is a ________ decision.
A) unanimous
B) majority
C) plurality
D) tie
Frank Carpenter, who runs a charity organization, has been faking his father’s signature
on his father’s personal checks and writing them in favor of the charity as donations. He
gets hold of the checks from his father’s personal assistant, Rhonda Mason, who is also
Frank’s friend and the charity’s trustee. After faking the signature, Frank gives the
checks to Rhonda to deposit in the bank. But unbeknownst to Frank, Rhonda routes
some of the check money into her own savings account. Frank’s father, Dawson,
realizes that money is being withdrawn from his account without his consent. He
suspects his estranged son, Frank, and in order to find out if Frank is involved, Dawson
secretly offers money to the financial accountant of the charity to divulge the charity
organization’s financial dealings. The accountant accepts the money and gives access to
the account books. After scrutinizing the financial records, Dawson realizes that Frank
has been swindling him of his money, and the charity itself was being swindled by
somebody from within. With this information, Dawson proceeds to file a suit against his
son. In the above scenario, which criminal activity is Frank engaging in when faking his
father’s signature?
A) embezzlement
B) forgery
C) bribery
D) extortion
________ is the violation of a statute that proximately causes an injury.
A) Disparagement
B) Res ipsa loquitur
C) Negligence per se
D) Misappropriation
In order to claim damages for negligence per se, the plaintiff has to prove that
________.
A) the defendant was in exclusive control of the situation
B) the plaintiff was within a class of persons meant to be protected by the violated
statute
C) the defendant made a false representation of material fact
D) the plaintiff was affected by malicious statements made by the defendant about
his/her character
Which of the following is true of a union shop agreement?
A) The employee must join the union within a certain time after employment.
B) The employee does not join the union but pays an agency fee.
C) The employee must be a skilled worker represented by more than one union.
D) The employee must be represented by more than one union.
A government or political party that strictly derives its ethics and laws from a specific
religious book is an example of ________.
A) utilitarianism
B) ethical fundamentalism
C) ethical relativism
D) Kantian ethics
A(n) ________ is a relationship formed when an employer hires an employee and gives
that employee authority to act and enter into contracts on his or her behalf.
A) agent-independent contractor relationship
B) principal-agent relationship
C) agent-agent relationship
D) employer-employee relationship
________ occurs when an independent choice is made by one party not to deal with
another party.
A) A non-price vertical restraint
B) A monopoly to deal
C) A unilateral refusal to deal
D) Conscious parallelism
Which of the following is true for an auction without reserve?
A) The bidder is considered the offeror.
B) The seller need not accept the highest bid.
C) The auctioned item cannot be withdrawn from sale.
D) The auctioneer is not allowed to establish a minimum bid.
The Do-Not-Call Registry was provided by the ________ to protect consumers from
unsolicited commercial telephone calls.
A) Federal Trade Commission
B) Food and Drug Administration
C) Consumer Product Safety Commission
D) Federal Communications Commission
Which of the following best describes the World Wide Web?
A) a connection of millions of computers that support a standard set of rules for the
exchange of information
B) a network of millions of smaller networks, each with an independent set of standards
C) a connection of millions of computers across the world with no specific standards or
time constraints for exchange of data
D) a world-wide network of millions of smaller networks with a different standard of
information exchange in each country
What is the role of the World Trade Organization (WTO) dispute settlement body?
A) to serve as the “court of last resort” for appeals from the WTO appellate body
B) to create panel reports based on findings of fact and law
C) to hear and decide war disputes and issue sanctions against aggressor nations
D) to review WTO panel reports and adopt them if appropriate
A person who jaywalks commits a ________.
A) misdemeanor
B) felony
C) violation
D) tort
Which of the following is true of the Public Company Accounting Oversight Board
(PCAOB)?
A) All members of the PCAOB must be CPAs.
B) The PCOAB was created by the Tax Reform Act of 1976.
C) The SEC has oversight and enforcement authority over the PCOAB.
D) The PCOAB does not have any disciplinary authority over accountants and
accounting firms.
Which of the following sales is covered by Article 2 of the UCC?
A) the sale of intangible goods
B) the sale of tangible goods
C) the sale of real estate
D) the sale of stocks
________ refers to an equitable doctrine that permits the court to rewrite a contract to
express the parties’ true intentions.
A) Reformation
B) Injunction
C) Conjunction
D) Garnishment
The remains of the process by which nuclear power is generated in a reactor are most
likely to be classified as ________.
A) composite wastes
B) inert elements
C) pesticides
D) hazardous wastes
Which of the following types of liability does a limited partner of a limited partnership
have for the debts and obligations of the limited partnerships?
A) unlimited personal liability
B) liability restricted to the extent of his or her capital contribution
C) liability of termination as partner
D) unlimited organizational capital liability
Which of the following is true of the Do-not-Call Registry for consumers?
A) The registration is valid for the lifetime of the customer who opted for it.
B) Telemarketers have three days to remove the customer’s name upon registry.
C) Charitable and political organizations are exempt from the registry.
D) Customers cannot choose the companies from which they do not wish to receive
calls.
A(n) ________ is an exception that permits a type of building or use in an area that
would not otherwise be allowed by a zoning ordinance.
If two competing manufacturers of a similar product both separately reach an
independent decision not to deal with a retailer, ________ is said to have occurred,
which is not a violation of Section 1 of the Sherman Act.
The term ________ refers to any oral or written words outside the four corners of a
written contract.
The ________ of the Fifth Amendment to the U.S. Constitution allows the government
to take private property for publicuse.
A(n) ________ is a type of freehold estate wherein the ownership is taken away upon
the occurrence or nonoccurrence of a specified condition.
Jewish jurisprudence is administered by the ________, which is a Jewish court
consisting of rabbi-judges.
________ is defined as the substantial likelihood that a person either committed or is
about to commit a crime.
The U.S.’s form of government is referred to as ________, in which the federal
government and the fifty states share powers.
Kantian ethics is also referred to as ________ ethics.
In legal terminology, evil intent is also known as ________.
The ________ was formed in 1886, under the leadership of Samuel Gompers. Only
skilled craft workers such as silversmiths and artisans were allowed to belong.
A(n) ________ is oral testimony given by a party or witness prior to trial.
Give an account of zoning. What are nonconforming uses?
The Islamic law system is derived from the Qur’an, the ________ (decisions and
sayings of the prophet Muhammad), and reasonings by Islamic scholars.
The ________ is a federal act that guarantees workers up to 12 weeks of unpaid leave
in a 12-month period to attend to family and medical emergencies and other specified
situations.
In a(n) ________ arrangement, a third party promises to be primarily liable with the
borrower for the payment of the borrower’s debt.