Chapter 13 does not provide a bankruptcy discharge for corporations.
a. True
b. False
Answer:
The agreement of all the commercial airlines not to lower their fares would be an
example of a:
a. vertical restraint of trade.
b. horizontal restraint of trade.
c. tying arrangement.
d. monopoly.
Answer:
The __________ provision of the U.S. Constitution forbids trying a person twice for the
same crime.
a. ex post facto
b. bill of attainder
c. double jeopardy
d. privileges and immunities
Answer:
Alice typically mows her own lawn whereas her neighbor pays to have her yard mown
by ABC Law Service. Alice notices one day that an apparently new employee of ABC
is mowing Alice’s yard by mistake. She says nothing. When the employee asks for
payment, Alice refuses on the basis that the yard mowing was a mistake and that she
has no contract with ABC. Which of the following is true regarding whether ABC could
recover against Alice?
a. ABC likely has no rights against Alice.
b. ABC could recover against Alice based on breach of contract.
c. ABC could likely recover on a theory of quantum meruit.
d. ABC could likely recover against Alice based on a negligence theory.
Answer:
Terms that were once enforceable trademarks may become generic and thereby not
protected.
a. True
b. False
Answer:
In agreeing to act on behalf of the principal, the agent becomes a fiduciary.
a. True
b. False
Answer:
State laws imposing criminal sanctions for security law violations are called blue sky
laws.
a. True
b. False
Answer:
If a sales contract requires or authorizes the seller to ship goods by carrier, when does
the risk of loss pass to the buyer if the contract does not require delivery at a particular
destination?
a. At the time the goods are properly delivered to the carrier.
b. At the time the carrier tenders the goods to the buyer.
c. At the time the contract is initially entered into.
d. Not until the buyer has received the goods and had a chance to inspect them.
Answer:
The U.S. Constitution does not specifically provide for administrative agencies.
a. True
b. False
Answer:
__________ is the power to control prices or exclude competition in a relevant market.
a. Horizontal price-fixing
b. Vertical market division
c. A tying arrangement
d. Market power
Answer:
A partnership may acquire property in its own name.
a. True
b. False
Answer:
Laws enacted in response to corporate misdeeds often impose fewer restrictions and
costs on business than would have been imposed had firms as a whole acted more
responsibly at the outset.
a. True
b. False
Answer:
The need to file a lawsuit in each case and the complexity of the common law made
nuisance a cumbersome way to control environmental pollution in an industrialized
society.
a. True
b. False
Answer:
The __________ collects U.S. tariffs in this country.
a. U.S. Customs and Border Protection
b. Department of Commerce
c. International Trade Commission
d. U.S. Trade Representative
Answer:
The Fifth Amendment’s protection against self-incrimination applies to all records
including all those that the government requires to be kept.
a. True
b. False
Answer:
__________ by administrative agencies provide a practical decision-making process for
repetitive, frequent actions that are inappropriate to litigate in courts.
a. De novo decisions
b. Informal discretionary actions
c. Formal rule making
d. Informal rule making
Answer:
Only a licensed attorney can hold a power of attorney.
a. True
b. False
Answer:
Which of the following is true regarding private employer monitoring of employee
e-mail on company-owned equipment?
a. There is a federal law prohibiting private employers from monitoring employee
e-mail on company-owned equipment.
b. Most states have state laws prohibiting private employers from monitoring employee
e-mail on company-owned equipment.
c. Most states allow private employers to monitor employee e-mail on company-owned
equipment, but employees must first be warned that the e-mail will be monitored.
d. Most courts have upheld a private employer’s right to monitor employee e-mail on
company-owned equipment.
Answer:
According to the Systems Approach to Business and Society in Exhibit 1.1, the
__________ is at the center of the societal context.
a. Competitive Environment
b. Firm’s Resources
c. Public Law
d. Top Management Team
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. What crime had Beatrice committed?
a. Larceny
b. Embezzlement
c. Robbery
d. Both robbery and embezzlement
Answer:
Which of the following is true regarding breakup fees?
a. They are sometimes characterized as liquidated damages.
b. The Securities and Exchange Commission prohibits the payment of breakup fees.
c. Breakup fees are typically 20 to 25 percent of the value of the deal.
d. They are sometimes characterized as liquidated damages, and breakup fees are
typically 20 to 25 percent of the value of the deal.
Answer:
Another way of saying maximization of shareholder value is shareholder primacy.
a. True
b. False
Answer:
Under the arbitrary and capricious standard, if the agency has a choice between several
courses of action, a reviewing court will presume that the chosen course is:
a. invalid.
b. valid.
c. void.
d. voidable.
Answer:
Predatory pricing is the attempt to eliminate rivals by undercutting their prices to the
extent that their competitors lose money and go out of business.
a. True
b. False
Answer:
Under the doctrine of __________, when a person voluntarily and unreasonably
assumes the risk of a known danger, the manufacturer is not liable for any resulting
injury.
a. assumption of risk
b. comparative negligence
c. contributory negligence
d. assumption of harm
Answer:
What are the four primary ways in which an administrative agency functions?
a. Making rules, conducting formal adjudications, taking informal discretionary actions,
and conducting investigations.
b. Issuing notice, conducting formal adjudications, taking informal discretionary
actions, and conducting investigations.
c. Issuing notice, making rules, taking informal discretionary actions, and conducting
investigations.
d. Making rules, conducting informal adjudications, taking formal discretionary actions,
and conducting investigations.
Answer:
Which of the following is true regarding the relationship between law and ethics?
a. The law attempts to prohibit all “bad” behavior.
b. An action that is unethical is also considered illegal in the U.S.
c. The law prohibits all “morally objectionable” behavior.
d. An action that is unethical may nonetheless be legal.
Answer:
Which of the following is considered an inside director of a corporation?
a. A director who is also an officer of the corporation.
b. A director who is also an officer of any corporation.
c. A director who is both an officer of any corporation and who stands to personally
profit by an action being considered by the board.
d. A director who is qualified as an expert in regard to any product of the company.
Answer:
The “Inside Story” referenced the actions of Hewlett-Packard and its corporate spying
activities. What is the investigative technique called “pretexting”?
a. A practice whereby a person pretends to be someone else, typically over the
telephone, in order to obtain information.
b. A practice whereby a person pretends to be someone else, typically through a
personal visit, in order to obtain information.
c. A practice whereby a person induces someone, often an elderly person, to sign a
contract purchasing unneeded services.
d. A practice whereby a person induces someone, often an elderly person, to sign a
contract purchasing unneeded goods.
Answer:
Which of the following is NOT true regarding the plea of nolo contendere?
a. It means that the defendant contests the charges.
b. For the purposes of criminal proceedings, it is equivalent to a guilty plea.
c. It cannot be introduced at a subsequent civil trial.
d. It may be used by corporate defendants who anticipate civil suits based on the same
activity for which they face criminal charges.
Answer:
Which of the following is NOT part of the Howey test?
a. Scienter
b. An investment of money
c. Common enterprise
d. Profits obtained solely through the efforts of others
Answer: