Jorge, a forklift truck operator for the retail chain Hanes Ridge, was injured when the
forklift he was operating toppled over. The forklift truck was designed and
manufactured by Ionic Machines, Inc. Jorge received workers’ compensation benefits
for his injury. It was later determined that the forklift truck was not designed to be used
to lift as much weight as Ionic Machines claimed it could. To which of the following
legal rights is Jorge entitled?
A) sue Hanes Ridge in civil court for his work-related injuries
B) sue Hanes Ridge in federal court for violation of the Fair Labor Standards Act
(FLSA)
C) sue Ionic Machines in civil court for damages
D) Jorge cannot sue either Hanes Ridge or Ionic Machines, since he has already
received workers’ compensation benefits
A computer program or an electronic or other automated means used independently to
initiate an action or respond to electronic records or performances in whole or in part,
without review or action by an individual, is known as a(n) ________.
A) electronic agent
B) electronic record
C) firewall
D) operating system
A(n) ________ is a person who discloses material nonpublic information to another
person.
A) issuer
B) tippee
C) grantor
D) tipper
Consistency is one of the two important principles of ________ upon which its
universal laws are based.
A) utilitarianism
B) Kantian ethics
C) Rawls’s social justice theory
D) moral relativism
The U.S. Supreme Court is composed of ________ justices.
A) nine
B) six
C) ten
D) three
Ordinances are codified laws that are issued by ________.
A) the president
B) the state legislature
C) the Supreme Court judges
D) local government bodies
Which of the following courts are the federal court system’s trial courts of general
jurisdiction?
A) U.S. district courts
B) U.S. Tax Courts
C) U.S. courts of appeals
D) U.S. courts of federal claims
Which of the following cases is an example of agreement of ethics and laws?
A) a company outsourcing its work to a foreign country to take advantage of cheap
labor
B) a person being penalized for bribing a judge to rule a case in the person’s favor
C) a company not spending more to keep its emission rates below the legal standard
D) a person hiring an illegal alien worker whose family is destitute
Which of the following scenarios makes Tim liable for undue influence?
A) He uses a false identity, borrows $10,000 from Kelly, and disappears with the
money.
B) He threatens to kill Carlos if Carlos does not sign a contract that transfers all his
property to Tim.
C) He takes advantage of his grandmother’s illness and persuades her to sign a will,
leaving all of her property to him.
D) He threatens to bring a lawsuit against Carlos if Carlos does not make him a partner
in his firm.
Steve Templeton, the CEO of Rolland Motor Company, is contemplating the shutdown
of a plant in Kantron. The plant has been unprofitable for some time now, and there is
an increasing pressure from shareholders to shut it down so as to balance the loss being
incurred by the shareholders. Closing the plant would result in the employees losing
their jobs and the local suppliers losing a major buyer. It will also have an adverse
effect on the community of Kantron as the plant is one of the main sources of
employment for the locals. Steve considers all these factors before deciding the fate of
the plant. After considering all the factors, if Steve finds that the loss to the employees
and the community is far greater than that incurred by the shareholders and decides to
keep the plant open, which of the following moral theories matches Steve Templeton’s
approach to the situation?
A) Kantian ethics
B) Rawls’s social justice theory
C) ethical fundamentalism
D) utilitarianism
Which of the following is the goal of Chapter 11?
A) equitable distribution of the bankruptcy estate to all creditors
B) strict distribution of the bankruptcy estate according to the statutorily-prescribed
order of distribution to creditors
C) discharge of the debtor’s unsecured debts and payment of secured debts
D) a proposed new capital structure for the debtor to assume when it emerges from
bankruptcy
What does the E-SIGN Act provide?
A) Contracts delivered electronically are denied effect.
B) Electronic records can be sent to consumers who make a purchase, without their
specific consent to receiving the record.
C) An e-signature is treated the same as a pen-inscribed signature.
D) Only smart card verification creates a legally binding signature in cyberspace.
Which of the following information should a certificate of limited partnership contain?
A) the latest date of dissolution of the partnership
B) a clause to not accept new general partners
C) the name of the party who becomes a general partner in the event of transfer
D) the scope of potential business opportunities and related investment
According to the Economic Espionage Act, ________.
A) persons who have reverse-engineered a trade secret can use that trade secret and the
related trademark
B) it is a federal crime to steal another’s trade secret
C) the rights to a trade secret must be renewed after a specified period of time
D) trade secrets can be shared for a limited amount of time
Suppose Lisa owns 1,000 shares of a corporation. Assume that four directors are to be
elected to the board. With ________ voting, Lisa can multiply the number of shares she
owns (1,000) by the number of directors to be elected (four), and she can cast all the
resulting votes (4,000) for one candidate or split them among candidates as she
determines.
A) supramajority
B) noncumulative
C) cumulative
D) preemptive
The ________ is a federal administrative agency that is primarily responsible for
regulating the safety of meat, poultry, and other food products.
A) U.S. Department of Agriculture
B) Consumer Product Safety Commission
C) Food and Drug Administration
D) Federal Trade Commission
The certificate of interest acts the same as a(n) ________ issued by a corporation.
A) promissory note
B) stock certificate
C) deposit note
D) initial public offer
A contract is said to have legal value if ________.
A) both the promisor and the promisee receive a legal benefit
B) the promisor suffers a legal detriment
C) the promisee suffers a legal detriment
D) the promisee receives a legal benefit
________ requires lawsuits to be heard by the court with jurisdiction that is nearest to
the location where the incident occurred or where the parties reside.
A) Jurisdiction
B) Venue
C) Circuit
D) Doctrine of stare decisis
Which of the following best describes a wildcat strike?
A) Union members occupy the employer’s premises while striking.
B) Union members strike part of the day or workweek and work the other part.
C) Individual union members go on strike without proper union authorization.
D) The union declares an indefinite cessation of work.
Which of the following statements is true of an agent taking an opportunity?
A) An agent can legally take an opportunity to which the principal is entitled.
B) A third-party offer to an agent need not be conveyed to the principal.
C) An agent cannot appropriate an offer for himself or herself once the principal rejects
it.
D) A principal is permitted to recover for a usurped opportunity taken by the agent.
Which of the following has the largest trading volume of any securities exchange in the
world?
A) the NYSE
B) Euronext
C) NASDAQ
D) the London Stock Exchange
Whistle Cabs, a taxi service company, has been ordered by the traffic department to
upgrade its taxi meters to digital ones. Whistle Cabs contemplates a sales contract with
Running Electricals, a company that manufactures digital taxi meters. Due to short
notice from the city and a lack of funding, however, Whistle Cabs instead approaches
Goldmint Bank, which purchases the digital taxi meters from Running Electricals and
delivers them to Whistle Cabs. The contract between Whistle Cabs and Goldmint Bank
allows the taxi service company to use the taxi meters for a set period of time by
providing monthly rentals. What is the nature of the contract made between Whistle
Cabs and Goldmint Bank?
A) a counteroffer
B) a lease
C) a sale of goods
D) an option contract
The Nutrition Labeling and Education Act (NLEA) applies to packaged foods and other
foods regulated by the ________.
A) U.S. Department of Agriculture
B) Consumer Product Safety Commission
C) Patient Protection and Affordable Care Act
D) Food and Drug Administration
The ________ is a federal statute that authorizes the EPA to establish national primary
drinking water standards.
A) Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA)
B) Federal Water Pollution Control Act (FWPCA)
C) Clean Water Act
D) Safe Drinking Water Act
Which of the following statements is true of the U.S. Supreme Court?
A) The U.S. Supreme Court’s decisions are appealable.
B) The U.S. Supreme Court hears appeals only from the federal circuit courts of
appeals.
C) The U.S. Supreme Court does not hear any new evidence or testimony in reviewed
cases.
D) The U.S. Supreme Court does not grant any oral hearings to the parties.
Which of the following is provided by the National Labor Relations Act of 1935?
A) regulation of the internal affairs of each union
B) employee representation according to their sectors of employment
C) collective bargaining with employers
D) equal representation for every union member
Which of the following types of patents is valid for only 14 years?
A) a design patent
B) a utility patent
C) a process patent
D) a business method patent
According to the Environmental Protection Agency (EPA), the air inside a building is
typically the safest, as it is free from pollution.
Which of the following is a form of co-ownership that disallows the right of
survivorship and allows unilateral transfer of interest?
A) tenancy in common
B) joint tenancy
C) cooperatives
D) tenancy by the entirety
Which of the following statements is true of e-mail contracts?
A) All e-mail contracts require consideration, capacity, and lawful object.
B) E-mail contracts are exempted from the requirements of the Statute of Frauds.
C) E-mail contracts are enforceable even if they do not meet the requirements of a
traditional contract.
D) Several e-mails cannot be integrated to determine the parties’ agreement.
A corporation is referred to as a(n) ________ corporation in the state in which it was
formed.
A) foreign
B) domestic
C) alien
D) multinational
________ include environmental laws, securities laws, and antitrust laws that provide
for criminal violations and penalties.
A) Constitutions
B) Regulatory statutes
C) Resolutions
D) Charters
A(n) ________ is a patent that protects the functionality of an invention.
The ________ allowed all credit-card companies with whom a cardholder had a credit
card to raise the interest rate on his or her card, including on the existing balances, if the
cardholder was late in making a payment to any credit card company.