In a litigation process, the party who files a complaint is called the ________.
A) bailiff
B) plaintiff
C) prosecutor
D) defendant
Conch Corporation, a global oil and gas company, plans to open a subsidized
postsecondary vocational school in the town of Cristen, where one of its offices is
situated. The plan is put to vote and then approved despite some objection from
shareholders. The school is being opened in collaboration with the local government. Its
objective is to help the youth of the neighborhood, especially dropouts, learn a
vocational skill. What social responsibility theory describes Conch Corporation’s move
to open the school?
A) moral minimum
B) maximizing profits
C) corporate citizenship
D) stakeholder interest
KCube Multimedia launches a new game. It permits Ken to download, install, and play
the game for three months. This is an instance of a(n) ________.
A) e-license
B) lease
C) domain name registration
D) digital signature
________ are courts that hear cases of a general nature that are not within the
jurisdiction of limited-jurisdiction trial courts.
A) Courts of record
B) Intermediate appellate courts
C) Inferior trial courts
D) State supreme courts
Altonvista Inc., a company based in California, is sued by a plaintiff from the state of
Texas. Which of the following statements is true in this scenario?
A) The case must be heard in the California federal court, as this is a subject matter in
which federal courts have exclusive jurisdiction.
B) If the plaintiff chooses to bring the case to the California federal court, it would stay
in the federal court.
C) If the plaintiff decides to bring the case to the California federal court, Altonvista
Inc. can have the case moved to a California state court.
D) The case can only be heard in a California state court, as the matter is not subject to
federal jurisdiction.
Which of the following is true of the Federal Trade Commission (FTC)?
A) The FTC can only sue in state courts.
B) The FTC’s decision can be appealed in a state court.
C) The FTC can sue to obtain compensation on behalf of the consumer.
D) The FTC is not allowed to directly disclose its findings to the public.
________ is the most widely used domain extension in the world.
A) .net
B) .com
C) .biz
D) .org
Which of the following is true of dual agency?
A) An undisclosed dual agent is allowed to retain compensations of the transaction
provided he or she discontinues the dual agency.
B) Examples of dual agents are finders and marketing intermediaries.
C) Dual agency is permitted if all parties in the transaction agree to it.
D) Dual agency is permitted as long as the interests of both principals are similar.
What is a fixture?
A) personal property so closely associated with real property that it becomes part of the
realty
B) an intangible asset created within the parameters of certain real property
C) a component of real property that is easily transferrable without substantial damage
to the real property
D) a tangible, physical item that cannot be classified as real property
Which of the following is true of Section 24 of the Securities Act of 1933?
A) It imposes civil liability on any person who violates Section 5 of the act.
B) It imposes criminal liability on any person who willfully violates either the act or the
rules and regulations adopted thereunder.
C) It imposes civil liability on a person who intentionally defrauds investors by making
a misrepresentation of a material fact in a registration statement.
D) It exclusively regulates the sale of securities online.
Martin, who wants to sell his house, authorizes his concierge, William, to find a
potential buyer and finalize a deal above a stipulated price. William contracts Chris, a
real estate broker, and intends him to only find a potential buyer and send him or her
over to William for the sale. Martin then contracts ReNowait Goodhouses, a home
improvement company, to renovate the house. ReNowait completes its work and Martin
pays the company. Chris then searches for a suitable buyer and finds one in George.
George buys the house and Chris is paid for his services. In this scenario, what role
does ReNowait Goodhouses perform?
A) agent
B) independent contractor
C) principal
D) trustee
How are ethical rules established in Kantian ethics?
A) by a set of universal rules that are based on consistency and reversibility
B) by following principles that have been derived from holy books
C) by an individual’s feelings on what is right and wrong
D) by choosing an alternative that is best for the society as a whole
A power of attorney is an example of an ________ agreement.
A) agency by ratification
B) apparent agency
C) express agency
D) implied agency
Helen is the vice-president of Gotspeed Corporation, a company that designs,
manufactures and sells sports shoes. Nestor, an independent entrepreneur, designs a new
shoe that helps the user’s foot grip the shoe better, and he calls it the Anklator. Nestor’s
friend schedules an appointment for him to meet Helen and present the Anklator for
possible adoption by Gotspeed. Instead of presenting the opportunity to Gotspeed’s
board of directors, Helen pays Nestor’s asking price and purchases the Anklator design
for herself. She then quits and forms her own company to manufacture and sell
Anklator shoes. Helen has breached her duty of loyalty to Gotspeed Corporation by
________.
A) self-dealing
B) usurping a corporate opportunity
C) making a secret profit
D) competing with the corporation
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
increasing pressure from shareholders to shut it down so as to balance the loss being
incurred by the shareholders. But closing the plant would be a blow to the employees as
they will lose their jobs, and the local suppliers will lose a major buyer. There is also
fear that the sudden closing of the plant will have an adverse effect on the community
of Kantron, as the plant is one of the main sources of employment for the locals. Steve
Templeton considered all these factors before making a decision on the fate of the plant.
If Steve Templeton decides to close the plant in Kantron, what important business social
responsibility will Steve Templeton accomplish?
A) moral minimum
B) corporate citizenship
C) maximizing profits
D) stakeholder interest
________ is a system in which each shareholder votes the number of shares he or she
owns on candidates for each of the positions open.
A) Cumulative voting
B) Straight voting
C) Supramajority voting
D) Trust voting
In states where an LLC may be organized by only one member, ________ can obtain
the benefit of the limited liability shield of an LLC.
A) corporations
B) sole proprietors
C) LLPs
D) general partnerships
Which of the following is true of employment discriminations defined under Title VII
of the Civil Rights Act of 1964?
A) Disparate-treatment discrimination can be proven through statistical data about an
employer’s employment practices.
B) Disparate-impact discrimination occurs when an employer adopts a work rule that is
neutral on its face but is shown to cause an adverse impact on a protected class.
C) Disparate-treatment discrimination occurs when an employer discriminates against
an individual of a protected class.
D) Sexual harassment and refusal to hire physically challenged employees are
illustrations of disparate-impact discrimination.
Which of the following is a difference between indictments and information
statements?
A) Indictments are issued before a trial, while an information statement is issued after a
trial.
B) Indictments are issued by a grand jury, while an information statement is issued by a
magistrate.
C) Information statements are issued to dismiss a case before it goes to trial, while an
indictment is issued to bring a case to trial.
D) Information statements are issued without determining guilt, while an indictment is
issued where guilt is evident.
The ________ is a federal statute, enacted in 1914, that regulates mergers and prohibits
certain exclusive dealing arrangements.
A) Sherman Act
B) Celler-Kefauver Act
C) Robinson-Patman Act
D) Clayton Act
Only private employers, and not governmental bodies, come under the purview of the
FLSA.
How are the justices of the U.S. Supreme Court appointed?
A) They are nominated by the President and confirmed by the Senate.
B) They are appointed by the President of the United States.
C) They are nominated and confirmed by the chief justice of the Supreme Court.
D) They are nominated by the associate justices and confirmed by the chief justice.
A contract involving mutual mistake of value is ________.
A) rescindable
B) ambiguous
C) enforceable
D) void
If a third party promises to be primarily liable for the payment of the borrower’s debt,
this is referred to as ________.
A) garnishment
B) subrogation
C) a surety arrangement
D) a guaranty arrangement
The ________ is a federal statute that authorizes the EPA to regulate facilities that
generate, treat, store, transport, and dispose of hazardous wastes.
A) Resource Conservation and Recovery Act (RCRA)
B) Clean Water Act
C) Toxic Substances Control Act
D) Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA)
Which of the following is the only act that includes criminal sanctions for unfair trade
practices?
A) the Clayton Act
B) the Sherman Act
C) the Robinson-Patman Act
D) the Federal Trade Commission Act
The ________ Clause of the U.S. Constitution collectively prohibits states from
enacting laws that unduly discriminate in favor of their residents.
A) Due Process and Dormant Commerce
B) Equal Protection
C) Establishment
D) Privileges and Immunities
Which of the following terms refers to an unconditional and absolute offer by a
contracting party to perform his or her obligations under a contract?
A) injunction
B) writ of garnishment
C) tender of performance
D) writ of attachment
A(n) ________ is a flexible standard for defining a security.
A) red herring prospectus
B) investment contract
C) certificate of interest
D) debenture
Land as well as buildings, trees, soil, minerals, timber, plants, and other things
permanently affixed to the land are known as ________ property.
A) intellectual
B) intangible
C) personal
D) real
Private civil actions are permitted under the FLSA.
________ refers to a condition that requires the occurrence of an event before a party is
obligated to perform a duty under a contract.
A) Condition precedent
B) Condition subsequent
C) Concurrent condition
D) Implied condition
The ________ branch of the government has the power to interpret and determine the
validity of the law.
A(n) ________ is a distinctive mark, symbol, name, word, motto, or device that
identifies the goods of a particular business.
The NEPA and EPA regulations require that a(n) ________ be prepared by the federal
government for any proposed legislation or major federal action that significantly
affects the quality of the natural and human environment.
A lawsuit where a group of plaintiffs with common claims collectively brings a lawsuit
against a defendant is known as a(n) ________.
The ________ refers to a model act that includes comprehensive laws that cover most
aspects of commercial transactions.
What are the measures taken to protect wetlands in the United States?
What is a lease?
List and explain the types of strikes that are considered unlawful under federal labor
law.
A(n) ________ mark confirms that a seller of a product or service has met certain
geographical location requirements, quality standards, material standards, or mode of
manufacturing standards established by the owner of the mark.
The Federal Trade Commission (FTC) created and administers the ________, on which
consumers can place their telephone numbers and free themselves from most
unsolicited telemarketing and commercial telephone calls.
Explain in brief the standards concerning contracts of mentally incompetent persons.
It is illegal for a strike to take place in violation of a negotiated ________ clause.
________ of the Uniform Commercial Code (UCC) is the basic Statute of Frauds
provision for sales contracts.
The ________ is a federal agency that is created by the Securities Exchange Act of
1934 and is empowered to administer federal securities laws.
What are the powers of the Consumer Product Safety Commission (CPSC)? Name
some consumer products excluded from the purview of the CPSC.
Explain the process of copyright registration.
A(n) ________ contract is only valid once the offeree performs the requested act.
The ________ is a treaty between the United States, Mexico, and Canada to create a
free trade zone between the three countries.
Explain the role of recording statutes in real property contracts.
A(n) ________ asserts that based on supporting evidence outside the pleadings, there
are no factual disputes to be decided by the jury, and the judge should apply the relevant
law to the undisputed facts and decide the case.