The U.S. Supreme Court struck down Arizona’s “Legal Arizona Worker’s Act of 2007”
because it went beyond the Immigration Reform and Control Act’s savings clause which
preempts states from imposing civil or criminal sanctions on employers hiring aliens
other than through licensing or similar laws.
a. True
b. False
Answer:
The Free Exercise Clause prohibits all restrictions on the practice of religion.
a. True
b. False
Answer:
The Resource Conservation and Recovery Act bans the disposal of hazardous wastes
onto land without treatment to render them less hazardous.
a. True
b. False
Answer:
Courts in a minority of states have recognized a bad-faith exception to the at-will
employment relationship called the:
a. implied covenant of good faith and fair dealing.
b. imposed contract of fair treatment.
c. imposed contract of fair treatment and ethical conduct.
d. implied obligation of fairness and ethics.
Answer:
Fact Pattern 18-1
Prudence wants to develop a shopping center in her town. She is very interested in
developing the center at the location of an old dump. She can purchase the property
cheaply, and it is near one of the fastest growing areas of the city. She is concerned,
however, about being held liable for all cleanup costs. She has heard about federal and
state funds that may be available; but she is concerned that if she purchases the property
knowing that contamination is likely there, she will not be eligible to participate in
government assistance programs for cleanup. She decides to discuss her problem with
Bruce, a law student studying environmental law.
Refer to Fact Pattern 18-1. Which of the following is a term used for the dump in which
Prudence is interested?
a. Black area
b. Brownfield
c. Red zone
d. Danger zone
Answer:
Which of the following is NOT one of the three branches of government?
a. The legislative branch
b. The judicial branch
c. The administrative branch
d. The executive branch
Answer:
Tina, in-house counsel for a start-up company, is asked what the company must do if it
plans to offer securities for sale only outside the U.S. What advice should she give in
relation to the application of Section 5/Regulation S registration requirements?
a. According to SEC Regulation S, so long as the company is incorporated in the U.S.,
all aspects of Section 5 apply, and that any offer or sale outside the U.S. is subject to the
federal registration requirements.
b. According to SEC Regulation S,offers or sales outside the U.S. are not subject to
federal registration requirements so long as only accredited investors are involved but
that, otherwise, any offer or sale is subject to the federal registration requirements.
c. According to SEC Regulation S, offers or sales outside the U.S. are not subject to
federal registration requirements so long as only accredited investors are involved and
no more than $5 million in sales are made but that, otherwise, any offer or sale is
subject to the federal registration requirements.
d. According to SEC Regulation S, offers and sales outside the U.S. are not subject to
Section 5 registration requirements.
Answer:
Caveat emptor means:
a. “let the buyer beware.”
b. “let the buyer prevail.”
c. “let the market decide.”
d. “let the seller beware.”
Answer:
In thePrice Waterhouse v. Hopkins case referenced in the text, a female was denied
partnership in an accounting firm after being told that to improve her chances for
partnership, she should walk more femininely, talk more femininely, dress more
femininely, wear make-up, have her hair styled, and wear jewelry. How did the U.S.
Supreme Court rule?
a. That the employer committed sexual stereotyping constituting illegal discrimination.
b. That the employer committed sexual stereotyping, but that such stereotyping did not
constitute illegal discrimination.
c. That the employer committed sexual stereotyping but that in such cases, only
nominal (minimal) damages are available.
d. That while such statements constituted sexual stereotyping, the employer could avoid
liability if it could show that it had received client complaints regarding the female’s
masculine-type qualities.
Answer:
Under no circumstances do controlling shareholders owe fiduciary duties to other
shareholders.
a. True
b. False
Answer:
Spoken defamation is known as:
a. libel.
b. slander.
c. malicious intent.
d. invasion of privacy.
Answer:
A __________ is used in conjunction with services.
a. certification mark
b. trademark
c. service mark
d. trade name
Answer:
The general rule is that agency action is ripe for judicial review when the impact of the
action is sufficiently direct and immediate as to make review appropriate.
a. True
b. False
Answer:
Failure to comply with environmental laws can result in civil fines but not criminal
penalties.
a. True
b. False
Answer:
In evaluating a buyout proposal, the directors should consider material nonprice
provisions of the proposed agreement.
a. True
b. False
Answer:
The conveyance of a(n) __________ interest conveys absolute ownership of real
property.
a. fee absolute
b. ownership unlimited
c. total ownership
d. fee simple
Answer:
If parties to a contract dispute a missing term, the court could simply fill-in the missing
term using the __________ provisions of the UCC.
a. Gap-Filler
b. Conditional Acceptance
c. Battle of the Forms
d. Knockout Rule
Answer:
According to the text, most advertisements are treated as offers, rather than as
invitations to negotiate.
a. True
b. False
Answer:
The Securities Act of 1934 requires continuous disclosure of certain information
regarding publicly traded securities.
a. True
b. False
Answer:
An agreement between two parties that provides that the buyer will buy all of a
particular product from a particular seller is called a(n):
a. illusory promise.
b. requirements contract.
c. output contract.
d. fulfillment contract.
Answer:
TheUnited States v. Stein case referenced in the text, addressed the question of whether
the constitutional rights of the defending accountants were violated when the
government pressured their former employer into ending its policy of paying attorney
fees. How did the Court rule?
a. The actions of the government violated the constitutional rights of the defendants
resulting in the dismissal of indictments against defendants.
b. The actions of the government violated the constitutional rights of the defendants but
the indictments issued against them were not dismissed.
c. The actions of the government did not violate the constitutional rights of the
defendants, primarily because white collar crime was involved.
d. The actions of the government did not violate the constitutional rights of the
defendants because the defendants could afford to pay their own attorneys.
Answer:
The Clean Water Act is inapplicable to ponds that are not adjacent to open water.
a. True
b. False
Answer:
A shareholder who cannot be present at a meeting can vote by __________, that is, by a
written authorization for another person to vote on his or her behalf.
a. proxy
b. allowance
c. record
d. nomination
Answer:
In cases involving transactions via the internet, the courts have adopted a ‘sliding scale’
to determine whether they can exercise personal jurisdiction.
a. True
b. False
Answer:
Which of the following is true regarding India’s discrimination protection?
a. Indian anti-discrimination law has developed quickly since the implementation of the
Indian Constitution.
b. Because of strongly held citizen beliefs, the Indian government has not taken action
in regard to the employment of lower caste members.
c. The Indian Supreme Court recognized sexual harassment in the workplace as a
personal injury to the affected woman and a violation of her fundamental human rights.
d. While India has not indicated a significant interest in protecting the rights of women,
the India Supreme Court issued a specific directive prohibiting age discrimination.
Answer:
The __________ is used when judges decide a case where there are no constitutional,
statutory, or regulatory holdings to resolve the dispute.
a. English law
b. Civil law
c. Common law
d. Disputed law
Answer:
A(n) __________ is a public offer to all the __________ of a(n) __________
corporation to buy their shares at a stated price, usally __________ than the market
price.
a. tender offer, shareholders, target, higher
b. leveraged buyout, shareholders, target, higher
c. tender offer, directors, acquiring, below
d. tender offer, shareholders, target, below
Answer:
A fundamental element of the U.S. scheme of pollution control is the policy that the
polluter pays.
a. True
b. False
Answer:
According to Exhibit 2.1 “Ethical Business Leader’s Decision Tree”, which of the
following is the first question managers should ask themselves when determining
whether a proposed action is ethical?
a. Whether it will result in a loss of profits
b. Whether stockholders would approve
c. Whether the CEO would approve
d. Whether it is legal
Answer:
An invention will be denied patent protection if its novelty merely represents an
obvious development over existing technology, also referred to as prior art.
a. True
b. False
Answer:
The main issue in CASE 8.1 Option Wireless, Ltd. v. OpenPeak, Inc. (2012)involved the
so-called “knockout rule.”
a. True
b. False
Answer:
In the classic case, Palsgraf v. Long Island Railroad (1928) discussed in the text, the
court denied Mrs. Palsgraf’s claim of negligence on the ground thather injuries were
__________, therefore the railroad employee’s actions were not __________ of her
injuries.
a. not foreseeable, proximate cause
b. not foreseeable, actual cause
c. the actual cause, representative
d. not foreseeable, the intentional factor in the claim
Answer:
The two coexisting federal and state judicial systems are a result of the system of
__________ created by the U.S. Constitution, giving them different __________
jurisdiction.
a. standing, subject matter
b. diversity, in personam
c. duality, in rem
d. federalism, subject matter
Answer:
A master-servant agency is a type of modern day slavery that is illegal.
a. True
b. False
Answer: