The European Union takes a stricter view of vertical territorial restraints because of
their tendency to impede continent-wide market integration.
a. True
b. False
Answer:
___________ rules prescribe which law a state court should apply in a multi-state
litigation.
a. Conflict-of-dispute
b. Conflict-of-law
c. Litigant
d. Forum-shopping
Answer:
The case discussed in the text,Upjohn Co. v. United States, involved an attorney-client
privilege in the corporate setting. The U.S. Supreme Court crafted the __________ test
to determine whether the privilege applied.
a. Confidential Memo
b. Corporate Confidentiality
c. Corporate Counsel
d. Subject Matter
Answer:
Based on Exhibit 1.7, which of the following is NOT a way in which U.S. law promotes
consumer welfare?
a. Collect taxes and spend money
b. Promote sale of safe products and services
c. Facilitate innovative products and services
d. Prevent deceptive practices
Answer:
Law is not just a static external force acting upon managers and their firms; rather law
and organizations are “endogenously coevolutionary.”
a. True
b. False
Answer:
A third party beneficiary is someone who is not:
a. a legal and recognized type of beneficiary.
b. intended to benefit from the contract.
c. a party to the original contract.
d. intended to enforce the contract.
Answer:
Which of the following represents the general rule under rule 10b-5 in regard to the
duty of a company to reveal corporate developments?
a. A company has no general duty under Rule 10b-5 to reveal corporate developments
unless the company or its insiders (1) trade in securities or (2) recommend trading to
someone else.
b. A company has no general duty under Rule 10b-5 to reveal corporate developments
unless the company or its insiders (1) trade in securities, (2) recommend trading to
someone else, or (3) disclose the information as a tip while withholding it from the
general public.
c. A company has a general duty under Rule 10b-5 to reveal corporate developments
that are material.
d. A company had a general duty under Rule 10b-5 to reveal corporate developments if
it appears (1) that developments are material and (2) that the material developments will
have a negative effect on the company’s financial reports.
Answer:
If a sales contract requires the seller to ship the goods by carrier and specifies the
destination, the risk of loss passes to the buyer when the:
a. goods are properly delivered to the carrier.
b. carrier tenders the goods to the buyer at the specified destination.
c. contract is finalized.
d. seller pays for the goods.
Answer:
In theInternational Union United Automobile, Aerospace & Agriculture Implement
Workers of America, UAW v. Johnson Controls, Inc.case referenced in the text,employer
Johnson Controls had a ‘fetal protection policy’ that essentially barred women from
working in unsafe working environments unless the employee could medically
document herinability to bear children. How did the U.S. Supreme Court rule?
a. That the policy was a facially discriminatory policy forbidden under Title VII
because it did not also apply to the reproductive capacity of male employees.
b. That the policy was a facially discriminatory policy forbidden under Title VII unless
the employer had documented proof that the exposure would likely harm a developing
fetus.
c. That the policy was allowable under Title VII unless the female employee had
documented proof that the exposure would not likely harm a developing fetus.
d. That the policy was allowable under Title VII so long as the employer had a good
faith belief that the exposure would harm a developing fetus.
Answer:
Congress has made it a federal crime to engage in the extortionate extension of credit.
a. True
b. False
Answer:
The Fair Credit Reporting Act does not give consumers a right to have corrected copies
of their credit reports sent to creditors.
a. True
b. False
Answer:
In a criminal prosecution, which of the following is true regarding evidence that the
prosecution must share with the defendant?
a. The prosecution must share evidence that the defendant requests.
b. The prosecution must share any exculpatory evidence regardless of whether the
defendant requested it.
c. The prosecution must share evidence that the defendant requests, and the prosecution
must also share any exculpatory evidence regardless of whether the defendant requested
it.
d. The prosecution is not required to share any evidence with the defendant.
Answer:
A shareholder’s right of appraisal only applies to transactions that were initially subject
to shareholder approval.
a. True
b. False
Answer:
Which of the following is generally true regarding an award of lost future earnings in
discrimination cases?
a. Damages for lost future earnings are generally available so long as front pay is not
awarded.
b. Damages for lost future earnings may be awarded in addition to damages for front
pay.
c. Damages for lost future earnings are not available if either an award of back pay or
front pay is given.
d. Damages for lost future earnings are not available.
Answer:
In CASE 21.1 Lawson v. FMR, LLC (2014), the question before the U.S. Supreme
Court was whether the __________ Act whistleblower protections extended to
__________ of __________ contractors of __________ corporations.
a. Sarbanes-Oxley, employees, private, public
b. SEC 1934, employers, public, private
c. Private Securities Litigation Reform Act, employees, private, public
d. SEC 1933, employers, private, public
Answer:
Evidence found as the result of an illegal search may be characterized as:
a. irrelevant.
b. the fruit of the poisonous tree.
c. prosecutorial misconduct.
d. tainted goods.
Answer:
Customers can vote with their feet by boycotting unethical practices, such as clothing
made in sweatshops.
a. True
b. False
Answer:
Assumption of risk is a defense to the tort of negligence.
a. True
b. False
Answer:
After-acquired property is property that the debtor acquires after the repayment of a
loan under a security agreement.
a. True
b. False
Answer:
Evidence illegally obtained by the police in violation of the Fourth Amendment will be
excluded from trial whether or not the police acted in good faith.
a. True
b. False
Answer:
The Occupational Safety and Health Administration (OSHA) has safety requirements
but no requirements regarding recordkeeping.
a. True
b. False
Answer:
According to __________, social policies developed behind the veil of ignorance would
create a system benefiting the __________.
a. Rawls, majority
b. Rawls, minority
c. Rawls, least well off
d. Kant, most well off
Answer:
Which of the following is false regarding defenses to liability under CERCLA?
a. A defense to liability is that the release of hazardous substances was caused solely by
an act of God, such as an earthquake.
b. A defense to liability is that the release of hazardous substances was caused solely by
an act of war.
c. A defense exists for purchasers of brownfields, contaminated sites that are eligible for
cleaning and reclaiming with assistance from the Superfund.
d. A defense exists if the defendant is less than 50% at fault for the contamination.
Answer:
Fact Pattern 7-1
Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so
he asked Prudence if she would hold the offer open for him for one week for $50.
Prudence said sure, and the parties signed a contract to the effect that Prudence would
hold the car. A few hours later, Bobby unexpectedly offered Prudence $3,500 for the
car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he
came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back
telling him that was her only obligation and that if he had any complaints, he could take
it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it.
Refer to Fact Pattern 7-1. What damages, if any, could Danny likely collect against
Bobby in litigation over the car?
a. None
b. Reliance damages consisting of $500
c. Incidental damages consisting of $50
d. Compensatory damages consisting of $500
Answer:
__________ creditors must file a __________ stating the amount of their claim in a
form provided by the bankruptcy court within time periods established by the
jurisdiction in which the case if filed.
a. Unsecured, notice
b. Unsecured, proof of claim
c. Unsecured, automatic stay
d. Secured, reaffirmation agreement
Answer:
A case involving a federal question may be brought in state court, but the defendant has
the right to remove the case to federal court.
a. True
b. False
Answer:
__________ is a type of relationship building lobbying that is prevalent in China.
a. Xantu
b. Olaying
c. Guanxi
d. Quinta
Answer:
Which of the following is NOT true regarding the adoption of the policy that the
polluter pays?
a. The European Union has adopted the policy that the polluter pays.
b. Asia rejected the concept that the polluter pays.
c. Delhi, India has begun more strict enforcement of some laws based on the concept
that the polluter pays.
d. The U.S. environmental scheme adheres to the idea that the polluter pays.
Answer:
Which of the following is a term for the maximization of shareholder value?
a. Shareholder importance
b. Shareholder primacy
c. Value of shares maximization
d. Corporate allocation
Answer:
Exhibit 5 indicates that the protection of private property rights is one way to promote
economic growth within a society.
a. True
b. False
Answer:
Through the process of __________, a nation that was not an original party to a treaty
can elect to participate in a treaty at a later time.
a. ratification
b. accession
c. signing
d. approval
Answer:
Which of the following is true regarding state rules of corporate governance?
a. Under the U.S. Constitution, a state may only apply its corporate governance rules to
corporations incorporated in the state.
b. California imposes state pro-shareholder rules on quasi-foreign corporations.
c. There are no state rules of corporate governance because the Securities and Exchange
Commission has preempted the field.
d. By federal law, if a state wishes to impose corporate governance requirements on
corporations incorporated in the state, then the same rules must be imposed on
corporations operating in the state but incorporated in another state.
Answer:
If a country exerts nationalization over a company’s assets and does not provide
compensation, __________ has occurred.
a. expropriation
b. privatization
c. extraterritoriality
d. confiscation
Answer: