The Fair Labor Standards Act requires that, with some exceptions, every employee be
paid __________ for hours worked in excess of __________ hours in a workweek.
a. one and one-half the regular rate of pay; 40
b. two times the regular rate of pay; 40
c. one and one-half the regular rate of pay; 45
d. two times the regular rate of pay; 45
Answer:
In theCarmody v. Toll Bros., Inc. case discussed in the text, the Delaware Court of
Chancery analyzed the question of the legality of a dead-hand pill under Delaware law.
In striking down the dead-hand pill, the court ruled that:
a. the directors appropriately used the dead-hand pill which guaranteed that majority
shareholders in place before a hostile bidding attempt were entitled to vote to block any
later proposed vote on a merger.
b. the directors appropriately used the dead-hand pill because directors are entitled to
use any means necessary in order to block a hostile takeover.
c. the dead-hand pill violated the state general corporation law for a number of reasons
including that it violated the directors’ duty of loyalty.
d. the dead-hand pill, which could only be redeemed by directors in office after a hostile
bidder gained control or by their designated successors, violated the state general
corporation law because it prejudiced directors in place prior to the takeover.
Answer:
The __________ approach recognizes that “business decisions consist of continuous,
interrelated economic and moral components.”
a. procedural
b. systems
c. conciliatory
d. mandated
Answer:
The Resource Conservation Recovery Act imposes criminal sanctions for any person
who “recklessly” transports hazardous waste to a facility that does not have an EPA
permit.
a. True
b. False
Answer:
A judge is always compelled to follow Restatements of law in making a decision.
a. True
b. False
Answer:
In the case of a felony, many states require a preliminary hearing so the prosecutor can
present probable cause that the defendant committed the crime.
a. True
b. False
Answer:
A debtor does not have to show it is insolvent to file for bankruptcy.
a. True
b. False
Answer:
The Wool Products Labeling Act is an example of a federal law regulating the labeling
of clothing.
a. True
b. False
Answer:
Fact Pattern 10-1
Polly buys a new iron and uses it for a few months without incident. She was surprised,
however, when one day the iron gave her a significant shock. She suffered no lasting
damages, but did have some pain from the incident. A few weeks later she read in the
newspaper that the manufacturer had known for over a year about the iron’s propensity
to shock users, but had refused to take recall measures. She also read that some users
had been severely shocked. Polly was outraged but wondered if she could sue because
she really did not have significant injuries.
Refer to Fact Pattern 10-1. What type of damages would likely give Polly the most
significant recovery?
a. Punitive
b. Compensatory
c. Nominal
d. Benefit of the bargain
Answer:
In the __________ (1965) case, the U.S. Supreme Court first extended substantive due
process to the right to privacy, encompassing birth control and a woman’s reproductive
choice.
a. Roe v. Wade
b. Griswold v. Connecticut
c. Planned Parenthood v. Casey
d. Gonzalez v. Carhart
Answer:
Customary practice arises from legislative action.
a. True
b. False
Answer:
Which of the following is true regarding bioengineered insects and pathogens?
a. They are outlawed.
b. The Environmental Protection agency issues permits for bioengineered insects but
bioengineered pathogens are outlawed.
c. The Environmental Protection agency issues permits for bioengineered pathogens but
bioengineered insects are outlawed.
d. The Environmental Protection Agency issues permits for the use of bioengineered
insects and pathogens.
Answer:
In relation to food, which of the following is considered an additive?
a. Pesticide residue
b. Unintended environmental contaminants
c. Substances unavoidably added from packaging
d. Pesticide residue, unintended environmental contaminants, and substances
unavoidably added from packaging
Answer:
The erroneous admission at trial of a coerced confession will not always automatically
require that the conviction be overturned.
a. True
b. False
Answer:
The SEC itself has criminal enforcement power.
a. True
b. False
Answer:
The European Union, which had adopted the Kyoto Protocol, adopted a(n)
__________, which is a market based system that caps the amount of carbon dioxide
that companies are allowed to emit.
a. Cap-and-Trade System
b. Due Diligence Assessment
c. Superlien Strategic Environmental Management system
d. Random Cap-and-Audit System
Answer:
Based on Exhibit 1.9, which of the following is listed in the text as a component of
managing risk when assembling a team in business development?
a. Analyzing any covenants not to compete
b. Purposefully refusing to address issues such as sexual harassment
c. Informing employees that e-mail communications are not discoverable
d. Ignoring whistleblower protection
Answer:
What does the term “reverse piercing” reference in regard to a corporation and its
shareholders?
a. Holding a corporation liable for debts of a shareholder
b. Holding a shareholder liable for debts of a corporation
c. Holding a corporation liable for debts of a shareholder and holding a shareholder
liable for debts of a corporation
d. Holding a corporation liable for debts of a shareholder, holding a shareholder liable
for debts of a corporation, and holding officers liable for debts of a corporation.
Answer:
In order to arrive at an actual interest rate, a __________ is an amount added to the
bank’s theoretical cost of obtaining funds to lend.
a. spread
b. base
c. reference
d. security
Answer:
Based on various Supreme Court rulings, provisions in the Bill of Rights fundamental
to the “American scheme of justice” are applicable to the States via the __________
Amendment.
a. Tenth
b. Eleventh
c. Thirteenth
d. Fourteenth
Answer:
A state law that limits the maximum rate of interest that may be charged is called a(n)
__________ law.
a. interest
b. usury
c. rate
d. term
Answer:
A jury trial is not required in cases in which the authorized punishment for the charged
offense is six months or less.
a. True
b. False
Answer:
If the societal value of an inherently dangerous product outweighs the risk of harm from
its use, it is known as a(n) __________ product.
a. state-of-the-art
b. unavoidably unsafe
c. obvious risk
d. abnormal
Answer:
The tort of conversion requires that the defendant know that the goods belonged to the
plaintiff.
a. True
b. False
Answer:
The Class Action Fairness Act of 2005 moved many class actions from federal courts
into state courts.
a. True
b. False
Answer:
Leased workers are precluded from being considered employees of the company for
which they are doing work because they are on the payroll of an employment agency.
a. True
b. False
Answer:
Which of the following is true regarding a principal’s duty to pay unemployment taxes?
a. A principal must pay unemployment taxes for both an employee and an independent
contractor.
b. A principal must pay unemployment taxes for an independent contractor but not for
an employee.
c. A principal must pay unemployment taxes for an employee but not for an
independent contractor.
d. A principal is not required to pay unemployment taxes for either an employee or an
independent contractor.
Answer:
The Robinson-Patman Act prohibits:
a. certain price discrimination.
b. monopolies and attempts to monopolize.
c. every contract, combination or conspiracy in restraint of trade.
d. mergers that threaten competition.
Answer:
Matthew has filed for Chapter 7 bankruptcy relief. He had borrowed money from his
best friend, Rick, for the purchase of a car. Matthew really wants to repay Rick, but
does not want to jeopardize his bankruptcy relief and the discharge of a number of other
debts. What option, if any, is open to Matthew?
a. No options are open to Matthew because any payment to Rick would be considered a
voidable preference.
b. Matthew can reaffirm the debt to Rick, and the bankruptcy judge has no authority to
interfere in that decision.
c. Matthew can reaffirm the debt to Rick, but the bankruptcy judge has the authority to
disapprove of the agreement if the court finds that it is not in Matthew’s best interest.
d. Matthew can reaffirm the debt to Rick but only up to 50% of the maximum amount
owed, and the bankruptcy judge has the authority to disapprove of the agreement if the
court finds that it is not in Matthew’s best interest.
Answer:
Civil law systems are based on British law.
a. True
b. False
Answer:
Which of the following is NOT true regarding limited partnerships?
a. General partners of a limited partnership remain jointly and severally liable for
partnership obligations.
b. Limited partners assume no liability for partnership debts beyond the amount of
capital they contributed.
c. Limited partners are responsible for the management of the partnership.
d. Limited partnerships are often used to raise capital.
Answer:
In order to reflect the greater risk to the lender, secured loans are priced at a higher rate
than unsecured loans.
a. True
b. False
Answer: