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The World Trade Organization (WTO) dispute settlement body is the first body to hear
a settlement dispute among member nations.
The manufacturer or seller is not liable if a product is materially altered or modified
after it leaves the seller's possession and the alteration or modification causes an injury.
The concept of federal law taking precedence over state or local law is called the
preemption doctrine.
The Due Process Clause of the Fifth Amendment to the U.S. Constitution requires the
government to compensate the property owner when it exercises the power of eminent
domain.
Properties owned by state and federal governments are subject to the doctrine of
adverse possession.
The election of directors of the corporation can be held by electronic transmission.
The Due Process Clause of the U.S. Constitution grants Congress the power "to
regulate commerce with foreign nations, and among the several states, and with Indian
tribes."
A registration statement need not contain details on how the proceeds from the offering
will be used.
An e-record is a record created, generated, sent, communicated, received, or stored by
electronic means.
The Americans with Disabilities Act applies only to places of accommodation operated
by public entities.
The Securities Act of 1933 requires that before a corporation or another business sells
securities to the public, the issuer must file a registration statement with the Securities
and Exchange Commission (SEC).
A sole proprietorship does not pay taxes at the business level.
Kant believed that people owe moral duties that are based on universal rules.
Convertible preferred stock permits the preferred stockholders to convert their shares
into common stock.
According to the equal dignity rule, agents' contracts to sell property covered by the
Statute of Frauds must be in writing to be enforceable.
If a defendant is found not guilty in a criminal case, the government can retry the case
with a new jury.
The case against the accused is dismissed if neither an indictment nor information
statement is issued.
Defective formation of a limited partnership occurs when a certificate of limited
partnership is not properly filed.
Substantial performance of a contract constitutes a material breach.
Statutes often establish duties owed by one person to another.
The case against the accused is dismissed if neither an indictment nor information
statement is issued.
Section 12 of the Securities Act of 1933 provides purchasers who have been injured by
securities pursuant to an unwarranted exemption to rescind the securities purchase.
A service mark is used to distinguish the product of the holder from those of its
competitors.
Warrantless searches are permitted when it is likely that evidence will be destroyed.
The WARN Act is a federal law that requires employers with one hundred or more
employees to give their employees sixty days' notice before engaging in certain plant
closings or layoffs.
If a person did not have knowledge that his representation of facts was false, he is still
liable for fraud.
A nation can seek redress on behalf of an individual or a business that has a claim
against another country in the International Court of Justice (ICJ).
A bystander who suffers severe emotional distress on witnessing a heinous crime can
claim damages for intentional infliction of emotional distress.
In a landlord-tenant relationship, the tenant receives a nonfreehold estate in the real
property.
Intentional misrepresentation occurs when a wrongdoer deceives another person out of
money, property, or something else of value.
In an agency by ratification, the agent is relieved of any liability for misrepresentation.
Drafts that have a maturity date of six months are exempt from registration with the
SEC.
Registering a domain name of another party's trademarked name or famous person's
name is called cybersquatting.
An easement is an example of a nonpossessory interest in another's real property.
A(n) ________ refers to a document that an issuer of securities files with the Securities
and Exchange Commission (SEC) that contains required information about the issuer,
the securities to be issued, and other relevant information.
A) article of organization
B) operating statement
C) registration statement
D) certificate of interest
Regulation Z is an administrative agency regulation that sets forth detailed rules for
compliance with the ________ Act.
A) Fair Credit Reporting
B) Truth-in-Lending
C) Fair Credit Billing
D) Fair Debt Collection Practices
When is a criminal said to be judgment proof?
A) when the criminal has not been read his Fifth Amendment rights prior to his arrest
B) when the criminal does not have the money to pay a civil judgment
C) when the criminal is found to be unfit to go to prison
D) when the criminal has been deemed to be insane
Which of the following is the broadest standard for holding accountants liable to third
parties for negligence?
A) Section 552 of the Restatement (Second) of Torts
B) the foreseeability standard
C) the Ultramares doctrine
D) the due diligence doctrine
Which of the following constitutes an agency?
A) a principal-agent relationship
B) an agent-agent relationship
C) a principal-principal relationship
D) an agent-independent contractor relationship
If a worker in the ordinary course of business furnishes services or materials to
someone with respect to goods and receives a lien on the goods by statute, this is known
as a(n) ________ lien.
A) subordinate
B) floating
C) artisan's
D) judgment
The North American Free Trade Agreement (NAFTA) has eliminated or reduced most
of the duties, tariffs, quotas, and other trade barriers among Mexico, the United States,
and Canada.
Which of the following is true of a business operating under sole proprietorship?
A) It is not considered a separate legal entity.
B) It cannot be sold when the owner decides to do so.
C) It requires governmental approval when being transferred.
D) It has access to unrestricted capital by means of investments.
An agency that occurs when a principal and an agent categorically agree to enter into an
agency agreement with each other is known as an ________.
A) agency by ratification
B) implied agency
C) apparent agency
D) express agency
________ is a form of bankruptcy in which the debtor's nonexempt property is sold for
cash, the cash is distributed to the creditors, and any unpaid debts are discharged.
A) An abusive filing
B) Dissolution of debt
C) Liquidation
D) Reorganization
Which of the following bankruptcy methods allows the reorganization of the debtor's
financial affairs under the supervision of the bankruptcy court?
A) Chapter 7
B) Chapter 9
C) Chapter 11
D) Chapter 12
________ is a law that prohibits any manipulative or deceptive practice in connection
with the purchase or sale of a security.
A) Section 11(a) of the Securities Act of 1933
B) Section 32(a) of the Securities Exchange Act of 1934
C) Section 10(b) of the Securities Exchange Act of 1934
D) Section 101 of the Uniform Securities Act
Jones & Hilton Co. owned a large cold storage warehouse where they stored and
processed meat and meat products. An insider revealed to the media that the facility
failed to meet numerous safety standards, encountered rodent infestation, and sold
potentially harmful and infected meat in the market without notifying authorities. The
________ has the authority to conduct inspections of the cold storage warehouse and
initiate legal proceedings against the owners for endangering the health of consumers.
A) Food and Drug Administration
B) Consumer Product Safety Commission
C) Federal Healthcare Commission
D) U.S. Department of Agriculture
According to the doctrine of strict liability, which of the following parties is strictly
liable for injuries caused by a defective product?
A) only the manufacturers of the products
B) only the parties directly involved in the sale of the product to the customer
C) all parties providing services related to the product
D) all parties in the chain of distribution
Only ________ workers were allowed to belong to the American Federation of Labor.
A) skilled craft
B) unskilled
C) literate
D) illiterate
What is a backward vertical merger?
A) a vertical merger between two or more companies that compete in the same business
and geographical market
B) a vertical merger between two companies in similar fields whose sales do not
overlap
C) a vertical merger in which a supplier acquires a customer
D) a vertical merger in which a customer acquires a supplier
Who among the following are exempt from child labor restrictions in the United States?
A) children who work as retail store clerks
B) children who work in fast-food restaurants
C) children employed as actors and performers
D) children employed at gasoline stations
The ________ rule states that acceptance is effective when it is dispatched, even if it is
lost in transmission.
A) silence-as-acceptance
B) mirror image
C) mailbox
D) mutual assent
The ________, as amended by the Veterans' Benefits Act of 2010, is a federal statute
that applies to all civilian and government employers in the United States and U.S.
employers operating in foreign countries.
A) EEOC
B) FEPA
C) USERRA
D) OWBPA
________ income is defined as current monthly income less amounts reasonably
necessary to be expended for the maintenance or support of the debtor and the
dependants of the debtor.
A) Disposable
B) Discernible
C) Fungible
D) Tangible
A(n) ________ is an example of real property.
A) building
B) patent
C) automobile
D) framed painting
Which of the following is considered real property?
A) a fixture permanently affixed to a building
B) fifty-one percent partnership in a firm
C) a car
D) diamond jewelry
Business Unlimited Corporation employs Harriet as its marketing manager. Harriet is
driving her automobile to attend a meeting with a client on behalf of her employer. On
her way to the meeting, Harriet is involved in an automobile accident that is caused by
her negligence. Several people are seriously injured because of Harriet's negligence.
Which of the following is an accurate statement regarding liability to the injured
parties?
A) Harriet is not liable, as she was acting within the course and scope of her
employment at the time of the accident.
B) Business Unlimited Corporation is not liable, since the accident did not occur on
company property.
C) Harriet is personally liable to the injured parties but Business Unlimited Corporation
is not, as they did not control Harriet's actions at the time of the accident.
D) Harriet is personally liable to the injured parties, and Business Unlimited
Corporation is also liable because Harriet was acting within the scope of her
employment when the accident occurred.
Which of the following is a form of alternative dispute resolution?
A) pretrial hearing
B) settlement conference
C) appeal
D) mediation
Which school of jurisprudence bases its principles, for solving legal disputes, on broad
notions of fairness, and subjective decision making by judges?
A) the Natural Law School of jurisprudence
B) the Analytical School of jurisprudence
C) the Critical Legal Studies School of jurisprudence
D) the Sociological School of jurisprudence
________ are mergers between firms in totally unrelated businesses.
A) Market extension mergers
B) Conglomerate mergers
C) Horizontal mergers
D) Forward vertical mergers
The ________ Clause of the U.S. Constitution prevents the government from enacting
laws that either prohibit or inhibit individuals from participating in or practicing their
chosen religions.
A) Due Process
B) Privileges and Immunities
C) Establishment
D) Free Exercise
The act of other interested parties joining as parties to an existing lawsuit is termed as
________.
A) intervention
B) consolidation
C) class action
D) arbitration
The FLSA applies to ________.
A) state government employees
B) federal government employees
C) employees engaged in the production of goods for interstate commerce
D) self-employed U.S. citizens
What is a recognizance?
A) a sealed document that contains a formal contract whose contents are known to both
parties and the referee who supervised its signing
B) a party's agreement to pay a sum of money if another person does not pay it
C) a party's acknowledgement in court that he or she is not liable to pay money if a
certain event occurs
D) a sealed document that contains an informal contract whose contents are known only
to the parties
Martin wins a car in a lottery. As he already owns a car, he decides to sell the new one
to his friend Ted. While driving the car, Ted gets into a head-on collision with another
car. Due to a defect in the vehicle's Supplemental Restraint System (SRS), the airbag
does not deploy and Ted is seriously injured. Which of the following statements is true
of this situation?
A) Martin can be held strictly liable because he sold the car to Ted.
B) The car manufacturer cannot be held strictly liable as Ted had not bought the car
from them.
C) Martin cannot be held strictly liable as the sale of the car counts as a casual
transaction.
D) The driver of the other car can be held strictly liable due to his or her involvement in
the accident.
Which of the following would constitute false advertising under the FTC Act?
A) sales talk
B) unsubstantiated claims
C) minimal commercial speech
D) statements of opinion
The term ________ refers to a party who is granted limited rights in or access to
intellectual property or information rights owned by a licensor.
Explain the creation and working of guaranty contracts.
A duty that a principal owes to pay an agreed-upon amount to the agent either upon the
completion of the agency or at some other mutually agreeable time is known as a
principal's ________.
Give an account of the regulation of medicinal devices in the United States.
A system in which a shareholder can accumulate all of his or her votes and vote them
all for one candidate or split them among several candidates is known as ________.
Explain the Chapter 11 plan of reorganization.
Give an account of the social responsibility of businesses. List its four main theories.
Federal statutes that are organized by topic into code books are referred to as ________
law.
Under the ________, an employer can maintain an employment practice whereby it
gives preferential treatment to older workers over younger workers when they are both
within the 40 years and older category.
The judicial branch of the United Nations (UN) is known as the ________.
The term ________ refers to an owner of intellectual property or informational rights
who transfers rights in the property or information to another party.
Compare valid, void, voidable and unenforceable contracts.
How are disputes settled in the World Trade Organization (WTO)? What are the
different WTO bodies that handle disputes?
The suspension of certain legal actions by creditors against a debtor or the debtor's
property is known as a(n) ________.
Ford Motor Company manufactures automobiles and franchises independently owned
automobile dealers (franchisees) to sell them to the public. This is an example of a(n)
________ franchise.
________ crimes are prone to being committed by businesspersons, and usually involve
cunning and deceit rather than physical force.
If a person employs an architect to design the layout of his or her own home, it
constitutes a(n) ________ relationship.
A(n) ________ is any computer system that has been established by a seller to accept
orders.
Interests or instruments that are expressly mentioned in securities acts are ________
securities.
The ________ Act requires manufacturers and processors to test new chemicals to
determine their effects on human health and the environment and to report the results to
the EPA before the chemicals are marketed.
