Under Title VII of the Civil Rights Act, if a supervisor harasses an employee but no
tangible employment action is taken, then ________.
A) the employer is strictly liable for the harassing supervisor’s conduct
B) the employer cannot raise a defense to avoid liability
C) the employer is vicariously liable unless it can prove affirmative defense
D) the rules of employer liability are the same as they would be if the harassing
employee was a coworker
Hybrid Motor Company manufactures automobiles and franchises independently
owned automobile dealers (franchisees) to sell them to the public. This is a form of
________ franchise.
A) processing plant
B) chain-style
C) area
D) distributorship
The change in the relationship of partners in a partnership caused by any partner
ceasing to be associated in the carrying on of the business is known as ________.
A) action for an accounting
B) indemnification
C) winding up
D) dissolution
Charlotte works as a teacher in Africa. Every Sunday, she visits nearby villages and
convinces families to send their children to school. She arranges accommodation for
these children and helps them with their education. In a recent interview, Charlotte
mentioned that she looks up to Mother Teresa not only for inspiration but also to
resolve ethical dilemmas. Charlotte’s approach to ethics is characteristic of ________.
A) ethical fundamentalism
B) utilitarianism
C) Kantian ethics
D) ethical relativism
Which of the following is a rule that eliminates HDC status with regard to negotiable
instruments that arise out of certain consumer credit transactions?
A) FTC HDC rule
B) exclusionary rule
C) imposter rule
D) fictitious payee rule
Which of the following is true of the ULLCA?
A) It fails to cover problems that arise in the formation and operation of LLCs.
B) It provides uniform laws for the dissolution of LLCs.
C) It has been adopted by all the states as their LLC law.
D) It governs the operation of proprietorships and LLPs.
A ________ is an exception that permits a type of building, or use in an area that would
not otherwise be allowed by a zoning ordinance.
A) variance
B) fixture
C) dominant estate
D) servient estate
The process of a deceased’s property being collected, debts and taxes being paid, and
the remainder of the estate being distributed is known as a(n) ________.
A) probate
B) abatement
C) ademption
D) audit
Steve brings his watch to Knell Watches to be repaired. Knell Watches sells and repairs
watches. Steve entrusts his watch at Knells’ until it is repaired. The watch store repairs
the watch, but then sells it to Kevin, who buys the watch with a fraudulent check that
bounced. Kevin then resells the watch to his friend Jonathan, who is unaware of the
stolen nature of the watch. What kind of title does Jonathan hold over the watch?
A) an unequivocal title
B) a conditional title
C) a voidable title
D) a void title
The appealing party in an appeal is called a(n) ________.
A) appellate
B) appellee
C) respondent
D) petitioner
Which of the following documents sets forth the terms and conditions of a franchise?
A) FTC disclosure document
B) franchise agreement
C) articles of incorporation
D) articles of organization
A corporation that owns shares of the subsidiary corporation in a share exchange is
referred to as the ________ corporation.
A) parent
B) merged
C) sister
D) daughter
If the movement of goods is not required, and the seller is a merchant, the risk of loss
________.
A) does not pass to the buyer until the goods are received
B) remains with the seller after acceptance
C) is passed on to a nonmerchant-buyer before the goods are shipped
D) is to be borne by the buyer before delivery of goods
A(n) ________ is a document that grants a person the right to enter upon another’s
property for a specified and usually short period of time.
A) title insurance
B) easement
C) license
D) deed
Richard Bell, an organized crime boss and casino owner, has made a lot of money with
his illegal drug operations and illegal gambling. In order to make it look like he earned
it legitimately, Richard hired crooks to take the drug money and spend it in Richard’s
casinos in discreet amounts. The crooks are supposed to lose the money on purpose so
that the casino can claim this as winnings. The crooks are then paid a small amount for
their services. What crime is Richard committing in converting his drug money to
alleged legal money?
A) misappropriation
B) embezzlement
C) money laundering
D) extortion
Which of the following is true of Chapter 7 liquidation?
A) The debtor is not permitted to keep any of his or her assets.
B) The 2005 bankruptcy act has eased the process of applying for Chapter 7
bankruptcy.
C) The debtor’s future income cannot be reached to pay the discharged debt.
D) Petitioning for Chapter 7 liquidation does not permit the debtor to petition for
bankruptcy under any other chapter.
What is the copay clause in an insurance policy?
A) a clause in a life insurance contract that provides no coverage if the insured commits
suicide before a stipulated date
B) a clause in an insurance policy that expressly stipulates the risks that are not covered
by the insurance policy
C) a clause that prevents insurers from contesting statements made by insureds in
applications after the passage of a stipulated number of years
D) a clause that requires the insured to pay a percentage of an insured loss along with
the remainder being paid by the insurer
Which of the following constitute a mutual mistake of a material fact?
A) Martha selling her house to Graham and hiding the fact that its first floor is damaged
B) Martha and Graham agreeing on the sale of a house, but both referring to different
houses
C) Graham buying a house from Martha without asking her details of damages
D) Martha selling Graham an old vase for $20, both of them unaware that it is a
valuable antique collectible
________ refers to monetary damages that are awarded to punish a defendant who
either intentionally or recklessly injured the plaintiff.
A) Compensatory damages
B) Special damages
C) Punitive damages
D) General damages
A gift of $30,000 to a named beneficiary is an example of a ________ gift.
A) special
B) general
C) legacy
D) residuary
Timothy is a dentist who has a private clinic in Detroit. Which of the following would
be an example of him using a new, personalized top-level domain?
A) timothy-dentist.com
B) timothy.dentist
C) timothy-dentist.net
D) timothy-michigandentist.com
Most federal circuits of the federal appellate court system are determined based on
________.
A) the geographical area served by each court
B) whether the appeals come from state or federal courts
C) the amount of controversy in the appeal
D) the subject matter of the case being appealed
Which of the following is true of a franchise agreement?
A) A franchise application is not necessary to qualify for entering into a franchise
agreement.
B) The UFOC sets forth the terms and conditions for the franchise agreement.
C) The terms and conditions of the franchise agreement must always be first drawn by
the franchisee.
D) A franchisee can only obtain a license to use the franchisor’s intellectual property
after entering into a franchise agreement.
________ occurs when a party uses another party’s famous mark to designate a product
or service in another market so that the unique significance of the famous mark is
weakened.
A) Tarnishment
B) Blurring
C) Infringement
D) Astroturfing
________ discrimination occurs when an employer treats a specific individual less
favorably than others because of that person’s race, color, national origin, sex, or
religion.
A) Disparate-treatment
B) Disparate-impact
C) Favored-treatment
D) Unfair-impact
Workers’ compensation is a(n) ________ remedy.
A) exclusive
B) cumulative
C) provisional
D) equitable
Which of the following is a seller’s remedy?
A) right to recover damages for nondelivery
B) right to dispose of goods
C) right to replevy goods
D) right to obtain specific performance
The ________ is a legal principle that allows minors to cancel most contracts they have
entered into with adults.
A) duty of restoration
B) duty of restitution
C) contract of adhesion
D) infancy doctrine
Enworth Pharma conducts a comprehensive study, which suggests high success rates for
a project aiming to develop a strong anti-lymphoma drug. Trusting the experts who
conducted the study, Enworth invests large amounts of financial capital into the project.
The project fails and Enworth, along with its shareholders, incur massive losses. Which
of the following protects Enworth Pharma from litigation by its unhappy shareholders?
A) pro rata rule
B) crashworthiness doctrine
C) Williams Act
D) business judgment rule
Which of the following statements about the Family and Medical Leave Act is true?
A) The act applies to companies with 25 or more workers as well as federal, state, and
local governments.
B) To be covered by the act, an employee must have worked for the employer for at
least 6 months and must have performed more than 650 hours of service.
C) Employers are required to provide up to 12 weeks of unpaid leave due to the birth of
and care for a child.
D) Employers are required to provide up to 5 weeks of unpaid leave due to the
placement of a child with an employee for adoption or foster care.
A(n) ________ is an example of real property.
A) building
B) patent
C) automobile
D) work of art
Which of the following would be considered an express power of a corporation?
A) opening a bank account
B) issuing notes and bonds
C) purchasing advertisement
D) purchasing insurance