The court in the Schoenberger v. Chicago Transit Authority case held that:
a. the actual authority of an agent may be founded on the acts or words of the agent.
b. implied authority is such authority as the principal knowingly permits the agent to
assume.
c. actual authority is such authority as a reasonable, prudent person, exercising
diligence and discretion, in view of the principal’s conduct, would naturally suppose the
agent to possess.
d. ZuChristian had neither actual nor apparent authority to make an offer of a specific
salary or to make a promise of additional compensation.
Which of the following would NOT be a violation of Title VII of the Civil Rights Act of
1964? An employer refuses to hire an applicant for a job because the person is:
a. a Mormon.
b. a woman.
c. sixty-four years old.
d. Hispanic.
Under the RUPA, a partner is a co-owner of partnership property.
a. True
b. False
John operates a small repair business and is in desperate need of a certain type of
building material. He obtains the material from a large corporation, but is charged a
grossly unreasonable price and is forced to buy other material he does not need. In view
of the buyer’s unequal bargaining power and unreasonable terms of the contract, this
may be a case of:
a. in pari delicto.
b. partial illegality.
c. substantive unconscionability.
d. procedural unconscionability.
In states which have adopted certificate of title statutes for automobiles, trailers, mobile
homes, and boats, perfection of a security interest must include both filing of a
financing statement and notation on the certificate of title.
a. True
b. False
The type of business enterprise with the most entities is the sole proprietorship,
followed by the corporation; but the type of business enterprise with the greatest total
revenue generation per year is the corporation.
a. True
b. False
Some group boycotts are illegal per se while others are subject to the rule of reason.
a. True
b. False
Janet’s husband, John, is called for jury duty and is selected for possible service on a
jury. However, when he is questioned by the defendant’s attorney before final jury
selection, he admits that he thinks the defendant is guilty based on the news reports that
he saw on the local television news. The defendant asks the judge to excuse John from
serving on the jury and the judge agrees. This is:
a. a valid challenge for cause.
b. a valid peremptory challenge.
c. not a valid challenge.
d. a valid challenge, but the plaintiff’s attorney can have John serve by making an offer
of proof to the judge.
The NET Act was enacted to:
a. require publication of certain utility and plant patent applications 18 months after
filing even if the patent has not yet been granted.
b. protect the owner of a trademark or service mark from any person who, with a bad
faith intent to profit from the mark, uses a domain name which is a protected trademark
or word.
c. extend U.S. copyright protection to works required to be protected under the World
Intellectual Property Organization Copyright Treaty and the WIPO Performances and
Phonograms Treaty.
d. to close a loophole in the Copyright Act which permitted infringers to pirate
copyrighted works willfully and knowingly as long as they did not do so for profit.
A prospectus is an offer a corporation makes to interest people in buying securities.
a. True
b. False
A shareholders’ written agreement, unlimited in duration, to vote in a specified manner
for the election of directors is a voting trust.
a. True
b. False
The death of the beneficiary will generally terminate the trust.
a. True
b. False
The coverage of fire insurance policies varies by state, but the policies are written for
no more than one-year terms.
a. True
b. False
Agency law is basic to almost every other branch of business law.
a. True
b. False
Promulgation of a new NAAQS does not require each state to submit an SIP.
a. True
b. False
An automobile will never be considered be a necessary item for a minor.
a. True
b. False
Under the common law as well as most statutes, __________ is larceny with the
additional elements that (1) the property is taken from the victim or in the immediate
presence of the victim, and (2) it is accomplished through either force or threat of force.
a. burglary
b. extortion
c. bribery
d. robbery
What is unjust to a social egalitarian will also be unjust to a libertarian.
a. True
b. False
Which of the following is correct with regard to treaties in the United States legal
system?
a. They have no legal effect.
b. Under the U.S. Constitution, they must be signed by the President and approved by
the U.S. Senate.
c. They have no effect on business law.
d. They must be approved by the states before they have the force of law.
An offer must be in a particular form to have legal effect.
a. True
b. False
A subagent is an agent of both the principal and the agent.
a. True
b. False
All batteries are immediately preceded by an assault.
a. True
b. False
A detailed statement concerning the environmental impact of a proposed federal action
is:
a. a National Ambient Air Quality Standard.
b. an Environmental Impact Statement.
c. the bubble concept.
d. an Environment Interior Standards Review.
All but which one of the following is required of a negotiable instrument?
a. It must be payable only out of a particular fund.
b. It must contain an unconditional promise or order to pay a fixed amount in money.
c. It must be payable on demand or at a definite future date.
d. It must be in writing and signed by the maker or drawer.
Procedural due process pertains to governmental decisions depriving a person of all the
following except:
a. life.
b. equal protection.
c. liberty.
d. property.
Which of the following are activities that give rise to strict liability?
a. Performing abnormally dangerous activities.
b. Selling defective, unreasonably dangerous products.
c. Keeping animals.
d. All are correct.
The State Opera Company has a contract with a famous tenor to perform in its
production of La Boheme. If the tenor chooses, he may delegate his duties under the
contract to an equally well-known tenor.
a. True
b. False
A significant trend affecting business has been the bringing of defamation suits against
former employers by discharged employees. Such suits comprise approximately what
share of all defamation lawsuits?
a. One fifth.
b. One fourth.
c. One third.
d. One half.
Which of the following is NOT true of United States trustees:
a. are government officials appointed by the U.S. Attorney General.
b. have administrative responsibilities in bankruptcy cases in almost all of the districts.
c. select bankruptcy trustees.
d. are the same as bankruptcy trustees.
The privilege against self-incrimination extends to which of the following?
a. Providing a handwriting sample.
b. Appearing in a line-up for identification purposes.
c. Taking a blood test after an accident.
d. None of the above are protected by the privilege against self-incrimination.
Under the RUPA, the partners have what type of liability for all contract obligations of
the partnership?
a. Joint.
b. Joint and several.
c. Several.
d. No.
A merger of Parker Corporation with Jones Corporation that results in only Parker
Corporation’s surviving normally would require approval of:
a. Parkers and Jones’ boards.
b. Parkers shareholders.
c. Jones’ shareholders.
d. All of these.