If a company challenges a penalty imposed by an administrative agency, which of the
following is the correct order for its appeal?
a. ALJ, agency commissioners, judicial challenge
b. judicial challenge, ALJ, agency commissioners
c. agency commissioners, ALJ, judicial challenge
d. None of the above is in the correct order.
The least corrupt countries have the most stable economies.
a. True
b. False
“If you think what we”re doing now is bad, you should have seen 10 years ago at this
company…” is an example of:
a. ethical analysis.
b. rationalization.
c.comparative or relative ethics.
d.both a and c
Courts create and apply the common law.
a. True
b. False
Joe Helquist and Samantha Gillis were partners in the operation of an office supply
business for 32 years. Joe had always handled suppliers and Samantha was responsible
for running the store and managing employees. Joe decided to retire and Samantha gave
him a fine retirement dinner. Joe had some financial setbacks shortly after retirement
when his wife became ill and two of his children decided to go on for their masters’
degrees. Joe began ordering supplies from the usual suppliers since they were not aware
of his retirement. Joe would intercept the supplies at the loading dock and then sell
them on his own. Samantha soon caught the discrepancy in the bills and her inventory
and refused to pay the suppliers when she learned of Joe’s scheme. Which of the
following statements is correct?
a. Samantha is not liable to the suppliers since Joe’s authority terminated.
b. Samantha is not liable to the suppliers because Joe’s acts constituted fraud.
c.Samantha is liable to the suppliers.
d.none of the above
Industrial groups are:
a. the basis for EPA effluent guidelines.
b. irrelevant in pollution standards.
c.relevant at state levels only.
d.none of the above
The Supremacy Clause:
a. controls whether Congress or the states have the authority to regulate commerce.
b. gives Congress full authority to regulate all areas of commerce.
c. is never applied in state regulation cases.
d. none of the above
To be valid, a UCC merchant’s firm offer:
a. must be supported by consideration.
b. must be evidenced by a record.
c.must be signed by both parties.
d.all of the above
Once a rule is proposed, it cannot be withdrawn.
a. True
b. False
Asking a couple’s plans for having children is a violation of the ECOA.
a. True
b. False
Employee misconduct is a defense to discrimination charges even if the misconduct was
not known at the time of the alleged discrimination.
a. True
b. False
Sanctions for discovery abuse:
a. are payments or a type of fine or penalty for not disclosing evidence.
b. are unconstitutional.
c.cannot include cash payments.
d.none of the above
Under the UCC, an acceptance followed by additional terms is a counteroffer and a
rejection.
a. True
b. False
The U.S. Department of Homeland Security:
a. includes INS.
b. includes customs.
c.was created by the USA Patriot Act.
d.all of the above
The U.S. Government Manual contains information on national and regional agency
offices.
a. True
b. False
Requiring farmers shipping goods from outside the state to use only in-state companies
for transportation is not a proper exercise of the police power.
a. True
b. False
Public figures must prove malice to establish a case of defamation against a newspaper.
a. True
b. False
Under the Computer Fraud and Abuse Act (CFA), access to institutional financial
information is not a violation.
a. True
b. False
Under Section 14, a shareholder proposal in the proxy materials:
a. is limited to 200 words.
b. must be made by a shareholder who owns at least 5 percent of the outstanding shares
of the corporation.
c.need not be included if management objects.
d.all of the above
Which of the following employers are not subject to Title VII?
a. Congress
b. defense contractors
c.religious corporations when hiring clerical personnel
d.None of the above is subject to Title VII.
Which two amendments to the U.S. Constitution provide for equal protection?
a. First and Fourth
b. Fourth and Fifth
c. First and Fifth
d. Fifth and Fourteenth
Unless protected by a statute, an agent for an unincorporated association has full
liability on contracts entered into on behalf of that association.
a. True
b. False
Rule 506 carries a 35-purchaser maximum (excluding accredited investors).
a. True
b. False
In a partially disclosed principal relationship, who is liable to the third party on a
contract outside the agent’s
authority?
a. principal
b. agent
c.both a and b
d.none of the above
Gringo’s Restaurant is a small restaurant located in a Mesa, Arizona, neighborhood
shopping center that has a grocery store (chain) as its anchor tenant. Carl Williams
owns Gringo’s and has just negotiated its sale to Wilma Freestone. The covenant not to
compete provides that Williams will not open a competing restaurant anywhere within a
two-mile radius of Gringo’s for a period of two years. The noncompete covenant is:
a. too restrictive and is a violation of the Sherman Act.
b. not subject to review so long as it is part of the sales contract.
c.probably reasonable and enforceable.
d.void
With regard to #110, suppose that Jill had been using the skates for one year when the
wheel fell off. Which of the following best summarizes the manufacturer’s liability?
a. There is no liability because of assumption of risk.
b. There is no liability because the skates are one-year old.
c.There could be liability if the wheel fell off due to defective design and there is no
change in the design over the course of the last year.
d.There is no liability because manufacturers are excused from liability when there is
passage of this much time.
e. none of the above
The Fifth Amendment protections:
a. apply to corporations.
b. can be used by officers of a corporation to prevent disclosure of corporate records.
c. can be used by officers of a corporation to prevent disclosure of corporate records
that incriminate them.
d.none of the above
Choose the answer that reflects the proper sequence of events in civil procedure:
a. complaint, subpoena, deposition, answer, interrogatories, summons
b. complaint, deposition, answer, counterclaim, affirmative defense
c.complaint, directed verdict, summary judgment, summons, answer
d.complaint, summons, answer, counterclaim, discovery
e. discovery, complaint, summons, answer, counterclaim
Rami Essaid worked for a large computer security firm. As part of his employment
agreement, he had been told about and initialed on his contract a noncompete clause
that prevented him from starting his own firm or working for a competitor in the area of
computer security for six months following his termination of employment,
for whatever reason. Rami quit his job and started his own firm that specializes in
protecting websites from automated computer programs, the same type of work that he
was doing for his former employer. His former employer has brought suit to stop Rami
from operating his company for six months. Which of the following statements
is correct?
a. The noncompete clause is unenforceable because it inhibits his ability to earn a
living.
b. The noncompete clause is unenforceable because it runs for too long a time period.
c.The noncompete clause is unenforceable because noncompete clauses are void.
d.The noncompete clause is enforceable.
In 2012, the CEO with the highest compensation was:
a. Lawrence Ellison
b. Mark Hurd
c.John Donahoe
d.none of the above
The Federal Privacy Act:
a. is the same as the Regulatory Flexibility Act.
b. does not apply to medical and employment histories.
c. is part of the Administrative Procedures Act.
d. applies to all law enforcement information exchanges.
The Superfund is:
a. tapped by Congress for surplus spending.
b. used for air pollution problems.
c.available by private citizen suit.
d.a trust fund.
e. none of the above
In international disputes, it is likely that foreign companies will be required to come to
the United States to bring suit for issues involving the Internet and U.S. companies
a. True
b. False
Several gypsum manufacturers have agreed (for union purposes) to limit the number of
deliveries per day. They can meet the union demands by doing so. Are there any
problems with the agreement?
Novosel was an employee of Nationwide Insurance and had refused to engage in
political lobbying efforts for Nationwide. Novosel was terminated.Discuss Novosel’s
rights.
Through deregulation the total number of pages of published federal regulations has
decreased each year since
a. True
b. False
John W. Carson, better known as Johnny Carson, was the host and star of “The Tonight
Show.” His announcer used the phrase “Here’s Johnny” to introduce Mr. Carson from
the time the first show appeared in 1957. Carson licensed the phrase for use with a
clothing line he endorsed as well as a line of men’s toiletries. In 1976, a Michigan
corporation began manufacturing and selling portable toilets for use at construction
sites and at large outdoor events. The toilets were called, “Here’s Johnny! portable
toilets!” The company also used the phrase, “the world’s foremost commodian” in
describing its product. Mr. Carson filed suit. What would be the basis of his lawsuit?
Discuss why mediation is replacing arbitration as the preferred method of business
dispute resolution.
Express and implied authority together are called real authority.
a. True
b. False
The state of Arizona has passed a law requiring state agencies to conduct their business
with the public in both Spanish and English. A voters’ referendum repealed the law and
several citizens’ groups brought suit challenging the referendum as a violation of their
U.S. Constitutional rights. What would be the basis of their suit?
Shares issued through reorganizations must be registered.
a. True
b. False
Explain Goldman Sachs trading huddles and its implications.
The results of a mini-trial are always binding.
a. True
b. False
In a limited partnership, there must be a least one general partner.
a. True
b. False
The state of Arizona has passed a tax reform bill that taxes property owners at a
specified rate with the exception of mines and utilities. Both mines and utilities are
assigned a higher rate of tax for their properties. A state legislator commented on the
bill, “In some of these small towns, without the higher rate of taxation for mines and
utilities, the schools in these towns would suffer because the property is worth nothing
and there are no property tax dollars coming in. We have to tax these area’s wealthiest
citizens at a different rate and those citizens happen to be the mining companies and the
public utilities.” Is the tax constitutional?
A word processor at a large defense contractor’s plant is injured when she slips and falls
in one of the corridors of the plant. After the accident, it was discovered that the floor
had recently been mopped, but no sign had been placed to warn employees of the wet
floor. The word processor wants to sue her employer for its negligence. Can she do so?
Anna Woodruff is the purchasing manager for Allied Transport. One of Allied suppliers
has just had a Schwinn bicycle delivered to Anna as a gift. What should she do?
Earnings management is a key area of SEC investigation and enforcement.
a. True
b. False
Explain the economic incentives under the Clean Air Act of 1990 for companies to have
fewer emissions.
Discuss why the Consumer Product Safety Improvement Act included rules for resellers
of certain types of products.