Distributors purchase goods from a seller, then negotiate sales to foreign buyers on their
own behalf.
Direct subsidies in the nature of rebates were used in the 2009 federal Cash for
Clunkers program.
To enforce its policies and decisions, the Consumer Product Safety Commission
(CPSC) holds both compliance and enforcement powers.
The point of nominal damages is to illustrate the wrongfulness of a breach.
The Brownfields Act provides liability protection for prospective purchasers and
contiguous property owners.
Falsely claiming that a competitor’s product is defective or harmful might constitute
injurious falsehood.
The 10th Amendment provides that all power not expressly accorded to the federal
government in the Constitution resides in the states or the people.
An arbitrator’s decision ordinarily is legally binding and final.
In the context of the capital structure of corporations, equity capital has a short-term
horizon.
A shareholder derivative suit is brought by a minority shareholder, but any recovery
inures to the corporation.
An at-will employee, by definition, is under contract for a definite period of time, and
cannot be fired until the completion of the time period.
Independent contractors are protected by the Fair Labor Standards Act, that requires,
among other things, the payment of the federal minimum wage and overtime pay.
Those matters not directly related to wages, hours, and terms and conditions of
employment and not falling within the category of prohibited subjects are referred to as
mandatory bargaining subjects.
In general, workers cannot sue for on-the-job injuries that are self-inflicted.
Which of the following acts imposes a general duty on most employers to provide a
workplace free of “recognized hazards causing or likely to cause death or serious
physical harm to employees”?
A. The Occupational Safety and Health Act
B. The Fair Labor Standards Act
C. The Family and Medical Leave Act
D. The Environmental Protection Act
In the context of the Clean Water Act:
A. the Environmental Protection Agency has exclusive implementation authority.
B. the federal government has clearly defined the waters that come under its
jurisdiction.
C. the states have primary responsibility for its enforcement.
D. the federal government has assumed the responsibility of monitoring surface water
runoff.
The _____ doctrine permits a merger to preserve the assets of a firm that would
otherwise be lost to the market.
A. indoor management
B. reciprocity
C. failing company
D. price squeeze
_____ refers to the initiative taken by the management in labor disputes by not allowing
some or all of its employees to work.
A. Closed-shop
B. Lockout
C. Salting
D. Picketing
Which of the following statements about the Herfindahl-Hirschman Index (HHI) is
true?
A. The smaller the HHI, the more likely the government will be concerned about the
merger.
B. The larger the increase in the HHI, the less concentrated the market.
C. The greater the increase in the HHI, the less likely the government will be concerned
about the merger.
D. The larger the HHI, the more concentrated the market.
Which of the following is a condition required for a successful defamation suit against
an employer?
A. The statement should be true.
B. A co-worker must be responsible for the publication of the statement.
C. The statement must be “published” to a third party.
D. The employer’s reputation must be harmed.
Which of the following is a drawback of the Clean Water Act?
A. Its regulation of point sources leaves many pollutants unmonitored.
B. Its goals do not include achieving water quality sufficient for the protection and
propagation of fish.
C. Its jurisdiction on navigable waters is limited to monitoring the discharge of
pollutants into the water bodies.
D. Its enforcement is the sole responsibility of the federal government and thus the act
is partially enforceable.
The establishment of _____ is evidence of voluntary international cooperation to
establish acceptable business practices.
A. September 21 as International Day of Peace
B. June 5 as World Environment Day
C. October 14 as World Standards Day
D. May 1 as International Workers’ Day
Which of the following statements is true of the Knights of Labor, the first major labor
organization in the United States?
A. It restricted its membership to male workers.
B. It included only bankers and stockbrokers.
C. It dedicated itself to principles of social reform.
D. It competed with the American Federation of Labor (AFL).
The reasonableness of a restraint of trade is largely established by _____.
A. a detailed balancing of the pro-and anticompetitive effects of the situation
B. eliminating competition and facilitating high-profile mergers
C. an analysis of costs and benefits associated with the existing predatory practices and
its effects on the government treasury
D. producing circumstantial evidence from participants proving the existence of
collusion
Under the Toxic Substances Control Act:
A. the waste generator must create a manifest to be used in tracking waste from its
creation to its disposal.
B. the federal government is authorized to prohibit future open dumping.
C. the Environmental Protection Agency is empowered to review and limit or stop the
introduction of new chemicals.
D. the companies importing new industrial chemicals must provide the required safety
data to the Environmental Protection Agency even if the data they have does not
suggest the chemical poses a ‘substantial risk.”
Which of the following acts provides that U.S. citizens working abroad for
American-owned or American-controlled companies are protected from employment
discrimination?
A. The Civil Rights Act of 1991
B. The Social Security Act
C. The Patriot Act
D. The Rehabilitation Act of 1973
A firm that adopts the triple bottom-line approach:
A. does not follow market principles in its business processes.
B. believes there is only one social responsibility of business-to use its resources to
engage in activities designed to increase its profits.
C. focuses on the legal and economic responsibilities of Carroll€s Social Responsibility
Pyramid and does not consider discretionary responsibilities.
D. considers its social and environmental responsibilities as important as its financial
responsibilities.
Which of the following is identified as the postconventional level of the six universal
stages of moral development?
A. Conforming to meet the expectations of others
B. Doing right, obeying the law, and upholding social order
C. Following self-chosen universal ethical principles
D. Following rules only if it is in your own self-interest but letting others do the same
Which of the following statements is true of the Securities Act of 1934?
A. It allows interstate offering of a new security until a registration statement has been
filed with and approved by the Securities and Exchange Commission.
B. It ensures partial disclosure of material facts about the investment opportunity to
offerees.
C. It guarantees the economic merits of any investment opportunity.
D. It gives the Securities and Exchange Commission the power to suspend trading if it
suspects price manipulation.
The 2013 version of the Employment Non-Discrimination Act (ENDA) excludes
protection against gender identity discrimination.
Zyton Inc., an American company, wants to expand its services to a developing country
in Asia. Instead of creating a separate legal entity, it simply wants to create an extension
of the parent company in the Asian country. In this scenario, Zyton Inc. is most likely to
set up a _____ in that country.
A. joint venture
B. distributorship
C. branch office
D. subsidiary
Which of the following describes the tort of nuisance?
A. It occurs when an individual’s name or image is wrongfully used without permission
for commercial purposes.
B. It is a form of defamation that is directed against the property of a person.
C. It is the situation in which enjoyment of one’s land is impaired because of some
tortious interference.
D. It involves an intentional interference with a person’s right to fully enjoy his or her
personal property.
Which of the following is true of arbitration?
A. In arbitration a neutral third party is introduced into a resolution process, with the
arbitrator as a facilitator, not a decision maker.
B. In arbitration a neutral third party is given the power to determine a binding
resolution of a dispute.
C. An arbitrator is only allowed to aid the involved parties by opening up
communication between them.
D. An arbitrator€’s proposed solution is in the nature of a compromise, not a
determination of right and wrong.
Describe in brief some of the challenges faced while protecting a species under the
Endangered Species Act.
Describe the U.N. Convention on Contracts for the International Sale of Goods (CISG)
and its role in international trade.
Describe Section 11 of the 1933 Securities Act and explain the defense against it.
Explain in detail the three broad classes of regulatory takings.
Distinguish between civil law and criminal law.
Describe the methodology for analyzing horizontal mergers.