Which of the following is true about police powers?
A. These powers have given the federal government expansive power to regulate
business.
B. The powers sometimes allow the state regulations to be arbitrary.
C. The powers help protect the public’s health, safety, morals, and general welfare.
D. The powers allow the state regulation to violate the commerce clause.
E. These powers have no limitations.
Which of the following terms represents the proposition that those engaged in an
activity causing negligence are legally liable only for the foreseeable risk that they
cause?
A. Actual cause
B. Proximate cause
C. Unforseeable cause
D. Negligent cause
E. Injurious cause
Which of the following is a taxable entity?
A. A partnership
B. An S corporation
C. A limited liability company
D. A corporation
E. A sole proprietorship
Leslie is on his way to meet his girlfriend, when he meets with a car accident. Leslie’s
over speeding causes the accident and injures two other people involved in it. Which of
the following is true of this situation as per the doctrine of respondeat superior?
A. Leslie was acting within the scope of employment; hence his employer is liable for
Leslie’s tort.
B. Since this was an accident, no one will be held liable.
C. Leslie was on a frolic and detour when the accident occurred; hence the employer is
not liable for the accident.
D. Since the accident was an intentional tort by Leslie, the employer will not be held
liable.
E. Leslie’s employer will be held liable for all of Leslie’s actions, but can sue Leslie for
a reimbursement.
Which of the following is true about an S corporation?
A. It has the same legal characteristics as any other corporation except for the issue of
taxation.
B. It is the official designation for a corporation with 500 or less employees.
C. It is the same as any other corporation except for management participation by
stockholders.
D. It is exactly the same as any other corporation.
E. It need not file an information return with the IRS since it does not pay any taxes.
The courts may assess fines against those found to have engaged in deceptive
advertising upon request from the:
A. Bureau of Consumer Protection only.
B. Bureau of Consumer Protection and/or the Home Department.
C. Bureau of Consumer Protection, the FTC, and the Justice Department.
D. FTC or the Justice Department.
E. FTC and the Home Department.
Classifications directed at race, national origin, and legitimacy of birth are _____
classes.
A. suspect
B. quasi-suspect
C. rational basis
D. intermediate
E. non-fundamental
The fair use of a registered trademark defense was established in the:
A. Lanham Act.
B. Federal Trademark Dilution Act.
C. Economic Espionage Act.
D. U.S. Constitution.
E. Consumer Protection Act.
The Wagner Act is also known as the:
A. Labor-Management Relations Act.
B. National Labor Relations Act.
C. Railway Labor Act.
D. LMRDA Act.
E. Federal Arbitration Act.
Sisi, a judge, has reviewed her cases and believes that the lawsuit between Luigi and
Franz completely lacks any merit. She is convinced that the suit should not continue.
What may Sisi do in response?
A. File a motion for judgment on the pleadings
B. File a motion to have Luigi extradited
C. Terminate the litigation on her own motion
D. Wait until Franz files a motion to terminate the litigation
E. File a request for admission
Which of the following statements holds true for the certification of a union by cards?
A. Employers do not have the option to insist on an election.
B. Employers do not need to recognize the union based on a majority card showing.
C. Under no circumstances can cards substitute for an election.
D. The general counsel of the NLRB has to prove that the employees read the cards.
E. The NLRB may not issue a bargaining order under any circumstances.
The creation of _____ is automatic based on business conduct and is modified by
agreement.
A. limited partnership
B. corporation
C. partnership
D. sole proprietorship
E. S corporation
Which of the following is true of the doctrine of respondeat superior?
A. An employee may be held liable under tort law for the torts committed by his/her
employer, while the employee was working at the organization.
B. An employer will be held liable for the actions of an employee who is on a frolic and
detour.
C. An employee working with an organization and having committed a tort can be held
liable for even though he/she did not intend the harm.
D. Torts committed by an employee working for an organization will result in the
employee and the employer being held liable under tort law.
E. An organization is not held liable under tort law for the torts committed by its
employees during their work tenure at the organization.
Punitive damages are frequently awarded in:
A. ordinary negligence cases.
B. intentional tort cases.
C. breach of contract cases.
D. criminal cases.
E. violating the statutes.
Under the Family Medical Leave Act, in order to take leave, the eligible employee:
A. must have worked for 12 consecutive months prior to requesting leave.
B. is entitled to one 12-week paid leave per year.
C. must have worked at least 1,950 hours during the preceding 12 months.
D. must have worked for the employer at least a total of 12 months.
E. must work at a location where at least 100 employees are employed.
Rico has been trying hard to get a certain building contract for his company. He decides
to go the extra mile and talk to the government official who is managing the building
contract allotment. Rico promises the official a treat’ if he directs the contract to Rico’s
company. Which of the following can Rico be held guilty for?
A. Aiding and abetting
B. Money laundering
C. Kickbacks
D. Embezzlement
E. Larceny
Which of the following is true of liquidated damages?
A. A small amount is awarded by the court to the plaintiff for a breach of contract which
causes no financial injury to the plaintiff.
B. Damages awarded by the court arising from unusual losses, which the parties knew
would result from breach of contract.
C. Damages awarded by the court to put the plaintiff in the same position as if the
contract had been performed.
D. Damages specified in the contract, where real damages for breach of contract are
likely to be uncertain.
E. Courts will enforce these “liquidated” damages to penalize the defendant.
One reason for the relative strength enjoyed by management was the fact that it argued
that employees acting together were restraining trade illegally under the _____.
A. Taft-Harley Act
B. Wagner Act
C. Norris-LaGuardia Act
D. Clayton Act
E. Sherman Act
The meaning and application of the equal protection clause have been central issues in
cases involving the:
A. right to possess guns.
B. freedom of the press.
C. freedom of expression.
D. prohibition of respecting any establishment of religion.
E. makeup of juries.
The Magnuson-Moss Warranty Act applies to all consumer product warranties
regarding products priced _____ or more.
A. $10
B. $15
C. $20
D. $25
E. $50
Dustin, aged 17, purchased a car from Speed Auto Sales for $1,000. The following year,
his father gifted him a brand new car on Dustin’s 18th birthday. Dustin returned the car
to Speed Auto Sales the next day, and demanded his money back. At the time of
disaffirmance, Dustin was 18, the age at which he was considered an adult in his
jurisdiction. Will this disaffirmance be enforceable in the court of law?
A. No, since Dustin did not give Speed a signed revocation.
B. Yes, since Dustin disaffirmed during the year he reached his adulthood.
C. No, since the disaffirmance must be written when the price exceeds $500.
D. Yes, since the courts and laws always rule in the favor of minors.
E. No, since Dustin has reached adulthood and disaffirmance can be expressed only by
a minor.