Kent and Turner get into an argument over the money Turner had loaned Kent. They
decide to allow Erika, their friend and a professor, to make a decision. Turner and Kent
agree to abide by whatever decision Erika makes. This is an example of _____.
A. a negotiated settlement
B. compensatory damage
C. arbitration
D. specific performance
E. a rescission
Aria phones Jessica and asks if she can borrow one of her dresses for an office party
that weekend. Jessica agrees to this. However, when Aria goes to pick up the dress,
Jessica refuses to give it to her. Which of the following statements is true of this
situation?
A. Jessica has committed a breach of contract.
B. A bargained-for exchange has not occurred, so Jessica does not have to loan Aria the
dress.
C. Jessica has promised Aria something of value, so she must loan her the dress.
D. A bargained-for exchange has occurred, so Jessica must loan Aria the dress.
E. Jessica has given a valid consideration, making the agreement between her and Aria
a binding contract.
Which of the following acts provides national policy for governing the
union-management relationship?
A. The Social Security Act
B. The Fair Labor Standards Act
C. The Worker Adjustment and Retraining Notification Act
D. The Taft-Hartley Act
E. The Employment Retirement Income Security Act
The purposeful reduction of damages, usually the responsibility of the nonbreaching
party, is known as _____.
A. mitigation
B. negotiation
C. waiver
D. release
E. novation
Interest-based negotiations are superior to position-based negotiation because:
A. the differences between the interests of the parties are often large.
B. interest-based negotiations allow room for consideration of non-factual concerns,
such as relationships and long-term interests.
C. position-based negotiation is often only concerned with preparing for litigation.
D. interest-based negotiation requires the presence of a judge or magistrate.
E. interest-based negotiation forces the parties to discuss resolution options for the
week prior to open negotiation.
The Taft-Hartley Act was designed to:
A. strengthen labor union’s bargaining power.
B. limit management retaliation for unionization.
C. help ensure fairness in negotiations in the wake of the Wagner Act.
D. strengthen antitrust laws.
E. establish a federal minimum wage.
Which of the following provides the best definition of ethics?
A. Ethics is a formal system for evaluating who profits in a business transaction.
B. Ethics is merely a different term for the laws and regulations created by a
government.
C. Ethics is merely another word for morality, which is only involved in what is right
and what is wrong.
D. Ethics is a simplified term given to the momentary decisions we all make regarding
which answer will lead each person to the most personally successful solution.
E. Ethics is a formal system for deciding what is right and wrong and for justifying
moral decisions
Mayra offers to sell her home to Hanna for “about $100,000 plus closing costs.” Hanna
accepts Mayra’s offer but later, a dispute arises concerning the precise dollar amount of
the purchase price. How will a court resolve this dispute?
A. The court will determine a reasonable price to be paid by Hanna.
B. The court will determine that Hanna pay only the figures mentioned in the contract.
C. The court will appoint a licensed real estate appraiser to determine the price to be
paid by Hanna.
D. The court will require Hanna to pay the average of her price and Mayra’s price.
E. The court will declare the purchase price and terms too indefinite to create a binding
contract.
When a firm is given monopoly power, it loses its freedom of contract, and a
governmental body is given the power to determine the provisions of its contracts. The
government agency is providing _____.
A. specificity
B. expertise
C. protection
D. regulation
E. services
A corporate charter is issued following an application made by individuals known as:
A. incorporators.
B. corporate officers.
C. board members.
D. corporate panel.
E. proxies.
Which of the following is true of the Convention on the International Sale of Goods?
A. It outlines standard international practices for the sale of goods.
B. It encourages international trade by maintaining stable foreign exchange rates.
C. It promotes economic development in poor countries by making loans to finance
necessary development projects and programs.
D. It ascertains what public international law is.
E. It grants jurisdiction to U.S. federal district courts over “any civil action by an alien
for a tort only, committed in violation of the law of nations or a treaty of the United
States.”
Infractions of international law are most frequently settled by:
A. diplomacy.
B. formal charges.
C. economic sanctions.
D. ICJ decision.
E. penalties and damages.
The most difficult and complicated business organization to create is the:
A. sole proprietorship.
B. partnership.
C. limited partnership.
D. corporation.
E. limited liability partnership.
A lawsuit that is totally lacking in merit is referred to as _____.
A. deposed
B. peremptory
C. res judicata
D. cognizable
E. frivolous
The Consumer Product Safety Commission may do all of the following EXCEPT:
A. issue recalls of products.
B. ban harmful consumer products.
C. research potential product hazards.
D. protect consumers against unsafe food products.
E. develop mandatory and voluntary standards.
Parties to litigation are entitled, as a matter of right, to ________ appeal(s) of their case
by a higher court.
A. 0
B. 1
C. 2
D. 5
E. Unlimited
Which of the following is true of a material fact?
A. It means to act knowingly and with a specific intent to deceive someone, ordinarily
for financial gain or causing financial loss to that person.
B. It is a plan or a program designed to take from a person the tangible right of honest
services.
C. It is important to a reasonable person in deciding whether or not to engage in a
particular transaction.
D. It can be a defense to a contract and can also form the basis of a civil tort action.
E. It is a statement or representation that is known to be untrue or is made with reckless
indifference as to its truth or falsity.
Which of the following is an incorrect statement regarding copyrights?
A. To obtain a copyright the work must be original.
B. The work must show some sort of creativity.
C. The work must be fixed in a tangible medium.
D. The work may be an intangible original idea.
E. The work must be an expression, rather than an invention.
Which of the following is true of the Foreign Corrupt Practices Act of 1977?
A. It prosecutes any foreign official body that bribes American officials.
B. It is designed to watch over the import-export transactions.
C. It prohibits American citizens from doing business with countries that have a high
level of corruption.
D. It is designed to stop bribery of foreign officials by American citizens.
E. It governs the corrupt practices in countries doing business with American citizens.
In the pleadings phase, which of the following is false?
A. The defendant’s response cannot contain affirmative defenses.
B. The complaint starts the lawsuit.
C. The defendant’s response is called an answer.
D. The clerk of the court issues the summons to be served on the defendant.
E. The complaint contains allegations by the plaintiff and a statement or request of the
relief sought.
Which of the following types of easement is also called easement by necessity?
A. Negative easement.
B. Easement by prescription.
C. Easement by reservation.
D. Natural easement.
E. Functional easement.
The law protecting the owners of a business organization from the managers who run it
for them is _____.
A. corporate governance
B. antitrust law
C. labor law
D. contract law
E. tort law
Laws that prohibit agreements requiring membership in a labor organization as a
condition of continued employment is known as a _____ law.
A. right-to-work.
B. right to remain independent
C. right-to-self-determination
D. right to choice.
E. right-to-information
In a broad general sense, _____ includes the legal property relations that large
businesses have with each other, with their customers, and with society.
A. corporate governance
B. specific performance
C. stare decisis
D. tort law
E. strict liability
Which of the following is NOT true of the statute of limitations?
A. The statute of limitations is a defense for both civil and criminal liability.
B. The basic limitations period is one year.
C. In no event may a suit be brought more than one year after the sale.
D. The one year limitations period does not start to run until the discovery of the untrue
statement or omission.
E. The one year limitations period does not start to run until the time such discovery
would have been made with reasonable diligence.
Which of the following statements is true of sources of international law?
A. Public international law examines relationships between businesses.
B. Public international law uses rules that are binding on all countries in the
international community.
C. Private international law examines relationships created by private individuals.
D. Private international law utilizes U.S. law to resolve international business disputes.
E. Public international law examines the relationships between different populations.
The Wheeler-Lea amendment of 1938 made unfair or deceptive acts or practices in
commerce illegal under:
A. the Sherman Act.
B. the Noerr-Pennington doctrine.
C. the Clayton Act.
D. the Robinson-Patman Act.
E. the Federal Trade Commission Act.
The Public Company Accounting Oversight Board members are appointed by the:
A. President.
B. Senate.
C. FTC.
D. Congress.
E. SEC.
The administrative process being overwhelmed with paperwork and with meetings is an
issue of administrative agencies that relates to the _____.
A. process followed
B. people involved
C. input of information
D. follow-up investigation
E. substantive outcomes
Maria has filed a sexual harassment suit against her employer. She states in the suit that
she is often subjected to jokes about her Hispanic heritage. She has also complained
that the male employees are frequently staring at her and commenting on her figure in
an offensive and provocative way. Maria’s job evaluations have been excellent both
before and after her complaints and she has received regular merit raises. Personally,
she has trouble sleeping at night, has lost much of her appetite, and is often depressed
due to harassment at work. Which of the following is true?
A. Maria is a victim of quid pro quo harassment.
B. Maria is a victim of hostile environment harassment.
C. Maria is a victim of retaliatory treatment.
D. Maria has no cause of action because her job has not been impacted.
E. Maria is a victim of race norming.
When a petition for certiorari is filed to the Supreme Court, the party initiating the
petition is the petitioner and the other party is known as the _____.
A. plaintiff
B. respondent
C. appellant
D. tortfeasor
E. defendant
Today, the estimated time needed to acquire the necessary permits to build a coal-fired
electric generating plant is:
A. one to two years.
B. six to nine months.
C. five to ten years.
D. three to four years.
E. two to three years.
Mike and Kathy are both tenured associate professors in a school’s English Department.
Kathy is constantly asking Mike out on dates, which he always refuses. He has asked
her to stop asking him to go anywhere. Furthermore, Kathy is always making
provocative comments to him, telling dirty jokes, and asking him about his preferences
in women which embarrasses him and has caused him to lose sleep. If Mike sues the
school for permitting Kathy’s behavior:
A. the school would win because a woman cannot harass a man and Mike should be
flattered rather than upset.
B. the school would win because Mike and Kathy are on the same employment level
and Mike cannot be truly harassed unless Kathy has the ability to impact his job status,
which she does not.
C. Mike would win if he had previously complained to the school and they had done
nothing to stop the harassment.
D. Mike would win because regardless of notice, the employer is per se liable for any
improper activity that occurs on the job and it is their responsibility to know what is
happening on their premises.
E. the school would win because Mike does not suffer from any economic loss due to
Kathy’s behavior.
Civil violation of a trademark or a patent is termed _____.
A. breach
B. infringement
C. repudiation
D. copy
E. intellectual theft
When a party intentionally relinquishes a right to enforce a contract, it is called a/an
_____.
A. agreement
B. waiver
C. breach
D. disclaimer
E. release
Discuss the subject matter of a patent as a way of testing the validity of a patent.
