When a group of plaintiffs with common claims collectively bring a lawsuit against a
defendant, it is known as consolidation.
The FDA cannot recall any cosmetics that contain unsubstantiated claims of preserving
youth or increasing virility from the market.
Statutes are written laws that establish certain courses of conduct that covered parties
must adhere to.
A counteroffer is a rejection of the original offer.
A prospectus is a written disclosure provided with the registration statement that helps
the SEC to evaluate the financial risk of an investment.
In a secured transaction, the debtor is the secured party.
Intentional misrepresentation is considered fraud.
In an undisclosed agency, the principal is solely liable on the contract with the third
party.
The FDA’s definition of cosmetics excludes substances and preparations for cleansing.
The ECPA provides that stored electronic communications may not be accessed by the
party or entity providing the electronic communication service.
A(n) ________ is an instrument that describes a person’s ownership interest in a piece
of real property.
A) title insurance
B) deed
C) license
D) easement
According to the priority of law in the United States, which of the following statements
is true?
A) State regulations take precedence over state statutes.
B) Valid state laws take precedence over any conflicting federal laws.
C) Valid state laws take precedence over local laws.
D) State laws take precedence over the U.S. Constitution within that state.
When do additional terms contained in an acceptance become part of the contract as per
the battle of the forms rule?
A) if the additional terms materially alter the original contract
B) if the sale is between two nonmerchants
C) if the additional terms expressly limit the acceptance to the terms of the offer
D) if the offeror notifies the offeree that he or she does not object to the additional terms
If Steve Templeton decides to not close the plant in Kantron, what business social
responsibility will Steve Templeton be achieving?
A) moral minimum
B) corporate citizenship
C) maximizing profits
D) stakeholder interest
Which of the following data must a franchisor disclose if the franchisor makes sales or
earnings projections for a potential franchise location that are based on the actual sales,
income, or profit figures of an existing franchise?
A) contract details of the franchisor and the existing franchises
B) management methods that have been adopted by the existing franchises
C) the number and percentage of its actual franchises that have obtained such results
D) any sales or marketing strategy employed by the franchisor in acquiring such results
If a fire destroys an office building that has been listed for sale, the offer is
automatically terminated due to ________.
A) supervening illegality
B) death or incompetency of the offeror
C) destruction of the subject matter
D) lapse of time
QuickClicks, an online advertising company, makes a contract to purchase six
computers from Comptail, a local retailer, for $20,000. However, Comptail breaches the
contract by not delivering the computers on time. The next day, QuickClicks manages
to purchase the computers from another retailer for $18,000 and receives immediate
delivery. QuickClicks can bring a lawsuit against Comptail to recover ________
damages.
A) consequential
B) compensatory
C) nominal
D) liquidated
Which of the following refers to an agreement that substitutes a new party for one of
the original contracting parties and relieves the existing party of liability on the
contract?
A) novation
B) substituted contract
C) mutual rescission
D) accord
Which of the following is an apparent disadvantage of utilitarianism?
A) It does not allow people to have subjective notions of right and wrong.
B) It is based on moral duties derived from universal rules.
C) It puts too much emphasis on one book or theory.
D) It treats morality as if it were an impersonal mathematical calculation.
The ________ is a federal statute, enacted in 1890, that makes certain restraints of trade
and monopolistic acts illegal.
A) Federal Trade Commission Act
B) Robinson-Patman Act
C) Clayton Act
D) Sherman Act
If there are major failures of several large banks or many small banks, and the Federal
Deposit Insurance Corporation (FDIC) insurance fund is insufficient to cover all of the
depositors’ losses, which of the following bodies is responsible for paying the
depositors money owed by the FDIC?
A) the Federal Reserve System
B) the boards of the failed banks
C) the National Credit Union Administration
D) the U.S. government
Section 8(a) of the National Labor Relations Actmakes it an unfair labor practicefor an
employer to interfere with, coerce, or restrain employees from exercising their statutory
right to form and join unions.
A(n) ________ is a contract that courts refuse to enforce in part or at all because it is so
oppressive or manifestly unfair as to be unjust.
A) unconscionable contract
B) contract of adhesion
C) contract in restraint of trade
D) quasi-contract
Which of the following is a way of establishing ethical rules in Rawls’s social justice
theory?
A) by a set of universal rules based on consistency and reversibility
B) from an original position of a veil of ignorance
C) by the ruling class or people in advantageous positions
D) by following what’s best for the society as a whole
Helga works as a nurse in a government-run hospital. She has to work 40 hours a week,
from 10 pm to 6 am every day. Which of the following is true of this scenario?
A) Helga is not entitled to receive overtime pay as medical staff does not qualify for it.
B) Helga can receive minimum wages and overtime pay only if she works more than 60
hours a workweek, as she is a government employee.
C) Helga cannot receive overtime pay as government employees are exempt from it.
D) Helga can receive overtime pay if she works more than 40 hours a workweek.
Stan met Stella a month after his break-up with his ex-girlfriend, Nora. Stan and Stella
fell in love, promised to marry each other, and even signed a written contract stating
their intentions to marry each other in six months. Two months before their wedding,
Stan met Nora accidentally, and they resolved their differences over a long
conversation. Stan then informed Stella that he had patched things up with Nora and
broke his promise to marry her. Which of the following statements is true in this
situation?
A) Stan will have to pay temporary alimony to Stella for this breach.
B) The contract remains valid as Stan could only break the contract three months prior
to the marriage.
C) Stella can legally enforce Stan’s promise to marry her.
D) Stan is free to leave Stella even though he has broken the contract.
Which of the following cases describes an agreement of ethics and laws?
A) a company outsourcing its jobs to a foreign country
B) a person being penalized for bribing a judge to give the verdict in the person’s favor
C) a company not spending more money to keep its emission rates below the legal
standard
D) a person hiring an illegal alien worker belonging to a destitute family
Ubiquitous Enterprises is a franchisee of HotPan chain of restaurants. One afternoon,
Linda, an employee of a HotPan restaurant owned by the franchisee, is mopping the
floor. Gary, a customer who enters the restaurant is talking on his cell phone and does
not notice Linda mopping the floor. He slips on the wet floor while walking to the
counter and is injured. Who among the following is liable for Gary’s injuries?
A) HotPan, for not providing a “Caution: Wet Floor!” sign
B) Ubiquitous Enterprises, for not having its own “Caution” sign
C) Linda, for not alerting Gary
D) Gary, for not noticing that the floor was wet
Harry in a drunken state agrees to give his car to Ben as a token of friendship. Once
sober, Harry asks Ben to return his car. This contract is considered ________.
A) valid
B) void
C) voidable
D) unenforceable