Pricing goods at a low level to discourage market entry by competitors is called:
A. congestion pricing.
B. exemption pricing.
C. limit pricing.
D. per se pricing.
E. variable pricing.
Which of the following is true of the Supreme Court’s use of the power of judicial
review?
A. It has exercised this power more than once per presidential cycle.
B. It exercises the power of judicial review at least once a year.
C. It uses its power of judicial review only when the country faces war.
D. It rarely uses judicial because of its self-imposed limits.
E. It uses the power only when the majority of the justices are strict constructionists.
Kylie hosts a party inviting her best friend Minnie as well. Minnie is aware that Kylie
has a pet dog, and is also friendly with it. However, during the party, Kylie’s dog attacks
Minnie, injuring her. Minnie holds Kylie responsible for the attack and files a suit
against her. Which of the following defenses can Kylie use against the suit?
A. Assumption-of-the-risk
B. Statute of response
C. Strict liability
D. Willful and wanton negligence
E. False imprisonment
Picketing to force an employer to recognize an uncertified union is an unfair labor
practice when:
A. the employer has refrained from recognizing another union as the collective
bargaining agent of its employees.
B. picketing has been conducted with an aim to force the employer to engage in a
secondary boycott.
C. a valid representation election has been conducted by the NLRB within the past 12
months.
D. picketing has been conducted for an unreasonable time, in excess of 10 days.
E. picketing has been conducted even with a petition for a representation election being
filed with the NLRB.
Which of the following statements is true of the WARN Act?
A. It requires employers to give notice of a scheduled mass layoff.
B. It requires employers to give notice to an “at will” employee that he/she is being
fired.
C. It requires employers to give notice to employees that an unscheduled drug test will
be conducted for all employees.
D. It requires employers to give notice to employees that they are being subjected to
polygraph tests.
E. It requires employers to give notice to employees that they are being subpoenaed by
a court of law.
The _____ requirement means that federally contracting employers must hire members
of these groups when there are fewer minority workers in a given job category than one
could reasonably expect, considering their availability.
A. disparate treatment
B. affirmative action
C. reverse discrimination
D. retaliation
E. business necessity defense
The Supreme Court reviewed a tax issued by the state of Alabama on a federally
incorporated insurance organization. The Court found that if a state had the power to
levy a tax on a federally incorporated institution, then the state had the power to destroy
the federal institution. This would make the states superior to the federal government.
Hence, the Court held that Alabama’s tax on the insurance organization was
unconstitutional. Which of the following supports the act of the Court?
A. Supremacy clause
B. Exclusion clause
C. Strict scrutiny approach
D. Minimum rationality approach
E. Contract clause
The Colgate Doctrine allows:
A. resale price maintenance even under coercion.
B. a franchisor to require that franchisees purchase all of its equipment and inventory
from them.
C. the FTC to regulate unfair and deceptive acts or practices in commerce.
D. natural monopolies to exist outside of Sherman Act jurisdiction.
E. manufacturers to set a price and refuse to deal with those that won’t comply.
Which of the following parties would have standing to sue in a case to stop the merger
of two companies?
A. The CEO of the two companies’ biggest competitor
B. A competitor of either of the two companies
C. The board of the two companies’ competitors
D. A concerned third party
E. A shareholder of one of the two companies
Quasi-scrutiny tests are made on cases involving classifications based on _____.
A. gender
B. age
C. race
D. national origin
E. height
The burden of proof known as _____ is achieved when there is greater weight of
evidence in support of the proposition than there is against it.
A. clear and convincing proof.
B. beyond a shadow of a doubt.
C. preponderance of evidence.
D. beyond a reasonable doubt.
E. beyond all doubt.
Polygraph tests may:
A. be legally used by most private employers to screen job applicants.
B. be legally used by most private employers to randomly check current employees.
C. be legally used by private companies that sell controlled substances to screen and
randomly check current employees.
D. never be used in connection with employment.
E. only be used by government organizations to regularly check current employees.
The _____ approach refers to pollution control system under which the right to
discharge a certain pollutant would be auctioned off to the highest bidder.
A. point-source
B. bubble concept
C. cap and trade
D. emissions reduction banking
E. marketable rights
Which of the following actions by an employer violates the Wagner Act?
A. Threatening to fire any employees that vote to certify a union
B. Providing refreshments to those attending a union meeting
C. Refusing to allow an employee to have a union representative present when the
employee is being questioned about a theft that occurred on the premises
D. All of these
E. None of these
Under the Superfund law, a purchaser of land may escape the liability to cleanup
hazardous wastes by:
A. fixing responsibility on the previous owner of the land.
B. suing the land seller for the hazardous wastes left by the seller.
C. informing the government of any hazardous wastes in the land.
D. pleading ignorance to the knowledge of the act.
E. proving the exercise of due diligence in checking the land for toxic hazards.
To justify the tax, there must be sufficient contact, connection, tie, or link between the
business and the taxing state called the _____.
A. chain
B. nexus
C. cartel
D. band
E. network
“Benefit of the bargain” refers to the damages awarded to the buyer which is:
A. designed to restore the injured party to the economic position he/she occupied at the
time the contract was entered.
B. equal to the out-of-pocket expenses such as the legal fees incurred by the plaintiff.
C. equal to what the security was represented to be worth in the market.
D. equal to the combination of the out-of-pocket expenses and what the security was
represented to be worth in the market.
E. equal to the difference between what he/she paid and what the security was
represented to be worth.
A _____ is an intentional misrepresentation of a material fact that is justifiably relied
upon by someone to his or her injury.
A. negligence
B. fraud
C. conversion
D. battery
E. assault
The first federal statute of importance to the labor movement was the _____ which was
passed to strengthen the antitrust laws.
A. Clayton Act
B. Railway Labor Act
C. Norris LaGuardia Act
D. Wagner Act
E. Comstock Act
Which of the following is true of the Sherman Act?
A. Violations may be subject to criminal fines or imprisonment, but not both.
B. It covers antitrust activities by corporations, but not by individuals.
C. Violations of the Sherman Act may be enjoined by the courts.
D. Its sanctions are only civil punishments, and not criminal punishments.
E. Crimes under the Sherman Act are misdemeanors.
The three significant concepts of the Constitution that create a strong centralized,
federal government are the concept of separation of powers, the supremacy clause, and
the _____.
A. concept of federalism
B. concept of imperialism
C. overbreadth doctrine
D. contract clause
E. doctrine of preemption
Herman writes a note to Gerard, the manager of the neighborhood grocery store, asking
him to allow Bernard, Herman’s restaurant manager, to charge $500 worth of groceries
to the restaurant’s account at the grocery store. This is an example of which of the
following?
A. Nontrading partnership
B. Apparent authority
C. Implied authority
D. Expressed authority
E. Actual authority
Which of the following is true of the assumption of risks during delivery of goods?
A. The seller is always responsible for shipping the goods to the buyer.
B. The seller is liable for any damages incurred to the goods during shipment.
C. The buyer is liable for damages incurred to the goods during shipment.
D. The buyer is responsible for damages to goods when the seller is about to transfer for
shipment.
E. The buyer assumes the risk of loss till he/she receives the goods, as per destination
contracts.
Proponents of _____ believe that judicial review by judges should not be used except in
unusual cases.
A. judicial restraint
B. judicial activism
C. voir dire
D. judicial relativism
E. res judicata
In a situation where a buyer and seller have not mentioned details about delivery, which
of the following can be applied?
A. The seller will have to personally deliver the goods to the buyer.
B. The seller will have to ship the goods, assuming the risks of damages that take place
in transit.
C. The buyer and the seller will have to enter into another contract stating the details of
the delivery of the goods.
D. The buyer will have to make arrangements to pick up the goods at the location the
seller designates.
E. The contract will be held as a void contract by the court, since it contains indefinite,
unclear terms.
The Insider Trading and Securities Fraud Enforcement Act of 1988 provides that suits
alleging illegal use of nonpublic information may be filed up to a maximum period of
_____ years after the wrongful transaction.
A. six
B. ten
C. eight
D. five
E. seven
The NLRB assumes jurisdiction over:
A. independent contractors and household domestic workers.
B. employees of the railways and airlines.
C. retail enterprises with a gross volume of $500,000 or more a year.
D. employees who work for their spouse or parents.
E. all employees of the federal and state governments.
Interpreting Congressional intent, which of the following is never a BFOQ?
A. Race
B. Sex
C. Religion
D. National origin
E. Sexual orientation
When agencies exercise their quasi-legislative power by issuing guidelines that have the
force and effect of law, they are _____.
A. adjudicating
B. advising
C. rule making
D. investigating
E. determining
Under the _____ approach, businesses can cut pollution beyond what the law requires
and keep these reductions for their own future use or to sell to other companies as
emission offsets.
A. point-source
B. bubble concept
C. cap and trade
D. emissions reduction banking
E. marketable rights
Contract-based arbitration is considered to be:
A. voluntary because both parties have willingly agreed to participate.
B. unconstitutional in most states because it limits redress of grievances.
C. coercive because it provides an unfair advantage to the party originating the contract.
D. restrictive and undesirable because of expense and time considerations.
E. legally impractical because these agreements are too difficult to reach in early
contract negotiations.
Tom enters Kathy’s home through a closed window intending to steal a painting that she
has in her bedroom. When he gets to her bedroom door he hears that she isn’t alone so
he leaves. Which of the following is true of this situation?
A. Tom is guilty of larceny.
B. Tom will be held guilty for robbery.
C. Tom has committed burglary.
D. Tom did not take anything, hence is not guilty.
E. Tom can be held guilty of theft in deception.
