The _____ function of an administrative agency is accomplished by making reports to
the president or the Congress.
A. adjudicatory
B. advisory
C. rule making
D. investigatory
E. determinacy
Section 5 of the _____ Act prohibits unfair or deceptive acts or trade practices.
A. Equal Credit Opportunity
B. Fair Credit Reporting
C. Truth-in-Lending
D. Fair Debt Collection Practices
E. Federal Trade Commission
Upon request by the FTC, the federal courts may assess fines for each of the following
EXCEPT:
A. when companies violate the cease and desist order.
B. when companies agree to fines as part of a cease and desist order.
C. when companies knowingly violate a prior FTC order against others.
D. when companies violate a trade regulation rule.
E. when companies agree to fines as part of a consent order.
Hannah Arendt believed that immoral behavior was often the result of:
A. apathy.
B. ignorance.
C. thoughtlessness.
D. boredom.
E. anger.
Who, among the following, does not have a duty of confidentiality?
A. An attorney
B. A real estate broker
C. A physician
D. A mechanic
E. A certified public accountant
_____ is an order by a judge either to do something or to refrain from doing something.
A. A penalty
B. An injunction
C. An actual damage
D. A punitive damage
E. A compensatory damage
Tony has admired Ann for months, but he has never talked to her. One day, Tony walks
up to Ann and gives her a hug and a kiss. Ann is angry and decides to sue Tony. Tony
has committed the tort of:
A. duress.
B. conversion.
C. battery.
D. negligence.
E. fraud.
The dominant form of consequentialism is:
A. utilitarianism.
B. social contract theory.
C. the categorical imperative.
D. the Protestant ethic.
E. Marxism.
Which of the following is a control device that stationary source polluters may utilize to
achieve design standards?
A. Catalytic converters
B. Short stacks
C. Water jets
D. Electromagnetic precipitators
E. Scrubbers
The City of Dover has passed a written law banning smoking in most restaurants and
bars. Dover has enacted a/an:
A. statute.
B. act.
C. regulation.
D. ordinance.
E. jurisprudence.
Although the FTC is an independent regulatory agency, the FTC commissioners often
reflect the views of:
A. lawmakers of the upper house of Congress.
B. the common public who elected them to their positions.
C. theconsumer products companies.
D. the executive head of the Bureau of Consumer Protection.
E. the president who appointed them. .
Section 10(b) and Rule 10b-5 are usually referred to as the _____ provisions of the
1934 Act.
A. civil
B. discretionary
C. general duties
D. antifraud
E. rulemaking
A(n) _____ beneficiary is a third party who unintentionally benefits from a contract.
A. donee
B. creditor
C. intended
D. accidental
E. incidental
Which of the following is an activity that a limited partner may NOT engage in?
A. Acting as an agent of the partnership
B. Approving an amendment to the partnerships’ certificate
C. Participating in management
D. Inspecting any of the partnership’s financial records
E. Advising or consulting with a general partner
Which of the following forms of organization is most easily formed at minimal costs?
A. Limited partnership
B. Partnership
C. Corporation
D. S corporation
E. Limited liability company
A(n) _____ is a civil wrong other than a breach of contract.
A. ordinance
B. tort
C. sanction
D. remedy
E. dicta
Which of the following is true about the supremacy clause?
A. State laws that conflict are incorporated when the federal government enacts laws in
an area.
B. If a federal law preempts a subject, a state law that attempts to regulate it is
constitutional.
C. It states that courts must interpret state and federal laws to see if they are in conflict.
D. It is applied when the federal government is not acting in pursuit of its
constitutionally authorized powers.
E. It does not apply to the federal government.
Halle notices that there are unfair pay practices going on at her company wherein
whites are being paid higher than African Americans for the same job. She files a
complaint because she feels the company is not following the law. The company does
not take kindly to the complaint. Halle is demoted, her staff has been taken away from
her, and she is forced to take a salary cut. This is an example of:
A. affirmative action.
B. disparate impact.
C. reverse discrimination.
D. retaliation.
E. business necessity defense.
Which of the following statements is false concerning peremptory challenges?
A. The number of peremptory challenges allowed varies from state to state.
B. The number of challenges may vary between the parties.
C. One can be used to strike a juror from the jury because he is a man.
D. No reason needs to be given to use a peremptory challenge.
E. The number may vary depending on the type of case being tried.
An agent who causes harm to a third party may create legal liability owed by the
principal to the third party. This liability is known as:
A. product liability
B. contractual liability
C. principal liability
D. professional liability
E. vicarious liability
Jonathan wants to start a business. Which form of business organization will give him
the most complete and exclusive control over business decisions?
A. Sole proprietorship
B. Partnership
C. Corporation
D. S corporation
E. Limited liability company
Victor Enterprise Inc. writes a letter dated August 1 to Hallway Stores, offering to sell
table lamps to Hallway Stores at $80 each for the next one month. In mid August,
Victor Enterprises receives an offer from Shine Retailers to purchase the table lamps at
a price of $85 each. Can Victor withdraw its offer to Hallway Stores?
A. Yes, as this is only an option.
B. No, since the doctrine of promissory estoppel is applicable.
C. Yes, the offer was simply an invitation to negotiate.
D. No, as this is a firm offer.
E. Yes, the offer may be withdrawn since it lacks consideration.
Tort law attacks the pollution problem using the established theories of:
A. nuisance and trespass.
B. negligence and strict liability.
C. nuisance, trespass, and strict liability.
D. trespass, negligence, and nuisance.
E. nuisance, negligence, trespass, and strict liability.
Alan committed a felony in Delaware, but has returned to Minnesota, where he lives
permanently. Alan has a respectable job in Minnesota, and is a respected citizen there.
When the Delaware police locate Alan:
A. they may go to Minnesota to arrest Alan and bring him back because of the felony
committed in Delaware.
B. Alan may be arrested and tried in Minnesota for the Delaware felony.
C. as long as Alan commits no crimes in Minnesota, he cannot be arrested or detained
for something that happened in another state.
D. they must wait till the statute of limitations for the felony runs out.
E. Delaware must seek extradition of Alan to have him returned to Delaware.
Omi works as a cashier for Trinity Grocery Store. Omi believes that a customer is
attempting to use counterfeit money to make a purchase and gets into a fist fight with
the customer who truthfully denies using counterfeit money. Is Trinity liable for injuries
the customer received in the fist fight?
A. Yes, if Omi reasonably intended to further Trinity’s business interests.
B. Yes, since Trinity gave Omi apparent authority.
C. No, since this was a personal incident not related to work.
D. Yes, since Trinity supplied the instrumentality for the action.
E. No, since a fist fight is outside the scope of employment.
Which of the following statements holds true for the term “redlining”?
A. It refers to the practice in which real estate brokers guide prospective home buyers
toward or away from certain neighborhoods based on their race.
B. It refers to the perceived business practice of a company providing a product or a
service to only the high-value or low-cost customers of that product or service.
C. It refers to a way of encouraging white property owners to sell their houses at a loss
by implying that racial minorities were moving into their previously racially segregated
neighborhood, thus depressing real estate property values.
D. It refers to an organization targeting minority consumers by charging them more
than would be charged to a similarly situated majority consumer.
E. It refers to the refusal of an organization to make loans at all in certain areas where
property values are low.
Under the 1991 Civil Rights Act amendments, _____ damages include damages for the
pain and suffering of discrimination.
A. punitive
B. speculative
C. nominal
D. restitutionary
E. compensatory
Which of the following is an example of wilful and wanton negligence?
A. An employer intentionally induces the employees of another company to break the
employment contract.
B. A politician delivers a speech defaming a public figure using false statements about
that person.
C. A newspaper publishes articles about the personal life of a celebrity.
D. A drunk driver meets with an accident during which the passengers in the car get
injured.
E. A doctor accidently injects a patient with a wrong medicine, causing the patient to
suffer adverse medical reactions.
Which of the following is an advantage of the corporate organization?
A. License fees and franchise taxes are rarely assessed against corporations.
B. Control of a corporation may be held by those with a minority of the investment.
C. The cost of forming and maintaining a corporation is minimal.
D. Once a corporation is properly formed, it becomes automatically eligible to do
business in all 50 states.
E. Ownership must be divided into three or more equal shares.
If the judge finds that the verdict is erroneous as a matter of law, she may enter a _____.
A. directed verdict
B. summary judgment
C. judgment notwithstanding the verdict
D. voir dire
E. peremptory challenge
Under the _____, courts may be called upon to decide if a state law is invalid because it
conflicts with a federal law.
A. minimum rationality approach
B. exclusion clause
C. strict scrutiny approach
D. supremacy clause
E. contract clause
An easement:
A. creates ownership of the land in question.
B. exists for the benefit of pharmaceutical corporations.
C. occurs when landlocked property is purchased.
D. creates a leasehold estate.
E. places a particular use of land behind the exclusive legal fence.
Which of the following organizations is equally managed by the members unless a
manager is designated?
A. Limited partnership
B. Corporation
C. Limited liability company
D. Sole proprietorship
E. S corporation
Even with a code of ethics, why is it important for top management in a corporation to
set an example for ethical conduct?
