Chapter 11 of the Bankruptcy Act keeps creditors from a debtor’s assets while the
debtor, under the supervision of the court, works out a financial reorganization plan and
continues to pay creditors.
Based on Julia’s credit history, TrueMoney Bank denies her a loan. In this case, the
bank need not notify Julia and tell her where it secured her credit information.
Banning a product from the market is usually the first remedy sought by the Consumer
Product Safety Commission (CPSC).
An exclusive dealing contract is one in which defendants have simply observed each
other’s pricing behavior over time, and they are able therefore to anticipate each other’s
future conduct and act accordingly without any direct collusion.
The owners of a corporation are called stockholders.
A business that hires an independent contractor generally is required to comply with a
wide range of employment and labor law standards.
Spam is an electronic form of junk mail.
A company agrees to restrict sales to the east of the city, and its competitor agrees to
restrict sales to the west of the city. This arrangement is lawful under the Sherman Act.
Wright Corp., an American firm, is establishing an office in Africa with Mary as the
manager. After two months of endless efforts, Mary is informed that in order to get
utilities for its African branch, she must give some money to the government-based
electric company agent as an “encouragement,” just as all the other businesses have
done. Under the Foreign Corrupt Practices Act, which of the following statements about
the payment is true?
A. The payment is illegal since it is a bribe to a foreign government official.
B. The payment is legal as long as all other businesses do the same thing.
C. The payment is legal since that is the only way she can get utilities.
D. The payment is legal since it is merely “grease” money to expedite routine action.
The doctrine of _____ states that a promisor is stopped from denying the existence of a
contract where a promisee has detrimentally relied on that promise.
A. ultra vires
B. promissory estoppel
C. substantial performance
D. promissory note
A situation where the government allows land development only if the owner dedicates
some property interest is called a(n) _____.
A. exaction
B. accommodation
C. total taking
D. partial taking
Intentionally causing another to reasonably believe that he or she is about to be the
victim of a battery is a(n) _____.
A. slander
B. libel
C. indictment
D. assault
Which of the following statements is true of the Magnuson-Moss Warranty Act?
A. The act made it illegal for sellers to provide limited warranties.
B. The act, being entirely consistent with Congress’s hopes, applies to all products and
all warranties.
C. The act extended and clarified the warranty rules of the Uniform Commercial Code.
D. The act specifies that offer of express warranty is a must.
Which of the following would most likely be the result of mandatory bargaining
between employers and labor representatives?
A. A change from an eight hour, five-day work week to a ten hour, four-day work week
B. A change in the internal affairs of a union
C. A new economic decision to phase out a product line
D. A new agreement between the employees and the management to settle strikes
Lavender, a beauty salon, uses the symbol of a bouquet of lavender flowers, tied with a
maroon ribbon to distinguish its packages from its rivals. The symbol used by Lavender
is an example of a _____.
A. patent
B. domain name
C. service mark
D. copyright
According to the free market view, which of the following is considered the best
measure of social responsibility?
A. Profit maximization
B. Long-term company interest
C. Triple bottom line/sustainability
D. Social and environmental performance
A _____ distinguishes the source of a particular good or service, whether that is
accomplished by a commercial name, packaging, logo, or other distinguishing feature.
A. patent
B. trademark
C. copyright
D. trade secret
Which of the following statements is true of the Congressional Budget Office’s
estimation about environmental taxes and how Americans spend money on gas and
utilities?
A. The poorest 20 percent of Americans spend only 6 percent of their income on gas
and utilities.
B. The richest 20 percent of Americans spend 40.2 percent of their income on gas and
utilities.
C. The poorest 20 percent of Americans spend 21.4 percent of their income on gas and
utilities. D. The United States collects federal taxes on energy (including the federal gas
tax) amounting to $10 per ton.
Which of the following is a requirement necessitated by the Clean Air Act?
A. It required all pollutant dischargers to secure an Environmental Protection Agency
permit.
B. It required new equipment to capture industrial and business pollution.
C. It required the states to set air quality standards.
D. It required limits to be imposed on the amount of pollutants that may lawfully enter
the water of the United States from any “point source.”
Which of the following statements is true of the sex discrimination law?
A. Sex discrimination claims brought under Title VII of the Civil Rights Act of 1964
include disparate treatment and sexual harassment, but not disparate impact.
B. Discrimination is unlawful even if sex is a bona fide occupational qualification
(BFOQ) reasonably necessary to the normal operation of a business.
C. Asking job applicants about pregnancy by an employer can be considered a form of
sex discrimination.
D. Federal statutes related to sex discrimination at workplace cover only women.
Corporations distribute their aftertax income to their shareholders as _____.
A. fringe benefits
B. dividends
C. exempt securities
D. disgorgements
Developing countries typically have a comparative competitive advantage over
developed countries in _____.
A. cheap labor
B. an educated workforce
C. manufacturing infrastructure and expertise
D. a special zone of particularly well-developed industries
Which of the following is a restraint that arises from an agreement among competitors
themselves?
A) Horizontal restraint of trade
B) Franchise tying
C) Vertical restraint of trade
D) Conscious parallelism
Which of the following is true of economic strikes?
A. All strikes involving unfair labor practices fall into this category.
B. Economic strikers can be fired by the employers.
C. The use or threat to use permanent replacements has become a powerful tool for
employers facing economic strikes.
D. They are initiated by workers when the employers interfere with legitimate union
activities or fail to bargain in good faith.
Which of the following statements is true of the conditions concurrent clause?
A. Each performance is independent.
B. It specifies that the parties are to perform their duties at the same time.
C. An event must occur before the parties are obliged to perform.
D. It excuses performance if a future event transpires.
Which of the following statements is true of a false light claim?
A. It would need to be highly offensive to a reasonable person.
B. It involves injury to one’s reputation rather than emotional well-being.
C. It deals with interferences that often take the form of light, noise, smell, or vibration.
D. It is often treated as the tort of injurious falsehood.