1) speedster is an automobile manufacturing company that has a factory in seattle,
washington. it has placed keith mcshane, the operations head of the factory, in charge of
investigating the firms decision whether to move the factory to qingdao, china. keith is
against the idea of the factory relocating to qingdao because his fellow americans will
loose their jobs to the chinese. therefore, he is desperately searching for information
that favors seattle over qingdao. which of the following prescribed guidelines for ethical
decision making will keith need to focus on to make an unbiased, ethical decision?
a.will the shareholders offer support?
b.what facts impact my decision?
c.how can i increase the number of shareholders?
d.which decision will allow me to retain my job?
2) in the form of alternative dispute resolution (adr) called court-annexed arbitration:
a.a neutral third party is called in to mediate.
b.courts decide on certain types of criminal lawsuits.
c.the losing party has the right to a regular trial.
d.civil lawsuits are sent to the supreme court for a hearing.
3) responsibility with respect to instruments includes:
a.those who have access to instruments that are in incoming or outgoing mail.
b.those who process instruments received by the employer.
c.those who have access to instruments as they are transported.
d.those who have access to instruments as they are stored.
4) which of the following is not a requirement in the enforceability of a noncompetition
clause?
a.the noncompetition clause must serve a legitimate business purpose.
b.the noncompetition clause must be regarding the sale of goods.
c.the restriction on competition must be reasonable in time, geographic area, and scope.
d.the noncompetition clause should not impose an undue hardship.
5) traditional antitrust thinkers argue that:
a.concentrated economic power may lead to antidemocratic concentrations of political
power.
b.antitrust regulations should protect competition instead of competitors.
c.concentration within a particular industry does not preclude interindustry competition.
d.domestic concentration might be necessary for effective international market
competition.
6) in order to reduce creditor attempts to pressure debtors to reaffirm, which of the
following acts requires that a reaffirmation promise be made prior to the date of the
discharge and gives the debtor the right to revoke his promise within 30 days after it
becomes enforceable?
a.the national labor relations act
b.the bankruptcy abuse prevention and consumer protection act
c.the uniform debt-management services act
d.the bankruptcy reform act
7) which of the following is also known as an implied-in-law condition since it is
imposed by law rather than by agreement of the parties?
a.condition precedent
b.express condition
c.constructive condition
d.subsequent condition
8) which of the following factors is most important in determining whether a
manufacturer is strictly liable in tort for a defective product?
a.the negligence of the manufacturer.
b.the contributory negligence of the plaintiff.
c.modifications to the product by the wholesaler.
d.whether the product caused injuries.
9) a(n) _____ is the basic selling document of a security offering registered under the
1933 act.
a.prospectus
b.investment letter
c.registration statement
d.suitability letter
10) lee, a landlord, hires shomo, a repairman, to fix a broken staircase in the house
occupied by his tenants, the grants. however, mrs. grant has an accident while climbing
down the stairs and injures herself severely. it was found that shomo had not fixed the
staircase properly, which caused this accident. which of the following is true of this
situation?
a.the grants can file a lawsuit against shomo, since shomo was an agent and did not
perform his duties properly.
b.lee will be held liable under the doctrine of respondeat superior for the
non-performance of shomo.
c.the grants can hold lee directly liable for shomos tortious behavior, since shomo was
lees employee.
d.lee will be held directly liable for shomos failure to perform, since shomo was lees
nonemployee agent.
11) xavier deeds to peter, a trustee, his property in form of security, for the loan, which
is lent by smith, the beneficiary of the trust. the nature of this transaction renders it as a
deed of trust. under these circumstances, if xavier defaults to pay the loan, which of the
following is the appropriate way in which smith can recover his loan?
a.by asking xavier to enter into an action and sale contract
b.by exercising the right of exoneration
c.by exercising right of reimbursement
d.by notifying peter to sell the property
12) which instrument enables the sellers bank to just act as an agent for collection of the
due amount from the buyer?
a.confirmed letter of credit
b.advised letter of credit
c.negotiable bill of lading
d.draft
13) bob and evan both own tanning salons in ridgemont, california. they form the slow
growth society of ridgemont as a lobbying group to persuade ridgemont city council to
pass a zoning ordinance that would effectively prohibit new personal services
businesses such as tanning salons in ridgemont. this is prohibited under the sherman act.
14) helga owns an insurance business in idaho. her clients are all idaho residents. she
later sells her business to carlos. as part of the deal, the contract contains a non-compete
clause that prevents helga from operating an insurance business anywhere in idaho,
washington or oregon for a period of five years. six months after this sale, helga opens
an insurance business in oregon. if carlos seeks to enforce the non-compete agreement
against helga, will he probably be successful?
a.yes, because this agreement is reasonable.
b.yes, because the clause is not imposing an undue hardship.
c.no, because this agreement is not reasonable.
d.no, because the agreements is not yet converted into a treaty.
15) a joint will:
a.can only have a single beneficiary.
b.is only valid if the testators are a married couple.
c.is a single instrument that constitutes the will of both or all of the testators.
d.cannot be changed once it is created.