Section 8(b) of the National Labor Relations Act permits a labor organization to try to
make an employer compensate workers for services not performed.
Labor unions can lawfully establish political action committees to solicit and disburse
voluntary campaign contributions.
A description of goods which is made part of the basis of a bargain creates an express
warranty that the goods shall conform to the description.
Business has enjoyed a central and favored role in American life, and as such, it must
assume a measure of the burden for the welfare of the total society.
High market concentration often promotes competition.
Innocent misrepresentation differs from fraud only in that the falsehood was intentional
in the former.
The federal Fair Debt Collection Practices Act forbids debt collectors from contacting
debtors during “inconvenient” hours.
Which of the following statements is true of vertical territorial and customer restraints?
A. They are a type of price restraint.
B. They arise from agreements among competitors.
C. They encourage intrabrand competition.
D. The rule of reason is to be applied to such restraints.
Which of the following statements indicates a material breach of contract?
A. A party falls beneath substantial performance and does not have a lawful excuse for
that failure.
B. Complete performance is not achieved because of minor deviations from the
agreed-upon performance.
C. Before performance is due, a party indicates by word or deed that she or he will not
perform.
D. A party performs the tasks and completes the contract.
Briefly explain the basic premise of the Social Responsibility Pyramid developed by
Professor A. Carroll.
Which of the following is one of the key provisions of the Credit Card Accountability,
Responsibility, and Disclosure Act of 2009?
A. Lenders can issue credit cards to those under age 21 without any objections.
B. Interest rates, with some exceptions, cannot be raised in the first year.
C. Credit card issuers can charge interest on bills paid on time.
D. Credit card companies can increase the annual percentage rate on all existing
account balances.
In the context of the Bankruptcy Act, a _____ can be voluntarily filed in federal court
by a debtor, or creditors can seek an involuntary bankruptcy judgment.
A. Chapter 11 reorganization lawsuit
B. Chapter 15 class action lawsuit
C. Chapter 13 adjustment of debts petition
D. Chapter 7 liquidation petition
Which of the following is a feature of the federal Consolidated Omnibus Budget
Reconciliation Act (COBRA)?
A. It provides rights to minimum wage and overtime pay.
B. It imposes a general duty on most employers to provide a workplace free of
“recognized hazards causing or likely to cause death or serious physical harm to
employees.”
C. It requires employers with 20 or more employees to permit departing employees to
retain group health coverage at their own expense for up to 18 months.
D. It entitles eligible employees of covered employers to take job-protected, unpaid
leave for certain family-related or medical reasons.
Which of the following statements is true of the Uniform Computer Information
Transactions Act?
A. It has not been widely approved in the U.S.
B. It focuses on procedural aspects such as electronic signatures.
C. It has been amended once.
D. It has been adopted in 20 of the 50 states.
Which of the following is a difference between vertical restraints and horizontal
restraints?
A. Vertical restraints, in general, are based on tacit understanding while horizontal
restraints, in general, are based on mutual observation.
B. Vertical restraints eliminate competition, while horizontal restraints promote
competition.
C. Vertical restraints are those arising from an agreement among competitors
themselves, while horizontal restraints ordinarily are those imposed by suppliers on
their buyers.
D. Vertical restraints, in general, are resolved under the rule of reason while horizontal
restraints, in general, are per se unlawful.
Which of the following statements is true of incidental beneficiaries?
A. Often a second party receives benefit from a contract.
B. The benefit received was not the contracting parties’ primary purpose or intent.
C. The primary purpose in entering a contract is to make a gift to another.
D. The beneficiary can sue the contracting party for payment.
Which of the following statements accurately describes substantive laws?
A. They create, define, and regulate legal rights and obligations.
B. They include the judicial system and the rules by which it operates.
C. They encompass questions of where to hear a case, what evidence to admit, and
which decisions can be appealed.
D. They embrace the systems and methods available to enforce the rights specified in
procedural law.
Which of the following statements is true of the False Claims Act?
A. It creates new crimes and raises penalties to as much as 25 years of imprisonment
along with heavy fines.
B. It forbids fraud in government contracts and rewards those who help stop fraud.
C. It requires publicly traded companies to establish internal control systems designed
to assure the accuracy of financial information.
D. It requires publicly traded companies to disclose whether they have adopted an
ethics code for senior financial management, and if not, why they have not done so.
Which of the following statements is true of primary picketing?
A. It is expressed directly to the employer with whom the picketers have a dispute.
B. It is protected by the National Labor Relations Act, even if it is for an unlawful
purpose.
C. It does not have constitutional or statutory protection.
D. It does not constitute an unfair labor practice, even if the picketers are violent or
coercive.
Which of the following exceptional circumstances admits parol evidence?
A. To prove circumstances that would validate a written contract
B. To delete terms from a complete written contract
C. To explain ambiguities in a written contract
D. To infer the terms of a contract in a one-sided manner
Which of the following statements is true of the Electronic Signatures in Global and
National Commerce Act (E-SIGN)?
A. President Clinton had refused to sign it into law.
B. Under this act, consumers cannot be forced to accept electronic signature
agreements.
C. It forces consumers to receive records and documents electronically rather than in
paper form.
D. It does not give electronic signatures the same legal stature as handwritten ones.
Which of the following consumer protection agencies in the United States is charged
with providing financial education, thereby promoting Americans’ financial literacy?
A. The Consumer Product Safety Commission
B. The Consumer Financial Protection Bureau
C. The Education Resources Information Center
D. The Chief Financial Officers Council