Which of the following guarantees that a witness testifying in a court or legislature may
never be sued for defamation?
a. recovery principle
b. protected right to slander
c. defamation privilege
d. absolute privilege
In which of the following situations is the seller a merchant under Article 2 of the
UCC?
a. Paul, a full-time college student, sold his textbooks to State Bookstore.
b. Randall, a part-time college student and full-time father, sold his textbooks to a
friend.
c. Zompa Inc., a toy manufacturer, contracted to sell dolls to TonTon Department Store.
d. Mabel, a stay-at-home mom, sold her car to her friend Gloria.
Consumers may keep as a gift any unordered merchandise that they receive in the mail.
a. True
b. False
Graham purchased a car and subsequently sold it to Harlow. Harlow paid full value for
the car and had no reason to know that Graham had stolen the car and did not own the
title. Which of the following best describes this situation?
a. Graham had good title and Harlow gets good title.
b. Graham had good title and Harlow gets a voidable title.
c. Graham had void title and Harlow gets void title.
d. Graham had void title and Harlow gets good title.
The percentage of people dying without a will is approximately
a. 5%.
b. 25%.
c. 65%.
d. 90%.
Under Superfund legislation, to what extent must a hazardous waste site be cleaned?
a. Reasonable conditions under the circumstances.
b. A safe level for the area in which it is located.
c. Pristine condition, regardless of cost.
d. To the condition of the property before the hazardous waste was dumped on it.
Burns Medicine Shop developed a website where customers could ask the pharmacists
questions and could refill prescriptions online. What statute requires Burns to have and
disclose a privacy policy to anyone using the website?
a. The FTC Act
b. The Electronic Communications Privacy Act
c. The Fair Information Practices Act
d. No statutes presently require websites to have or disclose a privacy policy.
After the plaintiff has presented her case, the defendant may be granted a
a. directed verdict.
b. summary judgment.
c. judgment NOV
d. judgment on the pleadings.
The United States Supreme Court has the power to
a. appoint judges to serve on the Supreme Court.
b. void laws passed by Congress.
c. issue executive orders.
d. ratify treaties.
Truan, Inc. has decided to market a new pesticide. Truan must register the pesticide
with the EPA.
a. True
b. False
What is a major argument by the United States against the GATT Treaty?
a. The United States competes against countries with unlimited pools of exploited labor.
b. The treaty limits free trade based on its “most favored nation” requirement.
c. The United States cannot apply the same taxes on imported goods that it applies to its
domestic goods.
d. The treaty does not provide any means for settling trade disputes between its member
states.
A shareholder with a large block of stock whose goal is to influence management
decisions and strategic direction is called
a. a power broker.
b. a controlling member.
c. a lead investor.
d. an activist investor.
What word is best associated with deontological ethics?
a. happiness
b. outcome
c. obligation
d. benefit
Stephen wants to give his niece, Dawn, a piece of jewelry as a gift. Stephen gives Tracy,
his agent, the bracelet to take to Dawn. The delivery element of making a gift has been
completed.
a. True
b. False
Assume that Sherrie’s Cherries contracts with Dessert World to sell and ship 600
pounds of cherries in three equal installments of 200 pounds each. If the first
installment arrives with 5 pounds of spoilage, then Dessert World may
a. reject the installment shipment because of the perfect tender rule.
b. not reject the installment if those in the food industry expect a small percentage of
spoilage with fresh fruits or vegetables.
c. reject the entire contract.
d. declare a breach and “cover.”
If one party makes accessions without agreement and the improvements can be “undone
without damaging the property, the improver must undo them.
a. True
b. False
Roberto sued Monica for injuries received in a traffic accident. If Monica does not
respond to the complaint and summons served by Roberto within the prescribed time
limits, Roberto may obtain a
a. judgment on the pleadings.
b. summary judgment.
c. pretrial conference.
d. default judgment.
In some industries it is a routine practice to draft contracts permitting imperfection in
the sellers goods, thereby limiting the effect of the perfect tender rule by the parties
agreement.
a. True
b. False
The last protected trait added by Congressman Smith of Virginia to the bill which
became Title VII of the Civil Rights Act of 1964 was
a. sex (gender).
b. sexual orientation.
c. national origin.
d. race.
Masterview, Inc. purchased a new computer system, which included some computer
programs. When Masterview developed financial troubles, two competing creditors of
Masterview claimed the right to repossess the computer system and the programs. The
UCC distinguishes ‘software from “goods and treats them differently for some purposes,
which would be important in this situation.
a. True
b. False
A security interest in money may be perfected by
a. filing a financing statement.
b. creating a PMSI.
c. possession only.
d. redemption.
If the President vetoes a bill and if both the House and Senate repass the bill by a
two-thirds margin, the bill becomes law.
a. True
b. False
Jerry enters a restaurant and hangs his coat in an unattended cloakroom near the
entrance of the restaurant. Even though no employee of the restaurant is present, the
provision of the cloakroom makes Jerry think it will be safe. In this situation, the
restaurant is the bailor of Jerrys coat.
a. True
b. False
Mulligan Domestics Co. breached a contract by refusing to accept its order for 60 bolts
of fabric from Wellington Mills, although the fabric met the contract specifications. In
this situation, Wellington Mills
a. has at least four remedies under the UCC.
b. may resell the fabric to someone else and, if it sues Mulligan, Wellington Mills will
be awarded the full contract price.
c. may choose not to resell the fabric and settle for the difference between the contract
price and the market value.
d. would be awarded consequential damages by most courts.
Written defamation is _____; oral defamation is _______.
a. fraud; conversion
b. conversion; fraud
c. slander; libel
d. libel; slander
Wever, Inc. is considering relocating a facility to Mexico. The interests of the various
stakeholders affected by this decision may conflict.
a. True
b. False
The Milicic v. Basketball Marketing Company, Inc. case illustrated the proper use of a
preliminary injunction.
a. True
b. False
Jamal was recently hired as a sales representative for a pharmaceutical company. He
notices that all the other sales reps “pad” their expense accounts by claiming meals with
clients that never took place and then pocket the extra money. Jamal figures that since
everyone else is cheating on their expense accounts, he might as well do the same.
What ethics trap is Jamal falling into?
a. following orders
b. competition
c. conformity
d. lost in a crowd
The primary goal of the North American Free Trade Agreement (NAFTA) was to
a. allow Canada, the United States, and Mexico to compete as a common economic
entity against other countries in the world.
b. allow for the free and unrestricted movement of people from one country to another
to improve the labor market of all three counties.
c. eliminate almost all trade barriers between the three nations.
d. establish a common set of tariffs and trade restrictions for external countries.
Liquidated damages are awarded to parties who have experienced an injury to their
legal rights but have no actual loss.
a. True
b. False
As it pertains to the Electronic Communications Privacy Act, all of the following are
considered electronic communication EXCEPT
a. websites
b. email
c. cell phones
d. social media
The courts will find an implied contract when
a. justice demands it.
b. conduct of the parties indicates they intended an agreement.
c. there is promissory estoppel.
d. there is undue influence.
Emily runs a childrens clothing boutique which takes in local homemade items on a
consignment basis. Her standard form contract indicates that Emily has the right to put
items on sale without prior approval, but does not specify what effect the sale has on the
consignors payment percentage. Her intent is to keep the same profit she would have
had without the sale. She is using ambiguity in her contract to increase her sales and
profit.
a. True
b. False