The concept of equal protection of the law:
a. applies to both state and federal governments.
b. prohibits any classifications whatsoever.
c. applies only to conduct by private parties.
d. does not permit reasonable classifications.
A Federal Trade Commission regulation gives a buyer three (3) business days in which
to cancel a home-solicited sale of goods or services costing more than:
a. $25.
b. $50.
c. $100.
d. $500.
Legal issues of Cyberspace include:
a. employment issues.
b. user issues.
c. contract issues.
d. all of the above.
Which of the following is not illegal?
a. an office football “pool” with a cash entry fee and cash prize
b. a raffle with an entry fee to win a car
c. a “giveaway” to every tenth person who buys meat at a butcher shop
d. a “giveaway” to every tenth person entering a department store
Regular meetings of shareholders are:
a. held at a time and place set forth in a notice given to all shareholders.
b. held at a time and place prescribed by the articles of incorporation or the bylaws.
c. called by the directors.
d. limited to the election of directors.
The parol evidence rule:
a. applies to complete written contracts.
b. prevents proof of fraud.
c. applies to incomplete contracts.
d. is not designed to preserve the integrity of written contracts.
Interpretations of aspects of the right to privacy are often found in:
a. statutes.
b. customs.
c. societal guidelines.
d. none of the above.
When employers allow employees to reimburse the employer for private use of text
services, employer monitoring and disclosure of those texts is:
a. always legal.
b. only legal if the employee gives his or her consent.
c. only legal for texts that are sent and received during work hours.
d. a violation of the law.
The Sherman Act focuses on:
a. unfair methods of competition.
b. combinations or contracts in restraint of trade.
c. permitted price discriminations.
d. intrastate commerce.
__________ refers to laws and precedent applicable to Internet transactions and
communications.
a. Cyberlaw
b. Cyborglaw
c. Silicalaw
d. Simlaw
An extended time payment plan:
a. does not provide for a discharge of the debtor.
b. provides for a discharge of the debtor.
c. does not require creditors holding the same type or class of claim to be treated the
same way.
d. will not allow the debtor to pay the debts in installments if the debtor’s creditors had
not originally agreed to such installments.
A common carrier of goods has the right to:
a. make reasonable and necessary rules for the conduct of its business.
b. charge a rate that enables a fair return.
c. charge demurrage.
d. all of the above.
When the primary party refuses to pay an instrument according to its terms, said party
is required to give:
a. notice of nonpayment.
b. notice of dishonor.
c. notice of denial.
d. secondary party notice.
Which is not a correct statement concerning the remedy of specific performance?
a. The subject matter of the contract must generally be unique.
b. An award of monetary damages would be an inadequate remedy.
c. The granting of specific performance is discretionary with the court.
d. It is generally available in all breach of contract cases.
An interest in personal property or fixtures that secures payment or performance of an
obligation is called a:
a. guaranty holding.
b. security interest.
c. guaranty interest.
d. good-faith guaranty.
Who may bring an action for relief under consumer protection legislation?
a. the Federal Trade Commission
b. a state attorney general
c. the consumer
d. all of the above
When an employee alleges religious discrimination because of an employee-observed
religious practice:
a. the employer must bypass seniority rules to accommodate the employee.
b. the employee must honor all bona fide religious practices.
c. the employer must make reasonable efforts to accommodate religious beliefs.
d. the employer must call in a substitute worker at additional cost.
An unincorporated association:
a. cannot sue in its own name.
b. cannot be sued in its own name.
c. does not have any legal existence apart from the members who compose it.
d. all of the above.
An accountant may be able to raise the defense of lack of privity in a malpractice suit:
a. brought under federal securities statutes.
b. based on negligence.
c. based on fraud.
d. all of the above.
Immanuel Kant’s categorical imperative theory:
a. requires that we avoid one-sided benefits as a result of ethical decisions.
b. makes it easier to settle international business ethical decisions.
c. believes you have to be fair and ethical whether you want to be or not.
d. all of the above.
Which of the following federal laws grants the SEC the power to suspend all trading
when markets are excessively volatile?
a. The Trust Indenture Act of 1939
b. The Market Reform Act of 1990
c. The Investment Advisors Act of 1940
d. The Remedies Act of 1990
The status of a trustee in a bankruptcy proceeding is best described as the:
a. prosecutor of the debtor.
b. successor to the debtor.
c. defender of the debtor.
d. protector of the debtor.
The Petroleum Marketing Practices Act gives gas station __________ the opportunity
to continue in business by purchasing the entire premises used in selling motor fuel
when the franchisor decides to sell the property and not renew a lease.
a. franchisees
b. licensors
c. joint venturers
d. partners
The equal protection clause:
a. requires all persons to be treated equally even if reasonable grounds for different
classifications exist.
b. allows laws that discriminate on the basis of moral standards.
c. requires that a statute be sustained unless it is clearly arbitrary or capricious.
d. allows laws that discriminate on the basis of cultural patterns.
Members of administrative agencies are ordinarily
a. pre-selected.
b. elected.
c. assigned.
d. appointed.
Modern decisions hold the principal liable for which actions of the agent?
a. Fraudulent acts
b. Misrepresentations
c. Both a. and b.
d. Neither a. nor b.
A tenant in possession has control of the property and is liable when his or her failure to
use due care under the circumstances causes harm to:
a. invitees.
b. licensees.
c. trespassers.
d. both a. and b.
To be negotiable, an instrument must:
a. be in writing.
b. be signed by the maker or the drawer.
c. contain a promise or order to pay.
d. all of the above.
The relatives of an individual who dies without a valid will may acquire title to the
decedent’s property through:
a. intestate succession.
b. the right of replevin.
c. testate succession.
d. the right of acquisition.
A violator of the Sherman Act may be subject to:
a. fine only.
b. imprisonment only.
c. both fine and imprisonment.
d. neither fine nor imprisonment.
Civil disobedience is the remedy natural law proponents use to change positive law.
Future goods can be identified before they are manufactured.
When a person who performs continuing services for another receives a fixed payment
that does not depend on the existence of profit and is not affected by losses, that person
is a partner.
Under the UCC, an assignment of all the assignor’s rights under a contract generally is
held to be both an assignment of rights and a delegation of duties.
When a building contractor has substantially performed a contract to construct a
building, the contractor is entitled to recover the full contract price.
Under the common law and the majority rule, a landlord has no duty to mitigate
damages when the tenant abandons the premises before the expiration of the lease.
Peter applied for a loan at three banks. Peter’s application was denied at the first two
banks but finally was approved by the third institution. Peter believes that the first two
banks denied his application because of his minority status. No explanation ever was
provided by the banks denying Peter’s request for funds. After obtaining the loan, Peter
soon found himself unable to make the prescribed payments. Peter went into default,
causing the bank to turn his case over to a collection agency. The collection agency
called him “night and day” and were very abusive in their collection practices. Peter
became quite distraught and unable to function at his job. As a result, Peter was soon
fired. Peter asks for your advice regarding his legal rights. What is your response?
A constitution is the written document that establishes the structure of the government
and its relationship to the people.
Unless otherwise agreed, every merchant seller warrants that goods are sold free of any
rightful claim by any third party.
A warehouser is an insurer of goods.
In a contract for the sale of goods, any modification made by the parties to the contract
must be supported by consideration to be binding.
Most courts hold that joint ventures are not subject to the same principles of law as
partnerships.
For tort liability to be imposed, the perpetrator of the tort must have acted with the
intent to do wrong.
A person who obtains life insurance generally can only name a beneficiary that has an
insurable interest in the life of the insured.
A franchisor is the person to whom the franchise is granted.
Sam Wilson often goes to the horse races, participates in his state’s lottery, and invests
heavily in the stock of major U.S. companies. At work, Wilson is approached by his
coworkers and asked to participate in a football pool. “It’s totally based upon skill,” his
friends claim. In addition, Wilson’s philanthropic club is holding a raffle in which an
individual could win a new car. Are these activities gambling and therefore illegal
activities?