Seiko works for TallTales Publishing, Inc. The basis for Seiko’s contribution under the
Federal Insurance Contribution Act to help pay for benefits that will partially make up
for her loss of income on retirement is her
a. seniority at TallTales.
b. annual wage base.
c. special job skills.
d. county of residence.
Answer:
Mouth & Gums, Inc. (CSI), engages in deÂceptive advertising when it markets its
product Oral Rinse as able to kill germs over long periods of time. In an action against
Mouth & Gums, the firm is ordered to stop its false advertisÂing of Oral Rinse and
other products. This is
a. a counteradvertising order.
b. a multiple product order.
c. a ‘cooling-off’ law.
d. a validation notice.
Answer:
Energy Resources, Inc., operates an oil refinery near Forest River, which flows into
Grove Lake. Discharging oil from the refinery into the river can result in
a. penalties and damages.
b. penalties only.
c. damages only.
d. no penalties or damages.
Answer:
Iago believes that he is a victim of a form of employment discrimination that falls under
the Civil Rights Act of 1964. Compliance with this statute is monitored by
a. employees and job applicants, not an administrative agency.
b. employers and businesses, not an administrative agency.
c. the courts and Congress, not an administrative agency.
d. the Equal Employment Opportunities Commission.
Answer:
Sophie and Tiny incorporate their beverage-container business as U-Twist Products,
Inc. The first board of directors may be appointed by the firm’s
a. initial board of directors.
b. incorporators.
c. first officers.
d. preferred shareholders.
Answer:
Bonds & Stocks Corporation, and its officers, directors, and shareholdÂers, buy and sell
securities. SEC Rule 10b-5 applies to the purchase or sale of
a. a security by a financial corporation only.
b. a security involving a corporate insider only.
c. a security involving short-swing profits only.
d. any security.
Answer:
To notify the public of a proposed rule, the U.S. Office of Labor-Management
Standards, like other federal agencies, publishes the proposal in
a. the Administrative Procedure Act.
b. the Code of Federal Regulations.
c. the Federal Register.
d. the United States Code.
Answer:
Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose
couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is
expected to pick up the goods. The place of delivery is
a. Fuel Connector’s place of business.
b. Go-Flo’s place of business.
c. the current location of the hose couplings and fittings.
d. the U.S. Postal Service office nearest to Go-Flo’s place of business.
Answer:
Dharma enters into a contract to manage the operations of Esther’s dental office for one
year, renewable for subsequent one-year terms. If this contract is discharged like most
contracts, it will be
a. canceled.
b. breached.
c. altered.
d. performed.
Answer:
Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, reÂspecÂtively.
Helen agrees to buy ‘Garth’s ATV’ for $750. Garth believes, in good faith, that he is
selling the $500 ATV. Helen believes, in good faith, that she is buying the $1,000 ATV.
In this situation
a. Garth is entitled to $750 for the $500 ATV.
b. Helen is entitled to the $1,000 ATV for $750.
c. Helen must buy both ATVs for $1,500.
d. there is no contract.
Answer:
Much of American law is based on
a. the English legal system.
b. the French legal system.
c. Greek civil law.
d. ancient Chinese law.
Answer:
Service Employees International Union and Timberline Products, Inc., have their disÂ-
pute resolved in arbitration. The arbitrator arbitrates issues that the parties did not agree
to submit to arbitration. This is a ground for a court to
a. none of the choices.
b. review the merits of the dispute.
c. review the sufficiency of the evidence.
d. set aside the award.
Answer:
Ralph is interested in buying a franchise from Sparkle Beverages Inc. For Ralph to
make an informed decision concerning this purchase, Sparkle Beverages must disclose
in writÂing or online
a. general estimates of costs and sales, but not the basis for them.
b. material facts such as the basis of projected earnings figures.
c. no information.
d. start-up requirements, but not renewal conditions.
Answer:
Guitar Factory Corporation files a registration statement and delivers a prospectus to
the appropriate parties. These items are intended to enable the evaluation of certain
financial risks by
a. market professionals to explain to all investors.
b. government regulators to disclose to the general public.
c. sophisticated investors only.
d. unsophisticated investors.
Answer:
Jordan is a surety for Kelly’s loan from Lenders Credit Corporation. When the loan
comes due, Kelly tries to pay Lenders Credit, but the creditor rejects the payment.
Jordan is
a. released from any obligation on the debt.
b. required to pay the amount of the debt to Lenders Credit.
c. required to pay up to half of the amount of the debt to Lenders Credit.
d. required to pay the amount of the debt to Kelly.
Answer:
Vidal is an employee of Wild Thing Ranch. Vidal learns that Wild Thing is illegally
importing endangered animals to sell as pets. He reports his employer’s illegal activities
but is laid off shortly thereafter and successfully sues Wild Thing for retaliatory
discharge. With respect to the employment-at-will doctrine, this is
a. an example of the doctrine.
b. an exception based on contract theory.
c. an exception based on public policy.
d. an exception based on tort theory.
Answer:
Clark hires Dimitri to act as his agent to purchase Expo Sports Arena, Inc. Clark tells
Dimitri to reveal that he is buying the firm and its assets on behalf of a third party and
to tell the seller who that third party is. Clark is
a. a disclosed principal.
b. an apparent principal.
c. an undisclosed principal.
d. a partially disclosed principal.
Answer:
Arnie is a member of Bowling & Billiards, LLC, a limited liability company. Arnie can
participate in the firm’s management
a. only to the extent that he assumes liability for the firm’s debts.
b. only to the extent of his investment in the firm.
c. to any extent.
d. to no extent.
Answer:
GreatGro, Inc., makes genetically modified seeds with properties that are idenÂtical to
Hearty Harvest Corporation’s patented seeds, without Hearty Harvest’s permission. This
is most likely
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. not infringement.
Answer:
Posing as Platinum Bank, Quentin e-mails Rachel, asking her to update her personal
banking information through a link in the e-mail. She clicks on the link and types in the
data, which Quentin promptly sells to Spence. This is
a. hacking.
b. identity theft.
c. cyberterrorism.
d. bribery.
Answer:
Stan, an air-conditioning and heating technician, files a suit against Temp-Set
Corporation, alleging that its thermostats are unreasonably dangerous due to the
possibility of electrical shock. Temp-Set’s best defense is most likely
a. assumption of risk.
b. knowledgeable user.
c. commonly known danger.
d. none of the choices.
Answer:
A decision by the federal Environmental Protection Agency (EPA) on the amount of
carbon that can be emitted from a car’s exhaust system conflicts with a California state
law. In this situation, under the supremacy clause,
a. both the decision and the law are invalid.
b. both the decision and the law apply concurrently.
c. California’s law takes precedence.
d. the EPA’s decision takes precedence.
Answer:
A company seeking to hire a noncitizen worker may do so if the worker is
‘self-authorized.’
Answer:
For five years, clothing makers and marketers Style-One Corporation and Trend Now,
Inc., both use the phrase ‘Looks Great’ on their labels. Style-One files a suit against
Trend Now, claiming trademark infringement. Trend Now argues that the phrase
generally is not associated with any particuÂlar firm and that other companies use the
same phrase on their labels and in their ads. In whose favor is the court most likely to
rule, and why?
Answer:
The Uniform Commercial Code has been adopted in all fifty states.
Answer:
Employers can avoid liability for employment discrimination on the basis of
after-acquired evidence of an employee’s misconduct.
Answer:
Using another’s trademark in a meta tag is not permissible, even if the use is reasonably
necessary.
Answer:
Cybersquatting occurs when key words are inserted into the hyper text markup
language code to tell Internet browsers specific information about a Web page.
Answer:
A party who in good faith performs substantially all of the terms of a contract can
enforce the contract against the other party.
Answer:
The government does not need a subpoena or a warrant to inspect an employer’s file of
I-9 forms.
Answer: