The SEC’s right to conduct investigations is based on:
A. their quasi-executive power.
B. their quasi-legislative power.
C. their quasi-judicial power.
D. an executive order.
E. an injunction.
With regard to employer provided health and disability plans:
A. an employer that provides childbirth benefits to married women may deny the same
to single mothers if the employer finds single motherhood morally objectionable.
B. if a female employee undergoes an abortion, the abortion may be excluded from
coverage but the employee is still entitled to other benefits such as sick leave.
C. an employer’s plan that covers childbirth for female employees excludes coverage
for wives of male employees.
D. an employer is not required to provide abortion coverage even if the employee’s life
is endangered.
E. an employer can specify how long a leave of absence must be taken after childbirth.
Proving that a patent is invalid because it was in commercial use at least one year
before the patent was taken out requires that the defendant prove their case:
A. with a preponderance of the evidence.
B. beyond a reasonable doubt.
C. beyond a preponderance of the evidence.
D. by clear and convincing evidence.
E. with some evidence.
Most lawsuits begin at the _____ level.
A. appellate court
B. trial court
C. Supreme Court
D. magistrate’s court
E. state supreme court
Which of the following is true of trademarks?
A. Trademarks are a form of legal and civil property.
B. One can have rights in a trademark only if he/she has registered it.
C. If a trademark is unregistered, it is open for public use.
D. It is firmly associated with an inventive act, and excludes others from making, using
or selling the invention.
E. Owners can sue for infringement, and claim rights on a trademark even if they have
not registered it.
Which of the following is true about an advisory council?
A. It is more important than the other agency members because of visibility and the
power to appoint staff.
B. It coordinates the activities of the agency with others involved in the regulatory
process.
C. It makes the decision to file suit or pursue other remedies.
D. It supervises usual administrative functions such as accounting, budgeting, and
personnel.
E. It is not appointed by the agency, even though it is interested in the agency’s mission.
A party dissatisfied with the mandatory arbitration award has the right to:
A. appeal the award directly to the state supreme court.
B. appeal the award directly to the U.S. Supreme Court.
C. reject the award and seek a review in the appropriate trial court.
D. sue the arbitrator.
E. ignore the disputed award.
A(n) _____ contract is an agreement when one party has the right to withdraw from the
promise made without incurring any legal liability.
A. executory
B. voidable
C. void
D. implied-in-fact
E. reciprocal
According to Rawls, it is important to forget our own age, gender, race, intelligence,
strength, wealth, or social status when determining just actions. What is the purpose of
this?
A. This permits us to act as pure American citizens.
B. It keeps us from being self-interested in the ethical values we consider.
C. This makes each individual like a blank sheet of paper on which a contract may be
written.
D. It makes it easier to consider the usefulness of our actions.
E. This promotes the assumption that what one personally needs or wants is morally
correct.
Which of the following constitutes the responsibilities of the employer in case an
employee is on family medical leave?
A. The employer is entitled to review the actual medical records of the employee.
B. The employer cannot request a medical certification that a qualifying event has
occurred in the employee’s life.
C. The employee is not entitled to be awarded the sales that the employee would have
made if not on family medical leave.
D. The employer may not keep the employee’s job available when the employee returns
to work.
E. If the employer gives a bonus for perfect attendance, the employee on family
medical leave is not entitled to such a bonus.
Double jeopardy means:
A. committing the same crime twice.
B. the prohibition of trials of the same crime in state and federal courts.
C. losing the trial and the appeal in the same case.
D. being arrested for gambling.
E. being tried to a verdict for the same crime twice.
Grimmy Fast Food Ltd., located in New York, grants Truffle Eateries, a chain of
restaurants in Paris, permission to produce and sell Grimmy’s famous pizzas. Truffle
will launch Grimmy’s in Paris and sell the products. This is an example of which of the
following?
A. Foreign subsidiary
B. Direct foreign investment
C. Sovereign immunity
D. Franchise
E. International trade
Which of the following statements are true of tort law?
A. It involves the recognition of exclusive right in both tangible (physically touchable)
and intangible resources such as copyrights, patents, trademarks etc.
B. It covers the rules of how owners transfer resources by exchanging them.
C. It specifies various offenses against the proper order of the state.
D. It covers the legal principles that apply to government agencies, bureaus, boards, or
commissions.
E. It establishes rules for compensation when an owner’s legal boundaries are
wrongfully crossed by another.
A _____ is any form of knowledge or information that has economic value from not
being generally known to, or readily ascertained by proper means by others and has
been the subject of reasonable efforts by the owner to maintain secrecy.
A. copyright
B. trademark
C. patent
D. company policy
E. trade secret
In which of the following is there no expectation of privacy, while there is an
irrevocable consent to a warrantless search?
A. A person living in his apartment.
B. A building suspected to have violated a building code.
C. A lawyer’s office.
D. Presenting oneself at an airport checkpoint.
E. A celebrity having a party on her premises.
Which of the following is true about liability of partners in a general partnership?
A. Partners have limited liability for the organization’s debts.
B. Partners personal assets, which are not associated with the partnership, may not be
claimed by the creditors.
C. From a creditor’s perspective, the liability of each partner extends only to a pro rata
share.
D. Any partner who has to pay beyond his pro rata share will have to make use of his
future buyout interest.
E. A partner having unlimited liability will be jointly and severally liable for the
partnership’s obligations.
Ruth is visiting her granddaughter Marcy and decides to give Marcy her very expensive
cameo brooch. The brooch, an heirloom, has been in the family for over 100 years and
is the only item in a safe in Ruth’s home. Ruth offers the brooch to Marcy who accepts.
Ruth then gives Marcy the only key to the safe. According to the information given in
this case, which of the following statements is true regarding the gift?
A. This is not a valid gift because there has been no delivery.
B. This is a valid gift because there has been an actual delivery.
C. This is a testamentary gift and Marcy can claim the gift only after Ruth’s death.
D. This is a valid gift because there has been a constructive delivery.
E. This is not a valid gift because Ruth must provide a document for chain of custody.
Which of the following statements is true concerning defamation?
A. Written defamation is called slander.
B. If defamation is oral, it is called libel.
C. Corporations are not allowed to sue for defamation.
D. Defamation suits can be brought by employees against current or former employers.
E. News media can be sued for defamation even if the reported statements are true.
The attorney-client privilege extends to:
A. conversations the client has with his or her coworkers.
B. emails written by the client to a family member.
C. communications made to the lawyer’s employees.
D. letters written by the judge to the client.
E. the conversations between a client and the opposing party.
Which of the following states that parties to a written contract may not introduce oral
evidence to change written terms?
A. The statute of frauds
B. Concurrent conditions
C. The parol evidence rule
D. Conditions subsequent
E. Conditions precedent
Any time an employee is liable for tortious acts in the scope of employment, the
employer is also liable. This is because of the tort doctrine of _____.
A. negotiation
B. juriscience
C. respondeat superior
D. frolic and detour
E. liability
The crucial issue with the continuity factor of a business’s organizational form is:
A. management style.
B. profit distribution.
C. the method by which the business can be dissolved.
D. the method of customer service observed.
E. the control exercised by managers.
In 1991, Congress amended the Civil Rights Act to allow the recovery of compensatory
and punitive damages per person to be up to:
A. $100,000.
B. $250,000.
C. $300,000.
D. $1 million.
E. $400,000.
Under the 1934 Act, a business organization found guilty of filing false or misleading
documents with the SEC may be fined up to:
A. $81,000,000.
B. $55,000,000.
C. $25,000,000.
D. $50,000,000.
E. $75,000,000.
Written defamation, or defamation published over radio or television, is termed _____.
A. hearsay
B. libel
C. battery
D. slander
E. assault
Minimum rationality tests are applied to cases involving classifications based on _____.
A. race
B. national origin
C. legitimacy
D. marriage
E. gender
The Wassanaar Arrangement was entered into by 33 countries in order to control:
A. monetary value fluctuations encountered by nations when conducting international
trade.
B. the spread of military and dual use technology to unstable nations.
C. the quality control of food and perishables between nations with different individual
quality control regulations.
D. price gouging by dominant countries when dealing with smaller or weaker countries.
E. the impact of corruption on international trade, investments, and business policies.
_____ is usually defined as the desire to bring about certain results.
A. Tort
B. Crime
C. Intent
D. Negligence
E. Duty
A(n) _____ means that an adjoining landowner cannot do anything that would cause
your land to cave in or collapse, such as digging a ditch that would cause the land on
your side to collapse.
A. easement by prescription
B. negative easement
C. mutual benefit bailment
D. eminent domain
E. accession
Which of the following is a basic form of business organization?
A. LLC
B. Limited partnership
C. LLP
D. Sole proprietorship
E. S corporation
