Generally, when a subsidiary is sued, the parent company is also liable.
Regulatory takings normally do not require government compensation.
The risk-utility test holds that a product is negligently designed if the benefits of a
product’s design are outweighed by the risks that accompany that design.
Private parties commonly use the antitrust laws to sue for treble damages when they
believe a merger has harmed them unlawfully.
Slander is the spoken form of the tort of defamation.
Tying arrangements are a form of nonprice vertical restraint.
Federal legislation cannot conflict with the U.S. Constitution.
If the employee selection rate for any protected class of individuals is less than 80
percent of the selection rate for the group with the highest selection rate, then the
employment practice in question will be presumed to create a disparate impact. This is
referred to as the _____.
A. 10/90 gap
B. four-fifths rule
C. 80/20 principle
D. ninety-ninety rule
The Environmental Protection Agency was created in 1970 to mount a coordinated
attack on environmental problems. Its duties primarily include:
A. conducting research on pollution problems.
B. establishing a strong federal presence in the promotion of a clean and healthy
environment.
C. imposing liability on any intentional invasion of an individual’s right to the exclusive
use of his or her own property.
D. organizing international conferences to discuss environmental concerns.
Which of the following occurs through an exclusive dealing contract?
A. The sellers in a market compete to drive prices down and quality up.
B. A seller colludes with another seller to jointly restrict their output.
C. The sellers in a market agree to divide the market into exclusive territories to reduce
competition.
D. A buyer commits to deal only with a specific seller.
If a mentally incompetent person is unable to understand the purpose and effect of a
contract but has not been legally adjudged insane, _____. A. the competent party has an
absolute right to rescind the contract
B. the contract would not be voidable at the option of the impaired party
C. the contract would not be void at the option of the impaired party
D. the impaired party would have to pay the reasonable value of any necessaries
received under the contract
The _____ protects citizens from government restraints on the content of speech,
although reasonable restraints on the context (time, place, and manner) of that speech
are sometimes constitutionally permissible.
A. Sixth Amendment
B. Eighth Amendment
C. First Amendment
D. Fourth Amendment
Which of the following is an argument put forth by the liberal wing of the Supreme
Court in the Citizens United case?
A. Treating corporations as people in case of political contributions would allow these
organizations to further corrupt the political processes.
B. Limiting corporate campaign contributions would violate corporate free speech
rights.
C. The growing influence of the business community would saturate and dominate all
corners of American life.
D. By outsourcing of good, high-paid factory jobs from the United States, corporations
are fundamentally challenging and changing life in the home country.
Which of the following is true of Islamic countries?
A. Their cultures are more homogeneous than that of Western countries.
B. There is a clear separation of religion and state in these countries.
C. Religion is the basis for many legal, as well as ethical, standards in these countries.
D. Trade and commerce with Western countries is usually prohibited in these countries.
Section 8(c) of the _____ is designed to ensure employers’ and labor organizations’
traditional First Amendment rights as long as they do not overstep certain bounds.
A. Sherman Antitrust Act
B. Norris-LaGuardia Act
C. Taft-Hartley Act
D. Wagner Act
A(n) _____ is one in which a seller agrees to supply all of a buyer’s needs, or a buyer
agrees to purchase all of a seller’s output, or both.
A. exclusive dealing contract
B. requirements contract
C. tying arrangement
D. free rider
In the context of federalism, which of the following views is held by conservative
Americans?
A. They hold that federal government has often exercised authority beyond its express
constitutional powers.
B. They trust big government and favor bringing power closer to the people.
C. They favor a strong central government and believe that constitutional divide over
federalism is a challenge that exists even today.
D. They favor a more unified national approach to issues such as regulation of business,
educational policy, medical care, and civil rights.
Which of the following statements is true of the digital divide at the global level?
A. Only 5.6 percent of Africa’s citizens have access to the Internet, compared with 78.6
percent in North America.
B. Only 24 percent of the population in sub-Saharan Africa has access to the Internet,
compared with 80.6 percent in North America.
C. Although nearly 90 percent of households are located where broadband is available,
60 percent of adults are not connected to the Internet.
D. The number of Internet connections is growing by less than 9 percent annually, but
just over one-third of the population is connected.
Which of the following provides the foundation for a moral life built on religion?
A. Intuition
B. Reason
C. Faith
D. Secular knowledge
In the context of employment discrimination, a prima facie case of retaliation requires
a(n):
A. affirmative action plan initiated by the employer.
B. casual connection between the protected activity and the adverse employment action.
C. employment practice that does not violate Title VII of the Civil Rights Act.
D. employment action benefiting the plaintiff.
Which of the following best describes the historical view of business responsibilities till
the first half of the twentieth century?
A. Businesses had to assume the affirmative duty of the resolution of social problems.
B. Businesses were expected to give close accounting attention to their social and
environmental performance as well as financial performance.
C. The duty of businesses was the production and distribution of the best products and
services at the lowest possible prices.
D. The primary duty of businesses was operation with a focus on environmentally
sensitive practices to husband scarce resources.
A _____ is a monopoly on a product, process, or device where the item or process
claimed is an innovation, unique and inventive, and useful.
A. patent
B. trademark
C. copyright
D. trade secret
The _____ provides that the right of the people to be secure in their persons, houses,
papers, and effects, against unreasonable searches and seizures, shall not be violated,
and no Warrants shall issue, but upon probable cause.
A. Fourth Amendment
B. Fifth Amendment
C. First Amendment
D. Second Amendment
Explain the term accord and satisfaction and explain how it relates to the discharge of a
contract. What are the two ways in which contracts can be discharged by lawful
excuses?
Describe the role of Equal Employment Opportunity Commission (EEOC) in
employment discrimination enforcement.
What are the primary objectives of the Occupational Safety and Health Act?
Briefly discuss the Civil Rights Act of 1866.
Define and describe common stock, preferred stock, and debt.