The Fair Credit Reporting Act regulates credit reports on both consumers and
businesses.
Answer:
A defrauding seller usually benefits from an increase in the value of the securities.
Answer:
Whether it is stated in the contract or not, when a breach of contract occurs, the injured
party will usually recover his or her attorney fees as part of compensatory damages.
Answer:
Equal Employment Opportunity Commission guidelines on discrimination consider
color to be a bona fide occupational qualification.
Answer:
When a contract involves unique subject matter, courts are most likely to award specific
performance because there is no market equivalent.
Answer:
Touching can constitute part of a battery only if it causes physical injury.
Answer:
Discovery procedures lessen the burden on the judicial system.
Answer:
To succeed in international operations, businesses must be sensitive to differences in
moral values.
Answer:
Refusing to hire people because of a poor credit rating, when minorities are
disproportionately affected, would be an example of disparate impact on race.
Answer:
The Supreme Court has held that an employer who reports the possible existence of
illegal aliens to the Immigration and Naturalization Service engages in an unfair labor
practice when that report is closely associated with the employees’ approval of a labor
union as their bargaining agent.
Answer:
Some monopolies are lawful.
Answer:
High-income countries use four to five times as much energy (mostly from polluting
fossil fuels like coal and oil) as developing countries.
Answer:
The Uniform Securities Act has been the model for blue sky laws since
Answer:
If one of the joint tenants in a joint tenancy dies, the remaining tenant becomes the sole
owner of the entire resource.
Answer:
In disparagement cases, a plaintiff must establish the falsity of a defendant’s statements.
Answer:
Maximum-price agreements are just as illegal as minimum-price agreements.
Answer:
Under bankruptcy laws, certain creditors receive priority over others in the distribution
of a debtor’s assets.
Answer:
A voidable contract is an agreement when at least one party has the right to withdraw
from the promise made without incurring any legal liability.
Answer:
The parties to an arbitration conducted by the China International Economic and Trade
Arbitration Commission cannot stipulate the location of the arbitration.
Answer:
Unlike the Clean Air Act, the Clean Water Act is administered primarily by the federal
government.
Answer:
An employer may voluntarily recognize that its workers want to have a certain labor
union represent them.
Answer:
Contract law often but not always requires actual injury to the owner’s resources.
Answer:
A statute of limitations determines the maximum amount of money for which a plaintiff
can sue.
Answer:
Federal laws concerning equal employment opportunity specifically prohibit state laws
from imposing additional duties and liabilities.
Answer:
Restitution requires a party to compensate for something that a contracting party is not
willing to return.
Answer:
The Norris-LaGuardia Act limits the jurisdiction of state courts in issuing injunctions in
labor disputes.
Answer:
A union member may sue a local union for failing to enforce the international union’s
constitution and bylaws.
Answer:
In the context of the doctrine of exhaustion of remedies, exhaustion should be required
in those cases involving an area of the agency’s expertise or specialization.
Answer:
In a deposition, a lawyer orally asks questions of the possible witness and an oral
response is given.
Answer:
Criminal prosecutions for corporate wrongdoing are rising due to the increased use of
deferred prosecution agreements.
Answer:
The Bill of Rights was passed because of the concern that too much power was given to
a central government by the Constitution at the expense of the individual citizen.
Answer:
In the context of employment-at-will, employers were able to discharge employees
without cause at any time.
Answer:
It is not unusual for the growth in a business to be reflected in changes in organizational
forms as a part of a life cycle.
Answer:
In agency relationships, the usual legal purpose of an agent is to create a binding
relationship between the principal and third party.
Answer:
______ is a level of performance below what is reasonably acceptable.
A. Substantial performance
B. Material breach
C. Complete substantial breach
D. Partial breach
E. Reasonable breach
Answer:
_____ means either that a case has been finally decided on appeal or that the time for
appeal has expired and a cause of action finally determined by a competent court cannot
be litigated by the parties in a new proceeding by the same court or in any other court.
A. Voir dire
B. Ratio decidendi
C. Obiter dicta
D. Res judicata
E. Nolo contendere
Answer:
______, one of the major institutions of the European Union (EU), decides the nature
and parameters of EU law.
A. The Parliament
B. The Commission
C. The Court of Justice
D. The Council of Intervention
E. The Council of Ministers
Answer:
______ is the unlawful taking of personal property with the intent to deprive the
rightful owner of it permanently.
A. Racketeering
B. Insider trading
C. Larceny
D. Conspiracy
E. Concealment
Answer:
Which of the following statements is true of limited partners?
A. They cannot act as an agent of the partnership.
B. They can control operations of the limited partnership.
C. They cannot vote on the change of the partnership’s name.
D. They can have their surnames used in the partnership’s name.
E. They can act as a guarantor of the partnership’s obligations.
Answer:
In the context of judicial review of mandatory arbitration, de novo review means that
__________.
A. the court appoints an arbitrator to initiate arbitration proceedings
B. the court tries the issues anew as if no arbitration occurred
C. the court recommends that the disputing parties opt for mediation instead of
litigation
D. the court halts a mediation process and begins litigation
E. the court takes into account the arbitrator’s award in the litigation
Answer:
While selecting a name for a partnership, if the name is other than that of the partners,
the partners must give notice as to their actual identity under the state’s ______.
A. fictitious-name certification law
B. annexed-name statute
C. suppositious-name law
D. fictious-name rule
E. assumed-name statute
Answer:
In the context of ethics, the good is most likely to be defined as __________.
A. a sustained way of producing high-quality goods and services
B. the moral goals and objectives people choose to pursue
C. the acquisition of the things necessary for having a good life
D. a formal system of examining one’s moral life
E. a formalized, duty-based approach to achieving one’s targets
Answer:
Which of the following statements is true of the categorical imperative?
A. It allows one to make an exception for one’s own benefit.
B. It propagates that there is hardly any need to act in the way one believes everyone
should act.
C. It holds that one can choose to be unethical if a situation demands it.
D. It requires one to act with good intent to be ethical.
E. It holds that one can hold contradictory opinions and act on them without having to
ensure consistency with what others believe.
Answer:
The ______ that permits price differentials based on differences in the cost of
manufacture, sale, or delivery of commodities is recognized by the Robinson-Patman
amendment.
A. good-faith meeting-of-competition defense
B. mobile defense
C. cost justification defense
D. changing conditions defense
E. position defense
Answer:
_____ law jurisprudence believes that law is simply the commands of the state backed
up by force and punishments.
A. Positive
B. Natural
C. Historical
D. Sociological
E. Tort
Answer:
A(n) ______ is a type of sexual harassment in which co-workers make offensive sexual
comments or propositions, engage in suggestive touching, show nude pictures, or draw
sexual graffiti.
A. quid pro quo
B. hostile work environment
C. conventional work environment
D. extradition
E. disparate impact environment
Answer:
Which of the following is the characteristic of a sole proprietorship?
A. It can be publicly held.
B. It is not taxed as an organization.
C. It is the hardest business organization to create.
D. It is the most expensive business organization to create.
E. It can be created by multiple owners.
Answer:
Which of the following statements is true of polygraph tests?
A. They are legally used by most private employers to screen job applicants.
B. They may be legally used by most private employers to randomly check current
employees.
C. They may be legally used by private companies that sell controlled substances to test
both job applicants and current employees.
D. They are used when senior employees are being transferred to a different department
within a firm.
E. They are generally not used by public employers for screening job applicants.
Answer:
In the context of the continuity of limited liability companies (LLCs), which of the
following statements is true?
A. Membership in LLCs is limited to individuals.
B. In an LLC, a business organization can be an owner.
C. An LLC dissolves when the number of shareholders falls below 100.
D. LLCs cannot be dissolved unless the owner of the LLC dies.
E. In an LLC, only the government can dictate when the company can be dissolved.
Answer:
Which of the following ethical principles focuses on the common good rather than on
individual rights?
A. Formalism
B. Hedonism
C. Utilitarianism
D. Narcissism
E. Libertinism
Answer:
Which of the following statements is true of the Securities Enforcement Remedies Act?
A. An individual found to have violated the securities laws may be prohibited by the
court from serving as an officer or director of a business organization.
B. Civil fines of up to $700,000 per organization and $500,000 per individual may be
imposed and collected by the courts.
C. It changes membership requirements of corporate audit committees.
D. It requires proof of criminal violation for individual and organizational fines to be
imposed.
E. It refrains from imposing liability on a theory of fraud on any person who shall make
or cause to be made any false or misleading statements.
Answer:
The separation of powers between levels of government is known as ______.
A. feudalism
B. federalism
C. imperialism
D. monarchism
E. fascism
Answer:
The ______ requirement means that federally contracting employers must actively
recruit members of minority groups being underused in the workforce.
A. disparate treatment
B. affirmative action
C. reverse discrimination
D. mandatory retaliation
E. business necessity
Answer:
The purpose of the Social Security Act is to provide
A. employment.
B. disability benefits.
C. policy guidance on employment discrimination.
D. protection for employee privacy.
E. provisions for restrictions on child labor.
Answer:
The Age Discrimination in Employment Act recognizes
A. only claims based on negligence.
B. only claims based on retaliation.
C. both disparate impact and disparate treatment discrimination.
D. loss in physical strength as a legal reason for discriminating against older persons.
E. employers’ right to use the comparable worth theory to discriminate on the basis of
age.
Answer:
Trusts are a legal arrangement in which a fiduciary
A. forfeits his or her title to property.
B. benefits from the profits of a company.
C. acts as a bailor to another.
D. provides financial support to another.
E. holds legal title to property for benefit of another.
Answer:
Libel cases compensate individuals for harm inflicted by ______.
A. physical assault
B. battery
C. printed defamatory falsehoods
D. trespassing on private poverty
E. forgery
Answer:
Which of the following statements is true about the sanctions of the Sherman Act?
A. Violations may be subject to criminal fines or imprisonment, but not both.
B. Injured parties may collect a maximum of double damages.
C. Violations of the Sherman Act may be enjoined by the courts.
D. Its sanctions are only civil punishments and not criminal punishments.
E. Crimes under the Sherman Act are misdemeanors.
Answer:
When a party intentionally relinquishes a right to enforce a contract, it is called a(n)
______.
A. agreement
B. waiver
C. breach
D. disclaimer
E. release
Answer:
The Environmental Protection Agency (EPA) regulates indoor air pollution under the
Clean Air Act.
Answer:
Eli, a resident of New York, wants to sue Tony, a resident of Texas, for trespassing
against Eli’s property in New York. To obtain personal jurisdiction over Tony under a
long-arm statute, the New York court must find that __________.
A. Tony has committed some kind of tort in Texas in addition to the tort in New York
B. Tony owns property in Texas that he had bought five years ago
C. the trespassing occurred in New York while Eli was there
D. Tony committed the tort in New York
E. Eli committed a tort in Texas or has property in Texas
Answer:
With respect to the sale of goods, the Convention on the International Sale of Goods
(CISG) states that
A. if the parties to a contract are located in countries that have adopted the CISG, then
parties are not subject to local laws.
B. all contracts for the sale of goods must be in the oral form.
C. contracts for the sale of goods need not be in writing.
D. the parties to a contract should sign the contract in the presence of attorneys.
E. only contracts concerning sale of goods above $500 must be in writing.
Answer:
A lawyer’s first duty is __________.
A. to protect his or her reputation
B. to make money.
C. to defeat the opposing lawyer
D. to apply the law to the facts of a case
E. to the administration of justice
Answer:
According to the Uniform Commercial Code, if a contract involving a buyer and a
seller makes no statement about delivery, the presumption is
A. the seller will have to personally deliver the goods to the buyer.
B. the seller will have to ship the goods, assuming the risks of damages that take place
in transit.
C. the buyer and the seller will have to enter into another contract stating the details of
the delivery of the goods.
D. the buyer will have to make arrangements to pick up the goods at the location the
seller designates.
E. the contract will be considered void by law, since it contains indefinite, unclear
terms.
Answer:
Anderson Inc. has an oil refinery spread over an area of 1,500 acres in Texas. The
refinery produces over 200,000 barrels of oil per day. The refinery is located next to a
residential neighborhood with an approximate population of 1,000 people. It releases
gases of over three thousand pounds of benzene, five thousand pounds of sulfur
dioxide, and seven thousand tons of carbon monoxide. It violates the standards
established by the federal authorities. Which act does Anderson violate? Explain.
Answer:
What protections are afforded to employees under the Age Discrimination in
Employment Act?
Answer:
ACE Inc. consolidates and forwards cargoes for sea shipment. KAS Inc., a
manufacturer of shipment containers, is a supplier for ACE. The employees at KAS Inc.
are members of the Shippers Union. The union has been successful in getting KAS to
stop handling freight for ACE. What is this kind of activity by the union termed as? Is it
legal?
Answer:
Briefly explain the concept of corrective advertising.
Answer:
Briefly explain the features of commercial speech.
Answer:
What are the six unfair labor practices by unions as established by the Taft-Hartley Act?
Answer:
Which approach is used by courts in deciding cases using the equal protection clause
involving classifications directed at fundamental rights?
Answer:
Briefly explain the equal protection clause.
Answer:
Briefly describe what happens when the U.S. Supreme Court reviews petitions for a
writ of certiorari.
Answer:
Provide an example that explains the application of the parol evidence rule. What are
UCC gap-filling provisions? Give an example and explain how and why they are
applied.
Answer:
Ian Smith, a businessman, filed for bankruptcy. With an intention to start over, he did
not reveal his estate in Fleetwood in the bankruptcy proceedings. However, the estate
was discovered by the mortgage firms and was listed to be sold to reduce Ian’s debts.
Discuss if Ian can be charged for felony in this case.
Answer:
What are the key provisions of the Wagner Act?
Answer:
What led to the enactment of the Sherman Act in 1890?
Answer:
How might corporate managers promote a culture of open communication within a
corporation?
Answer:
How has the role of government changed the ethical environment of businesses?
Answer:
Discuss distinctiveness as a function of a trademark.
Answer:
Briefly explain the tort of false imprisonment.
Answer:
Briefly explain the two types of product defects that give rise to strict products liability.
Answer: