Business ethics reflect elements of both formalism and consequentialism, but tend to
focus more heavily on the former.
Answer:
The fact that the losing party in a lawsuit usually also has to pay court costs is an added
incentive to settlement without litigation.
Answer:
The parol evidence rule applies to oral modifications made after the contracting parties
have made the written contract.
Answer:
Casper offers to sell a car to Amanda for $1,000, to which Amanda agrees. Both the
parties sign a contract with all the details of the transaction that will be executed in 1
day. This contract is an example of a firm offer.
Answer:
Contracting parties have the ability to allocate known risks in a contract.
Answer:
Common carriers, transportation companies licensed to serve the public, are strictly
liable for misconduct of the shipper, such as improper packaging.
Answer:
The Protestant ethic was a boon to capitalism, but the religious basis of the Protestant
ethic was eroded by rising wealth and the encouragement of mass consumption.
Answer:
In many states, if foreclosure and auction does not produce enough money to satisfy the
debt owed by the mortgagor, the creditor-mortgagee can still sue the debtor for the
balance owed, called a remainder.
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Intangible personal property includes intellectual property.
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The trial judge renders decisions that deal directly with people in conflict.
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Assumption of the risk can arise from an express agreement.
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Rescission, a remedy awarded by courts to a nonbreaching party of a contract, cannot
be coupled with any other form of remedy.
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Section 2 of the Sherman Act does not regulate attempts to monopolize any part of
interstate or foreign commerce.
Answer:
In a bankruptcy proceeding, the debts are either liquidated under Chapter 7 or adjusted
under Chapter 13 of the bankruptcy law.
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Freedom of speech protects corporations as well as individuals.
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Property is infinite, and its boundaries are free from any ambiguity.
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Only individuals can sue for defamation, not corporations.
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According to the EEOC, agreements that mandate binding arbitration of discrimination
claims as a condition of employment are in agreement with the fundamental principles
of antidiscrimination laws.
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A libel is used to recover damages as a result of transitory statements.
Answer:
The presence of standing to sue is determined by the nature and source of a plaintiff’s
allegations.
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The Federal Trade Commission has broad, sweeping powers and a mandate to
determine what methods, acts, or practices in commerce constitute unfair competition.
Answer:
It is beyond the rights or authority of shareholders to file global warming-related
resolutions directing board members or officers to analyze and/or report on
environmental issues.
Answer:
In a modern corporation, the very nature of corporate structure gives managers the
opportunity to abuse and misappropriate corporate resources owned ultimately by
shareholders.
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Resale price maintenance is legal only if there is no coercion or pressure other than the
announced policy and its implementation.
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Arbitration enables the disputing parties to avoid the formalities of a courtroom.
Answer:
The Federal Trade Commission is charged with eliminating competition to protect
consumers.
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Enforcement of the Clean Water Act revolves around its permit discharge system.
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Banks that hold a mortgage on land that turns out to have a toxic waste site subject to
the Superfund rules are liable for the cleanup.
Answer:
Final judgments or decrees rendered by the highest court of a state are reviewed by the
federal district courts.
Answer:
Long-arm statutes do not authorize out-of-state service of process in all cases.
Answer:
A person cannot be charged with conspiracy if the individual becomes involved after
the conspiracy is stopped and the criminal conduct does not occur.
Answer:
The International Court of Justice has been a major force in settling disputes since it
began functioning in 194
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The party who receives the adverse judgment in a trial may file a motion for a new trial.
Answer:
Clear identification of employer expectations and policies helps provide a defense
against employee lawsuits if subsequent discipline or discharge of the employee
becomes necessary.
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The meaning of a contract is a question of law, which means that a judge makes the
final determination.
Answer:
Raising prices in cafeteria vending machines is considered a compulsory bargaining
issue.
Answer:
The Genetic Information Nondiscrimination Act establishes a federal baseline for
protection against employment discrimination based on genetic information.
Answer:
In an international sales transaction, an issuing bank’s commitment to pay is given to
the seller directly in the case of a letter of credit.
Answer:
A dissolution essentially terminates the business of a partnership.
Answer:
Which of the following statements holds true for the manifest system of hazardous
waste disposal?
A. It assesses penalties for failure to comply with the provisions of the Resource
Conservation and Recovery Act (RCRA).
B. It refers to the software packages used for aggregating data for optimization of
operations for waste collection.
C. It prescribes various record-keeping requirements that manifest waste disposal.
D. It obligates the generator to determine whether its wastes qualify as hazardous under
the manifest system.
E. It requires the generator to prepare a manifest document that designates a licensed
facility for disposal purposes.
Answer:
Which of the following statements is true of the Commission of the European Union?
A. It coordinates the policies of the member states in a variety of areas from economics
to foreign affairs.
B. It is composed of elected representatives from the five most powerful member states.
C. It plays an active role in drafting legislation that has an impact on the daily lives of
its citizens.
D. It is the only institution of the EU that has control over the annual budget of the EU.
E. It consists of individuals who represent the will and interests of the entire European
Union.
Answer:
To violate another’s trade secret rights, one must ______.
A. misappropriate the information
B. use another’s information without permission
C. engage in unauthorized use of another’s information
D. steal another’s intellectual property
E. engage in buying and selling of trade secrets
Answer:
The crucial issue with the continuity factor of a business’s organizational form is
A. its management style.
B. the average age of the employees working for the business.
C. the method by which the business can be dissolved.
D. the method adopted by the business to reach out to its customers.
E. the control exercised by its managers.
Answer:
______, a tort theory, is used to recover damages as a result of printed defamation of
character.
A. Slander
B. Embezzlement
C. Libel
D. Battery
E. Larceny
Answer:
One party offers to buy the other’s goods but only if the second party buys other goods
from the first party. This is known as a(n) ______.
A. franchise arrangement
B. exclusive dealing arrangement
C. reciprocal dealing arrangement
D. tying arrangement
E. requirements arrangement
Answer:
Ethical formalists maintain that __________.
A. harm to an individual is acceptable as long as it serves the greater good
B. values are situational and change based on circumstance
C. individuals have rights that should not be infringed even at the expense of society
D. the good of the many always supersedes the good of the few
E. the focus should be more on the consequence than on the act of an individual
Answer:
Which of the following statements is true of the Fifth Amendment?
A. It excludes those individuals who are under compulsory self-incrimination.
B. It protects the accused from being compelled to produce real or physical evidence.
C. It allows the use of written evidence in self-incrimination cases.
D. It is extremely effective against a sole proprietorship business.
E. It is beyond its scope to protect an accused from being forced to testify against
himself or herself.
Answer:
Which of the following statements is true of fraud?
A. Fraud is only applicable for the intentional misrepresentation of property.
B. The victim of a fraud need not be injured in any way for it to be a tort as long as the
victim can prove that the defendant committed the fraud.
C. Fraud can be proved by giving evidence that one was harmed by another failing to
disclose a material hidden fact.
D. Fraud is only applicable in cases involving financial transactions in business
settings.
E. Fraud is always a tort and not a crime.
Answer:
Which of the following is an example of a bailment done for the sole benefit of the
bailee?
A. borrowing a laptop
B. renting a car
C. babysitting for free
D. finding lost or misplaced property
E. using a car without permission
Answer:
______ occurs when an employee appropriates funds of his employer to his own use.
A. Burglary
B. Robbery
C. Racketeering
D. Conspiracy
E. Embezzlement
Answer:
In the context of tort liability, which of the following rules indicates that a principal
escapes liability when the agent’s actions are outside the scope of employment?
A. Respondeat superior
B. Frolic and detour
C. Nolo contendere
D. Novation
E. Promissory estoppel
Answer:
Which of the following terms refers to force or threat of force?
A. rescission
B. misrepresentation
C. undue influence
D. duress
E. revocation
Answer:
Mike gives Maria a life estate in one of the homes he owns. Maria lives there for a
while and then accepts a job in another state, so she gives the property to her sister
Jackie as it is permissible. Jackie owns the property until
A. Mike revokes the life estate.
B. Maria dies.
C. Mike dies.
D. the life estate is taken over by the government.
E. Maria returns to the life estate.
Answer:
Which of the following is true of a trademark?
A. A trademark is a form of legal and civil property.
B. One can have rights in a trademark only if he or she has registered it.
C. If a trademark is unregistered, it is open for public use.
D. A trademark 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.
Answer:
Which of the following federal agencies regulates the availability and cost of money
and credit?
A. the Federal Communications Commission (FCC)
B. the Federal Trade Commission (FTC)
C. the Federal Reserve Board (FRB)
D. the Equal Employment Opportunity Commission (EEOC)
E. the Federal Energy Regulatory Commission (FERC)
Answer:
What are the intentions of the final regulations implementing Title II of the Genetic
Information Nondiscrimination Act (GINA) published by the Equal Employment
Opportunity Commission?
Answer:
Punitive damages are frequently awarded in _____.
A. ordinary negligence cases
B. intentional tort cases
C. strict liability cases
D. equal protection cases
E. overbreadth doctrine cases
Answer:
In a broad general sense, _____ includes the legal property relations that large
businesses have with each other, with their customers, and with society.
A. corporate governance
B. specific performance
C. stare decisis
D. tort law
E. strict liability
Answer:
Ratio decidendi refers to _____.
A. the underlying principle of a case
B. stare decisis
C. the narrow tailoring of judgment
D. justifying the amount of a verdict in relation to the injury
E. judicial activism
Answer:
The members of the U.S. Supreme Court are called _____.
A. justices
B. magistrates
C. judges
D. advocates
E. jurors
Answer:
_____ arise when parties already in dispute decide that arbitration is better than
litigation.
A. Postdispute mandatory arbitrations
B. Involuntary arbitrations
C. Injunctions
D. Predispute contract-based clauses
E. Postdispute arbitration agreements
Answer:
Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does
not mention the prices. The server takes their order and both Fred and Betty enjoy the
meal immensely. When the bill arrives, Fred refuses to pay because the menu had no
prices and because he and the server never engaged in language indicating an offer and
acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the
server merely asked, “What may I get you tonight?” In the context of this scenario,
which of the following statements is true?
A. Fred must pay based on an implied-in-fact contract theory.
B. Fred must pay based on a promissory estoppel theory.
C. Fred must pay based on an express contract theory.
D. Fred is correct because no contract was formed.
E. Fred is correct because he and the server entered into an agreement without a written
document.
Answer:
Which of the following usually requires a plaintiff to prove only that a defendant has
injured something proper to the plaintiff?
A. Torts of negligence
B. Intentional torts
C. Strict liability torts
D. Statutory torts
E. Torts of nuisance
Answer:
In determining whether a particular use is a fair one, a court will consider ______.
A. the distinctiveness of the copyright
B. the amount of profit expected by the user claiming the fair use
C. the amount and substantiality of the portion used in relation to the copyrighted work
as a whole
D. the royalties awarded to the inventor before using the copyright since copyright laws
protect inventors
E. the degree of damage caused
Answer:
Which of the following statements is true of an environmental impact statement (EIS)?
A. The National Environmental Policy Act requires federal agencies to follow the
conclusions of the EIS.
B. An EIS can be in any language as long as it is clear and to the point.
C. An EIS is to be included in every recommendation or report on proposals for
legislation and other major federal actions significantly affecting the quality of the
human environment.
D. An EIS should include technical jargon to clearly explain all the points mentioned in
the statement.
E. The EIS is usually a short list of points that hints at the pros of the economic profits
that are outcomes of transactions concerning the human environment.
Answer:
Snow Crystals Inc., a leading construction company, has constructed a skate park on
government land after signing a leasing agreement with the state government. A few
years later, the state authority sanctioned the Nightingale Bridge Company to build a
bridge that would use the land where the skate park is already constructed. The
proprietors of Snow Crystals claim that the state authority has violated the leasing
agreement. Which of the following is most likely to be applied in this case between
Snow Crystals Inc. and the state government?
A. the preemption doctrine
B. the state clause
C. the contract clause
D. the overbreadth doctrine
E. the supremacy clause
Answer:
The ______ power of administrative agencies is primarily to decide on controversies.
A. executive
B. judicial
C. legislative
D. arbitrary
E. preliminary
Answer:
For a court to hear a plaintiff’s case, the plaintiff must show the court that it has _____.
A. subject matter jurisdiction
B. res ispa loquitur
C. standing to sue
D. garnishment
E. jury instructions
Answer:
Under the Superfund law, a purchaser of land may escape the liability to clean up
hazardous wastes by
A. fixing responsibility on the previous owner of the land.
B. suing the land seller for the hazardous wastes left by the seller.
C. informing the government of any hazardous wastes in the land.
D. pleading ignorance to the knowledge of the act.
E. proving the use of due diligence in checking the land for toxic hazards.
Answer:
In appellate procedures, each party files a(n) _____ that contains a short description of a
case, a factual summary, legal points and authorities, and arguments for reversing or
affirming a lower court decision.
A. affidavit
B. caucus
C. brief
D. deposition
E. motion
Answer:
______ is the wrongful exercise of dominion and control over the personal resources
that belong to another.
A. Libel
B. Garnishment
C. Conversion
D. Rescission
E. Injunction
Answer:
What is the purpose of the Sherman Act and what does it cover?
Answer:
Discuss the importance of arbitration in labor relations disputes.
Answer:
When might a court be required to use extradition, and what is the process?
Answer:
What is the difference between Section 18 of the 1934 Act and Sections 11 and 12 of
the 1933 Act with regard to liability in case of fraud?
Answer:
Briefly discuss the approach to negotiation described in the book Getting to Yes by
Roger Fisher, William Ury, and Bruce Patton, which discusses the seven elements of
negotiation. What is the focus of the book, and how do the authors hope to change the
focus of negotiation through it?
Answer:
When does a party breach a contract?
Answer:
When a threatened or actual strike or lockout affecting an entire industry imperils
national health or safety, what procedures does the Taft-Hartley Act mandate?
Answer:
What are some of the reasonable accommodations that employers can make for
disabled employees?
Answer:
What is a cease and desist order?
Answer:
Briefly describe civil law and criminal law.
Answer:
What roles do regulations serve in promoting ethical decisions in the business world?
Do you think there should be more or fewer regulations on business?
Answer:
Peter is an 84-year-old with a heart condition. He has no family and has minimal health
insurance. He is on a fixed income and barely has enough money to survive. His doctor
tells him that he needs to take a particular medicine for three months or his condition
will severely worsen. The medicine will cost $450, and only $150 of the cost is covered
by insurance. Peter goes to the bank and hands the teller a note saying, “Give me $300,
or I will detonate a bomb.” When Peter is later apprehended, he tells the police that he
stole the money to buy needed medicine. Understanding that bank robbery is a crime, is
there an ethical theory that can serve to justify Peter’s actions?
Answer:
What does it mean for a trademark to become generic? Give some examples of
trademarks that have become generic.
Answer:
Who is responsible for control of overall radiation pollution?
Answer:
Briefly describe stare decisis.
Answer:
What are the chief legal tools of the Bureau of Consumer Protection and how are they
enforced?
Answer:
Who is liable under the Section 11 civil liability provision dealing with registration
statements?
Answer:
Explain the doctrine of promissory estoppel.
Answer: