Archives: Quiz

In all cases, an agency agreement must be written in order to be enforceable. a. True b. False Answer: In CASE 5.2EBC I, Inc. v. Goldman, Sachs & Co., (2005) the plaintiffs claimed that Goldman Sachs breached a fiduciary duty […]

Which of the following refers to private plaintiffs bringing actions from persons submitting false claims for government funds? a. Pro se litigants b. Qui tam plaintiffs c. Affiliated litigants d. State-controlled plaintiffs Answer: Before implementing a mandatory safety standard, the […]

Chapter 13 does not provide a bankruptcy discharge for corporations. a. True b. False Answer: The agreement of all the commercial airlines not to lower their fares would be an example of a: a. vertical restraint of trade. b. horizontal […]

A(n) __________ is created when two or more persons agree to place their money, labor, or skills in a business and to share the profits and losses. a. sole proprietorship b. general partnership c. S partnership d. C corporation Answer: […]

The European Union takes a stricter view of vertical territorial restraints because of their tendency to impede continent-wide market integration. a. True b. False Answer: ___________ rules prescribe which law a state court should apply in a multi-state litigation. a. […]

Requirements that must be met under the loan agreement before the lender’s obligations arise are known as: a. conditions precedent. b. conditions concurrent. c. conditions subsequent. d. loan qualifiers. Answer: CASE 1, Wal-Mart Stores, Inc. v. Dukes (2011), involved a […]

A proposal by a sales representative that is subject to approval by the home office is not an offer. a. True b. False Answer: Which of the following is true? a. Cannot be bound on contracts made by an agent […]

Toby is the commissioner of environmental matters for State X, the state with the cleanest air in the nation. U.S. Pollution Company wants to move into State X. Unfortunately, State X has had a severe economic downturn. Many of the […]

The Fair Labor Standards Act requires that, with some exceptions, every employee be paid __________ for hours worked in excess of __________ hours in a workweek. a. one and one-half the regular rate of pay; 40 b. two times the […]

What are the four basic types of intellectual property? a. Patents, copyrights, trademarks, and trade secrets b. Patents, copyrights, certifications, and trademarks c. Copyrights, certifications, trademarks, and original works d. Inventions, certifications, original works, and patents Answer: Which of the […]

Which of the following are among the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act in relation to shareholder control of pay for top executives? a. The act provides that shareholders of all privately held as well […]

Consideration can be either a promise to do a certain act or the performance of the act itself. a. True b. False Answer: Which of the following is true regarding the growth of socially responsible mutual funds? a. Such funds […]

Fred sued Document Security Company, alleging he had suffered injuries to his hands as a result of attempting to fix a jam in one of Document Security’s paper shredders. Fred alleged the shredder was defective because it failed to contain […]

Once the Patent and Trademark Office issues a patent, a court may not find it invalid. a. True b. False Answer: Congress can override a President’s veto by a __________ vote of both the House of Representatives and the Senate. […]

Helen tells her nephew, Bernard, that she will pay him $100 if he will stop smoking for six months. Helen was hopeful that if Bernard stopped smoking for six months, he would stop altogether. Bernard stops smoking for six months […]

Under the __________ view of the firm, resources can be a source of competitive advantage if they are __________. a. resource-based, rare b. systems-based, hard to copy c. resource-based, available to competitors d. systems-based, available to competitors Answer: Which of […]

A contract is __________ if its terms are unduly harsh or oppressive or unreasonably favorable to one side. a. substantively unconscionable b. procedurally unconscionable c. procedurally impracticable d. substantively impracticable Answer: The Seventh Amendment grants the defendant in most criminal […]

The U.S. Supreme Court struck down Arizona’s “Legal Arizona Worker’s Act of 2007” because it went beyond the Immigration Reform and Control Act’s savings clause which preempts states from imposing civil or criminal sanctions on employers hiring aliens other than […]

Which of the following is true regarding the state of mind needed in order to find a violation of Section 16(b) involving short-swing trading? a. Liability is imposed under Section 16(b) regardless of the insider’s state of mind. b. Intent […]

In CASE 20.4In re Abbott Laboratories Derivative Shareholders Litigation(2003), the shareholder-plaintiffs alleged the corporate directors breached their duty of good faith through their failure to follow up on repeated notices of regulatory noncompliance. How did the court rule? a. The […]

In the Air Products & Chemicals, Inc. v. Airgas, Inc. case discussed in the text, defendant’s boardof directors allegedly breached its fiduciary duties to stockholders by refusing to redeem a poison pill in place and allow a hostile takeover to […]

The business judgment rule is applicable only if the directors make an informed decision. a. True b. False Answer: Which of the following is true regarding “holder” claims? a. They are disallowed by federal statute. b. State law is preempted, […]

Which of the following is NOT true regarding the misappropriation theory of insider trading? a. If a trader discloses to a source of nonpublic information that he or she plans to trade on the basis of that information, there is […]

When the seller provides the buyer with a document enabling them to pick up goods held at an independent warehouse, the risk of loss passes to the buyer when the: a. goods are picked up by the buyer. b. contract […]

Bob goes bankrupt. He has several creditors and a small amount in savings. He owes XYZ Bank $200,000 for which he used his home as collateral. XYZ Bank properly perfected its interest in the home. Bob additionally owes $3,000 in […]

A bank’s __________ rate is the lowest published rate of interest at which the bank lends to its best and most creditworthy commercial customers. a. lien b. term c. prime d. secured Answer: Under the efficient market hypothesis, in an […]

A well-seasoned issuer is a firm that either has at least $100 million public worldwide common equity float held by nonaffiliated, OR has issued an aggregate of at least $100 million of registered non-convertible debt securities in the past three […]

A survey shows that three out of four whites believe that African Americans and Hispanics are more likely than whites to prefer living on welfare, and a majority of whites also believe that African Americans and Hispanics are more likely […]

A hypothetical imperative tells us to act as we would want everyone to act in that situation. Answer: Legal paternalism is the doctrine that the law should not be used to restrict the freedom of individuals for their own good. […]

Granting workers new responsibilities and respect can benefit the entire organization. Answer: Job discrimination can be individual or intentional. What are two other forms that job discrimination can take? Answer: It can be individual or institutional, and it can be […]

Deceptive advertising is always legal because we have freedom of speech. Answer: When used properly, personality tests can help screen applicants for jobs by indicating areas of adequacy and inadequacy. Answer: T Many philosophers believe (as Aristotle did) that we […]

Job performance and the fairness of the work contract are relevant to the issue of fair wages. Answer: An early 1970s government survey of worker dissatisfaction identified that worker dissatisfaction has been linked to the industry’s preoccupation with quantity, not […]

Statistics by themselves do not prove discrimination. Answer: Capitalism is possible without private property. Answer: F Egoists only do what they feel like doing. Answer: F What we call capitalism did not fully emerge until the Renaissance in Europe during […]

A kickback is a kind of bribe. Answer: Fatigue and sleep deprivation are no longer prime causes of industrial accidents. Answer: F An argument is a group of statements, one of which is claimed to follow from the others. Answer: […]

The rights guaranteed in the Bill of Rights are positive rights, not negative rights. Answer: There is a general consensus among philosophers and lawyers about how to define the right to privacy. Answer: F Sympathetic strikes are ineffective. Answer: F […]

The sense of private property that is central to capitalism is the ownership of the means of production and distribution. Answer: Sympathetic strikes are ineffective. Answer: F The idea that corporations will impose their values on us supports one of […]

Any drug-testing program, assuming it is warranted, must be careful to respect the dignity and rights of the persons to be tested. Answer: Libertarians reject inheritance as a legitimate means of acquiring wealth. Answer: F According to W. D. Ross, […]

Economists can prove, if we grant them enough assumptions, that free-market buying and selling lead to optimal results. One of those assumptions is that everyone has full and complete information, on the basis of which they then buy and sell. […]

Anti-discrimination laws do not address the present-day effects of past discrimination. Answer: One of the major characteristics of an organization is the shared acceptance of organizational rules by its members. Answer: T An effective professional or business moral code-as well […]

The Wagner Act of 1935 permitted firing workers because of union membership or union activities. Answer: John Kenneth Galbraith rejects the assumption that Smith’s invisible hand will solve all social and economic problems. Answer: T Externalities are the unintended negative […]

Thanks to the EPA, the federal government long ago eliminated the problem of potentially harmful pesticides and other chemical residues in food. Answer: According to Norman Bowie, a discussion of whistle blowing in the 1990s parallels the discussion of civil […]

In the essay, “Is Business Bluffing Ethical?” Albert Carr insists that business a. requires people to behave unethically. b. has nothing to do with morality. c. has its own special moral rules, divorced from ordinary morality. d. requires employees to […]

Kant believed that we should always act a. in such a way that we can will the maxim of our action to be a local law. b. in a way that treats success as an end in itself, never merely […]

John Rawls’ Theory of Justice lays within which type of tradition? a. All for one and one for all. b. Principled living. c. Feudal society. d. Social contract. Answer: The Foreign Corrupt Practices Act (FCPA) outlaws grease payments. Answer: F […]

Rule utilitarians a. believe that the optimal moral code will not normally produce 100% compliance. b. believe that the optimal moral code would consist of only one rule, namely, always act so as to maximize happiness. c. assume that everyone […]

Which of the following considerations about utilitarianism is correct? a. The great 19th century utilitarians, Jeremy Bentham and John Stuart Mill, believed that pleasure and happiness were different things. b. Unlike Mill, Bentham was only concerned with the amount of […]

According to Tom Regan, our considered moral beliefs are those we hold only after we have made a conscientious effort (a) to attain maximum conceptual clarity, (b) to acquire all relevant information, (c) to think about the belief and its […]

The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts a. permitted consumers to sue manufacturers with whom they had no contractual relationships. b. adopted the principle of caveat […]

Which act provides sweeping new legal protection for employees who report possible securities fraud, making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them? a. Sarbanes-Oxley Act of 2002 b. Foreign […]

The 1984 Supreme Court decision in Memphis Firefighters v. Stotts a. treated sexual harassment as a form of discrimination. b. upheld seniority over affirmative action. c. upheld the legality of hiring quotas. d. upheld the legality of mandatory drug testing. […]