Bus Law 2000 Flashcards
(249 cards)
1
Q
Scholars advocate that the modern understanding of human rights began with the concept of property.
T or F
A
True
2
Q
Positive law jurisprudence is contrary to the philosophy of natural law.
T or F
A
True
3
Q
The civil law legal system relies on judicial decisions to determine what the law is. T or F
A
False
4
Q
Procedural law deals with the rules of law governing the creation or enforcement of a contractual promise. T or F
A
False
5
Q
Compensatory damages are awarded to compensate the party for all losses that are the direct and foreseeable result of the breach of contract. T or F
A
True
6
Q
The view that economically strong nations exploit the resources and labor of weaker nations through trade is advocated by the \_\_\_\_\_ theory. A) common law B) civil law C) dependency D) stare decisis E) international trade
A
C. Dependency
7
Q
Under the rule of law, laws are:
A) accessible to eligible sections of society.
B) different for different groups of society.
C) made to benefit certain sections of society.
D) different for lawmakers of a society.
E) an ideal rather than a complete fact.
A
E. an ideal rather than a complete fact.
8
Q
The common law legal system:
A) emphasizes the role of judges in determining the meaning of laws.
B) does not determine the meaning of the constitution.
C) is overridden by the acts of the president.
D) relies more on legislation than judicial decisions to determine what the law is.
E) involves referring to “settled” cases without obligation to follow prior judicial decisions.
A
A. emphasizes the role of judges in determining the meaning of laws.
9
Q
Federal legislation that is \_\_\_\_\_ prevails over all other sources of law. A) constitutional B) passed by the Congress C) an ordinance D) an act E) a statute
A
A. constitutional
10
Q
Knowing the \_\_\_\_\_ makes it easier to locate prior precedents for a case. A) ordinances B) acts C) statutes D) codes E) citations
A
E. citations
11
Q
Ethics is a systematic statement of right and wrong together with a philosophical system that both justifies and necessitates rules of conduct
T/F
A
True
12
Q
For the formalist thinker Immanuel Kant, to be ethical requires that you act with a good intent.
T/F
A
True
13
Q
Social contract theory says that you have a moral duty to act in the way you believe everyone should act.
T/F
A
False
14
Q
The Protestant ethic discouraged the rise of capitalism
T/F
A
False
15
Q
Philosophers call the end result of ethical examination – a. the good b. the bad c. the ugly d. the rule of law
A
a. the good
16
Q
Is there a relationship between
law and ethics?
a. Yes
b. No
A
a. Yes
17
Q
For a consequentialist, the act of secret monitoring itself is inherently unethical.
T/F
A
false
18
Q
Which of the following statements is true of laws, values and ethics?
a. Observance of the law is superior to the commitment to ethical values.
b. The motivation to observe moral rules comes from society.
c. Cultural diversity influences the subjective determination of values.
d. Law and ethics is one and the same thing.
e. Values are a formal system for deciding what is right and wrong.
A
c. Cultural diversity influences the subjective determination of values.
19
Q
Which of the following statements is true in the context of formalism?
a. Religion provides the impetus to work hard and achieve more
b. The ends justify the means.
c. The ethics of actions are measured by how they promote the common good.
d. Practice what you preach.
e. Incorrect actions have no justification whatever be the situation.
A
e. Incorrect actions have no justification whatever be the situation.
20
Q
When reviewing appeals, issues of fact normally are resolved by justices.
T/F
A
False
21
Q
A party may obtain a second review if the higher reviewing court, in the exercise of its discretion, agrees to such a review.
T/F
A
True
22
Q
The general role of an appellate court is to: a.Review questions of fact b.Review questions of fact and law c.Review questions of law d.Review only constitutional questions
A
c.Review questions of law
23
Q
A writ of certiorari is a request by the losing party for permission to file an appeal with the U.S. Supreme Court.
True
False
A
True
24
Q
Judicial review is the power to assess laws passed by the legislative body.
True
False
A
True
25
Those who think that the power of judicial review should be used whenever the needs of society justify its use believe in judicial activism.
True
False
True
26
Which of the following is most likely to be the function of a judge?
a. Determine the relevant facts
b. Present evidence to the jury
c. Serve as representative advocates in the courts
d. Apply law to the facts
e. Argue the law to the court
d.Apply law to the facts
27
_____ have the primary duty to observe and to apply constitutional limitations and guarantees.
a. Plaintiffs
b. Trial Judges
c. Lawyers
d. Jurors
e. Advocates
b. Trial Judges
28
Which of the following is true of the role of jurors?
a. They determine the applicable rules of law relevant to the case.
b. They present the evidence and arguments to the juries and judges.
c. They apply the law to the facts.
d. They apply constitutional limitations and guarantees.
e. They determine the facts from conflicting evidence.
e. They determine the facts from conflicting evidence.
29
_____ is a request by the losing party in the court of appeals for permission to file an appeal with the U.S. Supreme Court.
a. Writ of certiorari
b. Obiter dicta
c. Habeas corpus
d. Voir dire
e. Ratio decidendi
a. Writ of certiorari
30
What is ratio decidendi?
a. The oath administered to prospective jurors or witnesses to say what is true
b. A case accorded with a final judgment and no longer subject to appeal
c. A judge's observation that is not necessarily a part of the court's decision
d. The underlying principle which determines and establishes the case
e. The legal principle by which judges adhere to the precedents of the case
d. The underlying principle which determines and establishes the case
31
For any court to exercise authority in any
given case, which of the following must happen:
a. Court has jurisdiction of subject matter
b. Court can exercise personal jurisdiction of
the defendant
c.Plaintiff has standing to bring the case before
the court
d. All the above
d. All the above
Court has jurisdiction of subject matter
Court can exercise personal jurisdiction of
the defendant
Plaintiff has standing to bring the case before
the court
32
“Directed verdict” refers to the
a.Power of court over parties involved.
b.Power granted to litigant to reject jurors.
c.Power of court to order sworn questioning
of witnesses outside of court.
d.Power of court to grant a decision in
favor of defendant when insufficient
evidence is presented at trial.
d.Power of court to grant a decision in
favor of defendant when insufficient
evidence is presented at trial.
33
The presence of standing to sue is determined by the outcome of the litigation.
True
False
False
34
Long-arm statutes authorize out-of-state service of process in all cases.
True
False
False
35
A peremptory challenge means that no cause or reason needs to be given to excuse a prospective juror.
True
False
True
36
For criminal cases, the burden of proof is described as preponderance of evidence.
True
False
False
37
When a petition for certiorari is filed to the Supreme Court, the party initiating the petition is the petitioner and the other party is known as the respondent.
True
False
True
38
When a counterclaim is charged by a defendant, he becomes a _____.
a. counterdefendant
b. plaintiff
c. counterplaintiff
d. petitioner
e. respondent
c. counterplaintiff
39
In a (an) _____, the lawyer orally asks questions of the possible witness and an oral response is given.
a. request for production
b. deposition
c. extradition
d. interrogatory
e. garnishment
b. deposition
40
In a summary judgment:
a. the dissatisfied party files a posttrial motion with the judge.
b. the party filing this motion asks the judge to base a decision on evidence besides the pleadings.
c. the judges are asked to decide the case based solely on the complaint and the answer.
d. the defendant moves to dismiss a suit for reasons such as expiration of the time.
e. the party filing this motion asks the judge to base a decision only on the pleadings.
b. the party filing this motion asks the judge to base a decision on evidence besides the pleadings.
41
What does voir dire mean?
a. The oath administered to prospective jurors or witnesses to say what is true
b. A case accorded with a final judgment and no longer subject to appeal
c. A judge's observation that is not necessarily a part of the court's decisio
d. The underlying principle which determines and establishes the case
e. The legal principle by which judges adhere to the precedents of the case
a. The oath administered to prospective jurors or witnesses to say what is true
42
What is res judicata?
a. The underlying principle of a case
b. The process of finding out the facts of the case
c. The final resolution of the case on appeal
d. A request for a second review of the case
e. A plea wherein the defendant agrees not to contest the charges
c. The final resolution of the case on appeal
43
```
All of the following are advantages of
arbitration over litigation except:
a. Right to appeal
b. Takes less time
c. Nonpublic
d. Not as expensive
```
a. Right to appeal
44
```
If the parties to a mediation sign an
agreement at the end, that agreement is
usually legally binding (can be enforced
in court.)
True
False
```
True
45
Disputing parties do not have to begin a lawsuit to use any form of ADR.
T/F
True
46
The arbitrators in the mandatory arbitration process are subject matter experts.
T/F
False
47
The award resulting from the voluntary arbitration procedure is not final.
T/F
False
48
The right to reject the award and to proceed to trial is the sole remedy of a party dissatisfied with the award of a mandated arbitration.
True
False
True
49
A mediator's conduct is subject to judicial review.
True
False
False
50
Which of the following is true of arbitration?
a. The record of proceedings is available to the press and others.
b. The decisions arising from arbitration are binding on the parties.
c. The decision to arbitrate a dispute is voluntary, and cannot be imposed on the parties.
d. The parties themselves resolve all the matters of contention, without the intervention of a third party.
e. The arbitrator need not be a disinterested party.
b. The decisions arising from arbitration are binding on the parties
51
An arbitrator's decision is known as a(n) _____.
a. judgment
b. verdict
c. award
d. garnishment
e. summary judgment
c. award
52
QUESTION 8
Courts use judicial review to change the awards of voluntary arbitration when:
a. both parties are dissatisfied with the award.
b. the decision is allegedly against public policy.
c. the arbitrator made erroneous rulings during the hearing.
d. one party is dissatisfied with the award.
e.the arbitrator misunderstands the law.
b. the decision is allegedly against public policy.
53
Which of the following is true of mandatory arbitration?
a. The award is final, with no judicial review possible. b. Submission is based on parties' agreement after a dispute arises.
c. The process is seldom bound by rules of evidence.
d. It does not require a record of proceedings.
e. The issue can be tried as new if a party rejects the award.
e. The issue can be tried as new if a party rejects the award
54
The method by which parties resolve most matters of contention themselves, and then arbitrate the unresolved matters is known as _____.
a. caucus
b. Med-Arb
c. mediation
d. litigation
e. judicial review
b. Med-Arb
55
What is the mechanism through which the states
receive their governmental power from the federal
government?
a. The Tenth Amendment of the US Constitution.
b. Article VI of the US Constitution.
c. The Federal States Power-Sharing Act of 1791.
d. States do not receive their power from the
Federal government.
d. States do not receive their power from the
| Federal government.
56
Do the protections of the Bill of Rights
apply to businesses?
Yes
No
Yes
57
Is it ever permissible for a law or government
regulation to discriminate?
Yes
No
Yes. Most all laws “discriminate” in that they create categories of persons of situations under which a law applies. How the law discriminates is key and will form the basis for how the law will be scrutinized and eventually upheld or struck down by a court.
58
```
Is it likely for a nation to be prosperous
and maintain a vibrant market without
having a strong concept of private
property?
a. Yes
b. No
```
b. No
| Private property under the rule of law is key to a nation’s prosperity.
59
```
Private property influences the marketplace
In what ways?
a. promoting incentives for risk and
development.
b. recognizing divisibility of resources.
c. creating conditions for capital
formation.
d. all of the above.
```
d. all of the above.
60
```
Do secured interests that are recorded
“first in time” always take priority over
competing interests recorded later?
Yes
No
```
No. While the general rule is that the first to record takes priority over subsequently recorded security interests in the same resource, it must be remembered that a PMSI—a purchase money security interest—takes priority from the time the security interest “attaches” which is when the security agreement is signed, not from the time that agreement is subsequently recorded. Therefore, a PMSI can take priority over a competing (non-PMSI) security interest that was recorded first but was attached after the PMSI.
61
Adverse possession applies only to land.
| T/F
True
62
The right of redemption allows a mortgagor, before foreclosure, to get back the land upon payment of the full amount of the debt.
T/F
True
63
Financing statements are appropriate to perfect negotiable collaterals.
T/F
False
64
A public nuisance is an unreasonable use of one's property so as to cause substantial interference with the enjoyment or use of another's land.
T/F
False
65
Zoning ordinances restrict uses of land that existed prior to passage of the ordinances.
T/F
False
66
Which of the following is true of property?
A) It cannot be transferred.
B) People cannot prevent others from using their property.
C) It is infinite.
D) Property is absolute.
E) Its boundaries cannot be ambiguous.
D) Property is absolute.
67
Which of the following is a condition under the state statute for one to acquire ownership through an adverse possession of land?
A) The possession must be interrupted.
B) The possessor must occupy the land in such a way as to put the true owner of the land on notice.
C) The possessor must have the owner's permission to be on the land.
D) The possessor need not physically occupy the land.
E) The possessor must occupy the land for at least a year before becoming the new owner.
B) The possessor must occupy the land in such a way as to put the true owner of the land on notice.
68
Kirk steals Sophie's ramshackle car and restores all its worn-out components, including the engine. Kirk is apprehended while fleeing in the car to the neighboring state. Which of the following is true in the context of the car's ownership?
) Sophie owns the car but Kirk owns the engine.
B) Sophie owns the car but must pay Kirk for the engine and repairs.
C) Kirk becomes the owner due to accession.
D) Sophie owns the car and owes Kirk nothing.
E) Both Sophie and Kirk become the owners of the car.
D) Sophie owns the car and owes Kirk nothing.
69
When a joint tenant dies, his or her share of the property:
A) passes to the state government.
B) passes to the remaining tenant.
C) passes to his or her heirs.
D) passes to the Federal government.
E) is auctioned by the local authorities.
B) passes to the remaining tenant.
70
```
A(n) _____ arises when a person wrongfully uses another's land continuously for a period of years.
A) easement by necessity
B) easement by prescription
C) natural easement
D) easement by estoppel
E) negative easement
```
) easement by prescription
71
All promises are legal contracts.
a. True
b. False
b. False
While we typically think of contracts as formal written documents, they do not need to be. An informal, verbal exchange of promises can be a valid contract just as enforceable as a formal written agreement. Another key to the value of contracts is that they are enforceable by the courts. Allowing for the certainty that comes with adequately enforcing persons and businesses promises allows for improved buyer/seller relationships because there is certainty in business dealing making them willing to do business together.
72
George, a painter, is hired to paint the exterior of
701 Main Street but mistakenly paints 703 Main Street
instead. Mike, the owner of 703, is home and sees him
but says nothing. When George is done, Mike refuses to
pay him. Does George have a remedy in contract to be
paid for his work?
a. Yes
b. No
b. No
Technically, no. There is no contract remedy but George can pursue a remedy in quasi-contract. Mike has been unjustly enriched and had the opportunity to, but didn’t mitigate damages.
73
George, a painter, is hired to paint the exterior of
701 Main Street but mistakenly paints 703 Main Street
instead. Mike, the owner of 703,isn’t Home when George paints his house. Does George have
a remedy in contract, or otherwise, to be paid for his
work?
a. Yes
b. No
b. No
There is no contract remedy and Mike has not been unjustly enriched nor had he had the opportunity to mitigate damages. George made a unilateral mistake for which he has no remedy.
74
Deposited acceptance rule is also known as the mailbox rule.
True
False
True
75
An option is a promise to keep an offer open for a certain time period that is supported by the offeree's consideration.
True
False
True
76
Misrepresentation occurs when one is taken advantage of unfairly through a contract by a party who misuses a position of relationship.
True
False
False
77
The part performance exception sometimes is called promissory estoppel.
True
False
True
78
An assignor who delegates duties under a contract is automatically relieved of future liability.
True
False
False
79
```
For an acceptance to create a binding contract, standard contract law requires that the acceptance must match the offer exactly. This is known as the _____.
mirror image rule
exculpatory contract rule
usury rule
plowback rule
quasi-contract rule
```
mirror image rule
80
```
_____ means force or threat of force.
Misrepresentation
Duress
Fraud
Novation
Mutual mistake
```
Duress
81
```
Jordan owes Joel $20,000 for work Joel already has performed. Also assume that Jordan does work for Jack and contracts to have Jack pay Joel. Joel plays the role of a(n) _____ in the Jordan-Jack contract.
donee beneficiary
creditor beneficiary
incidental beneficiary
allonge
principal debtor
```
creditor beneficiary
82
```
The law of _____ involves a sale of rights under a contract.
accession
rescission
assignment
consideration
capacity
```
assignment
83
```
A(n) _____ is the act of either replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party.
accession
rescission
embezzlement
consideration
novation
```
novation
84
The parol evidence rule does not apply to oral modifications coming after the parties have made the written contract.
True
False
True
85
```
What is the first and most important place to
look to determine what parties to a contract
agreed to?
their current statements or testimony
as to what was agreed to.
notes from negotiation sessions.
the words of the contract.
none of the above
```
the words of the contract.
86
```
A duty of performance under a contract
is discharged because of commercial
impracticability and impossibility of
performance.
Yes
No
```
yes
87
Principals directly control independent contractors.
True
False
False
88
An employee on a frolic or detour is no longer acting for the employer.
True
False
True
89
What is the parol evidence rule?
A rule requiring that contracts that would normally fall under the statute of frauds and need writing if negotiated by the principal must be in writing even if negotiated by an agent.
A common law rule which states that oral evidence of an agreement made prior to a written agreement is inadmissible when the parties intend to have the written agreement be the final version of their agreement.
A rule which states that the first assignee to give notice of assignment to the obligor is the party with rights to the contract.
A rule requiring that the seller delivers the goods in conformity with the contract, down to the last detail.
A legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.
A common law rule which states that oral evidence of an agreement made prior to a written agreement is inadmissible when the parties intend to have the written agreement be the final version of their agreement.
90
What are liquidated damages?
Damages that are assessed against a party at fault to punish it for wrong-doing and to deter others from acting in a similar manner.
Damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach.
Court-awarded damages arising from unusual losses which the parties knew would result from breach of the contract.
Damages that include the reasonable charges, or other costs which flow from the loss such as delivery expenses.
Court-awarded damages to put the plaintiff in the same position as if the contract had been performed.
Damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach.
91
What is respondeat superior?
A doctrine that allows the judge to infer that, more likely than not, the defendant's negligence was the cause of the plaintiff's harm.
A legal term that signifies that the plaintiff and the defendant are in equal fault for the breach of contract.
A legal term that indicates a major departure wherein the employee makes a major departure from his employer's charge.
A plea in which the defendant does not admit guilt but agrees not to contest the charges.
A legal doctrine which states that an employer is responsible for the actions of employees performed within the course of their employment.
A legal doctrine which states that an employer is responsible for the actions of employees performed within the course of their employment.
92
What is ratification?
The return of any property given up under a contract.
A principal's confirmation of an act of its agent where the agent lacked authority to legally bind the principal.
The abrogation of a contract, effective from its inception, that restores the parties to the positions they would have occupied if no contract had ever been formed.
The substitution of a new contract for an old one which extinguishes the rights and obligations effective under the old agreement.
A doctrine which states that an employer is responsible for the actions of employees performed within the course of their employment.
A principal's confirmation of an act of its agent where the agent lacked authority to legally bind the principal.
93
A customer mistakenly believes that a recently terminated employee who presents a contract on company stationery is authorized to sign that contract on behalf of the company. The employee's signing on the agreement creates _____.
actual authority
vicarious liability
implied authority
express authority
apparent authority
apparent authority
94
A customer mistakenly believes that a recently terminated employee who presents a contract on company stationery is authorized to sign that contract on behalf of the company. The employee's signing on the agreement creates _____.
```
actual authority
vicarious liability
implied authority
express authority
apparent authority
```
apparent authority
95
Best Box Company advertises so effectively
that National Products, Inc. stops doing
business with Average Package Corp. Best
is liable for:
Appropriation
Wrongful interference with a contractual
relationship
Wrongful interference with a business
relationship
None of the above
None of the above
96
The law of tort itself is criminal rather than civil.
True
False
False
97
A union picket walking on a private company's property is an example that relates to the tort of malicious prosecution.
True
False
False
98
It is not a person's general duty to avoid injuring others through nonconduct.
True
False
True
99
It is not enough that a plaintiff suing for negligence prove that the defendant caused an injury in fact.
True
False
True
100
Loss of earning power following a tort injury is an example of compensatory damage.
True
False
True
101
```
A(n) _____ involves injury following a failure to use reasonable care.
intentional tort
strict liability tort
premeditated tort
conversion tort
negligence tort
```
negligence tort
102
```
A(n) _____ is an illegal touching of another.
allonge
disparagement
slander
battery
libel
```
battery
103
```
In the context of intentional torts in business environments, _____ is the wrongful exercise of power over the personal resources that belong to another.
insider trading
libel
false pretense
conversion
undue influence
```
conversion
104
```
The _____ defense arises from the plaintiff's knowing and willing undertaking of an activity made dangerous by the negligence of another.
last-clear-chance
assumption-of-the-risk
comparative-responsibility
modified-comparative
contributory negligence
```
assumption-of-the-risk
105
```
_____ damages arise from intentional torts or extreme "willful and wanton" negligence.
Liquidated
Punitive
Consequential
Nominal
Compensatory
```
Punitive
106
```
A copyright gives the owner the _____
right to reproduce, distribute, perform,
display, or license his work.
Exclusive
Shared
Human
Limited
```
Exclusive
107
```
Which is not an allowable “fair use” of
copyrighted material?
Teaching
Research
Profits
Reporting
```
Profits
108
The protections of property always apply automatically to ownership of intangible knowledge resources.
True
False
False
109
John applied reverse engineering on a remote-controlled motor boat he purchased and figured out its mechanism. This is an example of misappropriation.
True
False
False
110
According to the one-year rule, an invention, although new, fails the novelty test if it has been described in a publication within a year before filing the patent application.
True
False
False
111
The U.S Patent and Trademark Office will deny registration of a trademark if the mark merely describes a product or service.
True
False
True
112
DMCA has made it illegal to circumvent devices used by copyright owners to keep their works from being infringed.
True
False
True
113
```
A process, product, or compilation of information that gives businesspersons an advantage over their competitors is known as a _____.
trade dress
trademark
copyright
patent
trade secret
```
trade secret
114
```
Which of the following is a(n) order by a judge either to do something or to refrain from doing something?
Standing
Interim order
Injunction
Declaratory judgment
Lawburrows
```
Injunction
115
```
Recognizability is the function of _____.
license
trade secrets
copyrights
patents
trademarks
```
trademarks
116
```
_____ is a mark representing membership in a certain organization or association.
Collective mark
Tidemark
Service mark
Checkmark
Certification mark
```
Collective mark
117
Which of the following is true about a copyright?
No registration is required to obtain a copyright under federal law.
The Copyright Act specifies that use of copyrighted materials is always an infringement of the owner's property.
Copyright laws protect inventors rather than authors.
Copyright protection attaches at the moment the work is copied.
An action for copyright infringement will begin before the author's registration of the work with the Copyright Office.
No registration is required to obtain a copyright under federal law.
118
__________ uses international agreements
and laws of individual nations to resolve
business disputes
private international law
public international law
the world court
private international law
119
Under the FCPA it is unlawful to make a payment to a third party, while knowing that all or a portion of the payment will go directly or indirectly to a foreign official.
True
False
True
120
Private international law examines relationships between nations and uses rules that are binding on all countries in the international community.
True
False
False
121
Under the CISG, very little freedom is provided for the individual parties in an international contract
True
False
False
122
Choosing a method of doing business in foreign countries demands an appreciation of the international trade perspective.
True
False
True
123
From 1952 until 1976, U.S. courts adhered to a restrictive theory under which immunity existed with regard to private or commercial acts.
True
False
False
124
```
_____ is designed to stop bribery of foreign officials and to prohibit U.S. citizens and companies from making payments to foreign officials whose duties are not "essentially ministerial or clerical" for the purpose of obtaining business.
IACAC
FCPA
CFPOA
OECD
ICPO
```
FCPA
125
```
Which of the following examines relationships between nations and uses rules that are binding on all countries in the international community?
Supranational law
Private international law
Treaties
Public international law
Customary international law
```
Public international law
126
```
Which of the following organizations was created to develop standardized commercial practices and agreements?
IMF
UNCTAD
GATT
TRIPS
UNCITRAL
```
UNCITRAL
127
```
Which of the following agreements is designed to eliminate barriers on products trades between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States?
CAFTA-DR
CISG
NAFTA
EFTA
CETA
```
CAFTA-DR
128
```
The Supreme Court prevented which of the following from being extended to foreign governments acting in a commercial capacity?
Doctrine of sovereign immunity
Public duty doctrine
Impeachment doctrine
Doctrine of command responsibility
Doctrine of joint criminal enterprise
```
Doctrine of sovereign immunity
129
```
Crimes punishable by one year or more
imprisonment are called _________.
Misdemeanors
Criminal indiscretions
Felonies
Indictments
```
Felonies
130
```
Generally, when corporations are charged
with crime, corporate officers can
also be criminally charged.
True
False
```
True
131
```
Employees of some business do not
have 4th amendment protections
because of public policy considerations.
True
False
```
True
132
Felonies are punishable by fine or imprisonment in a penitentiary for a period of one year or more.
True
False
True
133
A petit jury determines if there is sufficient evidence to warrant a trial.
True
False
False
134
If an act is done willfully, it is committed voluntarily and purposefully with the specific intent to do something.
True
False
True
135
Grand juries are authorized to engage in arbitrary fishing expeditions.
True
False
False
136
The Sixth Amendment gives an individual the right to confront his accuser.
True
False
True
137
```
The government files a charge called an information for:
misdemeanor criminal cases.
felony cases.
infractions.
regulatory offences.
summary offences.
```
misdemeanor criminal cases.
138
```
A _____ determines if there is sufficient evidence to warrant a trial.
trial jury
petit jury
grand jury
small jury
hung jury
```
grand jury
139
```
Which of the following helps a defendant to avoid the effect of a guilty plea in a subsequent civil action?
Guilty
Nolo contendere
Not guilty
Entrapment
Covert operation
```
Nolo contendere
140
Which of the following is true of a grand jury?
It attempts to determine if the accused is guilty.
It determines the guilt or innocence of the accused.
It has a lesser number of jurors than a trial jury.
It screens jurors for bias or other improper factors.
It prevents political trials and unjustified prosecutions.
It prevents political trials and unjustified prosecutions.
141
```
Andrew posed as a salesman and called many houses through the telephone in order to collect personal information such as credit card numbers and social security numbers. Name the crime that Andrew committed.
Misappropriation
Conspiracy
Robbery
Wire fraud
Embezzlement
```
Wire fraud
142
```
Which is not a basic form of business
organization?
Corporation
Partnership
Union
Sole proprietorship
```
Union
143
```
Each partner in a partnership is
jointly and severally liable for claims
against the partnership.
True
False
```
True
144
Family-owned and family-operated businesses are common examples of closely held organizations.
True
False
True
145
The issues when considering methods of creating business organizations usually are time and money.
True
False
True
146
The death, retirement, or withdrawal of an owner creates issues of whether an organization and its business will continue.
True
False
True
147
A sole proprietorship has advantages of shared responsibility and liability.
True
False
False
148
Dissolution involves the winding up or liquidating of a business.
True
False
False
149
```
A _____ is any change in the ownership of an organization that changes the legal existence of the organization.
stability
durability
continuity
dissolution
permanency
```
dissolution
150
```
The factor of _____ concerns who is managing the business organization.
control
continuity
creation
cost
stability
```
control
151
```
Which of the following is the easiest and least expensive business organization to create?
Partnership firm
Corporation
Limited partnership
Limited liability company
Sole proprietorship
```
Sole proprietorship
152
Which of the following is true regarding a partnership?
If a partnership retains earnings, partners are not taxed on those earnings.
A partnership does not need permission from each state in which it does business.
A general partnership cannot be dissolved when there is a change in partners.
A dissolution destroys the business of a partnership.
All partners are not jointly liable for the partnership's debts.
A partnership does not need permission from each state in which it does business.
153
```
A(n) _____ is an agent appointed by a shareholder for the purpose of voting the shares.
underwriter
sole proprietor
proxy
director
incorporator
```
proxy
154
A state can regulate activities that relate to foreign commerce if such activities are conducted entirely within the state's boundaries.
True
False
True
155
If compliance with state law and the federal statute is not possible, state law must fall under the supremacy clause and the commerce clause.
True
False
True
156
The commerce clause prohibits the imposition of burdens on interstate commerce and the imposition of undue burdens.
True
False
False
157
The commerce clause requires that all regulations be the same for local businesses as for businesses engaged in interstate commerce.
True
False
True
158
The commerce clause requires states to use reasonable formulas when more than one state is taxing the same thing.
True
False
True
159
```
The _____ gives the federal government the authority to regulate business activity.
Fifth Amendment
Sherman Act
Wagner Act
First Amendment
commerce clause
```
commerce clause
160
```
The authority of the state and local governments to regulate business activity comes from the _____.
power of attorney
motive power
police powers
stopping power
soft power
```
police powers
161
Which of the following statements is true of administrative agencies?
They have only quasi-legislative types of regulatory authority.
They can issue rules that have the impact of the laws and can make decisions like a court.
They regulate business activities only at the state level.
The legal impact on business of the regulations enforced by these agencies is lesser than the impact of the courts.
Agencies replace regulation with competition.
They can issue rules that have the impact of the laws and can make decisions like a court.
162
```
An agency may order that a violator stop the objectionable activity and refrain from any further similar violations. This is known as a(n) _____ order.
executive
expertise
consent
cease and desist
service
```
cease and desist
163
```
Administrative law judges are protected from liability for damages based on their decisions. This protection is called _____.
immunity
police power
preemption
apportionment
accession
```
immunity
164
```
The underlying purpose and
objective of the area of antitrust laws
and regulations is
Social development
Environmental protection
Political advantage
Workable competition
```
Workable competition
165
```
Normal activities of labor unions are
NOT exempt from coverage under the
Sherman Act.
True
False
```
False
166
The Sherman Act defines trust, monopoly, and restraint of trade.
True
False
False
167
The Sherman Act defines trust, monopoly, and restraint of trade.
True
False
False
168
Antitrust laws are enforced by the federal and state governments and by private parties.
True
False
True
169
Conspiracies in restraint of trade usually result from conduct.
True
False
False
170
A conspiracy to monopolize does not require an overt act to accomplish it.
True
False
False
171
An injunction is granted when the success of a criminal prosecution is doubtful.
True
False
True
172
Which of the following is true of the Sherman Act provision?
It regulates monopoly, but not the attempts to monopolize.
It applies only to potential monopolies; it cannot control existing monopolies.
It applies only to interstate commerce or foreign commerce.
It regulates shared monopolies or oligopolies but not single firms.
A conspiracy to monopolize does not require proof of an overt act to accomplish it.
It applies only to interstate commerce or foreign commerce.
173
```
_____ refers to seeking to advance market share by injuring actual or potential competitors by means other than improved performance.
Creaming
Skimming
Competition-based pricing
Predatory conduct
Contribution margin-based pricing
```
Predatory conduct
174
```
When a defendant pleads _____, he can avoid an automatic proof deriving from a criminal case.
guilty
nolo contendere
not guilty
entrapment
Alford plea
```
nolo contendere
175
Which of the following is true of franchise contracts?
A franchisee must purchase its equipment from the franchiser.
Franchise agreements are competitive.
Franchise agreements are anti-competitive and illegal.
A franchisee need not purchase its equipment from the franchiser.
Franchiser can license its trademark to coerce franchisees to give up alternate supply sources.
A franchisee must purchase its equipment from the franchiser.
176
```
A _____ merger usually combines two businesses in the same field or industry.
vertical
parallel
conglomerate
congeneric
horizontal
```
horizontal
177
```
Omitting immaterial facts in filing a
securities registration statement is
a basis for registrant liability.
True
False
```
False
178
```
Key changes brought by Sarbane-Oxley
include criminalizing conspiracy to
commit securities fraud, adding
whistleblower protection,
and strengthening
securities fraud ________________.
Punishment
Education
```
Punishment
179
The staff personnel of Securities and Exchange Commission such as lawyers and security examiners are appointed by the president.
True
False
False
180
An issuer is anyone who participates in the original distribution of securities by selling such securities for an organization.
True
False
False
181
During the posteffective period of the registration process, contracts to buy and sell securities are finalized.
True
False
True
182
Criminal liability results from a willful violation of the act or fraud in any offer or sale of securities.
True
False
True
183
A plaintiff-purchaser must prove reliance on the registration statement in order to recover the amount of an investment.
True
False
False
184
The Securities and Exchange Commission, under its quasi-judicial power:
adopts rules and regulations relating to financial information.
controls the operations of various stock exchanges and utility holding companies.
prescribes information that must be given to potential investors.
regulates the various investment trusts and investment advisers.
involves in a variety of investigations.
involves in a variety of investigations.
185
```
A(n) _____ is anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur.
issuer
seller
controlling person
underwriter
tippee
```
seller
186
```
_____ ads are brief announcements of a security and its price which appear during the waiting period and disseminate facts to be disclosed in the prospectus.
Institutional
Coupon
Adjunct
Tombstone
Overlay
```
Tombstone
187
Which of the following is true of short-swing profits?
The order of the purchase and sale is immaterial while making short-swing profits.
Profits made within a year are known as short-swing profits.
A short-swing profit is calculated on the lowest price out during any six-month period.
A short-swing profit is calculated on the highest price in during any twelve-month period.
The SEC enforces the provision that prohibits insiders from engaging in short-swing profits.
The order of the purchase and sale is immaterial while making short-swing profits.
188
```
A(n) _____ is viewed as a temporary insider and is liable for the use of nonpublic information.
investment banker
broker
tippee
underwriter
investment banker
```
tippee
189
A consumer can be defined as someone who buys something for personal, family, or household use.
True
False
True
190
A less competitive economy produces better goods and services at lower prices.
True
False
False
191
An advisory opinion is a legally binding opinion that shows how the FTC views the legality of a given trade practice.
True
False
False
192
When companies agree to fines as part of a consent order, the FTC or the Justice Department need not ask the federal court to assess the fines.
True
False
True
193
The Equal Credit Opportunity Act applies to all businesses which regularly extend credit, but does not affect automobile dealers and real estate brokers.
True
False
False
194
Which of the following is true of the Federal Trade Commission?
It is charged with maintaining protected trade.
It promotes a less competitive environment in an economy.
It does not have the right to prosecute businesses that commit deceptive trade practices.
It advises firms that request it as to whether a proposed practice is unfair or deceptive.
It issues formal and legally binding industry guides regarding the legality of a particular industry's trade practices.
It advises firms that request it as to whether a proposed practice is unfair or deceptive.
195
```
The chief legal tools of the Bureau of Consumer Protection are the consent order and the:
stipulated judgment.
cease and desist order.
agreed judgment.
fixed ruling.
criminal charge.
```
cease and desist order.
196
```
Olive, Inc., a leading food manufacturing industry, depends on consumers to make the link between their products and good health. They use one or two words in their advertisements to get the good health message across. They use words such as, "contains omega-3", "contains fiber", "now with probiotics", or "no cholesterol". This implies that Olive, Inc., is making a(n) _____ claim in the ads.
implied
express
lifetime
second-hand product
written express
```
implied
197
Which of the following is true of the Truth-in-Lending Act?
It covers transactions in which the debtor is an artificial person.
It covers transactions in which a finance charge may not be imposed.
It imposes a duty on all persons regularly extending credit to private individuals.
It covers loans secured by real estate but excludes unsecured loans.
It regulates the charges which are imposed on persons extending credit to private individuals.
It imposes a duty on all persons regularly extending credit to private individuals.
198
Which of the following is imposed by the Fair Debt Collection Practices Act on collectors?
A collector must place collect calls to the debtor.
A collector need not disclose his/her identity as a collector.
A collector can make calls to the debtor repeatedly.
A collector can threaten debtor with arrest or garnishment.
A collector cannot represent himself/herself as an attorney unless it is true.
A collector cannot represent himself/herself as an attorney unless it is true.
199
```
The cost of restoring mined or polluted land
to its previous condition is called
“remediation.”
True
False
```
True
200
The Clean Air Act and Clean Water Act
contain civil but not criminal sanctions.
True
False
False
201
NEPA imposes specific "action forcing" requirements on federal agencies.
True
False
True
202
Several regulatory guidelines encourage the use of technical jargon in environmental impact statements.
True
False
False
203
Primary air quality standards guard the public from adverse air pollution effects such as injury to property, vegetation, and climate and damage to aesthetic values.
True
False
False
204
Some of the major stationary polluters are steel mills and utilities.
True
False
True
205
The bubble concept states that instead of each pollution point source being licensed for a limited amount of pollution emission, the pollution of the plant complex should be focused.
True
False
True
206
Which of the following is true about scoping?
It encourages the attention devoted to trivial issues.
It ensures that the impact statements will address all matters regardless of their importance.
It encourages formal impact statements to focus on more substantial environmental concerns.
It does not allow other agencies and interested parties to participate in scoping.
It requires agencies to designate the most significant environmental issues of a contemplated action only after preparing an EIS.
It encourages formal impact statements to focus on more substantial environmental concerns.
207
Which of the following is true about the bubble concept?
The Clean Air Act has the authority to approve this concept.
It does not permit flexibility in curtailing pollution.
It licenses each plant pollution source for a limited amount of pollution emission.
It licenses a plant complex as a whole for a limited amount of pollution emission.
It divides air pollution into stationary source and mobile source.
It licenses a plant complex as a whole for a limited amount of pollution emission
208
```
Four Wheels, a leading automobile manufacturer, reduces pollution beyond what the law requires and keeps these reductions for its own future use. It uses revised engine mapping, diesel particulate filters that help the fuel consumption, and lower nitrogen oxide levels. There is also a start-stop system that halts and restarts the motor at brief stops. Which of the following is Four Wheels engaging in?
Point-source approach
Bubble concept
Cap and trade
Command and control system
Emissions reduction banking
```
Emissions reduction banking
209
```
An abandoned lake in a town was excavated and huge amounts of contaminated soil and toxic wastes were discovered. The local municipality owned the land where the lake was located. It settled the costs for restoring the lake to its previous condition. This implies that the local municipality involved in:
remediation.
reformation.
rehabilitation.
reconstruction.
reclamation.
```
remediation
210
```
Title VII of the Civil Rights Act of 1964
prohibits what kind of conduct?
discrimination in transportation
discrimination in gov’t services
discrimination in employment
age discrimination
```
discrimination in employment
211
Joe, a white man and Jim, a black man, were both
caught stealing from the employer. Joe was fired,
and Jim was written up and demoted.
Has racial discrimination occurred?
A. Yes
B. No
A. Yes
212
Your school’s security force is hiring. Their ad
reads, “must be 6 feet tall and 200 lbs.”
Is this ad discriminatory?
A. Yes
B. No
A. Yes
213
The ADA prohibits discrimination only
against the “qualified” disabled?
True
False
True
214
Employers can discriminate on the basis of religion, sex, or national origin where these are bona fide occupational qualifications (BFOQs) reasonably necessary to normal business operations.
True
False
True
215
The members of the Equal Employment Opportunity Commission are appointed by the state government.
True
False
False
216
An employee must file charges of illegal discrimination with the EEOC within 180 days after notice of the unlawful practice.
True
False
True
217
Denying employment to unwed mothers, when minorities have a higher rate of illegitimate births than whites, would be an example of disparate impact on race.
True
False
True
218
Religious corporations, associations, or societies cannot discriminate in all their employment practices on the basis of religion, race, color, sex, or national origin.
True
False
False
219
```
Title VII of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, religion, sex, color, or:
age.
income.
national origin.
financial status.
educational qualification.
```
national origin
220
```
Which of the following factors is omitted from bona fide occupational qualifications?
Religion
Sex
National origin
Race
Creed
```
Race
221
Which of the following is true of the Equal Employment Opportunity Commission (EEOC)?
The EEOC is composed of seven members.
The members of the EEOC are appointed by the president.
The Senate is not involved in the appointment of the members of the EEOC.
The EEOC cannot file a civil suit in a federal district court and represent a person charging a violation of the act.
Where state agencies begin discrimination proceedings, the EEOC does not have to wait before it starts action.
The members of the EEOC are appointed by the president.
222
```
Oliver got a job transfer to a remote area because he had made a discrimination charge against his employer, Jerry. Which of the following cases was Jerry involved in?
Disparate treatment
Disparate impact
Business necessity discrimination
Retaliation
Affirmative action
```
Retaliation
223
Which of the following would qualify as a bona fide occupational qualification?
A Baptist church refusing to engage a Lutheran minister.
A policy of hiring only females as flight cabin attendants.
A rule requiring airline stewardesses, but not stewards, to be single.
Refusing to hire a female newscaster because "news coming from a woman sounds like gossip."
A rule against hiring females with preschool-age children.
A Baptist church refusing to engage a Lutheran minister.
224
Kathy is a secretary making an hourly wage.
She works five days a week from 8:00 am until
4:30 pm with an unpaid hour for lunch. One
Monday her boss asks her to stay an extra to
hours to complete a project.
Is she entitled to overtime pay for those
two hours?
No
225
```
If a plant is facing closing and layoffs,
the employer must provide notice to
employees under the _____________.
Fair Labor Standards Act
WARN Act
Family and Medical Leave Ac
HIPPA
```
WARN Act
226
The FMLA specifically does not permit time
off to travel overseas for the adoption of a
child:
True
False
False
227
The Fair Labor Standards Act establishes a minimum wage, overtime pay, record-keeping requirements, and child labor standards.
True
False
True
228
The Fair Labor Standards Act requires breaks or meal periods to be given to workers.
True
False
False
229
The notice required by the WARN Act must be given in writing and be delivered at least 60 days prior to closing a work site or conducting mass layoffs.
True
False
True
230
When an employer is replacing striking employees in large numbers, the WARN notice is compulsory.
True
False
False
231
Under the Employee Polygraph Protection Act, private employers generally are forbidden from using lie detector tests while screening job applicants.
True
False
True
232
Which of the following is true of the Worker Adjustment and Retraining Notification Act (WARN)?
It requires a notice to be delivered 100 days prior to closing a work site.
It requires employers to provide notice of plant closings and mass layoffs.
It does not give time to impacted employees to prepare for the negative impact of a plant closing.
It covers only plant closings and not mass layoffs.
The sale of a business compulsorily requires a WARN notice.
It requires employers to provide notice of plant closings and mass layoffs.
233
hich of the following is true according to the FMLA?
An employee's sibling is an immediate family member.
An employee's children, regardless of age, qualify as an immediate family member.
An immediate family member is a spouse, minor child, parent, or parent in law of the employee.
Eligible employees who work for covered employers can take up to 14 weeks of unpaid leave.
It provides 12 weeks of unpaid leave for birth and care of a newborn child of an employee.
It provides 12 weeks of unpaid leave for birth and care of a newborn child of an employee.
234
Which of the following is true about the USERRA?
It provides restrictions on child labor.
It provides standards for a safe and healthy working environment.
It protects the rights of individuals who leave employment positions to undertake military service.
It provides standards to protect privacy.
It provides reemployment rights following a period of service if the period of service exceeds five years.
It protects the rights of individuals who leave employment positions to undertake military service.
235
An industrial plant accident occurred at a caustic waste reservoir chain. The dam of red mud reservoir broke and the escaping highly toxic and alkaline sludge flooded many settlements. It killed several residents who lived near the dam and caused many injuries. Which of the following would investigate the hazard that occurred in the industry?
The Family and Medical Leave Act
The Worker Adjustment and Retraining Notification Act
The Fair Labor Standards Act
The Occupational Safety and Health Administration
The Uniformed Services Employment and Reemployment Rights Act
The Occupational Safety and Health Administration
236
Which of the following is categorized by the U.S. Citizen and Immigration Services as document abuse?
Improperly requesting that employees present a green card to establish identity and/or employment authorization.
Improperly requesting that employees present a U.S. Passport Card to establish identity and/or employment authorization.
Improperly requesting an employee to present a Permanent Resident Card to establish identity and/or employment authorization.
Improperly requesting that employees present a foreign passport that contains a temporary I-551 stamp.
Improperly requesting an employee to present an Employment Authorization document that contains a photograph.
Improperly requesting that employees present a green card to establish identity and/or employment authorization.
237
```
Do unions adequately serve to equalize
the bargaining power between employers
and their employees?
Yes
No
```
Yes
238
“Unfair labor practices” are illegal actions
taken by management against union activity?
True
False
False
239
```
Do unions adequately serve to equalize
the bargaining power between employers
and their employees?
Yes
No
```
Yes
240
Collective bargaining is the process by which labor and management negotiate and reach agreements on matters of importance to both.
True
False
True
241
The Wagner Act made yellow dog contracts illegal.
True
False
False
242
Governmental employees fall under National Labor Relations Board NLRB's authority.
True
False
False
243
Voluntary bargaining issues are those concerned with wages, hours, and other terms and conditions of employment.
True
False
False
244
The Taft-Hartley Act was enacted in 1947 to amend the Wagner Act.
True
False
True
245
```
Which of the following acts strictly prohibits federal courts from enjoining lawful union activities, including picketing and strikes?
Clayton Act
Norris-LaGuardia Act
Wagner Act
Taft-Hartley Act
Railway Labor Act
```
Norris-LaGuardia Act
246
Which of the following falls under the jurisdiction of the National Labor Relations Board (NLRB)?
Governmental employees
Persons covered by the Railway Labor Act
Independent contractors
Agricultural laborers
Hospitals
Hospitals
247
Turners.Co, hires only those candidates who belong to a labor union. In accordance to the Wagner Act, which of the following unfair labor practices is being violated by the company?
Dominating a labor organization
Discriminating based on union affiliation
Discriminating as a result of NLRB proceedings
Refusing to bargain in good faith
Striking, picketing, or engaging in secondary boycotts
Discriminating based on union affiliation
248
```
Which of the following contracts requires the employer to make it mandatory for its newly hired employees who are not members of the union to join the union as a condition of continued employment?
Closed shop contract
Union shop contract
Yellow-dog contract
Hot-cargo contract
Unified contract
```
Union shop contract
249
Which of the following leads to the violation of the Landrum-Griffin law?
The employer refuses to get involved in a hot-cargo contract with the union.
The employee does not agree with the employer to engage in a secondary boycott.
The employer refuses to pay its employees for work not done.
An uncertified union forces an employer to agree with their demands.
The employees seek to enforce their Wagner Act rights.
An uncertified union forces an employer to agree with their demands.
