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Employment Law Exam Preparation Guide - 3094 Verified Questions

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Employment Law Exam Preparation Guide

Course Introduction

Employment Law examines the legal framework governing the relationship between employers and employees, covering topics such as employment contracts, workplace rights and obligations, discrimination, termination, health and safety, and collective bargaining. Through case studies and real-world scenarios, students gain a comprehensive understanding of federal, state, and local statutes, as well as key judicial decisions that shape the workplace environment. The course emphasizes practical application of legal principles, preparing students to recognize and navigate complex employment issues in various professional settings.

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Business Law Text and Exercises 7th Edition by Roger LeRoy Miller

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Chapter 1: Introduction to the Law and Our Legal System

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Q1) Leona enters into a contract with Munchie Bakery to cater a sales conference.When the conference is postponed indefinitely,Leona asks a court to cancel the contract and return the parties to the positions that they held before its formation.This request involves

A)an equitable remedy.

B)an unenforceable demand.

C)a remedy at law.

D)a type of harm.

Answer: A

Q2) No state has adopted the Uniform Commercial Code in its entirety.

A)True

B)False

Answer: False

Q3) Beth and Celia are involved in an action.The best definition of an action is A)a criminal prosecution,not a civil proceeding.

B)a failure to perform a legal obligation.

C)a judicial proceeding for the resolution of a dispute.

D)a way to raise capital so that a business can grow.

Answer: C

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Page 3

Chapter 2: Ethics in Business

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Q1) Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kennedy strictly complies with existing laws,the firm will

A)fulfill all business ethics obligations.

B)fulfill no business ethics obligations.

C)fulfill some business ethics obligations.

D)not need to fulfill any business ethics obligations.

Answer: C

Q2) EthicsPoint is an organization through which employees can report unethical behavior as long as they are willing to identify themselves.

A)True

B)False

Answer: False

Q3) Any decision by the management of Fast-Food Franchise Corporation may significantly affect its A)operators only.

B)operators,owners,suppliers,the community,or society as a whole. C)owners only.

D)suppliers,the community,or society as a whole only.

Answer: B

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Page 4

Chapter 3: The Courts and Alternative Dispute Resolution

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Q1) Federal courts are superior to state courts.

A)True

B)False

Answer: False

Q2) There are 12 justices on the United States Supreme Court and they all receive life-time appointments.

A)True

B)False

Answer: False

Q3) All states have intermediate appellate courts.

A)True

B)False

Answer: False

Q4) Bill wants the United States Supreme Court to hear his case.Bill must request

A)a record of the case for review.

B)a writ of certiorari.

C)a summons.

D)a summary judgment.

Answer: B

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Chapter 4: Constitutional Law

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Q1) Beachside City enacts an ordinance that bans the distribu?tion of all printed materials on city streets.Carl opposes the city's latest "revenue-enhancing" measure and wants to protest by distributing handbills.In his suit against the city,a court would likely hold the printed-materials ban to be

A)an unconstitutional restriction of speech.

B)constitutional under the First Amendment.

C)justified by the need to protect individual rights.

D)necessary to protect national interests.

Q2) George burns an American flag in his backyard.He films his actions and posts the video on YouTube.com.George's actions are

A)expressly prohibited by the U.S.Constitution.

B)protected by the First Amendment of the U.S.Constitution.

C)considered to be a form of treason.

D)illegal in some states.

Q3) Which of the following does not necessarily make material obscene?

A)The average person finds that it violates contemporary community standards.

B)The work taken as a whole appeals to a prurient interest in sex.

C)The work shows patently offensive sexual conduct.

D)The work shows animals mating.

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Chapter 5: Torts and Cyber Torts

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Q1) Louis-larger and stronger than Mica-threatens to hit Mica before hitting and injuring him.Mica files a suit against Louis for assault and battery.Mica will most likely recover for A)assault and battery.

B)assault but not battery.

C)battery but not assault.

D)neither assault nor battery.

Q2) Roger wants Andy to work late on a project.He tells Andy that the morally correct thing to do is to stay late at the office and work on the project.Andy feels obligated to stay and work late due to the moral pressure from Roger.Andy stays late at the office,even though he does not want to.Andy can sue Roger for A)false imprisonment.

B)battery.

C)defamation.

D)no tort.

Q3) To determine whether a duty of care has been breached,a judge asks how a reasonable person would have acted in the same circumstances.

A)True

B)False

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Chapter 6: Intellectual Property and Internet Law

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Q1) The need to protect intellectual property is recognized in the Declaration of Independence.

A)True

B)False

Q2) Ryan invents a new kind of pen for taking notes in history classes.Which of the following is NOT a necessary step in obtaining a patent for Ryan's invention?

A)Proving that the invention is novel

B)Proving that the invention is marketable

C)Proving that the invention is useful

D)Proving that the invention is not obvious in light of current technology

Q3) The idea for "On Your Mark," a computer game featuring racing cars,is protected by A)copyright law.

B)patent law.

C)trademark law.

D)trade secrets law.

Q4) In cyberspace,trademarks are often called cyber marks.

A)True

B)False

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Chapter 7: Criminal Law and Cyber Crime

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Q1) Changing a trademark is forgery.

A)True

B)False

Q2) Crimes occurring in a business context are popularly referred to as white-collar crime.

A)True

B)False

Q3) Via the Internet,Rocky sabotages the computer system of Quik Chik'n Company,a food manufacturer,with the purpose of altering the levels of ingredients of the company's products so that consumers of the food become ill.Rocky is

A)a cyberterrorist.

B)a network employee.

C)an entrapper.

D)a prosecutor.

Q4) Megan is charged with trespass.Her crime is classified as a A)misdemeanor.

B)felony.

C)tort.

D)civil wrong.

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Chapter 8: Introduction to Contracts

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Q1) A contract is an agreement that can be enforced in court.

A)True

B)False

Q2) "Consideration" refers to the voluntary assent of all of the parties to a contract.

A)True

B)False

Q3) A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it.

A)True

B)False

Q4) Every contract involves at least two parties.

A)True

B)False

Q5) Informal contracts require a special form or method of creation.

A)True

B)False

Q6) If a voidable contract is avoided,the parties to it are released from it.

A)True

B)False

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Chapter 9: Offer and Acceptance

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Q1) Barney offers to sell his Call Marketing Center to Domino for $100,000.Domino replies,"The price is too high.I will offer to buy it for $90,000." Domino has

A)accepted the offer.

B)made a counteroffer without rejecting the offer.

C)rejected the offer and made a counteroffer.

D)rejected the offer without making a counteroffer.

Q2) In a bilateral contract,communication of acceptance is necessary.

A)True

B)False

Q3) Signe offers to sell Thomas her textbook but conditions the sale on Thomas ac?cepting the offer by March 1.Signe may revoke the offer

A)before Thomas accepts the offer.

B)before March 1,whether or not Thomas has accepted the offer.

C)only after Thomas accepts the offer.

D)only after March 1.

Q4) A seller's price list is NOT an offer.

A)True

B)False

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Chapter 10: Consideration

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Q1) In May,Alex agrees to work for Beta Sales Company at $800 per week for a year beginning June 1.The following January,Competitive Merchandising,Inc.,offers Alex the same work at $900 per week.Alex tells Beta about the offer.Beta offers to enter into a new contract with Alex at $875 per week.If Alex agrees,is the new Beta contract enforce?able? Why or why not?

Q2) Refer to Fact Pattern 10-1.Dave's discount is legally sufficient consid?eration

A)because it is a promise of something of value.

B)only if Dave adds a cash rebate.

C)only if Estelle uses it.

D)under no circumstances.

Q3) Refer to Fact Pattern 10-2.A court is most likely to evaluate the adequacy of consid?era?tion if

A)a thing exchanged has no intangible value to one of the parties.

B)something exchanged is not of direct economic or financial value.

C)the items exchanged were of unequal value.

D)there is a gross disparity in the value of the consideration exchanged.

Q4) Rescission is the remaking of a contract so as to enrich one party at the expense of the other.

A)True

B)False

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Chapter 11: Capacity

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Q1) A person who enters into a contract when he or she is intoxicated can void the contract under any circumstances.

A)True

B)False

Q2) If a minor disaffirms a contract,he or she must disaffirm the entire contract.

A)True

B)False

Q3) Contracts formed between parties that lack contractual capacity are usually unenforceable.

A)True

B)False

Q4) A person who enters into a contract when he or she is intoxicated can void the contract if he or she did not comprehend the legal consequences.

A)True

B)False

Q5) The age of majority in most states is eighteen years.

A)True

B)False

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Chapter 12: The Legality of Agreements

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Q1) Best Products,Inc.,hires Cole to develop and implement an e-commerce strategy for marketing Best's products. Cole signs a contract that in?cludes a clause prohibiting him from competing with Best during and af?ter the employment. Before the strategy is implemented,Cole resigns from Best's employ and opens a business to compete with Best. In Best's suit against Cole,to determine whether Cole may compete with Best,what is the most important factor the court should consider?

Q2) Nyoko signs a covenant not to compete with her employer,Midstate Distribu?tion,Inc.The covenant will be enforced if it

A)does not require either party to obtain a business license.

B)is reasonable with respect to geographic area and time.

C)relieves Midstate from liability for any injury to Nyoko due to simple negligence.

D)none of the choices.

Q3) A contract between Kim and Larry to lease residential property contains an ex?cul?patory clause.This clause is

A)enforceable as a matter of public policy.

B)enforceable if either party is in a business important to the pub?lic.

C)enforceable if an event occurs to which the clause applies.

D)generally unenforceable.

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Chapter 13: Mistakes and Other Contract Defects

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Q1) Overestimating the value of an object is a mistake for which a court will NOT normally provide relief.

A)True

B)False

Q2) A false statement by an expert to a naive buyer about a technical detail will usually entitle the buyer to rescind or reform a contract.

A)True

B)False

Q3) Gina induces Hugh to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents its size.When Hugh discovers the truth,he can A)not rescind the contract.

B)rescind the contract on the basis of fraud.

C)rescind the contract on the basis of mistake.

D)rescind the contract on the basis of undue influence.

Q4) A fact is objective and verifiable.

A)True

B)False

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Chapter 14: Written Contracts

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Q1) Chloe files a suit against Digital Associates,Inc.(DAI),to enforce a con?tract.The only written evidence of the contract is a memo on DAI's let?terhead as signed by a DAI officer in its files.The con?tract can be en?forced if the memo includes A)a correct title,such as "Chloe-DAI Contract."

B)all essential terms.

C)a statement of the consideration.

D)the parties' addresses.

Q2) Refer to Fact Pattern 14-1.The writing that Kelly and Lucas signed is a contract that is A)completely integrated.

B)conditionally integrated.

C)agreeably integrated.

D)obviously integrated.

Q3) A contract involving property of any kind must be in writing to be enforceable.

A)True

B)False

Q4) Under the Statute of Frauds,all written contracts are enforceable.

A)True

B)False

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Chapter 15: Third Party Rights

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Q1) Vested is the condition in which rights have taken effect and cannot be taken away.

A)True

B)False

Q2) Wilma owes Jill $5,000.Jill assigns the claim to Andrew.Jill

A)must notify Wilma of the assignment immediately.

B)must notify Wilma of the assignment within thirty days.

C)must notify Wilma of the assignment to make the assignment effective.

D)is not legally required to notify Wilma of the assignment.

Q3) Evan's sale of rights he has under a contract with Federated Retail,Inc.,to buy the retailer's clothing overstock is

A)a delegation.

B)an assignment.

C)a third party beneficiary contract.

D)not a delegation,an assignment,or a third party beneficiary contract.

Q4) An assignment of rights in real estate often cannot be prohibited.

A)True

B)False

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Chapter 16: Contract Discharge and Remedies

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Q1) To rescind a contract,each party essentially advances to the position he or she would have been in if the contract had been fully executed.

A)True

B)False

Q2) Ben and Andrew are parties to a contract.They agree on a novation.The novation does NOT require

A)the existence of a previous,valid obligation.

B)agreement by all the parties to a new contract.

C)performance of the original contract by all of the parties.

D)a new,valid contract.

Q3) Ruth contracts to provide Stan with fifty hours of telepathic personal coaching.The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal.This law will

A)discharge the contract.

B)fulfill the contract.

C)not affect the contract.

D)require immediate performance of the contract.

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Chapter 17: E-Contracts

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Q1) Under the Electronic Signatures in Global and National Commerce Act,a signature may NOT be denied legal effect solely because it is in electronic form.

A)True

B)False

Q2) Order Processing Corporation and Pinpoint Data,Inc.,enter into a con?tract online in a state that has enacted an unmodified version of the UETA.With regard to the E-SIGN Act

A)the E-SIGN Act does not preempt this version of the UETA.

B)the E-SIGN Act preempts this version of the UETA.

C)the "fit" between the acts is an issue for a court to determine. D)the two acts "cancel" each other's application.

Q3) A shrink-wrap agreement is an agreement whose terms are expressed in?side a box in which the goods are packaged.

A)True B)False

Q4) A partnering agreement reduces the likelihood that a dispute will arise under a contract.

A)True B)False

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Chapter 18: Introduction to Sales and Lease Contracts

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Q1) Jamie is redoing his kitchen and decides he needs a floor sander to complete the job.Jamie tells Rachel,his neighbor,that he needs a floor sander.Rachel tells Jamie to call Home Repair Rentals,Inc.Home Repair Rentals leases Jamie a floor sander.In this transaction the lessor is

A)Jamie.

B)Rachel.

C)Home Repair Rentals.

D)both Jamie and Rachel.

Q2) Peter,an agent for Zippy Cars,Inc.,writes a letter to Cassandra on March 1 stating that he will sell her a 2011 Subaru Outback for $20,000 between March 1 and April 30.Peter's letter to Cassandra is

A)a firm offer.

B)an acceptance.

C)a bilateral contract.

D)a breach.

Q3) A lease is NOT exempted from coverage under the UCC.

A)True

B)False

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Chapter 19: Title and Risk of Loss

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Q1) In most situations involving sales,rights and liabilities are determined by who has the title to the goods.

A)True B)False

Q2) A receipt issued by a warehouser for goods stored in a warehouse is a warehouse receipt.

A)True

B)False

Q3) Kip,a representative for Lite-Weight Shipping Company,delivers a bill of lading to Meg,the owner of Capacity Storage Warehouse.A bill of lading is A)an invoice for payment for loading and carting.

B)an order to ship goods by carrier to a certain destination.

C)a receipt for goods signed by a carrier.

D)a receipt issued by a warehouser for goods in a warehouse.

Q4) A bill of lading serves as a con?tract for the transportation of goods.

A)True

B)False

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Chapter 20: Performance and Breach

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Q1) Tender must occur at a reasonable hour and in a reasonable manner.

A)True

B)False

Q2) An installment contract is breached if a buyer accepts any nonconforming goods.

A)True

B)False

Q3) The term cure refers to the right of the buyer to reject,adjust,or replace nonconforming goods.

A)True

B)False

Q4) If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

A)True

B)False

Q5) If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

A)True

B)False

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Chapter 21: Warranties and Product Liability

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Q1) A manufacturer's duty of care does extend to the inspection and test?ing of products bought to incorporate in the final product.

A)True

B)False

Q2) An implied warranty of merchantability does not necessarily arise in every lease by a merchant who deals in goods of the kind leased.

A)True

B)False

Q3) Robert is selling his used lawnmower.He wants to disclaim any implied warranties.Robert

A)cannot disclaim implied warranties.

B)should include a written disclaimer that the lawnmower is being sold as is.

C)should orally disclose all known faults of the lawnmower.

D)should include a written warranty of title.

Q4) Merchants are not required to warrant that the goods they sell are fit for their ordinary purpose.

A)True

B)False

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Chapter 22: Consumer Protection

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Q1) Account numbers on credit-card receipts must be shortened so that merchants,employees,and other with access to the receipts cannot obtain a consumer's name and full credit-card numbers.

A)True

B)False

Q2) Those who lease or arrange to lease consumer goods in the ordinary course of their business are subject to the Truth-in-Lending Act.

A)True

B)False

Q3) The Consumer Product Safety Commission prohibits manufacturers from mar?keting products that are not marked with its "seal of approval."

A)True

B)False

Q4) The Federal Trade Commission is charged with de?termining what consti?tutes a deceptive trade practice.

A)True

B)False

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Chapter 23: The Essentials of Negotiability

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Q1) A negotiable instrument

A)need not be in writing.

B)must be fair to all parties.

C)must state a fixed amount of money.

D)need not be signed by the maker or drawer.

Q2) Mary is buying a house.She issues a promissory note for the unpaid balance on the house that is secured by a mortgage on the house.The promissory note is called a(n)

A)certificate of deposit.

B)cashier's check.

C)installment note.

D)mortgage note.

Q3) On a promissory note,the party that promises to pay is the maker of the note.

A)True

B)False

Q4) Instruments that say nothing about when payment is due are payable on demand. A)True

B)False

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Chapter 24: Transferability and Liability

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Q1) Beth,an accountant for Credits & Debits,acquires a negotiable instru?ment from Ellen by promis?ing to pay its face value in thirty days.Beth ac?quires the status of an HDC when she

A)acquires possession of the negotiable instrument.

B)agrees with Ellen to buy the negotiable instrument.

C)pays the face value due on the instrument.

D)transfers the instrument to another party.

Q2) A person who acquires an instrument knowing that the instrument contains an unauthorized signature can still be afforded HDC protection.

A)True

B)False

Q3) Refer to Fact Pattern 24-1.Suppose that Mona pays Nat on the note.With timely notice to the proper parties,Mona may collect payment on the note from A)Jake,Kim,or Lou.

B)Jake or Kim only.

C)Lou only.

D)no one.

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Chapter 25: Checks and Banking in the Digital Age

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Q1) John writes a check to Kayla as payment for a DVD player but soon discov?ers the player is broken.He goes to the drawee bank and orally author?izes Larry,a bank officer,to stop payment on the check.This order is valid for

A)fourteen days.

B)fourteen months.

C)thirty days.

D)six months.

Q2) Dhani signs a check "pay to the order of Etan" drawn on Dhani's account in First State Bank and dates the check "May 1." Etan presents the check to the bank for payment on December 15.This is

A)a cashier's check.

B)an overdraft.

C)a certified check.

D)a stale check.

Q3) A check is a special type of draft.

A)True

B)False

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Chapter 26: Agency

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Q1) Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf.This power will terminate on

A)any transaction causing a loss to Miklos.

B)Miklos's death or incapacity.

C)Miklos's sixty-fifth birthday.

D)Nathalie's handling of one of each stipulated transaction.

Q2) In a principal-agent relationship,the parties agree that the principal will act on behalf and instead of the agent in negotiating and transacting business with third persons.

A)True

B)False

Q3) Based on Nan's conduct,Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so.In this circumstance,Poppy has

A)apparent authority.

B)express authority.

C)implied authority.

D)no authority.

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Chapter 27: Employment and Immigration Law

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Q1) Café Cuisine Dining,Inc.,employs one hundred workers at three loca?tions in two states.Under federal law,Café Cuisine must pro?vide its employees,during any twelve-month period,family or medi?cal leave of up to A)twelve days.

B)twelve weeks.

C)twelve months.

D)twelve years.

Q2) Socrates Software Corporation wants to hire Tomas,a noncitizen.To hire Tomas,Socrates must petition

A)the U.S.Department of Labor.

B)the U.S.Department of State.

C)Immigration and Customs Enforcement.

D)the National Labor Relations Board.

Q3) Employees who receive tips on the job have a lower minimum wage than employees who do not receive tips.

A)True

B)False

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Chapter 28: Discrimination and Labor Law

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Q1) With a couple of new ideas regarding software design,Carol and Ray start a partnership that,with business success,becomes Pacific Applications Company.The company grows to include a staff of twenty-one employees.Over time,Pacific develops a new computer operating sys?tem.The firm signs licensing contracts with several computer manu?fac?turers,but needs to double the number of its employees to fulfill those con?tracts.Is Pacific subject to federal antidiscrimination laws? If so,what should it consider in hiring new employees?

Q2) Lack of discriminatory intent is a complete defense to a charge of unlawful employment discrimination.

A)True

B)False

Q3) Refer to Fact Pattern 28-1.Manny believes that he has been discriminated against on the basis of his age.For the Age Dis?crimination in Employment Act of 1967 to apply

A)all parties must be forty years of age or younger.

B)Lita must be forty years of age or older.

C)Manny must be forty years of age or older.

D)NBC must have been in existence for at least forty years.

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Chapter 29: Sole Proprietorships,partnerships, Limited

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Q1) For federal income tax purposes,a partnership is NOT a tax-paying entity.

A)True

B)False

Q2) Robert owns Textbooks Plus,a sole proprietorship that sells textbooks.When Robert dies,Textbooks Plus will

A)be automatically dissolved.

B)pass directly to his oldest child.

C)pass directly to the state.

D)be evenly divided among all Robert's heirs.

Q3) Edgar,Jon and Phoebe do business as Reliable Movers.Phoebe develops a debilitating illness and can no longer work.Phoebe

A)may dissociate from the partnership.

B)may not dissociate from the partnership without Edgar and Jon's consent.

C)must pay damages to Edgar and Jon for the loss of her work.

D)may terminate the partnership.

Q4) In winding up a general partnership,creditors are paid before partners receive their capital contributions.

A)True

B)False

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Chapter 30: Formation and Termination of a Corporation

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Q1) Any person who buys preferred stock has priority over a holder of common stock to payment on the corporation's dissolution.

A)True

B)False

Q2) A sale of all of a corporation's assets requires the approval of its shareholders.

A)True

B)False

Q3) A corporate director is an "owner" of the corporation.

A)True

B)False

Q4) Smalltown,Alabama is incorporated by the government.Smalltown is

A)a foreign corporation.

B)a public corporation.

C)a private corporation.

D)an alien corporation.

Q5) A partnership cannot be a shareholder in an S corporation.

A)True

B)False

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Chapter 31: Management and Ownership of a Corporation

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Q1) A director is a fiduciary of a corporation.

A)True

B)False

Q2) After the first board,the directors are chosen by the corporate officers.

A)True

B)False

Q3) The board of directors of Integral Components Corporation consists of Frida,Gayla,and Hart.A quorum is the minimum number of these directors

A)who must be at odds in a dispute to call for its resolution.

B)who must be present to validly transact business.

C)that the shareholders may remove from office at any one time.

D)whose positions must be vacant to warrant an election.

Q4) If the corporate directors fail to sue in the corporate name to redress a wrong suffered by the corporation,then the shareholders can do nothing.

A)True B)False

Q5) Corporate directors and officers are insurers of business success.

A)True

B)False

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Chapter 32: Secured Transactions

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Q1) A financing statement must include the creditor's signature.

A)True

B)False

Q2) City Bank's financing statement in collateral owned by Delta Waters Corporation will expire in less than a year.Filed timely,a continuation statement could extend the effectiveness of the financing statement for A)one year.

B)two years.

C)five years.

D)ten years.

Q3) A buyer in the ordinary course of business cannot know about the existence of a perfected security interest.

A)True

B)False

Q4) To create an enforceable security interest,the secured party must give value. A)True B)False

Q5) A financing statement is effective for five years from the date of filing. A)True

B)False

34

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Chapter 33: Creditors Rights and Remedies

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Q1) A surety is secondarily liable on an obliga?tion.

A)True

B)False

Q2) Liquidated debts are debts that are indefinite,or not fixed,in amount.

A)True

B)False

Q3) Ross and Sally agree to guarantee Tim's debt.Ross's maximum liabil?ity is $30,000,and Sally's is $20,000.Tim owes $20,000 and is in default.Ross pays the creditor the entire amount.In the ab?sence of an agree?ment to the contrary,Ross can recover from Sally

A)$8,000.

B)$10,000.

C)$20,000.

D)nothing.

Q4) A mechanic's lien is possessory.

A)True

B)False

Q5) A creditor can demand payment from the surety BEFORE the debt is due.

A)True

B)False

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Chapter 34: Bankruptcy

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Q1) Before filing for bankruptcy,a consumer-debtor must receive credit counseling.

A)True

B)False

Q2) A Chapter 13 plan can be initiated only by the filing of a voluntary petition.

A)True

B)False

Q3) Kofi files a petition for bankruptcy.Kofi must include with the petition

A)a plan to turn over his future income to the trustee.

B)a certificate proving attendance at a credit-counseling briefing.

C)a provision of adequate means for the petition's execution. d a statement of preference for one creditor over another.

Q4) Concealing assets from a bankruptcy court is a crime.

A)True

B)False

Q5) Bankruptcy law is state law.

A)True

B)False

Q6) A trustee does NOT have the power to avoid preferences.

A)True

B)False

Page 36

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Chapter 35: Insurance

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Q1) Insurance policies are governed by the principles of common law.

A)True

B)False

Q2) Life insurance and title insurance apply to different types of risks.

A)True

B)False

Q3) The insured can only cancel a policy in certain circumstances.

A)True

B)False

Q4) Land Sales Company insures its real and personal property,as well as the lives of its key employees,to protect its financial interest should some event undermine its security.This is A)risk management.

B)risk pooling.

C)risky.

D)risqué.

Q5) A business firm may have an insurable interest in the life of a key employee. A)True B)False

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Chapter 36: Morgages and Foreclosures

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Q1) Wilson has an adjustable-rate mortgage.The rate of interest Wilson pays A)cannot change.

B)will change periodically.

C)is determined by the Federal Reserve.

D)will decrease over time.

Q2) All states allow power of sale foreclosures.

A)True

B)False

Q3) Jeannie has a mortgage that allows her to pay only the interest portion of the monthly payments for three years.After three years,Jeannie will have to make payments on both the principal and the interest.Jeannie's mortgage is A)a balloon mortgage.

B)an interest-only mortgage.

C)a subprime mortgage.

D)a fixed-rate mortgage.

Q4) Geoffrey does not qualify for a standard mortgage.He can apply for A)a balloon mortgage.

B)an interest-only mortgage.

C)a subprime mortgage.

D)a construction loan.

38

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Chapter 37: Personal Property and Bailments

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Q1) Confusion of fungible goods results in the owners' loss of their rights in the property.

A)True

B)False

Q2) Airline passengers are subjects of a bailment.

A)True

B)False

Q3) Frenchy's Fast Fries (3F) requires that its employees wear uniforms and protective clothing while on the job.3F provides a locker room for the employees to leave their street clothes and personal items while working.Grant,a 3F employee,changes his clothes in the locker room before starting work and leaves his wallet and watch in a pocket of his jacket hanging in his locker.Does Grant's leaving personal items in the locker room constitute a bailment? If not,what legal relationship is it? For whose benefit are the lockers provided and used?

Q4) One cannot acquire ownership by possession by "capturing" a wild animal.

A)True

B)False

Q5) Killing a wild animal amounts to assuming ownership of it.

A)True

B)False

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Chapter 38: Real Property

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Questions

Q1) Chita owns the land on which Downwind Farm is situated,plus the farmhouse,barn,and other structures permanently attached to the land.Chita's brother Elvin owns everything else on the farm-implements,seed,and so on.The real property is owned by

A)Chita and Elvin.

B)Chita only.

C)Downwind Farm.

D)Elvin only.

Q2) The sale of crops separate from the land is governed by real property law.

A)True

B)False

Q3) A statue that is not physically attached to the land can be a fixture.

A)True

B)False

Q4) Surface and subsurface rights cannot be separated.

A)True

B)False

Q5) A life tenant is NOT required to pay property taxes.

A)True

B)False

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Chapter 39: Landlord and Tenant

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Q1) A fixed-term tenancy does not terminate.

A)True

B)False

Q2) In every leasehold estate,the tenant has an unqualified right to exclusive possession. A)True

B)False

Q3) A lease is a contract by which the owner grants someone else an exclusive right to use and possess the land,usually for a specified period of time in return for some sort of payment.

A)True

B)False

Q4) Gary has two houses.He allows his friend David to live in one of them without paying rent.David dies.David's tenancy

A)passes to his heirs indefinitely.

B)passes to his heirs for one year.

C)passes to his heirs for five years.

D)is terminated.

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Chapter 40: Wills and Trusts

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Q1) Adam has two children,Bob (the eldest) and Carol,both of whom prede?cease Adam.Bob is survived by a daughter,Dina,and Carol by two sons,Ed and Fred.On Adam's death,if the estate is distributed per stirpes

A)Dina will receive the entire estate.

B)Dina will receive one-half of the estate,and Ed and Fred will each receive one-fourth.

C)each grandchild will receive one-third of the estate.

D)the grandchildren will not receive anything.

Q2) Ross makes out a will in which Steve is appointed to administer the will. After Ross dies,Steve cannot administer the will,and a court appoints Terry to handle the probate of Ross's estate. In this situation,the execu?tor is

A)Ross.

B)Steve.

C)Terry.

D)the court.

Q3) A holographic will is a will that is completely in the handwriting of a testator.

A)True

B)False

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Page 42

Chapter 41: Administrative Law

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Q1) Most meetings of a federal agency must be open to public observation.

A)True

B)False

Q2) The Food and Drug Administration (FDA) is an executive agency.As an executive agency,the FDA

A)is not subject to any higher authority.

B)is subject to the authority of the president.

C)is subject to the authority of state legislatures.

D)is subject to the authority of the Attorney General

Q3) The Freedom of Information Act of 1966 requires the federal government to disclose certain records only if the person requesting the records can give a reasonable reason for the request.

A)True

B)False

Q4) The Food and Drug Administration (FDA) is a federal agency.The regulations that the FDA issues are part of the body of

A)administrative law.

B)common law.

C)trade law.

D)international law.

Page 43

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Chapter 42: Antitrust Law

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Q1) Java Bean Company imports coffee beans and sells them under two-year contracts to Mellow Roast,Inc.,and other coffeemakers.The contracts require that during the two-year term a coffeemaker not buy beans from Java Bean's competitors.The contracts do not limit the coffeemakers' purchase of tea or other beverage ingredients from other suppliers,how?ever.In the second year of the contract,Mellow Roast protests that this arrangement violates antitrust law.Is Mellow Roast correct? If not,why not? If so,under which antitrust statute,or statutes,could these con?tracts be held illegal?

Q2) Big U.S.Oil Company joins with a foreign cartel to control the price of oil.If the cartel has a substantial effect on U.S.commerce

A)both Big U.S.Oil and the foreign cartel can be sued for violation of U.S.antitrust laws.

B)neither Big U.S.Oil nor the foreign cartel can be sued for violation of U.S.antitrust laws.

C)only Big U.S.Oil can be sued for violation of U.S.antitrust laws.

D)only the foreign cartel can be sued for violation of U.S.antitrust laws

Q3) Territorial and consumer restrictions are per se violations.

A)True

B)False

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Chapter 43: International Law

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Q1) The primary goal of the North American Free Trade Agreement is to eliminate tariffs among the United States,Canada,and Mexico.

A)True

B)False

Q2) According to the Foreign Sovereign Immunities Act,a foreign state that has committed a tort in the United States is protected from the jurisdiction of the U.S.courts.

A)True

B)False

Q3) Sudan seizes the assets of Triage Medical,Inc.,a U.S.firm.Triage's recovery from Sudan in a U.S.court may be prevented by

A)the act of state doctrine.

B)the doctrine of sovereign immunity.

C)the Foreign Corrupt Practices Act.

D)the principle of comity.

Q4) The chief aim of the World Trade Organization and other trade agreements is to maximize trade barriers among their members.

A)True

B)False

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