Entrepreneurship Law
Midterm Exam
Course Introduction
Entrepreneurship Law explores the legal principles and regulatory frameworks that impact the formation, financing, and growth of new business ventures. The course covers foundational topics such as entity selection, intellectual property protection, contracts, employment law, raising capital, and compliance with local, state, and federal regulations. Students learn how to navigate legal challenges commonly faced by startups, understand the rights and obligations of founders, employees, and investors, and develop practical skills for managing legal risks in entrepreneurial activities. Through case studies and real-world examples, the course prepares students to make informed legal decisions essential to successful entrepreneurship.
Recommended Textbook
The Legal Environment of Business 13th Edition by Roger E. Meiners
Available Study Resources on Quizplus
22 Chapters
9532 Verified Questions
9532 Flashcards
Source URL: https://quizplus.com/study-set/1270 Page 2
Chapter 1: Todays Business Environment: Law and Ethics
Available Study Resources on Quizplus for this Chatper
327 Verified Questions
327 Flashcards
Source URL: https://quizplus.com/quiz/25051
Sample Questions
Q1) In Davis v. Baugh Industrial Contractors, the traditional common law rule prevented a party who accepted a completed construction project from later suing the contractor for flaws in construction that caused injury to others. In reviewing such a case, the Washington state high court held that the rule was not sensible in modern times and would be dropped. This is an example of how:
A) modern day values are changing
B) common law can adapt to changing circumstances
C) common law never changes
D) courts can never go against a precedent set in previous cases
E) none of the other choices
Answer: B
Q2) To resolve disputes between citizens or between citizens and government, which is the most important institution that has evolved?
A) the penitentiary system
B) the diplomatic corps
C) the court system
D) the military
E) all of the other choices
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: The Court Systems
Available Study Resources on Quizplus for this Chatper
431 Verified Questions
431 Flashcards
Source URL: https://quizplus.com/quiz/25052
Sample Questions
Q1) Service of process is usually achieved by:
A) impersonal service
B) personal service
C) legal service
D) dramatic service
E) court service
Answer: B
Q2) To get a case into federal court which involves parties from different states, the claim must involve more than $5,000.
A)True
B)False
Answer: False
Q3) A summons can be delivered to the defendant by:
A) the plaintiff
B) the plaintiff's attorney
C) a private process server
D) a U.S. marshal
E) all of the other choices are be correct
Answer: E
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Trials and Resolving Disputes
Available Study Resources on Quizplus for this Chatper
509 Verified Questions
509 Flashcards
Source URL: https://quizplus.com/quiz/25053
Sample Questions
Q1) If a court does not have jurisdiction over the person of a defendant, the defendant may move to have the plaintiff's case dismissed.
A)True
B)False
Answer: True
Q2) In Barabin v. AstenJohnson, where Barabin sued for injury from asbestos, the appeals court held that because the expert witness for Barabin was not reliable, Barabin had to pay AstenJohnson's legal fees from the trial.
A)True
B)False
Answer: False
Q3) When a case is taken to an appellate court, the attorneys for the parties must present both written briefs and oral arguments.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: The Constitution: Focus on Application to Business
Available Study Resources on Quizplus for this Chatper
445 Verified Questions
445 Flashcards
Source URL: https://quizplus.com/quiz/25054
Sample Questions
Q1) In Virginia State Board of Pharmacy v. Virginia Citizens Consumer Council concerning a Virginia law prohibiting the advertising of prices of prescription drugs the Supreme Court held that:
A) people need open channels of communication to be well informed
B) people need to be protected from their own ignorance
C) people need to be protected from false advertising
D) people need to know the laws of advertising
E) none of the other choices are correct
Q2) The Eighth Amendment concerns cruel and unusual punishment and excessive fines.
A)True
B)False
Q3) The most important part of the Constitution with respect to businesses is:
A) the commerce clause
B) the business clause
C) the trade clause
D) the mercantile clause
E) the money clause
Q4) The equal protection clause is part of the Bill of Rights.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Criminal Law and Business
Available Study Resources on Quizplus for this Chatper
321 Verified Questions
321 Flashcards
Source URL: https://quizplus.com/quiz/25055
Sample Questions
Q1) A serious crime is a:
A) felony
B) misdemeanor
C) stare decisis
D) tort
E) bankruptcy
Q2) What are called "victimless crimes" are actually not crimes at law.
A)True
B)False
Q3) The Sherman Act and Clayton Act (2004) allow prison terms to be imposed on:
A) those involved in burglaries
B) those involved in anticompetitive practices
C) those involved in blue collar crime
D) those involved in drug trafficking
E) none of the other choices are correct
Q4) It is believed that almost all crimes against persons are reported to the police.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Elements of Torts
Available Study Resources on Quizplus for this Chatper
465 Verified Questions
465 Flashcards
Source URL: https://quizplus.com/quiz/25056
Sample Questions
Q1) Joe finds Mary alone in the copy room at work. He closes the door, says "I know you really want me baby," and pins her against the wall, forcing her to be very close to him for 10 minutes while he tells her how much he wants her. She keeps telling him to get away. There:
A) is no tort here; the required elements did not occur
B) is no tort here because Mary was not injured and she could have ducked under his arms and gotten away easily
C) is no tort here because, even though Joe is a jerk in Mary's eyes, he was only kidding and there was no damage
D) is no tort here because Mary should know that Joe is not really dangerous, just a jerk
E) none of the other choices
Q2) The intentional tort of assault requires that:
A) there be physical contact with the body
B) the injured party suffer a "noticeable" physical injury
C) the injured party be detained against his or her will
D) the defendant intended to injure the plaintiff
E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above.
Page 8
Chapter 7: Business Torts and Product Liability
Available Study Resources on Quizplus for this Chatper
361 Verified Questions
361 Flashcards
Source URL: https://quizplus.com/quiz/25057
Sample Questions
Q1) In Old Island Fumigation v. Barbee, a fumigation company sprayed two condominiums. Some of the fumes leaked, without Old Island's knowledge, into a third, unprotected condominium. In this case:
A) Old Island was strictly liable for the harms caused in the third condominium
B) the condo owners were strictly liable for their harms
C) the condo owners were contributorily negligent
D) the condo owners were comparatively negligent
E) the condo owners assumed the risk; Old Island was not liable
Q2) In a intentional misrepresentation suit, the facts alleged to have been presented falsely:
A) must be material
B) need not be material
C) must not be material
D) must be unrelated
E) need not be related to the injury
Q3) Producers who do not know of that their products are potentially dangerous, because such dangers are not revealed until after years of use, are not liable for damages.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Real and Personal Property
Available Study Resources on Quizplus for this Chatper
287 Verified Questions
287 Flashcards
Source URL: https://quizplus.com/quiz/25058
Sample Questions
Q1) Chattel is the traditional term for:
A) personal property
B) real property
C) false property
D) livestock
E) patents
Q2) The tort defined as the intentional and wrongful interference with possession of personal property of another without consent is:
A) battery to property
B) nuisance
C) trespass to personal property
D) conversion
E) none of the other choices
Q3) Commercial leases, compared to residential leases, tend to:
A) be much longer
B) be more controlled by state statute
C) require the landlord to provide most interior furnishings
D) be more likely to be of short duration
E) all of the other choices
To view all questions and flashcards with answers, click on the resource link above.
Page 10
Chapter 9: Intellectual Property
Available Study Resources on Quizplus for this Chatper
407 Verified Questions
407 Flashcards
Source URL: https://quizplus.com/quiz/25059
Sample Questions
Q1) Which of the following is part of a notice of copyright:
A) the official name of the work
B) proof of originality
C) the circle-C (©)
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q2) In Bowman v. Monsanto, where Bowman used Monsanto's patented Roundup Ready seeds and, in violation of the contract provided by Monsanto, kept seeds from his crop to use next year so that the seeds had the genetic composition of the Monsanto seeds. The Supreme Court held that:
A) Monsanto's patent failed for obviousness, so there was no fringement
B) Monsanto's patent failed because it was prior art, so there was no infringement
C) there was no infringement because the seeds were in the public domain
D) none of the other choices
Q3) If artists at Disney draw cartoons as part of their work, the copyright on that work is good for 95 years.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
11
Chapter 10: Contracts
Available Study Resources on Quizplus for this Chatper
584 Verified Questions
584 Flashcards
Source URL: https://quizplus.com/quiz/25060
Sample Questions
Q1) An offer that has unclear major terms, or is missing important terms:
A) can be the basis for an implicit, but not express, contract
B) can be the basis for an express, but not implicit, contract
C) cannot be the basis for a contract
D) makes the offeror liable if not executed properly
E) makes the offeree liable if not executed properly
Q2) A contract is a(n) ____ if it arises from the actions rather than the expressions of the parties.
A) explicit contract
B) real contract
C) express contract.
D) real contract.
E) none of the other choices are correct
Q3) The Statute of Frauds holds that if you are going to paint my house two years from today, the contract should be in writing.
A)True
B)False
Q4) A contract formed under conditions of fraud is voidable.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Domestic and International Sales
Available Study Resources on Quizplus for this Chatper
424 Verified Questions
424 Flashcards
Source URL: https://quizplus.com/quiz/25061
Sample Questions
Q1) Like the common law, the UCC provides that the parties must exchange new consideration to modify an existing sales contract.
A)True
B)False
Q2) If a country has adopted the United Nations' Convention on the Recognition and Enforcement of Foreign Arbitrable Awards then:
A) damage awards from cases tried in its courts cannot exceed $10,000
B) its courts are not bound to recognize and enforce arbitration decisions that have followed proper procedure
C) its courts are unlikely to recognize and enforce arbitration decisions
D) its courts will charge a nominal fee to hear cases
E) none of the other choices are correct
Q3) ____ means that the good "must be of a quality comparable to that generally acceptable in that line or trade."
A) Warrantable
B) Profitable
C) Acceptable
D) Marketable
E) none of the other choices are correct
To view all questions and flashcards with answers, click on the resource link above.
Page 13
Chapter 12: Business Organizations
Available Study Resources on Quizplus for this Chatper
459 Verified Questions
459 Flashcards
Source URL: https://quizplus.com/quiz/25062
Sample Questions
Q1) Which of the following statement(s) is (are) true?
A) a partnership may consist entirely of limited partners
B) a limited partner may exercise control over the business in proportion to his interest in it
C) a limited partnership must have at least one general partner
D) all of the other specific choices are true
E) none of the other choices
Q2) Professional corporations are now allowed:
A) in all states
B) in about half the states
C) in some states
D) in a few of the more business friendly states
E) none of the other choices are correct
Q3) It may be difficult to sell a partnership share in a partnership because determining the market value of the share may be difficult.
A)True
B)False
Q4) Franchise operators usually pay a franchise fee to buy the franchise.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Negotiable Instruments, Credit, and Bankruptcy
Available Study Resources on Quizplus for this Chatper
535 Verified Questions
535 Flashcards
Source URL: https://quizplus.com/quiz/25063
Sample Questions
Q1) Chapter 11 bankruptcies, which are filed by businesses:
A) force the sale of all business assets
B) wipe the slate clean of debts for a business and allow it to continue operating
C) make the business property of the state until liquidated
D) prohibits the firm from starting any new operations, and it must wind up all old business
E) none of the other choices
Q2) Voluntary Chapter 13 bankruptcies:
A) apply to corporations only
B) apply to businesses with debt of more than $1 million
C) permit business to reorganize while paying debt
D) apply to individuals only
E) apply only to corporations with debts of more than $1 million
Q3) In an involuntary bankruptcy, the trustee files the petition for bankruptcy.
A)True
B)False
Q4) Negotiable instruments payable "to bearer" are considered the safest form.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Agency and the Employment Relationship
Available Study Resources on Quizplus for this Chatper
416 Verified Questions
416 Flashcards
Source URL: https://quizplus.com/quiz/25064
Sample Questions
Q1) In the European Union the regulation governing which country's laws apply to an employment law contract involving multiple nationalities is known as:
A) Greece 1
B) Rome 1
C) European Union 1
D) European Employment Law Regulation
E) none of the other choices are correct
Q2) If an agent commits a tort outside the agent's scope of employment, the agent is liable to the third party for damages incurred.
A)True
B)False
Q3) A person authorized to execute all regular transactions connected with a business is called a:
A) universal agent
B) special agent
C) gratuitous agent
D) subagent
E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Employment and Labor Regulations
Available Study Resources on Quizplus for this Chatper
539 Verified Questions
539 Flashcards
Source URL: https://quizplus.com/quiz/25065
Sample Questions
Q1) Which of the following was concentrated on by early job-safety legislation:
A) accidents
B) injuries
C) deaths
D) a, b and c were all concentrated on by early job-safety legislation
E) none of the other specific choices are correct
Q2) During a union campaign employers may not do which of the following:
A) promise a pay raise if the workers defeat the union
B) argue about the real problems the company sees with unionization
C) discuss the implications of actions proposed by the potential union
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q3) The main concern of the National Labor Relations Board is with:
A) employers assisting labor organization
B) employers that form unions for their employees
C) the substance contained in collective bargaining agreements
D) all of the other specific choices are major concerns
E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Employment Discrimination
Available Study Resources on Quizplus for this Chatper
466 Verified Questions
466 Flashcards
Source URL: https://quizplus.com/quiz/25066
Sample Questions
Q1) Lucy is the only woman in the police department. Some co-workers make insulting comments about her looks; they display pornographic materials in the offices; and harass her while she is working. After putting up with this for a year, Lucy quit in disgust. She may sue under Title VII based on:
A) constructive discharge
B) remedial standards
C) bona fide occupational qualification
D) disparate impact
E) remedial standards and disparate impact
Q2) Individual states and cities:
A) may not have civil rights acts that apply to employers exempt from Title VII
B) may have civil rights acts that protect additional classes of employees not covered by Title VII
C) may not have civil rights acts that protect additional classes of employees not covered by Title VII
D) may exempt employers from any Title VII regulation
E) none of the other choices are correct
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: The Regulatory Process
Available Study Resources on Quizplus for this Chatper
349 Verified Questions
349 Flashcards
Source URL: https://quizplus.com/quiz/25067
Sample Questions
Q1) The primary source(s) of administrative law include(s):
A) the Legislative Delegation Act
B) the Administrative Procedures Act
C) court decisions reviewing agency decisions
D) the Administrative Procedures Act and court decisions reviewing agency decisions
E) the Administrative Procedures Act and court decisions reviewing agency decisions and the Legislative Delegation Act
Q2) Informal agency procedure may include testing and inspections as well as the processing of permits.
A)True
B)False
Q3) Decisions of Administrative Law Judges may be appealed directly to the Supreme Court.
A)True
B)False
Q4) Over 50 federal regulatory agencies issue tens of thousands of pages of regulations per year.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: Securities Regulation
Available Study Resources on Quizplus for this Chatper
449 Verified Questions
449 Flashcards
Source URL: https://quizplus.com/quiz/25068
Sample Questions
Q1) In order to meet the requirements of the Howey test, an investor must not have direct control over the work that makes the investment a success or failure.
A)True
B)False
Q2) Accredited investors often buy private placement securities through Small Corporate Offering Registration (SCORs), which can be as small as a $1 million offering.
A)True
B)False
Q3) What is not an element in the Supreme Court's SEC v. Howey definition of securities:
A) an investment of money
B) in a common enterprise
C) where profits are earned
D) enterprise is managed by others
E) all of the other choices are part of the definition
Q4) Securities fraud can arise from misleading information reports for the SEC. A)True B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 19: Consumer Protection
Available Study Resources on Quizplus for this Chatper
483 Verified Questions
483 Flashcards
Source URL: https://quizplus.com/quiz/25069
Sample Questions
Q1) Under the Truth-in-Lending Act, if a creditor violates disclosure requirements, liability will be imposed only if monetary damages to the consumer can be shown.
A)True
B)False
Q2) Under the Fair Credit Billing Act, if consumers notify the card company immediately of a stolen or lost credit card, their liability for unauthorized losses is $500.
A)True
B)False
Q3) According to the FTC, which of the following things would indicate a unfair act or practice:
A) the act or practice causes substantial harm to consumers
B) consumers cannot reasonably avoid injury
C) the injury from the act or practice is harmful in its net effects
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q4) The FDA issues standards for nutrition labels on food.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 20: Antitrust Law
Available Study Resources on Quizplus for this Chatper
439 Verified Questions
439 Flashcards
Source URL: https://quizplus.com/quiz/25070
Sample Questions
Q1) Some activities of nonprofit groups and agricultural cooperatives are exempt from the antitrust laws.
A)True
B)False
Q2) The wholesaler of Soap Opera Review is found guilty of monopolistic practices that caused the price of the magazine to be $1 higher than it should have been. Under the Sherman Act, the plaintiff may sue for:
A) for treble damages plus court costs and attorney fees
B) for $1 worth of damages, trebled to $3
C) for a criminal felony only
D) for specific performance only
E) for nominal damages only
Q3) Horizontal market division allows competing firms to:
A) be more efficient
B) exercise monopoly power within a region
C) hire fewer workers
D) give better worker benefits
E) diversify into more markets
To view all questions and flashcards with answers, click on the resource link above.
22
Chapter 21: Environmental Law
Available Study Resources on Quizplus for this Chatper
498 Verified Questions
498 Flashcards
Source URL: https://quizplus.com/quiz/25071
Sample Questions
Q1) If a state designates a body of water for recreation:
A) treated water dumped into the lake must be clean enough to drink
B) only substance known to cause cancer must be removed before water is dumped in C) treated water dumped into the lake must be clean enough not to harm boat engines
D) water need not be treated before being dumped in
E) none of the other choices are correct
Q2) Hazardous wastes are placed into water or land at:
A) storage facilities
B) transformation facilities
C) treatment facilities
D) neutralizing facilities
E) none of the other choices are correct
Q3) The 1990 Clean Air Act required the EPA to develop regulatory standards for about 191 toxic air pollutants.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
23
Chapter 22: The International Legal Environment of Business
Available Study Resources on Quizplus for this Chatper
338 Verified Questions
338 Flashcards
Source URL: https://quizplus.com/quiz/25072
Sample Questions
Q1) Willfully violating the Export Administration Act could result in:
A) up to 50 years in prison
B) up to 20 years in prison
C) a lifetime prison sentence
D) deportation
E) loss of citizenship
Q2) Which of the following countries is not a member of the North American Free Trade Agreement:
A) Canada
B) Brazil
C) Mexico
D) U.S.
E) all of the other choices are members
Q3) The Department of Commerce maintains a Restricted Export Security List (RESL) that states what goods are restricted in sales to other nations.
A)True
B)False
Q4) Denmark is rated the least corrupt nation in the world.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 24