Introduction to Business Law Exam Review
Course Introduction
Introduction to Business Law offers students a foundational understanding of the legal principles that govern business activities. The course covers key topics such as the structure of the legal system, contract law, torts, agency relationships, employment law, and the regulation of business organizations. Through case studies and practical examples, students learn how laws protect both businesses and consumers, the ethical implications of business decisions, and how legal issues impact everyday business operations. This course equips students with the essential legal knowledge necessary to navigate the business environment and make informed, responsible business decisions.
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) A major advantages of the use of precedent in law for businesses is that they will:
A) be able to get judges to resolve cases in favor of large businesses
B) be able to avoid harsh punishments from the use of ineffective attorneys
C) be unable to plan for future contingencies
D) be unable to enforce contracts
E) have reasonable expectations about the enforcement of agreements
Answer: E
Q2) The shift from laws of the past that required discrimination based on race to laws of today that prohibit discrimination based on race show how:
A) the legal system can bring about changes in "acceptable" behavior
B) the legal system does not change with time
C) the legal system is subject to the whims of Supreme Court Judges
D) the legal system is subject to the will of the general public
E) none of the other choices
Answer: A
Q3) The U.S. Constitution is the source of all law in the U.S.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 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) A person is notified that a lawsuit has been filed against them by a:
A) default judgment
B) summons
C) venue
D) quasi in rem
E) none of the other choices are correct
Answer: B
Q2) In rem jurisdiction would not be likely to include jurisdiction over:
A) intangible property (such as a bank account)
B) tangible (real) property (such as land)
C) personal property (such as an automobile)
D) jurisdiction in a child custody dispute of parents living in different states
E) any of the other choices could be correct
Answer: D
Q3) A suit involving a dispute for $1 million over a contract signed in California, for business to be done in California, under California law, with parties from two different states could only be tried in California courts.
A)True
B)False
Answer: False
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) Suppose, before the start of a trial, the judge believes the case should be settled by the parties, rather than go to trial. The judge may:
A) order the parties to settle the case
B) order the parties to appear at a pretrial settlement hearing
C) request the parties to come to a pretrial settlement hearing
D) request the defendant come to a pretrial settlement hearing
E) not have a pretrial settlement hearing unless requested by both parties
Answer: B
Q2) The Constitution guarantees a right to a jury trial in criminal cases.
A)True
B)False
Answer: True
Q3) In the British Legal System judges tend to play a much more passive role; one reason for wearing a wig is to help make them seem even more remote to a jury and not influence proceedings.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
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) If the federal government creates regulations over certain business practices, states may not imitate those regulations if state rules, like the federal rules, will limit interstate commerce.
A)True
B)False
Q2) The first ten amendments to the Constitution are the Bill of Rights.
A)True
B)False
Q3) As required by Article III of the Constitution, the Supreme Court has the primary role in amending the Constitution.
A)True
B)False
Q4) In Skinner v. Railway Labor Executives Assn, the Supreme Court held that all mandatory breath, urine, and blood tests are unconstitutional warrantless searches. A)True
B)False
Q5) The Sixth Amendment holds that there is a right to jury trial in criminal cases. 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) In Bridge v. Phoenix Bond, where Phoenix Bond sued Bridge for filing false documents related to tax lien purchases, the Supreme Court held that:
A) RICO's text provides no basis for imposing a first-party reliance requirement
B) RICO's text provides a basis for imposing a first-party reliance requirement
C) RICO is unconstitutional
D) RICO does not apply under these circumstances
E) none of the other choices are correct
Q2) Securities fraud includes:
A) market rigging
B) theft of accounts from clients of securities firms
C) violations of securities laws
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q3) Falsifying information about a bankruptcy can result in criminal prosecution.
A)True
B)False
Q4) Mail fraud is usually the theft of postal services.
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) Assume that Karen walks up to you and slaps you in the face. You slap her back. She sues you for battery. In this case, you:
A) have a defense of privilege
B) have a defense of self-defense
C) have a defense of consent
D) have a defense of assault
E) are guilty; pay up
Q2) The only defense to battery is privilege.
A)True
B)False
Q3) Truth is an important defense in a defamation suit because:
A) in some states truth is a complete defense regardless of the purpose or intent in publishing the statement
B) in some states truth is a complete defense if the intent in publishing the statement was not to harm
C) if the statement was true, the damage award amount is limited
D) if the statement was true, the defendant will not have to pay any damage awards E) none of the other choices
To view all questions and flashcards with answers, click on the resource link above.
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 which of the following cases discussed in the text was the manufacturer held liable based on failure to warn:
A) a gun manufacturer whose guns jammed, causing them to misfire
B) a diet food producer that failed to provide adequate warnings about using the adult diet food as baby food
C) a trampoline manufacturer that failed to put its warnings in French
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q2) The case that led in adopting a general rule imposing strict liability in tort was:
A) Morriss v. Akers
B) Greenman v. Yuba Power
C) MacPherson v. Buick Motor Company
D) MDM Group Associates v. CX Reinsurance Company
E) Johnson v. Chevrolet
Q3) Strict liability for ultrahazardous activities is an old concept going back more than a century.
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) Eminent domain means:
A) the government must build housing for the poor
B) the use of property is controlled by zoning
C) owners of other property make a legal claim against public land
D) land is registered to its private owner
E) the government may force the sale of private property
Q2) When someone has interfered with the right of the owner to exclusive possession and enjoyment of personal property there may be a tort of:
A) conversion
B) misappropriation
C) trespass to personal property
D) battery
E) none of the other choices are correct
Q3) The title to property is:
A) another word for a covenant
B) a right to use some land some time, for a limited purpose
C) non-transferable
D) the formal right of ownership
E) the government's right to restrict use of privately held land
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) A commercial symbol that a manufacturer prints on its goods so they can be readily identified in the marketplace is a(n):
A) symbol
B) marker
C) trademark
D) intangible marker
E) patent
Q2) Which of the following is an example of a suggestive trademark?
A) Nike
B) Coca-Cola
C) Exxon
D) Chicken of the Sea
E) Lysol
Q3) A copyright gives the owner the right to prepare derivative works from the original.
A)True
B)False
Q4) About 200,000 patents are issued annually; half go to Americans.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 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) Once an offer has been made, the offeree can terminate the offer by:
A) accepting it
B) rejecting it
C) rescinding it
D) returning it
E) rationalizing it
Q2) Freedom of contract means businesses may enter into any contracts they wish to.
A)True
B)False
Q3) Smith, who lives in your apartment building, drives you crazy. You agree to give Ratzo $5,000 if he gets rid of Smith for you. After disposing of her, Ratzo returns for his money. You refuse to pay. Ratzo sues you; the court holds the contract is:
A) enforceable and completed; you must pay what is owed
B) enforceable, but $5,000 is an unconscionable price, so it revises the contract
C) unenforceable because it involves a public servant
D) enforceable because evidence proved Ms. Smith was driving everyone crazy
E) none of the other choices
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) Every state except ____ has adopted UCC Article 2.
A) Texas
B) Illinois
C) Alabama
D) Louisiana
E) Florida
Q2) Contracts under Article 2 of the UCC could include:
A) a house
B) a patent
C) a bank account
D) a load of wheat
E) all of the other choices
Q3) Most states willingly accepted the UCC's provisions on most topics because:
A) there were a lot of federal tax breaks associated with accepting the UCC
B) the federal government gave them no choice
C) the European Union required consistency in U.S. sales law to encourage trade
D) national unity is very important to all states
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) Sales of ____ and ____ can be difficult because determining the market value of the asset may be difficult.
A) close corporation; sole proprietorship
B) close corporation; double proprietorship
C) close corporation; publicly traded corporation
D) sole proprietorship; publicly traded corporation
E) sole proprietorship; double corporation
Q2) Partners in a partnership owe each other:
A) direct interest responsibility
B) a duty to contribute direct assets
C) a fiduciary duty
D) a duty of ordinary care
E) none of the other choices
Q3) By law, partnership agreements must specify compensation arrangements for any partners paid by the partnership itself.
A)True B)False
Q4) Corporations may sue and be sued in the name of the business itself. 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) Under Article 3 of the UCC, a draft is a conditional promise to pay that involves three parties in distinct capacities: drawer, drawee, and payee.
A)True
B)False
Q2) If a negotiable instrument is assigned, the assignee has:
A) the same contract rights and responsibilities as the assignor
B) the same contract rights as the assignor, but is relieved of assignor's responsibilities
C) the same responsibilities as the assignor, but not the contract rights of the assignor
D) neither the rights or responsibilities of the assignors; those are determined by a new contract between the parties
E) none of the other choices
Q3) In a term draft or time draft, the promise to pay expires in the future, usually 60 or 90 days.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Which of the following is a common problem with employee handbooks:
A) listing specific offenses for which people may be fired can create the impression those are the only offenses that matter
B) failing to change the handbook to comply with state and federal laws as they change
C) not giving a clear at-will employment statement
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q2) Which of the following can determine the scope of authority given to an agent:
A) statements of the agent
B) the principal's personal relationship with a third party
C) the principal's conduct
D) all of the other specific choices are correct
E) none of the other specific choices are correct
Q3) In Foley v. Interactive Data, the California Supreme Court held that for an employer to ignore written termination guidelines does not provide a basis for suing for breach of employment contract.
A)True
B)False
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) The ____ is an administrative agency charged with overseeing the National Labor Relations Act.
A) National Labor Relations Board
B) National Workers' Relations Board
C) National Union Relations Board
D) National Employment Board
E) National Labor Practice Board
Q2) In Ballalatak v. All Iowa Agriculture Assn. the Iowa Supreme Court held that a supervisor at a company had the right to fight for worker compensation rights for other employees and not be fired for doing so.
A)True
B)False
Q3) According to the National Transportation Safety Board, alcohol or other drugs were a factor in ____ of all accidents involving truck drivers killed in highway accidents.
A) two thirds
B) half
C) one third
D) one fourth
E) three fourths
To view all questions and flashcards with answers, click on the resource link above.
Page 17
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) In a trial where a person has claimed employment discrimination has occurred and the plaintiff has shown a prima facie case, the employer's reason for his action must be:
A) legitimate
B) nondiscriminatory
C) clear
D) reasonably specific
E) all of the other choices are necessary
Q2) Discrimination on the basis of sexual preference or sexual identity:
A) is prohibited by Title VII of the Civil Rights Act
B) is not prohibited by Title VII of the Civil Rights Act
C) is prohibited by most states
D) is an accepted practice in most workplaces
E) none of the other choices are correct
Q3) In Lewis v. Heartland Inns of America the appeals court held that Lewis presented a prima facie case of discrimination and that Heartland's defense appeared to be a pretext.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
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) Under the ____ if scientific, technical, and economic information standards are not met in analyses done to support administrative agency regulations, affected parties may challenge a regulation for not being supported by adequate analysis.
A) Freedom of Information Act
B) Data Quality Act
C) Data Obtaining Act
D) Privacy Act
E) Scientific and Technical Support Act
Q2) The branch of law that consists of legal rules that define the authority and structure of hundreds of administrative agencies is known as:
A) business law
B) tort law
C) legislative delegation law
D) agency law
E) none of the other choices are correct
Q3) The Government in the Sunshine Act requires advanced public notice of most regulatory meetings.
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) Securities financing is:
A) the raising of money through purchasing bonds
B) the raising of funds through borrowing money from banks
C) the raising of money through trades of bonds
D) the raising of money through donations
E) none of the other choices are correct
Q2) A tender offer takes place when:
A) a corporation dissolves
B) a partnership terminates
C) one company attempts to take over another company
D) one party makes their securities available for sale
E) the government refuses to regulate an industry
Q3) The ____ increases regulatory oversight of financial markets, but not the way securities are issued or generally handled.
A) Amended Securities Exchange Act
B) Howey Act
C) Financial Oversight Act
D) Financial Regulation Act
E) none of the other choices are correct
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 FTC's Used Car Rule the Buyer's Guide need NOT contain:
A) a statement of the terms of any warranty offered with the car
B) prominent statement of whether the dealer is selling the car "as is" and, if so, that the consumer must pay for any repairs needed after buying the car
C) warning that oral promises are difficult to enforce, with a suggestion to get all promises in writing
D) a suggestion that the consumer ask for an independent inspection of the car
E) all of the other choices are required
Q2) When a consumer is rejected for credit, the Equal Credit Opportunity Act requires the creditor to give the consumer a list of at least three other creditors.
A)True
B)False
Q3) Most deceptive advertising cases are settled by:
A) the advertiser agreeing to stop making false claims
B) the advertiser paying a fine and continuing to make false claims
C) lengthy and expensive court cases
D) the advertiser going to jail
E) none of the other choices are correct
To view all questions and flashcards with answers, click on the resource link above. Page 21
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) Most copyrighted music is licensed for use by BMI and ASCAP (organizations that represent musicians, composers, and publishers of music). They charge set fees to music users through "blanket licensing," which does not allow music users to bargain over price. This was attacked as price fixing. The Supreme Court held the practice:
A) legal using a rule of reason analysis because otherwise the market could not function well
B) legal because it involved copyrighted material not subject to the antitrust laws
C) illegal under a rule of reason analysis, ruling that prices must be negotiated or that there must be many more price categories than before
D) illegal under the per se rule against price fixing
E) none of the other choices
Q2) Lobbying members of the legislature to seek special favors for a competitor does not violate the antitrust laws.
A)True
B)False
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) According to the Toxic Substances Control Act (TSCA), all pesticides must be tested by the EPA before they can be sold to consumers.
A)True
B)False
Q2) Since about half of all water pollution is from nonpoint sources, Congress moved in recent years to substantially tighten controls and reduce such pollution by half.
A)True
B)False
Q3) Suits may be brought by citizens to enforce environmental statutes if government agencies do not act to enforce them.
A)True
B)False
Q4) Under RCRA, a "hazardous waste" is defined as a solid waste that may cause an increase in mortality or in serious irreversible illness.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 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) Although insurance is generally available for transportation, fire, theft, and other similar risks it is not available for such risks as nationalization.
A)True
B)False
Q2) When a country takes over a foreign investment or, at times, an entire industry in a country it is known as:
A) foreign government are not allowed, under international law, to harm financial interests of foreign investors
B) confiscation
C) expropriation
D) any of the other choices
E) none of the other choices are correct
Q3) Business wanting to know the duty (tax) imposed by customs on their product should consult:
A) the Federal Register
B) the International Convention on the Sale of Goods
C) the National Brands Weekly
D) the tariff schedules
E) the Internal Revenue Code
To view all questions and flashcards with answers, click on the resource link above. Page 24