Introduction to Law Test Bank
Course Introduction
Introduction to Law provides students with a foundational understanding of the legal system, its structures, concepts, and principles. The course explores the sources of law, the roles of key institutions such as courts and legislatures, and basic legal terminology. Students will examine the different branches of law, including civil, criminal, constitutional, and administrative law, and will learn about the processes through which laws are created, interpreted, and enforced. This course encourages critical examination of the laws role in society and its impact on individuals and communities, preparing students for further legal studies or an informed engagement with legal issues in everyday life.
Recommended Textbook
Essentials of the Legal Environment 4th Edition by Roger LeRoy Miller
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25 Chapters
1489 Verified Questions
1489 Flashcards
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Chapter 1: Business and Its Legal Environment3
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72 Verified Questions
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Sample Questions
Q1) In a suit against Clem, Dona obtains the cancellation of a contract.This is A)an injunction.
B)damages.
C)rescission.
D)specific performance.
Answer: C
Q2) Sam is a judge hearing the case of Local Co.v.National Corp.Applying the relevant rule of law to the facts of the case requires Sam to find previously decided cases that, in relation to the case under consideration, are
A)as different as possible.
B)as similar as possible.
C)at odds.
D)exactly identical.
Answer: B
Q3) A defendant is a person against whom a lawsuit is brought.
A)True
B)False
Answer: True
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3
Chapter 2: Shifting Legal Priorites for Business:
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Sample Questions
Q1) Devon, a senior at Central High School, participates in a social media forum on which he posts destructive, bullying lies about Beau, a fellow student.Beau's parent complains to Central officials.Under the First Amendment, Central can most likely
A)punish Devon for the posts.
B)transfer Beau to a different school.
C)require that all students' future posts be made on the school's public Web site.
D)post an official note calling Devon's posts "juvenile and silly."
Answer: A
Q2) Sustainability-economic development that meets the needs of the present without compromising the ability of future generations to meet their needs-has been legislatively committed to by
A)no state statute or federal law.
B)at least one state-Oregon.
C)federal statutes only.
D)international law only.
Answer: B
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Chapter 3: Courts and Alternative Dispute Resolution
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Sample Questions
Q1) Marbled Granite Company files a suit against Natural Stone, Inc., in a Colorado court with general jurisdiction.In a Delaware court with limited jurisdiction, E-Sales Corporation files a suit against First State Bank.The difference between general and limited jurisdiction is
A)the subject matter of the cases that the courts can decide.
B)whether a case is being heard for the first time.
C)whether a suit is filed against a single individual or many people.
D)whether a suit is filed by a citizen or by a business.
Answer: A
Q2) National Consumer Goods Corporation and Paula Purchaser agree to resolve their dispute in arbitration.The arbitrator's decision is called
A)a conclusion of law.
B)a finding of fact.
C)an award.
D)a verdict.
Answer: C
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Chapter 4: Ethics and Business Decision Making
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Sample Questions
Q1) In making business decisions, Glenda, a personnel manager for HVAC Maintenance, Inc., applies her belief that all persons have fundamental rights.Glenda is applying A)a religious rule.
B)the categorical imperative.
C)the principle of rights.
D)utilitarianism.
Q2) 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.
Q3) Olaf, an executive with Pharma Product Distribution, Inc., has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small percentage of users.How should Olaf decide whether to sell the product How does the standard of ethics that is applied affect this answer
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Chapter 5: Constitutional Authority to Regulate Business
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Sample Questions
Q1) A federal form of government is a confederation of independent states with a central government of very limited powers.
A)True
B)False
Q2) The President appoints federal judges with the advice and consent of the Senate.
A)True
B)False
Q3) Savers Mart, Inc., distributes its merchandise to retail outlets on an interstate basis.Under the commerce clause, Congress has the power to regulate A)any commercial activity in the United States.
B)only activities that are in intrastate commerce.
C)only activities that are in local commerce.
D)only activities that are not in commerce.
Q4) The establishment clause of the U.S.Constitution prohibits the federal government from establishing a state-sponsored religion.
A)True
B)False
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Chapter 6: Administrative Law
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Sample Questions
Q1) In reviewing the actions of the U.S.Office of Nuclear Energy and other agencies, the courts
A)are usually reluctant to review questions of fact.
B)rarely defer to the technical expertise of administrative agencies.
C)often rule on the merits of policy determinations.
D)never defer to an agency's interpretation of law.
Q2) An administrative agency can issue an interpretive rule to indicate how the agency plans to interpret its statutory authority.
A)True
B)False
Q3) The federal government must disclose certain records to any person or entity on written request only if there is a rational reason for the request.
A)True
B)False
Q4) Often, an administrative agency itself enforces its rules.
A)True
B)False
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Chapter 7: Torts and Product Liability
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Sample Questions
Q1) The purpose of tort law is to provide remedies when various protected interests have been invaded.
A)True
B)False
Q2) Bella owns a farm in Colorado.Doyle drives his sport utility vehicle off a highway and onto Bella's land.Doyle commits trespass if he
A)does not have Bella's permission to drive on the property.
B)drives onto the property for recreational purposes.
C)harms the property in a material way.
D)harms the property in any way.
Q3) Cook's Pantry Appliances, a retail store, must use reasonable care on its premises to warn its patrons of A)all risks.
B)hidden risks.
C)obvious risks.
D)no risks.
Q4) If no harm results from an allegedly negligent act, there is no liability.
A)True
B)False
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Chapter 8: Online Developments:
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Sample Questions
Q1) A Little Bit of Lipstick, Inc., is a small, U.S.-based business that sells nanotechnology-based cosmetics for export.Under the National Export Initiative, the federal government is
A)pursuing trade agreements to improve market access for U.S.firms.
B)banning lending to small businesses, especially for export purposes.
C)placing less emphasis on exports than other governments.
D)playing a less active role in promoting exports in emerging markets.
Q2) Grace hosts Harvest, a social networking site.Idle Fields, a competitive site, hires Jeb to anonymously post on Harvest stories that question its privacy practices.Harvest might most successfully sue Idle Fields for A)slander of quality.
B)intentional infliction of emotional distress.
C)false imprisonment.
D)none of the choices.
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Chapter 9: Criminal Law and Cyber Crime
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Sample Questions
Q1) Posing as a representative of Global Games Company, Ferris e-mails Evan, a job seeker, asking him to forward personal banking information so that if he is hired, payroll checks can be deposited directly into his account.Evan supplies the data, which Ferris promptly sells to Dixie.This is
A)no crime.
B)employment fraud.
C)phishing.
D)vishing.
Q2) A bribe must consist of money to be a crime.
A)True
B)False
Q3) Vladimir is a "payday" lender charged with filing false claims in bankruptcy proceedings against his customer-debtors.The standard of proof to find a defendant who has been charged with a crime guilty is
A)a preponderance of the evidence.
B)beyond all doubt.
C)beyond a reasonable doubt.
D)clear and convincing evidence.
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Chapter 10: Intellectual Property and Internet Law
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Sample Questions
Q1) Standard Corporation can not claim a trademark in the phrase "Quality Is Standard" if the phrase
A)has a secondary meaning.
B)is descriptive.
C)is generic.
D)means nothing.
Q2) E-Shopping Corporation inserts Fiesta Mall, Inc.'s trademark as a meta tag in E-Shopping's Web site's key-words field without Fiesta's permission in a manner that suggests Fiesta authorized the use.This is
A)copyright infringement.
B)patent infringement.
C)trademark infringement.
D)no infringement.
Q3) A generic term is not protected under trademark law unless it acquires a secondary meaning.
A)True
B)False
Q4) Patent protection begins on the date that a patent is issued.
A)True
B)False
Page 12
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Chapter 11: International Law in a Global Economy
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Sample Questions
Q1) Congresswoman Jones and other politicians want to prohibit the import of certain agricultural products that pose a danger to domestic crops.With respect to these products' import, Congress can
A)do nothing.
B)impose quotas, but not tariffs.
C)impose tariffs, but not quotas.
D)prohibit the imports.
Q2) Force majeure clauses in international business contracts commonly set forth the major clauses of the contracts.
A)True
B)False
Q3) Michael, a citizen of Ireland, and Nina, a citizen of the United States, enter into a contract.When Nina breaches the contract, Michael obtains an award of damages in an Irish court.He asks a U.S.court to enforce the award.The U.S.court defers to and enforces the Irish court's decree.This is
A)a travesty of justice.
B)the act of state doctrine.
C)the doctrine of sovereign immunity.
D)the principle of comity.
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Chapter 12: Business Organizations
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Sample Questions
Q1) Wiley incorporates his business as Wiley Wire Corporation in Texas to profit from sales of fencing wire.Wiley and the members of his family constitute the shareholders.Wiley Wire Corporation is
A)a sole proprietorship.
B)a limited liability company.
C)a partnership.
D)a close corporation.
Q2) A director is a fiduciary of a corporation.
A)True
B)False
Q3) Corporate directors and officers are insurers of business success.
A)True
B)False
Q4) Open & Shutt Gates Corporation has a board of ten directors.Open & Shutt's bylaws do not state any quorum requirements.Normally, a quorum for Open & Shutt would consist of
A)two directors.
B)six directors.
C)nine directors.
D)ten directors.
Page 14
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Chapter 13: Beyond Our Borders:
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Sample Questions
Q1) Roshini is a shareholder of Satsui, Ltd., a Japanese firm.Roshini brings a derivative action against the company.If the action is unsuccessful, Satsui
A)can sue Roshini for damages.
B)must pay Roshini's legal fees.
C)must apologize to Roshini.
D)must accept Roshini's apology in lieu of costs, fees, or damages.
Q2) Eduard is a shareholder of Deutsche Internationale, a German firm.In Germany
A)most claims against firms are alleged in shareholders' derivative suits.
B)the law does not provide for derivative litigation.
C)derivative actions can only challenge directors' actions that shareholders could not legally ratify.
D)if a derivative action is unsuccessful, a firm can sue the plaintiff.
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Chapter 14: Formation of Traditional and E-Contracts
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Sample Questions
Q1) Kingston promises to pay Melina $500 to install a sump pump in his warehouse.Melina completes the installation.The act of installing the pump
A)imposes a moral obligation on Kingston to pay Melina.
B)imposes no obligation on Kingston unless he is satisfied with the job.
C)is not sufficient consideration because it is not goods or money.
D)is the consideration that creates Kingston's obligation to pay Melina.
Q2) Contractual capacity refers to the size or volume of a contract.
A)True
B)False
Q3) Overnight Delivery Service delivers a package to Pam.At the request of Overnight's delivery person, to acknowledge receipt Pam signs a digital pad.This signing creates
A)an e-signature.
B)a handwritten signature.
C)a typed signature.
D)no signature.
Q4) A void contract is enforceable if it is in writing.
A)True
B)False
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Page 16
Chapter 15: Contract Performance, Breach, and Remedies
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Sample Questions
Q1) Drew contracts to sell a house to Evan.The contract provides that if Drew does not close the deal by February 10, he must pay Evan one-half of the contract price.This provision is not enforceable because it is
A)a liquidated damages clause.
B)a material breach.
C)a mitigation of damages.
D)a penalty clause.
Q2) When anticipatory repudiation occurs, the nonbreaching party is permitted to bring an action for damages immediately.
A)True
B)False
Q3) To qualify as substantial performance, the performance must not vary greatly from the performance promised in the contract.
A)True
B)False
Q4) An incidental beneficiary cannot sue the promisor directly for breach of the contract. A)True
B)False
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Chapter 16: Sales and Leases
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Sample Questions
Q1) Fred goes to Carla, a knowledgeable dog breeder, and tells her that he wants to get a dog that will be good with small children.Carla sells Fred a dog.When Fred takes the dog home, it bites both his small children and causes them serious injuries.Fred can sue Carla for breach of
A)an express warranty.
B)an implied warranty of fitness for a particular purpose.
C)an implied warranty of merchantability.
D)a warranty of title.
Q2) Merchants are required to warrant that the goods they sell or lease are fit for the particular purpose for which a buyer or lessee will use the goods.
A)True
B)False
Q3) To constitute an express warranty, a representation must be in writing. A)True
B)False
Q4) The parties to a sales or lease contract can vary their respective rights and obligations by contractual agreement.
A)True
B)False
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Chapter 17: Creditors Rights and Bankruptcy
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Sample Questions
Q1) Dorothy files a petition for bankruptcy under Chapter 13.If she is granted a discharge, debts that will most likely be discharged include
A)claims not provided for by the plan.
B)payments on retirement accounts.
C)claims for domestic-support obligations.
D)credit-card debt incurred more than one year before filing.
Q2) Friendly Credit Corporation (FCC)believes that Gary may dispose of the assets that FCC expects to receive as payment for Gary's debt before FCC can obtain a judgment.FCC may ask a court to issue a writ of A)attachment.
B)contribution.
C)execution.
D)redemption.
Q3) To use attachment as a remedy, a creditor must have an enforceable right to payment of the debt.
A)True
B)False
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Chapter 18: Mortgages Foreclosures After the Recession
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Sample Questions
Q1) An adjustable-rate mortgage is a standard mortgage with an unchanging rate of interest.
A)True B)False
Q2) Main Street Lenders, Inc., attempts to coerce Nolan-who specializes in determining the value of real and personal property-into misstating the value of a property on which a loan is to be issued.This is
A)a legal and ethical-but morally arguable-financial ploy.
B)a legal-but unethical-business practice.
C)a necessary tactic to generate a profitable loan in today's market.
D)a violation of the law.
Q3) In a judicial foreclosure, the lender is allowed to foreclose on and sell the property without judicial supervision.
A)True B)False
Q4) If a lender fails to provide certain material disclosures, a borrower has up to seven years to rescind the mortgage.
A)True B)False
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Chapter 19: Employment, Immigration, and Labor Law
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Sample Questions
Q1) Julie works as an employee for Organic Produce Express, Inc.(OPI).Rowan, who is unemployed, collects unemployment compensation.This compensation is provided by a tax on
A)Julie and other employees.
B)Julie, OPI, and other employees and employers.
C)OPI and other employers.
D)not Julie, OPI, or other employees or employers.
Q2) Café Cuisine Dining, Inc., employs one hundred workers at three locations in two states.Under federal law, Café Cuisine must provide its employees, during any twelve-month period, family or medical leave of up to
A)twelve days.
B)twelve weeks.
C)twelve months.
D)twelve years.
Q3) Only federal statutes protect employees and their families from the risk of accidental injury, death, and disease resulting from their employment.
A)True
B)False
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Chapter 20: Beyond Our Borders:
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Sample Questions
Q1) Geo Global Corporation, a U.S.firm, requires its employee Marcy to stay connected with work after office hours through a smartphone.In the United States, Marcy and other employees who are required to use mobile devices after work may have a valid claim to overtime wages if they
A)are not exempt under the overtime regulations of the Fair Labor Standards Act.
B)are not reimbursed by their employers for the use.
C)are supplied with the devices by their employers.
D)do business with international contacts.
Q2) Roboto Robotics Inc.creates an internal social media network using enterprise social networking software and systems.The advantages of an internal social media network include
A)obtaining real-time information about important issues.
B)mass e-mailings.
C)employees' posts of personal notes.
D)"white noise."
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22
Chapter 21: Employment Discrimination
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Sample Questions
Q1) Melanie files an employment discrimination suit against Natural Gas Industries Corp.under Title VII on a disparate-impact theory.To succeed, Melanie must show that a protected group of people are adversely affected by any of the following except the employer's
A)practices.
B)procedures. C)tests.
D)seniority system.
Q2) Gender can be a bona fide occupational qualification.
A)True
B)False
Q3) An employer may be liable for the harassment by nonemployees if the employer knew about the harassment and failed to take corrective action.
A)True
B)False
Q4) Federal law does not prohibit discrimination on the basis of gender in assessing an employee's education, training, or experience.
A)True
B)False
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Chapter 22: Environmental Law
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Sample Questions
Q1) Environmental clean up efforts include control of toxic chemicals used in agriculture and in industry.
A)True
B)False
Q2) The primary responsibility for implementing air-quality standards rests with the federal government.
A)True
B)False
Q3) Operators of public water systems must meet the Environmental Protection Agency's standards regardless of the economic and technological feasibility.
A)True
B)False
Q4) Any point source emitting pollutants into water must have a permit.
A)True
B)False
Q5) States may restrict a business's discharge of chemicals into the air or water.
A)True
B)False
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Chapter 23: Antitrust Law and Promoting Competition
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Sample Questions
Q1) Predatory pricing involves selling a product at prices substantially above the fair market value.
A)True
B)False
Q2) A suit is filed against Adroit Drilling Tools Corporation, alleging that the firm committed the offense of monopolization.To determine whether Adroit has monopoly power requires looking at
A)the definition of monopoly in the Sherman Act.
B)Adroit's size alone.
C)Adroit's production methods and marketing techniques.
D)the relevant market.
Q3) A market division by class of customer between rival firms violates antitrust law.
A)True
B)False
Q4) In determining the legality of a merger, a crucial consideration is market concentration.
A)True
B)False
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Chapter 24: Online Developments:
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Sample Questions
Q1) Vid Games, Inc., is a U.S.company currently involved in significant innovation and cost and quality competition with its rivals.With respect to the direction and control of Vid and its competitors in the United States and other countries, different models of corporate governance exist, depending on
A)the degree of capitalism in a particular nation.
B)the effect of innovation on the operations of a particular company.
C)the extent of cost efficiency in a particular corporation.
D)the quality of the products and services of a particular firm.
Q2) Etoile Metrics, S.A., a French software firm, is harmed by an exclusive-dealing scheme engineered by Flash Search, Inc., a U.S.software firm.Compared to U.S.laws, the European Union's laws
A)define less conduct as anticompetitive.
B)define more conduct as anticompetitive.
C)declare the same conduct-not more or less-to be anticompetitive.
D)include less detailed provisions on monopolization.
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26
Chapter 25: Investor Protection, Insider Trading, Corp Gov
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Sample Questions
Q1) Kitsch Niche Corporation is a noninvestment company that wants to issue $3 million of stock in a twelve-month period.Kitsch Niche, with less than $20 million in annual sales, qualifies as a small business issuer.Before Kitsch Niche sells the stock, it must provide investors with
A)an offering circular.
B)a notice of the issue.
C)a red herring prospectus.
D)a tombstone ad.
Q2) Refer to Fact Pattern 20-3.Under the Securities Exchange Act of 1934, Hu is most likely
A)liable for insider trading.
B)not liable because Hu is only a tippee, not a tipper.
C)not liable because Hu is too far down the chain of disclosure.
D)not liable because Hu traded on the basis of a true fact.
Q3) Generally, federal securities laws are patterned after states' antifraud laws.
A)True
B)False
Q4) Before filing a registration statement, an issuer must offer to sell securities.
A)True
B)False
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