Law for Managers Exam Practice Tests
Course Introduction
Law for Managers provides an essential overview of the legal principles and regulations affecting modern business operations. The course covers key topics such as contract law, employment law, intellectual property, corporate governance, and dispute resolution, focusing on issues that managers frequently encounter. Through case studies and practical examples, students learn how to navigate legal risks, ensure compliance, and make informed decisions that align with both legal standards and organizational objectives. This foundational knowledge empowers future managers to understand their legal responsibilities and work effectively with legal professionals in various business contexts. Recommended Textbook
Essentials of the Legal Environment 4th Edition by Roger LeRoy Miller
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1489 Verified Questions
1489 Flashcards
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Page 2
Chapter 1: Business and Its Legal Environment3
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72 Verified Questions
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Sample Questions
Q1) Federal statutes apply to all states.
A)True
B)False Answer: True
Q2) Hawaii enacts a state law that violates the U.S.Constitution.This law can be enforced by
A)no one.
B)the federal government only.
C)the state of Hawaii only.
D)the United States Supreme Court only.
Answer: A
Q3) Courts do not depart from precedents.
A)True
B)False Answer: False
Q4) Criminal law focuses on duties that exist between persons.
A)True
B)False Answer: False
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Chapter 2: Shifting Legal Priorites for Business:
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Sample Questions
Q1) Clark appeals a decision in his suit against Dona, grounded on rights provided in the U.S.Constitution, to the United States Supreme Court.The task of the Court to interpret and give meaning to those rights is made more difficult because A)foreign laws affect the legal environment unpredictably.
B)government's role alters with each new election.
C)parties' expectations vary with each step in the judicial process.
D)society's perceptions and needs change over time.
Answer: D
Q2) 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
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4
Chapter 3: Courts and Alternative Dispute Resolution
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Sample Questions
Q1) The United States Supreme Court has appellate authority over some cases decided in the state courts.
A)True
B)False
Answer: True
Q2) Unless otherwise agreed, the result of an online dispute resolution proceeding may not be appealed to a court.
A)True
B)False
Answer: False
Q3) Owen, in Pennsylvania, and Quik Jobs, Inc., in Maryland agree to have their dispute resolved in arbitration according to the law of Virginia.This is a ground for a court to A)do nothing.
B)review the merits of the dispute.
C)review the sufficiency of the evidence.
D)set aside the award.
Answer: A
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Chapter 4: Ethics and Business Decision Making
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Sample Questions
Q1) In studying the legal environment of business, Professor Beck's students also review ethics in a business context.Ethics includes the study of what constitutes
A)fair or just behavior.
B)financially rewarding behavior.
C)legal behavior.
D)religious behavior.
Q2) In judging her action as a corporate employee of Music Notes Corporation, Brooke always lets her conscience be her guide.As an effective alternative, Brooke could A)ask herself whether she would be happy to be interviewed by the national media about the action.
B)consider only the benefits that would accrue to her personally.
C)look only at the result, regardless of the means to attain it.
D)consider how she would like to have others treat her in a similar situation.
Q3) Few companies provide any kind of support such as ethical training programs to make their ethical codes more effective.
A)True
B)False
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6
Chapter 5: Constitutional Authority to Regulate Business
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Sample Questions
Q1) Adult Shoppe in Bay City sells a variety of publications, including child pornography.Bay City enacts an ordinance prohibiting the sale of such materials.This ordinance is most likely
A)an invalid restriction of individuals' privacy.
B)an unconstitutional restriction of speech.
C)a violation of adults' rights to enjoy certain privileges.
D)constitutional under the First Amendment.
Q2) The commerce clause's express grant of exclusive authority to regulate commerce that substantially affects trade and commerce among states is referred to as the
A)dormant aspect of the commerce clause.
B)positive aspect of the commerce clause.
C)negative aspect of the commerce clause.
D)exclusive aspect of the commerce clause.
Q3) The First Amendment protects defamatory speech.
A)True
B)False
Q4) The President appoints federal judges with the advice and consent of the Senate.
A)True
B)False
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Chapter 6: Administrative Law
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Sample Questions
Q1) Administrative agencies generally exercise substantial discretion over the type of hearing procedures that they use.
A)True
B)False
Q2) The Merit Systems Protection Board issues a rule.Like other administrative agencies' "legislative rules," this rule is as
A)binding as a law passed by Congress.
B)persuasive as an expert's opinion.
C)suggestive as a newspaper's editorial.
D)unenforceable as a salesperson's puffery.
Q3) Pure Water Company is subject to a decision by the Environmental Protection Agency.Pure Water appeals the decision, arguing that it is arbitrary and capricious.This could mean that the decision
A)changed the agency's prior policy without justification.
B)followed a consideration of all relevant factors.
C)was accompanied by a rational explanation.
D)was plainly warranted by the evidence.
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8
Chapter 7: Torts and Product Liability
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Sample Questions
Q1) Jim is an appliance salesperson.To make a sale, he asserts that a certain model of a Kitchen Helper refrigerator is the "best one ever made." This is
A)fraud if the statement is the truth.
B)fraud if Jim believes that this statement is not true.
C)fraud if Jim is stating his opinion, not the facts.
D)not fraud.
Q2) The purpose of tort law is to provide remedies when various protected interests have been invaded.
A)True
B)False
Q3) Proximate cause exists when the connection between an act and an injury is strong enough to justify imposing liability.
A)True
B)False
Q4) A manufacturer's duty of care does not extend to the inspection and testing of products bought to incorporate in the final product.
A)True
B)False
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9
Chapter 8: Online Developments:
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Sample Questions
Q1) Delfino, an executive with Cartwright Corporation, orders corporate employees to unknowingly transfer corporate funds to Delfino's personal account.This use of the employees' services is most likely
A)honest-services fraud, a federal crime.
B)a violation of corporate rules but no crime.
C)a breach of workplace rules generally but no civil or criminal wrong.
D)unethical but no crime.
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) Yvon is charged with the crime of theft for taking Zach's backpack, which Yvon mistakenly thought was hers.A mistake of fact is a defense
A)if the fact was not reasonably made known to the public.
B)if the mistake negates the mental state necessary to commit a crime.
C)if the perpetrator was intoxicated.
D)under any circumstances.
Q2) Phishing occurs when a criminal poses as a member of the rock group Phish.
A)True
B)False
Q3) Money laundering includes making "dirty" money "clean" through legitimate businesses.
A)True
B)False
Q4) At a criminal trial, the burden of proof is on an accused person to prove his or her innocence.
A)True
B)False
Q5) A federal judge must adhere strictly to federal sentencing guidelines.
A)True
B)False
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Chapter 10: Intellectual Property and Internet Law
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) Phil invents "PhutureNow," new Web site design software, and applies for a patent.If Phil is granted a patent, his invention will be protected A)for ten years.
B)for twenty years.
C)for the life of the inventor plus seventy years. D)forever.
Q2) Public domain means that rights to certain intellectual property belong to everyone. A)True B)False
Q3) Sharing copyrighted works with others without authorization is never a crime. A)True B)False
Q4) The graphics used in "Go!," a handheld video game featuring racecars, are protected by A)copyright law.
B)patent law.
C)trademark law.
D)trade secrets law.
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Chapter 11: International Law in a Global Economy
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72 Verified Questions
72 Flashcards
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Sample Questions
Q1) Under the principle of comity, all foreign governments are subject to all U.S.laws.
A)True
B)False
Q2) All international sales contracts should have a choice-of-language clause to designate the official language by which the contract will be interpreted.
A)True
B)False
Q3) Mountain Mining Company, a U.S.firm, owns property in Bolivia.The government of Bolivia seizes the property for an illegal purpose without paying just compensation.This is A)confiscation.
B)defalcation.
C)dumping.
D)expropriation.
Q4) Confiscation occurs when a government seizes a private property for a proper public purpose and awards just compensation.
A)True
B)False
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Page 13
Chapter 12: Business Organizations
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Sample Questions
Q1) Hollister and Gladys do business as partners in Frothy Confections.For federal income tax purposes, Frothy Confections would be treated as
A)a "pass-through" entity.
B)a natural person.
C)a tax-paying entity.
D)a partnership by estoppel.
Q2) Fern and Gray want to form a limited partnership to manage two restaurants, Café Latte and Deli Delite.In most states, a limited partnership will come into existence when A)a certificate of limited partnership is filed.
B)a partnership agreement is executed.
C)the business for which the firm is formed actually begins.
D)the partners make their capital contributions.
Q3) A third party cannot sue one of the partners of a partnership without suing all of the partners.
A)True
B)False
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Chapter 13: Beyond Our Borders:
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Sample Questions
Q1) Taylor, a paralegal, works for Polk, an attorney.Before filing a bankruptcy petition for Polk on behalf of a client in the U.S.Bankruptcy Court for the District of Arizona, Taylor has a question about the filing.Taylor can access a chat box via the court's Web site and A)send and receive text messages.
B)leave voice messages.
C)get verbal responses to questions in not less than ten minutes.
D)contact other paralegals, attorneys, and their clients quickly.
Q2) Kitschen Equipe, GmBH, a German firm, orally agrees to sell six large freezers to Mon Desir Cafés, S.A., in France.Kitschen fails to deliver, Mon Desir does not pay, and the parties take their dispute to court.France does not require certain types of contracts to be in writing.Without a writing requirement, the parties can prove their agreement and its terms by
A)evidence of conduct.
B)oral testimony.
C)written documents.
D)all of the choices.
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Page 15
Chapter 14: Formation of Traditional and E-Contracts
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Sample Questions
Q1) Greco promises to buy illegal copies of CDs and DVDs from Fava, who promises to deliver on April 15.These promises are most likely
A)enforceable.
B)valid.
C)void.
D)voidable.
Q2) A partnering agreement can indicate the parties' intent with respect to subsequent contracts.
A)True
B)False
Q3) Lou claims that he and Myra entered into an implied contract.To establish this contract, it is not necessary to show that
A)a court imposed a promise in the interest of fairness.
B)Lou expected to be paid for providing services or prop?erty.
C)Lou provided Myra with services or property.
D)Myra failed to reject services or property provided by Lou.
Q4) An expression of opinion-"your customers will like this"-is an offer.
A)True
B)False
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Chapter 15: Contract Performance, Breach, and Remedies
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Sample Questions
Q1) An incidental beneficiary cannot sue the promisor directly for breach of the contract.
A)True
B)False
Q2) Beau sells a car to Cody without disclosing that the odometer, which reads 40,000 miles, was disconnected 80,000 miles ago.Beau is liable for A)nothing.
B)fraud.
C)mistake.
D)undue influence.
Q3) To qualify as substantial performance, the performance must not vary greatly from the performance promised in the contract.
A)True
B)False
Q4) Liquidated damages provisions are usually not enforceable.
A)True
B)False
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Page 17
Chapter 16: Sales and Leases
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Sample Questions
Q1) 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
Q2) In most sales, sellers warrant that they have good and valid title to the goods sold.
A)True
B)False
Q3) To constitute an express warranty, a representation must be in writing.
A)True
B)False
Q4) Mountaineer Sales, Inc., is the offeror and Camping Goods Corporation is the offeree under a unilateral sales contract in which Forest Recreation Products Company is also interested.Mountaineer is not notified of Camping's performance within a reasonable time.Mountaineer
A)may treat the offer as having lapsed.
B)must assume that Camping has started to perform.
C)must contact Camping.
D)must contract with Forest.
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Chapter 17: Creditors Rights and Bankruptcy
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Sample Questions
Q1) Liens usually do not take priority over other claims against the same property.
A)True
B)False
Q2) A guarantor is secondarily liable on an obligation.
A)True
B)False
Q3) An artisan's lien is a security device created at statutory law through which a creditor can recover payment for labor and materials used to increase the value of real property.
A)True
B)False
Q4) A creditor's composition agreement may be entirely enforceable.
A)True
B)False
Q5) 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.
Page 19
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Chapter 18: Mortgages Foreclosures After the Recession
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Sample Questions
Q1) Lorna borrows $175,000 from Mountainside Credit Union to buy a home.Among the terms that must be disclosed under federal law is the annual percentage rate.This is
A)the actual cost of the loan on a yearly basis.
B)the average prime offer rate.
C)the interest rate at which the loan is made.
D)the loan principal.
Q2) If a lender fails to provide certain material disclosures, a borrower has up to seven years to rescind the mortgage.
A)True
B)False
Q3) Franz asks Gateway Mortgage Credit for a loan to pay for the purchase of a home.With a poor credit score and a high current debt-to-income ratio, Franz does not qualify for a standard mortgage.Gateway is most likely to provide A)a deed in lieu of foreclosure.
B)a home equity loan.
C)a subprime mortgage.
D)a workout agreement.
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Page 20
Chapter 19: Employment, Immigration, and Labor Law
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Sample Questions
Q1) Elections for union officers are regulated by
A)the Labor-Management Relations Act.
B)the Civil Rights Act.
C)the Labor-Management Reporting and Disclosure Act.
D)no federal law.
Q2) An agent has a duty to keep and make available to the principal an account of all property and funds received and paid out on behalf of the principal.
A)True
B)False
Q3) Generally, employers can monitor employees' electronic communications made in the ordinary course of business, as well as employees' personal communications.
A)True
B)False
Q4) Children must be at least thirteen years old to work in hazardous occupations.
A)True
B)False
Q5) An independent contractor is an employee.
A)True
B)False
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Chapter 20: Beyond Our Borders:
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Sample Questions
Q1) Belle is an employee of Capital Corporation, a U.S.firm.Dana is an employee of Esta, Ltd., a European firm.The problem of sexual harassment in the workplace is
A)confined to Europe alone.
B)confined to Europe and the United States.
C)confined to the United States alone.
D)worldwide.
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."
Q3) Women's groups contend that sexual harassment is viewed with "quiet tolerance" in corporations based in A)Asia.
B)Europe.
C)North America.
D)South America.
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Page 22
Chapter 21: Employment Discrimination
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Sample Questions
Q1) Sarah believes that she was rejected for a position at Trekking Travel Agency due to her race.Sarah files a suit against Trekking Travel Agency under Title VII on the basis of disparate-treatment discrimination.Sarah must show all of the following except that
A)she is a member of a protected class.
B)she applied and was qualified for the job in question.
C)she was rejected by Trekking Travel Agency.
D)other people of her race hold similar positions with other employers.
Q2) Sexual harassment occurs only if sexual favors are demanded of an employee.
A)True
B)False
Q3) Title VII of the Civil Rights Act of 1964 applies to which of the following
A)An employer with five employees
B)An employer with ten employees
C)A labor union with twenty-five members
D)A labor union with twelve members
Q4) Under the Americans with Disabilities Act of 1990, an employer must hire unqualified applicants who have disabilities.
A)True
B)False
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Chapter 22: Environmental Law
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Sample
Questions
Q1) Timberline Plywood Company discharges its untreated wastewater into Urban City's storm drainage pipes, which empty into Valley Creek.Under the Clean Water Act, this discharge is most likely
A)a violation.
B)not a violation because the company does not own the pipes.
C)not a violation because water is not a stationary source.
D)not a violation because a storm drainage pipe is not a point source.
Q2) New sources of water pollutants must install pollution-control equipment before beginning operations.
A)True
B)False
Q3) There are no plans to develop national standards regulating the fuel economy and emissions for medium- and heavy-duty trucks.
A)True
B)False
Q4) All environmental law consists of statutes and regulations.
A)True
B)False
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Page 24
Chapter 23: Antitrust Law and Promoting Competition
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Sample Questions
Q1) Labor unions can organize and bargain without violating antitrust law.
A)True
B)False
Q2) Congress enacts a statute to outlaw a specific type of anticompetitive business agreement.Like other laws that regulate economic competition, this law is referred to as
A)a federal trade commission act.
B)an antitrust law.
C)an interstate commerce act.
D)a suppressive restraint on trade.
Q3) Precious Metals Corporation, a raw materials vendor, sells its commodities in certain quantities to Quarry Refining Company for a certain price but charges Rich Assets, Inc., a Quarry competitor, a higher price.This is most likely a violation of
A)the Clayton Act.
B)the Federal Trade Commission Act.
C)the Sherman Act.
D)no antitrust law.
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Chapter 24: Online Developments:
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Sample Questions
Q1) Penquin Ltd.agrees with Apple Corporation to use the "agency" model of setting prices and paying commissions on the sales of e-books for iPads.Under this model, publishers
A)set their own prices.
B)price e-books below cost to sell more e-book readers.
C)match Amazon.com's e-book prices.
D)agree to sell e-books exclusively through certain "agents."
Q2) 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.
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Chapter 25: Investor Protection, Insider Trading, Corp Gov
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Sample Questions
Q1) Willful violations of the Securities Act of 1933 may be subject to civil liability, but not criminal prosecution.
A)True
B)False
Q2) Fresh Seasonal Fruit Company has assets of less than $10 million and fewer than fifty shareholders.Gourmand Pastries, Inc., has assets of more than $50 million and more than five hundred shareholders.The Securities Exchange Act of 1934 applies to
A)Fresh Seasonal Fruit and Gourmand Pastries.
B)Fresh Seasonal Fruit only.
C)Gourmand Pastries only.
D)neither Fresh Seasonal Fruit nor Gourmand Pastries.
Q3) Nouveau Riche Corporation's officers, directors, and shareholders buy and sell securities.SEC Rule 10b-5 applies to
A)only the purchase or sale of a security by a financial corporation.
B)only the purchase or sale of a security involving an officer or director.
C)only the purchase or sale of a security involving a shareholder.
D)the purchase or sale of any security.
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