Legal Environment of Business
Test Questions
Course Introduction
The Legal Environment of Business introduces students to the foundational principles and regulations affecting business operations in the United States. The course examines key areas including contracts, torts, agency, employment law, and the structure of the court system. Emphasis is placed on understanding how laws and ethical considerations impact managerial decision-making and business strategy. Students will also explore current legal issues shaping the business landscape, such as intellectual property, consumer protection, and corporate governance, while developing the skills needed to identify and navigate potential legal risks in the business environment.
Recommended Textbook
Contemporary Business and Online Commerce Law 7th Edition by Henry R. Cheeseman
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41 Chapters
5608 Verified Questions
5608 Flashcards
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Page 2
Chapter 1: Legal Heritage and the Information Age
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123 Verified Questions
123 Flashcards
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Sample Questions
Q1) Chancery Courts were also known as:
A) law courts.
B) equity courts.
C) criminal courts.
D) merchant courts.
E) legal remedy courts.
Answer: B
Q2) Proponents of the Critical Legal Studies School argue that strict adherence to legal rules are unnecessary and that arbitrary rules based on broad notions of what is "fair" in each circumstance are sufficient.
A)True
B)False
Answer: True
Q3) Which branch of government has the power to enact the law?
A) executive
B) legislative
C) judicial
D) state
E) federal
Answer: B
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Chapter 2: Constitutional Law for Business and E-Commerce
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126 Verified Questions
126 Flashcards
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Sample Questions
Q1) The Fourteenth Amendment contains Equal Protection,Due Process,and Privileges and Immunities Clauses.
A)True
B)False
Answer: True
Q2) The Establishment Clause of the U.S.Constitution allows the federal government to establish which religions are entitled to protection.
A)True
B)False
Answer: False
Q3) One of the two major functions of the U.S.Constitution is to limit the government's ability to interfere with individual rights.
A)True
B)False
Answer: True
Q4) Federal enumerated powers are also called reserved powers.
A)True
B)False
Answer: False
Page 4
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Chapter 3: Courts and Jurisdiction
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125 Flashcards
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Sample Questions
Q1) The decisions of small claims courts are not appealable to general-jurisdiction trial courts or appellate courts.
A)True
B)False
Answer: False
Q2) Each state has only one U.S.District Court.
A)True
B)False
Answer: False
Q3) Jurisdiction over a person is called in rem jurisdiction.
A)True
B)False
Answer: False
Q4) There is no dollar-amount restriction on "federal question" cases that can be brought in federal court.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Judicial, Alternative, Administrative, and
E-Dispute Resolution
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121 Verified Questions
121 Flashcards
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Sample Questions
Q1) E-filing of court documents is a growing phenomenon,and some courts have made e-filing mandatory.
A)True
B)False
Q2) Which of the following are in the proper order from first to last filed?
A) complaint; reply; cross-complaint; answer
B) answer; complaint; reply; cross-complaint
C) complaint; cross-complaint; reply; answer
D) complaint; answer; cross-complaint; reply
E) reply; cross-complaint; answer; complaint
Q3) Substantive rules issued by an administrative agency are subject to judicial review. A)True
B)False
Q4) One of the cornerstones of the American legal system is the concept of trial by jury.The fact remains however that following the jury's verdict,the judge has a right to completely reverse that verdict.How would a judge do this,and under what circumstances should a judge do so?
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Chapter 5: Torts and Strict Liability
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155 Verified Questions
155 Flashcards
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Sample Questions
Q1) Wayne is showing off by driving his Porsche at 120 mph through a school zone.Which of the following is not a foreseeable consequence of his negligent act?
A) that he might run over a child and injure her
B) that the child might be hit with a parent watching, causing negligent infliction of emotional distress
C) that a parent reading about the incident in the paper the next day might suffer from actionable negligent infliction of emotional distress
D) that a child might be hit and that other students witnessing a classmate being hit by a car might suffer from intentional infliction of emotional distress
E) that a child might be hit and that the child's teacher witnessing her student hit by a car might suffer from intentional infliction of emotional distress
Q2) To recover in a negligence per se action,the plaintiff must prove that a statute existed,the statute was enacted to prevent the type of injury suffered,and the plaintiff was within a class of persons meant to be protected by the statute.
A)True
B)False
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Chapter 6: Criminal Law and Cyber Crimes
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152 Verified Questions
152 Flashcards
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Sample Questions
Q1) Persons convicted of money laundering can be fined up to $500,000 or twice the value of the property involved in the crime.
A)True
B)False
Q2) A party may enter a plea of ________,whereby the accused agrees to the imposition of a penalty but does not admit guilt.
A) nolo contendere
B) absolution
C) prayer for judgment continued
D) no mas
E) summary judgment
Q3) The Fourth Amendment prohibits persons from being tried twice for the same crime.
A)True
B)False
Q4) The crime of embezzlement occurs if a written document is fraudulently made or altered and that change affects the legal liability of another person.
A)True
B)False
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Chapter 7: Intellectual Property and Cyber Piracy
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155 Verified Questions
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Sample Questions
Q1) State unfair competition laws allow the owner of a trade secret to bring a lawsuit for ________ against anyone who steals a trade secret.
A) appropriation
B) misappropriation
C) fraud
D) embezzlement
E) robbery
Q2) One can challenge the issuance of a patent but cannot challenge an existing approved patent.
A)True
B)False
Q3) Copyrights owned by businesses are protected for:
A) 70 years from the year of creation.
B) 70 years from the date of first publication.
C) 95 years from the date of first publication or 120 years from the year of creation, whichever is shorter.
D) 95 years from the date of first publication or 120 years from the year of creation, whichever is longer.
E) the life of the business plus 70 years.
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Page 9
Chapter 8: Ethics and Social Responsibility of Business
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) A criticism of Kantian ethics is that it is easy to reach consensus as to what the universal rules should be.
A)True
B)False
Q2) Under the moral minimum theory of the social responsibility of business,it is acceptable for a business to injure others so long as the business adequately compensates those who are injured.
A)True
B)False
Q3) Ethical relativism has been criticized because action that is usually thought to be unethical would not be unethical if the perpetrator thought it was in fact ethical.
A)True
B)False
Q4) Maximizing profits is a traditional theory of business responsibility saying that profits should be maximized for the benefit of officers and employees.
A)True
B)False
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Chapter 9: Nature of Traditional and E-Contracts
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) Why are quasi-contracts needed? Why is it not better to just say that unless parties express or impliedly make a contract,there is no deal?
Q2) The following elements must be established to create an express contract: 1)The plaintiff provided property or services to the defendant; 2)The plaintiff expected to be paid by the defendant for the property or services and did not provide the property or services gratuitously; and 3)The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
A)True
B)False
Q3) This type of contract is based on an equitable doctrine:
A) implied-in-law.
B) executed.
C) executory.
D) informal.
E) formal.
Q4) Promises to make a gift are not enforceable contracts because a valid agreement is not present.
A)True
B)False
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Chapter 10: Agreement and Consideration
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Sample Questions
Q1) The parties or subject matter of the contract usually cannot be implied if an item or a service is unique or personal.
A)True
B)False
Q2) There is an existing contract calling for Seller to deliver 1,000 widgets to Buyer.Buyer says to Seller,"I would like to buy 100 additional units at the same price." Seller responds,"We promise to sell you the 100 extra units if we decide not to sell them to other customers." What is true regarding only the sale of the extra 100 units?
A) There is no consideration due to an illusory promise.
B) There is no consideration due to a preexisting duty.
C) There is no consideration due to a past consideration.
D) There is consideration due to promissory estoppel.
E) There is consideration due to a legal detriment on both sides.
Q3) A counteroffer terminates the existing offer.
A)True
B)False
Q4) Generally,time of performance cannot be implied.
A)True
B)False
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Chapter 11: Capacity and Legality
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Sample Questions
Q1) If a minor does not disaffirm a contract either during the period of minority or within a reasonable time after reaching the age of majority,the contract is considered clarified.
A)True
B)False
Q2) When a contract involves the purchase of items by a minor,what is the effect of these items being considered a necessary of life?
A) The minor's right to disaffirm will end immediately upon reaching majority.
B) The minor will be obligated to perform the terms of the contract.
C) The minor will be obligated to pay for the items, but will only be obligated to pay the fair value.
D) The minor will owe the duty of restoration upon disaffirmance.
E) The minor must pay full price for the items.
Q3) A shop owner who pays $5,000 "protection money" to a mobster so that his store will not be burned down by the mobster can recover the $5,000.
A)True
B)False
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Page 13
Chapter 12: Genuineness of Assent and Statute of Frauds
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Sample Questions
Q1) What does "incorporation by reference" do in the context of contract law?
A) It identifies the parties to a contract.
B) It dictates that the court apply equitable principles, rather than legal principles, to resolution of any dispute arising between the parties.
C) It makes separate writings part of a contract's terms.
D) It makes the Statute of Frauds inapplicable to the contract.
E) nothing as far as the Statute of Frauds is concerned, because incorporation cannot be used to satisfy the Statute of Frauds
Q2) Where two parties contract for the sale of an old violin,but neither party realizes that it is a rare and extremely valuable violin,this is a mutual mistake of fact allowing rescission.
A)True
B)False
Q3) An integration clause is also known as a segregation clause.
A)True
B)False
Q4) Intent to deceive is also called scienter.
A)True
B)False
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Chapter 13: Third-Party Rights and Discharge
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150 Verified Questions
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Sample Questions
Q1) If a contract requires the occurrence or nonoccurrence of an event before a party is obligated to perform a contractual duty,this is a condition antecedent.
A)True
B)False
Q2) What is the modern view when a legal document refers to the assignment of a contract?
A) Only the rights of one party are assigned, and no duties of either party are assigned.
B) The rights of both parties are assigned, but no duties are assigned.
C) The rights of one party are assigned and that same party's duties are simultaneously delegated.
D) The rights of both parties are assigned, and the duties of both parties are delegated.
E) The rights are assigned only if the obligor consents, and duties are never assigned.
Q3) With an assignment of rights,an obligee generally becomes an assignor when the right is assigned.
A)True
B)False
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Chapter 14: Breach of Contract and Remedies
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143 Verified Questions
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Sample Questions
Q1) A liquidated damages provision will be invalidated if it is considered to be a penalty.
A)True
B)False
Q2) When a court orders specific performance,it:
A) orders monetary damages to be paid by the breaching party to the non-breaching party.
B) modifies the contract terms in order to maximize the fairness to both parties.
C) orders a party to a contract to do exactly what was called for in the contract.
D) orders a party to return any and all consideration received.
E) orders restitution.
Q3) Monetary damages are recoverable only when a material breach of contract has occurred.
A)True B)False
Q4) Rescission is not available for a contract involving undue influence. A)True B)False
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Chapter 15: Digital Law and E-Commerce
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114 Verified Questions
114 Flashcards
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Sample Questions
Q1) The terms of a software click-wrap license are typically negotiable.
A)True
B)False
Q2) An intellectual property licensing arrangement is a method used to transfer certain rights of use,but not ownership,of intellectual property.
A)True
B)False
Q3) Leah has entered into a licensing agreement with Tommy J.Software.Leah has received and accepted the software tendered under the agreement.A few days later she encounters problems with the software and realizes that the program is nonconforming to the contract.Since she has accepted,installed and used the software,does she have any recourse?
Q4) The E-SIGN Act provides that a digital signature can be verified in which of the following ways?
A) by one (1) attesting witness, and one (1) non-attesting witness
B) by expert testimony confirming verification
C) by polygraph analysis
D) by a smart card
E) by alternative dispute resolution
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Chapter 16: Formation of Sales, Lease, and E-Contracts
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127 Verified Questions
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Sample Questions
Q1) Lewis owns an electronics store.On May 1,Marilyn comes into the store and sees a 60-inch television that she likes for $1,000.Marilyn is unsure about purchasing the television.Lewis offers to sell the television to Marilyn for $800 and that the offer will be good until June 1.Lewis writes out the offer and signs it.On May 15,Ann comes into the electronics store and Lewis sells Ann the 60-inch television for $1,000.On May 20,Marilyn returns to the store and tenders $800 to Lewis for the television.Lewis tells Marilyn he has already sold the television.Marilyn then has to buy the same television at another store for $1,200.Does Marilyn have a cause of action for breach of contract? If so,for how much?
A) No, Marilyn cannot sue Lewis because no contract has been breached.
B) Yes Marilyn can sue Lewis for a brand new television.
C) Yes, Marilyn can sue Lewis for the difference between $800 and the price she had to pay of $1,200.
D) Yes, Marilyn can sue Lewis and receive the $1,200 she had to pay for the other television.
E) Yes, Marilyn can sue Lewis and receive $800, the price of the television that Lewis offered.
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Chapter 17: Performance of Sales, Leases and E-Contracts
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128 Verified Questions
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Sample Questions
Q1) A title is voidable if the buyer purchased the goods in a fraudulent manner.
A)True
B)False
Q2) One way to create a destination contract is to include the term F.A.S.
A)True
B)False
Q3) When a buyer of goods has obtained the goods properly from the seller by check but the check is dishonored,what kind of title does the buyer have?
A) voidable
B) void
C) good
D) joint
E) common
Q4) The identification of goods means distinguishing the goods named in the contract from the seller's or lessor's other goods.
A)True
B)False
Q5) What is the most favorable shipping terms to buyers? Why? What about to sellers? Why?
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Chapter 18: Remedies for Breach of Sales and Lease Contracts
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Sample Questions
Q1) Slick Oil Producers contracts to deliver 1,000 barrels of lubrication oil to a buyer on or before June 15.On May 15,Slick informs the buyer that it will be unable to deliver the oil until after August.The buyer demands that Slick perform the contract,but to no avail.Which of the following best describes the buyer's rights in this situation?
A) The buyer must treat the contract as breached on May 15.
B) The buyer must wait until June 15 to determine if there has been a breach.
C) The buyer may treat the contract as breached on May 15.
D) The buyer may wait until June 15 to see if the seller performs.
E) The buyer has the option to either treat the contract as breached on May 15 or wait until June 15 to see if the seller performs.
Q2) The right to replevy is the buyer's or lessee's right to recover goods from a seller or lessor who is wrongfully withholding the goods.
A)True
B)False
Q3) A lessor may reclaim goods in the possession of the lessee if the lessee is in default of the contract.
A)True
B)False
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Chapter 19: Warranties and Product Liability
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) In terms of the conspicuous display of a warranty disclaimer,the courts construe "conspicuous" as noticeable to the plaintiff.
A)True
B)False
Q2) A seller's statement of opinion,also known as ________,________ an express warranty.
A) puffing; creates B) puffing; does not create C) embellishing; creates D) embellishing; does not create E) embellishing; ratifies
Q3) Under the doctrine of conditional liability,a plaintiff may recover punitive damages if the defendant's conduct has been reckless or intentional.
A)True
B)False
Q4) The implied warranty of merchantability applies to the box as well as the breakfast cereal inside the box.
A)True B)False
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Chapter 20: Creation and Transfer of Negotiable Instruments
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Sample Questions
Q1) Both a note and a draft may be payable at a designated future time or on demand. A)True
B)False
Q2) A time draft is payable on sight.
A)True
B)False
Q3) An indorsement can be both blank and qualified.
A)True
B)False
Q4) Is the following instrument negotiable? "On January 3,2012,I promise to pay to the order of Mary Atkins the sum of $500 plus interest at the rate of Citibank's prime rate as of January 3,2012.The interest rate shall be 15% per year after January 3,2012.Further,I will pay the costs of collection if legal action is necessary to collect this amount.Dated this January 3,2008.(Signed)Colleen Smith."
A) Yes, this is a negotiable instrument.
B) No, there is not an unconditional promise or order to pay.
C) No, interest at the legal rates does not constitute a fixed amount.
D) No, the different interest rate after default destroys negotiability.
E) No, the additional promise to pay collection costs destroys negotiability.
Page 22
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Chapter 21: Holder in Due Course and Liability of Parties
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Sample Questions
Q1) Warranties are made when the negotiable instrument is originally issued.
A)True
B)False
Q2) Warranty liability is not dependent on one's signature.
A)True
B)False
Q3) Duress could be a personal or a real defense depending on the type or level of duress.
A)True
B)False
Q4) In terms of the requirements for becoming a holder in due course,notice of a defect is given when the holder has actual knowledge of the defect,has received a notice or notification of the defect,or has reason to know from the facts and circumstances that the defect exists.
A)True
B)False
Q5) The signature on a negotiable instrument can be any name,word,or mark used in lieu of a written signature.
A)True
B)False
23
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Chapter 22: Banking System, E-Money, and Financial Reform
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Sample Questions
Q1) When a customer opens a checking account at a bank,the customer impliedly agrees to keep sufficient funds in the account to pay any checks written against it.
A)True
B)False
Q2) As a holder,the payee of a check can either demand payment or indorse the check to another person.
A)True
B)False
Q3) In connection with a checking account at a bank,what is an overdraft?
A) a check that the bank does not pay, due to insufficient funds in the account
B) a negative balance caused by a bank paying a check when there are insufficient funds in the drawer's checking account
C) a post-dated check for a larger amount than the drawer's checking account balance
D) any kind of loan at a bank where a customer also has a checking account
E) a deposit by a customer that is later returned because of insufficient funds
Q4) A written stop-payment order is effective for one (1)year.
A)True
B)False
Page 24
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Chapter 23: Credit and Secured Transactions
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Sample Questions
Q1) Secured transactions usually involve:
A) one or two parties.
B) one, two or three parties.
C) two or three parties.
D) two, three or four parties.
E) one, two, three or four parties.
Q2) A secondhand buyer of consumer goods that were subject to a purchase money security interest while in the hands of the original buyer takes those goods free of the purchase money security interest:
A) under no circumstances.
B) so long as the original creditor perfected by automatic perfection.
C) so long as the original creditor perfected by filing a financing statement.
D) if the secondhand buyer does not have actual or constructive knowledge of the security interest, gives value for the goods, and buys the goods for personal, family, or household purposes.
E) in all circumstances.
Q3) In a guaranty arrangement,the guarantor is primarily liable on another person's debt.
A)True
B)False
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Chapter 24: Bankruptcy and Reorganization
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Sample Questions
Q1) A debtor and creditor can enter into a reclamation agreement,whereby the debtor agrees to pay the creditor for a debt that is dischargeable in bankruptcy.
A)True
B)False
Q2) The dissolution of a marriage is "stayed" by the filing of a voluntary or involuntary bankruptcy petition.
A)True
B)False
Q3) The "median income test" under the 2005 Act uses national median income statistics as a qualifying measure for Chapter 7 eligibility.
A)True
B)False
Q4) The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires an individual filing for bankruptcy to receive pre-petition and post-petition credit counseling.
A)True
B)False
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Chapter 25: Agency Law
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Sample Questions
Q1) Jon hired Sarah to manage his store.Sarah negligently hit Aimee with a shopping cart,injuring her as a result.Jon is liable to the customer.
A)True
B)False
Q2) Why can an apparent agency be created only through the representations of the principal,but not those of the apparent agent?
Q3) If the principal labels someone an "independent contractor," then that conclusively determines whether independent contractor status exists.
A)True
B)False
Q4) Which of the following is not a type of agency?
A) express agency
B) implied agency
C) apparent agency
D) agency by ratification
E) agency by certification
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Page 27
Chapter 26: Small Business, Entrepreneurship, and Partnerships
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Sample Questions
Q1) Lisa entered into a limited partnership as a limited partner by investing $25,000 in cash.There were fifty limited partners and twenty general partners.The partners elected a management committee that included two of the general partners and Lisa as one of the limited partners.The certificate of limited partnership was completed,but was filed with the wrong office.This partnership then commenced business by entering into numerous transactions.Some of the parties it conducted business with assumed that the partnership was a general partnership,because they searched the records of the secretary of state and found no certificate of limited partnership or any other record.Others assumed that it was a general partnership,but had not actually searched the filings.Still others assumed that it was a limited partnership.Among those who assumed it was a limited partnership,some assumed that Lisa was a general partner and others did not.Discuss Lisa's situation with respect to personal liability for partnership debts.
Q2) A general partnership is a voluntary association of one (1)or more persons for carrying on a business for profit.
A)True
B)False
Q3) Why should the death or withdrawal of a partner result in dissolution of a partnership?
Page 28
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Chapter 27: Corporate Formation and Financing
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Sample Questions
Q1) A promoter is automatically released from liability on a promoter's contract if the newly-formed corporation agrees to be bound by the contract.
A)True
B)False
Q2) "Par value" is usually an accurate measure of a stock's market value when the stock is originally issued.
A)True
B)False
Q3) The members of the board of directors are appointed by upper-level corporate management.
A)True
B)False
Q4) Corporations are treated,in effect,as artificial persons created by the state.
A)True
B)False
Q5) Why should shareholders of a corporation not be held liable for corporate contracts and torts?
Q6) What is the advantage of an "S" Corporation,in comparison to a partnership?
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Chapter 28: Corporate Governance and Sarbanes-Oxley Act
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Sample Questions
Q1) An agreement among shareholders to restrict the ability to sell their shares is considered to be an unreasonable restriction on the ownership of stock,and therefore against public policy.
A)True
B)False
Q2) Corporate officers are responsible for the corporation's day-to-day operations.
A)True
B)False
Q3) Which of the following is not one of the common committees found on boards of directors?
A) audit committee
B) nominating committee
C) litigation committee
D) dividends committee
E) executive committee
Q4) Notice of a shareholders' meeting is required to be given for both annual and special meetings.
A)True
B)False
Page 30
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Chapter 29: Corporate Acquisitions and Multinational Corporations
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Q1) In a merger,the shareholders of the merged corporation always receive stock of the surviving corporation.
A)True
B)False
Q2) A short-form merger procedure is simpler than an ordinary merger.
A)True
B)False
Q3) Go-Fer-It Corporation has made a tender offer to acquire eighty percent of the shares of Beekin Corporation at $58 per share.Because only sixty-eight percent of Beekin's shares have been tendered,the board of directors of Go-Fer-It wants to raise its offer price to $65 per share.If Go-Fer-It raises the offer price to $65,it must:
A) cancel the first tender offer and start over.
B) keep the higher offer open for at least twenty days.
C) pay the $65 to all shareholders who accepted at $58 per share.
D) not complete the merger unless at least ninety percent of Beekin's shares are tendered.
E) do nothing, other than advertise the increase in the offer.
Q4) Explain what a "poison pill" is,and how it affects business dealings.
Page 31
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Chapter 30: Limited Liability Company and Limited Liability Partnership
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Sample Questions
Q1) In a limited liability partnership,there is no tax paid at the partnership level,and all profits and losses are reported on the individual partner's income tax return.
A)True
B)False
Q2) Most states do not restrict the use of limited liability partnerships to certain types of professionals.
A)True
B)False
Q3) Why,in the absence of an agreement to the contrary,should profits and losses of a limited liability company be distributed equally among members,regardless of their capital contribution? Would it not seem more equitable if profits and losses were distributed based on members' capital contributions?
Q4) Terry,Richard,and Connie enter into a "member-managed" limited liability company to make ice cream for distribution.Terry secretly develops his own recipe,and starts competing with the company.When Connie and Richard find out,they inform Terry that they will sue him.Terry warns that he will counterclaim against them for interfering with his business.What should Connie and Richard sue Terry for,and will they win the lawsuit,or will Terry win on his counterclaim?
Page 32
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Chapter 31: Franchise and Special Forms of Business
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Sample Questions
Q1) Licensing occurs when one business or party that owns intellectual property,the licensee,contracts to permit another business or party,the licensor,to use its intellectual property in the distribution of goods,services,software,and digital information.
A)True
B)False
Q2) The holder of a trade secret can sue the offending party for damages and obtain a(n)________ to prohibit further unauthorized use of the trade secret.
A) injunction
B) declaration
C) corroboration
D) dissemination
E) affiliation
Q3) Anyone who uses a franchisor's mark without authorization may be sued for negligence.
A)True
B)False
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Chapter 32: Investor Protection,E-Securities
Transactions,and Wall Street Reform
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139 Verified Questions
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Sample Questions
Q1) Under the Howey test,an arrangement is considered an investment contract if there is an investment of money by an investor in a common enterprise and the investor expects to make profits based on the sole or substantial efforts of the promoter or others.
A)True
B)False
Q2) Securities issued by non-profit issuers are exempt from registration with the SEC.
A)True
B)False
Q3) In 2010,the United States Congress enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act to regulate hedge funds,derivatives,and abusive practices in the securities industry.
A)True
B)False
Q4) An insider is liable for "short-swing" profits,even if he/she has not used inside information.
A)True
B)False
Page 34
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Chapter 33: Antitrust Law
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Sample Questions
Q1) Resale price maintenance occurs when:
A) a retailer refuses to lower its price, even though competitors have lowered their prices.
B) a wholesaler refuses to offer volume discounts to its high-volume customers.
C) a manufacturer sells its products only to those dealers who agree to charge a certain price for the product's resale.
D) a manufacturer sells its products to its dealers for the same price in all states, even though the retail market is much more competitive in some states than in other states. E) competitors agree to sell their products for the same price.
Q2) "OJ Everyday" is one of several national distributors of orange juice to retail grocery stores.OJ Everyday wants to help the Megafood retail stores by selling the orange juice to them at a lower price than it sells to other retailers.Because OJ Everyday knows that this would be illegal price discrimination,it provides marketing assistance to Megafood,but to no one else.For example,OJ Everyday runs national advertisements that include statements that state that Megafood has a special system to ensure that OJ Everyday juice is always fresh.These advertisements imply,but do not state,that other stores might sell outdated items.Discuss this situation.
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Chapter 34: Consumer Safety, Consumer Financial
Protection, and Environmental Protection
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Sample Questions
Q1) The Drug Amendment to the Food,Drug,and Cosmetic Act,enacted in 1962,gives the Food and Drug Administration broad powers to license new drugs in the United States.
A)True
B)False
Q2) The United States Congress enacted the Truth-in-Lending Act (TILA)in 1968 as part of the Consumer Credit Protection Act (CCPA).
A)True
B)False
Q3) Which of the following best describes the overall system of pollution regulation in the United States?
A) It is exclusively based on federal law.
B) It is exclusively based on state law, with minimal federal oversight.
C) It is exclusively based on state law, but with considerable federal oversight.
D) It is primarily based on federal law, but includes considerable state law as well.
E) It consists of a series of uniform state laws.
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Chapter 35: Labor, Worker Protection, Employment, and Immigration Law
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Sample Questions
Q1) The Consolidated Omnibus Budget Reconciliation Act of 1985 provides that the employer must cover the cost for an employee of a private employer to continue his or her group health insurance after the voluntary termination of employment.
A)True
B)False
Q2) Today,approximately forty percent of private-sector wage and salary workers belong to labor unions.
A)True
B)False
Q3) The United States Department of Labor permits employers to pay less than the minimum wage to students and apprentices.
A)True
B)False
Q4) Before a strike,a union must give a 30-day notice to the employer that the union intends to strike.
A)True B)False
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Chapter 36: Equal Opportunity in Employment
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Q1) Which of the following is least likely to succeed as a claim under the Americans with Disabilities Act?
A) a man who is unable to walk, but who can perform all of the requirements of a job, although in some cases it might take him a little longer to complete the work compared to a person who can walk
B) a man who is not hired because of a past drug habit that he has avoided for two years
C) a woman who has a documented history of severe asthma and who was not hired for a job in Denver for that reason, although she has not experienced any problems since moving from New Orleans to Denver
D) a woman who has a bad back that prevents her from being able to work at the minimum speed required on an assembly line
E) a man who wears unusual-looking, thick glasses to correct a rare vision problem. This person has normal vision with the glasses, but most people falsely assume that he cannot see normally, even with the glasses
Q2) Under common law,employers could terminate an employee for any reason.
A)True
B)False
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Chapter 37: Personal Property, Bailment, and Insurance
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Sample Questions
Q1) Heating systems and storm windows are examples of integrated property.
A)True
B)False
Q2) The beneficiary of a life insurance policy is the person whose life is insured.
A)True
B)False
Q3) With disability insurance,the payments made to the insured are generally based on the degree of disability.
A)True
B)False
Q4) Real property includes property that is permanently attached to land.
A)True
B)False
Q5) In a bailment,the owner of the property is the bailee.
A)True
B)False
Q6) If properly created,a bailment can exist for either real or personal property.
A)True
B)False
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Chapter 38: Real Property, Landlord-Tenant Law, and Land Use Regulation
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Sample Questions
Q1) Plant life growing on land is considered real property,whether natural or cultivated.
A)True
B)False
Q2) An "easement by grant" automatically occurs when land-locked property is sold.
A)True
B)False
Q3) If a tenant stops paying rent,the landlord may claim a constructive eviction and have the tenant removed from the premises.
A)True
B)False
Q4) Once a zoning ordinance is properly passed,it cannot be challenged or overturned.
A)True
B)False
Q5) If a person owns real property in fee simple,his or her ownership has no limitation on inheritability.
A)True
B)False
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Chapter 39: Family Law, Wills, and Trusts
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Sample Questions
Q1) The Defense of Marriage Act bars same-sex couples from enjoying federal benefits (for example,Social Security benefits due the spouse of a married couple).
A)True
B)False
Q2) A(n)________ adoption occurs when there is a private arrangement between biological and adoptive parents of a child.
A) independent
B) dependent
C) principal
D) agency
E) welfare
Q3) When determining child custody,the court will consider the "best interests of the child" before considering the wishes or preferences of the child.
A)True
B)False
Q4) A court decree of divorce need not be obtained to end a common law marriage.
A)True
B)False
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Chapter 40: Accountants' Liability
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Sample Questions
Q1) Generally accepted accounting principles specify the methods and procedures that must be used to conduct audits.
A)True
B)False
Q2) There are three (3)major rule of liability that a state can adopt in determining whether an accountant is liable in negligence to third parties: (1)the Supramares doctrine; (2)Section 552 of the Restatement (Second)of Torts; and (3)the reasonableness standard.
A)True
B)False
Q3) In a limited liability partnership,all of the partners are limited partners who lose only their capital contribution in the LLP if the LLP fails.
A)True
B)False
Q4) Where an accountant has been found liable for actual or constructive fraud,the client may bring a criminal lawsuit and recover any damages proximately caused by that fraud.
A)True
B)False
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Chapter 41: International and World Trade Law
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Source URL: https://quizplus.com/quiz/11025
Sample Questions
Q1) The UN General Assembly is composed of fifteen (15)member nations,five (5)of which are permanent members.
A)True
B)False
Q2) Mandy is the chief executive office of ToughTred,Inc.,a company that manufactures a special all-terrain tire that her company sells to construction companies and foreign governments (with United States approval)for industry and defense vehicles.Japan has made a very large purchase,but has not paid for the contracted goods.Mandy seeks your advice.What are the options available to ToughTred,Inc.?
Q3) Under the doctrine of sovereign immunity,________ are granted immunity from suits in courts in other countries.
A) intellectual property violators
B) individuals
C) businesses
D) countries
E) individuals, businesses and countries
Q4) The WTO has become the world's most important trade organization.
A)True
B)False
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