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200 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)
The law establishes rights, duties, and privileges that are consistent with the values of society.
True
True or False
A federal law that conflicts with the U.S. Constitution will be deemed unconstitutional.
True
True or False
To Pete, the written law of a particular society at a particular time is most significant. Pete is
b. a legal rationalist.
a. a legal positivist.
b. a legal rationalist.
c. a legal realist.
d. a person who adheres to the natural law tradition.
Georgia enacts a state law that violates the U.S. Constitution. This law
d. cannot be enforced.
a. can be enforced by Georgia only.
b. can be enforced by the federal government only.
c. can be enforced by the United States Supreme Court only.
d. cannot be enforced.
To foster ethical behavior among employees, managers should apply ethical standards to which they are committed.
True
True or False
Corporate decisions affect only those who own, operate or work for the company.
False
True or False
Alpha Telecommunications, Inc., needs to reduce costs by downsizing. In determining which employees to let go, a business’s primary concern is always
d. none of the above.
a. its ethical duty to long-term employees.
b. its profit margin.
c. the legality of discharging older workers.
d. none of the above.
Ace Company manages its employees’ retirement benefit plan. With respect to this plan, Ace has
a. a fiduciary duty.
a. a fiduciary duty.
b. a subsidiary duty.
c. a utilitarian duty.
d. no duty.
An independent contractor may act in the capacity of an agent.
True
True or False
An agent must notify the principal of all material matters that come to his/her attention regarding the subject matter of the agency.
True
True or False
An agent’s authority must be express or implied for the agent’s act to bind a principal.
False
True or False
Jay holds himself out as possessing special accounting skills. As a agent, he must exercise the degree of skill or care expected of
a. a person having those skills.
a. a person having those skills.
b. an average, unskilled person.
c. a reasonable person.
d. the principal.
Cody contracts with Drew to act as her agent in a fraudulent marketing scheme. Cody does not successfully complete the scheme. Drew can recover from Cody for
d. none of the above.
a. breach of contract.
b. breach of implied warranty.
c. breach of the duty of performance.
d. none of the above.
Louis and Maria may create an agency relationship for
b. a legal purpose only.
a. a business purpose only.
b. a legal purpose only.
c. any purpose.
d. no purpose.
A sole proprietorship is automatically dissolved on the death of the owner.
True
True or False
There are no federal laws governing franchises.
False
True or False
Franchisees ordinarily pay separate fees for all of the products they are obligated to purchase from the franchisor.
True
True or False
Tina owns United Enterprises, a sole proprietorship. In a sloe proprietorship, the liability of the owner is
d. unlimited.
a. limited to the extent of his or her original investment.
b. limited to the extent of his or her original investment plus any subsequent capital expenditures.
c. limited by state statute and varies from state to state.
d. unlimited.
Consumer Products Company conducts a chain-style business operation type of franchise. This involves the transfer to Dan, one of its franchisees, of
b. a trade name.
a. a license.
b. a trade name.
c. the ingredients or formula to make a particular product.
d. the ownership of the business.
Jill invests in a franchise with Kandy Shops Corporation. With respect to a franchise, a franchisee may have legal protection under
a. federal and state law.
a. federal and state law.
b. federal law only.
c. neither federal nor state law.
d. state law only.
Agreements to form a general partnership must be written.
False
True or False
A partner has a right to complete information about the conduct of partnership business.
True
True or False
A limited liability partnership can be formed in virtually any state.
True
True or False
Carol is a partner in Delta Accounting Services. Carol can inspect
a. all of Delta’s book and records.
a. all of Delta’s book and records.
b. Delta’s books and records only as the firms’ management permits.
c. Delta’s books and records only for a reasonable purpose.
d. Delta’s books and records relating to her capital contribution.
Dave and Eve are partners in First-Place Athletic Supplies, which sells sports equipment. Dave manages the business. Unless the partnership agreement states otherwise, Dave is
d. not entitled to compensation.
a. entitled to compensation in proportion to its effect on the business.
b. entitled to compensation in proportion to the effort expended.
c. entitled to compensation in proportion to the effort required.
d. not entitled to compensation.
Biotech Investments, LP, is a limited partnership. The partners sign an agreement purporting to state how the firm’s profits and losses are to be divided. . The profits and losses of the firm will be divided
a. according to the agreement.
a. according to the agreement.
b. equally, despite the agreement.
c. in proportion to capital contributions, despite the agreement.
d. in proportion to the partners’ participation in the firm’s business, despite the agreement.
A limited liability company offers the limited liability of a corporation.
True
True or False
In a limited liability company, members do not have to participate in its management.
True
True or False
There must be an operating agreement for a limited liability company to exist.
False
True or False
Bill is considering forms of business organization for his Web site development firm. Most states require a limited liability company to have at least
b. one member.
a. no members.
b. one member.
c. two members.
d. three members, including one general partner.
Fred is considering forms of business organization for his general-merchandising retail stores. One advantage of the limited liability company form, with respect to tax options, it its
a. flexibility.
a. flexibility.
b. lack of accountability.
c. limited liability.
d. rigidity.
Web Services, LLC, is a member-managed limited liability company. If the law in Wed’s state is like the law in most states, unless the members have agreed otherwise, decisions are made by
a. majority vote.
a. majority vote.
b. minority vote.
c. plurality vote.
d. seniority vote.
An individual can become an owner of a corporation only by purchasing the minimum number of shares of stock specified in the bylaws
False
True or False
A public corporation is the same as a publicly-held corporation.
False
True or False
A corporate name cannot be the same as, or even deceptively similar to, the name of an existing corporation doing business in the state.
True
True or False
American Goods, Inc., is a corporation. Responsibility for the overall management of American Goods is entrusted to
a. the board of directors.
a. the board of directors.
b. the officers and managers.
c. the owners.
d. the shareholders.
Beth and Cody want to form a corporation to market MP3 players and products. The first step in the incorporation procedure is to
d. select a state in which to incorporate.
a. file the articles of incorporation.
b. hold the first organizational meeting.
c. obtain a corporate charter.
d. select a state in which to incorporate.
Sam is a shareholder of Urban Sales, Inc. (USI). A court might hold Sam personally liable for USI’s debts
a. if Sam’s personal interests are commingled with USI’s interests to the extent USI has no separate identity.
a. if Sam’s personal interests are commingled with USI’s interests to the extent USI has no separate identity.
b. if USI calls more than the required number of shareholders’ meetings.
c. if USI is overcapitalized.
d. under no circumstances.
Shareholders have no right to inspect corporate books and records.
False
True or False
A person must be a shareholder of a corporation to serve as a director.
False
True or False
Persons whose names appear on a corporation’s shareholder records as owners are ordinarily entitled to vote at a shareholders’ meeting.
True
True or False
Sam and Tina incorporate their business as U.S. Products, Inc. The first board of directors may be appointed by the firm’s
b. incorporators.
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Rosa and Sam are directors of Technicorp, Inc. The right of Rosa and Sam to be notified of special meetings of the board is the right to
c. participation.
a. compensation.
b. indemnification.
c. participation.
d. preemption.
Dave and Edie are shareholders of Fast Food, Inc. As shareholders, they must approve
a. amending the articles of incorporation.
a. amending the articles of incorporation.
b. declaring a corporate dividend.
c. hiring a chief executive officer.
d. issuing additional shares.
The principle of comity is based primarily on international treaties.
False
True or False
Restrictions on exports may include quotas.
True
True or False
Congress cannot impose taxes on imports.
False
True or False
Tom is a citizen of the United States, which enters into international treaties. These treaties govern relations among
a. the United States and other nations.
a. the United States and other nations.
b. Tom and other citizens of the United States.
c. Tom and the United States only.
d. Tom only.
Algeria seizes the property of Best Shipping Company, a private business, for a proper public purpose and pays the owners just compensation. This is
d. an expropriation.
a. a confiscation.
b. a dumping.
c. a licensing.
d. an expropriation.
Eagle, Inc., a US firm, contracts with Fong, Ltd., a Hong Kong firm, allowing Fong to use and profit from Eagle’s patented products. This is
d. licensing.
a. a distribution agreement.
b. a joint venture.
c. direct exporting.
d. licensing.
An independent contractor is one whose physical conduct is controlled, or subject to control by his employer.
False
True or False
Ethical codes of conduct, more than management's behavior, set the ethical tone of a firm.
False
True or False
A limited liability company is a citizen of every state of which its members are citizens.
True
True or False
To a corporation, bonds represent ownership.
False
True or False
The law establishes rights, duties and privileges that are consistent with the values of society.
True
True or False
A general partner is personally liable for partnership debts if the assets of the business are insufficient to pay its creditors.
True
True or False
Officers, but not directors, are expected to be informed on corporate matters.
False
True or False
Corporate officers can be empowered to make decisions relating to ordinary corporate affairs.
True
True or False
Equity is a branch of unwritten law that seeks to award damages in most cases.
False
True or False
Simply obeying the law does not fulfill all ethical obligations.
True
True or False
An agent's implied authority may be conferred by custom.
True
True or False
An automobile dealership is an example of a chain-style type of franchise.
False
True or False
In a limited liability limited partnership, the liability of a general partner is limited to the amount of capital he or she invests in the partnership.
False
True or False
In most states, one of the requirements for a sole proprietorship is that the firm must file a certificate of proprietorship with the appropriate state office.
False
True or False
In a limited liability company, members cannot participate in it management.
False
True or False
Generally, a promoter is personally liable on preincorporation contract
True
True or False
If a stock certificate is lost or destroyed, the shareholder's ownership interest in the corporation is lost with it.
False
True or False
Acting in good faith gives a business firm a better chance of defending its actions in court.
True
True or False
State decisis is a doctrine obligating judges to follow precedents established with their jurisdictions.
True
True or False
Statutory law includes only state statutes.
False
True or False
Apparent ratification authority exists if a principal causes a third party to reasonably believe an agent has authority to act.
True
True or False
Franchisees ordinarily pay a lump-sum fee for a franchise license.
True
True or False
Each general partner can exercise all implied powers reasonably necessary to carry on the firm's business.
True
True or False
Any power set out in a corporation's charter or bylaws is ultra vires.
False
True or False
Cumulative voting is a method of voting designed to allow minority shareholders representation on the board of directors.
True
True or False
In studying business law, Professor Smith's students also study ethics in a business context. Ethics is the study of what constitutes
d. right or wrong behavior
a. financially rewarding behavior
b. legal behavior
c. religious behavior
d. right or wrong behavior
Civil law is concerned with disputes between persons and
a. other persons and between citizens and their governments.
a. other persons and between citizens and their governments.
b. other persons and between persons and the public as a whole.
c. other persons only.
d. the public as a whole only.
Carl sells Direct Marketing Enterprises, a sole proprietorship, to Eve. This is a transfer of
d. the ownership of the business
a. a license
b. a trade name
c. the ingredients or formula to make a particular product.
d. the ownership of the business.
The shares of Capital Corporation are publicly traded in securities markets. Capital Corporation is
d. a publicly held corporation
a. a private corporation
b. a privately held corporation
c. a public corporation
d. a publicly held corporation
Delta Equity Corporation provides other firms with capital to expand operations. If Delta strictly complies with existing laws, the firm will
c. fulfill some business ethics obligations
a. fulfill all business ethics obligations
b. fulfill no business ethics obligations
c. fulfill some business ethics obligations
d. not need to fulfill any business ethics obligations
In Alpha v. Beta, a state supreme court held a minor could cancel a contract for the sale of a car. Now a trial court in the same state is deciding Delta v. Gamma, a case with similar facts. Under the doctrine of stare decisis, the trial court is likely to
a. allow the minor to cancel the contract.
a. allow the minor to cancel the contract.
b. disregard the previous case.
c. order the minor to cancel the contract.
d. require the minor to fulfill the contract.
Ira buys an exclusive territory in which he is authorized to set up a plant to manufacture Smooth Yogurt Company products. After receiving the essential formula, Ira beings manufacturing. This is
c. a manufacturing or processing-plant franchise.
a. a chain-style business operation franchise.
b. a distributorship franchise.
c. a manufacturing or processing-plant franchise.
d. none of the above.
Irma, Jim and Kelly are the directors of Liberty Corporation. Liberty has nine officers and forty-six shareholders. Dividends are ordered by the firm's
a. board of directors.
a. board of directors.
b. incorporators.
c. officers.
d. shareholders.
Bob, a salesperson at a Carpets Galore store, tells Dina, a customer, "Buy your carpet here, and I'll install it for half of what the store would charge." Dina buys the carpet, which Bob installs for half the store's price. Bob keeps the money. Bob has breached
b. the duty of loyalty
a. no duty.
b. the duty of loyalty.
c. the duty of notification.
d. the duty of obedience.
In a suit against Adam, Beth obtains a remedy, which is the means given to a party
c. to recover a right or to redress a wrong.
a. only to recover a right.
b. only to redress a wrong.
c. to recover a right or to redress a wrong.
d. none of the above.

International Manufacturing Corporation's side payment to government officials in exchange for favorable business contracts in foreign countries are considered, in the United States,
c. illegal and unethical
a. illegal only.
b. unethical only.
c. illegal and unethical
d. none of the above.
As a promoter for ABC Enterprises Corporation, Don cannot
b. issue ABC stock.
a. buy land for corporate officers.
b. issue ABC stock.
c. order stationery for ABC.
d. solicit subscriptions for ABC stock.
Kay transfer shares of stock she owns to Luis. A shareholders' meeting takes place before Luis's ownership is entered in the corporate stock record book. The person entitled to vote at the meeting is
a. Kay only.
a. Kay only.
b. Luis only.
c. Kay and Luis.
d. neither Kay or Luis.
Mary owns 500 shares of common stock in National Company. As a shareholder of record, Mary owns a proportionate interest with regard to
a. control, earnings and net assets.
a. control, earnings and net assets.
b. control only.
c. earnings and net assets only.
d. neither control nor earnings and net assets.
Dan is considering forms of business organization for his financial advisory firm. Like most states, Dan's state requires that to form a limit liability company, he must file with a central state agency
c. articles of organization
a. articles of certification.
b. articles of formation.
c. articles of organization.
d. no specific documents.
Tony is a partner in United Amusement, a new partnership. A United deby comes due. Tony is
d. personally liable to the full extent of the debt.
a. not liable for the debt.
b. only liable for the debt up to the amount of his capital contribution.
c. personally liable only to the extent the other partners do not pay.
d. personally liable to the full extent of the debt.
National Computer Corporation employs Cynthia as an agent. NCC gives her an exclusive territory in which to sell NCC products. NCC cannot compete with her in that territory under the duty of
b. cooperation.
a. compensation.
b. cooperation.
c. indemnification.
d. reimbursement.
Bob, the owner of Best Bookkeeping, a sole proprietorship, wishes to increase his business capital while maintaining control. This can best be accomplished by
a. borrowing funds.
a. borrowing funds.
b. bringing in partners.
c. issuing stock.
d. selling the business.
Mary works in the public relations department of National Sales Company. Her job includes portraying National's activities in their best light. In this context, ethics consist of
b. the same moral principles that apply to non-business activities.
a. a different set of principles from those that apply to other activities.
b. the same moral principles that apply to other activities.
c. those principles that produce the most favorable financial outcome.
d. whatever saves National/s "face".
Areas of the law not governed by statutory or administrative law are
a. governed by the common law.
a. governed by the common law.
b. open to each individual's own interpretation.
c. regulated by the states under the US Constitution.
d. subject to local ordinance.
Carol is a partner in Delta Accounting Service. Carol can inspect
a. all of Delta's book and records.
a. all of Delta's book and records.
b. Delta's books and records only as the firm's management permits.
c. Delta's books and records only for a reasonable purpose.
d. Delta's books and records relating to her capital contribution only.
Lee is a limited partner in Metro Contractors, a limited partnership, which cannot pay its debts. Lee is personally liable for the debts
c. to the extent of his capital contribution.
a. in proportion to the number of partners in the firm.
b. to no extent.
c. to the extent of his capital contribution.
d. to the full extent of the debts.
American Products, LLC, is a limited liability company. Rather than distribute its profits to its members, American wants to reinvest the profits in its business. For this reason, American may prefer to be taxed as
a. a corporation.
a. a corporation.
b. a partnership.
c. a sole proprietorship.
d. a syndicate.
The United States Supreme Court cannot hold acts of Congress unconstitutional.
False
True or False
When state regulations impinge on interstate commerce, commerce must yield to the regulations.
False
True or False
The Bill of Rights protects individuals against various types of interference by the federal government.
True
True or False
American Business Coalition (ABC), a political lobbying group, wants a certain policy enacted into law. If ABC’s policy conflicts with the U.S. Constitution, a law embodying it can be passed by
d. none of the above.
a. any state legislature and Congress.
b. any state legislature but not Congress.
c. Congress but not any state legislature.
d. none of the above.
Ron, the president of Standard Business Corporation, claims that an action by the state of Texas infringes on rights guaranteed by the Bill of Rights. Most of these rights apply to the states under
c. the equal protection clause of the Fourteenth Amendment.
a. the commerce clause.
b. the due process clause of the Fourteenth Amendment.
c. the equal protection clause of the Fourteenth Amendment.
d. none of the above.
Cordial Drinks, Inc., markets alcoholic beverages. A federal regulation bans the disclosure of the alcohol content of liquor on Cordial’s labels and those of other marketers. A court would likely hold this regulation to be
a. an unconstitutional restriction of speech.
a. an unconstitutional restriction of speech.
b. constitutional under the First Amendment.
c. justified by the need to protect individual rights.
d. necessary to protect national interests.
Federal courts are superior to state courts.
False
True or False
Generally, a state court can exercise jurisdiction over a nonresident by showing that he or she had minimum contacts with the state.
True
True or False
The United States Supreme Court has appellate authority over all cases decided in the state courts.
False
True or False
Gail is a resident of New Hampshire. In Vermont, Gail enters into a contract with Heather, a resident of Vermont. When Gail breaches the contract, Heather files a suit against Gail in Vermont. Regarding Gail, Vermont can
b. exercise in personam jurisdiction.
a. exercise diversity jurisdiction.
b. exercise in personam jurisdiction.
c. exercise in rem jurisdiction.
d. not exercise jurisdiction.
Home Appliances, Inc., files a suit against Retail Sales Corporation over a contract between them. Before the trial begins, Retail can obtain from Home
a. access to related documents in Home’s possession.
a. access to related documents in Home’s possession.
b. accurate information about Home’s trade secrets.
c. an admission of the truth of matters not related to the trial.
d. all of the above.
The case of Aaron v. Baker Co. is heard in a Minnesota district court, which has original jurisdiction. The case of NuCorp, Inc. v. Olson is heard in a Minnesota court of appeals, which has appellate jurisdiction. The difference between original and appellate jurisdiction lies in
c. whether a case is being heard for the first time.
a. the subject matter of the cases that a court can decide.
b. whether a case is brought by a citizen or by a business entity.
c. whether a case is being heard for the first time.
d. whether a court is exercising in personam or in rem jurisdiction.
An assault may be committed when a person acts in a way so as to create an apprehension of offensive contact in the distant future.
True
True or False
An individual’s right to privacy includes the exclusive use of his or her likeness.
True
True or False
A reasonable person standard determines whether allegedly negligent conduct resulted in a breach of a duty of care.
True
True or False
Kate believes that George is about to hit her. To prevent harmful contact in dangerous situations, a person may use
c. force that is reasonably necessary.
a. any force.
b. any force, except force that is likely to cause death.
c. force that is reasonably necessary.
d. no force.
Larry is sued for assault and battery. Larry can raise defense of property as a defense to the charge of
c. assault or battery.
a. assault only.
b. battery only.
c. assault or battery.
d. none of the above.
Leo hears Mona falsely accuse Nick of stealing from their employer. The statement is defamatory
a. because a third party heard it.
a. because a third party heard it.
b. only if Nick suffers emotional distress.
c. only if the statement is also published in the media.
d. only if the statement was made in an annoying manner.
Title warranties arise automatically in most sales contracts.
True
True or False
A contract cannot contain both a warranty of merchantability and a warranty of fitness for a particular purpose.
False
True or False
To succeed in a product liability suit alleging a design defect, a plaintiff must show there is a reasonable alternative design.
True
True or False
Pat, a salesperson for Quality Textiles, Inc., shows Rosa, a fabric buyer for Style Clothing Company, samples of cloth, stating that any shipment will match the samples. This statement is
a. an express warranty.
a. an express warranty.
b. an implied warranty.
c. a warranty of title.
d. puffing.
Great Goods, Inc., sells fifty MP3 players to Happy Stores, Inc. To avoid liability for most implied warranties, Great Goods should state in writing the players are sold
a. as is.
a. as is.
b. for cash.
c. in perfect condition.
d. with no known defects.
Allrite Products, Inc., manufactures microwave ovens. Jill discovers her Allrite oven is defective. Jill sues the manufacturer for product liability based upon negligence. To win, Jill must show
d. Jill suffered an injury caused by the defect.
a. Allrite sold the oven to Jill.
b. the “defect” was a commonly known danger.
c. Jill knew and appreciated the risk caused by the defect.
d. Jill suffered an injury caused by the defect.
The President of the United States creates administrative agencies by issuing signed executive orders.
False
True or False
A subpoena duces tecum is an order to an individual or organization to hand over certain records, papers or books.
True
True or False
Final administrative rules do not have binding legal effect.
False
True or False
To notify the public of a proposed rule, the Nuclear Regulatory Commission, like other federal agencies, publishes it
c. in the Federal Register.
a. in a nationally distributed newspaper.
b. in a trade journal available to members of the industry.
c. in the Federal Register.
d. on a public television station.
Dina is a witness in a controversy involving the Environmental Protection Agency. Dina can be compelled to appear before an administrative law judge is she is served with
c. a subpoena ad testificandum.
a. an order for specific performance.
b. a rule for parol evidence.
c. a subpoena ad testificandum.
d. a subpoena duces tecum.
The U.S. Bureau of Alcohol, Tobacco and Firearms conducts searches of certain businesses. This agency and other administrative agencies can conduct warrantless searches in
b. highly regulated industries.
a. all industries.
b. highly regulated industries.
c. no industries.
d. newly regulated industries only.
Intentionally distributing pirated, copyrighted works to others is a crime only if profit is realized from the exchange.
False
True or False
A fanciful use of ordinary words may be trademarked.
True
True or False
The law does not protect the use of a device to identify a product.
True
True or False
Jill develops a new espresso machine, which she names “Quik Shot.” She also writes the operating manual to be included with each final product. Jill could obtain trademark protection for
b. the name only.
a. the espresso machine only.
b. the name only.
c. the operating manual only.
d. the espresso machine, the name and the operating manual.
Original, Inc., sell it product under the name “Phido.” Quik Corporation begins to market an identical product under the name “Fido.” This is
c. trademark infringement.
a. copyright infringement.
b. patent infringement.
c. trademark infringement.
d. none of the above.
Standard Corporation cannot claim a trademark in the phrase “Quality is Standard” if the phrase
c. is generic.
a. has a secondary meaning.
b. is descriptive.
c. is generic.
d. is memorable.
A crime punishable by imprisonment in a federal or state penitentiary for any period of time is a misdemeanor.
False
True or False
Larceny may be distinguished from robbery by the fact that larceny relies on stealth while robbery relies on fear and force.
True
True or False
It is a sufficient defense to a charge of embezzlement that the embezzler intended to return the embezzled property eventually.
False
True or False
Gail is a private lender who is charged with filing false claims in bankruptcy proceedings against her debtors. The standard of proof to find a defendant who has been charged with a crime guilty is
b. beyond a reasonable doubt.
a. beyond all doubt.
b. beyond a reasonable doubt.
c. clear and convincing evidence.
d. a preponderance of the evidence.
Adam is charged with the commission of a crime. To find criminal liability, most crimes require
c. a specified state of mind and the performance of a prohibited act.
a. a specified state of mind or intent only.
b. the performance of a prohibited act only.
c. a specified state of mind and the performance of a prohibited act.
d. none of the above.
Beth, an employee of City Bank, is charged with embezzlement, which requires
a. fraudulently appropriating another’s property.
a. fraudulently appropriating another’s property.
b. obtaining lawful possession of property.
c. physically taking property from its owner.
d. the use of force or fear.
The employment-at-will doctrine no longer applies to employment relationships.
False
True or False
A union shop is a workplace that does not require union membership as a condition of employment.
True
True or False
Employers are not required to establish retirement plans for their employees.
True
True or False
General Industrial Corporation (GIC) employs workers at ten locations in three states. If an employment relationship is considered subject to an implied contract, GIC’s discharge of an employee outside the terms of the contract may result in
d. GIC’s liability for damages
a. discontinuance of the worker’s health-plan coverage.
b. the employee’s complaint to a government agency.
c. the employee’s suit for breach of contract.
d. GIC’s liability for damages
National Industries, Inc., and its employees are subject to federal labor law, which is concerned with the rights of
c. the employees and the employer.
a. the employees only.
b. the employer only.
c. the employees and the employer.
d. none of the above.
During a union election campaign at General Construction Corporation, the employer can, without monitoring or regulating by the National Labor Relations Board, threaten employees with
d. none of the above.
a. a layoff only.
b. a layoff or a reduction in benefits and wages.
c. a reduction in benefits and wages only.
d. none of the above.
A employer can be liable for an employee’s online harassment.
True
True or False
Title VII applies to employers affecting interstate commerce with at least five employees.
False
True or False
To maintain an action against an employer on the basis of disparate-treatment discrimination, a person must show that he or she is a member of a protected class.
True
True or False
Auto Repair Shop does not take any action to prevent sexual harassment of its employees. Auto Repair may be liable for such harassment by
b. a customer or an employee.
a. a customer only.
b. a customer or an employee.
c. an employee only.
d. neither a customer nor an employee.
Lloyd and Molly are employees of New Tech Corporation. They have the same job. Under the Equal Pay Act, New Tech can legitimately pay Lloyd more than Molly on the basis of
b. Lloyd’s greater production or seniority.
a. Lloyd’s greater production only.
b. Lloyd’s greater production or seniority.
c. Lloyd’s greater seniority only.
d. neither Lloyd’s greater production nor his greater seniority.
Pam applies for a job at a Quik Mart store, but is not hired due to her gender. Pam files a suit against Quik Mart. A prima facie case is established. Pam
d. wins the suit unless Quik Mart asserts an appropriate defense.
a. loses the suit regardless of Pam’s response.
b. loses the suit unless Pam asserts an appropriate defense.
c. wins the suit regardless of Quik Mart’s response.
d. wins the suit unless Quik Mart asserts an appropriate defense.
A warranty of title cannot be disclaimed.
False
True or False
OSHA, the Occupational Safety and Health Administration, receives a complaint of an allegedly unsafe condition in a workplace from an employee. OSHA is allowed to inspect to evaluate the complaint
True
True or False
It is a crime to use the mail to defraud the public.
True
True or False
The Securities and Exchange Commission makes a new rule regarding the category of persons who may represent regulated entities before the Commission in administrative hearings. This rule must be made according to the Due Process provisions of Administrative Procedures Act.
False
True or False
Promises of face made during the bargaining process are express warranties.
True
True or False
All unemployed workers are eligible for unemployment compensation.
False
True or False
The U.S. Constitution explicitly authorizes Congress to establish administrative agencies.
False
True or False
Administrative agencies must rely almost exclusively on the voluntary statements of interested third parties to fulfill the agencies' fact-gathering function.
False
True or False
A crime of bribery can be committed even if the recipient of the offer does not do what the person offering the bribe asks.
True
True or False
There are no limits on the information that an administrative agency can demand as part of an investigation.
False
True or False
An administrative agency uses informal rule making to enact substantive regulations. It is required to hold hearings and publish a report of the testimony before enacting a final rule.
False
True or False
Larceny may be distinguished from robbery by the fact larceny relies on stealth while robbery relies on fear and force.
True
True or False
Assumption of the risk is a defense that may be raised in a product liability suit based on negligence.
True
True or False
Terminating an employee who uses drugs violates the Americans with Disabilities Act of 1990.
False
True or False
The procedural rule-making processes required under the Administrative Procedures Act ensure regulated entities receive due process under the U.S. Constitution.
False
True or False
The Fair Labor Standards Act of 1938 requires a minimum wage for some employees in interstate commerce.
False
True or False
Privity of contract between the plaintiff and the defendant is not required to bring a suit based on product liability.
True
True or False
After every strike workers have the right to return to their jobs.
False
True or False
A merchant can disclaim an implied warrant of merchantability.
True
True or False
Embezzlement can only be committed by a trespassory taking of property from the possession of another.
False
True or False
Administrative agency adjudicative hearings are always held before a jury.
False
True or False
Executive administrative agencies are represented on the president's cabinet.
True
True or False
Only the government prosecutes criminal defendants.
True
True or False
In general, governmental agencies must conduct all meetings in public.
True
True or False
A regulated entity may appeal directly to the U.S. District Court to contest the decision of an administrative law judge.
False
True or False
Doug gains access to government records and alters certain dates and amounts in his favor. This is
b. forgery
a. embezzlement
b. forgery
c. larceny
d. robbery
AAA Appliance salespersons tell potential customers AAA products are "excellent." This is
d. puffing
a. an express warranty
b. an implied warranty
c. a warranty of title
d. puffing
A failure of the Federal Bureau of Investigation to comply with a reasonable request under the Freedom of Information Act (FOIA) may be challenged in
a. a federal district court
a. a federal district court
b. a hearing before the U.S. Freedom of Information Agency
c. a meeting with Congress's FOIA subcommittee
d. a special conference with the president of the United States
The Internal Revenue Service (IRS) wants to review the financial reports of Jewel Corporation. The IRS can gain access to the reports through
c. Jewel's consent or a subpoena
a. a subpoena only
b. Jewel's consent only
c. Jewel's consent or a subpoena
d. neither jewel's consent nor a subpoena
United Company replaces Vera, a forty-five-year-old employee, with Wendy. Vera files a suit against United under the Age Discrimination in Employment Act. To establish a prima facie case, Vera must show she is
d. qualified for the position
a. deserving of higher pay than Wendy
b. generally more dependable than Wendy
c. older than Wendy
d. qualified for the position
The National Transportation Safety Administration uses notice-and-comment rulemaking. This includes
a. notice, a comment period, and publication of the final rule
a. notice, a comment period, and publication of the final rule
b. notice only
c. opportunity for comments by interested parties only.
d. publication of a final draft only.
Neil goes to Oil Shop to change the oil in his car. Pat, the service technician learns Neil plans to take a trip and advises the use of a certain type of oil. The oil breaks down during the trip, damaging the car. Neil may recover from Oil Shop for breach of
b. an implied warranty of fitness for a particular purpose
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
The Merit Systems Protection Board issues a rule. Like other administrative agencies' legislative rules, or substantive rules, this rule is as
a. binding as a law passed by Congress
a. binding as a law passed by Congress
b. persuasive as an expert's opinion
c. suggestive as an newspaper's editorial
d. unenforceable as a salesperson's puffery
Over a forty-year period, Ellen worked in a variety of jobs. She was also occasionally unemployed, briefly hospitalized and suffered a temporary disability. She retired last year. The key federal law on all of these subjects is
d. the Social Security Act
a. the Consolidated Omnibus Budget Reconciliation Act
b. the Employee Retirement Security Act
c. the Federal Insurance Contributions Act
d. the Social Security Act
Cathy causes a disturbance at Diners Cafe. She is arrested and charged with disorderly conduct, a misdemeanor. A misdemeanor is a crime punishable by confinement up to
a. one year
a. one year
b. six months
c. ten years
d. thirty days
With respect to the legislative goals of Congress, the principal role of the Small Business Administration and other federal administrative agencies is to
d. implement those goals
a. act independently of the goals
b. create new goals
c. eliminate those goals
d. implement those goals
Ben wrongfully take an unopened carton from a City Warehouse loading dock, puts the carton into his car and drives away. A person who wrongfully or fraudulently takes and carries away another's personal property is guilty of
c. larceny
a. burglary
b. forgery
c. larceny
d. robbery
Green County, Inc., makes landscaping and lawn care tools. Green could be liable for a warning defect if there is a foreseeable risk of harm posed by a product and
a. the omission of a warning renders the product not reasonably safe
a. the omission of a warning renders the product not reasonably safe
b. there is a reasonable alternative design
c. there is a lack of care in making the product
d. none of the above
Adam is charged with the commission of a crime. To find criminal liability, most crimes require
c. a specified state of mind and the performance of a prohibited act
a. a specified state of mind or intent only.
b. the performance of a prohibited act only
c. a specified state of mind and the performance of a prohibited act
d. none of the above
Most federal administrative agencies, like the Food and Drug Administration, are usually created following
c. the passage of enabling legislation by Congress
a. the issuance of an executive order by the president
b. the order of a federal court
c. the passage of enabling legislation by Congress
d. the promulgation of a regulation by an administrative agency
Gail is an employee of Home Appliances Inc., but is unable to perform her job because of pregnancy. Gail is
a. entitled to disability leave only if Home treats other temporarily disabled employees similarly
a. entitled to disability leave only if Home treats other temporarily disabled employees similarly
b. entitled to disability leave under any circumstances
c. not entitled to disability leave because she cannot perform her job
d. not entitled to disability leave under any circumstances
Pat files an employment discrimination suit against Quantity Properties, Inc., under Title VII, based upon its discharge of Pat. In these circumstances, possible relief under Title VII includes
b. damages or job reinstatement
a. damages only.
b. damages or job reinstatement
c. job reinstatement only
d. neither damages or job reinstatement
Joe, who works as an employee for Interstate Trucking Corporation, suffers an injury in an accident. Joe will be compensated under state workers' compensation law
b. only if the injury occurred on the job
a. only if the injury occurred off the job
b. only if the injury occurred on the job
c. whether the injury occurred on or off the job
d. none of the above
The U.S. Fish and Wildlife Service utilizes notice-and-comment rulemaking. This involves a period during which
d. the public is asked to comment on a proposed rule.
a. judges, legislators and the president are asked about a proposed rule.
b. potential violators of a proposed rule are notified and publicized.
c. the administrators "notice" a problem and "comment" on it
d. the public is asked to comment on a proposed rule.
Don, a businessperson, is charged with RICO offenses. Don may be subject to penalties under RICO only if he
a. committed two or more of certain federal or state crimes
a. committed two or more of certain federal or state crimes
b. has never been convicted of a crime.
c. intends to commit future RICO offenses.
d. was previously convicted of a crime
Ann is shopping in Beth's Food Store when a bottle of Carbonated Cola explodes, injuring Ann. Ann files a suit against Delta Company, the bottler, from whom she can recover only if she can show she
d. was injured due to a defect in the product
a. did not assume the risk of the exploding bottle
b. intended the buy the exploding bottle
c. used due care in shopping in the store
d. was injured due to a defect in the product
With some expectations, every portion of every meeting of the Environmental Protection Agency and other federal administrative agencies must be open to public observation under
b. the Government in the Sunshine Act
a. the Freedom of Information Act
b. the Government in the Sunshine Act
c. the Public Accountability Act
d. the Regulatory Flexibility Act
The Federal Communications Commission (FCC) plans to adopt new substantive regulations to govern Internet-based phone services. Before drafting the regulations, the FCC may not
a. amend the Administrative Procedures Act to streamline the proceedings.
a. amend the Administrative Procedures Act to streamline the proceedings
b. hold hearings to acquire facts pertinent to the proposed rules
c. order manufactures to provide certain documents
d. solicit testimony from interest groups and consumers