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Legal, Ethical, and Social Aspects of Business:     Final Exam 1
General Test Questions & Answers

Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


Which of the following is a decisive argument Carol Gilligan’s criticism against Kohlberg’s proposition on moral development?
 
Kohlberg's initial experimental subjects were limited to young females.
Conceptions on morality are substantially based on gender
Moral judgment evolves primarily as a function of age.
Moral judgment improves as a function of education.
 

 
A(n) _____ believes that good must be weighed against evil in reaching an ethical decision.
 
utilitarian
ethicist
naturalist
theologist
 

 
All of the following are correct statements regarding Immanuel Kant’s categorical imperative except:
 
It is the notion that a rational person would prescribe as universal laws to be applied to the whole of humankind.
It states that one’s goal is to identify the consequences of a particular act to determine whether it is right or wrong
A moral rule is “categorical” rather than “hypothetical” because its prescriptive force is independent of the rule’s consequences.
It states that what is right for one individual is right for all.
 

 
A father may be morally committed to saving his son from a burning building rather than saving another person who might do more total good for society.
The action of the father would be primarily dictated by the _____ ethical system.
 
teleological
deontological
utilitarian
consequentialist
 

 
The formalistic view of ethics is best evidenced by which of the following?
 
The moral evaluation of individual acts is determined by the result achieved.
The rightness of an act depends on the act’s end result.
The moral person makes ethical decisions based on the consequences of the decision.
Immanuel Kant’s categorical imperative
 

 
A(n) _____ believes the consequence of a decision or act is primary.
 
universalist
teleologist
existentialist
consequentialist
 

 
Which of the following statements is true of the Sarbanes-Oxley Act?
 
It was enacted to encourage publicly traded companies to adopt a company-wide ethics code
It was enacted to encourage ethical risk-taking in the financial markets.
It established an independent board to oversee the accounting profession.
It established an independent board to oversee the banking profession.
 

 
Which of the following statements is true of the False Claims Act?
 
It creates new crimes and raises penalties to as much as 25 years of imprisonment along with heavy fines.
It forbids fraud in government contracts and rewards those who help stop fraud....
It requires publicly traded companies to establish internal control systems designed to assure the accuracy of financial information.
It requires publicly traded companies for senior financial management, and if not, why they have not done so.
 

 
A(n) _____ ethical system emphasizes a duty directed toward what ought to be right.
 
deontological
libertarian
teleological
existential
 

 
For felony cases, after an indictment or information, the accused individual is brought before the court for a(n) _____, where the charges are
read and a plea is entered.
 
voir dire
accusation
demurrer
arraignment
 

 
When deciding an appeal, the appellate court may take all but which of the following actions?
 
Reverse
Reverse and Remand
Affirm
Concur
 

 
_______ may consist of depositions, physical and mental examinations, answers to written questions, requests for access to documents
and property to inspect them prior to trial, and admissions.
 
Pleadings
Discovery
Demurrers
Holdings
 

 
In a jury trial, the jurors in a panel are questioned by the judge or by the attorneys to determine if any individual is prejudiced about the case such
that he or she could not reach an objective decision on the merits. This questioning process is called _____.
 
examination
mens rea
voir dire
minitrial
 

 
All but which of the following are examples of state courts of limited jurisdiction?
 
Family
Juvenile
Zoning
Small Claims
 

 
In the context of the civil trial process, a defendant may choose to respond to a complaint in favor of the plaintiff by filing a(n) _____, the essence
of which is to argue that even if the plaintiff's recitation of the facts is accurate, a claim on which relief can be granted has not been stated.
 
default judgment
demurrer
pleading
answer
 

 
For misdemeanor cases, prosecutors typically file what is called an _______, a formal expression of the charges.
 
arraignment
indictment
information
impeachment
 

 
Which of the following is true of a motion for summary judgment?
 
The party filing such a motion is claiming that no facts are in dispute
In a hearing for such a motion, the judge may not make a ruling about the law without taking the case to trial.
In a hearing for such a motion, a party may move to clarify a pleading or to strike a portion deemed unnecessary.
In a hearing for such a motion, either party simply asks the judge to reach a decision based on the information in the pleadings.
 

 
Identify the category of law that deals with the relationship between government and the citizens.
 
Administrative law
Private law
Public law
Constitutional law
 

 
In the context of case briefs, _____ refers to how the court decided the issue(s) and who won.
 
issue
holding
reasoning
procedure
 

 
Kadija, a 16-year-old minor, enters into a contract to build a computer for her uncle. Her uncle pays Kadija $300, and the computer
is to be delivered three weeks later. Until the computer is delivered, this contract is ________.
 
valid and executed
unenforceable and executory
valid and executory
voidable and executory
 

 
Michael borrowed $8000 from Amanda to start a new business and, therefore, owes her that amount. Michael sells his car to Alan.
Alan agrees to pay Kathy the $8000 that Michael owes her. In this scenario, Amanda is a(n) _____.
 
donor beneficiary
creditor beneficiary
incidental beneficiary
executory beneficiary
 

 
The doctrine of _____ states that a promisor is stopped from denying the existence of a contract even though consideration is clearly lacking,
where a promisee has detrimentally relied on that promise.
 
promissory estoppel
promissory note
substantial performance
material performance
 

 
Which of the following typically are prohibited by a state’s blue laws?
 
Blue laws forbid the practice of certain professions without a license.
Blue laws forbid usury.
Blue laws forbid conducting of certain kinds of business on Sundays
Blue laws forbid gambling.
 

 
Which of the following kinds of contracts must be in writing to be enforceable?
 
A contract to build a personal residence on one’s own land
The mutual exchange of promises to marry
A promise by an executor to use his or her personal funds to pay the debts of the estate
Securing a bank loan to start your own business within one year
 

 
The UCC, rather than common law, governs a contract in all of the following situations except
 
where the contract involves the sale of a good.
where the contract falls under Article 2 of the UCC.
where the contract involves the specific performance of a bargained-for personal service
where the contract concerns the purchase of tangible, movable property.
 

 
Problems of unconscionability often arise in situations in which:
 
the parties have contracted to perform an ultra-hazardous activity.
the parties have contracted to commit a crime or a tort.
the best interest of the public would not be served.
one party’s bargaining power is much superior to the bargaining power of the other party
 

 
Minors who have the option, under the law, of either disaffirming or fulfilling most contracts have the ability to enter into this type of contract.
 
Quasi-contract
Voidable contract
Void contract
Unenforceable contract
 

 
Which of the following statements indicates a material breach of contract?
 
Before performance is due, a party indicates in a signed written statement that she or he may be unable to perform.
Each party performs some but not all of the bargained-for obligations.
A party falls beneath the level of substantial performance and does not have a lawful excuse for that failure
Complete performance is not achieved because of minor deviations from the agreed-upon performance by one party.
 

 
Skye, who is unaware of Nathan’s mental incompetency, enters into an agreement with Nathan to paint her house. Skye does not know that
Nathan has been adjudged insane by a court of law and, therefore, is angry at him for not finishing the work on time.
This agreement between Skye and Nathan is an example of a(n) _____ contract.
 
void
option
enforceable
voidable
 

 
An intentional invasion of a person's solitude is labeled a(n) _____ if it would be highly offensive to a reasonable person.
 
false light
intrusion
assault
fraud
 

Carmen informs the sales clerk of an electronics store that she needs a computer that can maintain a 12-hour battery charge.
The sales clerk sells a computer to Carmen and withholds the fact that it cannot maintain a 12-hour battery charge.
Carmen find out that the computer can maintain only a 6-hour battery charge. Which of the following results is accurate in this scenario?
 
Carmen can sue the store for breach of implied warranty of merchantability.
Carmen can sue the store for breach of implied warranty of fitness for a particular purpose
Carmen cannot sue the store as no breach of warranty occurred because the clerk made no affirmative statement or promise about the computer.
Carmen cannot sue the store as no breach of warranty occurred because the clerk has no responsibility for the way the Carmen used the computer.
 

Which of the following is a strict liability defense?
 
Contributory negligence
Comparative negligence
Assumption of risk
Mistake
 

 
In many states, a plaintiff who willingly enters a dangerous situation and is injured will be barred from recovery. The central defense for negligence in this case is:
 
contributory negligence.
strict liability.
comparative negligence.
assumption of risk
 

 
Which of the following describes the tort of nuisance?
 
 
Nuisance occurs when an individual’s name or image is inadvertently used without permission for commercial purposes.
Nuisance is a form of defamation that is directed against a competitor’s product.
Nuisance arises when someone is unable to enjoy her land is impaired because of some tortious interference
Nuisance involves third party’s intentional interference with a person’s right to fully enjoy his or her personal property
 

 
All but which of the following are requirements for a plaintiff to establish a successful negligence claim?
 
The plaintiff must establish that the defendant owed the plaintiff a duty of due care.
The plaintiff must show that the defendant breached its duty in a strictly liable manner
The plaintiff must show that the defendant’s actions were sufficiently connected to the plaintiff’s injuries.
The plaintiff must establish that she was injured as a result of the defendant’s unreasonable conduct.
 

 
Intentionally causing another to reasonably believe that he or she is about to be the victim of a battery is a(n) _____.
 
intentional infliction of emotional distress
nuisance
assault
negligent infliction of emotional distress
 

 
Which of the following statements is true of the strict liability law?
 
Strict liability law focuses on the use of the product more than the condition of the product.
Strict liability recognizes that manufacturers cannot anticipate foreseeable misuses of the product.
Strict liability law is a branch of negligence law and has been subsumed by the negligence rules.
Strict liability offers the prospect of holding all of those in the chain of distribution liable for damages from the defective product
 

 
Intentionally touching another in a harmful or offensive way without legal justification or the consent of that person is a(n) _____.
 
intentional infliction of emotional distress
assault
battery
negligent infliction of emotional distress
 

 
Brian has an accident when he misses a stop sign and crashes into another car whose driver is drunk. Despite having sustained $10,000 worth injuries,
Brian is able to recover only $7,000 as his own negligence is found to have contributed 30 percent to the injury.
The type of negligence defense most likely availed in this case is
 
contributory negligence.
assumption of the risk.
comparative negligence
mistake.
 

 
The concept of bargaining is that the terms and conditions of employment that result from negotiations that apply to all employees in a bargaining unit.
This concept is commonly referred to as
 
a. Collective bargaining
b. Unionization
c. Featherbedding
d. Genius
 

 
Intent, consideration, legal subject matter, ____________, capacity, and offer are the elements of any contract
 
a. Coalition
b. Argumentative
c. Acceptance
d. None of the above
 

 
What do the Bill of Rights consist of
 
a. First ten amendments
b. First ten commandments
c. First twenty amendments
d. The entire constitution
 

 
Which of the following would result if the 5th amendment had never been passed
 
a. The right to due process of law would not apply to actions of private persons
b. Equal protection of law would apply more fully and effectively in tort law
c. The 6th amendment pretty much says the same thing, so there would be no difference
d. The Federal Government would not have to give a citizen due process of law
 

 
What is the highest form of property ownership
 
a. Life estate
b. Fee simple absolute
c. Simple fee
d. Absolute vodka on the day after finals
b. False
 

 
A deed
 
a. Transfers an identifiable interest in an item from one person to another person
b. Refers strictly to the transfer of real estate and is required to be written in order
c. Is required to be written and applies to real and personal property
d. None of the above
 

 
A designated work area legally means you do not have a right of expecting privacy. Your employer can visit your computer, internet transactions, and emails.
 
a. True
b. false
 

 
Under what doctrine of law can a foreign government take all the property of an International Corporation
 
a. Terra firma and condemnation
b. Stealing and burglary
c. Confiscation and expropriation
d. The "I can do whatever I want because it's my country" doctrine
 

 
What is SEC Rule 10b-5?
 
a. An SEC rule that directly relates to insider trading
b. An SEC rule that pertains to security trading
c. An SEC rule that prohibits purchases and sales
d. An SEC rule that states that only one foot must be in bounds in order for a catch to be ruled a completion
 

 
Probable cause is required
 
a. At time of arrest, at time of a search and/or arrest warrant issuing, at time court binds someone over for trial
b. At time a search and/or arrest warrant is issued, at time of arrest without a warrant, at time of adhering to the 14th amendment
c. At time of binding someone over for tiral, at time of an inquiry by a government agent, at time of preliminary hearing
d. None of the above
 

 
Price discrimination is when prices are set in a way that
 
a. Has different prices being paid by two different and competing buyers for identical products only
b. Has different prices being paid by two different and competing buyers for identical services only
c. Has different prices being paid by two different and competing buyers for identical products or services
d. Are discriminatory based on color of product, country in which product is made, etc.
 

 
Laws are
 
a. Rules that govern the conduct of all "people" (people as defined in class/life means, you and me as individuals, corporations,businesses, governments -
Federal, state, and local) in society and are enforceable against each, even if the mandates of the US constitution are note followed.
b. Made to be broken
c. A set of rules that are implied from the common law of England are not commonly followed in America Today
d. a and b only
 

 
Adverse possession is capable of causing a loss of title to real estate provided the adverse possessor adheres to the statutory requirements of law
 
a. True
b. False
 

 
The foreign exchange market is part of a very localized market where
foreign and local currency is bought, traded, and sold
 
a. True
b. False
 

 
Which of the following is a correct statement about red herring and tombstone ad
 
a. Red herring relates to an initial public offering of a security being sold to the public, but tombstone ad does not
b. Both red herring and tombstone ad relate to an initial public offering of securities, that is stock being sold to the public
c. Tombstone ad relates to an initial public offering of a security being sold to the public, but red herring does not
d. None of the above
 

 
The Civil Rights Act of 1991 declared that the Title VII of The Civil Rights Act of 1964 applies not only to America but applies with the same force and
effect extraferritorially in that American workers working abroad are bound by these laws in the same manner they are bound while working in America
 
a. True
b. False
 

 
A civil wrong and a crime are best described as
 
a. A societal wrong, being an act against the peace and tranquility of a community is a crime, whereas a civil wrong is considered a private wrong, one that is against another
b. A crime is a private wrong and a civil wrong is one against society as a whole since it disturbs the community where it is committed
c. They are exactly the same
d. None of the above
 

 
Par value stock means that the stock has no specific value assigned to it, but the value of it fluctuates as the market price does whereas no par
value shares are known as stock that has an identifiable face value, such as $10 printed on the stock certificate
 
a. True
b. False
 

 
If you are an employee of a large corporation, they will most likely make you sign a document that says in certain unforeseen events like war, political
upheavals, acts of God, etc, one party can be excused from performance without liability for such failure to perform. This clause is known as
 
a. Excusio Bellimisio
b. Caliente
c. Force majeure
d. Force de impacto unforseeno
 

 
Antitrust laws protect trade and commerce from price discrimination, price- fixing, and monopolies
 
a. True
b. False
 

 
A lease conveys an interest in realty and personality identical in nature as the interest owned by the fee simple absolute owner.
 
a. True
b. False
 

 
_______ requires that if a company is dealing with foreigners working in American territories, they ethically must realize that if a foreign nation commits
certain acts, it will not be subject to the jurisdiction of US courts.
 
a. Caveat emptor
b. E pluribus unum
c. Sovereign immunity
d. None of the above
 

 
Under what chapter does one file a bankruptcy seeking to be released from all their debts and called a fresh start?
 
a. 7
b. 13
c. 11
d. 8
 

 
Ethics
 
a. Evolves in its meaning because of the changes made by society.
b. Basically involves what is right and wrong conduct, and when judging conduct under this definition one should take into account more than if there was
    a duty between the parties and should then also consider acts of impropriety and matters of perspective
c. Is easily indentifiable,
d. a and b only
D
 

 
Under what chapter does one file for protection from creditors demands and make payment to creditors under a plan of payment approved by the court?
 
a. 7
b. 13
c. 11
d. 8
 

 
Thinking back to the lecture on law and the guest speaker, when one owns the whole, what can one do with it?
 
a. Give it all away
b. Keep it all
c. Give as much as one wants to another
d. All of the above
 

 
The Sarbanes-Oxley Act of 2002 strengthened existing securities law and created CFO and CEO certification requirements for certifying
financial statements, Recited strict loan requirements to directors and officers, protected whistleblowers, but did not enhance any form of
penalty, rather it relied on existing laws to enforce violations of securities fraud.
 
a. True
b. False
 

 
The Securities Act of 1933 was created to
 
a. Promote national and local security
b. Stabilize the securities industry and prohibit fraud
c. Make security trading uniform
d. Prevent people from getting robbed
 

 
Which of the following are types of torts?
 
a. Negligence
b. Intentional
c. Strict liability
d. All of the above
 

 
If I offer something and you reject it, this means that legally the offer is not still on the table. In order for the offer to still be in effect, I must restate the offer.
 
a. True
b. False
 

 
A ______ will be construed in law and business to be paramount/superior to precedent, stare decisis and statutes
 
a. Treaty
b. Copyright
c. Legislation
d. Common law crime
 

 
Comity is
 
a. A legal doctrine, similar to the dignity and far reaching impact of a US Supreme Court ruling on an ethical issue under Rule 10b-5
b. Like reciprocity, in that each nation will uphold all ethical decision of any government agency
c. A principle by which one nation defers and gives effect to the laws and judicial decrees of another nation
d. None of the above
 

 
Let's pretend you are the President of Sherlock Notes, Inc. You realize a huge need for note packets in several foreign markets. You want to enter
these markets with very limited involvement because of treaties, instability of some of the nations, and to reduce liability in each foreign market.
If you were to do this legally and ethically, in what manner would you do it?
 
a. As a sole proprietor
b. As a corporate entity
c. As an agent of a foreign firm located within each such nation
d. As a principal
 

 
The National Labor Relations Act of 1935 (NLRA) created
 
a. The right for labor to possess an advantage over other blue collar benefits
b. The opportunity and the right for labor to unionize, strike and engage in collective bargaining with management
c. The tone in modern history for how management would rule the working class in society
d. None of the above
 

 
What are the two different types of legal methods in which to resolve a controversy existing between two or more people when dealing
with Alternate Dispute Resolutions (ADR).
 
a. Mediation and negotiation
b. Arbitration and negotiation
c. Arbitration and dissolution
d. Mediation and arbitration
 

 
The SEC is
 
a. An independent regulatory agency of the federal government
b. An administrative agency of the Federal Government
c. Originally from the common law of England but has been modified by the Federal Law in America
d. The best conference in college football
 

 
The Securities Act of 1933 is also known as
 
a. Deceit in securities
b. Falsity in securities
c. Fraud in securities
d. Truth in securities
 

 
What is the significance of the Norris-LaGuardia Act of 1932
 
a. Was not enacted by Congress therefore it did not have the force and effect of law.
b. It prevented Federal Court intervention into certain union activities pertaining to union strikes, picketing and boycotts, etc.
c. Permitted Federal Court intervention into union activities such as strikes, boycotts and picketing
d. None of the above
 

 
The sale of crops from the land you own can be governed by real estate law if the property is sold and the crops are not cut; but, a sale of
realty contract can classify the uncut crops as goods if the parties of the contract so intend
 
a. True
b. False
 

 
If an individual works on a home and provides services or material to repair or improve it, they have which legal tool to assure payment
 
a. Caveat emptor
b. Principal's lawsuit
c. Mechanic's lien
d. Repairmen's charge
 

 
Under which common law can you be sued if the use of your property unreasonably interferes with another's use of their property
 
a. Nuisance
b. Slander and libel
c. Negligence
d. You can't be sued for that...
 

 
A lien is a legal method in which an agent of a creditor can sue a principal who owes the money so that the debt can be paid
 
a. True
b. False
 

 
A warranty deed differs from a Quitclaim Deed in that the grantor warrants that he has title and the right to convey the land and will protect the
grantee against anyone who attempts to assert they own the land whereas a Quitclaim Deed merely is a transfer of ownership from the grantor
to the grantee and the grantor only states he is conveying whatever interests he has in the land, never actually being held accountable if he does
not have an interest in the land to actually convey to another
 
a. True
b. False
 

 
What is the first form of life estate ownership interest
 
a. Lasts for no more than 10 years
b. Cannot be refused by the one it is given to
c. Lasts for the life of the individual who received it
d. Is like a fee simple estate of ownership
 

 
The three branches of government are legislative, executive and judicial. Which articles of the United States Constitution is this provided in
 
a. 2, 4, 10
b. 1,6, 12
c. 2, 4, 6
d. 1, 2, 3
 

 
Which of the following is permissible in consumer advertising
 
a. Making misleading statements about the product
b. Puffing the product
c. Lying about what the product does
d. All of the above
 

 
Eminent Domain is a Federal law that permits the government to take
property from a private citizen for public use which is necessitated by
the governments need to promote the public safety, health and welfare,
so long as just compensation is paid to the one whose property is taken
 
a. True
b. False
 

 
When you own land, you own the land below the surface, on the surface, and the airspace above. What legal principal explains why airplanes can fly above your land
 
a. Easement
b. Invadeness
c. Airspace law of 1975
d. Government Invasion Act of 1983 (GIA)
 

 
What is a nondisclosure agreement (Confidentiality Agreement)
 
a. Part of a stock purchase
b. A tort
c. A contract
d. An article of incorporation
 

 
50. When dealing with online deceptive advertising, The Federal Trade Commission (FTC) issued new guidelines to help online businesses comply with existing laws that prohibit deceptive advertising. Which of the following is true regarding the previous statement
 
a. They wrote new laws
b. The guidelines do not set forth new law, but describe how existing laws apply
c. They negated multiple laws
d. They stated that anything is acceptable in online situations
 

 
Which of the following is not an example of an express warranty?
 
A. "this jacket is lined"
B. "this water heater holds 50 gallons"
C. "Preshrunk jeans"
D. "this toothpaste makes the whitest teeth around"
 

 
Sudan seizes the assets of Triage Medical, Inc., a US firm. Triage's recovery from Sudan in a US court may be prevented by:
 
A. the act of state doctrine
B. the doctrine of sovereign immunity
C. the Foreign Corrupt Practices Act
D. the principle of comity
 

 
Comity is the concept that countries should abide by international custom, treaties, and other sources of international direction because
that is the civil way to engage in international relationships
 
A. True
B. False
 

 
Bodie's application to City Bank for a credit card is denied. Bodie can obtain information on her credit history in a credit agency's file under:
 
A. no federal law
B. the Equal Credit Opportunity Act
C. the Fair Credit Reporting Act
D. the Fair Debt Collection Practices Act
 

 
Which of the following are required ingredients in proving a claim under the doctrine of respondeat superior?
 
A. employee was subject to employer's supervision
B. employer could be expected to foresee the negligence in question
C. employee did not contribute to her own harm
D. the act in question was performed under specific instructions from management
E. none of the above
 

 
Under Chapter 11 Bankruptcy
 
A. the debtor continues in operation of the business while the debts are worked out
B. the creditor can seize all non-exempt assets
C. creditors ultimately benefit less than under Chapter 7
D. all of the above
 

 
"Phishing" refers to:
 
A. a piece of computer code left on the user's hard disk every time a new web page is visited
B. the sending of e-mails that purport to be from a legitimate financial institution directing the recipient to a site where they are asked to enter vital personal information
C. the way a user's browser maintains the user's "favorites" or "bookmarks" files
D. a recent computer virus that infects a user's computer by coming in as an e-mail attachment
 

 
Which of the following credit report protections is offered by the federal Fair Credit Reporting Act?
 
A. In all cases, negative information more than seven years old must be reported
B. all inaccurate information must be corrected or removed from the credit file, usually within 30 days
C. the consumer cannot sue for damages if their rights under the act have been violated
D. anyone using information from a CRA to deny a consumer credit must keep the information about the source of the credit report confidential
 

 
The international Court of Justice:
 
A. only issues advisory opinions that are not binding on the parties
B. is no longer active, since international trade agreements and treaties resolve most of the disputes
C. is the only court which is devoted entirely to hearing cases of public international law
D. has exclusive jurisdiction over all international disputes
 

 
The UCC warranty of merchantability:
 
A. can be disclaimed by using the term "as is"
B. does not cover sales of food in restaurants
C. is made in every sale of goods
D. none of the above
 

 
The Joneses are interested in purchasing new carpet for their family room and note an ad the paper from Carpet World for carpet at $9.99 per square yard, with pad, fully installed. When the joneses go to Carpet World, the salesman tells them there is a handling fee of $2.99 per square yard on the advertises special, but he can show them a better carpet for $14.99 per square yard. Which of the following statements is true?
 
A. since the joneses are free to leave and buy elsewhere, there are no FTC violations by the ad
B. if the joneses choose the $14.99 carpet, there is no violation of FTC regulations
C. Carpet World's ad and tactics constitute bait and switch
D. none of the above
 

 
Sam wants to buy a food processor from Widget Inc. The purchase price will be paid over 2 years in monthly installments. which of the following is true regarding this transaction?
 
A. If sam gains weight, he can sue for "intentional infliction of poundage" under consumer protection laws
B. if Widget denies Sam credit because of a bad credit report, it must disclose to him the source of the information relied on.
C. Widget does not have to disclose the finance charges because the food processor is strictly for private use
D. The food processor must have a seal of approval from the Consumer Product Safety Commission since it is a kitchen applicance
 

 
Ultra Kleen operates a chain of laundry establishments throughout the U.S. The government entities that are most likely to be involved in regulating the chain's environmental impact are:
 
A. Congressional committees
B. federal and state administrative agencies
C. local chamber of commerce
D. local police departments
 

 
According to the text, among the reasons that individuals with the personal information collected by online companies are:
 
A. their own loss of control as to how their personal information is used
B. fear that compiled information will contain false or out-of-date informations
C. fear that companies will bombard them with ads tailored to their on-line habits
D. all of the above
E. none of the above
 

 
Which of the following provides for the clean-up of existing abandoned hazardous waste sites?
 
A. the Clean Water Act
B. the Toxic Substances Control Act
C. the Resource Conservation and Recovery Act
D. the Comprehensive Environmental Response, Compensation and Liability Act E. none of the above
 

 
Workers' compensation provides a form of no-fault injury and illness protection in the workplace
 
A. True
B. False
 

 
Which of the following is the primary reason that the US did not ratify the Kyoto Protocol?
 
A. the carbon emissions reduction targets for fully industrialized countries like the US were impossible to meet in the stated time-frame
B. one of the largest carbon-producing nations in the world, The People's Republic of China, refused to ratify the Protocol
C. The Bush Administration believed the restrictions imposed by the Protocol would harm the US economy
D. The Protocol was "flawed" because it was drafted by a group of scientists who failed to account for the Jet Stream patterns of the Northern Hemisphere
 

 
Most favored Nation (MFN) status entitles a country to the lowest tariff rate applicable to that granted any other country
 
A. True
B. False
 

 
Robert is a graduate student at UIC who works part-time as a pizza delivery man for Professor Miller's Famous Pizza, a pizzeria in the West Loop that is
famous for its fast delivery and the detailed explanations of US Constitutional concepts that are inscribed on the covers of its pizza boxes. as part of
Robert's official employment duties, he is required to REcite the Bill of RIghts from memory every time he delivers a pizza to a customer. One evening,
while rushing to deliver a pizza on time, Robert was struggling to memorize the Bill of Rights while driving "Professor Miller's Famous Pizza-mobile",
a company-owned van with a portrait painted on the side or Miller and the Founding Fathers eating pizza and reading the US Constitution. In his haste,
Robert negligently drove the pizza-mobile through a stop sign and got into an accident. Will Professor Miller's Famous Pizza be held liable for the damage
to the other vehicle?
 
A. Yes, because Robert was acting within the scope of his employment
B. No, because Robert was negligent in his failure to obey the traffic laws
C. No, because Robert had a duty to memorize the Bill of Rights before he drove the delivery van
D. Yes, because Professor Miller directed Robert to make sure the pizza was delivered on time
 

 
Robert is a huge fan of John Coltrane, the original saxophonist from the Miles Davis Quintet. Robert often likes to blast his favorite John Coltrane album,
Blue Train, between the hours of 12:00am and 3:00am, while he is studying accounting. Robert's neighbor, Michael, told Robert several times to "please
turn down the volume on the Jazz" but Robert continually ignores Michael's requests. Finally, Michael warns Robert that if Robert does not turn down
the music, Michael will sue him under tort law. Under what theory will Michael sue?
 
A. Trespass to real property
B. Trespass to personal property
C. Injurious falsehood
D. Nuisance
 

 
Which of the following acts protects the confidentiality of certain medical information of employees?
 
A. OSHA
B. FMLS
C. HIPPA
D. ELSA
 

 
Quackity Quack Company's ad states that its Rubber Ducky products are "the best on the market today" Because of this ad, the FTC is most likely to:
 
A. do nothing
B. draft a formal complaint
C. issue a cease and desist order
D. require counter advertising
 

 
The concept that "the king can do no wrong" and that foreign government cannot be sued in American courts (with some exceptions) is part of what doctrine?
 
A. the act of state doctrine
B. the doctrine of sovereign immunity
C. the doctrine of foreign jurisdiction
D. the conflict of laws doctrine
 

 
The Immigration Reform and Control Act (IRCA):
 
A. was passed to encourage immigration to the US
B. requires employers to verify authorization to work for all employees
C. has only civil penalties, but no criminal sanctions
D. punishes both intentional and unintentional violations
 

 
which of the following conditions must be proved to establish a successful claim of fraud?
 
A. damages resulting
B. intent to deceive
C. justifiable reliance on the falsehood by the injured party
D. misrepresentation of a material fact with knowledge of the falsehood
E. all of the above
 

 
anyone can choose any domain name they want just by telling their Internet Service Provider that, that is how they want to be known
 
A. True
B. False
 

 
____ is the process of building profiles of individuals by organizing all the disparate pieces of information collected in the normal course of business
 
A. Data mining
B. Phishing
C. Hacking
D. Whistleblowing
 

 
in the internet world, "piracy" refers to:
 
A. hijacking deliveries of shrink-wrapped software
B. unauthorized use of such intellectual property as movies, music, and software
C. software companies illegally duplicating portions of code created by other software companies
D. none of the above
 

 
The Fair Debt Collections Act applies to:
 
A. collection agencies
B. all consumer credit business
C. the IRS
D. banks
E. all of the above
 

 
The FTC has authority to impose criminal sanctions
 
A. True
B. False
 

 
The Communications Decency Act of 1996 violated the _____
 
A. Sixth Amendment
B. Eighth Amendment
C. First Amendment
D. Fourth Amendment
 

 
Which of the following best states the purpose of the FTC?
 
A. it was created to address product safety problems where for various reasons the market fails to provide protection demanded by consumers
B. It was created to prevent "unfair methods of competition and unfair or deceptive acts or practices in and affecting commerce"
C. it provides a mechanism to deal with the billing errors that accompany credit card and certain other "open-end" credit transactions
D. it was designed to shield debtors from unfair debt collection as debt collectors
 

 
Which of the following is NOT one of the four major objectives of the 1938 Fair Labor Standards Act?
 
A. Establishment of a minimum wage
B. allowing organized labor to engage in collective bargaining
C. creation of a flexible ceiling on the number of weekly hours worked for hourly employees
D. Child labor protection
E. establishment of equal pay for equal work regardless of gender
 

 
even if a consumer disputed information contained in her credit report, she is not allowed to file her own version of the facts
 
A. True
B. False
 

 
which of the following is NOT a lawful means of drug testing employees in the PRIVATE sector?
 
A. when the employee's right to privacy outweighs the employer's business needs
B. follow-up testing for employees returning from drug or alcohol rehabilitation
C. Pre-employment testing
D. situations where the employer has probable cause or reasonable suspicion
 

 
the Solid Waste Disposal Act leaves solid waste problems primarily to state and local governments
 
A. True
B. False
A
 

 
_______ wishes to penetrate a foreign market, utilize the .... of the foreign country, but retain substantial control over operations. the best choice would be
 
A. a branch office
B. a distributorship
C. a joint venture
D. a foreign agency
 

 
The Fair Labor Standards Act establishes a minimum wage overtime pay for any work in excess of 40 hours per week and provisions dealing with child labor.
 
A. True
B. False
 

 
The government of the US and the governments of other nations have the power to enforce their respective national laws within their borders. the power
to enforce international law within the borders of all nations rests with:
 
A. no court or international organization
B. the European Union
C. the International Court of Justice
D. the United Nations General Assembly
 

 
which of the following is NOT an example of free market principles being used to encourage entrepreneurially conscious actions?
 
A. research and development of manufacturing techniques the use less metal for beverage cans
B. forcing compliance with stricter environmental standards
C. selling waste to businesses that can use it for productive means
D. selling waste to other countries that can recycle it more efficiently
 

 
COBRA
 
A. is a well-capitalized snake
B. requires funding for retirement benefits for older employees
C. requires continued health care coverage for terminated workers
D. mandates paid leave for workers with a family medical emergency
 

 
the act governing the safe transport and disposal of hazardous waste is the:
 
A. Solid Waste Disposal Act
B. Toxic Substances Control Act
C. Comprehensive Environmental Response, Compensation and Liability Act
D. Resource Conservation and Recovery Act
 

 
Banning a product from the market is usually the first remedy sought by the Consumer Product Safety Commission.
 
A. True
B. False
 

 
For commercial purposes, electronic signatures have the same legal stature as handwritten signatures
 
A. True
B. False
 

 
Professor Miller is a special agent for the US FTC. In the course of performing his duties, he finds that Robert, a slick, shifty,
fast-talking used car salesman, is operating his business in violation of multiple FTC agency rules. When Miller brings these violations to Robert's attention,
Robert agrees to change his shady business practices to bring them into compliance with the FTC rules. While Robert's business practices are still somewhat
duplicitous, underhanded and manipulative, in Miller's judgment the changes Robert makes are sufficient to mitigate the past violations and bring his
business into compliance with the FTC rules. Robert and Miller reach a settlement whereby Robert properly complies with all FTC rules going forward,
without making an admission of guilt to his past FTC violations. What is the legal term for the settlement agreement reached between Robert and the FTC?
 
A. a negotiated agency settlement agreement
B. an FTC compliance decree
C. a consent order
D. an administrative settlement
 

 
Robert is a homeowner in the West Loop neighborhood of Chicago and is considerating various options for remodeling his home. Miller
is also a homeowner in the West Loop and lives a few doors down from Robert. Under which of the following scenarios would Robert's
home improvement project create a negative externality absorbed by Miller?
 
A. Robert repaints his white picket fence and hires a landscaper to install new bushes and a sculpture garden on his front laws
B. Robert repaves his front walkway and restores his front porch to its original, mint condition
C. Robert erects an enormous, out-of-place monolith on his front lawn and paints it wish obscene words and phrases
D. Robert erects a life-sized statue of Miller on his front lawn, which increases property values throughout the neighborhood
 

 
The ____ protects citizens from government restraints on the content of speech, although reasonable restraints on the context
(time, place, and manner) of that speech are sometimes constitutionally permissible
 
A. Sixth Amendment
B. Eighth Amendment
C. First Amendment
D. Fourth Amendment
 

 
Under the Fair Labor Standards Act, employers must now pay double time for any work beyond 40 hours per week
 
False
 

 
Which would be legal under the common law employment-at-will doctrine?
Firing an employee because:
A. the boss wants to hire her brother in that employee's position
B. the boss lost a big bet on a ball game to that employee
C. the employee is dating the boss' daughter against the boss' will
D. any or all of the above
 

 
The broad goal of Chapter 11 bankruptcy is to work out a way for a debtor to pay off its obligations while continuing in operation
 
True
 

 
The US legal system is one of the most comprehensive fair and socialistic systems of law ever developed and enforced.
 
False
 

 
The US system of the law evolves and changes alone with the norms of society, technology and the growth and expansion of ________ in the US and the world.
 
Commerce
 

 
Court case that was overturned in the case of Brown v. Board of Education.
 
Plessy v. Ferguson
 

 
The case of Brown vs. Board of Education dealt with ________
 
Separate but equal educational opportunities.
 

 
English common law was law developed by judges who issued their opinions when deciding cases.
 
True
 

 
Federal Statutes are the supreme law of the land
 
False
 

 
Constitution of the United States of America
The supreme law of the land.
 

 
Executive orders are passed by the state and federal legislatures.
 
False
 

 
The doctrine of stare decisis
 
Is based on common law tradition, works with case law decided by judges, creates consistency through the use of precedents.
 

 
The concept of flexibility in the law
 
U.S. law evolves and changes along with the norms of society, technology, and the growth and expansion of commerce in the United States and the world.
 

 
Valid federal laws take precedence over any conflicting state or local laws.
 
True
 

 
IRAC is a method used to examine legal cases
 
True
 

 
There are two major court systems in the United States the federal court and the bankruptcy courts.
 
False
 

 
US District Courts are trial courts and the US courts of appeals from the US District Courts
 
True
 

 
US Supreme Court justices are appointed by the president and then affirmed every four years by a vote of the general population.
 
False
 

 
A federal question case arises under the US Constitution, treaties, or federal statutes and regulations.
 
True
 

 
In order to bring a lawsuit a plaintiff must have a stake in the outcome referred to as the proper venue
 
False
 

 
In personom jurisdiction means the court has jurisdiction over the _________.
 
person
 

 
The landmark case of International Shoe sets the legal standards for establishes the minimum contacts standard and proper application of the
 
long arm statute.
 

 
OSHA - The Occupational Health and Safety Administration is an example of a state administrative agency.
 
False
 

 
A compact made between or more nations.
 
Treaty
 

 
Law enacted by local government bodies, such as cities and
municipalities, counties, school districts, and water districts.
 
Ordinance
 

 
It hears appeals from intermediate appellate state courts ad certain trial courts. No new evidence or testimony is heard. Called the state supreme court.
 
Function of highest state court
 

 
Where does the authority for the federal court system derive from?
 
Article III of the U.S. Constitution provides that the federal government's judicial power is vested in one "Supreme Court."
 

 
The federal court system's trial courts of general jurisdiction.
 
United States District Court
 

 
A petition asking the Supreme Court to hear a case
 
Petition for certiorari
 

 
If all the justices voting agree as to the outcome and reasoning used to decide a case.
 
Unanimous Supreme Court decision
 

 
If a majority of the justices agree as to the outcome and reasoning used to decided a case.
 
Majority decision
 

 
If a majority of the justices agree as to the outcome of the case but not as to the reasoning for reaching the outcome.
 
Plurality decision
 

 
When does a justice write a concurring opinion?
 
When justice agrees with the outcome of a case but not the reason proffered by other justices. He writes a concurring opinion that sets forth his or her reasons for deciding the case.
 

 
What is a dissenting opinion
 
Is when a justice does not agree with a decision, this opinion sets forth the reasons for his or her dissent.
 

 
What is the effect of a tie decision in the Supreme Court?
 
The lower court decision is affirmed. Such votes are not precedent for later cases.
 

 
Federal Courts have exclusive jurisdiction to hear cases involving?
 
federal crimes, antitrust, bankruptcy, patent and copyright, suits against the United States, and most admiralty cases.
 

 
In a diversity of citizenship case, what is the minimum dollar amount at stake?
 
75,000
 

 
federal question, diversity of citizenship
 
Jurisdiction of Federal Courts
 

 
Cases arising under the U.S. Constitution, treaties, and federal statutes and regulations. There is no-dollar amount limit for federal question
cases that can be brought in federal court.
 
Federal question
 

 
Cases between citizens of different states or between a citizen of a state and a citizen or subject of a foreign country. Federal courts must
apply the appropriate state law in such cases. the controversy must exceed the dollar limit of $75,000 for the federal court to hear the case.
 
Diversity of citizenship
 

 
Having some stake in the outcome of a lawsuit.
 
Standing to sue
 

 
jurisdiction over the parties to a lawsuit
 
in person am jurisdiction
 

 
A statute that extends a state's jurisdiction to nonresidents who were not served a summons within the state.
 
long-arm statute
 

 
A concept that requires lawsuits to be heard by the court with jurisdiction that is nearest the location in which the incident occurred or where the parties reside.
 
Venue
 

 
A contract provision that designates a certain court to hear any dispute concerning nonperformance of the contract.
 
Forum-selection clause
 

 
A contract provision that designates a certain sate's or country's law that will be applied in any dispute concerning nonperformance of the contract.
 
Choice-of-law clause
 

 
Created by governments to enforce regulatory statutes. they assist in implementing and enforcing federal and government laws that regulate business.
 
The role of administrative agencies
 

 
The paperwork that is filed with the court to initiate the lawsuit is called the ________
 
pleading
 

 
The paperwork that is filed with the court to initiate and respond to a lawsuit.
 
Pleadings
 

 
If the defendant does not answer the complaint, a default judgment is entered against him or her.
 
True
 

 
The party who files an answer
 
defendant
 

 
the party who files a complaint
 
plaintiff
 

 
What happens when a defendant doesn't file an answer to a complaint?
 
A default judgement is entered against him or her. A default judgement establishes the defendant's liability. The plaintiff then has only to prove damages.
 

 
A lawsuit where a group of plaintiffs with common claims collectively bring a lawsuit against a defendant.
 
Class Action
 

 
In a case of personal injury due to an accident, the statute of limitations begins to "run" at the time the accident occurs
 
True
 

 
Statute of limitations establishes the period during which a plaintiff
 
must bring a lawsuit against a defendant.
 

 
A legal process during which each party engages in various activities to discover facts of the case from the other party and witnesses prior to trial.
 
Discovery
 

 
Four major types of discovery
 
Deposition
Interrogatories
Production of Documents
Physical or Mental Examination
 

 
Oral testimony given by a party or witness prior to trail. The testimony is given under oath and is transcribed
 
Deposition
 

 
Written questions submitted by one party to another party. The questions must be answered in writing within a stipulated time.
 
interrogatories
 

 
A request by one party to another party to produce all documents relevant to the case prior to the trial
 
Production of documents
 

 
A court-ordered examination of a party to a lawsuit before trial to determine the extent of the alleged injuries.
 
Physical or Mental Examination
 

 
A motion a party can make to try to dispose of all or part of a lawsuit prior to trial.
 
Pre-trial motion
 

 
A hearing before a trial in order to facilitate the settlement of a case.
 
Settlement conference
 

 
In deciding the motion for judgement on the pleadings, the judge cannot
consider facts outside the pleadings.
 
True
 

 
A motion for summary judgement, the judge must only consider undisputed
 
facts as set forth in affidavits, documents and deposition testimony.
 

 
Motion for judgement on the pleadings
 
A motion that alleges that if all the facts presented in the pleadings are taken as true, the party making the motion would win the
lawsuit when the proper law is applied to these asserted facts.
 

 
Voir dire is the process whereby the jurors ask prospective judges questions to determine whether they would be biased in their decisions.
 
False
 

 
Steps in a Jury Trial
 
Jury Selection
impaneled
opening statements
direct examination
cross-examination
rebuttal and rejoinder
closing arguments
jury instructions
jury deliberation
verdict
entry of judgement
 

 
The court may overturn the verdict, however, if it finds bias or jury misconduct.
 
judgement notwithstanding the verdict
 

 
In a civil case, the judge may reduce the amount of monetary damages awarded by the jury if he or she finds the jury to have been biased, emotional, or inflamed.
 
Remittitur
 

 
a form of alternative dispute resolution in which the parties choose an impartial third party to hear and decide the dispute.
 
Arbitration
 

 
A form of alternative dispute resolution in which the parties use mediators to assist them in possibly reaching a settlement of their dispute.
 
Mediation
 

 
The primary purpose of the Constitutional Convention of 1787 was to limit the power of the federal government and restrict it from levying or collecting taxes.
 
False
 

 
The primary purpose of the Constitutional Convention was to strengthen
 
the federal government.
 

 
In federalism, the federal government and the state governments share powers.
 
True
 

 
A system built into the U.S. constitution to prevent any one of the three branches of government from becoming to powerful.
 
Checks and Balances
 

 
The House of Reps has the power to impeach the President for certain activities, such as treason, bribery, and other crimes.
 
True
 

 
How are the number of Congressional representatives determined?
 
According to the population of each state. The current number of reps is determined by the most recent national census.
 

 
A state or local law that conflicts with a valid federal law is considered to be?
 
Unconstitutional
 

 
What federal laws would take precedence over a state constitution under the supremacy clause of the U.S. Constitution?
 
U.S. Constitution, federal treaties, laws, and regulations
 

 
The Due Process Clause of the U.S. Constitution grants Congress the power "to regulate commerce with foreign nations, and among the several states,
and with Indian tribes."
 
False
 

 
If the federal government has chosen not to regulate an area of commerce despite possessing the Commerce Clause powers to regulate it,
the area is subject to Dormant Commerce Clause.
 
True
 

 
Which of the following statements is true of the United States' Foreign Commerce Clause?
 
a) Regulation of foreign commerce by state governments is unconstitutional.
b) A state officer engages in activities that are not condoned by that state.
c) Direct regulation of foreign commerce by the federal government violates the Commerce Clause.
d) Interstate commerce ban
c) State government is only permitted to regulate foreign trade indirectly.
 

 
A clause of the U.S. Constitution that grants Congress the power "to regulate commerce with foreign nations, and among the several states,
and with Indian tribes."
 
Commerce Clause
 

 
Which of the following statements is true of the states' police power?
 
a) Police power restricts states from regulating inter-state commerce, although it happens within their borders.
b) The states are allowed to regulate army activities within their borders.
c) They are given the authority to enact laws that regulate the conduct of business
d) A and B above
e) The police force of a state is controlled by the federal police department.
 

 
Power that permits state and local governments to enact laws to protect or promote the public health, safety, morals, and general welfare.
 
Police power
 

 
State real property laws, personal property laws, and state
 
environmental laws
 

 
The United States considers Native American tribes as "domestic dependent" nations with limited sovereignty.
 
True
 

 
commerce that moves between states or that affects commerce between states.
 
Interstate commerce
 

 
federal government can regulate any activity that affects interstate:
 
commerce.
 

 
A situation in which the federal government has the Commerce Clause power to regulate an area of commerce but has chosen not to regulate that area of commerce.
 
Dormant Commerce Clause
 

 
The first ten amendments to the Constitution that were added in 1791.
 
Bill of Rights
 

 
Fully protected speech, limited protected speech, unprotected speech
 
Freedom of Speech categories:
 

 
Speech that cannot be prohibited or regulated by the government.
 
Fully protected speech
 

 
Offensive speech and commercial speech. The government may not prohibit but that is subject to time, place, and manner restrictions.
 
Limited protected speech
 

 
Dangerous speech, fighting words, speech that incites violent responses, defamatory language, child porn, obscene speech.
 
Unprotected speech
 

 
Establishment Clause and Free Exercise Clause
 
Freedom of religion
 

 
A clause of the First Amendment that prohibits the government from either establishing a state religion or promoting one religion over another.
 
Establishment Clause


Chapter    01    02    03    04    05   06    07    08    09    10    11    12    13   14   15   16   17   18     |      Final Exam 01  02


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