Business Law
Select the single best answer for each question or statement, then transfer your answers to the appropriate scan sheet provided.
Question 1. Halfren, a county in the state of Halizona, is extremely earthquake-prone. The governor of Halizona set up a committee to study the effects of past earthquakes on Halfren and the possible methods that could be used to minimize future damages and fatalities. The committee found that a new technique of using steel reinforcements in building columns would help reduce overall damages. This finding was debated at the local town hall, where it was accepted by a majority of the residents of Halfren. The state government then passed a law making it mandatory to use the new steel-reinforced columns while constructing new buildings in Halfren. Which of the following functions of the law did the state government of Halizona exhibit in case?
a. promoting social justice
b. maximizing individual freedom
c. shaping moral standards
d. facilitating orderly change
Question 2. Ordinances are codified laws that are issued by
a. the President
b. state legislature
c. Supreme Court judges
d. local government bodies
Question 3. The requires that government statutes, ordinances, regulations, and other laws be clear and not overly broad in scope.
a. procedural due process
b. substantive due process
c. intermediate scrutiny test
d. rational scrutiny test
Question 4. Libel and slander constitute
a. the tort of outrage
b. defamation of character
c. the tort of appropriation
d. intentional misrepresentation
Question 5. A closely guarded formula for a recipe protected by a soft drink manufacturer would be considered an example of a
a. copyright
b. patent
c. trademark
d. trade secret
Question 6. A(n) is a charge of having committed a crime, usually a felony, based on the judgment of a grand jury.
a. indictment
b. information statement
c. arraignment
d. plea
Question 7. The fraudulent creation or alteration of a written document that affects the legal liability of another person is called
a. extortion
b. larceny
c. embezzlement
d. forgery
Question 8. Michael opens an online store where people from all over the world can purchase and download iPhone apps. Which of the following should Michael consult to know the rules of trading through his online store?
a. common law of contracts
b. objective law of contracts
c. UCITA
d. UCC
Question 9. Which of the following must a promissory note contain to make it negotiable?
a. acknowledgement of debt
b. implied promise to pay
c. unconditional affirmative to pay
d. promise to negotiate
Question 10. If a person employs an architect to design the layout of his or her home, it would constitute a(n) relationship.
a. employer-employee
b. principal-independent contractor
c. principal-agent
d. agent-independent contractor
Question 11. Harrison hires an agent to look for a three-bedroom house in Atlanta. Elaine, the agent, finds a three-bedroom house within Harrison's budget, but buys it herself without informing Harrison. This is an instance of the agent's
a. self-dealing
b. conflict of interest with the principal
c. competing with the principal
d. usurping an opportunity
Question 12. What is the employer's advantage in offering workers' compensation?
a. The employer need not pay for workers' compensation insurance.
b. The employer is exempt from having to offer paid medical leave.
c. The employer can avoid a lawsuit from an injured worker.
d. The employer can offer lower basic pay to workers.
Question 13. Under a(n) agreement, an employer agrees to hire only employees who are already members of a union.
a. union shop
b. agency shop
c. confirmed shop
d. closed shop
Question 14. Which of the following is true of a union shop agreement while hiring an employee?
a. The employee must join the union within a certain time after employment.
b. The employee does not join the union but pays an agency fee.
c. The employee must be a skilled worker represented by more than one union.
d. The employee must be represented by more than one union.
Question 15. An employee who believes that he or she is being sexually harassed has a duty to report the harassment to the
a. EEOC
b. FEPA
c. employer
d. law enforcement authorities
Question 16. discrimination occurs when an employer discriminates against an entire protected class.
a. Disparate treatment
b. Disparate impact
c. Favored treatment
d. Unfair impact
Question 17. Which of the following is a right to which every general partner is entitled?
a. right to remuneration
b. right to free and open speech
c. right to return of capital
d. right to legal action
Question 18. Which of the following happens when a general partner withdraws from a limited partnership?
a. The partnership must be sold.
b. The partnership is transferred.
c. The partnership is dissolved.
d. The partnership operates normally.
Question 19. Who among the following elects members of the board of directors for a corporation?
a. the CEO
b. corporate officers
c. shareholders
d. employees
Question 20. Which of the following is true regarding FDA regulations for cosmetics?
a. There is no law in the United States against animal testing for cosmetics.
b. All substances and preparations for cosmetic use are chemically proven to be free from carcinogens before sale by the FDA.
c. Ordinary household soap is evaluated in terms of its quality and safety as a cosmetic good under the FDA.
d. New cosmetics are released on the market only if they have the "CRUELTY-FREE" label on their package.
Question 21. Which of the following is true of an LLC?
a. An LLC is governed by federal law.
b. An LLC is regarded as a separate legal entity.
c. An LLC cannot hold title to property.
d. An LLC's owners are called specific partners.
Question 22. Portman, who runs a computer hardware store, had signed a contract with Stewie Inc. to deliver 125 computer monitors. He was to deliver them by the 5th of August, but, by the 3rd of August, Portman could not arrange for the monitors as his usual supplier suddenly was not available. Portman then decided to go to another supplier who had a higher selling price rather than cancel the contract with Stewie Inc., as he believed it was his duty to do so. Which of the following moral theories matches Portman's behavior?
a. Kantian ethics
b. utilitarianism
c. Rawls's social justice theory
d. moral relativism
Question 23. are federal agencies that have broad regulatory powers over key areas of the national economy.
a. Independent federal administrative agencies
b. State administrative agencies
c. Law enforcement agencies
d. Cabinet-level federal departments
Question 24. The is a federal administrative agency that is primarily responsible for regulating the safety of meat, poultry, and other food products.
a. U.S. Department of Agriculture
b. Consumer Product Safety Commission
c. Food and Drug Administration
d. Federal Trade Commission
Question 25. Which of the following federal administrative agencies enacts the Clean Water Act?
a. the Environmental Investigation Agency
b. the Environmental Protection Agency
c. the Ministry of Environmental Protection
d. the Association of Environmental Professionals
Part -2:
Business Law
Select the single best answer for each question or statement, then transfer your answers to the appropriate scan sheet provided.
1. A merger between two or more companies that compete in the same business and geographical market is known as a(n)
a. horizontal merger
b. vertical merger
c. market extension merger
d. conglomerate merger
2. Which of the following is considered real property?
a. a plantation
b. a car
c. a piece of furniture
d. a copyrighted song
3. A transaction in which an owner transfers his or her personal property to
another to be held, stored, or delivered is known as a(n)
a. arraignment
b. easement
c. bailment
d. accession
4. The legal rights that an owner has to possess, use, and enjoy his or her property are known as
a. future interests
b. estate in land
c. easement rights
d. estoppel by deed
5. Which of the following replaced the General Agreement on Tariffs and Trade (GATT)?
a. World Bank
b. World Trade Organization
c. International Monetary Fund
d. North American Free Trade Commission
6. What function of the law is being served when passing laws that protect the U.S. government from the risk of being forcefully overthrown?
a. maintaining the status quo
b. shaping moral standards
c. facilitating orderly change
d. promoting social justice
7. What was the key reason for the creation of law courts during the early development of the English common law?
a. to administer law in a uniform manner
b. to help merchants form a standardized set of commercial laws
c. to increase the power of the king in law-making
d. to facilitate legal disputes for the wealthy and influential
8. 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 can enact a law that forbids a foreign country from doing business in that state if the country engages in activities that are not condoned by the state.
c. Direct regulation of foreign commerce by the federal government violates the Commerce Clause.
d. A state government is only permitted to regulate foreign trade indirectly.
9. The tort of defamation of character requires a plaintiff to prove that the defendant
a. publicized a private fact about the plaintiff
b. insulted people closely related to the plaintiff, such as family or friends
c. published an untrue statement of fact about the plaintiff to a third party
d. made one or more financial deals with the plaintiff under a false identity
10. Which of the following is suitable for copyrighting?
a. buildings
b. musical compositions
c. business methods
d. product logos
11. A(n) is considered a less serious crime, not inherently evil but prohibited by society, and punishable by fines or imprisonment for one year or less.
a. indictable offence
b. violation
c. felony
d. misdemeanor
12. A contract is a(n) if the offeror's promise is answered with the offeree's promise of acceptance.
a. unilateral contract
b. bilateral contract
c. executed contract
d. executory contract
13. A contract that has been fully performed by both sides is called an contract.
a. executory
b. executed
c. option
d. executive
14. A is a distinct form of draft drawn by a financial institution and payable on demand.
a. promissory note
b. check
c. deed
d. letter of credit
15. Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from people who want to purchase the house. He is not allowed to seal a deal without Marcus's consent. Marcus goes away on a month-long trip during which he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity to the house. Marcus then comes back and pays Dean for the electricity repair. What is the nature of the agency that Dean used to fix the electricity problem in the house?
a. implied agency
b. agency by ratification
c. power of attorney
d. express agency
16. The workplace. is a federal act legislated in 1970 that promotes safety in the
a. OSHA
b. FLSA
c. FMLA
d. ERISA
17. The oversees union elections, prevents employers and unions from engaging in illegal or unfair labor practices, and enforces and interprets certain federal labor laws.
a. NLRA
b. NLRB
c. AFL
d. CIO
18. A limited partnership has two types of partners,
a. general partners and sole proprietors
b. general partners and limited partners
c. ordinary partners and liable partners
d. special partners and sole proprietors
19. Which of the following is true for a corporation's incorporation into a state?
a. Domestic corporations can incorporate into only one state.
b. Domestic corporations can incorporate into all states that they conduct business in.
c. Alien corporations can only incorporate into one state.
d. Foreign corporations can incorporate into more than one state.
20. The Food, Drug, and Cosmetic Act is a federal statute that
a. covers all food products including poultry and processed meat
b. grants approval for food additives, drugs, cosmetics, and medicinal devices
c. implements the Federal Meat Inspection Act enacted in 1906
d. protects the public by providing greater medical coverage of food- related illnesses
21. The Consumer Product Safety Commission is
a. a communion of two state-funded regulatory bodies working together to ensure consumer safety
b. a federal body created to ensure the safety of a few consumer products like motor vehicles, boats, aircraft, and firearms
c. an independent federal administrative agency that regulates potentially dangerous consumer products
d. a federal agency working to ensure product safety standards for food, poultry, medicines, and medical devices
22. Which of the following is true of the ownership rights of an abandoned property?
a. The finder and owner must share ownership of the property.
b. The finder acquires title to the property, even against its original owner.
c. The owner can reclaim his or her property completely from the finder.
d. The owner of the premises where property is mislaid is entitled to possession but cannot acquire title.
23. Which of the following is true of a life tenant?
a. A life tenant has the right to sell a life estate at will.
b. A life tenant is a person who gives a life estate to another.
c. A life tenant can possess a life estate to the point of rendering it worthless by permanent damage.
d. A life tenant is treated as the owner of the property for the duration of a life estate.
24. The is a staff of people that administers the day-to-day operations of the UN.
a. Council of Ministers
b. Security Council
c. General Assembly
d. Secretariat
25. Which of the following statements is true of the European Union?
a. All issues have to be passed unanimously by EU members to be enforced.
b. Every country in the European Union has adopted the euro as its monetary unit.
c. Custom duties have been removed among member nations of the European Union.
d. Custom tariffs have been removed for trade between the EU and the rest of the world.