St. Petersburg College

GEB 3213

Quiz review

1)Law serves both to facilitate orderly change and to maintain the status quo.

1. 1. True
   2. False
2. A moral theory which dictates that people must choose the action and follow the rule that provides the greatest good to society is:
   1. Ethical relativism.
   2. Utilitarianism.
   3. Rawls's social justice theory.
   4. Kantian ethics.
3. Under                       , fairness is considered the essence of justice.
   1. utilitarianism
   2. ethical fundamentalism
   3. Rawls's social justice theory
   4. Kantian ethics
4. Which of the following is NOT a proper procedure when conducting a social audit?
   1. The board of directors should review the results of the audit
   2. Findings should be reported directly to the company's board of directors
   3. Personnel should cooperate fully during the auditing process
   4. The audit should be conducted by in-house personnel

5. Corporation Z determined it owes a duty to subsidize schools and assist in educating children; the company subscribes to which theory of social responsibility?
   1. Maximizing profits
   2. Stakeholder interest theory
   3. Corporate citizenship

5. 4. Moral minimum
6. The only way to bring a lawsuit in federal court, is to have diversity of citizenship between plaintiff and defendant, and the amount in controversy must exceed $25,000.
   1. True
   2. False

7. To bring a lawsuit, a plaintiff must have some stake in the outcome of the lawsuit.
   1. True
   2. False
8. With                        , a court has jurisdiction over the parties to the lawsuit.
   1. in personam jurisdiction
   2. in rem jurisdiction
   3. subject matter jurisdiction
   4. quasi in rem jurisdiction
9. Which of the following is NOT a requirement to trigger a state's long-arm statute
   1. The non-resident committed a tort within the state.
   2. The non-resident was served a summons within the state.
   3. The non-resident entered into a contract either in the state or that affects the state.
   4. The non-resident transacted business in the state that allegedly caused injury to a person.
10. Mediation is a form of alternative dispute resolution in which the parties choose an impartial third party to hear and decide the dispute.
    1. True
    2. False

11. Assume that a federal regulation is imposed that requires bike manufacturers to disclose the weight of the largest frame size, fully equipped for riding, any time it advertises the weight of its bikes. If this requirement were challenged under freedom of speech, most likely:
    1. It would be found to be an acceptable regulation of commercial speech.
    2. It would be found to be an unacceptable prohibition of commercial speech.
    3. The court would not consider the case because this advertising is not political speech.
    4. The court would evaluate the restriction using strict scrutiny
12. A false statement that appears in writing or other fixed medium is called libel.
    1. True
    2. False
13. A manufacturer or seller of a power lawn mower is not liable if a consumer lifts the mower on its side to cut a hedge and is injured when the mower falls and cuts him.
    1. True
    2. False
14. If a competitor of Dell Computers told a prospective customer that "Dell Computers always break down," when in fact they rarely break down, it would be considered:

1. Interference with a contractual obligation.
2. Misappropriation
3. Disparagement
4. Trespass

15. Extortion of public officials is called extortion under color of official right.
    1. True
    2. False
16. Quasi-contract law attempts to prevent unjust enrichment when no contract actually exists.
    1. True

16. 2. False
17. An option is revocable during the option period.
    1. True
    2. False

18. What constitutes a necessary for a minor will depend on the particular minor's own individual circumstances.
    1. True
    2. False
19. The following statements are true concerning the objective theory of contracts except:
    1. The intent of the parties to enter into an implied-in-fact or express contract is judged by the reasonable person test
    2. Offers that are made in jest, anger, or undo excitement cannot be the basis of a contract.
    3. The reasonable person standard is based on the subjective intent of the offeror when making the offee
    4. Subjective intent is irrelevant.
20. Generally, which of the following will not automatically terminate an open offer?
    1. Death of the offeror.
    2. Death of the offeree.
    3. Destruction of the subject matter of the contract.
    4. Changed economic circumstances.

21. A contract entered into because of duress is illegal and thus, void.
    1. True
    2. False

22. A contract entered into by one against whom undue influence has been exerted is voidable on the part of the innocent party.
    1. True
    2. False
23. An intended third party beneficiary can enforce a contract against the party who promised to render performance.
    1. True
    2. False
24. What is the effect of one party being mistaken about the subject matter of a contract?
    1. Neither party can rescind the contract or recover damages.
    2. Either party can rescind the contract.
    3. Either party can rescind the contract, and the mistaken party can recover damages.
    4. The mistaken party can rescind the contract.
25. Undue influence is characterized by one party being put at a disadvantage in a contract due to:
    1. A party taking advantage of superior knowledge about the subject matter in a contract.
    2. A party taking advantage of economic advantage in a transaction.
    3. A party taking advantage of it being less urgent for that party to reach an agreement.
    4. A party taking advantage of another's weakness and the influence the party can exert over another.

26. In a guaranty arrangement, the guarantor:
    1. Promises to pay the debt of another in any circumstance.
    2. Promises to pay the debt of another if that other person does not pay.
    3. Promises to pay the debt of another contingent upon the happening of an external event.
    4. Promises to assume responsibility for the quality of goods.

27. Assume that one party substantially, but not completely, performs a contract, creating a minor breach. Which of the following remedies may the aggrieved party choose?
    1. Deduct the cost necessary to complete performance from the payment due to the breaching party
    2. Sue the breaching party for the cost to complete performance.
    3. Both A & B
    4. Neither A nor B
28.               is an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.
    1. Reformation
    2. Rescission
    3. Specific Performance
    4. An injunction
29. Which of the following best describes how email contracts are viewed under the law?
    1. Email contracts are not usually valid because of the ease of deleting email messages.
    2. Email contracts for goods can be valid, but not email contracts for services.
    3. Email contracts are valid only for contracts less than $500.
    4. Email contracts are generally treated similarly to contracts negotiated by other means.

30. Which of the following are securities?
    1. Investment contracts, stocks, bonds, but not warrants
    2. Stocks, bonds, pre-organization subscription agreements, and some investment contracts
    3. Bonds and common stocks, but not preferred stocks
    4. Stocks, bonds, pre-organization subscription agreements, but not investment contracts

31. Which of the following is not an accredited investor for purposes of the private placement exemption under the Securities Act of 1933?
    1. A person with a net worth of at least $1,000,000
    2. A corporation or partnership with total assets in excess of $5,000,000
    3. A director of a corporation that is the issuer
    4. A person who had an income of at least $200,000 in the most recent year

32. In general, the Statute of Frauds sets requirements for:
    1. Kinds of damages that are recoverable.
    2. Kinds of misrepresentations that are actionable.
    3. Kinds of contracts that must be in writing to be enforceable.
    4. Kinds of reliance that is justifiable.
33. An agency relationship exists in any circumstance where one person is authorized to act on behalf of another.
    1. True
    2. False
34. In order to create an agency relationship, there must be a written agreement.
    1. True
    2. False

35. Implied authority can be best described as a situation where:
    1. The conduct of two parties indicates that they are acting in a principal and agent capacity.
    2. The principal and agent undertake actions in accordance with their earlier agreement that one act as agent for the other.
    3. The principal has made representations to a third party that someone is to act as her agent.

1. 4. The agent has made representations to a third party that he is acting as an agent for another.

36. Disparate treatment discrimination occurs when an employer discriminates against an entire protected class.
    1. True
    2. False

37. A plaintiff in a sexual harassment case will not prevail if the employer can prove that it exercised reasonable care in trying to prevent and promptly correct sexual harassment behavior and that the plaintiff unreasonably failed to take advantage of preventive or corrective procedures made available to the plaintiff.
    1. True
    2. False
38. Under the Civil Rights Act of 1964, an employer cannot discriminate against a member of a protected class in:
    1. Hiring, promotion and termination.
    2. Hiring only.
    3. Promotion only.
    4. None of the above
39. Which of the following is a correct statement of the requirements for a bona fide occupational qualification?
    1. Job related and cost effective
    2. Job related and a business necessity
    3. Rationally based and evenly applied
    4. Job related and nondiscriminatory
40. If an employee is injured during the course of her employment, she has a choice to either sue the employer in court or proceed with a workers' compensation claim.

1. 1. True
   2. False

41. Which of the following statutes regulates internal union affairs and establishes certain rights of union members?
    1. The Norris-LaGuardia Act
    2. The National Labor Relations Act
    3. The Labor-Management Relations Act
    4. The Labor-Management Reporting and Disclosure Act

42. If, as an employer, you need to hire a foreign national, and the person is not a permanent resident, you must comply with the employment verification requirements of the Immigration Nationality Act.
    1. True
    2. False
43. In order to legally hire an alien to work for your company in the United States; even on a temporary basis, in general what must you file on the alien's behalf?
    1. An immigrant petition.
    2. A work visa.
    3. A nonimmigrant petition.
    4. None of the above.
44. Which of the following is not a temporary worker classification for nonimmigrants?
    1. First-Preference EB-1
    2. H-3
    3. O-1
    4. P-3

45. For some permanent worker visa preferences, one must already have a job offer from a U.S. employer although the employer is not considered the immigrant's sponsor.
    1. True
    2. False

46. Employers cannot prevent employees from entering the work premises if the employer anticipates a strike
    1. True
    2. False

47. Which of the following statutes provides that it is legal for employees to organize?
    1. The National Labor Relations Act
    2. The Labor-Management Relations Act
    3. The Norris-LaGuardia Act
    4. The Worker Adjustment and Retraining Notification Act
48. Susan is an employee of ABC Promotions, however, she is not authorized to enter into contracts or otherwise bind ABC to any agreements, however, last month when her supervisor was out a client came in and requested certain flyers be ordered for an upcoming event. The flyer cost ABC $1,000.00, and when they were received ABC forwarded the flyers to the client who in turn paid ABC for the flyers and its services, and used the flyers to promote its event. ABC received a bill from the printing company that prepared the flyers but refuses to pay the bill. Is ABC obligated to pay the printing bill?
    1. ABC is not liable because Susan never had it's authority to order the flyers.
    2. ABC is liable because by it's actions it ratified Susan acting as an agent for the specific matter at issue.
    3. No ABC is not liable and it should fire Susan.
    4. None of the above.
49. Which federal statute governs minimum wages?
    1. Fair Labor Standards Act

49. 2. Fair Labor Income Act
    3. Norris-LaGuardia Act
    4. National Labor Relations Act
50. When creating contract provisions it is always best to avoid which of the following?
    1. Jurisdiction provisions
    2. Binding arbitration provisions
    3. Attorney’s fees provisions
    4. None of the above

51. That which must be obeyed and followed by citizens subject to sanctions or legal consequences can be thought of as law.
    1. True
    2. False
52. The concept of flexibility in the law is best illustrated by:
    1. The use of precedent to decide similar cases in similar ways.
    2. The ability to overturn precedent when it is no longer valid or when it is erroneous.
    3. The use of appointed judges rather than elected judges.
    4. Imposing mandatory penalties for criminal violations
53. A forum-selection clause is a contract provision that specifies what state or country's law will be applied in deciding a dispute concerning a domestic or international contract.
    1. True
    2. False

54. With                        , a court has jurisdiction over the parties to the lawsuit.
    1. in personam jurisdiction
    2. in rem jurisdiction

54. 3. quasi in rem jurisdiction
    4. sua sponte
55.                       is a form of alternative dispute resolution in which the parties choose a neutral third party assists the disputing parties in reaching a settlement of their dispute.
    1. A mini-trial
    2. Mediation
    3. Conciliation
    4. Arbitration
56. Throwing a lit match on the ground in the forest and causing a fire is a breach of a duty of care.
    1. True
    2. False
57. A tort in which the presumption of negligence arises because the defendant was in exclusive control of the situation and the plaintiff would not have suffered injury but for someone's negligence, is called:
    1. Negligence per se.
    2. res ipsa loquitur.
    3. Strict liability.
    4. Assumption of risk.
58. Which of the following is not a requirement to trigger a state's long-arm statute?
    1. The non-resident committed a tort within the state.
    2. The non-resident was served a summons outside the state.
    3. The non-resident entered into a contract either in the state or that affects the state.
    4. The non-resident transacted business in the state that allegedly caused injury to a person.

59. Mediation is a form of alternative dispute resolution in which the parties choose an impartial third party to hear and decide the dispute.
    1. True
    2. False

60. A manufacturer or seller of a power lawn mower, generally, will not be liable if a consumer lifts the mower on its side to cut a hedge and is injured when the mower falls and cuts him.
    1. True
    2. False
61. A reward advertisement in the paper stating, "Fifty dollars for the return of a black briefcase. Call 329-5862." can be accepted by a promise to look for the briefcase.
    1. True
    2. False

62. Which of the following are necessary to meet the requirements of a definite offer?
    1. Offeror objectively intends to be bound by the offer
    2. Terms must be definite or reasonably certain
    3. The offer must be communicated to the offeree
    4. All of the above

63. A contract entered into by one against whom undue influence has been exerted is voidable on the part of the innocent party.
    1. True
    2. False
64. In general, the Statute of Frauds sets requirements for:
    1. Kinds of damages that are recoverable.
    2. Kinds of misrepresentations that are actionable.
    3. Kinds of contracts that must be in writing to be enforceable.

64. 4. Kinds of reliance that is justifiable.
65. Under the Electronic Communications Privacy Act, an employer can access the stored email of an employee if the employee's email is stored on a system provided by the employer.
    1. True
    2. False
66. The primary function of an agent in a principal-agent relationship is to:
    1. Protect the principal from legal liability.
    2. Conduct business on behalf of the principal.
    3. Enter into contracts with the principal.
    4. Operate as a partner with the principal.
67. An agent negotiates a contract with a third party for which the agent did not have express authority. Which of the following is true?
    1. The principal can never be held liable on the contract because the agent exceeded his authority.
    2. Either implied or apparent authority might cause the principal to be liable on the contract.
    3. The principal can be liable on the contract only if apparent authority was present.
    4. The principal can be liable on the contract only if the agent had implied authority to enter into the contract.

68. Which is true about the two kinds of discrimination that are actionable under Title VII?
    1. Disparate treatment refers to individuals and disparate impact refers to protected classes.
    2. Disparate impact and disparate treatment are both based on how an employer treats a protected class.
    3. Disparate impact and disparate treatment are both based on how an employer treats a specific individual.
    4. Disparate impact refers to individuals and disparate treatment refers to protected classes.

69. Because an employer is required to provide reasonable accommodations to an employee with a disability, an employer is permitted to ask about disabilities during a job interview.
    1. True
    2. False

70. The concept of Bona Fide Occupational Qualification is broadly interpreted by the courts.
    1. True
    2. False

81. An intellectual property licensing arrangement is a method used to transfer certain rights of use, but not ownership, of intellectual property.

1. True
2. False

82. A business arrangement where one party allows another to use its name, trademark, or sell its products in its business is known as a(n):

1. Joint Venture
2. Proprietorship
3. Franchise
4. Limited Liability Company

83. Different issues of preferred stock can entitle the owners to significantly different rights and preferences.

1. True
2. False

84. The Sarbanes-Oxley Act allows the SEC to issue an order prohibiting anyone who has committed securities fraud from acting as an officer or director of any company.

1. True

2. False

85. Charitable Remainder Trusts have only 1 beneficiary.

1. True
2. False

86. Bob and Mary are husband and wife. They co-own their home as tenants by the entirety. In early 2009, Bob, without Mary's knowledge, sells his share of the home to Alice, a ski instructor at Aspen ski area. Bob's will leaves all his property to Edith, also a ski instructor but at Sun Valley ski area. Bob unexpectedly dies on December 16, 2009. Who will own the home following his death?

1. Edith and Mary will each own half.
2. Mary will have total ownership.
3. Edith will have total ownership.
4. Alice and Mary will each own half.

87. Which of the following would not be a misappropriation of a trade secret?

1. Paying an engineer who is working at a competitor to disclose the trade secret to you
2. Buying the competitor's product, then tearing it apart and analyzing it in your laboratory to reveal the trade secret
3. Hiring a spy to break into a competitor's offices to acquire the secret
4. Asking one of your current engineers to disclose a trade secret of her former employer, which she then does

88. In the United States, if two people independently develop the same invention, the patent will be granted to the first to invent, not the first to file, for a patent.

1. True
2. False

89. In order to do business in a state other than that in which a limited liability partnership was formed, the limited liability partnership must register as a foreign limited liability partnership.

1. True
2. False

90. Which statement is true about franchisor liability for acts of a franchisee?

1. Franchisors are liable for acts of their franchisees in most circumstances.
2. Franchisors are never liable for the acts of their franchisees unless the franchisor was a party to the act of the franchisee.
3. Whether a franchisor is liable for the acts of its franchisee depends on the terms of the franchise agreement.
4. Franchisors are usually not liable for the acts of their franchisees when the franchisee is an independent contractor.

91. A monopoly is commonly referred to as a market in which there is a single seller or a very large number of sellers.
    • True
    • False

92. Which provisions of the Sherman Antitrust Act attempt to curtail practices that result in monopoly pricing or output?
    • Sections 1 & 2
    • Section 1 & 3
    • Amended sections 1 & 4
    • None of the above  

93. The term "comity" means the,
    • Requirement that states must treat each other with respect.
    • Rule that states must treat each other with respect.
    • The practice or courtesy between states to treat each other with goodwill and civility.
    • None of the above.

94. An "independent state,"
    • Is under the political control of other states.
    • Has surrendered some aspect of its political functions to another state.
    • Is free yet under the control of another state.
    • Is one that is free from the political control of other states.

95. According to the doctrine of imputability, a state is responsible for any act that takes place in its country regardless of the relationship between the perpetrator and the State.
    • True
    • False

96. International law is the body of legal rules and norms that regulates activities carried on beyond the legal boundaries of a single state.
    • True
    • False  
97. Which of the following are considered deceptive practices?
    • Bait and Switch Advertising
    • Puffing
    • Half Truth
    • All of the above

98. The doctrine of sovereign immunity refers to a country or its officials immunity from criminal lawsuits only.
    • True
    • False

99. The following clause gives Congress the power to regulate commerce with foreign nations.