1. What defense can an employer use to a
charge of sexual harassment?
- The
harassed employee was not made aware of the company's antiharassment
policies.
- The
harassed employee took advantage of the preventive measures provided by the
company but still could not avoid being harassed.
- The
employer does not have any complaint mechanisms for employees who are
harassed.
- The
employer used reasonable care to prevent and correct the sexually
harassing behavior.
2. Choose the correct statement about
the Environmental Protection Agency (EPA).
- It
is exclusively created to regulate air pollution standards.
- It
has the power to initiate judicial trials in case of violation of
environmental laws.
- It
does not enforce environmental laws related to the protection of wetlands.
- It
can enforce federal environmental regulations but cannot make regulations
on its own.
3. What is "riba" in the
context of Islamic law?
- It
is a compilation of decisions of the prophet.
- It
refers to the making of unearned profits.
- It
is the doctrine of proper behavior.
- It
refers to independent reasoning.
4. The state of Oriel, Selenasia, enacts
a law that imposes a 40 percent tax on automobiles that are made outside of
Selenasia and sold in the state. However, Oriel does not impose this tax on
Selenasian-made automobiles that are sold in Oriel. This scenario resembles a
violation of which clause of the U.S. Constitution?
- The
Multilateral Treaty Clause
- The
Bilateral Treaty Clause
- The
Foreign Commerce Clause
- The
Treaty Clause
5. Teledor Inc. and Comunika Inc. are
two competing cellphone manufacturers. Jane, a customer at Teledor, is told by
an employee that Comunika phones have weak battery back-up and are very prone
to damage. The employee makes these remarks even though he knows that they are
completely false. Jane, who has been contemplating between Teledor and
Comunika, is influenced by what she hears and purchases a Teledor phone. What
kind of intentional tort should be used against Teledor in this scenario?
- Malicious
prosecution
- Disparagement
- Battery
- Appropriation
6. Identify an accurate statement about
res ipsa loquitur, a special negligence doctrine.
- It
applies to cases in which injuries that occurred were not foreseeable.
- It
applies to cases in which the plaintiff also contributed to the
negligence.
- It
applies to cases in which it can be assumed that the defendant was in
control of the situation in which the injuries occurred.
- It
requires the plaintiff to demonstrate how exactly the situation arose out
of the negligence of the plaintiff.
7. Identify an accurate statement about
the doctrine of comparative negligence.
- A
person who is partially responsible for causing his or her own injuries
cannot file a suit against the other party who partly caused the injuries.
- A
plaintiff who is partially responsible for causing his or her own injuries
cannot recover damages from the defendant.
- A
plaintiff who is partially responsible for causing his or her own injuries
can recover a proportion of the damages from the defendant.
- A
plaintiff who is partially responsible for causing his or her own injuries
can recover all the damages from the defendant.
8. What is true about the applicability
of strict liability?
- It
cannot be applied to products that are defectively manufactured.
- It
can be applied to sellers who fail to warn of generally known dangers.
- It
can be applied to products that are defectively packaged.
- It
cannot be applied to products that were not supported by sufficient
instructions.
9. Which statement best describes an
injunction as an equitable remedy?
- It
requires a breaching party to pay damages to the injured party for both
actual and foreseeable losses.
- It
orders a breaching party to perform the acts promised in a contract.
- It
prohibits a party from performing a particular act that may cause injury
to another party.
- It
allows a court to change the terms of a contract to make them true to the
parties' intentions.
10. Identify the true statement in the
context of a franchise arrangement.
- The
franchisee can sell the franchisor's products but can never manufacture
them.
- The
franchisor licenses the franchisee to use the former's trademarks.
- The
franchisee can manufacture the franchisor's products but can never
distribute them directly to consumers.
- The
franchisor is essentially the owner of the franchisee.
11. Identify an accurate statement about
distributional interest in the context of limited liability companies (LLCs).
- A
transferee of a distributional interest receives all distributions from
the LLC to which the transferor belonged.
- A
member's distributional interest can be transferred completely, or partly.
- A
transferee of a distributional interest automatically becomes a member of
the LLC.
- A
member who transfers his or her distributional interest will no longer be
liable for the debts and obligations of the LLC.
12. What is true about consideration in
the context of contracts?
- It
also encompasses performances and services.
- It
is exclusively in the form of tangible payments such as money or property.
- It
is typically included in gift promises.
- It
is an optional component of a written contract that parties can choose to
omit.
13. What does a current plaintiff need
to prove to succeed in a malicious prosecution lawsuit?
- The
original plaintiff did not initiate the original lawsuit.
- The
original lawsuit had probable cause.
- The
original lawsuit was initiated without malice.
- The
current plaintiff suffered injury because of the original lawsuit.
14. In which case will a limited partner
in a limited partnership have liability that extends beyond the contributions
made by him or her?
- When
the limited partner provides personal guarantee for a loan taken by the partnership
- When
one of the general partners withdraws from the limited partnership
- When
the limited partnership is involved in a tort and needs to pay
compensation as ordered by the court
- When
the limited partnership incurs severe losses
15. Identify a difference between
publicly held and closely held corporations.
- Shareholders
of publicly held corporations participate in management activities;
shareholders of closely held corporations do not.
- Closely
held corporations are large; publicly held corporations are comparatively
smaller.
- Publicly
held corporations have many shareholders; closely held corporations have
fewer shareholders.
- Closely
held corporations trade their shares on organized security markets;
publicly held corporations do not.
16. Identify a difference between
treasury shares and outstanding shares in a corporation.
- Outstanding
shares are the ones that are repurchased by the corporation; treasury
shares are not.
- Outstanding
shares have the right to vote; treasury shares do not.
- Treasury
shares are issued by the corporation; outstanding shares are not.
- Treasury
shares cannot be reissued; outstanding shares can be.
17. What is true about the scope of Good
Samaritan laws in the context of special negligence doctrines?
- They
apply to professionals like lawyers and architects.
- They
protect professionals from liability for their ordinary and gross
negligence.
- They
apply to medical health professionals.
- They
protect manufacturers and distributors from product liability.
18. Quenchers Inc., a heath drink
manufacturer, launches a new product called Sprint. The packaging of this drink
also includes a statement that says "Fifty times healthier than
Green." Green is a product of Booster Inc., another health drink
manufacturer. Quenchers has no research data to back this claim. What type of unfair
business practice is illustrated in the scenario?
- Deceptive
advertising
- Copyright
infringement
- Bait
and switch
- Restraint
of trade
19. What statement is true about the
powers of the Food and Drug Administration (FDA) in the context of drug
regulation?
- The
FDA can only regulate the manufacture of prescription drugs.
- The
FDA's powers are restricted to the regulation of the sale of drugs.
- The
FDA is not authorized to revoke licenses of drugs that are in use.
- The
FDA has the authority to license new drugs.
20. Choose the correct statement about
limited liability partnerships (LLPs).
- They
should have one or more general partners personally liable for the debts
and obligations of the partnerships.
- They
do not get flow-through tax benefits.
- They
cannot have partners who are professionals such as doctors or lawyers.
- They
are created by state and not federal laws.
21. Identify an accurate statement about
the Treaty Clause in the context of the United States and foreign affairs.
- It
states that a treaty can be formed when one-third of Senate members agree
to it.
- It
states that state governments can pass laws that contradict treaties
signed by the federal government.
- It
states that the U.S. president is the agent of the United States in
dealing with foreign nations.
- It
states that local state governments can also enter into treaties with
foreign nations.
22. What is true of the Economic
Espionage Act?
- It
criminalizes the theft of trade secrets through the use of the Internet.
- It
criminalizes the discovery of trade secrets through reverse engineering.
- It
provides federal protection exclusively to trademarks and service marks.
- It
relieves business owners of the obligation to protect their intellectual
property.
23. What is true of the necessary
elements of an environmental impact statement (EIS) according to the National
Environmental Policy Act (NEPA)?
- It
must mention the environmentalist parties that challenged the proposed
action in court.
- It
must contain a cost-benefit analysis of the proposed federal action and
alternative actions.
- It
must not refer to the expert opinions of engineers, geologists, or other
professionals.
- It
must not mention or describe any alternate actions to the proposed federal
action.
24. Which statement is true about the
different types of agency relationships?
- An
employer-employee relationship involves complete transfer of authority to
the employee.
- A
principal-agent relationship involves hiring an employee to enter into
contracts on behalf of the principal.
- A
principal-agent relationship involves assigning an employee a specific
physical task to perform.
- An
employer-employee relationship involves hiring an employee to act as an
agent of the employer.
25. Identify an accurate statement about
the Equal Pay Act.
- The
act states that the employer can lower the wages of employees to remedy a
wage disparity.
- The
act states that wages may differ when shift differences are involved.
- The
act exclusively covers federal workers.
- The
act does not encompass private-sector employees.
26. What is true of a vertical merger?
- It
combines the operations of two manufacturers in the same market.
- It
creates increased market share.
- It
combines the businesses of a supplier and a customer.
- It
combines the operations of suppliers in the same market.
27. Tanya and Amit, married for five
years, have filed for divorce. They are being assisted by Rebecca in reaching a
settlement. Rebecca is a retired judge, who meets with them together, and
individually, to discuss the strengths and weaknesses of each of their cases.
Which alternative dispute resolution method does this scenario best exemplify?
- Mini-trial
- Judicial
referee
- Mediation
- Arbitration
28. What is true about Jewish law?
- It
is based on the teachings in the Vedas.
- It
is not followed anymore in Jewish home countries.
- It
includes rules for religious and political aspects of life.
- It
excludes doctrines related to marriage and inheritance.
29. How does the Marine Protection,
Research, and Sanctuaries Act, enacted in 1972, extend environmental protection
to the oceans?
- By
requiring the Environmental Protection Agency (EPA) to create a list of
toxic air pollutants
- By
removing marine sanctuaries in ocean waters
- By
requiring industries to obtain a permit for dumping wastes into ocean
waters
- By
requiring industries to incur the clean up costs for contaminations caused
by them
30. Which statement about personal
property is true?
- It
exclusively refers to tangible property.
- It
can be owned only by one person.
- It
refers to property that is movable.
- It
exclusively encompasses real estate property.
31. What is the primary function of the
International Monetary Fund (IMF)?
- To
create free trade zones for member countries and thereby bring them
together
- To
provide long-term loans to developing countries
- To
ensure smooth and free trade flow among member countries by settling
disputes
- To
promote international fiscal stability by providing temporary monetary
assistance to member countries
32. What is a disadvantage of a sole
proprietorship?
- The
owner has to take up legal responsibility for any torts committed in the
business.
- The
process of forming a sole proprietorship involves many costs.
- The
sole proprietorship is difficult to dissolve as many shareholders are
involved.
- The
owner is required to present several legal documents to obtain federal
approval to start the business.
33. What must a complainant prove in a
case of disparate-treatment discrimination?
- The
employer cited behavioral reasons for rejecting the complainant.
- The
employer rejected the complainant despite the latter having the required
qualifications.
- The
employer sought applications from people with qualifications better than
the complainant's.
- The
employer rejected others with the same qualifications.
34. What is true about Title VII of the
Civil Rights Act of 1964 in the context of gender discrimination?
- It
covers discrimination based on sexual orientation.
- It
does not prohibit discrimination based on pregnancy-related medical conditions.
- It
covers only women.
- It
excludes sexual harassment.
35. What is a gift causa mortis?
- A
gift that is made in anticipation of theft.
- A
gift that cannot be revoked.
- A
gift that is made in anticipation of death.
- A
gift that is made involuntarily.
36. Identify a difference between
tenancy by the entirety and community property as forms of concurrent
ownership.
- Tenancy
by the entirety allows a spouse to transfer his or her interest without
the other spouse's consent; community property does not.
- Tenancy
by the entirety does not grant the rights of survivorship; community
property does.
- Tenancy
by the entirety passes the deceased person's complete property to the
survivor; community property passes only one-half of the property to the survivor.
- Tenancy
by the entirety applies to married couples; community property does not
apply to married couples.
37. Waves, Shimmer, and Mist are
manufacturers and sellers of beauty products. Each of these companies
independently decides not to sell its products to Redefine, a cosmetic
retailer. Which form of vertical restraint does this scenario best exemplify?
- Group
parallelism
- Conscious
parallelism
- Malicious
boycott
- Product
boycott
38. Identify the true statement about
the rights and duties of partners in a general partnership.
- A
partner in a general partnership has the right to have the transactions of
another partner reviewed by a court.
- A
partner in a general partnership has the right to compete with the
partnership by opening another business by himself or herself.
- A
partner in a general partnership has the right to sue the partnership or
another partner at law.
- A
partner in a general partnership has the right to use the facilities of
the business for personal use.
39. Which statement about strict
liability is true?
- It
does not protect bystanders and other individuals who were affected by
defective products.
- It
does not require a contract to be present between the plaintiff and the
defendant.
- It
places liability only on manufacturers and not sellers.
- It
holds the defendant liable only to the purchaser of a defective product.
40. What is the scope of coverage of
Title VII of the Civil Rights Act of 1964?
- It
applies to state and local governments.
- It
applies to labor unions with five or more members.
- It
applies to employers with five or more employees.
- It
applies to Native American tribes.
41. Identify an accurate statement about
Hindu Law.
- It
is based on the teachings of the Torah.
- It
currently encompasses doctrines related to marriage.
- It
includes teachings of rabbis.
- It
is currently a combination of classical Hindu law and common law.
42. Felicia Carter, a famous singer,
finds her poster on a billboard of a music academy. Felicia sues the academy
because it did not inform her or seek permission to use her poster. What kind
of intentional tort does this scenario best exemplify?
- Disparagement
- Appropriation
- Invasion
of the right to privacy
- Defamation
of character
43. Identify a difference between the
International Monetary Fund (IMF) and the World Bank.
- The
IMF is funded by contributions of developed countries; the World Bank is
funded by developing countries.
- The
IMF has its headquarters in Washington, DC; the World Bank in The Hague,
the Netherlands.
- The
IMF has more than 180 member countries; the World Bank has 60 member
countries.
- The
IMF grants short-term loans to member countries; the World Bank grants
long-term loans to developing countries.
44. Tracy goes to a shopping mall, and
she unknowingly drops her identity card. After a while, she realizes that the
card is missing and starts looking for it. The card is found by Ben who is also
at the mall. Ben decides to contact Tracy and return her identity card. In this
scenario, what kind of property would Tracy's identity card be?
- Abandoned
property
- Real
property
- Mislaid
property
- Lost
property
45. Which scenario best exemplifies race
discrimination?
- Sarah
and Sandeep apply for the same post at Diadem Inc. The recruiter selects
Sandeep because he has more work experience than Sarah.
- Sarah
and Sandeep apply for the same post at Diadem Inc. The recruiter selects
Sarah because she has better qualifications and her resume is more
impressive.
- Sarah
and Sandeep apply for the same post at Diadem Inc. The recruiter selects
Sarah because Sarah is of the same ethnic group as the recruiter.
- Sarah
and Sandeep apply for the same post at Diadem Inc. The recruiter selects
Sandeep because he believes that a man would suit the job role better.
46. Identify a characteristic of an
implied agency.
- The
agency relationship can be deemed void only with the consent of both the
parties.
- The
agreement of the agency relationship is in written form.
- The
agency relationship is formed after both the parties have agreed upon
common terms.
- The
degree of authority of an agent is defined by the circumstances and facts
of a particular scenario.
47. Identify an accurate statement about
the World Trade Organization (WTO).
- It
has 180 member nations.
- It
has its headquarters in Washington, DC.
- It
has a seven-member appellate body that hears appeals.
- It
has a five-member panel that hears trade disputes.
48. Identify the true statement about
the ownership of mislaid property.
- The
finder of mislaid property gets complete ownership of the property against
the owner of the premises in which the property was mislaid.
- The
original owner cannot reclaim the ownership of mislaid property if it has
been in the possession of someone else.
- The
finder of mislaid property can legally acquire partial ownership of the
property from the original owner.
- The
owner of the region where the property was mislaid is automatically
obliged to take care of the property until the rightful owner finds it.
49. What is true about a quitclaim deed?
- It
is most frequently used among sellers and buyers.
- It
provides maximum protection to the grantee as it involves complete
transfer of ownership to him or her.
- It
does not include an affirmation that the grantor owns the property that is
being transferred.
- It
is exclusively used during the sale of personal property and cannot be
used during the sale of real property.
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50. What is true of the Americans with
Disabilities Act (ADA)?
- An
employer cannot conduct medical examinations of an employee post
employment.
- An
employer can ask a job applicant about the existence, nature, and severity
of his or her disability.
- An
employer can inquire about a job applicant's ability to perform
job-related functions in terms of health.
- An
employer can conduct preemployment medical examinations.
51. Dany purchases eye drops
manufactured by a pharmaceutical company. She unknowingly leaves the bottle of
eye drops on her living room table. Dany's two-year-old daughter finds the
bottle and opens it easily. Dany realizes that the seal on the bottle was not
strong enough and was removed far too easily. What type of product defect is
illustrated in the scenario?
- Inadequate
instructions
- Failure
to warn
- Defect
in packaging
- Defect
in manufacture
52. Tanvi was the breaching party in a
breach of contract lawsuit. The court ordered Tanvi to pay a certain amount of
damages to the plaintiff. However, Tanvi refused to pay these damages. The
court has now issued a writ that orders the county sheriff to seize and auction
the property owned by Tanvi to pay the damages owed to the plaintiff. In this
scenario, what kind of writ has been issued in the context of remedies for a
breach of contract?
- Writ
of attachment
- Writ
of quo-warranto
- Writ
of garnishment
- Writ
of payment
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531 Final Exam Answers
53. What is true of the Sherman Act?
- It
expressly outlaws monopolies.
- It
does not include criminal sanctions.
- It
excludes predatory pricing.
- It
prohibits illegal restraints of trade.
54. The country of Tahomia entered into
an agreement with the federal government of Batang to reduce trade barriers
between the two countries. However, one state in Tahomia has certain laws that
prohibit the sale of Batang-made products. According to the constitution of
Tahomia, such rules made by the state will automatically become invalid. This
scenario closely resembles which clause of the U.S. Constitution?
- The
Convention Clause
- The
Treaty Clause
- The
Bilateral Treaty Clause
- The
Foreign Clause
55. Identify the true statement about
the formation of a limited partnership.
- The
contributions made by the partners in a limited partnership do not have to
be disclosed.
- Limited
partnerships can be formed informally among general and limited partners.
- Limited
partnerships are required to disclose the nature of their business to
legal entities.
- The
name of a limited partnership should always include the surname of the
limited partner.
56. Tamara is a content developer at
Moon Loop Inc., a content management company. Her job profile involves
describing diagrams and flowcharts. She is not allowed to make decisions or
sign agreements on behalf of the company. In this scenario, what agency
relationship most likely exists between Tamara and Moon Loop Inc.?
- Principal-employer
relationship
- Principal-agent
relationship
- Employee-agent
relationship
- Employer-employee
relationship
57. What is true of the International
Monetary Fund (IMF) as a United Nations agency?
- It
has its headquarters in The Hague, the Netherlands.
- It
does not provide loans to member countries.
- It
is funded by contributions of member countries.
- It
was established before the Great Depression of the 1930s.
58. StacyMiller Publishers and
Scriblotts are two of the largest publishing houses in Paramond. They decide to
merge for mutual benefit. What kind of merger does this scenario best
exemplify?
- Horizontal
merger
- Vertical
merger
- Upward
merger
- Conglomerate
Merger
59. Cetria Inc. has been contracted to
manufacture fighter jets for the U.S. Army, following specific guidelines and
requirements. After a week of flying the first set of delivered jets, the jets
start deteriorating and even cause injuries to the fighter pilots. However,
Cetria cannot be held liable for these defects and injuries. What defense is
most likely to protect Cetria from liability?
- Government
contractor defense
- Generally
known danger defense
- Assumption
of risk defense
- Supervening
event defense
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LAW 531 Final Exam Questions
60. Identify an accurate statement about
shareholders.
- They
elect the board of directors of a corporation.
- They
handle the daily operations of a corporation.
- They
have several management duties.
- They
are agents of a corporation.
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