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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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
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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
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
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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.
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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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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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