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