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Business Law Final Exam Review

Total questions: 60

Worksheet time: 30mins

Name
Class
Date
1.

If a state constitution and the U.S. Constitution conflict, which prevails?

a)

The US Constitution

b)

Neither prevails, the matter is referred to Congress

2.

U. S. President Johnson signed into law a bill that Congress sent to him. The Supreme Court declared the law unconstitutional a month later. Which government branch is the Supreme Court representing?

a)

Executive

b)

Judicial

3.

Ashley forgot to pack a lunch for work and finds that she is very hungry half way through her day. She knows she could easily take another persons lunch from the office refrigerator but decides not to because she would not want someone to do that to her. Which form of ethical reasoning did Ashley use?

a)

The Golden Rule

b)

The Greatest Good

4.

After a terrorist bombing attack, which federal agency has jurisdiction to assist with clean up and recovery?

a)

US Marshall

b)

Homeland Security

5.

Which North Carolina court would be the first to hear a case involving a misdemeanor larceny charge?

a)

NC Court of Appeals

b)

NC District Court

6.

Which federal court would a plaintiff expect to originate their case and have their complaint heard by a jury?

a)

District Court

b)

Superior Court

7.

U. S. President Johnson signed into law a bill that Congress sent to him. The Supreme Court declared the law unconstitutional a month later. Which government branch is Congress representing?

a)

Executive

b)

Legislative

8.

When a case is heard by the U.S. Court of Appeals it will be adjudicated by a panel of _____ justices in one of _____ circuits?

a)

9/13

b)

3/13

9.

What is the official term given to a defendants response to a complaint in a civil case?

a)

Answer

b)

Testimony

10.

Which of the following scenarios would the N.C. Court of Appeals have jurisdiction over?

a)

A person who has been arrested for multiple parking violations.

b)

A felony armed robbery case that is being appealed after the case was heard by the Superior Court.

11.

Marco and Angelica are purchasing their first home. What law requires that their contract be in writing?

a)

Statute of frauds

b)

Promissory estoppel

12.

Mark purchases a piece of rare art from Jill for $5,000. The contract was written and signed by both parties. In this scenario, who is Mark?

a)

Offeree

b)

Donor

13.

A detective caught a suspect who intentionally set fire to a pharmacy. He was not allowed to accept a gift from the proprietor due to:

a)

Existing duty

b)

promise to make a gift

14.

Bill and Sarah agreed at lunch to a contract for landscaping services. Bill did not have the contract form for Sarah to sign. What type of contract is this?

a)

Unenforceable

b)

Oral

15.

Monica has a contract with Fred’s Landscape Service to mulch her yard. After the job is finished, the contract is discharged by what method?

a)

Operation of law

b)

Complete performance

16.

Greg has a contract with Steve to buy a riding lawnmower. After the contract was signed, Greg changed the price from $150 to $250 without Steve's knowledge. What method of termination is this?

a)

Operation of law

b)

Impossibility of Performance

17.

Carol has agreed to make Debbie’s prom dress. Debbie has indicated that she wants her to make the dress, a cape, and gloves. Carol is pressed for time and forgot to make the gloves. What type of performance has Carol completed?

a)

Tender of performance

b)

Substantial performance

18.

Nancy has a contract to buy a car from Bryan. Nancy realizes she cannot afford the car. After signing the contract, Bryan wishes he had not contracted to sell the car to Nancy. They both decide to terminate the contract by what method?

a)

Mutual agreement

b)

Operation of Law

19.

Amber transfers her duty of cleaning Julie’s house to Roxanne. However, Amber is still responsible for the job. How was the contract transferred?

a)

Breach

b)

Delegate

20.

Troy is identified as Mary’s agent by circumstance and created by law. Which term is used to describe Troy in this situation?

a)

Agency by estoppel

b)

Ratification

21.

Fred represented Harold in a real estate transaction when Harold sold his property to Nancy. What type of authority does Fred owe Harold?

a)

Consensual

b)

Actual

22.

Fred represented Harold in a real estate transaction when Harold sold his property to Nancy. What type of agency exists?

a)

Special agent

b)

General agent

23.

Fred represented Harold in a real estate transaction when Harold sold his property to Nancy. What type of trust does Harold expect of Fred?

a)

Apparent

b)

Fiduciary

24.

Jack asked Tammy to sell his car while he was vacationing in the Caribbean. When Tammy agreed to become Jack’s agent, she had the power to legally bind Jack to a sales contract. They had a voluntary consensual relationship. Tammy did not receive payment for the service. What term identifies Jack?

a)

Principal

b)

Agent

25.

Which agency manages all federal antipollution programs and handles air, solid waste, toxic substances, and pesticides?

a)

Federal Energy Regulatory Commission

b)

Environmental Protection Agency

26.

Which act establishes activities for recycling, source reduction, and sustainable agriculture, and helps to promote the conservation of energy, water, and natural resources?

a)

Pollution Prevention Act

b)

Clean Water Act

27.

Which agency promotes supply and delivery of reliable, affordable, and environmentally sound energy?

a)

Environmental Protection Agency

b)

Department of Energy

28.

Which agency generates safety policies and regulations for nuclear reactors and materials?

a)

Nuclear Regulatory Commission

b)

Federal Energy Regulatory Commission

29.

Which act increases clean renewable fuel production, research on greenhouse gas, and improves the government’s energy performance?

a)

Energy Independence and Security Act

b)

Energy Policy Act

30.

Which act was created by the U.S. Environmental Protection Agency to authorize the National Ambient Air Quality Standards (NAAQS) to assist in the creation of laws to protect the environment?

a)

National Environmental Policy Act

b)

Clean Air Act

31.

Mark’s credit report indicates non-payment of a credit card bill. Mark wants to correct this error. Which act was passed by Congress to assist Mark in correcting this dispute?

a)

Equal Credit Opportunity Act

b)

Fair Credit Reporting Act

32.

Catherine has $175,000 in an account at Bank of America. Which act protects her account if the bank fails?

a)

Federal Deposit Insurance Act

b)

Thrift and Bank Fraud Act

33.

Bart has no chance of getting out of debt and needs to liquidate all his belongings to pay creditors. Bart should file for which type of bankruptcy?

a)

Chapter 12

b)

Chapter 7

34.

Jason lost his credit card while on a recent trip. Which act will limit his liability?

a)

Thrift and Bank Fraud Act

b)

Home Equity Loan Consumer Protection Act

35.

Jason lost his credit card while on a recent trip. Which act will limit his liability?

a)

Electronic Funds Transfer Act

b)

Home Equity Loan Consumer Protection Act

36.

Tammy obtained a loan with an interest rate of 39.99% from a bank. Which law did this financial institution violate?

a)

Usury law

b)

Credit Card Act of 2009

37.

Michelle obtained a letter from Nordstrom stating that her credit application had been approved. Michelle can spend up to $15,000 and the annual interest rate is 15.99%. Nordstrom followed which law?

a)

Credit Card Act of 2009

b)

Truth In Lending Law

38.

Linda stepped into a hole and fractured her ankle while delivering a package to Carol’s residence. Which type of insurance would cover her injuries?

a)

Life

b)

Homeowners

39.

After agreeing to sell her home to Jack, Lila refuses to turn over the paperwork due to a better offer from Sam. Jack needs to ask a judge to stop the sale to Sam by getting what?

a)

Injunction

b)

Delegation

40.

When Rick begins his new job, he gets insurance and pays for it monthly He develops Cancer and must have radiation treatments. His insurance will not cover the radiation treatments. What term identifies this situation?

a)

Exclusion

b)

Expiration

41.

Max lost his arm in a farming accident. Which type of insurance will cover this loss?

a)

Accidental Death and Dismemberment

b)

Long Term Care

42.

John wants to add his new wife to his existing life insurance policy. Which type of insurance will John purchase?

a)

Long-term care

b)

Spouse rider

43.

Linda decides to divorce Eric. The judge decides that Eric will pay Linda monthly for support. Which type of settlement is this?

a)

Alimony

b)

Damages

44.

After a court order, Rita has been sentenced to a substance abuse center. On what grounds can Kevin file for divorce from Rita?

a)

No-fault

b)

Drug addiction

45.

While married, Ron has an affair with a coworker. Sara can file for divorce on what grounds?

a)

Conviction of a felony

b)

Adultery

46.

George is married to Sidney and Alexis. He then marries Tracey. The last marriage is considered illegal on what grounds?

a)

Polygamy

b)

Monogamy

47.

After Tammy and George are married for a few years, Tammy finds out that George was never legally divorced from his first wife. Tammy can now file for an annulment on what grounds?

a)

Past marriage

b)

Age

48.

George signed a document giving his wife permission to act on his behalf during his illness. Which term identifies the type of document George signed?

a)

Power of attorney

b)

Common law

49.

After John dies, his family discovers he DOES NOT have a will. The court then appoints someone to carry out the will. What term is used to identify this person?

a)

Administrator

b)

Testator

50.

Gillespie decides that he wants to create a will. He writes the will in front of a lawyer and his assistant. What are the lawyer and the assistant considered?

a)

Guarantors

b)

Witnesses

51.

Bobby’s uncle dies. Bobby received his uncle’s mansion. What term describes Bobby in this scenario?

a)

Dower

b)

Heir

52.

Bobby bought a beach home this past summer and wants to add it to his will. What legal document must be completed for this change?

a)

Codicil

b)

Intestate

53.

Mary was in a serious car accident. She lost the ability to think on her own. She is forced to change her will by her brother. The courts can revoke the new will because she did not have what?

a)

Acceptance

b)

Capacity

54.

Fred dies. His son becomes representative of the estate. What must his son do after inventorying, assembling, preserving, and appraising the estate?

a)

Give public notice of the estate.

b)

Sell off all assets in the estate.

55.

ACE, Inc. sent goods f.o.b. to Tony. What does the shipment term f.o.b. mean?

a)

Free on board

b)

Freight on board

56.

Larry purchased items from the flea market. Larry is always careful due to CAVEAT EMPTOR. What does this term mean?

a)

Let the owner beware

b)

Let the buyer beware

57.

A door-to-door salesman intimidated Brittany into buying encyclopedias costing $300. Brittany did not want the books and decided to cancel the order. What law allows Brittany to cancel the order?

a)

Magnuson-Moss Act

b)

Cooling-Off Rule

58.

Shane bought a new car. Shane parked his old car with a 'FOR SALE' sign in the driveway. What guarantees will come with the purchase of the old car?

a)

Warranty of Title

b)

Full warranty

59.

Dewey Auto Sales is a car dealership. The dealership runs a weekly ad in the local newspaper. Brad and Jennifer, wanting to test-drive a car they see described in today’s ad, go to the car lot. The salesman says that the last one of those cars was just sold. The salesman says he can show them other available vehicles. What term identifies this deceptive practice?

a)

Price-fixing

b)

Bait and switch

60.

Rob’s Roofing replaced shingles on Meredith’s house. When the first hard rain and wind came, the house leaked. No one at Rob’s Roofing is returning Meredith’s calls. Another roofer looked at the poor workmanship and said the job needed to be redone. Meredith cannot afford another new roof. Who can Meredith contact to help her?

a)

BBB

b)

EEOC