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Business Law Final Exam Review

Total questions: 59

Worksheet time: 30mins

Name
Class
Date
1.

Congress can create a statute on any topic at all.

a)

True

b)

False

2.

The doctrine of precedent is binding on all courts from county courts to the U.S. Supreme Court.

a)

True

b)

False

3.

Summary judgment is appropriate when there are no essential facts in dispute.

a)

True

b)

False

4.

A tort is a violation of a duty imposed by the civil law.

a)

True

b)

False

5.

The First Amendment guarantee of freedom of speech is an absolute right.

a)

True

b)

False

6.

Punitive damages are intended to punish the defendant for conduct that is extreme and outrageous.

a)

True

b)

False

7.

The doctrine of contributory negligence is followed in most states.

a)

True

b)

False

8.

Revocation is the withdrawal of an offer by the offeror.

a)

True

b)

False

9.

If an offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and method.

a)

True

b)

False

10.

One purpose of contract law is to determine which agreements are worthy of legal enforcement.

a)

True

b)

False

11.

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

a)

True

b)

False

12.

The element of a contract that states the parties must be adults of sound mind is consent.

a)

True

b)

False

13.

In a unilateral contract, one party makes a promise that the other party can accept only by actually doing something.

a)

True

b)

False

14.

The UCC is federal legislation enacted by Congress.

a)

True

b)

False

15.

There are three parties on a promissory note: the maker, the drawee, and the payee.

a)

True

b)

False

16.

Tim wrote a negotiable note. Subsequently, Tim's debts were discharged in bankruptcy. If a holder in due course presents the note for payment, Tim does not have to pay.

a)

True

b)

False

17.

The National Labor Relations Act guarantees employees the right to join unions.

a)

True

b)

False

18.

Corporations have perpetual existence.

a)

True

b)

False

19.

A partnership is a taxable entity, separate from the partners.

a)

True

b)

False

20.

23. Social enterprises are organizations that pledge to behave in a socially responsible manner, even as they pursue profits.

a)

True

b)

False

21.

24. A patent is available for an idea as well as a tangible application.

a)

True

b)

False

22.

25. The Supreme Court has held that parody of copyrighted material is a violation of copyright law.

a)

True

b)

False

23.

Common law refers to

a)

law that is the same or similar in all the states.

b)

law made when judges decide cases and then follow those decisions in later cases

c)

law made by legislatures in the form of statutes.

d)

the legal systems of France, Germany, and Italy.

24.

In a civil case, the plaintiff must prove the case

a)

By a preponderance of evidence.

b)

By submission to an arbitrator.

c)

Beyond a reasonable doubt.

d)

By no standard because the burden of proof is on the defendant

25.

What is the correct order in which a jury trial is conducted?

a)

Opening statements, jury selection, defendant's case, plaintiff's case, closing arguments and instructions, verdict

b)

Jury selection, opening statements, defendant's case, plaintiff's case, closing arguments and instructions, verdict

c)

Opening statements, jury selection, plaintiff's case, defendant's case, closing arguments and instructions, verdict

d)

Jury selection, opening statements, plaintiff's case, defendant's case, closing arguments and instructions, verdict

26.

The Supreme Court consists of how many justices?

a)

Seven (7)

b)

Eight (8)

c)

Nine (9)

d)

Twelve (12)

27.

In awarding punitive damages, a court considers all of the following EXCEPT the

a)

difference between the punitive award and any civil penalties used in similar cases.

b)

ratio between the harm suffered and the award.

c)

reprehensibility of the defendant's conduct.

d)

reprehensibility of the plaintiff's conduct.

28.

The elements in a defamation case are

a)

a. defamatory statement; falsity; communication; injury

b)

b. a contract; knowledge of the contract; improper inducement; injury.

c)

c. false or misleading fact statements; statements in commercial advertising; likelihood of harm

d)

d. duty; breach of duty; proximate causation; damages.

29.

Negligence concerns harm that

a)

is unforeseeable

b)

arises intentionally.

c)

arises by accident.

d)

is always substantial.

30.

The Health Insurance Portability and Accountability Act is a federal law

a)

allowing employees to take medical leave when needed.

b)

requiring medical providers to use electronic records.

c)

protecting medical records from unauthorized disclosure.

d)

requiring medical providers to provide patients with their medical records for free when patients change medical providers.

31.

The Family Educational Rights and Privacy Act protects the privacy of

a)

student records.

b)

the educational records of parents, students, and teachers.

c)

student records only if the students are in grades K–12

d)

student records only if the student is attending a university.

32.

The internet has ushered in a wave of crimes, including

a)

assault.

b)

malware.

c)

terroristic threatening.

d)

menacing.

33.

The government must first obtain a warrant before searching anyplace where someone has

a)

an unreasonable expectation of privacy.

b)

password protection.

c)

a lock.

d)

a reasonable expectation of privacy.

34.

The First Amendment

a)

protects all anonymous speech

b)

protects anonymous speech, provided it is lawful.

c)

does not protect anonymous speech.

d)

does not protect lawful speech.

35.

What are the two most common settings for legitimate non-compete agreements?

a)

Real estate purchase and employment relationship

b)

Sale of a business and real estate purchase

c)

Real estate purchase and insurance purchase

d)

Sale of a business and employment relationship

36.

An exculpatory clause is generally unenforceable when

a)

it attempts to release a party from liability for ordinarily negligent behavior.

b)

it involves public transportation.

c)

it is written clearly and in bold, large print.

d)

the affected activity is a recreational activity.

37.

The basic distinction between an executory contract and an executed contract is that

a)

one is enforceable, the other is not.

b)

only one promise is involved in an executory contract.

c)

one is legal, the other is not.

d)

all parties have fulfilled their obligations in an executed contract.

38.

The courts will find an implied contract when

a)

justice demands it.

b)

conduct of the parties indicates they intended an agreement.

c)

there is promissory estoppel.

d)

there is undue influence.

39.

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?

a)

A promissory note

b)

A stock

c)

A patent

d)

A computer

40.

What are the two categories of negotiable instruments?

a)

Notes and drafts

b)

Investments and certificates

c)

Cashier’s checks and certified checks

d)

Stocks and bonds

41.

Amaya borrows money from her local savings and loan to buy a car. Amaya signs a document regarding this loan. This document is a

a)

check.

b)

certificate of deposit.

c)

promissory note.

d)

Receipt.

42.

Under the UCC, a buyer's right to reasonably obtain substitute goods because another party has not honored a contract is called

a)

a. a breach.

b)

b. A cure

c)

c. A cover

d)

d. Consideration

43.

If a buyer does not receive goods by the contract deadline, remedies available include all of the following EXCEPT

a)

incidental and consequential damages.

b)

Cover

c)

damages for non-delivery.

d)

Cure.

44.

An express warranty is a guarantee

a)

created by the UCC and imposed on the seller of goods.

b)

that goods are of at least average, passable quality in the trade.

c)

created by the words or actions of the seller that goods will meet certain standards.

d)

that the goods are fit for a particular purpose.

45.

An implied warranty is a guarantee

a)

created by the UCC and imposed on the seller of goods.

b)

that the goods are fit for a particular purpose.

c)

that goods are of at least average, passable quality in the trade.

d)

created by the words or actions of the seller that goods will meet certain standards.

46.

All of the following business forms have limited liability except the

a)

limited liability company.

b)

general partnership.

c)

S corporation.

d)

corporation.

47.

The Federal Trade Commission requires franchisors to

a)

Give prospective franchisees a franchise disclosure at least 14 business days prior to the signing of a contract or payment of any money.

b)

give prospective franchisees earnings information on the company.

c)

disclose any litigation the company has ever been involved in.

d)

let prospective franchisees know how many franchisees have gone out of business in the prior five years.

48.

The form of business ownership that is the most easily transferable is the

a)

general partnership.

b)

corporation.

c)

close corporation.

d)

sole proprietorship.

49.

When a partner leaves a partnership, whether it be voluntary or by expulsion, death, or bankruptcy, it is called

a)

dissociation.

b)

termination.

c)

detachment.

d)

separation.

50.

The term “S corporation” comes from

a)

the Internal Revenue Code

b)

the FTC rules

c)

the Securities and Exchange Commission

d)

state corporation law.

51.

The only required document to form a limited liability company (LLC) is a(n)

a)

Operations agreement

b)

Shareholder agreement

c)

Tax return

d)

Certificate of organization

52.

Jane and Paula graduated law school together at the same time and are now looking to open their own firm specializing in small-scale commercial real estate sales. They live in a state that does not allow lawyers to operate as an LLC. What form of company should Jane and Paula adopt?

a)

Limited liability partnership

b)

General partnership

c)

Corporation

d)

Professional corporation

53.

The vast majority of patents that are issued are

a)

design patents.

b)

plant patents.

c)

utility patents.

d)

intellectual patents.

54.

Intellectual property is

a)

protected in the same way as land.

b)

exclusive.

c)

expensive to produce but cheap to reproduce and transmit.

d)

expensive to produce, copy, and transmit.

55.

A trademark lasts for

a)

20 years after the application is filed.

b)

70 years after the death of the creator.

c)

10 years, but it can be renewed for an unlimited number of terms as long as it is used.

d)

as long as it is kept confidential.

56.

Nia and Samir are involved in a contract dispute. Nia sues Samir and he receives her complaint. Samir may file a(n)

a)

Answer

b)

Summons

c)

Appeal

d)

Motion for summary judgment

57.

Which of the following workers is entitled to unpaid leave under the Family Medical Leave Act?

a)

Kairos, who works part-time for a small coffee shop with 10 employees.

b)

Jayla, who has worked full time for five years with Microsoft.

c)

Dakota, who works part time for Delta Air Lines

d)

Sydney, who works full time for a family heating and air conditioning company made up of Sydney and both of Sydney’s brothers.

58.

In the House of Representatives, a state’s voting power is based on its

a)

Relative wealth

b)

Date of entry into the Union.

c)

Physical size

d)

Population

59.

What is the best definition of a trade secret?

a)

A formula, device, process, method, or compilation of information that, when used in business, gives the owner an advantage over competitors

b)

Any combination of words and symbols that a business uses to identify its products or services and distinguish them from others

c)

The right of an inventor to prevent others from making, using, or selling their inventions for a limited time

d)

The right of a creator to exclusively reproduce, distribute, and perform their work for a limited time