1.Business ethics is the study of

a. crimes and their potential punishments

b. how people should act in the business setting

c. respondeat superior

d. victimization

2. Due Process is

a. the warning given before an arrest (you have the right to remain silent...)

b. notice plus the opportunity to be heard

c. the rule that says Tennessee must recognize valid Kentucky car tags

d. none of the above

3. Under the U.S. Constitution, power that is not expressly given to the federal government is retained by:

a. the courts

b. the Congress

c. the states and the people

d. the Founders

4. Common law refers to:

a. law that is the same 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.

5.What is an example of a subpoena?

a. A court order to a company to stop polluting the air

b. A court order requiring a person to attend a deposition and answer questions

c. A federal agency demands various documents from a corporation

d. The president orders troops called up in the national defense

6.A form of ADR in which a neutral person guides the people to create their own agreement that resolves a conflict is called

a. Mediation

b. Mock trial

c. Arbitration

d. Trial

7.After being served with a summons and a copy of the complaint, a defendant usually files a pleading known as an answer, briefly replying to each allegation in the complaint.

a. True

b. False

8. In a civil lawsuit:

a. the defendant is presumed innocent until proven guilty

b. the plaintiff must prove his/her case by a preponderance of the evidence

c. the plaintiff must prove his/her case beyond a reasonable doubt

d. the defendant is presumed guilty until proven innocent

9.Jurisdiction refers to:

a. the jury's decision

b. the judge's instructions to the jury

c. pretrial questions posed by one attorney to the opposing party

d. the power of a court to hear a particular case

10.A sales clerk at Braybon's Department Store observed a customer remove a ring from a display case and put it in her

purse. In most states, Braybon's will be able to detain the customer for suspicion of shoplifting until police arrive.

a. True

b. False

11.A sales clerk at Braybon's Department Store observed a customer remove merchandise from a store shelf and put it in his backpack. This customer has committed the crime of

a. arson

b. burglary

c. embezzlement

d. shop lifting

12. A misdemeanor is distinguished from a felony based upon:

a. the rules of evidence.

b. the length of possible imprisonment ("11-29".)

c. the burden of proof.

d. the type of intent.

13. Henry asks his girlfriend, Alina, to drive his car to the repair shop. She drives his car, all right - to Las Vegas, where she hits the slots. Alina has committed:

a. fraud

b. embezzlement

c. larceny

d. a RICO (organized crime) violation

14. A false statement that harms someone's reputation is called

a. assault

b. fraud

c. defamation

d. false imprisonment

15. The fraudulent conversion of property which is already in the defendant's possession, such when an employee handles an employer's money as part of the job and takes some of it, is known as:

a. money laundering.

b. exclusion.

c. embezzlement.

d. trespassitory taking.

16. Using someone's picture or voice for commercial purposes without their permission, such as the case of Maxwell House coffee discussed in class, is a business tort called:

a. tortious interference with a contract

b. fraud

c. assault

d. commercial exploitation

17. Negligence concerns harm that:

a. is not predictable or common

b. arises intentionally

c. arises by accident when someone doesn't exercise correct care in doing something

d. always causes a large amount of damage

18. A person on someone else's property without consent is a/an

a. invitee

b. licensee

c. trespasser

d. renter

19. Sam goes skydiving. He voluntarily entered in a situation of obvious danger. If he is injured, he can't sue because of

a. assumption of the risk

b. strict liability

c. contributory negligence

d. a defective product

20. James uses dynamite in his job building roads through the mountains. If something goes wrong and someone is injured, then James is responsible based on the theory of

a. assumption of the risk

b. strict liability

c. contributory negligence

d. a defective product

21. A taxi driver, hurrying to pick up a customer at the airport, races through a 20 mph hospital zone at 45 mphand strikes May, who is crossing the street in a pedestrian crosswalk. May sues the driver and the taxi company. What kind of lawsuit is this?

a. contract

b. criminal theft

c.negligence

d. assault

22. A company that connects individual computers to the internet is called :

a. SPAM

b. ISP (internet service provider)

c. tracking tool

d. CDA

23. Unsolicited commercial email is called

a. SPAM

b. ISP (internet service provider)

c. tracking tool

d. ECPA

24. Behavioral marketing is:

a. Unsolicited commercial email

b. A computer program that tracks information about Internet users

c. The practice of aiming certain ads to consumers based on their online behavior

d. Disclosing another's private information without consent

25. An employer has the right to monitor workers' emails if

a. the employee consents

b. the monitoring occurs in the ordinary course of business

c. the employer provides the computer system

d. all of the above

26.In contract law, making a promise for a promise is known as a/an

a. Bilateral contract

b. Unilateral contract

c. Illegal contract

d. Executed contract

27. The rule of contracts that states that an acceptance is valid as soon as it is placed in the U.S. mail is called the

a. Battle of the forms

b. Mirror image rule

c. Mailbox rule

d. Statute of Frauds

28. Which of the following represents a unilateral offer?

a."I will pay you $50 if you mow my lawn."

b."I will pay you $50 for your puppy."

c."I will pay you $50 for your CD player."

d."I will pay you $50 for your backpack."

29. Paul has finished the computer installation he promised to perform for Tanya, and she has paid him in full. This is:

a. a void contract

b. an implied contract

c. an executed contract

d. a unilateral contract

30. Rudy offers Oscar $200 for his laptop valued at $600 and Oscar agrees to buy it. Does it matter that the consideration that each person gets is a different economic value (200 vs. 600)?

a. Yes it matters, the agreement is unfair because the consideration is not exactly equal

b. No it does not matter, the agreement is unfair but as long as it is signed there is nothing that can be done

c. No, it does not matter as long as each person involved knows the consideration not equal and is O.K. with it

d. None of the above

Match the following terms with their definitions.

_____31. Offer

_____32. Acceptance

_____33. Consideration

_____34. Legality

_____35. Capacity

A. something of legal value that each party gets in a contract

B. the requirement that the subject of a contract must be legal

C. the act that proposed a deal

D. the requirement that people entering into contracts be of sound mind

E. the act of agreeing to a deal

36. The harm or loss a person suffers from a breach of contract is called

a. Damages

b. Injunction

c. Mitigation of damages

d. Breach

37. Robert, at age 16, buys a stereo from Rock-You-Stores for $200. He makes payments and has one payment left. He disaffirms (cancels) the contract the day before turning 18 and returns the stereo. He wants the store to give him back the money he has paid them. The court will say

a. The contract was valid and Robert cannot disaffirm even if he was a minor when he entered into the

contract.

b. This contract was valid but Robert could cancel it before he turned 18 and get all of his money back

c. The contract was NOT valid but the rule is "buyer beware" , so Robert cannot get his money back

d. None of the above

38. When Mohammed was hired by Pomico, Inc., he signed the following agreement, "Upon termination of my employment with Pomico, I agree not to work for a competing company within 30 miles of Pomico's headquarters for one year." This agreement, important to protecting secret information developed in the employer's business, is:

a. an unenforceable exculpatory agreement.

b. an unenforceable usurious agreement.

c. an enforceable bailment agreement.

d. an enforceable agreement not to compete.

39. Under a contract for the sale of land, the statute of frauds:

a. does not apply if the purchase price for the land is less than $500.

b. requires that the entire agreement be tape recorded.

c. requires that the agreement be in writing.

d. does not apply if the total price of the land is to be paid in less than one year.

40. M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged (ended) by:

a. full performance.

b. agreement.

c. rescission.

d. accord and satisfaction.

42. When one party to a contract fails to perform as promised, it is called:

a. litigation.

b. breach.

c. liquidated damages.

d. bad faith.

43. Which statement is an example of third party contract beneficiary rights?

a. A person adopts a dog from a local animal shelter

b. Divorcing parents agree in a contract to pay for their children's college educations

c. A building contractor pays an electrician to put in the wiring for a new house

d. A credit card processing company accepts use of a credit card to pay for dinner at a restaurant

44. Bob, a house builder, contracts with Ollie to build a house on Ollie's lot. Bob hires Rob to put in the HVAC system. What has Bob done?

a. Breached the contract

b. Assigned his rights

c. Delegated his duties

d. None of the above

45. The law says that if you post-date a check

a. the person to whom you have written the check must wait until the date on the check to cash it

b. the person to whom you have written the check can't ever cash it because the date is wrong

c. the person to whom you have written the check can cash the check immediately, regardless of the date on it

d. none of the above

46. Who is a Merchant?

a. someone who routinely deals in the manufacture or sale of particular goods

b. someone who appears to have special knowledge or skill in certain goods,

c. a purchasing agent for a company

d. all of the above

47. A warranty that provides that the goods will be useable for the ordinary purposes is called a/an

a. infringement

b. warranty of fitness for a particular purpose

c. implied Warranty of Merchantability

d. limited warranty

48. Dewayne sold a space heater to Vivian, telling her it would heat a 200-square-foot area, even though he knew it would effectively heat only about one third of that space and he destroyed the tag that said what area it would heat. Dewayne is liable for

a. Duress

b. Defamation

c. Fraud

d. Assault

49. In a contract for a kid's gym experience, there is a clause that says "Gym Kids is not liable if your child gets hurt, even if our employees or equipment are at fault." This is an example of a/an

a. non-compete agreement

b. proof of claim

c. exculpatory clause

d. liquidated damages clause

50. The written guarantee that is included with a new computer is an example of

a. implied warranty of merchantability

b. express written warranty

c. warranty of fitness for a particular purpose

d. sold "as is" limit on warranty

51. A guarantee that a product will perform a specific job (this heater will heat a room of2500 sq. ft) is an example of

a. implied warranty of merchantability

b. express written warranty

c. warranty of fitness for a particular purpose

d. sold "as is" limit on warranty

52. Negotiable instruments are

a. substitutes for contracts

b. substitutes for warranties

c. substitutes for money

d. none of the above

53. Which of the following is NOT a negotiable instrument?

a.Check

b.Certificate of deposit

c.Receipt

d.Draft

54. In order to perfect the security interest in goods, such as a car or stereo, the lender must file a __________________.

a. UCC-1 financing statement

b. proof of claim form

c. complaint

d. non-compete agreement

55. Property that is used to guarantee a loan is called

a. collateral

b. foundation

c. financing statement

d. none of the above

56. The term that describes the first step in associating an object with a loan, such as when you buy a car, is called

a. perfection

b. attachment

c. application

d. collateral