Law is the most significant social force. Law is made up of rules, which are created by the government and backed by enforcement. The rule of law states that laws are made generally and are equally applied to all. Which of the following statement regarding the rule of law is true?

Without the rule of law, the government's many involvements in the economy would be unfair, inefficient, and opaque.

Without the rule of law, corporations, banks, and other major institutions would not funcion.

Both of the above statements.

Neither of the above statements.

Question 2

Which of the following topics relates to the exclusionary right of property?

Tort law, which compensates property owners whose resources are wrongfully harmed by the actions of others.

Criminal law, which punishes those who harm a property owner's resources in a particular way, such as theft.

Contract law, which enables the exchange of resources, especially at a future date.

All of the above.

Question 3

Rayford Spence owns a beer brewing company situated on the second floor of a building directly above Jim Turner's bar, which is on the first floor. Mr. Spence's employees move the cases and kegs of beer to the transport trucks by tossing them from a balcony on the second floor. Mr. Spence believes this to be the fastest and cheapest way to get the beer from the second floor to the trucks. On one occasion, an employee threw a keg and missed the intended receiver, but struck a patron who was entering Mr. Turner's bar. The patron was knocked down and sustained a laceration to her head and a broken wrist. Mr. Spence's beer company will likely have to compensate the patron for her injuries because his employee committed _____________________________.

an intentional tort

a breach of contract

a strict liability tory

a negligence tort

Question 4

The federal government's power to impact contractual relationships is limited by ____________________.

The Commerce Clause

The Separation of Powers

The Mayflower Compact

The Contract Clause

Question 5

The Family Medical Leave Act (FMLA) provides eligible employees who work for covered employers to take up to 12 weeks of unpaid leave during any 12 month period if certain specified events occur. Stanley has worked for a covered employer for 12 years and never used FMLA leave. His wife's mother, Geneva, has become very ill with a serious health condition and he would like to take unpaid leave under the FMLA to care for her.

Which of the following statements regarding this hypothetical scenario is true?

Stanley cannot take off under the FMLA because Geneva is not immediate family.

Stanley can take off under the FMLA because parents in law are considered immediate family.

Stanley is entitled to 144 weeks of unpaid leave under the FMLA because he has never used FMLA leave before.

All of the above statements are true.

Question 6

Candice owns a specialty store that sells designer women's clothes and expensive shoes. The store is located in a state that follows the 'employment-at-will' doctrine. Bobby has been employed at Candice's store for 3 years. The store has a policy manual, which Bobby strictly follows. One day Candice catches Bobby sniffing a pair of panty hose. Although this is not a violation of store policy, it disturbs Candice and she wants to fire Bobby. Candice is not familiar with employment law.

Considering this hypothetical scenario, what is the best action for Candice to take?

Terminate Bobby's employment immediately.

Pretend it never happened.

Tell Bobby that she will spread word about his perversion if he does not resign.

Consult an attorney who knows employment law.

Question 7

The term administrative agencies describes the boards, bureaus, commissions, and organizations that make up the governmental bureaucracy. The typical functions of administrative agencies are:

Investigating, defibulating, and interpreting

Percolating, Pontificating, and Procrastinating

Investigating, obtaining warrants, and making arrest

Rule making, adjudication, and investigating

Question 8

If a __________________________________________ exists, then employers, labor unions, and employment agencies may be able to discriminate on the basis of religion, sex, or national origin.

legitimate shortage of hirable candidates

bona fide occupational qualification

disparate waiver

dismissal for cause

Question 9

Scroggins' Metal Works, Inc is an Arkansas based metal company specializing in metal signs. Most of Scroggins' Metal Works, Inc.'s employees are white, but there are 4 Hispanic employees. Jody owns a chain of bars called "Got your Girl," which are located on military installations throughout the United States and overseas. Jody agrees to purchase 71 custom "Got your Girl" signs from Scroggins' Metal Works, Inc for $36,352. After the signs are completed, Scroggins' Metal Works, Inc. asks for payment. Jody does not want to pay until the signs are received. Conversely, Scroggins' does not want to send the signs until payment is received?

How should their dispute be resolved?

Through the Equal Employment Opportunity Commission (EEOC)

Through the Uniformed Services Employment and Reemployment Rights Act (USERRA)

Through Contract Law

By appearing on Judge Judy.

Question 10

Which of the following are legitimate excuses for nonperformance of a contract?

Spontaneous Supposition

Ficitious waiver

Impossibility of performance

None of the above

Question 11

Jeff told a story to his coworkers about the last time he rode his motorcycle with his girlfriend. It was not a good memory for Jeff because his wife saw them riding the motorcycle and became very upset. Jeff's wife forgave his affair, but she becomes upset every time she looks at his motorcycle. After telling the story, Jeff said, "I want to sell the motorcycle, but nobody would pay me the $6,500 that it is worth." One of the coworkers, Todd, responds by saying, "I'll give you $6,500 for the bike." Jeff replies, "You've got a deal" and they reduce the agreement to writing.

Which of the following statements regarding this hypothetical scenario is correct?

There is not a valid contract between Jeff and Todd because there was no offer.

There is not a valid contract between Jeff and Todd because there was no acceptance.

There is no valid contract between Jeff and Todd because there is a lack of consideration.

Jeff and Todd have formed a valid contract.

Question 12

Which of the following statements regarding the Due Process clause is not true?

The Due Process clause does not prevent private individuals or corporations from acting in an arbitrary or unreasonable manner

The Due Process clause holds that the government cannot act in a way that is arbitrary, unreasonable, or capricious

Due Process essentially means fundamental fairness and decency

The Due Process clause can be very narrowly defined

Question 13

Two attorneys, Scott and Randle, share a law office and each person pays 1/2 of the rent, utilities, and other bills. Sometimes Scott and Randle work together on cases and they frequently share in profits and losses. Scott and Randle don't consider themselves to be any form of business organization. In a recent case, Scott represented a woman in a domestic relations case and the woman was not satisfied with his representation. Scott forgot the woman's name several times during the trial and wasn't familiar with the facts of the case. As a result, the woman lost custody of her child and was ordered to pay child support. The woman filed a law suit seeking damages.

Which of the following statements regarding the hypothetical scenario above is most correct?

There is no way Randle could be held liable.

If the court determines that a partnership exists, then Randle may also be liable.

Randle and Scott have a defacto corporation and the woman should be able to pierce the corporate veil.

Randle and Scott have formed an implied Limited Liability Company and neither will be personally liable for any damages.

Question 14

Business income is subject to personal taxation in all of the following, except:

Limited Partnerships

Sole Proprietorships

Corporations

Limited Liability Companys

Question 15

Which of the following forms of business organization does not provide protection from personal liability?

Limited Liability Company

Sole Proprietorship

Corporation

Limited Liability Partnership

Question 16

C.T. Balls Cargo incorporated is responsible for the majority of imports brought into New Jersey. In fact, C.T. Balls carries 82 percent of New Jersey's imports. Taking this into consideration, New Jersey lawmakers enacted a law that only allows C.T. Balls Cargo incorporated to bring imports to New Jersey. The New Jersey legislature is aware that the law conflicts with the U.S. Constitution, but believes the law to be valid because there is a rational reason for the law. The New Jersey legislature stated that they passed the law because it is more cost effective and less burdensome for the state to only have to regulate one cargo ship company.

Which of the following statements regarding the above hypothetical scenario is true?

The law is valid because their is a rational basis for the law.

The U.S. Constitution has no effect on any state laws, including New Jersery's import law.

The law would be valid if it involved exports, but is void because it pertains to imports.

The law is void and has no legal effect

Question 17

Which of the following is a significant factor to consider when selecting the best organizational form for a particular business activity?

The continuity or stability of the organization

The personal liability of the owners

The cost of creating the organization

All of the above

Question 18

Title VII of the Civil Rights Act of 1974, prohibits employers from discriminating based on race, color, religion, sex, or national origin regarding ___________________________________.

Discharge

Refusal to hire

Promotion

All of the above

Question 19

2 / 2 pts

Gene is a homosexual and the only male who works at Rita's Boutique. Several of the female employees have told Gene that they could turn him straight if he gave them the chance. Rita has overheard these comments and she is concerned that the conduct could be problematic.

Which of the following statements regarding this hypothetical situation is most correct?

Under the 'Common Practice' doctrine, Gene does not have a claim because gossip and inappropriate comments are expected at boutiques.

In order to proceed with a claim, Gene must advise the females that he is offended by the comments within a reasonable amount of time after the comments are made.

Rita shouldn't worry about this.

Rita should be concerned because this could be sex discrimination (in the form of sexual harassment).

Question 20

Thomas A. Hadley believes he can make a fortune by opening a taco restaurant. Mr. Hadley's restaurant will allow customers to build their own tacos from a fully loaded taco bar. Mr. Hadley plans to name his restaurant T.A. Taco. Mr. Hadley locates the perfect piece of land for his restaurant and wants to buy it. The land is across the street from the college stadium and just down the road from the Balcrank O-funnel factory. Mr. Hadley contacts the owner, Charles Bailey, and tells him that he would like to purchase the land. Mr. Bailey states that he will sell the land for $375,000. Mr. Hadley and Mr. Bailey meet at the Main Street Tavern to discuss the sale. Mr. Bailey shows Mr. Hadley a 14 page document and says, "Check it out, sign it, and let's make this happen." Mr. Hadley doesn't know much about the sale of real estate or contract law so he asks Mr. Bailey for a few days to think it over.

Which of the following statements regarding this hypothetical scenario is most correct?

As long as the price and land description are accurate, Mr. Hadley can safely sign the document because the courts will make sure everything works out okay.

Mr. Hadley should consult an attorney because this transaction involves 'Real Property,' which has very formal rules.

There is alread an enforcable contract because Mr. Hadley said he would like to buy the land and Mr. Bailey stated he would sell it.

A land purchase contract signed at a tavern is not valid.