The Foreign Corrupt Practices Act was part of the Securities Exchange Act of 1934 when it was passed into law during the Depression.

Group of answer choices

True

False

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Question 8

2pts

The Clayton Act was enacted in 1914 to plug the loopholes in the Sherman Act.

Group of answer choices

True

False

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Question 9

2pts

A(n) _____ isdefined asa personwho acts in the name of and on behalf of another, having been given andassumed some degree of authority to do so.

Group of answer choices

agent

grantor

testator

lawful executrix

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Question 10

2pts

Which product would be defective under strict products liability?

Group of answer choices

An electric stove that, when the oven door is opened, gives a serious electrical shock.

150 proof vodka that causes intoxication and liver damage after years of use.

Cigarettes that causes cancer and heart disease after some years of use.

Coffee that is served hot enough to cause burns.

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Question 11

2pts

In the legal relationship known as "agency":

Group of answer choices

a general agent has the authority to act in any way required by the principal's business.

the principal is primarily liable for all actions undertaken by agents and subagents.

a general agent must be appointed for business purposes, while a special agent can be appointed for personal purposes.

the agent cannot have any personal property interest in the principal's business.

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Question 12

2pts

The _____ establishes a time period, generally ranging from six to twelve years, after which the manufacturer is not liable for injuries caused by the product

Group of answer choices

statute of repose

Magnuson-Moss Act

implied warranty of merchantability

implied warranty of fitness for particular use

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Question 13

2pts

It is possible to become someone's partner without intending to or even realizing that partnership has been created.

Group of answer choices

True

False

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Question 14

2pts

Unlike corporations, partnerships can be created accidentally.

Group of answer choices

True

False

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Question 15

2pts

The concept of a business firm as a legal person, with existence and accountability separate from its owners stems from _____.

Group of answer choices

entity theory

aggregate theory

concession theory

appropriation theory

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Question 16

2pts

Michelle bakes cakes during her vacations and sells them to people in her neighborhood. Her friend Diana visits her during the vacation and helps her out in baking. Michelle knows that baking is a lot of work and insists on paying Diana for helping her. Diana picks up the techniques of baking quickly and soon begins visiting Michelle daily, to help her bake. She begins looking for new customers for cakes and, on Michelle's insistence, they start sharing the profits. Under this case, Michelle and Diana have a(n) ____________ partnership.

Group of answer choices

implied

express

willful

estoppel

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Question 17

2pts

______________ is a partnership arising when in fact none exists, where one allows himself or herself to be represented as a partner, thus incurring partnership liability.

Group of answer choices

Partnership by estoppel

Implied partnership

Express partnership

Implied agency

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Question 18

2pts

Sharing of profits of a business gives rise to:

Group of answer choices

a strong but rebuttable presumption that the business is a partnership.

a finding of the existence of partnership by estoppel.

a determination that the owner is evading income taxes.

no inference regarding partnership existence.

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Question 19

2pts

Alice, a black woman, was not hired for a job as a sales clerk in a men's clothing store because, the manager said, "Frankly, you are not really good enough looking for this job." The store had several other black employees, including two women.The refusal to hire Alice is a violation of Title VII.

Group of answer choices

True

False

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Question 20

2pts

An employee was fired because he complained to the state environmental agency that his employer was allowing polluted water into the storm drainage system, in violation of environmental laws.If he was an at-will employee, his firing was allowable.

Group of answer choices

True

False

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Question 21

2pts

Betty hired workers from the privileged class but without the use of specific contractual terms. This scenario is an example of _____.

Group of answer choices

employment-at-will

disparate treatment

disparate impact

affirmative action

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Question 22

2pts

Which of the following is not directly covered by federal law?

Group of answer choices

Employment discrimination based on marital status

Employment discrimination based on race

Employment discrimination based on color

Employment discrimination based on physical disabilities

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Question 23

2pts

Roberta Gonzales & Co. is an interior decorating company owned by Ms. Gonzales, who is Latina; the company operates in two states, with 18 employees.The company bid on a contract to redecorate a hotel lobby, but did not get the bid, because, the hotel owner said, "We have enough Mexicans working around here."This is not a violation of federal civil rights laws.Why isn't it?

Group of answer choices

Roberta Gonzales & Co. is not an employee; it is an independent contractor.

Latinos are considered "white" and so there was no racial discrimination.

Employment discrimination laws only apply to firms with fifty or more employees.

Federal laws here only apply to firms dealing in three or more states to qualify for "interstate commerce."

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Question 24

2pts

Acme Co. sells arborist tools (chainsaws, peavies, goggles, protective chaps for loggers, safety harnesses, two-cycle engine oil, etc.).It only hires men salespeople because, it says, they relate better to the customers.Which statement is accurate?This is ____________________.

Group of answer choices

a violation of Title VII.

a bona-fide occupational qualification.

a yellow dog contract term.

not a violation of federal employment law.

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Question 25

2pts

_____________ is the highest duty of good faith and trust, imposed on partners as to each other and the firm.

Group of answer choices

Fiduciary duty

Embezzlement duty

Escrow duty

Duty of fair dealing

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Question 26

2pts

In case of limited liability companies (LLCs), all the members are equally liable to third parties regardless of the owner's level of participation.

Group of answer choices

True

False

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Question 27

2pts

The "corporate veil" means that there is a separate, legally recognized corporate entity that shields the people behind the corporation from personal liability.

Group of answer choices

True

False

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Question 28

2pts

Carl and Christine decided to open a small food joint together by investing capital and sharing the profits. However, Christine chose not to participate in the day-to-day activities of the food joint and Carl was singularly liable to any losses that their food joint made. It can be said that a ______________ was formed by Carl and Christine.

Group of answer choices

general partnership

limited partnership

limited liability company

agency corporation

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Question 29

2pts

One of the real benefits of limited liability companies (LLCs) that is unavailable in corporations is:

Group of answer choices

that no annual meetings are required.

that all members enjoy limited liability.

that it has a limited period of existence.

free transferability of interest.

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Question 30

2pts

What is a dividend?

Group of answer choices

It is a share of the corporation's profits.

It is the face value of a stock.

It is the first time a corporation offers stock for sale to the public.

It is the term that describes the sum of the par value of the issued par value stock and the consideration received for the no-par stock.

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Question 31

2pts

Strict liability is liability without proof of negligence and without privity.

Group of answer choices

True

False

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Question 32

2pts

Rule 10b-5 of the Securities Exchange Act is limited to the securities registered under the 1934 Securities Exchange Act.

Group of answer choices

True

False

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Question 33

2pts

Under the ___________, a creditor may not discriminate in granting credit.

Group of answer choices

Equal Credit Opportunity Act

Fair Credit and Charge Card Disclosure Act

Home Mortgage Disclosure Act

Community Reinvestment Act

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Question 34

2pts

Consolidated Cocoa Inc., a large chocolate manufacturing company, sells its shares directly to the public at $50 per share. Ron purchases 100 shares of the company. When the price of the shares goes up to $60, Ron decides to sell 50 shares. He approaches a broker who sells these shares to John at $60. This resale of the shares by the broker represents a sale in the __________ market.

Group of answer choices

secondary

initial public offering

commodities exchange

primary listing

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Question 35

2pts

What is a blue sky law?

Group of answer choices

It is a state law that regulates the offering and sale of securities to protect the public from fraud.

It is one of the laws used by the Supreme Court to ratify the formation of the Federal Trade Commission Act.

It is a state law that regulates discriminatory practices against people who want to buy Blue Chip stocks.

It is a state law that regulates the formation of agency shop agreements.

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Question 36

2pts

The Sherman Antitrust Act of 1890 was formed to:

Group of answer choices

forbid combinations in restraint of trade and monopolizing.

forbid employers from interacting with workers in the private sector who create labor unions.

set enhanced standards for all U.S. public company boards, management and public accounting firms.

limit the formation of runaway shop agreements.

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Question 37

2pts

Anagent who uses information gained in the scope of the agency for her own profit has_____________.

Group of answer choices

breached the fiduciary duty

committed a crime

forfeited the right to all compensation earned, but not yet received, before the offensive act

breached a duty of care

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Question 38

2pts

The courts have come to recognize two major types of Title VII cases. What are they?

Group of answer choices

Disparate Treatment lawsuits and Disparate Impact lawsuits

Disparate Treatment lawsuits and Sexual Harassment lawsuits

Disparate Impact lawsuits and Unlawful Termination lawsuits

Sexual Harassment lawsuits and Hostile Work Environment lawsuits

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Question 39

2pts

The employment-at-will doctrine derives from:

Group of answer choices

the common law

Title VII of the Civil Rights Act of 1964

employment contracts

the Contract Clause in the U.S. Constitution

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Question 40

2pts

Federal laws barring discrimination against the handicapped and disabled:

Group of answer choices

apply to most disabilities in private employment

apply to all disabilities in all employment circumstances

apply to all disabilities in public employment

don't apply to any disabilities in private employment

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Question 41

2pts

Anagent who accepts a bribe to purchasegoods for a principalonly from asellerwho is a personal friendbreaches his _____duty by taking the money, since it is the agent's duty to work only for the best interests of the principal.

Group of answer choices

fiduciary

statutory

gratuitous

apparent

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Question 42

2pts

Which of the following is true in case of implied warranties?

Group of answer choices

Implied warranty is one created by law, acting from an impulse of common sense

An implied warranty is created whenever the seller affirms that the product will perform in a certain manner.

An implied warranty, in contrast to an express warranty, is one in which specific language compel reading into the sale.

Implied warranties go to the essence of the bargain.

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Question 43

2pts

A "phantom" warranty:

Group of answer choices

looks good on paper but is nearly useless in fact.

Is called a "full warranty" under the Magnuson-Moss Act.

is valid only for the first purchaser of the good.

covers only parts, not labor.

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Question 44

2pts

Affirmative action in employment:

Group of answer choices

depends on the circumstances of each case for validity

is a requirement of Title VII of the Civil Rights Act of 1964

is a federal statute enacted by Congress

is prohibited by Title VII of the Civil Rights Act of 1964

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Question 45

2pts

The Age Discrimination in Employment Act protects:

Group of answer choices

most workers over the age of 40

all workers of any age

most workers over the age of 70

minors and senior citizens