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Eth 321 final exam guide new
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1
Which of the following statements is true of a
grand jury?
A grand jury has the authority to subpoena
business records relevant to a lawsuit.
A grand jury determines whether the accused in a
lawsuit is innocent or guilty.
At least 20 members should be present on a grand
jury to examine evidences and vote on a case.
For an indictment to be returned, only one-third of
a grand jury needs to agree that a crime has been
committed.
2. 2
Alan and Miriam are engaged in a debate on the
importance of intellectual property rights. While
Alan holds the view that intellectual property
protection safeguards the interests of businesses,
Miriam thinks that it ultimately puts businesses at
a disadvantage by hampering the dissemination of
information. Which of the following arguments is
most likely to be raised by Alan to strengthen his
proposition?
Intellectual property rights reduce the pace of
research and development drastically.
Intellectual property rights result in an increased
availability of products.
Intellectual property rights reduce businesses’
market share by facilitating competition.
Intellectual property rights allow businesses to
charge premium prices for their products.
3
According to the __________, the acceptance of an
offer results in a binding contract only if it exactly
matches the terms of the offer.
3. mirror image rule
parol evidence rule
exclusive remedy rule
mailbox rule
4
The __________ enacted in 1938 established
minimum wage, overtime pay, and record-keeping
requirements.
Uniformed Services Employment and
Reemployment Rights Act
Family and Medical Leave Act
Fair Labor Standards Act
Worker Adjustment and Retraining Notification
Act
5
The term __________ refers to the placing of an
individual in immediate apprehension for his or
her physical safety.
defamation
4. conversion
assault
battery
6
The term __________ refers to any change in the
ownership of a business organization that would
alter its legal existence.
dissolution
consideration
rescission
conversion
7
Which of the following statements is true of the
Securities and Exchange Commission?
Its members are appointed by the senate for a
term of four years.
It is responsible for implementing the federal
securities laws.
5. It lacks the authority to frame rules regarding
transactions of securities.
Its members are either lawyers or security
analysts.
8
A system of equally applied law is a necessity for
the foundation of a strong, productive economy
because it:
allows economically strong nations to exploit the
resources of weaker nations.
incentivizes private businesses to restrict job
opportunities for well-educated people.
encourages strangers to make agreements on
certainty and trust.
prohibits individuals from trading in modern
private markets.
9
Which of the following scenarios illustrates a
formalist approach to business decisions?
Selling products by deceiving customers about
6. possible negative aspects of the products
Monitoring employee browsing history without
their consent to curb non-productive activities
Informing new customers about delays in
production schedules
Assigning significantly high productivity targets to
reduce costs
10
A(n) __________ refers to the individual or business
entity offering a security for sale to the public.
controlling person
seller
issuer
underwriter
11
Windy and Ruby plan to present a paper on
intellectual property rights. They decide that
Windy will present the arguments in favor of
intellectual property rights and that Ruby will
argue how intellectual property rights could be
7. detrimental to businesses and their customers.
Which of the following is most likely to be Ruby’s
argument?
Intellectual property rights reduce businesses’
prospects of economic return on investment.
Intellectual property rights reduce the pace of
research and development drastically.
Intellectual property rights result in a decrease in
the availability of products.
Intellectual property rights do not allow
businesses to charge premium prices for their
products.
12
Which of the following statements is true of white-
collar crimes?
They are usually committed for personal financial
gain.
They rarely affect consumers of a business.
They rarely occur in business environments.
8. They are dependent on the threat of physical force.
13
Which of the following scenarios illustrates a
bilateral contract?
Grapevine Inc. follows a five-day workweek
system and also offers a compressed workweek
option.
Sameera, a writer, signs a contract with her
publisher to publish her book.
Helen, a painter, signs a contract with an art
gallery that agrees to purchase her painting for
$2000.
The management of Uno Inc. offers additional
benefits to its employees annually.
question14
The Equal Employment Opportunity Commission
was created through the __________.
National Labor Relations Act
Civil Rights Act
Age Discrimination in Employment Act
9. Americans with Disabilities Act
15
Concerted efforts to lobby government officials,
irrespective of their anticompetitive purposes, are
given an exception from the Sherman Act under
the __________.
overbreadth doctrine
Colgate doctrine
Noerr-Pennington doctrine
incorporation doctrine
16
A __________ is the simplest and least expensive
business institution to create.
limited liability company
partnership
sole proprietorship
corporation
17
10. In a state court system, lawsuits filed by parties
typically begin at the __________.
federal district court level
appellate court level
trial court level
supreme court level
18
According to the Commerce Clause, the power to
regulate interstate commerce is vested with
__________.
state governments
state-level courts
the federal government
the U.S. Supreme Court
19
A business decision maker’s decision is more
likely to raise ethical concerns in a society where:
there is an increase in demand for public
11. education.
the family structure is stable.
the news media and the Internet have significant
influence.
there is a decrease in economic interdependence.
20
How does law hold diverse people of different
backgrounds into large, organized groups?
It prevents enforcement institutions from
enforcing written rules on strangers.
It tells the members of a society what they can and
cannot do.
It discourages people from making agreements
based on certainty and trust.
It allows strangers to adopt rules that support
their beliefs.
21
Courts determine whether the language of an offer
was clear enough to result in a contract by:
12. examining the objective intent of the offeror.
investigating whether an offeree actually accepted
the offer.
examining the adequacy of the consideration
offered.
analyzing whether the terms of the acceptance
matches the terms of the offer.
22
Who among the following individuals commits a
battery?
Amanda, who fires her employee Trevor without
any notice and causes him severe mental distress
Yuki, who injures her boss Reese with a knife and
inflicts serious injuries on him
Joan, the customer care manager in a retail store,
who verbally threatens a customer who calls to
complain about a faulty product
Vincent, the CEO of Gregon Inc., who pays media
firms to circulate false information about Gregon’s
chief competitor
13. 23
Fuzo Inc., a manufacturer of leather bags, enters
into a contract with a firm regarding the
installation of a machine in Fuzo’s factory. Fuzo
agrees to pay $1000 for the machine and another
$200 as the installation charge. In this scenario,
the terms of the sale will be covered under
__________.
the Federal Arbitration Act
the Uniform Commercial Code
the Foreign Corrupt Practices Act
the Internal Revenue Code
24
The term __________ refers to the act of referring a
matter to arbitration.
submission
settlement
litigation
conflict
14. 25
__________ is a legal remedy to a breach of contract
by which each party to the contract returns the
consideration offered by the other.
Arbitration
Specific performance
Negotiated settlement
Rescission
26
Which of the following statements is true of
alternative dispute resolution (ADR) systems?
ADR systems increase the costs incurred during
the litigation process.
The parties to a dispute need not present the case
to a jury before opting for ADR systems to settle
the dispute.
ADR systems cannot be used for dispute resolution
in contractual relationships unless they are
specified in the contract.
15. The litigation process precludes the use of ADR
systems.
27
The __________ is the constitutional provision that
details the federal government’s power to regulate
business activities.
Commerce Clause
liquidated damages clause
equal protection clause
supremacy clause
question
28
Which of the following legal remedies to a breach
of contract allows the parties to the contract to
agree to abide by the decision of a third party or
parties?
Arbitration
Specific performance
Negotiated settlement
16. Rescission
29
__________ refers to an agreement made between
competitors in an industry to fix prices of their
products.
Horizontal price fixing
Resale price fixing
Indirect price fixing
Vertical price fixing
30
The petition for a writ of certiorari by the losing
party of a litigation will be reviewed by the U.S.
Supreme Court:
if the winning party agrees to subsequent reviews.
if the federal district courts and the courts of
appeal correct the judicial errors charged against
the state court.
if at least one of the nine justices vote to take the
case.
17. if there is a major conflict between the trial and
appellate courts on the interpretation of federal
law.