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1. UOP 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.

2. 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
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

3. 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.
mirror image rule
parol evidence rule

4. 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

5. 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
conversion
assault
battery
6
The term __________ refers to any change in the ownership of a
business organization that would alter its legal existence.

6. 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.

7. It is responsible for implementing the federal securities laws.
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.

8. 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 possible
negative aspects of the products
Monitoring employee browsing history without their consent to
curb non-productive activities

9. 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

10. 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
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.

11. 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.

12. 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.

13. 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
Americans with Disabilities Act
15
Concerted efforts to lobby government officials, irrespective of

14. 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.

15. limited liability company
partnership
sole proprietorship
corporation
17
In a state court system, lawsuits filed by parties typically begin
at the __________.
federal district court level

16. 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

17. 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 education.
the family structure is stable.
the news media and the Internet have significant influence.

18. 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.

19. 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:
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

20. 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
23

21. 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.

22. submission
settlement
litigation
conflict
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

23. 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.

24. 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.
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

25. 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

26. 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

27. 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.
if there is a major conflict between the trial and appellate
courts on the interpretation of federal law.