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42. Pursuant to U.S. statutory immigration law, immigrant visas can be granted to immigrants who possess "extraordinary" knowledge, abilities, and talents since they will benefit the United States. Idi Obuku is a drum-maker from Uganda who specializes in making native drums and other local cultural artifacts. He is denied an immigrant visa by the Immigration Division of Homeland Security after an administrative hearing because he was not deemed to be sufficiently "extraordinary." He appeals the agency's decision to the federal court. The result of this lawsuit likely will be:
A Idi Obuku will win since all immigration determinations have to be made after a trial in federal district court.
B He will lose because he is from Africa.
C He will lose because there is no right to appeal immigration decisions now that Immigration is part of Homeland Security.
D He will win if he can convince the federal court to substitute its interpretation and application of the law for that of the agency.
43. Big Nuclear Energy Corporation commences a pro-nuclear advertising campaign to extol the benefits of safe nuclear energy. Vermont, the Green Mountain state, passes a law prohibiting the company from advertising in Vermont. The likely result of such a lawsuit would be:
A The Vermont law would be struck down as a violation of the company's free speech rights under the First Amendment.
B The law would be upheld since nuclear energy is known to be dangerous and Vermonters do not want to encourage the nuclear industry.
C The law would be upheld since corporations do not have any First Amendment rights.
D The law would be struck down since only the federal government and the Federal Trade Commission can regulate advertising in the United States.
44. Samir, a legal resident of the U.S., applies for a job position with an employer as a word processor. The position requires that a person type into Word documents various old books, many of which have "fine" print, so that they can be converted into electronic editions. Which of the following is NOT a violation of U.S. civil rights laws?
A Samir does not get the job because he is dark-skinned.
B Samir does not get the job because he is from Pakistan.
C Samir does not get the job because his eyesight is very, very poor and not sufficiently correctable.
D Samir does not get the job because he is a Muslim.
45. Gamma Company agrees to sell software to Holly from Gamma's Web site. To complete the deal, Holly clicks on a button that, with reference to certain stated terms, states, "I agree." The parties have
A a binding contract that does not include the terms.
B a binding contract that includes only the terms to which Holly later agrees.
C a binding contract that includes the terms.
D no contract.
46. Jack, an older worker who was laid-off from his job due to economic reasons, applies for a new position with Y Corporation, He is rejected for employment. The reason given is that he is "over-qualified." The position remains open and another younger candidate is chosen. Jack sues for discrimination based on age in violation of the ADEA. Which is an accurate statement regarding Jack's lawsuit?
A Jack must be over 40 to bring a lawsuit.
B Jack will prevail if he can convince the court that the use of the words "over-qualified" was a "code word" showing a discriminatory intent.
C Jack will lose if the company can convince the court that having a young person in the position was a BFOQ.
D All are accurate.
47. John, Jr., a college freshman, 17 years old, and thus a minor, lies about his age, stipulating in writing that he is 19, and buys a big, flat-screen TV from Good Buy. The TV is badly damaged when John, Jr. and his friends are tossing around a football in his dorm room. He returns the TV to Good Buy and demands his money back, saying he is just 17 years old. The likely legal result of this situation would be:
A Since he is a minor he can disaffirm the contract and get all his money back and is protected due to his youth and immaturity.
B Since he is a minor he can disaffirm the contract and get some money back but because he lied, he is liable for the damage and depreciation to the TV.
C He cannot disaffirm even though he is a minor since he misrepresented his age and the misrepresentation is in writing..
D He cannot disaffirm the contract since a big, flat-screen TV would probably be regarded as a "necessity" for a college student today.
48. Before opening her new sports merchandise store, Kay places an ad in the news¬paper showing cross-training shoes at certain prices. Within hours of opening for busi¬ness, the store is sold out of some of the shoes. In this situation
A Kay has made an offer to the people reading the ad.
B Kay has made a contract with the people reading the ad.
C Kay has made an invitation seeking offers.
D Any customer who demands goods advertised and tenders the money is entitled to them.
49. ABC Sales Corporation wants to protect its customer lists as legally protected trade secrets. Accordingly, it should:
A Take reasonable steps to maintain the secrecy and confidentiality of the information in the list.
B Copyright them since customer lists are not sufficiently scientific and technological to deserve trade secret protection.
C Demonstrate that the customer list has economic value since it gives ABC a business and competitive advantage.
D A and C.
50. Metro Transport asks for bids on a construction project. Metro estimates that the cost will be $200,000. Most bids are about $200,000, but A&B Construction bids $150,000. In adding a column of figures, A&B mistakenly omitted a $50,000 item. Because Metro had reason to know of the mistake
A A&B can avoid the contract because Metro knew or should have known of the errors.
B A&B can avoid the contract because the errors were the result of negligence.
C Metro can enforce the contract because the errors were unilateral.
D Metro can enforce the contract because the errors were material.
51. A bridge’s design is defective and soon after completion it begins to visibly sway in the wind. Everyone stays off, except Carl, who wants to show off. Carl falls from the bridge and sues its maker, who can raise the defense of
A assumption of risk.
B commonly known danger.
C product misuse.
D none of the above.
52. What is a derivative lawsuit?
A An action brought by the board of directors on behalf of the corporation.
B An action brought by a majority of the board of directors against an individual board member.
C An action brought by a shareholder or shareholders on behalf of the corporation when the board of directors does not file the suit.
D An action brought by shareholders against the corporation.
53. Under law, a tort can be best described as:
A Any violation of an ethical duty.
B Another term for a crime or misdemeanor.
C Any action done in violation of a prior agreement which allows the victim to recover damages.
D A civil wrong which allows the person injured or harmed to recover damages.
54. In a negligence lawsuit, the causation element would be satisfied by a showing of:
A An intentional action by the defendant that intended to and caused harm to the plaintiff.
B Actual legal cause and proximate cause of the injury.
C A purposeful malicious act by the defendant that caused harm to the plaintiff.
D None of the above.
55. Which of the following practices is not a “bait and switch”?
A Running out of the advertised product because the high demand was not anticipated.
B Refusing to show customers the advertised product.
C Discouraging employees from selling the advertised product.
D Not having supplies of the advertised product on hand.
56. Central Data Corporation and Digital, Inc., are competitors. They form a joint venture to research, develop, and produce new software for a particular line of computers. This joint venture is
A a per se violation of the Sherman Act
B exempt from the antitrust laws.
C subject to continuing review by the appropriate federal agency.
D subject to the Rule of Reason.
57. The Commerce Clause in the Constitution gives the federal government the power to regulate commerce which:
A Actually crosses state lines only.
B Affects interstate commerce or is conducted with foreign nations or Indian tribes.
C All commerce.
D The states have chosen not to regulate.
58. A decree of rescission is
A an action to cancel a contract and return the parties to the positions they held before the contract’s formation.
B an award of damages.
C an order to do or refrain from doing a particular act.
D an order to perform what was promised.
59. Which of the following is a false statement?
A U.S. child labor laws provide that children aged 12-14 may engage in sales work outside school hours if their parents consent and if no heavy lifting is involved.
B Both men and women can sue for sexual harassment in the United States.
C Whistleblowing by employees in the private sector can now be a legally protected activity pursuant to some states’ laws in the United States.
D A deceptive advertisement is one that is either false or misleading pursuant to the U.S. Federal Trade Commission’s legal standards.
60. To be guilty of monopolization, the defendant must:
A Possess monopoly power.
B Have obtained the monopoly power by some willful wrongful act.
C Must be part of a conspiracy, combination, or contract.
D A and B only.
61. Jill invests $1,000 to buy 10 shares of Good Corporation. The corporation goes bankrupt having no assets and $l million in liabilities. The most Jill can lose is the $1,000 she invested. This is an example of the corporate characteristic of:
A Limited liability.
B Free transferability of shares.
C Perpetual existence.
D Centralized management.
62. If the buyer breaches the contract before the goods are completed, the seller can:
A Complete the goods and resell them.
B Stop work on the goods and resell them as scrap.
C Recover damages from the buyer.
D A, B and C.
63. Sam and Tony want to discharge their obligation under a prior contract by executing and performing a new agreement. They must execute and perform
A an accord and satisfaction.
B an assignment.
C a novation.
D a nullification.
64. Article 2 of the UCC covers which types of transactions:
A Sales of goods and sales of real property.
B Sales of goods and leases of goods or real property.
C Sales of goods and contracts for the providing of services.
D Sales of goods and leases of goods.
65. Which of the following factors can never be used as a legal bona fide occupational qualification?
D B and C.
66. A provision under the UCC which affects merchants differently from nonmerchants is:
A The effect of additional terms in an acceptance.
B The firm offer rule.
C The written confirmation rule.
D All of the above.
67. Where the principal makes representations to a third party, such as the use of a title in the employment situation, about the role that an agent is to play, which kind of authority usually arises?
A Apparent authority.
B Authority by ethics.
C Inherent authority.
D Express authority.
68. Which statement is TRUE regarding U.S. anti-trust law?
A All monopolies are illegal pursuant to Section 2 of the Sherman Anti-trust Act.
B All horizontal mergers are illegal pursuant to Section 7 of the Clayton Act.
C Vertical territorial division is a restraint of trade that is governed by the Rule of Reason of anti-trust law.
D Evidence of predatory, abusive, and unethical conduct by a monopoly is insufficient to show intentional wrongful conduct for monopolization purposes.
69. What is the legal significance of the distinction between rule of reason violations and per se violations under the Sherman Act?
A Rule of reason violations must be proven beyond a reasonable doubt and per se violations must be proven with a preponderance of the evidence.
B Rule of reason violations require an agreement with at least one other party, but per se violations can occur without an agreement with others.
C Rule of reason violations relate to actions brought by private parties and per se violations relate to actions brought by the government.
D Rule of reason violations ultimately may be proven to be legally acceptable, but per se violations cannot be deemed to be acceptable under any circumstances.
70. A standard business corporation must have:
A a shareholder or shareholders.
B a board of directors.
C a registered agent.
D All of the above
71. Which of the following is a false statement?
A The Civil Rights Act of 1964 in the U.S. does not expressly prohibit job discrimination based on educational standards.
B The Civil Rights Act of 1964 in the U.S. does not expressly prohibit job discrimination based on sexual preference or orientation.
C The U.S. Equal Employment Opportunity Commission can sue in federal court on behalf of a victim of discrimination.
D Under current U.S. law, corporate employers cannot advertise for positions in minority or women’s business journals since that would be “reverse discrimination.”
72. The Statute of Frauds requires that certain types of contracts:
A Be in writing in order to be valid.
B Be in writing in order to be enforceable.
C Contain a promise for an act.
D Have two or more attorneys present at the signing of a written contract.
73. In the context of agency, ratification refers to:
A Reaffirming a contract which one previously agreed to.
B Agreeing, after reaching majority, of a contract entered into as a minor.
C Agreeing to be bound to a contract entered into by an agent which exceeded the agent's authority at the time the agent entered into it.
D Getting the appropriate agency to agree to take steps to reduce an excessively large rodent population.
74. A contract that one party may avoid without being in breach is
75. A party to a lawsuit may file a motion to dismiss
A only if the court lacks jurisdiction.
B only if the complaint does not state a claim for which relief can be granted.
C if the court lacks jurisdiction or if the complaint does not state a claim for which relief can be granted.
D under no circumstances.
76. Which statement is FALSE about the Clean Air Act and the Clean Water Act?
A Both strictly forbid any air or water pollution in the United States.
B Both allow the Environmental Protection Agency to set air and water standards and to enforce them along with the states.
C Both are major Congressional statutory enactments designed to protect the environment.
D Both require companies to use the best available technology to reduce and to curtail pollution.
77. The board of directors of Omega, Inc., announces a cash dividend.
A cash dividend may not be paid from A accumulated surplus.
B gross profits.
C net profits.
D retained earnings.
78. Unless the amendment is one the board may adopt without shareholder action, amendment of the articles of incorporation:
A may affect such provisions as would be lawful and proper at the time the amendment is adopted.
B must be approved by a majority of the votes entitled to be cast on the amendment by any voting group with respect to which the amendment would create dissenters' rights.
C must be approved by the votes required of every other voting group entitled to vote on the amendment
79. Which of the following is true about punitive damages?
A They are generally not available for breach of contract claims.
B They are awarded only if consequential damages are also awarded.
C They are awarded where specific performance is not available.
D Their purpose is to give the nonbreaching party the benefit of the bargain.
80. What, functionally, is the relationship between partners?
A A partner is an agent of his or her fellow partners, who are his or her principals.
B A partner is a principal of his or her fellow partners, who are his or her agents.
C Both a and b
D Neither a nor b