Question;PART I;1. Which of the following is a true statement?;A - Building contractors and subcontractors are usually not independent contractors.B - An agency relationship can be formed only in a witnessed and signed writing since it is a high-level business relationship.C - There generally does not need to be a written agreement between the principal and agent in order to create an agency relationship.D - An agent does not owe to his or her principal a duty to act in good faith.;2. A person may be discharged from his or her contractual obligations under the common law byA - Substantial performanceB - Complete performanceC - Impossibility of performanceD - All of the above;3. Which of the following contracts is not required as a general rule to be in writing under the Statute of Frauds?A - A contract to be performed in less than one year.B - A contract involving the sale of land.C - A contract for the sale of goods over $500.D - A guaranty contract to pay someone else's debt if they fail to.;4. Excel Corporation agrees to sell the latest version of its Go! computer game to National Retail Company. Excel delivers an outdated version of Go! (nonconforming goods). National?s possible remedies may includeA- recovering damages only.B - rejecting part or all of the goods, or revoking acceptance only.C - recovering damages, rejecting goods, or revoking acceptance.D - none of the above.;5. Which of the following is a false statement?;A- If a contract for the sale of goods does not include a price term, it nonetheless may still be enforceable pursuant to the Uniform Commercial Code.B- If a contract for the sales of goods does not include the exact terms for payment, it normally will be unenforceable since it is impermissibly vague.C- When an offer for the sale of goods does not specify a means of acceptance, the offer usually can be accepted by any manner reasonable under the circumstances.D- A warranty is an assurance by the buyer to the seller that he or she will pay valid and good consideration for a product.;6. Which of the following is the most accurate statement?A- The offeree?s rejection of an offer terminates it as a general rule under the common law.B- An offeror can revoke an option contract if the offeror decides that the consideration given for it was inadequate.C- Revocation of an offer made to the general public must be communicated in a large metropolitan newspaper, such as the Miami Herald, New York Times, or Washington Post.D- Offers are irrevocable under the common law for a three month period.;7. The purpose of a proxy is to;A- Allow a shareholder to transfer shares to another.B- Allow a shareholder to place shares in trust.C- Allow a shareholder to assign her right to vote to another.D- Allow a shareholder to assign her dividends to another.;8. Which is TRUE regarding the employment at-will doctrine in the United States?;a. It can result in a legal but immoral discharge of an employee.b. It cannot be changed by a contract between the employer and the employee.c. It is operable in the U.S. and can result in a discharge without notice or cause or good cause but the employer based on federal law has to pay severance to the discharged employee based on the number of years he or she has worked for the firm.d. It supersedes and prevails over Title VII of the Civil Rights Act.;9. Which of the following statements is false?;A- Notice-and-comment rulemaking is the most common rulemaking procedure used by administrative agencies in the United States to make law.B- Tort law provides legal remedies for both personal injury and property damage.C- To commit an intentional tort, a person must intend the consequences of his or her act or know with substantial certainty that certain consequences will occur.D- To commit an intentional tort, a person always must act with an evil motive to commit physical harm.;PART II;10. Data Corporation created and sells "Economix," financial computer software. Data's copyright in Economix is best protected underA- the Berne Convention.B- the Paris Convention.C- the TRIPS Agreement.D- none of the above.;11. Digital Equipment, Inc., sells computer products. Which of the following may Digital's board of directors do without shareholder approval?;A- Amend the articles of incorporation.B- Buy substantially all of the assets of another corporation.C- Dissolve the corporation.D- Sell substantially all of the assets of Digital.;12. Chavez is a manager of X Corporation. Another company asks for a recommendation about a former employee of X, Burke, who is now applying for a job. The reference is sent to the new potential employer, where it is received and read by the HR director. It is very negative, and truthful in most respects, but inaccurate to some degree about Burke's attendance record. Burke does not get the job and sues Chavez for the tort of defamation. The likely result of such a lawsuit will be;A- Burke will lose since the recommendation was not published to more people at the new potential employer.B- Burke will prevail since he has been falsely maligned in part in the reference.C- Burke will prevail since Chavez interfered with Burke's livelihood.D- Burke will lose since Chavez typically would be protected by a conditional or qualified privilege assuming that that Chavez did not act with malice or bad faith.;13. Omega, Inc. controls 80 percent of the market for telecommunications equipment in the southeastern United States. To show that Omega is monopolizing that market in violation of the Sherman Act requires proof of;A- only the possession of monopoly power in the relevant market. b.B-only the willful acquisition or maintenance of monopoly power.C- the possession of monopoly power in the relevant market and its willful acquisition or maintenance.D- none of the above.;14. Before opening her new sports merchandise store, Kay places an ad in the newspaper showing cross-training shoes at certain prices. Within hours of opening for business, 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.;15. Dan assigns to Evan a contract to buy a used car from Fran. To be valid, the assignment mustA- be in writing and be signed to Dan.B-be supported by adequate consideration from Evan.C-not be revocable by Dan.D-not materially increase Fran's risk or duty.;16. Local Delivery Company and Regional Trucking, Inc., attempt to enter into a contract in electronic form. Under the Electronic Signatures in Global and National Commerce Act (E?SIGN Act), because this contract is in electronic form, itA - may be denied legal effect.B- may not be denied legal effect.C- will be limited to certain terms.D-will not be enforced.;17. Carl continuing trespasses on Lisa's land by cutting across her property as a "short-cut" to the bus stop. Lisa asks Carl to stop doing this but Carl refuses saying he is really doing no damage or harm to the property by merely walking across it. Lisa's best legal remedy would be to seek what legal redress against Carl?A- A degree of specific performance.B- A lawsuit for money damagesC- An injunctionD- A quasi-contract.;18. 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.;19. To acquire the ownership of a strip of waterfront property by adverse possession, Glen must occupy the property exclusively, continuously, and peaceably for a specified period of timeA- in an open and adverse manner.B-until the owner files suit.C-without the owner's knowledge.D-with the state's permission.;20. Beth offers to buy from Chris a used computer, with a monitor and printer, for $400. Chris says, "OK, but I must have $200 more for the monitor and printer." Chris hasA- accepted the offer.B- made a counteroffer without rejecting the offer.C- rejected the offer and made a counteroffer.D- rejected the offer without making a counteroffer.21. Jay and Kim enter into a contract for Jay's sale to Kim of ten computers for $500 each. After Kim takes possession, but before she makes payment, this contract is enforceableA- only if it is in writing.B- only if it is oral.C- whether it is oral or in writing.D-under no circumstances.;22. Security Guns & Ammo, Inc. tells its salespersons not to load a gun during a sale. Bert, a salesperson, loads a gun during a sale. The gun fires, negligently injuring Kathy, who is in the store. Security is;A- not liable, because Bert was not acting within the scope of employment.B- not liable, because employers are not responsible for their employees' torts.C-liable under the doctrine of respondeat superior.D-liable under the doctrine of res ipsa loquitur.;23. National Coal Association (NCA) is a group of independent coal mining companies. Demand for coal falls. The price drops. Coal Refiners Association, a group of independent coal refining companies, agrees to buy NCA's coal and they all agree to sell it according to a schedule that will increase the price. This agreement isA- 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.24. Mike promises to pay Nora to work for him. Nora agrees and quits her job, but Mike does not hire her. Mike may be liable to Nora based onA- the concept of accord and satisfaction.B- the doctrine of promissory estoppel.C- the preexisting duty rule.D- the principle of rescission.;25. Adam invests in a franchise with Best Gas Stations, Inc. Best requires Adam to exclusively buy Best products for every phase of the operation. Adam's best argument to challenge this requirement is that it violatesA- an implied covenant of good faith and fair dealing.B- antitrust laws.C- the Federal Trade Commission's Franchise Disclosure Rule.D- the U.S. Franchise Agency's Purchase and Sale Regulations.26. At one point in time, the company Gator-Aide commanded 83% of the sports beverage market. This market share was primarily due to the fact that a University of Florida professor had invented the product which became very popular and thus the company became very successful. However, there were two other competitors in the market - Coke and Pepsi, which approximately shared the rests of the market. Pursuant to Section 2 of the Sherman Act, the best conclusion regarding anti-trust liability for Gator-Aide would be;A- The company would be deemed guilty of monopolization of commerce since it possessed a very high share of the market.B- The company would not be deemed guilty of monopolization of commerce.C- The company would not be liable since the courts would say that the market was too narrowly defined and should include other sports drinks, such as water, soda, and beer (but only light beer).D-The company committed a horizontal restraint of trade by "freezing out" its main competitors.;27. Zinnie from Jersey City, New Jersey, and Sally from Sunny Isles, Florida, are disputing the title to and thus ownership of a small piece of undeveloped real property in western North Carolina. At most, the property is worth only a few thousand dollars, nonetheless, Vinnie intends to proceed to court to resolve the matter. Which court system will hear the case?a. New Jersey state court system, since Vinnie is the plaintiff and the one bringing the lawsuit and he is a New Jersey resident.b. Florida state court system, since Sally is the defendant and she is a resident of Florida.c. The federal district court system, since Vinnie and Sally are residents of different states.d. North Carolina state court system, since the property is located in that state and the lawsuit involves title to real property.;28. Jill sells her business to Kyle and, as part of the agreement, promises not to engage in a business of the same kind within three miles for one year. This promise is generallyA- an unreasonable restraint of trade.B- unreasonable in terms of geographic area and time.C- unreasonable in terms of Kyle's "goodwill" and "reputation."D- valid and enforceable.;29. In making business decisions, Owen, a certified financial planner with Private Investment Corporation, attempts to apply his belief that human beings have fundamental moral rights and duties. This belief is best manifested byA - Legal standards onlyB - Kantian ethicsC - What a society believes is and is not a moral right and dutyD - What the local community believes is socially responsible behavior for an investment firm.;30. Which of the following is NOT an accurate statement about the Utilitarian ethical theory?;A- It determines the moral worth of an action based on what a society believes is morally rightB-It may allow the personal interests of individuals to be sacrificed in that the collective good be attainedC-It is usually regarded as a consequentialist ethical theoryD-It determines the moral worth of an action by whether the action achieves the greatest overall balance of satisfaction over dissatisfaction.;31. A satisfactory approach to moral business decision-making would encompass:A- Doing well for the company as per Ethical Egoism.B - Acting morally for the "greater good" as per Utilitarianism.C - Achieving this "greater good" without demeaning or disrespecting anyone as per Kantian ethics.D - All of the above.;32. Which of the following statements is most accurate?;A- Morals are legal minimums.B-Morals are legal maximums.C- Laws are moral minimums.D- Laws are moral maximums.;33. Which of the following are reasons for changing moral standards in the workplace over the past several decades?AnswerA- The communications "revolution"B-Growing environmental problems and an awareness thereofC- A proliferation of women and minorities in the workplaceD- All of the above.;34. Big Sneaker Multinational Company has an Asian manufacturing facility which would be regarded as a "sweat-shop," where young, teen-age girls are exploited, working for poor wages and with minimal safety precautions, as well as some of the girls being sexually harassed by managers in the making of sneakers. The company, however, is acting legally in Asia and, moreover, produces a lot of money for the Asian and U.S. economies, the company's shareholders and distributors and retailers, and furthermore the U.S. consumer gets a very good product at a reasonable price. The Asian girls have some type of a job, at least. Under these circumstances, Kant based on his Categorical Imperative would say;a. If those type of working conditions are considered to be normal and the customary practice in Asian societies then the facility is a moral one.b. If the facility produces the greater good for U.S. and the Asian society then it is a moral one despite some suffering by the employees.c. If the facility produces overall good for the company, despite a little bad publicity which the "PR people" can handle, then it is moral.d. If the working conditions at the facility are not improved and if the sexual harassment of the girls is not stopped, the facility is an immoral one as it fails the Kingdom of Ends and Agent/Receiver tests.35. Big Greene Company is considering introducing a new product to replace an existing product. The new product would result in increased revenues, but slightly lower overall profits because the product will cause injury to a few users and Big Green will issue warnings and compensate persons who are injured. The introduction of this product would best be a proper decision pursuant to;A- Ethical egoismB- Kantian ethicsC- Ethical relativismD- Corporate social responsibility.;36. As to why a company should be a socially responsible one and get involved in civic and charitable affairs, Socrates would likely argue:A- Justice is the will of the stronger. B-Money comes from virtue. C- Ignorance of the law is no excuse. D- Virtue comes from money.;37. Some consumers misuse the products of Midwest Manufacturing, Inc., but in a foreseeable manner, and are injured. In terms of responsibility for consequences, Midwest may haveA- An ethical duty only B- A legal duty only C- An ethical and legal duty D- Neither an ethical nor a legal duty.;38. A large business merger such as the Continental Airlines - United Airlines merger typically has what type of ramifications:A- Legal B- Moral C- Social Responsibility D- All of the above.;39. Which of the following statements is most accurate regarding the relationship of law and ethics?A- The legal requirement will almost always be the same as the ethical requirement because the law is equivalent to the ethical standards. B- In some cases ethics will require a higher standard of conduct than the law, but never the opposite. C- In some cases the law will require a higher standard of conduct than ethics, but never the opposite D- Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.;40. What is TRUE about the employment at-will doctrine?a. It has been modified by statute, for example, civil rights acts.b. It has been modified when a discharge is in violation of a fundamental "public policy" of a state.c. It can result in a legal but immoral discharge.d. All of the above.;40. Which of the following will the executives of Mink, Inc, a fur sale company, likely take into account in carrying out their business?A- Adverse publicity and threat of boycottsB- Legal restrictions on the production and sale of animal fur productsC- Societal norms as to the morality of selling fur products D- All of the above;41. CEO Cleo believes her corporation must consider what effects corporate actions may have on the company's stakeholders. Which of the following theories is NOT part of Cleo's approach to business?A- Corporate "Good Citizenship" B- Stakeholder Interest C- Legal Nonfeasance D- Social Responsibility;42. A war against the repressive government erupts in Country X. The U.S. Congress wants to draft U.S. citizens into the military to help the people of Country X fight for independence. Members of Congress believe that although some U.S. troops may die, hundreds of thousands of people in Country X will be given freedom. The President of the U.S., however, believes that individuals should have the right to choose from themselves whether to fight or not and thus opposes the idea of a draft. The President's feelings closely mirrorAnswerA- Kantian ethics B- Utilitarianism C- Corporate social responsibility D- Plato's ethics.;43. Which statement is NOT correct?A- The Kantian moral philosopher believes that formal "legal" law is superior to universal moral rules and ethical principles that can be determined by reason B- Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior. C- Ethics is not concerned with the philosophical, theoretical, rational basis for morality. D- An action may be legal but not moral.;44. Kyle, an accountant for Engineering Associates, Inc. attempts to apply the duty approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a personA- Has a duty not to engage in unethical or immoral behavior no matter how desirable the consequences may be B- Has a duty to conform one's behavior to society's ethical standards C- Has a duty to one's employer that is superior to any duty owed to society as a whole D- May engage in unethical behavior if it achieves the greater good.
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