09 May WHICH OF THE FOLLOWING IS TRUE ABOUT SEXUAL HARASSMENT IN THE WORKPLACE?
QUESTION 11. Which of the following is a FALSE statement?A.A contract should specify where disputes are to be adjudicated and which jurisdiction’s law will be applied to any disputes.B.California does not recognize the validity of covenants-not-to-compete (or non-competition clauses) in employment contracts.C.When a person goes into bankruptcy an automatic stay arises which means that contract claimants and ofther creditors are prohibited from instituting any legal proceeding to enforce a contract or to obtain any money owed pursuant to a contract.D.”Puffing” statements such as this is a “great car” or a “top-notch car ” are typically grounds for breach of express warranty lawsuits.0.5 points QUESTION 21. If the time place and manner of delivery of goods is not mentioned in a contract:The place of delivery is the buyer’s place of business.The contract is void for lack of definiteness.The place of delivery is the seller’s place of business.The seller is obligated to pay for shipping to the buyer’s place of business.0.5 points QUESTION 31. Which is NOT a characteristic of the traditional business corporation?a.Centralized management by means of a board of directors and corporate officersb.Creation by the filing of an articles of incorporation and approval of a corporate charter by the appropriate state agencyc.Personal liability of the shareholders for corporate debts and obligationsd.Access to capital markets by the issuance of shares of stock and their sale to the investing public.0.5 points QUESTION 41. Which of the following is atrue statement?A.Alternative dispute resolution is usually part of the traditional judicial litigation process.B.There is a single court system shared by all the states and the federal government in the United States.C.State appellate courts when they review trial court decisions usually listen to new testimony from witnesses or view new evidence related to the case.D.States typically have an intermediate appellate court between the trial court level and the state supreme court.0.5 points QUESTION 51. The bargained-for element of a contract isbestlegally construed asThe priceThe offerThe considerationThe intent0.5 points QUESTION 61. Which of the following is afalse statement?”Scienter” or the presence of bad intent or evil motive is a general requirement for liability under the Securities Act of 1934.A person who knowingly receives inside information as a result of an corporate insider’s breach of a fiduciary duty or duty of loyalty or confidentiality can be liable under Rule 10b-5 if the recipient trades on such information.A key feature to liability under U.S. SEC Rule 10b-5 is whether the undisclosed inside information is “material.”Private offerings of securities that are not generally solicited or advertised are nonetheless still usually subject to the registration requirements of the U.S. Securities Act of 1933.0.5 points QUESTION 71. Which of the following istrue?Offers may not be legally revoked before they are accepted under U.S. law since it would be unethical to do so.An express contract must be in a formal writing prepared by an attorney.Parties cannot form a contract without putting the terms in writing.An executed contract is one that has been fully performed by all the parties to the contract.0.5 points QUESTION 81. B bets C on the outcome of the SuperBowl. Gambling on sports events is illegal in their state. This wagering agreement isnot enforceable unless there is an admission as to its existencevoidable by the losing partyvalid if the bet was a fair one with proper “odds”void.0.5 points QUESTION 91. What third party cannot sue to enforce rights in the original contract?a.A third party creditor beneficiaryb.A third party done beneficiaryc.A third party incidental beneficiaryd.An assignee.0.5 points QUESTION 101. If a manufacturer produces a defective product sells it to a wholesaler who sells it to a retailer who sells it to a consumer who is injured which parties in the chain of distribution are potentially liable under strict liability?Only the manufacturer.Only the manufacturer and wholesaler.The manufacturer wholesaler and retailer.Only the party at fault.0.5 points QUESTION 111. A computer retailer sells some computer games to a minor. This contract is:Unenforceable.Voidable.Void.Enforceable.0.5 points QUESTION 121. What is a derivative lawsuit?An action brought by the board of directors on behalf of the corporation.An action brought by a majority of the board of directors against an individual board member.An action brought by a shareholder or shareholders on behalf of the corporation when the board of directors does not file the suit.An action brought by shareholders against the corporation.0.5 points QUESTION 131. Which of the following is a TRUE statement?A.For a court to refuse to enforce a covenant not to compete the covenant must be unreasonable in both time/duration and space/geography.B.Regarding covenants not to compete it is best for the employer to “err on the side of caution” and make the covenant as broad as possible for area and as long as possible for time.C.Covenants not to compete are illegal and void in most states since they may prevent people from working in their fields and in their home towns.D.As a general rule courts will find a time period of six months to be a reasonable one in a covenant not to compete in an employment contract.0.5 points QUESTION 141. Under the UCC if a purported acceptance to an offer contains additional terms:It is treated as a rejection and counteroffer.If both parties are merchants there is a contract and the additional terms may or may not become part of the contract.If neither party is a merchant there is no contract.It is treated as a counteroffer but it does not reject the original offer.0.5 points QUESTION 151. Common law pursuant to the Anglo-American legal system characteristically consists of:A.Laws that all nations have in common.B.Laws that affect everyone except wealthy people and politiciansC.Opinions that have been issued by judges when deciding previous casesD.Laws with which most people are familiar.0.5 points QUESTION 161. A contract in which one party makes an agreement with a second party to benefit a third party isA third party beneficiary contractFoolishIllegalAn assignment0.5 points QUESTION 171. Which of the following is/are TRUE about U.S. civil rights laws?a.An employer can defend a lawsuit pursuant to the Age Discrimination and Employment Act (ADEA) by interposing a BFOQ (bona fide occupational qualification) defense.b.The “disparate impact” theory of Title VII of the Civil Rights Act now applies to discrimination lawsuits based on the ADEA due to a Supreme Court decision.c.The Americans with Disabilities Act requires that an employer not only not discriminate against disabled people but also that the employer makes a “reasonable” accommodation to the needs of its disabled employees.d.All of the above.0.5 points QUESTION 181. Under the employment at-will doctrine as a general rule:Either party may terminate the employment relationship at any time and for any reason.Neither party may terminate the employment relationship at any time and for any reason.Only the employee may terminate the employment relationship at any time and for any reason.Only the employer may terminate the employment relationship at any time and for any reason.0.5 points QUESTION 191. Article 2 of the UCC covers which types of transactions:Sales of goods and sales of real property.Sales of goods and leases of goods or real property.Sales of goods and contracts for the providing of services.Sales of goods and leases of goods.0.5 points QUESTION 201. Which of the following is true about sexual harassment in the workplace?If a supervisor approaches someone and asks that person out for a social date if the supervisor acts in socially customary manner it generally will be sexual harassment.The standards for a hostile or offensive work environment are very vague and depend on all the facts and circumstances.Sexual harassment claims require that persons of both sexes be involved.Sexual harassment is covered under OSHA as part of workplace safety.0.5 points QUESTION 211. Which of the following islikely to be a breach of a corporate officer’s/director’s duty of care?Failing to anticipate a drop in the consumer demand of the company’s product.Failing to make a reasonable investigation of relevant facts.Failing to predict the startup of a new competitor.Failing to foresee a severe rise in the interest rate.0.5 points QUESTION 221. Which of the following is afalse statement?A.The law in the United States has been mainly influenced by the French Napoleonic Code.B.One major purpose of the law is to protect persons and their property from unwanted interference from others.C.Those precepts that must be obeyed and followed by citizens subject to sanctions or legal consequences can be thought of as law.D.Law serves both to maintain the status quo and to facilitate orderly change.0.5 points QUESTION 231. The Statute of Frauds requires that certain types of contracts:Be in writing in order to be valid.Be in writing in order to be enforceable.Contain a promise for an act.Have two or more attorneys present at the signing of a written contract.0.5 points QUESTION 241. Which of the following istrue regarding contract validity?A void contract is one where a party has the option to avoid her contractual liability.A voidable contract is one in which a party may avoid his or her obligation under that contract.A voidable contract is one that has no legal effect because one of the essential elements is missing.An executory contract is also unenforceable.0.5 points QUESTION 251. Which of the following is afalse statement? A limited liability company in the U.S. offers the limited liability of a corporation.A limited liability company must be formed in accordance with uniform federal law in the United States.In some states in the U.S. one-member limited liability companies are permissible.Unless otherwise agreed the members of a joint venture share profits and losses equally.0.5 points QUESTION 261. If a minor wishes to be bound to a contract after becoming an adult she must:Ratify the contract.Disaffirm the contract.Give back the goods or services received as a minor.Bring an action to verify the contract.0.5 points QUESTION 271. Which of the following is NOT a correct statement regarding arbitration?A.A key arbitration legal issue is whether a dispute should in fact be arbitrated.B.The U.S. Federal Arbitration Act holds that arbitration agreements are enforceable just like any other contracts.C.An arbitration award can be enforced by traditional judicial remedies for enforcing monetary judgments such as attachment and seizure of property and garnishment of wages.D.All arbitration awards are automatically appealable in the traditional court system because the law disfavors the arbitration of disputes.0.5 points QUESTION 281. The following are all very good ways for an entrepreneur to find an attorneyexcept:A.Using the specialty attorney or legal services listings in the Yellow Pages.B.Getting a recommendation from an attorney who is an adjunct professor at a local university or college.C.Seeking recommendations from other business people and entrepreneurs in the community.D.Getting referrals from your accountant financial advisor or real estate broker.0.5 points QUESTION 291. Which of the following is atrue statement?The Bill of Rights in the U.S. Constitution confers absolute rights on citizens of the U.S not subject to interpretation by the U.S. Supreme Court and not capable of being infringed on by government.Political speech that would otherwise be protected by the U.S. Constitution’s First Amendment loses that protection if its source is a corporation.The Federal Trade Commission is an example of an independent federal level regulatory agency in the United States.Administrative rules and regulations are not binding like the laws of the U.S. Congress since the heads of administrative agencies are not elected.0.5 points QUESTION 301. 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.0.5 points QUESTION 311. “Fundamental corporate change” consists of:a.Amending the articles of incorporationb.Merging with another corporationc.Dissolution and termination of the corporationd.All of the above.0.5 points QUESTION 321. Which of the following is afalse statement?Under the Rule of Reason U.S. courts will consider the purpose and consequences of an agreement between vertical businesses to restrain trade or commerce.Market power is the power that a firm possesses to materially affect the market price of a product – up or down – at will.Price discrimination is not necessarily a violation of U.S. antitrust law.A firm that possesses a significant degree of market power is automatically violating monopolization antitrust laws in the United States.0.5 points QUESTION 331. If a corporation is properly incorporated in one state and wants to do business in a second state the corporation:Must incorporate in the second state.Must do nothing because being incorporated in one state entitles the corporation to do business in all states.Register with the Interstate Commerce Commission.May be required to obtain a certificate of authority from the second state.0.5 points QUESTION 341. Which of the following contracts must be in writing to satisfy the Statute of Frauds?a.An employment contract for a five year term.b.A contract to sell two acres of undeveloped rural land.c.A contract for the purchase of a large flat-screen TV for a price of $2500.d.All of the above.0.5 points QUESTION 351. Unless specifically agreed upon by the partners which of the following rights do partnersnot have?Participation in management.Sharing in partnership profits.Salaries or other compensations.The return of capital.0.5 points QUESTION 361. Under atypical state corporation merger statute:mergers ordinarily require the approval of two-thirds of the shareholders of both corporations.so-called “short mergers” of a 90% owned subsidiary into the parent corporation are permitted without shareholder approval or dissenters’ right of appraisal.the shareholders of the disappearing corporation are not entitled to vote if the shares to be issued to them constitute less than 20% of the outstanding shares of the surviving corporation.Dissenting shareholders are entitled to appraisal rights.0.5 points QUESTION 371. Which of the following innot true?A minor can still disaffirm a contract for a reasonable time after reaching majority.An adult cannot disaffirm a contract made with a minor.A minor must pay the agreed price on contract for necessaries.What constitutes a necessary varies over time and can differ from state to state.0.5 points QUESTION 381. Which of the following statements isfalse?Only the government may enforce antitrust law.Private parties including injured consumers may enforce the antitrust laws.The antitrust laws provide for both criminal and civil sanctions.Successful anti-trust plaintiffs can recover three times their actual damages.0.5 points QUESTION 391. Under law a tort can bebest described as:Any violation of an ethical duty.Another term for a crime or misdemeanor.Any action done in violation of a prior agreement which allows the victim to recover damages.A civil wrong which allows the person injured or harmed to recover damages.0.5 points QUESTION 401. The intentional tort of false imprisonment isbest defined as:A.Being held in jail waiting for an arraignment.B.The intentional confinement or restraint of another without authority or justification and without that person’s consent.C.The holding in prison of a person convicted of a crime who is appealing the conviction.D.A confinement that is caused by accidentally confining another person without that person’s consent.
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