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
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.

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

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.

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 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 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.

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

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
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 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:

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
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
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