Ethics Question

Question 1
1. 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 2
1. Which of the following can be deemed to be a product defect pursuant to strict liability tort law?

a. The lack of a warning or the lack of an adequate warning on a product.

b. A flawed product, that is, one that does not meet the manufacturer’s own standards for that product.

c. A product that does not incorporate state-of-the-art safety modifications which are feasible economically and practically to do.

d. All of the above.
0.5 points
Question 3
1. Which of the following is a true statement?

An invitation to negotiate usually will be construed as constituting an offer to enter into a contract.

Under the common law, an offer ordinarily does not need to be communicated to the offeree to be effective.

An agreement under the common law of contracts usually consists of an offer and an acceptance.

In most states in the U.S., the revocation of a contract is not legally effective until it is actually received by the offeree.
0.5 points
Question 4
1. Which of the following is a true statement?

A. The judicial branch has the authority to examine acts of the legislative branch but not the executive.

B. The legislative branch of the U.S. government cannot change laws that have been interpreted by Congress.

C. The preemption doctrine holds that the U.S. Congress can override Supreme Court decisions by a 3/4s vote.

D. The Supremacy Clause of the U.S. Constitution means that the Constitution and all laws passed pursuant to the Constitution are the supreme law of the land.
Question 5
1. Pursuant to the typical court procedure in a civil case lawsuit, the “pleadings” typically consist of:

a. The complaint and the answer

b. A plea to a judge for leniency at sentencing time

c. Giving depositions

d. Answering interrogatories
0.5 points
Question 6
1. 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.
0.5 points
Question 7
1. France has a civil law legal system. Civil law systems are principally based on

administrative rules and regulations.

case law.

detailed codified law.

executive pronouncements.
0.5 points
Question 8
1. The transfer of rights under a contract to a third party is called:

An assignment.

An adjudication.

A resolution.

A delegation to an obligee.
0.5 points
Question 9
1. What is true about a partner’s right to participate in the management of the partnership?

It exists only if the partner has been elected as an officer or management committee member.

It exists only if the partnership agreement gives the partner this right.

It exists automatically, but can be eliminated in the partnership agreement.

It exists automatically and cannot be eliminated in the partnership agreement.
0.5 points
Question 10
1. Standard Office Products orders one hundred computers from National Suppliers. Unless the parties agree otherwise, National’s obligation to Standard is to

deliver the computers to a common carrier.

deliver the computers to Standard’s place of business.

hold conforming goods and give notice for Standard to take delivery.

set aside conforming goods for Standard’s inspection before delivery.
0.5 points
Question 11
1. Which of the following is a false statement?

A. An agent has no duty to disclose her agency status to third parties with whom the agent deals.

B. An agent who enters into a contract with another party on behalf of the principal impliedly warrants that he has the authority to do so.

C. A principal may be liable for the tort of fraud committed by the agent if the agent makes misrepresentations to a third party in the course of negotiating a contract for the principal.

D. The basic rule for whether an employer is liable for the tort of negligence committed by his or her employee is whether the employer knew of the employee’s commission of the tort.
0.5 points
Question 12
1. To be convicted of a crime under U.S. laws, the prosecution typically must prove the case against the defendant:

a. By a preponderance of the evidence.

b. By clear and convincing evidence.

c. Beyond a reasonable doubt.

d. None of the above.
0.5 points
Question 13
1. Ellen assigns to Fred her rights under a contract with Gil. Ellen’s rights under the contract

are extinguished and set up in Fred.

continue until the contract is fully executed.

continue until Gil performs his obligations under the contract.

continue until Fred receives Gil’s performance.
0.5 points
Question 14
1. In order for a contract to be valid, it must

Be made by a writing signed by adults.

Be fully performed on both sides.

Contain an offer, acceptance, and consideration.

Be properly filed.
0.5 points
Question 15
1. Which of the following is a true 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 16
1. Which of the following is not an equitable remedy?

Specific Performance.

Money damages.

Reformation.

Injunction.
0.5 points
Question 17
1. The graphics used in “Grave Raiders,” a computer game, are best protected by

copyright law.

patent law.

trademark law.

trade secrets law.
0.5 points
Question 18
1. Which of the following is a true statement?

A U.S. company doing business abroad will not have to comply with the Occupational Safety and Health Act regulations on worker safety for its overseas manufacturing facilities.

A union shop is a firm that that requires union membership as a prior condition of employment.

Under federal labor law in the U.S., employers can monitor and read their employees’ personal communications without their consent.

An employer in the U.S. may hire an illegal immigrant if the employer pays a special tax to the Treasury Department.
0.5 points
Question 19
1. Which of the following is a true statement?

A. Death of an agent or the principal terminates an agency only after notification of death is received by the living party.

B. An agency coupled with an interest usually terminates on the death of the principal.

C. An agency coupled with an interest is usually revocable by the principal.

D. Revocation of authority is done by the principal whereas renunciation of the authority is done by the agent.
0.5 points
Question 20
1. An example of lack of a contractual capacity issue arises when a contract is made by a

A minor

A drunk

A person on drugs

All of the above
0.5 points
Question 21
1. Persons who engage in abnormally or ultrahazardous dangerous activities:

Are liable only if all the elements of negligence are proven against them.

Are liable only if they intended to cause a particular injury.

Are generally not liable for the injuries they cause because otherwise no one would undertake these activities.

Are liable to persons they injure even if they are not at fault.
0.5 points
Question 22
1. Which of the following is a false statement?

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.

Both men and women can sue for sexual harassment in the United States.

Whistleblowing by employees in the private sector can now be a legally protected activity pursuant to some states’ laws in the United States.

A deceptive advertisement is one that is either false or misleading pursuant to the U.S. Federal Trade Commission’s legal standards.
0.5 points
Question 23
1. Which of the following is a true statement?

Building contractors and subcontractors are usually not independent contractors.

An agency relationship can be formed only in a witnessed and signed writing since it is a high-level business relationship.

There generally does not need to be a written agreement between the principal and agent in order to create an agency relationship.

An agent does not owe to his or her principal a duty to act in good faith.
0.5 points
Question 24
1. Central Data Corporation and Digital, Inc., are competitors. They form a joint venture to research, de¬velop, and produce new software for a particular line of computers. This joint venture is

aper se violation of the Sherman Act

exempt from the antitrust laws.

subject to continuing review by the appropriate federal agency.

subject to the Rule of Reason.
0.5 points
Question 25
1. Which of the following is a true statement?

A. The “police power” of a state does not give the state any general authority to regulate business.

B. Garbage that is transported across state lines can be considered to be interstate commerce regardless of economic value.

C. The Commerce Clause of the Constitution gives Congress the power to regulate commerce with foreign nations and Indian tribes only.

D. Congress can only regulate activities that are actually interstate commerce but not activities that affect interstate commerce.
0.5 points
Question 26
1. Which of the following is a TRUE statement?

A. A general warning by a manufacturer that a product could fail under certain conditions is sufficient to avoid liability for flawed or defectively designed products.

B. An example of a risk that a manufacturer always must warn of is that a knife is sharp and could cut someone’s hand when cutting or chopping.

C. As a general rule, a manufacturer is not obligated to warn of dangers that result from the misuse or abnormal use of its product.

D. Market share liability means that if a consumer cannot identify which manufacturer produced the defective product which caused the consumer harm the consumer cannot recover any damages.
0.5 points
Question 27
1. Which of the following is a false statement?

A principal owes to his or her agent a duty to act in good faith.

If an agent’s contract with a third party is required to be in writing, then the agent’s authority from the principal to enter into that contract generally must be in writing.

An agent’s authority to act on behalf of a principal derives exclusively from the agent’s express actual authority.

A principal may confer authority on an agent by manifesting words or conduct to a third party..
0.5 points
Question 28
1. The International Trade Administration (ITA) of the U.S. Department of Commerce regulates import competition by:

a. Promotion of trade and investment

b. Strengthening industry competitiveness

c. Ensuring fair trade

d. All of the above.
0.5 points
Question 29
1. Which of the following is a false statement?

To exercise the power of acceptance, the common law requires an offeree to accept the offeror’s offer unconditionally and unequivocally.

The death of a party to a contract will always result in the automatic termination of that contract since it would not be right to burden the surviving spouse or other heirs with business matters.

The common law “mirror image” rule generally requires an acceptance of an offer to adhere exactly to the terms of the offer.

A counteroffer under the common law does terminate an offer.
0.5 points
Question 30
1. Which of the following is FALSE about U.S. securities laws?

a. The definition of a “security” is broadly construed by the courts.

b. Insider trading by an insider and by a tipee in conspiracy with an insider is illegal.

c. Trading on inside information by the “lucky” or the “smart” is always illegal since it is not fair to the other party who does not have the inside information.

d. Silence, that is, the failure to disclose material facts regarding the purchase or sale of a security is illegal.
0.5 points
Question 31
1. A decree of rescission is

an action to cancel a contract and return the parties to the positions they held before the contract’s for¬mation.

an award of damages.

an order to do or refrain from doing a particular act.

an order to perform what was promised.
0.5 points
Question 32
1. Which type of mistake usually will make a contract voidable at the option of the mistaken party?

a. A bilateral or mutual mistake

b. A unilateral mistake

c. A unilateral palpable mistake

d. Both a. and c.
0.5 points
Question 33
1. Which of the following statements is false?

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 34
1. Which of the following is/are true about the principal agency relationship?

a. In a non-disclosed principal situation, the agent is typically initially liable to the third party.

b. Under the ratification doctrine, a principal can ratify and thus authorize an agent’s contract with a third party that was not originally authorized by the principal.

c. Under the imputed knowledge and notice doctrine, a principal can be charged with the knowledge of facts that had been disclosed to the principal’s agent.

d. All of the above.
0.5 points
Question 35
1. Digital Company plans to consolidate with Software Corporation to form DS, Inc. This requires the approval of

neither their boards of directors nor their shareholders.

their boards and their shareholders.

their boards only.

their shareholders only.
0.5 points
Question 36
1. A contract that one party may avoid without being in breach is

Void

Valid

Voidable

Executory
0.5 points
Question 37
1. 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.
0.5 points
Question 38
1. An example of valid consideration is

Past gifts

Moral obligations

The performance of duties one is already obligated to perform

None of the above
0.5 points
Question 39
1. What as a general rule makes a covenant-not-to-compete legal in an employment contract?

a. The covenant must be reasonable as to time/duration.

b. The covenant must be reasonable as to place/territory.

c. The employer must be able to demonstrate that the covenant was necessary to protect a legitimate business interest of the employer.

d. All of the above.

0.5 points
Question 40
1. In an antitrust case where a plaintiff is challenging a proposed merger involving the defendant, which is true about the likely arguments the parties will make regarding the relevant market?

Both parties will likely argue for a narrowly defined relevant market.

The plaintiff will argue for a narrowly defined relevant market and the defendant will argue for a broadly defined relevant market.

The plaintiff will argue for a broadly defined relevant market and the defendant will argue for a narrowly defined relevant market.

Both parties will argue for a broadly defined relevant market

WE ACCEPT