Business Practice Exam 1

A municipality zoning ordinance attempts to regulate the placement of satellite dish antennas in residential areas by specifying the size and location requirements. The Supreme Court rules that the zoning ordinance is unconstitutional as it violates the Federal Communications Commission Regulation law. In this case, the ruling of the Supreme Court illustrates the concept of ________. A) preemption B) the contract clause C) the exclusion clause D) minimum rationality E) defamation

A

According to the Age Discrimination in Employment Act, who among the following are subject to mandatory retirement policies? A) high-level policy makers aged 65 and older who are entitled to receive annual retirement benefits of at least $44,000 a year B) bona fide executives aged 60 and older who are entitled to receive annual retirement benefits of at least $34,000 a year C) high-level policy makers aged 50 and older who are entitled to receive annual retirement benefits of at least $50,000 a year D) any employee aged 60 and older who is entitled to receive annual retirement benefits of at least $60,000 a year E) bona fide executives aged 50 and older who are entitled to receive annual retirement benefits of at least $34,000 a year

A

In the pretrial phase of litigation, the argument used by a defendant to dismiss a suit on the basis of expiration of the time limit during which the defendant is subject to suit is usually referred to as ________. A) statute of limitations B) res judicata C) voir dire D) request for peremptory challenge E) summary judgment

A

Susan has been sued in federal court by her former employer, Terry, who is a lawyer. Susan hires an attorney who reviews the complaint and determines that it lacks any legitimate claims. Susan's attorney determines that Terry is just trying to bully Susan and that the lawsuit is frivolous. In this case, Terry is most likely to ________. A) be sanctioned under Rule 11 of the Federal Rules of Civil Procedure B) be sanctioned for violating the professional rules of ethics for attorneys C) be arrested for violating the statute of limitations D) be sanctioned if res judicata does not apply E) be disciplined under the Uniform Commercial Code

A

The Americans with Disabilities Act does not require employers to A) hire the unqualified disabled. B) hire the qualified disabled. C) make reasonable accommodations for their employees. D) make reasonable accommodations for customers. E) purchase equipment for use by disabled employees.

A

The ________ in prior cases were necessary to reach the decisions in those cases. A) holdings B) statutes C) ordinances D) dicta E) citations

A

The usual rule in the scope of discovery is that the information sought in discovery is discoverable and an objection is overruled as long as the information ________. A) will lead to evidence admissible during a trial B) will be indicative of guilt or innocence of a party in a trial C) is a clear and convincing evidence of negligence D) will be important enough to both of the disputing parties during a trial E) is protected by lawyer-client confidentiality

A

Which of the following are essential to locate prior precedents? A) Citations B) Codes C) Torts D) Remediations E) Dicta

A

Which of the following holds true for the Fair Labor Standards Act? A) It forbids discharge for exercising rights guaranteed by minimum wage and overtime provisions of the act. B) It prohibits discharge of employees due to garnishment of wages for any one indebtedness. C) It forbids discharge of employees for service on federal grand or petit juries. D) It prohibits discharge to prevent employees from getting vested pension rights. E) It forbids age-based discharge of employees over age 40.

A

Which of the following statements is true of tort law? A) It establishes rules for compensation when an owner's legal boundaries are wrongfully crossed by another. B) It specifies various offenses against the proper order of the state. C) It covers the legal principles that apply to government agencies, bureaus, boards, or commissions. D) It involves the recognition of exclusive right in both tangible and intangible resources such as copyrights, patents, trademarks, etc. E) It covers the rules of how owners transfer resources by exchanging them.

A

______ is the process of adjusting a job or work environment to fit the needs of disabled employees. A) Reasonable accommodation B) Quid pro quo C) Redlining D) Qualified accommodation E) Mandatory extradition

A

Aaron enters Stevenson's Supermarket and takes a loaf of bread from the shelf. He walks out of the store without paying for it. Which of the following is true of this situation? A) Aaron is guilty of burglary. B) Aaron is guilty of larceny. C) Aaron is guilty of embezzlement. D) Aaron is guilty of theft by deception. E) Aaron is guilty of robbery.

B

For a plaintiff to establish that he or she has standing to sue, the plaintiff must allege ________. A) a lack of subject matter jurisdiction of the court B) a personal stake in the resolution of the controversy C) at least $100,000 in damages as a result of the controversy D) garnishment by the state in which the lawsuit is filed E) extradition by the police of the state in which he or she resides

B

If a state case does not involve a federal question, ________. A) it falls under the diversity of citizenship jurisdiction B) the decision of the highest state court is not subject to review by the Supreme Court C) the decision of a state trial court is final and not subject to review D) it has to be handled by a small-claims court E) the judgment delivered can qualify for a petition for a second review by the Supreme Court

B

In a disparate impact case, an alleged employer can defeat a plaintiff's claim by proving ________. A) the bona fide occupational qualification defense B) the business necessity defense C) contributory negligence D) the assumption-of-risk defense E) comparative fault

B

In the context of state courts, which of the following statements is true of reviewing courts? A) They only render decisions that are consistent with the philosophy of judicial restraint. B) They are essentially concerned with questions of law. C) There has to be at least nine judges in a reviewing court. D) They usually handle diversity of citizenship cases. E) They only handle cases that cannot qualify for a writ of certiorari.

B

Limits are placed on a state's regulatory powers regarding business by which section of the U.S. Constitution? A) Establishment clause B) Commerce clause C) Bill of Rights D) Contract clause E) Second Amendment

B

The ________ to the U.S. Constitution reinforces federalism by reserving some powers to the states and to the people. A) First Amendment B) Tenth Amendment C) Twelfth Amendment D) Fifth Amendment E) Fourteenth Amendment

B

Valencia secures a good grade with a 4.0 GPA in her admission test. However, she is denied admission by a community college. She files a suit stating that she was discriminated on the basis of race. She claims that she was rejected because the college used race as an important factor, giving applicants belonging to minority groups a greater chance for admission than students with similar credentials belonging to disfavored racial groups. In deciding this case using the equal protection clause, which of the following approaches is most likely to be used by courts? A) the minimum rationality approach B) the strict scrutiny approach C) the maximum rationality approach D) the intermediate scrutiny approach E) the quasi-scrutiny approach

B

Which of the following holds true for the Internal Revenue Service (IRS) Whistleblowers Rewards Program? A) To be eligible to recover compensation from the IRS, a person must bring information to the Department of Justice. B) The whistleblower may receive compensation only from monies actually collected based on the information provided. C) The total collected proceeds based on which the reward is calculated exclude penalties, interest, additions to tax, and additional amounts. D) The reward to the whistleblower is independent of his contribution to the prosecution of the action. E) Under no circumstances does the IRS have the right to lower the amount of the reward given to the whistleblower.

B

Which of the following statements is true of civil cases? A) They typically involve a representative of government attempting to prove the wrong committed against society and seeking to have the wrongdoer punished by the court system. B) They typically involve a request for damages or other appropriate relief that does not involve punishment of the wrongdoer. C) They typically include matters that involve the regulation of society as opposed to individuals interacting. D) They typically include matters that involve the interpretation and application of either the federal or state constitutions. E) They typically include legal principles that apply to government agencies, bureaus, boards, or commissions.

B

Which of the following statements is true of the executive branch of a government? A) It has no control over the administrative process of an agency. B) It normally appoints the top officials of an agency with the advice and consent of the legislative branch. C) It is denied veto power over the statues of the legislatures. D) It is excluded from making any budget recommendations to the legislative branch. E) It enacts and creates specific legislations adopted by administrative agencies.

B

A defendant may enter a nolo contendere plea for which of the following reasons? A) It allows sentencing as if the defendant pleaded not guilty. B) Because it is a plea of absolute contest. C) To give the defendant the advantage of avoiding the cost of trial. D) To allow the defendant to simultaneously defend a civil and a criminal suit. E) So the defendant may be excused from a jail sentence.

C

Administrative law judges are A) excluded from hearing cases of alleged law violations. B) intermediaries between regulators and those being regulated. C) employed by the agency that is in charge of hearing the initial presentations. D) organizationally integrated with the rest of the agency. E) responsible for the minutes of agency meetings and are legal custodians of its records.

C

Albert falsely reports his income obtained from betting on racehorses as income obtained from his job at Good Life Supermarket. Albert is guilty of ________. A) larceny B) embezzlement C) money laundering D) burglary E) robbery

C

As a CA employer, how often do you need to provide Sexual Harassment Prevention training to your employees? A) Every six months. B) Every year. C) Every 2 years. D) Every 3 years.

C

Bill, the owner of FG Kraftco Corp., asks his employee, Linda, for sexual favors in exchange for a raise in her salary. When Linda refuses to entertain his request, Bill reduces her salary. Linda files a charge against Bill with the Equal Employment Opportunity Commission. This case is a ________. A) disparate impact case B) hostile work environment case C) quid pro quo case D) res judicata case E) retaliation case

C

For purposes of diversity jurisdiction, a corporation is a citizen of the state of incorporation and also a citizen of: A) the state where its Chief Executive Officer lives. B) any state where its stakeholders live. C) the state in which it has its principal place of business. D) the state where most of its employees live. E) any state that the corporation declares as being its hometown.

C

In civil cases, the ________ standard is achieved when there is greater weight of evidence in support of a proposition than there is against it. A) clear and convincing proof B) beyond a shadow of a doubt C) preponderance of evidence D) beyond a reasonable doubt E) beyond all doubt

C

The ________ power of administrative agencies is primarily to decide on controversies. A) arbitrary B) executive C) quasi-judicial D) quasi-legislative E) preliminary

C

The right of an individual to take another person's resources because that person has failed to meet the requirements of the law is known as a ________. A) precedent B) citation C) remedy D) dicta E) holding

C

The time allowed for one party to sue another and the rules of law governing the process of a lawsuit are examples of ________. A) international laws B) property laws C) procedural laws D) tort laws E) substantive laws

C

Which of the following statements is true of organization of agencies? A) Administrative agencies or boards usually consist of 35 or 40 members to ensure transparency in their functioning. B) Appointees at the federal level are permitted to engage in any other business or employment during their terms. C) The president may remove appointees for neglect of duty and inefficiency. D) A simple majority of the members forming the body should belong to a different political party. E) A secretary is vested with a power to remove an appointee for malfeasance in office.

C

Which of the following wrongful acts arising in the employment context is NOT typically covered by EPLI? A) wrongful termination B) discrimination C) wage and hour misclassification D) sexual harassment E) retaliation

C

Angela is an artist who puts together an exhibit of modern art paintings depicting the Holy Mary and Jesus. The exhibit causes a stir for its controversial and obscene depictions of the religious icons. The mayor of the city in which the exhibit is held attempts to ban Angela's exhibit from continuing. If Angela were to fight the mayor's action in court, which of the following analysis would the court most likely use? A) Angela's exhibit is unprotected speech regardless of any other factors. B) Angela's exhibit is fully protected speech regardless of any other factors. C) Angela's exhibit is unprotected speech only if the Catholic Church is offended by it. D) Angela's exhibit is unprotected speech if it is actually obscene, meaning if the average person applying contemporary community standards would find that her exhibit has no artistic value, otherwise it is protected speech. E) The mayor has the authority to ban Angela's exhibit regardless of any constitutional protections.

D

Ann filed a lawsuit against Larry in the U.S. District Court in California. She was not represented by an attorney. She claimed that Larry failed to perform on an agreement that she had with him. Ann paid Larry $80,000.00 to remodel her home in Los Angeles. Larry, a resident of San Diego, took the money, but never showed up to paint her home. Ann's case is dismissed by the federal court. Which of the following is an accurate statement as to why Ann's case was dismissed? A) Ann was required to have an attorney represent her in order to file a case in federal court. B) Ann should have filed her case in the U.S. District Court in Arizona. C) The amount in controversy does not exceed the jurisdictional limit for federal court. D) Ann's issue is not a federal question, and she and Larry are both from California. E) Ann needed a writ of certiorari to have her case heard by the federal court.

D

As a CA employer, in terms of record retention, what three types of records do I need to pay special attention to? A) Pension and welfare plan information: keep for six years. B) First-aid records of job injuries causing loss of work: keep for five years. C) Safety and toxin/chemical exposure records, including safety data sheets: keep for 30 years. D) All of the above.

D

Lily has been working at Fasching and Co. for six years. Her pension plan will vest at her seven-year work anniversary. She has had great performance evaluations and has received regular raises and promotions. The Chief Financial Officer (CFO) has determined that cost cutting is needed to keep the company profitable. He recommends that Lily be fired before her pension vests and becomes a permanent liability against the corporation. According to the ________ the company cannot fire her to prevent her from getting vested pension rights. A) Consolidated Omnibus Budget Reconciliation Act (COBRA) B) Health Insurance Portability and Accountability Act (HIPAA) C) Immigration Reform and Control Act (IRCA) D) Employee Retirement Income Security Act (ERISA) E) Fair Labor Standards Act (FLSA)

D

Matt, a supervisor, refuses to let female employees work on overtime assignments because he thinks it is unsafe for women to work after 6 p.m. The female employees decide to file a charge against Matt with the Equal Employment Opportunity Commission. This case is an example of ________. A) reverse discrimination B) a business necessity C) retaliation D) disparate impact E) disparate treatment

D

The ideas and philosophies that explain the origin of law and its justification are called ________. A) the rule of law B) torts C) stare decisis D) jurisprudence E) statutes

D

A zoning ordinance holds that writing anything on both public and private properties, including one's own private property, is a crime. This law is most likely to be unconstitutional based on the ________. A) overreaching doctrine B) overstretching doctrine C) overextension doctrine D) doctrine of nullification E) overbreadth doctrine

E

According to the Fifth Amendment, the following statement is true. A) An accused can be forced to testify against him or herself. B) Individuals who are under compulsory self-incrimination are excluded from protection. C) All businesses are protected against compulsory self-incrimination. D) The accused cannot be compelled to produce real or physical evidence. E) The accused can stand trial in state and in federal court if the illegal activity violates both federal and state laws.

E

Collections of legislation, often on the same subject, passed by the Congress are called ________. A) opinions B) precedents C) ordinances D) citations E) codes

E

Delltrix Corp., a customer support provider, needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected because of their poor English language proficiency. The applicants file a disparate impact case with the Equal Employment Opportunity Commission against Delltrix on the grounds of discrimination based on nationality. Which of the following defenses is Delltrix most likely to use in this case? A) the defense of undue hardship B) the contributory negligence defense C) the comparative negligence defense D) the assumption-of-risk defense E) the business necessity defense

E

Secrecy of the grand jury system protects A) the members of the jury from retribution by the accused. B) the number of accused in a case from increasing based on grand jury testimony. C) a reiteration of the facts before the petit jury. D) the socioeconomic status of the criminals in a case. E) an innocent accused from disclosure of the accusations made against him or her.

E

Under the Fair Labor Standards Act (FLSA), the overtime pay for workers is A) a rate that is lower than the minimum wage. B) decided by the employer after mutual consent and agreement with the workers. C) a rate that is equal to the employer's regular rate of revenues. D) variable depending upon the particular job involved. E) a rate not less than one and one-half times the employee's regular rate of pay.

E

Which of the following is a legal way to test for critical job requirements? A) Personality testing B) Reference checks C) Skills tests D) Reference checks and skills tests, but NOT personality testing E) Each of personality testing, reference checks, and skills tests

E

Which of the following is true about an advisory council? A) It is more important than other agency members because of visibility and the power to appoint staff. B) It coordinates the activities of an agency with others involved in the regulatory process. C) It makes the decision to file suit or pursue other remedies. D) It supervises usual administrative functions such as accounting, budgeting, and personnel. E) It provides for interaction between regulators and those being regulated.

E

Which of the following statements is true of an employer in case an employee is on family medical leave? A) The employer is entitled to review the actual medical records of the employee. B) The employer can rescind the employee's job contract when the employee returns to work. C) The employer should refrain from awarding bonus to employees for perfect attendance who were granted leaves under the Family and Medical Leave Act (FMLA). D) The employer should ensure that the employee is supposed to be disadvantaged by the fact that the leave was taken. E) The employer may request a medical certification that a qualifying event has occurred in the employee's life.

E

Which of the following statements is true of the doctrine of exhaustion of remedies? A) It applies when a claim is originally filed in the courts. B) It comes into play whenever enforcement of a claim requires the resolution of issues that were placed within the special competence of an administrative body. C) It is an absolute principle, and courts usually deny parties the right to litigate prior to exhausting administrating remedies. D) It increases the premature interruption of the administrative process. E) It allows an agency to discover and correct its own errors, and thus it helps to dispense with any reason for judicial review.

E

Which of the following statements is true of the federal district courts? A) They are the appellate courts of the federal judicial system. B) There are only 12 such courts in the United States. C) These courts do not have the authority to impanel juries. D) They lack subject matter jurisdiction over diversity of citizenship cases. E) They cannot retry judicial errors charged against a state court.

E

Which of the following would be governed by the rules of property law? A) An individual's right to wear religious clothing to the workplace B) An incident in which a driver negligently operates a vehicle and harms a pedestrian C) The negotiation of a merger of two companies D) The issuing of a fine for violating a city ordinance E) The patent of an invention

E

With reference to the hierarchy of sources of law, case law prevails over local ordinances. TRUE or FALSE

FALSE

Clear identification of employer expectations and policies helps provide a defense against employee lawsuits if subsequent discipline or discharge of the employee becomes necessary. TRUE or FALSE

TRUE

Employment-at-will relationships are essentially employer-employee agreements that may be terminated at any time without cause. TRUE or FALSE

TRUE