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EXAM 1

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1. An administrative agency is a governmental body charged with administering and implementing legislation. a. True b. False

1. Causing someone's character to be questioned is a wrong against the person and is the tort of defamation. a. True b. False

1. Crimes and criminal punishment guidelines are specified in detailed criminal codes and statutes. a. True b. False

1. In a federal system, a central government is given power to act nationally, while states administer to local concerns. a. True b. False

1. The government can regulate not just businesses, but also business competition and prices. a. True b. False

1. Trade dress can be any word, name, symbol, device, or combination of these used to identify a product. a. True b. False

1. Ethics is a philosophical concept that deals with values related to the nature of human conduct. a. True b. False

1. The authority of a court to decide certain types of cases is called jurisdiction. a. True b. False

1. The pattern of rules that society establishes to control the conduct of individuals in their relationships is called law. a. True b. False

10. Because a corporation is not a human being, it cannot be convicted of a crime. a. True b. False

10. Boycotts are always illegal, even when done with good intentions. a. True b. False

10. Cybersquatters are individuals who register and set up domain names on the Internet that are identical or confusingly similar to existing trademarks in the hopes they can sell the name to the trademark owner. a. True b. False

10. The Electronic Freedom of Information Act Amendments of 1996 extend the public availability of information to electronically stored data. a. True b. False

10. The tort of false imprisonment requires the permanent detention of a person without their consent. a. True b. False

10. When there is a direct conflict between a federal and a state law, federal law prevails under the supremacy clause. a. True b. False

10. State supreme courts generally hear all cases appealed to them. a. True b. False

10. The U.S. Constitution provides that we have a right to be free from unreasonable intrusions by others. a. True b. False

10. There is often a conflict between the goal of making money for shareholders and the goal of solving social problems through business. a. True b. False

11. "Preemption" means that the federal regulatory scheme is controlling. a. True b. False

11. The authority of an agency is limited to the technology in existence at the time the agency was created. a. True b. False

11. The shopkeeper's privilege gives store managers the absolute right to detain anyone they believe has shoplifted. a. True b. False

11. Under the Sherman Act competitors are permitted to agree not to deal with certain buyers. a. True b. False

11. A copyright prevents the copying of an idea. a. True b. False

11. Executives can be convicted on the basis of "honest services" fraud that something went wrong at their company. a. True b. False

11. In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business. a. True b. False

11. The defendant in a civil case is the party who is suing. a. True b. False

11. The private life of an ordinary citizen is subject to strict scrutiny. a. True b. False

12. A copyright is the exclusive right given by federal statutes to the creator of a literary or an artistic work to use, reproduce, and display the work. a. True b. False

12. A divestiture order is a decree ordering a defendant to dispose of excessive ownership or control of interests in competing enterprises. a. True b. False

12. In a "bedrock view" the Constitution is merely a statement of goals and objectives, intended to grow and change with time. a. True b. False

12. Some types of instruments of crime are automatically forfeited. a. True b. False

12. The tort of intentional infliction of emotional distress requires proof of outrageous conduct and resulting emotional distress in the victim. a. True b. False

12. Under the Sunshine Act of 1976, called the open meeting law, the federal government requires most meetings of major administrative agencies to be open to the public. a. True b. False

12. The U.S. Supreme Court has held that the right of privacy does not apply to intrusions into our privacy by means of new technology. a. True b. False

12. To initiate a lawsuit, both parties must appear in person and state their claims and defenses in court. a. True b. False

12. Trust is a fundamental basis of the capitalist system that is central to the expectations of investors, customers, and other firm stakeholders. a. True b. False

13. Criminal penalties for corporations are based on a percentage of sales. a. True b. False

13. It is a conflict of interest for administrative agencies to allow members of the industry that is to be regulated, to participate in rule-making deliberations. a. True b. False

13. Market power under the Sherman Act is defined by both geographic and product markets. a. True b. False

13. The Due Process clause now guarantees protection against loss of property rights without a chance to be heard. a. True b. False

13. The Sony Bono Copyright Extension Act of 1998 extended copyright protection to the life of the author plus 50 years. a. True b. False

13. The tort of invasion of privacy requires the reasonable intrusion into one's private affairs. a. True b. False

13. Although laws are enacted at different levels of government to provide the framework for business and personal rights and duties, the framework for this legal system is constitutional law. a. True b. False

13. If questions of fact are involved, a judge will usually decide the case based on the pleadings alone. a. True b. False

13. There is no evidence that commitment to ethical values is linked with financial performance of business organizations. a. True b. False

14. A federal agency planning to adopt a new regulation must give public notice of such intent and then hold a hearing at which members of the public may express their views and make suggestions. a. True b. False

14. Commercial exploitation, also called right of publicity, is a form of invasion of privacy. a. True b. False

14. Copyright of a "work made for hire" runs for the life of the creator of the work plus 50 years. a. True b. False

14. Corporate Integrity Agreements are the equivalent of putting a corporation on probation. a. True b. False

14. The Clayton Act prohibits price discrimination between different buyers of like commodities when the effect may be to substantially lessen competition. a. True b. False

14. Under the "bedrock view" of Constitutional interpretation, the purpose of a constitution is to state certain fundamental principles for all time. a. True b. False

14. A constitution is a body of principles that establishes the structure of a government and the relationship of that government to the people who are governed. a. True b. False

14. Documents filed by both parties at the beginning of a lawsuit are called the pleadings. a. True b. False

14. Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation. a. True b. False

15. Corporate managers found guilty of masterminding any criminal activity must be sentenced to prison time. a. True b. False

15. For the past century, the United States Supreme Court has generally followed the "living document" view in interpreting the Constitution. a. True b. False

15. Offensive language used by one person to describe another constitutes the tort of slander. a. True b. False

15. Regulations properly adopted by agencies are important, but they do not have the full force of law, as do statutes. a. True b. False

15. The Berne Convention requires all works published after March 1, 1989 to contain a notice of copyright. a. True b. False

15. Under the Robinson-Patman Act, wholesalers may give new distributors free advertising and other services to help them compete with other distributors who have been doing business for a number of years and have become firmly established. a. True b. False

15. An accumulation of complaints from employees, customers, or investors can lead to imposition of restrictive new regulations and laws. a. True b. False

15. Depositions are usually taken in the courtroom for purposes of discovery. a. True b. False

15. One advantage of our current legal system is that the growth of technology has not created many new laws. a. True b. False

16. A state may prohibit a seller from selling below cost if the purpose is to harm competitors. a. True b. False

16. In order for a work to be copyrightable, it must possess a significant amount of creativity. a. True b. False

16. The Federal Register lists all administrative regulations, presidential proclamations, and executive orders on a semiannual basis. a. True b. False

16. The greatest changes to the Constitution have been made by United States Supreme Court decisions. a. True b. False

16. U.S. Senator Jones enjoys an absolute privilege when she is speaking on the floor of the Senate. a. True b. False

16. A peremptory challenge to a prospective juror generally can be exercised without giving a reason. a. True b. False

16. One of the modern trends in punishing business crimes involves barring executives and officers from working in their fields if they have a criminal conviction. a. True b. False

16. Statutory law includes U.S. Supreme Court opinions. a. True b. False

16. Unwillingness of businesses to voluntarily improve the ethics of their practices has little practical effect on the regulatory environment. a. True b. False

17. A price reduction to one customer is lawful when it is made because of the deteriorated condition of the goods sold to that customer. a. True b. False

17. An administrative agency has the power to investigate, to require persons to appear as witnesses, to require witnesses to produce relevant papers and records, and to bring proceedings against those who violate the law. a. True b. False

17. An owner of a copyright may license some of his or her rights to another in exchange for royalty payments. a. True b. False

17. Libel is the printed equivalent of the spoken form of defamation known as slander. a. True b. False

17. Many changes have been made to the Constitution by the constitutional method of amending. a. True b. False

17. White-collar crimes generally involve violence. a. True b. False

17. A motion for a directed verdict occurs immediately after the last pleading is filed. a. True b. False

17. Entitlement theory says that everyone has rights but it is up to the government to protect those rights. a. True b. False

17. Within each state in the United States, only the U.S. Constitution is in force. a. True b. False

18. A copyright owner may prohibit even limited use of copyrighted material if it is used for parody or criticism. a. True b. False

18. Agency investigations of possible violations of agency rules are handled through independent enforcement agencies. a. True b. False

18. Interactive web sites are immune from liability for content created by a third-party user, unless the web site actively edits the content. a. True b. False

18. One of the characteristics of the "living" Constitution is limited government. a. True b. False

18. Price discrimination is not permitted even when it can be justified on the basis of a difference in grade, quality, or quantity. a. True b. False

18. The Racketeer Influenced and Corrupt Organizations (RICO) Act authorizes both criminal and civil actions. a. True b. False

18. A judge rules on the admissibility of evidence presented in the trial. a. True b. False

18. All cities, counties, and other governmental subdivisions have basic powers to adopt ordinances, such as traffic and zoning laws, within their sphere of operation. a. True b. False

18. Freedom from economic domination is a personal right protected under United States law. a. True b. False

19. All types of patents available under U.S. law are entitled to the same quality and duration of protection once initial filing is perfected with the Patent and Trademark Office in Washington, D.C. a. True b. False

19. Customer reviews and complaints such as "the worst cruise experience of my life" are protected opinion. a. True b. False

19. The Federal Register Act provides that printing an administrative regulation in the Code of Federal Regulations is public notice of the contents of the regulation to persons subject to it or affected by it a. True b. False

19. The Racketeer Influenced and Corrupt Organizations (RICO) Act was designed primarily to prevent individuals involved in organized crime from investing money obtained through racketeering in legitimate businesses. a. True b. False

19. The Robinson-Patman Act guarantees a seller the right to refuse to deal with anyone for any reason or purpose. a. True b. False

19. The privileges and immunities clause means that if a business owner moves from California to Texas, she can engage in the same business. a. True b. False

19. Criminal laws carry damage penalties for a wronged individual. a. True b. False

19. Generally, the prevailing party in a lawsuit is awarded the costs of the action, including witness fees and jury fees. a. True b. False

19. Utilitarians believe that ethics is measured by actions that do the most good for the most people. a. True b. False

2. A constitution is the written document that establishes the structure of the government and its relationship to the people. a. True b. False

2. A tort is an interference with someone's person or property. a. True b. False

2. Administrative agencies may make the rules, police the community to see the rules are obeyed, and sit in judgment to determine violations of their rules. a. True b. False

2. Crimes are classified as common law or statutory according to their origin. a. True b. False

2. Nobel economist Milton Friedman believes that government regulation of business interferes with the free enterprise system. a. True b. False

2. Trademarks may be used to protect the exclusive right to identify either products or services. a. True b. False

2. All courts have general jurisdiction. a. True b. False

2. The field of business ethics recognizes that social values typically must yield to the profitability motive. a. True b. False

2. The law often works to cause our society to operate in a very inefficient manner. a. True b. False

20. A manufacturer having a restriction on territories in the form of a sole outlet is a per se violation. a. True b. False

20. A strong President is one of the characteristics of a "living Constitution." a. True b. False

20. Although processes and machines are eligible for patent protection, manufactures and compositions of matter are not. a. True b. False

20. An administrative agency is barred from examining the records of a business enterprise by the constitutional guarantee against unreasonable searches and seizures. a. True b. False

20. Bribery requires the use of violence. a. True b. False

20. Product disparagement is a form of defamation. a. True b. False

20. Garnishment is a method for satisfying a judgment against a defendant. a. True b. False

20. Moral relativists solve ethical dilemmas according to time and place. a. True b. False

20. Procedural law specifies the steps that must be followed in enforcing those rights and liabilities. a. True b. False

21. A "suggested retail price" is not a violation of the antitrust laws. a. True b. False

21. Extortion and blackmail are exactly the same. a. True b. False

21. In numerous states, former employers are protected by a qualified privilege for factual comments made about former employees who are applying for jobs at other companies. a. True b. False

21. Under the United States Supreme Court's "doctrine of equivalents," infringers may not avoid liability for patent infringement by substituting insubstantial differences for some of the elements of the patented product or process. a. True b. False

21. When we speak of government regulation of business we ordinarily mean state government regulation, not federal government intervention. a. True b. False

21. Within the area in which the administrative agency is authorized to make decisions, the agency can be regarded as a specialized court or court of limited jurisdiction. a. True b. False

21. Administrative regulations generally do not have the force of law. a. True b. False

21. The mediator in a mediation has the power to force the parties to come to a settlement. a. True b. False

21. To Immanuel Kant, an action is ethical if it is fair and done for the right reasons. a. True b. False

22. A trespass to personal property is any unpermitted entry below, on, across, or above the land of another. a. True b. False

22. Administrative agencies are, in effect, a fourth branch of the government. a. True b. False

22. An administrative agency cannot hold a hearing without a jury. a. True b. False

22. Requiring buyers to purchase one product in order to get another is acceptable practice and not a violation of the Sherman Act. a. True b. False

22. To be patentable, an invention must be new and not obvious to a person of ordinary knowledge and skill in the art or technology to which the invention is related. a. True b. False

22. Arbitration procedures occur in a court of law. a. True b. False

22. Civil disobedience is the remedy natural law proponents use to change positive laws. a. True b. False

22. Individuals can create their own private law when they contract among themselves. a. True b. False

22. The Foreign Corrupt Practices Act applies to businesses with their principal offices located in the United States. a. True b. False

23. A hearing before an administrative law judge is considered a quasi-judicial proceeding. a. True b. False

23. In an administrative hearing, an administrative law judge hears the complaint and has the authority to swear witnesses, take testimony, make evidentiary rulings, and make a decision to recommend to the administrative agency heads for action. a. True b. False

23. Once approved by the U.S. Patent and Trademark Office, a patent is presumed valid after a public comment period of 90 days. a. True b. False

23. The United States Supreme Court generally has held that vertical merger agreements should not automatically be condemned as an unlawful restraint of interstate commerce merely because they create the potential to monopolize it. a. True b. False

23. The use of someone's car without that person's permission is a trespass to personal property. a. True b. False

23. A right is an obligation of law imposed on a person to perform or refrain from performing a certain act. a. True b. False

23. Forgery includes signing another person's name to a check with the intent to defraud. a. True b. False

23. Mortgages, security interests, and surety relationships are legal mechanisms created primarily to promote stability and flexibility in trade. a. True b. False

23. The Federal Arbitration Act provides that only arbitration clauses dealing with federal subject matters are valid, irrevocable, and binding. a. True b. False

24. An agency hearing is generally not subject to the rules of evidence. a. True b. False

24. Criminal penalties are possible under the Sherman Act. a. True b. False

24. In limited circumstances customer lists are protected under trade secret laws. a. True b. False

24. The issuing or delivery of a forged instrument to another person constitutes the crime of counterfeiting a forged instrument. a. True b. False

24. There are several defenses available when the standard of strict liability is applied. a. True b. False

24. Until 1937, the Supreme Court held that the Commerce Clause gave Congress the power to regulate only interstate commerce, such as an interstate telegraph message. a. True b. False

24. The final question of the Blanchard-Peale "Three Part Test", has to do with conscience. a. True b. False

24. When a court decides a new question or problem, the decision is called a stare decisis. a. True b. False

24. When arbitration is mandatory under a statute, the losing party generally can appeal from such arbitration to a court. a. True b. False

25. A consent decree is an informal settlement of an enforcement action brought by an administrative agency. a. True b. False

25. A person who is harmed by a conspiracy that violates the Sherman Antitrust Act may sue the wrongdoers for treble damages, which is four times the actual damages. a. True b. False

25. Embezzlement involves fraud. a. True b. False

25. Like the Declaration of Independence, the U.S. Constitution refers to our fundamental rights as "unalienable" rights. a. True b. False

25. People generally have a duty to act as a reasonably prudent person would in similar circumstances. a. True b. False

25. When secret information is shared or communicated for a special purpose and the person receiving the information knows it is not to be made known, it loses the protection it had while secret. a. True b. False

25. A summary jury trial is a mock trial before a judge. a. True b. False

25. The Front-Page-of-the-Newspaper Test helps managers view ethical decisions in terms of public disclosure of the proposed conduct. a. True b. False

25. The group of time-honored rules that courts have used to solve similar problems for decades is called precedent. a. True b. False

26. Before an appeal can be taken to a court concerning a determination of an agency, all administrative remedies must be exhausted. a. True b. False

26. Larceny is best defined as the taking of personal property from the presence of the victim by the use of force or fear. a. True b. False

26. Professionals have a duty to perform their functions at the same level as would a reasonable person. a. True b. False

26. Stealing trade secrets can result in fines, but not imprisonment. a. True b. False

26. The attorney general of a state may bring a class action suit to recover damages for those injured by an antitrust violation which raised prices. a. True b. False

26. When the federal government deregulates an industry, the states automatically have the power to regulate the same industry. a. True b. False

26. Despite the importance of ethical behavior for business success, few Fortune 500 companies have codes of ethics to resolve ethical dilemmas. a. True b. False

26. Mediation tends to keep discussions between parties proceeding. a. True b. False

26. The common law are court-enforced unwritten principles originally based on the usages and customs of the community. a. True b. False

27. A business' right to commercial speech - or advertising - has the same protections as a natural person. a. True b. False

27. A computer crime generally can only be committed by a person having some knowledge of the operation of a computer. a. True b. False

27. A court will not reverse an agency's decision merely because the court would have made a different decision based on the same facts. a. True b. False

27. Differences among businesses preclude the development of any universal categories of ethical behavior. a. True b. False

27. Plaintiffs are typically awarded punitive damages in negligence cases. a. True b. False

27. Written computer programs are not given the same protection as other copyrighted material. a. True b. False

27. If there is a reference to a third party to determine a dispute, in most cases the decision is binding. a. True b. False

27. Price discrimination is expressly permitted in all of the following except: a. In differences involving product grade or quality. b. When involving the cost of transportation. c. When making good faith efforts to meet the competition. d. In situations involving resale price maintenance.

27. Treaties made by the United States are not deemed part of the law. a. True b. False

28. Computer software licensing agreements include restrictions on the use of software and give the licensor greater protection than that provided by copyright law. a. True b. False

28. Decisions made by agencies are more likely to be reversed than to be accepted by the court on appeal. a. True b. False

28. Destroying information stored on a computer may be a crime. a. True b. False

28. The Fifth and Fourteenth Amendments prohibit the national and state governments from depriving any person of property without due process of law. a. True b. False

28. When contributory negligence is proven, damages awarded are reduced based on the plaintiff's degree of fault but the plaintiff can still recover some damages. a. True b. False

28. A "Rent-a-Judge" serves as a referee. a. True b. False

28. Over half of all Fortune 500 firms train their employees to recognize and deal with particular types of behavior that breach their ethical codes. a. True b. False

28. The Uniform Commercial Code is a good example of uniform state laws. a. True b. False

28. Unfair competition is controlled by: a. statutes. b. administrative agencies. c. administrative regulations. d. all of these.

29. A business does not have the constitutional right to participate in the political process or donate money to candidates. a. True b. False

29. As Courts now tend to accept an agency's reasonable interpretation of a statute involving a technical matter, even though it was not the only interpretation that could have been made. a. True b. False

29. One of the exceptions to the Fourth Amendment requirement for a warranty is the "plain-view" exception. a. True b. False

29. The Semiconductor Chip Protection Act of 1984 created a new form of industrial intellectual property by protecting mask works and the semiconductor chip products in which they are embodied against chip piracy. a. True b. False

29. The assumption of risk defense has been abolished in several states. a. True b. False

29. Those uniform state laws that have been adopted by individual states were first written by Congress. a. True b. False

29. A(n) _________occurs when the seller makes a buyer who wants to purchase one product buy an additional product that he or she does not want. a. Resale price maintenance. b. Tying arrangement. c. Price discriminations. d. Divestiture order.

29. Maintaining confidentiality is an ethical issue for both employees and company management. a. True b. False

29. The decision of an association tribunal is binding on both the association member and the consumer. a. True b. False

3. An agreement to charge an agreed-upon price or to set maximum or minimum prices between or among competitors is called price fixing but it is not per se a violation of the Sherman Act. a. True b. False

3. Because administrative agencies have broad powers, they are subject to strict procedural rules as well as disclosure requirements. a. True b. False

3. Generally, misdemeanors are more serious than felonies. a. True b. False

3. If a crime does not hurt an identifiable person, it is not a tort. a. True b. False

3. Once a mark is registered in accordance with federal law, the holder of the mark has the exclusive right to use the mark in perpetuity. a. True b. False

3. The United States utilizes a bicameral division of government. a. True b. False

3. A court that can only hear disputes involving damages of $5,000 or less has a limited jurisdiction. a. True b. False

3. Law is often defined as the body of principles that courts or administrative agencies will enforce. a. True b. False

3. Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal. a. True b. False

30. An administrative agency whose erroneous decision causes a regulated person or enterprise substantial loss is liable for such loss regardless of whether the agency acted in good faith. a. True b. False

30. Corporations are entitled to Fifth Amendment protection. a. True b. False

30. Governments are generally immune from tort liability. a. True b. False

30. The Constitution prohibits the government from treating different people differently. a. True b. False

30. Under the Semiconductor Chip Protection Act reverse engineering exemption, competitors may study mask works but may not use the results of that study to design their own semiconductor chip. a. True b. False

30. Courts have increasingly set aside arbitration clauses involving small businesses or consumers. a. True b. False

30. Procedural law creates legal rights and duties. a. True b. False

30. Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized. a. True b. False

30. Under the Sherman Act, any person who attempts to monopolize any part of the trade or commerce among the states shall be: a. guilty of a misdemeanor. b. guilty of a felony. c. fined up to $500,000. d. guilty of a conspiracy to be a monopoly

31. A wrong that arises from a violation of a private duty is called a: a. criminal action. b. tort. c. crime. d. de mala.

31. Due process includes the right to be heard, question witnesses, and present evidence. a. True b. False

31. The Lanham Act grants protection for: a. marks. b. patents. c. copyrights. d. trade secrets.

31. The Second Amendment provides for the right to keep and bear arms. a. True b. False

31. A court is a tribunal established by: a. the parties to a lawsuit. b. the government. c. the parties to a contract. d. the will of the people.

31. Civil laws define wrongs against society. a. True b. False

31. Positive law: a. is enacted by government authority. b. ensures that businesses will follow a high level of ethical standards. c. is also known as natural law. d. is moral-based law.

31. To satisfy the requirements of due process, an agency handling a complaint must generally _______, although there is no right to _________. a. give specific recommendations to the director of the agency, cross-examine witnesses. b. give notice and hold a hearing, remain silent. c. give notice and hold a hearing, trial by jury before an agency. d. give sufficient notice only, remain silent.

31. __________ power relates to a firm's ability to control price and exclude competitors. a. Market b. Competitive c. Product d. Production

32. Concerning torts and crimes, choose the correct statement: a. Every tort is a crime. b. Every crime is a tort. c. No crime is a tort. d. A crime may also be a tort.

32. Government restrictions on the form, content, and placement of commercial speech on are rarely found constitutional. a. True b. False

32. Trademark law categorizes marks along a spectrum of ______, based on a mark's capacity to serve ______. a. suggestiveness, the characteristics of the service to which they relate. b. fancifulness, the characteristics of the product to which they relate. c. descriptiveness, a source-identifying function. d. distinctiveness, a source-identifying function.

32. An administrative agency can be created to perform: a. only one of the three functions of government (executive, legislative, or judicial). b. any two of the three functions of government. c. all three of the functions of government. d. none of the three functions of government.

32. Crimes are generally defined and their punishments specified by: a. trial court judges. b. appellate judges. c. codes and statutes. d. the United States Constitution.

32. Equity provides justice when the law is inadequate. a. True b. False

32. Immanuel Kant's categorical imperative theory: a. requires that we avoid one-sided benefits as a result of ethical decisions. b. makes it easier to settle international business ethical decisions. c. believes you have to be fair and ethical whether you want to be or not. d. always elevates the ends over the means.

32. The Sherman Act focuses on: a. unfair methods of competition. b. combinations or contracts in restraint of trade. c. permitted price discriminations. d. intrastate commerce.

32. The power given to courts to hear certain types of cases is called: a. jurisdiction. b. mediation. c. arbitration. d. summary judgment.

33. Administrative hearings often have additional parties involved, called ______, who are _______ with an interest in the case are permitted to participate. a. intervenors, political entities. b. industry organizations, intervenors c. intervenors, ALJ's. d. intervenors, industry organizations.

33. It is important to protect trade dress against adoption by a competitor failure to protect the mark can: a. deceive purchasers into believing they have obtained a comparable product. b. dilute the originator's resource investment in its product appearance. c. usurp the business goodwill of the developer of the trade dress. d. allow the mark pass into the English language (like 'aspirin') and become generic.

33. The Bill of Rights provides protection for corporations. a. True b. False

33. Torts arise from a violation of a ____ duty. a. public b. private c. contractual d. criminal

33. A party may ask for legal, but not equitable, remedies in a single court. a. True b. False

33. All states recognize _________, which protects privileged documents and notes from seizure by the government, even with a warrant. a. the warrantless search privilege b. the "plain view" privilege c. the attorney-client privilege d. the Fifth Amendment privilege.

33. Original jurisdiction courts are generally ____________. a. supreme courts b. appellate courts c. trial courts d. limited courts

33. Rights theory includes all of the following except: a. is also known an entitlement theory. b. states that everyone has a set of rights. c. believes that it is the government's responsibility to protect our rights. d. using others in a way that gives you a one-sided benefit.

33. Section __________ of the Sherman Act applies to agreements, conduct, or conspiracies to restrain trade, which can consist of price-fixing, typing, and monopolization. a. A b. B c. 1 d. 2

34. A contractor would be liable for ________ if the demolition of a structure with dynamite caused damages to surrounding structures. a. strict liability b. contributory negligence c. criminal wrongdoing d. tortious interference

34. Generally, which power(s) does (do) an administrative agency possess? a. all powers necessary to effectively perform the duties entrusted to it b. legislative only c. judicial only d. executive only

34. ICANN is a nonprofit corporation responsible for: a. granting safe harbors for good faith domain name violators. b. removing cybersquatters from the internet. c. resolving differences among domain names. d. coordinating the use of domain names across the Internet.

34. The Fifth Amendment protects individuals and corporations from unreasonable searches in their homes, and places of business. a. True b. False

34. A crime generally consists of: a. an act or omission. b. a mental state. c. a mental state and an act or omission. d. a mental state, an act or omission, and harm.

34. Law is: a. a body of religious principles held by all members of society. b. a body of principles that society establishes to keep things running smoothly. c. always the result of case-law decisions. d. derived solely from the United States Constitution.

34. The Sherman Act applies to all of the following except: a. buying activities. b. selling activities. c. production activities. d. price discrimination.

34. The Utilitarian Theory: a. holds that we all act in our own self-interest. b. is based on doing the most good for the most people. c. resolves ethical dilemmas according to time and place. d. believes that solving ethical dilemmas requires training

34. Which of the following is not an example of limited or special jurisdiction court? a. Probate court b. Juvenile court c. Domestic Relations court d. Court of original jurisdiction.

35. A copyright bestows upon the creator of an artistic or literary work a federal statutory right to exclusively: a. use the work. b. reproduce the work. c. display the work. d. All of these

35. According to the Privileges and Immunities clause, a state cannot bar someone who comes from another state from engaging in local business or from obtaining a hunting or fishing license. a. True b. False

35. Sal sent Max an e-mail message telling Max that his wife had been killed in a car accident, and Sal knew this was untrue. Max may be able to sue Sal for: a. Intentional infliction of emotional distress b. Libel c. Violations of the First Amendment d. Battery

35. The Freedom of Information Act: a. is to be strictly construed to prevent unauthorized disclosures. b. has too many exemptions to be useful. c. is intended to subject agency action to public scrutiny. d. puts the burden of proof upon the person requesting the information.

35. Ethical egoists such as Ayn Rand hold that: a. people always act in their own self-interest. b. people do the most good for the most people. c. ethical dilemmas are resolved according to time and place. d. solving ethical dilemmas requires ethical training

35. Law consists of: a. principles that govern conduct. b. mere guidelines. c. arbitrary rules. d. traditions.

35. Specific statutes define the _______, which is the criminal conduct required to be charged with a crime. a. mental state. b. scienter. c. actus reus. d. mental awareness.

35. The Sherman Act does not prohibit: a. a company from engaging in purposeful conduct to exclude competitors. b. a seller from dominating a market because of superior product or business. c. competitors from agreeing not to deal with certain buyers. d. contracts to fix prices.

35. The U.S. Courts of Appeals consists of ______federal judicial districts. a. Ten (10) b. Fifteen (15) c. Thirteen (13) d. Nine (9)

36. In order to establish the tort of false imprisonment, a person must show imprisonment for: a. any amount of time. b. at least one minute. c. at least ten minutes. d. at least one hour.

36. Meetings are to be open to the public under: a. the Administrative Protection Act. b. the Sunshine Act. c. the Freedom of Information Act. d. the Administrative Procedure Act.

36. The DMCA provides a(n) _______ for internet service against claims of _______. a. dispute resolution forum, copyright infringement. b. indemnification, copyright infringement. c. mechanism, trademark infringement. d. safe harbor, copyright infringement.

36. The Due Process clause has extended the due process clause to protect the record or standing of a student. a. True b. False

36. According to the book Building and Growing a Business Through Good Times and Bad, companies with 100 years of consistent dividends: a. use positive laws as a guide for ethical decisions. b. have a goal of profitability no matter what the cost. c. have a strong commitment to values. d. value social responsibility above all other factors.

36. The law could best be described as: a. only statutory in nature. b. only the creation of our courts. c. a collection or bundle of rights. d. a bundle of political choices.

36. The types of civil cases that a private citizen can file in federal district courts include: a. cases in which any state in the United States is one of the parties. b. cases between citizens of different states that involve damages of $75,000 or more. c. cases brought by the citizen of one state against the state government of the same state. d. criminal charges against a state representative.

36. Under the Clayton Act, a divestiture order is: a. notification from the Department of Justice that a merger is about to occur. b. notification from the Department of Justice that a merger did not occur. c. a decision by a court requiring a defendant to sell an enterprise. d. an order by a court requiring an enterprise to dispose of its inventory.

36. When a defendant is convicted of a crime, the court may also declare that the defendant's rights in any property used or gained from the crime be confiscated. This is known as __________. a. forfeiture b. reversion c. subversion d. divestiture

37. A business may lose the shopkeeper's privilege if: a. the customer is kept an unreasonable amount of time. b. the shopkeeper acted with reasonable suspicion. c. the shopkeeper acted with necessary force. d. the shopkeeper kept the customer over 1 hour.

37. An administrative regulation: a. is a guideline that may be voluntarily followed. b. has the force of law. c. is a suggestion of what will protect the environment. d. is a standard used to guide an industry at the industry's discretion.

37. The United States Supreme Court was created by: a. Congress. b. the President. c. the Uniform State Law Commission. d. the U.S. Constitution

37. Which of the following is not an exclusive right of the holder of a copyright? a. To prepare works that are derived from the original work. b. To obtain a court order enjoining use of the original work by another. c. To distribute copies of recordings of the original work. d. To display or perform the original work in public.

37. Federal judges of the United States: a. are appointed by the President, with the approval of the Senate. b. are appointed by the Senate, with the approval of the President. c. cannot be impeached. d. are elected by the public.

37. Our rights flow from all the following sources except: a. the Constitution. b. federal statutes. c. city ordinances. d. ethical values.

37. Penalties for crimes are: a. always paid to the government. b. always paid to the victim(s). c. shared equally between the government and the victim(s). d. subject to forfeiture.

37. The importance of trust as a fundamental principle in capitalism is illustrated by expectations that: a. investors will be able to earn a return on their investments. b. employees may be discharged at any time for any reason without notice. c. litigation is inevitable because parties to agreements usually break promises. d. insider trading proves that the economic system underlying business is flawed.

37. Under the Clayton Act, when large-scale enterprises plan to merge, they must in advance: a. notify the New York Stock Exchange. b. notify the President of the United States. c. complete the necessary financing arrangements. d. notify the Antitrust Division of the Department of Justice.

38. In determining whether limited use of copyrighted material may be permitted as "fair use," courts will consider: a. the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes. b. the nature of the copyrighted work. c. the amount and substantiality of the portion used in relation to the copyrighted work as a whole. d. all of these.

38. John owed Barney money. Barney called John's home several times per day for five weeks asking for repayment, with some of the calls coming after midnight. Barney might be liable for: a. defamation. b. wrongful interference with a contract. c. intentional infliction of emotional distress. d. trespass.

38. When it comes to administrative agencies, courts: a. regard agencies as able to perform their duties effectively. b. accept rules that have been established by agencies using a rational basis. c. do not substitute their own judgment in agency decisions. d. All of these.

38. A declaration of war: a. can be enacted by both state and federal governments. b. can be enacted only by the national government. c. can be enacted only by state governments. d. is prohibited by the U.S. Constitution.

38. A right can exist: a. by itself. b. only if created by a court. c. only if there is a corresponding duty. d. only under local law.

38. If U.S. Senator Jones is charged with a conflict of interest because of his financial interest in a firm he helped to secure a contract, he would most likely be charged with the crime of ________. a. bribery b. extortion c. improper political influence d. blackmail

38. State supreme courts primarily have ______ jurisdiction. a. appellate b. limited c. general d. original

38. The Clayton Act prohibits: a. all unfair methods of competition. b. conspiracies in restraint of trade. c. attempts to monopolize. d. price discrimination between buyers of like commodities.

38. Voluntary improvements in value choices and business ethics are: a. less effective than those brought about by government regulation. b. less costly and intrusive than those brought about by government regulation. c. virtually nonexistent in corporate America. d. more common in third-world countries than in the United States.

39. A right is defined as: a. an obligation of law imposed to perform an act. b. a legal capacity to require another party to perform an action. c. any written promise. d. -a political power to do the right thing.

39. Before an agency can begin rulemaking proceedings it must be given jurisdiction: a. by congressional enactment in the form of a statute. b. granted by an executive order of the President of the United States. c. from the United States Supreme Court. d. From the voters in the district.

39. The Digital Millennium Copyright Act : a. made notice of copyrights no longer mandatory. b. changed the life of a copyright. c. was enacted to curb the pirating of software and other pirated works. d. provided a safe harbor for copyright infringers.

39. The tort of invasion of privacy includes all of the following except: a. intrusion into private affairs. b. public disclosure of private facts. c. misappropriation of another's name. d. defamation of privacy.

39. Conspiracy means ____ committing a criminal act. a. thinking about b. an agreement aimed at c. thinking with others about d. all of these

39. The Robinson-Patman Act: a. prohibits charging different prices to different buyers when the margin costs are the same. b. allows sellers to offer incentives and bonuses to certain customers. c. allows sellers to refuse to deal with anyone for any reason. d. prohibits boycotts among competitors.

39. The U.S. Patriot Act and airport security regulations were enacted for the protection of: a. the person. b. public, health, safety and morals. c. the state. d. personal rights.

39. The person who initiates a civil lawsuit is called the: a. defendant. b. prosecutor c. plaintiff. d. judge.

39. The power to tax income: a. is possessed only by the federal government. b. is possessed only by state governments. c. may be exercised concurrently by both state and federal governments. d. is controlled exactly like the power to wage war.

4. A crime is a wrong that arises from a violation of a private duty, whereas a tort is a wrong that arises from a violation of a public duty. a. True b. False

4. An act that is a felony in one state be a felony in all states. a. True b. False

4. Governments may regulate prices but not credit terms. a. True b. False

4. The modern administrative agency typically possesses legislative, executive, and judicial powers. a. True b. False

4. The powers given by the federal government to the states are described as delegated powers. a. True b. False

4. Trademarks and service marks are recorded with the Register of Copyrights. a. True b. False

4. An appellate court determines whether there has been reversible error. a. True b. False

4. Civil disobedience is the remedy natural law proponents use to change positive law. a. True b. False

4. Jane asserts she has a legal right. Jane is really saying she has an obligation to perform or refrain from performing an act. a. True b. False

40. Dan is a famous syndicated radio personality for BratRadio. He has a distinctive voice and manner of speaking. MoreTalk, BratRadio's competitor hires Gordon, who sounds nearly identical to Dan, to host a competing show. MoreTalk encourages Gordon to imitate Hugh as closely as possible while on the air. MoreTalk is most likely to be liable for: a. Conversion b. Defamation c. Appropriation d. Wrongful interference with a business relationship

40. The "public comment" period for proposed administrative agency rules must be at least __________ days. a. 30 b. 60 c. 90 d. 120

40. Three types of patents available under U.S. law are: a. utility, product, design. b. design, packaging, invention. c. design, plant, utility. d. utility, regulatory, common law.

40. All of the following are true about tying, except: a. tying is a violation of the Sherman Act. b. tying occurs when sellers require buyers to purchase an unwanted product to get a wanted one. c. tying prohibits price discrimination. d. tying is the use of control over the product within a relevant market.

40. Federal supremacy refers to: a. the power of the President. b. the power of the Supreme Court to make decisions. c. the power of the federal government to legislate in certain areas. d. the power of the federal government to declare war.

40. Laws that prohibit defamation, invasions of privacy, and reputation exist primarily: a. for protection of the person. b. for protection of public health, safety, and morals. c. for protection of property. d. for protection of the state.

40. Money __________ involves the knowing and willful participation in a financial transaction involving unlawful proceeds when the transaction is designed to conceal or disguise the source of the funds. a. ironing b. vacuuming c. laundering d. cooking

40. Service of process refers to: a. a demand letter sent by the plaintiff to the defendant. b. a reply sent to the plaintiff by the defendant. c. giving the defendant proper notice that a legal action is pending. d. a record of the court's preliminary hearing.

40. The Securities Exchange Commission creates a. case precedent. b. statutory law. c. Constitutional law. d. administrative regulations.

41. Bruce opens a used car lot but has difficulty competing with Humdinger Motors, a much larger used car lot down the street. In his newspaper ad, Bruce includes the false statement, "Humdinger sells cars with defective titles." Humdinger experiences an immediate decrease in sales. Bruce has most likely committed the tort of: a. Malice b. Contract interference c. Disparagement d. Defamation

41. Design patents have a duration of ____ years. a. 10 b. 14 c. 17 d. 20

41. Proposed administrative regulations must be: a. printed in the Federal Register. b. published in the trade journals of those trades that will be affected by the proposed rules. c. Neither printed in the Federal Register nor published in the trade journals of trades that will be affected. d. Both printed in the Federal Register and published in the trade journals of trades that will be affected.

41. Federal law __________ conflicting state regulation when a federal law regulates that particular subject. a. coincides with b. is subordinate to c. parallels d. preempts

41. Laws that prohibit mislabeling of food, speeding, and sale of alcohol to minors exist primarily: a. for protection of the person. b. for protection of public health, safety, and morals. c. for protection of property. d. for protection of the state.

41. Rights guaranteed in the United States Constitution: a. cannot be taken away by statutes or court decisions. b. can be taken away by statutes. c. can be taken away by court decisions. d. can be taken away by local ordinances.

41. The Racketeer Influenced and Corrupt Organizations (RICO) Act is a product of: a. Congress. b. international trade agreements. c. state law. d. the Constitution.

41. The answer to the complaint is filed by the: a. defendant. b. prosecutor. c. plaintiff. d. judge.

41. Vertical mergers: a. occur between firms that have a competitor relationship. b. occur between firms that have buyer and seller relationships. c. are not covered by the Clayton Act. d. are always protected by the federal government.

42. Oral or spoken defamation is: a. slander. b. libel. c. privilege. d. perjury.

42. The type of patent that may be granted to developers of plant reproduction methods is called a: a. process patent. b. functional or utility patent. c. improvement patent. d. plant patent.

42. Which of the following is part of an administrative agency's power to investigate? a. an investigation to determine whether additional administrative rules need to be adopted b. an investigation to ascertain facts with respect to a particular suspected or alleged violation c. an investigation to determine whether the defendant in a proceeding before the agency is complying with its final order d. all of these

42. A violator of the Sherman Act may be subject to: a. fine only. b. imprisonment only. c. both fine and imprisonment. d. neither fine nor imprisonment.

42. In a living-document view, the U.S. Constitution is a document that: a. is clear in allocating the rights and responsibilities of people and our government. b. can be interpreted only according to the bedrock principles of 1776. c. can be interpreted only in accordance with current values. d. must be interpreted to accommodate both stability and flexibility.

42. Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright infringement exist primarily: a. for protection of the person. b. for protection of public health, safety, and morals. c. for protection of property. d. for protection of the state.

42. Racketeering is defined as: a. using money to influence public officials. b. using money to influence employees of competitors. c. using money derived from illegal activities to invest in legitimate businesses. d. using money to influence foreign officials.

42. The right of privacy consists of: a. the right to be secure against unreasonable searches by the government only. b. the right to protection against intrusions by others only. c. both the right to be secure against unreasonable searches by the government and the right to protection against intrusions by others. d. the right to be secure against warrantless searches only.

42. When a defendant files a(n) _________ he is attacking the plaintiff's pleading as not stating a cause of action or defense. a. counterclaim. b. motion to dismiss. c. motion for summary judgment. d. notice of service.

43. A(n)___________ is the power to adopt laws that protect the general welfare, health, safety, and morals of the people. a. Ex post facto law b. State's shared power c. Delegated power d. State's police power

43. An absolute privilege is available as a defense to slander liability when: a. the statement is made to only a few people. b. libel exists. c. a witness testifies in a court proceeding. d. no intent to harm is present.

43. Concerning administrative investigations: a. agencies are severely limited by the constitutional protection against unreasonable searches and seizures. b. a search warrant is always required to search premises. c. papers and records generally may be subpoenaed by an agency. d. a person does not have constitutional protection against unreasonable searches and seizures.

43. The type of patent that may be granted to developers of new and non-obvious ornamental features of manufactured articles is called a(n): a. design patent. b. functional or utility patent. c. improvement patent. d. plant patent.

43. Bribery is defined as: a. giving money, property, or any benefit to a person to influence that person's judgment. b. using one's position as a public official to make an illegal demand. c. using one's position as a nonpublic official to make an illegal demand. d. exerting improper political influence.

43. For violation of the Sherman Act, the maximum fine that may be imposed on a natural person is: a. $1 million. b. $500,000. c. $0. d. $100 million.

43. If a case has no material facts in dispute either party can file a(n) _________ and allow a judge to make a ruling as a matter of law. a. motion to dismiss b. counterclaim c. demurrer d. Motion for summary judgment

43. Suppose Sheriff Roland desires to search your home. What law requires that the sheriff obtain a search warrant? a. the Fourth Amendment of the United States Constitution b. the Equal Protection Clause c. state statute d. local uniform police ordinances

43. The passage of federal securities disclosure laws occurred largely as the result of: a. voluntary self-regulation by ethics experts in the securities industry. b. the stock market crash of 1929. c. changes in the international market for securities and negotiable instruments. d. legislative changes protecting debtors and creditors.

44. Slander of title and trade libel are collectively known as product __________. a. Divestiture b. Disparagement c. Dilution d. Diversion

44. The America Invents Act: a. amended federal copyright law. b. replaced the patent "first to file system" with a "first to invent" system. c. speeds up the application process for energy conservation inventions for a $4,800 fee. d. replaced the patent "first to invent system" with a "first to file" system.

44. The United States constitution places the most significant limitations on administrative investigation in the area of: a. search and seizure of the person. b. aerial inspection. c. search and seizure of papers and records. d. guarantee against self-incrimination.

44. A deposition is or can accomplish any of the following except: a. the testimony of a witness taken under oath. b. conducted outside of the courtroom. c. can be used to impeach a witness. d. can be used to dismiss the lawsuit.

44. A person or enterprise harmed by a Sherman Act violation may bring an action for: a. punitive damages only. b. treble damages. c. quadruple damages. d. actual damages only.

44. Blackmail is defined as: a. giving money to a person to influence that person's judgment. b. an illegal demand made by a public official. c. an illegal demand made by a nonpublic official. d. providing improper political influence.

44. The ethical category of integrity and truthfulness is best expressed as maintaining one's values and principles: a. so long as profits can be maintained. b. so long as the costs are not great. c. unless deviating will go unnoticed. d. despite the consequences or costs.

44. The greatest changes to the written Constitution have been brought about by: a. departure by treaty. b. judicial interpretation. c. constitutional amendment. d. amendment by practice.

44. The right to privacy applies to protect you from unreasonable searches in all of the following scenarios except: a. to you personally. b. to your home. c. to your business. d. in the commission of a crime.

45. A business formula, information compilation, or device that provides an advantage over competitors that do not have it is known as a: a. competitive advantage. b. strategic advantage. c. trade secret. d. restraint of trade.

45. A subpoena to testify or to produce records: a. is prohibited by the constitutional guarantee against unreasonable searches and seizures. b. is an illegal attempt to gain information by compulsion. c. cannot be opposed on the grounds that such a request constitutes an unreasonable search and seizure. d. must be approved by corporate officers to be effective.

45. Maria intentionally attempts to have Patty break a contract with Alfred. Maria will be liable under which theory of tort? a. Libel b. product disparagement c. contract interference d. intentional infliction of emotional distress

45. All of the following situations reflect a possible conflict of interest except: a. A CEO offers a contract to a friend without checking competing bids. b. A CEO hires a relative for a company position although another candidate is more qualified. c. A manager buys a piece of realty that would be suitable for a planned company project. d. A CEO takes a cut in pay to decrease company overhead.

45. In some states, the taking of information from a computer without the consent of the owner is called _______. a. unauthorized use of computers b. diverted delivery by computer. c. computer trespass. d. economic espionage by computer.

45. Voir dire examination is used in connection with: a. determining whether the pleadings are valid. b. jury selection. c. deciding whether to appeal a trial court decision. d. discovery.

45. When the President negotiates a treaty with a foreign country and submits it to the Senate for approval, the president's action is: a. an express Constitutional amendment. b. an amendment by judicial interpretation. c. an amendment by practice. d. the power of manifest destiny.

45. When the effect of an antitrust violation is to raise prices: a. damages are automatically considered doubled. b. each plaintiff must sue individually. c. imprisonment for the guilty is mandatory. d. the state attorney general may bring a class action suit for damages.

45. _______ law creates, defines, and regulates rights and liabilities. a. Statutory b. Constitutional c. Substantive d. Procedural

46. In a state that has the comparative negligence doctrine with a "50 percent" rule, a jury finds that Bill is 35% liable for his own injuries in a negligence suit he brought against Tina. In this situation, Bill will recover: a. 65% of the damages he seeks from Tina b. 50% of the damages he seeks from Tina c. Nothing at all from Tina d. 100% of the damages he seeks from Tina

46. The ____________ protection against self-incrimination cannot be invoked by a corporate officer when an agency has subpoenaed corporate records. a. Sixth Amendment. b. First Amendment. c. Fifth Amendment. d. Fourth Amendment

46. The measure of damages for misappropriation of a trade secret is: a. ten times the loss of revenues by the owner of the trade secret (punitive damages). b. three times the loss of revenues by the owner of the trade secret (treble damages). c. the loss of revenues by the owner of the trade secret. d. the profits earned by the 'thief' derived from the misappropriation of the trade secret.

46. "Primum non nocere" is Latin for: a. Above all, do no harm. b. Let the buyer beware. c. Hear no evil, see no evil, and speak no evil. d. No news is good news.

46. Counterfeiting is: a. a federal crime only. b. a state crime only. c. both a federal and state crime. d. determined by the individual.

46. If a court issues an injunction, the court would be ordering a(n) ________. a. equitable remedy b. legal remedy. c. private remedy. d. order of equitable damages.

46. The "living-document" view of the Constitution has all of the following characteristics except: a. strong federal government b. strong president c. various administrative agencies with significant power d. constructionist view of the Bill of Rights.

46. The _____ rule(s) on the admissibility of evidence. a. Judge b. Jury c. Attorneys d. court clerk

47. Suppose Jack signs a contract to purchase a home from Jill, but Jill later refuses to transfer title to the home to Jack. Jack could force Jill to transfer title to the home by asking a court for an order of ________ a. injunctive law. b. specific performance. c. legal damages. d. substantive law.

47. Trespass to personal property requires: a. the personal property to be connected to real property. b. destroying the personal property. c. the invasion of personal property regardless of whether the owner grants permission. d. the invasion of personal property without the permission of the owner.

47. Under the Computer Software Copyright Act of 1980, a written program: a. must be written in object code in order to be protected. b. must be written in source code in order to be protected. c. is protected as any other copyrighted material, even if it is in written form. d. is protected but does not receive the same protections as other copyrighted materials.

47. Under the _______ Amendment, agency officials have the right to conduct________ with a warrant, but a(n) ________ inspection is permitted when violations are dangerous to public health and safety. a. Sixth, inspections, warrantless. b. First, inspections, warrantless. c. Fourth, inspections, warrantless. d. First, interviews, warrantless

47. A motion for a directed verdict is appropriate: a. immediately after the pleadings are filed. b. immediately after discovery is concluded. c. immediately after the presentation of all evidence at trial. d. on appeal.

47. An ethical duty of confidentiality could be breached in any of the following situations except: a. information obtained through research of the employer is disclosed. b. customer lists or leads are disclosed to a competitor. c. proprietary information or technology of a business is disclosed. d. when a confidential informant tells government officials of illegal company activity.

47. Perjury occurs: a. only in federal court. b. only in written form. c. only in state courts. d. In both oral and written forms.

47. Which of the following is not characteristic of the "living" Constitution? a. strong government b. strong President c. administrative agencies d. states' powers equal to federal powers

48. The widest range of tort liability arises in the area of: a. negligence. b. absolute liability. c. violation of statute. d. assumption of risk.

48. To analyze a copyright infringement claim in the context of computer programs, courts will primarily examine: a. the total number of program steps that are substantially similar. b. the number of significant program steps that are substantially similar. c. whether the programs appear substantially similar in ordinary language. d. whether the programs appear substantially similar in machine language.

48. Which of the following is beyond the enforcement power of an agency? a. requiring proof of compliance with agency regulations b. issuing a cease-and-desist order c. convicting of criminal violations d. imposing civil penalties

48. A good example of a uniform state law would be: a. statutory law. b. case law. c. constitutional law. d. the Uniform Commercial Code.

48. One of the motions that can be made after a verdict has been entered is a motion for a: a. mistrial. b. summary judgment. c. directed verdict. d. judgment notwithstanding the verdict.

48. The Blanchard and Peale three-part test for resolving ethical dilemmas consists of the following questions: a. Is it legal? Is it ethical? Is it moral? b. Is it legal? Is it balanced? How does it make me feel? c. Is it ethical? Is it right? Does it pass the "front page of the newspaper" test? d. Is it right? Is it balanced? Is it fair?

48. The ______ makes it a federal offense to circumvent or create programs to circumvent encryption devices that copyright holders place on copyrighted material to prevent unauthorized copying. a. CAN-SPAM Act. b. DMCA. c. EFTA. d. NET Act.

48. Which of the following is true about administrative agencies? a. Administrative agencies exercise powers guaranteed to them in the U.S. Constitution. b. Administrative agencies exercise powers allocated to them by the president. c. Administrative agencies make decisions that are rarely reviewed by the courts. d. Administrative agencies make decisions that are effectively reviewed by voters.

49. A significant difference between an administrative agency hearing and a court hearing is that: a. a binding decision can only be made by an agency. b. there is no right of trial by jury before an agency. c. a court hearing allows no public intervention. d. a court can enforce its decision.

49. The best way to distribute and sell copyrighted computer programs is using: a. copyright laws. b. patent laws. c. trade secret laws. d. restrictive licensing.

49. The degree of care required of a person is: a. that degree of care the person exercised in the situation at hand. b. that degree of care an extraordinary person would exercise under similar circumstances. c. that degree of care a reasonably prudent person would exercise under similar circumstances. d. that degree of care professionals exercise in similar situations.

49. Failure to give ______ means that a defendant's statements or confession cannot be used as evidence against that individual. a. the Miranda warnings b. the Sarbanes-Oxley warnings c. the Fourth Amendment warnings d. the Fifth Amendment warnings

49. In applying the "front-page-of-the-newspaper" test to a contemplated course of conduct one should ask: a. Would I be found criminally liable if this winds up on the front page of the newspaper? b. Would I be liable for monetary damages if this winds up on the front page of the newspaper? c. Would I be willing to have my spouse, friends, and children read about this if it winds up on the front page of the newspaper? d. Would I be able to explain this to the authorities if it winds up on the front page of the newspaper?

49. The commerce clause of the Constitution: a. prohibits the U.S. government from engaging in interstate commerce. b. prohibits the U.S. government from regulating interstate commerce. c. has been expanded by Supreme Court interpretations to give the U.S. government the power to regulate the general welfare of the nation. d. was declared unconstitutional in 1937.

49. The right to privacy means that individuals a. cannot gossip about each other b. cannot be lawfully searched. c. can yell "Fire" in a crowded theater. d. are protected against intrusions by others.

49. When testifying at trial, the witness for the plaintiff will undergo _______ by the plaintiff's attorney, and a(n) _______ by defense counsel. a. a background check, cross-examination b. direct examination, recross-examination c. redirect examination, cross-examination d. direct examination, cross-examination

5. A crime consists of three elements: the mental state, the intent, and the act. a. True b. False

5. Descriptive terms such as locations and colors are never subject to trademark protections. a. True b. False

5. Each of the states and the federal government have statutes and regulations that prohibit unfair methods of competition. a. True b. False

5. Some of the powers delegated to the national government may be exercised by the states. a. True b. False

5. The Freedom of Information Act provides access to any information upon request. a. True b. False

5. The same action can have both civil and criminal liability. a. True b. False

5. Kant's theory understood that sometimes you have to use someone to achieve a one-sided benefit. a. True b. False

5. Rights always stand alone, without any duties. a. True b. False

5. The federal court system consists of three levels. a. True b. False

50. A(n) __________ is a negotiated disposition of a matter before an administrative agency, generally without public sanctions. a. formal settlement b. informal settlement c. judicial verdict d. quasi-judicial verdict

50. Owners of mask works are entitled to the exclusive right to reproduce and distribute their products under U.S. law for a period of: a. 10 years. b. 20 years. c. 28 years. d. the life of the creator plus 70 years.

50. Professionals have a duty to perform their jobs at the level of: a. a reasonable person. b. a reasonable professional in the same business. c. an extraordinarily careful person. d. an extraordinary person.

50. Which of the following is not a question business ethicist Laura Nash has developed to help businesspeople reach the right decision in ethical dilemmas? a. Have you defined the problem accurately? b. How would you define the problem if you stood on the other side of the fence? c. How did the situation occur in the first place? d. Does your proposed solution to the problem effectively balance the competing objectives of ethical decision-making and corporate profitability?

50. Garnishment applies to the judgment debtor's: a. wages. b. attorney fees. c. land and home. d. cars.

50. If your home or business is searched unlawfully, any items obtained during that unlawful search could be excluded as evidence in a criminal trial because of the ________. a. Fourth Amendment's exclusionary rule b. Constitutional common law c. Fifth Amendment's right to privacy d. common law

50. In a prosecution for unauthorized use of computers, unsecure _______ has proven to be a challenge in prosecution for unauthorized use of computer information. a. economic espionage b. diverted delivery c. computer raiding d. wi-fi networks

50. Within the past five years, the U.S Supreme Court has: a. placed some limitations on the commerce clause. b. increased Congressional authority for all activities that have economic impact. c. given states the ability to override the federal government on interstate commerce issues. d. become more conservative.

51. Comparative negligence: a. has been rejected by most of the states. b. allows a comparison of negligence between plaintiff and defendant. c. only applies when the plaintiff has signed a release. d. is a bar to recovery under common law.

51. The term "exhaustion of administrative remedies" means that: a. parties to an agency action must be diligent in pursuing their case. b. parties to an administrative action must take their appeal to a court of law. c. parties to an administrative action can appeal only after the agency has made a final decision. d. administrative agencies tend to work very hard.

51. Under the Semiconductor Chip Protection Act's _______, competitors may not only study mask works but may also use the results of that study to design their own semiconductor chip products embodying their own original masks. a. fair use exemption b. statutory damages waiver c. reverse engineering exemption d. semiconductor mask product exemption

51. If a person unlawfully gains access to a computer and fraudulently causes goods to be "lost" from their true destination, he might be guilty of _______. a. circumventing logistics transfers. b. computer raiding. c. economic espionage by computer. d. diverted delivery by computer.

51. Statutory law can be created by all of the following except: a. Congress. b. state legislatures. c. local governments. d. by the courts.

51. Which is not considered an alternate means of dispute resolution? a. civil lawsuit b. arbitration c. association tribunals d. minitrial

51. Which of the following statements regarding the commerce clause is FALSE? a. If the federal government establishes safety device regulations for interstate carriers, a state cannot require different devices. b. States may not use their tax power for the purpose of discriminating against interstate commerce. c. The commerce clause empowers Congress to regulate interstate commerce, but not commerce with foreign nations. d. A state cannot refuse to allow an interstate waste collector to conduct business within the state on the grounds that the state already has enough waste collectors.

52. If the plaintiff has either engaged in or refrained from actions that are at least partially to blame for the injuries received, what negligence has occurred? a. criminal b. contributory c. personal d. prejudicial

52. Which of the following is true about judicial review of agency action? a. Judges tend to substitute their own judgment for that of the agency. b. Courts will reverse agency decisions merely because the court would have made a different decision based on the same facts. c. Courts will reverse a decision if they disagree with the legal interpretation. d. There is a right to a trial by jury before an agency.

52. A computer crime generally requires that: a. the criminal possess a computer. b. the victim possess a computer. c. the criminal have some knowledge of computers. d. the victim have some knowledge of computers.

52. Administrative regulations: a. are essentially industry advisories. b. are case-law precedents. c. generally have the force of statute. d. are Constitutional principles.

52. In mediation, the mediator acts as a(n): a. judge. b. attorney. c. messenger. d. expert witness.

52. Which of the following powers is not reserved solely to the national government? a. power to regulate interstate commerce b. power to tax c. power to coin money d. power to borrow money on the credit of the United States

53. The ______can issue a(n) ______ to stop a practice that it decides is improper. This order is binding unless reversed on an appeal. a. ALJ, cease-and-desist order b. Court, monetary fine c. FTC, cease-and-desist order. d. FTC, appeal

53. What type of damages are recoverable when the defendant's tortious conduct is accompanied by fraud, malice, or willful or wanton conduct? a. compensatory b. consequential c. nominal d. punitive

53. A ______ is a legal principle expressed for the first time in court decision. a. statutory law b. stare decisis c. case law d. precedent

53. A summary jury trial is: a. binding on the parties. b. a mock trial. c. a full and complete hearing of all evidence pertaining to the case. d. a shortcut to establishing judicial precedent.

53. Computer crimes include: a. theft of hardware. b. theft of software. c. intentional damage to information stored on a computer. d. All of these.

53. The due process clause: a. allows the U.S. government to take private property without due process. b. allows a state to take private property without due process. c. provides a guarantee of protection against loss of rights or property without the chance to be heard. d. does not apply to state governments.

54. In reviewing agency action, courts generally apply the: a. "beyond a reasonable doubt" standard. b. "preponderance of the evidence" standard. c. "arbitrary and capricious" standard. d. "rational relationship" standard.

54. The concept of immunity from liability means that: a. one who harms another can be held liable only for voluntary acts. b. certain persons are not subject to tort liability. c. one who harms another without intending to do so is not subject to tort liability. d. one who harms a child can never be sued by the parents of the injured child.

54. In a minitrial: a. only three jurors are used. b. the trial addresses only portions of the case or certain issues related to the case. c. the decision is always fully binding on the parties. d. none of these.

54. Statutes which are drafted from Uniform State Laws are often used to regulate: a. business. b. foreign countries. c. criminal behavior. d. personal family matters.

54. The concept of equal protection of the law: a. applies to both state and federal governments. b. prohibits any classifications whatsoever. c. applies only to conduct by private parties. d. does not permit reasonable classifications.

54. The unauthorized use of a computer belonging to someone else is: a. a crime in all states. b. a crime in some states. c. not a crime in any state. d. a crime under federal law only.

55. If an agency causes a substantial loss to a business by enforcement of its laws, that business: a. always can hold the agency liable for damages. b. never can hold the agency liable for damages. c. may seek damages if the agency acted in bad faith. d. may seek damages if the agency complied with its own guidelines.

55. Once the cause in fact is established, the plaintiff must establish ________, that is the harm by the injured person that was a foreseeable consequence of the defendant's negligent actions. a. actual causation. b. proximate causation. c. but for causation. d. the Palsgraf standard.

55. Judicial Triage is all of the following except: a. a court management tool. b. results in some cases being expedited. c. results in some cases being postponed. d. a directed verdict

55. The Economic-Espionage Act (EEA): a. makes it a crime to use a fraudulently obtained device to obtain money through an electronic fund transfer system. b. makes it a crime to send unsolicited bulk emails. c. makes it a crime to transfer proprietary files, documents and information from a computer to an unauthorized person. d. all of these.

55. The Uniform Partnership Act is a good example of a(n): a. Congressional statute. b. substantive law. c. uniform state law. d. procedural law.

55. The equal protection clause prohibits a statute from treating one person differently from another: a. when there is no reasonable ground for classifying them differently. b. unless the statute discriminates on the basis of cultural standards. c. unless the statute is clearly arbitrary or capricious. d. if the statute discriminates on the basis of gender.

56. Substantive law: a. specifies the steps to follow to enforce legal rights. b. concerns equitable relief only. c. creates, defines, and regulates rights and liabilities. d. draws solely on English legal principles.

56. The Fourth Amendment to the United States Constitution's protection against unreasonable searches applies to: a. personal homes only. b. businesses only. c. both homes and businesses. d. none of these.

56. Which of the following is not protected under the privileges and immunities clause? a. right to go to another state and make a contract b. right to go to another state and vote in local elections c. right to go to another state and purchase property d. right to go to another state and open a business

57. Criminal laws: a. define wrongs against society. b. define the rights of one person against another. c. carry damage remedies against the wronged individual. d. are punished by individuals who have been wronged.

57. Powers delegated to the national government that may be exercised by the states are referred to as ________. a. ex post facto powers b. shared powers c. police powers d. delegated powers

57. The Fifth Amendment to the United States Constitution's protection against self-incrimination applies to: a. individuals only. b. corporations only. c. both individuals and corporations. d. individuals, but only in their official capacity within a business.

58. Due process rights apply to: a. individuals only. b. corporations only. c. both individuals and corporations. d. individuals, but only in their official capacity within a business.

58. ______ is a body of law that provides justice when the law does not offer an adequate remedy. a. Ethics b. Regulations c. Equity d. Statutes.

6. Georgia is at a crowded carnival. As she's trying to get to the corn dog stand, someone in the crowd accidentally pushes and into another carnival-goer, causing that carnival-goer to get a black eye. Georgia is guilty of the tort of assault. a. True b. False

6. If other persons are permitted to use a trademark, it will lose its exclusive character and become generic. a. True b. False

6. It is not necessary that some person be harmed for an act to be considered a crime. a. True b. False

6. The Federal Trade Commission administers the law prohibiting unfair methods of competition. a. True b. False

6. The power of the states to adopt laws to protect the general welfare of the people is called ex post facto. a. True b. False

6. The public has access to the activity of administrative agencies in three ways: (1) open records, (2) open meetings, and (3) public announcement of agency guidelines. a. True b. False

6. Federal district courts are the trial courts of the federal court system. a. True b. False

6. Rights guaranteed in the U.S. Constitution are accompanied by duties. a. True b. False

6. The theory of justice is based on the concept that if there were no laws or rules reasonable people would develop fair rules and standards. a. True b. False

7. An agreement between real estate brokers to never charge a commission less than 6% is not an example of price fixing. a. True b. False

7. Ex post facto laws can be adopted by either the states or the national government. a. True b. False

7. For tort liability to be imposed, the perpetrator of the tort must have acted with the intent to do wrong. a. True b. False

7. The Administrative Procedure Act is a federal law that establishes the operating rules for administrative agencies. a. True b. False

7. Trade dress refers to the packaging look and overall image of a product. a. True b. False

7. "Mental state" does not require an awareness of guilt. a. True b. False

7. An en banc decision within a U.S. Court of Appeal only requires a panel of three judges. a. True b. False

7. Court decisions and statutes can take away rights created by the U.S. Constitution. a. True b. False

7. Ethical egoism believes that feeling guilty about poor ethical decisions will lead to better future decisions. a. True b. False

8. For nonbusiness crimes, only those who are actually involved in the act itself can be convicted of the crime. a. True b. False

8. Negligence is imposed because the activity involved is so dangerous that there must be full accountability, even if the activity is necessary and cannot be prohibited a. True b. False

8. Protection for trade dress is available under the Lanham Act. a. True b. False

8. The Sherman Act applies only to buying and selling activities, not manufacturing and production activities. a. True b. False

8. The Sunshine Act requires most meetings of major administrative agencies to be open to the public. a. True b. False

8. The requirement that a business be licensed would be an example of a shared power. a. True b. False

8. A probate court is an example of a general trial court. a. True b. False

8. Moral relativists believe that ethical decisions will differ based on circumstances. a. True b. False

8. One of our most important rights is the right of privacy. a. True b. False

9. Assault is the intentional, wrongful touching of another person without that person's consent. a. True b. False

9. Congressional 'silence' in particular subject area could mean Congress doesn't want to regulate in that particular subject area. a. True b. False

9. For business crimes, managers cannot be held criminally responsible for the conduct of their employees. a. True b. False

9. Having a large percentage of the market is not necessarily a monopoly. a. True b. False

9. In an emergency, an administrative agency can act beyond the scope of the statute that created it. a. True b. False

9. To prevail in an action for trade dress infringement, a plaintiff must prove that its trade dress is distinctive and nonfunctional and the defendant's trade dress is confusingly similar to the plaintiff's. a. True b. False

9. A family law court is an example of a small claims court. a. True b. False

9. In applying the stakeholder model of business ethics, only the interests of important constituencies affected by an action need to be satisfied. a. True b. False

9. The right to be secure against unreasonable searches and seizures conducted by the police is guaranteed by the Fifth Amendment of the U.S. Constitution a. True b. False

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