MGMT 254 Exam 2

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The Racketeer Influenced and Corrupt Organizations (RICO) Act was created by: a. a bilateral treaty. b. Congress. c. Sarbanes-Oxley reforms. d. the North American Free Trade Act.

b. Congress.

A group of thieves go into a jewelry store during 10 minutes before the store is set to close. They overpower the guard and threaten to shoot the store employees if they don't hand over all the jewelry and money in the store. What type of common law crime is this? a. Larceny b. Robbery c. Burglary d. Arson

b. Robbery

Magnolia Melons and Harper Farms are both manufacturers of canned fruits and vegetables. If these companies merged, what type of merger would that be? a. Conglomerate b. Vertical c. Tying d. Horizontal

d. Horizontal

Through use of "police powers" governments: a. enforce standards for health and purity for cosmetics, foods, and drugs. b. prohibit false advertising and labeling. c. prohibit unfair methods of competition. d. All of these are correct.

d. All of these are correct.

Sam entered into a written contract with Ginger to purchase her car for $10,000. Andy tries to get Ginger to break the contract saying that he will pay $11,000 for the car if she will break the contract. Andy will be liable under which theory of tort? a. Product disparagement b. Libel c. Trespass d. Contract interference

d. Contract interference

Mr. Streetman's neighbor just bought a new car and a new boat. He is curious about how his neighbor got the money for the purchases. Mr. Streetman decides to use the Freedom of Information Act to find out how much money his neighbor makes at his job. What would be the likely outcome of this activity? a. He would be able to find out any job information, including pay. b. He would be able to find out where his neighbor works, but not his pay rate. c. Based on the "open records" provision, he could find out anything he wants. d. He would not able to find out anything about his neighbor.

d. He would not able to find out anything about his neighbor.

Administrative law judges have the authority to do all but which one of the following? a. Swear witnesses. b. Make evidentiary rulings. c. Take testimony. d. Impanel a jury.

d. Impanel a jury.

__________ is that exercised by an agency having the ability, under a legislative delegation of power, to make rules having the force and effect of law. a. Executive power of the agency b. Judicial power of the agency c. Hybrid rulemaking power d. Legislative power of the agency

d. Legislative power of the agency

A shopkeeper may qualify for the shopkeeper's privilege if: a. the customer is kept a reasonable amount of time. b. the shopkeeper acted with reasonable suspicion. c. the shopkeeper acted with necessary force. d. All of these are correct.

d. All of these are correct.

To determine whether a firm has engaged in an attempt to monopolize, the courts determine whether the firm has what kind of power? a. Marketing. b. Product. c. Market. d. Production.

c. Market.

Defamation consists of which elements? a. An untrue statement about a person's reputation b. Publication c. Damages that result d. All of these are correct.

d. All of these are correct.

How are the heads of Federal Administrative Agencies selected? a. By being elected by the population of the state b. By completing an application process, like any other job, and going through an ordinary hiring process. c. By being appointed by the President of the US. d. By being selected from the current agency employees by a committee.

c. By being appointed by the President of the US.

In order to establish the tort of battery, a person must show: a. intentional confinement. b. threat of imminent harm. c. wrongful touching. d. unpermitted entry on land.

c. wrongful touching.

BTG Manufacturing sells products to different customers for different prices. Which of the following would NOT be a permitted reason for doing this? a. trying to eliminate the competition b. having to travel further to deliver to certain customers c. closing out a particular line of products to get rid of them d. difference in quantity purchased

a. trying to eliminate the competition

The manufacturer of Tuppermaid agrees to sell 500 boxes of 4-quart bowls to a distributor only if he agrees to resell to the retailer at cost plus $2.10 per bowl and the retailer must agree to sell at no less than his cost plus $0.50 per bowl. This is: a. vertical price fixing. b. horizontal price fixing. c. vertical market allocation. d. a group boycott.

a. vertical price fixing.

Jennifer feels that she was harmed by purchasing a vehicle from General Motors Corp. when the vehicle exploded and caused $200,000 worth of damages to herself and her vehicle. She has filed a civil lawsuit against the company. If the files a lawsuit for treble damages, how much is she asking for? a. $200,000 b. $600,000 c. $1,000,000 d. the amount is unlimited

b. $600,000

After the September 11, 2001 attacks on the World Trade Center, airport security measures and process were changed with an exemption of what policy? a. allowing suspension of any airport security measures. b. 30-day public comment period. c. promulgation deadline. d. Freedom of Information Act request.

b. 30-day public comment period.

The actions and activities of most federal agencies that are not otherwise regulated are controlled by the: a. Administrative Procedure Act. b. Freedom of Information Act. c. The Sunshine Act. d. Federal treaties.

a. Administrative Procedure Act.

Which of the following statements is true? a. Misdemeanors are less serious than felonies. b. Felonies involve business crimes only. c. Misdemeanors are equally as serious as felonies. d. All misdemeanors are federal crimes only.

a. Misdemeanors are less serious than felonies.

An Arizona man was selling drugs illegally. He was taking that money collected from the drug transactions and putting them into a seemingly legitimate medical clinic owned by his brother who showing them as "donations." What form of crime is this? a. Money Laundering b. Forgery c. Extortion d. Counterfeiting

a. Money Laundering

Which of the following is part of the enforcement power of an agency? a. Requiring proof of compliance with agency regulations b. Impaneling a jury c. Convicting of criminal violations d. Public censuring.

a. Requiring proof of compliance with agency regulations

The Environmental Protection Agency suspects Jimmy Jameson of dumping unlawful chemicals into a stream on his company's property. The EPA has obtained evidence, claimed to be proof of unlawful activity, by way of aerial photography. In carrying out these investigations, which of the following is true? a. The agency has traditionally been accorded great discretion within constitutional limits. b. The agencies have the unfettered right to investigate in any way they see fit. c. The agencies must abide by the exact same rules as law enforcement. d. An agency cannot require sworn testimony or the production of records.

a. The agency has traditionally been accorded great discretion within constitutional limits.

The Food and Drug Administration (FDA) would like to adopt some new rules regarding vitamins and supplements, but it is afraid that if too many people know about them ahead of time, the adverse publicity will force the agency to amend them. To avoid any public comment, the agency seeks to adopt the rules without publishing them. Which of the following statements is true regarding the agency's actions? a. This would be in violation of the APA rules & regulations b. The rules in this instance are procedural in nature and therefore are not required to be published. c. The agency has a right to act in this way and a duty to be efficient with taxpayer money. d. The agency has no rulemaking authority, because only Congress can make legislative rules.

a. This would be in violation of the APA rules & regulations

Bicycle's Galore is a manufacturer of high-end mountain bikes. They have decided to buy-out the company SuperWheels from which they purchase the tires that are used to manufacture the bikes. What type of merger is this? a. Vertical Merger b. Horizontal Merger c. Conglomerate Merger d. Tying Merger

a. Vertical Merger

Jerry and Richard own competing restaurants in a small town. Jerry rights a letter to the editor that gets published in the local newspaper in which he claims that Richard's restaurant is infested with rats and further that Richard paid off the health inspector so as not to shut down his business. People stop coming to Richard's restaurant so he decides to sue Jerry. What is the likely outcome of the lawsuit? a. if the allegations made by Jerry are true, Richard will not be awarded any damages. b. If the allegations made by Jerry are true, Richard will still be awarded damages for his lost business because the letter had a direct effect on his profits. c. Whether the allegations are true or not does not matter. Anyone can say anything they want about another person in the newspaper. d. If the allegations made by Jerry are false, he can be found guilty of slander.

a. if the allegations made by Jerry are true, Richard will not be awarded any damages.

Under the Freedom of Information Act administrative agencies can deny access to nine categories of records that: a. is not necessary to their legitimate interests and might harm the person or company whose information is being sought. b. are related to anyone who is the Screen Actors Guild. c. is protected by the Government in the Sunshine Act. d. is requested to be protected by either political party.

a. is not necessary to their legitimate interests and might harm the person or company whose information is being sought.

The proof of a crime generally involves: a. the intent and an act or omission. b. an act or omission only. c. the intent only. d. the intent and injury to the victim.

a. the intent and an act or omission.

The local government may impose regulations on business: a. to the extent that a state permits them to do so. b. to advance the interests of homeland security. c. to advance the nation's economic needs. d. if those regulations do not impose an unreasonable burden on any activity of the federal government.

a. to the extent that a state permits them to do so.

Jim and Nick are arguing over which football team is the best. The argument heats up and Jim punches Nick in the face in front of several witnesses. Jim will probably be found guilty of which of the following torts? a. Assault b. Battery c. Slander d. Negligence

b. Battery

A local newspaper devotes part of each Sunday's issue to profiling people who have performed heroically during the past year. One of the people included in the article was Ashley, an opera star. Eight months earlier, a fire started in the opera house while she was in the middle of a performance. Rather than running out, she stayed to help frightened patrons get out of the facility. The article stated that Ashley had been unable to find work because of burns to her hands and feet and that, as a result, she owes a great deal of money. Ashley sued the newspaper for invasion of privacy. Based on what you have learned in this chapter, how should the case be decided? a. Anything that a writer can discover can be printed in any newspaper. b. The right of privacy protects against giving unnecessary publicity to personal and private matters of the plaintiff's life, but only if the information is necessary to the article. c. Stars have no right to privacy. d. Damages would be limited to the amount of profit from the sale of that particular newspaper.

b. The right of privacy protects against giving unnecessary publicity to personal and private matters of the plaintiff's life, but only if the information is necessary to the article.

The Supreme Court of the U.S. heard F.C.C. v. Fox Television Stations, Inc. In the Court's 2012 ruling what issue did they consider? a. Whether expletives on a national television broadcast are offensive. b. Whether FCC's indecency policy gave broadcasters sufficient notice of what would be considered indecent. c. Whether the FCC had jurisdiction over words used on televised broadcasts. d. Whether the use of the expletives on the show in question was intentional.

b. Whether FCC's indecency policy gave broadcasters sufficient notice of what would be considered indecent.

Midland Manufacturing Corp. was required to spend $2million to repair its ventilation system after the Occupational Safety and Health Administration (OSHA) found that the system was not properly venting the workplace and was causing employees to have respiratory issues. Midland is now suing OSHA and holding them liable for the money that they have to spend to meet the regulations. What is the court likely to consider in the case of liability of an agency? a. Whether the cost to make repairs is excessive b. Whether the agency acted in good faith in exercising its powers c. Whether anyone actually got sick or not d. Whether Midland can afford to make the repairsb. Whether the agency acted in good faith in exercising its powers

b. Whether the agency acted in good faith in exercising its powers

Karolyn and her friends went to an ice hockey game where she got hit in the head with a puck that flew into the stands and sustained serious injuries. There were numerous warnings both in the program and made by the area announcer that pucks could be dangerous and do sometimes fly into the stands. Karolyn filed a negligence lawsuit against the team but her claim was denied by the court because it was missing which of the following elements that constitute negligence? a. duty to exercise reasonable care b. breach of duty c. causation d. damages

b. breach of duty

If all apple growers in the area agree to set a minimum price for apples, this would be an example of: a. horizontal allocation. b. horizontal price fixing. c. vertical market restraint. d. a tying arrangement.

b. horizontal price fixing.

A(n) __________ are practical devices to cut across procedures already outlined and is a negotiated disposition of a matter before an administrative agency. a. formal contract b. informal settlement c. judicial verdict d. quasi-judicial verdict

b. informal settlement

A crime is a wrong that arises from a violation of a public duty, whereas a tort: a. is a wrong that arises from actions at work only. b. is a wrong that arises from a violation of a private duty. c. is a wrong that arises from voter fraud only. d. is a wrong that must happen in a private setting.

b. is a wrong that arises from a violation of a private duty.

Once __________, and after public input, administrative rules are applicable to all parties. a. read before the House and the Senate b. promulgated c. approved by the Supreme Court d. signed by the President of the United States

b. promulgated

The degree of care required of a professional is: a. that degree of care the person exercised in the situation at hand. b. that degree of care a reasonable professional would exercise under similar circumstances. c. that degree of care an ordinarily prudent person would exercise under similar circumstances. d. None of these are correct.

b. that degree of care a reasonable professional would exercise under similar circumstances.

The concept of governmental immunity from liability means that: a. one who harms another can be held liable only for voluntary acts. b. the government may 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.

b. the government may not subject to tort liability.

One issue before the Court in the Utah Pie Co. v Continental Baking Co. case was: a. whether the Court should oversee pie sales in one state. b. whether large firms discriminate by using "below-cost" pricing to push into the markets of smaller firms. c. whether companies can compete with one another by charging any price they wish. d. whether the Utah Pie Company should have a monopoly on pie sales in Utah.

b. whether large firms discriminate by using "below-cost" pricing to push into the markets of smaller firms.

During a lawsuit against GBD Pharmaceuticals, it was discovered that Sheryl, an employee of the company, has been corresponding via email with the Research department for several months discussing how the company can bypass government regulations requiring extended testing of their new pain medication. If the company has to wait for the government required testing, they may lose their competitive advantage of being the first to develop the new drug. Would these emails be admissible in court during the trial? a. no because they are her personal emails b. yes because courts have ruled that emails are admissible as evidence c. no because the company is simply trying to beat the competition d. yes because people could have died taking the medication

b. yes because courts have ruled that emails are admissible as evidence

The maximum fine for corporate violation of the Sherman Act is: a. corporations cannot be fined under the Act. b. up to $2 million. c. $100 million. d. $1 million.

c. $100 million.

A manager who did not commit the crime can held criminally responsible for acts committed in addition to the staff member who committed the act, if: a. managers authorized the conduct of the employees. b. knew about the employees' actions. c. did nothing to prevent the actions. d. All of these are correct.

d. All of these are correct.

Annette was driving her car in a careless way, failing to drive as a reasonably prudent person would under the driving conditions. Fred was crossing the street in a careless way, failing to cross at the crosswalk as a reasonably prudent person would. Annette struck and injured Fred with the car Annette was driving. At trial, it was determined that Annette was 75 percent at fault and that Fred was 25 percent at fault. The injuries sustained amounted to $100,000. How much, if any, recovery Fred would receive in a state that applies the comparative negligence rule? a. Fred would receive nothing as he was partially at fault. b. Conclude that liability should be based on the criminal court's verdict in the matter. c. Conclude that the damages should be assigned to the parties in proportion to their negligence in the situation. d. Fred's only recourse would be against Annette's homeowner's policy.

c. Conclude that the damages should be assigned to the parties in proportion to their negligence in the situation.

KBT Inc. was involved in a hearing with an administrative agency. The hearing ruled against KBT Inc. and the company has now filed an appeal with a district court. Under what circumstances would the district court overturn the ruling made by the administrative agency hearing? a. If the court disagrees with the ruling based on a question of fact b. If the court would made a different decision based on the same facts c. If the court disagrees with the legal interpretation of the decision under a question of law d. The court should never reverse the administrative agency ruling, under any circumstances.

c. If the court disagrees with the legal interpretation of the decision under a question of law

Madison has been fired from her job. She creates a software virus and uploads it to all the company computers leaving them all malfunctioning. What are the legal issues that Madison might face? a. Madison is not subject to criminal charges because a virus affects the computer, but not the person and is therefore not a crime b. Madison cannot be liable because she is no longer an employee and has already been fired. c. Madison will likely face criminal charges due to her actions d. Madison will likely face criminal charges if the company cannot get rid of the virus.

c. Madison will likely face criminal charges due to her actions

Joe works for a small online retailer. The owner, Mr. Renard, instructed him that his job is to take an order, package the product, and put in a bin that the package service empties/ships each business day. The retailer sells some new release movies in DVD form, but also sells pornography in DVD form (which is illegal in the state where the physical office is located). Joe knows what he is selling but is happy to be paid more than the minimum wage. Mr. Renard, the owner, is happy to have a good worker. Local law enforcement raids the store and arrests Joe and his co-workers. What is the potential criminal liability for Mr. Renard, who was not present at the time of the arrest? a. The only criminal liability rests on Joe and the employees present. b. No one is liable unless the police can prove that the movies were being sent to someone in the same state. c. Mr. Renard, the owner, is liable for the actions of the employees d. There are no laws that apply to online retailers.

c. Mr. Renard, the owner, is liable for the actions of the employees

Fred is a bookie (a person who illegally coordinates bets). He works from his home and keeps his records the old fashioned way—on paper. Every Monday evening he takes his garbage out to the street in a rolling plastic garbage receptacle. One Tuesday morning law enforcement officers look inside the garbage can to get records to corroborate information from an informant about Fred's gambling operation. If charged with a crime, can Fred successfully object to the seizure of his records from his trash? a. Yes, the police officers should have requested a warrant to seize the garbage. b. Yes, in order to search the garbage the officers would have been trespassing on the curb at Fred's home. c. No, Fred had no expectation of privacy in the garbage can when he moved it to the street. d. No, Fred has a diminished expectation of privacy in his home due to operating a business there.

c. No, Fred had no expectation of privacy in the garbage can when he moved it to the street.

Austin sustained an injury to his knee. Austin claimed the injury was suffered at work and filed a claim for workers' compensation benefits. The employer opposed this claim, saying the injury, if real, was the result of a congenital condition. In accordance with the statute, a hearing was held before the Workers' Compensation Board, which ruled against Austin. Austin became disgusted with the hearing officer and the proceedings because Austin felt that the hearing officer did not like him and wants to go directly to court because he feels that an agency appeal would be useless. Can he file the matter in federal court directly? a. Yes, he can directly to the Supreme Court. b. Yes, he can file in court right away. c. No, he must exhaust his available administrative remedies. d. No, he can only file in state court.

c. No, he must exhaust his available administrative remedies.

State administrative agencies also exist and may have jurisdiction over areas of law affecting all but which of the following? a. Workers' compensation claims. b. Real estate licensing. c. The courts. d. Unemployment compensation.

c. The courts.

Alex Anderson leases an apartment and has reported to the landlord that he has slipped several times on the steps leading to his apartment. He has informed them that he has to leave the lights on so that the can avoid slipping. The landlord told Alex the steps would be fixed while he was away on a trip so he did not leave his lights on, thinking the steps would be fixed. Upon returning home, he slipped and fell because the steps had not been fixed as promised so he sued his landlord. If the jury was instructed to decide the matter with a potential defense of contributory negligence, what would their conclusion be? a. The jury would conclude that whether the light was on or off is irrelevant. b. The jury would conclude that the damages should be assigned to the parties in proportion to their negligence in the situation. c. The jury would conclude that Anderson was contributorily negligent and award no damages to him d. The jury would find the parties jointly and severally liable.

c. The jury would conclude that Anderson was contributorily negligent and award no damages to him

A man and woman are standing on a public street, exchanging package of what looks like illegal drugs for money. They are doing this in plain sight. Two police officers approach the people, handcuff the people, tell them they are under arrest and take them to the police station without saying anything else or answering the two people's questions. What is the problem with the police officers' actions? a. The officers did not obtain a warrant first b. The officers did not answer the questions that the two people asked c. The officers did not read the two people their rights d. The officers did nothing wrong. They are not obligated to do anything.

c. The officers did not read the two people their rights

A programmer working in California creates a computer program to access and unlock password-protected e-books, housed on a publisher's server in Illinois. If the programmer is sued under the Digital Millennium Copyright Act, what would the likely result be? a. The programmer would be found "not guilty" because item on the internet are not afforded copyright protection. b. The programmer would be found "not guilty" because he could not violate an Illinois law when he was in another state at the time. c. The programmer would be found "guilty" of the Digital Millennium Copyright Act. d. The programmer would have a claim against any interference with his efforts to dissemble the e-books due to his right to free speech.

c. The programmer would be found "guilty" of the Digital Millennium Copyright Act.

Annette, an energetic college junior, had been involved in the selling of goods for a number of years online. Annette supported herself in this way but yearned for greater success. She was particularly interested in selling women's dresses. She studied the clothing lines of famous designers Giorgio Armani and Bill Blass. Annette then contacted a clothing manufacturer who agreed to copy the styles under the names of Armani and Blass. Annette began to sell the copied clothing articles under the names "Gorgo Ormani" and "Bill Bless." The names, however, were not clearly printed on the labels but written in a handwritten scrawl making it difficult to discern the actual spelling. The matter has been brought to the attention of the FTC. Is Annette in violation of the law? a. No, the consumer would know that the dress was not an original. b. No, Annette can sell any dress that she wants. c. Yes, deceptively passing one's goods off as designed by someone else is wrong. d. Yes, you cannot list and sell designer dresses online.

c. Yes, deceptively passing one's goods off as designed by someone else is wrong.

The Sherman Act focuses on not only buying and selling activities but also manufacturing and production in an effort to combat: a. unfair methods of competition. b. permitted price discriminations. c. combinations or contracts in restraint of trade. d. intrastate commerce.

c. combinations or contracts in restraint of trade.

Karen's job as a bookkeeper is to receive, record & deposit checks for her company. She alters some checks making them payable to her so she can cash them and take the money that rightfully belongs to the company. Karen has: a. committed the crime of robbery. b. committed the crime of burglary. c. committed the crime of forgery. d. committed the crime of identity theft.

c. committed the crime of forgery.

The tort of intentional infliction of emotional distress includes: a. intrusion into private affairs. b. public disclosure of private facts. c. conduct that goes beyond all decency and produces mental anguish in the harmed individual. d. All of these are correct.

c. conduct that goes beyond all decency and produces mental anguish in the harmed individual.

Altman Enterprises is a manufacturer of home furnishings. They recently purchased 3 of their competitors which now gives them control of the home furnishing market. If they were to be found in violation of the Clayton Act, they might be given a divestiture order. What does that mean they have to do? a. cease and desist b. pay more taxes c. dispose of or sell off some of their interests d. inform their customers that they are now purchasing from a different company

c. dispose of or sell off some of their interests

The tort of assault is intentional conduct that threatens a person with: a. concurrent physical contact. b. embarrassment. c. fear. d. confinement without the person's consent.

c. fear.

Three of the Satellite television companies agree that they will not go any lower than $100 per dish per household. This is: a. vertical price maintenance. b. a horizontal group boycott. c. horizontal price fixing d. vertical market allocation.

c. horizontal price fixing

Section 2 of the Sherman Act prohibits: a. buying activities. b. selling activities. c. monopolizing activities or attempts. d. All of these are correct.

c. monopolizing activities or attempts.

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

c. negligence.

Under the Sunshine Act, meetings of many federal agencies are required to be: a. transcribed by a court reporter. b. held in secret, undisclosed locations. c. open to the public. d. presided over by the President.

c. open to the public.

Computer raiding is: a. theft of hardware. b. theft of software. c. taking information from a computer without the consent of the owner. d. using a computer network to trade stocks on the NYSE.

c. taking information from a computer without the consent of the owner.

Administrative agencies are governmental entities—other than courts and legislatures —having authority: a. to lay and collect taxes, duties, imposts and excises. b. to make an official decision upon the respective rights of the parties to a suit. c. to administer and implement legislation. d. to pay for the debts and common defense and general welfare.

c. to administer and implement legislation.

Mr. & Mrs. Owens have a pool in their backyard. During the summer the Owens always take a 3 week vacation to Hawaii leaving the pool in the care of a pool service. Several neighborhood teenagers, knowing the Owens are gone, go to the pool and swim every day. They always leave the place neat and clean and they never go inside the house. One day, the pool service worker catches them in the pool and calls the police. What tort would the teenagers most likely be guilty of? a. burglary b. strict liability c. trespass d. nothing because they did not enter the house nor did they do any damage to property

c. trespass

Amtech is a software developer and requires the purchase and use of the Amtech internet browser as a condition for purchasing its software. Amtech would most like be guilty of what? a. vertical price fixing b. monopolization c. tying d. boycott

c. tying

Money laundering involves financial transactions involving: a. newly minted currency just released from the Treasury. b. illegal profits from the dry cleaning industry. c. unlawful proceeds. d. All of these are correct.

c. unlawful proceeds.

It is only when the restraint of trade imposed is __________ that the courts will condemn it as unlawful. a. voluntary b. binding c. unreasonable d. interbrand

c. unreasonable

Justiss and a group of friends in a middle-school have created a Facebook account specifically to make fun of and bully people that they consider "nerds." One of the "nerds" that the Facebook page targeted tried to commit suicide, later saying that they felt bullied by the page. Can Justiss and the group be held criminally liable for things published on this Facebook page? a. They would not be criminally liable because it is not a crime to bully someone. b. They would only be criminally liable if there was one-on-one physical contact such as physically beating someone up. c. No states have made cyber-bulling a crime. Because it happened on-line, they are not criminally liable. d. Some states have passed specific statutes to make cyber-bulling a crime. They could be found liable in these states.

d. Some states have passed specific statutes to make cyber-bulling a crime. They could be found liable in these states.

The city of Pineview is demolishing its old high school and building a new one. The contractor building the new school has followed all safety requirements including posting notices, fencing in the area, and following all other city guidelines. Unfortunately, when digging the foundation, the contractor hits a main water line and floods several houses adjacent to the property doing approximately $2 million in damages to these homes. Under what type of tort would the contractor be responsible for these damages? a. none, they followed all the guidelines so they are not responsible. b. Intentional tort liability c. Negligence d. Strict Liability

d. Strict Liability

An administrative law judge for the Environmental Protection Agency decides a case against a manufacturer. Which of the following is correct regarding the hearing of the case by the administrative law judge? a. The rules of evidence will be strictly applied by the ALJ in deciding the case. b. There is no appeal from the decision of the ALJ. c. The ALJ will decide the case by having a jury trial. d. The ALJ may be authorized to make an initial determination without holding a hearing.

d. The ALJ may be authorized to make an initial determination without holding a hearing.

Commercial bribery is defined as: a. making, with fraudulent intent, a gift card for use in commercial transactions. b. a foreign corrupt practice that takes place only in countries other than the U.S. c. a surcharge that is added to commercial contracts under the UCC. d. an agent for another is paid or given something of value in order to make a decision on behalf of his principal that benefits the party paying the agent.

d. an agent for another is paid or given something of value in order to make a decision on behalf of his principal that benefits the party paying the agent.

Bryce tells Tony that unless Tony pays him $3,000, he will post details about Tony's fraud arrest in another state to Facebook. The fact that Tony was arrested for fraud is true. In most jurisdictions, what crime is Bryce committing? a. embezzlement. b. defamation. c. bribery. d. extortion.

d. extortion.

Strict liability is a type of tort that imposes liability without regard to: a. harm. b. danger. c. jurisdiction. d. fault.

d. fault.

The Clayton Act makes both the giving and receiving of __________ a crime. a. a discount b. preferential treatment c. monopoly d. illegal price discrimination

d. illegal price discrimination

Contributory negligence: a. has been adopted by most of the states. b. allows a comparison of negligence between plaintiff and defendant. c. has been held to be applicable in all states, regardless of the extent of the plaintiff's own negligence. d. is a bar to recovery under common law.

d. is a bar to recovery under common law.

Forgery is: a. knowingly giving false testimony. b. passing a check with insufficient funds. c. the fraudulent conversion of another property by a person to whom it has been entrusted. d. the fraudulent making or material altering an instrument to create or change legal liability of another person.

d. the fraudulent making or material altering an instrument to create or change legal liability of another person.

A robbery is: a. the wrongful or fraudulent taking of personal property. b. breaking and entering a dwelling during the night. c. the willful and malicious burning of another's dwelling. d. the taking of personal property from the presence of the victim by use of force or fear.

d. the taking of personal property from the presence of the victim by use of force or fear.

Embezzlement occurs: a. only in court. b. when a person knowingly gives false testimony. c. when a person fraudulently makes or materially alters an instrument to create legal liability for another person. d. when a person fraudulently converts another's property by a person to whom it has been entrusted.

d. when a person fraudulently converts another's property by a person to whom it has been entrusted.


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