EXAM 3 and FINAL EXAM
The following example is a result of a trade regulation rule: "Money Back" guarantee Child safety seats "Patent Pending" mark "Do Not Call" list "Gluten Free" stamp
"Do Not Call" list
For violations of the Fair Debt Collection Practices Act, in the absence of actual damages, the court may still order a collector to pay a debtor up to ______.
$1,000
The Video Privacy Protection Act prevents the disclosure of personally identifiable information concerning video rentals and includes a right of civil action with a minimum liquidated damages provision of ______.
$2,500
In 1991, depending on the size of the employer, Congress amended the Civil Rights Act to allow the recovery of compensatory and punitive damages per person of up to ______.
$300,000
An employee is eligible to qualify for the Family and Medical Leave Act benefits if the employee has worked at least
1250 hours during the previous 12 months
The Age Discrimination in Employment Act recognizes both disparate treatment and disparate impact discrimination for employers with ______.
20 or more employees
The Age Discrimination in Employment Act forbids age-based discharge of employees over age
40
The ______, passed by the European Parliament in 1995, mandates that companies may collect personal information only with consent, keep it only as long as necessary, and transfer to third parties only with permission.
Data Protection Act
The concept of hiring employees for an indefinite period of time and discharging them without cause at anytime is called the __________.
Employment at will doctrine
DrakeAuto Corp. is an automobile dealer that offers flexible payment plans for its customers. However, DrakeAuto requires its customers over 60 years of age to make the payment in full because "These people could die at any time." In this case, DrakeAuto violates the ______.
Equal credit opportunity act
Investigating agencies use the _________ to measure market concentration and determine the impact of a proposed merger.
HHI
A defendant may enter a nolo contendere plea for which of the following reasons? A. To give the defendant the advantage of avoiding the cost of trial. B. So the defendant may be excused from a jail sentence. C. Because it is a plea of absolute contest. D. It allows sentencing as if the defendant pleaded not guilty. E. To allow the defendant to simultaneously defend a civil and a criminal suit.
a
Infro Inc. is a major lender. It plans to include the zip codes of its customers as a major factor when offering loans. This allows Infro to reduce the amount of risk it takes by not providing loans in certain areas where property values are low. In this case, which of the following statements is true? A. If Infro goes through with its decision, it is engaging in redlining. B. If Infro goes through with its decision, it is engaging in inclusionary zoning which is legal. C. Before Infro implements its decision, it must obtain permission from the Federal Trade Commission to do so. D. Before Infro implements its decision, it must specify the minimum average property value a person must have before applying for a loan. E. The decision of Infro is legal under the provisions of the Equal Credit Opportunity Act.
a
One limitation of the Electronic Communications Privacy Act is that ___________ A. it allows for the interception of business communications on an employer's equipment. B. it permits the interception of unsecured wi-fi communications. C. it does not apply to the privacy of communications stored on a server. D. it protects all personally identifiable information, which limits business activities. E. it allows the interception of emails by another without authorization.
a
Regarding the internship programs under the Fair Labor Standards Act (FLSA), which of the following statements is true? A. The internship is similar to training given in an educational environment. B. The intern generally displaces regular employees. C. The intern is entitled to wages for the time spent in the internship. D. The intern is entitled to a job at the conclusion of the internship. E. The employer that provides the training derives an immediate advantage from the activities of the intern.
a
The use of sole proprietorships is very limited because A. multiple owners cannot create a proprietorship. B. there is no formal documentation process for its creation. C. it is the most expensive business organization to create. D. it gives limited control to the proprietor. E. it is the hardest business organization to create.
a
Under Section 1981, ______. A. a plaintiff cannot sue for unlimited damages for discrimination based on sex, religion, national origin, or age B. a plaintiff must first go through the Equal Employment Opportunity Commission to file an employment suit C. a plaintiff is prohibited from suing under Title VII of the Civil Rights Act D. the courts can place capped limits on compensatory and punitive damages E. the courts can award compensatory and punitive damages up to a maximum of $100,000 per offence
a
Under the Resource Conservation and Recovery Act, a generator of wastes is obligated to A. determine whether its wastes qualify as hazardous. B. provide on-site disposal of the waste. C. reduce production of new chemicals. D. pay punitive and speculative damages to the aggrieved party. E. determine if a nonlisted waste is hazardous in terms of the chemical characteristics specified by the Solid Waste Disposal Act.
a
Wayside Academy is a private school in Mountain State. Wayside employs 50 teachers and 5 aides who all lived locally to run the school and the associated programs all year. Emile worked as a full-time aide in 2015 from January to March, but lived over 100 miles away so he quit. He moved to the local area and was rehired in October 2015. In August 2016 Emile requests to take paternity leave, starting immediately, under the Family and Medical Leave Act. Is Emile an eligible employee and is Wayside a covered employer under the FMLA? A. Emile is an eligible employee but Wayside is not a covered employer. B. Emile is an eligible employee and Wayside is a covered employer. C. Emile will be an eligible employee in October 2016, but Wayside is a covered employer. D. Emile is not an eligible employee and Wayside is not a covered employer. E. Emile is not an eligible employee but Wayside is a covered employer.
a
Which of the following holds true for the Internal Revenue Service (IRS) Whistleblowers Rewards Program? A. The whistleblower may receive compensation only from monies actually collected based on the information provided. B. The total collected proceeds based on which the reward is calculated exclude penalties, interest, additions to tax, and additional amounts. C. Under no circumstances does the IRS have the right to lower the amount of the reward given to the whistleblower. D. The reward to the whistleblower is independent of his contribution to the prosecution of the action. E. To be eligible to recover compensation from the IRS, a person must bring information to the Department of Justice.
a
Which of the following is essential if limited partners are to be assured of their limited liability? A. substantial compliance with all the technical requirements of the limited partnership law B. inclusion of a limited commerce clause in the partnership agreement C. signing an agreement according to the limited liability law to dissolve a partnership whenever a member withdraws D. using a limited partner's surname in a partnership's name E. participation in an organization's management
a
Which of the following is true of the Occupational Safety and Health Administration (OSHA)? A. It ensures all workers a safe and healthy work environment. B. It administers all laws relating to water pollution, air pollution, solid wastes, pesticides, and toxic substances. C. It administers laws to prohibit distribution of adulterated, misbranded, or unsafe food and drugs. D. It protects the public against unreasonable risks of injury associated with consumer products. E. It regulates civil aviation to provide safe and efficient use of airspace.
a
Which of the following statements about the Age Discrimination in Employment Act (ADEA) is true? A. It invalidates retirement plans and labor contracts that violate the law. B. It applies to employers with 15 or more employees. C. The Civil Rights Act contains protections similar to the ADEA against discrimination based on age. D. It allows companies to subject "bona fide" executives to mandatory retirement policies under certain conditions. E. It allows for mandatory retirement policies for individuals 65 years and older.
a
Which of the following statements holds true for the manifest system of hazardous waste disposal? A. It requires the generator to prepare a manifest document that designates a licensed facility for disposal purposes. B. It prescribes various record-keeping requirements that manifest waste disposal. C. It assesses penalties for failure to comply with the provisions of the Resource Conservation and Recovery Act (RCRA). D. It refers to the software packages used for aggregating data for optimization of operations for waste collection. E. It obligates the generator to determine whether its wastes qualify as hazardous under the manifest system.
a
Which of the following statements is true of a seller? A. It refers to anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur. B. It refers to anyone who prepares the registration statement and prospectus for securities involved in a sale. C. It refers to a person who is in possession of an article and is responsible for returning the article safely to the owner once the contract is fulfilled. D. It refers to anyone who controls or is controlled by the issuer, such as a major stockholder of a corporation. E. It refers to the individual or business organization offering a security for sale to the public.
a
Which of the following statements is true of an employer in case an employee is on family medical leave? A. The employer may request a medical certification that a qualifying event has occurred in the employee's life. B. The employer should ensure that the employee is supposed to be disadvantaged by the fact that the leave was taken. C. The employer is entitled to review the actual medical records of the employee. D. The employer should refrain from awarding bonus to employees for perfect attendance who were granted leaves under the Family and Medical Leave Act (FMLA). E. The employer can rescind the employee's job contract when the employee returns to work.
a
Which of the following statements is true of the Toxic Substances Control Act (TSCA)? A. The law authorizes the Environmental Protection Agency (EPA) to require manufacturers to test their chemicals for possible harmful effects. B. The TSCA was passed in the year 1950 with the guidelines given by the Federal Environmental Pesticide Control Act. C. The TSCA is like the Clean Air Act, which requires that certain pollution standards be met without regard for economic factors. D. The TSCA demands that the EPA is not given advance notice of manufacture of new chemicals. E. The primary purpose of the TSCA is to provide technical and financial assistance to all states in implementation of the Act.
a
In which of the following types of employer action is discrimination permitted? promoting compensating refusing to hire actual hiring discharging
actual hiring
The ______ function of an administrative agency involves both fact-finding and applying law to the facts.
adjudicating
Which of the following is not a responsibility of the Environmental Protection Agency? administer state pollution laws assist state governments in controlling pollution advise the Council on Environmental Quality on new policies gather information on present pollution problems conduct research on the harmful impact of pollution
administer state pollution laws
The ______ requirement means that federally contracting employers must actively recruit members of minority groups being underused in the workforce.
affirmative action
Isla, a manager at a casino, assists a group of people to rob the place by drawing a floor plan of the casino. Isla did not take part in the actual robbery. Isla could be most likely found guilty of ______.
aiding and abetting
If a person acts under the direction of someone accused of criminal activities, this person might be guilty of ______.
aiding and abetting others
A corporation created under the authority of a foreign country may be called a(n) ______.
alien corporation
The ______, by which the corporate veil can be pierced, may also be used to impose personal liability upon corporate officers, directors, and stockholders.
alter-ego theory
Secrecy of the grand jury system protects
an innocent accused from disclosure of the accusations made against him or her
The damages of a defrauded purchaser of securities___________________________
are actual out-of-pocket losses
According to the Age Discrimination in Employment Act, who among the following are subject to mandatory retirement policies? A. high-level policy makers aged 50 and older who are entitled to receive annual retirement benefits of at least $50,000 a year B. high-level policy makers aged 65 and older who are entitled to receive annual retirement benefits of at least $44,000 a year C. bona fide executives aged 50 and older who are entitled to receive annual retirement benefits of at least $34,000 a year D. bona fide executives aged 60 and older who are entitled to receive annual retirement benefits of at least $34,000 a year E. any employee aged 60 and older who is entitled to receive annual retirement benefits of at least $60,000 a year
b
An environmental impact statement A. must include technical jargon for better understanding of the statement. B. must include available alternatives to the proposed action. C. must include economic profits that can be guaranteed from the organization's action. D. must include a statement of any reversible use of resources. E. must be included in most recommendations or reports on proposals for legislation affecting the environment.
b
Before the Equal Employment Opportunity Commission can file a civil suit for a violation of the Civil Rights Act based on a claim by a discriminated employee, it must first A. ensure that the violation has occurred for at least a period of three weeks. B. exhaust efforts to settle the claim. C. wait for a period of at least two weeks for the employer to take corrective actions. D. determine that no racial discrimination has occurred. E. wait for a period of at least three weeks for the state to take corrective actions.
b
GVB Inc., a consulting firm, hires Zainab, who is a Muslim. In order to avoid discriminating against Zainab based on her religion, GVB A. must make work-related adjustments to suit her religious needs even if they create undue hardship. B. must make reasonable accommodation to her religious needs. C. must notify the union as Zainab belongs to a religious minority community. D. need not accommodate her religious needs as religious discrimination suits only apply to religious corporations. E. must do whatever it takes in order to avoid any discussion on the topic of religion.
b
If a bank assumes ownership of a piece of contaminated land A. the previous owner will be solely responsible for the cleanup. B. the bank becomes a responsible party. C. the bank is withheld from selling the land due to its contaminated status. D. the bank can re-sell the property without any liability for cleanup. E. the future owner will be solely responsible for the cleanup upon its sale to the future owner.
b
If an employee's tips combined with the cash wage is inconsistent with the minimum hourly wage, ______. A. the employee is entitled to be paid for the inconvenience caused along with the difference, with certain conditions B. the employer must make up the difference with certain conditions C. the employee is entitled to work for a reduced number of hours D. the federal government must make up the difference E. the employer is not liable to pay the difference if he or she reduces the number of working hours for the employee
b
In a bankruptcy proceeding, which of the following classes of bankruptcy creditors will receive highest priority? A. employees who are owed wages earned within 180 days of the bankruptcy petition B. spouse, former spouse, child, or guardian with claims for domestic support C. consumers who have paid deposits or prepayments for undelivered goods or services D. government tax claims E. general creditors
b
In a bankruptcy proceeding, which of the following classes of bankruptcy creditors will receive the lowest priority? A. creditors with claims that occur in the ordinary course of the debtor's business after a bankruptcy petition has been filed B. one who is injured from a motor vehicle operated by a debtor while he was intoxicated C. consumers who have paid deposits or prepayments for undelivered goods or services D. creditors with claims that arise from the costs of preserving and administering the debtor's estate E. employees who are owed wages earned within 180 days of the bankruptcy petition
b
The Consumer Financial Protection Bureau's authority applies to A. insurance companies. B. banks that extend credit loans. C. businesses regulated by the Securities and Exchange Commission. D. persons regulated by the Securities and Exchange Commission. E. Internet service providers.
b
The Health Insurance Portability and Accountability Act (HIPAA) has four main components, one of them is that it A. ensures that elderly and needy individuals receive proper medical care. B. provides that employees may continue to purchase health insurance even after their employment is terminated. C. exempts health insurance companies from the federal anti-trust legislation that applies to most businesses. D. calls for the creation of a universal single-payer health care system in the United States.
b
The following statement is true of an underwriter: A. It refers to anyone who contracts with a purchaser or who is a motivating influence that causes the purchase transaction to occur. B. It refers to a person who participates in the original distribution of securities by selling such securities or guaranteeing their sale. C. It refers to anyone who prepares the registration statement and prospectus for securities involved in a sale. D. It refers to the individual or business organization offering a security for sale to the public. E. It refers to anyone who controls or is controlled by the issuer, such as a major stockholder of a corporation.
b
The registration statement to be filed with the Securities and Exchange Commission (SEC) includes A. an annual report on the activities of an organization distributed among its stakeholders. B. a detailed disclosure of financial information about the issuer and the controlling individuals involved in the offering of securities for sale to the public. C. a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. D. statements which allow the holder to buy securities at a specified price within a designated time limit. E. statements that show ownership of a bond, stock or other security.
b
Which of the following is the basic difficulty of owning a minority interest in a closely held corporation? A. Stockholders with a minority interest have no rights in a closely held corporation. B. There is no ready market for the minority stock should a shareholder desire to dispose of it. C. Minority shareholders have unlimited personal liability for the obligations of a closely held corporation. D. Minority shareholders risk losing more than their investment amount. E. Buy and sell agreements to own a minority interest are not allowed in a closely held corporation.
b
Which of the following is the disadvantage of the corporate form of organization? A. The organization cannot have perpetual existence. B. Corporate income may be subject to double taxation. C. Control of a corporation may be held by those with a minority of the investment. D. Shareholders' liabilities are limited to their investments. E. Ownership may be divided into many unequal shares.
b
Which of the following statements is true of a general partnership? A. All partners in a general partnership have only limited liability for their organization's debts. B. Each partner in a general partnership has an equal voice in the firm's affairs. C. Unlike proprietorships, partnerships are taxable entities. D. A general partnership must have at least one controlling partner. E. A general partnership is not dissolved if there is a change in the partners.
b
Which of the following statements is true of benefit corporations? A. They combine the positive aspects of a limited liability company and a partnership to form an organization that is designed to give the maximum profits to the owners of the organization. B. They combine aspects of non-profit and profit organizations in a way intended to permit a business to make a profit while pursuing explicit, socially oriented goals. C. They are the only type of corporation not treated as individuals. D. They are not treated as taxable entities even though they have shareholders. E. They are formed through the use of deferred prosecution agreements.
b
Which of the following statements is true of the functionality of agencies providing services? A. Welfare programs are run easily without being administered by the government. B. Social Security programs necessitate that there be a federal agency to determine eligibility and pay benefits. C. Government agencies often stand as a substitution for competition. D. The mere existence of most government programs hardly creates any new agency or expands the functions of an existing one. E. Agencies that function to provide services are created out of sheer manpower rather than necessity.
b
Which of the following statements is true of the problem of solid wastes? A. The Clean Air Act is inapplicable in cases where solid wastes have been burned. B. Landfills are the primary disposal sites for most household and business solid wastes. C. Half of all solid waste produced in the U.S is industrial waste. D. Solid waste pollution problems have decreased during the last 25 years. E. Residential waste is the highest contributor of solid wastes in the U.S.
b
Which of the following steps if taken by an employer to address allegations of discrimination will trigger a retaliation claim? A. Ensure employees know and follow the company's policies on discrimination, including harassment. B. Move employees who make discrimination claims to alternate shifts without a reduction in pay. C. Have a written policy prohibiting discrimination and specifying reporting procedures. D. Treat complaints seriously as soon as they are made. E. Investigate the complaint.
b
With regards to an S corporation which of the following statements if true? A. It is the official designation for a corporation with less than 500 employees. B. It does not pay any taxes. C. It is the least expensive form of organization to create. D. It must have more than 100 shareholders. E. It need not file an information return with the Internal Revenue Services since it does not pay any taxes.
b
Steve has been trying hard to get a certain building contract for his company. He talks to the government official who is managing the building contract allotment. Rico promises the official a 'treat' if he directs the contract to Rico's company. Rico can be found guilty of ______.
bribery
Despite the advantages, there is some concern that the overuse of deferred prosecution agreements could A. reduce the number of sole proprietorships formed in the country. B. restrict the rights of minority shareholders in limited liability companies. C. lead to an overly lenient environment for addressing corporate malfeasance. D. reduce the attractiveness of forming a limited liability partnership. E. lead to an environment where corporations are treated unfairly.
c
Ellen received health insurance through her employer. One year later she was diagnosed with cancer and underwent treatment. The insurance company believed it would be too expensive to insure her and rescinded her coverage. She may bring a claim against the insurance company because of the provisions of the ____________ A. Family Medical Leave Act (FMLA). B. Uniformed Services Employment and Reemployment Rights Act (USERRA). C. Health Insurance Portability and Accountability Act (HIPAA). D. Occupational Safety and Health Act (OSHA). E. Fair Labor Standards Act (FLSA).
c
In regards to blue sky laws the following statement is true: A. The laws only apply to securities subject to federal law, not to those securities exempt from the federal statutes. B. The laws are commonly known as the antifraud laws as per the Securities Act of 1934. C. The federal laws do not preempt the existence of state blue sky laws. D. The laws were established as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. E. The method of regulation is uniform and same across all the states.
c
In the context of false advertising laws, state law A. uses remedies such as corrective advertising to accompany some of its orders, which is an option not available under the Federal Trade Commission Act. B. ignores material claims in deceptive advertising unlike the Federal Trade Commission Act. C. may allow for private lawsuits in addition to government enforcement, which is an option not available under the Federal Trade Commission Act. D. ignores express claims made in deceptive advertising unlike the Federal Trade Commission Act. E. only prosecutes violators who make implied claims in their advertising unlike the Federal Trade Commission Act.
c
Registration by notification A. is required by those issuers who lack a proven record and who are beyond the scope of Securities Act of 1933. B. is required for those issuers of securities who must register with the Securities and Exchange Commission (SEC) and the duplicate documents are filed with the state's administrative agency. C. allows issuers to offer securities for sale automatically after a stated time period expire unless the administrative agency takes action to prevent the offering. D. refers to the quality certification process in which an independent and accredited quality auditor conducts an on-site audit of a firm. E. refers to documents filed with the Securities & Exchange Commission (SEC) by a privately held company, declaring its intent to offer shares of its stock to the general public.
c
Scoping, a regulatory guideline to aid the environmental impact statement, involves ____________________________. A. preparing informal impact statements that will address environmental issues regarded as most important B. specifying a backup plan should a contemplated action cause unforeseeable damage C. designating which environmental issues of a contemplated action are most significant D. estimating the specific population that a contemplated action will affect E. designating specific geographic areas that a contemplated action will affect
c
The 1991 revision of the Civil Rights Act to support punitive and compensatory damages has A. made it possible for courts to award unlimited damages. B. reduced the effectiveness of the Equal Employment Opportunity Commission. C. encouraged employees to sue their employers. D. nullified the business necessity defense. E. reduced the number of discrimination suits against employees.
c
Tyrell opens a men's only weight loss center. The center has 20 employees of which four employees are women who do overnight maintenance work when the center is closed. Tyrell places an advertisement online for a weight loss counselor, and Leah applies for the job. Tyrell rejects Leah's application on the basis of gender. Leah files a discrimination charge against Tyrell with the Equal Employment Opportunity Commission. Which of the following statements is true in this scenario? A. Leah is entitled to compensatory damages but not punitive damages if she can show that she is capable of doing weight loss counselor functions. B. Women are underrepresented at the center, and affirmative action requires that Tyrell hire Leah. C. Tyrell can defend his case by showing that being male is a bona fide occupational qualification for the job. D. Tyrell has not violated the Equal Employment Opportunity Act, but he still has to pay compensatory damages to Leah for misrepresentation. E. Tyrell can use the disparate impact defense to win the suit.
c
Under the Fair Labor Standards Act (FLSA), the overtime pay for workers is A. decided by the employer after mutual consent and agreement with the workers. B. a rate that is equal to the employer's regular rate of revenues. C. a rate not less than one and one-half times the employee's regular rate of pay. D. a rate that is lower than the minimum wage. E. variable depending upon the particular job involved.
c
Which of the following acts is directed at protecting employees' health care? A. the Family Medical Leave Act (FMLA) B. the Worker Adjustment and Retraining Notification (WARN) Act C. the Consolidated Omnibus Budget Reconciliation Act (COBRA) D. the Fair Labor Standards Act (FLSA) E. the Employment Retirement Income Security Act (ERISA)
c
Which of the following is an advantage of the corporate form of organization? A. A corporation need not be qualified in all states where it is conducting local or intrastate business. B. The cost of forming and maintaining a corporation is minimal. C. Control of a corporation may be held by those with a minority of the investment. D. License fees and franchise taxes are not assessed against corporations. E. Corporate income is not subject to double taxation.
c
Which of the following is true when determining the taxation of a business organization? A. Double taxation cannot be avoided by selecting a different form of organization. B. There are no advantages when an organization is subject to the single tax. C. A single tax is not always better than a double tax. D. Taxation is never a critical factor when selecting the form of a business organization. E. There are no advantages when an organization is subject to the double tax.
c
Which of the following statements is true of embezzlement? A. It excludes the appropriation of funds for personal use by an employee from an employer. B. It is hardly committed by highly trusted employees with access to cash or to the check-writing process. C. It is a crime easily committed when there is a lack of internal control over funds. D. It can increase the chances of more similar frauds if cosigned checks are used. E. It refers to making payments to a person who has facilitated a criminal transaction.
c
Which of the following statements is true of the Federal Insecticide, Fungicide, and Rodenticide Act? A. It takes into account the economic and environmental costs and benefits of the use of any pesticide, but neglects the social impact. B. It requires the licensing of operators using pesticides. C. It requires the registration and labeling of agricultural pesticides. D. It prohibits the use of pesticides near schools. E. It applies to pesticides that U.S. manufacturers ship to foreign countries.
c
Which of the following statements is true of the Uniformed Services Employment and Reemployment Rights Act (USERRA)? A. Employers may retaliate against anyone assisting in the enforcement of USERRA rights, provided that person has no service connection. B. It applies to all individuals released from service irrespective of whether it was under "honorable conditions" or "dishonorable conditions." C. The USERRA also contains health insurance provisions. D. Covered individuals who leave a job to perform military service are barred from continuing any existing employer-based health plan coverage. E. For individuals who elect to continue existing employer-based health plan coverage, they have the right to be reinstated in the employer's health plan when reemployed.
c
In a closely held corporation, the majority shareholders
can control election of a board of directors
The Federal Reserve Board (FRB) found that Parson Inc., a newly established financial company, had violated banking laws. The company was involved in transactions that were prohibited by the United States government. Along with imposing a hefty fine, the FRB issued an order on Parson to stop the nature of such objectionable transactions and ordered the firm to refrain from indulging in such transactions in the future. This order is an example of a(n) ______. commission order preliminary order consent order assignment order cease and desist order
cease and desist order
Which of the following is an order that an agency imposes on a violator to stop an objectionable activity and refrain the violator from any further violations? assignment order consent order commission order preliminary order cease and desist order
cease and desist order
Which of the following terms denotes the rights that protect individuals from the power of the government, including individuals accused of crimes?
civil liberties
A place of employment that requires a person to be a union member before applying for a job is said to be a(n) ______.
closed shop
A(n) ______ is one in which the businesses involved neither compete nor are related as customer and supplier in any given line of commerce.
conglomerate merger
As a creature of state legislative bodies, a ______ is much more complex to create and to operate than other forms of businesses.
corporation
A polygraph test may be legally used_____________________________. A. by public security companies to test both job applicants and current employees B. when senior employees are being transferred to a different department within a firm C. by most public employers to screen job applicants D. by most private employers to check current employees because of a specific incident that caused economic injury to the employer's business E. when all public employers are screening job applicants
d
Aaron enters Stevenson's Supermarket and takes a loaf of bread from the shelf. He walks out of the store without paying for it. Which of the following is true of this situation? A. Aaron is guilty of robbery. B. Aaron is guilty of theft by deception. C. Aaron is guilty of burglary. D. Aaron is guilty of larceny. E. Aaron is guilty of embezzlement.
d
Aaron works as a manager at Chuy's, a restaurant in Austin, Texas with 70 other employees. He has been working there full time for 22 months. One day his wife calls with some bad news. His father-in-law has been severely injured in a car accident while returning from work. Aaron asks his employer for leave under the Family Medical Leave Act (FMLA). In this scenario, which of the following statements is true? A. Aaron is not entitled to the leave because the number of hours he has worked during the preceding 12 months is less than what is required by the act. B. Granting the leave is entirely at the discretion of the employer, who can deny the leave request if it would disrupt business.. C. Aaron is not entitled to the leave because the provisions of the FMLA Act apply only to females. D. Aaron is not entitled to the leave because his father-in-law does not qualify as an immediate family member. E. Aaron is entitled to take leave to care for his father-in-law.
d
Administrative law judges are A. organizationally integrated with the rest of the agency. B. responsible for the minutes of agency meetings and are legal custodians of its records. C. excluded from hearing cases of alleged law violations. D. employed by the agency that is in charge of hearing the initial presentations. E. intermediaries between regulators and those being regulated.
d
Arrow, Inc.'s steelworkers are unionized. The steelworkers want increased wages. When Arrow refuses to bargain on wages, they vote to strike. This strike has the potential to paralyze the entire steel industry. Which of the following statements is true under the Taft-Hartley Act? A. The steelworkers union cannot strike if Arrow gives them a reason for not increasing their wages. B. The steelworkers would be held guilty of precipitating a state of national emergency. C. A cooling-off period would not be applicable in this situation. D. An 80-day cooling-off period may apply in this situation. E. The steelworkers have violated the Taft-Hartley Act by striking for an increase in wages.
d
Business often fails to regulate itself, and the lack of self-regulation is contrary to the public interest. To counterbalance, administrative agencies exist to A. refer the problem or area to experts for solution and management. B. provide services that have arisen out of necessity. C. develop detailed rules and regulations to carry out the legislative policy. D. protect the public, especially from the business community. E. replace competition with regulation.
d
Choose the statement below that is true of administrative agencies? A. Administrative agencies that issue rules having the impact of laws are called quasi-judicial agencies. B. Administrative agencies license and regulate intrastate transportation. C. State and local governments do not have administrative agencies. D. They are organizations created by the legislature to serve a specific purpose. E. Administrative agencies with quasi-executive authority make decisions like a court.
d
For the Department of Interior, the Endangered Species Act is administered by the A. Federal Insecticide, Fungicide, and Rodenticide Act of 1947. B. Federal Environmental Pesticide Control Act of 1972 (FEPCA). C. Environmental Protection Agency (EPA). D. Fish and Wildlife Services and the National Marine Fisheries Services. E. Toxic Substances Control Act.
d
Regarding an environmental impact statement (EIS), which of the following statements is true? A. the National Environmental Policy Act requires federal agencies to follow the conclusions of the EIS. B. an EIS is optional for recommendations or reports on proposals for legislation and other major federal actions significantly affecting the quality of the human environment. C. an EIS can be in any language as long as it is clear and to the point. D. the EIS is a detailed statement that makes an estimate of the environmental impact of the proposed action. E. an EIS should include technical jargon to clearly explain all the points mentioned in the statement.
d
Under the Superfund law, a purchaser of land may escape the liability to clean up hazardous wastes by A. suing the land seller for the hazardous wastes left by the seller. B. informing the government of any hazardous wastes in the land. C. pleading ignorance to the knowledge of the act. D. proving the use of due diligence in checking the land for toxic hazards. E. fixing responsibility on the previous owner of the land.
d
Which federal agency promotes dependable, affordable energy through sustained competitive markets? A. the Federal Reserve Board (FRB) B. the Federal Trade Commission (FTC) C. the Equal Employment Opportunity Commission (EEOC) D. the Federal Energy Regulatory Commission (FERC) E. the Federal Communications Commission (FCC)
d
Which of the following federal agencies protects the public from anticompetitive behavior and unfair and deceptive business practices? A. the Consumer Product Safety Commission (CPSC) B. the National Labor Relations Board (NLRB) C. the Federal Reserve Board (FRB) D. the Federal Trade Commission (FTC) E. the Equal Employment Opportunity Commission (EEOC)
d
Which of the following is not a major provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010? A. limiting U.S. loans to foreign governments unlikely to repay B. providing financial assistance to overcome the mortgage crisis C. enhancing consumer protection D. encouraging investment in start-up business by easing federal regulations E. regulating hedge funds
d
Which of the following specifically prohibits the race norming of employment tests? A. the Rehabilitation Act amendments of 1973 B. the Americans with Disabilities Act amendments of 2008 C. the Equal Pay Act amendments of 1963 D. the Civil Rights Act amendments of 1991 E. the Lilly Ledbetter Fair Pay Act amendments of 2009
d
Which of the following statements is true of corporations? A. A corporation's organizational structure changes whenever a shareholder sells his or her stock. B. The law treats a corporation's existence in tandem with its owners' status as shareholders. C. Corporations do not have to pay income taxes on their profits. D. In contrast to a partnership, corporations are usually formed to have perpetual existence. E. In comparison with proprietorships, corporations are easier to form.
d
Which of the following statements is true of the Comprehensive Environmental Response, Compensation, and Liability Act? A. It provides a statement of revenues generated from organizations making healthy use of natural resources. B. It levies punitive damages up to five times of the cleanup costs. C. It supersedes international pollution control laws. D. It imposes strict liability on those responsible for unauthorized discharges of hazardous wastes. E. It mandates notification for authorized release of hazardous substances.
d
Which of the following statements is true of the Sarbanes-Oxley Act? A. The act requires the auditors to have a close working relationship with the company's CFO, accounting staff, and other company officials. B. The act is inapplicable to public companies. C. The act focuses on lessening the responsibilities of the auditors. D. The act mandates the certification of internal financial controls.
d
Which of the following statements is true of the Truth-in-Lending Simplification Act? A. It eliminates the need for model disclosure forms issued by the government. B. It restricts state laws from allowing private lawsuits against deceptive advertisements. C. It prohibits companies from the practice of redlining. D. It restricts statutory penalties to failures to disclose credit terms that are of material importance in credit comparisons. E. It requires statutory penalties to be based purely on technical violations of the act.
d
White-collar crime can be detrimental to a business so some major corporations have ______________ in order to combat the effects of criminal activity.
developed ethical codes and compliance programs
Administrative agencies are needed to provide all of the following except_______. specificity discretion expertise protection services
discretion
Matt, a supervisor, refuses to let female employees work on overtime assignments because he thinks it is unsafe for women to work after 6 p.m. The female employees decide to file a charge against Matt with the Equal Employment Opportunity Commission. This case is an example of ______.
disparate impact
Louise Bouton, a designer and manufacturer, sells luxury shoes to stores across the nation including Lordstorms. Louise entered a contract with Lordstorms to price her shoes higher than any other shoes in the store and forced Lordstorms to lower the prices of similar luxury shoes. If a competitor files suit they would most likely allege Louise and Lordstorms engaged in a A. tying agreement in violation of the Clayton Act. B. horizontal agreement in violation of the Sherman Act. C. licensing agreement violating the Clayton Act. D. reciprocal dealing agreement violating the Clayton Act. E. vertical agreement in violation of the Sherman Act.
e
One advantage of a partnership is that A. each partner's liability is unlimited. B. it is dissolved anytime a partner ceases to be a partner, regardless of whether the reason is withdrawal or death. C. partners are taxed on their share of the partnership's profits, whether the profits are distributed or not. D. only a limited number of persons can be partners. E. it may operate in more than one state without obtaining a license to do business.
e
Opinion research indicates that the public's highest concern regarding regulation of industry is A. the transfer of toxic materials to developing countries. B. land encroachment in national parks. C. movement of industry to less-regulated countries. D. expansion of industry into protected areas. E. control of toxic and hazardous chemicals.
e
Regarding the Pregnancy Discrimination Act, the following statement is true: A. if a female employee is pregnant, her employer must specify how long a leave of absence must be taken after childbirth. B. an employer that provides childbirth benefits to married women may deny the same to single mothers if the employer finds single motherhood morally objectionable. C. an employer's plan that covers childbirth for female employees can exclude coverage for wives of male employees. D. if a female employee undergoes an abortion, all other benefits provided for employees, such as sick leave, can be denied to her. E. an employer is required to provide coverage for abortion if an employee carries to term and her life is endangered
e
The court may prevent a debtor from discharging any debts if it finds that the debtor engaged in any of the following except __________ A. refusing to obey court orders. B. falsifying books of record. C. receiving money, often because of a good job, that will enable the debtor to pay off the debt. D. concealing property. E. discharging debt in bankruptcy more than ten years ago.
e
Under the Employee Polygraph Protection Act, ______. A. employers cannot be sued by employees for violating the act B. private employers are permitted to use lie detector tests while screening job applicants C. private security companies are prevented from using lie detector tests while screening job applicants D. current employees are refrained from being tested even in cases involving distinct incidents that cause loss to an employer's business E. current employees may not be tested randomly but may be tested as a result of a specific activity that causes an economic loss to the employer
e
Under the Sherman Act the following statement is true: A. he Sherman Act covers only goods, including those created by trade professions. B. an action is not considered to be price fixing if the prices fixed are fair or reasonable. C. maximum-price agreements are illegal, while minimum-price agreements are not illegal. D. price fixing in the service sector is permitted under the Sherman Act. E. the Sherman Act applies to both the sale of goods and the sale of services.
e
Under the Solid Waste Disposal Act, the federal role in nontoxic waste management is to A. provide strict guidelines to landfill composition. B. waive standards regarding other pollution that arises as a result of solid waste management. C. grant tax breaks for industries using recycled materials. D. provide for the storage, transfer, and disposal of non-toxic waste material. E. promote research and provide technical and financial assistance to the states.
e
Which of the following holds true for the Fair Labor Standards Act? A. It prohibits discharge to prevent employees from getting vested pension rights. B. It forbids discharge of employees for service on federal grand or petit juries. C. It forbids age-based discharge of employees over age 40. D. It prohibits discharge of employees due to garnishment of wages for any one indebtedness. E. It forbids discharge for exercising rights guaranteed by minimum wage and overtime provisions of the act.
e
Which of the following is a taxable entity? A. a sole proprietorship B. a limited liability company C. a limited liability partnership D. a partnership E. a corporation
e
Which of the following is true of the Occupational Safety and Health Administration (OSHA)? A. Employees making complaints who are subjected to discrimination are prohibited from filing a complaint with OSHA. B. OSHA boycotts the principles of the Severe Violator Enforcement Program (SVEP). C. An employee can sue an employer for damages based on an OSHA violation. D. Employees are refrained from having the right to request an OSHA inspection. E. The private cause of action is absent under OSHA.
e
Which of the following statements is true of a consent order? A. It excludes organizations and nonprofit organizations in its scope. B. It is commonly known as a commission order. C. It is extremely expensive in comparison to other types of orders. D. It orders that a violator stop the objectionable activity and refrain from any further similar violations. E. It requires that the accused individual admit to the jurisdiction of an agency and waive all rights to seek a judicial review.
e
Which of the following statements is true of monopoly power? A. Monopoly power, which exists because of a patent or franchise, violates the Clayton Act. B. Mere possession of monopoly power violates Section 1 of the Sherman Act. C. If a firm engages in conduct that has the effect of extending its monopoly power, it does not violate the Sherman Act. D. If monopoly power is thrust upon a firm, there is a violation Section 2 of the Sherman Act. E. Proof of monopoly power alone is insufficient to qualify as a violation of the Sherman Act.
e
Which of the following statements is true of private citizens? A. They cannot sue polluters directly to force them to cease violating environmental laws. B. They cannot sue offending polluters under tort theories of strict liability and negligence as these theories are not established. C. They can sue businesses, but not the government, to enforce rules under environmental statutes like the Clean Air Act and the Clean Water Act. D. They can report violations of environmental law to the Environmental Protection Agency (EPA), but cannot act directly. E. They can sue public agencies, like the Environmental Protection Agency (EPA), to force the adoption of regulations.
e
Which of the following statements is true of short-swing profits? A. Short-swing profits refer to any profits made by insiders who buy and sell company stock within a three-month time period. B. The short-swing profits rule of Section 16 depends on misuse of information. C. Short-swing profits are calculated on the highest price in and the lowest price out during any fiscal period. D. The short-swing profits policy takes into consideration order of purchase and sale in determining its legality. E. Short-swing profits refer to those profits that have been made within a six-month time period.
e
Which of the following statements is true of the Resource Conservation and Recovery Act (RCRA)? A. The RCRA accomplishes proper disposal of hazardous wastes through the point-source system. B. The RCRA is exempted from the Environmental Protection Agency (EPA) from maintaining any records or a penalty system for failure to comply with the provisions of the act. C. The RCRA was created primarily to provide financial assistance to local governments. D. The RCRA lacks investigatory powers but maintains executory powers. E. The RCRA moves the handling of toxic wastes away from burial on land to treatments that destroy or permanently detoxify wastes.
e
Which of the following type of regulatory authority issues rules that have the impact of laws? A. quasi-executive B. quasi in rem C. quasi-regulatory D. in personam E. quasi-legislative
e
Who among the following is covered by the Americans with Disabilities Act? A. Sam, who is a kleptomaniac B. Daniel, who is a compulsive gambler C. Ryan, who suffers from a sexual behavior disorder D. Nina, who is a lesbian E. Sharon, who is diabetic
e
______ occurs when an employee appropriates funds of his employer to his own use.
embezzlement
Lily has been working at Fasching and Co. for six years. Her pension plan will vest at her seven-year work anniversary. She has had great performance evaluations and has received regular raises and promotions. The Chief Financial Officer (CFO) has determined that cost-cutting is needed to keep the company profitable. He recommends that Lily be fired before her pension vests and becomes a permanent liability against the corporation. According to the ______ the company cannot fire her to prevent her from getting vested pension rights.
employee retirement income security act (ERISA)
Environmental laws at the federal level are mainly administered by the
environmental protection agency (EPA)
The government relies on administrative agencies for ________, which is/are necessary to develop sound policies and provide solutions and management for problems.
expertise
The __________ provides the right to dispute information on credit reports and allows consumers to obtain a free credit report each year.
fair and accurate credit transaction act
A Worker Adjustment and Retraining Notification (WARN) notice is mandatory for a case that relates to the sale of a business. t/f
false
A buyer's damages are the difference between the fair value of all that the buyer received and the fair value of what he or she would have received had there been no fraud. t/f
false
A limited partnership is solely made up of limited partners. t/f
false
A plaintiff would have less flexibility making a claim under false and deceptive than she would making a claim under common law. t/f
false
Administrative agencies have either quasi-legislative regulatory authority or quasi-judicial regulatory authority, but they cannot have both. t/f
false
Advisory opinions of an administrative agency are as binding as formal rulings. t/f
false
Equal Employment Opportunity Commission guidelines on discrimination consider color to be a bona fide occupational qualification. t/f
false
Family-owned and family-operated businesses are common examples of publicly held organizations. t/f
false
General exceptions regarding pay for workers under the Fair Labor Standards Act (FSLA) are usually referred to as the "blue-collar" exemptions to overtime. t/f
false
In exercising their investigative functions, administrative agencies are excluded from using subpoena powers. t/f
false
In internship programs under the Fair Labor Standards Act (FLSA), an intern is entitled to wages for the time spent in the internship. t/f
false
In the context of criminal intent, knowledge can be easily established by demonstrating that the accused was negligent, careless, or foolish t/f
false
It is legal for small competitors to engage in price fixing to allow them to compete with larger competitors. t/f
false
Private parties may bring criminal suits seeking monetary damages or injunction as a means of enforcing antitrust laws. t/f
false
Proof of negligence leading to corporate mismanagement is enough to prove a case of seller's fraud under Rule 10b-5. t/f
false
Sherman Act cases need not satisfy an interstate commerce element to be constitutionally valid. t/f
false
States may set minimum wage amounts that are lower, not higher, than the federal minimum rate. t/f
false
The 1991 Civil Rights Act amendments allow the setting of quotas in employment. t/f
false
The Electronic Communications Privacy Act and Stored Communications Act protect all personally identifiable information. t/f
false
The Endangered Species Act requires courts and regulators to take economic factors into consideration in applying the Act's provisions. t/f
false
The Environmental Protection Agency has determined that point source regulation is the most economically efficient method of pollution control. t/f
false
The Fair Credit Reporting Act regulates credit reports on both consumers and businesses. t/f
false
The Fair Labor Standards Act (FLSA) requires employers to provide a functional space for nursing mothers to express breast milk, which can include a private bathroom. t/f
false
The Fair Labor Standards Act (FLSA) sets 16 years of age as the minimum age for employment. t/f
false
The Federal Trade Commission determines what is a deceptive ad using the point of view of an "experienced consumer". t/f
false
The Privacy Act of 1974 limits the collection and release of certain kinds of information by state governments. t/f
false
The Sarbanes-Oxley Act limits personal loans from a company to its executives to one loan of no more than $10,000, amortized over five years, at a time. t/f
false
The Securities Act of 1933 makes it illegal to use interstate transportation to sell securities without disclosing financial information to potential investors, but it is not illegal to use the interstate mail systems. t/f
false
The fifth amendment protects the accused from being compelled to produce real or physical evidence t/f
false
The protection against compulsory self-incrimination safeguards a businessperson from having to produce records prepared in the ordinary course of business, because the records compel oral testimony. t/f
false
The right to a covered leave of absence under the Family and Medical Leave Act applies to employees the moment they begin employment. t/f
false
Under a cease and desist order issued by the Bureau of Consumer Protection, a party consents to sign an order which restrains the promotional activity deemed offensive. t/f
false
Under the Americans with Disabilities Act, compensatory and punitive damages are available for policies that merely have disparate impact. t/f
false
Unlike the Clean Air Act, the Clean Water Act is administered primarily by the federal government. t/f
false
When firing employees the law requires an employer to discharge non-union members before it discharges union members. t/f
false
felony cases are commenced with the filing of an information, and misdemeanors are commenced by a grand jury indictment t/f
false
the goal of the sherman act is to eliminate competition t/f
false
the three hybrid forms of business organizations are sole proprietorships, partnerships, and corporations t/f
false
The _________________ is the primary federal agency that protects consumers.
federal trade commision
Among the costs frequently paid by debtors to creditors as a condition of the extension of credit, which of the following are included in the finance charge? fees for appraisals attorney's fees for preparing deeds title insurance fees notary fees abstract fees
fees for appraisals
Under common law, if an injury occurred because of the negligence of another employee, the employer would escape liability because of the ______ defense.
fellow servant rule
The Equal Employment Opportunity Commission is composed of _______members who are appointed by _________ and serve a five-year term.
five, the president
Public employees are protected from some drug testing by the ______ Amendment's prohibition against unreasonable searches.
fourth
Fields Tech School decides to expand and open a new campus in another state. Rather than acquiring land and building new buildings, the school board decides to merge with an existing school, Fennelstate, which has similar programs in the other state. Fennelstate is a small commuter school with the majority of the students from the same state. The merger between Fields Tech School and Fennelstate is best described as a ______.
geographic extension merger
A factory's failure to use pollution-control equipment may be evidence of its failure to exercise ______ resulting in evidence of negligence.
good faith
______ is a complete defense to fraud as it is inconsistent with the defendant's intent to defraud or willfulness, purposes essential to the charges.
good faith
Increases in atmospheric carbon dioxide, which lead to changing climatic patterns, are the result of
greenhouse effect
The Americans with Disabilities Act does not require employers to hire the unqualified disabled. make reasonable accommodations for customers. hire the qualified disabled. make reasonable accommodations for their employees. purchase equipment for use by disabled employees.
hire the unqualified disabled
The Bike Shop and Road Warriors are fierce competitors in the national bike market. They compete in everything from parts to clothing to bicycles. Due to decreasing sales, the companies make an agreement to share product information and pricing to ensure that the market contains similar items at similar prices lower than their competitors. This action is most likely to be considered a horizontal agreement in violation of the Sherman Act. licensing agreement violating the Clayton Act. tying agreement in violation of the Clayton Act. reciprocal dealing agreement violating the Clayton Act. vertical agreement in violation of the Sherman Act.
horizontal agreement in violation of the Sherman Act
The president of a bottling company agreed with a competitor to stop discounts to retailers, which earned him a jail sentence. Which of the following is indicated in this scenario? product bundling variable pricing horizontal price fixing mixed-leader bundling predatory conduct
horizontal price fixing
A(n) ______ is a type of sexual harassment in which co-workers make offensive sexual comments or propositions, engage in suggestive touching, show nude pictures, or draw sexual graffiti.
hostile work environment
Under the Equal Pay Act, discrimination in pay is allowed if
it arises from a seniority system
The goals of the_______ are to ease federal regulations by relaxing rules for some initial public offerings to promote investment in startup companies.
jumpstart our business startups act of 2012
The Americans with Disabilities Act prohibits discrimination against the qualified disabled which include all but the following: disfigurement mental illness learning disabilities amputation kleptomania
kleptomania
Employers were prohibited from firing employees for union activities under the
labor management reactions act
According to the Securities and Exchange Commission (SEC), a person should be considered to be a temporary insider if that person conveys nonpublic information that was to have been kept confidential. This philosophy has become known as the
misappropriation theory
Albert falsely reports his income obtained from betting on racehorses as income obtained from his job at Good Life Supermarket. Albert is guilty of ______.
money laundering
The largest union in the United States is the ______.
national education association
which of the following refers to nolo contendere?
no contest
Pretending to be a financial institution in order to get individuals to reveal their personal information is called ______.
phishing
When courts find that a corporate organization is being misused, the corporate entity can be disregarded. This has been called
piercing the corporate veil
The __________appoints members of the National Labor Relations Board with the consent of the _____________.
president, senate
The ______ of 1974 places constraints on how certain kinds of information collected by the federal government can be used and limits those to whom the information may be released.
privacy act
Lutite, a lighting corporation, acquires and merges with Castelle, a kitchen company in a billion-dollar merger. Lutite, prior to the merger, sold only lighting products. After the merger, Lutite sells lighting and kitchen products. The merger between Lutite and Castelle is an example of a ______.
product extension merger
The classification of crimes as felonies or misdemeanors is based on the
punishment imposed if convicted
The Securities and Exchange Commission's (SEC's) adoption of rules and regulations relating to financial and other information furnished to the Commission comes under its ______ power.
quasi-legislative
As interpreted by the courts, Section 1981, a provision of the Civil Rights Act of 1866, applies only to ______.
racial discrimination
______ is the process of adjusting a job or work environment to fit the needs of disabled employees.
reasonable accommodation
One party offers to buy the other's goods but only if the second party buys other goods from the first party. This is known as a(n) ______.
reciprocal dealing arrangement
According to the Securities Act of 1933, an issuer of securities who complies with the federal law must prepare a(n)
registration statement
Thelma and Louise are out bar hopping on a Friday night. Thelma is driving to the next bar when Louise asks her to stop at a convenience store so she can "make a withdrawal." Thelma thinks that Louise is using an ATM when Louise pulls out a gun from her purse and holds up the store. Louise walks out of the store without firing any shots. The police arrest both at their next bar stop. Louise is guilty of
robbery
The ______, announced by the Supreme Court in Standard Oil Co. v. United States, holds that contracts or conspiracies in restraint of trade are illegal only if they constituted undue or unreasonable restraints of trade and that only unreasonable attempts to monopolize are covered by the Sherman Act.
rule of reason
In a(n) ______, the shareholders are taxed only on income distributed.
s corporation
______, one of the provisions of the Civil Rights Act of 1866, provides that all persons shall have the same right to make and enforce contracts as enjoyed by white citizens.
section 1981
The ______ is a disclosure law that makes it illegal to use mails or any other means of interstate communication or transportation to sell securities without disclosing certain financial information to potential investors.
securities act of 1933
Because corporations cannot be jailed, a federal sentencing commission developed special ______ for organizations convicted of federal crimes.
sentencing guidelines
Quid pro quo is a type of ______.
sexual harassment discrimination
Title VII of the Civil Rights Act does not prohibit discrimination against employees based on their ______.
sexual orientation
The _________ elect members of the board of _________, who set the objectives and goals of the corporation.
shareholders, directors
The Local Bar was a pub that used a special storage device that steals card numbers when processing its customers' credit and debit cards. Many such customers who visited the establishment later found that they were charged for goods and services they did not purchase. This scenario is an example of ______.
skimming
The main purpose of the Clayton Act of 1914 was to_______________.
strengthen the antitrust laws
The Securities and Exchange Commission (SEC) primarily functions as a(n) ______ body, which oversees the issue and sale of investment securities.
supervising
When a business summarizes specific steps it is taking or lays out goals it has regarding its environmental impact, this is called_________.
sustainability reporting
Delltrix Corp., a customer support provider, needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected because of their poor English language proficiency. The applicants file a disparate impact case with the Equal Employment Opportunity Commission against Delltrix on the grounds of discrimination based on nationality. Which of the following defenses is Delltrix most likely to use in this case? the business necessity defense the defense of undue hardship the contributory negligence defense the assumption-of-risk defense the comparative negligence defense
the business necessity defense
In a disparate impact case, an alleged employer can defeat a plaintiff's claim by proving ______.
the business necessity defense
______, effective November 2009, prohibits covered employers from firing, refusing to hire, or otherwise discriminating against individuals on the basis of their genetic information.
the genetic information nondiscrimination act
The federal law that establishes rules for federal trademark registration and enforcement and also prohibits false or misleading advertising is ______________.
the lanham act
__________is an important element of the Fair Labor Standards Act.
the record keeping requirement
In the context of antitrust sanctions, liability for triple-damages suits is based on _______ law and is said to be joint and several
tort
______ ensures fair competition by preventing those who would deceive consumers from diverting trade from those who compete honestly.
trade practice regulation
A business is likely to shift away from the proprietorship form as it becomes more successful. t/f
true
A plaintiff in a Rule 10b-5 suit is required to prove damages in order to prevail. t/f
true
According to the doctrine of the exhaustion of remedies, judicial review is available only for final actions by an agency. t/f
true
All levels of government have grown larger and more complex in the twenty-first century. t/f
true
All partners in a general partnership have unlimited liability for their organization's debts. t/f
true
An employee is entitled to request an Occupational Safety and Health Administration (OSHA) inspection if they believe workplace conditions are unsafe. t/f
true
An employer's publication of an employee handbook can change the nature of at-will employment. t/f
true
An injunction against future violations of the Equal Employment Opportunity Act is a possible remedy provided by the Equal Employment Opportunity Commission. t/f
true
Any director or officer of the issuer of a security who owns at least 10 percent of that security is considered an insider under the Securities Exchange Act of 1934. t/f
true
Both employers and employees must see a matter as important in order to have successful collective bargaining. t/f
true
Breaks or meal periods are not required to be given to workers under the Fair Labor Standards Act (FLSA) but may be required by state or local laws. t/f
true
Courts develop the distinction between rule of reason and per se illegality on a case-by-case basis. t/f
true
Employers may hire for a discriminatory reason because it is only illegal for employers to fail to hire or refuse to hire on discriminatory grounds. t/f
true
Employers with health or disability plans must cover pregnancy, childbirth, and related medical conditions in the same manner as other conditions are covered. t/f
true
Expertise beyond Congress is required to develop sound policies and proper decisions in response to problems in different areas regulated by the law. t/f
true
Federal law does not require lunch or coffee breaks. However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the work week and considered in determining if overtime was worked. t/f
true
For the courts to exercise their function of limited review, an agency must provide a record that sets forth the reasons and basis for its decision. t/f
true
Horizontal price fixing is illegal per se and it is no defense that the prices fixed are fair or reasonable. t/f
true
Household and domestic workers are exempt from the National Labor Relations Board's authority. t/f
true
If an employer provides female employees with health insurance to cover their pregnancies but does not provide health insurance to cover pregnancies for the male employees' wives, the employer violates the Pregnancy Discrimination Act. t/f
true
In a Title VII civil action, even if a plaintiff proves disparate treatment against the plaintiff's class, a defendant can win by showing that all or substantially all members of the plaintiff's class cannot perform the duties of the job. t/f
true
In a bankruptcy proceeding, an involuntary petition is one filed by one or more creditors of the debtor. t/f
true
In a limited liability company (LLC), members act as agents of the LLC but are not personally liable to third parties. t/f
true
In civil law, the doctrine of res judicata bars subsequent civil actions involving the same parties, claims, demands, or causes of action. t/f
true
In the context of providing untrue or misleading information to potential investors, proof of negligence will support an injunction. t/f
true
It is legal to sell worthless securities and foolish investments. t/f
true
Margaret and her family, along with 200 other individuals, own Corporate Consulting, a consulting firm whose stock is traded on a public stock exchange. This is an example of a publicly held organization. t/f
true
Maximum-price agreements are just as illegal as minimum-price agreements. t/f
true
Members of a limited liability company (LLC) who dissent with respect to decisions made on behalf of the LLC may not bring a derivative lawsuit or sell their shares. t/f
true
Most employment practices that illegally discriminate do so because of their disparate impact, so employers must ensure their job and educational requirements are necessary for their business. t/f
true
Part-time workers have the right to receive a notification of a mass layoff under the Worker Adjustment and Retraining Notification (WARN). t/f
true
Refusing to hire people because of a poor credit rating, when minorities are disproportionately affected, would be an example of disparate impact on race. t/f
true
Registering the initial sale of securities involves three time periods, which are the prefiling period, the waiting period, and the post-effective period. t/f
true
Requiring job applicants to state on a questionnaire whether they would cross a picket line in a strike is illegal. t/f
true
Research has shown that there can be racial bias in hiring based on an applicant's name. t/f
true
Scoping encourages environmental impact statements (EIS) to focus on more substantial environmental concerns and reduce the attention devoted to trivial issues. t/f
true
Securities laws are designed to give potential investors sufficient information so that they can make intelligent investment decisions based on factual information. t/f
true
The Clean Air Act unambiguously bars cost considerations from the air quality standards-setting process. t/f
true
The Federal Trade Commission enforces the Clayton Act. t/f
true
The Federal Trade Commission is the primary federal agency that protects consumers. t/f
true
The Federal Trade Commission promotes free and fair competition by enforcing antitrust laws. t/f
true
The U.S. federal government is the largest landholder in the country, controlling one-third of the nation's land. t/f
true
The Worker Adjustment and Retraining Notification (WARN) Act requires that covered employers give employees prior notice of plant closings or mass layoffs. t/f
true
The exclusive remedy rule has some exceptions because worker's compensation laws do not adequately compensate badly injured workers. t/f
true
The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and an organization to fail. t/f
true
The general language used in delegating quasi-judicial authority usually involves grants of substantial discretion to an agency. t/f
true
The prevention of significant deterioration policy is criticized on the grounds that it attempts to prevent industries from moving into southern and western states where air quality is cleaner than standards require. t/f
true
The primary focus of policymaking by way of regulation has been on balancing the costs of regulatory programs with their potential benefits. t/f
true
The trustee in bankruptcy has broad powers over the estate of a debtor. t/f
true
There are three groups who control an organization in corporate form; the shareholders, the board of directors, and the officers. t/f
true
To analyze potential violations of the Sherman Act, the test of reasonableness asks whether challenged contracts or acts are unreasonably restrictive of competitive conditions. t/f
true
To establish standing, the challenging party must address issues relating to the reviewability of a decision and the aggrieved party involved. t/f
true
Under the Family and Medical Leave Act (FMLA), an employee's healthy child who is over 18 years old does not qualify as an immediate family member. t/f
true
When the federal government enforces antitrust laws it uses both the Department of Justice and the Federal Trade Commission. t/f
true
White-collar crimes usually occur in a business or professional setting and are generally committed for personal financial gain t/f
true
defense counsel is not allowed to accompany a witness before a grand jury t/f
true
felonies are punishable by fine or imprisonment in a penitentiary for a period of one year or more t/f
true
grand jurors may subpoena business records t/f
true
the only business protected by the fifth amendment privilege against compulsory self-incrimination is a sole proprietorship t/f
true
The ______ requires that a lender disclose the finance charge, expressing it as an annual percentage rate, and specifies the methods for making this computation.
truth in lending act
To prove a pattern of racketeering under various specified federal statutes, the statute says that it requires at least
two acts of racketeering in a ten year period
To convict a person of a conspiracy, ______.
two or more people must be involved in the accomplishment of a common and unlawful plan
A ______ is one in which a product is sold or leased only on the condition that a buyer or lessee purchase a different product or service from a seller or lessor.
tying contract
Lois has applied for a job at OneStop Everyday Market, a grocery store chain. She is told that after thirty days she is required to join the union representing the employees of OneStop. In this case, OneStop Everyday Market is a(n) ______.
union shop
Attempts by manufacturers to control the ultimate retail prices are known as ______.
vertical price fixing
Resale price maintenance is also called ______.
vertical price fixing
The __________ begins once the registration statement is filed.
waiting period
The discharge of an employee for reporting the employer's alleged violations of law is known as ______.
whistleblowing
A farmer uses his airplane to dust his crops with pesticides. His farm lies next to a large public playground. One day, the farmer is flying over his farm, dusting his crops and the wind carries the poisonous pesticide over to the playground, which causes injuries to the parents and children playing at the park. If it is shown that the farmer exercised reasonable care in dusting his crops that day and he had no fault in the pesticides blowing over to the playground, then the farmer's actions_______________. will be considered negligent will be considered a public nuisance will result in strict liability will be considered a private nuisance will result in no liability
will result in strict liability