Mock Exam Final
14. During an employee's leave under the Family and Medical Leave Act, an employer must continue to compensate the employee to avoid the potential negative effect of unpaid leave on interstate commerce. a. True b. False
ANSWER: False
14. Unless the owner of an easement or profit becomes the owner of the property burdened by it, an easement or profit cannot be terminated or extinguished. a. True b. False
ANSWER: False
17. Constructive discharge occurs when an employer, to avoid conflict among workers, discharges an employee engaging in an unconventional act, such as wearing a hijab. a. True b. False
ANSWER: False
21. To be eligible for unemployment compensation, a worker must be willing and able to work. a. True b. False
ANSWER: True
3. Administrative agencies at various levels of government can work together and share the responsibility of creating and enforcing regulations. a. True b. False
ANSWER: True
42. Data Inc. pays income and other taxes collected by the Internal Revenue Service (IRS). Like other federal administrative agencies, the IRS was created by a. Congress, through enabling legislation. b. a court, through the adjudicatory process. c. an administrative agency, through administrative regulations. d. the president, through an executive order.
ANSWER: a
48. Italo owns one hundred acres of fertile bottomland. With respect to the land, Jana has an easement and Kessler has a profit. A right to possess the bottomland is owned by a. Italo. b. Jana. c. Kessler. d. all of the choices, in proportion to the value of their respective interests.
ANSWER: a
53. Equipment Inc. and Freight Transport Inc. own adjacent land. Equipment's storage garage encroaches on Freight's property. After three decades, Freight files a suit against Equipment, seeking removal of the garage. Under the doctrine of adverse possession, the court is most likely to rule that a. Equipment owns the property beneath the garage. b. Equipment must remove the garage from Freight's land. c. the parties are tenants in common of the land beneath the garage. d. Equipment must pay rent to Freight but need not remove the garage.
ANSWER: a
54. The federal statute that regulates air pollution is a. the Clean Air Act. b. the Federal Air Pollution Control Act. c. the CERCLA. d. all of the choices.
ANSWER: a
39. 15. Frank is an employee of Guitar Makers LLC. Guitar's employee manual states that workers, such as Frank, will be dismissed only for good cause. With respect to the employment-at-will doctrine, this is a. an example of the doctrine. b. an exception based on contract theory. c. an exception based on public policy. d. an exception based on a statute.
ANSWER: b
46. Quarry Company owns a gravel pit next to land owned by Ridgeline Corporation. Access to the pit is limited to a road on Ridgeline's property. Quarry's right to drive its trucks on the road is a. a profit. b. an easement. c. a right to adverse possession. d. the power of eminent domain.
ANSWER: b
47. Rural Electric Company submits a bid to build a dam on federal land as part of a federal project. For this action, an environmental impact statement is most likely a. prohibited. b. required. c. unnecessary. d. voluntary.
ANSWER: b
54. Cady files an employment discrimination suit against Durable Goods Corporation under the Civil Rights Act. If Cady shows that Durable Goods acted with malice or reckless indifference, she may recover a. an unlimited amount of compensatory and punitive damages. b. a limited amount of compensatory and punitive damages. c. compensatory, but not punitive damages. d. punitive, but not compensatory, damages.
ANSWER: b
Multiple Choice 36. Federal employment discrimination laws restrict the ability of employers to discriminate against workers on the basis of a. experience. b. gender. c. education. d. all of the choices.
ANSWER: b
55. A fundamental public policy reason for the adverse possession doctrine is a. acquiring private property for public use. b. giving notice to the public that a party owns certain property. c. rewarding possessors for putting land to productive use. d. warranting that certain property has no defects of title.
ANSWER: c
11. The federal act that provides the basis for issuing regulations to control multistate air pollution covers only mobile sources. a. True b. False
ANSWER: False
22. A worker who has voluntarily left his or her job qualifies for unemployment compensation to partially make up for the worker's loss of income. a. True b. False
ANSWER: False
22. The registration of a copyright is not evidence that the copyright is valid. a. True b. False
ANSWER: False
23. Certain business processes are copyrightable. a. True b. False
ANSWER: False
24. The Age Discrimination in Employment Act prohibits employment discrimination on the basis of age against individuals up to forty years of age. a. True b. False
ANSWER: False
35. A state does not have the inherent power to ban affirmative action within that state. a. True b. False
ANSWER: False
46. Retail Properties, Inc., wants to build a parking ramp to connect to its Shoppers Mall, both of which are on private land. For this action, an environmental impact statement is a. prohibited. b. required. c. unnecessary. d. voluntary.
ANSWER: c
53. A final rule issued through a notice-and-comment rulemaking procedure has binding legal effect a. after a court affirms it. b. until the issuing agency rescinds it. c. once Congress approves it. d. unless a court overturns it.
ANSWER: d
64. After a union election campaign among the employees of Frozen Food Company, the Food Workers Union does not obtain a majority vote in the election. This most likely violates a. federal labor law. b. state right-to-work laws. c. federal wage-and-hour laws. d. no federal or state law.
ANSWER: d
65. During an administrative hearing, the parties may a. give testimony. b. present evidence. c. cross-examine witnesses. d. all of the choices.
ANSWER: d
17. To acquire property by adverse possession, the possession must be secret or clandestine. a. True b. False
ANSWER: False
29. For an agency's interpretation of the law to be accorded deference by a court, it must meet the formal standards for notice-and-comment rulemaking. a. True b. False
ANSWER: True
46. Wendy works as a weather announcer for a TV station under the character name Weather Wendy. Wendy can register her name as a. none of the choices. b. a trade secret. c. a service mark. d. a trade name.
ANSWER: c
12. An easement is the right to go onto land owned by another and take away some part of the land itself or some product of the land. a. True b. False
ANSWER: False
13. To avoid permitting a key employee to take family or medical leave, an employer must show that the leave would cause "substantial injury" to the employer. a. True b. False
ANSWER: False
15. The Equal Pay Act requires equal pay for male and female employees working at the same establishment, regardless of the work they do. a. True b. False
ANSWER: False
17. Corporate bylaws and resolutions of the corporation's board of directors provide guidelines but cannot grant or restrict corporate powers. a. True b. False
ANSWER: False
18. To receive benefits under a state workers' compensation law, an employee injured on the job must promptly sue the employer. a. True b. False
ANSWER: False
20. After final rules are issued, administrative agencies no longer conduct investigations of the entities that they regulate. a. True b. False
ANSWER: False
20. The condemnation power of the government to take land for a public use is known as the right of adverse possession. a. True b. False
ANSWER: False
20. To pay for social insurance programs administered by the Social Security Administration, employers, employees, and the unemployed must contribute. a. True b. False
ANSWER: False
21. To avoid sanctions under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5, scienter must exist. a. True b. False
ANSWER: False
26. If a creative work is not copyrightable, other intellectual property law will not protect it. a. True b. False
ANSWER: False
26. Under the Age Discrimination in Employment Act, the plaintiff must show that the unlawful discrimination was only one of the reasons for an adverse employment action. a. True b. False
ANSWER: False
27. Under the Age Discrimination in Employment Act, if an employer offers a legitimate reason for its action, an employee's case is held to be a pretext. a. True b. False
ANSWER: False
28. An unauthorized reproduction must be exactly the same as the original, and reproduce the original in its entirety, for infringement of copyright to occur. a. True b. False
ANSWER: False
30. Tapping into a competitor's computer to obtain confidential business data is not a theft of trade secrets. a. True b. False
ANSWER: False
33. Selling a site where hazardous wastes were disposed of relieves the seller—and the buyer—of liability for the clean up, as does merging with or buying a corporation that has not violated Superfund. a. True b. False
ANSWER: False
34. Affirmative action programs are often found to be unconstitutional because they deprive members of protected classes of equal protection. a. True b. False
ANSWER: False
35. Under the Madrid Protocol, the fees and procedures for trademark registration vary significantly among individual countries. a. True b. False
ANSWER: False
4. New administrative agencies are rarely created in response to a crisis. a. True b. False
ANSWER: False
6. To succeed in a suit for trademark infringement, the owner must show that the infringer acted intentionally. a. True b. False
ANSWER: False
9. A federal agency must file an environmental impact statement for an action even if, according to the agency, the action will have no significant effect on the environment. a. True b. False
ANSWER: False
1. Private employers are generally free to hire and fire workers at will. a. True b. False
ANSWER: True
13. A person who rents an apartment has an easement by necessity in the private road leading to the apartment building. a. True b. False
ANSWER: True
15. A valid deed must contain words indicating an intent to convey (transfer) the property. a. True b. False
ANSWER: True
15. An eligible employee may take unpaid leave under the Family and Medical Leave Act for family or medical reasons, and in certain situations that arise from military service. a. True b. False
ANSWER: True
16. Constructive discharge is a theory that plaintiffs can use to establish any type of discrimination claim under Title VII and other federal discrimination laws. a. True b. False
ANSWER: True
18. Society's interest in ensuring that real property remains in the stream of commerce is one of the reasons for the doctrine of adverse possession. a. True b. False
ANSWER: True
19. Adverse possession is a means of obtaining title to land without delivery of a deed. a. True b. False
ANSWER: True
19. An injury that occurs while an employee is commuting to or from work is usually not considered to have occurred on the job or in the course of employment and hence is not covered by workers' compensation law. a. True b. False
ANSWER: True
21. When a shareholder commingles personal and corporate interests so that the firm has no separate identity, the shareholder may be held liable for the firm's debts. a. True b. False
ANSWER: True
22. An employer may be able to avoid liability for sexual harassment by taking prompt remedial action. a. True b. False
ANSWER: True
22. To impose a restrictive covenant on every lot in a subdivision, each lot's deed must include the restrictions or a reference to where they may be found. a. True b. False
ANSWER: True
23. Punitive damages may be recovered in a case of discrimination against a private employer if the employer acted with malice or reckless indifference. a. True b. False
ANSWER: True
24. The key to liability under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 is whether information omitted or misrepresented in connection with the purchase or sale of a security is material. a. True b. False
ANSWER: True
25. The Age Discrimination in Employment Act extends to federal government employees but state employers are usually immune from age-based claims. a. True b. False
ANSWER: True
27. Corporate "outsiders" may be held liable for insider trading under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. a. True b. False
ANSWER: True
27. Works that are copyrightable include product packaging. a. True b. False
ANSWER: True
32. The National Labor Relations Act established the right of private-sector employees to form unions and to strike. a. True b. False
ANSWER: True
33. An agency must conduct a regulatory flexibility analysis whenever a new regulation will significantly impact a substantial number of small businesses. a. True b. False
ANSWER: True
34. Each member country to the TRIPS agreement must include in its domestic laws broad intellectual property rights and effective remedies for violations. a. True b. False
ANSWER: True
35. To minimize potential liability under Superfund, a business can conduct its own regular environmental compliance audits of tis operations. a. True b. False
ANSWER: True
8. An environmental impact statement includes a formal analysis of the impact of any major federal action that will significantly affect the environment. a. True b. False
ANSWER: True
37. 15 Health Clinic Inc. has no written employment manual or oral discharge policy, avoids abusive treatment of its staff, and acts to prevent illegal and unsafe activities. The clinic freely hires and fires its employees, who are similarly free to quit at any time. With respect to the employment-at-will doctrine, this is a. an example of the doctrine. b. an exception based on contract theory. c. an exception based on public policy. d. an exception based on a statute.
ANSWER: a
39. Sea Coast Café uses the trademark of Tacos del Mar without permission. This use of the mark is actionable as trademark infringement a. if consumers are confused. b. all of the choices. c. only if the two companies' products are similar. d. if the use diminishes the distinctive quality of the mark.
ANSWER: a
43. Retail Stores Inc. pays taxes collected by the appropriate state agencies. Like other state administrative agencies, these agencies were created by a. a state legislature, through an enabling act. b. a state court, through the adjudicatory process. c. a federal administrative agency, through administrative regulations. d. the state governor, through an executive order.
ANSWER: a
46. Gil and Hera are employees of IT Solutions Inc. Under the Equal Pay Act, IT Solutions can legitimately pay different wages to male and female employees on the basis of a. merit. b. marital status. c. similar work at the same facility. d. gender.
ANSWER: a
51. Regulations governing air pollution cover mobile and stationary sources. Those who may be subject to penalties for violations of the Clean Air Act include a. corporate officers who knowingly violate the act. b. persons who provide information about violators but otherwise fail to act. c. private citizens who fail to sue violators. d. none of the choices.
ANSWER: a
58. Dona, a fifty-five-year-old member of a racial minority with a disability, believes that she is a victim of employment discrimination. Potentially the most widespread form of discrimination is based on a. age. b. disability. c. gender. d. race.
ANSWER: a
63. Mica is an employee of Natural Gas Company and a member of a union of company employees. Under federal law, Mica and other union members have the right to a. bargain collectively with their employer through their representative. b. insist that their employer require union membership to work. c. require their employer to contribute financially to their union. d. none of the choices.
ANSWER: a
66. To be assured that a court will defer to an administrative agency's interpretation of the law, the agency must a. meet the formal legal standards for notice-and-comment rulemaking. b. exhaust all administrative remedies. c. make its records available online and in other electronic formats. d. open every portion of every meeting to public observation.
ANSWER: a
69. BioChem Corporation operates a hazardous waste storage facility. ChemCo Inc. buys BioChem before it is discovered that the firm's disposal practices violated CERCLA. With respect to these violations, Superfund is likely to impose on ChemCo a. strict liability. b. liability under the nuisance doctrine. c. liability on a negligence theory. d. no liability.
ANSWER: a
70. An affirmative action plan may be found to be unconstitutional because it a. does not attempt to remedy past discrimination. b. does not make use of quotas or preferences. c. has not succeeded in remedying discrimination. d. has succeeded and subsequently been eliminated.
ANSWER: a
70. Using funds obtained through taxes on certain businesses, Superfund a. pays for the clean up of hazardous waste disposal sites. b. reimburses polluters who correct environmental violations. c. conducts environmental compliance audits of government operations. d. all of the choices.
ANSWER: a
Multiple Choice 36. The Financial Stability Oversight Council was created in response to a financial crisis to a. identify and respond to emerging risks in the financial system. b. protect consumers from abusive practices by financial institutions. c. issue rules to cover almost every aspect of a business's operation. d. reduce the number and authority of business financial regulations.
ANSWER: a
41. Don One decides to use his personal name for a line of clothing he is developing. In this circumstance, Don One will receive trademark protection under the law when a. Don begins to market his line of clothing. b. customers begin to associate the name with the source of the product. c. Don begins to make his line of clothing. d. all of the choices.
ANSWER: b
43. An environmental impact statement must analyze the impact that the action will have on a. the economy. b. the environment. c. the marketplace. d. all of the choices.
ANSWER: b
44. Solar Power Company wants to erect an array of solar panels on private land, for which a federal permit is required. For this action, an environmental impact statement is a. prohibited. b. required. c. unnecessary. d. voluntary.
ANSWER: b
45. Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is a. prohibited. b. required. c. unnecessary. d. voluntary.
ANSWER: b
52. Bayside Inc. pays Coastal Marina to release its claim to a strip of waterfront property. Coastal gives Bayside a deed that conveys only whatever interest Coastal has in the strip. This deed is a. none of the choices. b. a quitclaim deed. c. a deed of quiet enjoyment. d. a warranty deed.
ANSWER: b
59. Analytic Data, Inc., wants to hire Benazir, a noncitizen. A work visa is most likely to be set aside for a noncitizen if a. the noncitizen is of "ethnic similarity to the employer's workforce." b. there is a shortage of qualified U.S. workers capable of doing the work. c. hiring the worker will adversely affect the labor force. d. the noncitizen is a "person with an extraordinary work ethic."
ANSWER: b
68. Fitness Club employs only female staff to assist its female-only members in the club. Greg, a forty-one-year-old male, applies for a staff job, but is not hired. In his suit against the club under the Civil Rights Act, the club most likely has a. a prima facie case. b. a bona fide occupational qualification defense. c. a business necessity defense. d. immunity.
ANSWER: b
70. United Inc., a U.S. film production company, files a suit against Video Ltd., a Mexican production firm, for infringement of intellectual property rights under Mexico's national laws. Both the U.S. and Mexico are signatories of the TRIPS agreement, under which United is entitled to a. more protection under Mexican law than Video. b. the same rights and protection under Mexican law as Video. c. fewer rights under Mexican law than Video. d. none of the choices.
ANSWER: b
38. Brewed Beans Inc. makes and sells "CoCoCafe," a chocolate-flavored coffee. Darkroast Inc. later markets a similar drink under the name "KoKoKafe." This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. none of the choices.
ANSWER: c
42. Burgers & Brew Inc. prepares its articles of incorporation. The articles are likely to include a. the corporation's name. b. the number of shares the corporation is authorized to issue. c. all of the choices. d. the corporation's registered agent.
ANSWER: c
50. The Securities and Exchange Commission decides to create a new rule relating to the dissemination of material nonpublic information through social media. The first step is a. compile the rule with others in the Code of Federal Regulations. b. draft the rule. c. publish a notice of the proposed rulemaking. d. solicit public comment.
ANSWER: c
52. Industrial Solvents, Inc., averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $30,000. Industrial Solvents is subject to a fine of a. $0. b. $15,000 per day. c. $30,000 per day. d. $30,000 total.
ANSWER: c
59. Orbital Flights Inc. is required to register its securities under Section 12 of the Securities Exchange Act of 1934. This means that, with respect to Orbital, Section 16(b) of the act covers a. the declaration of dividends by Orbital's board of directors. b. the later re-registration of Orbital's securities. c. the short-swing activities of Orbital's insiders. d. the solicitation of proxies from Orbital's shareholders.
ANSWER: c
64. Debt Equity Inc., and its officers, directors, and employees, buy and sell securities based on financial research and analysis. Section 16(b) of the Securities Exchange Act of 1934 covers purchases and sales of securities involving a. corporate insiders, such as officers, directors, and employees. b. misappropriation of material, nonpublic information. c. short-swing profits. d. tippers and tippees.
ANSWER: c
68. Brad is a shareholder of Cloud Servers Inc. He will be deemed to have a fiduciary duty to Cloud and its minority shareholders if he has a sufficient number of shares to a. assert a preemptive right. b. bring a shareholder's derivative suit. c. exercise actual control over the corporation. d. participate in a cumulative vote.
ANSWER: c
40. Owen is an employee of Paving Inc., which is performing a contract for the federal government. Owen learns that Paving is overcharging for the work. If he publicly reports the fraud, the law may protect him from being fired from his job. With respect to the employment-at-will doctrine, this is a. an example of the doctrine. b. an exception based on contract theory. c. an exception based on public policy. d. an exception based on a statute.
ANSWER: d
48. Chris operates the Devil's Brew chain of coffee stands. "Devil's Brew" is a. none of the choices. b. a trade secret. c. a service mark. d. a trade name.
ANSWER: d
51. Notice-and-comment rulemaking involves a period during which a. judges, legislators, and the president are asked about a proposed rule. b. potential violators of a proposed rule are notified and publicized. c. the administrators "notice" a problem and "comment" on it. d. the public is asked to comment on a proposed rule.
ANSWER: d
52. Steel Mill Inc., employs five hundred workers. For the Occupational Safety and Health Administration, Steel must do all of the following except a. keep occupational injury and illness records for each employee. b. report any work-related diseases. c. report any work-related injuries. d. pay employees higher wages for working in more dangerous areas.
ANSWER: d
65. Paving Corporation taps into the computer network of Roadwork Inc., a competitor, and downloads confidential business data without Roadwork's knowledge or authorization. This is most likely a. copyright infringement. b. patent infringement. c. trademark infringement. d. a theft of trade secrets.
ANSWER: d
69. The U.S. Small Business Administration issues a new regulation that will have a significant impact on a substantial number of small businesses. Under the Regulatory Flexibility Act, the agency must do all of the following except a. measure the cost that the rule will impose on small businesses. b. consider less burdensome alternatives. c. alert small businesses about forthcoming regulations. d. adjust the rule to the satisfaction of the regulated businesses.
ANSWER: d
