Business Law Final Ch. 5-13

According to The Harvard Law Review, below what percentage of market share do courts rarely find monopoly power?

50%

What is the cap range for compensatory and punitive damages an employer might have to pay under Title VII of the Civil Rights Act?

50k to 300k

An analysis of whether a defendant's act or failure to act is sufficiently connected to the plaintiff's injury falls under which negligence element?

Causation

The power to legislate is given by the Constitution to which of the following?

Congress

National defense, insect eradication and street lighting are examples of:

Public goods

Under a __________ privilege, protection against a defamation suit is provided for legitimate business communications.

Qualified

Few firms sharing monopoly power is a(n) __________.

oligopoly

The Fair Labor Standards Act requires that covered employees receive at least what rate of pay for hours worked over 40 hours in a week?

one and a half times

Under Title VII, which of the following is not an available remedy for unlawful sexual harassment in the workplace?

personal liability

A company builds a garden at the side of its building to enhance the appearance of its neighborhood. This is an example of a

positive externality

The Family and Medical Leave Act provides eligible employees __________ weeks of unpaid leave in any 12-month period for family needs such as the birth or adoption of a child.

12

The piece of federal legislation that prohibits private individuals and organizations from intercepting wire, oral, or electronic communications is the:

1986 Electronic Communications Privacy Act

The Age Discrimination in Employment Act (ADEA) protects workers over the age of __________ and over.

40

Which of the following best describes an injunction?

A court order that may either require or forbid a party to perform a specified act.

Which of the following types of contracts ordinarily involves a situation in which one party makes a promise and the other party acts in response to that promise?

A unilateral contract

The federal legislation that forbids discrimination in employment public accommodations, public services, transportation, and telecommunications for the disabled is the:

Americans with Disabilities Act

Which Article in the Constitution creates the legislative branch of government?

Article I

Owners, or the members of an LLC, file which of the following with the state to legally create the LLC?

Articles organization

A __________ merger is said to occur when an electronics company acquires a food manufacturing company.

Conglomerate

A merger between firms dealing in unrelated products is a __________ merger.

Conglomerate

Which of the following areas of law gives us a reliable mechanism for freely expressing our preferences for life?

Contract Law

The right of one partner who pays partnership debt to recoup an appropriate share of that debt from the other partners is referred to as the right of:

Contribution

Federal agencies that control entry into certain economic activities fall under which category of the federal regulatory agency duties?

Control of supply

In general, which of the following third parties can enforce a contract?

Creditor beneficiaries and donee beneficiaries

In the context of takeover defenses, when a target company's management arranges for a friendly third party to purchase its critical assets at a reasonable price, it is referred to as a __________ defense.

Crown jewel

A term in a lending contract that makes the debt essentially immediately payable should the condition specified cease to be satisfied is a(n):

Debt covenant

What type of plan will specify in advance the "match" the employer will provide to go with the employee's own contributions?

Defined contribution plan

The __________ is the federal administrative agency that has the authority to issue regulations and guidelines as well as to receive, initiate, and investigate charges of discrimination against employers covered by federal antidiscrimination statutes such as Title VII.

EEOC

The Constitutional provision that forbids a government from treating one person differently from another person without a rational basis for doing so is the:

Equal Protection Clause

Which of the following forbids discrimination on the basis of sex by paying wages to employees of one sex at a rate less than the rate paid to employees of the opposite sex for equal work on jobs requiring equal skill, effort, and responsibility and performed under similar working conditions?

Equal pay act

If an individual owns a potentially hazardous enterprise such as a bungee tower or a water slide, one way for the owner to protect himself from litigation should a customer be hurt is to include a(n) _____ in the customer agreement.

Exculpatory Clause

Which of the following appoints the top administrators for the various agencies?

Executive branch

Which federal agency was designed to prevent anticompetitive trade practices?

FTC

Under the Hart-Scott-Rodino Antitrust Improvements Act mergers and acquisitions must be reported to which of the following if those deals exceed certain dollar thresholds?

FTC and the Justice Department

Which Amendment to the U.S. Constitution contains both the Establishment Clause and the Free Exercise Clause?

First Amendment

In the United States, bribing a foreign official to violate local law in order to obtain or maintain business or to secure an improper advantage is illegal under which federal legislation?

Foreign Corrupt Practices Act

onathan, a motel owner, was suspected of being associated with an illegal narcotics operation. The police put a GPS tracking unit on Jonathan's car and followed his movements for more than a month. He was arrested in 2010, and in a trial in 2012, the jury found him guilty of intent to distribute methamphetamine for which he was sentenced to life in prison. On appeal, Jonathan argued that his conviction should be overturned because the warrantless use of GPS tracking unit violated the __________.

Fourth Amendment

Which of the following is not a recognized defense to an intentional tort claim?

Fraud

A contract that is inferred on the basis of the facts or by the behaviors of the parties is a(n) __________.

Implied contract

A new security offered by a corporation of the same state as all of the persons it is offered to is what type of offering?

Intrastate

In the context of legally enforceable contracts, which of the following best describes consideration?

It is the bargained-for legal value that one party agrees to pay to secure the promise of another.

Which of the following is true of the Pregnancy Discrimination Act?

It prohibits an employer from forcing a pregnant employee to take time off or to quit due to pregnancy.Correct

Which of the following best describes assault?

It refers to intentionally causing another to reasonably believe that he or she is about to be the victim of a battery.

Which of the following statements is true of the Magnuson-Moss Warranty Act?

It requires an express written warranty before the consumer is given protection.

Which of the following is not true of workers' compensation law?

Less than 20% of the workforce is covered by workers' compensation laws.

Which of the following is described as tangible defamation?

Libel

The concept of __________ implies that when a corporation has liabilities that exceed its assets, its creditors cannot reach the personal assets of the shareholders.

Limited Liability

Microsoft was charged with which of the following antitrust violations in 2000?

Maintaining market dominance by anticompetitive means.

Exclusive dealing and requirements contracts could result in competitors being denied a source of supply or a market for sale which is referred to as:

Market foreclosure

The threat to competition from a vertical merger that may deny a source of supply to a purchaser or an outlet for sale to a seller is known as:

Market foreclosure

Identify a merger hazard.

Mergers can significantly shape political affairs.

An innocent untruth is a(n) __________.

Misrepresentation

An employer who knew or should have known an employee could be dangerous, incompetent, or dishonest, and such characteristic was directly related to the injured party's damage, could be held liable under which of the following?

Negligence

Assumption of the risk is a defense based on the idea of:

Negligence

Harm caused by carelessness is known as __________.

Negligence

The federal administrative agency in charge of ensuring safe workplaces is:

OSHA

Which of the following gives the states the authority to regulate commerce?

Police Power

The H-1B visa is designed to bring foreign workers into the United States to fill what kind of positions?

Positions requiring a high level of skill and technical expertise in specialized fields such as science, engineering, or computer programming.

Governments can use the __________ to take private property for public uses such as building highways, bike trails, and parks, while providing just compensation to the owners.

Power of eminent domain

With a condition __________, the parties to a contract have no binding duties until the specified event occurs.

Precedent

The government is required to give notice and a fair hearing before taking action that affects a citizen's life, liberty or property because of:

Procedural due process

Which type of agency rules set forth the agency's internal operating structure and methods?

Procedural rules

Hobbes Corporation a toy manufacturer, has been prohibited from selling toys with removable parts to children below the age of five. This is an example of __________.

Product Banishment

Which of the following are possible defenses to strict liability cases?

Product misuse and assumption of the risk.

Under which of the following is it illegal, in connection with the sale or purchase of a security, to employ any scheme or to engage in any practice that defrauds another person participating in the financial markets?

Rule 10(b) of the 1934 Act

The federal legislation governing initial securities offerings is the:

Securities Act of 1933

Horizontal group boycotts violate which federal legislation?

Sherman Act

Which of the following pieces of federal legislation prohibits restraints of trade, monopolization, attempts to monopolize and conspiracies to monopolize?

Sherman Act

Which of the following is not a category of negligence claims stemming from defective products?

Strict Liability

Which of the following tort claims focuses on the condition of a product rather than the conduct of the parties?

Strict Liability

In the event of a conflict between state and federal law, which clause states that the federal law will prevail? Which of the following amendments poses an obstacle to FCC regulations on indecency?

Supremacy Clause

The __________ of the U.S. Constitution nullifies state action that conflicts with federal law.

Supremacy Clause

The constitutional amendment that reserves to the states any powers which are neither specifically delegated to the federal government nor prohibited to the state is the:

Tenth Amendment

Which of the following protects our personal freedoms, such as religion and speech, from the government?

The Bill of Rights

Which Amendment provides for constitutional protection against state government?

The Fourteenth Amendment

Norah, a waitress at a restaurant, was hospitalized because of a drug overdose. When questioned by the police, she agreed to call Michael, whom she identified as the source of drugs. The police arrested Michael, searched him and his cell phone, and discovered call records confirming that the phone was used to talk to Norah. This evidence was used at trial against Michael, who argued that the cell phone search violated his Fourth Amendment rights. Which of the following is most likely to happen in this scenario?

The cell phone evidence will be discarded because it is unlawful for cell phones to be searched upon arrest without a warrant

Jack is driving from Los Angeles to San Francisco. On his way, Jack is stopped by a police patrol car for repeatedly crossing a double yellow line into oncoming traffic. A police officer politely asks Jack to step out of the vehicle, while the officer's partner performs a warrantless search of Jack's car. The police officer finds a gram of cocaine on the dashboard. Which of the following is most likely to happen in this scenario?

The police officer is allowed to secure drugs that are abandoned or in plain view even though a warrant has not been obtained.

Antitrust advocates have historically been concerned with all of the following except:

The preservation of monopolies

Breaches of duty to particular persons, causing loss or injury are categorized as:

Torts

An arrangement that permits a customer to buy or lease a desired product only if the customer also buys or leases another, less desirable product is referred to as a:

Tying arrangement

Transactions involving the sale of goods is governed by:

Uniform commercial Code

An agreement between two or more members of a supply chain is labeled a(n) _________ restraint on trade.

Vertical

Respondeat superior is a form of __________ liability.

Vicarious

Beatrice doesn't like her ex, Beauregard. Beatrice contracts with Beary to assault Beauregard for the sum of $5,000.00. This situation is best described as a(n):

Void Contract

Which of the following content included in articles of incorporation is discretionary?

Voting rules.

Disparate impact, or unintentional discrimination, is also known as

adverse impact

A means for remedying past and present discriminatory wrongs in the workplace is known as

affirmative action

Which of the following types of employment discrimination is not covered by Title VII of the Federal Civil Rights Act?

all of these are covered by title VII

An agreement in which a buyer commits itself to deal only with a specific seller, thereby cutting competing sellers out of that share of the market is known as a(n):

an exclusive dealing contract

If Tom owes John $300 for work that John has performed for him, and John gives this debt to Jim in repayment for work that Jim has done for him, then this transfer of rights to this debt is referred to as a(n) __________.

assignment

An employee who is not under contract for a definite period of time and who can be fired at any time is called a(n) __________.

at-will employee

Tying arrangements are also known as ________.

bundling

Which of the following pieces of legislation forbids discrimination in education, housing, public accommodations, and employment?

civil rights act of 1964

Advertisements via circulars and billboards are examples of __________ speech.

commerical

Which of the following is not an available remedy under the Clayton Act?

criminal sanctions

Which of the following is the dominant test for determining whether a worker is an independent contractor or an employee?

degree of control

The free market enthusiasm of the 1980s resulted in strenuous efforts to:

deregulate the economy

Independent agencies, such as the Federal Trade Commission, the Federal Communications Commission, and the Securities and Exchange Commission, were established by Congress by means of statutes labeled __________.

enabling legislation

The doctrine that permits a merger to preserve the assets of a firm that would otherwise be lost to the market is the:

failing company doctrine

Random drug testing of employees is

forbidden by a number of states or limited to safety-sensitive situations.

A __________ merger involves firms that are in direct competition and occupy the same product and geographic markets.

horizontal

A dry cleaning company in a major city merges with another dry cleaning company in the same area. This is an example of a __________ merger.

horizontal

When competitors fix prices, restrict output, and divide territories among themselves, they are engaging in:

horizontal restraints of trade

Which of the following is not a concern brought about by economic concentration?

increased competition

he government might mandate disclosure requirements by businesses to combat imperfect or the lack of:

information

The crime of __________ trading has occurred when a director or an officer buys or sells a security while in possession of material, nonpublic information.

insider

Outrageous conduct causing severe emotional pain is the intentional tort claim of:

intentional infliction of emotion distress

The due diligence defense in a Section 11 action is available to all of the following except the:

issuers

Respondeat superior stands for

let the master answer

A movie theater is required to obtain a local permit for setting up its operations. This act of granting a local permit is called __________.

licensure

The rule that states that acceptance is effective when sent, even if never received, is the __________ rule.

mailbox

Pollution is an example of a(n) __________.

negative externality

The plaintiff in a breach of contract action who has suffered not actual damage may be entitled to an insignificant sum to illustrate the wrongfulness of the breach known as:

nominal damages

Tortious interference that impairs the enjoyment of one's land is known as a(n):

nuisance

A shareholder derivative lawsuit can be filed by minority shareholders of a corporation against whom?

officers and directors

Pricing below cost and a "dangerous probability" of recouping the losses suffered from the below-cost pricing are the two elements for establishing:

predatory pricing

Selling substantially identical goods at reasonably contemporaneous times to different purchasers at a different price, where the effect is to harm competitors, is:

price discrimination

A ________ contract is where a seller agrees to supply all of a buyer's needs, or a buyer agrees to purchase all of a seller's output, or both.

requirements

In some cases of negligence claims, courts adopt the doctrine of __________, in which the facts suggest that the plaintiff's injury must have resulted from the defendant's negligence, but the circumstances are such that the plaintiff is unable to prove negligence.

res ipsa loquitur

In the context of employment discrimination, the Equal Employment Opportunity Commission

retains its right to sue on behalf of an employee even if the worker has signed away his or her own rights.

An employer may not take adverse action, known as __________, against an employee because that employee is participating in a Title VII complaint or investigation.

retaliation

For an offer to be valid it must contain all of the following except:

take written form

Job loss or demotion in the context of sexual harassment law is known as

tangible employment action

In United States v. Lopez, the United States Supreme Court ruled:

that the prosecution of a high school student for taking a gun to school in violation of the Gun Free School Zones Act did violate the Commerce Clause.

Which Amendment to the U.S. Constitution protects free speech?

the First Amendment

The responsibility of appointing officers and adopting bylaws for a corporation lies with:

the board of directors

The United States and __________ provide the most antitrust enforcement.

the european union

Which of the following rules provides that evidence secured in violation of the Fourth Amendment may not be used against a defendant at trial?

the exclusionary rule

Private parties may sue for __________ damages when they believe a merger has unlawfully harmed them.

treble

The intentional entry onto the land belonging to another without consent is:

trespass

An employer need not accommodate an employee's religious practice or belief if it creates a(n) __________ for the employer.

undue hardship

Consequences for violating securities laws include all of the following except:

unjust enrichment.

When a software development firm acquires a computer hardware manufacturing firm, it results in a __________ merger.

vertical

Which of the following is a restraint imposed by suppliers on their buyers?

vertical restraints of trade

Employers will be held liable under __________ reasoning for harm to third parties caused by the intentional or negligent acts of their employees when those acts occur on the job.

vicarious liability