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ETH 321 Final Exam Guide
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ETH 321 Final Exam Guide

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1

​Which of the following statements is true of a grand jury?

 

​A grand jury has the authority to subpoena business records relevant to a lawsuit.

 

​A grand jury determines whether the accused in a lawsuit is innocent or guilty.

 

​At least 20 members should be present on a grand jury to examine evidences and vote on a case.

 

​For an indictment to be returned, only one-third of a grand jury needs to agree that a crime has been committed.

 

2

Alan and Miriam are engaged in a debate on the importance of intellectual property rights. While Alan holds the view that intellectual property protection safeguards the interests of businesses, Miriam thinks that it ultimately puts businesses at a disadvantage by hampering the dissemination of information. Which of the following arguments is most likely to be raised by Alan to strengthen his proposition?​

 

​Intellectual property rights reduce the pace of research and development drastically.

 

​Intellectual property rights result in an increased availability of products.

 

​Intellectual property rights reduce businesses’ market share by facilitating competition.

 

​Intellectual property rights allow businesses to charge premium prices for their products.

3

​According to the __________, the acceptance of an offer results in a binding contract only if it exactly matches the terms of the offer.

 

​mirror image rule

 

​parol evidence rule

 

​exclusive remedy rule

 

​mailbox rule

4

The __________ enacted in 1938 established minimum wage, overtime pay, and record-keeping requirements.​

 

​Uniformed Services Employment and Reemployment Rights Act

 

​Family and Medical Leave Act

 

​Fair Labor Standards Act

 

​Worker Adjustment and Retraining Notification Act

5

The term __________ refers to the placing of an individual in immediate apprehension for his or her physical safety.​

 

​defamation

 

​conversion

 

​assault

 

​battery

6

The term __________ refers to any change in the ownership of a business organization that would alter its legal existence.​

 

​dissolution

 

​consideration

 

​rescission

 

​conversion

7

Which of the following statements is true of the Securities and Exchange Commission?​

 

​Its members are appointed by the senate for a term of four years.

 

​It is responsible for implementing the federal securities laws.

 

​It lacks the authority to frame rules regarding transactions of securities.

 

​Its members are either lawyers or security analysts.

8

A system of equally applied law is a necessity for the foundation of a strong, productive economy because it:​

 

​allows economically strong nations to exploit the resources of weaker nations.

 

​incentivizes private businesses to restrict job opportunities for well-educated people.

 

​encourages strangers to make agreements on certainty and trust.

 

​prohibits individuals from trading in modern private markets.

9

​Which of the following scenarios illustrates a formalist approach to business decisions?

 

​Selling products by deceiving customers about possible negative aspects of the products

 

​Monitoring employee browsing history without their consent to curb non-productive activities

 

​Informing new customers about delays in production schedules

 

​Assigning significantly high productivity targets to reduce costs

10

A(n) __________ refers to the individual or business entity offering a security for sale to the public.​

 

​controlling person

 

​seller

 

​issuer

 

​underwriter

11

​Windy and Ruby plan to present a paper on intellectual property rights. They decide that Windy will present the arguments in favor of intellectual property rights and that Ruby will argue how intellectual property rights could be detrimental to businesses and their customers. Which of the following is most likely to be Ruby’s argument?

 

​Intellectual property rights reduce businesses’ prospects of economic return on investment.

 

​Intellectual property rights reduce the pace of research and development drastically.

 

​Intellectual property rights result in a decrease in the availability of products.

 

​Intellectual property rights do not allow businesses to charge premium prices for their products.

12

Which of the following statements is true of white-collar crimes?​

 

​They are usually committed for personal financial gain.

 

​They rarely affect consumers of a business.

 

​They rarely occur in business environments.

 

​They are dependent on the threat of physical force.

13

​Which of the following scenarios illustrates a bilateral contract?

 

​Grapevine Inc. follows a five-day workweek system and also offers a compressed workweek option.

 

​Sameera, a writer, signs a contract with her publisher to publish her book.

 

​Helen, a painter, signs a contract with an art gallery that agrees to purchase her painting for $2000.

 

​The management of Uno Inc. offers additional benefits to its employees annually.

question14

The Equal Employment Opportunity Commission was created through the __________.​

 

​National Labor Relations Act

 

​Civil Rights Act

 

​Age Discrimination in Employment Act

 

​Americans with Disabilities Act

15

Concerted efforts to lobby government officials, irrespective of their anticompetitive purposes, are given an exception from the Sherman Act under the __________.​

 

​overbreadth doctrine

 

​Colgate doctrine

 

​Noerr-Pennington doctrine

 

​incorporation doctrine 

16

​A __________ is the simplest and least expensive business institution to create.

 

​limited liability company

 

​partnership

 

​sole proprietorship

 

​corporation

17

In a state court system, lawsuits filed by parties typically begin at the __________.​

 

​federal district court level

 

​appellate court level

 

​trial court level

 

​supreme court level

18

According to the Commerce Clause, the power to regulate interstate commerce is vested with __________.​

 

​state governments

 

​state-level courts

 

​the federal government

 

​the U.S. Supreme Court

19

A business decision maker’s decision is more likely to raise ethical concerns in a society where:​

 

​there is an increase in demand for public education.

 

​the family structure is stable.

 

​the news media and the Internet have significant influence.

 

​there is a decrease in economic interdependence.

20

​How does law hold diverse people of different backgrounds into large, organized groups?

 

​It prevents enforcement institutions from enforcing written rules on strangers.

 

​It tells the members of a society what they can and cannot do.

 

​It discourages people from making agreements based on certainty and trust.

 

​It allows strangers to adopt rules that support their beliefs.

21

Courts determine whether the language of an offer was clear enough to result in a contract by:​

 

​examining the objective intent of the offeror.

 

​investigating whether an offeree actually accepted the offer.

 

​examining the adequacy of the consideration offered.

 

​analyzing whether the terms of the acceptance matches the terms of the offer.

22

​Who among the following individuals commits a battery?

 

​Amanda, who fires her employee Trevor without any notice and causes him severe mental distress

 

​Yuki, who injures her boss Reese with a knife and inflicts serious injuries on him

 

​Joan, the customer care manager in a retail store, who verbally threatens a customer who calls to complain about a faulty product

 

​Vincent, the CEO of Gregon Inc., who pays media firms to circulate false information about Gregon’s chief competitor

23

Fuzo Inc., a manufacturer of leather bags, enters into a contract with a firm regarding the installation of a machine in Fuzo’s factory. Fuzo agrees to pay $1000 for the machine and another $200 as the installation charge. In this scenario, the terms of the sale will be covered under __________.​

 

​the Federal Arbitration Act

 

​the Uniform Commercial Code

 

​the Foreign Corrupt Practices Act

 

​the Internal Revenue Code

24

The term __________ refers to the act of referring a matter to arbitration.​

 

​submission

 

​settlement

 

​litigation

 

​conflict

25

__________ is a legal remedy to a breach of contract by which each party to the contract returns the consideration offered by the other.​

 

​Arbitration

 

​Specific performance

 

​Negotiated settlement

 

​Rescission

26

​Which of the following statements is true of alternative dispute resolution (ADR) systems?

 

​ADR systems increase the costs incurred during the litigation process.

 

​The parties to a dispute need not present the case to a jury before opting for ADR systems to settle the dispute.

 

​ADR systems cannot be used for dispute resolution in contractual relationships unless they are specified in the contract.

 

​The litigation process precludes the use of ADR systems.

27

The __________ is the constitutional provision that details the federal government’s power to regulate business activities.​

 

​Commerce Clause

 

​liquidated damages clause

 

​equal protection clause

 

​supremacy clause

question

28

Which of the following legal remedies to a breach of contract allows the parties to the contract to agree to abide by the decision of a third party or parties?​

 

​Arbitration

 

​Specific performance

 

​Negotiated settlement

 

​Rescission

29

__________ refers to an agreement made between competitors in an industry to fix prices of their products.​

 

​Horizontal price fixing 

 

​Resale price fixing

 

​Indirect price fixing

 

​Vertical price fixing

30

The petition for a writ of certiorari by the losing party of a litigation will be reviewed by the U.S. Supreme Court:​

 

​if the winning party agrees to subsequent reviews.

 

​if the federal district courts and the courts of appeal correct the judicial errors charged against the state court.

 

​if at least one of the nine justices vote to take the case.

 

​if there is a major conflict between the trial and appellate courts on the interpretation of federal law.

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