MGT102-HK. LEGAL ENVIRONMENT OF BUSINESS (MGT102-HK) > TAKE ASSESSMENT: EXAM 3 Question 1 1 points Save An unfair labor case is filed with the National Labor Relations Board and goes before an administrative law judge for resolution. If one of the parties is unhappy with the decision of the judge, they may appeal to: a. the National Labor Relations Board b. U.S. Court of Appeals c. the administrative appeals law judge d. U.S. federal district court e. no appeal is allowed Question 2 1 points Save Indirect exporting involves: a. the development of an organization within the company that is responsible for export business b. ships by a company directly to its overseas customers c. using an exporter or foreign purchasing agent who sells products in foreign markets for U.S. manufacturers d. a contractual arrangement to allow a foreign company to use company patents and trademarks for a fee e. none of the above Question 3 1 points Save The main concern of the National Labor Relations Board is with: a. employers assisting labor organization b. employers that form unions for their employees c. proper procedures used in relations between employers and employees d. the substance contained in collective bargaining agreements e. all of the above Question 4 1 points Save Producers of quality brand-name products, such as Sony, often favor resale price maintenance because it: a. allows retailers to earn higher profits b. encourages retailers to advertise more c. encourages retailers to give customers better service d. promotes retail competition based on service e. all of the above Question 5 1 points Save If a dispute between an employer and the union representing workers cannot be resolved by the standard internal grievance procedure, then most collective bargaining agreements call for the dispute to go to: a. federal district court b. the National Labor Relations Board c. an outside labor arbitrator d. the LaborResolution Board e. none of the above Question 6 1 points Save The Securities Litigation Uniform Standards Act of 1998 requires: a. all securities litigation to occur in federal court b. securities litigation involving nationally traded securities must be in federal court c. all state securities laws to come into conformance with federal standards d. internationally traded securities to come under the rules of the London Treaty e. none of the above Question 7 1 points Save When a company wants to take over another, it may issue: a. a tender offer b. a proxy c. a merit regulation offer d. a margin requirement e. none of the above Question 8 1 points Save The Worker Adjustment and Retraining Notification Act requires certain employers planning large layoffs to: a. give employee advance notice b. give employees and certain officials advanced notice c. to notify the Secretary of Labor d. find new jobs for employees who will lose jobs e. to contact the state unemployment commission Question 9 1 points Save Charging different prices in different markets for the same goods is called: a. predatory pricing b. price discrimination c. price disparagement d. boycotting e. vertical discrimination Question 10 1 points Save In a suit for fraud against the issuer of a security, which element would not have to be shown? a. a security was involved b. there was a misleading statement or material omission c. the bad information was from an SEC filing d. all elements must be shown e. none of these elements are necessary, but make for a stronger case Question 11 1 points Save The Foreign Corrupt Practices Act: a. prohibits exporting goods that could corrupt foreigners b. prohibits U.S. companies from bribing foreign officials c. prohibits the import of corrupting goods, such as foreign pornography, into the U.S. d. both a and c e. prohibits the payment of bribes to U.S. legislators by foreign lobbyists Question 12 1 points Save In an international contract, a force majeure clause: a. specifies the contingencies in the event of a specified occurrence contemplated by the parties during the negotiation of the contract b. protects contracting parties from problems arising from problems beyond their control c. is triggered solely by economic rather than social and political activities and events d. an integral part of the arbitration provision when third world governments are involved in the contract e. is not a part of international contracts for the sale of services Question 13 1 points Save Prevention of Significant Deterioration (PSD) areas under the Clean Air Act: a. include the areas in national parks and wilderness areas b. include areas where air quality is better than the levels specified by the national ambient air quality standards c. are allowed only a slight increase in pollution because of their sensitive nature d. is allowed only if the owner agrees to install the best available control technology e. all of the above Question 14 1 points Save A practice of engaging in price discrimination in different markets in an attempt to undercut competitors is known as: a. predatory pricing b. the offense of meeting the competition c. retailer cartelization d. exclusive dealing e. none of the above Question 15 1 points Save The doctrine of sovereign immunity allows: a. a foreign nation to try all cases involving its nationals before an international tribunal b. a domestic business to take all claims against a foreign sovereign before the International Court of Justice c. a domestic court to give up jurisdiction it holds over a foreign enterprise d. a foreign court to bring the U.S. government to trial in all cases involving government departments e. a foreign country to seize the property of businesses if the seizure is for a public purpose and the country pays the business just compensation Question 16 1 points Save If an investigation of a discrimination charge is not settled by the EEOC working with the employer and complaining employee, to carry the case further, the: a. employee must file suit against the employer with an administrative law judge of the EEOC b. EEOC investigator must file suit against the employer with an administrative law judge of the EEOC c. EEOC issues a “right-to-sue” letter giving the employee the right to sue the employer in court d. EEOC must file suit in federal court on behalf of the employee e. EEOC must turn the case over to the Department of Justice for possible prosecution Question 17 1 points Save In the U.S., one important trend of the 1980s in the international business environment was: a. increased direct investment by foreign competitors b. reduced participation by foreign manufacturers in the U.S. market c. significant reduction of U.S. consumer interest in foreign goods d. the erection of significant barriers to trade e. the elimination of regulatory interference by the U.S. government in issues of international business Question 18 1 points Save The Food Additives Amendment (Delaney Clause) to the Food, Drug, and Cosmetic Act: a. prohibited the use of food additives in food sold for consumption by humans b. gave the U.S. Department of Agriculture the authority to study food additives and make the findings public c. gave the FDA authority to set safe use levels of food additives d. prohibited the FDA from regulating food additives e. did none of the above Question 19 1 points Save In recent years, more environmental offenses have been dealt with by government officials as: a. public embarrassments b. crimes c. civil violations of the law d. moral violations e. minor violations of the law Question 20 1 points Save You hire an agent to sell your house for you. Typically, such an agent receives a fee only if they actually sell the house. This person is most likely: a. a universal agent b. a gratuitous agent c. an agent who has an agency coupled with an interest d. a special agent e. none of the above Question 21 1 points Save Employer complaints about workers’ compensation generally revolve around the argument that the system: a. is too uncompromising b. is too expensive c. doesn’t include enough people d. discriminates against the elderly e. is underfunded Question 22 1 points Save William is an attorney in Ohio. Melvin hires William to create a trust for his children. William has not been keeping up with developments in trust law, and so creates an inefficient trust. Under Ohio law, he could have created a much more beneficial trust. In this case: a. William has violated a duty of loyalty b. William has violated a duty of reasonable care c. William has violated a duty of obedience d. William has violated a duty to account e. William may be out-of-date but has violated no duties Question 23 1 points Save The federal agency that has the most to do with regulation of the securities markets is the: a. Securities and Exchange Commission b. Federal Reserve Board c. Federal Trade Commission d. Interstate Securities Commission e. Department of Justice Question 24 1 points Save To help businesses and regulators assess the antitrust implications of a merger, the Department of Justice and FTC created: a. an antitrust task force b. a commission on anticompetitive mergers c. merger guidelines d. the Merger and Unification Rule e. none of these Question 25 1 points Save Workers will not be protected under the NLRA if: a. they engage in threats or acts of violence b. they engage in concerted activities to organize a union c. they refuse to work on a certain job because of hazards d. they discuss unionization among employees while at work e. none of the above apply Question 26 1 points Save A possible way to save the expenses of registering a new security offering is to keep a security exempt from registration. One of these exemptions is called: a. a shelf registration exemption b. an accredited investor exemption c. a private placement exemption d. a blue sky exemption e. none of the above Question 27 1 points Save Regulation Fair Disclosure (FD) requires: a. insiders in companies to release reports on all securities trades b. public companies to release information about significant information within 24 hours of the event or when it first becomes known c. public companies to release information about securities trades by all senior executives and board members d. public companies to provide explanations about all significant changes in the price of securities e. none of the above Question 28 1 points Save A trucking company has ten employees whose job is loading 100-pound sacks on trucks. Of those who apply for the jobs, one man in three can do the lifting, but only one woman in fifty. As a result, all employees are men. In sex discrimination suit, the most likely result will be that the company will: a. lose because the statistics prove the structure of the employment situation is discriminatory b. lose because it could make smaller sacks smaller, which would increase the number of women who would be eligible c. win because there is a business necessity that produces the all male workforce d. win because the work involved is traditional male work e. none of the above Question 29 1 points Save Because foreign judicial forums may not be very effective in resolving many international commercial disputes, many companies look to _______________ to resolve these disputes. a. mediation b. risk selection clauses c. arbitration d. the United Nations e. the Private Court of Justice Question 30 1 points Save During the Middle Ages, rules of law governing commercial transactions in Europe were known as: a. the lex imperium b. the lex mercatoria c. the lex loci d. the lex gentium e. the lex populi Question 31 1 points Save The buyer for an electronics store is bribed by a supplier to order more of the brand sold by the supplier. This action violates which of the agent’s duties? a. notify b. account c. loyalty d. obedience e. all of the above Question 32 1 points Save An example of a US company that makes great use of contract manufacturing is: a. Singer Sewing Machines b. John Deere Tractor Co. c. Jaguar d. Nike e. Sony Question 33 1 points Save Private parties may initiate civil actions for false advertising claims under: a. the Moss-Magnuson Act b. the Cooper-Dewitt Act c. the Lanham Act d. Article 2 of the Constitution e. the Truth-in-Advertising Act Question 34 1 points Save During a union election, which of the following may employers say? a. that all employees will be fired if they unionize b. that employees who join the union will be fired c. that they will close a plant if a union is voted in d. that unionization will have bad economic consequences for the firm and for employees e. none of the above are legal Question 35 1 points Save The main enforcement agency of the Fair Credit Billing Act is: a. the Department of Justice b. the Office of the Attorney General c. the Treasury Department d. the Federal Trade Commission e. there is no government enforcement; all suits are private Question 36 1 points Save The “bubble concept:” a. allows facilities in an industrial complex to be treated as a single pollution source if the complex is expanded b. is used in making EPA technology assessments in PSD areas c. is a part of the emissions offset policy provided for the control of air pollution in nonattainment areas d. is a part of the National Pollution Discharge Elimination System e. is specified as the means through which the acid rain regulations are implemented under the 1990 Amendments Question 37 1 points Save After a plaintiff establishes a prima facie case of employer discrimination under Title VII, what happens? a. the plaintiff wins b. the plaintiff receives a punitive damages award c. the plaintiff concedes the case and the defendant wins d. the defendant automatically loses e. the burden of proof shifts to the employer Question 38 1 points Save Executive Order 11246 was written: a. by the EEOC to require affirmative action programs of all governmental organizations b. by the Commerce Department to require affirmative action programs of all employers of 15 or more persons c. by the EEOC to require affirmative action programs of all organizations employing 15 or more persons d. by the President to require affirmative action programs of government contractors e. by the EEOC to require affirmative action programs of all organizations with federal contracts on behalf of disabled persons Question 39 1 points Save Internationally, the most visible franchises are: a. feedstock cooperatives b. fast food restaurants c. supermarket chains d. gasoline stations e. clothing stores Question 40 1 points Save The main purpose of the LandrumAct is to have: a. the government issue backorders to postpone economically destructive strikes b. state governments to have the ability to pass right-tolaws if they want c. more detailed regulation of internal union affairs d. bad faith bargaining by labor or management subject to strong penalties e. none of the above Question 41 1 points Save The “Mail Order Rule” states that if a company: a. buys products through the mail it must use the U.S. Postal Service, and not a private courier system b. buys products through the mail from a foreign country, it must register with the FTC c. sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advertised d. sells products through the mail is must provide toll-free 800 phone numbers for its customers to use so that they do not spend additional money placing an order e. none of the above are correct Question 42 1 points Save The Americans with Disabilities Act applies to employers with: a. fifteen or more employees b. twenty or more employees c. twenty-five or more employees d. fifty or more employees e. all employers, regardless of the size of their workforce Question 43 1 points Save Vertical restraints of trade are arrangements between: a. manufacturers at the same level of production b. manufactures in the same geographical area c. distributors of the same size d. buyers and sellers e. small-sized sellers and large-sized sellers Question 44 1 points Save Implied authority consists of: a. the power to do whatever is reasonable and customary to carry out the agency purpose b. the power to mingle the funds of the agent and principal c. limits on an agent’s actions, so that the agent may only do what the principal orders, in writing or orally d. the power of the agent to withhold services if the principal fails to pay her e. the power of an agent to do whatever is authorized by the Uniform Agency Act Question 45 1 points Save When liability is imposed on the principal for the unauthorized torts of an agent, it is called: a. vicarious liability b. indemnification c. agent respondeat d. third-party rights, duties, and liabilities e. none of the above Question 46 1 points Save The Clayton Act restricts which of the following? a. exclusive dealing arrangements b. tying arrangements c. mergers found to substantially lessen competition d. interlocking directorates e. all of the above Question 47 1 points Save Nutrition labeling does not require which of the following to be listed per serving portion: a. total fat b. fiber c. calcium d. riboflavin e. carbohydrates Question 48 1 points Save A countervailing duty is a tax on: a. US exports. b. foreign products sold for less abroad than at home. c. foreign goods that have received government subsidies. d. US imports from formerly communist countries. e. intellectual property imported from Western Europe. Question 49 1 points Save The primary focus of the GATT and WTO negotiations has been: a. to reduce trade barriers b. to increase anti-competitive behaviors c. to promote the use non-tariff barriers d. to develop world-wide rules on human rights e. none of these Question 50 1 points Save The Kyoto treaty on greenhouse gas reduction concerning global warming: a. was implemented in over 100 nations in 1999 b. will substantially reduce ozone emissions c. exempts the European Union from compliance due to programs in place already d. is not law in the U.S. e. none of the above Question 51 1 points Save A legal document that establishes some agency relationships is known as: a. articles of incorporation b. power of attorney c. partnership agreement d. decree of guardianship e. motion to represent Question 52 1 points Save The fact that many old industrial areas have become abandoned and firms do not wish to buy the land for future use because of potential Superfund liability is called the problem of: a. urban blight b. urban Superfunds c. urban toxic abandonment d. brownfields e. none of the above Question 53 1 points Save A key motive behind the Sherman Act was: a. concern over the undue influence banks had over Congress b. Congressional concern to limit competition faced by U.S. agricultural producers c. concern that small businesses were too influential in state legislatures d. unpopularity of large businesses organizations e. a desire to end import tariffs Question 54 1 points Save If an agency agreement did not specify how much an agent would be paid for his work, the principal has a ______________ the “customary” amount. a. duty to cooperate b. duty to compensate c. duty to reimburse d. duty to indemnify e. none of the above would apply Question 55 1 points Save When a securities professional buys stock for her own account, then urges investors to buy the same stock so that the price will rise, and benefit her, has committed: a. kiting b. churning c. dealing d. scalping e. none of the above Question 56 1 points Save The Consumer Leasing Act applies to consumer leases for all of the following except a lease: a. of living room furniture for two months b. of an automobile for two years c. of a computer for a year d. of a big-screen television for six months e. all of the above are covered if for household use Question 57 1 points Save The Superfund is funded by: a. a tax on petroleum and chemical companies b. government bonds c. a general corporate income tax d. fines levied against water polluters e. all of the above are sources of funding Question 58 1 points Save Under SEC rules, a “publicly held company” is a company: a. with all its securities held by public, not private, investors b. that has issued securities that are publicly traded c. that belongs to New York Stock Exchange d. with financial assets belonging only to public institutions e. that only sells its securities to public, as opposed to private, investors Question 59 1 points Save In an action alleging environmental damage, by use of the common law of trespass, the plaintiff must show that the: a. pollution is an unreasonable interference and the defendant is not using the best control technology available b. “invasion” of the plaintiff’s property by the defendant’s pollution is physical c. defendant’s pollution significantly affected the public health and welfare in the area d. defendant’s pollution was dangerous and the direct cause of the plaintiff’s injuries e. defendant’s activities breached a duty of care to the plaintiff and directly caused the plaintiff’s injuries Question 60 1 points Save An employer has 1,000 employees of which 550 are suddenly terminated without notice. Under the Worker Adjustment and Retraining Notification Act, the fired employees can: a. receive training from the Department of Labor b. sue for six months back pay plus fringe benefits c. sue for up to 90 days back pay plus fringe benefits d. sue for up to 60 days back pay plus fringe benefits e. sue to be returned to their previous positions Question 61 1 points Save The Americans with Disabilities Act was passed in: a. 1964 b. 1973 c. 1978 d. 1984 e. 1990 Question 62 1 points Save The Clayton Act was passed largely in response to: a. state interference in a federal issue b. the Supreme Court’s interpretations of the Sherman Act c. Congressional dislike of free trade d. price fixing by the Standard Oil Trust e. what were perceived as dangerous fluctuations in the stock market Question 63 1 points Save In order to better manage exchange risk, companies might: a. specify in advance payment in a stable currency b. specify in advance the choice of language c. choose to arbitrate disputes d. follow the rules of the International Convention on the Sale of Goods e. forget it; exchange risk cannot be managed Question 64 1 points Save Which of the following laws regulates the buying and selling of traded securities? a. The Taft-Hartley Act b. The 1933 Securities Act c. the 1934 Securities and Exchange Act d. the Federal Trade Commission Act e. none of these Question 65 1 points Save If an employer is sued for age discrimination, which of the following defenses are not open to that employer? a. the employee was dismissed for good cause b. the employee did not do her work properly c. sex is a bona fide occupational qualification d. younger workers are cheaper to employ than older workers e. the employer was observing a bona fide seniority system Question 66 1 points Save A place of entry in a country that does not assess duties or tariffs on products is called: a. foreign trade zone b. countervailing duty zone. c. duty-free port d. trade-enhancement zone e. none of the above Question 67 1 points Save Which of the following would not be likely to be a violation of the Americans with Disabilities Act, because it goes beyond the scope of the legislation? a. using standardized tests that screen out people with disabilities b. refusing to hire job applicants because they have a history of drug abuse c. refusing to hire a job applicant because an assembly line for automobiles cannot accommodate workers in wheelchairs d. not hiring a disabled person because the bathrooms cannot accommodate wheelchairs e. asking job applicants if they have disabilities Question 68 1 points Save A forum selection clause is concerned with choosing: a. an appropriate bank from which to draw a letter of credit b. a country in which to locate a manufacturing plant c. the country in which a dispute over the contract is to be litigated d. which language will be controlling if disputes concerning the interpretation of a contract arise e. the proper method of payment for a contract Question 69 1 points Save Under Superfund, if there is a hazardous waste site, liability for cleaning it up is apportioned among responsible parties according to: a. EPA’s rule that bills each party according to estimated portion of volume contributed b. EPA’s rule that bills each party according to estimated portion of toxic volume contributed c. joint and several liability, whereby any one party could pay the entire bill d. contribution rule, whereby each responsible party pays an equal portion of the entire bill e. none of the above Question 70 1 points Save When firms at the same level of operation, such as auto parts dealers, get together for some illegal purpose, it is called: a. a horizontal restraint of trade b. a vertical restraint of trade c. a de facto merger d. a concentrated industry e. none of the above Question 71 1 points Save Many companies give employees handbooks that discuss company policy and procedures. Legally, handbooks: a. have no legal status; they are merely advisory b. can create binding contractual employment obligations c. are legal documents that, under the NLRA, are a part of the employment contract d. are documents that, at common law, have always been a part of the employment contract e. none of the above Question 72 1 points Save U-Haul sued a competitor, Jartran, for making false claims about the two companies in its ads. The lawsuit, which was successful, was brought under the: a. FTC Act b. Magnuson-Moss Act c. Lanham Act d. False Advertising Act e. Advertising Substantiation Act Question 73 1 points Save The SEC allows for a private placement exemption because: a. registration of “blue chip” securities is simply not necessary b. small investors have insufficient information about the background of such offerings, so they need this additional protection c. small issuers need a break in the costs of the process to be able to compete effectively with large securities’ issuers d. purchasers of these securities are sophisticated and therefore more able to protect themselves when purchasing unregistered securities e. issuers need greater flexibility when dealing with large numbers of small investors Question 74 1 points Save A red herring: a. is also known as the registration statement b. is also called a prospectus c. represents an offer to sell a security d. is a preliminary version of a prospectus e. none of the above Question 75 1 points Save According to Article 39 of its Statute, the International Court of Justice has the power to decide international disputes. However, standing to bring suit is limited to: a. aggrieved individuals–except businesses–with no acceptneutral forum for dispute resolution b. aggrieved parties–but only in commercial transactions–with disputes that cannot be resolved by arbitration c. aggrieved parties–both individuals and businesses–but only if they have a specific clause in their contract calling for resolution by the International Court d. only those countries that are part of the world community–no individuals or businesses have standing e. only those countries that are part of the world community and which do not have a well-defined judicial system Question 76 1 points Save The first federal law that specifically addressed equal employment issues was the: a. LandrumAct of 1959 b. Civil Rights Act of 1964 c. National Labor Relations Act of 1935 d. Interstate Commerce Act of 1887 e. Equal Pay Act of 1963 Question 77 1 points Save Public nuisance cases are usually brought against a polluter by: a. an injured person seeking damages for unreasonable interference with her land b. a consumer group, suing under a citizen suit provision in the law c. the city attorney or other similar public official in the community’s name d. the federal government under the direction of either the EPA or the Interior Department e. a federal prosecutor since the defendant’s activities are criminal in nature Question 78 1 points Save Under the 1990 Clean Air Act: a. Congress provided for the control of pollution originating in the foreign countries b. Congress provided for an import duty on those goods produced at foreign plants that do not use pollution controls c. Congress required further reductions in the emission of toxic pollutants d. concentrates on limiting pollutants from autos, calling for a 35% reduction by 2001 e. provide an exemption to coal-fired power plants from sulfur dioxide and nitrogen oxide emission reductions Question 79 1 points Save The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may: a. not be sued for insider trading since he did not engage in trades; his relatives can be sued b. not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company c. not be sued for insider trading under the Supreme Court rule in the Dirks case d. be sued for insider trading because he gave out inside information he had a fiduciary duty to keep secret e. be sued depending on the details of his contract with Big Ships regarding insider trading Question 80 1 points Save In a corporation, the principal is: a. the stockholders b. the president c. the board of directors d. the agent e. none of the above are principals Question 81 1 points Save Workers’ compensation law: a. gives an employer immunity from employee tort suits arising from onaccidents b. applies only to accidents that conform to a specified set of allowable workinjuries c. holds employees responsible for reimbursing employers for the cost of injuries for which employees are at fault d. is a federal program that is mandatory for nearly all workers e. all of the above Question 82 1 points Save A key element of an agency relationship is: a. an agent’s ability to transact business for the principal b. any relationship established for the sale of land be an oral contract c. the principal acts for the benefit of the agent d. a commitment for at least one year, to show intent to bind the parties to the agency relationship e. none of the above Question 83 1 points Save In a movement to unionize, employees of a company sign: a. an official unionscroll b. individual union work sheets c. authorization cards d. NLRB documentation forms e. none of the above Question 84 1 points Save The Investment Company Act: a. holds investment companies liable to private parties for violations of the Act b. holds investment companies liable to the SEC for violations of the Act c. makes the activities of investment companies subject to regulation d. requires investment companies to register with the SEC e. all of the above apply under the ICA Question 85 1 points Save One group of products that must receive FDA approval before they are sold, and that the Supreme Court has held are not immune from tort liability are: a. medicines used to treat diabetes b. medical devices c. medicines used to treat AIDS d. medicines used to treat communicable diseases e. all anaesthetics Question 86 1 points Save The Food and Drug Administration does not have which of the following powers: a. to restrict false advertising of drugs b. to inspect plants where drugs are manufactured c. to set the levels of additives that may be used in food d. to seize drugs that are already approved to be on the market e. all of the above are FDA powers Question 87 1 points Save The Family and Medical Leave Act: a. applies to all private employers b. applies only to governmental units c. requires six months paid leave for childbirth d. applies only if spouse or child is seriously ill e. none of the above Question 88 1 points Save A company advertises on TV that test driving their car from New York to Los Angeles they got 35 miles per gallon. The ad is true, but the mileage was achieved by professional drivers who drove carefully at the speed limit, which resulted in better mileage than the ordinary driver gets. Under the FTC deception policy, this ad is: a. not deceptive; because most consumers understand that test mileage is not the same as regular highway driving b. not deceptive by definition if the company can provide documents that show that the tests were accurate c. deceptive because the ad omits important facts about the test that fail to provide full information d. deceptive because the ad will mislead consumers who do not know how such mileage tests are conducted e. none of the above Question 89 1 points Save In a case at common law for trespass, which is necessary? a. there must be a direct breach of the boundaries of another person’s land b. the invasion of another’s land must be of “serious” magnitude c. the invasion of another’s land must be intentional d. there need be an interference with the use and enjoyment of another person’s property only e. none of the above Question 90 1 points Save Which of the following is not a requirement of the Drug-Free Workplace Act of 1988 imposed on all companies that do more than $25,000 worth of business with the federal government? a. publish a policy that substance abuse in the workplace is prohibited b. test new employees for possible drug use c. establish a drug-awareness program for employees d. specify what actions will be taken against employees who violate company drug policies e. all of the above are required Question 91 1 points Save When a seller will sell a product only on the condition that the buyer also purchases a different product, there is a: a. resale price maintenance agreement b. an exclusive dealing arrangement c. a group boycott d. a tiesale e. a Robinsonprice discrimination sale Question 92 1 points Save A noteworthy change at the FDA is its: a. greater reluctance to approve drugs for use in life-threatening situations due to high toxicity of such drugs b. regulation of the sale of fish and shellfish c. increased inspection of foreign fruit shipments d. allowing quicker approval for use of drugs that show promise in treating life-threatening diseases e. dropping the quarantine requirements that apply to animals brought into the U.S. Question 93 1 points Save A closed shop, prohibited by the TaftAct: a. is an employer who refuses to hire outemployees b. means an employee must be a union member before working at a unionized work place c. means a place of employment closed to all union members d. refers to shutting down all work production before a strike has a chance to occur e. none of the above Question 94 1 points Save Kurt works for Jeris. One evening Kurt decides to use the company truck to pick up his date. On his way home from the movies, after dropping his date off, Kurt runs a red light and smashes into Bob. Is Jeris liable to Bob? a. es, because Kurt was her agent b. yes, because Kurt was driving her truck c. no, because Kurt was acting outside the scope of his employment d. no, because Kurt was an independent contractor when not on the job e. no, because Kurt’s actions negligent, not intentional Question 95 1 points Save The Clean Air Act requirements are: a. applicable to pesticides only b. applicable to all pollutants c. applicable to automobiles only d. no longer necessary because polluters have complied with the Act e. applicable to six major air pollutants emitted from stationary and mobile sources Question 96 1 points Save Which of the following questions would not violate the Americans with Disability Act to ask of a job applicant: a. how many sick days did you use last year? b. does stress at work ever bother you? c. are you capable of doing the rigors demanded of this job? d. have you been treated for drug abuse? e. all would violate the law Question 97 1 points Save Dumping is: a. the sale of foreign refuse in U.S. markets b. the export of U.S. goods at market rates c. charging a lower price in foreign than in the home market d. receiving unfair subsidies for foreign governments e. charging foreign consumers a higher price than in the home market Question 98 1 points Save In the insider trading cases that have made big news, such as those involving Ivan Boesky, the main illegal act was that they traded stock in: a. their own companies, based on information they learned about forthcoming events b. other companies based on information they obtain by theft of documents c. companies based on information they had a fiduciary duty not to reveal to others or to use for personal gain d. companies not properly registered with the SEC under the 1933 Securities Act e. none of the above Question 99 1 points Save A secondary boycott, in general, is: a. a strike or other action by a union against the employer of the employees whose collective bargaining agreement is in question b. a strike or other action by an employer in retaliation for the primary boycott c. an attempt to force others to stop doing business with an employer not directly involved in the labor dispute d. a strike or action against indirect buyers e. none of the above Question 100 1 points Under the Americans with Disabilities Act, employers are required to make reasonable accommodations. This could include: a. providing a reader for a blind employee b. providing wheelchair access to company facilities c. modifying work schedules to accommodate disabled employees d. redesigning work stations so they are usable by disabled persons e. all of the above MGT102-HK. LEGAL ENVIRONMENT OF BUSINESS (MGT102-HK) > TAKE ASSESSMENT: EXAM 3 Question 1 1 points Save An unfair labor case is filed with the National Labor Relations Board and goes before an administrative law judge for resolution. If one of the parties is unhappy with the decision of the judge, they may appeal to: a. the National Labor Relations Board b. U.S. Court of Appeals c. the administrative appeals law judge d. U.S. federal district court e. no appeal is allowed Question 2 1 points Save Indirect exporting involves: a. the development of an organization within the company that is responsible for export business b. ships by a company directly to its overseas customers c. using an exporter or foreign purchasing agent who sells products in foreign markets for U.S. manufacturers d. a contractual arrangement to allow a foreign company to use company patents and trademarks for a fee e. none of the above Question 3 1 points Save The main concern of the National Labor Relations Board is with: a. employers assisting labor organization b. employers that form unions for their employees c. proper procedures used in relations between employers and employees d. the substance contained in collective bargaining agreements e. all of the above Question 4 1 points Save Producers of quality brand-name products, such as Sony, often favor resale price maintenance because it: a. allows retailers to earn higher profits b. encourages retailers to advertise more c. encourages retailers to give customers better service d. promotes retail competition based on service e. all of the above Question 5 1 points Save If a dispute between an employer and the union representing workers cannot be resolved by the standard internal grievance procedure, then most collective bargaining agreements call for the dispute to go to: a. federal district court b. the National Labor Relations Board c. an outside labor arbitrator d. the LaborResolution Board e. none of the above Question 6 1 points Save The Securities Litigation Uniform Standards Act of 1998 requires: a. all securities litigation to occur in federal court b. securities litigation involving nationally traded securities must be in federal court c. all state securities laws to come into conformance with federal standards d. internationally traded securities to come under the rules of the London Treaty e. none of the above Question 7 1 points Save When a company wants to take over another, it may issue: a. a tender offer b. a proxy c. a merit regulation offer d. a margin requirement e. none of the above Question 8 1 points Save The Worker Adjustment and Retraining Notification Act requires certain employers planning large layoffs to: a. give employee advance notice b. give employees and certain officials advanced notice c. to notify the Secretary of Labor d. find new jobs for employees who will lose jobs e. to contact the state unemployment commission Question 9 1 points Save Charging different prices in different markets for the same goods is called: a. predatory pricing b. price discrimination c. price disparagement d. boycotting e. vertical discrimination Question 10 1 points Save In a suit for fraud against the issuer of a security, which element would not have to be shown? a. a security was involved b. there was a misleading statement or material omission c. the bad information was from an SEC filing d. all elements must be shown e. none of these elements are necessary, but make for a stronger case Question 11 1 points Save The Foreign Corrupt Practices Act: a. prohibits exporting goods that could corrupt foreigners b. prohibits U.S. companies from bribing foreign officials c. prohibits the import of corrupting goods, such as foreign pornography, into the U.S. d. both a and c e. prohibits the payment of bribes to U.S. legislators by foreign lobbyists Question 12 1 points Save In an international contract, a force majeure clause: a. specifies the contingencies in the event of a specified occurrence contemplated by the parties during the negotiation of the contract b. protects contracting parties from problems arising from problems beyond their control c. is triggered solely by economic rather than social and political activities and events d. an integral part of the arbitration provision when third world governments are involved in the contract e. is not a part of international contracts for the sale of services Question 13 1 points Save Prevention of Significant Deterioration (PSD) areas under the Clean Air Act: a. include the areas in national parks and wilderness areas b. include areas where air quality is better than the levels specified by the national ambient air quality standards c. are allowed only a slight increase in pollution because of their sensitive nature d. is allowed only if the owner agrees to install the best available control technology e. all of the above Question 14 1 points Save A practice of engaging in price discrimination in different markets in an attempt to undercut competitors is known as: a. predatory pricing b. the offense of meeting the competition c. retailer cartelization d. exclusive dealing e. none of the above Question 15 1 points Save The doctrine of sovereign immunity allows: a. a foreign nation to try all cases involving its nationals before an international tribunal b. a domestic business to take all claims against a foreign sovereign before the International Court of Justice c. a domestic court to give up jurisdiction it holds over a foreign enterprise d. a foreign court to bring the U.S. government to trial in all cases involving government departments e. a foreign country to seize the property of businesses if the seizure is for a public purpose and the country pays the business just compensation Question 16 1 points Save If an investigation of a discrimination charge is not settled by the EEOC working with the employer and complaining employee, to carry the case further, the: a. employee must file suit against the employer with an administrative law judge of the EEOC b. EEOC investigator must file suit against the employer with an administrative law judge of the EEOC c. EEOC issues a “right-to-sue” letter giving the employee the right to sue the employer in court d. EEOC must file suit in federal court on behalf of the employee e. EEOC must turn the case over to the Department of Justice for possible prosecution Question 17 1 points Save In the U.S., one important trend of the 1980s in the international business environment was: a. increased direct investment by foreign competitors b. reduced participation by foreign manufacturers in the U.S. market c. significant reduction of U.S. consumer interest in foreign goods d. the erection of significant barriers to trade e. the elimination of regulatory interference by the U.S. government in issues of international business Question 18 1 points Save The Food Additives Amendment (Delaney Clause) to the Food, Drug, and Cosmetic Act: a. prohibited the use of food additives in food sold for consumption by humans b. gave the U.S. Department of Agriculture the authority to study food additives and make the findings public c. gave the FDA authority to set safe use levels of food additives d. prohibited the FDA from regulating food additives e. did none of the above Question 19 1 points Save In recent years, more environmental offenses have been dealt with by government officials as: a. public embarrassments b. crimes c. civil violations of the law d. moral violations e. minor violations of the law Question 20 1 points Save You hire an agent to sell your house for you. Typically, such an agent receives a fee only if they actually sell the house. This person is most likely: a. a universal agent b. a gratuitous agent c. an agent who has an agency coupled with an interest d. a special agent e. none of the above Question 21 1 points Save Employer complaints about workers’ compensation generally revolve around the argument that the system: a. is too uncompromising b. is too expensive c. doesn’t include enough people d. discriminates against the elderly e. is underfunded Question 22 1 points Save William is an attorney in Ohio. Melvin hires William to create a trust for his children. William has not been keeping up with developments in trust law, and so creates an inefficient trust. Under Ohio law, he could have created a much more beneficial trust. In this case: a. William has violated a duty of loyalty b. William has violated a duty of reasonable care c. William has violated a duty of obedience d. William has violated a duty to account e. William may be out-of-date but has violated no duties Question 23 1 points Save The federal agency that has the most to do with regulation of the securities markets is the: a. Securities and Exchange Commission b. Federal Reserve Board c. Federal Trade Commission d. Interstate Securities Commission e. Department of Justice Question 24 1 points Save To help businesses and regulators assess the antitrust implications of a merger, the Department of Justice and FTC created: a. an antitrust task force b. a commission on anticompetitive mergers c. merger guidelines d. the Merger and Unification Rule e. none of these Question 25 1 points Save Workers will not be protected under the NLRA if: a. they engage in threats or acts of violence b. they engage in concerted activities to organize a union c. they refuse to work on a certain job because of hazards d. they discuss unionization among employees while at work e. none of the above apply Question 26 1 points Save A possible way to save the expenses of registering a new security offering is to keep a security exempt from registration. One of these exemptions is called: a. a shelf registration exemption b. an accredited investor exemption c. a private placement exemption d. a blue sky exemption e. none of the above Question 27 1 points Save Regulation Fair Disclosure (FD) requires: a. insiders in companies to release reports on all securities trades b. public companies to release information about significant information within 24 hours of the event or when it first becomes known c. public companies to release information about securities trades by all senior executives and board members d. public companies to provide explanations about all significant changes in the price of securities e. none of the above Question 28 1 points Save A trucking company has ten employees whose job is loading 100-pound sacks on trucks. Of those who apply for the jobs, one man in three can do the lifting, but only one woman in fifty. As a result, all employees are men. In sex discrimination suit, the most likely result will be that the company will: a. lose because the statistics prove the structure of the employment situation is discriminatory b. lose because it could make smaller sacks smaller, which would increase the number of women who would be eligible c. win because there is a business necessity that produces the all male workforce d. win because the work involved is traditional male work e. none of the above Question 29 1 points Save Because foreign judicial forums may not be very effective in resolving many international commercial disputes, many companies look to _______________ to resolve these disputes. a. mediation b. risk selection clauses c. arbitration d. the United Nations e. the Private Court of Justice Question 30 1 points Save During the Middle Ages, rules of law governing commercial transactions in Europe were known as: a. the lex imperium b. the lex mercatoria c. the lex loci d. the lex gentium e. the lex populi Question 31 1 points Save The buyer for an electronics store is bribed by a supplier to order more of the brand sold by the supplier. This action violates which of the agent’s duties? a. notify b. account c. loyalty d. obedience e. all of the above Question 32 1 points Save An example of a US company that makes great use of contract manufacturing is: a. Singer Sewing Machines b. John Deere Tractor Co. c. Jaguar d. Nike e. Sony Question 33 1 points Save Private parties may initiate civil actions for false advertising claims under: a. the Moss-Magnuson Act b. the Cooper-Dewitt Act c. the Lanham Act d. Article 2 of the Constitution e. the Truth-in-Advertising Act Question 34 1 points Save During a union election, which of the following may employers say? a. that all employees will be fired if they unionize b. that employees who join the union will be fired c. that they will close a plant if a union is voted in d. that unionization will have bad economic consequences for the firm and for employees e. none of the above are legal Question 35 1 points Save The main enforcement agency of the Fair Credit Billing Act is: a. the Department of Justice b. the Office of the Attorney General c. the Treasury Department d. the Federal Trade Commission e. there is no government enforcement; all suits are private Question 36 1 points Save The “bubble concept:” a. allows facilities in an industrial complex to be treated as a single pollution source if the complex is expanded b. is used in making EPA technology assessments in PSD areas c. is a part of the emissions offset policy provided for the control of air pollution in nonattainment areas d. is a part of the National Pollution Discharge Elimination System e. is specified as the means through which the acid rain regulations are implemented under the 1990 Amendments Question 37 1 points Save After a plaintiff establishes a prima facie case of employer discrimination under Title VII, what happens? a. the plaintiff wins b. the plaintiff receives a punitive damages award c. the plaintiff concedes the case and the defendant wins d. the defendant automatically loses e. the burden of proof shifts to the employer Question 38 1 points Save Executive Order 11246 was written: a. by the EEOC to require affirmative action programs of all governmental organizations b. by the Commerce Department to require affirmative action programs of all employers of 15 or more persons c. by the EEOC to require affirmative action programs of all organizations employing 15 or more persons d. by the President to require affirmative action programs of government contractors e. by the EEOC to require affirmative action programs of all organizations with federal contracts on behalf of disabled persons Question 39 1 points Save Internationally, the most visible franchises are: a. feedstock cooperatives b. fast food restaurants c. supermarket chains d. gasoline stations e. clothing stores Question 40 1 points Save The main purpose of the LandrumAct is to have: a. the government issue backorders to postpone economically destructive strikes b. state governments to have the ability to pass right-tolaws if they want c. more detailed regulation of internal union affairs d. bad faith bargaining by labor or management subject to strong penalties e. none of the above Question 41 1 points Save The “Mail Order Rule” states that if a company: a. buys products through the mail it must use the U.S. Postal Service, and not a private courier system b. buys products through the mail from a foreign country, it must register with the FTC c. sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advertised d. sells products through the mail is must provide toll-free 800 phone numbers for its customers to use so that they do not spend additional money placing an order e. none of the above are correct Question 42 1 points Save The Americans with Disabilities Act applies to employers with: a. fifteen or more employees b. twenty or more employees c. twenty-five or more employees d. fifty or more employees e. all employers, regardless of the size of their workforce Question 43 1 points Save Vertical restraints of trade are arrangements between: a. manufacturers at the same level of production b. manufactures in the same geographical area c. distributors of the same size d. buyers and sellers e. small-sized sellers and large-sized sellers Question 44 1 points Save Implied authority consists of: a. the power to do whatever is reasonable and customary to carry out the agency purpose b. the power to mingle the funds of the agent and principal c. limits on an agent’s actions, so that the agent may only do what the principal orders, in writing or orally d. the power of the agent to withhold services if the principal fails to pay her e. the power of an agent to do whatever is authorized by the Uniform Agency Act Question 45 1 points Save When liability is imposed on the principal for the unauthorized torts of an agent, it is called: a. vicarious liability b. indemnification c. agent respondeat d. third-party rights, duties, and liabilities e. none of the above Question 46 1 points Save The Clayton Act restricts which of the following? a. exclusive dealing arrangements b. tying arrangements c. mergers found to substantially lessen competition d. interlocking directorates e. all of the above Question 47 1 points Save Nutrition labeling does not require which of the following to be listed per serving portion: a. total fat b. fiber c. calcium d. riboflavin e. carbohydrates Question 48 1 points Save A countervailing duty is a tax on: a. US exports. b. foreign products sold for less abroad than at home. c. foreign goods that have received government subsidies. d. US imports from formerly communist countries. e. intellectual property imported from Western Europe. Question 49 1 points Save The primary focus of the GATT and WTO negotiations has been: a. to reduce trade barriers b. to increase anti-competitive behaviors c. to promote the use non-tariff barriers d. to develop world-wide rules on human rights e. none of these Question 50 1 points Save The Kyoto treaty on greenhouse gas reduction concerning global warming: a. was implemented in over 100 nations in 1999 b. will substantially reduce ozone emissions c. exempts the European Union from compliance due to programs in place already d. is not law in the U.S. e. none of the above Question 51 1 points Save A legal document that establishes some agency relationships is known as: a. articles of incorporation b. power of attorney c. partnership agreement d. decree of guardianship e. motion to represent Question 52 1 points Save The fact that many old industrial areas have become abandoned and firms do not wish to buy the land for future use because of potential Superfund liability is called the problem of: a. urban blight b. urban Superfunds c. urban toxic abandonment d. brownfields e. none of the above Question 53 1 points Save A key motive behind the Sherman Act was: a. concern over the undue influence banks had over Congress b. Congressional concern to limit competition faced by U.S. agricultural producers c. concern that small businesses were too influential in state legislatures d. unpopularity of large businesses organizations e. a desire to end import tariffs Question 54 1 points Save If an agency agreement did not specify how much an agent would be paid for his work, the principal has a ______________ the “customary” amount. a. duty to cooperate b. duty to compensate c. duty to reimburse d. duty to indemnify e. none of the above would apply Question 55 1 points Save When a securities professional buys stock for her own account, then urges investors to buy the same stock so that the price will rise, and benefit her, has committed: a. kiting b. churning c. dealing d. scalping e. none of the above Question 56 1 points Save The Consumer Leasing Act applies to consumer leases for all of the following except a lease: a. of living room furniture for two months b. of an automobile for two years c. of a computer for a year d. of a big-screen television for six months e. all of the above are covered if for household use Question 57 1 points Save The Superfund is funded by: a. a tax on petroleum and chemical companies b. government bonds c. a general corporate income tax d. fines levied against water polluters e. all of the above are sources of funding Question 58 1 points Save Under SEC rules, a “publicly held company” is a company: a. with all its securities held by public, not private, investors b. that has issued securities that are publicly traded c. that belongs to New York Stock Exchange d. with financial assets belonging only to public institutions e. that only sells its securities to public, as opposed to private, investors Question 59 1 points Save In an action alleging environmental damage, by use of the common law of trespass, the plaintiff must show that the: a. pollution is an unreasonable interference and the defendant is not using the best control technology available b. “invasion” of the plaintiff’s property by the defendant’s pollution is physical c. defendant’s pollution significantly affected the public health and welfare in the area d. defendant’s pollution was dangerous and the direct cause of the plaintiff’s injuries e. defendant’s activities breached a duty of care to the plaintiff and directly caused the plaintiff’s injuries Question 60 1 points Save An employer has 1,000 employees of which 550 are suddenly terminated without notice. Under the Worker Adjustment and Retraining Notification Act, the fired employees can: a. receive training from the Department of Labor b. sue for six months back pay plus fringe benefits c. sue for up to 90 days back pay plus fringe benefits d. sue for up to 60 days back pay plus fringe benefits e. sue to be returned to their previous positions Question 61 1 points Save The Americans with Disabilities Act was passed in: a. 1964 b. 1973 c. 1978 d. 1984 e. 1990 Question 62 1 points Save The Clayton Act was passed largely in response to: a. state interference in a federal issue b. the Supreme Court’s interpretations of the Sherman Act c. Congressional dislike of free trade d. price fixing by the Standard Oil Trust e. what were perceived as dangerous fluctuations in the stock market Question 63 1 points Save In order to better manage exchange risk, companies might: a. specify in advance payment in a stable currency b. specify in advance the choice of language c. choose to arbitrate disputes d. follow the rules of the International Convention on the Sale of Goods e. forget it; exchange risk cannot be managed Question 64 1 points Save Which of the following laws regulates the buying and selling of traded securities? a. The Taft-Hartley Act b. The 1933 Securities Act c. the 1934 Securities and Exchange Act d. the Federal Trade Commission Act e. none of these Question 65 1 points Save If an employer is sued for age discrimination, which of the following defenses are not open to that employer? a. the employee was dismissed for good cause b. the employee did not do her work properly c. sex is a bona fide occupational qualification d. younger workers are cheaper to employ than older workers e. the employer was observing a bona fide seniority system Question 66 1 points Save A place of entry in a country that does not assess duties or tariffs on products is called: a. foreign trade zone b. countervailing duty zone. c. duty-free port d. trade-enhancement zone e. none of the above Question 67 1 points Save Which of the following would not be likely to be a violation of the Americans with Disabilities Act, because it goes beyond the scope of the legislation? a. using standardized tests that screen out people with disabilities b. refusing to hire job applicants because they have a history of drug abuse c. refusing to hire a job applicant because an assembly line for automobiles cannot accommodate workers in wheelchairs d. not hiring a disabled person because the bathrooms cannot accommodate wheelchairs e. asking job applicants if they have disabilities Question 68 1 points Save A forum selection clause is concerned with choosing: a. an appropriate bank from which to draw a letter of credit b. a country in which to locate a manufacturing plant c. the country in which a dispute over the contract is to be litigated d. which language will be controlling if disputes concerning the interpretation of a contract arise e. the proper method of payment for a contract Question 69 1 points Save Under Superfund, if there is a hazardous waste site, liability for cleaning it up is apportioned among responsible parties according to: a. EPA’s rule that bills each party according to estimated portion of volume contributed b. EPA’s rule that bills each party according to estimated portion of toxic volume contributed c. joint and several liability, whereby any one party could pay the entire bill d. contribution rule, whereby each responsible party pays an equal portion of the entire bill e. none of the above Question 70 1 points Save When firms at the same level of operation, such as auto parts dealers, get together for some illegal purpose, it is called: a. a horizontal restraint of trade b. a vertical restraint of trade c. a de facto merger d. a concentrated industry e. none of the above Question 71 1 points Save Many companies give employees handbooks that discuss company policy and procedures. Legally, handbooks: a. have no legal status; they are merely advisory b. can create binding contractual employment obligations c. are legal documents that, under the NLRA, are a part of the employment contract d. are documents that, at common law, have always been a part of the employment contract e. none of the above Question 72 1 points Save U-Haul sued a competitor, Jartran, for making false claims about the two companies in its ads. The lawsuit, which was successful, was brought under the: a. FTC Act b. Magnuson-Moss Act c. Lanham Act d. False Advertising Act e. Advertising Substantiation Act Question 73 1 points Save The SEC allows for a private placement exemption because: a. registration of “blue chip” securities is simply not necessary b. small investors have insufficient information about the background of such offerings, so they need this additional protection c. small issuers need a break in the costs of the process to be able to compete effectively with large securities’ issuers d. purchasers of these securities are sophisticated and therefore more able to protect themselves when purchasing unregistered securities e. issuers need greater flexibility when dealing with large numbers of small investors Question 74 1 points Save A red herring: a. is also known as the registration statement b. is also called a prospectus c. represents an offer to sell a security d. is a preliminary version of a prospectus e. none of the above Question 75 1 points Save According to Article 39 of its Statute, the International Court of Justice has the power to decide international disputes. However, standing to bring suit is limited to: a. aggrieved individuals–except businesses–with no acceptneutral forum for dispute resolution b. aggrieved parties–but only in commercial transactions–with disputes that cannot be resolved by arbitration c. aggrieved parties–both individuals and businesses–but only if they have a specific clause in their contract calling for resolution by the International Court d. only those countries that are part of the world community–no individuals or businesses have standing e. only those countries that are part of the world community and which do not have a well-defined judicial system Question 76 1 points Save The first federal law that specifically addressed equal employment issues was the: a. LandrumAct of 1959 b. Civil Rights Act of 1964 c. National Labor Relations Act of 1935 d. Interstate Commerce Act of 1887 e. Equal Pay Act of 1963 Question 77 1 points Save Public nuisance cases are usually brought against a polluter by: a. an injured person seeking damages for unreasonable interference with her land b. a consumer group, suing under a citizen suit provision in the law c. the city attorney or other similar public official in the community’s name d. the federal government under the direction of either the EPA or the Interior Department e. a federal prosecutor since the defendant’s activities are criminal in nature Question 78 1 points Save Under the 1990 Clean Air Act: a. Congress provided for the control of pollution originating in the foreign countries b. Congress provided for an import duty on those goods produced at foreign plants that do not use pollution controls c. Congress required further reductions in the emission of toxic pollutants d. concentrates on limiting pollutants from autos, calling for a 35% reduction by 2001 e. provide an exemption to coal-fired power plants from sulfur dioxide and nitrogen oxide emission reductions Question 79 1 points Save The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may: a. not be sued for insider trading since he did not engage in trades; his relatives can be sued b. not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company c. not be sued for insider trading under the Supreme Court rule in the Dirks case d. be sued for insider trading because he gave out inside information he had a fiduciary duty to keep secret e. be sued depending on the details of his contract with Big Ships regarding insider trading Question 80 1 points Save In a corporation, the principal is: a. the stockholders b. the president c. the board of directors d. the agent e. none of the above are principals Question 81 1 points Save Workers’ compensation law: a. gives an employer immunity from employee tort suits arising from onaccidents b. applies only to accidents that conform to a specified set of allowable workinjuries c. holds employees responsible for reimbursing employers for the cost of injuries for which employees are at fault d. is a federal program that is mandatory for nearly all workers e. all of the above Question 82 1 points Save A key element of an agency relationship is: a. an agent’s ability to transact business for the principal b. any relationship established for the sale of land be an oral contract c. the principal acts for the benefit of the agent d. a commitment for at least one year, to show intent to bind the parties to the agency relationship e. none of the above Question 83 1 points Save In a movement to unionize, employees of a company sign: a. an official unionscroll b. individual union work sheets c. authorization cards d. NLRB documentation forms e. none of the above Question 84 1 points Save The Investment Company Act: a. holds investment companies liable to private parties for violations of the Act b. holds investment companies liable to the SEC for violations of the Act c. makes the activities of investment companies subject to regulation d. requires investment companies to register with the SEC e. all of the above apply under the ICA Question 85 1 points Save One group of products that must receive FDA approval before they are sold, and that the Supreme Court has held are not immune from tort liability are: a. medicines used to treat diabetes b. medical devices c. medicines used to treat AIDS d. medicines used to treat communicable diseases e. all anaesthetics Question 86 1 points Save The Food and Drug Administration does not have which of the following powers: a. to restrict false advertising of drugs b. to inspect plants where drugs are manufactured c. to set the levels of additives that may be used in food d. to seize drugs that are already approved to be on the market e. all of the above are FDA powers Question 87 1 points Save The Family and Medical Leave Act: a. applies to all private employers b. applies only to governmental units c. requires six months paid leave for childbirth d. applies only if spouse or child is seriously ill e. none of the above Question 88 1 points Save A company advertises on TV that test driving their car from New York to Los Angeles they got 35 miles per gallon. The ad is true, but the mileage was achieved by professional drivers who drove carefully at the speed limit, which resulted in better mileage than the ordinary driver gets. Under the FTC deception policy, this ad is: a. not deceptive; because most consumers understand that test mileage is not the same as regular highway driving b. not deceptive by definition if the company can provide documents that show that the tests were accurate c. deceptive because the ad omits important facts about the test that fail to provide full information d. deceptive because the ad will mislead consumers who do not know how such mileage tests are conducted e. none of the above Question 89 1 points Save In a case at common law for trespass, which is necessary? a. there must be a direct breach of the boundaries of another person’s land b. the invasion of another’s land must be of “serious” magnitude c. the invasion of another’s land must be intentional d. there need be an interference with the use and enjoyment of another person’s property only e. none of the above Question 90 1 points Save Which of the following is not a requirement of the Drug-Free Workplace Act of 1988 imposed on all companies that do more than $25,000 worth of business with the federal government? a. publish a policy that substance abuse in the workplace is prohibited b. test new employees for possible drug use c. establish a drug-awareness program for employees d. specify what actions will be taken against employees who violate company drug policies e. all of the above are required Question 91 1 points Save When a seller will sell a product only on the condition that the buyer also purchases a different product, there is a: a. resale price maintenance agreement b. an exclusive dealing arrangement c. a group boycott d. a tiesale e. a Robinsonprice discrimination sale Question 92 1 points Save A noteworthy change at the FDA is its: a. greater reluctance to approve drugs for use in life-threatening situations due to high toxicity of such drugs b. regulation of the sale of fish and shellfish c. increased inspection of foreign fruit shipments d. allowing quicker approval for use of drugs that show promise in treating life-threatening diseases e. dropping the quarantine requirements that apply to animals brought into the U.S. Question 93 1 points Save A closed shop, prohibited by the TaftAct: a. is an employer who refuses to hire outemployees b. means an employee must be a union member before working at a unionized work place c. means a place of employment closed to all union members d. refers to shutting down all work production before a strike has a chance to occur e. none of the above Question 94 1 points Save Kurt works for Jeris. One evening Kurt decides to use the company truck to pick up his date. On his way home from the movies, after dropping his date off, Kurt runs a red light and smashes into Bob. Is Jeris liable to Bob? a. es, because Kurt was her agent b. yes, because Kurt was driving her truck c. no, because Kurt was acting outside the scope of his employment d. no, because Kurt was an independent contractor when not on the job e. no, because Kurt’s actions negligent, not intentional Question 95 1 points Save The Clean Air Act requirements are: a. applicable to pesticides only b. applicable to all pollutants c. applicable to automobiles only d. no longer necessary because polluters have complied with the Act e. applicable to six major air pollutants emitted from stationary and mobile sources Question 96 1 points Save Which of the following questions would not violate the Americans with Disability Act to ask of a job applicant: a. how many sick days did you use last year? b. does stress at work ever bother you? c. are you capable of doing the rigors demanded of this job? d. have you been treated for drug abuse? e. all would violate the law Question 97 1 points Save Dumping is: a. the sale of foreign refuse in U.S. markets b. the export of U.S. goods at market rates c. charging a lower price in foreign than in the home market d. receiving unfair subsidies for foreign governments e. charging foreign consumers a higher price than in the home market Question 98 1 points Save In the insider trading cases that have made big news, such as those involving Ivan Boesky, the main illegal act was that they traded stock in: a. their own companies, based on information they learned about forthcoming events b. other companies based on information they obtain by theft of documents c. companies based on information they had a fiduciary duty not to reveal to others or to use for personal gain d. companies not properly registered with the SEC under the 1933 Securities Act e. none of the above Question 99 1 points Save A secondary boycott, in general, is: a. a strike or other action by a union against the employer of the employees whose collective bargaining agreement is in question b. a strike or other action by an employer in retaliation for the primary boycott c. an attempt to force others to stop doing business with an employer not directly involved in the labor dispute d. a strike or action against indirect buyers e. none of the above Question 100 1 points Under the Americans with Disabilities Act, employers are required to make reasonable accommodations. This could include: a. providing a reader for a blind employee b. providing wheelchair access to company facilities c. modifying work schedules to accommodate disabled employees d. redesigning work stations so they are usable by disabled persons e. all of the above