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Business Law Final Exam Spring 2008

True/False
Indicate whether the sentence or statement is true or false.
 

 1. 
All serious agreements are contracts.
 

 2. 
The test of the reasonable person is an objective legal test used by jurors or judges.
 

 3. 
Social agreements create legal obligations.
 

 4. 
Every offer, when properly made, is always ended by either acceptance or rejection by the offeree.
 

 5. 
An offer made to one person can be accepted by another.
 

 6. 
Murder and Kidnapping are two examples of infractions.
 

 7. 
The Fifth Amendement of the U.S. Constitution protects individuals against self-incrimination.
 

 8. 
In order for any arrest to be legal, the person being arrested must be read their Miranda rights.
 

 9. 
Sexual harassment laws only apply to full or part-time employees over the age of 18.
 

 10. 
Only people born with disabilities need disability income insurance.
 

 11. 
Smokers pay the same amoutn for life and health insurance coverage as non-smokers.
 

 12. 
All contracts must be in writing.
 

Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 13. 
Which of the following is NOT one of the major requirements for a contract?
a.
time
c.
capacity
b.
genuine assent
d.
consideration
 

 14. 
A valid offer must be communicated to the offeree and
a.
the offeror must intend to create a legal obligation
c.
both a and b
b.
the terms must be definite and complete
d.
none of these
 

 15. 
An unaccepted offer may be terminated by
a.
a counteroffer
c.
the rejection of the offeree
b.
a reasonable length of time
d.
all of these
 

 16. 
Capacity to contract means that the person
a.
has a genuine need for the goods or services purchased
c.
has the ability, according to law, to understand his or her actions and the effect of those actions
b.
has ample room to store goods that are purchased
d.
all of the above
 

 17. 
In the United States, a jury is made up of ____________ jurors.
a.
8
c.
11
b.
9
d.
12
 

 18. 
Which of the following is NOT an element of a crime?
a.
Duty
c.
Criminal Intent
b.
Violation of the Duty
d.
Misdemeanor
 
 
Select the term that best matches the definition given.
 

 19. 
A punishable offense against society.
a.
voir dire
c.
grand jury
b.
crime
d.
intent
 

 20. 
The criminal conduct of taking another’s property or money by a person to whom it has been entrusted
a.
embezzlement
c.
larceny
b.
forgery
d.
fraud
 

 21. 
A crime punishable by confinement of more than a year in a state prison or by a fine of more than $1,000 or both, or even death
a.
misdemeanor
c.
infraction
b.
felony
d.
liability
 

 22. 
A less serious crime usually punishable by confinement for less than one year.
a.
demeanor
c.
bribery
b.
larceny
d.
misdemeanor
 

 23. 
Offenses committed in the business world that do not involve force or violence or cause injury to people of physical damage to property.
a.
white-collar crimes
c.
assault
b.
blue-collar crimes
d.
battery
 

 24. 
The willful and illegal burning of a building.
a.
masonry
c.
conspiracy
b.
arson
d.
indemnity
 

 25. 
Agreeing to plead guilty to a less serious crime in exchange for having a more serous charge dropped.
a.
bribery
c.
bigamy
b.
constitutionality
d.
plea bargaining
 

 26. 
The strategy and evidence presented to prove a defendant is not guilty.
a.
restitution
c.
defense
b.
attorney
d.
liability
 

 27. 
The tort that occurs when a person intentionally threatens to physically or offensively injure someone.
a.
battery
c.
imprisonment
b.
torture
d.
assault
 

 28. 
The tort that occurs when one person makes a false statement that injures the reputation of another.
a.
injunction
c.
litigation
b.
pardoning
d.
defamation
 

 29. 
Defamation by something written.
a.
audible
c.
libel
b.
legal
d.
slander
 

 30. 
Defamation by something spoken.
a.
libel
c.
phishing
b.
slander
d.
wordsmithing
 

 31. 
The jury’s decision in a trial.
a.
translation
c.
delivery
b.
verdict
d.
sequestered
 

 32. 
Statements made by witnesses under oath.
a.
trial
c.
testimony
b.
accounts
d.
verdicts
 

 33. 
When a party to whom an offer has been made agrees to the proposal.
a.
acceptance
c.
offeree
b.
offeror
d.
referee
 

 34. 
Something given or received in a contract.  This could include money or goods.
a.
consideration
c.
product liability
b.
reconciliation
d.
anticipation
 

 35. 
In contracts, consideration must be something of ______________________.
a.
remedy
c.
royalty
b.
charity
d.
legal value
 

 36. 
A type of lawsuit in which one or several persons sue on behalf of themselves AND on behalf of many other’s similarly wronged.  This was the type of lawsuit seen in the movie ‘Erik Brockovich’.
a.
pleading
c.
collective bargaining
b.
class action
d.
plea bargaining
 

 37. 
A statement about a product’s qualities or performance that the seller assures the buyer is true.
a.
promise
c.
warranty
b.
lease
d.
bill of sale
 

 38. 
A warranty explicitly made by the seller.
a.
full warranty
c.
timeless warranty
b.
limited warranty
d.
express warranty
 

 39. 
A business or person who engages another to work for pay.
a.
employee
c.
independent contractor
b.
employer
d.
benefactor
 

 40. 
A person who works under the supervision of another for pay.
a.
employee
c.
independent contractor
b.
employer
d.
mentor
 

 41. 
A person who contracts to do something for another but is not supervised.
a.
employer
c.
independent contractor
b.
employee
d.
mentor
 

 42. 
An employee’s duty to obey the reasonable orders and rules of the employer.
a.
duty of reasonable performance
c.
duty of will
b.
duty of reasonable skill
d.
duty of obedience
 

 43. 
An employee’s duty to posses the skill, experience, or knowledge necessary to do the work accepted.
a.
duty of reasonable performance
c.
duty of will
b.
duty of reasonable skill
d.
duty of obedience
 

 44. 
An employee’s duty to look out for the employer’s best interest
a.
duty of reasonable performance     
c.
duty of will
b.
duty of reasonable skill
d.
duty of loyalty and honesty
 

 45. 
An employment relationship where the employee may be let go at any time for any reason.
a.
employment at large
c.
employment at will
b.
employee of the month
d.
disgruntled employee
 

 46. 
Payment an employer makes to an insurance fund that compensates employees for injuries that occur on the job.
a.
workers’ employment
c.
workers’ liability
b.
workers’ compensation
d.
workers’ accountability
 

 47. 
The amount of money paid to an insurance company for insurance coverage
a.
principle
c.
promissory estoppel
b.
payee
d.
premimum
 

 48. 
Teachers have a legal ______ and responsibility to provide a safe learning environment for their students.
a.
duty
c.
recovery
b.
ruler
d.
tender
 
 
Indicate whether the question is LEGAL or ILLEGAL.
 

 49. 
Your job would be a very physical job with lots of lifting, turning, stretching – have you every filed for any injury claims under worker’s compensation?
a.
Legal
b.
Illegal
 

 50. 
Why do you want to work for our company?
a.
Legal
b.
Illegal
 

 51. 
This job would require you to develop a summer reading program for elementary school children. What kind of day care arrangements will you be making for your own children?
a.
Legal
b.
Illegal
 

 52. 
Do you have a large amount of personal debt?
a.
Legal
b.
Illegal
 

 53. 
This job requires you to type 40 words per minute with no mistakes.  How fast can you type?
a.
Legal
b.
Illegal
 

 54. 
Our company offers discounted airline tickets to all its employees and their immediate families.  Do you think you’d be buying many tickets for your husband or kids?
a.
Legal
b.
Illegal
 

 55. 
In this job, you would be working with children in the reading room – there will be anywhere from 1 year olds to teenagers to deal with every day.  How do you consider yourself qualified for such a job?
a.
Legal
b.
Illegal
 

 56. 
This crime involves taking property from someone in their presence, against their will, by force or by causing fear
a.
embezzlement
c.
robbery
b.
forgery
d.
burglary
 

 57. 
This crime is a type of larceny where the criminal enters a building without permission with the intent of committing a crime.
a.
embezzlement
c.
robbery
b.
forgery
d.
burglary
 

 58. 
Over the past 6 years, Rosemary has taken small amounts of money each week from her company for her personal use.  This crime is known as _______________.
a.
embezzlement
c.
robbery
b.
forgery
d.
burglary
 

 59. 
A person who testifies in a courtroom under oath and lies to the judge or jury may be arrested for _________________.
a.
prejudice
c.
bigamy
b.
perjury
d.
treason
 

 60. 
In a civil case, the person injured who is seeking compensation.
a.
defendant
c.
jury
b.
plaintiff
d.
judge
 

 61. 
In a civil case, the person who is being accused.
a.
plaintiff
c.
jury
b.
defendant
d.
judge
 

 62. 
In a civil case, the defendant can be found guilty based on the preponderance of the evidence.  “preponderance of the evidence” means that at least _________ of the evidence supports a guilty verdict.
a.
10 %
c.
all
b.
51 %
d.
99 %
 

 63. 
Custodial Interrogation means
a.
You are free to leave jail if you are arrested
c.
You have been taken into custody or otherwise deprived of your freedom of action
b.
You must have one of your guardians present if the police question you
d.
You have waived your right to have an attorney present during any questioning by the police
 

 64. 
Which one of these is NOT a condition of a valid offer.
a.
the terms of the offer must be definite
c.
the offer must be communicated to the offeree
b.
the terms of the offer must be complete
d.
all of these are conditions of a valid offer
 

 65. 
You love to text message your friends.  You recently sent over 100 in a single day.  Your parents promise to pay you $50 if you can go one month without sending any text messages on your cell phone.  From your viewpoint, this demonstrates the concept of:
a.
legality
c.
forebearance
b.
foreclosure
d.
fraud
 

 66. 
Your brother Bill offers to sell you his brand new Jeep in exchange for $10.  The Jeep has an actual retail value of $24,000.  You accept, providing him the consideration of $10.  This transaction demonstrates the concept of           
a.
promissory estoppel
c.
the pepper jack theory
b.
proprietorship
d.
the peppercorn theory
 

 67. 
OSHA stands for      
a.
Oversight Safety Hazard Association
c.
Occupational Safety & Health Administration
b.
Overtime Statistics for Hazardous Associations
d.
On-the-Job Standards and Health Association
 

 68. 
The concept of __________ implies that when many people contribute a small amount of money, there is enough to pay those few who have losses.
a.
loss of use
c.
risk pooling
b.
actuarialism
d.
disability pooling
 

Completion
Complete each sentence or statement.