LAW 531 Final Exam

1. What defense can an employer use to a charge of

sexual harassment?
The harassed employee was not made aware of the
company's antiharassment policies.
The harassed employee took advantage of the preventive
measures provided by the company but still could not avoid
being harassed.
The employer does not have any complaint mechanisms for
employees who are harassed.
The employer used reasonable care to prevent and correct
the sexually harassing behavior.
2. Choose the correct statement about the Environmental
Protection Agency (EPA).
It is exclusively created to regulate air pollution standards.
It has the power to initiate judicial trials in case of violation
of environmental laws.
It does not enforce environmental laws related to the
protection of wetlands.
It can enforce federal environmental regulations but cannot
make regulations on its own.
3. What is "riba" in the context of Islamic law?

It
It
It
It

is a compilation of decisions of the prophet.

refers to the making of unearned profits.
is the doctrine of proper behavior.
refers to independent reasoning.

4. The state of Oriel, Selenasia, enacts a law that

imposes a 40 percent tax on automobiles that are
made outside of Selenasia and sold in the state.
However, Oriel does not impose this tax on
Selenasian-made automobiles that are sold in Oriel.
This scenario resembles a violation of which clause
of the U.S. Constitution?

The
The
The
The

Multilateral Treaty Clause

Bilateral Treaty Clause
Foreign Commerce Clause
Treaty Clause

5. Teledor Inc. and Comunika Inc. are two competing

cellphone manufacturers. Jane, a customer at Teledor, is
told by an employee that Comunika phones have weak
battery back-up and are very prone to damage. The
employee makes these remarks even though he knows
that they are completely false. Jane, who has been
contemplating between Teledor and Comunika, is
influenced by what she hears and purchases a Teledor
phone. What kind of intentional tort should be used
against Teledor in this scenario?

Malicious prosecution
Disparagement
Battery
Appropriation

6. Identify an accurate statement about res ipsa loquitur,

a special negligence doctrine.

It applies to cases in which injuries that occurred were not foreseeable.

It applies to cases in which the plaintiff also contributed to the
negligence.
It applies to cases in which it can be assumed that the defendant was
in control of the situation in which the injuries occurred.

It requires the plaintiff to demonstrate how exactly the

situation arose out of the negligence of the plaintiff.

7. Identify an accurate statement

doctrine of comparative negligence.

about

the

A person who is partially responsible for causing his or her

own injuries cannot file a suit against the other party who
partly caused the injuries.
A plaintiff who is partially responsible for causing his or her
own injuries cannot recover damages from the defendant.
A plaintiff who is partially responsible for causing his or her
own injuries can recover a proportion of the damages from
the defendant.
A plaintiff who is partially responsible for causing his or her
own injuries can recover all the damages from the
defendant.
8. What is true about the applicability of strict liability?
It cannot be applied to products that are defectively
manufactured.
It can be applied to sellers who fail to warn of generally
known dangers.
It can be applied to products that are defectively packaged.
It cannot be applied to products that were not supported by
sufficient instructions.
9. Which statement best describes an injunction as an
equitable remedy?
It requires a breaching party to pay damages to the injured
party for both actual and foreseeable losses.
It orders a breaching party to perform the acts promised in a
contract.

 It prohibits a party from performing a particular act

that may cause injury to another party.
It allows a court to change the terms of a contract to
make them true to the parties' intentions.
10. Identify the true statement in the context of a
franchise arrangement.
The franchisee can sell the franchisor's products but can
never manufacture them.
The franchisor licenses the franchisee to use the former's
trademarks.
The franchisee can manufacture the franchisor's products
but can never distribute them directly to consumers.
The franchisor is essentially the owner of the franchisee.
11. Identify an accurate statement about distributional
interest in the context of limited liability companies
(LLCs).
A transferee of a distributional interest receives all
distributions from the LLC to which the transferor belonged.
A member's distributional interest can be transferred
completely, or partly.
A transferee of a distributional interest automatically
becomes a member of the LLC.
A member who transfers his or her distributional interest will
no longer be liable for the debts and obligations of the LLC.
12. What is true about consideration in the context of
contracts?
It also encompasses performances and services.
It is exclusively in the form of tangible payments such as
money or property.

 It is typically included in gift promises.

It is an optional component of a written contract that
parties can choose to omit.

13. What does a current plaintiff need to prove to succeed

in a malicious prosecution lawsuit?

The original plaintiff did not initiate the original lawsuit.

The original lawsuit had probable cause.
The original lawsuit was initiated without malice.
The current plaintiff suffered injury because of the original
lawsuit.

14. In which case will a limited partner in a limited

partnership have liability that extends beyond the
contributions made by him or her?
When the limited partner provides personal guarantee for a
loan taken by the partnership
When one of the general partners withdraws from the limited
partnership
When the limited partnership is involved in a tort and needs
to pay compensation as ordered by the court
When the limited partnership incurs severe losses
15. Identify a difference between publicly held and closely
held corporations.
Shareholders of publicly held corporations participate in
management activities; shareholders of closely held
corporations do not.
Closely held corporations are large; publicly held
corporations are comparatively smaller.

 Publicly held corporations have many shareholders;

closely held corporations have fewer shareholders.
Closely held corporations trade their shares on
organized
security
markets;
publicly
held
corporations do not.

16. Identify a difference between treasury shares and

outstanding shares in a corporation.
Outstanding shares are the ones that are repurchased by the
corporation; treasury shares are not.
Outstanding shares have the right to vote; treasury shares
do not.
Treasury shares are issued by the corporation; outstanding
shares are not.
Treasury shares cannot be reissued; outstanding shares can
be.
17. What is true about the scope of Good Samaritan laws
in the context of special negligence doctrines?
They apply to professionals like lawyers and architects.
They protect professionals from liability for their ordinary
and gross negligence.
They apply to medical health professionals.
They protect manufacturers and distributors from product
liability.
18. Quenchers Inc., a heath drink manufacturer, launches
a new product called Sprint. The packaging of this drink
also includes a statement that says "Fifty times healthier
than Green." Green is a product of Booster Inc., another
health drink manufacturer. Quenchers has no research

data to back this claim. What type of unfair

business practice is illustrated in the scenario?

Deceptive advertising
Copyright infringement
Bait and switch
Restraint of trade

19. What statement is true about the powers of the Food

and Drug Administration (FDA) in the context of drug
regulation?
The FDA can only regulate the manufacture of prescription
drugs.
The FDA's powers are restricted to the regulation of the sale
of drugs.
The FDA is not authorized to revoke licenses of drugs that
are in use.
The FDA has the authority to license new drugs.
20. Choose the correct statement about limited liability
partnerships (LLPs).
They should have one or more general partners personally
liable for the debts and obligations of the partnerships.
They do not get flow-through tax benefits.
They cannot have partners who are professionals such as
doctors or lawyers.
They are created by state and not federal laws.

21. Identify an accurate statement about the Treaty

Clause in the context of the United States and
foreign affairs.
It states that a treaty can be formed when one-third
of Senate members agree to it.
It states that state governments can pass laws that
contradict treaties signed by the federal government.
It states that the U.S. president is the agent of the United
States in dealing with foreign nations.
It states that local state governments can also enter into
treaties with foreign nations.

22. What is true of the Economic Espionage Act?

It criminalizes the theft of trade secrets through the use of
the Internet.
It criminalizes the discovery of trade secrets through reverse
engineering.
It provides federal protection exclusively to trademarks and
service marks.
It relieves business owners of the obligation to protect their
intellectual property.
23. What is true of the necessary elements of an
environmental impact statement (EIS) according to the
National Environmental Policy Act (NEPA)?
It must mention the environmentalist parties that challenged
the proposed action in court.
It must contain a cost-benefit analysis of the proposed
federal action and alternative actions.

 It must not refer to the expert opinions of engineers,

geologists, or other professionals.
It must not mention or describe any alternate actions
to the proposed federal action.
24. Which statement is true about the different types of
agency relationships?
An employer-employee relationship involves complete
transfer of authority to the employee.
A principal-agent relationship involves hiring an employee to
enter into contracts on behalf of the principal.
A principal-agent relationship involves assigning an
employee a specific physical task to perform.
An employer-employee relationship involves hiring an
employee to act as an agent of the employer.
25. Identify an accurate statement about the Equal Pay
Act.
The act states that the employer can lower the wages of
employees to remedy a wage disparity.
The act states that wages may differ when shift differences
are involved.
The act exclusively covers federal workers.
The act does not encompass private-sector employees.
26. What is true of a vertical merger?
It combines the operations of two manufacturers in the same
market.
It creates increased market share.
It combines the businesses of a supplier and a customer.
It combines the operations of suppliers in the same market.

27. Tanya and Amit, married for five years, have

filed for divorce. They are being assisted by
Rebecca in reaching a settlement. Rebecca is a
retired judge, who meets with them together, and
individually,
to
discuss
the
strengths
and
weaknesses of each of their cases. Which
alternative dispute resolution method does this scenario
best exemplify?

Mini-trial
Judicial referee
Mediation
Arbitration

28. What is true about Jewish law?

It
It
It
It

is based on the teachings in the Vedas.

is not followed anymore in Jewish home countries.
includes rules for religious and political aspects of life.
excludes doctrines related to marriage and inheritance.

29. How does the Marine Protection, Research and

Sanctuaries Act, enacted in 1972, extend environmental
protection to the oceans?
By requiring the Environmental Protection Agency (EPA) to
create a list of toxic air pollutants
By removing marine sanctuaries in ocean waters
By requiring industries to obtain a permit for dumping
wastes into ocean waters
By requiring industries to incur the clean up costs for
contaminations caused by them
30. Which statement about personal property is true?
It exclusively refers to tangible property.
It can be owned only by one person.

 It refers to property that is movable.

It exclusively encompasses real estate property.
31. What is the primary function
International Monetary Fund (IMF)?

of

the

To create free trade zones for member countries and thereby

bring them together
To provide long-term loans to developing countries
To ensure smooth and free trade flow among member
countries by settling disputes
To promote international fiscal stability by providing
temporary monetary assistance to member countries
32. What is a disadvantage of a sole proprietorship?
The owner has to take up legal responsibility for any torts
committed in the business.
The process of forming a sole proprietorship involves many
costs.
The sole proprietorship is difficult to dissolve as many
shareholders are involved.
The owner is required to present several legal documents to
obtain federal approval to start the business.
33. What must a complainant prove in a case of disparatetreatment discrimination?
The employer cited behavioral reasons for rejecting the
complainant.
The employer rejected the complainant despite the latter
having the required qualifications.
The employer sought applications from people with
qualifications better than the complainant's.
The employer rejected others with the same qualifications.

34. What is true about Title VII of the Civil Rights

Act of 1964 in the context of gender discrimination?
It covers discrimination based on sexual orientation.
It does not prohibit discrimination based on
pregnancy-related medical conditions.
It covers only women.
It excludes sexual harassment.
35. What is a gift causa mortis?

A
A
A
A

gift
gift
gift
gift

that
that
that
that

is made in anticipation of theft.

cannot be revoked.
is made in anticipation of death.
is made involuntarily.

36. Identify a difference between tenancy by the entirety

and community property as forms of concurrent
ownership.
Tenancy by the entirety allows a spouse to transfer his or her
interest without the other spouse's consent; community
property does not.
Tenancy by the entirety does not grant the rights of
survivorship; community property does.
Tenancy by the entirety passes the deceased person's
complete property to the survivor; community property
passes only one-half of the property to the survivor.
Tenancy by the entirety applies to married couples;
community property does not apply to married couples.
37. Waves, Shimmer, and Mist are manufacturers and
sellers of beauty products. Each of these companies
independently decides not to sell its products to Redefine,

a cosmetic retailer. Which form of vertical restraint

does this scenario best exemplify?

Group parallelism
Conscious parallelism
Malicious boycott
Product boycott

38. Identify the true statement about the rights and

duties of partners in a general partnership.
A partner in a general partnership has the right to have the
transactions of another partner reviewed by a court.
A partner in a general partnership has the right to compete
with the partnership by opening another business by himself
or herself.
A partner in a general partnership has the right to sue the
partnership or another partner at law.
A partner in a general partnership has the right to use the
facilities of the business for personal use.
39. Which statement about strict liability is true?
It does not protect bystanders and other individuals who
were affected by defective products.
It does not require a contract to be present between the
plaintiff and the defendant.
It places liability only on manufacturers and not sellers.
It holds the defendant liable only to the purchaser of a
defective product.
40. What is the scope of coverage of Title VII of the Civil
Rights Act of 1964?
It applies to state and local governments.
It applies to labor unions with five or more members.
It applies to employers with five or more employees.

 It applies to Native American tribes.

41. Identify an accurate statement about Hindu Law.

It is based on the teachings of the Torah.

It currently encompasses doctrines related to marriage.
It includes teachings of rabbis.
It is currently a combination of classical Hindu law and
common law.

42. Felicia Carter, a famous singer, finds her poster on a

billboard of a music academy. Felicia sues the academy
because it did not inform her or seek permission to use
her poster. What kind of intentional tort does this scenario
best exemplify?

Disparagement
Appropriation
Invasion of the right to privacy
Defamation of character

43. Identify a difference between the International

Monetary Fund (IMF) and the World Bank.
The IMF is funded by contributions of developed countries;
the World Bank is funded by developing countries.
The IMF has its headquarters in Washington, DC; the World
Bank in The Hague, the Netherlands.
The IMF has more than 180 member countries; the World
Bank has 60 member countries.
The IMF grants short-term loans to member countries; the
World Bank grants long-term loans to developing countries.
44. Tracy goes to a shopping mall, and she unknowingly
drops her identity card. After a while, she realizes that the
card is missing and starts looking for it. The card is found

by Ben who is also at the mall. Ben decides to contact

Tracy and return her identity card. In this scenario, what
kind of property would Tracy's identity card be?

Abandoned property
Real property
Mislaid property
Lost property

45. Which scenario best exemplifies race discrimination?

Sarah and Sandeep apply for the same post at Diadem Inc.
The recruiter selects Sandeep because he has more work
experience than Sarah.
Sarah and Sandeep apply for the same post at Diadem Inc.
The recruiter selects Sarah because she has better
qualifications and her resume is more impressive.
Sarah and Sandeep apply for the same post at Diadem Inc.
The recruiter selects Sarah because Sarah is of the same
ethnic group as the recruiter.

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