Exam 1

Score for this quiz: 98 out of 100

Question 1
2 / 2 pts
A limited liability company can be taxed like a corporation or a partnership.

True

False

Question 2
2 / 2 pts
A partnership requires a formal business structure.

True

False

Question 3
2 / 2 pts
If I wanted to take my business public, I would choose the following form of business.

limited partnership

limited liability company

C corporation
S corporation

Question 4
2 / 2 pts
The following business forms draft a document to provide information on how the
business should be run.

limited liability company

corporation

limited partnership

all of the above

Question 5
2 / 2 pts
Liability protection is available in all business forms.

True

False

Question 6
2 / 2 pts
If you accept worker’s compensation benefits, you cannot sue for injuries caused by
negligence by the employer.

True
False

Question 7
2 / 2 pts
American Company replaces John, a 47-year-old employee, with Seth. John files a suit
against American Company under the Age Discrimination in Employment Act. To
establish a prima facie case, John must show that he

is more capable than Seth

is a member of a protected age group

is qualified for the position

B and C

Question 8
2 / 2 pts
With respect to age discrimination, a plaintiff must prove that he or she was replaced by
a person outside the protected class.

True

False

Question 9
2 / 2 pts
Home Health Care Services wants its employees and applicants to undergo genetic
testing. This business may not

discriminate in place or promotion against applicants who have a genetic predisposition

deny coverage or charge higher premiums to its employees for group health plans
based solely on a genetic predisposition to disease

refuse to hire or discharge employees who have a genetic predisposition to disease

all of the above

Question 10
2 / 2 pts
An employer may defend against a claim of unintentional discrimination by asserting
that a practice that has a discriminatory effect is a business necessity.

True

False

Question 11
2 / 2 pts
If you were forming a cleaning company and wanted to call it Apple Cleaners and use
an apple as your logo, you would be permitted to do so as long as

you did not utilize a logo similar to a trademarked logo for another cleaning company

you made certain that the name was not being used by another company in your state

you checked the history of companies in the United States to be sure it was never used
A and B

Question 12
2 / 2 pts
ABC Company is creating a training manual for its employees and the manual quotes
the following: “Coming together is a beginning; keeping together is progress; working
together is success.” The manual does not acknowledge the author of the quote. Can
ABC Company be sued for copyright infringement?

no, because the manual is used for training purposes and thus being used under the fair
use doctrine

yes, because the author is not being credited for the statement

no, because it is a quote and not an authored work

no, because failure to attribute the quote is plagiarism and not copyright infringement

Question 13
2 / 2 pts
I create an ice cream that changes flavor the longer you keep it in your mouth. I would
want to protect that recipe under which of the following for the best protection?

patent

trade secret

copyright

A and B
Question 14
2 / 2 pts
XYZ Websites, Inc. is creating a website for a photographer and wants to utilize
background music for the opening page. The photographer is a big fan of Enya and
wants to use one of her songs on the website. In order to use the song, XYZ would
need to ensure it is no longer copyrighted or obtain permission.

True

False

Question 15
2 / 2 pts
You develop an application that would allow people to scan a product at a store and
compare prices at other local retailers. Under which intellectual property protection
might you apply?

patent

trademark

copyright

all of the above

Question 16
2 / 2 pts
Under the doctrine of respondeat superior, the principal/employer is liable for any harm
caused to a third party by an agent/employee within the scope of employment.
True

False

Question 17
2 / 2 pts
A power of attorney gives the Samantha the authority to pay the monthly bills for her
father’s condo while he is on a cruise to Alaska.

True

False

Question 18
2 / 2 pts
Apparent authority

can occur even if the agent has no express or implied authority

can happen only by words or acts of the agent that cause a third party to believe that
authority

can happen only by words or acts of the principal that cause a third party to believe that
authority

A and C

Question 19
2 / 2 pts
Independent contractors have no control over the details of their work performance.
True

False

Question 20
2 / 2 pts
A principal owes an agent a duty of estoppels.

True

False

IncorrectQuestion 21
0 / 2 pts
If Tom borrows a chain saw from Hank and, while using the chain saw, breaks one of
the components, fails to repair the saw, and returns it to Hank without telling him of the
problem, what would Tom would be guilty of?

conversion

invasion of privacy

trespass to property

negligence

Question 22
2 / 2 pts
Frank’s car has just been repaired. When Frank exits the service station, his wheel falls
off. At the same time, a woman walking down the sidewalk near the service station trips
and breaks her arm. The woman would not have a claim against Frank because her
injury resulted from her tripping and not the car.

True

False

Question 23
2 / 2 pts
Jennifer Aniston was on vacation in the Riviera on a friend’s yacht. Nude sunbathing
pictures of her on her trip appear in US Weekly. Jennifer can

file a defamation action against US Weekly

file an invasion of privacy claim against US Weekly

file a trespass claim against US Weekly

none of the above, because Jennifer Aniston is a famous person

Question 24
2 / 2 pts
Torts can be intentional, unintentional, or strict liability.

True

False
Question 25
2 / 2 pts
Tom borrows a chain saw from Hank and, while using the chain saw, breaks one of the
components, fails to repair the saw, and does not return it to Hank. Hank would be able
to file a conversion claim against Tom.

True

False

Question 26
2 / 2 pts
In order for a valid contract to exist, the following requirements must be met.

consideration

legality

fairness

all of the above

Question 27
2 / 2 pts
In forming a contract, an element of prime importance is the parties’ intent.

True

False
Question 28
2 / 2 pts
Consideration in a contract requires

something of legally sufficient value

a bargained-for exchange

a written agreement

A and B

Question 29
2 / 2 pts
Steve asks Mark, “Do you want to buy one of my drills?” This is

a valid offer

not a valid offer because the terms are not definite

not a valid offer because there was no meeting of the minds

not a valid offer because it is not in writing

Question 30
2 / 2 pts
Promises made in consideration of marriage are subject to the statute of frauds.

True

False

Question 31
2 / 2 pts
Real property includes all of the following EXCEPT

land

buildings

lights

refrigerators

Question 32
2 / 2 pts
An easement grants a person permission to go onto the property of another and take
what they need from it.

True

False

Question 33
2 / 2 pts
The seller of real property has to disclose information to the buyer on any hidden defect
in the property.

True

False

Question 34
2 / 2 pts
If a lease is broken by the landlord, the tenant may sue the landlord in court for which of
the following?

return of rent for when the tenant could not occupy the property

damages for having to seek other accommodations

attorney's fees and costs to file the claim

All of the above

Question 35
2 / 2 pts
Mary transfers her property to her son Roger, retaining a life estate in the property.
Mary has which of the following rights?

complete authority over the property, including the right to sell

total control and use of the land, but cannot sell the property
the right to possession of the property for a specific period of time

none of the above

Question 36
2 / 2 pts
A person’s moral and ethical behavior can be molded by his/her experiences,
upbringing, religious beliefs, and mentors.

True

False

Question 37
2 / 2 pts
Alta, a small sewing store owner, is interviewing candidates for a clerk position at her
store. One of Alta’s standard questions is to ask if the candidate is married, how many
children the candidate has, and the ages of the candidate's children.

It is illegal for Alta to ask these questions during an interview.

It is unethical for Alta to ask these questions during an interview.

It is okay for Alta to ask these questions to ensure the availability of the employee.

A and B

Question 38
2 / 2 pts
Sam realizes that his co-worker, Benji, is not receiving the plum reporting assignments
at the newspaper and believes this to be because of his ethnicity. He thinks a lot about
the civil rights movement and then goes to talk with the editor. This is an example of
which type of ethical theory?

ethical fundamentalism

utilitarianism

Rawls’s social justice theory

ethical relativism

Question 39
2 / 2 pts
All unethical behavior is illegal.

True

False

Question 40
2 / 2 pts
Jim needs to lay off an employee at his construction company. He decides it is going to
be one of his estimators, Tina or Kelly. Tina is 45 years old, has been working for the
company for two years, and is a single mother of a 16-year-old son. Kelly is 30 years
old, has been working for the company for eight years, and is pregnant with her first
child. Jim decides to lay off Kelly.

This is an example of unethical behavior.

A and B

none of the above

Question 41
2 / 2 pts
Laura is a creditor and would like to take a purchase-money security interest on all of
Beth’s accounts. If Laura follows all the requirements of a purchase money security
interest, may she take a purchase-money security interest on Beth’s accounts?

yes

no

Question 42
2 / 2 pts
A check payable to “cash” is a bearer instrument.

True

False

Question 43
2 / 2 pts
Written stop payment orders are valid for 12 months.

True
False

Question 44
2 / 2 pts
Tiffany delivers goods before she is able to file the UCC1. Does she have a purchase-
money security interest in the goods?

yes

no

Question 45
2 / 2 pts
Betty issued 15 checks to her sister in various amounts over a two-day period. She
would like to stop payment on one of the checks she issued, but she does not know the
check number or the date it was issued and she is unsure of the amount. (She thinks
the check she wants to stop was around $100.) What is the bank’s liability to Betty if it
pays the check?

The bank is liable to Betty for the full amount of the check since she issued a stop
payment order.

The bank is not liable to Betty because she did not describe the check with reasonable
certainty.

The bank is not liable to Betty because she did not provide the order in advance for the
bank to take action.

The bank is partially liable to Betty because she described the check as best she could
in advance of her sister cashing it.

Question 46
2 / 2 pts
This form of alternate dispute resolution does not require the third party to render a
decision, but to help the parties resolve their issues.

negotiation

mediation

non-binding arbitration

binding arbitration

Question 47
2 / 2 pts
Federal courts have jurisdiction over any case involving citizens of different states with
amounts in controversy exceeding $75,000.00.

True

False

Question 48
2 / 2 pts
Which of the following is part of the discovery phase of litigation?

Pleadings

Depositions
Interrogatories

B and C

Question 49
2 / 2 pts
Mediation can only be entered into voluntarily and cannot be required by a court.

True

False

Question 50
2 / 2 pts
At the state court level, which levels of court exist?

small-claims court

orphans court

Appellate court

A and C

Quiz Score: 98 out of 100