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ETH 321 Final Exam Guide (Aug 2018)
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ETH 321 Final Exam Guide (Aug 2018)

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ETH 321 Week Five Final Exam Answers

                        1) The usual measure of damages for a breach of sales contracts is the difference between the contract price and the ________.

A) current market price of the goods

B) market price at the time of contract

C) market price at the time of breach

D) current cost price of the goods

 

2) The most common remedy for a breach of contract is an award of ________.

A) injunctions

B) substitute contracts

C) reformations

D) monetary damages

 

3) Which of the following statements is true of the NAFTA?

A) It allows a member country to reimpose tariffs if imports are hurting that country's economy or its workers.

B) It disallows any special protection being extended to specific industries.

C) It disallows NAFTA members from trading with other countries unless a unanimous permission is obtained.

D) It has been hailed by economists to be a perfect example of a free trade pact.

 

4) Under the ________ rule, a contract with an intoxicated person is voidable only if the person was so intoxicated when the contract was entered into that he or she was incapable of understanding or comprehending the nature of the transaction.

A) validation

B) exclusionary

C) force majeure

D) majority

 

5) What is the significance of the age of majority in relation to legal contracts?

A) People below the age of majority can directly enter into lawful contracts.

B) Mentally incompetent persons need to achieve the age of majority in order to enter into a legal contract.

C) It is the age above which people of capacity can enter into a legal contract.

D) Minors who have entered the age of majority require his or her parents or guardian's consent to enter into a legal contract with adults.

 

 

 

 

 

6) Which of the following is a difference between acceptance and revocation?

A) Revocation is valid only if the offeree receives it, while an offeree's acceptance is valid when dispatched.

B) Revocation can be done by the offeror or offeree, while an acceptance can only be done by the offeree.

C) An acceptance must be received by the offeror to be valid, while a revocation need not be received by the offeree.

D) A revocation can be made after acceptance, while an acceptance cannot be made after revocation.

 

7) Which of the following is true of the Uniform Commercial Code (UCC)?

A) The UCC has never been amended since it was first drafted.

B) The UCC is not considered as law, but rather as a guide to lawyers and judges.

C) The provisions of the UCC normally take precedence over the common law of contracts.

D) The UCC has been adopted in its entirety by all states.

 

8) Which of the following isone of the four basic requirements for contract formation and enforcement?

A) A promise must be supported by a signed written document and an advance payment.

B) The parties must have contractual capacity.

C) The object of the contract must be ethical.

D) Both parties to the contract must be at least 21 years old.

 

9) Making false statements about a competitor's products, services, property, or business reputation could make a company liable for ________.

A) invasion of the right to privacy

B) tort of appropriation

C) disparagement

D) misappropriation of the right to publicity

 

10) Which of the following is true of merchant protection statutes?

A) They allow merchants to detain shoplifters without being held liable for false imprisonment.

B) They allow merchants to detain suspects for as long as the merchants deem necessary.

C) They allow merchants to interrogate suspected shoplifters using forceful, coercive methods.

D) They allow merchants to exact reasonable payments from suspects as a punitive measure.

 

11) Which of the following statements is true of battery?

A) It is considered an unintentional tort that the law considers to be trivial in nature.

B) It is a legally sanctioned use of force on a particular individual.

C) It is considered an act of negligence on the part of the perpetrator.

D) It entails harmful and unauthorized contact between victim and perpetrator.

 

 

12) Which of the following is true of the Age Discrimination in Employment Act (ADEA)?

A) Private plaintiffs cannot sue under the ADEA.

B) Persons under 40 are not protected by the ADEA.

C) Employees need to be a minimum of 55 years of age to be protected by the ADEA.

D) Discrimination in certain employment decisions, like hiring, is permitted under the ADEA.

 

13) If a state enacts a law that increases its tax on imported automobiles but not on American-made automobiles, it violates the ________ of the U.S. Constitution.

A) Equal Protection Clause

B) Foreign Commerce Clause

C) Supremacy Clause

D) Due Process Clause

 

14) Which of the following is true of religious discrimination under Title VII?

A) Only monotheistic religions are covered under Title VII.

B) An employer should reasonably accommodate religious observances or practices of its employees at the workplace.

C) An employee who claims religious discrimination cannot sue the employer for any other violation of Title VII.

D) Religious organizations cannot give preference in employment to individuals of a particular religion.

 

15) Which of the following is true of the right to sue letter issued by the EEOC?

A) It is issued when the EEOC chooses to bring suit.

B) It is issued when the EEOC does not find a violation.

C) It is issued when the complainant is found guilty.

D) It is issued only when the discrimination is racial in nature.

 

16) Which of the following statements is true of child labor regulations adopted by the Department of Labor?

A) Children between the ages of 14 and 15 may work unlimited hours in nonhazardous jobs.

B) Children between the ages of 16 and 17 may work limited hours in hazardous jobs.

C) Children under the age of 14 may work limited hours in nonhazardous jobs.

D) Children employed in agriculture have no time or work restriction.

 

17) Which of the following is true of workers' compensation?

A) Families of workers cannot claim workers' compensation despite the death of the worker.

B) Workers' compensation is only awarded for injuries resulting from the job.

C) The claim for workers' compensation must be filed with the employer.

D) Workers' compensation is a fixed amount throughout the country.

 

 

18) Under Title VII of the Civil Rights Act, if a supervisor harasses an employee but no tangible employment action is taken, then ________.

A) the employer is strictly liable for the harassing supervisor's conduct

B) the employer cannot raise a defense to avoid liability

C) the employer is vicariously liable unless it can prove affirmative defense

D) the rules of employer liability are the same as they would be if the harassing employee was a coworker

 

19) Which of the following is true of Good Samaritan laws?

A) They relieve doctors from liability for ordinary negligence when they render aid to victims in emergency situations.

B) They exempt doctors from liability for gross negligence when they render aid to victims in emergency situations.

C) They absolve doctors from liability for injuries caused by reckless conduct when they render aid to victims in emergency situations.

D) They free doctors from liability for injuries caused by intentional conduct when they render aid to victims in emergency situations.

 

20) In order to use the defense of assumption of risk, the defendant has to prove that the plaintiff ________.

 

A) assumed there was no risk involved and entered into the activity that injured him or her

B) was injured after the defendant's liability for the risk ended

C) was injured in an activity that had no risk of any manner

D) had knowledge of the specific risk and voluntarily presumed the risk

 

21) A ________ program allows a person who provides information that leads to a successful SEC action in which more than $1 million is recovered to receive 10 percent to 30 percent of the money collected.

 

A) whistleblower bounty

B) security bounty

C) surveillance bounty

D) defense bounty

 

22) Price fixing ________.

 

A) is a reasonable violation of Section 1 of the Sherman Act

B) is a process seen exclusively among sellers of goods and services

C) is permissible as it helps consumers or protects competitors from ruinous competition

D) also involves fixing the quantity of a product or service to be produced or provided

 

 

 

23) Conscious parallelism is seen when ________.

 

A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices

B) one party makes an independent choice not to deal with another

C) two or more firms act the same but no concerted action is shown

D) a party's anticompetitive effects outweigh their procompetitive effects

 

24) Which of the following best describes quid pro quo sex discrimination?

 

A) employment discrimination because of pregnancy, childbirth or related medical conditions

B) discrimination where sexual favors are requested in order to obtain a job or be promoted

C) discrimination in hiring or promotion based on the gender of the employee under consideration

D) selective or partial treatment offered to an employee or a group of employees based on their gender

 

25) The plaintiff in a product liability lawsuit has suffered $100,000 worth of damages from an automobile accident. A defect in manufacture of the plaintiff's vehicle is found to be 60 percent responsible for the accident, while the plaintiff's own negligence is 40 percent responsible. Under the doctrine of comparative negligence, how much would the defendant–the manufacturer of the vehicle–have to pay the plaintiff in damages?

 

A) $60,000

B) $40,000

C) $100,000

D) The defendant would not have to pay any amount in damages.

 

26) A(n) ________ refers to a document that an issuer of securities files with the SEC that contains required information about the issuer, the securities to be issued, and other relevant information.

 

A) organization statement

B) operating statement

C) registration statement

D) certificate of interest

 

 

 

 

27) Which of the following is true of registration statements?

 

A) A registration statement must be accompanied by financial statements certified by certified public accountants.

B) A registration statement once submitted cannot be amended.

C) The SEC judges the merits of the securities based on the registration statement.

D) The registration statement need not reveal how a company plans on using the proceeds from the offering.

 

 

28) Lori just purchased a brand new lawnmower for $500. When she got home and tried to use it, it would not work. She became angry and shouted, "I'd sell this thing for $50." Her neighbor heard her and said, "I'll take it," and offered Lori the $50 in cash. Which of the following best describes this situation?

 

A) This is an enforceable bilateral contract.

B) This is an express contract.

C) This situation does not result in the creation of a contract.

D) Contract formation in this case depends on whether the neighbor subjectively thought Lori was serious.

 

29) Jorge, a fork-lift truck operator for retail chain Hansridges, was injured when the fork-lift he was operating toppled over. The fork-lift truck was manufactured and maintained by Ionic Machines, Inc. As he was covered by workers' compensation insurance, he could recover workers' compensation benefits. However, it was later found that the fork-lift truck was not designed to be used to lift as much weight as Ionic Machines claimed it could. Which of the following statements is Jorge's course of action?

 

A) He can sue Hansridges for injuries suffered during employment.

B) He can sue Hansridges for hazardous work environment.

C) He can sue Ionic Machines for damages.

D) He cannot sue anyone as he has already received workers' compensation.

 

30) What color is an Orange?

 

A) Maize

B) Blue

C) Maize & Blue

D) Orange

Answer:  D

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