BUS 415 Final Exam / 100% correct answers

BUS 415 Final Exam1) The form of alternative dispute resolution wherein the parties hire someone to review the evidence and make a decision that is binding upon the parties is calledA. negotiationB. settlement conferenceC. conciliationD. arbitration2) The Federal Trade Commission is an example of A. a federal agency created by the federal governmentB. a corporation subsidized by the federal governmentC. a branch of the U.S. Supreme CourtD. a temporary commission created by executive order that has become permanent3) A corporation is considered a citizen of what state?A. The state where the majority of the employees liveB. It is not a citizen because it is a businessC. The state where it filed its Articles of IncorporationD. The state where the president of the corporation lives4) The Federal False Claims Act is also known asA. the Sarbanes-Oxley ActB. the Whistleblower StatuteC. the Statute of FraudsD. the Statute of Limitations5) Utilitarianism is a moral theory, which states A. ethics requires a decision-maker to take actions which result in the greatest good to societyB. ethics requires following the Golden Rule (do unto others as you would have them do unto you)C. ethics requires actions which use the most efficient toolsD. ethics requires acting according to the Bible or some outside source6) Which of the following statements is true?A. If something is legal, it is always ethicalB. Practices that are legal in the United States are legal everywhere in the worldC. Practices that are ethical in the United States are considered ethical everywhere else in the worldD. A course of action can be legal but not ethical7) If a defendant files a motion for summary judgment in a civil case, what is the defendant saying?A. That the plaintiff’s claims are falseB. That the court has no jurisdiction to decide the caseC. That the case is ready to go to the juryD. That even if what the plaintiff says is true, there is no basis for judgment against the defendant8) A defendant fails to answer a civil lawsuit, what is likely to happen?    A. A court will contact the defendant and ask him to answer the lawsuitB. The court will grant a default judgment against the defendantC. The case will be appealed before the court makes a rulingD. The court will order that the defendant go to jail until he or she agrees to answer9) The legal authority of a court to make orders that are binding upon the parties is calledA. in rem jurisdictionB. personal jurisdictionC. quasi in rem jurisdictionD. enumerated jurisdiction10) Harry Hoosier, an Indiana resident, drives his family to Florida for spring vacation. When he is at a red light, Freddie Floridian, a Florida resident, is unable to stop in time and his vehicle impacts Harry’s car from the rear. No one is hurt and Harry’s vehicle suffers approximately $10,000 in damages. Which is correct?A. Harry can sue Freddie in federal court in Florida but not in IndianaB. Harry can sue Freddie in state court in Florida or IndianaC. Harry can sue Freddie in state court but not federal court in Florida but not in IndianaD. Harry can sue Freddie in state court but not federal court in Florida or Indiana11) Monica owed Bob $500 for a business investment, which was more than a year overdue. Bob got drunk at a party and told everyone that Monica had owed him $500 for over a year. Can Monica recover from Bob for defamation? A. Yes, because Bob abused his conditional privilege.B. No, because Bob was telling the truth.C. Yes, because Bob communicated the statement to third persons.D. No, because Bob had been drinking.12) What is the definition of a tort? A. Any violation of an ethical dutyB. Any crime or misdemeanorC. Any action done in violation of a prior agreement, which allows the victim to recover damagesD. Any civil wrong that allows the injured person to recover damages13) Pete and Vicky make the following agreement: Pete promises he will go into a store, buy something for $5, and pay for it with a $100 bill on which he has written “Happy Birthday Vicky!” Vicky promises that after Pete collects his change and leaves the store, she will go into the same store, buy something that costs $5, and pay with a $10 bill. When the clerk attempts to give her change for $10, Vicky will claim that the $100 bill that is in the cash register was money she just received for her birthday, and will demand change from a $100 bill. Then Pete and Vicky will split the extra money they think Vicky will receive in change. Is this a valid contract? A. This is a valid contract. There was a promise in exchange for a promise, and both parties got what they wanted.B. This is a void contract, because the parties agreed to commit fraud.C. This is a voidable contract because Vicky can change her mind.D. This is not an enforceable contract because the agreement is not in writing.14) An easement can be defined as A. a limited right to use another person’s land for a specified purposeB. a relaxation of the borderlines between two parcels of landC. a life estate in the property of anotherD. an option to purchase the land of another15) Huey, Dewey, and Louie own a building as tenants in common. Huey lives in the building. Without consulting the other two owners, Dewey deeds his interest in the building to Joe. What will be the outcome of this situation? A. Huey, Louie, and now Joe will own the property as tenants in common.B. Huey and Louie will still own the property as tenants in common, but Joe will have a reversionary interest.C. The transfer of the interest to Joe will be ineffective because the other two did not consent.D. Joe will make Huey pay rent.16) Which of the following best describes the benefits of a limited liability company (LLC)? A. LLC managers are not personally liable for debts, obligations, and liabilities of the LLC.B. LLCs have limited duration.C. Documents do not have to be filed with the state to create an LLC.D. LLCs are automatically taxed like corporations.17) Which of the following is true when a general partnership is converted to an LLC? A. The property must be sold to a third party who then immediately sells it to the LLC.B. The conversion can be made retroactive for up to 2 years.C. The profit and loss sharing terms must remain the same as they were in the partnership.D. The general partners will retain unlimited personal liability for obligations incurred while the business was a partnership.18) In the Northeast Ethanol, LLC case, the court pierced the defendant’s corporate veil after determining that A. the plaintiffs could not find financing to build the ethanol plantB. the defendant’s shareholder used the corporation to perpetrate fraudC. the ethanol plant was an unwise investment, against the best interest of the partiesD. the plaintiff’s corporate directors were engaging in ultra vires activities19) Which comment best describes the alter-ego doctrine in corporate law? A. A corporation automatically becomes the alter ego of its shareholdersB. The president is the sole decision maker of a corporationC. The board of directors is the alter ego of a corporationD. Protection from personal shareholder liability can be forfeited if corporate formalities are not observed20) If a corporation is properly incorporated in one state and wants authority to do business in second state, the corporation typically must A. re-incorporate in the second stateB. do nothing because being incorporated in one state automatically entitles the corporation to do business in all statesC. register with the Interstate Commerce Commission as an alien corporationD. obtain a certificate of authority from the second state21) The DEF Corporation is incorporated in Texas. It wishes to do business in Oklahoma. Before DEF can legally do businesses in Oklahoma, which of the following must it do? A. Nothing; DEF automatically has constitutional rights to do business in Oklahoma.B. DEF must incorporate in Oklahoma.C. DEF must qualify (register) to do business in Oklahoma.D. DEF must domicile itself in Oklahoma.22) What types of business can be converted to an LLC? A. General partnerships onlyB. General partnerships and limited partnerships onlyC. Corporations and limited partnerships onlyD. Corporations, general partnerships, and limited partnerships23) Which of the following best describes the status of the employment at-will doctrine in the United States today? A. It applies in most states to most employment relationships, but there are many exceptions that limit its application.B. It applies more today than in the last century, and the quantity of corporate layoffs is evidence of this.C. It today applies only to the employer, although in the past it applied to both the employee and employer.D. It still applies today, but only to employees who are expressly told that they are an at-will employee when they are hired.24) Which of the following rejected applicants may have a valid claim for discriminatory hiring practices? A. A public health service did not hire a registered nurse because his shaking hands prevented him from administering injections.B. A Catholic school did not hire a teacher because he was not Catholic.C. A trucking company did not hire a truck driver because she was pregnant.D. A university did not hire a 22-year-old woman to be a director of faculty because she was too young.25) Which of the following people is protected from employment discrimination on the basis of age? A. A 90-year-old person who wants a job as an airline pilotB. A 50-year-old person who wants a job as an accountantC. A 30-year-old person who wants a job as a waitressD. A 10-year-old person who wants a job as a bartender26) Marie works as a receptionist for a plumbing company. She works from 9 a.m. to 6 p.m. Monday through Friday. She earns $12 per hour, and is told how to do her job and what she should be working on at any particular time. Her boss does not withhold any taxes from her paycheck. Which of the following is true? A. Marie would be treated as an employee because she is paid for the work that she does.B. Marie would be treated as an employee because of the control exercised by the plumbing company over her work.C. Marie would be treated as an independent contractor because she is paid hourly.D. Marie would be treated as an independent contractor because the employer doesn’t take any taxes out of her check.27) Company employee handbooks have been found in some cases to amount to a(n) ______________ exception to the employment at will doctrine. A. apparentB. tortC. public policyD. implied contract28) Which of the following is a correct statement of the requirements for a Bona Fide Occupational Qualification (BFOQ)? A. The occupational qualification is job-related and cost-effective.B. The occupational qualification is job-related and nondiscriminatory.C. The occupational qualification is job-related and is a business necessity.D. The occupational qualification is rationally based and evenly applied.29) What federal legal protection is there with respect to trade secrets? A. Trade secrets are protected under the federal patent laws.B. Trade secrets are protected under the federal copyright laws.C. Trade secrets are protected under the Trade Secret Protection Act of 1952.D. Trade secrets are protected under the Economic Espionage Act of 1996.30) Which of the following is true about misappropriation of trade secrets? A. Although it is not necessary that the trade secret be patented, the secret must be such that it could be patented.B. Trade secrets are always protected regardless of the actions of the trade secret owner.C. The plaintiff can recover damages from theft of a trade secret only if the defendant acquired the trade secret through unlawful means.D. Injunctions are generally not available to protect trade secrets.