. Article 6 of the Treaty on European Union, called the Maastricht Treaty, states the EU is founded on: private markets staredecisis rule of law specific performance

1. Article 6 of the Treaty on European Union, called the Maastricht Treaty, states the EU is founded on:

private markets


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rule of law

specific performance

2. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention prices. The server takes their order and both Betty and Fred enjoy the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating and offer and acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the server merely asked “What may I get you tonight?” Which of the following is true?

Fred must pay based on an implied-in-fact contract theory.

Fred must pay based on a promissory estoppel theory.

Fred must pay based on expressed contract theory.

Fred is correct because no contract was formed.

3. Which of the following issues of administrative agencies relates to the substantive outcome of agencies’ rule-making and adjudicating authority?

The administrative process is overwhelmed with paperwork and meetings.

It is very difficult to discharge unsatisfactory employees.

Enforcement of some laws varies over time.

The reward system usually does not make a significant distinction between excellent, mediocre, and poor performance.

4. Which of the following is true of tort law?

It protects people from being tried twice for the same crime.

It provides compensation to those workers who have been injured on the job.

Tort law typically deals with breach of contract.

It sets limits on how people can act and use their resources.

5. In a(n) ___________, the shareholders are taxed only on income distributed.

sole proprietorship

limited partnership


limited liability company

6. Hillward Bakers has been using a blue HB logo with a baker’s hat on the HB since their inception ten years ago. Hobart Bakers, a newly opened bakery and confectionary chain, has used the same logo. Hillward has not registered its logo, but it chooses to sue Hobart anyway. Which of the following is true of this case?

Hillward cannot sue Hobart since the logo has not been registered as a trademark.

Hillward cannot sue Hobart because logos cannot be patented or trademarked.

Hobart can defend that Hillward created something that lacks utility and cannot be trademarked.

Hillward can sue Hobart since the logo has been used by Hillward and is associated with it.

7. Finishing the construction of a home two days after the contract called for completion (no injury occurs) most likely will be considered _______.

substantial performance

breach of contract

implied performance

significant performance

8. Which of the following statements is true of the WARN Act?

It requires employers to give notice to employees that they are being subjected to polygraph tests.

It requires employers to give notice to an “at will” employee that he/she is being fired.

It requires employers to give notice of a scheduled mass layoff.

It requires employers to give notice to employees that an unscheduled drug test will be conducted for all employees.

9. Federal law and business leaders alike favor ____________ as a means of governing private business ethics.

creating uniform statutes of business ethics

self-regulation by companies

establishment of federal regulators in all private companies to establish and enforce ethical standards

giving the federal government exclusive jurisdiction regarding ethics and ethics violation enforcement

10. The classification of crime is based on ________.

the judge’s prerogative

prior record


punishment imposed if convicted

11. A 911 emergency response service needs operators who are bilingual in English and Spanish. A few applicants of Spanish origin are rejected due to poor English-speaking skills. They file a complaint on the grounds of discrimination based on nationality. Their complaint is squashed. Here, the defense of the federal government is on the grounds of _______.

exclusionary rule

circumstantial evidence

bona fide occupational qualifications

inculpatory evidence

12. Interest-based negotiations are superior to position-based negotiations because:

the difference between the interests of the parties is often large.

position-based negotiation is often only concerned with preparing for litigation.

interest-based negotiations allow room for consideration of non-factual concerns, such as relationships and long-term interests.

interest-based negotiation requires the presence of a judge or magistrate.

13. Civil enforcement powers regarding federal antitrust matters belong to _______.

the Department of Revenue and Taxation

the FTC and the Department of Justice

the Department of Labor

the Treasury Department

14. Which of the following is true in cases where only one party drafts the contracts that contain terms that appear vague and ambiguous to the other party?

The court will interpret the ambiguous and vague terms against the party that drafts them.

The court will declare the drafting party’s behavior as a tort due to intentional ambiguity of terms.

The court will reject the non-drafting party’s attempt to reinterpret the terms after the contract has been signed.

The court will interpret the terms as they mean in the common language.

15. ____________ is a court created rule that limits when courts can review administrative decisions.

The doctrine of primary jurisdiction

The doctrine of estoppel

The doctrine of lapse

The doctrine of exhaustion of remedies

16. The crucial issue with the continuity factor of a business’s organizational form is _______.

the method of customer service observed

management style

profit distribution

the method by which the business can be dissolved

17. Frequent, abusive, threatening phone calls by creditors are most likely to provoke the basis for a claim of _____________.

false imprisonment and malicious prosecution

malicious representation


intentional infliction of emotional distress

18. The determination that a crime has been committed and that evidence is sufficient to warrant the accused standing trial is known as:


double jeopardy.

nolo contendere.

probable cause.

19. The ideas and philosophies that explain the origin of law and its justification are called:




rule of law


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