Multiple choice

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1. Eagle Manufacturing, Inc., contracted with Digital Repair Services to maintain Eagle’s computers. A “Liquidated Damages Clause” provides that Digital will pay Eagle $500 for each day that Digital is late in responding to a service request. If Digital is three days late in responding, and Eagle sues to enforce this clause, Eagle will

A) lose, because liquidated damages clauses violate public policy.

B) lose, unless the liquidated damages clause is determined to be a penalty.

C) win, because liquidated damages clauses are always enforceable.

D) win, unless the liquidated damages clause is determined to be a penalty.

 

2. Fast Ed, a stock trader, engages in a “pump and dump” scheme whereby he goes into Internet chat stock rooms and “hypes,” praises, and extols certain stocks he owns. He says such things as: “This is the best stock ever.” “This stock is great and will make us a fortune.” “You MUST own this stock in your portfolio.” He does repeatedly and uses several aliases. Then, when Fast Ed has “pumped up” the price of the stock to a certain level, he calls his broker to sell, that is, to “dump,” the stock. He makes a lot of money with this scheme. Fast Ed is likely acting:

A) Illegally pursuant to the common law tort of deceit since he did not disclose the aliases.

B) Illegally pursuant to the Securities Act of 1934 for engaging in stock manipulation.

C) Legally since he was careful not to make any misrepresentations of material fact regarding the stock, and just used “puffing” or sales talk.

D) Legally since everyone knows not to put any credence behind what people say in chat rooms, especially about stocks, and thus “Let the buyer beware.”

 

3. Stan buys a CD player from Tom, his neighbor, who agrees to keep the player until Stan picks it up. Before Stan can get it, the player is stolen. The loss is suffered by

A) Stan only.

B) Tom only.

C) Stan and Tom.

D) none of the above.

 

4. Francis owns a small motel in Sugarloaf Key. She notices by means of public advertising that her competitors in Big Pine Key and Ramrod Key have extended by two weeks their “winter season” and thus their winter season higher rates. Francis also notices the “no vacancy” signs at her competitors’ motels. So, Francis decides to extend the winter season at her motel too. Francis has engaged:

A) Illegal horizontal price-fixing by means of an express agreement.

B) Illegal horizontal price-fixing by means of an implied agreement

C) Legal action by means of the doctrine of Conscious Parallelism

D) Legal action since anti-trust law does not apply to small motels, only large ones and hotels.

 

Multiple choice

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1. Carrie decides to offer Susan the opportunity to purchase her motorcycle for just $500. Carrie told Carter, a mutual friend of hers and Susan’s, that she intended to make the offer. Later, Carrie changes her mind. Susan approaches Carrie and says she accepts the offer. What will the likely result be? 

A. No contract was formed because Carrie didn’t possess a serious, objective intention.

B. No contract was formed because Carrie never communicated the offer to Susan.

C. No contract was formed because the terms of the offer weren’t certain or definite enough to form a contract. 

D. A contract was formed because Susan accepted Carrie’s offer.

 

2. Will contracts with Grace to sell her 100 lamps for $1,000. Will breaches his contractual duty to deliver the lamps, and Grace buys 100 lamps for $2,000 from another dealer. Grace sues Will for breach of contract. She will most likely receive what type of damages? 

A. Compensatory damages in the amount of $1,000 

B. Compensatory damages in the amount of $2,000

C. Consequential damages of $3,000

D. Nominal damages of $100

 

3. Uncle Eb tells his wayward nephew Jonah that if he refrains from drinking and smoking until he reaches the age of 18, he’ll pay him $500,000. Jonah refrains from drinking and smoking until after his eighteenth birthday. What would a judge most likely say? 

A. No contract is formed because there’s no bargained-for exchange.

B. No contract is formed because there’s no legal value offered.

C. No contract is formed due to inadequacy of consideration.

D. A contract exists between Uncle Eb and Jonah.

 

4. Joey mailed Clark an offer in which he offered to sell Clark all of his baseball cards for $300. No other stipulations appeared in the offer. The next day, Clark mailed Joey his acceptance of the offer, along with a check for $300. That same day, Joey mailed Clark a letter revoking his offer. The most likely result will be that 

A. no contract was formed because Joey revoked the offer. 

B. a contract was formed because of the mailbox rule.

C. no contract was formed because Clark used an improper means of acceptance.

D. a contract was formed because once Joey mailed the offer, he couldn’t revoke it.

 

Multiple choice

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1. Jack is a very mature looking seventeen-year-old who lives at home with his parents. Jack wants to purchase an automobile. Jack goes to Discount Car Sales where Bud, the car salesman, never considers that Jack may be a minor because Jack looks at least twenty-five. Bud sells Jack a car, with the agreement that Jack will pay Bud $100 per month over the next five years for the car. Which one of the following is true? 

A. Despite Jack’s minor status, Bud can prohibit Jack from disaffirming a contract for a necessary (or basic need). 

B. Jack can disaffirm the contract because of his minor status at the time the contract was formed. 

C. Bud can disaffirm the contract because of Jack’s minor status at the time the contract was formed. 

D. Bud can hold Jack’s parents liable for Jack’s contract, because Jack was a minor living in their home at the time the contract was formed. 

 

2. Edward offers Austin one million dollars to break into the World Museum and steal a priceless Egyptian diamond. Austin readily accepts the offer. Both Edward and Austin have reached the age of majority and possess the capacity to contract. Which of the following requirements for the formation of a contract is missing? 

A. Legality 

B. Consideration

C. Contractual capacity

D. Agreement

 

3. Paul wants to buy an antique car from Betty. Paul believes that the car is worth $30,000, even though Betty is asking only $10,000 for the car. In actuality, the car is worth only $5,000. The result of this chain of events would be a 

A. mistake of fact. 

B. fraudulent misrepresentation.

C. mutual mistake.

D. mistake of value.

 

4. Jason contracts with Mountaintop Life Insurance to purchase life insurance. Jason lists his wife, Melba, as the beneficiary. Melba is a/an 

A. donee beneficiary. 

B. creditor beneficiary.

C. incidental beneficiary.

D. obligee. 

 

Multiple choice

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1. By having a “good will,” Kant fundamentally meant that one:

Should use one’s conscience and intuition to determine morality.

Should have the strength and will-power to get power and position and to achieve one’s goals.

Should have the strength of character to do what is morally right and not do what is morally wrong.

Should always be the first to buy a “round of drinks” for one’s friends at Happy Hour.

 

2. Kantian ethics can best be characterized by:

The consultation of an outside source, such as a person or a book, for guidance.

The belief that a person must decide what course of action is proper based on that person’s own set of beliefs and feelings.

Determining which course of action produces the greatest amount of good for society.

A set of universal moral rules based on reasoning that must be applied in all situations and characterized by consistency and rationality.

 

3. World Development Corporation suggests that its employees apply the Categorical Imperative to ethical issues that arise at work. This theory requires that the employees

Seek to overthrow unjust governments by any means at their disposal

Categorize the issues according to profitability and legality

Evaluate their actions in light of how they treat human beings

Take whatever steps are necessary to survive since one can say categorically that it is a “moral jungle” in the business world.

 

4. Consumer Products, Inc., asks its employees, many of whom are unionized, to apply the Utilitarian theory of ethics. This theory does NOT require

A choice among alternatives that will produce maximum social utility

A determination of what individuals will be affected by an action

An assessment of the positive and negative consequences of alternative actions on individuals affected

The acquiring of the means of production and distribution by the workers.

 

Multiple choice

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1. Defendant Smith’s act helped cause an accident. The judge rules that Smith’s act wasn’t a proximate cause of the accident, however. Several other defendants are involved. The plaintiff obtains a judgment for $10,000. Which of the following statements is correct?

A. The plaintiff can’t recover from Smith.

B. The plaintiff will recover that portion of the $10,000 from Smith equal to Smith’s percentage of responsibility for the accident.

C. Under the doctrine of joint and several liability, the plaintiff can make Smith pay the whole $10,000.

D. The judge made an error. Proximate cause is a legislative issue, not a matter for judges or juries to decide.

 

2. You’re seen running from a jewelry store that has just been robbed. The jeweler gives chase and just as he catches up with you, you throw a bag into the river. The jeweler performs a citizen’s arrest and holds you until the police arrive. Because the bag in the river was never found, at trial you’re declared “not guilty.” You sue the jeweler. What is the likely outcome?

A. You lose. There’s no tort that protects people from being confined unfairly.

B. You win because there was no basis to suspect you of stealing.

C. You lose because your detention was reasonable. There was a real basis for suspecting you of the crime.

D. You lose. Shop owners can hold anyone they want if they suspect them of stealing.

 

3. A broker told you the size of the grass area of the yard of the house you bought was 6,000 square feet. However, the grass covered only 5,000 square feet. The lawn size meant nothing to

you; you didn’t want a big yard anyway because you hated mowing. You liked the house because it was near a mall and good schools. But after buying the house, you realized that the

floor plan was terrible and you wanted out. You sue the broker for misrepresentation concerning the yard.

A. You don’t win because the misrepresentation didn’t actually mislead you in a way that caused harm. The element of  causation of the harm was lacking.

B. You don’t win because the broker was only reckless in  coming up with that footage figure, and didn’t intentionally lie.

C. You win because brokers are agents and should be punished for any misrepresentation, even done in good faith.

D. You win because the misrepresentation was about something important

 

4. Your friend from Australia visits. You invite him to a hockey game. “What’s hockey, mate?”

he asks. Only a few minutes into the game he sees a hockey puck coming straight at him. Your friend has had a few beers and fails to duck and is knocked unconscious. He sues the hockey team. Which is the better defense for the team?

A. Assumption of risk

B. Contributory/comparative negligence

C. Sovereign immunity

D. Failure to mitigate

 

Multiple choice

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1. ROI is the organization’s 

return on interest.

return on innovation.

return on investment.

return on intangible assets.

 

2. Which of the following activities would NOT fall into the risk management function of HR? 

Sending all employees a text message requiring them to report in to a designated individual after an earthquake affects the city in which the company’s plant is located.

Negotiating with a representative of the Occupational Safety and Health Administration (OSHA) about appropriateness of a measure to reduce harmful gases in a mine.

Requiring employees to purchase a minimal level of life insurance when they are deployed overseas.

Designing policies and procedures for a shipping firm to handle episodes of piracy and employee hostage-taking..

 

3. Back roads Merchandise, an Oklahoma-based manufacturer of outdoors and sports products, is facing a pronounced downturn in business due to lower-priced products from foreign competitors. Top management is concerned that this will be a permanent or long-term problem and they have decided to reduce the number of employees. The CEO has conferred with the director of HR to learn which method of reducing the workforce will be received better by both the employees leaving and the employees remaining behind. The CEO also wishes to minimize the cost of the reduction process. The director of HR has suggested the use of 

layoffs with the option of re-hire when business revives.

voluntary separations with severance.

greater use of contingent workers.

attrition combined with a hiring freeze.

 

4. Bob is a retired engineer who works part-time as sales staff at a “big box” home center. The store manager refers to Bob as “Grandpa Bob.”

A modeling agency has sent an 52-year-old man to pose for a photo shoot for a teen-oriented product line. The shoot director was over heard to say on the phone, “What were you thinking? I gave you our target customer profile!”

When James was sent to classes to update his computer skills, his supervisor commented that she was sure “old dogs could learn new tricks.”

The HR managers at a non-profit organization refer to the informal policy of laying off the most senior and highly-paid employees first as the “age before beauty” policy.

 

Multiple choice

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1. What is the ampacity of a No. 3/0, THHN copper wire, in a conduit with one other conductor?

175 A 

200 A 

225 A 

350 A

 

2. In the “old days” in Orlando, Florida, a real estate agent began to make some very nice offers to buy local orange growers’ and farmers’ land. The agent did not disclose the fact that her principal was the Walt Disney Company. Yet she secretly was working as an agent for the Walt Disney Company which was afraid of skyrocketing prices if the “word got out” that Disney was the buyer. When the farmers discovered that the agent was working for Disney, and that they had sold their land to Disney, they claimed the contracts they made were invalid due to the fact that Disney, the principal, was undisclosed. The likely result of any legal dispute among the parties will be:

The agent is liable on the contracts.

Disney can enforce the contracts even those it was not disclosed as the principal.

The farmers are liable on the contracts assuming that the agent did not fraudulently misrepresent that she was acting alone and that Disney was not her principal.

All of the above are likely results.

 

3. Marcus, an entrepreneur, has developed an excellent business plan for a proposed business. He wants to show it to some venture capitalists with the hope that they will invest in the venture, but he is concerned about protecting his business plan from appropriation and wants to protect it as a legal trade secret. Can the business plan be protected as a trade secret?

No, because it cannot be kept secret since Marcus obviously has to show it to people.

No, because it does not have actual worth, rather only potential worth since it is a proposed business.

No, because it contains only “soft” information, such as ideas, concepts, strategies, and plans, and not “hard” scientific information, such as formulas.

Yes if Marcus takes reasonable efforts to keep the plan secret such as putting a confidentiality notice and warning on the plan.

 

4. The state of Mississippi passes a law that prohibits waste hauling companies from bringing out-of-state garbage to dumps located in Mississippi. Mississippi garbage would still be permitted. This law is challenged as unconstitutional by an out-of-state waste hauling company that plans to bring garbage from another state into Mississippi for dumping. The likely result of such a lawsuit would be?

The Mississippi law would be upheld as part of the power of the state to protect its citizens and residents from unpleasant sights and smells.

The Mississippi law would be struck down as unconstitutional because it discriminates against interstate commerce.

The Mississippi law would be struck down because only the federal government and the Environmental Protection Agency can regulate garbage transportation and dumping.

The Mississippi law would be upheld since transportation of garbage is not really “commerce.”

 

Multiple choice

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1. In its broad sense, discrimination means

ethnocentrism.

viewing people with different characteristics negatively.

recognizing differences among items or people.

illegal employment practices.

 

2. The major provision of the Pregnancy Discrimination Act of 1978 is that

pregnant employees are to be given 12 weeks family leave without pay.

pregnant employees are entitled to 12 weeks of paid maternity leave.

maternity leave is to be treated the same as other personal or medical leaves.

employers can not discriminate against employees based on marital status.

 

3. Fernando is an entrepreneur and his start-up company that provides small electricity-generating wind power for individual homes is growing. Fernando has asked you, an HR consultant, to help him set up HR systems for his company. Fernando is concerned that he will have to develop an affirmative action plan, and fears that this will severely restrict his ability to hire the kinds of employees he feels necessary. You tell Fernando that he will NOT have to develop an AAP plan as long as he does all the following EXCEPT

he does not take any government contracts over $50,000.

he keeps the number of employees under 50.

his company does not engage in discriminatory practices and does not have a history of such practices.

he keeps the company privately owned, e.g. the company stock does not trade on a stock exchange.

 

4. established the importance of proving discriminatory intent when an individual sues an employer for discrimination.

placed the burden of proof on the employer to show that the practice in question is actually a business necessity.

clarified that the employer’s past practices were not relevant in proving a discrimination complaint.

demonstrated that tests of intelligence are not discriminatory, even if they have a disparate impact on a protected class. 

 

Multiple choice

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1. As you are conducting research on the free Web for your paper on the benefits of good communication between management and employees, you find a fascinating article written by Dr. Ralph Shrader. He is stated to have over a 45-year career of managerial consulting and is now the chief executive of one the most well-known management-consulting firms in the world. Make the best decision about the use of this material.   

a) Use the material, because it is written by one of the world’s foremost experts, who has worked with a wide-variety of organizations for many years. 

b) Do NOT use the material, because it may promote the biased perspective of one person. 

c) Use the material, but only after validating the key points of Dr. Shrader’s article. 

d) Do NOT use the material, because Dr. Schrader’s perspective may be too commercial.

 

2. You find an image on the Web without a copyright notice or owner listed and want to use it in your PowerPoint presentation for class. What is the policy that applies?   

a) You can use the image freely because there is no copyright notice. 

b) You can use the image, but you need to cite the source. 

c) You can use the image freely since no name is XXXXX XXXXX the owner of the image. 

d) You cannot use the image because it belongs to the owner of the Web site.

 

3. You have written a research paper and are now preparing your annotated reference list. Which of the following materials can you use freely in your annotations?   

a) an article summary from the database abstract, because it is in the public domain 

b) a biography about the author from her university, because it is intended to promote the author?s research 

c) ideas about the article?s validity from other experts, because they have already cited the author 

d) a and b 

e) none of the above

 

4. You use the following article from ABI/Inform Complete in your research paper: Teaching Managers to Appraise Performances by Donna L. Mitchell and Esther Green in Nursing Management, Mar. 1996, Vol. 27, Issue 3, pages 48-49. The URL for the jounal is http://www.nursingmanagement.com. How would you cite it in APA 6th edition format?   

a) Mitchell, D. L. & Green, E. (1996). ?Teaching Managers to Appraise Performances.? 27(3): 48-49. Retrieved from ABI/Inform Complete database 

b) Mitchell, D. L., & Green, E. (1996). Teaching managers to appraise performances. Nursing Management, 27(3), 48-49. Retrieved fromhttp://proquest.umi.com.ezproxy.umuc.edu/pqdweb?did=12920352&sid=1&Fmt=4&clientId=8724&RQT=309&VName=PQD 

c) Mitchell, D. L., & Green, E. (1996). Teaching managers to appraise performances. Nursing Management, 27(3), 48-49. Retrieved fromhttp://www.nursingmanagement.com 

d) XXXXX, XXXXX L. and Esther Green. Teaching Managers to Appraise Performances. Nursing Management, Mar96, Vol. 27 Issue 3, p48C-48D. Retrieved from  http://www.nursingmanagement.com  

 

 

Multiple choice

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1. Which of the following is a FALSE statement?

a. A Utilitarian analysis could morally support the closing of a plant in the U.S. and the outsourcing of the jobs to India if the good consequences resulting from the closure and outsourcing outweighed the harms to the U.S. employees and local community.

b. Kant would not be concerned with a company doing anything for downsized, displaced, and dislocated U.S. workers as a result of a plant closure and downsizing and outsourcing of their jobs overseas since everyone knows that “things are tough” in a global economy.

c. Pollution not only has a legal dimension but also a moral one due to the effects of pollution on the environment, human beings, and other sentient creatures.

d. A Utilitarian would be likely to approve the pollution credit plan because a greater good of less pollution for society is achieved; whereas a Kantian would be likely to disapprove it because some local communities are suffering “legal” pollution.

 

2. Payments by representatives of Western Technology, Inc. to foreign government officials in exchange for favorable business decisions in foreign countries are best described as:

a. Always illegal under the U.S. Foreign Corrupt Practices Act since bribery is a serious legal wrong

b. Legal if they are “facilitating and expediting” payments

c. Always immoral based on ethics since bribery is a serious ethical wrong.

d. Legal if the foreign government official tells the company representatives that the payment is legal under the official’s country’s laws.

 

3. Home Depot Corporation makes material civic and charitable contributions in the communities where it has its stores. In particular, the company contributes to local Habitat for Humanity organizations. The company executives who established this policy of corporate giving can be best described as acting:

a. Legally since the federal Department of Housing and Urban Affairs (HUD) requires that all “big-box” home supply retailers as a condition of getting their federal charter make civic and charitable contributions.

b. Morally since Home Depot is ethically the “last resort,” that is, the only alternative to house the homeless in the United States.

c. Socially responsible in a smart, shrewd, strategic, and long-term sense.

d. Immorally pursuant to Utilitarian ethics since the greater good of the executive stakeholder group is not being achieved since the money being given to charities could be going for executive bonuses.

 

4. Under Rule l0b-5, which is true about insiders?

a. Officers and directors are insiders, but employees who are not officers are not insiders.

b. Officers and directors are insiders, but lawyers and accountants which are hired only on a temporary basis are not insiders.

c. Employees at all levels in a company are insiders, as well as lawyers, accountants, and consultants even  when hired only on a temporary basis.

d. Agents hired on a temporary non employee basis to provide services to the company are not insiders.