LAW 531 Final Exam 2018
1. The obligation owed by individuals to one another not to cause any unreasonable harm or any
risk of harm is called:
duty of care
duty of restoration.
duty of loyalty.
duty of restitution.
2. Which of the following best describes the term warranty?
It refers to the terms in a sales contract stipulating the party that will bear the risk of loss of
goods during shipment.
It is a purchaser’s title to goods obtained by the impersonation of another person.
It is the seller’s assurance to a buyer that the goods sold meet certain standards of quality.
It refers to the transfer of possession of stolen property to a person who had bought the property
without the knowledge that it has been stolen.
3 The manifestation of the substance of a contract by two or more individuals is called
.
acceptance
an agreement
an offer
consideration
4 Workers’compensation is defined as the:
set of programs mandated by the government to ensure safety in places of work.
remuneration awarded to employees & their families when the employees are injured on
the job.
insurance obtained by employees from private insurance companies & government-sponsored
programs.
system that provides retirement & death benefits to covered employees & their dependents.
5. Which of the following applies to trade restraints that are inherently anticompetitive?
The per se rule
The pro rata rule
The rule of four
The rule of reason
6. A group boycott occurs when:
competitors at one level of distribution collectively refuse to deal with others at a
different level of distribution.
parties enter into a trade agreement that has greater anticompetitive effects than
procompetitive effects.
competitors agree that they will distribute their goods to only a particular portion of the market.
parties at different levels of distribution enter into an agreement to adhere to a schedule that will
stabilize prices.
, 7. Which of the following scenarios is an example of law & ethics contradicting each other?
the trademarked garment designs of a well-known fashion designer.
A restaurateur, whose restaurant is violating labor laws, bribes a federal official to prevent him
from reporting the violations.
A florist in the United States employs an illegal immigrant to help the immigrant & her
family overcome their financial difficulties.
An iron-ore manufacturing company provides its employees with high-quality safety equipment.
8. Corporate officers are elected by a corporation’s .
board of directors
preferred stockholders
owners
common stockholders
9. Which of the following is a category of torts?
Personal liability
Nonintent crime
Professional malpractice
Strict liability
10. Corporate officers are best described as:
owners of a corporation with limited liability for its debts & obligations.
directors elected by a corporation’s shareholders.
employees appointed to manage the daily operations of a corporation.
partners pursuing a joint venture transaction
11. Which of the following is a remedy that requires the breaching party to perform the acts
promised in a contract?
Binding arbitration
Special damages
Specific performance
Punitive damages
12. Helen buys a toy railway set for her 3-year-old son, Ben. The product’s cover mentions that
the toy is suitable for children only aged between 3 & 12. While playing with the toy one
evening, without Helen’s supervision, Ben chokes on an inch-long engine driver figure that
forms part of the train. Although he survives, he is traumatized by the incident. For which type
of defect can Helen sue the toy manufacturer?
Failure to tamperproof
Defect in product packaging
Failure to warn
Defect in manufacture
13. An agency that appears to be created by a principal but does not exist in reality is called a(n)
.
1. The obligation owed by individuals to one another not to cause any unreasonable harm or any
risk of harm is called:
duty of care
duty of restoration.
duty of loyalty.
duty of restitution.
2. Which of the following best describes the term warranty?
It refers to the terms in a sales contract stipulating the party that will bear the risk of loss of
goods during shipment.
It is a purchaser’s title to goods obtained by the impersonation of another person.
It is the seller’s assurance to a buyer that the goods sold meet certain standards of quality.
It refers to the transfer of possession of stolen property to a person who had bought the property
without the knowledge that it has been stolen.
3 The manifestation of the substance of a contract by two or more individuals is called
.
acceptance
an agreement
an offer
consideration
4 Workers’compensation is defined as the:
set of programs mandated by the government to ensure safety in places of work.
remuneration awarded to employees & their families when the employees are injured on
the job.
insurance obtained by employees from private insurance companies & government-sponsored
programs.
system that provides retirement & death benefits to covered employees & their dependents.
5. Which of the following applies to trade restraints that are inherently anticompetitive?
The per se rule
The pro rata rule
The rule of four
The rule of reason
6. A group boycott occurs when:
competitors at one level of distribution collectively refuse to deal with others at a
different level of distribution.
parties enter into a trade agreement that has greater anticompetitive effects than
procompetitive effects.
competitors agree that they will distribute their goods to only a particular portion of the market.
parties at different levels of distribution enter into an agreement to adhere to a schedule that will
stabilize prices.
, 7. Which of the following scenarios is an example of law & ethics contradicting each other?
the trademarked garment designs of a well-known fashion designer.
A restaurateur, whose restaurant is violating labor laws, bribes a federal official to prevent him
from reporting the violations.
A florist in the United States employs an illegal immigrant to help the immigrant & her
family overcome their financial difficulties.
An iron-ore manufacturing company provides its employees with high-quality safety equipment.
8. Corporate officers are elected by a corporation’s .
board of directors
preferred stockholders
owners
common stockholders
9. Which of the following is a category of torts?
Personal liability
Nonintent crime
Professional malpractice
Strict liability
10. Corporate officers are best described as:
owners of a corporation with limited liability for its debts & obligations.
directors elected by a corporation’s shareholders.
employees appointed to manage the daily operations of a corporation.
partners pursuing a joint venture transaction
11. Which of the following is a remedy that requires the breaching party to perform the acts
promised in a contract?
Binding arbitration
Special damages
Specific performance
Punitive damages
12. Helen buys a toy railway set for her 3-year-old son, Ben. The product’s cover mentions that
the toy is suitable for children only aged between 3 & 12. While playing with the toy one
evening, without Helen’s supervision, Ben chokes on an inch-long engine driver figure that
forms part of the train. Although he survives, he is traumatized by the incident. For which type
of defect can Helen sue the toy manufacturer?
Failure to tamperproof
Defect in product packaging
Failure to warn
Defect in manufacture
13. An agency that appears to be created by a principal but does not exist in reality is called a(n)
.
