Question 1

Which of the following is not an essential element of a partnership relationship?
a.An association of two or more persons who are capable of entering into a binding contract
b. The carrying on of a business for profit
c. Co-ownership of the business
d. A mutual intention to be partners

Question 2

Andy is an officer for Beta Corporation. When acting for Beta in ordinary business situations, Andy is
a. an agent only.
b. an agent and principal.
c. a principal only.
d. neither an agent nor a principal.

Question 3
A contract provision that seeks to relieve a party to the contract from liability is known as:
a. An executory clause.
b. An exculpatory clause.
c. A mitigating clause.
d. A liquidated damages clause.

Question 4
To be guilty of monopolization, the defendant must:
a. Possess monopoly power.
b. Have obtained the monopoly power by some willful wrongful act.
c. Must be part of a conspiracy, combination, or contract.
d. A and B only.

Question 5
To be deemed sufficient, the consideration of a contract must
a. Have precise monetary value
b. Be fair and ethical
c. Have legal value
d. Be a moral obligation

Question 6
State law provides that existing shareholders may buy new issues of stock in the same proportion as their current holdings. This is done to allow the current stockholders to keep the same voting and dividend rights they had before the new issue. This right is known as a right of:
a. Redemption.
b. Ratification.
c. Preemption.
d. First refusal.

Question 7
The consideration element of a contract under the common law can as a general rule be satisfied by:
a. The promisee doing an act or refraining from doing an act in consideration of the promisor's promise
b. The promisee making a return promise to do something or to refrain from doing something in consideration of the promisor's promise.
c. Both a. and b.
d. Neither a. nor b.

Question 8
Which of the following is a true statement?
a.A U.S. company doing business abroad will not have to comply with the Occupational Safety and Health Act regulations on worker safety for its overseas manufacturing facilities.
b.A union shop is a firm that that requires union membership as a prior condition of employment.
c.Under federal labor law in the U.S., employers can monitor and read their employees’ personal communications without their consent.
d. An employer in the U.S. may hire an illegal immigrant if the employer pays a special tax to the Treasury Department.

Question 9
Which of the following would not be a misappropriation of a trade secret?
a. Paying an engineer who is working at a competitor to disclose the trade secret to you.
b. Buying the competitor's product, then tearing it apart and analyzing it in your laboratory to reveal how the product works.
c. Hiring a spy to break into a competitor's offices to acquire the secret.
d. Asking one of your current engineers to disclose a trade secret of her former employer and she does so.

Question 10
The purpose of a proxy is to:
a. Allow a shareholder to transfer shares to another.
b. Allow a shareholder to place shares in trust.
c. Allow a shareholder to assign her right to vote to another.
d. Allow a shareholder to assign her dividends to another.

Question 11
Which of the following statements is false regarding the liability of partners?
a. Each partner is jointly and severally liable on all contracts made by or on behalf of the partnership.
b. Each partner is jointly and severally liable for all physical torts committed by a copartner in the course of partnership business.
c. Each partner is jointly and severally liable for frauds committed by a copartner in the course of partnership business, even though he or she does not know of or participate in the fraud.
d. Where there is joint and several liability, an action may be brought against any one or more of the partners or the partnership.

Question 12
John files a breach of contract suit against Kay, and loses. John appeals, and loses again. The United States Supreme Court is
a. required to hear the case if John appeals again.
b. required to hear the case if John lost in a federal court.
c. required to hear the case if John lost in a state court.
d. not required to hear the case.

Question 13
An output contract is typically
a. Illusory
b. Unconscionable
c. Voidable
d. None of the above

Question 14
As a U.S. judge, the judge normally
a. very actively participates in a trial.
b. does not actively participate in a trial.
c. is expected to question witnesses in a trial.
d. is influence by politics.

Question 15

Who is protected under the Age Discrimination in Employment Act?
a. All workers who are age 40 or over.
b. All workers of any age who are discriminated against because they are thought to be too old.
c. All workers who are in a job in which they were 40 years of ag