Business Law Semester Test

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True/False
Indicate whether the statement is true or false.

The three branches of the U.S. government are known as the legislative, executive, and administrative branches.

The U.S. Supreme Court justices are selected by the states.

When unethical business practices are discovered, new laws are often created to hold all businesses more accountable.

The duties and requirements for serving in state and local governments are determined by the federal government.

The main sources of the law include constitutional law, commerce law, statutes, and civil law.

Civil law is enacted to govern the relationships between two parties and usually involves the government.

A crime is an offense against the public good.

Motive plays no part in proving criminal liability.

It is first-degree murder if someone is killed while the accused is committing another felony.

10.

Robbery is the wrongful and violent taking of personal property.

11.

Embezzlement is what criminals do when they need to hide large amounts of money illegally.

12.

The person accused of a crime is called the plaintiff.

13.

A tort is a wrong committed against an individual.

14.

Public officials must prove actual malice to succeed in a defamation lawsuit.

15.

Invasion of privacy is an unintentional tort.

16.

The main difference between intentional torts and negligence is that one is deliberate, while the other is usually caused by carelessness.

17.

If you are driving your car too fast on a rainy evening and have an accident, you might have committed an intentional tort.

18.

When a bilateral contract is made, one person makes a promise to do something if and when another person does something.

19.

According to common law, when you send an acceptance over long distances, it is effective three days after it is sent.

20.

A contract that is void has no legal effect.

21.

Advertisements in newspapers, price tags, and signs in store windows are treated by the law as invitations to negotiate.

22.

An offer must always be made seriously for it to be legal.

23.

An emancipated minor is a child who is no longer under the legal control of his or her own parents.

24.

Parents have certain rights under the law regarding their minor children, including the right to discipline and the right to manage their children’s property.

25.

Minors who have signed a military enlistment agreement can legally get out of it based on their age.

26.

Capacity rules allow minors, people with mental impairments, and people under the influence of drugs and alcohol to disaffirm a contract.

27.

One of the characteristics of consideration is that it must involve something of value.

28.

For a contract to be considered unconscionable, there must be equal power between the parties involved.

29.

Minors are not allowed to enter into any contracts.

30.

The doctrine of substantial performance is often applied to construction contracts.

31.

The destruction of the subject matter needed to perform the contract, through no fault of either party, discharges that contract.

32.

You have a right to sue a person who breaches a contract made with you.

33.

When actual physical force is used to cause another person to enter a contract, the contract is void.

34.

When you win a lawsuit and collect thousands of dollars beyond what you actually lost, you have received bilateral damages.

35.

Most property is acquired by purchase, gift, or inheritance.

36.

Items attached to a house, such as kitchen cabinets and fixtures, are considered real property.

37.

If a landlord does not want a tenant to assign or sublet property, the lease must contain a covenant to that effect.

38.

A landlord is obligated to make repairs necessary to keep rental property fit for habitation.

39.

Ownership of property can come about by deed, inheritance, or law.

40.

An easement is the right to cross someone else’s property for a particular purpose.

41.

Marriage is not just a personal relationship between two people; it is also a contract.

42.

Alcohol or drug addiction are grounds for divorce in all states.

43.

Cruelty due to mental suffering can be grounds for divorce.

44.

The law in all 50 states requires that people must be at least 18 years of age to marry.

Multiple Choice
Identify the choice that best completes the statement or answers the question.

45.

One difference between criminal and civil procedure is

a.	the judge can decide who has the right to due process and who does not.	c.	in civil cases the defendants have the right to due process, but in criminal cases they do not.
b.	in civil cases the procedures must be followed exactly, while in criminal cases they do not.	d.	in criminal cases the procedures must be followed exactly, while in civil cases they do not.

46.

Young people who appear before a juvenile court have

a.	the right to an open trial in front of the jury.	c.	no right to a trial and no right to be released on bail.
b.	the right to request to be tried as an adult.	d.	a right to a trial and a right to be released on bail.

47.

An appeal in a civil case can

a.	be based only on the arguments made during arraignment.	c.	lead to a retrial at the appellate level
b.	be based only on a legal mistake by the judge.	d.	lead to fines or imprisonment.

48.

A case that has been decided by a state supreme court may be appealed to the

a.	general trial court.	c.	U.S. Supreme Court.
b.	special U.S. court	d.	intermediate appellate court.

49.

Statutory laws are signed by the President or Governor after they are passed by the

a.	judges.	c.	legislators.
b.	commerce board.	d.	regulatory agencies.

50.

The unlawful killing of one human being by another, without malice aforethought, is

a.	justifiable homicide.	c.	second-degree murder.
b.	first-degree murder.	d.	manslaughter.

51.

In a criminal proceeding, the government is referred to as the

a.	defendant.	c.	prosecutor.
b.	offender.	d.	protagonist.

52.

If a law enforcement officer induces a law-abiding citizen to commit a crime, the accused may claim

a.	self-defense.	c.	endangerment.
b.	entrapment.	d.	insanity.

53.

Threatening a person at gunpoint is called

a.	kidnapping.	c.	torture.
b.	aggravated assault.	d.	larceny by false pretenses.

54.

While at work the wrongful taking of another's property by a person who has been entrusted with that property is

a.	extortion.	c.	larceny.
b.	robbery.	d.	embezzlement.

55.

Crimes are categorized into crimes against people, property, motor vehicles, and

a.	murder, manslaughter, and rape.	c.	business, government, and society
b.	assault, battery, and arson.	d.	kidnapping, domestic violence, and vandalism.

56.

When you lie under oath during a court process, you are committing

a.	disorderly conduct.	c.	bribery.
b.	perjury.	d.	treason.

57.

A minor offense that is usually punishable by a fine rather than jail time is called

a.	a misdemeanor.	c.	entrapment.
b.	a felony.	d.	an infraction.

58.

People who are engaged in extremely dangerous activities may be held liable even without negligence or malice; this is known as the doctrine of

a.	assumption of risk.	c.	unintentional liability.
b.	strict liability.	d.	dangerous liability.

59.

To determine if the defendant's conduct was the proximate cause of the plaintiff's injury, the court applies the

a.	proximate cause test.	c.	forensic test.
b.	actual cause test.	d.	foreseeability test.

60.

Using explosives and keeping alligators as pets are examples of

a.	survival statutes.	c.	conversion.
b.	negligence.	d.	strict liability.

61.

The remedies available in tort law usually include

a.	a public apology by the tortfeasor printed in the local newspaper.	c.	financial compensation to the victim for injuries caused by the tortfeasor
b.	prison time for the tortfeasor.	d.	financial compensation for the victim and prison time for the tortfeasor.

62.

To be effective, an offer must be communicated to the

a.	attorney.	c.	lender.
b.	offeree.	d.	offeror.

63.

In contract law, consideration can be defined as

a.	the thing of value promised in exchange for something else of value.	c.	contracts that involve illegal acts are not allowed.
b.	anyone who enters into a legal contract has the ability to do so.	d.	both parties communicating clearly when entering into a contract.

64.

The age of majority in most states is

a.	16	c.	20
b.	18	d.	21

65.

A minor who claims to be over the age of majority commits

a.	fraud.	c.	extortion.
b.	misrepresentation.	d.	larceny by false pretenses.

66.

When a minor disaffirms a contract, the merchandise received upon entering the contract should be

a.	undamaged.	c.	paid for.
b.	returned	d.	ratified.

67.

Giving up something that one has a legal right to do is a type of

a.	benefit.	c.	detriment.
b.	forbearance.	d.	obligation.

68.

A court may refuse to enforce a contract that it finds

a.	fair.	c.	inadequate.
b.	illusory.	d.	unconscionable.

69.

When a contract ends, it is said to be

a.	discharged.	c.	tendered.
b.	released.	d.	avoided.

70.

Threats of a business nature that cause a person to enter into a contract without real consent would qualify as

a.	undue influence.	c.	economic duress.
b.	duress.	d.	fraud.

71.

A deliberate deception to secure unfair or unlawful gain is called

a.	misrepresentation.	c.	a unilateral mistake.
b.	libel.	d.	fraud.

72.

If you find abandoned property, you

a.	have the legal duty to try and find the owner.	c.	may keep it.
b.	must advertise in the local paper for the owner.	d.	must leave it where you found it.

73.

Common carriers are liable for damages to the goods they ship as a result of

a.	the inherent nature of the goods.	c.	public authorities .
b.	driver accident.	d.	the shipper.

74.

If you own real property and rent it to someone, you are a

a.	tenant.	c.	landlord.
b.	lessee	d.	master.

75.

Persons related by blood are said to be related by

a.	affinity.	c.	common law.
b.	bigamy.	d.	consanguinity.

76.

After marriage, the parties may use any name

a.	after a six-month waiting period.	c.	provided they do not commit fraud.
b.	provided they get permission from a judge	d.	except the wife’s surname.

77.

A person who has three or more spouses at the same time is guilty of

a.	bigamy.	c.	polygamy.
b.	affinity.	d.	monogamy.

Matching

a.	plaintiff	e.	crime
b.	self-defense	f.	prosecutor
c.	felonies	g.	infractions
d.	insanity

78.

Sometimes called the district attorney; represents the people

79.

Major crimes such as murder or rape

80.

An offense committed against the public good or society

81.

In court, the party that accuses a person of a crime

82.

A type of defense for people who believe they were in danger and had no other choice but to use force to protect themselves

83.

A speeding ticket and other minor traffic violations are examples

84.

A type of defense for people who do not know what they are doing

a.	1st Amendment	n.	14th Amendment
b.	2nd Amendment	o.	15th Amendment
c.	3rd Amendment	p.	16th Amendment
d.	4th Amendment	q.	17th Amendment
e.	5th Amendment	r.	18th Amendment
f.	6th Amendment	s.	19th Amendment
g.	7th Amendment	t.	20th Amendment
h.	8th Amendment	u.	21st Amendment
i.	9th Amendment	v.	22nd Amendment
j.	10th Amendment	w.	23rd Amendment
k.	11th Amendment	x.	24th Amendment
l.	12th Amendment	y.	25th Amendment
m.	13th Amendment	z.	26th Amendment

85.

Prohibits unreasonable searches and seizures and sets out requirements for search warrants based on probable cause as determined by a neutral judge or magistrate.

86.

Prohibits the denial of the right to vote based on race, color, or previous condition of servitude.

87.

Prohibited the manufacturing or sale of alcohol within the United States.

88.

Addresses succession to the Presidency and establishes procedures both for filling a vacancy in the office of the Vice President, as well as responding to Presidential disabilities.

89.

Prohibits the denial of the right of US citizens, eighteen years of age or older, to vote on account of age.

90.

Prohibits excessive fines and excessive bail, as well as cruel and unusual punishment.

91.

Permits Congress to levy an income tax without apportioning it among the states or basing it on the United States Census.

92.

Protects the right to keep and bear arms.

93.

Defines citizenship, contains the Privileges or Immunities Clause, the Due Process Clause, the Equal Protection Clause, and deals with post-Civil War issues.

94.

Repeals the 18th Amendment and prohibits the transportation or importation into the United States of alcohol for delivery or use in violation of applicable laws.

95.

Prohibits quartering of soldiers in private homes without the owner's consent during peacetime.

96.

Protects rights not enumerated in the Constitution.

97.

Changes the date on which the terms of the President and Vice President (January 20) and Senators and Representatives (January 3) end and begin.

98.

Prohibits the revocation of voting rights due to the non-payment of a poll tax.

99.

Protects the right to a fair and speedy public trial by jury, including the rights to be notified of the accusations, to confront the accuser, to obtain witnesses and to retain counsel.

100.

Revises presidential election procedures.

101.

Establishes the direct election of United States Senators by popular vote.

102.

Sets out rules for indictment by grand jury and eminent domain, protects the right to due process, and prohibits self-incrimination and double jeopardy.

103.

Grants the District of Columbia electors (the number of electors being equal to the least populous state) in the Electoral College.

104.

Provides for the right to trial by jury in certain civil cases, according to common law.

105.

Prohibits the denial of the right to vote based on sex.

106.

Reinforces the principle of federalism by stating that the federal government possesses only those powers delegated to it by the states or the people through the Constitution.

107.

Prohibits the making of any law respecting an establishment of religion, impeding the free exercise of religion, abridging the freedom of speech, infringing on the freedom of the press, interfering with the right to peaceably assemble or prohibiting the petitioning for a governmental redress of grievances.

108.

Abolishes slavery, and involuntary servitude, except as punishment for a crime.

109.

Limits the number of times that a person can be elected president: a person cannot be elected president more than twice, and a person who has served more than two years of a term to which someone else was elected cannot be elected more than once.

110.

Makes states immune from suits from out-of-state citizens and foreigners not living within the state borders; lays the foundation for sovereign immunity.