MGT102. LEGAL ENVIRONMENT OF BUSINESS (MGT102) > TAKE ASSESSMENT: EXAM 3           Question Completion Status:  Question 11 points  Save   The Pollution Prevention Act of 1990 concerns: a. water pollution caused by nuclear power plants b. waste management and reducing sources of pollution c. deteriorating air quality standards d. destruction of migratory species e. pollution of the nations beach system  Question 21 points  Save   Sexual harassment does not appear to include: a. commenting on physical attributes b. deliberate, unsolicited touching of a sexual nature c. using crude or offensive language directed at a woman d. discussing sexual activities e. all of the above may be included  Question 31 points  Save   A noteworthy change at the FDA is its: a. greater reluctance to approve drugs for use in life-threatening situations due to high toxicity of such drugs b. regulation of the sale of fish and shellfish c. increased inspection of foreign fruit shipments d. allowing quicker approval for use of drugs that show promise in treating life-threatening diseases e. dropping the quarantine requirements that apply to animals brought into the U.S.  Question 41 points  Save   If, at a trial where a person has claimed employment discrimination has occurred, and the employer has offered a rationale for what happened, then: a. the plaintiff need do no more if a prima facie case had been established; the plaintiff wins b. the employer wins if a non-discriminatory reason for the action taken was offered c. the court accepts testimony from the EEOC about its conclusion from investigating the case d. the plaintiff must show that the employer’s explanation is only a pretext or excuse for illegal behavior e. the court usually sends the case to arbitration for resolution  Question 51 points  Save   The Worker Adjustment and Retraining Notification Act requires certain employers planning large layoffs to: a. give employee advance notice b. give employees and certain officials advanced notice c. to notify the Secretary of Labor d. find new jobs for employees who will lose jobs e. to contact the state unemployment commission  Question 61 points  Save   The average cost of developing a new drug and clearing all FDA regulations to get the drug to market are: a. paid by the FDA only if the drug is approved b. paid by the FDA only if the drug is not approved c. paid by the FDA whether or not the drug is approved d. paid by the National Institute of Health e. about $500 million and are paid by the drug companies  Question 71 points  Save   Under the 1990 Clean Air Act: a. Congress provided for the control of pollution originating in the foreign countries b. Congress provided for an import duty on those goods produced at foreign plants that do not use pollution controls c. Congress required further reductions in the emission of toxic pollutants d. concentrates on limiting pollutants from autos, calling for a 35% reduction by 2001 e. provide an exemption to coal-fired power plants from sulfur dioxide and nitrogen oxide emission reductions  Question 81 points  Save   The LandrumAct provided which of the following? a. a Bill of Rights for employers b. states the right to pass laws that prohibit agency shops c. penalties for union officials who abuse the powers of their offices d. prevents federal courts from issuing injunctions to prevent orderly labor disputes e. all of the above  Question 91 points  Save   In addition to having the power to decide when drugs will be allowed to be marketed, the FDA can remove dangerous products from the market. An example of the FDA’s use of its power to remove dangerous products from the market is the: a. recall of GM trucks from the market b. removal of most silicone breast implants from the market c. removal of high-fat pork products from the market d. removal of low-SPF tanning products from the market e. removal of animal-tested cosmetics from the market  Question 101 points  Save   The first federal law that specifically addressed equal employment issues was the: a. LandrumAct of 1959 b. Civil Rights Act of 1964 c. National Labor Relations Act of 1935 d. Interstate Commerce Act of 1887 e. Equal Pay Act of 1963  Question 111 points  Save   In the insider trading cases that have made big news, such as those involving Ivan Boesky, the main illegal act was that they traded stock in: a. their own companies, based on information they learned about forthcoming events b. other companies based on information they obtain by theft of documents c. companies based on information they had a fiduciary duty not to reveal to others or to use for personal gain d. companies not properly registered with the SEC under the 1933 Securities Act e. none of the above  Question 121 points  Save   The registration requirement of the Securities Act of 1933 applies to: a. charitable or religious organizations’ securities b. government bonds c. insurance policies d. all of the above e. none of the above  Question 131 points  Save   Which class of securities is (are) exempt from the federal securities laws? a. issues by governments b. issues by corporations with assets under $1 million c. issues by corporations with over $1 billion in assets d. all of the above/label> e. none of the above  Question 141 points  Save   The courts use the rule of reason to decide some antitrust cases because: a. the courts consider the facts surrounding a case to decide if a practice hurts or helps competition b. it is reasonable to compare a case being tried to a previous case and use the decision from that case c. the courts would rather use the rule of reason than go through a detailed economic analysis d. all practices attacked under antitrust laws are anti-competitive and thus unreasonable e. none of the above  Question 151 points  Save   The Fair Debt Collection Practices Act regulates: a. creditors attempting to sell credit card services b. the number of times a debt collector may contact a consumer in a 60 day period when attempting to collect a debt c. abusive techniques used by some debt collection agencies d. the use of 800 number phone lines by collection agencies e. all of the above  Question 161 points  Save   Before the Sherman Act in 1890, antitrust law: a. did not exist b. relied on common law courts to refuse to enforce unreasonable restraints of trade c. relied on state statutes to attack anticompetitive practices d. was handled on a case by case in Congress as matters arose e. was based on Supreme Court interpretation of the commerce clause  Question 171 points  Save   Suppose a debt collector has been calling and sending notices of a debt you owe. If you wish to end further notification from the debt collector, you must: a. obtain an injunction against further contact b. pay the debt in full within 30 days c. contact the Federal Trade Commission to request limits to notification d. send the debt collector a letter requesting they stop contact e. none of the above  Question 181 points  Save   Vertical restraints of trade are arrangements between: a. manufacturers at the same level of production b. manufactures in the same geographical area c. distributors of the same size d. buyers and sellers e. small-sized sellers and large-sized sellers  Question 191 points  Save   Under the common law rules of the nineteenth century, contracts designed to restrain trade or eliminate competition were: a. illegal b. not enforced when the courts found them to be unreasonable c. considered to be in the public’s best interest d. beyond the scope of the legal system e. a matter for legislative, not judicial, supervision  Question 201 points  Save   The “Mail Order Rule” states that if a company: a. buys products through the mail it must use the U.S. Postal Service, and not a private courier system b. buys products through the mail from a foreign country, it must register with the FTC c. sells products through the mail it must have a reasonable basis for expecting to ship the products within the time advrtised d. sells products through the mail is must provide toll-free 800 phone numbers for its customers to use so that they do not spend additional money placing an order e. none of the above are correct  Question 211 points  Save   William is an attorney in Ohio. Melvin hires William to create a trust for his children. William has not been keeping up with developments in trust law, and so creates an inefficient trust. Under Ohio law, he could have created a much more beneficial trust. In this case: a. William has violated a duty of loyalty b. William has violated a duty of reasonable care c. William has violated a duty of obedience d. William has violated a duty to account e. William may be out-of-date but has violated no duties  Question 221 points  Save   Internationally, the most visible franchises are: a. feedstock cooperatives b. fast food restaurants c. supermarket chains d. gasoline stations e. clothing stores  Question 231 points  Save   The Family and Medical Leave Act gives employees the right to take: a. 12 weeks of paid leave per year for health and family-related reasons b. 12 weeks of unpaid leave per year for health and family-related reasons c. 6 weeks of paid leave per year for health and family-related reasons d. 6 weeks of unpaid leave per year for health and family-related reasons e. 2 weeks paid leave per year for health and family-related reasons  Question 241 points  Save   When a seller will sell a product only on the condition that the buyer also purchases a different product, there is a: a. resale price maintenance agreement b. an exclusive dealing arrangement c. a group boycott d. tie-in sale e. a Robinson-Patman price discrimination sale  Question 251 points  Save   The Used Car Rule requires dealers to give consumers the following information except: a. a statement about any warranty terms offered with the vehicle b. a statement about known defects with the vehicle c. a warning that oral promises may not be enforceable d. a suggestion that the consumer get an independent inspection of the vehicle e. all of the above are required  Question 261 points  Save   Employer complaints about workers’ compensation generally revolve around the argument that the system: a. is too uncompromising b. is too expensive c. doesn’t include enough people d. discriminates against the elderly e. is underfunded  Question 271 points  Save   The National Ambient Air Quality Standards: a. sets limits on quantities of certain pollutants that are emitted into outdoor air b. are to be established taking into account the economic and feasibility of the pollution controls necessary to be implemented to protect the public health and welfare c. are postponed by a variance for major emitting facilities if the owner can demonstrate that the standards will pose a significant financial burden d. are established by taking into account the public health and welfare taking into account an adequate margin to allow companies to maintain reasonable profits e. were met for the basic pollutants by the early 1990s  Question 281 points  Save   The “bubble concept:” a. allows facilities in an industrial complex to be treated as a single pollution source if the complex is expanded b. is used in making EPA technology assessments in PSD areas c. is a part of the emissions offset policy provided for the control of air pollution in nonattainment areas d. is a part of the National Pollution Discharge Elimination System e. is specified as the means through which the acid rain regulations are implemented under the 1990 Amendments  Question 291 points  Save   Which of the following is not a duty owed by the agent to the principal: a. loyalty b. reasonable care c. accounting d. notification e. all of the above are required  Question 301 points  Save   A trucking company has ten employees whose job is loading 100-pound sacks on trucks. Of those who apply for the jobs, one man in three can do the lifting, but only one woman in fifty. As a result, all employees are men. In sex discrimination suit, the most likely result will be that the company will: a. lose because the statistics prove the structure of the employment situation is discriminatory b. lose because it could make smaller sacks smaller, which would increase the number of women who would be eligible c. win because there is a business necessity that produces the all male workforce d. win because the work involved is traditional male work e. none of the above  Question 311 points  Save   Under the Equal Pay Act, pay differentials on the basis of sex are eliminated by: a. lowering the wages received by men b. lowering the wages received by women c. raising the wages received by women d. raising the wages received by men e. giving stock options to the group discriminated against  Question 321 points  Save   If over 50% of the employees at a workplace vote for union representation, the NLRB will: a. hold an election to determine which union workers want to represent them b. certify the union as the exclusive bargaining agent for all employees in the bargaining unit c. certify the union as the exclusive bargaining agent for all employees and require all employees to join the union d. certify the union as the exclusive bargaining agent for the employees who voted for the union, whether they join the union or not e. certify the union as the exclusive bargaining agent for the employees who voted for the union and require those who voted for the union to join it  Question 331 points  Save   Under the Clean Water Act: a. states must allocate the burden of reducing pollution among the existing sources b. the EPA develops effluent guidelines on an industry-by-industry basis c. the EPA develops health-based pollution control standards d. all of the above e. none of the above  Question 341 points  Save   In the U.S., one important trend of the 1980s in the international business environment was: a. increased direct investment by foreign competitors b. reduced participation by foreign manufacturers in the U.S. market c. significant reduction of U.S. consumer interest in foreign goods d. the erection of significant barriers to trade e. the elimination of regulatory interference by the U.S. government in issues of international business  Question 351 points  Save   The TruthAct: a. is intended to help married women establish credit history b. is intended to eliminate credit discrimination on the basis of sex, race, color, religion, and other characteristics set forth in the Act c. restricts interest rates creditors may charge consumers d. encourages competition in financing consumer credit e. all of the above  Question 361 points  Save   Collective bargaining refers to the process by which the: a. union solicits support for itself b. employees solicit support for unionization c. employer solicits support for non-unionization d. employer and the union negotiate an employment contract e. employer and the union negotiate a right-to-work law  Question 371 points  Save   “Yellow” contracts, in which employees agree not to join a union as a condition of employment, were made unlawful by: a. the LandrumAct b. the NorrisGuardia Act c. the TaftAct d. the Civil Rights Act of 1964 e. the Wagner Act  Question 381 points  Save   Quid pro quo sexual harassment refers to: a. crude or offensive language b. touching someone in a sexually offensive manner c. promising a promotion in exchange for sex d. displaying sexually explicit photographs e. all of the above  Question 391 points  Save   Indirect exporting involves: a. the development of an organization within the company that is responsible for export business b. ships by a company directly to its overseas customers c. using an exporter or foreign purchasing agent who sells products in foreign markets for U.S. manufacturers d. a contractual arrangement to allow a foreign company to use company patents and trademarks for a fee e. none of the above  Question 401 points  Save   The Williams live on a farm. BG Company has been drilling for oil next to their property. The Williams’ water now stinks and contains assorted chemicals. Tests show the water has been tainted with the chemicals used in BG’s drilling. If the Williams sue BG for damages for their tainted water well, what theory would they best use? a. public nuisance b. fraud c. conversion d. strict liability in tort e. misappropriation  Question 411 points  Save   When firms competing at the same level of business agree to allocate territories in a market, and fix prices at the same time, the followng may result: a. firms may exercise monopoly power in their assigned region b. competition within regions will be reduced c. their actions may be found per se illegal d. the Sherman Act may be violated e. all of the above  Question 421 points  Save   An agreement among businesses at the same level of production to fix prices is: a. legal is the parties mutually agree (no duress) to lower their prices b. legal if the price set is reasonable to consumers c. illegal per se under the antitrust laws d. illegal unless the parties can demonstrate that consumers will benefit e. all of the above  Question 431 points  Save   Workers will not be protected under the NLRA if: a. they engage in threats or acts of violence b. they engage in concerted activities to organize a union c. they refuse to work on a certain job because of hazards d. they discuss unionization among employees while at work e. none of the above apply  Question 441 points  Save   Power of attorney: a. is a document that applies only to attorneys in certain capacities b. refers to a category of agents c. is a document that creates an agency d. exists whenever a person has the right to execute a transaction for another e. exists whenever an attorney has the right to execute transactions for a client  Question 451 points  Save   This ad was seen in a publication: “Wanted: Assistant to the President. Great job opportunity for bright, young, hard working person to work with President of a major private university.” This ad is most likely to violate: a. disability law because “bright” may discourage applicants with mental problems b. discrimination law that requires jobs to have clearly stated goals and qualifications, not vague terms c. age discrimination laws since “young” is probably not over the age of 40 d. sex and race discrimination law since women and minorities are presumed not to be hard working e. no violations exist  Question 461 points  Save   In an international contract, a force majeure clause: a. specifies the contingencies in the event of a specified occurrence contemplated by the parties during the negotiation of the contract b. protects contracting parties from problems arising from problems beyond their control c. is triggered solely by economic rather than social and political activities and events d. an integral part of the arbitration provision when third world governments are involved in the contract e. is not a part of international contracts for the sale of services  Question 471 points  Save   The Fair Debt Collection Practices Act prohibits the following by debt collectors except: a. harassing, late-night phone calls b. discussing a debt with neighbors c. publication of a list of debts owed d. threatening violence if a debt is not paid e. all of the above are prohibited  Question 481 points  Save   Under grievance arbitration means: a. Under grievance arbitration clauses and arbitration procedures defined in collective bargaining agreements, disputes between employers and unions are to be resolved by an internal grievance procedure. b. disputes arising under a collective bargaining agreement must go first to federal court for relief c. a grievance is an internal matter and is never to be arbitrated by an outside labor arbitrator d. disputes arising under a collective bargaining agreement must be settled by the National Labor Relations Board e. none of the above  Question 491 points  Save   Which of the following laws regulates the buying and selling of traded securities? a. The Taft-Hartley Act b. The 1933 Securities Act c. the 1934 Securities and Exchange Act d. the Federal Trade Commission Act e. none of these  Question 501 points  Save   The securities registration process requires all the following information to be provided to prospective investors except: a. the security issuer’s finances b. the purpose of the offering c. SEC staff analysis of the offering d. financial statements by certified public accountants e. all of the above are required  Question 511 points  Save   In general, the NLRB and the courts will not permit outside union organizers access to: a. employees who wish to unionize b. employees who oppose unionization c. management of companies that compete with the company opposing unionization d. the property of a company opposing unionization e. media if they seek to promote the unionization effort  Question 521 points  Save   During the 1960s the public became more concerned about the environment. This concern was sparked, in part, by: a. the nuclear disaster at Chernobyl b. the Exxon Valdez oil spill c. the publication by Rachel Carson of “Silent Spring” d. the diminution of the elephant herds in Africa e. all of the above  Question 531 points  Save   If Jayhawk Co. discharges more pollution into the Wahoo River than its permits allows, it must: a. clean the river immediately b. report the violation to proper officials c. call for a state of emergency on the River d. do all of the above e. only clean the river if it is economically feasible  Question 541 points  Save   A closed shop, prohibited by the TaftAct: a. is an employer who refuses to hire outemployees b. means an employee must be a union member before working at a unionized work place c. means a place of employment closed to all union members d. refers to shutting down all work production before a strike has a chance to occur e. none of the above  Question 551 points nbsp;Save   The Food, Drug, and Cosmetic Act passed in 1938: a. repealed the 1906 Pure Food and Drug Act. b. gave the FDA responsibility to restrict the levels of food additives used. c. required the FDA to monitor nutrition information on food products. d. allowed the FDA to prohibit drugs that had not been demonstrated to be effective. e. prohibits the sale of any drug until the manufacturer demonstrates to the FDA that the drug is safe for its intended use.  Question 561 points  Save   When the SEC reviews a prospectus for a new stock offering it may not: a. rule on the merits of the offering b. issue a deficiency letter ordering the issuer to amend the prospectus c. issue a stop order preventing the issue from going forward d. none of the above may be done; the SEC only records the prospectus for public filing e. all of the above may be done  Question 571 points  Save   A possible way to save the expenses of registering a new security offering is to keep a security exempt from registration. One of these exemptions is called: a. a shelf registration exemption b. an accredited investor exemption c. a private placement exemption d. a blue sky exemption e. none of the above  Question 581 points  Save   A key motive behind the Sherman Act was: a. concern over the undue influence banks had over Congress b. Congressional concern to limit competition faced by U.S. agricultural producers c. concern that small businesses were too influential in state legislatures d. unpopularity of large businesses organizations e. a desire to end import tariffs  Question 591 points  Save   Regulation Fair Disclosure (FD) requires: a. insiders in companies to release reports on all securities trades b. public companies to release information about significant information within 24 hours of the event or when it first becomes known c. public companies to release information about securities trades by all senior executives and board members d. public companies to provide explanations about all significant changes in the price of securities e. none of the above  Question 601 points  Save   Early trade customs for international commerce centered principally on the rules governing: a. the concept of territory b. sovereign jurisdiction c. the law of the sea d. nationality e. the various local stock exchanges  Question 611 points  Save   The authority given by the principal to an agent, conferring on the agent the power and right to change the principal’s legal status is referred to as: a. actual authority b. authority in rem c. authority at law d. general authority e. special authority  Question 621 points  Save   A place of entry in a country that does not assess duties or tariffs on products is called: a. foreign trade zone b. countervailing duty zone. c. duty-free port d. trade-enhancement zone e. none of the above  Question 631 points  Save   To grow cranberries, Eva has nurtured a wet area on her property. The National Cancer Institute links cranberries to cancer causing the market for cranberries dries up. Eva changes her land to a goat farm because goat cheese is popular. To make this change Eva must: a. obtain a license from the state of Massachusetts to stop growing cranberries b. obtain a license from the Department of Agriculture to stop growing cranberries c. obtain a license from the Department of the Interior to develop a goat farm d. obtain a permit from the U.S. Army Corps of Engineers e. Eva does not need to do anything; she may change her farm however she wants  Question 641 points  Save   The Fair Debt Collection Practices Act applies to: a. all creditors attempting to collect debts b. all corporations attempting to collect debts c. merchants attempting to collect debts from their customers, but not to financial institutions d. debt collection agencies e. all of the above  Question 651 points  Save   To constitute a ratification: a. the principal can ratify only agreements about which he has knowledge of the material facts b. the agent must have purported to act for of the principal and not on the agent’s own behalf c. the principal must ratify the entire agreement before the third party withdraws d. if the original agreement between the agent and third party was required by law to be in writing, ratification must also be in writing e. all of the above  Question 661 points  Save   A public nuisance is: a. a reasonable interference with a right held by the general public b. an interference with a right held by the federal government c. an unreasonable interference with a right held by the general public d. an unreasonable interference with rights held by public servants e. all of the above  Question 671 points  Save   U-Haul sued a competitor, Jartran, for making false claims about the two companies in its ads. The lawsuit, which was successful, was brought under the: a. FTC Act b. Magnuson-Moss Act c. Lanham Act d. False Advertising Act e. Advertising Substantiation Act  Question 681 points  Save   Purchasing stock in a company gives the owner a(n): a. promise to receive cash from the issuing company equal to the market value of the stock paid. b. equal share of the assets of a company. c. right to participate in active management decisions of a firm, d. claim on a portion of future profits (if any) of the company. e. guaranteed fixed rate of return each year.  Question 691 points  Save   According to Article 38 of its Statute, the International Court of Justice has the power to decide international disputes. However, standing to bring suit is limited to: a. aggrieved individuals–except businesses–with no acceptneutral forum for dispute resolution b. aggrieved parties–but only in commercial transactions–with disputes that cannot be resolved by arbitration c. aggrieved parties–both individuals and businesses–but only if they have a specific clause in their contract calling for resolution by the International Court d. only those countries that are part of the world community–no individuals or businesses have standing e. only those countries that are part of the world community and which do not have a well-defined judicial system  Question 701 points  Save   Discriminating in price between different purchasers of the same goods, when the effect is to injure competition, was made: a. illegal by the Robinson-Patman Act b. illegal by the Supreme Court in the Utah Pie case c. legal by the FTC Act d. legal by the Supreme Court in the Utah Pie case e. none of the above  Question 711 points  Save   The main purpose of the Landrum-Griffin Act is to have: a. the government issue back-to-work orders to postpone economically destructive strikes b. state governments to have the ability to pass right-to-work laws if they want c. protect union members from improper actions by union leaders d. bad faith bargaining by labor or management subject to strong federal penalties e. none of the above  Question 721 points  Save   BT Company (American) is considering opening a factory in the Ukraine. The Ukraine political environment is a major concern. To protect itself in case of national