Law related multiple choice questions

Question 1
1. Which of the following is the most correct statement of the requirements for a bona fide occupational qualification?
 Job related and cost effective.
 Job related and nondiscriminatory.
 Job related and a business necessity.
 Rationally based and evenly and ethically applied.
Question 2
1.  Ron is a director of Standard Company. Ron has a right to
 first refusal.
Question 3
1. “Fundamental corporate change” consists of:
a. Amending the articles of incorporation
b. Merging with another corporation
c. Dissolution and termination of the corporation
d. All of the above.
1. Which of the following is true relating to a “firm offer” under the UCC?
 It can be made only by a merchant.
 It must be in writing and signed by the merchant.
 It may provide that the offer remain open for any period of time up to four months.
 A and B only.
Question 5
1. Which of the following is a true statement?
A. Powers not given to the states by the U.S. Constitution are reserved for the federal government in Washington, D.C.
B. The states in the United States are not permitted to have their own constitutions because doing so could conflict with the U.S., that is, federal constitution.
C. The U.S. Congress has the power to create administrative agencies.
D. The doctrine of stare decisis means that one should not intently stare at a co-worker of the opposite sex since one might be sued for sexual harassment.
Question 6
1. The jury returns a verdict against X Corporation, in its suit against Y, Inc.  X can file a motion for
 a directed verdict.
 a judgment on the pleadings.
 a new trial or for a judgment notwithstanding the verdict.
 summary judgment.
Question 7
1. Horizontal price-fixing occurs when:
 One or more companies charge the same prices for goods at all their stores for an unreasonable length of time.
 A manufacturer requires its independent retail dealers to sell its products at a given price.
 A company with the entire market on a patented product sells the product at a fixed price.
 Two or more competing companies agree on the prices they will charge for their products.
Question 8
1. If the buyer breaches the contract before the goods are completed, the seller can:
 Complete the goods and resell them.
 Stop work on the goods and resell them as scrap.
 Recover damages from the buyer.
 A, B and C.
Question 9
1. Which of the following best describes the requirements of a partnership?
 An association of persons, owning property, sharing gross receipts.
 An association of persons, owning and managing a business in order to make a profit.
 An association of persons, owning property in order to make a profit.
 An association of persons.
Question 10
1. Which of the following are required elements to the common law tort of negligence?
a. Duty and breach of duty
b. Factual and proximate (also called legal) causation
c. Damages
d. All of the above.
Question 11
1. Who can be deemed liable for trading on material inside information based on U.S. securities laws?
a. Misappropriators of inside information
b. Insiders and tipees in conspiracy with insiders
c. Inadvertent tipees who are in a fiduciary relationship with the disclosing party
d. All of the above.
Question 12
1. Which of the following can be deemed to be a product defect pursuant to strict liability tort law?
a. The lack of a warning or the lack of an adequate warning on a product.
b. A flawed product, that is, one that does not meet the manufacturer’s own standards for that product.
c. A product that does not incorporate state-of-the-art safety modifications which are feasible economically and practically to do.
d. All of the above.
Question 13
1. The elements of a valid contract are:
a. Mutual agreement and consideration
b. Capacity and legality
c. A writing if the Statute of Frauds applies
d. All of the above.
Question 14
1. Which of the following most likely is illegal discrimination pursuant to Title VII of the federal Civil Rights Act?
a. Not considering applicants for manufacturing sales positions because of their religious beliefs in incarnation.
b. Not hiring applicants for sales positions who are smokers of tobacco products.
c. Not hiring gay, lesbian, bisexual, or transgender employees.
d. Not hiring candidates whether male or female who are parents when extensive travel is involved with the position.
Question 15
1. Which of the following is true about the Sherman Act?
 Liability under Section I for restraint of trade requires agreement with another party, but liability under Section 2 for monopolization does not.
 Liability under the Section 2 for monopolization requires agreement with another party, but liability under Section I for restraint of trade does not.
 Liability under either Section I or Section 2 requires agreement with another party.
 A business can be liable under either Section I or Section 2 without any agreement with another party.
Question 16
1. Which of the following is a true statement?
A. Death of an agent or the principal terminates an agency only after notification of death is received by the living party.
B. An agency coupled with an interest usually terminates on the death of the principal.
C. An agency coupled with an interest is usually revocable by the principal.
D. Revocation of authority is done by the principal whereas renunciation of the authority is done by the agent.
Question 17
1. The bargained-for element of a contract is best legally construed as
 The price
 The offer
 The consideration
 The intent
Question 18
1. A contractual clause establishing an amount of prospective damages for breach is best described legally as
 Mitigation of damages
 Liquidated damages
 Against the law
 Limitation of damages
Question 19
1. In an ordinary merger, what approvals generally are needed?
 Recommendation by both boards of directors and votes of the shareholders of each corporation.
 Votes by both boards of directors, but shareholders need not approve.
 Vote by the board of directors of the surviving corporation, and for the corporation which does not survive, recommendation by the board of directors and vote by the shareholders.
 For both corporations, a vote by the shareholders, but no action by the board of directors.
Question 20
1. Consequential damages are:
 Awarded to give the nonbreaching party the “benefit of the bargain.”
 Are fixed in an amount prior to an actual breach.
 Arise from foreseeable consequences related to the contract and its breach.
 Are not awarded in the case of personal services contracts.
Question 21
1. Which of the following is not true regarding common law?
 The common law of the United States originally came from England.
 Judges must strictly follow precedent in all cases.
 A drawback of common law is that legal decisions may be followed after they have become outdated or no longer relevant.
 Common law is called common law because judges in England were intended to apply laws similarly is all jurisdictions, thereby making the law common to all.
Question 22
1. The purpose of a proxy is to:
 Allow a shareholder to transfer shares to another.
 Allow a shareholder to place shares in trust.
 Allow a shareholder to assign her right to vote to another.
 Allow a shareholder to assign her dividends to another.
Question 23
1. Which of the following is the most accurate statement?
 The offeree’s rejection of an offer terminates it as a general rule under the common law.
 An offeror can revoke an option contract if the offeror decides that the consideration given for it was inadequate.
 Revocation of an offer made to the general public must be communicated in a large metropolitan newspaper, such as the Miami Herald, New York Times, or Washington Post.
 Offers are irrevocable under the common law for a three month period.
Question 24
1. Which of the following is a false statement?
A. One of the major functions of the U.S. Constitution is to limit the government’s ability to interfere with individual rights.
B. The concept of federalism means that the federal government holds all of the government power.
C. Enumerated powers consist of express powers given to Congress.
D. Federal statutes take precedence over state constitutions.
Question 25
1. An oral contract in which Sally agrees to work for Jane for the rest of Jane’s life is:
 A guaranty contract.
 Unenforceable under the Statue of Frauds because it cannot possibly be performed within one year.
 Enforceable under the Statute of Frauds.
 A and C only.
Question 26
1. What is a FALSE statement regarding monopolization analysis pursuant to Section 2 of the Sherman Act?
a. One generally cannot be guilty of or liable for monopolization without having a monopoly first.
b. One can have a monopoly but not have monopoly power and thus not be a monopolizing company.
c. All monopolies are illegal since they are inherently unfair to consumers.
d. Wrongful conduct by a monopoly to establish the legal wrong of monopolization includes illegal AND unethical, predatory, or abusive conduct (which is not necessarily illegal).
Question 27
1. The doctrine in negligence law which shifts the burden of proof from the plaintiff to the defendant is:
 Negligence per se.
 Res ipsa loquitur.
 Apparent negligence.
 Good Samaritan.
Question 28
1.  A plaintiff in a fraudulent misrepresentation case must prove all of the following except:
A. Reasonable and justifiable reliance
B. False statement of material fact
C. Intent to deceive
D. Physical injury.
Question 29
1. Which of the following is true about punitive damages?
 They are generally not available for breach of contract claims.
 They are awarded only if consequential damages are also awarded.
 They are awarded where specific performance is not available.
 Their purpose is to give the nonbreaching party the benefit of the bargain.
Question 30
1. Corporations typically are required to hold shareholders’ meetings at least:
 Every six months.
 Twice a year, but they are not required to be held every six months.
Question 31
1. Which of the following would constitute a valid acceptance?
 The buyer tells the seller that the nonconforming goods which were shipped will be kept and paid for.
 The buyer waits for three months before notifying the seller that the goods are nonconforming.
 The buyer immediately resells the nonconforming goods.
 A, B and C.
Question 32
1. Which of the following is a true statement?
A. The doctrine of caveat emptor means: Let the buyer beware.
B. The law presumes that a seller who makes a statement about goods is just giving his or her opinion unless the seller clearly says that he or she is making a statement of fact.
C. Implied warranties do not apply to the sale of goods.
D. The implied warranty of merchantability applies only to the goods themselves, and not to the manner in which they are packaged or labeled.
Question 33
1. When is an employer responsible for the negligent torts of its employees?
a. When there is vicarious liability and the doctrine of respondeat superior applies.
b. When the torts are committed by the employee acting in the “course and scope of employment.”
c. When the employer is directly negligent for selecting and/or supervising an incompetent and careless employee who commits the tort.
d. All of the above.
Question 34
1. Under typical state corporation law a director may be removed:
 only for cause.
 with or without cause but only in a close or closely-held corporation.
 with or without cause by the shareholders
 only if expressly permitted by the articles of incorporation.
1. By which of the following methods may a corporation not be dissolved?
 By unanimous written consent of all the shareholders.
 By an act of the legislature of the state of incorporation.
 By the courts, if the directors are hopelessly deadlocked.
 By the courts, if the corporation refuses to pay dividends for the fiscal year.
Question 36
1. Which of the following is a false statement?
  A franchisor can impose certain quality standards on a franchisee.
 Some business forms and organizations in the U.S. offer limited liability to their owners and investors.
 Many states in the U.S. now permit business persons to operate as a limited liability company (LLC).
 No capital can be raised through an offering of stock in the U.S. without the principals first registering the shares with the Securities and Exchange Commission and obtaining the agency’s approval.
Question 37
1. The best statement of the test applied in determining if a defendant was the proximate cause of the plaintiff’s injuries is:
 Was it foreseeable to the plaintiff that the defendant would engage in this particular conduct?
 Given this particular injury to the plaintiff, was it foreseeable that the defendant was the cause?
 Was it reasonably foreseeable to the defendant that the defendant’s conduct could lead to this kind of injury?
 Was the injury foreseeable to the plaintiff prior to the injury’s occurrence?
Question 38
1. Which of the following is correct about Venue?
 It is an alternative to meeting jurisdiction requirements.
 Its requirements must be met in addition to meeting jurisdiction requirements.
 In most cases, venue selection is up to the defendant.
 It allows a party to select the court most likely to decide a case in its favor.
Question 39
1. Which of the following is/are TRUE about performance of a contract?
a. Under the UCC, the performance of a sales contract must meet the “perfect tender” rule.
b. Under the common law, the performance of a construction contract must meet the “substantial performance” doctrine.
c. Under the common law, a contract with a time for performance must be performed as a general rule on the contract date or a reasonable time thereafter.
d. All of the above are true.
Question 40
1. Which of the following statements is false?
 To bring a legal action in the U.S. against an employer for intentional discrimination based on the Civil Rights Act, the employee must demonstrate that he or she is a member of a protected class.
 The Family and Medical Leave Act provides up to 15 weeks of paid leave for U.S. workers who experience the birth of a child or who undergo a serious illness.
 The National Labor Relations Board decides whether a bargaining unit is “appropriate” for a union election in the U.S. by primarily determining if a community of interest exists among the workers in the potential unit.
 Requiring equal pay for equal work for different sexes is part of U.S. labor and discrimination law.

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