Name: _________________________

Date: _____________________

Class: ______________

Business Law 1st Semester Final Exam

Directions: Complete the below exam using the instructions provided before each section. DO NOT WRITE ON EXAM!!!!!
True/False: For each question write true or false in the blank space. If an answer is false, you must make the answer true
to receive full credit.
____ 1. You decide to start operating a business selling shirts online, in your own name, and with your own address. You
do not have or use an official business name or moniker. You are a sole proprietor.
____ 2. A Senator serves for eight years.
____ 3. The Equal Employment Opportunity Commission (EEOC) is the agency that administers Title VII and issues rules
and regulations.
____ 4. For a burglary to occur, the breaking and entering must take place in a dwelling.
____ 5. Intellectual property is tangible.
____ 6. A search warrant is not necessary if the law-enforcement officer is in "hot pursuit" of a suspect.
____ 7. You are selling friendship bracelets online and you give very clear instructions to the ISP about how to post the
listing and photos. The ISP erroneously posts P. Navajo's pictures, at half price, and states that you give a certificate of
authenticity. None of this was included in your instructions. The posting goes viral and tweens and teens from all over
the world order over 50 million bracelets in one day. You are liable.
____ 8. A contract must be written to be enforceable.
____ 9. A guilty plea at an arraignment can be used against a defendant in civil court.
____ 10. A contract is formed even if the offeree does not verbally say, "Okay, I accept," but instead hands the offeror
enough money to pay in full.
____ 11. If you accidently take someone's jacket, believing that it is your own, it is still larceny.
____ 12. A made an offer to C to sell his car to him for $5,000 anytime before the end of June, but it wasn't in writing.
The offer valid.
____ 13. The Court of International Trade is a "special" court.
____ 14. The Occupational Safety and Health Administration (OSHA) addresses clean air and water issues.
____ 15. Statutes are considered a primary source of law.
____ 16. A's younger brother, who is eight years old, has signed a clickwrap agreement online to purchase $700,000
worth of stock in Bank of America. The clickwrap agreement valid?
____ 17. A statute is decided by the courts.
____ 18. You and your brother agree (your mother disagrees) to merge the corporation into a larger insignia brand of
third-world sweatshop-made imitation friendship bracelets called Phooey Buitton (PB) by creating stocks and selling
them to PB. You do this in the midst of the corporate veil lawsuit so that PB absorbs the lawsuit as among BBFB's assets
and liabilities. This is legal.
____ 19. No legal capacity to contract can involve a corporation if the agent who accepts the offer does not have
authority to contract.
____ 20. Since you are selling friendship bracelets online, the Internet service provider (ISP) is your agent.

Multiple Choice: Select the correct answer and write the letter in the blank space.
____ 21. The offeror may _____ the offer at any time prior to acceptance.
a. renew

b. revoke

c. revise

d. all of the above

____ 22. Congressional standing committees are _____.

a. permanent committees

b. found in both Houses of Congress

c. addressing such topics as the environment, agriculture, and the judiciary

d. all of these

___ 23. Which is not one of the President's duties?

a. appointing ambassadors

b. signing bills into law c. appointing Supreme Court judges

d. interpreting laws

____ 24. Samuel K. Jenkins is thirty-five years old and lives in New Mexico. He would like to run for President. What else
do we need to know about his qualifications in order to determine if he is eligible?
a. how long he has lived in New Mexico

b. where he was born

c. whether his spouse is a US citizen

d. both the first & second answers

____ 25. Loretta Bolero wants to run for office but cannot devote more than two years to the job. What office do you
suggest that Loretta think about running for?
a. a vacant Senate seat

b. a vacant seat in the House of Representatives

c. the Presidency

d. any of the above

____ 26. Which of these is true of a member of the House of Representatives?

a. He or she must be at least twenty-seven years of age.
b. He or she must be a natural-born US citizen.
c. He or she must have been a resident of the state represented for at least ten years.
d. None of these.
____ 27. A government "taking" of property under the Fifth Amendment _____.
a. is illegal in all circumstances

b. can be done for public use

c. can be done for private use

d. both B & C

____ 28. Rights guaranteed by the First Amendment include _____.

a. freedom of religion

b. freedom of assembly

c. freedom of speech

d. all of these

____ 29. The Fourteenth Amendment was enacted to address the wrongs of _____.
a. states infringing on citizens' rights

b. the American Revolution

c. the American Civil War

d. prohibition

____ 30. Which of these rights is not considered a right of privacy?

a. right to procreate

b. right to engage in polygamy

c. right to purchase and use contraceptives

d. right to an abortion

____ 31. Patrick, who rear-ended Mary Jane's beloved sports car, is liable to Mary Jane under _____.
a. battery

b. assault

c. negligence

d. intentional infliction of emotional distress

____ 32. Brad could no longer stand the smell emanating from his neighbor Clarence's compost heap that grew more
odorous as the summer progressed. Brad brought an action against Clarence under _____.
a. nuisance

b. assault

c. negligence

d. intentional infliction of emotional distress

____ 33. Gus decides to park his camper in an empty overgrown lot and connects wires from his camper to an electric
pole to obtain electricity. Gus is liable for _____.
a. nuisance

b. trespass

c. negligence

d. fraud

____ 34. Casey grabbed an orange from his lunchbox and lobbed it at Stephen, who was sitting at the next table, to get
his attention. Casey has a terrible aim and struck Amy in the head instead. Casey is liable to Amy for _____.
a. battery

b. negligence

c. strict liability

d. assault

____ 35. Gale had just finished her shift at Dino's Diner, and Kitty was taking over the next one. Kitty noticed that
someone had left a $5 dollar tip on one of Gale's tables. Kitty decided to slip the tip into her pocket. Kitty is guilty of
_____.
a. conversion

b. negligence

c. larceny

d. burglary

____ 36. Choose the option that best matches the description given. There is personal liability.
a. sole proprietorship

b. partnership

c. corporation

d. all of the above

____ 37. Choose the option that best matches the description given. It can be bought in a merger and acquisition.
a. sole proprietorship

b. partnership

c. corporation

d. all of the above

____ 38. Choose the option that best matches the description given. Two or more people can make controlling decisions
about the business operations.
a. sole proprietorship

b. partnership

c. corporation

d. agency

____ 39. The __________ branch of government interprets the law.

a. legislative

b. executive

c. judicial

d. all of the above

____ 40. If you sign a/an _________ contract an employer does not have to have a reason to fire you?
a. legal

b. at will

c. living will

d. none of the above

Matching: Write the letter of the correct match next to each vocabulary term.
____ 41. Offeror

a. a business that is a separate legal entity

____ 42. Offeree

b. a legal binding agreement

____ 43. partnership

c. this branch houses the president of the United States

____ 44. corporation

d. the person who makes an offer

____ 45. Sole-proportorship

e. purposely taking what is not yours

____ 46. Legislative

____ 47. Executive
____ 48. Judicial
____ 49. Contract

f. the person who accepts or rejects an offer

g. a company owned by one individual
h. a business with another person
i. the branch that interprets the law
j. the branch of government houses congress

____ 50. Larceny

Short Answer: In a paragraph of 5 7 sentences explain one or two concepts from the material covered this semester.
Make sure you have an introduction, supporting, and a concluding sentence.