TEST
FOUR
1) Under workers' compensation, when an employee is accidentally
injured on the job:
A) A worker can sue the employer in addition to recovering from
workers' compensation, but only if the employer intentionally caused the
injury.
B) A worker has the choice of whether to file a normal lawsuit or
recover from the workers' compensation board.
C) A worker can file a normal lawsuit and recover from the
workers' compensation board.
D) Whether the injury occurred in the course of employment is not
relevant.
2) Which of the following is not true regarding the
Occupational Safety and Health Act?
A) Its purpose is to protect the safety of workers and the safety
of those who purchase the employer's products or services.
B) Employers are subject to having their workplaces inspected
under the Act.
C) Even though the Act contains numerous specific safety
standards, employers must also provide a work environment that is free from
recognized hazards that could cause death or serious injury.
D) Employers are required to post notices in the workplace
informing workers of their rights under the Act.
3) Which of the following statements is not true under the
Fair Labor Standards Act?
A) Children under 14 cannot work at all, except on farms.
B) Children ages 14 and 15 may work limited hours in nonhazardous
jobs.
C) Children ages 16 and 17 may work unlimited hours in
nonhazardous jobs.
D) Persons age 18 or over may work unlimited hours in nonhazardous
jobs.
4) Under the Fair Labor Standards Act:
A) Limitations are placed on the hours that workers can work each
week without being paid overtime.
B) A minimum wage is set, but is not required to be paid if the
worker agrees to accept a lower amount.
C) Workers are prevented from working in hazardous jobs.
D) Employers are not required to pay overtime for a nonexempt
employee who works 45 hours in the first week but only 25 hours in the second
week of a two-week pay period.
5) Which of the following is not a purpose of ERISA?
A) For employees to have access to certain information about their
pension plans.
B) To make certain that pension plans have restricted amounts of
securities investments placed into them by employers.
C) To require a pension plan to be in writing
D) To ensure that as many companies as possible provide pension
plans for their employees.
6) Which of the following is true about unemployment benefits?
A) Because they are set at the federal level, unemployment
benefits are the same in every state.
B) Employees are eligible to receive benefits regardless of the
reason that employment ends.
C) The taxes to support the unemployment benefits program are paid
by the employer.
D) Once awarded, a recipient of unemployment benefits will be
entitled to collect the award even if the employee finds other work.
7) Bob, an employee of Risky Manufacturing, Inc., is accidentally
injured by a fellow worker while working his shift. Under workers'
compensation, Bob can:
A) Sue Risky or seek workers' compensation recovery, but not both.
B) Sue Risky or seek workers' compensation recovery.
C) Seek workers' compensation but not sue Risky.
D) Recover from workers' compensation only if Risky was negligent
in allowing the injury to occur.
8) Under what conditions must an employer allow nonemployee union
solicitation on company property?
A) If there is currently no union representing the company's employees
B) If the employees live in a company town such that it would be
difficult to solicit the employees off company property
C) If the purpose is to solicit employees to change union
representation rather than to solicit nonunion workers to join a union
D) If the purpose of the union is to address issues other than
wages
9) The Worker Adjustment and Retraining Notification Act requires
notification to be given:
A) Six months in advance for any plant closing.
B) Sixty days in advance for any plant closing.
C) Sixty days in advance for plant closings resulting in the loss
of 50 or more jobs, but not for temporary layoffs.
D) Sixty days in advance for plant closings resulting in the loss
of 50 or more jobs, and for layoffs of 50 employees or 33 percent of workers at
a site for 30 days or more.
10) The Farm Union represents farm workers, some of whom are
employed by Vino Wineries. The union is on strike
against Vino and it is picketing all liquor stores
that sell Vino products. The picketers are asking
that no one buy anything from any liquor store that carries Vino
products. There has been no violence. This picketing is:
A) An illegal secondary boycott.
B) A legal secondary boycott.
C) An illegal common situs picket.
D) A legal common situs picket.
11) A right-to-work law generally provides that:
A) Union membership is mandatory.
B) Employees cannot be forced to join a union.
C) Union employees cannot be laid off.
D) Both union and nonunion employees cannot be laid off.
12) Which of the following types of strikes is legal?
A) Violent strikes
B) Strikes occurring 75 days after union notification to the
employer of a possible strike
C) Sit-down strikes
D) Partial strikes
13) Jed owns a small but growing manufacturing company. Jed had
enjoyed a good relationship with his production workers until recently. Now
there is to be an election to join a national union that will be held in two
weeks. Jed has implemented a policy that there will be no solicitation of
employees on company property. Which of the following is true?
A) Jed must allow solicitation of his employees any time they are
at work.
B) Jed must provide his employees with time off in order to learn
about the union's side of the issue.
C) Jed must allow anyone to solicit his employees while they are
on breaks or at lunch.
D) Jed must allow on-duty employees to solicit other employees,
but can limit it to nonwork areas such as break
rooms.
14) A ________ is a non-immigrant visa that allows U.S. employers
to employ in the United States foreign nationals who are skilled in specialty
occupations.
A) H-1B visa
B) Form I-9
C) H4 visa
D) none of the above
15) The sources of current patent law are:
A) State statutes only.
B) State statutes and administrative rulings.
C) The Federal Patent Statute of 1952 and legislation implementing
the U.S. Court of Appeals for the Federal Circuit.
D) The Federal Patent Statute of 1952.
16) Which of the following is true?
A) Only certain inventions can be patented.
B) Any idea or invention can be patented.
C) Only published works may be copyrighted.
D) Treble damages are available in patent, trademark, or copyright
infringement cases.
17) Wildboards Company introduces a
product called a "Rollerboard" for which it
is granted a registered trademark. The Rollerboard is
a snowboard with a removable row of wheels along the center of the underside.
With the wheels attached, the user can attain extremely high speed in hard
packed snow conditions. In addition, many users have found that they can use
their snowboards on streets with the wheels attached. This new use of snowboards
becomes very popular and many competing snowboard makers introduce similar
products. The sport becomes known generally as rollerboarding
and most people refer to all such wheeled snowboards as rollerboards.
The consequence of this is that:
A) Wildboards cannot prevent competitors
from using the term rollerboard to refer to their
products.
B) Competitors must pay royalties to Wildboards
for using the term "Rollerboard."
C) Wildboards cannot use the name Rollerboard any longer on its boards.
D) Competitors must put a disclaimer on its boards that they are
not the original Rollerboard.
18) 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 the trade secret
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, which she then does
19) Which of the following is true about misappropriation of trade
secrets?
A) A valid patent is required in order to recover.
B) A valid trademark is required in order to recover.
C) Both a valid trademark and valid patent are required in order
to recover.
D) Neither a valid trademark nor a valid patent is required in
order to recover.
20) What obligations does a company have with respect to trade
secrets?
A) File for the appropriate patent or copyright, depending on the
nature of the trade secret.
B) Take all reasonable steps to prevent the secret from being
discovered.
C) File with the Trade Secret Listing of the U.S. Patent and
Trademark Office.
D) A and B.
21) In order to obtain a patent for an invention, the invention
must be all of the following except:
A) Novel.
B) Profitable.
C) Nonobvious.
D) Useful.
22) The following can properly be the subject of a patent except:
A) Mechanical processes.
B) Machines.
C) Conceptual ideas.
D) Designs for manufactured objects.
23) The public use doctrine is also called:
A) Patent infringement.
B) Public utility.
C) Limited label license doctrine.
D) One-year "on sale" doctrine
24) Which of the following kinds of intellectual property does not
need to be registered in order to be entitled to receive protection?
A) Copyrights
B) Patents
C) Trademarks
D) A and B only
25) Which of the following is true about trademark registration?
A) Trademark registration is optional because protection is automatic.
B) Once a trademark is registered, protection cannot be lost.
C) A trademark must be registered prior to its actual use in
commerce.
D) The registration of a trademark can be renewed an unlimited
number of times.
26) Which of the following is true?
A) Trademark protection can be lost if a trademark becomes used
generically.
B) Under the "fair use" doctrine, trademarks can be used
in certain limited ways without the trademark holder's permission.
C) Selling a trademarked item to many buyers can result in loss of
the trademark.
D) Terms such as "English Leather" cannot be trademarked
because they consist only of generic terms.
27) What is the usual effect of a nolo
contendere plea by the defendant in a government
antitrust case?
A) A penalty imposed on the defendant without an admission of
guilt.
B) A penalty imposed on the defendant without an admission of
guilt and automatic liability to any private plaintiffs in related cases.
C) A requirement that a defendant cease business in the line of
business or market where the violation occurred.
D) An admission of guilt accompanied by a lighter penalty than if
a verdict of guilty was issued following a trial.
28) What is the legal significance of the distinction between rule
of reason violations and per se violations under the Sherman Act?
A) Rule of reason violations must be proven beyond a reasonable
doubt and per se violations must be proven with a preponderance of the
evidence.
B) Rule of reason violations require an
agreement with at least one other party, but per se violations can occur
without an agreement with others.
C) Rule of reason violations relate to
horizontal situations, and per se violations relate to vertical
situations.
D) Rule of reason violations might be proven to be acceptable, but
per se violations cannot be acceptable under any circumstances.
29) Horizontal price fixing occurs when:
A) One or more companies charge the same prices for goods at all
their stores for an unreasonable length of time.
B) A manufacturer requires its independent dealers to sell its
products at a given price.
C) A company with the entire market on a patented product sells
the product at a fixed price.
D) Two or more competing companies agree on the prices to charge
for their products.
30) Resale price maintenance occurs when:
A) A retailer refuses to lower its price even though competitors
have lowered their prices.
B) A wholesaler refuses to offer volume discounts to its high
volume customers.
C) A manufacturer sells its products only to those dealers who
agree to charge a certain price for the product's resale.
D) A manufacturer sells its products to its dealers for the same
price in all states even though the retail market is much more competitive in
some states than in others.
31) The following are required to be proven in order to use the
failing company doctrine except:
A) That there is no other reasonable alternative for the failing
company.
B) That no other purchaser is available.
C) That the failure of the failing company is not due to
negligence of its management.
D) That the assets of the failing company would disappear from the
market without the merger.
32) Which of the following is true about tying arrangements?
A) Tying arrangements are always illegal.
B) Tying arrangements are always legal.
C) Tying arrangements are legal for companies without monopoly
power and illegal for companies with monopoly power.
D) Tying arrangements are illegal unless there is a justifiable
reason for the seller to have the tying arrangement.
33) The Hart-Scott-Rodino Antitrust
Improvement Act led to rules requiring:
A) That certain activities are classified as per se
violations.
B) That failing companies be rescued through mergers whenever
possible.
C) That violators of antitrust laws be liable for treble damages.
D) That the Federal Trade
Commission and the Justice Department be notified in advance of any merger
involving certain firms
34) In determining the lawfulness of a merger, which of the
following factors need not be shown?
A) An actual lessening of competition
B) The relevant product market
C) The relevant geographic market
D) The likelihood of a substantially lessening of competition or
the tendency to create a monopoly
35) Which of the following is not required under the
Nutrition Labeling and Education Act?
A) Sellers of most food must provide information on fat content
and fiber.
B) The terms "light," "natural," and similar
terms must be used only in accordance with specific definitions.
C) Maximum fat and saturated fat levels are set for certain foods.
D) Calories derived from fat must be disclosed.
36) Under the federal rules regulating food and drugs:
A) Food must be 100 percent pure before it can be sold to
consumers.
B) Food may contain certain impurities, such as insect parts, as
long as it is not adulterated.
C) If a food contains impurities, such as insect parts, these
impurities must be disclosed on the food label.
D) All food must be inspected by the government before it is sold.
37) Which of the following is true about the FDA regulation of
drugs?
A) The FDA has the power to regulate prescription drugs only.
B) The FDA conducts hearings in connection with new drug
applications.
C) Once approved, the FDA does not have the power to withdraw
approval of a drug.
D) New drugs can be marketed prior to FDA approval so long as the
drugs have no dangerous side effects.
38) The Consumer Product Safety Commission is empowered to do all
of the following except:
A) Adopt rules and regulations to interpret and enforce the
Consumer Product Safety Act.
B) Conduct research on the safety of consumer products.
C) Issue comparative safety ratings of competing products.
D) Order a manufacturer to recall, repair, or replace a dangerous
product or take other corrective action.
39) Which of the following is true about lemon laws?
A) They are a series of federal statutes designed to protect
purchasers of new cars.
B) The first remedy under these laws is an expedited process in
the court system.
C) They protect owners against defects occurring anytime within
the new car warranty period.
D) They apply only in situations where there are recurring
problems that the dealer or manufacturer has been unable to remedy.
40) In order for a party to be liable for false and deceptive
advertising, it must be shown that:
A) The advertisement has deceived a majority of the persons who
have seen it.
B) At least some persons have been deceived by it.
C) The plaintiff in the lawsuit was deceived by it.
D) The advertisement is likely to mislead a reasonable consumer.
41) Which of the following is NOT provided for in the Food, Drug,
and Cosmetic Act?
A) Testing of drugs
B) Manufacture of drugs
C) Distribution of drugs
D) Advertising of drugs
42) Which of the following is true about the Clean Air Act?
A) Congress set national ambient air quality standards for a
number of pollutants.
B) Congress set goals, but not standards for a number of
pollutants.
C) Congress directed the EPA to set ambient air quality standards
for certain pollutants, but the EPA has not yet set the standards due to
scientific uncertainty.
D) Congress directed the EPA to set ambient air quality standards
for certain pollutants, and standards have been set thus far for carbon
monoxide and sulfur oxide, among others.
43) Which of the following is not required of a state's
compliance plan for a nonattainment area?
A) Identification of major sources of air pollution
B) Mandatory installation of pollution control equipment on major
sources
C) Provision of adequate state funding for the installation of
pollution control equipment
D) Institution of a permit system for new sources of air pollution
44) Which of the following is true?
A) In order to dredge or fill a wetland, a permit is needed from
the EPA.
B) The federal government has primary enforcement responsibility
for the Safe Drinking Water Act.
C) A permit is needed for dumping toxic wastes in the ocean, but
not for dumping wastes that are nontoxic.
D) The Marine Protection, Research, and Sanctuaries Act
established marine sanctuaries in the Great Lakes.
45) Which of the following is not one of the federal
statutes protecting wildlife?
A) The Migratory Bird Treaty Act
B) The Wild Free-Roaming Horses and Burros Act
C) The Wild Game Preservation Act
D) The Fishery Conservation and Management Act
46) A federal government agency is planning to build a dam in
Maine. The land where the dam will be located, and the area that will be under
the lake to be formed, is currently all privately owned. Which of the following
correctly describes the requirement for an environmental impact statement?
A) An environmental impact statement is not required because the
land is private.
B) An environmental impact statement is required only if the land
will become federal land before the dam is built.
C) An environmental impact statement is required only if any of
the land affected is classified as wetland.
D) An environmental impact statement is required because it is the
federal government that is undertaking his project.
47) Wally owns 40 acres along a river. He is planning to build a
home near the river, and a friend has just informed him that the land on which
Wally is planning to build the house is wetlands. In this circumstance, what
must Wally do in order to be able to fill in the wetlands for the construction
of his house?
A) Nothing, because this is the action of a private individual on
private land.
B) Nothing, so long as the house
will not emit any pollutants into the nearby river.
C) File an environmental impact statement.
D) Obtain a permit from the Army Corps of Engineers.
48) Which of the following statements best describes the
procedures under the Clean Air Act?
A) The federal government sets and enforces the standards.
B) The state governments set and enforce the standards.
C) The federal government sets the standards; the state
governments enforce the standards; if the states do not adequately enforce the
standards, the federal government may enforce them.
D) The state governments set the standards; the federal government
enforces the standards; if the federal government does not adequately enforce
the standards, the states may enforce them.
49) Under the Superfund legislation, who may be held liable for
the cleanup costs of a hazardous waste site?
A) Only the generator of the waste
B) Only the generator and the transporter
C) Only the generator, transporter, and owner of the land at the
time of the waste disposal
D) The generator, the transporter, the owner of the land at the
time of disposal, and the current owner
50) Ownership of real property in fee simple defeasible
means that:
A) The ownership is for only a limited period of time.
B) The ownership is absolute except that ownership may be lost
upon the occurrence or non-occurrence of some event.
C) The property reverts to the grantor when some condition is met.
D) Some type of joint ownership exists.