Ny 2010 Business Law

NEW YORK STATE ASSOCIATION FUTURE BUSINESS LEADERS OF AMERICA

SPRING DISTRICT MEETING

BUSINESS LAW

2010

TEST DIRECTIONS

1. Complete the information requested on the answer sheet. PRINT your name on the first line following the word NAME. On the subject line write the name of the event: BUSINESS LAW. On the date line, write the name of your CHAPTER. On the Test No. line, write the number of YOUR DISTRICT.

DO NOT OPEN THIS TEST UNTIL GIVEN PERMISSION TO DO SO

2. All answers will be recorded on the answer sheet. DO NOT WRITE on the test booklet at any time, and DO NOT check items there. Scrap paper will be provided.

3. READ each question carefully before answering. When you have decided which answer is correct, find the space on the answer sheet following the number of the problem and with a pencil blacken the entire space in the proper column. DO NOT make and OTHER pencil marks on the answer sheet. If you change your mind, erase your first answer completely.

4. Be sure you use a No. 2 pencil with an eraser.

5. You are allowed 30 minutes for the test. You will be given a starting signal and a warning after 20 minutes have elapsed.

In the event of a tie, the score on the last ten questions will be used as a tie-breaker.

2010 NYS FBLA SDM Business Law

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1. The rules of conduct established by the government to maintain stability and promote justice are known as __________.

a. ethics b. morality c. the golden rule d. law

2. Rules and procedures established by the regulatory agencies are known as __________. a. administrative law b. statutory law c. common law d. governmental law

3. The first step in a civil trial is __________. a. jury selection b. presentation of opening statements c. introduction of the evidence d. instructions to the jury

4. The first step in a criminal prosecution is the __________. a. arrest of the defendant b. indictment or information c. arraignment d. trial

5. The second element of a crime in addition to the criminal act is __________. a. motive b. required mental state c. requisite defense d. criminal liability

6. The unlawful touching of another human being is __________. a. murder b. assault c. battery d. kidnapping

7. The willful or malicious causing of damage to property is known as __________. a. arson b. shoplifting c. vandalism d. burglary


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8. A wrongful act that injures anothers reputation by making false statements is called __________.

a. nuisance b. trespass c. defamation d. invasion of privacy

9. A suit for negligence must prove four elements: duty of care, breach of duty, proximate cause, and __________.

a. actual harm b. defamation c. the existence of a crime d. unfair advantage

10. In recent years the doctrine of strict liability has been applied to __________. a. negligence b. defamation c. product liability d. trespass

11. Contracts can be classified in the following four ways: valid, void, voidable and unenforceable, bilateral or unilateral, oral or written and __________.

a. express or implied b. long or short c. criminal or tortuous d. failed or successful

12. A contract stated in oral or written words is known as a(n) __________. a. express contract b. implied contract c. written contract d. none of the above

13. False statements deliberately made to mislead a party to a potential contract about a material fact involved in that potential contract is known as __________.

a. misrepresentation b. fraud c. mistake d. duress

14. A guardian is said to look after the affairs of a(n) __________. a. fiduciary person b. incompetent person c. legal person d. none of the above


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15. Minors may ratify or _________ their contracts if they so choose. a. approve b. complement c. legislate d. none of the above

16. A free agreement is also called a(n) __________ agreement. a. gratuitous b. fraternal c. illusory d. none of the above

17. When competitors agree to sell a product or service at an agreed price, it is known as a __________.

a. price-fixing scheme b. lottery c. restrictive covenant d. bid

18. The fee the borrower pays to the lender for using money is called __________. a. interest b. bidding c. price fixing d. a covenant

19. The legal term for false statements made under oath is __________. a. alibi b. perjury c. subterfuge d. untruth

20. When a contract can be understood in different ways, it is said to be: a. self-evident b. unenforceable c. ambiguous d. inadmissible

21. ___________ are the terms used to describe a situation in which one contract is substituted for another.

a. Estrangment and detachment b. Tender and performance c. Accord and satisfaction d. Offer and acceptance


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22. ______________ is a court order requiring the other party to do what he or she has agreed to do.

a. Breach of contract b. Anticipatory repudiation c. Specific performance d. Damages

23. If you rely on the sellers knowledge and advice in selecting the goods, the warranty that occurs is a(n) __________.

a. warranty of title b. warranty of fitness for a particular purpose c. full warranty d. guarantee

24. A warranty that guarantees a defective product will be fixed or replaced free of charge is a(n) __________.

a. full warranty b. limited warranty c. implied warranty d. warranty of merchantability

25. The illegal advertising practice of trying to sell a customer a more expensive item than the one advertised is called __________.

a. caveat emptor b. bait and switch c. caveat venditor d. negligent

26. The cooling-off rule gives you three business days to cancel a contract made with a(n) __________.

a. used car dealer b. door-to-door salesperson c. grocery store d. department store

27. If you are injured by a hit-and-run driver, you would be protected by __________. a. comprehensive insurance b. uninsured motorist insurance c. collision insurance d. property damage insurance


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28. Damage to your vehicle when it is involved in an accident, regardless of who was at fault is covered by __________.

a. property damage liability b. comprehensive insurance c. collision insurance d. underinsured motorist insurance

29. __________ means acting in the best interests of the principal. a. Good faith b. Loyalty c. Obedience d. Compensation

30. Laws that control the work that children may do are called _____________ laws. a. public policy b. child labor c. right-to-work d. collective bargaining

31. Under a(n) ______________, employees have the right to appeal any employers decision that they feel has violated just cause.

a. covenant b. disclaimer c. implied contract d. grievance procedure

32. _________ was created by the federal government to ensure safe and healthy working conditions.

a. The Civil Rights Act b. The Americans with Disabilities Act c. OSHA d. The Equal Pay Act

33. _____________ is the governments basic method of providing income when family earnings stop or are reduced.

a. A pension plan b. Social Security c. Unemployment compensation d. Workers compensation

34. ___________ is an insurance program of payments to workers who are injured on the job.

a. A pension plan b. Social Security c. Unemployment compensation d. Workers compensation


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35. If your credit card is stolen, you are responsible for __________. a. $50.00 of unauthorized charges made before the company has been notified b. $50.00 of unauthorized charges made after the company has been notified c. $500.00 worth of unauthorized purchases d. all unauthorized purchases if you do not notify the company promptly

36. The Equal Credit Opportunity Act makes it illegal for banks to discriminate against credit applicants because of their __________.

a. sex b. marital status c. race d. all of the above

37. Under the Fair Debt Collection Practices Act, it is illegal for debt collectors to __________.

a. insult debtors b. telephone during the day c. threaten consumer with violence d. ask consumers to pay their bills

38. For Deposit Only is a ___________ endorsement. a. special b. blank c. restrictive d. qualified

39. An association of two or more people to carry on a business for profit is known as a __________.

a. general partnership b. registered limited liability partnership c. limited partnership d. partnership by proof of existence

40. When one party ceases to be associated with the partnership, the partnership undergoes a ___________.

a. reversion b. limited accounting c. dissolution d. separation

41. ____________ are corporate directors or officers who have information about a publicly traded corporation that is not available to the public.

a. Confidants b. Supporters c. Accomplices d. Insiders


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42. Congress passed the Securities Act of 1933 and the __________ Act of 1934 to protect corporate investors.

a. Fair Labor Standards b. Federal Trade Commission c. Securities Exchange d. Sherman Antitrust

43. In 1890, Congress passed the __________ Act, which declared monopolies to be illegal. a. Fair Labor Standards b. Federal Trade Commission c. Securities Exchange d. Sherman Antitrust

44. A premarital agreement must be __________. a. one-sided b. signed by one party c. orally agreed to d. written and signed by both parties

45. An allowance made to a divorced person by a former spouse for support and maintenance is called __________.

a. alimony b. pin money c. annulment d. reconciliation

46. A marriage comes to an end by __________. a. death b. divorce c. annulment d. all of the above

47. When a landlord deprives the tenant of heat or electricity, it is called a(n) __________. a. outrage b. disgrace c. assignment d. constructive eviction

48. Unless the lease states otherwise, a tenant may __________. a. destroy walls b. assign or sublet c. skip rent payments d. annoy neighbors


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49. The amount of protection stated in a life insurance policy is the __________. a. face value b. cash value c. full value d. half value

50. A will can be changed by making a new will or by adding a __________. a. sentence b. bequest c. devise d. codicil


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ANSWER KEY

1. D 26. B 2. A 27. B 3. A 28. C 4. A 29. A 5. B 30. B 6. C 31. D 7. C 32. C 8. C 33. B 9. A 34. D 10. C 35. A 11. A 36. D 12 A 37. C 13. B 38. C 14. B 39. A 15. A 40. C 16. A 41. D 17. A 42. C 18. A 43. D 19. B 44. D 20. C 45. A 21. C 46. D 22. C 47. D 23. B 48. B 24. A 49. A 25. B 50. D

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Ny 2010 Business Law