Business law exam 2026-2027 question and correct answers graded
A
QUESTION 1
1. A company that produces designer handbags acquiring a furniture company would be an
example of a(n) merger.
conglomera
te
vertical
oligopolistic
horizontal
1 points
QUESTION 2
1. A merger of two (2) wine producers in the same geographic market would be an
example of a(n) merger.
horizontal
oligopolistic
vertical
conglomera
te
1 points
QUESTION 3
1. A soft drink manufacturer acquiring a bottling company would be an example of a (n)
merger.
horizontal
generic
vertical
oligopolist
ic
1 points
QUESTION 4
1. A vertical merger involves an alliance between which parties?
Competitors in vertical markets
,Business law exam 2026-2027 question and correct answers graded
A
Suppliers and purchasers
Suppliers and marketing
intermediaries
Competitors in parallel markets
1 points
QUESTION 5
1. A(n) merger involves two (2) or more firms at different levels of the same
channel of distribution.
oligopolistic
horizontal
vertical
conglomera
te
1 points
QUESTION 6
1. Alex, an at-will employee, worked for Falls Industries, Incorporated for ten (10) years and
had always received satisfactory performance evaluations. After arriving late for work
twice, he was fired. He sued Falls Industries, Incorporated, claiming wrongful discharge
and alleging that the employee manual specified three (3) infractions must occur before
discharge. Alex is pursuing which of the following judicial limitations to at-will
employment?
An implied covenant of good faith and fair
dealing
The doctrine of respondeat superior
Express or implied contracts
The tort of violating an established public
policy
1 points
QUESTION 7
1. Approximately how many mergers fail?
20 to 40
percent
,Business law exam 2026-2027 question and correct answers graded
A
40 to 50
percent
50 to 80
percent
10 to 20
percent
1 points
QUESTION 8
1. Business with fewer than employees are exempted from the employment
portions of the Americans with Disabilities Act (ADA).
seventy-five
(75)
fifteen (15)
twenty-five (25)
one hundred
(100)
1 points
QUESTION 9
1. By its nature, a(n) results in market foreclosure; that is, competitors are
denied a source of supply or a market for sale.
horizontal restraint of
trade
tying arrangement
vertical restraint of
trade
exclusive deal
1 points
QUESTION 10
1. Chelsea accepts an administrative assistant position in an automobile repair shop. She
is constantly subjected to sexual comments and jokes from her male coworkers. Many of
her male coworkers also prominently display sexually explicit posters at their
workstations. Which of the following is correct regarding Chelsea’s legal rights in this
scenario?
, Business law exam 2026-2027 question and correct answers graded
A
Chelsea’s employer is immune from a sexual harassment claim, since her co-workers
are the ones making sexual comments and displaying the posters.
Unless Chelsea can prove she was physically harassed, her sexual harassment claim
will be unsuccessful.
She may sue her co-workers based on the theory ofquid pro quo sexual harassment.
She may file a cause of action based on hostile work environment.
1 points
QUESTION 11
1. Employer liability for employee injuries, accidents, or wrongs is largely dependent on
whether the employee was at the time of the incident in question.
on the job
full-time
legally competent
aware of her
wrongdoing
1 points
QUESTION 12
1. Generally, a business must provide unemployment insurance to its .
employees
third-party beneficiaries and incidental
beneficiaries
independent contractors
employees and independent contractors
1 points
QUESTION 13
1. Generally, an employer is liable on grounds for hiring or retaining an employee
whom the employer knew or should have known to be dangerous, incompetent, or
dishonest, where that characteristic was directly related to the injury suffered by the
plaintiff.
strict liability
negligence
A
QUESTION 1
1. A company that produces designer handbags acquiring a furniture company would be an
example of a(n) merger.
conglomera
te
vertical
oligopolistic
horizontal
1 points
QUESTION 2
1. A merger of two (2) wine producers in the same geographic market would be an
example of a(n) merger.
horizontal
oligopolistic
vertical
conglomera
te
1 points
QUESTION 3
1. A soft drink manufacturer acquiring a bottling company would be an example of a (n)
merger.
horizontal
generic
vertical
oligopolist
ic
1 points
QUESTION 4
1. A vertical merger involves an alliance between which parties?
Competitors in vertical markets
,Business law exam 2026-2027 question and correct answers graded
A
Suppliers and purchasers
Suppliers and marketing
intermediaries
Competitors in parallel markets
1 points
QUESTION 5
1. A(n) merger involves two (2) or more firms at different levels of the same
channel of distribution.
oligopolistic
horizontal
vertical
conglomera
te
1 points
QUESTION 6
1. Alex, an at-will employee, worked for Falls Industries, Incorporated for ten (10) years and
had always received satisfactory performance evaluations. After arriving late for work
twice, he was fired. He sued Falls Industries, Incorporated, claiming wrongful discharge
and alleging that the employee manual specified three (3) infractions must occur before
discharge. Alex is pursuing which of the following judicial limitations to at-will
employment?
An implied covenant of good faith and fair
dealing
The doctrine of respondeat superior
Express or implied contracts
The tort of violating an established public
policy
1 points
QUESTION 7
1. Approximately how many mergers fail?
20 to 40
percent
,Business law exam 2026-2027 question and correct answers graded
A
40 to 50
percent
50 to 80
percent
10 to 20
percent
1 points
QUESTION 8
1. Business with fewer than employees are exempted from the employment
portions of the Americans with Disabilities Act (ADA).
seventy-five
(75)
fifteen (15)
twenty-five (25)
one hundred
(100)
1 points
QUESTION 9
1. By its nature, a(n) results in market foreclosure; that is, competitors are
denied a source of supply or a market for sale.
horizontal restraint of
trade
tying arrangement
vertical restraint of
trade
exclusive deal
1 points
QUESTION 10
1. Chelsea accepts an administrative assistant position in an automobile repair shop. She
is constantly subjected to sexual comments and jokes from her male coworkers. Many of
her male coworkers also prominently display sexually explicit posters at their
workstations. Which of the following is correct regarding Chelsea’s legal rights in this
scenario?
, Business law exam 2026-2027 question and correct answers graded
A
Chelsea’s employer is immune from a sexual harassment claim, since her co-workers
are the ones making sexual comments and displaying the posters.
Unless Chelsea can prove she was physically harassed, her sexual harassment claim
will be unsuccessful.
She may sue her co-workers based on the theory ofquid pro quo sexual harassment.
She may file a cause of action based on hostile work environment.
1 points
QUESTION 11
1. Employer liability for employee injuries, accidents, or wrongs is largely dependent on
whether the employee was at the time of the incident in question.
on the job
full-time
legally competent
aware of her
wrongdoing
1 points
QUESTION 12
1. Generally, a business must provide unemployment insurance to its .
employees
third-party beneficiaries and incidental
beneficiaries
independent contractors
employees and independent contractors
1 points
QUESTION 13
1. Generally, an employer is liable on grounds for hiring or retaining an employee
whom the employer knew or should have known to be dangerous, incompetent, or
dishonest, where that characteristic was directly related to the injury suffered by the
plaintiff.
strict liability
negligence
