BUL 4310 MIDTERM REVIEW UPDATED EXAM QUESTIONS
AND ANSWERS
False - CORRECT ANSWER✅✅1
Most states do not allow automobile repair shops to hold a customer's car when the customer refuses
to pay for repairs already completed. T/F
True - CORRECT ANSWER✅✅2
An administrative rule may be arbitrary and capricious if the agency failed to provide a rational
explanation for its decision. T/F
True - CORRECT ANSWER✅✅3
Abuse of process applies to any person using a legal process against another in an improper manner. T/F
True - CORRECT ANSWER✅✅4
Mandatory arbitration clauses in employment contracts are generally enforceable. T/F
True - CORRECT ANSWER✅✅5
The verdict in a summary jury trial is not binding. T/F
False - CORRECT ANSWER✅✅6
Dumping is the exporting of environmentally polluting goods to a foreign market. T/F
True - CORRECT ANSWER✅✅7
,With a few exceptions, almost anything is patentable. T/F
True - CORRECT ANSWER✅✅8
Under the supremacy clause, a valid federal statute or regulation will take precedence over a conflicting
state or local law or regulation on the same general subject. T/F
True - CORRECT ANSWER✅✅9
The use of additional evidence distinguishes the motion for summary judgment from the motion for
judgment on the pleadings. T/F
True - CORRECT ANSWER✅✅10
Under the Anti-Counterfeiting Trade Agreement, member nations are required to establish border
measures that allow officials to search commercial shipments of imports and exports for counterfeit
goods. T/F
True - CORRECT ANSWER✅✅11
The study of business ethics is concerned with the purposes of a business and how that business
achieves those purposes. T/F
False - CORRECT ANSWER✅✅12
Ethics is as well defined as the law. T/F
False - CORRECT ANSWER✅✅13
,Ethics is based more on research than judgment. T/F
True - CORRECT ANSWER✅✅14
Companies are required to set up confidential systems so that employees and others can "raise red
flags" about suspected illegal or unethical auditing and accounting practices. T/F
False - CORRECT ANSWER✅✅15
Voluntary consent may be lacking because of misrepresentation but not because of a mistake. T/F
False - CORRECT ANSWER✅✅16
Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract. T/F
True - CORRECT ANSWER✅✅17
Traditionally, the courts have protected the right to free speech to the fullest extent possible. T/F
True - CORRECT ANSWER✅✅18
When outrageous conduct consists of speech about a public figure, the First Amendment's guarantee of
freedom of speech limits emotional distress claims. T/F
True - CORRECT ANSWER✅✅19
A manufacturing defect is a departure from a product unit's design specifications that results in products
that are physically flawed. T/F
, True - CORRECT ANSWER✅✅20
A product liability action based on negligence does not require privity of contract between the injured
plaintiff and the defendant-manufacturer. T/F
False - CORRECT ANSWER✅✅21
To successfully assert a design defect, a plaintiff has to show that no reasonable alternative design was
available. T/F
True - CORRECT ANSWER✅✅22
Under the authority of a long arm statute, a court can exercise personal jurisdiction over certain out-of-
state defendants. T/F
True - CORRECT ANSWER✅✅23
The First Amendment does not require a complete separation of church and state. T/F
False - CORRECT ANSWER✅✅24
Given today's global communications network, most companies can assume that their actions in other
nations will go unnoticed. T/F
False - CORRECT ANSWER✅✅25
Tort law provides remedies for acts that cause personal injury but not for acts that interfere with
physical security. T/F
there is no contract. - CORRECT ANSWER✅✅26
AND ANSWERS
False - CORRECT ANSWER✅✅1
Most states do not allow automobile repair shops to hold a customer's car when the customer refuses
to pay for repairs already completed. T/F
True - CORRECT ANSWER✅✅2
An administrative rule may be arbitrary and capricious if the agency failed to provide a rational
explanation for its decision. T/F
True - CORRECT ANSWER✅✅3
Abuse of process applies to any person using a legal process against another in an improper manner. T/F
True - CORRECT ANSWER✅✅4
Mandatory arbitration clauses in employment contracts are generally enforceable. T/F
True - CORRECT ANSWER✅✅5
The verdict in a summary jury trial is not binding. T/F
False - CORRECT ANSWER✅✅6
Dumping is the exporting of environmentally polluting goods to a foreign market. T/F
True - CORRECT ANSWER✅✅7
,With a few exceptions, almost anything is patentable. T/F
True - CORRECT ANSWER✅✅8
Under the supremacy clause, a valid federal statute or regulation will take precedence over a conflicting
state or local law or regulation on the same general subject. T/F
True - CORRECT ANSWER✅✅9
The use of additional evidence distinguishes the motion for summary judgment from the motion for
judgment on the pleadings. T/F
True - CORRECT ANSWER✅✅10
Under the Anti-Counterfeiting Trade Agreement, member nations are required to establish border
measures that allow officials to search commercial shipments of imports and exports for counterfeit
goods. T/F
True - CORRECT ANSWER✅✅11
The study of business ethics is concerned with the purposes of a business and how that business
achieves those purposes. T/F
False - CORRECT ANSWER✅✅12
Ethics is as well defined as the law. T/F
False - CORRECT ANSWER✅✅13
,Ethics is based more on research than judgment. T/F
True - CORRECT ANSWER✅✅14
Companies are required to set up confidential systems so that employees and others can "raise red
flags" about suspected illegal or unethical auditing and accounting practices. T/F
False - CORRECT ANSWER✅✅15
Voluntary consent may be lacking because of misrepresentation but not because of a mistake. T/F
False - CORRECT ANSWER✅✅16
Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract. T/F
True - CORRECT ANSWER✅✅17
Traditionally, the courts have protected the right to free speech to the fullest extent possible. T/F
True - CORRECT ANSWER✅✅18
When outrageous conduct consists of speech about a public figure, the First Amendment's guarantee of
freedom of speech limits emotional distress claims. T/F
True - CORRECT ANSWER✅✅19
A manufacturing defect is a departure from a product unit's design specifications that results in products
that are physically flawed. T/F
, True - CORRECT ANSWER✅✅20
A product liability action based on negligence does not require privity of contract between the injured
plaintiff and the defendant-manufacturer. T/F
False - CORRECT ANSWER✅✅21
To successfully assert a design defect, a plaintiff has to show that no reasonable alternative design was
available. T/F
True - CORRECT ANSWER✅✅22
Under the authority of a long arm statute, a court can exercise personal jurisdiction over certain out-of-
state defendants. T/F
True - CORRECT ANSWER✅✅23
The First Amendment does not require a complete separation of church and state. T/F
False - CORRECT ANSWER✅✅24
Given today's global communications network, most companies can assume that their actions in other
nations will go unnoticed. T/F
False - CORRECT ANSWER✅✅25
Tort law provides remedies for acts that cause personal injury but not for acts that interfere with
physical security. T/F
there is no contract. - CORRECT ANSWER✅✅26