ETS Exam-Business Law With Correct Answers #3
Strict liability applies when a defendant places another person in danger, even in the
absence of carelessness or negligence, simply because he is possession of a
dangerous product, animal or weapon. The plaintiff need not prove negligence. Which
of the following would be an example of strict liability activities?
Select one:
A.Ultra hazardous/unreasonably dangerous defect
B.Implied warranty of fitness for a particular purpose
C.Manufacturing defect unknown to the manufacturer
D.All the above - correct answer a. Ultra hazardous/unreasonably dangerous defect
A warranty implied by law that if a seller knows or has reason to know of a particular
purpose for which some item is being purchased by the buyer the seller is guaranteeing
that the item is fit for that particular purpose refers to which theory of liability for product
liability claims.
Select one:
A.Negligence.
B.An implied warranty for fitness for purpose.
C.Strict liability.
D.An implied warranty for merchantability. - correct answer b. An implied warranty for
fitness for purpose.
A court will enforce an oral agreement if there is evidence of the existence of a contract.
There is one exception to this rule:
Select one:
A.Stare decisis
B.Writ of certiorari
C.Statute of Frauds
D.Statute of agreements - correct answer c. Statute of Frauds
An agency relationship with a principal occurs when (1) a person misrepresents himself
or herself as another's agent when in fact he or she is not and (2) the purported
principal accepts the unauthorized act.
Select one:
A.indoctrination
B.ramification
C.ratification
D.indemnification - correct answer c. Ratification
Which of the following is not a requirement to be proven for the tort of
business/commercial disparagement?
, Select one:
A.The statement is false.
B.The defendant either intends to cause financial loss or reasonably believes that it
would result in financial loss for the business.
C.Financial loss does in fact result.
D.The publisher acts with malice.
E.All are required. - correct answer e. All are required.
Which of the following are general practices are prohibited by the Clayton Act:
Select one:
A.Interlocking directorates.
B.Wholesale distributors.
C.All restraints of trade.
D.Automatic supply contracts and service agreements. - correct answer a.Interlocking
directorates.
Which court has the highest authority over Constitutional questions?
Select one:
A.U. S. District Court
B.U. S Court of Appeals for the Federal Circuit
C.U. S. Court of Claims
D.None of the above - correct answer d. None of the above
The tort of commercial disparagement against a corporation requires which of the
following elements to be proven:
Select one:
A.The statement is false.
B.The defendant either intends to cause financial loss or reasonably believes that it
would result in financial loss for the business.
C.Financial loss does in fact result.
D.The publisher acts with malice. (The defendant knows either that the statement is
false or acts in reckless disregard of its truth or falsity.)
E.All the above elements need to be proven - correct answer e. All the above elements
need to be proven
The Dormant Commerce Clause precludes which of the following from restraint of trade
activities?
Select one:
A.State governments
B.Foreign governments
C.United States federal government
Strict liability applies when a defendant places another person in danger, even in the
absence of carelessness or negligence, simply because he is possession of a
dangerous product, animal or weapon. The plaintiff need not prove negligence. Which
of the following would be an example of strict liability activities?
Select one:
A.Ultra hazardous/unreasonably dangerous defect
B.Implied warranty of fitness for a particular purpose
C.Manufacturing defect unknown to the manufacturer
D.All the above - correct answer a. Ultra hazardous/unreasonably dangerous defect
A warranty implied by law that if a seller knows or has reason to know of a particular
purpose for which some item is being purchased by the buyer the seller is guaranteeing
that the item is fit for that particular purpose refers to which theory of liability for product
liability claims.
Select one:
A.Negligence.
B.An implied warranty for fitness for purpose.
C.Strict liability.
D.An implied warranty for merchantability. - correct answer b. An implied warranty for
fitness for purpose.
A court will enforce an oral agreement if there is evidence of the existence of a contract.
There is one exception to this rule:
Select one:
A.Stare decisis
B.Writ of certiorari
C.Statute of Frauds
D.Statute of agreements - correct answer c. Statute of Frauds
An agency relationship with a principal occurs when (1) a person misrepresents himself
or herself as another's agent when in fact he or she is not and (2) the purported
principal accepts the unauthorized act.
Select one:
A.indoctrination
B.ramification
C.ratification
D.indemnification - correct answer c. Ratification
Which of the following is not a requirement to be proven for the tort of
business/commercial disparagement?
, Select one:
A.The statement is false.
B.The defendant either intends to cause financial loss or reasonably believes that it
would result in financial loss for the business.
C.Financial loss does in fact result.
D.The publisher acts with malice.
E.All are required. - correct answer e. All are required.
Which of the following are general practices are prohibited by the Clayton Act:
Select one:
A.Interlocking directorates.
B.Wholesale distributors.
C.All restraints of trade.
D.Automatic supply contracts and service agreements. - correct answer a.Interlocking
directorates.
Which court has the highest authority over Constitutional questions?
Select one:
A.U. S. District Court
B.U. S Court of Appeals for the Federal Circuit
C.U. S. Court of Claims
D.None of the above - correct answer d. None of the above
The tort of commercial disparagement against a corporation requires which of the
following elements to be proven:
Select one:
A.The statement is false.
B.The defendant either intends to cause financial loss or reasonably believes that it
would result in financial loss for the business.
C.Financial loss does in fact result.
D.The publisher acts with malice. (The defendant knows either that the statement is
false or acts in reckless disregard of its truth or falsity.)
E.All the above elements need to be proven - correct answer e. All the above elements
need to be proven
The Dormant Commerce Clause precludes which of the following from restraint of trade
activities?
Select one:
A.State governments
B.Foreign governments
C.United States federal government
